Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords:
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Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan A. Batten
Author-X-Name-First: Jonathan A.
Author-X-Name-Last: Batten
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Liquidity and Return Relationships in an Emerging Market
Abstract:
 In this paper, we investigate the relationship between liquidity and stock returns in the Vietnam stock market during the global financial crisis. Vietnam is one of a new group of frontier emerging markets referred to as CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa). We use a rich and detailed data set of firm characteristics to identify a positive relationship between liquidity and stock returns. This contradicts the negative correlation typically found in stock returns in developed markets. Our results support the proposition that when a market is not fully integrated with the global economy, a lack of liquidity will be a less important risk factor. Our findings contribute to those studies that highlight the diversification benefits from including frontier markets, which have a lower degree of integration with the global economy, in international portfolios.
Journal: Emerging Markets Finance and Trade
Pages: 5-21
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: emerging markets, financial crisis, liquidity, stock returns
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Template-Type: ReDIF-Article 1.0
Author-Name: Rosmy Jean Louis
Author-X-Name-First: Rosmy Jean
Author-X-Name-Last: Louis
Author-Name: Faruk Balli
Author-X-Name-First: Faruk
Author-X-Name-Last: Balli
Title: Oil Price and Stock Market Synchronization in Gulf Cooperation Council Countries
Abstract:
 Knowing that the Gulf Cooperation Council (GCC) economies are dichotomous in nature, and growth in the non-oil sector is tributary to the oil sector, we document the extent of synchronization between crude oil prices and stock markets for each of the GCC markets and for the GCC as an economic bloc. We use both the bivariate and multivariate nonparametric synchronicity measures proposed by Mink et al. (2007) to assess that linkage. We find a low to mild (mild to strong) degree of synchronization between oil price and stock market returns (volatilities). In a very few instances, we find very strong (above 80 percent) associations between these variables. These results hold irrespective of whether we assume that stock market participants form adaptive or rational expectations about the price of oil. Dynamic factor results confirm that shocks to volatility are more important than shocks to oil price returns for the GCC stock markets.
Journal: Emerging Markets Finance and Trade
Pages: 22-51
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: GCC stock markets, oil price, synchronicity measures
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Template-Type: ReDIF-Article 1.0
Author-Name: Bilin Neyapti
Author-X-Name-First: Bilin
Author-X-Name-Last: Neyapti
Author-Name: N. Nergiz Dincer
Author-X-Name-First: N. Nergiz
Author-X-Name-Last: Dincer
Title: Macroeconomic Impact of Bank Regulation and Supervision: A Cross-Country Investigation
Abstract:
 Bank regulation and supervision (RS) is a formal institutional mechanism that aims to reduce the adverse selection and moral hazard risks in the banking sector. This paper offers an empirical exploration of the relationship between banking-sector performance and RS using data on the legal quality of bank regulation and supervision. The main channels via which RS affects bank performance are considered to be depositor trust, investment mobilization, and borrower discipline. An event study of up to fifty-three countries provides robust evidence that RS has significant positive effects on bank deposits and investment rate and significant negative effects on nonperforming loans.
Journal: Emerging Markets Finance and Trade
Pages: 52-70
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: bank performance, bank regulation and supervision
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Template-Type: ReDIF-Article 1.0
Author-Name: Rene Coppe Pimentel
Author-X-Name-First: Rene Coppe
Author-X-Name-Last: Pimentel
Author-Name: Taufiq Choudhry
Author-X-Name-First: Taufiq
Author-X-Name-Last: Choudhry
Title: Stock Returns Under High Inflation and Interest Rates: Evidence from the Brazilian Market
Abstract:
 We analyze the relationship of high inflation and interest rates with stock returns in Brazil from May 1986 to May 2011, during which Brazil experienced subperiods of both high inflation (May 1986-June 1994) and relative monetary stability (July 1994-May 2011). The result in the total period is dominated by high inflation volatility, and the findings suggest a bidirectional relationship between stock returns and inflation. During the high-inflation subperiod, interest rates are relevant to explain future changes in inflation and stock returns. Under low inflation, movements in interest rates are better anticipated by equity investors, suggesting higher market efficiency than in high-inflation circumstances.
Journal: Emerging Markets Finance and Trade
Pages: 71-92
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: emerging markets, Fisher effect, inflation, interest rate, stock returns
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Template-Type: ReDIF-Article 1.0
Author-Name: Katarzyna Bień-Barkowska
Author-X-Name-First: Katarzyna
Author-X-Name-Last: Bień-Barkowska
Title: Capturing Order Book Dynamics in the Interbank EUR/PLN Spot Market
Abstract:
 In this paper, I examine order submissions and cancellations in the Reuters Dealing 3000 Spot Matching System, the main order-driven market for interbank trading of the euro/złoty (EUR/PLN) currency pair. I generalize the asymmetric autoregressive conditional duration (AACD) model of Bauwens and Giot (2003) with respect to more than two competing risks. With the new multistate AACD model, I examine the timing of different order submissions and cancellations that take place on different sides of the market and vary according to their level of aggressiveness. I investigate different liquidity or information-oriented factors that exert an influence on the dynamics of the limit order book.
Journal: Emerging Markets Finance and Trade
Pages: 93-117
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: ACD models, currency markets, market microstructure, order book dynamics
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1:p:93-117




Template-Type: ReDIF-Article 1.0
Author-Name: Li Gan
Author-X-Name-First: Li
Author-X-Name-Last: Gan
Author-Name: Dayong Zhang
Author-X-Name-First: Dayong
Author-X-Name-Last: Zhang
Title: Economic and Financial Challenges and Issues in the Asia-Pacific Countries: Guest Editors' Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 118-119
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A7138L83U8884005
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1:p:118-119




Template-Type: ReDIF-Article 1.0
Author-Name: Yan Dong
Author-X-Name-First: Yan
Author-X-Name-Last: Dong
Author-Name: Chao Men
Author-X-Name-First: Chao
Author-X-Name-Last: Men
Title: SME Financing in Emerging Markets: Firm Characteristics, Banking Structure and Institutions
Abstract:
 Using the World Bank Enterprise Survey indicator database, we investigate (1) how firm characteristics affect financing of small and medium-size enterprises (SMEs) in emerging markets; (2) how cross-country differences in the banking sector affect SME financing; and (3) how financing of SMEs is influenced by economic development and institutions. Our findings confirm that younger and smaller firms in nonmanufacturing sectors consistently face severe financing obstacles/constraints and rely heavily on internal financing. Moreover, the availability of credit information and the bank concentration ratio, as well as economic development and the institutional environment, can significantly affect SME financing, and access to external financing in particular.
Journal: Emerging Markets Finance and Trade
Pages: 120-149
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: emerging market, financial obstacles, SMEs
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1:p:120-149




Template-Type: ReDIF-Article 1.0
Author-Name: Chengsi Zhang
Author-X-Name-First: Chengsi
Author-X-Name-Last: Zhang
Author-Name: Chaofeng Li
Author-X-Name-First: Chaofeng
Author-X-Name-Last: Li
Title: The Great Moderation in China: A Disaggregated Analysis
Abstract:
 This paper examines whether the major components of China's real gross domestic product (GDP) have exhibited smoother, less volatile growth since the late 1990s, and, if so, what has caused this "great moderation" in their growth. Employing unknown-structural-breakpoint tests and constructing a counterfactual analysis based on vector autoregression models, the authors show that the growth rates of all the major components of China's real GDP have followed a relatively steady course since the late 1990s, with the most marked decrease in growth volatility (i.e., volatility of growth rate of the components of real GDP) occurring in the consumption sector. Empirical results reveal that systematic policy improvements account for less than 30 percent of the drop in the volatility of growth in aggregate consumption, while policy improvements do not explain investment and rates of net export growth.
Journal: Emerging Markets Finance and Trade
Pages: 150-163
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: business cycle, Chinese economy, GDP components, great moderation, monetary policy
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1:p:150-163




Template-Type: ReDIF-Article 1.0
Author-Name: Lin Huang
Author-X-Name-First: Lin
Author-X-Name-Last: Huang
Author-Name: Yan Shu
Author-X-Name-First: Yan
Author-X-Name-Last: Shu
Title: Accounting Accruals, Future Operating Performance, and Public-Listing Age
Abstract:
 This paper investigates the impact of public-listing age on the future operating performance of Chinese firms making initial public offerings (IPOs) during the period 1998-2010 and examines whether accounting accruals contribute to this impact. We found that, on average, public-listing age has a negative incremental effect on future operating performance in China and that accounting accruals do play a role in postissue underperformance. However, our industrial analysis reveals that the listing-age effect does not persist in industry-specific models; this implies that listing age has heterogeneous effects on post-IPO operating performance and that these effects deserve further attention.
Journal: Emerging Markets Finance and Trade
Pages: 164-182
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: accounting accruals, future operating performance, industrial heterogeneity, initial public offering
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhe Peng
Author-X-Name-First: Zhe
Author-X-Name-Last: Peng
Author-Name: Qiming Tang
Author-X-Name-First: Qiming
Author-X-Name-Last: Tang
Author-Name: Kent Wang
Author-X-Name-First: Kent
Author-X-Name-Last: Wang
Title: Adjustment of the Stamp Duty on Stock Transactions and Its Effect on the Chinese Stock Market
Abstract:
 This paper studies how the last three adjustments of the stamp duty on stock transactions (SDST) have affected trading behavior on the Chinese stock market. To exclude other shocks from our event study, we focus only on the SDST's short-term effects. Based on an interval autoregressive (IAR) model, we find that the SDST's effects on interval return are trivial; moreover, its ability to influence market volatility and trading volume is cast into doubt. Our empirical evidence lends support to the view that in China the SDST is not an effective policy tool.
Journal: Emerging Markets Finance and Trade
Pages: 183-196
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: accuracy ratio, Chinese stock market, interval autoregressive model, stamp duty on stock transactions
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1:p:183-196




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolan Yang
Author-X-Name-First: Xiaolan
Author-X-Name-Last: Yang
Author-Name: Yongli Luo
Author-X-Name-First: Yongli
Author-X-Name-Last: Luo
Title: Rumor Clarification and Stock Returns: Do Bull Markets Behave Differently from Bear Markets?
Abstract:
 This paper analyzes the effects of official rumor clarification on Chinese stock returns under different market conditions. The results show that the average cumulative abnormal return after the clarification event is significantly positive in a bull market, and significantly negative in a bear market. The results are robust across various types of rumors, including rumors of mergers and acquisitions, asset restructuring, and positive changes in a firm's operations. Moreover, in both bull and bear markets, investors are unable to distinguish between rumors that prove true and those that prove false, or between strong and weak rumor denial. Furthermore, investors are also unable to adjust their strategies accordingly.
Journal: Emerging Markets Finance and Trade
Pages: 197-209
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: China, rumor, rumor clarification, sentiment, stock return
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Template-Type: ReDIF-Article 1.0
Author-Name: Siong Hook Law
Author-X-Name-First: Siong Hook
Author-X-Name-Last: Law
Author-Name: W. N. W. Azman-Saini
Author-X-Name-First: W. N. W.
Author-X-Name-Last: Azman-Saini
Author-Name: Hui Boon Tan
Author-X-Name-First: Hui Boon
Author-X-Name-Last: Tan
Title: Economic Globalization and Financial Development in East Asia: A Panel Cointegration and Causality Analysis
Abstract:
 This study examines the role of economic globalization in financial development in eight East Asian economies. The heterogeneous panel cointegration test reveals that cointegration is present among economic globalization, institutions, financial development, real gross domestic product per capita, and financial reforms. The Granger causality test results indicate that economic globalization has a significant causal influence on institutional quality, and institutional reforms have in turn facilitated and supported financial development, in particular of the banking sector in East Asia. Economic globalization is also found to have a favorable causal impact on stock market development without going through the institutional quality channel.
Journal: Emerging Markets Finance and Trade
Pages: 210-225
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: economic globalization, financial development, institutions, panel data analysis
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1:p:210-225




Template-Type: ReDIF-Article 1.0
Author-Name: Miloš Kopa
Author-X-Name-First: Miloš
Author-X-Name-Last: Kopa
Author-Name: Tomáš Tichý
Author-X-Name-First: Tomáš
Author-X-Name-Last: Tichý
Title: Comparison of Mean-Risk Efficient Portfolios in Asia-Pacific Capital Markets
Abstract:
 In order to analyze the performance of mean-risk efficient portfolios, several methods of portfolio comparison have been developed. In this paper we analyze the second-order stochastic dominance efficiency of portfolios on the mean-risk efficient frontier assuming that the risk is represented by standard deviations and concordance matrices set up on the basis of Pearson's linear correlation, Spearman's rho, or Kendall's tau. Empirical analysis of the market returns of selected Asia-Pacific stock markets is carried out considering both the U.S. dollar and euro as reference currencies, and different periods: before and during the subprime crisis. Measures and portfolios on the mean-risk efficiency frontier that should be of interest to at least one risk-averse investor are empirically documented.
Journal: Emerging Markets Finance and Trade
Pages: 226-240
Issue: 1
Volume: 50
Year: 2014
Month: 1
Keywords: concordance measure, portfolio efficiency, stochastic dominance, stock index
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenchang Fang
Author-X-Name-First: Wenchang
Author-X-Name-Last: Fang
Title: Guest Editor's Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4-5
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=292X3Q097311H858
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Template-Type: ReDIF-Article 1.0
Author-Name: Werner Kristjanpoller R
Author-X-Name-First: Werner Kristjanpoller
Author-X-Name-Last: R
Author-Name: Josephine E. Olson
Author-X-Name-First: Josephine E.
Author-X-Name-Last: Olson
Title: Economic Growth in Latin American Countries: Is It Based on Export-Led or Import-Led Growth?
Abstract:
 Using a data cointegration panel with error correction, we analyze the principal theories of international trade and economic growth—export-led growth (ELG), growth-led exports (GLE), and import-led growth (ILG)—for Latin American countries. The results demonstrate that exports drive growth of gross domestic product (GDP). Although the effects of imports on growth are generally negative, in our disaggregated analysis by country, we find results for eight countries support the ELG theory, results for five countries support the ILG theory, results for one country support both theories and results for one country support neither theory. An interesting finding is the negative correlation between the impacts of exports and the impacts of imports on GDP growth, which implies that, in theory, ELG and ILG cannot exist simultaneously in a country.
Journal: Emerging Markets Finance and Trade
Pages: 6-20
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: export-led growth, import-led growth, Latin America, panel cointegration
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:6-20




Template-Type: ReDIF-Article 1.0
Author-Name: Siong Hook Law
Author-X-Name-First: Siong Hook
Author-X-Name-Last: Law
Author-Name: Hui Boon Tan
Author-X-Name-First: Hui Boon
Author-X-Name-Last: Tan
Author-Name: W. N. W. Azman-Saini
Author-X-Name-First: W. N. W.
Author-X-Name-Last: Azman-Saini
Title: Financial Development and Income Inequality at Different Levels of Institutional Quality
Abstract:
 We examine whether the relationship between financial development and income inequality varies with levels of institutional quality. The empirical evidence based on the threshold regression approach shows that there indeed exists an institutional quality threshold effect in the relationship between financial development and income inequality. Financial development tends to reduce income inequality only after a certain threshold level of institutional quality has been achieved. Until then, the effect of financial development on income inequality is nonexistent. This finding suggests that institutional quality affects the link between financial development and income inequality, reflecting the notion that better quality finance results in more equal income distribution.
Journal: Emerging Markets Finance and Trade
Pages: 21-33
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: financial development, income inequality, institutions, threshold regression
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:21-33




Template-Type: ReDIF-Article 1.0
Author-Name: Xianming Fang
Author-X-Name-First: Xianming
Author-X-Name-Last: Fang
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Title: The Promoting Effect of Financial Development on Economic Growth: Evidence from China
Abstract:
 We study the promoting effects of financial development on economic growth in China. We investigate the effects of developments in the banking, securities, and insurance sectors on the outputs of China's primary, secondary, and tertiary industries. Since China's provincial economic growth shows significant spatial dependence, we construct cross-sectional spatial regression models to study effects year by year, and panel spatial regression models to study overall effects. Empirical results show that the banking and insurance sectors provide significant promoting effects on economic growth; the promoting effect of the securities sector is uncertain.
Journal: Emerging Markets Finance and Trade
Pages: 34-50
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: economic growth, financial development, promoting effect, spatial regression model, three major industries (primary secondary and tertiary)
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:34-50




Template-Type: ReDIF-Article 1.0
Author-Name: Adel Bino
Author-X-Name-First: Adel
Author-X-Name-Last: Bino
Author-Name: Diana Abu Ghunmi
Author-X-Name-First: Diana Abu
Author-X-Name-Last: Ghunmi
Author-Name: Ibrahim Qteishat
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Qteishat
Title: Trade, Export Capacity, and World Trade Organization Membership: Evidence from Jordan
Abstract:
 We investigate the impact that membership in the World Trade Organization (WTO) has on Jordan's trade and international competitiveness. The classical gravity model is used to examine the association between membership in the WTO and Jordan's trade, imports, and most important, exports, which we use as an indicator of the country's capacity to compete internationally. We find that when Jordan and its trade partner are both members of the WTO, Jordan's trade and its contribution to world exports increase significantly. Results of robust estimation of the gravity model and the other roundness checks further confirm the significant positive association between Jordan's membership in the WTO and its trade, exports, and imports.
Journal: Emerging Markets Finance and Trade
Pages: 51-67
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: export capacity, gravity equation, trade, WTO
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:51-67




Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Bravo-Ortega
Author-X-Name-First: Claudio
Author-X-Name-Last: Bravo-Ortega
Author-Name: Jose Miguel Benavente
Author-X-Name-First: Jose Miguel
Author-X-Name-Last: Benavente
Author-Name: Álvaro González
Author-X-Name-First: Álvaro
Author-X-Name-Last: González
Title: Innovation, Exports, and Productivity: Learning and Self-Selection in Chile
Abstract:
 Both exports and innovation—in particular, research and development (R&D)—are key factors for the growth of firms and economies, but there has been little study of the combined impact of exports and innovation on growth of firms and economics, especially in developing countries. We use plant-level data from Chile to examine the relationships among productivity, R&D expenditure, and exports. We find that firms that invest in R&D are considerably more likely to export, but the reverse is not true. Even though exporting does not stimulate investment in R&D, exports and R&D have a joint effect on improving productivity. These results allow us to recover the private return of the "learning by exporting" effect across different sectors.
Journal: Emerging Markets Finance and Trade
Pages: 68-95
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: exports, innovation, productivity, R&D
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:68-95




Template-Type: ReDIF-Article 1.0
Author-Name: Hao Xu
Author-X-Name-First: Hao
Author-X-Name-Last: Xu
Author-Name: Difang Wan
Author-X-Name-First: Difang
Author-X-Name-Last: Wan
Author-Name: Ying Sun
Author-X-Name-First: Ying
Author-X-Name-Last: Sun
Title: Technology Spillovers of Foreign Direct Investment in Coastal Regions of East China: A Perspective on Technology Absorptive Capacity
Abstract:
 By establishing a foreign direct investment (FDI) technology spillover estimation model based on technology absorptive capacity and using provincial panel data of the coastal regions of East China from 2001 to 2010, we empirically conclude that FDI technology spillover effect in the coastal regions of East China is not significant. However, technology absorptive capacity is the determining factor of FDI technology spillover effect. Further analysis shows that technology absorptive capabilities respectively represented by institutional change and human resources have different effects on the endogenous economic growth and the FDI technology spillovers. To be more specific, the effect of technology absorptive capacity represented by the level of human resources on the economic growth and FDI technology spillovers is much more significant than that represented by institutional change.
Journal: Emerging Markets Finance and Trade
Pages: 96-106
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: coastal regions of East China, FDI, human resource, institutional change, technology absorptive capacity, technology spillovers
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A760587J07011U17
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:96-106




Template-Type: ReDIF-Article 1.0
Author-Name: Shih-wei Wu
Author-X-Name-First: Shih-wei
Author-X-Name-Last: Wu
Author-Name: Fengyi Lin
Author-X-Name-First: Fengyi
Author-X-Name-Last: Lin
Author-Name: Chia-ming Wu
Author-X-Name-First: Chia-ming
Author-X-Name-Last: Wu
Title: Corporate Social Responsibility and Cost of Capital: An Empirical Study of the Taiwan Stock Market
Abstract:
 We investigate the relationship between corporate social responsibility (CSR) and the cost of capital. In general, our results suggest that firms with CSR awards have lower cost of capital. In terms of firms' common risk factors, both book-to-market ratio and leverage are positively related to the cost of capital. In addition, family firms with CSR have lower cost of capital than do nonfamily firms with CSR. High earnings quality firms with CSR have significantly lower cost of capital than low earnings quality firms with CSR. Finally, firms with CSR and independent boards have lower cost of capital than firms with CSR but no independent boards.
Journal: Emerging Markets Finance and Trade
Pages: 107-120
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: cost of capital, CSR, earnings management, family firms
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:107-120




Template-Type: ReDIF-Article 1.0
Author-Name: Claudio A. Bonilla
Author-X-Name-First: Claudio A.
Author-X-Name-Last: Bonilla
Author-Name: Harold Contreras
Author-X-Name-First: Harold
Author-X-Name-Last: Contreras
Author-Name: Jean P. Sepúlveda
Author-X-Name-First: Jean P.
Author-X-Name-Last: Sepúlveda
Title: Financial Markets and Politics: The Piñera Effect on the Chilean Capital Market
Abstract:
 The 2010 presidential election in Chile marked a change from the center-left coalition that governed the country for twenty years to a center-right coalition led by politician and businessman Sebastian Piñera. We study the effect that Piñera's presidential campaign had on the Chilean capital market. By using a panel of forty-nine companies during a period of thirteen months prior to the election, we find that there was a positive and significant effect on the capital market because of the expectation that Piñera would be elected president. That expectation continued throughout the entire presidential campaign.
Journal: Emerging Markets Finance and Trade
Pages: 121-133
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: Chile, financial markets, presidential elections
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:121-133




Template-Type: ReDIF-Article 1.0
Author-Name: Fangfei Ding
Author-X-Name-First: Fangfei
Author-X-Name-Last: Ding
Author-Name: Min Chen
Author-X-Name-First: Min
Author-X-Name-Last: Chen
Author-Name: Zhongxin Wu
Author-X-Name-First: Zhongxin
Author-X-Name-Last: Wu
Title: Do Institutional Investors Use Earnings Forecasts from Financial Analysts? Evidence from China's Stock Market
Abstract:
 China has an immature stock market. The typical features of an emerging market may have impaired investors' confidence in Chinese financial analysts. We investigate the association between institutional investors' ownership holding changes and financial analysts' earnings forecast revisions. Results show that there is no significant relationship between them, which suggests that institutional investors do not adopt financial analysts' earnings forecasts when making investment decisions. The result supports the view that sophisticated Chinese institutional investors do not respond to Chinese financial analysts' reports due to lack of trust.
Journal: Emerging Markets Finance and Trade
Pages: 134-147
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: earnings forecast revisions, financial analysts, institutional investors, ownership holding changes
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:134-147




Template-Type: ReDIF-Article 1.0
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Author-Name: Sheng Yang
Author-X-Name-First: Sheng
Author-X-Name-Last: Yang
Author-Name: Wen-Si Xie
Author-X-Name-First: Wen-Si
Author-X-Name-Last: Xie
Author-Name: Zhi-Hong Han
Author-X-Name-First: Zhi-Hong
Author-X-Name-Last: Han
Title: Contemporaneous and Asymmetric Properties in the Price-Volume Relationships in China's Agricultural Futures Markets
Abstract:
 In this paper, we choose six representative futures contracts—soybean, soy meal, corn, hard wheat, strong gluten wheat, and sugar—from China's futures markets to examine predictability and market efficiency from the perspective of the price-volume relationships. Our empirical results show that there is a positive unidirectional causality relationship between volume and return (absolute return). We also find that the trading volumes behave asymmetrically in bull and bear markets, which supports the "heterogeneity of traders" hypothesis but contradicts the "short-selling constraint" hypothesis. Finally, we find that China's futures markets are predictable using historical information and thus are not informationally efficient.
Journal: Emerging Markets Finance and Trade
Pages: 148-166
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: asymmetry, China's agricultural futures market, Granger causality, heterogeneity of traders, price-volume relationship, short-selling constraint
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:148-166




Template-Type: ReDIF-Article 1.0
Author-Name: Shiqing Xie
Author-X-Name-First: Shiqing
Author-X-Name-Last: Xie
Author-Name: Jiajun Huang
Author-X-Name-First: Jiajun
Author-X-Name-Last: Huang
Title: The Impact of Index Futures on Spot Market Volatility in China
Abstract:
 Using daily data of the China Securities Index (CSI) 300 between 2005 and 2012, we employ a set of GARCH models to investigate the impact of index futures trading on the volatility of the spot market in China. Our three main findings are as follows: (1) the launch of index futures does not decrease the volatility of the spot market; (2) there is a decrease in sensitivity to new information while sensitivity to historical information increases after introduction of the CSI 300 index futures; and (3) no leverage effect is found either before or after the introduction of the CSI 300 index futures.
Journal: Emerging Markets Finance and Trade
Pages: 167-177
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: CSI 300, index futures, spot market, volatility
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:167-177




Template-Type: ReDIF-Article 1.0
Author-Name: Hyang Mi Choi
Author-X-Name-First: Hyang Mi
Author-X-Name-Last: Choi
Author-Name: Young-Gon Cho
Author-X-Name-First: Young-Gon
Author-X-Name-Last: Cho
Author-Name: Wonsik Sul
Author-X-Name-First: Wonsik
Author-X-Name-Last: Sul
Title: Ownership-Control Disparity and Foreign Investors' Ownership: Evidence from the Korean Stock Market
Abstract:
 We examine one effect of a firm's ownership-control disparity on foreign investors in emerging markets by investigating how the disparity influences foreign investors' shareholdings in Korean firms. Using a panel sample of 192 firms from 2005 to 2009, we find that foreign shareholders invest less in companies with high ownership-control disparity, which suggests that distorted ownership structure negatively affects foreign investors' shareholdings. We also find that foreign industrial investors invest less in companies with high disparity than do foreign financial investors. This study emphasizes the role of foreign investors in a globalized emerging market to the extent that foreign investors influence firms' governance with their investment decisions.
Journal: Emerging Markets Finance and Trade
Pages: 178-193
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: corporate governance, foreign industrial investors, foreign financial investors, ownership and control disparity
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:178-193




Template-Type: ReDIF-Article 1.0
Author-Name: Jinwoo Park
Author-X-Name-First: Jinwoo
Author-X-Name-Last: Park
Author-Name: Minhyuk Kim
Author-X-Name-First: Minhyuk
Author-X-Name-Last: Kim
Title: Investment Performance of Individual Investors: Evidence from the Korean Stock Market
Abstract:
 We use unique equity holdings data for each type of investor to investigate the relationship between individual investors' shareholdings and variables such as corporate characteristics and stock returns in the Korean stock market. We find that stocks with the highest individual holdings underperform stocks with the lowest individual holdings. This return difference is attributable to individual investors' uninformed stock-picking skills resulting from lack of attention given to or misinterpretation of readily accessible firm fundamentals. The results also indicate that characteristics of stocks preferred by individual investors are associated with small capitalization, low stock price, low profitability, and high turnover.
Journal: Emerging Markets Finance and Trade
Pages: 194-211
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: individual investor, investment performance, trading behavior, uninformed trader
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:194-211




Template-Type: ReDIF-Article 1.0
Author-Name: Md Hamid Uddin
Author-X-Name-First: Md Hamid
Author-X-Name-Last: Uddin
Author-Name: Sawsan Halbouni
Author-X-Name-First: Sawsan
Author-X-Name-Last: Halbouni
Author-Name: Mahendra Raj
Author-X-Name-First: Mahendra
Author-X-Name-Last: Raj
Title: Performance of Government-Linked Firms Listed on Two Stock Exchanges of the United Arab Emirates: An Empirical Study
Abstract:
 In the United Arab Emirates, the government holds ownership in 48 percent of all stock exchange-listed firms. However, prior evidence does not make clear whether the government linkage of a company via ownership holding is good or bad for the firm's performance. We propose two hypotheses. The agency hypothesis holds that government ownership negatively affects firm performance. The support hypothesis postulates that government ownership helps a firm to improve performance. Using a sample of 114 companies, we find that the government-linked companies (GLCs) have better accounting results than do the companies that are not linked to the government (non-GLCs), yet the GLCs are undervalued in the financial market. Subsample analyses reveal that the best accounting results are those of the GLCs in which the government holds 20 to 50 percent of the ownership. If the government takes control of a company by holding more than 50 percent ownership, the accounting results are not improved, yet, unlike other GLCs, these GLCs are overvalued.
Journal: Emerging Markets Finance and Trade
Pages: 212-236
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: corporate governance, firm performance, government-linked companies, government ownership
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:212-236




Template-Type: ReDIF-Article 1.0
Author-Name: Gab-Je Jo
Author-X-Name-First: Gab-Je
Author-X-Name-Last: Jo
Title: Transmission of U.S. Financial Shocks to Emerging Market Economies: Evidence from Claims by U.S. Banks
Abstract:
 I analyze how U.S. financial shocks and the U.S. business cycle, as well as the business cycles of local economies, can help explain changes in international lending by U.S. banks. I find that during the financial crisis of 2007-8, U.S. financial shocks were transmitted to emerging market economies (EMEs) via the international lending activities of U.S. banks. However, the results suggest that U.S. banks' lending activities alone cannot explain the transmission of the financial shocks to Organization for Economic Cooperation and Development countries. In addition, I find that the U.S. business cycle significantly affected U.S. bank loans to EMEs but that it did not significantly affect the banks' claims on developed countries. I also find that the business cycles in the EMEs were not the main drivers of U.S. banks' cross-border lending; in contrast, the macroeconomic conditions in the developed countries were important drivers of the cross-border lending by the banks.
Journal: Emerging Markets Finance and Trade
Pages: 237-253
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: financial crisis, financial shock, global banks, international transmission
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:237-253




Template-Type: ReDIF-Article 1.0
Author-Name: Fengyi Lin
Author-X-Name-First: Fengyi
Author-X-Name-Last: Lin
Author-Name: Lijuan Zhao
Author-X-Name-First: Lijuan
Author-X-Name-Last: Zhao
Author-Name: Liming Guan
Author-X-Name-First: Liming
Author-X-Name-Last: Guan
Title: Window Dressing in Reported Earnings: A Comparison of High-Tech and Low-Tech Companies
Abstract:
 We examine the rounding phenomenon (called <i>window dressing</i>) in financial reporting of U.S. high-tech and low-tech firms. By requiring that investments in research and development be expensed as incurred, the generally accepted accounting principles provide low-tech firms with a larger set of accounting choices with which to manipulate earnings than are provided to high-tech firms. Therefore, we find window dressing of earnings is more severe in low-tech firms than in high-tech firms. We also find that window dressing of revenues is more severe in high-tech firms than in low-tech firms. This result suggests that high-tech firms engage more in revenue management to compensate for the smaller set of accounting choices with which to manage earnings.
Journal: Emerging Markets Finance and Trade
Pages: 254-264
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: accounting standards, digit analysis, earnings management, high-tech companies, intangible assets, low-tech companies
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:254-264




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Saona Hoffmann
Author-X-Name-First: Paolo Saona
Author-X-Name-Last: Hoffmann
Author-Name: Mauricio Jara Bertín
Author-X-Name-First: Mauricio Jara
Author-X-Name-Last: Bertín
Author-Name: Marta Moreno Warleta
Author-X-Name-First: Marta Moreno
Author-X-Name-Last: Warleta
Title: Firm Size as Determinant of the Nonlinear Relationship Between Bank Debt and Growth Opportunities: The Case of Chilean Public Firms
Abstract:
 We analyze the extent to which firm size determines the relationship between growth opportunities and bank debt in the Chilean corporate sector. Using generalized method of moments (GMM) system estimator techniques in an unbalanced panel data of quoted firms, we provide evidence of a U-shaped relationship between growth opportunities and bank debt, which has a different behavior depending on the firm's size. Smaller firms seek private debt sooner than larger firms do when growth opportunities increase. This finding is supported by the institutional characteristics of the Chilean financial system, the higher confidence of small firms in bank debt, and the bank-based orientation of the Chilean financial markets.
Journal: Emerging Markets Finance and Trade
Pages: 265-293
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: bank debt, Chilean public firms, firm size, growth opportunities
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:265-293




Template-Type: ReDIF-Article 1.0
Author-Name: Rahmi Erdem Aktug
Author-X-Name-First: Rahmi Erdem
Author-X-Name-Last: Aktug
Title: A Critique of the Contingent Claims Approach to Sovereign Risk Analysis
Abstract:
 In this paper, I examine the contingent claims approach (CCA) to measuring sovereign risk. Specifically, I extend previous work in this area and apply the CCA framework to three emerging markets—Brazil, Mexico, and Turkey—over the period 2001-10. I find that the CCA underestimates credit default swap spreads and default probabilities. Consequently, I point out the shortcomings of the CCA and suggest some remedies.
Journal: Emerging Markets Finance and Trade
Pages: 294-308
Issue: 1S
Volume: 50
Year: 2014
Month: 1
Keywords: contingent claims, credit default swap, default probability, sovereign risk
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:1S:p:294-308




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: 
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2S:p:4




Template-Type: ReDIF-Article 1.0
Author-Name: Jiangang Peng
Author-X-Name-First: Jiangang
Author-X-Name-Last: Peng
Author-Name: Nicolaas Groenewold
Author-X-Name-First: Nicolaas
Author-X-Name-Last: Groenewold
Author-Name: Xiangmei Fan
Author-X-Name-First: Xiangmei
Author-X-Name-Last: Fan
Author-Name: Guanzheng Li
Author-X-Name-First: Guanzheng
Author-X-Name-Last: Li
Title: Financial System Reform and Economic Growth in a Transition Economy: The Case of China, 1978-2004
Abstract:
 We examine the relationship between financial system reform and growth using data for China, which has undergone extensive financial liberalization since 1978. We construct an index of financial liberalization by combining the "Delphi method" and principal components analysis to combine eight aspects of the reform process for 1978 to 2004 and address the finance-growth nexus within a vector autoregressive model of growth, saving, and liberalization. We find robust evidence of significant positive effects of liberalization on growth in the short run and on accumulated growth in the long run but only weak effects on saving. Liberalization significantly causes both growth and saving, but there are no significant feedback effects to liberalization.
Journal: Emerging Markets Finance and Trade
Pages: 5-22
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: China, Delphi method, economic growth, financial liberalization
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2S:p:5-22




Template-Type: ReDIF-Article 1.0
Author-Name: Mu-Shun Wang
Author-X-Name-First: Mu-Shun
Author-X-Name-Last: Wang
Title: Financial Innovation, Basel Accord III, and Bank Value
Abstract:
 I examine how financial innovation and Basel III capital requirements in Taiwan respond differently to banking crises and market competition. My panel data set comprises data from thirty-four banks for 2000-2012. I find a significant negative relationship between derivatives and the value of a bank and significant positive relationships among the capital adequacy ratio, bank-specific variables, and the value of a bank. Larger bank size and operational diversification tend to be positively associated with a bank's value, the holding of a relatively high amount of capital requirements, and nonperforming loans that are large. The latter result may simply reflect the scale of economy and improvement of efficiency in terms of financial innovation in the banking sector.
Journal: Emerging Markets Finance and Trade
Pages: 23-42
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: bank-specific variables, Basel III, capital adequacy ratio, financial innovation, panel data
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2S:p:23-42




Template-Type: ReDIF-Article 1.0
Author-Name: Minshik Shin
Author-X-Name-First: Minshik
Author-X-Name-Last: Shin
Author-Name: Sooeun Kim
Author-X-Name-First: Sooeun
Author-X-Name-Last: Kim
Title: The Effects of Private Investments in Public Equity on R&D Investment in Small and Medium-Size Enterprises
Abstract:
 This paper provides evidence that small and medium-size enterprises (SMEs) use a portion of private investments in public equity (PIPEs) for current research and development (R&D) investment, hold the rest in liquidity reserves such as cash assets and working capital, and ultimately use these reserves to smooth R&D investment. That is, PIPEs may have a direct effect on R&D investment and an indirect or smoothing effect using liquidity reserves. This paper also shows that innovative SMEs such as venture businesses, inno-biz firms, and management innovative firms are more likely to use PIPEs for R&D investment than are noninnovative SMEs. The implications of this paper are that PIPEs can be used as an important source of external financing to fund R&D investment and can be particularly valuable for R&D investment in innovative SMEs.
Journal: Emerging Markets Finance and Trade
Pages: 43-59
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: inno-biz firms, liquidity reserves, PIPEs, R&D investment, venture businesses
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2S:p:43-59




Template-Type: ReDIF-Article 1.0
Author-Name: Hao Fang
Author-X-Name-First: Hao
Author-X-Name-Last: Fang
Author-Name: Yang-Cheng Lu
Author-X-Name-First: Yang-Cheng
Author-X-Name-Last: Lu
Author-Name: Hwey-Yun Yau
Author-X-Name-First: Hwey-Yun
Author-X-Name-Last: Yau
Title: The Effects of Stock Characteristics on the Direction and Extent of Herding by Foreign Institutional Investors in the Taiwan Stock Exchange
Abstract:
 We use a dynamic herding measure to explore the causes of foreign institutional investor (FII) herding in the Taiwan stock market and examine the effects of stock characteristics on the direction and extent of such herding. We find that FII herding primarily results from cascades rather than habit investing or momentum trading. The result of a panel smooth transition regression shows that FIIs' negative cascades focus on their largest net purchases of stocks, but FIIs' positive cascades focus on winner and small-sized stocks. To increase portfolio returns, investors can use FIIs' cascades to inform their stock purchases.
Journal: Emerging Markets Finance and Trade
Pages: 60-74
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: FII, herding, informational cascades, momentum trading, PSTR, stock characteristics
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2S:p:60-74




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Cuadros
Author-X-Name-First: Ana
Author-X-Name-Last: Cuadros
Author-Name: Maite Alguacil
Author-X-Name-First: Maite
Author-X-Name-Last: Alguacil
Title: Productivity Spillovers Through Foreign Transactions: The Role of Sector Composition and Local Conditions
Abstract:
 We analyze the roles of inward foreign direct investment (FDI) and imports of capital goods as the main drivers of technology diffusion and productivity improvement in a sample of twenty-eight developing economies for the period 1999-2009. We examine changes in the sectoral composition of FDI as well as those local conditions that may facilitate technology adoption. Our results, obtained by the system generalized method of moments estimation method, suggest that the change of FDI from manufacturing to services is productivity enhancing. We also find that those countries with stronger institutions and better social and human development enjoy larger efficiency gains.
Journal: Emerging Markets Finance and Trade
Pages: 75-88
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: developing and emerging economies, imports of capital goods, local conditions, manufacturing and services FDI, productivity
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2S:p:75-88




Template-Type: ReDIF-Article 1.0
Author-Name: Somrasri Yupho
Author-X-Name-First: Somrasri
Author-X-Name-Last: Yupho
Author-Name: Xianguo Huang
Author-X-Name-First: Xianguo
Author-X-Name-Last: Huang
Title: Portfolio Capital Flows in Thailand: A Bayesian Model Averaging Approach
Abstract:
 We study the gross and net terms of portfolio capital flows by examining their determinants. Through the application of the Bayesian model averaging method, the determinants are evaluated by a set of models instead of a single specification. Our findings show that the magnitude of both gross equity and gross debt flows are large, relative to their net terms. Equity inflows and outflows are quite symmetric with similar determinants; debt inflows and outflows are less symmetric. The paper provides partial evidence to support the importance of both internal and external factors as determinants of capital flows.
Journal: Emerging Markets Finance and Trade
Pages: 89-99
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: Bayesian model averaging, debt flows, equity flows, gross capital flows, portfolio capital flows
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2S:p:89-99




Template-Type: ReDIF-Article 1.0
Author-Name: Lu Liu
Author-X-Name-First: Lu
Author-X-Name-Last: Liu
Title: Spring Transportation in China: The Peak-Load Problem with Psychological Factors
Abstract:
 Every year around the time of the Chinese New Year, hundreds of millions of people in China return to their hometowns, placing huge pressure on the transportation infrastructure. However, a link between the theoretical model and the Chinese context is missing. This paper provides an in-depth look at the capacity shortage of transportation during Spring Transportation in China. I use a discrete choice model to determine the travel decision mechanism for the potential traveler and extend this model from a single traveler to multiple heterogeneous travelers based on travel distances and the emotional amenity of family reunions.
Journal: Emerging Markets Finance and Trade
Pages: 100-113
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: discrete choice model, monopolistic transportation supplier, peak-load problem, psychological factors, Spring Transportation
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Template-Type: ReDIF-Article 1.0
Author-Name: Go Yano
Author-X-Name-First: Go
Author-X-Name-Last: Yano
Author-Name: Maho Shiraishi
Author-X-Name-First: Maho
Author-X-Name-Last: Shiraishi
Title: Factors in the Development of Trade Credit: Case Study of Provinces in China
Abstract:
 Using Chinese province-level panel data for 2001-9, we investigate significant factors for the development of financial intermediation via trade credit in developing economies. First, we confirm that a competitive market environment, a well-functioning legal system, and greater bank loans for non-state-sector firms promote the development of trade credit in China. Conversely, corruption hinders its development. Second, we find that proper functioning of the legal system and bank lending to non-state-sector firms are highly likely to be the causes of the complex relationships between these determinants. Finally, we observe that an increase in the number of lawyers effectively improves the quality and function of the legal system, which, in turn, alleviates the harmful influence of corruption on trade credit development.
Journal: Emerging Markets Finance and Trade
Pages: 114-134
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: bank loans for non-state-sector firms, competitive market, corruption, trade credit development in China, well-functioning legal system
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2S:p:114-134




Template-Type: ReDIF-Article 1.0
Author-Name: Ping Qing
Author-X-Name-First: Ping
Author-X-Name-Last: Qing
Author-Name: Aiqin Xi
Author-X-Name-First: Aiqin
Author-X-Name-Last: Xi
Author-Name: Wuyang Hu
Author-X-Name-First: Wuyang
Author-X-Name-Last: Hu
Title: Consumer Preference for Meat in China: A Case Study of Beijing
Abstract:
 We analyze Chinese consumer preferences for pork shoulder-cut attributes during the recent period of fluctuating food prices caused by production and market anomalies. Consumers were randomly sampled in Beijing, China. Results indicate that consumers place great importance on where they purchase pork products as well as on whether the animals are raised with organic feed. Whether pork is fresh or previously frozen does not appear to matter much to consumers. This may provide partial support for the Chinese government's policy of using frozen pork reserves to stabilize pork prices.
Journal: Emerging Markets Finance and Trade
Pages: 135-143
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: Chinese, pork, price, quality
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Template-Type: ReDIF-Article 1.0
Author-Name: Cherng G. Ding
Author-X-Name-First: Cherng G.
Author-X-Name-Last: Ding
Author-Name: Hung-Jui Wang
Author-X-Name-First: Hung-Jui
Author-X-Name-Last: Wang
Author-Name: Meng-Che Lee
Author-X-Name-First: Meng-Che
Author-X-Name-Last: Lee
Author-Name: Wen-Chi Hung
Author-X-Name-First: Wen-Chi
Author-X-Name-Last: Hung
Author-Name: Chieh-Peng Lin
Author-X-Name-First: Chieh-Peng
Author-X-Name-Last: Lin
Title: How Does the Change in Investor Sentiment over Time Affect Stock Returns?
Abstract:
 We examine how the change in investor sentiment (IS) over time (the IS trend) affects stock returns. The turnover rates of trading shares, trading value, and transactions, three market measures of trading activity, have been demonstrated to meet the psychometric criteria for measuring the IS trend. The ratio of market price to book value and the short-selling turnover ratio are inappropriate proxies. The empirical results indicate that the influence of the IS trend on returns depends on the direction of the trend (optimistic or pessimistic) and stock characteristics of individual holdings and on arbitrage constraint. The effectiveness of arbitrage, sentiment-driven mispricing, and market intervention are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 144-158
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: arbitrage, confirmatory factor analysis, investor sentiment, market intervention, sentiment-driven mispricing, stock returns
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Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Feng Hsu
Author-X-Name-First: Ming-Feng
Author-X-Name-Last: Hsu
Author-Name: Kehluh Wang
Author-X-Name-First: Kehluh
Author-X-Name-Last: Wang
Title: The Level and Stability of Institutional Ownership and Firm Performance: Evidence from Taiwan
Abstract:
 The purpose of this paper is to investigate the influence of shareholding stability of institutional investors on firm performance. We analyze 647 sample companies listed in the Taiwan Stock Exchange from 2005 to 2009 using the coefficient of variance of institutional holding proportion as the measure for ownership stability. The empirical results show that increasing stability of institutional holdings is related to better firm performance. The low-risk and younger firms with higher CEO incentive compensation, larger insider holdings, and higher growth usually have better performance. Furthermore, when the long-term institutional shareholdings, particularly of foreign institutions, are higher, the firm performance is better.
Journal: Emerging Markets Finance and Trade
Pages: 159-173
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: firm performance, institutional ownership, ownership stability
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Template-Type: ReDIF-Article 1.0
Author-Name: Jean Yu
Author-X-Name-First: Jean
Author-X-Name-Last: Yu
Author-Name: Hung-Hsi Huang
Author-X-Name-First: Hung-Hsi
Author-X-Name-Last: Huang
Author-Name: Shu-Wei Hsu
Author-X-Name-First: Shu-Wei
Author-X-Name-Last: Hsu
Title: Investor Sentiment Influence on the Risk-Reward Relation in the Taiwan Stock Market
Abstract:
 We examine the influence of investor sentiment on the risk-reward relationship in the Taiwan stock market. Regression results show that the risk-reward relationship is weakly positive (significantly negative) under low (high) levels of investor sentiment. Granger causality tests indicate unidirectional, not bidirectional, causal relationships. Moreover, the negative return-variance relationship is more strongly characteristic of the over-the-counter index than of the Taiwan Stock Exchange weighted index, indicating that an unreasonable risk-reward trade-off may be more prevalent in emerging markets than in mature markets. Finally, the Wald test demonstrates that industry effects on the risk-reward relationship may be negligible.
Journal: Emerging Markets Finance and Trade
Pages: 174-188
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: Granger causality test, investor sentiment, risk-reward relation, stock return, volatility
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Template-Type: ReDIF-Article 1.0
Author-Name: Tung-Hao Lee
Author-X-Name-First: Tung-Hao
Author-X-Name-Last: Lee
Author-Name: Shu-Hwa Chih
Author-X-Name-First: Shu-Hwa
Author-X-Name-Last: Chih
Title: Does Financial Restructuring Change the Relationship Between Corporate Governance and the Static and Dynamic Efficiency of Bank Mergers in Taiwan?
Abstract:
 Taiwan's Financial Restructuring Fund Statute was enacted in 2001. This study is unique in simultaneously considering Taiwan's corporate governance, bank mergers, and the financial restructuring scheme. Unlike other literature that investigates only the characteristics of corporate governance that affect the concurrent static efficiency of bank mergers, we further use the dynamic slacks-based measure to examine the persistent and intertemporal effects on the dynamic efficiency of bank mergers. The results of this study show that major shareholders of acquiring banks have greater controlling power to decide whether to merge during the financial restructuring period. A bank merger using the financial restructuring scheme has less static and dynamic efficiency in the short run but gradually increased static and dynamic efficiency in the long run. Such an observation is consistent with the hypothesis that controlling shareholders pursue long-term efficiency in a bank merger.
Journal: Emerging Markets Finance and Trade
Pages: 189-201
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: bank merger, corporate governance, data envelopment analysis, financial restructuring, static and dynamic efficiency
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Template-Type: ReDIF-Article 1.0
Author-Name: Jonchi Shyu
Author-X-Name-First: Jonchi
Author-X-Name-Last: Shyu
Author-Name: Jia-Chi Lin
Author-X-Name-First: Jia-Chi
Author-X-Name-Last: Lin
Author-Name: Chi-Chong Chang
Author-X-Name-First: Chi-Chong
Author-X-Name-Last: Chang
Title: Do Focused Funds Offer Superior Performance in an Emerging Market? Evidence from Taiwan's Stock Market
Abstract:
 We examine the effects of the number of stock holdings and industry concentration on Taiwan's equity fund performance. The quadratic regression model is applied to explore the optimal number of stock holdings for mutual funds. The empirical results suggest that funds with a smaller number of stock holdings and with a higher level of industry concentration achieve better performance. We also find that mutual fund performance and the number of stock holdings have an inverted U-shaped relationship, and funds that hold twenty-four to twenty-eight stocks can generate superior performance.
Journal: Emerging Markets Finance and Trade
Pages: 202-218
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: emerging market, focused funds, industry concentration, mutual fund performance, optimal number of stock holdings
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Template-Type: ReDIF-Article 1.0
Author-Name: Weiran Wang
Author-X-Name-First: Weiran
Author-X-Name-Last: Wang
Title: The Effects of Regional Integration in Central Asia
Abstract:
 Since gaining independence, Central Asian countries have created and joined many regional economic organizations. It is not clear whether these organizations, especially the Eurasian Economic Community (EurAsEC), have boosted integration of this region. In this paper, I conclude that exports of Central Asian countries have benefited from integration but EurAsEC has failed to live up to the expectations of its member states. This is due mainly to the different levels of economic development, defective industrial structures, and poor marketization in EurAsEC member states. At present, an initial market-based trade integration network has formed in Central Asia and has had excellent accomplishments, but the governments of Central Asian countries have still not realized the network's function and advantage.
Journal: Emerging Markets Finance and Trade
Pages: 219-232
Issue: 2S
Volume: 50
Year: 2014
Month: 3
Keywords: bazaar trade, domino, spaghetti bowl phenomenon
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Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: 
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Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Author-Name: Harminder Singh
Author-X-Name-First: Harminder
Author-X-Name-Last: Singh
Title: The Determinants of Stock Prices: New Evidence from the Indian Banking Sector
Abstract:
 We examine the determinants of stock prices for major Indian banks using panel data modeling techniques. Our work is novel because, for the first time in the literature on Indian banking, we use a panel Granger causality test that reveals the direction and sign of causality. We find evidence of panel cointegration among stock prices, economic activity, interest rates, and exchange rates for thirteen banks. Our results suggest that while economic activity and currency depreciation contribute to a rise in share prices, an increase in the interest rate reduces bank share prices. Moreover, only economic activity Granger-causes stock prices in the long run.
Journal: Emerging Markets Finance and Trade
Pages: 5-15
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: 
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Template-Type: ReDIF-Article 1.0
Author-Name: Luis Berggrun
Author-X-Name-First: Luis
Author-X-Name-Last: Berggrun
Author-Name: Samuel Mongrut
Author-X-Name-First: Samuel
Author-X-Name-Last: Mongrut
Author-Name: Benito Umaña
Author-X-Name-First: Benito
Author-X-Name-Last: Umaña
Author-Name: Gyorgy Varga
Author-X-Name-First: Gyorgy
Author-X-Name-Last: Varga
Title: Persistence in Equity Fund Performance in Brazil
Abstract:
 We examine performance persistence in the large and growing Brazilian equity fund market from 2000 to 2012. We find a significant risk-adjusted spread between a portfolio of top- and bottom-performing funds, which supports the idea that performance persists. This spread remains after controlling for market, size, distress, and momentum risk factors and tends to be larger and more significant for a set of small and retail funds. The spread is mostly driven by the underperformance of the bottom decile of funds, which is consistent with the existence of some fund managers with insufficient skills to recover investment costs.
Journal: Emerging Markets Finance and Trade
Pages: 16-33
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: equity fund performance, Latin America, persistence
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Template-Type: ReDIF-Article 1.0
Author-Name: Hongbok Lee
Author-X-Name-First: Hongbok
Author-X-Name-Last: Lee
Author-Name: Sekyung Oh
Author-X-Name-First: Sekyung
Author-X-Name-Last: Oh
Author-Name: Kwangwoo Park
Author-X-Name-First: Kwangwoo
Author-X-Name-Last: Park
Title: How Do Capital Structure Policies of Emerging Markets Differ from Those of Developed Economies? Survey Evidence from Korea
Abstract:
 We examine the capital structure policies of Korean firms using survey data for business group <i>(chaebol)</i> firms and independent firms. Our results are compared with findings in earlier studies for developed economies: Graham and Harvey (2001) for the United States and Brounen et al. (2004, 2006) for Europe. Korean chief financial officers are concerned about financial flexibility and volatility of earnings when issuing debt; they are concerned about target debt ratio maintenance and recent stock price increases when issuing equity. In contrast to independent firms, chaebol firms are more concerned about differences in corporate tax rates between foreign and domestic markets and the risk of refinancing in bad times. Chaebol firms are less likely to issue debt when faced with insufficient internal funds, which indicates that active internal capital markets are at work among the firms in a business group. Our results suggest that, compared to U. S. and European firms, Korean firms are under more pressure from their peers in formulating capital structure policies, consider equity a cheap source of financing, are less concerned with the dilution of earnings per share, and less frequently provide shares to employees as compensation.
Journal: Emerging Markets Finance and Trade
Pages: 34-72
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: capital structure, chaebol firms, pecking-order model, survey evidence, trade-off theory
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Template-Type: ReDIF-Article 1.0
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Maobin Wang
Author-X-Name-First: Maobin
Author-X-Name-Last: Wang
Title: The Manipulator's Poker: Order-Based Manipulation in the Chinese Stock Market
Abstract:
 This paper investigates order-based manipulation and its effects on investor behavior and market efficiency. Using a unique data set from the Chinese stock market, we show that (1) order-based manipulation affects market liquidity and trading behavior, (2) the manipulator pretends to be informed or expects to be seen as informed by choosing a "right" time to implement the manipulation, and (3) the manipulation rapidly changes investor reaction to the market order/depth imbalance in the short run, and the effect gradually drops during the postmanipulation period. Our results are robust to alternative measures and offer clear implications for both theory and policy.
Journal: Emerging Markets Finance and Trade
Pages: 73-98
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: depth imbalance, order-based manipulation, order imbalance, spoofing order
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Template-Type: ReDIF-Article 1.0
Author-Name: Sumru Altuğ
Author-X-Name-First: Sumru
Author-X-Name-Last: Altuğ
Title: Guest Editor's Introduction
Abstract:
 This paper investigates order-based manipulation and its effects on investor behavior and market efficiency. Using a unique data set from the Chinese stock market, we show that (1) order-based manipulation affects market liquidity and trading behavior, (2) the manipulator pretends to be informed or expects to be seen as informed by choosing a "right" time to implement the manipulation, and (3) the manipulation rapidly changes investor reaction to the market order/depth imbalance in the short run, and the effect gradually drops during the postmanipulation period. Our results are robust to alternative measures and offer clear implications for both theory and policy.
Journal: Emerging Markets Finance and Trade
Pages: 99-101
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: depth imbalance, order-based manipulation, order imbalance, spoofing order
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2:p:99-101




Template-Type: ReDIF-Article 1.0
Author-Name: Péter Benczúr
Author-X-Name-First: Péter
Author-X-Name-Last: Benczúr
Author-Name: Attila Rátfai
Author-X-Name-First: Attila
Author-X-Name-Last: Rátfai
Title: Business Cycles Around the Globe: Some Key Facts
Abstract:
 We document massive heterogeneity in basic cyclical patterns within groups of developed and emerging market economies. While we detect marked differences between developed and emerging countries as well, the distributions of key business cycle statistics tend to overlap across different country groups.
Journal: Emerging Markets Finance and Trade
Pages: 102-109
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: business cycles, open economies
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2:p:102-109




Template-Type: ReDIF-Article 1.0
Author-Name: Maximo Camacho
Author-X-Name-First: Maximo
Author-X-Name-Last: Camacho
Author-Name: Gabriel Perez-Quiros
Author-X-Name-First: Gabriel
Author-X-Name-Last: Perez-Quiros
Title: Commodity Prices and the Business Cycle in Latin America: Living and Dying by Commodities?
Abstract:
 We analyze the dynamic interactions between commodity prices and output growth of the seven biggest Latin American exporters: Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela. Using a novel definition of Markov-switching impulse response functions, we find that the response of each country's output growth to commodity price shocks is time dependent, size dependent, and sign dependent. The major evidence of asymmetries in output growth responses occurs when commodity price shocks lead to regime shifts. Thus, we conclude that the design of optimal countercyclical stabilization policies should consider that the reactions of economic activity vary considerably across business cycle regimes.
Journal: Emerging Markets Finance and Trade
Pages: 110-137
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: business cycles, commodity prices, output growth
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2:p:110-137




Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Chuan Della Chang
Author-X-Name-First: Jui-Chuan Della
Author-X-Name-Last: Chang
Author-Name: Chen-Jui Huang
Author-X-Name-First: Chen-Jui
Author-X-Name-Last: Huang
Author-Name: I-Che Chien
Author-X-Name-First: I-Che
Author-X-Name-Last: Chien
Title: Cost Channel of Monetary Policy: Financial Frictions and External Shocks
Abstract:
 This paper deepens our understanding of the importance of the cost channel of monetary policy, where inflation adjusts with a firm's marginal cost of working capital. A model extended for a small, open economy with financial frictions is proposed and examined with data from Taiwan. The cost channel effect on inflation adjustment is substantiated by simultaneous generalized method of moments estimations and appears to be strengthened by financial frictions but mitigated by external shocks. Greater caution is hence required in the conduct of monetary policy for a bank-dependent emerging economy such as Taiwan because of the relative complexity in its supply-side interest rate pass-through.
Journal: Emerging Markets Finance and Trade
Pages: 138-152
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: cost channel, external shock, financial friction, monetary policy
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2:p:138-152




Template-Type: ReDIF-Article 1.0
Author-Name: Stelios Karagiannis
Author-X-Name-First: Stelios
Author-X-Name-Last: Karagiannis
Author-Name: Yannis Panagopoulos
Author-X-Name-First: Yannis
Author-X-Name-Last: Panagopoulos
Author-Name: Prodromos Vlamis
Author-X-Name-First: Prodromos
Author-X-Name-Last: Vlamis
Title: The Response of Bank Retail Rates to Money Market Rates in the BRIC Economies: An Application of the Disaggregated GETS Model
Abstract:
 The purpose of this paper is to examine the interest rate transmission mechanism for the emerging BRIC economies (Brazil, Russia, India, and China). We analyze the way interbank rates are transmitted to the bank retail rates, and we test the symmetry hypothesis. A disaggregated general-to-specific model is applied for estimating interest rate pass-through and examining whether retail rates respond symmetrically or asymmetrically to upward/downward interbank rate changes. Overall, our empirics show evidence of sluggish and incomplete pass-through from market rates to bank loan and deposit rates. We show that banks' speed of upward and downward adjustment behavior is symmetric in both loan and deposit markets.
Journal: Emerging Markets Finance and Trade
Pages: 153-168
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: BRIC economies, disaggregated general-to-specific model, interest rate pass-through
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2:p:153-168




Template-Type: ReDIF-Article 1.0
Author-Name: Halit Gonenc
Author-X-Name-First: Halit
Author-X-Name-Last: Gonenc
Author-Name: Daniel J. de Haan
Author-X-Name-First: Daniel J.
Author-X-Name-Last: de Haan
Title: Firm Internationalization and Capital Structure in Developing Countries: The Role of Financial Development
Abstract:
 We investigate the relationship between internationalization and the level of debt financing for more than 18,000 firm/year observations from thirty-one developing countries in the period 1991-2006. We argue that this relationship can be affected by both country-level and firm-level factors. The results show that in developing countries with relatively higher financial development, firm internationalization corresponds with a greater level of debt when firms have more growth opportunities (which also indicate a higher level of asymmetric information). This evidence suggests that relatively developed financial markets in developing countries at least partially mitigate the effect of asymmetric information and decrease the agency cost of debt for firms with higher levels of internationalization.
Journal: Emerging Markets Finance and Trade
Pages: 169-189
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: agency cost of debt, capital structure, developing countries, financial development, firm internationalization
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2:p:169-189




Template-Type: ReDIF-Article 1.0
Author-Name: Murat Taşdemir
Author-X-Name-First: Murat
Author-X-Name-Last: Taşdemir
Author-Name: Abdullah Yalama
Author-X-Name-First: Abdullah
Author-X-Name-Last: Yalama
Title: Volatility Spillover Effects in Interregional Equity Markets: Empirical Evidence from Brazil and Turkey
Abstract:
 We investigate volatility spillovers between two stock markets: Turkey and Brazil. Using a misspecification-robust causality-in-variance test, we find evidence supporting volatility spillovers from the São Paulo Stock Exchange to the Istanbul Stock Exchange. Moreover, the results imply that financial crises may change the nature of volatility spillovers between the two markets by adding an additional channel of volatility transmission from Turkey to Brazil.
Journal: Emerging Markets Finance and Trade
Pages: 190-202
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: Brazil, causality-in-variance, emerging markets, Turkey, volatility spillovers
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2:p:190-202




Template-Type: ReDIF-Article 1.0
Author-Name: Zaigui Yang
Author-X-Name-First: Zaigui
Author-X-Name-Last: Yang
Title: Public Pensions and Public Rental Housing
Abstract:
 It is possible for the Chinese public pension and public rental housing to finance each other in the long term. Employing an overlapping generations (OLG) model, I examine the effects of the individual contribution rate, firm contribution rate, rent rate of public rental housing, and population growth rate on the capital-labor ratio, per capita consumption, per capita acreage of public rental housing, and per capita public rental housing property. According to economic goals, their effects, and their intensities, it does more good than harm to raise the individual contribution rate, reduce the firm contribution rate and rent rate of public rental housing, and restrict population growth rate.
Journal: Emerging Markets Finance and Trade
Pages: 203-213
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: public pension, public rental housing
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2:p:203-213




Template-Type: ReDIF-Article 1.0
Author-Name: Huseyin Kaya
Author-X-Name-First: Huseyin
Author-X-Name-Last: Kaya
Author-Name: M. Ege Yazgan
Author-X-Name-First: M. Ege
Author-X-Name-Last: Yazgan
Title: Probability Forecasts of Macroaggregates in the Turkish Economy
Abstract:
 We provide probability forecasts of key Turkish macroeconomic variables such as inflation and output growth. The probability forecasts are derived from a core vector error correction model of the Turkish economy and its several variants. We use model and window averaging to address uncertainties arising from estimated models and possible structural breaks. The performances of the different models and their combinations are evaluated using relevant forecast accuracy tests in different pseudo out-of-sample settings. The results indicate that successful directional forecasts can be obtained for output growth and inflation. Averaging over both the models and the estimation windows improves the level of accuracy of the forecasts.
Journal: Emerging Markets Finance and Trade
Pages: 214-229
Issue: 2
Volume: 50
Year: 2014
Month: 3
Keywords: forecast combinations, forecasting and structural breaks, probability forecasts, Turkish economy
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:2:p:214-229




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords:
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:4




Template-Type: ReDIF-Article 1.0
Author-Name: Abu S. Amin
Author-X-Name-First: Abu S.
Author-X-Name-Last: Amin
Author-Name: Lucjan T. Orlowski
Author-X-Name-First: Lucjan T.
Author-X-Name-Last: Orlowski
Title: Returns, Volatilities, and Correlations Across Mature, Regional, and Frontier Markets: Evidence from South Asia
Abstract:
 We investigate returns, volatilities, and correlations across mature, dominant regional, and frontier equity markets. Standard & Poor's 500 is chosen as a mature equity market; India is chosen as a dominant regional market; and Bangladesh, Pakistan, and Sri Lanka are chosen as frontier markets. Our empirical tests show that the frontier markets remain fundamentally decoupled from the mature markets during normal market periods. During turbulent times, the contagion effects from the mature to the frontier markets become more pronounced. The results suggest that the dominant regional market plays a key role in disseminating shocks across the frontier markets during normal periods; during the turbulent recent financial crisis period, a similar contagion is not observed.
Journal: Emerging Markets Finance and Trade
Pages: 5-27
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: emerging financial markets, dynamic conditional correlation, frontier markets, mature financial markets, regional financial markets, volatility spillovers
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:5-27




Template-Type: ReDIF-Article 1.0
Author-Name: Gonul Sengul
Author-X-Name-First: Gonul
Author-X-Name-Last: Sengul
Title: Ins and Outs of Unemployment in Turkey
Abstract:
 This paper analyzes rates of inflow to and outflow from unemployment for Turkey. From 2006 to 2011, the average rate of exiting unemployment (outflow) within a month was 9.5 percent, the average rate of entering unemployment from out of the labor force was 0.1 percent, and the average rate of transiting from employment to unemployment was 1.1 percent. This paper decomposes changes in unemployment into contributions from inflow and outflow rates, revealing that the volatility of inflow rates is the main driving force of the change in the unemployment rate in Turkey. It also shows that incorporating monthly changes in the labor force into the analysis, as opposed to assuming a constant labor force, affects the results quantitatively.
Journal: Emerging Markets Finance and Trade
Pages: 28-44
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: job finding rate, separation rate, unemployment, worker flows
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:28-44




Template-Type: ReDIF-Article 1.0
Author-Name: Jennifer T. Lai
Author-X-Name-First: Jennifer T.
Author-X-Name-Last: Lai
Author-Name: Erin P.K. So
Author-X-Name-First: Erin P.K.
Author-X-Name-Last: So
Author-Name: Isabel K.M. Yan
Author-X-Name-First: Isabel K.M.
Author-X-Name-Last: Yan
Title: Intergovernmental Fiscal Arrangements and Provincial Consumption Risk Sharing in China
Abstract:
 This paper utilizes a panel data set on two major fiscal reforms in China—the fiscal contract system (FCS) in 1980-93 and the tax-sharing system (TSS) after 1994—to examine how the various aspects of intergovernmental fiscal arrangement affect the ability of the fiscal system to facilitate risk sharing. The high revenue decentralization and the proliferation of extrabudgetary revenue items in the FCS generally weakened the central government's ability to support interprovincial risk sharing. This situation was reversed in the TSS period. In addition, the effect of central-to-local transfer (transfer-in) and local-to-central transfer (transfer-out) on risk sharing was asymmetric in the sense that transfer-out enhances risk sharing but transfer-in does not.
Journal: Emerging Markets Finance and Trade
Pages: 45-58
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: divergence and convergence of fiscal decentralization, fiscal decentralization, fiscal reform, intergovernmental fiscal relations, provincial consumption risk sharing, transfer system
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:45-58




Template-Type: ReDIF-Article 1.0
Author-Name: Jing Shi
Author-X-Name-First: Jing
Author-X-Name-Last: Shi
Author-Name: Fei Wu
Author-X-Name-First: Fei
Author-X-Name-Last: Wu
Title: Guest Editors' Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 59-61
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=70289480V7780010
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:59-61




Template-Type: ReDIF-Article 1.0
Author-Name: Jiaxing You
Author-X-Name-First: Jiaxing
Author-X-Name-Last: You
Author-Name: Chun Liu
Author-X-Name-First: Chun
Author-X-Name-Last: Liu
Author-Name: Guqian Du
Author-X-Name-First: Guqian
Author-X-Name-Last: Du
Title: With Economic Integration Comes Financial Contagion? Evidence from China
Abstract:
 China's economy has maintained a rapid growth rate over the past two decades; however, its stock market has exhibited a very different level of performance during financial crises. In this paper, we try to explain this phenomenon and answer two important questions: Is there financial contagion in China? Can economic integration aggravate financial contagion? We construct a composite index of economic integration by reviewing the incremental reform and opening-up process in China's financial markets. We utilize a dynamic conditional correlation model to capture the correlations between stock returns of China and those of other important markets around the world. The empirical results provide positive evidence for the aforementioned two questions.
Journal: Emerging Markets Finance and Trade
Pages: 62-80
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: DCC model, financial contagion, financial liberalization, trade liberalization
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:62-80




Template-Type: ReDIF-Article 1.0
Author-Name: Xiao Jun
Author-X-Name-First: Xiao
Author-X-Name-Last: Jun
Author-Name: Mingsheng Li
Author-X-Name-First: Mingsheng
Author-X-Name-Last: Li
Author-Name: Wu Yan
Author-X-Name-First: Wu
Author-X-Name-Last: Yan
Author-Name: Rui Zhang
Author-X-Name-First: Rui
Author-X-Name-Last: Zhang
Title: Flow-Performance Relationship and Star Effect: New Evidence from Chinese Mutual Funds
Abstract:
 In this paper, we reexamine the mutual fund flow-performance relationship and star effect using mutual funds in China that have unique features of high risk and low performance persistence. Confirming prior studies, we find that fund performance is positively related to flows in subsequent periods. However, our results show that funds that performed well in the past do not attract additional inflows after controlling for performance. In addition, a star fund, a fund with a five-star Morningstar rating, does not have any significant effect on the fund's flows. These results suggest that it is important to recognize the difference in investor groups and factors that affect performance persistence when analyzing the mutual fund flow-performance relationship.
Journal: Emerging Markets Finance and Trade
Pages: 81-101
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: asymmetric relationship, Chinese mutual funds, flow-performance, Morningstar, performance persistence, star funds
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:81-101




Template-Type: ReDIF-Article 1.0
Author-Name: Yan Dong
Author-X-Name-First: Yan
Author-X-Name-Last: Dong
Author-Name: Zhentao Liu
Author-X-Name-First: Zhentao
Author-X-Name-Last: Liu
Author-Name: Zhe Shen
Author-X-Name-First: Zhe
Author-X-Name-Last: Shen
Author-Name: Qian Sun
Author-X-Name-First: Qian
Author-X-Name-Last: Sun
Title: Political Patronage and Capital Structure in China
Abstract:
 In this paper, we empirically examine the determinants of capital structure in China, using 1,006,395 firm-year observations spanning 1998-2007. Consistent with the general findings in developed markets, we find that the long-term debt ratio is positively related to firm size and asset tangibility while negatively related to profitability and growth opportunities. We also conclude that the long-term debt ratio is positively related to state ownership and legal-person institutional ownership, consistent with the political patronage hypothesis that firms in which the government has more of a stake are more likely to incur long-term debts. These results are robust to a battery of validity checks.
Journal: Emerging Markets Finance and Trade
Pages: 102-125
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: capital structure, China, emerging markets, leverage
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:102-125




Template-Type: ReDIF-Article 1.0
Author-Name: Zhan Lei
Author-X-Name-First: Zhan
Author-X-Name-Last: Lei
Author-Name: Cai Mingchao
Author-X-Name-First: Cai
Author-X-Name-Last: Mingchao
Author-Name: Yaoyao Wang
Author-X-Name-First: Yaoyao
Author-X-Name-Last: Wang
Author-Name: Jing Yu
Author-X-Name-First: Jing
Author-X-Name-Last: Yu
Title: Managerial Private Benefits and Overinvestment
Abstract:
 According to agency theory, we hypothesize that underpayment of top management motivates management to overinvest. Using a sample of Chinese-listed companies for the period 2005-10, we assess the effect of managerial compensation on overinvestment and the effect of overinvestment on managerial private benefits, including future compensation and perquisites, as well as on firm performance. We find that underpayment does motivate overinvestment, which increases managerial private benefits but not firm value.
Journal: Emerging Markets Finance and Trade
Pages: 126-161
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: managerial compensation, overinvestment, private benefits
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:126-161




Template-Type: ReDIF-Article 1.0
Author-Name: Ke Tang
Author-X-Name-First: Ke
Author-X-Name-Last: Tang
Author-Name: Changyun Wang
Author-X-Name-First: Changyun
Author-X-Name-Last: Wang
Author-Name: Shiyi Wang
Author-X-Name-First: Shiyi
Author-X-Name-Last: Wang
Title: China's Imported Inflation and Global Commodity Prices
Abstract:
 In this paper, we outline China's imported inflation via global commodity prices. We show that the prices of China's imported commodities are strongly related to global commodity prices. Meanwhile, the final goods prices from upstream industries are strongly influenced by global commodity prices. However, this effect is partially offset by the production process—that is, the final goods prices in downstream industries are generally less affected by global prices. This indicates that China's commodity market has a close link with global commodity markets. Therefore, high global commodity prices generally squeeze profits in China's downstream industries; upstream industries generally benefit from high global commodity prices.
Journal: Emerging Markets Finance and Trade
Pages: 162-177
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: global commodity market, imported inflation, price transmission mechanism, VAR
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H805Q666061557P7
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:162-177




Template-Type: ReDIF-Article 1.0
Author-Name: Rulu Pan
Author-X-Name-First: Rulu
Author-X-Name-Last: Pan
Author-Name: Xiangxi Tang
Author-X-Name-First: Xiangxi
Author-X-Name-Last: Tang
Author-Name: Yanyan Tan
Author-X-Name-First: Yanyan
Author-X-Name-Last: Tan
Author-Name: Qiaoqiao Zhu
Author-X-Name-First: Qiaoqiao
Author-X-Name-Last: Zhu
Title: The Chinese Stock Dividend Puzzle
Abstract:
 In this paper, we examine the announcement effects of dividends with an emphasis on stock dividends in China's capital market. We find that dividend-paying stocks exhibit significantly positive abnormal returns while non-dividend-paying stocks show a negative announcement effect. Further, we document that the cumulative abnormal returns for pure stock dividends and combined dividends are the main drivers of this announcement effect. In contrast, pure cash dividend stocks experience no significant price run-up before announcement. The significant announcement effect of stock dividends is robust to controlling the earnings surprise effect. We offer some discussion of the possible explanations.
Journal: Emerging Markets Finance and Trade
Pages: 178-195
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: earnings surprise, stock dividend
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:178-195




Template-Type: ReDIF-Article 1.0
Author-Name: Tao Huang
Author-X-Name-First: Tao
Author-X-Name-Last: Huang
Author-Name: Yuancheng Hu
Author-X-Name-First: Yuancheng
Author-X-Name-Last: Hu
Author-Name: Yang Wang
Author-X-Name-First: Yang
Author-X-Name-Last: Wang
Author-Name: Weidong Zhang
Author-X-Name-First: Weidong
Author-X-Name-Last: Zhang
Title: Portfolio Distortions Among Institutional Investors: Evidence from China
Abstract:
 The behavior of institutional investors often deviates from established personal or social norms; this deviation may reflect either an informational advantage or a psychological bias. In this paper, we investigate the reasons Chinese mutual funds hold lottery-type stocks, which are characterized by low average returns and high risk. We find that funds at the aggregate level do not exhibit a propensity to gamble, but when they do gamble, they earn abnormal returns on lottery-type investments. Gambling-related outperformance is greater among held firms with characteristics that enable fund managers to obtain more informational advantages. Our results suggest that portfolio distortion is driven by the ability of managers to capitalize private information rather than by behavioral bias.
Journal: Emerging Markets Finance and Trade
Pages: 196-220
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: gambling, informed trading, lottery-type stocks, mutual fund
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:196-220




Template-Type: ReDIF-Article 1.0
Author-Name: Meifen Qian
Author-X-Name-First: Meifen
Author-X-Name-Last: Qian
Author-Name: Chongbo Xu
Author-X-Name-First: Chongbo
Author-X-Name-Last: Xu
Author-Name: Bin Yu
Author-X-Name-First: Bin
Author-X-Name-Last: Yu
Title: Performance Manipulation and Fund Flow: Evidence from China
Abstract:
 In this paper, we assess the relation between fund flow and fund returns in China's open-ended fund industry. Analyzing quarterly data from the period January 2005-December 2012, we construct a simultaneous equation model that captures the endogeneity of current and past returns and flows and find that contemporaneous returns have a key role in determining fund flows. We then estimate the fund performance "manipulation degree" to further investigate the performance manipulation effect on fund flows. We find that manipulated funds can attract an additional flow of money and that, notably, individual rather than institutional investors are more likely to be deceived by manipulative behavior.
Journal: Emerging Markets Finance and Trade
Pages: 221-239
Issue: 3
Volume: 50
Year: 2014
Month: 5
Keywords: Chinese fund market, endogeneity, fund flow, performance manipulation
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:3:p:221-239




Template-Type: ReDIF-Article 1.0
Author-Name: Michael C.S. Wong
Author-X-Name-First: Michael C.S.
Author-X-Name-Last: Wong
Title: Guest Editor's Introduction: Emerging Market Risk Management
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=N03L80263T46G3J5
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:4




Template-Type: ReDIF-Article 1.0
Author-Name: Danglun Luo
Author-X-Name-First: Danglun
Author-X-Name-Last: Luo
Author-Name: Qianwei Ying
Author-X-Name-First: Qianwei
Author-X-Name-Last: Ying
Title: Political Connections and Bank Lines of Credit
Abstract:
 We analyze the companies listed on stock exchanges in China from 2004 to 2009 and discover that firms' political connections help them obtain bank lines of credit, especially from state-owned banks. The results also show that political connections have a stronger effect on the acquisition of bank lines of credit for firms that face more financing constraints, are not owned by the state, or are located in regions with intensive government intervention. This paper deepens the field's understanding not only of bank lines of credit but also of the role that political connections play in firms' financing activities.
Journal: Emerging Markets Finance and Trade
Pages: 5-21
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: bank lines of credit, financial constraints, political connections, state-owned enterprises
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:5-21




Template-Type: ReDIF-Article 1.0
Author-Name: Hsu-Huei Huang
Author-X-Name-First: Hsu-Huei
Author-X-Name-Last: Huang
Author-Name: Min-Lee Chan
Author-X-Name-First: Min-Lee
Author-X-Name-Last: Chan
Author-Name: Ann Shawing Yang
Author-X-Name-First: Ann Shawing
Author-X-Name-Last: Yang
Title: Who Will Fare Better in a Political Crisis?
Abstract:
 Because a political crisis may negatively affect stock returns, it is important for investors to know which firms will be affected less adversely by such a crisis. This study shows that firms that are controlled by families or have high growth opportunities will experience larger declines in their stock prices and a longer period of decline. Firms with outside directors, higher ratios of outside directors, or higher institutional shareholdings will experience smaller declines in their stock prices and a shorter period of decline. In other words, firms with better governance mechanisms and those considered value stocks will be less adversely affected by a political crisis; thus, their investors will suffer fewer negative effects.
Journal: Emerging Markets Finance and Trade
Pages: 22-34
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: board composition, corporate governance, family-controlled business, growth opportunities, outside director
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:22-34




Template-Type: ReDIF-Article 1.0
Author-Name: Sheraz Ahmed
Author-X-Name-First: Sheraz
Author-X-Name-Last: Ahmed
Author-Name: Syed Mujahid Hussain
Author-X-Name-First: Syed Mujahid
Author-X-Name-Last: Hussain
Title: The Financial Cost of Rivalry: A Tale of Two South Asia Neighbors
Abstract:
 We examine the effect of bilateral political and military news on the returns and volatility of the stock markets of India and Pakistan. Our results show that the volatility of both stock markets shows a significant reaction on the arrival of news related to military aggression in a reciprocal way. Moreover, while the volatility of India's stock market seems to show a subdued response to bilateral political news, Pakistan's stock market appears to be sensitive to both political and military news originating from either country. The relatively stronger effect of military events can be attributed to a higher financial cost of confrontation between the two countries.
Journal: Emerging Markets Finance and Trade
Pages: 35-60
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: confidence-building measures, emerging markets, military news, political risk, spillovers, VAR-EGARCH
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:35-60




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan A. Batten
Author-X-Name-First: Jonathan A.
Author-X-Name-Last: Batten
Author-Name: Peter G. Szilagyi
Author-X-Name-First: Peter G.
Author-X-Name-Last: Szilagyi
Author-Name: Michael C.S. Wong
Author-X-Name-First: Michael C.S.
Author-X-Name-Last: Wong
Title: Stock Market Spread Trading: Argentina and Brazil Stock Indexes
Abstract:
 Brazil has the largest stock market in South America; Argentina has one of the smallest. We investigate the spread relationship between these two markets, measured as the ratio of Brazil's Bovespa index to Argentina's Merval index. Using rescaled range analysis, we identify the presence of a time-varying fractal structure in this ratio. When a Hurst-based trading rule is applied, we find that episodes of fractality may be exploited by traders. Under some circumstances, these strategies are more profitable than economic gains from simple moving average systems, which exploit the autocorrelation structure of the series.
Journal: Emerging Markets Finance and Trade
Pages: 61-76
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: Argentina Merval, Brazil Bovespa, fractal structure, Hurst coefficient, longterm dependence, spread trading, volatility
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G631230804714308
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:61-76




Template-Type: ReDIF-Article 1.0
Author-Name: Yum K. Kwan
Author-X-Name-First: Yum K.
Author-X-Name-Last: Kwan
Author-Name: Jinyue Dong
Author-X-Name-First: Jinyue
Author-X-Name-Last: Dong
Title: Stock Price Dynamics of China: What Do the Asset Markets Tell Us About the Chinese Utility Function?
Abstract:
 We develop and estimate several variants of consumption-based capital asset pricing models (CCAPMs) and compare their capacity in explaining the stock price dynamics of China. We conclude that adding housing to CCAPM and habit formation models yields no significant benefit in predicting stock returns, but adding housing to recursive utility models does improve predictions. Furthermore, the labor income model cannot help reduce pricing errors, but the collateral constraint model outperforms almost all other models. Some models cannot even defeat the simple autoregressive model in stock return prediction. Overall, the H-recursive utility model has the best prediction performance. Directions for future research are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 77-108
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: collateral constraint, habit formation, housing-augmented consumption-based asset pricing, labor income and home production, recursive utility, stock returns
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:77-108




Template-Type: ReDIF-Article 1.0
Author-Name: Yaqing Liu
Author-X-Name-First: Yaqing Liu
Author-X-Name-Last: Liu
Author-Name: Hongbing Ouyang
Author-X-Name-First: Hongbing
Author-X-Name-Last: Ouyang
Title: Spillover and Comovement: The Contagion Mechanism of Systemic Risks Between the U.S. and Chinese Stock Markets
Abstract:
 In recent years, the measurement and analysis of comovement have become important subjects with theoretical and practical value. The contagion effects specified in this paper include spillover effects under information transfer and coherent movement under common external influences. We propose using the structural conditional correlation model to measure these two contagion mechanisms. Empirical results find significant mean and volatility spillover and dynamic conditional correlation between the residual series of the structural conditional correlation model for China and U.S. stock index returns, which clearly reflect the transmission channel from international markets to China's markets, especially in financial crises. The methodology introduced here may have implications for the control and management of crises.
Journal: Emerging Markets Finance and Trade
Pages: 109-121
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: contagion mechanism, dynamic correlation, structural conditional correlation, systemic risks
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R078P8636VM715J8
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:109-121




Template-Type: ReDIF-Article 1.0
Author-Name: Edgardo Cayon
Author-X-Name-First: Edgardo
Author-X-Name-Last: Cayon
Author-Name: Susan Thorp
Author-X-Name-First: Susan
Author-X-Name-Last: Thorp
Title: Financial Autarchy as Contagion Prevention: The Case of Colombian Pension Funds
Abstract:
 Regulations restricting investment by pension funds in high-risk and foreign assets may quarantine member accounts from contagious transmissions during financial crises. We analyze contagion from U.S. equity markets to emerging market autarchic assets (Colombian private pension funds) during the recent financial crises. We test for volatility contagion between financial asset returns using a multivariate GARCH (M-GARCH) framework, where the S&P 500 is the source of contagion to the autarchic asset. We find no evidence of volatility contagion during the 2007-9 crises, indicating protection due to regulated portfolio restrictions. However, there is evidence of contagion during the recent sovereign debt crisis.
Journal: Emerging Markets Finance and Trade
Pages: 122-139
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: emerging markets, global financial crisis, regulation, sovereign debt crisis, systematic risk
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:122-139




Template-Type: ReDIF-Article 1.0
Author-Name: Fang Lou
Author-X-Name-First: Fang
Author-X-Name-Last: Lou
Author-Name: Jiwei Wang
Author-X-Name-First: Jiwei
Author-X-Name-Last: Wang
Author-Name: Hongqi Yuan
Author-X-Name-First: Hongqi
Author-X-Name-Last: Yuan
Title: Stock Liquidity and the Pricing of Earnings: A Comparison of China's Floating and Nonfloating Shares
Abstract:
 The reform aimed at converting nonfloating shares to floating shares in China provides a setting in which shares are subject to different levels of liquidity constraints. We show that the severity of these constraints is inversely related to the extent to which earnings information is reflected in share prices. Specifically, before the reform, transfer prices of nonfloating shares reflect much less earnings information than the market prices of floating shares. After the reform, however, transfer prices of nonfloating shares reflect more earnings information, although the weights are still less than those found in market prices. Thus, China's unique setting shows that share liquidity affects the way earnings are priced in stock.
Journal: Emerging Markets Finance and Trade
Pages: 140-157
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: China, earnings, pricing, stock liquidity
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J012052L7L170842
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:140-157




Template-Type: ReDIF-Article 1.0
Author-Name: Xianming Fang
Author-X-Name-First: Xianming
Author-X-Name-Last: Fang
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Author-Name: Zhijun Qian
Author-X-Name-First: Zhijun
Author-X-Name-Last: Qian
Title: The Effects of Individual Investors' Attention on Stock Returns: Evidence from the ChiNext Market
Abstract:
 We propose three hypotheses regarding the effects of individual investors' attention on stock returns according to special features of China's stock market. We adopt the Baidu index as the proxy for individual investors' attention to stocks. Empirical tests of the three hypotheses are based on sample data collected from the ChiNext market. Results show that individual investors' attention and market return have joint positive effects on short-term stock returns. Furthermore, high individual investors' attention to IPO stocks leads to high first-day returns but low long-term returns following the first trading day.
Journal: Emerging Markets Finance and Trade
Pages: 158-168
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: Baidu Index, ChiNext market, individual investors' attention, stock returns
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U4706858WV783V0M
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:158-168




Template-Type: ReDIF-Article 1.0
Author-Name: Jussi Nikkinen
Author-X-Name-First: Jussi
Author-X-Name-Last: Nikkinen
Author-Name: Kashif Saleem
Author-X-Name-First: Kashif
Author-X-Name-Last: Saleem
Author-Name: Minna Martikainen
Author-X-Name-First: Minna
Author-X-Name-Last: Martikainen
Author-Name: Mohammed Omran
Author-X-Name-First: Mohammed
Author-X-Name-Last: Omran
Title: Oil Risk and Asset Returns: Evidence from Emerging Markets in the Middle East
Abstract:
 In this paper, we investigate whether oil risk is priced in selected emerging markets of the Middle East region—in particular, oil-producing countries. Given that these countries have maintained fixed exchange rates against the U.S. dollar, we are able to modify the multivariate GARCH framework to include the oil-risk component. The results show that within the framework we adopt, the world market risk and oil risk are priced on all markets under investigation. The oil risk is highly significant in all markets, indicating that oil-risk exposure, to some extent, is nondiversifiable.
Journal: Emerging Markets Finance and Trade
Pages: 169-189
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: emerging markets, global risk, ICAPM, multivariate GARCH, oil risk
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=N1H0580570129JP0
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:169-189




Template-Type: ReDIF-Article 1.0
Author-Name: Wan-Chun Liu
Author-X-Name-First: Wan-Chun
Author-X-Name-Last: Liu
Author-Name: Chen-Min Hsu
Author-X-Name-First: Chen-Min
Author-X-Name-Last: Hsu
Title: Profit Performance of Financial Holding Companies: Evidence from Taiwan
Abstract:
 The paper aims to examine the determinants of profit performance of financial holding companies (FHCs) using panel data for the period 2001-9. The effects of bank-specific ownership structure and dual-core strategy are examined. Our findings show that (1) business diversification, a lower financial cost, a higher liquidity ratio, larger assets, and lower debt ratios can improve the profit performance of FHCs; (2) the percentage of director or government ownership does not affect FHCs' profitability, whereas foreign ownership has a significantly negative impact on FHC profitability; and (3) a dual-core strategy including banking and insurance has higher profit performance than the other strategies.
Journal: Emerging Markets Finance and Trade
Pages: 190-200
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: financial holding companies, ownership structure, random effect, synergy
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=UU186V35352P57QN
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:190-200




Template-Type: ReDIF-Article 1.0
Author-Name: Kaiguo Zhou
Author-X-Name-First: Kaiguo
Author-X-Name-Last: Zhou
Title: The Effect of Income Diversification on Bank Risk: Evidence from China
Abstract:
 Using the panel data for sixty-two main Chinese commercial banks during 1997-2012, this paper studies the effect of income diversification on bank risk. According to portfolio theory, the overall risk of banks is decomposed in order to further investigate the contribution of noninterest income. The empirical results show that there is no significant relationship between income diversification and bank risk. The reduction of overall risk is attributed to the significant reduction in the risk of interest income business. While the proportion of noninterest income increases, its volatility also increases, and thus its contribution to overall risk increases. Accordingly, some policy suggestions on the future development of income diversification strategy are proposed.
Journal: Emerging Markets Finance and Trade
Pages: 201-213
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: bank risk, income diversification, noninterest income
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=4826522LJ7777280
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:201-213




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Fernández-Rodríguez
Author-X-Name-First: Elena
Author-X-Name-Last: Fernández-Rodríguez
Author-Name: Antonio Martínez-Arias
Author-X-Name-First: Antonio
Author-X-Name-Last: Martínez-Arias
Title: Determinants of the Effective Tax Rate in the BRIC Countries
Abstract:
 In this paper, we study the determinants of the effective tax rate (ETR) for corporate taxation for listed companies in the BRIC countries: Brazil, Russia, India, and China. We use a panel of 3,565 companies over the period 2000-2009, and we apply the generalized method of moments estimator for dynamic panel data. The results show that the ETR for one year depends on the tax burden borne the previous year. The only variable that is significant in all the BRIC countries is inventory intensity. Firm size, leverage, and profitability affect the tax burden in three of the four countries considered but with certain differences.
Journal: Emerging Markets Finance and Trade
Pages: 214-228
Issue: 03
Volume: 50
Year: 2014
Month: 5
Keywords: BRIC countries, corporate tax burden, dynamic panel data, effective tax rate (ETR)
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L4K38H8811131238
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:03:p:214-228




Template-Type: ReDIF-Article 1.0
Author-Name: Gulnur Muradoglu
Author-X-Name-First: Gulnur
Author-X-Name-Last: Muradoglu
Author-Name: Fatma Taskin
Author-X-Name-First: Fatma
Author-X-Name-Last: Taskin
Title: Guest Editor's Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 3-5
Issue: 6
Volume: 38
Year: 2002
Month: 12
Keywords: 
File-URL: http://www.jstor.org/stable/27750314?origin=pubexport
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:6:p:3-5




Template-Type: ReDIF-Article 1.0
Author-Name: Güner Gürsoy
Author-X-Name-First: Güner 
Author-X-Name-Last: Gürsoy
Author-Name: Kürșat Aydoğan
Author-X-Name-First: Kürșat
Author-X-Name-Last: Aydoğan
Title: Equity Ownership Structure, Risk Taking, and Performance: An Empirical Investigation in Turkish Listed Companies
Abstract: The paper describes the main characteristics of ownership structure of Turkish nonfinancial firms listed on the Istanbul Stock Exchange (ISE) and examines the impact of ownership structure on performance and risk-taking behavior of Turkish firms. Turkish corporations can be characterized as highly concentrated, family owned firms attached to a group of companies generally owned by the same family or a group of families. Ownership structure is defined along two attributes: concentration and identity of the owner(s). We conclude that there is a significant impact of ownership structure—ownership concentration and ownership mix—on both performance and risk-taking behavior of the firms in our sample. Higher concentration leads to better market performance but lower accounting performance. Family owned firms, in contrast to conglomerate affiliates, seem to have lower performance with lower risk. Government-owned firms have lower accounting but higher market performance with higher risk.
Journal: Emerging Markets Finance and Trade
Pages: 6-25
Issue: 6
Volume: 38
Year: 2002
Month: 12
Keywords: corporate governance, ownership structure, performance, risk
File-URL: http://www.jstor.org/stable/27750315?origin=pubexport
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Template-Type: ReDIF-Article 1.0
Author-Name: Nuray Güner
Author-X-Name-First: Nuray
Author-X-Name-Last: Güner
Author-Name: Zeynep Önder
Author-X-Name-First: Zeynep
Author-X-Name-Last: Önder
Title: Information and Volatility: Evidence from an Emerging Market
Abstract: This study examines the volatility of daily stock returns and the volatility of returns during trading and non-trading hours for securities trading on the Istanbul Stock Exchange. Some unique characteristics of this exchange enable us to examine the reasons for the high volatility during trading hours. First, the price-determination procedure at the opening is the same as the pricing mechanism used during the rest of the day. Second, there is no specialist or market maker who sets prices. Third, there is a two-hour day break in trading during a business day. The volatility of daily return calculated from opening prices is found to be significantly higher than those calculated from closing prices in this market setting as well. Volatility of returns during trading periods is found to be higher than those during non-trading periods. Furthermore, per-hour volatility during the day break is higher than per-hour volatility during the night break. Findings of this study have some implications for the role of market maker and the impact of timing and length of a break in trading on the volatility of security returns.
Journal: Emerging Markets Finance and Trade
Pages: 26-46
Issue: 6
Volume: 38
Year: 2002
Month: 12
Keywords: automated order-matching system, emerging markets, Istanbul Stock Exchange, trading and non-trading hours, volatility
File-URL: http://www.jstor.org/stable/27750316?origin=pubexport
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:6:p:26-46




Template-Type: ReDIF-Article 1.0
Author-Name: Riza Demirer
Author-X-Name-First: Riza
Author-X-Name-Last: Demirer
Author-Name: M. Baha Karan
Author-X-Name-First: M. Baha
Author-X-Name-Last: Karan
Title: An Investigation of the Day-of-the-Week Effect on Stock Returns in Turkey
Abstract: This paper examines evidence for the possible existence of the "daily effect" in the Istanbul Stock Exchange (ISE). In addition to ISE daily closing index returns, excess index returns over the risk-free rate—overnight interest rates in this case—and inflation are analyzed since the Turkish economy has been experiencing high inflation and unstable financial markets that make it different from the stable Western economies. The analysis of sign transitions between returns for successive days suggests that the daily effect shows itself in a different form—start-of-the-week effect—in the sense that starting a week with a positive return is an indicator of the overall return pattern for the week. In the context of the models developed in the literature, the findings indicate that the Turkish market appears efficient in terms of expected returns. However, it seems inefficient in terms of expected variability of these returns and in terms of investors' expectations.
Journal: Emerging Markets Finance and Trade
Pages: 47-77
Issue: 6
Volume: 38
Year: 2002
Month: 12
Keywords: day-of-the-week effect, Istanbul Stock Exchange, market efficiency
File-URL: http://www.jstor.org/stable/27750317?origin=pubexport
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Template-Type: ReDIF-Article 1.0
Author-Name: Aydin Yüksel
Author-X-Name-First: Aydin
Author-X-Name-Last: Yüksel
Title: The Performance of the Istanbul Stock Exchange during the Russian Crisis
Abstract: This paper uses a unique data set to examine the possibility of a structural change in contemporaneous volume–return relation on the Istanbul Stock Exchange (ISE) during the Russian crisis in 1998. The comparison of the relationship during the crisis period to those during pre- and post-crisis periods shows that there was a structural change regarding the price impact of trading volume. The evidence indicates that traders needed to give considerably larger price concessions during the crisis period. The structural change was transitory since the cost of getting liquidity is shown to fall back during the post-crisis period. This study also provides the first evidence on univariate and joint characteristics of fifteen-minute common stock trading volume and returns on the ISE. Both average volume and return show significant univariate intraday variations, and there exists a positive contemporaneous relation between these variables. Moreover, there is weak evidence that in a GARCH setting volume has an impact on conditional return volatility.
Journal: Emerging Markets Finance and Trade
Pages: 78-99
Issue: 6
Volume: 38
Year: 2002
Month: 12
Keywords: GARCH, impact of trading, structural change
File-URL: http://www.jstor.org/stable/27750318?origin=pubexport
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:6:p:78-99




Template-Type: ReDIF-Article 1.0
Author-Name: Gulnur Muradoglu
Author-X-Name-First: Gulnur
Author-X-Name-Last: Muradoglu
Author-Name: Fatma Taskin
Author-X-Name-First: Fatma
Author-X-Name-Last: Taskin
Title: Guest Editor's Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 3-5
Issue: 5
Volume: 38
Year: 2002
Month: 10
Keywords: 
File-URL: http://www.jstor.org/stable/27750305?origin=pubexport
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:5:p:3-5




Template-Type: ReDIF-Article 1.0
Author-Name: Fatih Özatay
Author-X-Name-First: Fatih
Author-X-Name-Last: Özatay
Author-Name: Güven Sak
Author-X-Name-First: Güven
Author-X-Name-Last: Sak
Title: Financial Liberalization in Turkey: Why Was the Impact on Growth Limited?
Abstract: This study shows that the financial reform process, which started in 1980, considerably deepened the financial system. However, the impact of this deepening on credit growth was extremely mild, if not insignificant. We further show that the growth of credit stock, not the deepening of the financial system as measured by the growth of total liabilities of the banking sector, influences economic growth. The reform period can be identified by an increase in the level of riskiness. Without attempting to explain the reasons behind the environment of increased riskiness, we show that the ratio of credit to liabilities was adversely affected by this environment.
Journal: Emerging Markets Finance and Trade
Pages: 6-22
Issue: 5
Volume: 38
Year: 2002
Month: 10
Keywords: financial intermediation, financial markets, uncertainty
File-URL: http://www.jstor.org/stable/27750306?origin=pubexport
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:5:p:6-22




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Tuncay Teksoz
Author-X-Name-First: Ahmet Tuncay
Author-X-Name-Last: Teksoz
Author-Name: Serdar Sayan
Author-X-Name-First: Serdar
Author-X-Name-Last: Sayan
Title: Simulation of Benefits and Risks after the Planned Privatization of the Pension System in Turkey: Is the Expected Boost to Financial Markets Feasible?
Abstract: The recently started process of social security reform in Turkey is widely argued to have a significant potential to affect the direction of further development of financial markets in the country in the years ahead, particularly through the planned introduction of privately managed defined-contribution (or money purchase) retirement plans. This paper aims to evaluate the prospects for the emergence and growth of a demand for these plans by analyzing investment risks and associated benefits facing employees purchasing them and to assess the effectiveness of various risk-reduction strategies that might be pursued by individuals as well as the government. Within this framework, a money purchase pension plan, supplementary to the basic state scheme, is considered. Possible variations in a member's pension income, arising due to stochastic increases in salary earnings and investment returns under alternative portfolios, are captured using an actuarial simulation model designed for this purpose. The cost to the government of providing guarantees on minimum pension incomes and the effects of changes in individuals' investment strategies, retirement ages, and career patterns on the retirement benefits obtained are investigated, and the results are related to various aspects of social security reform–financial market interaction in Turkey.
Journal: Emerging Markets Finance and Trade
Pages: 23-45
Issue: 5
Volume: 38
Year: 2002
Month: 10
Keywords: actuarial simulation models, defined-contribution (money purchase) pension schemes, financial markets, social security reform, Turkey
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Template-Type: ReDIF-Article 1.0
Author-Name: Güzin Bayar
Author-X-Name-First: Güzin
Author-X-Name-Last: Bayar
Title: Effects of Foreign Trade Liberalization on the Productivity of Industrial Sectors in Turkey
Abstract: This paper investigates the effects of foreign trade liberalization of Turkey after 1980 on the productivity of industrial sectors. The relationship is tested using panel data of twenty-eight ISIC three-digit industrial sectors for the 1974–1994 period. Two different regressions are run. The first one decomposes manufacturing output growth into its components—that is, factor use, markups, economies of scale effects, and productivity changes—and tests whether there are any shifts in one of these components after trade liberalization. The results of the analysis show that, on the basis of the available evidence, we can say that there is a positive shift in productivity and a negative shift in industrial markups after trade liberalization. Moreover, returns to scale is decreased after trade liberalization. Whereas before 1984, increasing returns to scale was the rule, after 1984, decreasing returns to scale characterizes the Turkish manufacturing industry as a whole. The second regression tries to explain price–cost margins with import penetration, capital/output ratio, and the Herfindahl index—that is, a measure of industrial concentration. All of the explanatory variables seem to have a significant effect on price–cost margins. Import penetration has a positive effect on price–cost margins, contrary to commonsense predictions. The capital/output ratio affects price–cost margins slightly negatively. The Herfindahl index is the most important factor affecting price–cost margins. As concentration in the industry increases, price–cost margins increase more than proportionately.
Journal: Emerging Markets Finance and Trade
Pages: 46-71
Issue: 5
Volume: 38
Year: 2002
Month: 10
Keywords: import penetration, price–cost margins, productivity, trade liberalization
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:5:p:46-71




Template-Type: ReDIF-Article 1.0
Author-Name: Kivilcim Metin-Özcan
Author-X-Name-First: Kivilcim
Author-X-Name-Last: Metin-Özcan
Author-Name: Ebru Voyvoda
Author-X-Name-First: Ebru
Author-X-Name-Last: Voyvoda
Author-Name: Erinç Yeldan
Author-X-Name-First: Erinç
Author-X-Name-Last: Yeldan
Title: The Impact of the Liberalization Program on the Price-Cost Margin and Investment of Turkey's Manufacturing Sector after 1980
Abstract: In this paper, we investigate the structural consequences of the post-1980 outward-orientation on the market concentration and accumulation patterns in the Turkish manufacturing industries. Using various panel data procedures over twenty-nine subsectors of Turkish manufacturing for the 1980–1996 period, we focus on three sets of issues: (1) the effect of openness on the extent of market concentration as measured in CR4 ratios; (2) the behavior of gross profit margins (markups) in relation to openness, concentration ratios, and real wage costs; and (3) the behavior of sectoral real investments (by destination) in relation to the profit margins, real wage costs, and the openness indicator. Our results suggest very little structural change in the sectoral composition and nature of market concentration and behavior of profit margins under the post-1980 structural adjustment reforms and outward-orientation. We find that, contrary to expectations, "openness" had very little impact, if any, on profit margins (markups), and, within manufacturing, the trade-adjusting sectors reveal a positive relationship between the profit margins and openness. Profit margins are found to be positively and significantly related to concentration power and real wage cost increases. Real investments in the sector display a positive relationship with profit margins and real wages yet bear a statistically insignificant relationship vis-à-vis openness.
Journal: Emerging Markets Finance and Trade
Pages: 72-103
Issue: 5
Volume: 38
Year: 2002
Month: 10
Keywords: market concentration, markup, openness, Turkish manufacturing
File-URL: http://www.jstor.org/stable/27750309?origin=pubexport
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:5:p:72-103




Template-Type: ReDIF-Article 1.0
Author-Name: Guzin Erlat
Author-X-Name-First: Guzin
Author-X-Name-Last: Erlat
Title: Guest Editor's Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 5-7
Issue: 4
Volume: 38
Year: 2002
Month: 8
Keywords: 
File-URL: http://www.jstor.org/stable/27750298?origin=pubexport
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:4:p:5-7




Template-Type: ReDIF-Article 1.0
Author-Name: Hasan Ersel
Author-X-Name-First: Hasan
Author-X-Name-Last: Ersel
Title: Macroeconomic Information and the Role of Banks in Its Transmission: Evidence from Turkey
Abstract: This paper addresses two questions: Do Turkish private commercial banks take macroeconomic information into account in taking their major managerial decisions? And, if so, do they react to such information in a predictable manner? The findings, based on pooled cross-section time-series data for the 1989–1999 period, indicate that both questions can be answered affirmatively.
Journal: Emerging Markets Finance and Trade
Pages: 9-23
Issue: 4
Volume: 38
Year: 2002
Month: 8
Keywords: bank behavior, macroeconomic information, uncertainty
File-URL: http://www.jstor.org/stable/27750299?origin=pubexport
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:4:p:9-23




Template-Type: ReDIF-Article 1.0
Author-Name: C. Emre Alper
Author-X-Name-First: C. Emre
Author-X-Name-Last: Alper
Title: Business Cycles, Excess Volatility, and Capital Flows: Evidence from Mexico and Turkey
Abstract: This paper analyzes business cycles in Mexico and Turkey and the results are compared to those for the United States. Excess volatility of real output as well as excess relative volatility of consumption in Mexico and Turkey is uncovered. Fiscal and monetary variables do not yield clear-cut patterns. Both the price levels and the inflation rates turn out to be moving countercyclically, suggesting the appropriateness of a supply-driven business cycle model rather than a demand-driven one for Mexico and Turkey. Capital inflows, especially long-term capital inflows, seem to matter, since they turn out to be strongly procyclical and lead the cycle by one quarter. This observation also emphasizes the relevance of a supply-driven model for the two countries.
Journal: Emerging Markets Finance and Trade
Pages: 25-58
Issue: 4
Volume: 38
Year: 2002
Month: 8
Keywords: capital account liberalization, emerging markets, real business cycles
File-URL: http://www.jstor.org/stable/27750300?origin=pubexport
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Handle: RePEc:mes:emfitr:v:38:y:2002:i:4:p:25-58




Template-Type: ReDIF-Article 1.0
Author-Name: Zelal Kotan
Author-X-Name-First: Zelal
Author-X-Name-Last: Kotan
Author-Name: Serdar Sayan
Author-X-Name-First: Serdar
Author-X-Name-Last: Sayan
Title: A Comparative Investigation of the Price Competitiveness of Turkish and Southeast Asian Exports in the European Union Market, 1990-1997
Abstract: The relative concentration with respect to export markets and products makes export receipts of Turkey vulnerable to fluctuations in the demand conditions. Given that most of the Turkish exports face intense competition from close substitutes produced in other countries, avoiding large fluctuations in export receipts, and maintenance/growth of market shares in such major export destinations as the EU market often require price competition. This paper investigates the significance and nature of price competition between Turkish and Southeast Asian exporters of selected manufacturing products in the EU market where this competition is particularly stiff. For this purpose, we estimate a model that posits that the relative market shares of Turkish and Southeast Asian exporters in the EU markets for commodities we consider are related to the prices of imports from respective countries. Our analysis concentrates on "textiles and garments," a leading export category that brings in a considerable part of Turkey's export receipts, and "technology-intensive products," which has recently become an export category of increasing significance for Turkey. Our results indicate that price competition plays a significant role in explaining the EU market shares of Turkish and Southeast Asian exporters and provide useful information on the magnitudes of relative price elasticities. Furthermore, they provide grounds for an evaluation of the possible contributions of Turkey's geographic proximity to the EU market, and the Turkey–EU Customs Union agreement to the price competitiveness of Turkish products against their Southeast Asian competitors.
Journal: Emerging Markets Finance and Trade
Pages: 59-85
Issue: 4
Volume: 38
Year: 2002
Month: 8
Keywords: European Union, exports, price competition, Southeast Asia, Turkey
File-URL: http://www.jstor.org/stable/27750301?origin=pubexport
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Template-Type: ReDIF-Article 1.0
Author-Name: Serkan Imisiker
Author-X-Name-First: Serkan
Author-X-Name-Last: Imisiker
Author-Name: Umit Ozlale
Author-X-Name-First: Umit
Author-X-Name-Last: Ozlale
Title: Assessing Selectivity and Market Timing Performance of Mutual Funds for an Emerging Market: The Case of Turkey
Abstract:
 This paper derives and analyzes the selectivity and market timing performance of the mutual funds for the Turkish economy for the financial crisis period by employing high-frequency data. The determinants of these derived abilities are investigated within a regression analysis. The results suggest weak evidence about selection ability and some evidence about superior market timing quality. They also indicate that management fees are negatively correlated with the ability measure, which is quite surprising. Experience emerges as an important factor, especially for market timing ability.
Journal: Emerging Markets Finance and Trade
Pages: 87-99
Issue: 2
Volume: 44
Year: 2008
Month: 3
Keywords: emerging markets, mutual funds, selectivity and market timing ability
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W78V06468674031L
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akyürek, C. 2006. "The Turkish Crisis of 2001: A Classic?" <i>Emerging Markets Finance and Trade</i> 42, no. 1 (January-February): 5-32.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Alper, E., and Z. Önis. 2003. "Financial Globalization, the Democratic Deficit, and Recurrent Crises in Emerging Markets: The Turkish Experience in the Aftermath of Capital Account Liberalization." <i>Emerging Markets Finance and Trade</i> 39, no. 3 (May-June): 5-26.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Atasoy, D., and S.C. Saxena 2006. "Misaligned? Overvalued? The Untold Story of the Turkish Lira." <i>Emerging Markets Finance and Trade</i> 42, no. 3 (May-June): 29-45.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Basçi, E., and M.F. Ekinci 2005. "Bond Premium in Turkey: Inflation Risk or Default Risk?" <i>Emerging Markets Finance and Trade</i> 41, no. 2 (March-April): 25-40.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bhattacharya, S., and Pfleiderer, P. 1983. "A Note on Performance Evaluation." Technical Report 714, Graduate School of Business, Stanford University, Stanford, CA.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Breen, W.; R. Jagannathan; and A.R. Ofer 1986. "Correcting for Heteroskedasticity Tests from Market Timing Ability." <i>Journal of Business</i> 59, no. 4 (October): 585-598.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Çapoglu, G. (2004), "Anatomy of a Failed IMF Program: The 1999 Program in Turkey." <i>Emerging Markets Finance and Trade</i> 40, no. 3 (May-June): 84-100.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chang, E.C., and W.G. Lewellen 1984. "Market Timing and Mutual Fund Investment Performance." <i>Journal of Business</i> 57, no. 1 (January): 57-72.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chen, C.R.; C.F. Lee; S. Rahman; and A. Chan 1992. "A Cross-Sectional Analysis of Mutual Funds' Market Timing and Security Selection Skill." <i>Journal of Business Finance and Accounting</i> 19, no. 5 (September): 659-675.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Chevalier, J., and G. Ellison 1999. "Career Concerns of Mutual Fund Managers." <i>Quarterly Journal of Economics</i> 114, no. 2 (May): 389-432.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Fama, E.F. 1972. "Components of Investment Performance." <i>Journal of Finance</i> 27, no. 3 (June): 551-567.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Golec, J.H. 1996. "The Effects of Mutual Fund Managers' Characteristics on Their Portfolio Performance, Risk, and Fees." <i>Financial Services Review</i> 5, no. 2: 133-147.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Gündüz, L., and A. Hatemi 2005. "Stock Price and Volume Relation in Emerging Markets." <i>Emerging Markets Finance and Trade</i> 41, no. 1 (January-February): 29-44.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Henriksson, R.D. 1984. "Market Timing and Mutual Fund Performance: An Empirical Investigation." <i>Journal of Business</i> 57, no. 1 (January): 73-96.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Jensen, M.C. 1972. "Optimal Utilization of Market Forecasts and the Evaluation of Investment Performance." In <i>Mathematical Methods in Investment and Finance</i>, ed. G.P. Szego and K. Shell, pp. 310-335. Amsterdam: Elsevier.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Kon, S.J. 1983. "The Market Timing Performance of Mutual Fund Managers." <i>Journal of Business</i> 56, no. 3 (July): 323-347.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Lee, C.F., and S. Rahman 1990. "Market Timing, Selectivity, and Mutual Fund Performance: An Empirical Investigation." <i>Journal of Business</i> 63, no. 2 (April): 261-278.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Merton, R.C. 1981. "On Market Timing and Investment Performance I: An Equilibrium Theory of Value for Market Forecasts." <i>Journal of Business</i> 54, no. 3 (July): 363-406.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Ozatay, F., and G. Sak 2002. "Financial Liberalization in Turkey: Why Was the Impact on Growth Limited?" <i>Emerging Markets Finance and Trade</i> 38, no. 5 (September-October): 6-22.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Porter, G.E., and J.W. Trifts 1998. "Performance Persistence of Experienced Mutual Fund Managers." <i>Financial Services Review</i> 7, no. 1: 57-68.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Solnik, B. 1995. "Why Not Diversify Internationally Rather Than Domestically?" <i>Financial Analysts Journal</i> 51, no. 1: 89-94.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Zellner, A. 1962. "An Efficient Method of Estimating Seemingly Unrelated Regression and Tests for Aggregation Bias." <i>Journal of the American Statistical Association</i> 57, no. 298 (June): 348-368.</BIBTEXT> </REF>
Handle: RePEc:mes:emfitr:v:44:y:2008:i:2:p:87-99




Template-Type: ReDIF-Article 1.0
Author-Name: Ronald  MacDonald 
Author-X-Name-First: Ronald  
Author-X-Name-Last: MacDonald 
Author-Name: Cezary  Wojcik 
Author-X-Name-First: Cezary  
Author-X-Name-Last: Wojcik 
Title: Productivity, Demand, and Regulated Price Effects Revisited: An Analysis of the Real Bilateral Exchange Rates of Four New EU Member States 
Abstract:
 This paper examines the behavior of internal price ratios and bilateral
 real exchange rates of a group of four new EU member states-Estonia,
 Hungary, Slovakia, and Slovenia. We employ a dynamic ordinary least
 squares panel estimator to investigate the relative importance of demand
 and supply influences on the internal and external exchange rates of these
 countries. Our analysis shows that both supply- and demand-side effects
 are important, though supply-side effects dominate. The paper also
 examines the role that administrated or regulated prices and the
 productivity of the distribution sector play in real exchange rate
 dynamics. We show that administrated prices have been a powerful force
 behind price and real exchange developments for our group of accession
 countries.
Journal: Emerging Markets Finance and Trade 
Pages: 48-65 
Issue: 3 
Volume: 44 
Year: 2008 
Month: 5 
Keywords: Economic and Monetary Union (EMU), exchange rates, monetary integration, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=1524L57046147787 
File-Format: text/html
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> BackÃƒÂ©, P.; J. Fidrmuc;
 T. Reininger; and F. Schardax. 2002. "Price Dynamics in Central and
 Eastern European EU Accession Countries." >i>Emerging Markets Finance and
 Trade>/i> 39, no. 3: 42-78.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>2</BIBL>        <BIBTEXT> Bergstrand, J. H. 1991. "Structural
 Determinants of Real Exchange Rates and National Price Levels: Some
 Empirical Evidence." >i>American Economic Review>/i> 81, no. 1 (March):
 325-334.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Chinn, M., and L. Johnston. 1999. "Real Exchange Rate Level,
 Productivity, and Demand Shocks: Evidence from a Panel of 14 Countries."
 National Bureau of Economic Research Discussion Paper no. 5709, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>	  
 <BIBTEXT> De Gregorio, J.; A. Giovannini; and H. Wolf. 1994.
 "International Evidence on Tradables and Nontradables Inflation."
 >i>European Economic Review 38>/i>, no. 6 (June): 1225-1244.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT> Dornbusch, R.
 1988. "Purchasing Power Parity." In >i>The New Palgrave Dictionary of
 Economics>/i>, ed. J. Eatwell, M. Milgate, and P. Newman, pp. 1075-1085.
 London: Macmillan.</BIBTEXT>	   </REF>      <REF>	    <BIBL>6</BIBL> 
       <BIBTEXT> Egert, B. 2002. "Investigating the Balassa-Samuelson
 Hypothesis in Transition: Do We Understand What We See? A Panel Study."
 >i>Economics of Transition>/i> 10, no. 2: 1-36.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> Engel, C. 1993. "Real
 Exchange Rates and Relative Prices: An Empirical Investigation."
 >i>Journal of Monetary Economics>/i> 32, no. 1: 35-50.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Gros, D. 2001.
 "EMU, the Euro, and Enlargement." In >i>Economic Policy in the Framework
 of Accession to the European Union and Economic and Monetary Union.>/i>
 Brussels: European Commission.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>9</BIBL>        <BIBTEXT> Halpern, L., and C. Wyplosz. 1997.
 "Equilibrium Exchange Rates in Transition Economies." >i>IMF Staff
 Papers>/i> 44, no. 4: 430-461.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Halpern, L., and C. Wyplosz. 2001.
 "Economic Transformation and Real Exchange Rates in the 2000s: The
 Balassa-Samuelson Connection." Discussion Paper Series, no. 2001_1, United
 Nations Economic Commission for Europe, Geneva, September.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Helpman, E., and
 P. Krugman. 1985. >i>Market Structure and Foreign Trade.>/i> Cambridge:
 MIT Press.</BIBTEXT>	   </REF>      <REF>	    <BIBL>12</BIBL>	  
 <BIBTEXT> International Monetary Fund. 2003. >i>Competitiveness in the
 Baltics in the Run-Up to EU Accession.>/i> IMF Country Report no. 03/114.
 Washington, DC: International Monetary Fund.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT> Isard, P. 1977 "How Far Can
 We Push the Ã¢Â€Â˜Law of One PriceÃ¢Â€Â™?" >i>American Economic Review 67>/i>,
 no. 5 (December): 942-948.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT> Kao, C., and M. Chiang. 2000. "On the
 Estimation and Inference of a Cointegrated Regression in Panel Data." in
 >i>Nonstationary Panels, Panel Cointegration, and Dynamic Panels>/i>, ed.
 B. Baltagi, vol. 15, 179-222. Emerald Group Publishing.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> MacDonald, R.
 1999. "Exchange Rate Behavior: Are Fundamentals Important?" >i>Economic
 Journal>/i> 109: F673-F691.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>16</BIBL>	<BIBTEXT> MacDonald, R. 2000. "Concepts to
 Calculate Equilibrium Exchange Rates: An Overview." Deutsche Bundesbank
 Discussion Paper 3/00, Frankfurt am Main.</BIBTEXT>	  </REF>      <REF>
	<BIBL>17</BIBL>        <BIBTEXT> MacDonald, R., and L. Ricci. 2001.
 "PPP and the Balassa-Samuelson Effect: The Role of the Distribution
 Sector." International Monetary Fund Working Paper no. 01/38, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>18</BIBL>	   
 <BIBTEXT> MacDonald, R., and L. Ricci. 2002. "Purchasing Power Parity and
 New Trade Theory." International Monetary Fund Working Paper no. 02/70,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>19</BIBL>   
     <BIBTEXT> MacDonald, R., and C. WÃƒÂ²jcik. 2004. "Catching Up: The Role
 of Demand, Supply and Regulated Price Effects on the Real Exchange Rates
 of Four Accession Countries." >i>Economics of Transition>/i> 12, no. 1:
 153-179.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT> McCoskey, S., and C. Kao. 1999. "Comparing Panel Data
 Cointegration Tests with an Application of the Ã¢Â€Â˜Twin DeficitsÃ¢Â€Â™
 Problem." Syracuse University, November 5 (available at >a target="_blank"
 href='http://www.maxwell.syr.edu/maxpages/faculty/cdkao/working/monte.pdf'
 >www.maxwell.syr.edu/maxpages/faculty/cdkao/working/monte.pdf>/a></BIBTEXT
 >	</REF>	    <REF>	 <BIBL>21</BIBL>	<BIBTEXT> Mark, N.,
 and D. Sul. 1999. "Nominal Exchange Rates and Monetary Fundamentals:
 Evidence from a Small Post-Bretton Woods Panel." >i>Journal of
 International Economics>/i> 53, no. 1: 29-52.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT> Neary, J. P. 1988.
 "Determinants of the Equilibrium Real Exchange Rate." >i>American Economic
 Review>/i> 78, no. 1 (March): 210-215.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>23</BIBL>	    <BIBTEXT> Pedroni, P. 2004. "Panel
 Cointegration: Asymptotic and Finite Sample Properties of Pooled Time
 Series Tests with an Application to the PPP Hypothesis." >i>Econometric
 Theory>/i> 20, no. 3 (June): 597-625.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>24</BIBL>	   <BIBTEXT> Phillips, P., and H. Moon. 1999.
 "Linear Regression-Limit Theory for Nonstationary Panel Data."
 >i>Econometrica>/i> 67, no. 5: 1057-1111.</BIBTEXT>	  </REF>      <REF>
	<BIBL>25</BIBL>        <BIBTEXT> Pujol, T., and M. Griffith. 1998.
 "Moderate Inflation in Poland: A Real Story." In >i>Moderate Inflation:
 The Experience of Transition Economies>/i>, ed. C. Cottarelli and G.
 Szapary, pp. 197-229. Washington, DC: International Monetary Fund and
 National Bank of Hungary.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>26</BIBL>	<BIBTEXT> Rogers, J. H., and M. Jenkins. 1995.
 "Haircuts or Hysteresis? Sources of Movements in Real Exchange Rates."
 >i>Journal of International Economics>/i> 38, nos. 3-4 (May):
 339-360.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT> Slok, T., and M. De Broek. 2000. "Focus on Transition
 Economies." >i>IMF World Economic Outlook>/i>, October.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>28</BIBL>	 <BIBTEXT> Wozniak, P.
 1998. "Relative Prices and Inflation in Poland, 1989-1997: The Special
 Role of Administered Price Increases." World Bank Working Paper 1897,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>29</BIBL>   
     <BIBTEXT> Zavoiko, B. 1995. "A Brief Note on the Inflationary Process
 in Transition Economies." International Monetary Fund, Washington, DC,
 July.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:44:y:2008:i:3:p:48-65




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 2 
Volume: 45 
Year: 2009 
Month: 3 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D0R9NN32R7G28561 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:45:y:2009:i:2:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: George R. G. Clarke 
Author-X-Name-First: George R. G. 
Author-X-Name-Last: Clarke 
Title: Beyond Tariffs and Quotas: Why Do African Manufacturers Not Export More? 
Abstract:
 Africa's export performance has been extremely poor in recent years. Its
 share of world exports has declined and most countries are highly
 dependent on a narrow range of primary commodities for export earnings.
 This paper looks at factors that affect the export performance of
 manufacturing enterprises in eight African countries. In addition to
 enterprise characteristics (e.g., size, ownership, and education of the
 manager), policy-related variables also affect exporting. Manufacturing
 enterprises are less likely to export in countries with restrictive trade
 and customs regulations and poor customs administration.
Journal: Emerging Markets Finance and Trade 
Pages: 44-64 
Issue: 2 
Volume: 45 
Year: 2009 
Month: 3 
Keywords: Africa, exports, manufacturing, trade regulations, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=F46M5H00X8165151 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Biggs, T.; M. Miller;
 C. Otto; and G. Tyler. 1996. "Africa Can Compete! Export Opportunities and
 Challenges for Garments and Home Products in the European Market."
 Discussion Paper no. 300, World Bank, Washington, DC.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Bigsten, A.; P.
 Collier; S. Dercon; M. Fafchamps; B. Gauthier; J.W. Gunning; A. Oduro; R.
 Oostedorp; C. Pattillo; M. Soderbom; F. Teal; and A. Zeufack. 2004. "Do
 African Manufacturing Firms Learn from Exporting." >i>Journal of
 Development Studies>/i> 40, no. 3: 115-141.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> BlomstrÃƒÂ¶m, M., and A. Kokko.
 1998. "Multinational Corporations and Spillovers." >i>Journal of Economic
 Surveys>/i> 12, no. 3: 247-277.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>4</BIBL>        <BIBTEXT> Clarke, G.R.G. 2004. "Why Don't African
 Manufacturing Enterprises Export More? The Role of Trade Policy,
 Infrastructure Quality, and Enterprise Characteristics." World Bank,
 Washington DC.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	   
   <BIBTEXT> Clarke, G.R.G. 2008. "Does Internet Connectivity Affect Export
 Performance? Evidence from the Transition Economies." >i>Information
 Economics and Policy>/i> 20, no. 1: 16-37.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Clarke, G.R.G., and S.J.
 Wallsten. 2006. "Has the Internet Increased Trade? Developed and
 Developing Country Evidence." >i>Economic Inquiry>/i> 44, no. 3:
 465-484.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Clerides, S.K.; S. Lach; and J.R. Tybout. 1998. "Is Learning by
 Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and
 Morocco." >i>Quarterly Journal of Economics>/i> 113, no. 3:
 903-947.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> De Wulf, L. 2003. "Uganda: Issues and Lessons in Customs
 Reform." World Bank, Washington</BIBTEXT>	</REF>	    <REF>	
 <BIBL>9</BIBL>        <BIBTEXT> De Wulf, L., and E. Finateu. 2002. "Best
 Practices in Customs Administration ReformÃ¢Â€Â”Lessons from Morocco." World
 Bank PREM Note no. 67, World Bank, Washington, DC.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>10</BIBL>	<BIBTEXT> Freund, C., and D.
 Weinhold. 2002. "The Internet and International Trade in Services."
 >i>American Economic Review>/i> 92, no. 2: 236-240.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Freund, C., and D.
 Weinhold. 2004. "The Effect of the Internet on International Trade."
 >i>Journal of International Economics>/i> 62, no. 1: 171-189.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>12</BIBL>	   <BIBTEXT> Grenier, L.;
 A. McKay; and O. Morrissey. 1999. "Exporting, Ownership, and Confidence in
 Tanzanian Enterprises." >i>World Economy>/i> 22, no. 7:
 995-1011.</BIBTEXT>	  </REF>      <REF>	   <BIBL>13</BIBL>	 
 <BIBTEXT> Lal, K. 2004. "E-Business and Export Behavior." >i>World
 Development>/i> 32, no. 3: 505-517.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>14</BIBL>	 <BIBTEXT> Mbaye, A.A., and S. Golub. 2003. "Unit
 Labor Costs, International Competitiveness, and Exports: The Case of
 Senegal." >i>Journal of African Economics>/i> 11, no. 2:
 219-248.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Mengistae, T., and C. Pattillo. 2004. "Export Orientation and
 Productivity in Sub-Saharan Africa." >i>International Monetary Fund Staff
 Papers>/i> 51, no. 2: 327-353.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>16</BIBL>	<BIBTEXT> Milner, C.; O. Morrissey; and N.
 Rudaheranwa. 2000. "Policy and Nonpolicy Barriers to Trade and Implicit
 Taxation of Exports in Uganda." >i>Journal of Development Studies>/i> 37,
 no. 2: 67-90.</BIBTEXT>      </REF>	  <REF>        <BIBL>17</BIBL>	   
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 2000. "Globalization and Trade: The Implications for Exports from
 Marginalized Economies." >i>Journal of Development Studies>/i> 37, no. 2:
 1-12.</BIBTEXT>      </REF>	  <REF>        <BIBL>20</BIBL>	     
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 "Are Manufacturing Exports the Key to Economic Success in Africa?"
 >i>Journal of African Economics>/i> 12, no. 1: 1-29.</BIBTEXT>      </REF>
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 "Regulation and Internet Use in Developing Countries." >i>Economic
 Development and Cultural Change>/i> 53, no. 2: 501-523.</BIBTEXT>     
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 Jordan. 2000. "Why Does Zimbabwe Export Manufactures and Uganda Not?
 Econometrics Meets History." >i>Journal of Development Studies>/i> 37, no.
 2: 91-116.</BIBTEXT>	   </REF>      <REF>	    <BIBL>24</BIBL>	  
 <BIBTEXT> Wood, A., and J. Mayer. 2001. "Africa's Export Structure in a
 Comparative Perspective." >i>Cambridge Journal of Economics>/i> 25, no. 3:
 369-394.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
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 Investment ClimateÃ¢Â€Â”For Everyone.>/i> Washington DC.</BIBTEXT>     
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 2002. "Export Performance in Africa and Asia's Manufacturing: Evidence
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 258-281.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:2:p:44-64




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander  Muravyev 
Author-X-Name-First: Alexander  
Author-X-Name-Last: Muravyev 
Title: Dual Class Stock in Russia: Explaining a Pricing Anomaly 
Abstract:
 This paper studies the determinants of the unusually high and volatile
 price differential between common (voting) shares and preferred
 (nonvoting) shares in Russia's emerging stock market. It focuses on three
 potential explanations for the price spread between these two classes of
 stock: the control contest model of the voting premium, the inferior
 liquidity of preferred shares, and the risk of expropriation of preferred
 shareholders as a class. The regression analysis, based on data from 1997
 to 2005, supports the control contest explanation and the liquidity
 argument. The hypothesis of expropriation of preferred shareholders as a
 class receives limited support, and only in the early period of the
 Russian stock market's development. The paper addresses the issue of
 structural breaks in the evolution of the price differential, related to
 the 1998 financial crisis and to improvements in investor protection in
 Russia in the early 2000s. It also provides new estimates of the magnitude
 of the private benefits of control in Russian companies.
Journal: Emerging Markets Finance and Trade 
Pages: 21-43 
Issue: 2 
Volume: 45 
Year: 2009 
Month: 3 
Keywords: corporate governance, dual class shares, Russia, voting premium, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=N80T731358063407 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Amihud, Y., and
 Mendelson, H. 1986. "Asset Pricing and the Bid-Ask Spread." >i>Journal of
 Financial Economics>/i> 17, no. 2: 223-249.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Amihud, Y., and Mendelson, H.
 1991. "Liquidity, Asset Prices, and Financial Policy." >i>Financial
 Analysts Journal>/i> 47, no. 6: 56-66.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>3</BIBL>	   <BIBTEXT> Anatolyev, S. 2008. "A Ten-Year
 Retrospective on the Determinants of Russian Stock Returns." >i>Research
 in International Business and Finance>/i> 22, no. 1: 56-67.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Anatolyev, S.,
 and D. Shakin. 2007. "Trade Intensity in the Russian Stock Market:
 Dynamics, Distribution, and Determinants." >i>Applied Financial
 Economics>/i> 17, no. 2: 87-104.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>5</BIBL>        <BIBTEXT> Barclay, M.J., and C.G. Holderness. 1989.
 "Private Benefits from Control of Public Corporations." >i>Journal of
 Financial Economics>/i> 25, no. 2: 371-395.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Becht, M.; P. Bolton; and A.
 Roell. 2002. >i>Corporate Governance and Control.>/i> Working Paper no.
 9371, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Black, B.; R.
 Kraakman; and A. Tarassova. 2000. "Russian Privatization and Corporate
 Governance: What Went Wrong?" >i>Stanford Law Review>/i> 52, no. 6:
 1731-1808.</BIBTEXT>	   </REF>      <REF>	    <BIBL>8</BIBL>	 
 <BIBTEXT> Carvalhal da Silva, A., and A. Subrahmanyam. 2007. "Dual-Class
 Premium, Corporate Governance, and the Mandatory Bid Rule: Evidence from
 the Brazilian Stock Market." >i>Journal of Corporate Finance>/i> 13, no.
 1: 1-24.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Chung, K., and J.-K. Kim. 1999. "Corporate Ownership and the
 Value of a Vote in an Emerging Market." >i>Journal of Corporate
 Finance>/i> 5, no. 1: 35-54.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>10</BIBL>	<BIBTEXT> Doidge, C. 2004. "U.S. Cross-Listings and
 the Private Benefits of Control: Evidence from Dual Class Firms."
 >i>Journal of Financial Economics>/i> 72, no. 3: 519-553.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Dyck, A., and L.
 Zingales. 2004. "Private Benefits of Control: An International
 Comparison." >i>Journal of Finance>/i> 59, no. 2: 537-600.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Goetzmann, W.;
 M. Spiegel; and A. Ukhov. 2003. "Modelling and Measuring Russian Corporate
 Governance: The Case of Russian Preferred Common Shares." Working Paper
 no. 9469, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>13</BIBL>	    <BIBTEXT> Goriaev, A.,
 and A. Zabotkin. 2006. "Risks of Investing in the Russian Stock Market:
 Lessons of the First Decade." >i>Emerging Markets Review>/i> 7, no. 4:
 380-397.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Grossman, S., and O. Hart. 1988. "One Share/One Vote and the
 Market for Corporate Control." >i>Journal of Financial Economics>/i> 20,
 nos. 1-2: 175-202.</BIBTEXT>	   </REF>      <REF>	    <BIBL>15</BIBL>
	<BIBTEXT> Hare, P., and A. Muravyev. 2003. "Privatization in
 Russia." In >i>International Handbook on Privatization>/i>, ed. D. Parker
 and D. Saal, pp. 347-374. Cheltenham, UK: Edward Elgar.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>
 Hoffmann-Burchardi, U. 1999. >i>Corporate Governance Rules and the Value
 of Control: A Study of German Dual Class Shares.>/i> Financial Markets
 Group Discussion Paper no. 315, London School of Economics,
 London.</BIBTEXT>	</REF>	    <REF>	 <BIBL>17</BIBL>       
 <BIBTEXT> Jensen, M., and W. Meckling. 1976. "Theory of the Firm:
 Managerial Behavior, Agency Cost, and Capital Structure." >i>Journal of
 Financial Economics>/i> 3, no. 4: 305-360.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> Johnson, S.; R. La Porta; F.
 Lopez-de-Silanes; and A. Shleifer. 2000. "Tunneling." >i>American Economic
 Review>/i> 90, no. 2: 22-27.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>19</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A.
 Shleifer; and R. Vishny. 2002. "Investor Protection and Corporate
 Valuation." >i>Journal of Finance>/i> 57, no. 3: 1147-1170.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT> Milnor, J., and
 L. Shapley. 1978. "Values of Large Games II: Oceanic Games."
 >i>Mathematics of Operations Research>/i> 3, no. 4: 290-307.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>21</BIBL>	  <BIBTEXT> Nenova, T.
 2003. "The Value of Corporate Voting Rights and Control: A Cross-Country
 Analysis." >i>Journal of Financial Economics>/i> 68, no. 3:
 325-351.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Nenova, T. 2006. "Control Values and Changes in Corporate Law in
 Brazil." >i>Latin American Business Review>/i> 6, no. 3: 1-37.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>23</BIBL>	    <BIBTEXT> Neumann, R.
 2003. "Price Differentials Between Dual-Class Stocks: Voting Premium or
 Liquidity Discount?" >i>European Financial Management>/i> 9, no. 3:
 315-332.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT> Nicodano, G. 1998. "Corporate Groups, Dual-Class Shares, and the
 Value of Voting Rights." >i>Journal of Banking and Finance>/i> 22, no. 9:
 1117-1137.</BIBTEXT>	   </REF>      <REF>	    <BIBL>25</BIBL>	  
 <BIBTEXT> Pajuste, A. 2005. "Determinants and Consequences of Unification
 of Dual Class Shares." Working Paper no. 465, European Central Bank,
 Frankfurt.</BIBTEXT>	   </REF>      <REF>	    <BIBL>26</BIBL>	  
 <BIBTEXT> Robinson, C.; J. Rumsey; and A. White. 1995. "The Value of a
 Vote in the Market for Corporate Control." Working Paper, Faculty of
 Administrative Studies, York University, Toronto.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>27</BIBL>        <BIBTEXT> Rydqvist, K. 1987.
 "Empirical Investigation of the Voting Premium." Working Paper no. 35,
 Northwestern University, Evanston, IL.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>28</BIBL>	    <BIBTEXT> Rydqvist, K. 1996. "Takeover Bids and
 the Relative Prices of Shares That Differ in Their Voting Rights."
 >i>Journal of Banking and Finance>/i> 20, no. 8: 1407-1425.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>29</BIBL>	 <BIBTEXT> Saito, R. 2003.
 "Determinants of the Differential Pricing of Voting and Nonvoting Shares
 in Brazil." >i>Brazilian Review of Econometrics>/i> 23, no. 1:
 77-111.</BIBTEXT>	</REF>	    <REF>	 <BIBL>30</BIBL>       
 <BIBTEXT> Securities Market. 1998. "Puzzles of the Russian Preferred
 Shares." >i>Rynok Tsennykh Bumag>/i> 4 (February): 38-41.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>31</BIBL>	 <BIBTEXT> Shleifer, A.,
 and R. Vishny. 1997. "A Survey of Corporate Governance." >i>Journal of
 Finance>/i> 52, no. 2: 737-783.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>32</BIBL>	<BIBTEXT> Smith, B., and B. Amoako-Adu. 1995.
 "Relative Prices of Dual Class Shares." >i>Journal of Financial and
 Quantitative Analysis>/i> 30, no. 2: 223-239.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>33</BIBL>	     <BIBTEXT> Stoll, H., and R. Whaley.
 1983. "Transaction Costs and the Small Firm Effect." >i>Journal of
 Financial Economics>/i> 12, no. 1: 57-79.</BIBTEXT>	  </REF>      <REF>
	<BIBL>34</BIBL>        <BIBTEXT> Willer, D. 1997. "Corporate
 Governance and Shareholder Rights in Russia." Working Paper no. 343,
 Center for Economic Performance, London School of Economics,
 London.</BIBTEXT>	</REF>	    <REF>	 <BIBL>35</BIBL>       
 <BIBTEXT> Wooldridge, J. 2002. >i>Econometric Analysis of Cross-Section
 and Panel Data.>/i> Cambridge, MA: MIT Press.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>36</BIBL>	     <BIBTEXT> Zingales, L. 1994. "The
 Value of the Voting Right: A Study of the Milan Stock Exchange
 Experience." >i>Review of Financial Studies>/i> 7, no. 1:
 125-148.</BIBTEXT>	 </REF>      <REF>	  <BIBL>37</BIBL>	
 <BIBTEXT> Zingales, L. 1995. "What Determines the Value of Corporate
 Votes?" >i>Quarterly Journal of Economics>/i> 110, no. 4:
 1047-1073.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:2:p:21-43




Template-Type: ReDIF-Article 1.0
Author-Name: Adam  Elbourne 
Author-X-Name-First: Adam  
Author-X-Name-Last: Elbourne 
Author-Name: Jakob  de Haan 
Author-X-Name-First: Jakob  
Author-X-Name-Last: de Haan 
Title: Modeling Monetary Policy Transmission in Acceding Countries: Vector Autoregression Versus Structural Vector Autoregression 
Abstract:
 Using the vector autoregressive methodology, we present estimates of
 monetary transmission for five new EU member countries in Central and
 Eastern Europe with more or less flexible exchange rates. We select sample
 periods to estimate over the longest possible period that can be
 considered as a single monetary policy regime. To identify the vector
 autoregression (VAR), structural restrictions and the widely used Cholesky
 ordering are employed. We conclude that the structural VAR yields much
 better results. Fewer countries suffer from a price puzzle (i.e., an
 increase in prices following a monetary contraction). Our results also
 indicate that there are substantial differences in monetary transmission
 across the countries in our sample.
Journal: Emerging Markets Finance and Trade 
Pages: 4-20 
Issue: 2 
Volume: 45 
Year: 2009 
Month: 3 
Keywords: monetary transmission, transition countries, vector autoregression, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W7777P08527Q5813 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Amato, J.D., and S.
 Gerlach. 2001. "Modelling the Transmission Mechanism of Monetary Policy in
 Emerging Market Countries Using Prior Information." Paper no. 18, Bank of
 International Settlements, Basel.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Bernanke, B.S., and M. Woodford. 1997.
 "Inflation Forecasts and Monetary Policy." >i>Journal of Money, Credit,
 and Banking>/i> 29, no. 4: 653-684.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>3</BIBL>	<BIBTEXT> Christiano, L.J.; M. Eichenbaum; and C.L.
 Evans. 1999. "Monetary Policy Shocks: What Have We Learned, and to What
 End?" In >i>Handbook of Macroeconomics>/i>, ed. J. Taylor and M. Woodford,
 pp. 65-148. Amsterdam: North-Holland.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>4</BIBL>	  <BIBTEXT> De Grauwe, P., and G. Schnabl. 2004.
 "Exchange Rate Regimes and Macroeconomic Stability in Central and Eastern
 Europe." CESifo Working Paper no. 1182, Ifo Institute for Economic
 Research, Munich.</BIBTEXT>	  </REF>      <REF>	   <BIBL>5</BIBL>  
      <BIBTEXT> De Haan, J.; S. Eijffinger; and S. Waller. 2005. >i>The
 European Central Bank Credibility, Transparency, and Centralization.>/i>
 Cambridge, MA: MIT Press.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>6</BIBL>        <BIBTEXT> Eichenbaum, M. 1992. "Comment on
 Interpreting the Macroeconomic Time Series Facts: The Effects of Monetary
 Policy." >i>European Economic Review>/i> 36, no. 5: 1001-1011.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>7</BIBL>	   <BIBTEXT> European
 Forecasting Network (EFN). 2004. "The Euro Area and the Acceding
 Countries." Report, spring, Milan.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>8</BIBL>        <BIBTEXT> Faust, J., and E.M. Leeper. 1997. "When Do
 Long-Run Identifying Restrictions Give Reliable Results?" >i>Journal of
 Business and Economic Statistics>/i> 15, no. 3: 345-353.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Favero, C.A.
 2001. >i>Applied Macroeconometrics.>/i> Oxford: Oxford University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>       
 <BIBTEXT> FrÃƒÂ¶mmel, M. 2006. "Volatility Regimes in Central and Eastern
 European Countries' Exchange Rates." Wirtschaftswissenschaftlichen
 FakultÃƒÂ¤t der UniversitÃƒÂ¤t Hannover Discussion Paper dp-333, UniversitÃƒÂ¤t
 Hannover, Wirtschaftswissenschaftliche FakultÃƒÂ¤t.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>11</BIBL>        <BIBTEXT> Ganev, G.; K. Molnar; K.
 RybiÃ…Â„ski; and P. WoÃ…Âºniak. 2002. "Transmission Mechanism of Monetary
 Policy in Central and Eastern Europe." Case report no. 52, Center for
 Social and Economic Research, Warsaw.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>12</BIBL>	   <BIBTEXT> Golinelli, R., and R. Rovelli. 2005.
 "Monetary Policy Transmission, Interest Rate Rules, and Inflation
 Targeting in Three Transition Countries." >i>Journal of Banking and
 Finance>/i> 29, no. 1: 183-201.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>13</BIBL>	<BIBTEXT> Hall, P. 1988. "On Symmetric Bootstrap
 Confidence Intervals." >i>Journal of the Royal Statistical Society>/i> B,
 no. 50: 35-45.</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>    
    <BIBTEXT> International Monetary Fund. Various issues. >i>Annual Report
 on Exchange Rate Arrangements and Exchange Restrictions.>/i> Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>15</BIBL>	   
 <BIBTEXT> JanÃƒÂ¡Ã„Â‡kovÃƒÂ¡, S. 2004. "Eurozone Expansion: Certain Risks for
 Countries Catching Up." >i>Eastern European Economics>/i> 42, no. 2:
 6-44.</BIBTEXT>      </REF>	  <REF>        <BIBL>16</BIBL>	     
 <BIBTEXT> Kim, S., and N. Roubini. 2000. "Exchange Rate Anomalies in the
 Industrial Countries: A Solution with a Structural VAR Approach."
 >i>Journal of Monetary Economics>/i> 45, no. 3: 561-586.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT> Kwiatkowski, D.;
 P.C.B. Phillips; P. Schmidt; and Y. Shin. 1992. "Stationarity Against the
 Alternative of a Unit Root." >i>Journal of Econometrics>/i> 54, nos. 1-3:
 159-178.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT> LÃƒÂ¼tkepohl, H., and M. KrÃƒÂ¤tzig. 2004. >i>Applied Time Series
 Econometrics.>/i> Cambridge: Cambridge University Press.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> McCallum, B.T.
 1999. "Issues in the Design of Monetary Policy Rules." In >i>Handbook of
 Macroeconomics>/i>, ed. J.B. Taylor and M. Woodford, pp. 1483-1530.
 Amsterdam: North-Holland.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>20</BIBL>	<BIBTEXT> Phillips, P. 1998. "Impulse Response and
 Forecast Error Variance Asymptotics in Nonstationary VARs." >i>Journal of
 Econometrics>/i> 83, nos. 1-2: 21-56.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>21</BIBL>	   <BIBTEXT> Sims, C.A. 1992. "Interpreting the
 Macroeconomic Time Series Facts: The Effects of Monetary Policy."
 >i>European Economic Review>/i> 36, no. 5: 975-1011.</BIBTEXT>      </REF>
      <REF>	   <BIBL>22</BIBL>	  <BIBTEXT> Sims, C.A.; J.H. Stock;
 and M.W. Watson. 1990. "Inference in Linear Time Series Models with Some
 Unit Roots." >i>Econometrica>/i> 58, no. 1: 113-144.</BIBTEXT>      </REF>
      <REF>	   <BIBL>23</BIBL>	  <BIBTEXT> Sims, C.A., and T. Zha.
 1998. "Does Monetary Policy Generate Recessions?" Working Paper no. 98-12,
 Federal Reserve Bank of Atlanta.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:2:p:4-20




Template-Type: ReDIF-Article 1.0
Author-Name: Mete  Feridun 
Author-X-Name-First: Mete  
Author-X-Name-Last: Feridun 
Title: Determinants of Exchange Market Pressure in Turkey: An Econometric Investigation 
Abstract:
 This paper investigates the hypothesis that there is a causal relation
 between speculative pressure and real exchange rate overvaluation,
 banking-sector fragility, and the level of international reserves in
 Turkey. An autoregressive distributed lag (ARDL) bounds-testing procedure
 and Granger causality within vector error-correction models (VECM) are
 applied to the period after the liberalization of capital flows (August
 1989-August 2006). The results of the ARDL bounds test support the theory
 that exchange market pressure is in a long-run equilibrium relation with
 the three hypothesized variables over the sample period. On the other
 hand, the results of the short-run and long-run Granger causality tests
 indicate the existence of Granger causality running from the three
 variables to exchange market pressure. The findings further suggest that a
 feedback relation exists between banking-sector fragility and exchange
 market pressure.
Journal: Emerging Markets Finance and Trade 
Pages: 65-81 
Issue: 2 
Volume: 45 
Year: 2009 
Month: 3 
Keywords: ARDL bounds test, exchange market pressure, Granger causality, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X10J4TU61XX1539W 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> AÃ„ÂŸcaer, A. 2003.
 "Dalgali Kur Rejimi Altinda Merkez Bankasi Mudahalelerinin Etkinligi:
 Turkiye Uzerine Bir Calisma" [Effectiveness of the Central Bank
 Interventions Under the Floating Exchange Rate: An Empirical Investigation
 on Turkey]. Uzmanlik Yeterlilik Tezi, Central Bank of the Republic of
 Turkey, Ankara. December.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Akyurek, C. 2006. "The Turkish Crisis of
 2001: A Classic?" >i>Emerging Markets Finance and Trade>/i> 42, no. 1
 (January-February): 5-32.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>3</BIBL>        <BIBTEXT> Alper, C., and Z. Onis. 2003. "Financial
 Globalization, the Democratic Deficit, and Recurrent Crises in Emerging
 Markets: The Turkish Experience in the Aftermath of Capital Account
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Handle: RePEc:mes:emfitr:v:45:y:2009:i:2:p:65-81




Template-Type: ReDIF-Article 1.0
Author-Name: Josef C. Brada 
Author-X-Name-First: Josef C. 
Author-X-Name-Last: Brada 
Author-Name: VladimÃƒÂ­r  TomÃ…Â¡ÃƒÂ­k 
Author-X-Name-First: VladimÃƒÂ­r  
Author-X-Name-Last: TomÃ…Â¡ÃƒÂ­k 
Title: The Foreign Direct Investment Financial Life Cycle: Evidence of Macroeconomic Effects from Transition Economies 
Abstract:
 The imputation of reinvested earnings from foreign direct investment (FDI)
 as a debit in the balance of payments exaggerates the current account
 deficit. This phenomenon is of major importance for transition economies
 because they received massive inflows of FDI in the late 1990s. We model
 the FDI financial life cycle to describe the evolution of profits,
 reinvested earnings, and repatriated dividends for an FDI project to show
 that this inflow of investment to transition economies has caused large
 distortions in their current account deficits. We verify the workings of
 the FDI financial life cycle and estimate its duration using a sample of
 eight transition economies.
Journal: Emerging Markets Finance and Trade 
Pages: 5-20 
Issue: 3 
Volume: 45 
Year: 2009 
Month: 5 
Keywords: balance of payments, foreign direct investment, foreign exchange crisis, profit and dividend remittances, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8704278640012H60 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Berg, A., and C.
 Pattillio. 1999. "Are Currency Crises Predictable?" >i>IMF Staff
 Papers>/i> 46, no. 2: 107-138.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>2</BIBL>        <BIBTEXT> Brada, J.C.; A.M. Kutan; and T.M. Yigit.
 2006. "The Effects of Transition and Political Instability on Foreign
 Direct Investment: Central Europe and the Balkans." >i>Economics of
 Transition>/i> 14, no. 4: 649-680.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>3</BIBL>        <BIBTEXT> Burkart, O., and V. Coudret. 2002.
 "Leading Indicators of Currency Crises for Emerging Countries."
 >i>Emerging Markets Review>/i> 3, no. 2: 107-133.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>4</BIBL>	      <BIBTEXT> Eichengreen, B.; A. Rose;
 and C. Wyplosz. 1996. "Contagious Currency Crises." Working Paper 5681,
 National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>
      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT> FernÃƒÂ¡ndez-Arias, E.,
 and R. Hausmann. 2001. "Is Foreign Direct Investment a Safer Form of
 Investment?" >i>Emerging Markets Review>/i> 2, no. 1: 34-49.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>6</BIBL>	 <BIBTEXT> GerÃ…Â¡l, A., and
 M. HlavÃƒÂ¡Ã„Âek. 2007. "Foreign Direct Investment, Corporate Finance and the
 Life Cycle of Investment." >i>Czech Journal of Economics and Finance>/i>
 57, no. 9-10: 448-464.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>7</BIBL>        <BIBTEXT> Goldfajn, I., and R. ValdÃƒÂ©s. 1998. "Are
 Currency Crises Predictable?" >i>European Economic Review>/i> 42, no. 3-5:
 873-885.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Goldstein, M.; G.L. Kaminsky; and C.R. Reinhart. 2000.
 "Assessing Financial Vulnerability; An Early Warning System for Emerging
 Markets." Mimeograph, Institute for International Economics, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>	  
 <BIBTEXT> International Monetary Fund (IMF). 1993. "Balance of Payments
 Manual." Washington, DC.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>10</BIBL>	<BIBTEXT> International Monetary Fund (IMF). 2007.
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     </REF>	 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Kaminsky,
 G.L., and C.M. Reinhart. 1999. "The Twin Crises: The Causes of Banking and
 Balance of Payments Problems." >i>American Economic Review>/i> 89, no. 3:
 473-500.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Koretz, G. 2002. "Economic Trends: The U.S. Finally Pays the
 Piper." >i>Business Week>/i>, November 11.</BIBTEXT>	   </REF>     
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   </REF>      <REF>	    <BIBL>14</BIBL>	   <BIBTEXT>
 Milesi-Ferretti, G., and A. Razin. 1996. "Sustainability of Persistent
 Current Account Deficits." Working Paper 5467, National Bureau of Economic
 Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>15</BIBL>	<BIBTEXT> Rajan, R.G., and L. Zingales. 1995. "What
 Do We Know About Capital Structure? Empirical Evidence from International
 Data." >i>Journal of Finance>/i> 50, no. 5: 1421-1460.</BIBTEXT>     
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 and R.B. Stobaugh. 1973. >i>Money in the International Enterprise>/i>. New
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	<BIBTEXT> Summers, L.H. 1996. "Commentary." In >i>Volatile Capital
 Flows>/i>, ed. R. Hausman and L. Rojas-Suarez, pp. 144-149. Washington,
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 Financial Crises: Causes, Prevention, and Cures." >i>American Economic
 Review>/i> 90, no. 2: 1-16.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:3:p:5-20




Template-Type: ReDIF-Article 1.0
Author-Name: Fuhmei  Wang 
Author-X-Name-First: Fuhmei  
Author-X-Name-Last: Wang 
Title: Financial Distortions and Economic Growth: Empirical Evidence 
Abstract:
 Conventional wisdom suggests a negative relation between financial
 distortions and economic growth. This paper incorporates the financial
 premium, a good proxy for the degree of restrictions on financial
 transactions, into a standard AK-type endogenous growth model. The
 analytical results suggest that such a relationship does not exist.
 Economic growth is insulated by the financial premium, contrasting with
 previously held beliefs. Agents' patience and the attitude of relative
 risk aversion are noteworthy in explaining the effects of external
 distortions on economic growth. Our findings may apply to economies with
 parallel exchange markets.
Journal: Emerging Markets Finance and Trade 
Pages: 56-66 
Issue: 3 
Volume: 45 
Year: 2009 
Month: 5 
Keywords: economic growth, financial distortions, financial premium, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=94032516764N2581 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 and G.M. Milesi-Ferretti. 1994. "The Political Economy of Capital
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Handle: RePEc:mes:emfitr:v:45:y:2009:i:3:p:56-66




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Referee Acknowledgment 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 83-87 
Issue: 3 
Volume: 45 
Year: 2009 
Month: 5 
Keywords: 
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Handle: RePEc:mes:emfitr:v:45:y:2009:i:3:p:83-87




Template-Type: ReDIF-Article 1.0
Author-Name: M. Hakan Berument 
Author-X-Name-First: M. Hakan 
Author-X-Name-Last: Berument 
Author-Name: Nukhet  Dogan 
Author-X-Name-First: Nukhet  
Author-X-Name-Last: Dogan 
Author-Name: Aysit  Tansel 
Author-X-Name-First: Aysit  
Author-X-Name-Last: Tansel 
Title: Macroeconomic Policy and Unemployment by Economic Activity: Evidence from Turkey 
Abstract:
 This paper investigates how various macroeconomic policy shocks in Turkey
 affect unemployment and provides evidence on the differential responses of
 unemployment in selected sectors of economic activity. Our paper extends
 previous work in two respects. First, we consider not only the response of
 total unemployment, but also the response of unemployment by selected
 sectors of economic activity. Second, we consider not only the effect of
 monetary policy shocks, but also the effects of several other
 macroeconomic shocks. The results indicate that unemployment in different
 sectors of economic activity responds differently to various macroeconomic
 policy shocks.
Journal: Emerging Markets Finance and Trade 
Pages: 21-34 
Issue: 3 
Volume: 45 
Year: 2009 
Month: 5 
Keywords: macroeconomic policy shocks, unemployment by economic activity, 
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agenor, P.R., and J.
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 North-Holland.</BIBTEXT>      </REF>	   <REF>	<BIBL>27</BIBL>    
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      <BIBTEXT> LÃƒÂ¼tkepohl, H., and H.E. Reimers. 1992. "Impulse Response
 Analysis of Cointegrated Systems." >i>Journal of Economic Dynamics and
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 "Cyclical and Noncyclical Unemployment Differences Among Demographic
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 >i>Malcolm: Maximum Likelihood Cointegration Analysis of Linear
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 Monetary Transmission: Lessons for Monetary Policy." Working Paper 5464,
 National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>
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 1997. "Examining Impulse Response Functions in Cointegrated Systems."
 >i>Applied Economics>/i> 29, no. 12: 1593-1603.</BIBTEXT>	</REF>	   
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 S. 1995. "The Identification of Monetary Policy Disturbances Explaining
 the Liquidity Puzzle." >i>Journal of Monetary Economics>/i> 35:
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 Review>/i> 85, no. 4: 1-16.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:3:p:21-34




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Mei  Chiang 
Author-X-Name-First: Shu-Mei  
Author-X-Name-Last: Chiang 
Author-Name: Chin-Piao  Yeh 
Author-X-Name-First: Chin-Piao  
Author-X-Name-Last: Yeh 
Author-Name: Chien-Liang  Chiu 
Author-X-Name-First: Chien-Liang  
Author-X-Name-Last: Chiu 
Title: Permanent and Transitory Components in the Chinese Stock Market: The ARJI-Trend Model 
Abstract:
 This study applies the ARJI-trend model in conjunction with the procedure
 proposed by Bai and Perron (2003) to investigate the coexistence of
 permanent and transitory components and time-varying jumps in the A and B
 stock market indices of the Shanghai and Shenzhen Stock Exchanges.
 Although the response to outside innovations is greater within the
 transitory component, it is short-lived; conversely, though there is a
 high level of persistence in the trend, new information has only a lesser
 effect on the permanent component. Jump variance can also affect total
 variance, though the effect is far lower than the variance for generalized
 autoregressive conditional heteroskedasticity. Accordingly, the market
 risk appears small. The reaction to news is heterogeneous within the
 Shanghai and Shenzhen indices; this may be the result of various market
 characteristics. During event periods, the permanent component, transitory
 components, and jump intensity are larger than their averages. After an
 upward trend, markets return to regular conditions over time. In sum, the
 total long-run risks within China's market seem low, though speculators
 can use the sizable transitory component of market fluctuation to engage
 in arbitrage activities. However, from the viewpoint of asset allocation
 regarding the trading noise in the Shenzhen B market, we suggest that
 rational investors deploy more funds in this market and less in the
 Shanghai A market to avoid a high degree of risk.
Journal: Emerging Markets Finance and Trade 
Pages: 35-55 
Issue: 3 
Volume: 45 
Year: 2009 
Month: 5 
Keywords: ARJI-trend model, jump, permanent component, structural break, transitory component, 
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ane, T. 2006. "Short-
 and Long-Term Components of Volatility in Hong Kong Stock Returns."
 >i>Applied Financial Economics>/i> 16, no. 6: 439-460.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Bai, J., and P.
 Perron. 2003. "Computation and Analysis of Multiple Structural Change
 Models." >i>Journal of Applied Econometrics>/i> 18, no. 1: 1-22.</BIBTEXT>
      </REF>	  <REF>        <BIBL>3</BIBL>	     <BIBTEXT> Brooks, R.,
 and V. Ragunathan. 2003. "Returns and Volatility on the Chinese Stock
 Markets." >i>Applied Financial Economics>/i> 13, no. 10:
 747-752.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Chan, W.H., and J.M. Maheu. 2002. "Conditional Jump Dynamics in
 Stock Market Returns." >i>Journal of Business and Economic Statistics>/i>
 20, no. 3: 377-389.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>
	<BIBTEXT> Chen, G.M.; B.S. Lee; and O.M. Rui. 2001. "Foreign
 Ownership Restrictions and Market Segmentation in China's Stock Markets."
 >i>Journal of Financial Research>/i> 24, no. 1: 133-151.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Chen, S.W., and
 C.H. Shen. 2004. "GARCH, Jumps, and Permanent and Transitory Components of
 Volatility: The Case of the Taiwan Exchange Rate." >i>Mathematics and
 Computers in Simulation>/i> 67, no. 3: 201-216.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> Chiu, C.L.; M. Lee; and C.D.
 Chen. 2005. "Removal of an Investment Restriction: The Ã¢Â€Â˜BÃ¢Â€Â™ Share
 Experience from China's Stock Markets." >i>Applied Financial Economics>/i>
 15, no. 4: 273-285.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>
	<BIBTEXT> Chiu, C.L.; S.M. Chiang; and F. Kao. 2006. "The
 Relationship Between the S&P 500 Spot and Futures Indices: Brothers or
 Cousins?" >i>Applied Financial Economics>/i> 16, no. 5: 405-412.</BIBTEXT>
      </REF>	  <REF>        <BIBL>9</BIBL>	     <BIBTEXT> Chung, H.M.,
 and S.M. Chiang. 2006. "Price Clustering in E-Mini and Floor-Traded Index
 Futures." >i>Journal of Futures Markets>/i> 26, no. 3: 269-295.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Daal E.; A.
 Naka; and J.S. Yu. 2007. "Volatility Clustering, Leverage Effects, and
 Jump Dynamics in the U.S. and Emerging Asian Equity Markets." >i>Journal
 of Banking and Finance>/i> 31, no. 9: 2751-2769.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>11</BIBL>	      <BIBTEXT> Engle, R.F., and G.J. Lee.
 1999. "A Long-Run and Short-Run Component Model of Stock Return
 Volatility." In >i>Cointegration, Causality, and Forecasting>/i>, ed. R.
 Engle and H. White, pp. 475-497. Oxford: Oxford University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>       
 <BIBTEXT> Kim H.Y., and J.P. Mei. 2001. "What Makes the Stock Market Jump?
 An Analysis of Political Risk on Hong Kong Stock Returns." >i>Journal of
 International Money and Finance>/i> 20, no. 7: 1003-1016.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Maheu, J., and
 T. McCurdy. 2004. "News Arrival, Jump Dynamics, and Volatility Components
 for Individual Stock Returns." >i>Journal of Finance>/i> 59, no. 2:
 755-793.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Poon, W.P.H., and H.G. Fung. 2000. "Red Chips or H Shares: Which
 China-Backed Securities Process Information the Fastest?" >i>Journal of
 Multinational Financial Management>/i> 10, nos. 3-4: 315-343.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>15</BIBL>	   <BIBTEXT> Speight,
 A.E.H.; D.G. McGillan; and O.A. Gwilym. 2000. "Intraday Volatility
 Components in FTSE-100 Stock Index Futures." >i>Journal of Futures
 Markets>/i> 20, no. 5: 425-444.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:45:y:2009:i:3:p:35-55




Template-Type: ReDIF-Article 1.0
Author-Name: Pei-Gi  Shu 
Author-X-Name-First: Pei-Gi  
Author-X-Name-Last: Shu 
Author-Name: Yin-Hua  Yeh 
Author-X-Name-First: Yin-Hua  
Author-X-Name-Last: Yeh 
Author-Name: Yu-Hui  Su 
Author-X-Name-First: Yu-Hui  
Author-X-Name-Last: Su 
Title: Decisions of Initial Public Offering Review Committees: Causes and Consequences 
Abstract:
 We investigate the causes and consequences of the decisions made by an
 initial public offering (IPO) reviewing committee using a unique data set
 from Taiwan. Firms that were approved for listing are associated with
 better financial performance measures and are larger in equity size.
 Whether the committee unanimously approves an IPO firm depends on whether
 the firm's associated auditor changes or gives a nonunqualified report.
 The voting outcome has a discernable effect in the sense that unanimously
 approved firms are associated with higher financial performance measures
 (returns on equity, returns on assets, earnings per share, and the
 price-to-earnings ratio) than are nonunanimously approved firms, with the
 differences being more significant in the two years after the IPO.
Journal: Emerging Markets Finance and Trade 
Pages: 67-82 
Issue: 3 
Volume: 45 
Year: 2009 
Month: 5 
Keywords: IPO reviewing committee, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=RR73H17P4388046Q 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Altman, E.I. 1968.
 "Financial Ratios, Discriminate Analysis, and the Prediction of Corporate
 Bankruptcy." >i>Journal of Finance>/i> 23, no. 4: 589-609.</BIBTEXT>	  
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 Professionalization of Start-Up Firms: Empirical Evidence." >i>Journal of
 Finance>/i> 57, no. 1: 169-197.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>17</BIBL>	<BIBTEXT> Johnson, W.B., and T. Lys. 1990. "The
 Market for Audit Service: Evidence from Voluntary Auditor Changes."
 >i>Journal of Accounting and Economics>/i> 12, nos. 1-3:
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 Financial Economics>/i> 53, no. 3: 409-437.</BIBTEXT>	    </REF>     
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 Womack. 2001. "Why Do Firms Switch Underwriters?" >i>Journal of Financial
 Economics>/i> 60, nos. 2-3: 245-284.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>20</BIBL>	  <BIBTEXT> Lee, T.S., and Y.H. Yeh. 2004.
 "Corporate Governance and Financial Distress: Evidence from Taiwan."
 >i>Corporate Governance: An International Review>/i> 12, no. 3:
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 <BIBTEXT> Leland, H.E., and D.H. Pyle. 1977. "Informational Asymmetries,
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 Finance>/i> 32, no. 2: 371-387.</BIBTEXT>	</REF>	    <REF>	
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 "IPO Auctions and Private Information." >i>Journal of Banking and
 Finance>/i> 31, no. 5: 1483-1500.</BIBTEXT>	  </REF>      <REF>	  
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 "Additional Evidence on Equity Ownership and Corporate Value." >i>Journal
 of Financial Economics>/i> 27, no. 2: 595-613.</BIBTEXT>      </REF>	  
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 Shleifer; and R.W. Vishny. 1988. "Management Ownership and Market
 Valuation: An Empirical Analysis." >i>Journal of Financial Economics>/i>
 20, nos. 1-2: 293-315.</BIBTEXT>      </REF>	   <REF>       
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 Control and Bank Efficiency." >i>Journal of Banking and Finance>/i> 20,
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	<BIBTEXT> Pratt, J., and J.D. Stice. 1994. "The Effects of Client
 Characteristics on Auditor Litigation Risk Judgment, Required Audit
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 639-656.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
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 Underpriced?" >i>Review of Financial Studies>/i> 17, no. 3:
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 <BIBTEXT> Ritter, J. 1991. "The Long-Run Performance of Initial Public
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 "Why New Issues Are Underpriced." >i>Journal of Financial Economics>/i>
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 Market Information to Identify Preengagement Factors Associated with
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 45-64.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:45:y:2009:i:3:p:67-82




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 3 
Volume: 45 
Year: 2009 
Month: 5 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y446415G6K112783 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:45:y:2009:i:3:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Aaro  Hazak 
Author-X-Name-First: Aaro  
Author-X-Name-Last: Hazak 
Title: Companies' Financial Decisions Under the Distributed Profit Taxation Regime of Estonia 
Abstract:
 This paper empirically analyzes companies' capital structure and dividend
 decisions under distributed profit taxation (DPT), Estonia's corporate
 taxation regime since 2000. The sample covers 26,000 observations of
 Estonian companies from 1995 to 2004. The results show that the DPT system
 has led companies to pay less in dividends and retain more profits.
 Simultaneously, the importance of external financing in companies' total
 capital has decreased. The undistributed profits appear to be partially
 retained as surplus cash, instead of being reinvested into long-term
 productive assets. DPT seems to support companies' liquidity and
 sustainability; however, the allocation of funds is potentially
 inefficient.
Journal: Emerging Markets Finance and Trade 
Pages: 4-12 
Issue: 4 
Volume: 45 
Year: 2009 
Month: 7 
Keywords: capital structure, corporate taxation, dividend policy, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=27051X8U54101843 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Allen, F., and R.
 Michaely. 2003. "Payout Policy." In >i>Handbook of the Economics of
 Finance>/i>, ed. G.M. Constantinides, M. Harris, and R.M. Stulz, pp.
 337-429. Burlington, MA: Elsevier.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>2</BIBL>        <BIBTEXT> Bank of Estonia. 2008. "Annual Indicators
 of Estonian Economy." Tallinn >a target="_blank"
 href='http://www.eestipank.info/dynamic/itp2/itp_report_2a.jsp?reference=5
 03&className=EPSTAT2&lang=en'>www.eestipank.info/dynamic/itp2/itp_report_2
 a.jsp?reference=503&className=EPSTAT2&lang=en>/a></BIBTEXT>	  </REF>   
   <REF>	<BIBL>3</BIBL>	      <BIBTEXT> Frankfurter, G.M., and B.
 Wood. 2002. "Dividend Policy Theories and Their Empirical Tests."
 >i>International Review of Financial Analysis>/i> 11, no. 2:
 111-138.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Funke, M. 2002. "Determining the Taxation and Investment Impacts
 of Estonia's 2000 Income Tax Reform." >i>Finnish Economic Papers>/i> 15,
 no. 2 (Autumn): 102-109.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>5</BIBL>        <BIBTEXT> Funke, M., and H. Strulik. 2003.
 "Taxation, Growth, and Welfare: Dynamic Effects of Estonia's 2000 Income
 Tax Act." Discussion Paper no. 10, Institute for Economies in Transition,
 Bank of Finland, Helsinki.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>6</BIBL>        <BIBTEXT> Graham, J.R. 2008. "Taxes and Corporate
 Finance." In >i>Handbook of Corporate Finance: Empirical Corporate
 Finance>/i>, vol. 2, ed. B.E. Eckbo, pp. 59-134. Burlington, MA:
 Elsevier/North-Holland.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT> Hazak, A. 2007. "Dividend Decision Under
 Distributed Profit Taxation: Investor's Perspective." >i>International
 Research Journal of Finance and Economics>/i> 9: 201-219.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Hazak, A. 2008.
 "Profit Versus Distributed Profit Based Taxation and Companies' Capital
 Structure." >i>International Journal of Entrepreneurship and Innovation
 Management>/i> 8, no. 5: 524-541.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>9</BIBL>        <BIBTEXT> Jensen, M. 1986. "Agency Cost of Free Cash
 Flow, Corporate Finance, and Takeovers." >i>American Economic Review>/i>
 76, no. 2: 376-385.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>10</BIBL>	<BIBTEXT> Lease, R.C.; K. John; A. Kalay; U.
 Loewenstein; and O.H. Sarig. 1999. >i>Dividend Policy: Its Impact on Firm
 Value>/i>. Boston: Harvard Business School Press.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>11</BIBL>        <BIBTEXT> Masulis, R.W. 1988. >i>The
 Debt/Equity Choice>/i>. Financial Management Association Survey and
 Synthesis Series, vol. 11. Cambridge, MA: Harper and Row,
 Ballinger.</BIBTEXT>	   </REF>      <REF>	    <BIBL>12</BIBL>	  
 <BIBTEXT> Miller, M., and F. Modigliani. 1961. "Dividend Policy, Growth,
 and the Valuation of Shares." >i>Journal of Business>/i> 34, no. 4:
 411-433.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Modigliani, F., and M.H. Miller. 1963. "Corporate Income Taxes
 and the Cost of Capital: A Correction." >i>American Economic Review>/i>
 53, no. 3: 433-443.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>14</BIBL>	<BIBTEXT> Myers, S.C. 2001. "Capital Structure."
 >i>Journal of Economic Perspectives>/i> 15, no. 2: 81-102.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Prasad, S.; C.J.
 Green; and V. Murinde. 2001. "Company Financing, Capital Structure, and
 Ownership: A Survey and Implications for Developing Economies." Economic
 Research Paper no. 01/3, Department of Economics, Loughborough University,
 Loughborough, UK.</BIBTEXT>	  </REF>      <REF>	   <BIBL>16</BIBL> 
       <BIBTEXT> Sander, P. 2005. "Laenukapitali maksueelis EestisÃ¢Â€Â”mÃƒÂ¼ÃƒÂ¼t
 vÃƒÂµi reaalsus?" [Tax Advantage of Debt in EstoniaÃ¢Â€Â”Myth or Reality?]. In
 >i>Proceedings of the 3rd Scientific and Educational Conference>/i>, pp.
 169-177. PÃƒÂ¤rnu: PÃƒÂ¤rnu College of the Tartu University.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT> Sepp, J., and R.
 Wrobel. 2002. "Die aktuelle Position Estlands im internationalen
 Steuerwettbewerb: Empirische Ergebnisse" [The Current Position of Estonia
 in International Tax Competition: Empirical Findings]. In >i>Proceedings
 of the 10th Scientific Conference on Economic Policy>/i>, pp. 281-289.
 Berlin-Tallinn: Berliner Wissenschaftsverlag and Mattimar.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Staehr, K. 2005.
 "Corporate Income Taxation in Estonia: Who Pays the Tax?" In
 >i>Proceedings of the 13th Scientific Conference on Economic Policy>/i>,
 pp. 93-101. Berlin-Tallinn: Berliner Wissenschaftsverlag and
 Mattimar.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:4:p:4-12




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 4 
Volume: 45 
Year: 2009 
Month: 7 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=2R841K6202X7643G 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:45:y:2009:i:4:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: Robert  Johnson 
Author-X-Name-First: Robert  
Author-X-Name-Last: Johnson 
Author-Name: Luc  Soenen 
Author-X-Name-First: Luc  
Author-X-Name-Last: Soenen 
Title: Commodity Prices and Stock Market Behavior in South American Countries in the Short Run 
Abstract:
 Using Geweke feedback measures, we present empirical evidence that largely
 supports the hypothesis that the stock markets of South American countries
 are highly affected by changes in commodity prices after controlling for
 changes in exchange rates, interest rates, and North American stock market
 changes. In total, six different Goldman Sachs commodity price indexes are
 tested against the unexplained variation in stock market returns for
 Argentina, Brazil, Chile, Colombia, Peru, and Venezuela, covering the
 period 1995-2007. The Argentinian, Brazilian, and Peruvian stock markets
 are significantly affected by changes in commodity prices the same day.
 Venezuela's stock market, however, does not react to changes in commodity
 prices, even including energy prices. Stock market returns for Chile show
 a contemporaneous relation with energy and metals prices, whereas
 Colombia's equity market is affected by price changes for agricultural and
 industrial metals. In all cases, we find a contemporaneous relation and no
 indication of a lead or lag relationship.
Journal: Emerging Markets Finance and Trade 
Pages: 69-82 
Issue: 4 
Volume: 45 
Year: 2009 
Month: 7 
Keywords: commodities, South America, stock markets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=43M5292332375046 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alper, E., and Z. Onis.
 2003. "Financial Globalization, the Democratic Deficit, and Recurrent
 Crises in Emerging Markets." >i>Emerging Markets Finance and Trade>/i> 39,
 no. 3: 5-26.</BIBTEXT>      </REF>	 <REF>	      <BIBL>2</BIBL>	   
 <BIBTEXT> Beim, D.O., and C.W. Calomiris. 2001. >i>Emerging Financial
 Markets>/i>. Boston: McGraw-Hill.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>3</BIBL>        <BIBTEXT> Bekaert, G., and C.R. Harvey. 2000.
 "Foreign Speculators and Emerging Equity Markets." >i>Journal of
 Finance>/i> 55, no. 2: 565-613.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>4</BIBL>        <BIBTEXT> Bracker, K.; D. Docking; and P. Koch.
 1999. "Economic Determinants of Evolution in International Stock Market
 Integration." >i>Journal of Empirical Finance>/i> 6, no. 1:
 1-27.</BIBTEXT>      </REF>	  <REF>        <BIBL>5</BIBL>	    
 <BIBTEXT> Carvalhal, A., and B. Vaz de Melo Mendes. 2008. "Evaluating the
 Forecast Accuracy of Emerging Market Stock Returns." >i>Emerging Markets
 Finance and Trade>/i> 44, no. 1: 21-40.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>6</BIBL>	    <BIBTEXT> Catao, L., and E. Falcetti. 2002.
 "Determinants of Argentina's External Trade." >i>Journal of Applied
 Economics>/i> 5, no. 1: 19-57.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>7</BIBL>        <BIBTEXT> Economist Intelligence Unit (EIU). 2006.
 >i>Country Profile 2006: Argentina, Peru>/i>. London.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Elton, E. 1999.
 "Expected Return, Realized Return, and Asset Pricing Tests." >i>Journal of
 Finance>/i> 54, no. 4 (August): 1199-1220.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Foester, S., and A. Karolyi.
 1998. "The Effects of Market Segmentation and Illiquidity on Asset Prices:
 Evidence from Foreign Stock Listings in the U.S." >i>Journal of
 Finance>/i> 54: 981-1013.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>10</BIBL>	<BIBTEXT> Geweke, J. 1982. "Measurement of Linear
 Dependence and Feedback Between Multiple Time Series." >i>Journal of the
 American Statistical Association>/i> 77, no. 378: 304-313.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Hargis, K. 2000.
 "International Cross-Listing and Stock Market Development in Emerging
 Economies." >i>International Review of Economics and Finance>/i> 9, no. 2:
 101-122.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Harvey, C.R. 1995. "Predictable Risk and Return in Emerging
 Markets." >i>Review of Financial Studies>/i> 8, no. 3 (Fall):
 773-816.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Hilmola, O.-P. 2007. "Stock Market Performance and Manufacturing
 Capability of the Fifth Long-Cycle Industries." >i>Futures>/i> 39, no. 4:
 393-407.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Jacquier, E., and A. Marcus. 2001. "Asset Allocation Models and
 Market Volatility." >i>Financial Analysts Journal>/i> 57, no. 2
 (MarchÃ¢Â€Â”April): 16-30.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>15</BIBL>	<BIBTEXT> Johnson, R., and L. Soenen. 2002. "Asian
 Economic Integration and Stock Market Comovement." >i>Journal of Financial
 Research>/i> 25, no. 1: 141-157.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>16</BIBL>	<BIBTEXT> Longin, F., and B. Solnik. 1995. "Is the
 Correlation in International Equity Returns Constant? 1960-1990."
 >i>Journal of International Money and Finance>/i> 14, no. 1:
 3-26.</BIBTEXT>      </REF>	  <REF>        <BIBL>17</BIBL>	     
 <BIBTEXT> Onder, Z., and C. Simga-Mugan. 2006. "How Do Political and
 Economic News Affect Emerging Markets?" >i>Emerging Markets Finance and
 Trade>/i> 42, no. 4: 50-77.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>18</BIBL>	<BIBTEXT> Osterholm, P., and J. Zettelmeyer. 2007.
 "The Effect of External Conditions on Growth in Latin America." Working
 Paper 07/176, International Monetary Fund, Washington, DC.</BIBTEXT>	  
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 and Y. Shin. 1998. "Impulse Response Analysis in Linear Multivariate
 Models." >i>Economic Letters>/i> 58: 17-29.</BIBTEXT>	    </REF>     
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 Portfolio's Country Exposure Management." >i>Emerging Markets Finance and
 Trade>/i> 43, no. 2: 5-18.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>21</BIBL>	<BIBTEXT> Rouwenhorst, G.K. 1999. "Local Return
 Factors and Turnover in Emerging Stock Markets." >i>Journal of Finance>/i>
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 <BIBL>22</BIBL>	<BIBTEXT> Santiso, J. 2007. "The Emergence of Latin
 American Multinationals." Deutsche Bank Research, March 7.</BIBTEXT>	  
 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:4:p:69-82




Template-Type: ReDIF-Article 1.0
Author-Name: Serpil  CanbaÃ…ÂŸ 
Author-X-Name-First: Serpil  
Author-X-Name-Last: CanbaÃ…ÂŸ 
Author-Name: Serkan YÃ„Â±lmaz KandÃ„Â±r 
Author-X-Name-First: Serkan YÃ„Â±lmaz 
Author-X-Name-Last: KandÃ„Â±r 
Title: Investor Sentiment and Stock Returns: Evidence from Turkey 
Abstract:
 This paper investigates the relation between investor sentiment and stock
 returns on the Istanbul Stock Exchange, employing vector autoregressive
 (VAR) analysis and Granger causality tests. The sample period extends from
 July 1997 to June 2005. In the VAR models, stock portfolio returns and
 investor sentiment proxies are used as endogenous variables. Two dummy
 variables accounting for natural and economic crises are used as exogenous
 variables. The analysis results suggest that, excepting shares of equity
 issues in aggregate issues, stock portfolio returns seem to affect all
 investor sentiment proxies, namely closed-end fund discount, mutual fund
 flows, odd-lot sales-to-purchases ratio, and repo holdings of mutual
 funds. Investor sentiment does not appear to forecast future stock
 returns; only the turnover ratio of the stock market seems to have
 forecasting potential.
Journal: Emerging Markets Finance and Trade 
Pages: 36-52 
Issue: 4 
Volume: 45 
Year: 2009 
Month: 7 
Keywords: behavioral finance, investor psychology and ISE, investor sentiment, noise, stock returns, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=BP037208T744348X 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 2002. "Stock Market Volatility, Excess Returns, and the Role of Investor
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 2277-2299.</BIBTEXT>	   </REF>      <REF>	    <BIBL>31</BIBL>	  
 <BIBTEXT> Lee, C.; A. Shleifer; and R.H. Thaler. 1991. "Investor Sentiment
 and the Closed-End Fund Puzzle." >i>Journal of Finance>/i> 46, no. 1:
 75-109.</BIBTEXT>	</REF>	    <REF>	 <BIBL>32</BIBL>       
 <BIBTEXT> Lemmon, M., and E. Portniaguina. 2006. "Consumer Confidence and
 Asset Prices: Some Empirical Evidence." >i>Review of Financial Studies>/i>
 19, no. 4: 1499-1529.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>33</BIBL>	<BIBTEXT> Leonard, D.C., and D.M. Shull. 1996.
 "Investor Sentiment and the Closed-End Fund Evidence: Impact of the
 January Effect." >i>Quarterly Review of Economics and Finance>/i> 36, no.
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 Sentiment Predict Returns?" >i>Journal of Financial and Quantitative
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 1978. "Estimating the Dimension of a Model." >i>Annals of Statistics>/i>
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	<BIBTEXT> Shleifer, A., and L.H. Summers. 1990. "The Noise Trader
 Approach to Finance." >i>Journal of Economic Perspectives>/i> 4, no. 2:
 19-33.</BIBTEXT>      </REF>	   <REF>	<BIBL>40</BIBL>       
 <BIBTEXT> Sirri, E.R., and P. Tufano. 1998. "Costly Search and Mutual Fund
 Flows." >i>Journal of Finance>/i> 53, no. 5: 1589-1622.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>41</BIBL>	 <BIBTEXT> Strong, N., and
 X.G. Xu. 1997. "Explaining the Cross-Section of UK Expected Stock
 Returns." >i>British Accounting Review>/i> 29, no. 1: 1-23.</BIBTEXT>	   
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 "Mental Accounting and Consumer Choice." >i>Marketing Science>/i> 4, no.
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 <BIBTEXT> White, H. 1980. "A Heteroskedasticity-Consistent Covariance
 Matrix Estimator and a Direct Test for Heteroskedasticity."
 >i>Econometrica>/i> 48, no. 4: 817-838.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:45:y:2009:i:4:p:36-52




Template-Type: ReDIF-Article 1.0
Author-Name: Charles Amo Yartey 
Author-X-Name-First: Charles Amo 
Author-X-Name-Last: Yartey 
Title: The Stock Market and the Financing of Corporate Growth in Africa: The Case of Ghana 
Abstract:
 This paper examines corporate financing patterns in Ghana, in particular,
 whether listed Ghanaian corporations make considerable use of the stock
 market to finance their growth. The paper also examines econometrically
 the effect of stock market development on the importance of debt relative
 to external equity in the balance sheet of Ghanaian firms. The results
 show that the average listed Ghanaian firm finances its growth mainly from
 short-term debt. The stock market, however, is the most important source
 of longterm external finance. Stock market development tends to shift the
 financial structure of Ghanaian firms toward more equity and less debt.
 Overall, the evidence suggests that the stock market is a surprisingly
 important source of finance for funding corporate growth.
Journal: Emerging Markets Finance and Trade 
Pages: 53-68 
Issue: 4 
Volume: 45 
Year: 2009 
Month: 7 
Keywords: corporate finance, corporate growth, Ghana, stock markets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K37471U513570G08 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Arellano, M., and S.
 Bond. 1991. "Some Tests of Specification for Panel Data: Monte Carlo
 Evidence and an Application to Employment Equations." >i>Review of
 Economic Studies>/i> 58, no. 2: 277-297.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>2</BIBL>	     <BIBTEXT> Corbett, J., and T. Jenkinson. 1996.
 "The Financing of Industry, 1970-89: An International Comparison."
 >i>Journal of Japanese and International Economies>/i> 10, no. 1:
 71-96.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> Demirguc-Kunt, A., and V. Maksimovic. 1996. "Stock Market
 Development and Financing Choices of Firms." >i>World Bank Economic
 Review>/i> 10, no. 2: 341-369.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>4</BIBL>        <BIBTEXT> Glen, J., and A. Singh. 2003. "Capital
 Structure, Rates of Return, and Financing Corporate Growth: Comparing
 Developed and Emerging Markets, 1994-2000." In >i>The Future of Domestic
 Capital Markets in Developing Countries>/i>, ed. M. Pomerleano, R.E.
 Litan, and V. Sundararajan, pp. 373-415. Washington, DC: Brookings
 Institution Press.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL> 
       <BIBTEXT> Hackethal, A., and R.H. Schmidt. 2000. "Financing
 Patterns: Measurement Concepts and Empirical Results." Working Paper
 Series: Accounting and Finance, University of Frankfurt.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Lallchand, J.
 2001. "Capital Markets Development in Sub-Saharan Africa: A Case Study of
 Mauritius." Ph.D. dissertation, Faculty of Economics, University of
 Cambridge.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> Mayer, C. 1988. "New Issues in Corporate Finance." >i>European
 Economic Review>/i> 32: 1167-1188.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>8</BIBL>        <BIBTEXT> Mayer, C. 1990. "Financial Systems,
 Corporate Finance, and Economic Development." In >i>Asymmetric
 Information, Corporate Finance, and Investment>/i>, ed. G. Hubbard, pp.
 307-332. Chicago: University of Chicago.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>9</BIBL>	     <BIBTEXT> Mutenheri, E., and C.J. Green. 2003.
 "Financial Reform and Financing Decisions of Listed Firms in Zimbabwe."
 >i>Journal of African Business>/i> 4, no. 2: 155-170.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Singh, A. 1995.
 "Corporate Financing Patterns in Industrializing Economies: A Comparative
 International Study." Technical Paper no. 2, International Finance
 Corporation, Washington, DC.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>11</BIBL>	<BIBTEXT> Singh, A., and J. Hamid. 1992. "Corporate
 Financial Structures in Developing Countries." Technical Paper no. 1,
 International Finance Corporation, Washington, DC.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>12</BIBL>	<BIBTEXT> Singh, A.; A. Singh; and
 B.A. Weisse. 2002. "Corporate Governance, Competition, the New
 International Financial Architecture, and Large Corporations in Emerging
 Markets." Working Paper no. 250, ESRC Center for Business Research,
 Cambridge.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT> Titman, S., and R. Wessels. 1988. "The Determinants of Capital
 Structure Choice." >i>Journal of Finance>/i> 43, no. 1: 1-19.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>14</BIBL>	   <BIBTEXT> Whittington,
 G.; V. Saporta; and A. Singh. 1997. "The Effect of Hyperinflation in
 Accounting Ratios: Financing Corporate Growth in Industrializing
 Countries." Technical Paper no. 3, International Finance Corporation,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>15</BIBL>   
     <BIBTEXT> Yartey, C.A. 2005. "Stock Market Development, Corporate
 Finance, and Economic Growth in Africa: The Case of Ghana." Ph.D.
 dissertation, Faculty of Economics, Cambridge.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Yartey, C.A. 2006. "The
 Stock Market and the Financing of Corporate Growth in Africa: The Case of
 Ghana." Working Paper 06/201, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:4:p:53-68




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua  Krausz 
Author-X-Name-First: Joshua  
Author-X-Name-Last: Krausz 
Author-Name: Sa-Young  Lee 
Author-X-Name-First: Sa-Young  
Author-X-Name-Last: Lee 
Author-Name: Kiseok  Nam 
Author-X-Name-First: Kiseok  
Author-X-Name-Last: Nam 
Title: Profitability of Nonlinear Dynamics Under Technical Trading Rules: Evidence from Pacific Basin Stock Markets 
Abstract:
 This paper explores a possible link between an asymmetric dynamic process
 of stock returns and profitable technical trading rules. Using Pacific
 Basin stock market indexes, we show that the dynamic process of daily
 index returns is better characterized by nonlinearity arising from an
 asymmetric reverting property, and that the asymmetric reverting property
 of stock returns is exploitable in generating profitable buy and sell
 signals for technical trading rules. We show that the positive (negative)
 returns from buy (sell) signals are a consequence of trading rules that
 exploit the asymmetric dynamics of stock returns that revolve around
 positive (negative) unconditional mean returns under prior positive
 (negative) return patterns. Our results corroborate the arguments for the
 usefulness of technical analysis.
Journal: Emerging Markets Finance and Trade 
Pages: 13-35 
Issue: 4 
Volume: 45 
Year: 2009 
Month: 7 
Keywords: asymmetric reverting property, nonlinear autoregressive models, Pacific Basin stock markets, technical analysis, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T664740278G41674 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Brock, W.; J.
 Lakonishok; and B. LeBaron. 1992. "Simple Technical Trading Rules and the
 Stochastic Properties of Stock Returns." >i>Journal of Finance>/i> 47, no.
 5: 1731-1764.</BIBTEXT>      </REF>	  <REF>        <BIBL>2</BIBL>	   
  <BIBTEXT> Chelley-Steeley, P. 2005. "Modeling Equity Market Integration
 Using Smooth Transition Analysis: A Study of Eastern European Stock
 Markets." >i>Journal of International Money and Finance>/i> 24, no. 5:
 818-831.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Enders, W., and C.W. Granger. 1998. "Unit-Root Tests and
 Asymmetric Adjustment with an Example Using the Term Structure of Interest
 Rates." >i>Journal of Business and Economic Statistics>/i> 16, no. 3:
 304-311.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> FernÃƒÂ¡ndez-RodrÃƒÂ­guez, F.; C. GonzÃƒÂ¡lez-Martel; and S.
 Sosvilla-Rivero. 2000. "On the Profitability of Technical Trading Rules
 Based on Artificial Neural Networks." >i>Economics Letters>/i> 69, no. 1:
 89-94.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> GenÃƒÂ§ay, R. 1998a. "Optimization of Technical Trading Strategies
 and the Profitability in Security Markets." >i>Economics Letters>/i> 59,
 no. 2: 249-254.</BIBTEXT>	</REF>	    <REF>	 <BIBL>6</BIBL>    
    <BIBTEXT> GenÃƒÂ§ay, R. 1998b. "The Profitability of Security Returns
 with Simple Technical Trading Rules." >i>Journal of Empirical Finance>/i>
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       <BIBTEXT> GenÃƒÂ§ay, R. 1999. "Linear, Nonlinear, and Essential
 Foreign Exchange Rate Prediction with Simple Technical Trading Rules."
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  </REF>      <REF>	   <BIBL>8</BIBL>	 <BIBTEXT> GenÃƒÂ§ay, R., and
 T. Stengos. 1997. "Technical Trading Rules and the Size of the Risk
 Premium in Security Returns." >i>Studies in Nonlinear Dynamics and
 Econometrics>/i> 2, no. 2: 23-34.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>9</BIBL>        <BIBTEXT> GenÃƒÂ§ay, R. 1998. "Moving Average Rules,
 Volume, and Predictability of Security Returns with Feed-Forward
 Networks." >i>Journal of Forecasting>/i> 17, no. 5-6: 401-414.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>10</BIBL>	    <BIBTEXT> Hinich, M.J.,
 and D.M. Patterson. 2005. "Detecting Epochs of Transient Dependence in
 White Noise." In >i>Money, Measurement, and Computation>/i>, ed. M.T.
 Belongia and J.M. Binner, pp. 61-75. London: Palgrave-Macmillan.</BIBTEXT>
      </REF>	  <REF>        <BIBL>11</BIBL>	      <BIBTEXT> Kanas, A.
 2005. "Nonlinearity in the Stock Price-Dividend Relation." >i>Journal of
 International Money and Finance>/i> 24, no. 4: 583-606.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Kho, B. 1996.
 "Time-Varying Risk Premia, Volatility, and Technical Trading Rule Profits:
 Evidence from Foreign Currency Futures Markets." >i>Journal of Financial
 Economics>/i> 41, no. 2: 249-290.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>13</BIBL>	<BIBTEXT> Koutmos, G. 1998. "Asymmetries in the
 Conditional Mean and the Conditional Variance: Evidence from Nine Stock
 Markets." >i>Journal of Economics and Business>/i> 50, no. 3:
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 <BIBTEXT> LeBaron, B. 1992. "Some Relations Between Volatility and Serial
 Correlations in Stock Market Returns." >i>Journal of Business>/i> 65, no.
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 <BIBTEXT> LeBaron, B. 1999. "Technical Trading Rule Profitability and
 Foreign Exchange Intervention." >i>Journal of International Economics>/i>
 49, no. 1: 125-143.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>16</BIBL>	<BIBTEXT> Maasoumi, E., and J. Racine. 2002.
 "Entropy and Predictability of Stock Market Returns." >i>Journal of
 Econometrics>/i> 107, no. 1-2: 291-312.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>17</BIBL>	     <BIBTEXT> Nam, K.; C.S. Pyun; and A. Arize.
 2002. "Asymmetric Mean-Reversion and Contrarian Profits: ANST-GARCH
 Approach." >i>Journal of Empirical Finance>/i> 9, no. 5:
 563-588.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT> Nam, K.; C.S. Pyun; and S. Kim. 2003. "Is Asymmetric
 Mean-Reverting Pattern in Stock Returns Systematic? Evidence from
 Pacific-Basin Markets in Short Horizon." >i>Journal of International
 Financial Markets, Institutions, and Money>/i> 13, no. 5:
 481-502.</BIBTEXT>	 </REF>      <REF>	  <BIBL>19</BIBL>	
 <BIBTEXT> Nam, K.; K. Washer; and Q.C. Chu. 2005. "Asymmetric Return
 Dynamics and Technical Trading Strategies." >i>Journal of Banking and
 Finance>/i> 29, no. 2: 391-418.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>20</BIBL>	<BIBTEXT> Olson, D. 2004. "Have Trading Rule
 Profits in the Currency Markets Declined Over Time?" >i>Journal of Banking
 and Finance>/i> 28, no. 1: 85-105.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>21</BIBL>	<BIBTEXT> Sarantis, N. 2001. "Nonlinearities,
 Cyclical Behavior, and Predictability in Stock Markets: International
 Evidence." >i>International Journal of Forecasting>/i> 17, no. 3:
 459-482.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Self, J., and I. Mathur. 2006. "Asymmetric Stationarity in
 National Stock Market Indices: An MTAR Analysis." >i>Journal of
 Business>/i> 79, no. 6: 3153-3174.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>23</BIBL>	<BIBTEXT> Sentana, E., and S. Wadhwani. 1992.
 "Feedback Traders and Stock Return Autocorrelations: Evidence from a
 Century of Daily Data." >i>Economic Journal>/i> 102, no. 411:
 415-425.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:4:p:13-35




Template-Type: ReDIF-Article 1.0
Author-Name: Chuang-Yuang  Lin 
Author-X-Name-First: Chuang-Yuang  
Author-X-Name-Last: Lin 
Author-Name: Chih-Wei  Liu 
Author-X-Name-First: Chih-Wei  
Author-X-Name-Last: Liu 
Author-Name: Ming Way Li 
Author-X-Name-First: Ming Way 
Author-X-Name-Last: Li 
Title: Trading Behaviors of Insiders: A Speculative Trading Model and Empirical Evidence 
Abstract:
 Insider trading has been a widely discussed topic since the 1980s. Apart
 from discussing whether insider trading should exist, previous studies
 gradually began to study the factors affecting insider trades. This study
 establishes a market equilibrium model to identify factors that may affect
 the expected earnings and expected losses in insider trades. It also
 offers new evidence that factors, such as social factors, cost factors,
 moral factors, and bad news factors, may affect evaluation of the expected
 earnings and expected losses in insider trades. Our results have important
 implications for future studies developing a more pluralistic view of
 insider trading behavior.
Journal: Emerging Markets Finance and Trade 
Pages: 62-71 
Issue: 5 
Volume: 45 
Year: 2009 
Month: 9 
Keywords: emerging financial market, emerging market, equilibrium models, insider, insider trading, moral factor, Taiwan stock market, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A34M5X4JG6784850 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Atiase, R., and L. S.
 M. Bamber. 1994. "Trading Volume Reactions to Annual Accounting Earning
 Announcements: The Incremental Role of Predisclosure Information
 Asymmetry." >i>Journal of Accounting and Economics>/i> 17, no. 3:
 309-330.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Bris, A. 2005. "Do Insider Trading Laws Work?" >i>European
 Financial Management>/i> 11, no. 3: 267-312.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Bushman, R. M.; J. D.
 Piotroski; and A. J. Smith. 2005. "Insider Trading Restrictions and
 Analysts' Incentives to Follow Firms." >i>Journal of Finance>/i> 60, no. 1
 (February): 35-66.</BIBTEXT>	   </REF>      <REF>	    <BIBL>4</BIBL> 
       <BIBTEXT> Cornell, B., and E. R. Sirri. 1992. "The Reaction of
 Investors and Stock Prices to Insider Trading." >i>Journal of Finance>/i>
 47, no. 3: 1031-1059.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>5</BIBL>        <BIBTEXT> Elliot, J.; D. Morse; and G. Richardson.
 1984. "The Association Between Insider Trading and Information
 Announcements." >i>Rand Journal of Economics>/i> 15, no. 4 (Winter):
 521-536.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Fishman, M., and K. Hagerty. 1992. "Insider Trading and the
 Efficiency of Stock Prices." >i>Rand Journal of Economics>/i> 23, no. 1:
 106-122.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Hayo, B., and A. Kutan. 2005. "IMF-Related News and Emerging
 Financial Markets." >i>Journal of International Money and Finance>/i> 24,
 no. 7: 1126-1142.</BIBTEXT>	  </REF>      <REF>	   <BIBL>8</BIBL>  
      <BIBTEXT> Holderness, C., and D. P. Sheehan. 1985. "Raiders or
 Saviors? The Evidence on Six Controversial Investors." >i>Journal of
 Financial Economics>/i> 14, no. 4: 555-579.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Kross, W.; G. Ha; and F.
 Heflin. 1994. "A Test of Risk Clientele Effects Via an Examination of
 Trading Volume Response to Earnings Announcements." >i>Journal of
 Accounting and Economics>/i> 18, no. 1 (July): 67-87.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Kyle, A. 1985.
 "Continuous Auctions and Insider Trading." >i>Econometrica>/i> 53, no. 6:
 1315-1336.</BIBTEXT>	   </REF>      <REF>	    <BIBL>11</BIBL>	  
 <BIBTEXT> Luo, S. 2001. "The Impact of Public Information on Insider
 Trading." >i>Economics Letters>/i> 70, no. 1: 59-68.</BIBTEXT>      </REF>
      <REF>	   <BIBL>12</BIBL>	  <BIBTEXT> Lustgarten, S., and V.
 Mande. 1995. "Financial Analysts' Earnings Forecasts and Insider Trading."
 >i>Journal of Accounting and Public Policy>/i> 14, no. 3:
 233-261.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Manne, H. G. 1970. "Insider Trading and the Law Professors."
 >i>Vanderbilt Law Review>/i> 23, no. 2: 547-590.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>14</BIBL>	      <BIBTEXT> Maug, E. 1998. "Large
 Shareholders as Monitors: Is There a Trade-Off Between Liquidity and
 Control?" >i>Journal of Finance>/i> 53, no.1: 65-98.</BIBTEXT>      </REF>
      <REF>	   <BIBL>15</BIBL>	  <BIBTEXT> Mello, A. S., and R.
 Repullo. 2004. "Shareholder Activism is Non-monotonic in Market
 Liquidity." >i>Finance Research Letters>/i> 1, no. 1: 2-10.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Meulbroek, L.
 1992. "An Empirical Analysis of Illegal Insider Trading and the Stock
 Market." >i>Journal of Finance>/i> 47, no. 5: 1661-1699.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT> Ronen, J. 2000.
 "Insider Trading Regulation in an Efficient Market: A Contradiction."
 >i>Critical Perspectives on Accounting>/i> 11, no. 1: 97-103.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>18</BIBL>	   <BIBTEXT> Roulstone, D.
 2003. "The Relation Between Insider-Trading Restrictions and Executive
 Compensation." >i>Journal of Accounting Researching>/i> 41, no. 3:
 525-551.</BIBTEXT>	 </REF>      <REF>	  <BIBL>19</BIBL>	
 <BIBTEXT> Shin, J. 1996. "The Optimal Regulation of Insider Trading."
 >i>Journal of Financial Intermediation>/i> 5, no. 4: 49-73.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT> Yung, C. 2005.
 "Insider Trading with Private Information and Moral Hazard." >i>Finance
 Research Letters>/i> 2, no. 2: 51-57.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>21</BIBL>	   <BIBTEXT> Zhang, W.; S. F. Cahan; and A. C.
 Allen. 2005. "Insider Trading and Pay-Performance Sensitivity: An
 Empirical Analysis." >i>Journal of Business Finance and Accounting>/i> 32,
 no. 9 (November): 1887-1919.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:5:p:62-71




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa  Ismihan 
Author-X-Name-First: Mustafa  
Author-X-Name-Last: Ismihan 
Author-Name: Kivilcim  Metin-Ozcan 
Author-X-Name-First: Kivilcim  
Author-X-Name-Last: Metin-Ozcan 
Title: Productivity and Growth in an Unstable Emerging Market Economy: The Case of Turkey, 1960-2004 
Abstract:
 This paper explores sources of growth in the Turkish economy by performing
 growth accounting exercises over the 1960-2004 period and relevant
 subperiods. It also analyzes the role of a number of important
 policy-related factors, such as infrastructure investment, macroeconomic
 instability, and imports, on total factor productivity (TFP) by performing
 cointegration and impulse response analyses. The results suggest that both
 TFP and capital accumulation were crucial sources of growth during the
 sample period. Nevertheless, TFP growth displayed enormous variation from
 1960 to 2004. The descriptive and empirical evidence suggests that TFP is
 positively affected by imports and public infrastructure investment and
 negatively affected by macroeconomic instability.
Journal: Emerging Markets Finance and Trade 
Pages: 4-18 
Issue: 5 
Volume: 45 
Year: 2009 
Month: 9 
Keywords: capital accumulation, cointegration, economic growth, growth accounting, impulse response analysis, macroeconomic instability, total factor productivity, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=F407647844225141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bosworth, B., and S. M.
 Collins. 2003. >i>The Empirics of Growth: An Update.>/i> Washington, DC:
 Brookings Institution Press.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>2</BIBL>        <BIBTEXT> Burnside, C., and D. Dollar. 2000. "Aid,
 Policies, and Growth." >i>American Economic Review>/i> 90, no. 4:
 847-868.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Celasun, M., and D. Rodrik. 1989. "Debt, Adjustment, and Growth:
 Turkey." In >i>Developing Country Debt and Economic Performance: Country
 Studies>/i>, ed. J. Sachs and S. M. Collins, pp. 615-808. Chicago:
 University of Chicago Press.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>4</BIBL>        <BIBTEXT> Easterly, W., and S. Rebelo. 1993. "Fiscal
 Policy and Economic Growth: An Empirical Investigation." >i>Journal of
 Monetary Economics>/i> 32, no. 3: 417-458.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Ertugrul, A., and F. Selcuk.
 2002. "Turkish Economy: 1980-2001." In >i>Inflation and Disinflation in
 Turkey>/i>, ed. A. Kibritcioglu, L. Rittenberg, and F. Selcuk, pp. 13-40.
 Aldershot, UK: Ashgate.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>6</BIBL>        <BIBTEXT> Fischer, S. 1993a. "Does Macroeconomic
 Policy Matter? Evidence from Developing Countries." Occasional Paper no.
 27, International Center for Economic Growth, Budapest.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Fischer, S.
 1993b. "The Role of Macroeconomic Factors in Growth." >i>Journal of
 Monetary Economics>/i> 32, no. 3: 485-512.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Grossman, G. M., and E.
 Helpman. 1991. >i>Innovation and Growth in the Global Economy.>/i>
 Cambridge, MA: MIT Press.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>9</BIBL>        <BIBTEXT> Hendry, F. D., and K. Juselius. 2001.
 "Explaining Cointegration Analysis: Part II." >i>Energy Journal>/i> 22,
 no. 1: 75-120.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>    
    <BIBTEXT> Ismihan, M. 2003. "The Role of Politics and Instability on
 Public Spending Dynamics and Macroeconomic Performance: Theory and
 Evidence from Turkey." Ph.D. dissertation, Middle East Technical
 University, Ankara.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>11</BIBL>	<BIBTEXT> Ismihan, M., and K. Metin-Ozcan. 2008.
 "Productivity and Growth in an Unstable Emerging Market Economy: The Case
 of Turkey, 1960-2004." Department of Economics Discussion Paper no. 08-01,
 Bilkent University, Ankara.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>12</BIBL>	<BIBTEXT> Ismihan, M.; K. Metin-Ozcan; and A.
 Tansel. 2005. "The Role of Macroeconomic Instability in Public and Private
 Capital Accumulation and Growth: The Case of Turkey 1963-1999." >i>Applied
 Economics>/i> 37, no. 2: 239-251.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>13</BIBL>	<BIBTEXT> Metin-Ozcan, K.; E. Voyvoda; and E.
 Yeldan. 2001. "Dynamics of Macroeconomic Adjustment in a Globalized
 Developing Economy: Growth, Accumulation, and Distribution, Turkey
 1969-1998." >i>Canadian Journal of Development Studies>/i> 22, no. 1:
 219-253.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Osterwald-Lenum, M. 1992. "A Note with Quantiles of the
 Asymptotic Distribution of the Maximum Likelihood Cointegration Rank Test
 Statistics." >i>Oxford Bulletin of Economics and Statistics>/i> 54, no. 3:
 461-471.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Pesaran, M. H., and Y. Shin. 1998. "Impulse Response Analysis in
 Linear Multivariate Models." >i>Economics Letters>/i> 58, no. 1:
 17-29.</BIBTEXT>      </REF>	   <REF>	<BIBL>16</BIBL>       
 <BIBTEXT> Sturm, J.; G. H. Kuper; and J. De Haan. 1998. "Modeling
 Government Investment and Economic Growth on a Macro Level: A Review." In
 >i>Market Behavior and Macroeconomic Modeling>/i>, ed. S. Brakman, H. van
 Ees, and S. K. Kuipers, pp. 359-406. London: Macmillan.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT> Togan, S. 2003.
 "Productivity of Labor." In >i>Competitiveness in the Middle Eastern and
 North African Countries>/i>, ed. S. Togan and H. Kheir-El-Din, pp.
 385-420. Economic Research Forum Research Report Series. Cairo:
 ERF.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:5:p:4-18




Template-Type: ReDIF-Article 1.0
Author-Name: Metka  Stare 
Author-X-Name-First: Metka  
Author-X-Name-Last: Stare 
Author-Name: Luis  Rubalcaba 
Author-X-Name-First: Luis  
Author-X-Name-Last: Rubalcaba 
Title: International Outsourcing of Services: What Role for Central and East European Countries? 
Abstract:
 Central and East European countries (CEECs) that have recently acceded to
 the European Union are increasingly emerging on the map of global
 companies as possible locations for outsourcing services. Starting from
 the assumption of labor cost differentials in favor of the CEECs, the
 paper explores the CEECs' capacity and potential to supply outsourcable
 services to the EU-15. We analyze trends in trade flows and foreign direct
 investment in computer services and other business services. Although the
 available statistical data are deficient and excessively aggregated, the
 scattered evidence suggests that the CEECs are important suppliers of
 outsourcable services to the EU-15. Apart from labor cost differentials,
 other factors, such as the availability of skilled workforce as well as
 geographical and cultural proximity, might also contribute to EU-15
 companies' preference for the CEECs when deciding on the location for
 international outsourcing of services. Increased specialization within the
 enlarged European Union could bring greater benefits from the
 international outsourcing of services, provided the European Union
 improves the functioning of labor markets and the competitiveness of the
 service sector, including the efficient implementation of the internal
 market for services.
Journal: Emerging Markets Finance and Trade 
Pages: 31-46 
Issue: 5 
Volume: 45 
Year: 2009 
Month: 9 
Keywords: business services, Central and East European countries, computer and information services, foreign direct investment, international outsourcing/offshoring, trade, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H6754X91TP043579 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Amiti, M., and S. Wei.
 2004. "Fear of Service Outsourcing: Is it Justified?" Working Paper no.
 10808, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> AT Kearney. 2003.
 >i>Where to Locate? Selecting a Country for Offshore Business
 Processing.>/i> New York: AT Kearney.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>3</BIBL>	  <BIBTEXT> AT Kearney. 2007. >i>Global Services
 Location IndexÃ¢Â€Â”Offshoring for Long-Term Advantage.>/i> New York: AT
 Kearney.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Bhagwati, J.; A. Panagaryia; and T. N. Srinivasan. 2004. "The
 Muddles over Outsourcing." >i>Journal of Economic Perspectives>/i> 18, no.
 4: 93-114.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL>	 
 <BIBTEXT> Department of Trade and Industry (DTI). 2007. "Business Services
 and Globalisation." Economics Paper no. 19, London, January (available at
 >a target="_blank"
 href='http://www.dti.gov.uk/files/file37006.pdf'>www.dti.gov.uk/files/file
 37006.pdf>/a></BIBTEXT>      </REF>	  <REF>        <BIBL>6</BIBL>	   
  <BIBTEXT> Deutsche Bank Research. 2006. "Offshoring to New
 ShoresÃ¢Â€Â”Nearshoring to Central and Eastern Europe." Frankfurt am Main
 (available at >a target="_blank"
 href='http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD000000000020
 1757.pdf'>www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD000000000020175
 7.pdf>/a></BIBTEXT>	  </REF>      <REF>	   <BIBL>7</BIBL>	
 <BIBTEXT> European Commission. 2002. Report on the State of the Internal
 Market for Services." COM (441), Brussels (available at >a target="_blank"
 href='http://europa.eu.int/eur-lex/en/com/rpt/2002/com2002_0441en01.pdf'>h
 ttp://europa.eu.int/eur-lex/en/com/rpt/2002/com2002_0441en01.pdf>/a></BIBT
 EXT>	   </REF>      <REF>	    <BIBL>8</BIBL>	  <BIBTEXT>
 European Commission. 2006. "Enlargement, Two Years After: An Economic
 Evaluation." Occasional Papers no. 24, Brussels (available at >a
 target="_blank"
 href='http://ec.europa.eu/economy_finance/publications/occasional_papers/2
 006/occasionalpapers24_en.htm'>http://ec.europa.eu/economy_finance/publica
 tions/occasional_papers/2006/occasionalpapers24_en.htm>/a></BIBTEXT>	  
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> European
 Commission and Copenhagen Economics. 2005. "Economic Assessment of the
 Barriers to the Internal Market for Services." Brussels (available at >a
 target="_blank"
 href='http://europa.eu.int/comm/internal_market/services/services-dir/stud
 ies_en.htm'>http://europa.eu.int/comm/internal_market/services/services-di
 r/studies_en.htm>/a></BIBTEXT>      </REF>	 <REF>	     
 <BIBL>10</BIBL>	<BIBTEXT> Eurostat. 2007. "Exports of Business
 Service." Statistics in Focus no. 74, Luxembourg (available at >a
 target="_blank"
 href='http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-07-074/EN/KS
 -SF-07-074-EN.PDF'>http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF
 -07-074/EN/KS-SF-07-074-EN.PDF>/a></BIBTEXT>	   </REF>      <REF>	   
 <BIBL>11</BIBL>	<BIBTEXT> Gelauff, G., and A. Lejour. 2006. "The
 New Lisbon Strategy: An Estimation of the Economic Impact of Reaching Five
 Lisbon Targets." Industrial Policy and Economic Reforms Papers no. 1,
 Enterprise and Industry Directorate-General, European Commission,
 Brussels.</BIBTEXT>	  </REF>      <REF>	   <BIBL>12</BIBL>	 
 <BIBTEXT> Ghibutiu, A., and I. Dumitriu. 2008. "The Effects of Offshoring
 on Trade in Services: Evidence from Romania." Working Paper no. 1,
 European Trade Study Group (available at >a target="_blank"
 href='http://www.etsg.org/etsg_web/etsg_site/papers_detail.php?id=91'>www.
 etsg.org/etsg_web/etsg_site/papers_detail.php?id=91>/a></BIBTEXT>     
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Grossman, G. M.,
 and E. Rossi-Hansberg. 2006. "Trading Tasks: A Simple Theory of
 Offshoring." Working Paper no. 12721, National Bureau of Economic
 Research, Cambridge, MA (available at >a target="_blank"
 href='http://www.nber.org/papers/w12721.pdf'>www.nber.org/papers/w12721.pd
 f>/a></BIBTEXT>      </REF>	  <REF>        <BIBL>14</BIBL>	     
 <BIBTEXT> Huws, U.; S. Dahlmann; and J. Flecker. 2004. "Outsourcing of ICT
 and Related Services in the EU." Status Report, European Foundation for
 the Improvement of Living and Working Conditions, Dublin (available at >a
 target="_blank"
 href='http://www.fr.eurofound.eu.int/publications/files/EF04137EN.pdf'>www
 .fr.eurofound.eu.int/publications/files/EF04137EN.pdf>/a></BIBTEXT>	 
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Kirkegaard, J.
 F. 2005. "Outsourcing and Offshoring: Pushing the European Model Over the
 Hill, Rather than Off the Cliff!" Working Paper 05-1, Institute for
 International Economics, Washington, DC.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>16</BIBL>	      <BIBTEXT> Kox, H.; A. Lejour; and R.
 Montizaan. 2005. >i>The Free Movements of Services within the EU.>/i> The
 Hague: CPB Netherlands Bureau for Economic Policy Analysis.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT> McKinsey Global
 Institute. 2005. >i>The Emerging Global Labor Market.>/i> San Francisco:
 McKinsey and Company.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>18</BIBL>	<BIBTEXT> McKinsey Global Institute. 2006. "The
 Overlooked Potential for Outsourcing in Eastern Europe." >i>McKinsey
 Quarterly>/i> (December) (available at >a target="_blank"
 href='http://www.mckinseyquarterly.com/The_overlooked_potential_for_outsou
 rcing_in_Eastern_Europe_1884'>www.mckinseyquarterly.com/The_overlooked_pot
 ential_for_outsourcing_in_Eastern_Europe_1884>/a></BIBTEXT>	  </REF>   
   <REF>	<BIBL>19</BIBL>        <BIBTEXT> Rubalcaba, L. B. 2004.
 "The Globalization of Business Services and the Competitiveness of
 European ICT Sector." Paper presented at the XIV Conference RESER
 (European Association for Research on Services), Toulouse, September
 23-24.</BIBTEXT>      </REF>	   <REF>	<BIBL>20</BIBL>       
 <BIBTEXT> Rubalcaba, L. B. 2007. >i>Services in European Economy:
 Challenges and Policy Implications.>/i> Cheltenham, UK: Edward Elgar.
 Schaaf, J. 2004. "Offshoring: Globalization Wave Reaches Services Sector."
 Deutche Bank Research no. 45, Frankfurt am Main (available at >a
 target="_blank"
 href='http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD000000000017
 9790.pdf'>www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD000000000017979
 0.pdf>/a></BIBTEXT>	  </REF>      <REF>	   <BIBL>21</BIBL>	 
 <BIBTEXT> Spencer, J. B. 2005. "International Outsourcing and Incomplete
 Contracts." Working Paper no. 11418, National Bureau of Economic Research,
 Cambridge, MA (available at >a target="_blank"
 href='http://www.nber.org/papers/w11418.pdf'>www.nber.org/papers/w11418.pd
 f>/a></BIBTEXT>      </REF>	  <REF>        <BIBL>22</BIBL>	     
 <BIBTEXT> Sporer, Ã…Â½. 2004. "Knowledge-Based Economy and Social Capital in
 Central and East European Countries." >i>East European Economy>/i> 42, no.
 6: 39-77.</BIBTEXT>	  </REF>      <REF>	   <BIBL>23</BIBL>	 
 <BIBTEXT> Stare, M. 2003. "The Scope for E-Commerce in Central and East
 European Countries' Services Trade." >i>Service Industries Journal>/i> 23,
 no. 1: 27-42.</BIBTEXT>      </REF>	  <REF>        <BIBL>24</BIBL>	   
   <BIBTEXT> Stare, M. 2006. "Outsourcing storitev v okviru razÃ…Â¡irjene
 EU-moÃ…Â¾nosti in priloÃ…Â¾nosti Slovenije" [Outsourcing of Services Within
 the Enlarged EUÃ¢Â€Â”Possibilities and Opportunities for Slovenia].
 >i>Teorija in praksa>/i> 43, nos. 1-2: 201-220.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT> Stare, M. 2007. "Service
 Development in Transition Economies: Achievements and Missing Links." In
 >i>The Handbook of Service Industries>/i>, ed. J. Bryson and P. Daniels,
 pp. 168-185. Cheltenham, UK: Edward Elgar.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>26</BIBL>	     <BIBTEXT> United Nations Commission on
 Trade and Development (UNCTAD). 2004. "World Investment Report: The Shift
 Towards Services." Geneva.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>27</BIBL>	<BIBTEXT> Van Welsum, D., and G. Vickery. 2005.
 "Potential Offshoring of ICT Intensive Occupations." In >i>Enhancing the
 Performance of the Service Sector>/i>, pp. 179-204. Paris: OECD.</BIBTEXT>
      </REF>	  <REF>        <BIBL>28</BIBL>	      <BIBTEXT> Vision on
 Relocation. 2005. "The Nature, Extent, and Effects of Relocating Business
 Activities." Research Series, Ministry of Economic Affairs, The
 Hague.</BIBTEXT>      </REF>	   <REF>	<BIBL>29</BIBL>       
 <BIBTEXT> World Trade Organization (WTO). International Trade Statistics
 Database.</BIBTEXT>	  </REF>      <REF>	   <BIBL>30</BIBL>	 
 <BIBTEXT> Zimny, Z., and P. Mallampally. 2002. "Internationalization of
 Services: Are the Modes Changing?" In >i>Internationalization Technology
 and Service>/i>, ed. M. Miozzo and I. Miles, pp. 87-116. Cheltenham, UK:
 Edward Elgar.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:45:y:2009:i:5:p:31-46




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 5 
Volume: 45 
Year: 2009 
Month: 9 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=NVL244XK84G00WX2 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:45:y:2009:i:5:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: Anlin  Chen 
Author-X-Name-First: Anlin  
Author-X-Name-Last: Chen 
Author-Name: Yu Ting Urania Huang 
Author-X-Name-First: Yu Ting Urania 
Author-X-Name-Last: Huang 
Author-Name: Lanfeng  Kao 
Author-X-Name-First: Lanfeng  
Author-X-Name-Last: Kao 
Author-Name: Cheng Shou Lu 
Author-X-Name-First: Cheng Shou 
Author-X-Name-Last: Lu 
Title: Is Underwriter Retention of IPO Shares a Good Substitute for Underwriting Spreads? 
Abstract:
 In Taiwan, underwriters are required to retain at least 10 percent but no
 more than 25 percent of underwritten initial public offering (IPO) shares
 and sell the remainder to the public. We find that IPO underpricing causes
 underwriters to retain more shares to earn capital gains on retained
 shares and that underwriter retention is a signal of IPO underpricing. If
 underwriter retention is cancelled, underwriters need to be compensated
 through lottery draw processing fees or underwriting spreads. We show that
 issuers should compensate underwriters through underwriting spreads
 directly, rather than indirectly through underwriter retention or lottery
 draw processing fees.
Journal: Emerging Markets Finance and Trade 
Pages: 19-30 
Issue: 5 
Volume: 45 
Year: 2009 
Month: 9 
Keywords: fixed-priced offerings, initial public offerings, monopoly power hypothesis, underwriter retention, underwriting spreads, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=QNW6317287073375 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baron, D. P., and B.
 Holmstrom. 1980. "The Investment Banking Contract for New Issues under
 Asymmetric Information: Delegation and the Incentive Problem," >i>Journal
 of Finance>/i> 35, no. 5: 1115-1138.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>2</BIBL>	 <BIBTEXT> Booth, J., and R. Smith. 1986. "Capital
 Raising, Underwriting, and the Certification Hypothesis." >i>Journal of
 Financial Economics>/i> 15, nos. 1-2: 261-281.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Carter, R., and S. Manaster.
 1990. "Initial Public Offerings and Underwriter Reputation." >i>Journal of
 Finance>/i> 45, no. 4: 1045-1067.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>4</BIBL>        <BIBTEXT> Chen, H. C.; R. Fok; and Y. J. Wang. 2006.
 "Why Do Underwriters Charge Low Underwriting Fees for Initial Public
 Offerings in Taiwan?" >i>Journal of Business Finance and Accounting>/i>
 33, nos. 7-8: 979-1005.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>5</BIBL>        <BIBTEXT> Chen, A., and L. Kao. 2006. "The Benefit
 of Excluding Institutional Investors from Fixed-Priced IPOs: Evidence from
 Taiwan IPOs." >i>Emerging Markets Finance and Trade>/i> 42, no. 6
 (November-December): 5-24.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>6</BIBL>        <BIBTEXT> Chen, H. C., and J. R. Ritter. 2000. "The
 Seven Percent Solution." >i>Journal of Finance>/i> 55, no. 3:
 1105-1131.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> Corwin, S. A., and P. Schultz. 2005. "The Role of IPO
 Underwriting Syndicates: Pricing, Information Production, and Underwriter
 Competition." >i>Journal of Finance>/i> 60, no. 1: 443-486.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Dunbar, C. C.
 2000. "Factors Affecting Investment Bank Initial Public Offering Market
 Share." >i>Journal of Financial Economics>/i> 55, no. 1: 3-41.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>9</BIBL>	   <BIBTEXT> Ellis, K.; R.
 Michaely; and M. O'Hara. 2000. "When the Underwriter Is the Market Maker:
 An Examination of Trading in the IPO Aftermarket." >i>Journal of
 Finance>/i> 55, no. 3: 1039-1074.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>10</BIBL>	<BIBTEXT> Hanley, K. W. 1993. "The Underpricing of
 Initial Public Offerings and the Partial Adjustment Phenomenon."
 >i>Journal of Financial Economics>/i> 34, no. 2: 231-250.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Krishnan, C. N.
 V.; A. Singh; and A. Zebedee. 2006. "An Examination of Large Sell Orders
 in Cold IPO Aftermarkets." >i>Journal of Financial Markets>/i> 9, no. 2:
 119-143.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:5:p:19-30




Template-Type: ReDIF-Article 1.0
Author-Name: Sule  Akkoyunlu 
Author-X-Name-First: Sule  
Author-X-Name-Last: Akkoyunlu 
Author-Name: Boriss  Siliverstovs 
Author-X-Name-First: Boriss  
Author-X-Name-Last: Siliverstovs 
Title: Migration and Trade: Complements or Substitutes? Evidence from Turkish Migration to Germany 
Abstract:
 This study investigates whether migration and trade can be regarded as
 complements or substitutes using the data on Turkish migration to Germany
 for the period 1963-2004. In contrast to previous studies that
 investigated this question using gravity equations, we conduct our
 analysis using the cointegration framework. In line with the previous
 literature, our results support the view that migration and trade are
 complements.
Journal: Emerging Markets Finance and Trade 
Pages: 47-61 
Issue: 5 
Volume: 45 
Year: 2009 
Month: 9 
Keywords: cointegration, economic development, migration, trade, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R91051Q5H8311UP4 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> de Haas, H. 2006.
 "Turning the Tide? Why Ã¢Â€Â˜Development Instead of MigrationÃ¢Â€Â™ Policies Are
 Bound to Fail." Working paper 2006-2, International Migration Institute,
 Oxford University, Oxford.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>2</BIBL>        <BIBTEXT> Doornik, J. A., and H. Hansen. 1994. "A
 Practical Test for Univariate and Multivariate Normality." Discussion
 Paper, Nuffield College, Oxford.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>3</BIBL>        <BIBTEXT> Doornik, J. A., and D. F. Hendry. 2001a.
 >i>GiveWin: An Interface to Empirical Modelling.>/i> London: Timberlake
 Consultants Press.</BIBTEXT>	   </REF>      <REF>	    <BIBL>4</BIBL> 
       <BIBTEXT> Doornik, J. A., and D. F. Hendry. 2001b. >i>Modelling
 Dynamic Systems Using PcGive>/i>, vol. 2. London: Timberlake Consultants
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> Dunlevy, J., and W. Hutchinson. 1999. "The Impact of Immigration
 on American Import Trade in the Late Nineteenth and Twentieth Centuries."
 >i>Journal of Economic History>/i> 59, no. 4: 1043-1062.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Engle, R. F.
 1982. "Autoregressive Conditional Heteroskedasticity with Estimates of the
 Variance of United Kingdom Inflation." >i>Econometrica>/i> 50, no. 4:
 987-1007.</BIBTEXT>	  </REF>      <REF>	   <BIBL>7</BIBL>	
 <BIBTEXT> Girma, S., and Z. Yu. 2002. "The Link between Immigration and
 Trade: Evidence from the UK." >i>Weltwirtschafttliches Archiv>/i> 138, no.
 1: 115-130.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>	  
 <BIBTEXT> Godfrey, L. G. 1978. "Testing for Higher Order Serial
 Correlation in Regression Equations when the Regressors Include Lagged
 Dependent Variables." >i>Econometrica>/i> 46, no. 6: 1303-1313.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Gould, D.
 1994. "Immigration Links to the Home Country: Empirical Implications for
 U. S. Bilateral Trade Flow." >i>Review of Economics and Statistics>/i> 76,
 no. 2: 302-316.</BIBTEXT>	</REF>	    <REF>	 <BIBL>10</BIBL>   
     <BIBTEXT> Granger, C. W. J. 1966. "The Typical Spectral Shape of an
 Economic Variable." >i>Econometrica>/i> 34, no. 1: 150-161.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Harris, J., and
 M. Todaro. 1970. "Migration, Unemployment, and Development: A Two-Sector
 Analysis." >i>American Economic Review>/i> 60, no. 1: 126-142.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>12</BIBL>	    <BIBTEXT> Hatton, T. J.
 1995. "A Model of UK Emigration, 1870-1913." >i>Review of Economics and
 Statistics>/i> 77, no. 3: 407-415.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>13</BIBL>	<BIBTEXT> Head, K., and J. Ries. 1998. "Immigration
 and Trade Creation: Econometric Evidence from Canada." >i>Canadian Journal
 of Economics>/i> 31, no. 1: 47-62.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT> Hendry, D. F., and K. Juselius. 2000.
 "Explaining Cointegration Analysis: Part 1." >i>Energy Journal>/i> 21, no.
 1: 1-42.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Hendry, D. F., and K. Juselius. 2001. "Explaining Cointegration
 Analysis: Part 2." >i>Energy Journal>/i> 22, no. 1: 75-120.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Hendry, D. F.,
 and G. E. Mizon. 1993. "Evaluating Econometric Models by Encompassing the
 VAR." In >i>Models, Methods, and Applications of Econometrics>/i>, ed. P.
 C. Phillips, pp. 272-300. Oxford: Basil Blackwell.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>17</BIBL>	<BIBTEXT> Hicks, J. 1932. >i>The
 Theory of Wages.>/i> London: Macmillan.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>18</BIBL>	     <BIBTEXT> Johansen, S. 1992. "Testing Weak
 Exogeneity and the Order of Cointegration in the UK Money Demand."
 >i>Journal of Policy Modelling>/i> 14, no. 3: 313-334.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Johansen, S.,
 and K. Juselius. 1992. "Testing Structural Hypotheses in a Multivariate
 Cointegration Analysis of the PPP and the UIP for the UK." >i>Journal of
 Econometrics>/i> 53, nos. 1-3: 211-244.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>20</BIBL>	     <BIBTEXT> MacDonald, R., and C. Kearney. 1987.
 "On the Specification of Granger-Causality Tests Using the Cointegration
 Methodology." >i>Economics Letters>/i> 25, no. 2: 149-153.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Markusen, J. R.
 1983. "Factor Movements and Commodity Trade as Complements." >i>Journal of
 International Economics>/i> 14, nos. 3-4: 341-356.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>22</BIBL>	<BIBTEXT> Martin, P. L., and J. E.
 Taylor. 1996. "The Anatomy of a Migration Hump." In >i>Development
 Strategy, Employment and Migration: Insights from Models>/i>, ed. J. E.
 Taylor, pp. 43-62. Paris: OECD.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>23</BIBL>	<BIBTEXT> Mundell, R. 1957. "International Trade
 and Factor Mobility." >i>American Economic Review>/i> 47, no. 3:
 321-335.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT> Murat, M., and B. Pistoresi. 2006. "Links Between Migration and
 Trade: Evidence from Italy." Paper presented at the Economics of
 Diversity, Migration and Culture, Bologna, Italy, September
 22-23.</BIBTEXT>      </REF>	   <REF>	<BIBL>25</BIBL>       
 <BIBTEXT> Newbold, P., and C. W. J. Granger. 1974. "Spurious Regressions
 in Econometrics." >i>Journal of Econometrics>/i> 2, no. 2:
 111-120.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT> Panagariya, A. 1992. "Factor Mobility, Trade and Welfare: A
 North-South Analysis with Economies of Scale." >i>Journal of Development
 Economics>/i> 39, no. 2: 229-245.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>27</BIBL>	<BIBTEXT> Pedersen, P. J.; M. Pytlikova; and N.
 Smith. 2006. "Migration into OECD Countries 1990-2000." In >i>Immigration
 and the Transformation of Europe>/i>, ed. C. A. Parsons and T. M.
 Smeeding, pp. 43-84. New York: Cambridge University Press.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>28</BIBL>	 <BIBTEXT> Ravenstein, E.
 1889. "The Laws of Migration." >i>Journal of the Statistic Society>/i> 59,
 no. 2: 214-301.</BIBTEXT>	</REF>	    <REF>	 <BIBL>29</BIBL>   
     <BIBTEXT> Razin, A., and E. Sadka. 1997. >i>International Migration
 and International Trade>/i>, vol. 1B. Amsterdam: Elsevier Science,
 North-Holland.</BIBTEXT>      </REF>	   <REF>	<BIBL>30</BIBL>    
    <BIBTEXT> Schiff, M. 1994. "How Trade, Aid, and Remittances Affect
 International Migration." Working Paper no. 1376, World Bank Policy
 Research, Washington, DC.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>31</BIBL>	<BIBTEXT> Schiff, M. 1995. "Trade Policy and
 International Migration in the Short and the Long Run." >i>Revue
 d'Economie du Developpement>/i> 1: 3-25.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>32</BIBL>	      <BIBTEXT> Schiff, M. 2000. "South-North
 Migration and Trade: A Survey." >i>Revue d'Economie du Developpement>/i>
 3: 3-54.</BIBTEXT>	 </REF>      <REF>	  <BIBL>33</BIBL>	
 <BIBTEXT> Sjaastad, L. 1962. "The Costs and Returns of Human Migration."
 >i>Journal of Political Economy>/i> 70, no. 5: 80-93.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>34</BIBL>	 <BIBTEXT> Todaro, M. P.
 1969. "A Model of Labor Migration and Urban Unemployment in Less Developed
 Countries." >i>American Economic Review>/i> 59, no. 1: 139-148.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>35</BIBL>	     <BIBTEXT> Venables, A.
 1999. "Trade Liberalization and Factor Mobility: An Overview." In
 >i>Migration: The Controversies and the Evidence>/i>, ed. R. Faini, J. De
 Melo, and K. F. Zimmermann, pp. 23-47. Cambridge: Cambridge University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>36</BIBL>       
 <BIBTEXT> White, H. 1980. "A Heteroskedastic-Consistent Covariance Matrix
 Estimator and a Direct Test for Heteroskedasticity." >i>Econometrica>/i>
 48, no. 4: 817-838.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>37</BIBL>	<BIBTEXT> Yule, G. U. 1926. "Why Do We Sometimes
 Get Nonsense-Correlations Between Time Series? A Study in Sampling and the
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 Statistical Society>/i> 89, no. 1: 1-64.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:5:p:47-61




Template-Type: ReDIF-Article 1.0
Author-Name: Ho-Chyuan  Chen 
Author-X-Name-First: Ho-Chyuan  
Author-X-Name-Last: Chen 
Author-Name: Juping  Wu 
Author-X-Name-First: Juping  
Author-X-Name-Last: Wu 
Title: Volatility, Depth, and Order Composition: Evidence from a Pure Limit Order Futures Market 
Abstract:
 This paper investigates market behaviors (such as volatility, depth, and
 volume) and order-flow decomposition in a pure limit order futures market,
 the Taiwan Futures Exchange. The results are different from those in
 equity markets due to relatively high adverse selection costs in futures
 markets. We show that a volatility (depth) increase is followed by a depth
 (volatility) decrease; a market order increase (decrease) subsequently
 induces higher (lower) volatility; and a limit order increase (decrease)
 results in more (less) market orders and limit orders. When the upside
 (downside) volatility rises, buyers decrease (increase) subsequent limit
 bid orders, and sellers increase (decrease) limit ask orders.
Journal: Emerging Markets Finance and Trade 
Pages: 72-85 
Issue: 5 
Volume: 45 
Year: 2009 
Month: 9 
Keywords: adverse selection, ask order, bid order, depth, futures market, informed traders, limit order, market order, market volatility, order composition, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T2738WU186G45244 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Admati, A., and P.
 Pfleiderer. 1988. "A Theory of Intraday Patterns: Volume and Price
 Volatility." >i>Review of Financial Studies>/i> 1, no. 1: 3-40.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Ahn, H.-J.;
 K. H. Bae; and K. Chan. 2001. "Limit Orders, Depth, and Volatility:
 Evidence from the Stock Exchange of Hong Kong." >i>Journal of Finance>/i>
 56, no. 2 (April): 767-788.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>3</BIBL>        <BIBTEXT> Andersen, T. G., and T. Bollerslev. 1998.
 "Answering the Skeptics: Yes, Standard Volatility Models Do Provide
 Accurate Forecasts." >i>International Economic Review>/i> 39, no. 4
 (November): 885-905.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>4</BIBL>        <BIBTEXT> Andersen, T. G.; T. Bollerslev; F. X.
 Diebold; and H. Ebens. 2001. "The Distribution of Realized Stock Return
 Volatility." >i>Journal of Financial Economics>/i> 61, no. 1 (July):
 43-76.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> Antoniou, A.; G. Koutmos; and A. Pericli. 2005. "Index Futures
 and Positive Feedback Trading: Evidence from Major Stock Exchanges."
 >i>Journal of Empirical Finance>/i> 12, no. 2 (March): 219-238.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Bae, K. H.;
 H. Jang; and K. S. Park. 2003. "Traders' Choice Between Limit and Market
 Orders: Evidence from NYSE Stocks." >i>Journal of Financial Markets>/i> 6,
 no. 4 (August): 517-538.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>7</BIBL>        <BIBTEXT> Bessembinder, H., and P. J. Seguin. 1993.
 "Price Volatility, Trading Volume, and Market Depth: Evidence from Futures
 Markets." >i>Journal of Financial and Quantitative Analysis>/i> 28, no. 1
 (March): 21-39.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>    
    <BIBTEXT> Biais, B.; P. Hillion; and C. Spatt. 1995. "An Empirical
 Analysis of the Limit Order Book and the Order Flow in the Paris Bourse."
 >i>Journal of Finance>/i> 50, no. 5 (December): 1655-1689.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Bloomfield, R.;
 M. O'Hara; and G. Saar. 2005. "The Ã¢Â€Â˜Make or TakeÃ¢Â€Â™ Decision in an
 Electronic Market: Evidence on the Evolution of Liquidity." >i>Journal of
 Financial Economics>/i> 75, no. 1: 165-199.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Bollerslev, T., and J. H.
 Wright. 2001. "High-Frequency Data, Frequency Domain Inference, and
 Volatility Forecasting." >i>Review of Economics and Statistics>/i> 83, no.
 4 (November): 596-602.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>11</BIBL>	<BIBTEXT> Bortoli, L.; A. Frino; E. Jarnecic; and
 D. Johnstone. 2006. "Limit Order Book Transparency, Execution Risk, and
 Market Liquidity: Evidence from the Sydney Futures Exchange." >i>Journal
 of Futures Markets>/i> 26, no. 12: 1147-1167.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT> Foucault, T. 1999. "Order
 Flow Composition and Trading Costs in a Dynamic Limit Order Market."
 >i>Journal of Financial Markets>/i> 2, no. 2 (May): 99-134.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Fung, H.-G., and
 G. A. Patterson. 1999. "The Dynamic Relationship of Volatility, Volume,
 and Market Depth in Currency Futures Markets." >i>Journal of International
 Financial Markets, Institutions and Money>/i> 9, no. 1 (January):
 33-59.</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>       
 <BIBTEXT> Fung, H.-G., and G. A. Patterson. 2001. "Volatility, Global
 Information, and Market Conditions: A Study in Futures Markets."
 >i>Journal of Futures Markets>/i> 21, no. 2 (February): 173-196.</BIBTEXT>
      </REF>	  <REF>        <BIBL>15</BIBL>	      <BIBTEXT> Glosten, L.
 R. 1994. "Is The Electronic Open Limit Order Book Inevitable?" >i>Journal
 of Finance>/i> 49, no. 4 (September): 1127-1161.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>16</BIBL>	      <BIBTEXT> Glosten, L. R., and L. E.
 Harris. 1988. "Estimating the Components of the Bid/Ask Spread."
 >i>Journal of Financial Economics>/i> 21, no. 1 (May): 123-142.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Glosten, L.
 R., and P. R. Milgrom. 1985. "Bid, Ask and Transaction Prices in a
 Specialist Market with Heterogeneously Informed Traders." >i>Journal of
 Financial Economics>/i> 14, no. 1 (March): 71-100.</BIBTEXT>	   </REF>  
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 Parlour; and U. Rajan. 2005. "Equilibrium in a Dynamic Limit Order
 Market." >i>Journal of Finance>/i> 60, no. 5 (October):
 2149-2192.</BIBTEXT>	   </REF>      <REF>	    <BIBL>19</BIBL>	  
 <BIBTEXT> Handa, P., and R. A. Schwartz. 1996. "Limit Order Trading."
 >i>Journal of Finance>/i> 51, no. 5 (December): 1835-1861.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT> Huang, Y. C.
 2004. "The Components of Bid-Ask Spread and Their Determinants: TAIFEX
 Versus SGX-DT." >i>Journal of Futures Markets>/i> 24, no. 9 (September):
 835-860.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Jones, C. M.; G. Kaul; and M. L. Lipson. 1994. "Transactions,
 Volume, and Volatility." >i>Review of Financial Studies>/i> 7, no. 4
 (Winter): 631-651.</BIBTEXT>	   </REF>      <REF>	    <BIBL>22</BIBL>
	<BIBTEXT> Kawaller, I.; P. Koch; and T. Koch. 1987. "The Temporal
 Price Relationship Between S&P Futures and S&P Index." >i>Journal of
 Finance>/i> 42, no. 5 (December): 1309-1329.</BIBTEXT>      </REF>	
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 Quality in Open-Outcry Futures Markets." >i>Journal of Futures Markets>/i>
 25, no. 11 (November): 1067-1092.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>24</BIBL>	<BIBTEXT> Lee, C. M. C.; B. Mucklow; and M. J.
 Ready. 1993. "Spread, Depths, and the Impact of Earnings Information: An
 Intraday Analysis." >i>Review of Financial Studies>/i> 6, no. 2:
 345-374.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
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 85, no. 3: 857-887.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>26</BIBL>	<BIBTEXT> Low, C. 2004. "The Fear and Exuberance
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 Business>/i> 77, no. 3 (July): 527-546.</BIBTEXT>	</REF>	    <REF>  
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 Bayesian Model of Intraday Specialist Pricing." >i>Journal of Financial
 Economics>/i> 30, no. 1 (November): 99-134.</BIBTEXT>	    </REF>     
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 Markets>/i> 7, no. 1 (January): 53-74.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>29</BIBL>	    <BIBTEXT> Sandas, P. 2001. "Adverse Selection
 and Competitive Market Making: Empirical Evidence from a Limit Order
 Market." >i>Review of Financial Studies>/i> 14, no. 3 (Fall):
 705-734.</BIBTEXT>	 </REF>      <REF>	  <BIBL>30</BIBL>	
 <BIBTEXT> Stoll, H. R., and R. E. Whaley. 1990. "The Dynamics of Stock
 Index and Stock Index Futures Returns." >i>Journal of Financial and
 Quantitative Analysis>/i> 25, no. 4 (December): 441-468.</BIBTEXT>	
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 M. Lashgari. 1993. "Price Dynamics and Error Correction in Stock Index and
 Stock Index Futures Markets: A Cointegration Approach." >i>Journal of
 Futures Market>/i> 13, no. 7 (October): 711-742.</BIBTEXT>	 </REF>    
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 78, no. 2 (March): 597-619.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:5:p:72-85




Template-Type: ReDIF-Article 1.0
Author-Name: Jonchi  Shyu 
Author-X-Name-First: Jonchi  
Author-X-Name-Last: Shyu 
Author-Name: Yen-Luan  Chen 
Author-X-Name-First: Yen-Luan  
Author-X-Name-Last: Chen 
Title: Diversification, Performance, and the Corporate Life Cycle 
Abstract:
 This paper investigates the relation between the extent of diversification
 in firms and their performance at different life cycle stages. To
 illustrate the joint endogeneity of diversification and performance, we
 treat both the extent of diversification and firm performance as
 endogenous variables in a simultaneous equation system. Empirical results
 reveal that corporate diversification erodes firm value. Overall, firms in
 their growing stages experience a significant diversification discount;
 however, mature firms do not show such findings. Although unrelated
 diversification leads to trading at a discount in all growing and mature
 firms, conversely, related diversification exhibits an evident premium in
 mature firms.
Journal: Emerging Markets Finance and Trade 
Pages: 57-68 
Issue: 6 
Volume: 45 
Year: 2009 
Month: 11 
Keywords: corporate life cycle, joint endogeneity, related/unrelated diversification, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=47832P40X01T37GJ 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R.K., and
 A.A. Samwick. 2003. "Why Do Managers Diversify Their Firms? Agency
 Reconsidered." >i>Journal of Finance>/i> 58, no. 1: 71-118.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Amihud, Y., and
 B. Lev. 1981. "Risk Reduction as a Managerial Motive for Conglomerate
 Mergers." >i>Bell Journal of Economics>/i> 12, no. 2: 605-617.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>3</BIBL>	   <BIBTEXT> Anderson,
 R.C.; T.W. Bates; J.M. Bizjak; and M.L. Lemmon. 2000. "Corporate
 Governance and Firm Diversification." >i>Financial Management>/i> 29, no.
 1: 5-23.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Anthony, J.H., and K. Ramesh. 1992. "Association Between
 Accounting Performance Measures and Stock Prices." >i>Journal of
 Accounting and Economics>/i> 15, nos. 2-3: 203-227.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Berger, P.G., and E.
 Ofek. 1995. "Diversification's Effect on Firm Value." >i>Journal of
 Financial Economics>/i> 37, no. 1: 39-66.</BIBTEXT>	  </REF>      <REF>
	<BIBL>6</BIBL>	      <BIBTEXT> Campa, J.M., and S. Kedia. 2002.
 "Explaining the Diversification Discount." >i>Journal of Finance>/i> 57,
 no. 4: 1731-1762.</BIBTEXT>	  </REF>      <REF>	   <BIBL>7</BIBL>  
      <BIBTEXT> Chakrabarti, A.; K. Singh; and I. Mahmood. 2007.
 "Diversification and Performance: Evidence from East Asian Firms."
 >i>Strategic Management Journal>/i> 28, no. 2: 101-120.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Chatterjee, S.,
 and B. Wernerfelt. 1991. "The Link Between Resources and Type of
 Diversification: Theory and Evidence." >i>Strategic Management Journal>/i>
 12, no. 1: 33-48.</BIBTEXT>	  </REF>      <REF>	   <BIBL>9</BIBL>  
      <BIBTEXT> Claessens, S.; S. Djankov; and L.H.P. Lang. 2000. "The
 Separation of Ownership and Control in East Asian Corporations."
 >i>Journal of Financial Economics>/i> 58, nos. 1-2: 81-112.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> DeAngelo, H.; L.
 DeAngelo; and R.M. Stulz. 2006. "Dividend Policy and the
 Earned/Contributed Capital Mix: A Text of the Life-Cycle Theory."
 >i>Journal of Financial Economics>/i> 81, no. 2: 227-254.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Filatotchev, I.;
 Y.C. Lien; and J. Piesse. 2005. "Corporate Governance and Performance in
 Publicly Listed, Family-Controlled Firms: Evidence from Taiwan."
 >i>Asia-Pacific Journal of Management>/i> 22, no. 3: 257-283.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>12</BIBL>	   <BIBTEXT> Hildebrand,
 D.K.; J.D. Laing; and H. Rosenthal. 1977. >i>Prediction Analysis of Cross
 Classification.>/i> New York: Wiley.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>13</BIBL>	  <BIBTEXT> Himmelberg, C.P.; R.G. Hubbard; and D.
 Palia. 1999. "Understanding the Determinants of Managerial Ownership and
 the Link Between Ownership and Performance." >i>Journal of Financial
 Economics>/i> 53, no. 3: 353-384.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>14</BIBL>	<BIBTEXT> Holderness, C.G.; R.S. Kroszner; and D.P.
 Sheehan. 1999. "Were the Good Old Days That Good? Changes in Managerial
 Stock Ownership since the Great Depression." >i>Journal of Finance>/i> 54,
 no. 2: 435-470.</BIBTEXT>	</REF>	    <REF>	 <BIBL>15</BIBL>   
     <BIBTEXT> Hyland, D.C., and J.D. Diltz. 2002. "Why Firms Diversify: An
 Empirical Examination." >i>Financial Management>/i> 31, no. 1:
 51-81.</BIBTEXT>      </REF>	   <REF>	<BIBL>16</BIBL>       
 <BIBTEXT> Jacquemin, A.P., and C.H. Berry. 1979. "Entropy Measure of
 Diversification and Corporate Growth." >i>Journal of Industrial
 Economics>/i> 27, no. 4: 359-369.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>17</BIBL>	<BIBTEXT> Jensen, M. 1986. "Agency Costs of Free
 Cash Flow, Corporate Finance, and Takeovers." >i>American Economic
 Review>/i> 76, no. 2: 323-330.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>18</BIBL>	<BIBTEXT> Jensen, M.C., and K.J. Murphy. 1990.
 "Performance Pay and Top-Management Incentives." >i>Journal of Political
 Economy>/i> 98, no. 2: 225-264.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>19</BIBL>	<BIBTEXT> Kazanjian, R.K., and R. Drazin. 1989. "An
 Empirical Test of a Stage of Growth Progression Model." >i>Management
 Science>/i> 35 no. 12: 1489-1503.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>20</BIBL>	<BIBTEXT> Lamont, O.A., and C. Polk. 2002. "Does
 Diversification Destroy Value? Evidence from Industry Shocks." >i>Journal
 of Financial Economics>/i> 63, no. 1: 51-77.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT> Lang, L.H.P., and R.M.
 Stulz. 1994. "Tobin's >i>Q>/i>, Corporate Diversification, and Firm
 Performance." >i>Journal of Political Economy>/i> 102, no. 6:
 1248-1280.</BIBTEXT>	   </REF>      <REF>	    <BIBL>22</BIBL>	  
 <BIBTEXT> Lewellen, W. 1971. "A Pure Financial Rationale for the
 Conglomerate Merger." >i>Journal of Finance>/i> 26, no. 2:
 521-538.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT> Lunsford, D.A., and R.W. LaForge. 1992. "Product Diversification
 and Firm Development: An Empirical Examination of Contingency
 Relationships." >i>Journal of Marketing Management>/i> 2, no. 1:
 13-26.</BIBTEXT>      </REF>	   <REF>	<BIBL>24</BIBL>       
 <BIBTEXT> Martin, J.D., and A. Sayrak. 2003. "Corporate Diversification
 and Shareholder Value: A Survey of Recent Literature." >i>Journal of
 Corporate Finance>/i> 9, no. 1: 37-51.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>25</BIBL>	    <BIBTEXT> May, D.O. 1995. "Do Managerial
 Motives Influence Firm Risk Reduction Strategies?" >i>Journal of
 Finance>/i> 50, no. 4: 1291-1308.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>26</BIBL>	<BIBTEXT> Miller, D., and P.H. Friesen. 1984. "A
 Longitudinal Study of the Corporate Life Cycle." >i>Management Science>/i>
 30, no. 10: 1161-1183.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>27</BIBL>	<BIBTEXT> Park, C. 2002. "The Effects of Prior
 Performance on the Choice Between Related and Unrelated Acquisitions:
 Implications for the Performance Consequences of Diversification
 Strategy." >i>Journal of Management Studies>/i> 39, no. 7:
 1003-1019.</BIBTEXT>	   </REF>      <REF>	    <BIBL>28</BIBL>	  
 <BIBTEXT> Pashley, M.M., and G.C. Philippatos. 1990. "Voluntary
 Divestitures and Corporate Life Cycle: Some Empirical Evidence."
 >i>Applied Economics>/i> 22, no. 9: 1181-1196.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>29</BIBL>	     <BIBTEXT> Stowe, J.D., and X. Xing.
 2006. "Can Growth Opportunities Explain the Diversification Discount?"
 >i>Journal of Corporate Finance>/i> 12, no. 4: 783-796.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>30</BIBL>	 <BIBTEXT> Villalonga, B.
 2004. "Diversification Discount or Premium? New Evidence from Business
 Information Tracking Series." >i>Journal of Finance>/i> 59, no. 2:
 479-506.</BIBTEXT>	 </REF>      <REF>	  <BIBL>31</BIBL>	
 <BIBTEXT> Williamson, O.E. 1983. "Organization Form, Residual Claimants,
 and Corporate Control." >i>Journal of Law and Economics>/i> 26, no. 2:
 351-366.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:6:p:57-68




Template-Type: ReDIF-Article 1.0
Author-Name: MaruÃ…Â¡ka  Vizek 
Author-X-Name-First: MaruÃ…Â¡ka  
Author-X-Name-Last: Vizek 
Author-Name: Tanja  Broz 
Author-X-Name-First: Tanja  
Author-X-Name-Last: Broz 
Title: Modeling Inflation in Croatia 
Abstract:
 This paper constructs a quarterly inflation model for Croatia, using the
 general-to-specific approach to model inflation dynamics. A two-step
 procedure is followed. First, we conduct a long-run sectoral analysis of
 inflation sources, yielding long-run determinants of inflation: markup,
 excess money, nominal effective exchange rate, and the output gap. Second,
 we estimate an equilibrium error correction model of inflation, deploying,
 among other variables of interest, the long-run solutions derived in the
 first step. The derived model of inflation suggests that inflation inertia
 and Croatian trading partners' inflation are most important for explaining
 the short-run behavior of inflation. Apart from these two variables,
 markup, excess money, output gap, nominal exchange rate, and broad money
 also contribute to inflation changes in the short run.
Journal: Emerging Markets Finance and Trade 
Pages: 87-98 
Issue: 6 
Volume: 45 
Year: 2009 
Month: 11 
Keywords: cointegration, Croatia, general-to-specific, inflation modeling, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=CT4N84Q5U3867N70 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Billmeier, A., and L.
 Bonato. 2002. "Exchange Rate Pass-Through and Monetary Policy in Croatia."
 Working Paper no. 02/109, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>2</BIBL>	  
 <BIBTEXT> Botric, V., and B. Cota. 2006. "Sources of Inflation in
 Transition Economy: The Case of Croatia." >i>Ekonomski pregled>/i> 57, no.
 12: 835-855.</BIBTEXT>      </REF>	 <REF>	      <BIBL>3</BIBL>	   
 <BIBTEXT> de Brouwer, G., and N.R. Ericsson. 1998. "Modeling Inflation in
 Australia." >i>Journal of Business and Economic Statistics>/i> 16, no. 4:
 433-449.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Golinelli, R., and R. Orsi. 2002. "Modeling Inflation in EU
 Accession Countries: The Case of the Czech Republic, Hungary, and Poland."
 Ezoneplus Working Paper no. 9, Berlin.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>5</BIBL>	   <BIBTEXT> Hendry, D. 2000. "Does Money Determine
 UK Inflation over the Long Run?" In >i>Macroeconomics and the Real
 World>/i>, ed. R. Backhouse and A. Salanti, pp. 85-114. Oxford: Oxford
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>6</BIBL>  
      <BIBTEXT> Juselius, K. 1992. "Domestic and Foreign Effects on Prices
 in an Open Economy: The Case of Denmark." >i>Journal of Policy
 Modeling>/i> 14, no. 4: 401-428.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>7</BIBL>        <BIBTEXT> Kraft, E. 2003. "Monetary Policy Under
 Dollarization: The Case of Croatia." >i>Comparative Economic Studies>/i>
 45, no. 3: 256-277.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>
	<BIBTEXT> Payne, J.E. 2002. "Inflationary Dynamics of a Transition
 Economy: The Croatian Experience." >i>Journal of Policy Modeling>/i> 24,
 no. 3: 219-230.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT> Pufnik, A., and D. Kunovac. 2006. "KratkoroÃ„Âno Prognoziranje
 Inflacije u Hrvatskoj KoriÃ…Â¡tenjem Sezonskih ARIMA Procesa" [Short-Run
 Inflation Forecasting in Croatia Using Seasonal ARIMA Processes].
 >i>IstraÃ…Â¾ivanja>/i> I-18, Croatian National Bank, Zagreb.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Reinhart, C.,
 and K. Rogoff. 2002. "The Modern History of Exchange Rate Arrangements."
 Working Paper no. 8963, National Bureau of Economic Research, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>11</BIBL>	   
 <BIBTEXT> Sekine, T. 2001. "Modeling and Forecasting Inflation in Japan."
 Working Paper 01/82, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>12</BIBL>	   
 <BIBTEXT> Vrbanc, I. 2006. "Estimate of Potential Gross Domestic Product
 Using Production Function Method." Paper presented at Twelfth Dubrovnik
 Economic Conference, organized by Croatian National Bank, June.</BIBTEXT> 
     </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:6:p:87-98




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 6 
Volume: 45 
Year: 2009 
Month: 11 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H3PT4382047V1WN5 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:45:y:2009:i:6:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: Eralp  Bektas 
Author-X-Name-First: Eralp  
Author-X-Name-Last: Bektas 
Author-Name: Turhan  Kaymak 
Author-X-Name-First: Turhan  
Author-X-Name-Last: Kaymak 
Title: Governance Mechanisms and Ownership in an Emerging Market: The Case of Turkish Banks 
Abstract:
 This study investigates the relations of board structure, ownership
 concentration, and ownership type with the performance of banks operating
 in Turkey from an agency theory and resource-dependency perspective. We
 use financial ratios and established measures of board characteristics and
 ownership structure. Our results indicate that board size and duality do
 not significantly influence the returns on assets of Turkish banks. On the
 other hand, the tenure of board members is negatively related to
 performance. Our analysis of board composition reveals a curvilinear
 relationship with banks' performance, implying that boards composed of a
 majority of either insiders or outsiders enjoy high performance. Also,
 ownership concentration and ownership type do not influence firm
 performance. The results of the financial variables are robust in all
 models.
Journal: Emerging Markets Finance and Trade 
Pages: 20-32 
Issue: 6 
Volume: 45 
Year: 2009 
Month: 11 
Keywords: bank performance, board characteristics, corporate governance, ownership, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H8354K504880621R 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abdullah, S.N. 2004.
 "Board Composition, CEO Duality, and Performance Among Malaysian Listed
 Companies." >i>Corporate Governance: An International Review>/i> 4, no. 4:
 47-61.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT> Adams, R., and H. Mehran. 2005. "Corporate Performance, Board
 Structure, and Its Determinants in the Banking Industry." Paper presented
 at the European Finance Association meetings, Moscow, August 8.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Ararat, M.,
 and B.B. Yurtoglu. 2006. "Corporate Governance in Turkey: An Introduction
 to the Special Issue." >i>Corporate Governance: An International
 Review>/i> 14, no. 4 (July): 201-206.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>4</BIBL>	  <BIBTEXT> Barnhart, S.W.; M.W. Marr; and S.
 Rosenstein. 1994. "Firm Performance and Board Composition: Some New
 Evidence." >i>Managerial and Decision Economics>/i> 15, no. 4:
 329-340.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Caprio, G., and R. Levine. 2002. "Corporate Governance of Banks:
 Concepts and International Observations." Paper presented at the Global
 Corporate Governance Forum Research Network Meeting, Mexico City, April
 5.</BIBTEXT>	   </REF>      <REF>	    <BIBL>6</BIBL>	  <BIBTEXT>
 Claessens, S.; S. Djankov; J.P.H. Fan; and H.P. Lang. 2002. "Disentangling
 Entrenchment Effects of Large Shareholdings." >i>Journal of Finance>/i>
 57, no. 6: 2741-2771.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>7</BIBL>        <BIBTEXT> Dahya, J.; O. Dimitrov; and J.J.
 McConnell. 2008. "Dominant Shareholders, Corporate Boards, and Corporate
 Value: A Cross-Country Analysis." >i>Journal of Financial Economics>/i>
 87, no. 1: 78-100.</BIBTEXT>	   </REF>      <REF>	    <BIBL>8</BIBL> 
       <BIBTEXT> Daily, C.M.; D.R. Dalton; and A.A. Cannella. 2003.
 "Corporate Governance: Decades of Dialogue and Data." >i>Academy of
 Management Review>/i> 28, no. 3: 371-382.</BIBTEXT>	  </REF>      <REF>
	<BIBL>9</BIBL>	      <BIBTEXT> Daily, C.M., and C. Schwenk. 1996.
 "Chief Executive Officers, Top Management Team, and Boards of Directors:
 Congruent or Countervailing Forces?" >i>Journal of Management>/i> 22, no.
 2 (December): 185-208.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Dalton, D.D.; C.M. Daily; J.L. Johnson;
 and A.E. Ellstrand. 1999. "Number of Directors and Financial Performance:
 A Meta-Analysis." >i>Academy of Management Journal>/i> 42, no. 6:
 674-686.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Eldenburg, L.; E. Hermalin; M.S. Weisbach; and M. Wosinska.
 2004. "Governance, Performance Objectives, and Organizational Form:
 Evidence from Hospitals." >i>Journal of Corporate Finance>/i> 10, no. 4:
 527-548.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Finkelstein, S., and D.C. Hambrick. 1990. "Top Management Team
 Tenure and Organizational Outcomes: The Moderating Role of Managerial
 Discretion." >i>Administrative Science Quarterly>/i> 35, no. 3
 (September): 484-503.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>13</BIBL>	<BIBTEXT> Gertner, R., and S. Kaplan. 1996. "The
 Value-Maximizing Board." Booth School of Business, University of
 Chicago.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Halebian, J., and S. Finkelstein. 1993. "Top Management Team
 Size, CEO Dominance, and Firm Performance: The Moderating Roles of
 Environmental Turbulence and Discretion." >i>Academy of Management
 Journal>/i> 36, no. 4 (August): 844-863.</BIBTEXT>	 </REF>      <REF> 
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 1988. "The Determinants of Board Composition." >i>RAND Journal of
 Economics>/i> 19, no. 4 (Winter): 589-606.</BIBTEXT>	   </REF>     
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 Weisbach. 2003. "Board of Directors as an Endogenously Determined
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    </REF>	<REF>	     <BIBL>17</BIBL>	    <BIBTEXT> Hofstede, G.
 1984. >i>Culture's Consequences: International Differences in Work-Related
 Values.>/i> Beverly Hills, CA: Sage.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>18</BIBL>	  <BIBTEXT> Jensen, M. 1993. "The Modern Industrial
 Revolution, Exit, and the Failure of Internal Control Mechanisms."
 >i>Journal of Finance>/i> 48, no. 3: 831-880.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Johnson, J.L.; C.M. Daily;
 and A.E. Ellstrand. 1996. "Board of Directors: A Review and Research
 Agenda." >i>Journal of Management>/i> 22, no. 3: 409-438.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT> Kangis, P., and
 P. Kareklis. 2001. "Governance and Organizational Control in Public and
 Private Banks." >i>Corporate Governance>/i> 1, no. 1: 31-38.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>21</BIBL>	  <BIBTEXT> Kiel, C.G., and
 J.G. Nicholson. 2003. "Board Composition and Corporate Performance: How
 the Australian Experience Informs Contrasting Theories of Corporate
 Governance." >i>Corporate Governance: An International Review>/i> 11, no.
 5: 624-634.</BIBTEXT>	    </REF>	<REF>	     <BIBL>22</BIBL>	   
 <BIBTEXT> Kula, V. 2005. "The Impact of the Roles, Structure, and Process
 of Boards on Firm Performance: Evidence from Turkey." >i>Corporate
 Governance: An International Review>/i> 13, no. 2: 265-275.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT> Kula, V., and E.
 Tatoglu. 2006. "Board Process Attributes and Company Performance of
 Family-Owned Business in Turkey." >i>Corporate Governance: An
 International Review>/i> 5: 624-634.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>24</BIBL>	  <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; and
 A. Schleifer. 1999. "Corporate Ownership Around the World." >i>Journal of
 Finance>/i> 54, no. 2: 471-517.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>25</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A.
 Schleifer; and R. Vishy. 2002. "Investor Protection and Corporate
 Valuation." >i>Journal of Finance>/i> 57, no. 1: 1147-1170.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT> Levine, R. 2004.
 "The Corporate Governance of Banks: A Concise Discussion of Concepts and
 Evidence." Policy Research Working Paper no. 3404, World Bank, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>27</BIBL>	   
 <BIBTEXT> Macey, J.R., and M. O'Hara. 2003. "The Corporate Governance of
 Banks." >i>Federal Reserve Bank of New York Economic Policy Review>/i> 9,
 no. 1 (April): 91-107.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>28</BIBL>	<BIBTEXT> Mishra, C.S., and J.F. Nilesen. 1999.
 "The Association Between Bank Performance, Board Independence, and CEO
 Pay-Performance Sensitivity." >i>Managerial Finance>/i> 25, no. 10:
 22-33.</BIBTEXT>      </REF>	   <REF>	<BIBL>29</BIBL>       
 <BIBTEXT> North, D.C. 1994. "Economic Performance Through Time."
 >i>American Economic Review>/i> 84, no. 3: 359-368.</BIBTEXT>	    </REF> 
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 >i>Understanding the Process of Economic Change.>/i> Princeton: Princeton
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>31</BIBL> 
       <BIBTEXT> Pfeffer, J., and C.R. Salancik. 1978. >i>The External
 Control of Organizations.>/i> New York: Harper and Row.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>32</BIBL>	 <BIBTEXT> Rhoades, D.L.;
 P.L. Rechner; and C. Sunduramurthy. 2000. "Board Composition and Financial
 Performance: A Meta-Analysis of the Influence of Outside Directors."
 >i>Journal of Managerial Issues>/i> 12, no. 1 (Spring): 76-92.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>33</BIBL>	    <BIBTEXT> Simpson,
 W.G., and A.E. Gleason. 1999. "Board Structure, Ownership, and Financial
 Distress in Banking Firms." >i>International Review of Economics and
 Finance>/i> 8, no. 3: 281-292.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>34</BIBL>	<BIBTEXT> Solomon, W.J. 1993. "Crisis Prevention:
 How to Gear Up Your Board." >i>Harvard Business Review>/i> 71, no. 1
 (January-February): 68-75.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>35</BIBL>	<BIBTEXT> Staikouras, P.K.; C.K. Staikouras; and
 M.-E.K. Agoraki. 2007. "The Effect of Board Size and Composition on
 European Bank Performance." >i>European Journal of Law and Economics>/i>
 23, no. 1: 1-27.</BIBTEXT>	 </REF>      <REF>	  <BIBL>36</BIBL>  
      <BIBTEXT> Tian, J.J., and C.M. Lau. 2001. "Board Composition,
 Leadership Structure, and Performance in Chinese Listed Companies."
 >i>Asia Pacific Journal of Management>/i> 18, no. 2 (June):
 245-263.</BIBTEXT>	 </REF>      <REF>	  <BIBL>37</BIBL>	
 <BIBTEXT> Vafeas, N. 2003. "Length of Board Tenure and Outside Director
 Independence." >i>Journal of Business Finance and Accounting>/i> 30, no.
 7-8 (September): 1043-1064.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>38</BIBL>	<BIBTEXT> Wasti, S.A. 1998. "Cultural Barriers in
 the Transferability of Japanese and American Human Resources Practices to
 Developing Countries: The Turkish Case." >i>International Journal of Human
 Resource Management>/i> 9, no. 4: 608-631.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>39</BIBL>	     <BIBTEXT> Weir, C., and T. Liang.
 2000. "The Performance-Governance Relationship: The Effects of Cadbury
 Compliance on UK Quoted Companies." >i>Journal of Management and
 Governance>/i> 4, no. 4 (December): 265-281.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>40</BIBL>	     <BIBTEXT> Young, M.; M.W. Peng; D.
 Ahlstrom; G.D. Bruton; and Y. Yiang. 2008. "Corporate Governance Emerging
 Economies: A Review of the Principal-Principal Perspective." >i>Journal of
 Management Studies>/i> 45, no. 1: 196-220.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:6:p:20-32




Template-Type: ReDIF-Article 1.0
Author-Name: Franco  Parisi 
Author-X-Name-First: Franco  
Author-X-Name-Last: Parisi 
Author-Name: Ike  Mathur 
Author-X-Name-First: Ike  
Author-X-Name-Last: Mathur 
Author-Name: Lance  Nail 
Author-X-Name-First: Lance  
Author-X-Name-Last: Nail 
Title: Minority Stockholders' Protection in a New Corporate Control Law: Market Implications in an Emerging Economy 
Abstract:
 This paper analyzes the effect of a new corporate governance law in the
 emerging capital market of Chile to determine if capital markets perceived
 the intended protection of minority stockholders against wealth
 expropriation as effective. The unique nature of the new law allowed for
 voluntary adoption during the initial three-year period, after which it
 became mandatory. We find no evidence of superior abnormal returns for
 those firms voluntarily adopting the new law versus those forced to accept
 the new law as it became mandatory. Trading volume also increased for
 those not adopting and declined for those that did voluntarily adopt.
 These results indicate that the capital markets did not perceive voluntary
 adoption of the new law as effective protection for minority shareholders.
 We also find a greater presence of institutional investors in the
 ownership structure of those firms not voluntarily adopting the new law,
 indicating their monitoring role by investing in firms with better
 corporate governance practices. Our results suggest that, in the Chilean
 case, the presence of strong institutional investors is as effective a
 corporate governance mechanism as is the new law.
Journal: Emerging Markets Finance and Trade 
Pages: 4-19 
Issue: 6 
Volume: 45 
Year: 2009 
Month: 11 
Keywords: Chile, corporate governance, emerging market, international finance, minority stockholder, wealth expropriation, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=HH28R18153141P38 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Biblioteca el Congreso
 Nacional de la RepÃƒÂºblica de Chile. 2000. Ley de OPAS y Gobiernos
 Corporativos [Law of Mergers and Acquisitions and Corporate Governance].
 Santiago, Chile (available at >a target="_blank"
 href='http://www.congreso.cl'>www.congreso.cl>/a></BIBTEXT>	  </REF>   
   <REF>	<BIBL>2</BIBL>	      <BIBTEXT> Boubakri, N., and O. Hamza.
 2007. "The Dynamics of Privatization, the Legal Environment, and Stock
 Market Development." >i>International Review of Financial Analysis>/i> 16,
 no. 4: 304-331.</BIBTEXT>	</REF>	    <REF>	 <BIBL>3</BIBL>    
    <BIBTEXT> Bradley, M.; A. Desai; and E.H. Kim. 1988. "Synergistic Gains
 from Corporate Acquisitions and Their Division Between the Stockholders of
 Target and Acquiring Firms." >i>Journal of Financial Economics>/i> 21
 (May): 67-87.</BIBTEXT>      </REF>	  <REF>        <BIBL>4</BIBL>	   
  <BIBTEXT> Coombes, P., and S. Wong. 2004. "Investor Perspectives on
 Corporate Governance: A Rapidly Evolving Story." >i>Global Corporate
 Governance Guide 2004>/i>, ed. B. Metzer, pp. 1-7. London: Globe White
 Page Ltd.</BIBTEXT>	  </REF>      <REF>	   <BIBL>5</BIBL>	
 <BIBTEXT> Dick, A., and L. Zingales. 2004. "Private Benefits of Control:
 An International Comparison." >i>Journal of Finance>/i> 59, no. 2:
 537-601.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Dimson, E. 1979. "Risk Measurement When Shares Are Subject to
 Infrequent Trading." >i>Journal of Financial Economics>/i> 7, no. 2:
 197-226.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Fama, E. 1980. "Agency Problem and the Theory of the Firm."
 >i>Journal of Political Economy>/i> 88, no. 2: 288-307.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Gillian, S., and
 L. Starks. 2000. "Corporate Governance Proposals and Shareholder Activism:
 The Role of Institutional Investors." >i>Journal of Financial
 Economics>/i> 57, no. 2: 275-305.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>9</BIBL>        <BIBTEXT> Gillian, S., and L. Starks. 2003.
 "Corporate Governance, Corporate Ownership, and the Role of Institutional
 Investors: A Global Perspective." >i>Journal of Applied Finance>/i> 13
 (October): 4-22.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>  
      <BIBTEXT> Jensen, M., and W. Meckling. 1976. "Theory of the Firm,
 Managerial Behavior, Agency Cost, and Ownership Structure." >i>Journal of
 Financial Economics>/i> 3, no. 4: 305-360.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> La Porta, R.; F.
 Lopez-de-Silanes; A. Shleifer; and R.W. Vishny. 1997. "Legal Determinants
 of External Finance." >i>Journal of Finance>/i> 52, no. 3:
 1131-1150.</BIBTEXT>	   </REF>      <REF>	    <BIBL>12</BIBL>	  
 <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A. Shleifer; and R.W. Vishny.
 1998. "Law and Finance." >i>Journal of Political Economy>/i> 106, no. 6:
 1113-1155.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A. Shleifer; and R.W. Vishny.
 2000. "Investor Protection and Corporate Governance." >i>Journal of
 Financial Economics>/i> 58, nos. 1-2: 3-27.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT> Lin, A., and P. Swanson.
 2008. "U.S. Investors and Global Equity Markets." >i>International Review
 of Financial Analysis>/i> 17, no. 1: 83-107.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Minguez-Vera, A., and J.F.
 Martin-Ugedo. 2007. "Does Ownership Structure Affect Value? A Panel Data
 Analysis for the Spanish Market." >i>International Review of Financial
 Analysis>/i> 16, no. 1: 81-98.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>16</BIBL>	<BIBTEXT> Nenova, T. 2003. "The Value of Corporate
 Voting Rights and Control: A Cross-Country Analysis." >i>Journal of
 Financial Economics>/i> 68, no. 3: 325-351.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Nenova, T. 2006. "Control
 Values and Changes in Corporate Law in Brazil." >i>Latin American Business
 Review>/i> 6, no. 3: 1-37.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>18</BIBL>	<BIBTEXT> Parisi, F.; R. Godoy; and A. Parisi.
 2001. "Corporate Government in Chile: A Revision." In >i>Research in
 International Business and Finance>/i>, ed. L. Nail, pp. 241-260.
 Amsterdam: Elsevier.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>19</BIBL>	<BIBTEXT> Pitelis, C. 2004. "Corporate Governance,
 Shareholder Value, and Sustainable Economic Performance." >i>Corporate
 Governance: An International Review>/i> 12, no. 2: 209-223.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT> Saito, R. 2003.
 "Determinants of the Differential Pricing Between Voting and Non-Voting
 Shares in Brazil." >i>Brazilian Review of Econometrics>/i> 23 (May):
 33-96.</BIBTEXT>      </REF>	   <REF>	<BIBL>21</BIBL>       
 <BIBTEXT> Shleifer, A., and R. Vishny. 1997. "A Survey of Corporate
 Governance." >i>Journal of Finance>/i> 52, no. 2: 737-783.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT> Young, B. 2003.
 "Corporate Governance and Firm Performance: Is There a Relationship?"
 >i>Ivey Business Journal>/i> 68 (September-October): 1-5.</BIBTEXT>	 
 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:6:p:4-19




Template-Type: ReDIF-Article 1.0
Author-Name: Joon  Chae 
Author-X-Name-First: Joon  
Author-X-Name-Last: Chae 
Author-Name: Albert  Wang 
Author-X-Name-First: Albert  
Author-X-Name-Last: Wang 
Title: Determinants of Trading Profits: The Liquidity Provision Decision 
Abstract:
 Theories show that liquidity provision implies negative contemporaneous
 correlation between trades and returns. Dealers on the Taiwan Stock
 Exchange are granted typical dealer trading advantages without obligations
 to provide liquidity and, thus, are ideal to test whether these advantages
 lead to voluntary liquidity provision (earning bid-ask spreads) or
 information trading (trading in the direction of the market). We find a
 strong positive correlation in aggregate, implying that these unrestricted
 dealers prefer information trading. We also find that smaller dealers are
 more likely to provide liquidity and that small-cap stocks (with larger
 bid-ask spreads) are more profitable for liquidity provision.
Journal: Emerging Markets Finance and Trade 
Pages: 33-56 
Issue: 6 
Volume: 45 
Year: 2009 
Month: 11 
Keywords: dealer, liquidity provision, market maker, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=HJV244322G246764 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ellis, K.; R. Michaely;
 and M. O'Hara. 2000. "When the Underwriter Is the Market-Maker: An
 Examination of After-Market Trading in IPOs." >i>Journal of Finance>/i>
 55, no. 3: 1039-1074.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>2</BIBL>        <BIBTEXT> Ellis, K.; R. Michaely; and M. O'Hara.
 2002. "The Making of a Dealer Market: From Entry to Equilibrium in the
 Trading of Nasdaq Stocks." >i>Journal of Finance>/i> 57, no. 5:
 2289-2316.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL>	 
 <BIBTEXT> Fama, E., and J. MacBeth. 1973. "Risk, Return, and Equilibrium:
 Empirical Tests." >i>Journal of Political Economy>/i> 71, no. 3:
 607-636.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Glosten, L., and L. Harris. 1988. "Estimating Components of the
 Bid-Ask Spread." >i>Journal of Financial Economics>/i> 21, no. 1:
 123-142.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Glosten, L., and P. Milgrom. 1985. "Bid, Ask, and Transaction
 Prices in a Specialist Market with Heterogeneously Informed Agents."
 >i>Journal of Financial Economics>/i> 14, no. 1: 71-100.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Grossman, S., and
 M. Miller. 1988. "Liquidity and Market Structure." >i>Journal of
 Finance>/i> 17, no. 3: 617-633.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT> Hasbrouck, J. 1991. "Measuring the
 Information Content of Stock Trades." >i>Journal of Finance>/i> 46, no. 1:
 179-207.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Ho, T., and R. Macris. 1984. "Dealer Bid-Ask Quotes and
 Transaction Prices: An Empirical Study of Some AMEX Options." >i>Journal
 of Finance>/i> 39, no. 1: 23-45.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>9</BIBL>        <BIBTEXT> Kyle, A. 1985. "Continuous Auctions and
 Insider Trading." >i>Econometrica>/i> 53, no. 6: 1315-1336.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Lee, Y.; Y. Liu;
 R. Roll; and A. Subrahmanyam. 2004. "Order Imbalances and Market
 Efficiency: Evidence from the Taiwan Stock Exchange." >i>Journal of
 Financial and Quantitative Analysis>/i> 39, no. 2: 329-341.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Lo, A., and J.
 Wang. 2000. "Trading Volume Definitions, Data Analysis, and Implications
 of Portfolio Theory." >i>Review of Financial Studies>/i> 13, no. 2:
 257-300.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Madhavan, A., and S. Smidt. 1993. "An Analysis of Changes in
 Specialist Quotes and Inventories." >i>Journal of Finance>/i> 48, no. 5:
 1595-1628.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT> Taiwan Stock Exchange Corporation. 2002. >i>TSEC Annual
 Report.>/i> Taipei.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>14</BIBL>	<BIBTEXT> Taiwan Stock Exchange Corporation. 2002.
 >i>TSEC Fact Book.>/i> Taipei.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>15</BIBL>	<BIBTEXT> Venkataraman, K., and A. Waisburd. 2007.
 "The Value of the Designated Market Maker." >i>Journal of Financial and
 Quantitative Analysis>/i> 42, no. 3: 735-758.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Wang, J. 1994. "A Model of
 Competitive Stock Trading Volume." >i>Journal of Political Economy>/i>
 102, no. 1: 127-168.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:6:p:33-56




Template-Type: ReDIF-Article 1.0
Author-Name: K. Azim ÃƒÂ–zdemir 
Author-X-Name-First: K. Azim 
Author-X-Name-Last: ÃƒÂ–zdemir 
Author-Name: Mesut  SaygÃ„Â±lÃ„Â± 
Author-X-Name-First: Mesut  
Author-X-Name-Last: SaygÃ„Â±lÃ„Â± 
Title: Monetary Pressures and Inflation Dynamics in Turkey: Evidence from P-Star Model 
Abstract:
 This paper uses the P-star model to explain inflation dynamics in Turkey.
 In P-star models, money determines the price gap, which is postulated to
 measure the pressure on prices in an economy. This pressure emerges when
 output is above the potential, the interest rate is lower than the natural
 rate, or there is pure excess money in the economy. The estimation results
 with the Turkish data show that the price gap contains considerable
 information for explaining inflation dynamics. Moreover, the model
 selection criterion that compares the empirical performance of the P-star
 model with the new classical Phillips curve relation favors the P-star
 model over the Phillips curve relationship. We conclude that money is
 efficacious in predicting risk in price stability in Turkey.
Journal: Emerging Markets Finance and Trade 
Pages: 69-86 
Issue: 6 
Volume: 45 
Year: 2009 
Month: 11 
Keywords: inflation dynamics, money demand, P-star, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L85868651493PQ48 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Anglingkusumo, R. 2005.
 "Money-Inflation Nexus in Indonesia: Evidence from a P-Star Analysis."
 Discussion Papers no. 05-054/4, Tinbergen Institute, Amsterdam.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Borio, C.,
 and P. Lowe. 2004. "Securing Sustainable Price Stability: Should Credit
 Come Back from the Wilderness?" Working Paper no. 157, Bank for
 International Settlements, Basel.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>3</BIBL>        <BIBTEXT> Davidson, R., and J.G. MacKinnon. 1981.
 "Several Tests for Model Specification in the Presence of Alternative
 Hypotheses." >i>Econometrica>/i> 49, no. 3: 781-793</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Davidson, R., and J.G.
 MacKinnon. 1993. >i>Estimation and Inference in Econometrics.>/i> Oxford:
 Oxford University Press.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>5</BIBL>        <BIBTEXT> DomaÃƒÂ§, I. 2003. "Explaining and
 Forecasting Inflation in Turkey." Working Paper, Central Bank of Turkey,
 Ankara, July.</BIBTEXT>      </REF>	  <REF>        <BIBL>6</BIBL>	   
  <BIBTEXT> Fischer, B.; M. Lenza; H. Pill; and L. Reichlin. 2006 "Money
 and Monetary Policy: The ECB Experience 1999-2006." European Central Bank,
 Frankfurt.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> Friedman, M. 1968. "The Role of Monetary Policy." >i>American
 Economic Review>/i> 58, no. 1: 1-17.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>8</BIBL>	 <BIBTEXT> Gerlach, S., and L.E.O. Svensson. 2003.
 "Money and Inflation in the Euro Area: A Case for Monetary Indicators?"
 >i>Journal of Monetary Economics>/i> 50, no. 8: 1649-1672.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Goodhart, C.A.E.
 2007. "Whatever Became of the Monetary Aggregates?" >i>National Institute
 Economic Review>/i> 200, no. 1: 56-61.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>10</BIBL>	    <BIBTEXT> Habibullah, M.S. 1999. >i>Divisia
 Monetary Aggregates and Economic Activities in Asian Developing
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 1963. "New Methods in Weiner Filtering Theory Problems." In >i>Proceedings
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      <BIBTEXT> Khan, G.A., and S. Benolkin. 2007. "The Role of Money in
 Monetary Policy: Why Do the Fed and ECB See It So Differently?" >i>Federal
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 <BIBTEXT> Maddala, G.S. 1992. >i>Introduction to Econometrics>/i>, 2d ed.
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     <BIBL>22</BIBL>	    <BIBTEXT> Oomes, N., and F. Ohnsorge. 2005.
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 2000. "A Quarterly Macroeconometric Model for a Highly Inflationary and
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 the United States." >i>Journal of Political Economy>/i> 90, no. 6:
 1187-1211.</BIBTEXT>	   </REF>      <REF>	    <BIBL>29</BIBL>	  
 <BIBTEXT> Stock, J.H., and M.W. Watson. 1993. "A Simple Estimator of
 Cointegrating Vectors in Higher-Order Integrated Systems."
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      <BIBL>30</BIBL>	     <BIBTEXT> Svensson, L.E.O. 1999. "Does the
 P>sup>*>/sup> Model Provide Any Rationale for Monetary Targeting?" Working
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 <BIBTEXT> Tashkini, A. 2006. "The P-Star Model in Iran (1960-2005)."
 >i>Iranian Economic Review>/i> 11, no. 15: 115-122.</BIBTEXT>	    </REF> 
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 "Structural Time Series Test of the P-Star Model: Evidence from the Middle
 East." >i>Applied Financial Economics>/i> 17, nos. 4-6: 463-467.</BIBTEXT>
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 K.-H. 2002. "Monetary Indicators and Policy Rules in the P-Star Model."
 Discussion Paper no. 18/02, Deutsche Bundesbank, Frankfurt.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>34</BIBL>	 <BIBTEXT> Woodford, M.
 2007. "Does a Ã¢Â€Â˜Two-Pillar Phillips CurveÃ¢Â€Â™ Justify a Two-Pillar
 Monetary Policy Strategy." In >i>The Role of Money: Money and Monetary
 Policy in the 21st Century>/i>, ed. A. Beyer and L. Reichlin, pp. 56-82.
 Frankfurt: European Central Bank.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>35</BIBL>	<BIBTEXT> Yap, M.M.-C. 2002. "P-Star, Exchange Rate
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 the Asia Pacific Economy>/i> 7, no. 3: 379-407.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:45:y:2009:i:6:p:69-86




Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Badarau-Semenescu 
Author-X-Name-First: Cristina 
Author-X-Name-Last: Badarau-Semenescu 
Author-Name: Andreea Semenescu 
Author-X-Name-First: Andreea 
Author-X-Name-Last: Semenescu 
Title: Fiscal Policy and the Cost of External Finance to Firms 
Abstract:
 This study has two objectives. First, it analyzes the influence of
 corporate income taxes on the cost of external finance to firms in
 imperfect financial markets, and second, it evaluates the transmission of
 monetary and tax shocks in this framework. A model is proposed providing
 evidence on two opposite effects of corporate tax on a firm's external
 financing cost: a positive effect is induced by the traditional tax shield
 channel, while a negative effect comes from the firm's balance sheet
 channel. The dominance of one of these effects depends on firms' financial
 health. In a simple dynamic stochastic general equilibrium (DSGE) model,
 the presence of taxes amplifies the macroeconomic reaction of the real
 variables to monetary shocks, thus amplifying the financial accelerator
 role of the firm's balance sheet. As in the case of monetary shocks, the
 balance sheet channel acts equally in the model as an accelerator for the
 transmission of tax shocks.
Journal: Emerging Markets Finance and Trade 
Pages: 36-50 
Issue: 0 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: corporate tax, external finance premium, financial accelerator, imperfect credit market, investment decision of firms, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=975104858627755U 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bernanke, B. 2009.
 "Reflections on a Year of Crisis." Paper presented at the Federal Reserve
 Bank of Kansas City, Annual Economic Symposium, Jackson Hole, Wyoming,
 August 21.</BIBTEXT>	   </REF>      <REF>	    <BIBL>2</BIBL>	 
 <BIBTEXT> Bernanke, B., and M. Gertler. 1989. "Agency Costs, Net Worth,
 and Business Fluctuations." >i>American Economic Review>/i> 79:
 14-31</BIBTEXT>      </REF>	  <REF>        <BIBL>3</BIBL>	    
 <BIBTEXT> Bernanke, B., and M. Gertler. 1995. "Inside the Black Box: The
 Credit Channel of the Monetary Policy Transmission." >i>Journal of
 Economic Perspectives>/i> 9: 27-48</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>4</BIBL>        <BIBTEXT> Bernanke, B.; M. Gertler; and S.
 Gilchrist. 1996. "The Financial Accelerator and the Flight to Quality."
 >i>Review of Economics and Statistics>/i> 78: 1-15</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>5</BIBL>        <BIBTEXT> Bernanke, B.; M. Gertler;
 and S. Gilchrist. 1999. "The Financial Accelerator in a Quantitative
 Business Cycle Framework." In >i>Handbook of Macroeconomics>/i>, vol. 1,
 ed. J. B. Taylor and M. Woodford, pp. 1341-1393. Amsterdam:
 Elsevier.</BIBTEXT>	  </REF>      <REF>	   <BIBL>6</BIBL>	
 <BIBTEXT> Calomiris, C. 1995. "Financial Fragility: Issues and Policy
 Implications." >i>Journal of Financial Services Research>/i> 9:
 241-257.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Calomiris, C. W., and R. G. Hubbard. 1990. "Firm Heterogeneity,
 Internal Finance, and Credit Rationing." >i>Economic Journal>/i> 100:
 90-104.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>       
 <BIBTEXT> Calvo, G. 1983. "Staggered Prices in a Utility Maximising
 Framework." >i>Journal of Monetary Economics>/i> 12: 383-398.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>9</BIBL>	  <BIBTEXT> Carlstrom, C.,
 and T. Fuerst. 1997. "Agency Costs, Net Worth, and Business Fluctuations:
 A Computable General Equilibrium Analysis." >i>American Economic
 Review>/i> 87, no. 5: 893-910.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Chatelain, J.-B.; M. Ehrmann; A.
 Generale; J. Martinez-Pages; P. Vermeulen; and A. Worms. 2003. "Monetary
 Policy Transmission in the Euro Area: New Evidence from Micro Data on
 Firms and Banks." >i>Journal of European Economic Association>/i> 1, nos.
 2-3: 731-742.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	   
   <BIBTEXT> Fagan, G.; J. Henry; and R. Mestre. 2001. "An Area-Wide Model
 (AWM) for the Euro Area." ECB Working Paper no. 42.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Faia, E. 2002. "Monetary
 Policy in a World with Different Financial Systems." ECB Working Paper no.
 183.</BIBTEXT>      </REF>	 <REF>	      <BIBL>13</BIBL>	    
 <BIBTEXT> Fazzari, S.; R. G. Hubbard; and B. Petersen. 1988. "Investment,
 Financing Decisions, and Tax Policy." >i>American Economic Review>/i> 78,
 no. 2: 200-205.</BIBTEXT>	</REF>	    <REF>	 <BIBL>14</BIBL>   
     <BIBTEXT> Gerali, A.; S. Neri; L. Sessa; and F. M. Signoretti. 2008.
 "Credit and Banking in a DSGE Model." Paper presented at the ECB
 Conference on Financial Markets and Macroeconomic Stability, Frankfurt am
 Main. December 15-16.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>15</BIBL>	<BIBTEXT> Gertler, M., and P. Karadi. 2009. "A
 Model of Unconventional Monetary Policy." New York University
 (April).</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT> Gertler, M., and N. Kiyotaki. 2009. "Financial Intermediation
 and Credit Policy in Business Cycle Analysis." New York University and
 Princeton (October).</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>17</BIBL>	<BIBTEXT> Kiyotaki, N., and J. Moore. 1997. "Credit
 Cycles." >i>Journal of Political Economy>/i> 105: 211-248.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Levieuge, G.
 2003. "Les banques centrales doivent-elles rÃƒÂ©agir aux mouvements de prix
 d'actifs?" Ph.D. diss., University of Orleans.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Levieuge, G. 2009. "The Bank
 Capital Channel and Counter-Cyclical Prudential Regulation in a DSGE
 Model." >i>Louvain Economic Review>/i> 75, no. 4: 425-460.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT> Moyen, S., and
 J. G. Sahuc. 2005. "Incorporating Labour Market Frictions into an
 Optimising-Based Monetary Policy Model." >i>Economic Modelling>/i> 22:
 159-186.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Peersman, G., and F. Smets. 2005. "The Industry Effects of
 Monetary Policy in the Euro Area." >i>Economic Journal>/i> 115:
 319-342.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Stiglitz, J., and A. Weiss. 1981. "Credit Rationing in Models
 with Imperfect Information." >i>American Economic Review>/i> 71:
 393-410.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT> Sunirand, P. 2003. "The Role of Bank Capital and the
 Transmission Mechanism of Monetary Policy." Financial Markets Group
 Discussion Papers no. 433.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>24</BIBL>	<BIBTEXT> Townsend, R. 1979. "Optimal Contracts and
 Competitive Markets with Costly State Verification." >i>Journal of
 Economic Theory>/i> 21: 265-293.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>25</BIBL>	<BIBTEXT> Van den Heuvel, S. 2006. "The Bank
 Capital Channel of Monetary Policy." In >i>Proceedings of the Conference
 of the Society for Economic Dynamics>/i>, no. 512.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>26</BIBL>	<BIBTEXT> Vermeulen, P. 2002.
 "Business Fixed Investment: Evidence of a Financial Accelerator in
 Europe." >i>Oxford Bulletin of Economics and Statistics>/i> 64, no. 3:
 213-231.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT> Williamson, S. 1987. "Financial Intermediation, Business
 Failures, and Real Business Cycles." >i>Journal of Political Economy>/i>
 95, no. 6: 1196-1216.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:46:y:2010:i:0:p:36-50




Template-Type: ReDIF-Article 1.0
Author-Name: Zuzana KÃ…Â™ÃƒÂ­stkovÃƒÂ¡ 
Author-X-Name-First: Zuzana 
Author-X-Name-Last: KÃ…Â™ÃƒÂ­stkovÃƒÂ¡ 
Title: Approaches to the Dynamization of the CGE Model Applied to the Czech Republic 
Abstract:
 In this study, two approaches to the recursive dynamization of a
 computable general equilibrium (CGE) model are applied. Simulations show
 that the application of Tobin's q investment function leads to a more
 dynamic capital stock formation accompanied by higher growth of gross
 domestic product compared to more moderate projections under a linear
 investment scenario. The study also shows that the Tobin q scenario
 provides projections that are more consistent with the historical growth
 rates of investments in the Czech Republic.
Journal: Emerging Markets Finance and Trade 
Pages: 59-82 
Issue: 0 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: CGE model, Czech Republic, dynamization, investments, Tobin's q function, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A47518131313T8Q0 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abel, Andrew. 1980.
 "Empirical Investment Equations: An Integrative Framework."
 >i>Carnegie-Rochester Conference Series on Public Policy>/i> 12:
 39-91.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT> Adelman, I., and E. Thorbecke. 1966. >i>The Theory and Design of
 Economic Development.>/i> Baltimore: Johns Hopkins University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> Annabi, N., H. K. Bazlul et al. 2005. "Implications of WTO
 Agreement and Domestic Trade Policy Reforms for Poverty in Bangladesh:
 Short vs. Long Run." Working Paper MPIA, 2005-02.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>4</BIBL>	      <BIBTEXT> Annabi, N., N. CissÃƒÂ© et
 al. 2005. "Trade Liberalisation, Growth and Poverty in Senegal: A Dynamic
 Microsimulation CGE Model Analysis." CIRPEE Working Paper 05-12
 (May).</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> Christiano, J. L., and J. M. Davis. 2006. "Two Flaws in Business
 Cycle Accounting." NBER Working Paper no. 12647 (October 18).</BIBTEXT>   
   </REF>      <REF>	    <BIBL>6</BIBL>	  <BIBTEXT> Czech
 Statistical Office. 2008. >i>NACE, Rev 2. Methodological Handbook.>/i>
 Available at >a target="_blank"
 href='http://www.czso.cz/csu/klasifik.nsf/i/klasifikace_ekonomickych_cinno
 sti_(cz_nace)'>www.czso.cz/csu/klasifik.nsf/i/klasifikace_ekonomickych_cin
 nosti_(cz_nace)>/a></BIBTEXT>	    </REF>	<REF>	     <BIBL>7</BIBL>
	<BIBTEXT> Dinamaran, B. 2006. >i>Global Trade, Assistance and
 Production. The GTAP 6 Data Base.>/i> Software documentation. Center for
 Global Trade Analysis, Department of Agricultural Economics, Purdue
 University, December.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Dixon P. B., and M. T. Rimmer. 2002.
 >i>Dynamic General Equilibrium Modelling for Forecasting and Policy. A
 Practical Guide and Documentation of MONASH.>/i> Amsterdam:
 Elsevier.</BIBTEXT>	  </REF>      <REF>	   <BIBL>9</BIBL>	
 <BIBTEXT> Dybczak, K.; D. VoÃ…Âˆka; and N. Van der Windt. 2008. "The Effect
 of Oil Price Shocks on the Czech Economy." Czech National Bank Working
 Paper Series 5.</BIBTEXT>	</REF>	    <REF>	 <BIBL>10</BIBL>   
     <BIBTEXT> Eberly, Janice C. 1997. "International Evidence on
 Investment and Fundamentals." >i>European Education Review>/i> 41, no. 6:
 1055-78.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Fuller, F.; J. Beghin; J. Fabiosa et al. 2000. "Accession of the
 Czech Republic, Hungary, and Poland to the European Union: Impacts on
 Agricultural Markets." Working Paper 00-WP 259. Center for Agricultural
 and Rural Development, Iowa State University.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT> Ginsburgh, V., and M.
 Keyzer. 1997. >i>The Structure of Applied General Equilibrium Models.>/i>
 Cambridge, MA: MIT Press.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>13</BIBL>	<BIBTEXT> Hudson, E. A., and D. W. Jorgenson. 1974.
 "U. S. Energy Policy and Economic Growth, 1975-2000." >i>Bell Journal of
 Economics and Management Science>/i> 5, no. 2: 461-514.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Janovskij, J.,
 and M. RojÃƒÂ­Ã„Âek. 2004. "CGE Models Applied on New European Union Members:
 Case of the Czech Republic." >i>Proceedings of the Ecomod Conference.>/i>
 Available at >a target="_blank"
 href='http://www.ecomod.net/conferences/iioa2004/iioa2004_papers/506.pdf'>
 www.ecomod.net/conferences/iioa2004/iioa2004_papers/506.pdf>/a></BIBTEXT> 
     </REF>	 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Jung, H. S.,
 and E. Thorbecke. 2001. "The Impact of Public Education Expenditure on
 Human Capital, Growth, and Poverty in Tanzania and Zambia: A General
 Equilibrium Approach." IMF Working Paper WP/01/106. Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>16</BIBL>	   
 <BIBTEXT> Lemelin, A. 2007. "Bond Indebtedness in a Recursive Dynamic CGE
 Model." Working paper 07-10, CIRPEE. Available at >a target="_blank"
 href='http://ssrn.com/abstract=984310/'>http://ssrn.com/abstract=984310/>/
 a></BIBTEXT>	   </REF>      <REF>	    <BIBL>17</BIBL>	  
 <BIBTEXT> Lemelin, A., and B. DecaluwÃƒÂ©. 2007. "Issues in Recursive
 Dynamic CGE Modeling: Investment by Destination, Savings and Public Debt.
 A Survey." UniversitÃƒÂ© du QuÃƒÂ©bec, INRS. Urbanisation, Culture et
 SociÃƒÂ©tÃƒÂ©. CIRPÃƒÂ‰E, UniversitÃƒÂ© Laval (November).</BIBTEXT>	  </REF>   
   <REF>	<BIBL>18</BIBL>        <BIBTEXT> Lorenzoni G., and K.
 Walentin. 2007. "Financial Frictions, Investment and Tobin's Q." National
 Bureau of Economic Research Working Paper 1309. Available at >a
 target="_blank"
 href='http://www.nber.org/papers/w13092.pdf?new_window=1'>www.nber.org/pap
 ers/w13092.pdf?new_window=1>/a></BIBTEXT>	</REF>	    <REF>	
 <BIBL>19</BIBL>	<BIBTEXT> Pavel, J. 2006. >i>Macroeconomic Models
 of the Impact of the Environmental Policy Measures on the Macroeconomic
 Aggregates in the Czech Republic.>/i> Prague: Institute for Economic and
 Environmental Policy (IEEP).</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>20</BIBL>	<BIBTEXT> Summers, L. H. 1981. "Taxation and
 Corporate Investment: A q-Theory Approach." >i>Brookings Papers on
 Economic Activity>/i> 12: 67-140.</BIBTEXT>	  </REF>      <REF>	  
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 >i>Central and Eastern European Agriculture in an Expanding European
 Union.>/i> New York: CABI.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>22</BIBL>	<BIBTEXT> Taylor, L., and R. Von Arnim. 2007.
 "Projected Benefits of the Doha Round Hinge on Misleading Trade Models:
 Policy Note." Schwartz Center for Economic Policy Analysis, New York
 (March). Available at >a target="_blank"
 href='http://www.newschool.edu/cepa/publications/policynotes/Doha%20Policy
 %20Note%20Final%2003_12_07.pdf'>www.newschool.edu/cepa/publications/policy
 notes/Doha%20Policy%20Note%20Final%2003_12_07.pdf>/a></BIBTEXT>     
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT> Thurlow, J.
 2004. "A Dynamic Computable General Equilibrium (CGE) Model for South
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 Strategies (TIPS). Working Paper 1-2004.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:0:p:59-82




Template-Type: ReDIF-Article 1.0
Author-Name: Jangkoo Kang 
Author-X-Name-First: Jangkoo 
Author-X-Name-Last: Kang 
Author-Name: Doojin Ryu 
Author-X-Name-First: Doojin 
Author-X-Name-Last: Ryu 
Title: Which Trades Move Asset Prices? An Analysis of Futures Trading Data 
Abstract:
 This article examines the information content of trade size and investor
 performance in a unified framework, using the price contribution (PC)
 measure proposed by Barclay and Warner (1993). Several interesting results
 obtained through the analysis of a unique dataset of KOSPI200 futures are
 presented herein, as follows: (1) evidence is presented against the
 "stealth trading hypothesis," and it is claimed that medium-size trades
 are not more informative than trades of other sizes; (2) foreign
 institutions have an advantage over domestic investors in terms of
 information, and their investment performance is the best among all
 investor types; (3) domestic individuals cannot be considered homogeneous
 investors; and (4) although the PC of the trades by domestic institutions
 is relatively small on average, the domestic institutional investors
 outperform other investors at around the futures' maturity dates.
Journal: Emerging Markets Finance and Trade 
Pages: 7-22 
Issue: 0 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: investment performance, investor type, KOSPI200 futures, price contribution, trade size, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G514J3112H835142 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahn, H.; J. Kang; and
 D. Ryu. 2008. "Informed Trading in the Index Option Market: The Case of
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 1118-1146.</BIBTEXT>	   </REF>      <REF>	    <BIBL>2</BIBL>	 
 <BIBTEXT> Ahn, H.; J. Kang; and D. Ryu. 2010. "Information Effects of
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 Market." >i>Asia-Pacific Journal of Financial Studies>/i> 39, no. 3:
 301-339.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Ahn, H.; J. Cai; Y. Hamao; and R. Ho. 2002. "The Components of
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    <BIBTEXT> Chakravarty, S. 2001 "Stealth-Trading: Which Traders' Trades
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     <BIBTEXT> Choe, H.; J. Chung; and W. Lee. 2008. "Distribution of
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 and M. Keloharju. 2000. "The Investment Behavior and Performance of
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       <BIBTEXT> Hong, H. 2000. "A Model of Returns and Trading in Futures
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 </REF>      <REF>	  <BIBL>24</BIBL>	 <BIBTEXT> Hwang, K.; J.
 Kang; and D. Ryu. 2010. "Phase-Transition Behavior in the Emerging Market:
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       <BIBL>25</BIBL>	      <BIBTEXT> Ivkovich, Z., and S. Weisbenner.
 2004. "Local Does as Local Is: Information Content of the Geography of
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 60, no. 1: 267-306.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>26</BIBL>	<BIBTEXT> Ivkovich, Z.; C. Sialm; and S.
 Weisbenner. 2008. "Portfolio Concentration and the Performance of
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 <BIBL>27</BIBL>	<BIBTEXT> Keim, D., and A. Madhavan. 1997.
 "Transaction Costs and Investment Style: An Interexchange Analysis of
 Institutional Equity Trades." >i>Journal of Financial Economics>/i> 46,
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     <BIBTEXT> Kyle, A. 1985. "Continuous Auctions and Insider Trading."
 >i>Econometrica>/i> 53, no. 6: 1315-1335.</BIBTEXT>	  </REF>      <REF>
	<BIBL>29</BIBL>        <BIBTEXT> Lin, J.; G. Sanger; and G. Booth.
 1995. "Trade Size and Components of the Bid-Ask Spread." >i>Review of
 Financial Studies>/i> 8, no. 4: 1153-1183.</BIBTEXT>	   </REF>     
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 Impact of Emerging Market Liberalization." >i>Journal of Banking and
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 <BIBL>32</BIBL>	<BIBTEXT> Samuelson, P. 1965. "Proof That Properly
 Anticipated Prices Fluctuate Randomly." >i>Industrial Management
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 <BIBTEXT> Sias, R., and L. Starks. 1997. "Return Autocorrelation and
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 103-131.</BIBTEXT>	 </REF>      <REF>	  <BIBL>35</BIBL>	
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 157-179.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:0:p:7-22




Template-Type: ReDIF-Article 1.0
Author-Name: G. Gulsun Akin 
Author-X-Name-First: G. Gulsun 
Author-X-Name-Last: Akin 
Author-Name: Ahmet Faruk Aysan 
Author-X-Name-First: Ahmet Faruk 
Author-X-Name-Last: Aysan 
Author-Name: Gazi Ishak Kara 
Author-X-Name-First: Gazi Ishak 
Author-X-Name-Last: Kara 
Author-Name: Levent Yildiran 
Author-X-Name-First: Levent 
Author-X-Name-Last: Yildiran 
Title: The Failure of Price Competition in the Turkish Credit Card Market 
Abstract:
 The failure of competition and the consequent high and sticky interest
 rates in credit card markets have recently been the subject of
 considerable debate and research. This paper presents the first regression
 testing for the existence of price competition in a credit card market to
 be estimated free of dynamic panel bias using recent quarterly data from
 Turkey. The estimation reveals that even though the effect of the cost of
 funds on credit card rates is statistically significant, it is very weak.
 The paper thus provides empirical evidence for the failure of price
 competition in the Turkish credit card market.
Journal: Emerging Markets Finance and Trade 
Pages: 23-35 
Issue: 0 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: banking, credit cards, price competition, system GMM, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q044R8663335V828 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akin, G. G.; A. F.
 Aysan; and L. Yildiran. 2009. "Transformation of the Turkish Financial
 Sector in the Aftermath of the 2001 Crisis." In >i>Turkish Economy in the
 Post-Crisis Era: The New Phase of Neo-Liberal Restructuring and
 Integration to the Global Economy>/i>, ed. Z. Onis and F. Senses, pp.
 73-100. London: Routledge.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>2</BIBL>        <BIBTEXT> Akin, G. G.; A. F. Aysan; G. I. Kara; and
 L. Yildiran. 2008. "Non-Price Competition in Credit Card Markets through
 Bundling and Bank Level Benefits." MPRA Paper, no. 17768.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Ausubel, L. M.
 1991. "The Failure of Competition in the Credit Card Market." >i>American
 Economic Review>/i> 81: 50-81.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>4</BIBL>        <BIBTEXT> Aysan, A. F., and N. A. Muslim. 2006.
 "Assessing the Competition in the Credit Card Market in Turkey: A New
 Empirical Evidence." In >i>International Management Development Research
 Yearbook>/i>, ed. K. Erdener and H. Talha, vol. 15, pp. 147-154.
 Hummelstown, PA: International Management Development Press.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT> Aysan, A. F.,
 and L. Yildiz. 2007. "The Regulation of the Credit Card Market in Turkey."
 >i>International Research Journal of Finance and Economics>/i> 2, no. 11:
 141-154.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Aysan, A. F; L. Yildiran; G. I. Kara; N. A. Muslim; and U. Dur.
 2008. "TÃƒÂ¼rkiye'de Kredi KartÃ„Â± SektÃƒÂ¶rÃƒÂ¼nde Yasal DÃƒÂ¼zenlemeler ve
 Rekabet." >i>Iktisat Isletme ve Finans>/i> 23, no. 265: 34-49.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>7</BIBL>	   <BIBTEXT> Bond, S. 2002.
 "Dynamic Panel Data Models: A Guide to Micro Data Methods and Practice."
 Institute for Fiscal Studies Working Paper 09/02. London.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Budde, S. 2001.
 >i>Card Industry Directory>/i>, 2002 ed. Chicago: Thomson Financial
 Media.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	     
 <BIBTEXT> Calem, P., and L. Mester, 1995, "Consumer Behavior and the
 Stickiness of Credit-Card Interest Rates." >i>American Economic Review>/i>
 85: 1327-1336.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>    
    <BIBTEXT> Calem, P.; M. Gordy; and L. Mester. 2006. "Switching Costs
 and Adverse Selection in the Market for Credit Cards: New Evidence."
 >i>Journal of Banking & Finance>/i> 30: 1653-1685.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>11</BIBL>	<BIBTEXT> Chakravorti, S. 2003.
 "Theory of Credit Card Networks: A Survey of the Literature." >i>Review of
 Network Economics, Concept Economics>/i> no. 2: 50-68.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Hansen, L. 1982.
 "Large Sample Properties of Generalized Method of Moments Estimators."
 >i>Econometrica>/i> 50, no. 3: 1029-1054.</BIBTEXT>	  </REF>      <REF>
	<BIBL>13</BIBL>        <BIBTEXT> Nickell, S. J. 1981. "Biases in
 Dynamic Models with Fixed Effects." >i>Econometrica>/i> 49:
 1417-1426.</BIBTEXT>	   </REF>      <REF>	    <BIBL>14</BIBL>	  
 <BIBTEXT> Shaffer, S., and L. Thomas. 2007. "A Reassessment of Market
 Power Among Credit Card Banks." >i>Applied Financial Economics>/i> 17:
 755-767.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Stiglitz, J. E., and A. Weiss. 1981. "Credit Rationing in
 Markets with Imperfect Information." >i>American Economic Review>/i>
 (June): 393-410.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>  
      <BIBTEXT> Windmeijer, F. 2005. "A Finite Sample Correction for the
 Variance of Linear Efficient Two-Step GMM Estimators." >i>Journal of
 Econometrics>/i> 126: 25-51.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:0:p:23-35




Template-Type: ReDIF-Article 1.0
Author-Name: Gokhan Karabulut 
Author-X-Name-First: Gokhan 
Author-X-Name-Last: Karabulut 
Author-Name: Mehmet Huseyin Bilgin 
Author-X-Name-First: Mehmet Huseyin 
Author-X-Name-Last: Bilgin 
Author-Name: Ayse Celikel Danisoglu 
Author-X-Name-First: Ayse Celikel 
Author-X-Name-Last: Danisoglu 
Title: Determinants of Currency Crises in Turkey 
Abstract:
 Currency crises have become a serious threat for developing countries,
 especially since the financial deregulation process and the collapse of
 the Bretton Woods system. In the past two decades, Turkey has experienced
 two major currency crises. This study aims to predict the determinants of
 currency crises in Turkey by using an ordered probit model. According to
 the results, short-term debt/GDP, real exchange rate, deposit interest
 rates, foreign exchange reserves/imports, and credit/deposit variables are
 all significant in explaining currency crises in Turkey.
Journal: Emerging Markets Finance and Trade 
Pages: 51-58 
Issue: 0 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: crises in Turkey, currency crises, ordered probit models, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R3U6257U520R910H 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> AkyÃƒÂ¼rek, C. 2006. "The
 Turkish Crisis of 2001: A Classic?" >i>Emerging Markets Finance and
 Trade>/i> 42, no. 1 (January-February): 5-32.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Alper, C. E. 2001. "The
 Turkish Liquidity Crisis of 2000: What Went Wrong?" >i>Russian and East
 European Finance and Trade>/i> 37, no. 6: 58-80.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>3</BIBL>	     <BIBTEXT> Berg, A., and C. Pattillo.
 1999. "Are Currency Crises Predictable? A Test." >i>IMF Staff Papers>/i>
 46, no. 2: 107-121.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>
	<BIBTEXT> Cesmeci, O., and A. O. Onder. 2008. "Determinants of
 Currency Crises in Emerging Markets: The Case of Turkey." >i>Emerging
 Markets Finance & Trade>/i> 44, no. 5 (September-October):
 54-67.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> Eichengreen, B.; A. Rose; and C. Wyplosz. 1995. "Exchange Market
 Mayhem: The Antecedents and Aftermath of Speculative Attacks." >i>Economic
 Policy>/i> 10, no. 21: 249-312.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>6</BIBL>        <BIBTEXT> Frankel, J. A., and A. K. Rose. 1996.
 "Currency Crashes in Emerging Markets: An Empirical Treatment."
 International Finance Discussion Paper 534, Board of Governors of the
 Federal Reserve System, Washington, DC.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>7</BIBL>	    <BIBTEXT> Kaminsky, G. L., and C. M. Reinhart.
 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments
 Problems." >i>American Economic Review>/i> 89, no. 3: 473-485.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>8</BIBL>	   <BIBTEXT> Kaminsky, G.
 L.; S. Lizondo; and C. M. Reinhart. 1998. "Leading Indicators of Currency
 Crises." >i>IMF Staff Papers>/i> 45, no. 1: 1-48.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>9</BIBL>	      <BIBTEXT> Kruger, Mark; Patrick
 Osakwe; and Jennifer Page. 1998. Fundamentals, Contagion vs Currency
 Crisis: An Emperical Analysis." Bank of Canada Working Papers no.
 10.</BIBTEXT>	    </REF>	<REF>	     <BIBL>10</BIBL>	   
 <BIBTEXT> Krugman, P. 1979. "A Model of Balance-of-Payments Crises."
 >i>Journal of Money, Credit, and Banking>/i> 11 (August):
 311-325.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Krugman, P. 1998, >i>What Happened in Asia?>/i> Cambridge, MA:
 MIT Press.</BIBTEXT>	   </REF>      <REF>	    <BIBL>12</BIBL>	  
 <BIBTEXT> Mariano, R. S.; B. N. Gultekin; S. Ozmucur; T. Shabbir; and E.
 Alper. 2004. "Prediction of Currency Crises: Case of Turkey." >i>Review of
 Middle East Economics and Finance>/i> 2, no. 2: 87-107.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> McKelvey, R.,
 and W. Zavoina. 1975 "A Statistical Model for the Analysis of Ordinal
 Level Dependent Variables." >i>Journal of Mathematical Sociology>/i> 4:
 103-120.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Obstfeld, M. 1986. "Rational and Self-Fulfilling Balance of
 Payment Crises." >i>American Economic Review>/i> 76: 72-81.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Obstfeld, M.
 1994. "The Logic of Currency Crises." NBER Working Paper 4640.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>16</BIBL>	    <BIBTEXT> Salant, S.,
 and D. Henderson. 1978. "Market Anticipation of Government Policy and the
 Price of Gold." >i>Journal of Political Economy>/i> 86: 627-648.</BIBTEXT>
      </REF>	  <REF>        <BIBL>17</BIBL>	      <BIBTEXT> Ucer, M.;
 C. Rijckeghem; and R. Yolalan. 1998. "Leading Indicators of Currency
 Crises: A Brief Literature Survey and an Application to Turkey." >i>YapÃ„Â±
 Kredi Economic Review>/i> 9, no. 2: 3-25.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:0:p:51-58




Template-Type: ReDIF-Article 1.0
Author-Name: Meltem Ucal 
Author-X-Name-First: Meltem 
Author-X-Name-Last: Ucal 
Author-Name: Asli Alici 
Author-X-Name-First: Asli 
Author-X-Name-Last: Alici 
Title: Is Fiscal Policy Sustainable in Turkey? 
Abstract:
 The issue of the budget deficit has become one of the main themes of the
 economic policy implemented in Turkey and backed by the International
 Monetary Fund (IMF) following the economic crisis of 2001. The main
 motivation for this study is the question of whether or not the
 government's financial policy is sustainable and satisfies the
 government's long-term budget constraint. The empirical analysis is based
 on tests of whether government expenditure and revenue are cointegrated,
 considering the economic liberalization period of 1989-2008. The stability
 of fiscal policy is examined using the Johansen multivariate cointegration
 method. The findings of the sustainability tests indicate that fiscal
 policy from the liberalization of the economy up until the 2001 economic
 crisis was not sustainable.
Journal: Emerging Markets Finance and Trade 
Pages: 83-93 
Issue: 0 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: budget deficit, cointegration, financial policy, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T55134685V58U003 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> AgÃƒÂ©nor, P. R.; J. T.
 Henning; M. Verghis; and E. Yeldan. 2006. "Disinflation, Fiscal
 Sustainability, and Labor Market Adjustment in Turkey." World Bank Policy
 Research Working Paper, no. 3804.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> AkÃƒÂ§ay, O. C.; C. E. Alper; and S.
 ÃƒÂ–zmucur. 2001. "Budget Deficit, Inflation and Debt Sustainability:
 Evidence from Turkey (1970-2000)." Working Paper no. ISS/EC 2001-12.
 Department of Economics, Bogazici University, Istanbul.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Alici, A., and M.
 Ucal. 2003. "Foreign Direct Investment, Exports and Output Growth of
 Turkey: Causality Analysis." Paper presented at the fifth annual
 conference of the European Trade Study Group (ETSG) Universidad Carlos III
 de Madrid. Available at >a target="_blank"
 href='http://www.etsg.org/ETSG2003/papers/alici.pdf'>www.etsg.org/ETSG2003
 /papers/alici.pdf>/a></BIBTEXT>      </REF>	  <REF>       
 <BIBL>4</BIBL>        <BIBTEXT> Binay, Ã…Âž. 2003. "Some Issues in Fiscal
 Policy and Central Banking: The Case of Turkey." >i>BIS paper>/i>, no. 20
 (October): 245-259.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>
	<BIBTEXT> Budina, N., and S. Wijnbergen. 2009. "Quantitative
 Approaches to Fiscal Sustainability Analysis: A Case Study of Turkey since
 the Crisis of 2001." >i>World Bank Economic Review>/i> 23, no. 1:
 119-140.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Burnside, C. 2005. >i>Fiscal Sustainability in Theory and
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 1998. "The Relationship Between Inflation and the Budget Deficit in
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 743-765.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
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 Implications of the Present Value Borrowing Constraint." >i>Journal of
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:0:p:83-93




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Huseyin Bilgin 
Author-X-Name-First: Mehmet Huseyin 
Author-X-Name-Last: Bilgin 
Author-Name: Hakan Danis 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Danis 
Title: Guest Editors' Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 4-6 
Issue: 0 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y76K358035686662 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ausubel, L. M. 1991
 "The Failure of Competition in the Credit Card Market." >i>American
 Economic Review>/i>, 81, no. 1: 50-81.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>2</BIBL>	   <BIBTEXT> Barclay, M., and J. Warner. 1993.
 "Stealth Trading and Volatility: Which Trades Move Prices?" >i>Journal of
 Financial Economics>/i> 34, no. 3: 281-305.</BIBTEXT>	    </REF>     
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 1989. "Agency Costs, Net Worth, and Business Fluctuations." >i>American
 Economic Review>/i> 79, no. 1: 14-31.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>4</BIBL>	  <BIBTEXT> Bernanke, B.; M. Gertler; and S.
 Gilchrist. 1996. "The Financial Accelerator and the Flight to Quality."
 >i>Review of Economics and Statistics>/i> 78, no. 1: 1-15.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Bernanke, B.; M.
 Gertler; and S. Gilchrist. 1999. "The Financial Accelerator in a
 Quantitative Business Cycle Framework." In >i>Handbook of
 Macroeconomics>/i>, vol. 1, ed. J. B. Taylor and M. Woodford, 1341-1393.
 Amsterdam: Elsevier.</BIBTEXT>      </REF>	 <REF>	     
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 Rationing in Markets with Imperfect Information." >i>American Economic
 Review>/i> 71, no. 3: 393-410.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:46:y:2010:i:0:p:4-6




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chen  Chang 
Author-X-Name-First: Shu-Chen  
Author-X-Name-Last: Chang 
Title: Estimating Relationships Among FDI Inflow, Domestic Capital, and Economic Growth Using the Threshold Error Correction Approach 
Abstract:
 This paper investigates both long- and short-term relationships among
 foreign direct investment (FDI), domestic capital, and economic growth in
 Taiwan using the threshold error-correction approach. The results show a
 long-term equilibrium relationship among the three variables, which
 remains stable with asymmetric adjustments. Three short-term relationships
 are found: (1) promoting growth may stimulate domestic capital
 accumulation; (2) increasing FDI inflow may stimulate investment from
 domestic sources rather than crowd out the formation of capital; and (3)
 FDI inflows directly influence growth through stimulating domestic
 investment.
Journal: Emerging Markets Finance and Trade 
Pages: 6-15 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: asymmetric adjustment, economic growth, foreign direct investment, threshold error-correction model, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=3510316320195176 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agosin, M. R., and R.
 Mayer. 2000. "Foreign Investment in Developing Countries: Does It Crowd in
 Domestic Investment?" UNCTAD Discussion Papers 146, United Nations
 Conference on Trade and Development.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>2</BIBL>	 <BIBTEXT> Aitken, B., and A. Harrison. 1999. "Do
 Domestic Firms Benefit from Foreign Investment? Evidence from Venezuela."
 >i>American Economic Review>/i> 89, no. 3: 605-618.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Akinlo, A. E. 2004.
 "Foreign Direct Investment and Growth in Nigeria an Empirical
 Investigation." >i>Journal of Policy Modeling>/i> 26: 627-639.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>4</BIBL>	   <BIBTEXT> Balke, N., and
 T. Fomby. 1997. "Threshold Cointegration." >i>International Economic
 Review>/i> 38: 627-645.</BIBTEXT>	</REF>	    <REF>	
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  <REF>        <BIBL>6</BIBL>	     <BIBTEXT> Bende-Nabende, A., and J. L.
 Ford. 1998. "FDI, Policy Adjustments and Endogenous Growth: Multiplier
 Effects from a Small Dynamic Model for Taiwan, 1959-1995." >i>World
 Development>/i> 26: 1315-1330.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>7</BIBL>        <BIBTEXT> Borensztein, E.; J. De Gregorio; and J. W.
 Lee. 1998. "How Does Foreign Direct Investment Affect Economic Growth?"
 >i>Journal of International Economics>/i> 45: 115-135.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Chan, K. S. 1993.
 "Consistency and Limiting Distribution of the Least Squares Estimator of a
 Threshold Autoregressive Model." >i>Annals of Statistics>/i> 21:
 520-533.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Chan, V. L. 2000. "Foreign Direct Investment and Economic Growth
 in Taiwan's Manufacturing Industries." In >i>The Role of Foreign Direct
 Investment in East Asian Economic Development>/i>, ed. Takatoshi Ito and
 Anne O. Krueger, 349-366. National Bureau of Economic Research. Chicago:
 University of Chicago Press.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>10</BIBL>	<BIBTEXT> De Mello, L. 1997. "Foreign Direct
 Investment in Developing Countries and Growth: A Selective Survey."
 >i>Journal of Development Studies>/i> 34, no. 1: 1-34.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Enders, W., and
 P. L. Siklos. 2001. "Cointegration and Threshold Adjustment." >i>Journal
 of Business and Economic Statistics>/i> 29: 166-176.</BIBTEXT>      </REF>
      <REF>	   <BIBL>12</BIBL>	  <BIBTEXT> Feenstra, R. C. 1999.
 "Facts and Fallacies About Foreign Direct Investment." In >i>International
 Capital Flows>/i>, ed. M. Feldstein, pp. 331-350. National Bureau of
 Economic Research. Chicago: University of Chicago Press.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Fiaschi, D., and
 A. M. Lavezzi. 2007a. "Appropriate Technology in a Solovian Nonlinear
 Growth Model." >i>Oxford Review of Economic Policy>/i> 23:
 115-133.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Fiaschi, D., and A. M. Lavezzi. 2007b. "Nonlinear Economic
 Growth: Some Theory and Cross-Country Evidence." >i>Journal of Development
 Economics>/i> 84: 270-290.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>15</BIBL>	<BIBTEXT> Johansen, S. 1988. "Statistical Analysis
 of Cointegration Vectors." >i>Journal of Economic Dynamics and Control>/i>
 12: 231-254.</BIBTEXT>      </REF>	 <REF>	      <BIBL>16</BIBL>	   
  <BIBTEXT> Kapetanios, G.; Y. C. Shin; and A. Snell. 2003. "Testing for a
 Unit Root in the Nonlinear STAR Framework." >i>Journal of Econometrics>/i>
 112: 359-379.</BIBTEXT>      </REF>	  <REF>        <BIBL>17</BIBL>	   
   <BIBTEXT> Kwiatkowski, D.; P. C. B. Phillips; P. Schmidt; and Y. Shin.
 1992. "Testing the Null Hypothesis of Stationarity Against the Alternative
 of a Unit Root." >i>Journal of Econometrics>/i> 54: 159-178.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>18</BIBL>	  <BIBTEXT> Nair-Reichert,
 U., and D. Weinhold. 2001. "Causality Tests for Cross-Country Panels: New
 Look at FDI and Economic Growth in Developing Countries." >i>Oxford
 Bulletin of Economics and Statistics>/i> 63, no. 2: 151-171.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>19</BIBL>	  <BIBTEXT> Ramsey, J. B.,
 and P. Rothman. 1996. "Time Irreversibility and Business Cycle Asymmetry."
 >i>Journal of Money, Credit and Banking>/i> 28: 3-20.</BIBTEXT>     
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 C. Kottaridi. 2008. "Foreign Direct Investment, Human Capital and
 Nonlinearities in Economic Growth." Rimini Centre for Economic Analysis,
 Working Paper Series 20-08.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>21</BIBL>	<BIBTEXT> Stevens, G. V. G., and R. E. Lipsey.
 1992. "Interactions Between Domestic and Foreign Investment." >i>Journal
 of International Money and Finance>/i> 11: 40-62.</BIBTEXT>	  </REF>   
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 Chih-Chiang Hsu. 2008. "Does Foreign Direct Investment Promote Economic
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 Bulletin>/i> 15, no. 12: 1-10.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:6-15




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chung  Nieh 
Author-X-Name-First: Chien-Chung  
Author-X-Name-Last: Nieh 
Author-Name: Hwey-Yun  Yau 
Author-X-Name-First: Hwey-Yun  
Author-X-Name-Last: Yau 
Title: The Impact of Renminbi Appreciation on Stock Prices in China 
Abstract:
 Since removal of the peg in July 2005, China has entered a new era of a
 managed floating exchange rate system. Although many observers have raised
 concerns about the impact of such a policy change on China's trade
 surplus, less attention has been paid to its effects on financial markets.
 This paper investigates the impact of recent renminbi appreciation on
 stock prices in China since removal of the peg, using threshold
 cointegration and momentum threshold error-correction model (M-TECM). The
 results clearly illustrate that no short-run causal relation exists, and
 an asymmetric causal relationship running from the renminbi/U. S. dollar
 exchange rate to Chinese Shanghai A-share stock prices in the long run is
 based on M-TECM. Policy and the broader implications of the findings are
 discussed.
Journal: Emerging Markets Finance and Trade 
Pages: 16-26 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: asymmetric causality, exchange rates, momentum threshold error-correction model (M-TECM), stock prices, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=3M8P8066T6658479 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 <BIBL>26</BIBL>	<BIBTEXT> Taylor, A. M. 2001. "Potential Pitfalls
 for the Purchasing-Power-Parity Puzzle? Sampling and Specification Biases
 in Mean-Reversion Tests of the Law of One Price." >i>Econometrica>/i> 69:
 473-498.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:16-26




Template-Type: ReDIF-Article 1.0
Author-Name: Fengyi  Lin 
Author-X-Name-First: Fengyi  
Author-X-Name-Last: Lin 
Author-Name: Liming  Guan 
Author-X-Name-First: Liming  
Author-X-Name-Last: Guan 
Author-Name: Wenchang  Fang 
Author-X-Name-First: Wenchang  
Author-X-Name-Last: Fang 
Title: Critical Factors Affecting the Evaluation of Information Control Systems with the COBIT Framework 
Abstract:
 This paper empirically investigates the factors affecting auditors in
 evaluating information technology (IT) control structures by employing the
 COBIT framework, a popular IT internal control with integrated platform,
 and examines the relationship between monitoring function and other COBIT
 dimensions. The results of our empirical analysis indicate that key
 factors of IT governance endorsed by certified public accountants (CPAs)
 in Taiwan match fairly well with those prescribed in the COBIT framework.
 CPAs can utilize COBIT as a guideline for developing their approach to
 internal control structure and further limiting their audit liabilities.
Journal: Emerging Markets Finance and Trade 
Pages: 42-55 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: COBIT, COSO report, internal control framework, IT governance, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=530J41374W8H4N52 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Archambeault, D.; J.
 Fulmer; and R. Turpin. 2008. "The Changing Components of the Corporate
 Annual Report: An Update." >i>Commercial Lending Review>/i> (March/April):
 27-48.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT> Biro, M.; C. Deak; J. Ivanyos; and R. Messnarz. 2006. "From
 Compliance to Business Success: Improving Outsourcing Service Controls by
 Adopting External Regulatory Requirements." >i>Software Process
 Improvement and Practice>/i>, no. 11: 239-249.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Boritz, J. 2005. "IS
 Practitioners' Views on Core Concepts of Information Integrity?"
 >i>International Journal of Accounting Information Systems>/i> 6, no. 4:
 260-279.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Bowen, P.; M. Cheung; and F. Rohde. 2007. "Enhancing IT
 Governance Practices: A Model and Case Study of an Organization's
 Efforts." >i>International Journal of Accounting Information System>/i> 8,
 no. 3: 191-221.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>    
    <BIBTEXT> Broderick, J. 2006. "ISMS, Security Standards and Security
 Regulations." >i>Information Security Technical Report>/i> 11:
 26-31.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT> Che, P.; Z. Bu; R. Hou; and X. Shi. 2008. "Auditing Revenue
 Assurance Information Systems for Telecom Operators." >i>IFIP
 International Federation for Information Processing:>/i>
 1597-1602.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> COBIT 4.1. Excerpt-Executive Summary Framework, COBIT 4.1.
 Available at >a target="_blank"
 href='http://www.isaca.org/Template.cfm'>www.isaca.org/Template.cfm>/a></B
 IBTEXT>      </REF>	  <REF>        <BIBL>8</BIBL>	     <BIBTEXT>
 Committee of Sponsoring Organizations of the Treadway Commission (COSO).
 2004. "Enterprise Risk Management-Integrated Framework." Available at >a
 target="_blank" href='http://www.coso.org'>www.coso.org>/a></BIBTEXT>	   
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Hair, J.; R.
 Anderson; R. Tatham; and W. Black. 1995. >i>Multivariate Data Analysis
 with Readings.>/i> 4th ed. London: Prentice Hall.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>10</BIBL>        <BIBTEXT> Hardy, G. 2006. "Using IT
 Governance and COBIT to Deliver Value with IT and Respond to Legal,
 Regulatory and Compliance Challenges." >i>Information Security Technical
 Report:>/i> 55-61.</BIBTEXT>	   </REF>      <REF>	    <BIBL>11</BIBL>
	<BIBTEXT> Hawkins, K.; S. Alhajjaj; and S. Kelley. 2003. "Using
 COBIT to Secure Information Assets." >i>Journal of Government Financial
 Management>/i> 52, no. 2: 22-32.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>12</BIBL>	<BIBTEXT> Huang, S.; P. Hsieh; H. Tsao; and P. Hsu.
 2008. "A Structural Study of Internal Control for ERP System Environments:
 A Perspective from the Sarbanes-Oxley Act." >i>International Journal of
 Management and Enterprise Development>/i> 5, no.1: 102-121.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> IT Governance
 Institute (ITGI). 2004. >i>Managing Enterprise Information Integrity.>/i>
 Rolling Meadows, IL.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>14</BIBL>	<BIBTEXT> Kaiser, H. F., and J. Rice. 1974. "Little
 Jiffy, Mark IV." >i>Educational and Psychological Measurement>/i> 34:
 111-117.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Lainhart, J. 2001. "An IT Assurance Framework for the Future."
 >i>Ohio CPA Journal>/i> (January-March): 19-23.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Richardson, R. 2007. "2007
 CSI Computer Crime and Security Survey." >i>Computer Security
 Institute:>/i> 1-28.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>17</BIBL>	<BIBTEXT> Robinson, N. 2005. "IT Excellence Starts
 with Governance." >i>Journal of Investment Compliance>/i> 6, no. 3:
 45-49.</BIBTEXT>      </REF>	   <REF>	<BIBL>18</BIBL>       
 <BIBTEXT> Sahibudin, S.; M. Sharifi; and M. Ayat. 2008, "Combining ITIL,
 COBIT and ISO/IEC 27002 in Order to Design a Comprehensive IT Framework in
 Organizations." >i>Proceedings of the Second Asia International Conference
 on Modelling and Simulation, AMS:>/i> 749-753.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Tuttle, B., and Vandervelde,
 S. 2007. "An Empirical Examination of COBIT as an Internal Control
 Framework for Information Technology." >i>International Journal of
 Accounting Information Systems>/i> 8: 240-263.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> von Solms, B. 2005.
 "Information Security Governance: COBIT or ISO 17799 or Both?"
 >i>Computers & Security>/i> 24: 99-104.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:42-55




Template-Type: ReDIF-Article 1.0
Author-Name: Yeong-Jia  Goo 
Author-X-Name-First: Yeong-Jia  
Author-X-Name-Last: Goo 
Author-Name: Dar-Hsin  Chen 
Author-X-Name-First: Dar-Hsin  
Author-X-Name-Last: Chen 
Author-Name: Sze-Hsun Sylcien Chang 
Author-X-Name-First: Sze-Hsun Sylcien 
Author-X-Name-Last: Chang 
Author-Name: Chi-Feng  Yeh 
Author-X-Name-First: Chi-Feng  
Author-X-Name-Last: Yeh 
Title: A Study of the Disposition Effect for Individual Investors in the Taiwan Stock Market 
Abstract:
 We examine the disposition effect and identify its potential attributes
 for individual Taiwanese investors. The results indicate several
 interesting findings. First, only 26 percent of Taiwanese individual
 investors report slight gains in a bull market. Second, level of education
 is significantly associated with the disposition effect. Investors holding
 college or advance degrees have a lower disposition effect. Third, the
 status of gains or losses is also related to the disposition effect. The
 disposition effect is stronger in the losers' group. Finally, three
 preliminary elements, namely, avoiding regret, maximizing profits, and
 seeking pride, are highly correlated with respect to each other and this
 observation is backed up by the concept of the disposition effect.
Journal: Emerging Markets Finance and Trade 
Pages: 108-119 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: avoiding regret, confirmatory factor analysis (CFA), disposition effect, prospect theory, seeking pride, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=7026087L45321V11 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Barber, B. M.; Y.-T.
 Lee; Y.-J. Liu; and T. Odean. 2007. "Is the Aggregate Investor Reluctant
 to Realise Losses? Evidence from Taiwan." >i>European Financial
 Management>/i> 13, no. 3: 423-447.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>2</BIBL>        <BIBTEXT> DeVellis, R. F. 2003. >i>Scale
 Development: Theory and Applications>/i>. 2d ed. Thousand Oaks, CA:
 Sage.</BIBTEXT>      </REF>	  <REF>        <BIBL>3</BIBL>	    
 <BIBTEXT> Ferris, S.; R. Haugen; and A. Anil Makhija. 1988. "Predicting
 Contemporary Volume with Historic Volume at Differential Price-Levels:
 Evidence Supporting the Disposition Effect." >i>Journal of Finance>/i> 43,
 no. 3: 677-697.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>    
    <BIBTEXT> Festinger, L. 1957. >i>A Theory of Cognitive Dissonance>/i>.
 Stanford: Stanford University Press.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>5</BIBL>	 <BIBTEXT> Grinblatt, B., and M. Han. 2004.
 "Prospect Theory, Mental Accounting, and Momentum." Yale ICF working
 paper.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT> Hens, T., and M. Vlcek. 2005. "Does Prospect Theory Explain the
 Disposition Effect?" NCCR-Finrisk working paper.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>7</BIBL>	     <BIBTEXT> Jegadeesh, N., and S.
 Titman. 1993. "Return to Buying Winners and Selling Losers: Implications
 for Stock Market Efficiency." >i>Journal of Finance>/i> 48:
 65-91.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT> Joreskog, K. G., and D. Sorbom. 1996. >i>LISREL 8: User's
 Reference Guide>/i>. Chicago: Chicago Scientific Software
 International.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	   
   <BIBTEXT> Kahneman, D., and M. W. Riepe. 1998. "Aspect of Investor
 Psychology." >i>Journal of Portfolio Management>/i> 24: 52-65.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>10</BIBL>	    <BIBTEXT> Kahneman, D.,
 and A. Tversky. 1979. "Prospect Theory: An Analysis of Decision under
 Risk." >i>Econometrica>/i> 47: 263-291.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>11</BIBL>	     <BIBTEXT> Lakonishok, J., and S. Smidt. 1986.
 "Volume for Winners and Losers: Taxation and Other Motives for Stock
 Trading." >i>Journal of Finance>/i> 41: 951-974.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>12</BIBL>	      <BIBTEXT> McClelland, D. C.; J. W.
 Atkinson; R. W. Clark; and E. L. Lowell. 1953. >i>The Achievement
 Motive>/i>. New York: Appleton-Century-Crofts.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT> Muermann, A., and J.
 Volkman. 2006. "Regret, Pride, and the Disposition Effect." University of
 Pennsylvania working study.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>14</BIBL>	<BIBTEXT> Odean, T. 1998. "Are Investors Reluctant
 to Realize Their Losses?" >i>Journal of Finance>/i> 53, no. 5:
 1775-1798.</BIBTEXT>	   </REF>      <REF>	    <BIBL>15</BIBL>	  
 <BIBTEXT> Peter, J. Paul. 1981. "Construct Validity: A Review of Basic
 Issues and Marketing Practices." >i>Journal of Marketing Research>/i> 18
 (May): 133-145.</BIBTEXT>	</REF>	    <REF>	 <BIBL>16</BIBL>   
     <BIBTEXT> Schlarbaum, G. G.; W. G. Lewellen; and R. C. Lease. 1978.
 "Realized Returns on Common Stock Investments: The Experience of
 Individual Investors." >i>Journal of Business>/i> 51: 299-325.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>17</BIBL>	    <BIBTEXT> Shefrin, H.
 2001. "Behavioral Corporate Finance." >i>Journal of Applied Corporate
 Finance>/i> 14: 113-124.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>18</BIBL>	<BIBTEXT> Shefrin, H., and M. Statman. 1985. "The
 Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and
 Evidence." >i>Journal of Finance>/i> 40: 777-790.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>19</BIBL>        <BIBTEXT> Shu, P. G.; Y. H. Yeh; S.
 B. Chiu; and H. C. Chen. 2005. "Are Taiwanese Individual Investors
 Reluctant to Realize Their Losses." >i>Pacific-Basin Finance Journal>/i>
 13: 201-223.</BIBTEXT>      </REF>	 <REF>	      <BIBL>20</BIBL>	   
  <BIBTEXT> Sung, S. 2007. "The Effect of Pride and Regret on Investors'
 Trading Behavior." >i>Wharton Research Scholars Journal>/i>.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>21</BIBL>	  <BIBTEXT> Thaler, R. H.
 1985. "Mental Accounting and Consumer Choice." >i>Marketing Science>/i> 4:
 199-214.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Weber, M., and C. F. Camerer. 1998. "The Disposition Effect in
 Securities Trading: An Experimental Analysis." >i>Journal of Economic
 Behavior and Organization>/i> 33: 167-184.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:108-119




Template-Type: ReDIF-Article 1.0
Author-Name: Wenchang  Fang 
Author-X-Name-First: Wenchang  
Author-X-Name-Last: Fang 
Title: Special Issue on Market Development and Investment Strategies in Asia 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 4-5 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=AP78348016J001X1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:4-5




Template-Type: ReDIF-Article 1.0
Author-Name: Chuang-Yuang  Lin 
Author-X-Name-First: Chuang-Yuang  
Author-X-Name-Last: Lin 
Author-Name: Ruey-Shan  Wu 
Author-X-Name-First: Ruey-Shan  
Author-X-Name-Last: Wu 
Author-Name: Tsai  Chen 
Author-X-Name-First: Tsai  
Author-X-Name-Last: Chen 
Title: Taiwan's Foreign Exchange MarketÃ¢Â€Â”Volatile but Still Efficient? 
Abstract:
 This paper investigates the importance of return heterogeneity and
 volatility for the foreign exchange rate on the New Taiwan (NT) dollar in
 terms of the U. S. dollar. We describe the price behavior of the foreign
 exchange market through the Power GARCH (1,1) and EGARCH (1,1) models. The
 time knots of market events are found to have deep impacts on the behavior
 of both market agents and the intraday characteristics of the price
 process. Evidence also reveals that Taiwan's foreign exchange market is
 semi-strong efficient.
Journal: Emerging Markets Finance and Trade 
Pages: 34-41 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: intraday foreign exchange, market microstructure, Taiwan, volatility, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=CNK8600552682466 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bauwens, L., and P.
 Giot. 2001. >i>Econometric Modeling of Stock Market Intraday Activity>/i>.
 Boston: Kluwer Academic.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>2</BIBL>        <BIBTEXT> Bloomfield, R., and M. O'Hara. 1999.
 "Market Transparency: Who Wins and Who Loses?" >i>Review of Financial
 Studies>/i> 12: 5-35.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>3</BIBL>        <BIBTEXT> Campbell, J. Y.; A. W. Lo; and F.
 Mackinlay. 1997. >i>The Econometrics of Financial Markets.>/i> Princeton,
 NJ: Princeton University Press.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>4</BIBL>        <BIBTEXT> Chang, M. H.; C. M. Huang; T. Y. Lin; and
 Y. Lin. 2006. "Intraday Trading Patterns and Day-of-the-week in Stock
 Index Options Markets: Evidence from Emerging Markets." >i>Journal of
 Financial Management & Analysis>/i> 19: 32-45.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Cheng, M. H., and H. H. Kang.
 2007. "Price-Formation Process of an Emerging Futures Market: Call Auction
 Versus Continuous Auction." >i>Emerging Markets Finance & Trade>/i> 43,
 no. 1: 74-97.</BIBTEXT>      </REF>	  <REF>        <BIBL>6</BIBL>	   
  <BIBTEXT> Ding, Z.; C. W. J. Granger; and R. F. Engle. 1993. "A Long
 Memory Property of Stock Market Return and a New Model." >i>Journal of
 Empirical Finance>/i> 1: 83-106.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>7</BIBL>        <BIBTEXT> Engle, R., and J. Russell. 1998.
 "Autoregressive Conditional Duration: A New Model for Irregularly Spaced
 Transaction Data." >i>Econometrica>/i> 66: 1127-1162.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Fama, E. 1970.
 "Efficient Capital Markets: A Review of Theory and Empirical Work."
 >i>Journal of Finance>/i> 25: 383-417.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>9</BIBL>	   <BIBTEXT> Fama, E. 1991. "Efficient Capital
 Markets: II." >i>Journal of Finance>/i> 46: 1575-1618.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Gau, Y. F., and
 M. Hua. 2007. "Intraday Exchange Rate Volatility: ARCH, News and
 Seasonality Effects." >i>Quarterly Review of Economics & Finance>/i> 47:
 135-158.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Goodhart, C. A. E., and M. O'Hara. 1997. "High Frequency Data in
 Financial Markets: Issues and Applications." >i>Journal of Empirical
 Finance>/i> 4: 73-114.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>12</BIBL>	<BIBTEXT> Hua, M.; and Y. F. Gau. 2006.
 "Determinants of Periodic Volatility of Intraday Exchange Rates in the
 Taipei FX Market." >i>Pacific-Basin Finance Journal>/i> 14:
 193-208.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Lancaster, T. 1990. >i>The Econometric Analysis of Transition
 Data.>/i> Cambridge: Cambridge University Press.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>14</BIBL>	      <BIBTEXT> Lee, M. C., and C. D. Chen.
 2005. "The Intraday Behaviors and Relationships with Its Underlying
 Assets: Evidence on Option Market in Taiwan." >i>International Review of
 Financial Analysis>/i> 14, no. 5: 587-603.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Lee, R. 1998. >i>What Is an
 Exchange?>/i> Oxford: Oxford University Press.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Madhavan, A. 2000. "Market
 Microstructure: A Survey." >i>Journal of Financial Studies>/i> 10:
 175-203.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Malkiel, B. G. 1996. >i>A Random Walk Down Wall Street.>/i> New
 York: Norton.</BIBTEXT>      </REF>	  <REF>        <BIBL>18</BIBL>	   
   <BIBTEXT> McGroarty, F. L.; F. J. McGroarty; and A. G. Owain. 2006.
 "Microstructure Effects, Bid-ask Spreads and Volatility in the Spot
 Foreign Exchange Market Pre- and Post-EMU." >i>Global Finance Journal>/i>
 17, no. 1: 23-49.</BIBTEXT>	  </REF>      <REF>	   <BIBL>19</BIBL> 
       <BIBTEXT> O'Hara, M. 1995. >i>Market Microstructure Theory.>/i>
 Oxford: Blackwell.</BIBTEXT>	   </REF>      <REF>	    <BIBL>20</BIBL>
	<BIBTEXT> Schwert, W. 1989. "Stock Volatility and Crash of '87."
 >i>Review of Financial Studies>/i> 3: 77-102.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT> Taylor, S. J. 1986.
 >i>Modelling Financial Time Series.>/i> Chichester, UK: Wiley.</BIBTEXT>  
    </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:34-41




Template-Type: ReDIF-Article 1.0
Author-Name: Yeong-Jia  Goo 
Author-X-Name-First: Yeong-Jia  
Author-X-Name-Last: Goo 
Author-Name: Feng-Huei  Chang 
Author-X-Name-First: Feng-Huei  
Author-X-Name-Last: Chang 
Title: Is There a Favoritism Strategy in Taiwan Mutual-Found Companies? 
Abstract:
 This paper investigates whether Taiwan mutual-fund companies actively
 pursue a corporate-level strategy of enhancing the performance of
 "high-value" funds (i.e., high fee-ratio funds or high past performers) at
 the expense of other "low-value" funds belonging to the same companies.
 The results show a significant difference between high- and low-value
 funds within the same fund families and that this difference favors the
 high past-perorming funds. The future incremental cash inflows from these
 high-value funds indicate that fund companies indeed benefit from the
 subsidized strategy. Our findings highlight the potential for agency
 problems and the importance of corporate and fund governance in the Taiwan
 asset-management industry.
Journal: Emerging Markets Finance and Trade 
Pages: 87-95 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: favoritism, fund family strategy subsidization, mutual fund, mutual fund family, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E4P544U842825141 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Brown, K.; W. V.
 Harlow; and L. Starks. 1996. "Of Tournaments and Temptations: An Analysis
 of Managerial Incentives in the Mutual Fund Industry." >i>Journal of
 Finance>/i> 51: 85-110.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>2</BIBL>        <BIBTEXT> Chen, Y. H., and S. P. Tan. 2004. "Insight
 to the Black Hole of Mutual Funds, Five Big Traps in Taiwan." >i>Common
 Wealth Magazine>/i>, no. 292 (February), (in Chinese).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Chevalier, J.,
 and G. Ellison. 1997. "Risk Taking by Mutual Funds as a Response to
 Incentives." >i>Journal of Political Economy>/i> 105: 1167-1200.</BIBTEXT>
      </REF>	  <REF>        <BIBL>4</BIBL>	     <BIBTEXT> Gaspar, J.
 M.; M. Massa; and P. Matos. 2006. "Favoritism in Mutual Fund Families?
 Evidence on Strategic Cross-Fund Subsidization." >i>Journal of Finance>/i>
 61, no.1: 73-104.</BIBTEXT>	  </REF>      <REF>	   <BIBL>5</BIBL>  
      <BIBTEXT> Guedj, I., and Ja. Papastaikoudi. 2004. "Can Mutual Funds
 Families Affect the Performance of Their Funds?" Working paper,
 Massachusetts Institute of Technology.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>6</BIBL>	   <BIBTEXT> Huij J., and M. Verbeek. 2007.
 "Spillover Effects of Marketing in Mutual Fund Families." Working paper,
 RSM Erasmus University.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT> Khorana A., and H. Servaes. 1999. "The
 Determinants of Mutual Fund Starts." >i>Review of Financial Studies>/i>
 12: 1043-1074.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	   
   <BIBTEXT> Li, L. C., and L. Lin. 2004. "American Mutual Fund Companies
 Lie to Their Investors. How About Taiwan?" >i>Economic Daily News>/i>
 (February 8), p. B2 (in Chinese).</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>9</BIBL>        <BIBTEXT> Mamaysky, H., and M. Spiegel. 2001. "A
 Theory of Mutual Funds: Optimal Fund Objectives and Industry
 Organization." Working paper, Yale School of Management.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Massa, M. 1998.
 "Why So Many Mutual Funds? Mutual Fund Families, Market Segmentation and
 Financial Performance." Working paper, INSEAD.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Massa, M. 2003. "How Do
 Family Strategies Affect Fund Performance? When Performance Maximization
 Is Not the Only Game in Town." >i>Journal of Financial Economics>/i> 67:
 249-304.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Nanda, V. 2004. "Family Values and the Star Phenomenon:
 Strategies of Mutual Fund Families." >i>Review of Financial Studies>/i>
 17, no. 3: 667-698.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>13</BIBL>	<BIBTEXT> Wang, W. Y. 2006. "Enhancing the
 Governance for Mutual Funds." >i>Economic Daily News>/i> (July, p. B2 (in
 Chinese).</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:87-95




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Hua  Lin 
Author-X-Name-First: Yi-Hua  
Author-X-Name-Last: Lin 
Author-Name: Jeng-Ren  Chiou 
Author-X-Name-First: Jeng-Ren  
Author-X-Name-Last: Chiou 
Author-Name: Yenn-Ru  Chen 
Author-X-Name-First: Yenn-Ru  
Author-X-Name-Last: Chen 
Title: Ownership Structure and Dividend Preference 
Abstract:
 Most Chinese listed companies have been transformed from state-owned
 enterprises; the resulting institutional transformation is characterized
 by the emergence of highly concentrated ownership and state-owned shares,
 which may exert an influence on corporate finance. We examine the
 relationship between ownership structure and cash dividend preference and
 then reexamine the same relationship with different levels of growth
 opportunities. The results reveal a positive relationship between cash
 dividend preference and state ownership, but the same relationship exists
 only in firms facing lower levels of investment opportunity. However, the
 ratio of employee shares and tradable shares correlates significantly and
 negatively with cash dividend preference.
Journal: Emerging Markets Finance and Trade 
Pages: 56-74 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: dividend preference, ownership structure, state-owned shares, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M432140684217362 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 1047-1073.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:56-74




Template-Type: ReDIF-Article 1.0
Author-Name: Jengfang  Chen 
Author-X-Name-First: Jengfang  
Author-X-Name-Last: Chen 
Author-Name: Chunghuey  Huang 
Author-X-Name-First: Chunghuey  
Author-X-Name-Last: Huang 
Author-Name: Ming-Long  Wang 
Author-X-Name-First: Ming-Long  
Author-X-Name-Last: Wang 
Author-Name: Jia-Chi  Cheng 
Author-X-Name-First: Jia-Chi  
Author-X-Name-Last: Cheng 
Title: Information Effects During the U. S. Subprime Crisis 
Abstract:
 We investigate the impact of the U. S. subprime crisis on the stock
 markets of the Asia-Pacific countries on various event dates. Using data
 from Hong Kong, Indonesia, Malaysia, Singapore, and Taiwan, we find that
 the subprime crisis negatively affects these stock markets and investor
 behavior, especially in Hong Kong and Taiwan. In addition, the subprime
 crisis generally works through more financial linkages than trade
 linkages. However, when the subsamples are classified according to
 industry, this result exists only for the banking industry, but both
 financial and trade linkages become important to explain the impact of the
 crisis on the manufacturing industry.
Journal: Emerging Markets Finance and Trade 
Pages: 75-86 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: information effects, MSCI Asia-Pacific Ex-Japan index, U. S. subprime crisis, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M626J85175816222 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baber, W. R.; K. R.
 Kumar; and T. Verghese. 1995. "Client Security Price Reactions to the
 Laventhol and Horwath Bankruptcy." >i>Journal of Accounting Research>/i>
 33 (Autumn): 385-395.</BIBTEXT>      </REF>	  <REF>       
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 >i>Regression Diagnostics: Identifying Influential Data and Source of
 Collinearity>/i>. New York: Wiley.</BIBTEXT>	   </REF>      <REF>	   
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 48-84.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
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 R. Rigobon. 2001. "Measuring Contagion: Conceptual and Empirical Issues."
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 Channels." >i>International Review of Economics and Finance>/i> 17:
 572-588.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Kennedy, P. 1998. >i>A Guide to Econometrics>/i>. 4th ed.
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 <BIBL>11</BIBL>	<BIBTEXT> Malatesta, P. H. 1986. "Measuring
 Abnormal Performance: the Event Parameter Approach Using Joint Generalized
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 Miller, David Vines, and Axel Weber, chap. 9. Cambridge: Cambridge
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 and R. Thompson. 1986. "An Approach to Statistical Inference in
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 1962. "An Efficient Method of Estimating Seemingly Unrelated Regressions
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:75-86




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Yung  Wang 
Author-X-Name-First: Chih-Yung  
Author-X-Name-Last: Wang 
Author-Name: Yu-Fen  Chen 
Author-X-Name-First: Yu-Fen  
Author-X-Name-Last: Chen 
Author-Name: Gu-Shin  Tung 
Author-X-Name-First: Gu-Shin  
Author-X-Name-Last: Tung 
Title: Does Subordinated Debt Play a Role for Market Discipline? 
Abstract:
 This paper examines the link between the issuance of subordinated debt by
 commercial banks and market discipline. Using cross-sectional and
 time-series data from 2002 to 2007, we empirically examine the
 relationship between banks' risk level and their decisions to issue
 subordinated debts in Taiwan. In particular, we test the hypothesis that
 the commercial banks with low risk levels prefer to issue subordinated
 debts more than high-risk banks do, and we reject the hypothesis. We
 conclude that the application of subordinated debt is not a mature channel
 for providing market discipline for commercial banks in Taiwan. We offer
 potential reasons for this finding and discuss the policy implications of
 our findings.
Journal: Emerging Markets Finance and Trade 
Pages: 27-33 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: market discipline, subordinated debt, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U0244645801447H6 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ascraft, A. B. 2006.
 "Does the Market Discipline Banks? New Evidence from the Regulatory
 Capital Mix." Working paper, Federal Reserve Bank of New York.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>2</BIBL>	   <BIBTEXT> Bliss, R. R.,
 and M. J. Flannery. 2000. "Marketing Discipline in the Governance of U. S.
 Bank Holding Companies: Monitoring vs. Influencing." Working paper,
 Federal Reserve Bank of Chicago.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>3</BIBL>        <BIBTEXT> Blum, J. M. 2002. "Subordinated Debt,
 Market Discipline, and Banks' Risk Taking." >i>Journal of Banking and
 Finance>/i> 26: 1427-1441.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>4</BIBL>        <BIBTEXT> Caldwell, G. 2005. "Subordinated Debt and
 Market Discipline in Canada." Working paper, Bank of Canada.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT> Dewatripont, M.,
 and K. Tirole. 1994. >i>The Prudential Regulation of Banks>/i>. Cambridge,
 MA: MIT Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	   
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 "The Information Advantage of Specialization Monitors: The Case of Bank
 Examiners." Working paper, Federal Reserve Bank of Chicago.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Evanoff, D. D.,
 and L. D. Wall. 2000. "Subordinated Debt and Bank Capital Reform." Working
 paper, Federal Reserve Bank of Atlanta.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>8</BIBL>	    <BIBTEXT> Fan, R.; J. G. Haubrich; J. B.
 Thomas; and P. Ritchken. 2004. "Getting the Most Out of a Mandatory
 Subordinated Debt Requirement." >i>Journal of Financial Services
 Research>/i> 24, nos. 2-3: 149-179.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>9</BIBL>	<BIBTEXT> Flannery, M., and S. Sorescu. 1996.
 "Evidence of Bank Market Discipline in Subordinated Debenture Yields:
 1983-1991." >i>Journal of Finance>/i> 51: 1347-1377.</BIBTEXT>      </REF>
      <REF>	   <BIBL>10</BIBL>	  <BIBTEXT> Goyal, V. K. 2005.
 "Market Discipline of Bank Risk: Evidence from Subordinated Debt
 Contracts." >i>Journal of Financial Intermediation>/i> 14:
 318-350.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Imai, M. 2007. "The Emergence of Market Monitoring in Japanese
 Banks: Evidence from the Subordinated Debt Market." >i>Journal of Banking
 and Finance>/i> 31: 1441-1460.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>12</BIBL>	<BIBTEXT> Jagtiani, J.; G. G. Kaufman; and C.
 Lemieux. 1999. "Do Market Discipline Banks and Banking Hold Companies?
 Evidence from Debt Pricing." >i>Emerging Issues>/i>. Federal Reserve Bank
 of Chicago.</BIBTEXT>	    </REF>	<REF>	     <BIBL>13</BIBL>	   
 <BIBTEXT> Morgan, D. P., and K. J. Stiroh. 2000. "Bond Market Discipline
 of Banks: Is the Market Tough Enough?" In >i>Proceedings of a Conference
 on Bank Structure and Competition>/i>. Chicago: Federal Reserve Bank of
 Chicago.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Nivorozhkin, E. 2005. "Market Discipline of Subordinated Debt in
 Banking: The Case of Costly Bankruptcy." >i>European Journal of
 Operational Research>/i> 161: no. 2: 364-376.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Pop, A. 2006. "Market
 Discipline in International Banking Regulation: Keeping the Playing Field
 Level." >i>Journal of Financial Stability>/i> 2: 286-310.</BIBTEXT>	 
 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:27-33




Template-Type: ReDIF-Article 1.0
Author-Name: Chuang-Yuang  Lin 
Author-X-Name-First: Chuang-Yuang  
Author-X-Name-Last: Lin 
Author-Name: Hung-Ta  Lee 
Author-X-Name-First: Hung-Ta  
Author-X-Name-Last: Lee 
Title: The Bigger the Better? Merger and Acquisition Performance of Financial Holding Corporations 
Abstract:
 This study investigates the performance of the merger and acquisition
 activities of 14 financial holding corporations (FHCs) in Taiwan before
 and after their establishment in 2002. We find weak evidence of improved
 performance of FHCs. The findings have implications for other reforming
 emerging countries in East Asia with similar economic structures and
 financial environment.
Journal: Emerging Markets Finance and Trade 
Pages: 96-107 
Issue: 1 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: financial holding corporation, financial reform, performance of merger and acquisitions, Taiwan, Tobin's >i>Q>/i>, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X05821336326930K 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Campa, J. M., and I.
 Hernando. 2006. "M&As Performance in the European Financial Industry."
 >i>Journal of Banking and Finance>/i> 30, no. 12: 3367-3392.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>2</BIBL>	 <BIBTEXT> Fields, L. P.;
 D. R. Fraser; and J. W. Kolari. 2007. "Bidder Returns in Bancassurance
 Mergers: Is There Evidence of Synergy?" >i>Journal of Banking and
 Finance>/i> 31, no. 12: 3646-3662.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>3</BIBL>        <BIBTEXT> Kane, E. J. 2000. "Incentives for Banking
 Megamergers: What Motives Might Regulator Infer from Even-Study Evidence?"
 >i>Journal of Money, Credit and Banking>/i> 32, no. 3: 671-705.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Lang, L., and
 R. H. Litzenberger. 1998. "Dividend Announcements: Cash Flow Signalling
 vs. Cash Free Hypothesis." >i>Journal of Financial Economic>/i> 24, no. 1:
 181-191.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Milbourn, T. T.; A. W. A. Boot; and A. V. Thakor. 1999.
 "Megamergers and Expanded Scope: Theories of Bank Size and Activity
 Diversity." >i>Journal of Banking and Finance>/i> 23, no. 1:
 195-214.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Morellec, E., and A. Zhdanov. 2005. "The Dynamics of Mergers and
 Acquisitions." >i>Journal of Financial Economics>/i> 77, no. 3:
 649-672.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Rhoades, S. A. 1998. "The Efficiency Effects of Bank Mergers: An
 Overview of Case Studies of Nine Mergers." >i>Journal of Banking and
 Finance>/i> 22, no. 3: 273-291.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>8</BIBL>        <BIBTEXT> Stiroh, K. J. 2000. "How Did Bank Holding
 Companies Prosper in the 1990s?" >i>Journal of Banking and Finance>/i> 24,
 no. 11: 1703-1745.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:1:p:96-107




Template-Type: ReDIF-Article 1.0
Author-Name: Doseong  Kim 
Author-X-Name-First: Doseong  
Author-X-Name-Last: Kim 
Author-Name: Yoon-Goo  Lee 
Author-X-Name-First: Yoon-Goo  
Author-X-Name-Last: Lee 
Author-Name: Isabel  Ruiz 
Author-X-Name-First: Isabel  
Author-X-Name-Last: Ruiz 
Title: Common Volatility: An Empirical Investigation of Closed-End Country Funds 
Abstract:
 The study of international integration of equity markets has received a
 great deal of interest. This paper investigates whether returns of
 forty-one closed-end country funds share a common volatility process with
 three comparable return series: the underlying net asset value (NAV), U.S.
 stock market returns, and foreign stock market returns. Country funds are
 a natural setting to test for international market integration, as they
 are traded in the U.S. market, whereas their underlying assets are traded
 in foreign stock markets. Our results indicate that only a few emerging
 markets' country funds share common volatility processes with their
 comparable asset returns. This, in turn, suggests weak linkages through
 the second moment of related assets.
Journal: Emerging Markets Finance and Trade 
Pages: 116-132 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: asset pricing, common volatility, country fund, market integration, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=020W42G682220081 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alexander, C. 1995a.
 "Cofeatures in International Bond and Equity Markets." Discussion papers,
 University of Sussex, Ismacentre.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Alexander, C. 1995b. "Common Volatility in
 the Foreign Exchange Market." >i>Applied Financial Economics>/i> 5, no. 1:
 1-10.</BIBTEXT>      </REF>	  <REF>        <BIBL>3</BIBL>	    
 <BIBTEXT> Arshanapalli, B., and J. Doukas. 1994. "Common Volatility in S&P
 500 Stock Index and S&P 500 Index Futures Prices During October 1987."
 >i>Journal of Futures Markets>/i> 8, no. 8: 915-925.</BIBTEXT>      </REF>
      <REF>	   <BIBL>4</BIBL>	 <BIBTEXT> Arshanapalli, B.; J.
 Doukas; and L. Lang. 1997. "Common Volatility in the Industrial Structure
 of Global Capital Markets." >i>Journal of International Money and
 Finance>/i> 16, no. 2: 189-209.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>5</BIBL>        <BIBTEXT> Baele, L. 2005. "Volatility Spillover
 Effects in European Equity Markets." >i>Journal of Financial and
 Quantitative Analysis>/i> 40, no. 2: 373-401.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Bailey, W., and J. Lim. 1992.
 "Evaluating the Diversification Benefits of the New Country Funds."
 >i>Journal of Portfolio Management>/i> 18, no. 3: 74-80.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Baur, D., and
 R.C. Jung. 2006. "Return and Volatility Linkages Between the U.S. and the
 German Stock Market." >i>Journal of International Money and Finance>/i>
 25, no. 4: 598-613.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>
	<BIBTEXT> Bekaert, G., and M.S. Urias. 1996. "Diversification,
 Integration, and Emerging Market Closed-End Funds." >i>Journal of
 Finance>/i> 51, no. 3: 835-869.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>9</BIBL>        <BIBTEXT> Bekaert, G., and M.S. Urias. 1999. "Is
 There a Free Lunch in Emerging Market Equities?" >i>Journal of Portfolio
 Management>/i> 25, no. 3: 83-95.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>10</BIBL>	<BIBTEXT> Ben-Zion, U.; J.J. Choi; and S. Hauser.
 1996. "The Price Linkages Between Country Funds and National Stock
 Markets: Evidence from Cointegration and Causality Tests of Germany,
 Japan, and U.K. Funds." >i>Journal of Business Finance and Accounting>/i>
 23, no. 7: 1005-1017.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>11</BIBL>	<BIBTEXT> Bodurtha, J.N.; D.S. Kim; and C.M.C. Lee.
 1995. "Closed-End Country Funds and U.S. Market Sentiment." >i>Review of
 Financial Studies>/i> 8, no. 3: 879-918.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>12</BIBL>	      <BIBTEXT> Chandar, N., and D.K. Patro. 2000.
 "Why Do Closed-End Country Funds Trade at Enormous Premiums During
 Currency Crises?" >i>Pacific Basin Finance Journal>/i> 8, no. 2:
 217-248.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Chang, E.; C.S. Eun; and R. Kolodny. 1995. "International
 Diversification Through Closed-End Country Funds." >i>Journal of Banking
 and Finance>/i> 19, no. 7: 1237-1263.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>14</BIBL>	   <BIBTEXT> Chiang, T.C., and D. Kim. 2003. "On
 Country-Fund Price Behavior: An Empirical Analysis of Cointegrating
 Factors." >i>Advances in Financial Planning and Forecasting>/i> 11:
 85-112.</BIBTEXT>	</REF>	    <REF>	 <BIBL>15</BIBL>       
 <BIBTEXT> Engle, R.F. 1982. "Autoregressive Conditional Heteroskedasticity
 with Estimates of the Variance of UK Inflation." >i>Econometrica>/i> 50,
 no. 4: 987-1008.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>  
      <BIBTEXT> Engle, R.F., and S. Kozicki. 1993. "Testing for Common
 Features." >i>Journal of Business and Economics Statistics>/i> 11, no. 4:
 369-380.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Engle, R., and J. Marcucci. 2006. "A Long-Run Pure Variance
 Common Features Model for the Common Volatilities of the Dow Jones."
 >i>Journal of Econometrics>/i> 132, no. 1: 7-42.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>18</BIBL>	      <BIBTEXT> Engle, R.F., and R. Susmel.
 1993. "Common Volatility in International Equity Markets." >i>Journal of
 Business and Economics Statistics>/i> 11, no. 2: 167-176.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Ericsson, N.R.
 1993. "Comment: Testing for Common Features." >i>Journal of Business and
 Economics Statistics>/i> 11, no. 4: 380-383.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Hansen, L.P. 1982. "Large
 Sample Properties of Generalized Method of Moments Estimators."
 >i>Econometrica>/i> 50, no. 4: 1023-1054.</BIBTEXT>	  </REF>      <REF>
	<BIBL>21</BIBL>        <BIBTEXT> Hardouvelis, G.; R. LaPorta; and
 T.A. Wizman. 1994. "What Moves the Discount on Closed- End Country Funds."
 >i>The Internationalization of Equity Markets>/i>, ed. J.A. Frankel, pp.
 345-397. Chicago: University of Chicago Press.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT> Hyde, S.; D.P. Bredin; and
 N. Nguyen. 2007. "Correlation Dynamics Between Asia-Pacific, EU and U.S.
 Stock Returns." >i>International Finance Review>/i> 8: 39-61.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>23</BIBL>	   <BIBTEXT> Kanas, A.
 1998. "Volatility Spillovers Across Equity Markets: European Evidence."
 >i>Applied Financial Economics>/i> 8, no. 3: 245-256.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>24</BIBL>	 <BIBTEXT> Karolyi, G.A.,
 and R.M. Stulz. 1996. "Why Do Markets Move Together? An Investigation of
 U.S.-Japan Stock Return Comovements." >i>Journal of Finance>/i> 51, no. 3:
 951-986.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> King, M., and S. Wadhwani. 1990. "Transmission of Volatility
 Between Stock Markets." >i>Review of Financial Studies>/i> 3, no. 1:
 5-33.</BIBTEXT>      </REF>	  <REF>        <BIBL>26</BIBL>	     
 <BIBTEXT> King, M.; E. Sentana; and S. Wadhwani. 1994. "Volatility and
 Links Between National Stock Markets." >i>Econometrica>/i> 62, no. 4:
 901-933.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT> Lee, B.S., and G. Hong. 2002. "On the Dual Characteristics of
 Closed-End Country Funds." >i>Journal of International Money and
 Finance>/i> 21, no. 5: 589-618.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>28</BIBL>	<BIBTEXT> Miyakoshi, T. 2003."Spillovers of Stock
 Return Volatility to Asian Equity Markets from Japan and the U.S."
 >i>Journal of International Financial Markets, Institutions, and Money>/i>
 13, no. 4: 383-399.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>29</BIBL>	<BIBTEXT> Ng, A. 2000. "Volatility Spillover
 Effects from Japan and the U.S. to the Pacific-Basin." >i>Journal of
 International Money and Finance>/i> 19, no. 2: 207-232.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>30</BIBL>	 <BIBTEXT> Richard, J.E.,
 and J.B. Wiggins. 2000. "The Information Content of Closed-End Country
 Fund Discounts." >i>Financial Services Review>/i> 9, no. 2 (Summer):
 171-181.</BIBTEXT>	 </REF>      <REF>	  <BIBL>31</BIBL>	
 <BIBTEXT> Susmel, R., and R.F. Engle. 1994. "Hourly Volatility Spillovers
 Between International Equity Markets." >i>Journal of International Money
 and Finance>/i> 13, no. 1: 3-25.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>32</BIBL>	<BIBTEXT> Theodossiou, P.; E. Kahya; G. Koutmos;
 and A. Christofi. 1997. "Volatility Reversion and Correlation Structure of
 Returns in Major International Stock Markets." >i>Financial Review>/i> 32,
 no. 2: 205-224.</BIBTEXT>	</REF>	    <REF>	 <BIBL>33</BIBL>   
     <BIBTEXT> Tse, Y., and G. Booth. 1996. "Common Volatility and
 Volatility Spillovers Between U.S. and Eurodollar Interest Rates: Evidence
 from the Futures Market." >i>Journal of Economics and Business>/i> 48, no.
 3: 299-312.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:116-132




Template-Type: ReDIF-Article 1.0
Author-Name: Changyun  Wang 
Author-X-Name-First: Changyun  
Author-X-Name-Last: Wang 
Author-Name: Lei  Xie 
Author-X-Name-First: Lei  
Author-X-Name-Last: Xie 
Title: Information Diffusion and Overreaction: Evidence from the Chinese Stock Market 
Abstract:
 This paper empirically examines the relation between overreaction and the
 speed of information diffusion in the Chinese stock market.
 Industry-adjusted firm size and residual analyst coverage are used to
 proxy the speed of information diffusion. We document strong evidence that
 the profitability of a monthly contrarian strategy decreases with
 industry-adjusted firm size or residual analyst coverage. Moreover, the
 profitability of contrarian strategies survives for a longer horizon for
 stocks with slower information diffusion than for those with faster
 information diffusion. This result holds true even if risk, bid-ask
 spread, lead-lag effect, inventory costs, and limits to arbitrage are
 properly accounted for. Our findings suggest that information environment
 and information diffusion determine the extent of overreaction.
Journal: Emerging Markets Finance and Trade 
Pages: 80-100 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: Chinese stock market, contrarian strategy, information diffusion, overreaction, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=067L3G60X2720179 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> AssoÃƒÂ©, K., and O. Sy.
 2004. "Profitability of the Short-Run Contrarian Strategy in Canadian
 Stock Markets." Working paper, HEC MontrÃƒÂ©al and CREF.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Barber, B., and
 T. Odean. 2001. "The Internet and the Investor." >i>Journal of Economic
 Perspectives>/i> 15, no. 1: 41-54.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>3</BIBL>        <BIBTEXT> Bhushan, R. 1989. "Firm Characteristics
 and Analyst Following." >i>Journal of Accounting and Economics>/i> 11, no.
 2-3: 255-274.</BIBTEXT>      </REF>	  <REF>        <BIBL>4</BIBL>	   
  <BIBTEXT> Boudoukh, J.; M. Richardson; and R. Whitelaw. 1994. "A Tale of
 Three Schools: Insights on Autocorrelations of Short-Horizon Stock
 Returns." >i>Review of Financial Studies>/i> 7, no. 3: 539-573.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Brennan, M.;
 N. Jegadeesh; and B. Swaminathan. 1993. "Investment Analysis and the
 Adjustment of Stock Prices to Common Information." >i>Review of Financial
 Studies>/i> 6, no. 4: 799-824.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>6</BIBL>        <BIBTEXT> Chan, W. 2003. "Stock Price Reaction to
 News and No News: Drift and Reversal After Headlines." >i>Journal of
 Financial Economics>/i> 70, no. 2: 223-260.</BIBTEXT>	    </REF>     
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 1997. "Profitability of Short-Term Contrarian Strategies: Implications for
 Market Efficiency." >i>Journal of Business and Economic Statistics>/i> 15,
 no. 3: 386-397.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>    
    <BIBTEXT> Conrad, J.; G. Kaul; and M. Nimalendran. 1991. "Components of
 Short-Horizon Individual Security Returns." >i>Journal of Financial
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 <BIBL>10</BIBL>	<BIBTEXT> Daniel, K.D., and S. Titman. 1997.
 "Evidence on the Characteristics of Cross-Sectional Variation in Stock
 Returns." >i>Journal of Finance>/i> 52, no. 1: 1-33.</BIBTEXT>      </REF>
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 Hirshleifer; and A. Subrahmanyam. 1998. "Investor Psychology and Security
 Market Under- and Overreactions." >i>Journal of Finance>/i> 53, no. 6:
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 <BIBTEXT> Datar, N.; N. Naik; and N. Redcliffe. 1998. "Liquidity and Stock
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 Risk Factors in the Returns on Stocks and Bonds." >i>Journal of Financial
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 <BIBL>16</BIBL>	<BIBTEXT> Fama, E., and K. French. 1996.
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 Return, and Equilibrium: Empirical Tests." >i>Journal of Political
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 Theory of Underreaction, Momentum Trading, and Overreaction in Asset
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 Lim; and J. Stein. 2000. "Bad News Travels Slowly: Size, Analyst
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 <BIBL>20</BIBL>	<BIBTEXT> Jegadeesh, N. 1990. "Evidence of
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 Winners and Selling Losers: Implications for Stock Market Efficiency."
 >i>Journal of Finance>/i> 48, no. 1: 65-91.</BIBTEXT>	    </REF>     
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 and S. Titman. 1995b. "Short-Horizon Return Reversals and the Bid-Ask
 Spread." >i>Journal of Financial Intermediation>/i> 4, no. 2:
 116-132.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT> Kang, J.; M. Liu; and S. Ni. 2002. "Contrarian and Momentum
 Strategies in the China Stock Market: 1993-2000." >i>Pacific-Basin Finance
 Journal>/i> 10, no. 3: 243-265.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>25</BIBL>	<BIBTEXT> Lakonishok, J.; A. Shleifer; and R.
 Vishny. 1994. "Contrarian Investment, Extrapolation, and Risk." >i>Journal
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 "Corporate Disclosure Policy and Analyst Behavior." >i>Accounting
 Review>/i> 71, no. 4: 467-492.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>27</BIBL>	<BIBTEXT> Lee, C., and B. Swaminathan, 2000. "Price
 Momentum and Trading Volume." >i>Journal of Finance>/i> 55, no. 5:
 2017-2069.</BIBTEXT>	   </REF>      <REF>	    <BIBL>28</BIBL>	  
 <BIBTEXT> Lehmann, B. 1990. "Fads, Martingales and Market Efficiency."
 >i>Quarterly Journal of Economics>/i> 105, no. 1: 1-28.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>29</BIBL>	 <BIBTEXT> Lo, A., and A.
 MacKinlay. 1990. "When Are Contrarian Profits Due to Stock Market
 Overreaction?" >i>Review of Financial Studies>/i> 3, no. 2:
 175-250.</BIBTEXT>	 </REF>      <REF>	  <BIBL>30</BIBL>	
 <BIBTEXT> Mase, B. 1999. "The Predictability of Short-Horizon Stock
 Returns." >i>European Finance Review>/i> 3, no. 2: 161-173.</BIBTEXT>	   
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 K. West. 1987. "A Simple, Positive, Semi-Definite, Heteroskedasticity-and
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 3: 703-708.</BIBTEXT>	    </REF>	<REF>	     <BIBL>32</BIBL>	   
 <BIBTEXT> Park, J. 1995. "A Market Microstructure Explanation for
 Predictable Variations in Stock Returns Following Large Price Changes."
 >i>Journal of Financial and Quantitative Analysis>/i> 30, no. 2:
 241-256.</BIBTEXT>	 </REF>      <REF>	  <BIBL>33</BIBL>	
 <BIBTEXT> Scheinkman, J., and W. Xiong. 2003. "Overconfidence and
 Speculative Bubbles." >i>Journal of Political Economy>/i> 111, no. 6:
 1183-1219.</BIBTEXT>	   </REF>      <REF>	    <BIBL>34</BIBL>	  
 <BIBTEXT> Shleifer, A., and R. Vishny. 1997. "Limits to Arbitrage."
 >i>Journal of Finance>/i> 52, no. 3: 35-55.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>35</BIBL>	     <BIBTEXT> Subrahmanyam, A. 2005.
 "Distinguishing Rationales for Short-Horizon Predictability of Stock
 Returns." >i>Financial Review>/i> 40, no. 1: 11-35.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>36</BIBL>	 <BIBTEXT> Wang, C., and S. Chin.
 2004. "Profitability of Return and Volume Based Investment Strategies in
 China's Stock Market." >i>Pacific Basin Finance Journal>/i> 12, no. 5:
 541-564.</BIBTEXT>	 </REF>      <REF>	  <BIBL>37</BIBL>	
 <BIBTEXT> Wurgler, J., and K. Zhuravskaya. 2002. "Does Arbitrage Flatten
 Demand Curves for Stocks?" >i>Journal of Business>/i> 75, no. 3:
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 <BIBTEXT> Yalcin, A. 2003. "Gradual Information Diffusion and Contrarian
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 <BIBL>39</BIBL>	<BIBTEXT> Zhang, X. 2006. "Information Uncertainty
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 105-137.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:80-100




Template-Type: ReDIF-Article 1.0
Author-Name: Jung-Hua  Hung 
Author-X-Name-First: Jung-Hua  
Author-X-Name-Last: Hung 
Author-Name: Yi-Pei  Chen 
Author-X-Name-First: Yi-Pei  
Author-X-Name-Last: Chen 
Title: Equity Undervaluation and Signaling Power of Share Repurchases with Legal Restrictions 
Abstract:
 This paper analyzes share repurchase programs, which are subject to
 specific legal restrictions in Taiwan, to determine whether the unique
 item repurchase price range conveys information regarding the degree of
 undervaluation and future prospects of a firm. We find that the price
 range conveys such information, not only about the past, but also the
 future. Companies with a higher upper bound of the repurchase price range
 experience better abnormal returns than do companies that do not. The
 lower bound of the price range does not efficiently convey the
 undervaluation effect, owing to the exemption clause in the announcement.
 Finally, the announced price range, in turn, conveys favorable information
 about the repurchasing firm and is a more powerful signal of future
 prospects than is the legal price range.
Journal: Emerging Markets Finance and Trade 
Pages: 101-115 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: price range, repurchases, signaling, undervaluation, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=08126W6705688J88 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baker, M., and J.
 Wurgler. 2002. "Market Timing and Capital Structure." >i>Journal of
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	<BIBTEXT> Barth, M.E., and R. Kasznik. 1999. "Share Repurchases and
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 <BIBTEXT> Bhattacharya, S. 1979. "Imperfect Information, Dividend Policy,
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	<BIBTEXT> Cho, M.H. 1998. "Ownership Structure, Investment, and the
 Corporate Value: An Empirical Analysis." >i>Journal of Financial
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 <BIBL>6</BIBL>        <BIBTEXT> Comment, R., and G.A. Jarrell. 1991. "The
 Relative Signaling Power of Dutch Auction and Fixed Price Tender Offers
 and Open Market Share Repurchases." >i>Journal of Finance>/i> 46, no. 4:
 1243-1271.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> Cook, D.O.; L. Krigman; and J.C. Leach. 2004. "On the Timing and
 Execution of Open Market Repurchases." >i>Review of Financial Studies>/i>
 17, no. 2: 463-498.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>
	<BIBTEXT> Dewenter, K.L., and V.A. Warther. 1998. "Dividend,
 Asymmetric Information, and Agency Conflicts: Evidence from a Comparison
 of the Dividend Policies of Japanese and U.S. Firms." >i>Journal of
 Finance>/i> 53, no. 3: 879-904.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>9</BIBL>        <BIBTEXT> Dittmar, A.K. 2000. "Why Do Firms
 Repurchase Stock?" >i>Journal of Business>/i> 73, no. 3:
 331-354.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Fama, E.F., and K.R. French. 2000. "Forecasting Profitability
 and Earnings." >i>Journal of Business>/i> 73, no. 2: 161-175.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>11</BIBL>	   <BIBTEXT> Grullon, G.,
 and R. Michaely. 2004. "The Information Content of Share Repurchase
 Programs." >i>Journal of Finance>/i> 59, no. 2: 651-680.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Hung, J.H.; H.J.
 Chen; and C.Y. Ke. 2005. "The Impact of Board Characteristics and
 Ownership Structure on Debt: An Agency Theory Perspective." >i>Journal of
 Management and Systems>/i> 12, no. 4: 33-53 [in Chinese].</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Ikenberry, D.;
 J. Lakonishok; and T. Vermaelen. 1995. "Market Underreaction to Open
 Market Repurchases." >i>Journal of Financial Economics>/i> 39, no. 2/3:
 181-208.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Ikenberry, D.; J. Lakonishok; and T. Vermaelen. 2000. "Stock
 Repurchase in Canada: Performance and Strategic Trading." >i>Journal of
 Finance>/i> 55, no. 5: 2373-2397.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>15</BIBL>	<BIBTEXT> Jagannathan, M., and C.P. Stephens. 2003.
 "Motives for Multiple Open-Market Repurchase Programs." >i>Financial
 Management>/i> 32, no. 2: 71-91.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>16</BIBL>	<BIBTEXT> Jagannathan, M.; C.P. Stephens; and M.S.
 Weisbach. 2000. "Financial Flexibility and the Choice Between Dividends
 and Stock Repurchases." >i>Journal of Financial Economics>/i> 57, no. 3:
 355-384.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Kracher, B., and R.R. Johnson. 1997. "Repurchases Announcements,
 Lies, and False Signals." >i>Journal of Business Ethics>/i> 16, no. 15:
 1677-1685.</BIBTEXT>	   </REF>      <REF>	    <BIBL>18</BIBL>	  
 <BIBTEXT> Lie, E. 2001. "Detecting Abnormal Operating Performance:
 Revisited." >i>Financial Management>/i> 30, no. 2: 77-91.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Lin, C.M.; K.L.
 Wang; and T.P. Wu. 2005. "The Determinants of the Purposes of Stock
 Repurchases in Taiwan's Listed Companies: An Application of the
 Multinomial Logic Model." >i>Taiwan Academy of Management Journal>/i> 5,
 no. 2: 339-360 [in Chinese].</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>20</BIBL>	<BIBTEXT> Massa, M.; Z. Rehman; and T. Vermaelen.
 2007. "Mimicking Repurchases." >i>Journal of Financial Economics>/i> 84,
 no. 3: 624-666.</BIBTEXT>	</REF>	    <REF>	 <BIBL>21</BIBL>   
     <BIBTEXT> Maxwell, W.F., and C.P. Stephens. 2003. "The Wealth Effects
 of Repurchases on Bondholders." >i>Journal of Finance>/i> 58, no. 2:
 895-920.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Miller, M.H., and F. Modigliani. 1961. "Dividend Policy, Growth,
 and the Valuation of Shares." >i>Journal of Business>/i> 34, no. 4:
 411-433.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT> Miller, M.H., and K. Rock. 1985. "Dividend Policy Under
 Asymmetric Information." >i>Journal of Finance>/i> 40, no. 4:
 1031-1051.</BIBTEXT>	   </REF>      <REF>	    <BIBL>24</BIBL>	  
 <BIBTEXT> Nissim, D., and A. Ziv. 2001. "Dividend Changes and Future
 Profitability." >i>Journal of Finance>/i> 56, no. 6: 2111-2133.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT> Ofer, A.R.,
 and D.R. Siegel. 1987. "Corporate Financial Policy, Information, and
 Market Expectations: An Empirical Investigation of Dividends." >i>Journal
 of Finance>/i> 42, no. 3: 889-911.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>26</BIBL>	<BIBTEXT> Stephens, C.P., and M.S. Weisbach. 1998.
 "Actual Share Reacquiring in Open-Market Repurchase Programs." >i>Journal
 of Finance>/i> 53, no. 1: 313-333.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>27</BIBL>	<BIBTEXT> Vermaelen T. 1981. "Common Stock
 Repurchases and Market Signaling: An Empirical Study." >i>Journal of
 Financial Economics>/i> 9, no. 2: 139-183.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>28</BIBL>	     <BIBTEXT> Vijh, A.M. 2006. "Does a
 Parent-Subsidiary Structure Enhance Financing Flexibility?" >i>Journal of
 Finance>/i> 61, no. 3: 1337-1360.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>29</BIBL>	<BIBTEXT> Zhang, H. 2002. "Share Repurchases Under
 the Commercial Law 212-2 in Japan: Market Reaction and Actual
 Implementation." >i>Pacific-Basin Finance Journal>/i> 10, no. 3:
 287-305.</BIBTEXT>	 </REF>      <REF>	  <BIBL>30</BIBL>	
 <BIBTEXT> Zhang, H. 2005. "Share Price Performance Following Actual Share
 Repurchases." >i>Journal of Banking and Finance>/i> 29, no. 7:
 1887-1901.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:101-115




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Referee Acknowledgment 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 133-140 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=0J571720T6571585 
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:133-140




Template-Type: ReDIF-Article 1.0
Author-Name: Haigang  Zhou 
Author-X-Name-First: Haigang  
Author-X-Name-Last: Zhou 
Author-Name: John  Geppert 
Author-X-Name-First: John  
Author-X-Name-Last: Geppert 
Author-Name: Dongmin  Kong 
Author-X-Name-First: Dongmin  
Author-X-Name-Last: Kong 
Title: An Anatomy of Trading Strategies: Evidence from China 
Abstract:
 Using a pooled cross-sectional time series approach, we evaluate profits
 of momentum strategies and identify the sources of profits in China's
 stock market. Momentum strategies generate significant and negative
 returns in the A-share market on investment horizons at one month and at
 and above nine months. In the B-share market, momentum strategies yield
 significant and negative returns at and above twelve months. Decomposition
 analysis finds that the negative returns are predominately attributed to
 the time series profitability of stock returns. Although momentum
 strategies generate significant and positive returns over the period after
 China opened its once foreign-restricted B-share market to domestic
 individual investors, the relative importance of the time series
 predictability and the cross-sectional variation does not change.
Journal: Emerging Markets Finance and Trade 
Pages: 66-79 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: autocorrelation, contrarian, cross section, momentum, time series, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8502143185RV5726 
File-Format: text/html
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baytas, A., and N.
 Cakici. 1999. "Do Markets Overreact: International Evidence." >i>Journal
 of Banking and Finance>/i> 23, no. 7: 1121-1144.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>2</BIBL>	     <BIBTEXT> Chan, L.K.C.; N. Jegadeesh;
 and J. Lakonishok. 1996. "Momentum Strategies." >i>Journal of Finance>/i>
 51, no. 5: 1681-1713.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>3</BIBL>        <BIBTEXT> Conrad, J., and M.N. Gultekin. 1997.
 "Profitability of Short-Term Contrarian Strategies: Implications for
 Market Efficiency." >i>Journal of Business and Economic Statistics>/i> 15,
 no. 3: 379-386.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>    
    <BIBTEXT> Conrad, J., and G. Kaul. 1998. "An Anatomy of Trading
 Strategies." >i>Review of Financial Studies>/i> 11, no. 3:
 489-519.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> De Bondt, W.F.M., and R. Thaler. 1987. "Further Evidence of
 Investor Overreaction and Stock Market Seasonality." >i>Journal of
 Finance>/i> 42, no. 3: 557-581.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>6</BIBL>        <BIBTEXT> Fama, E.F., and K.R. French. 1993. "Common
 Risk Factors in the Returns on Stocks and Bonds." >i>Journal of Financial
 Economics>/i> 33, no. 1: 3-53.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>7</BIBL>        <BIBTEXT> Fama, E.F., and K.R. French. 1996.
 "Multifactor Explanations of Asset Pricing Anomalies." >i>Journal of
 Finance>/i> 51, no. 1: 51-84.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Jegadeesh, N., and S. Titman. 1993.
 "Returns to Buying Winners and Selling Losers: Implications for Stock
 Market Efficiency." >i>Journal of Finance>/i> 48, no. 1: 65-91.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Jegadeesh,
 N., and S. Titman. 1995. "Overreaction, Delayed Reaction, and Contrarian
 Profits." >i>Review of Financial Studies>/i> 8, no. 4: 973-993.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Kang, J.;
 M.H. Liu; and S.X. Ni. 2002. "Contrarian and Momentum Strategies in the
 China Stock Market: 1993-2000." >i>Pacific Basin Finance Journal>/i> 10,
 no. 3: 243-265.</BIBTEXT>	</REF>	    <REF>	 <BIBL>11</BIBL>   
     <BIBTEXT> Lehmann, B.N. 1990. "Fads, Martingales, and Market
 Efficiency." >i>Quarterly Journal of Economics>/i> 105, no. 1:
 1-28.</BIBTEXT>      </REF>	  <REF>        <BIBL>12</BIBL>	     
 <BIBTEXT> Lo, A.W., and A.C. MacKinlay. 1990. "When Are Contrarian Profits
 Due to Stock Market Overreaction?" >i>Review of Financial Studies>/i> 3,
 no. 2: 175-206.</BIBTEXT>	</REF>	    <REF>	 <BIBL>13</BIBL>   
     <BIBTEXT> Mok, H.M.-K., and Y.V. Hui. 1998. "Underpricing and
 Aftermarket Performance of IPOs in Shanghai, China." >i>Pacific Basin
 Finance Journal>/i> 6, no. 5: 453-474.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>14</BIBL>	    <BIBTEXT> Wang, C. 2004. "Relative Strength
 Strategies in China's Stock Market: 1994-2000." >i>Pacific Basin Finance
 Journal>/i> 12, no. 2: 159-177.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:66-79




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B2883V82777Q1025 
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Iikka  Korhonen 
Author-X-Name-First: Iikka  
Author-X-Name-Last: Korhonen 
Author-Name: Aaron  Mehrotra 
Author-X-Name-First: Aaron  
Author-X-Name-Last: Mehrotra 
Title: Money Demand in Post-Crisis Russia: Dedollarization and Remonetization 
Abstract:
 This paper assesses the monetary determinants of inflation in Russia using
 money demand functions. We find a stable money demand relation for Russia
 following the 1998 crisis. Higher income boosts demand for real ruble
 balances and the income elasticity of money is larger than unity,
 reflecting remonetization in the Russian economy. Inflation affects the
 adjustment toward equilibrium, whereas broad money shocks lead to higher
 inflation. We also show that exchange rate fluctuations considerably
 influence Russian money demand. Our results for system stability and the
 predictive value of money justify using the money stock as an information
 variable. They also suggest that the strong influence of exchange rate on
 money demand is likely to continue, despite the dedollarization of the
 Russian economy.
Journal: Emerging Markets Finance and Trade 
Pages: 5-19 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: dollarization, money demand, Russia, vector error-correction models, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C155123711175701 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bahmani-Oskooee, M.,
 and M.P. Barry. 2000. "Stability of the Demand for Money in an Unstable
 Country: Russia." >i>Journal of Post Keynesian Economics>/i> 22, no. 4:
 619-629.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Banerji, A. 2002. "Money Demand." In Country Report no. 02/75,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Bofinger, P. 2001.
 >i>Monetary Policy: Goals, Institutions, Strategies, and Instruments>/i>.
 New York: Oxford University Press.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>4</BIBL>        <BIBTEXT> BrÃƒÂ¼ggemann, R., and H. LÃƒÂ¼tkepohl. 2005.
 "Practical Problems with Reduced-Rank ML Estimators for Cointegration
 Parameters and a Simple Alternative." >i>Oxford Bulletin of Economics and
 Statistics>/i> 67, no. 5: 673-690.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>5</BIBL>        <BIBTEXT> Calvo, G. 1983. "Staggered Prices in a
 Utility-Maximizing Framework." >i>Journal of Monetary Economics>/i> 12,
 no. 3: 383-398.</BIBTEXT>	</REF>	    <REF>	 <BIBL>6</BIBL>    
    <BIBTEXT> Choudhry, T. 1998. "Another Visit to the Cagan Model of Money
 Demand: The Latest Russian Experience." >i>Journal of International Money
 and Finance>/i> 17, no. 2: 355-376.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>7</BIBL>	<BIBTEXT> Esanov, A.; C. Merkel; and L. Vinhas de
 Souza. 2006. "Monetary Policy Rules for Russia." In >i>The Periphery of
 the Euro: Monetary and Exchange Rate Policy in CIS Countries>/i>, ed. L.
 Vinhas de Souza and P. De Lombaerde, pp. 145-168. Hant, UK:
 Ashgate.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Froot, K.A., and R.H. Thaler. 1990. "Anomalies: Foreign
 Exchange." >i>Journal of Economic Perspectives>/i> 4, no. 3:
 179-192.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Granville, B., and S. Mallick. 2006. "Does Inflation or Currency
 Depreciation Drive Monetary Policy in Russia?" >i>Research in
 International Business and Finance>/i> 20, no. 2: 163-179.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Hakkio, C.S.,
 and M. Rush. 1991. "Cointegration: How Short Is the Long Run?" >i>Journal
 of International Money and Finance>/i> 10, no. 4: 571-581.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Hallman, J.J.;
 R.D. Porter; and D.H. Small. 1991. "Is the Price Level Tied to the M2
 Monetary Aggregate in the Long Run?" >i>American Economic Review>/i> 81,
 no. 4: 841-858.</BIBTEXT>	</REF>	    <REF>	 <BIBL>12</BIBL>   
     <BIBTEXT> Hansen, H., and S. Johansen. 1999. "Some Tests for Parameter
 Constancy in Cointegrated VAR Models." >i>Econometrics Journal>/i> 2, no.
 2: 306-333.</BIBTEXT>	    </REF>	<REF>	     <BIBL>13</BIBL>	   
 <BIBTEXT> Harrison, B., and Y. Vymyatnina. 2007. "Currency Substitution in
 a Dedollarizing Economy: The Case of Russia." Discussion Paper 3/2007,
 Bank of Finland, Institute for Economies in Transition,
 Helsinki.</BIBTEXT>	  </REF>      <REF>	   <BIBL>14</BIBL>	 
 <BIBTEXT> Kalra, S. 1999. "Inflation and Money Demand in Albania."
 >i>Russian and East European Finance and Trade>/i> 35, no. 6:
 82-105.</BIBTEXT>	</REF>	    <REF>	 <BIBL>15</BIBL>       
 <BIBTEXT> Keller, P.M., and T.J. Richardson. 2003. "Nominal Anchors in the
 CIS." Working Paper no. 03/179, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>16</BIBL>	   
 <BIBTEXT> Kim, B.-Y., and J. PirttilÃƒÂ¤. 2004. "Money, Barter, and
 Inflation in Russia." >i>Journal of Comparative Economics>/i> 32, no. 2:
 297-314.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Knell, M., and H. Stix. 2006. "Three Decades of Money Demand
 Studies: Differences and Similarities." >i>Applied Economics>/i> 38, no.
 7: 805-818.</BIBTEXT>	    </REF>	<REF>	     <BIBL>18</BIBL>	   
 <BIBTEXT> Korhonen, I., and A. Mehrotra. 2007. "Money Demand in Postcrisis
 Russia: Dedollarization and Remonetization." Discussion Paper 14/2007,
 Bank of Finland, Institute for Economies in Transition,
 Helsinki.</BIBTEXT>	  </REF>      <REF>	   <BIBL>19</BIBL>	 
 <BIBTEXT> NikoliÃ„Â‡, M. 2000. "Money Growth-Inflation Relationship in
 Post-Communist Russia." >i>Journal of Comparative Economics>/i> 28, no. 1:
 108-133.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT> Oomes, N., and F. Ohnsorge. 2005. "Money Demand and Inflation in
 Dollarized Economies: The Case of Russia." >i>Journal of Comparative
 Economics>/i> 33, no. 3: 462-483.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>21</BIBL>	<BIBTEXT> Pantyushin, V., and O. Cherdantseva.
 2007. "Choosing Right Ã¢Â€Â¦ and the Chicken-Egg Dilemma." Renaissance
 Capital Research Report, July 19, 2007, Moscow.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT> Ponomarenko, A. 2007.
 "Modeling Money Demand in Russia." Central Bank of Russia,
 Moscow.</BIBTEXT>	</REF>	    <REF>	 <BIBL>23</BIBL>       
 <BIBTEXT> Rautava, J. 2004. "The Role of Oil Prices and the Real Exchange
 Rate in Russia's Economy: A Cointegration Approach." >i>Journal of
 Comparative Economics>/i> 32, no. 2: 315-327.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>24</BIBL>	     <BIBTEXT> Saikkonen, P., and H.
 LÃƒÂ¼tkepohl. 2000. "Testing for the Cointegrating Rank of a VAR Process
 with Structural Shifts." >i>Journal of Business and Economic
 Statistics>/i> 18, no. 4: 451-464.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>25</BIBL>	<BIBTEXT> Sims, C.A., and T. Zha. 2006. "Does
 Monetary Policy Generate Recessions?" >i>Macroeconomic Dynamics>/i> 10,
 no. 2: 231-272.</BIBTEXT>	</REF>	    <REF>	 <BIBL>26</BIBL>   
     <BIBTEXT> Sutela, P. 2000. "The Financial Crisis in Russia." In
 >i>Global Financial Crisis: Lessons from Recent Events>/i>, ed. J.
 Bisignano, W. Hunter, and G. Kaufman, pp. 63-76. Norwell, MA:
 Kluwer.</BIBTEXT>	</REF>	    <REF>	 <BIBL>27</BIBL>       
 <BIBTEXT> Svensson, L.E.O. 2000. "Does the P* Model Provide Any Rationale
 for Monetary Targeting?" >i>German Economic Review>/i> 1, no. 1:
 69-81.</BIBTEXT>      </REF>	   <REF>	<BIBL>28</BIBL>       
 <BIBTEXT> TÃƒÂ¶dter, K.-H., and H.-E. Reimers. 1994. "P-Star as a Link
 Between Money and Prices in Germany." >i>Weltwirtschaftliches Archiv>/i>
 130, no. 2: 273-289.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>29</BIBL>	<BIBTEXT> Vdovichenko, A.G., and V.G. Voronina.
 2006. "Monetary Policy Rules and Their Application in Russia." >i>Research
 in International Business and Finance>/i> 20, no. 1: 145-162.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>30</BIBL>	   <BIBTEXT> Vymyatnina, Y.
 2006. "Monetary Policy Transmission and CBR Monetary Policy." In >i>Return
 to Growth in CIS Countries: Monetary Policy and Macroeconomic
 Framework>/i>, ed. L. Vinhas de Souza and O. Havrylyshyn, pp. 23-39.
 Berlin: Springer.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:5-19




Template-Type: ReDIF-Article 1.0
Author-Name: ÃƒÂ–zgÃƒÂ¼r  Arslan 
Author-X-Name-First: ÃƒÂ–zgÃƒÂ¼r  
Author-X-Name-Last: Arslan 
Author-Name: Mehmet Baha Karan 
Author-X-Name-First: Mehmet Baha 
Author-X-Name-Last: Karan 
Title: Consumer Credit Risk Characteristics: Understanding Income and Expense Differentials 
Abstract:
 This study investigates the consumer credit risk characteristics of
 Turkish households by analyzing factors related to their income and
 expense differentials. This study assumes that the income and expense
 patterns are the key elements of consumer credit risk. Based on a data set
 ranging from 8,551 to 25,566 households, during the period 2003-5, we
 employ a logistic regression method to model the determinants of income
 and expense differentials. We first concentrate on the income-expense
 balance of households to highlight those that are eligible for consumer
 credit. We reinforce our results by further analyzing the expenditure
 behaviors of households to find those that should be either primarily
 eliminated or targeted for consumer credit by financial institutions. Our
 overall results provide evidence on the factors identifying household
 income and expense profiles and, hence, consumer credit risk
 characteristics of Turkish households.
Journal: Emerging Markets Finance and Trade 
Pages: 20-37 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: consumer credit, credit risks, logistic regressions, Turkish households, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=DH05757526462354 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ando, A., and F.
 Modigliani. 1963. "The Life Cycle Hypothesis of Saving: Aggregate
 Implications and Tests." >i>American Economic Review>/i> 53, no. 1:
 55-84.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT> Bae, M.; S. Hanna; and S.C. Lindamood. 1993. "Patterns of
 Overspending in U.S. Households." >i>Financial Counseling and Planning>/i>
 4: 11-30.</BIBTEXT>	  </REF>      <REF>	   <BIBL>3</BIBL>	
 <BIBTEXT> Bank for International Settlements (BIS). 2006. "Housing Finance
 in the Global Financial Market." Working Group Report Paper no. 26,
 Basel.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT> BaÃ…ÂŸÃƒÂ§Ã„Â±, E. 2006. "Credit Growth in Turkey: Drivers and
 Challenges." Paper no. 28, Bank for International Settlements,
 Basel.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> Becker, G.S. 1993. >i>Human Capital: A Theoretical and Empirical
 Analysis with Special Reference to Education>/i>, 3d ed. Chicago:
 University of Chicago Press.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>6</BIBL>        <BIBTEXT> Bucks, B.K.; A.B. Kennickell; and K.B.
 Moore. 2006. "Recent Changes in U.S. Family Finances: Evidence from the
 2001 and 2004 Survey of Consumer Finances." >i>Federal Reserve
 Bulletin>/i> 92, no. 3: 1-38.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>7</BIBL>        <BIBTEXT> Calem, P.S., and L.J. Mester. 1995.
 "Consumer Behavior and the Stickiness of Credit-Card Interest Rates."
 >i>American Economic Review>/i> 85, no. 5: 1327-1336.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Carling, K.; T.
 Jacobson; J. LindÃƒÂ©; and K. Roszbach. 2007. "Corporate Credit Risk
 Modeling and the Macroeconomy." >i>Journal of Banking and Finance>/i> 31,
 no. 3: 845-868.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT> Crook, J. 1996. "Credit Constraints and U.S. Households."
 >i>Applied Financial Economics>/i> 6, no. 6: 477-485.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Cutts, A.C.;
 R.A. Van Order; and P.M. Zorn. 2000. "Lemons with a Twist: The Role of the
 Secondary Market in Market Evolution." Paper presented at the 2000 annual
 ASSA (Allied Social Science Association)/AREUEA (American Real Estate and
 Urban Economics Association) Meetings, Boston, January 1-3.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> DeVaney, S.A.,
 and S.T. Anong. 2007. "Income Quintiles: Examining Changes in the
 Characteristics of Respondents." >i>Financial Counseling and Planning>/i>
 18, no. 2: 19-34.</BIBTEXT>	  </REF>      <REF>	   <BIBL>12</BIBL> 
       <BIBTEXT> Getter, D.E. 2006. "Consumer Credit Risk and Pricing."
 >i>Journal of Consumer Affairs>/i> 40, no. 1: 41-63.</BIBTEXT>      </REF>
      <REF>	   <BIBL>13</BIBL>	  <BIBTEXT> Hazembuller, A.; B.J.
 Lombardi; J.M. Hogarth. 2007. "Unlocking the Risk-Based Pricing Puzzle:
 Five Keys to Cutting Credit Card Costs." >i>Consumer Interests Annual>/i>
 53 (January): 73-85.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>14</BIBL>	<BIBTEXT> Hofstede, G. 1980. >i>Culture's
 Consequences>/i>. New York: Sage.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>15</BIBL>	<BIBTEXT> Keynes, J.M. 1936. >i>The General Theory
 of Employment, Interest and Money>/i>. London: Macmillan.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Lindamood, S.;
 S. Hanna; and L. Bi. 2007. "Using the Survey of Consumer Finances: Some
 Methodological Considerations and Issues." >i>Journal of Consumer
 Affairs>/i> 41, no. 2: 195-222.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>17</BIBL>	<BIBTEXT> ÃƒÂ–zdemir, ÃƒÂ–., and L. Boran 2004. "An
 Empirical Investigation on Consumer Credit Default Risk." Discussion Paper
 no. 2004/20, Turkish Economic Association, Ankara.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>18</BIBL>	<BIBTEXT> Sexton, D.E. 1977.
 "Determining Good and Bad Credit Risks Among High and Low Income
 Families." >i>Journal of Business>/i> 50, no. 2: 236-239.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Swain, R.B.
 2007. "The Demand and Supply of Credit for Households." >i>Applied
 Economics>/i> 39, no. 21 (August): 1-12.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>20</BIBL>	      <BIBTEXT> Yellen, J.L. 2006. >i>Economic
 Inequality in the United States>/i>. Irvine: University of
 California.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:20-37




Template-Type: ReDIF-Article 1.0
Author-Name: Berna  Kirkulak 
Author-X-Name-First: Berna  
Author-X-Name-Last: Kirkulak 
Author-Name: Guluzar  Kurt 
Author-X-Name-First: Guluzar  
Author-X-Name-Last: Kurt 
Title: Are Dividends Disappearing or Shrinking? Evidence from the Istanbul Stock Exchange 
Abstract:
 This paper examines the dividend payment decision of publicly owned firms
 listed on the Istanbul Stock Exchange (ISE) from 1991 through 2006. There
 is a decline in the percentage of net dividend payers, accompanied by a
 decline in the aggregate level of net real dividends paid. Contrary to the
 situation in developed markets, earnings and dividends concentration have
 declined over the sample period. The first mandatory dividend payment
 regulation pushed some firms to collect the distributed dividends back
 through rights issues and this resulted in low net dividend payments. One
 of the striking findings of this paper reveals that a majority of ISE
 firms prefer dividend omissions rather than dividend reductions. Once a
 firm keeps paying dividends, it puts much effort into increasing dividend
 payments rather than reducing them. Further, dividend payment and
 reduction decisions are affected by the current earnings of the firm and
 financial crisis significantly explains both the dividend payment and
 dividend reduction decisions.
Journal: Emerging Markets Finance and Trade 
Pages: 38-52 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: dividend concentration, dividend reductions and omissions, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E203752517R80Q8L 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adaoglu, C. 1999.
 "Regulation Influence on the Dividend Policy of the Istanbul Stock
 Exchange (ISE) Corporations." >i>Istanbul Stock Exchange Review>/i> 3, no.
 11: 1-19.</BIBTEXT>	  </REF>      <REF>	   <BIBL>2</BIBL>	
 <BIBTEXT> Adaoglu, C. 2000. "Instability in the Dividend Policy of the
 Istanbul Stock Exchange (ISE) Corporations: Evidence from an Emerging
 Market." >i>Emerging Markets Review>/i> 1, no. 3: 252-270.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Agrawal, A., and
 N. Jayaraman. 1994. "The Dividend Policies of All Equity Firms: A Direct
 Test of the Free Cash Flow Theory." >i>Managerial and Decision
 Economics>/i> 15, no. 2: 139-148.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>4</BIBL>        <BIBTEXT> Aivazian, V.; L. Booth; and S. Clearly.
 2003. "Do Emerging Market Firms Follow Different Dividend Policies from
 U.S. Firms?" >i>Journal of Financial Research>/i> 26, no. 3:
 371-387.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Ap Gwilym, O.; J. Seaton; and S. Thomas. 2004. "Dividends Aren't
 Disappearing: Evidence from the UK." Discussion Papers in Accounting and
 Finance no. AF04-15, University of Southampton, United Kingdom.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Baker, H.K.;
 G. Farrelly; and R. Edelman. 1985. "A Survey of Management Views on
 Dividend Policy." >i>Financial Management>/i> 14 (Autumn):
 78-84.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	     
 <BIBTEXT> Baker, K.; T. Mukherjee; and O. Paskelian. 2005. "How Norwegian
 Managers View Dividend Policy." Working paper, University of New
 Orleans.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Bar-Yosef, S., and L. Huffman. 1986. "The Information Content of
 Dividends: A Signaling Approach." >i>Journal of Financial and Quantitative
 Analysis>/i> 21: 47-58.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>9</BIBL>        <BIBTEXT> Bhattacharya, S. 1979. "Imperfect
 Information, Dividend Policy, and Ã¢Â€Â˜the Bird in the HandÃ¢Â€Â™ Fallacy."
 >i>Bell Journal of Economics>/i> 10, no. 1: 259-270.</BIBTEXT>      </REF>
      <REF>	   <BIBL>10</BIBL>	  <BIBTEXT> Bhattacharya, S. 1980.
 "Nondissipative Signaling Structures and Dividend Policy." >i>Quarterly
 Journal of Economics>/i> 95, no. 8: 1-24.</BIBTEXT>	  </REF>      <REF>
	<BIBL>11</BIBL>        <BIBTEXT> Booth, L.; V. Aivazian; A. Kunt;
 and V. Maksimovic. 2001. "Capital Structure in Developing Countries."
 >i>Journal of Finance>/i> 56, no. 1: 87-130.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT> DeAngelo, H., and L.
 DeAngelo. 1990. "Dividend Policy and Financial Distress: An Empirical
 Investigation of Troubled NYSE Firms." >i>Journal of Finance>/i> 45, no.
 5: 1415-1431.</BIBTEXT>      </REF>	  <REF>        <BIBL>13</BIBL>	   
   <BIBTEXT> DeAngelo, H.; L. DeAngelo; and D. Skinner. 1992. "Dividends
 and Losses." >i>Journal of Finance>/i> 47, no. 5: 1837-1863.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>14</BIBL>	  <BIBTEXT> DeAngelo, H.;
 L. DeAngelo; and D. Skinner. 1996. "Reversal of Fortune: Dividend
 Signaling and the Disappearance of Sustained Earnings Growth." >i>Journal
 of Financial Economics>/i> 40, no. 3: 341-371.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> DeAngelo, H.; L. DeAngelo;
 and D. Skinner. 2004. "Are Dividends Disappearing? Dividend Concentration
 and the Consolidation of Earnings." >i>Journal of Financial Economics>/i>
 72, no. 3: 425-456.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>16</BIBL>	<BIBTEXT> Fama, E., and K. French. 2001.
 "Disappearing Dividends: Changing Firm Characteristics or Lower Propensity
 to Pay?" >i>Journal of Financial Economics>/i> 60, no. 1: 3-43.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Ferris,
 P.S.; N. Sen; and P.H. Yui. 2006. "Are Fewer Firms Paying More Dividends?
 The International Evidence." >i>Journal of Financial Management>/i> 16,
 no. 4: 333-362.</BIBTEXT>	</REF>	    <REF>	 <BIBL>18</BIBL>   
     <BIBTEXT> Goergen, M.; L. Renneboog; and C.L. Silva. 2005. "When Do
 German Firms Change Their Dividends?" >i>Journal of Corporate Finance>/i>
 11, nos. 1-2: 375-399.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>19</BIBL>	<BIBTEXT> Gugler, K., and B.B. Yurtoglu. 2003.
 "Corporate Governance and Dividend Pay-Out Policy in Germany." >i>European
 Economic Review>/i> 47, no. 4: 731-758.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>20</BIBL>	     <BIBTEXT> Healy, M.P., and K. Palepu. 1988.
 "Earnings Information Conveyed by Dividend Initiations and Omissions."
 >i>Journal of Financial Economics>/i> 21, no. 2: 149-175.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Jensen, M.C.
 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers."
 >i>American Economic Review>/i> 76, no. 2: 323-329.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>22</BIBL>	 <BIBTEXT> Kato, K.H.; U.
 Loewenstein; and W. Tsay. 2002. "Dividend Policy, Cash Flow, and
 Investment in Japan." >i>Pacific-Basin Finance Journal>/i> 10, no. 4:
 443-473.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; and A. Shleifer. 1999.
 "Corporate Ownership Around the World." >i>Journal of Finance>/i> 54, no.
 2: 471-517.</BIBTEXT>	    </REF>	<REF>	     <BIBL>24</BIBL>	   
 <BIBTEXT> Lau, A. 1987. "A Five-State Financial Distress Prediction
 Model." >i>Journal of Accounting Research>/i> 25, no. 1 (Spring):
 127-138.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> Lie, E. 2005. "Operating Performance Following Dividend
 Decreases and Omissions." >i>Journal of Corporate Finance>/i> 12, no. 1:
 27-53.</BIBTEXT>      </REF>	   <REF>	<BIBL>26</BIBL>       
 <BIBTEXT> Lintner, J. 1956. "Distribution of Incomes of Corporations Among
 Dividends, Retained Earnings, and Taxes." >i>American Economic Review>/i>
 46, no. 2: 97-113.</BIBTEXT>	   </REF>      <REF>	    <BIBL>27</BIBL>
	<BIBTEXT> Miller, M., and F. Modigliani. 1961. "Dividend Policy,
 Growth, and the Valuation of Shares." >i>Journal of Business>/i> 34, no.
 4: 411-433.</BIBTEXT>	    </REF>	<REF>	     <BIBL>28</BIBL>	   
 <BIBTEXT> Miller, M., and K. Rock. 1985. "Dividend Policy Under Asymmetric
 Information." >i>Journal of Finance>/i> 40, no. 4: 1031-1051.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>29</BIBL>	   <BIBTEXT> Reddy, Y.S.,
 and S. Rath. 2005. "Disappearing Dividends in Emerging Markets: Evidence
 from India." >i>Emerging Markets Finance and Trade>/i> 41, no. 6
 (November-December): 58-82.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>30</BIBL>	<BIBTEXT> Von Eije, H., and W. Megginson. 2006.
 "Dividend Policy in the European Union." Working paper, University of
 Oklahoma, Norman.</BIBTEXT>	  </REF>      <REF>	   <BIBL>31</BIBL> 
       <BIBTEXT> Yilmaz, K.M. 2003. "Hisse Senetleri IMKB'de Ã„Â°Ã…ÂŸlem GÃƒÂ¶ren
 Ã…Âžirketlerin TemettÃƒÂ¼ PolitikalarÃ„Â± Uzerine bir Analiz: Nakit
 TemettÃƒÂ¼-sektÃƒÂ¶r DavranÃ„Â±Ã…ÂŸÃ„Â± Ã„Â°liÃ…ÂŸkisi" [An Analysis on the Dividend
 Policy of the Istanbul Stock Exchange (ISE) Corporations: Cash
 Dividend-Industry Behavior Relation]. >i>IMKB Dergisi>/i> 25-26:
 17-40.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:38-52




Template-Type: ReDIF-Article 1.0
Author-Name: Saadet  Kasman 
Author-X-Name-First: Saadet  
Author-X-Name-Last: Kasman 
Author-Name: Adnan  Kasman 
Author-X-Name-First: Adnan  
Author-X-Name-Last: Kasman 
Author-Name: Duygu  Ayhan 
Author-X-Name-First: Duygu  
Author-X-Name-Last: Ayhan 
Title: Testing the Purchasing Power Parity Hypothesis for the New Member and Candidate Countries of the European Union: Evidence from Lagrange Multiplier Unit Root Tests with Structural Breaks 
Abstract:
 This paper investigates the validity of purchasing power parity (PPP) for
 the eleven Central and East European transition countries and three market
 economy countries, Cyprus, Malta, and Turkey. Unlike previous studies on
 PPP, this study uses Lagrange multiplier (LM) unit root tests that
 incorporate structural breaks in the data series. The findings indicate
 that in cases of one and two structural breaks, for a U.S. dollar-based
 real exchange rate series, there is little evidence supporting the
 validity of PPP. For a deutsche mark-based real exchange rate series, for
 the cases of both one and two breaks, there is evidence of stationarity of
 real exchange rates for eight sample countries, which is consistent with
 PPP. The results also indicate that the estimated half-life of a shock to
 the real exchange rate ranges from 1.25 (15.05 months) to 2.72 (32.72
 months) years across countries. The empirical findings may provide
 direction for policy makers to coordinate monetary policies for the
 process of European monetary integration.
Journal: Emerging Markets Finance and Trade 
Pages: 53-65 
Issue: 2 
Volume: 46 
Year: 2010 
Month: 3 
Keywords: Central and Eastern European countries, European monetary integration, purchasing power parity, structural breaks, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=P904W653675623KU 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alba, J.D., and D.
 Park. 2005. "An Empirical Investigation of Purchasing Power Parity (PPP)
 for Turkey." >i>Journal of Policy Modelling>/i> 27, no. 8:
 989-1000.</BIBTEXT>	  </REF>      <REF>	   <BIBL>2</BIBL>	
 <BIBTEXT> Baharumshah, A.Z.; C. Tze-Haw; and S. Fountas. 2008.
 "Reexamining Purchasing Power Parity for East Asian Currencies:
 1976-2002." >i>Applied Financial Economics>/i> 18, no. 1: 75-85.</BIBTEXT>
      </REF>	  <REF>        <BIBL>3</BIBL>	     <BIBTEXT> Barlow, D.
 2003. "Purchasing Power Parity in Three Transition Economies."
 >i>Economics of Planning>/i> 36, no. 3: 201-221.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>4</BIBL>	     <BIBTEXT> Barlow, D., and R.
 Radulescu. 2002. "Purchasing Power Parity in Transition Economies: The
 Case of the Romanian Leu Against the Dollar." >i>Post-Communist
 Economies>/i> 14, no. 1: 123-135.</BIBTEXT>	  </REF>      <REF>	  
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:2:p:53-65




Template-Type: ReDIF-Article 1.0
Author-Name: Richard Frensch 
Author-X-Name-First: Richard 
Author-X-Name-Last: Frensch 
Title: Trade Liberalization and Import Margins 
Abstract:
 Trade policy has well-documented effects on trade volumes. Reaching beyond
 volumes, I explore the effect of European emerging economies' recent
 institutional trade liberalization on extensive (i.e., the set of imported
 goods) versus intensive import margins (volumes per imported good) with
 highly disaggregated data. Differentiating goods categories by use, I find
 robust evidence of stronger extensive import margin effects of
 liberalization for intermediate and capital goods compared to consumer
 goods. This identifies an important channel for the link between reforms
 and growth in transition. The results also support new models of
 heterogeneous firms and trade, which predict that extensive import margin
 effects of a country's institutional trade liberalization shouldÃ¢Â€Â”through
 lowering fixed costs for rest-of-the-world exportersÃ¢Â€Â”increase with
 decreasing substitutability among products.
Journal: Emerging Markets Finance and Trade 
Pages: 4-22 
Issue: 3 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: gravity, product variety, trade liberalization, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=4QH45Q31416T2326 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Amiti, M., and J.
 Konings. 2007. "Trade Liberalization, Intermediate Inputs, and
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 <BIBTEXT> Crozet, M., and P. Koenig. 2007. "Structural Gravity Equations
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:3:p:4-22




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 3 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B00046R2551R1733 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:46:y:2010:i:3:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee 
Author-X-Name-First: Mohsen 
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Magda Kandil 
Author-X-Name-First: Magda 
Author-X-Name-Last: Kandil 
Title: Exchange Rate Fluctuations and Output in Oil-Producing Countries: The Case of Iran 
Abstract:
 Conventional wisdom states that currency depreciation in oil-producing
 countries is contractionary because demand effects, limited by the
 prevalence of oil exports priced in dollars, are more than offset by
 adverse supply effects. Iran, however, has experienced a rapid increase in
 nonoil exports in the past decade. Against this background, the paper
 tests whether the conventional wisdom still applies to Iran and concludes
 that the emergence of the nonoil export sector has made currency
 depreciation expansionary. The expansionary effect is particularly evident
 regarding anticipated persistent depreciation in the long run.
 Notwithstanding the varying effects of exchange rate fluctuations on the
 demand and supply sides of the economy, managing a flexible exchange rate
 gradually over time toward achieving stability in the real effective
 exchange rate may strike the necessary balance.
Journal: Emerging Markets Finance and Trade 
Pages: 23-45 
Issue: 3 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: currency depreciation, imported inputs, Iran, nonoil exports, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C8770260271M2132 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 the U. S.: Theory and Evidence." >i>Journal of International Money and
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 <BIBL>29</BIBL>	<BIBTEXT> Kandil, M., and A. Mirzaie. 2003. "The
 Effects of Dollar Appreciation on Sectoral Labor Market Adjustments:
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 no. 1: 89-117.</BIBTEXT>      </REF>	   <REF>	<BIBL>30</BIBL>    
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 Rate Fluctuations on Output and Prices: Evidence from Developing
 Countries." >i>Journal of Developing Areas>/i> 38, no. 2:
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 Devaluation." >i>Journal of International Economics>/i> 8, no. 3:
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 from Mexico." >i>Journal of Development Economics>/i> 46, no. 2:
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 Disinflation Program: An Exchange Rate-Based Stabilization?" Working Paper
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 "Contractionary Devaluation in the Southern Cone: The Case of Chile."
 >i>Journal of Development Economics>/i> 23, no. 1: 135-151.</BIBTEXT>	   
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 1999. "The Impact of Devaluation on Macroeconomic Performance: The Case of
 Ethiopia." >i>Journal of Policy Modeling>/i> 21, no. 4: 481-496.</BIBTEXT>
      </REF>	
Handle: RePEc:mes:emfitr:v:46:y:2010:i:3:p:23-45




Template-Type: ReDIF-Article 1.0
Author-Name: Hongshik Lee 
Author-X-Name-First: Hongshik 
Author-X-Name-Last: Lee 
Title: The Destination of Outward FDI and the Performance of South Korean Multinationals 
Abstract:
 This paper examines how the destination of outward foreign direct
 investment (FDI) affects South Korean multinational parent firms. We
 categorize host countries into those that are developed and those that are
 less developed. We find that destination matters for employment and
 capital intensity. FDI into less developed countries is negatively
 associated with a firm's employment and positively associated with its
 capital intensity. However, FDI into developed countries does not seem to
 matter: the parent firm's activities do not change significantly after FDI
 has been made. These results may indicate that Korean FDI into less
 developed countries is a relocation of production lines to overseas
 affiliates and FDI into developed countries is done to extend markets.
Journal: Emerging Markets Finance and Trade 
Pages: 59-66 
Issue: 3 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: foreign direct investment, multinationals, South Korea, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D568767585504537 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bernard, A., and J.
 Jensen. 1999. "Exceptional Exporters Performance: Cause, Effect, or Both?"
 >i>Journal of International Economics>/i> 47, no. 1: 1-25.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Blomstrom, M.; R.
 E. Lipsey; and K. Kulchcky. 1988. "U. S. and Swedish Direct Investment and
 Exports." In >i>Trade Policy Issues and Empirical Analysis>/i>, ed. R. E.
 Baldwin, pp. 257-302. Chicago: University of Chicago Press.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Blonigen, B. A.
 2001. "In Search of Substitution Between Foreign Production and Exports."
 >i>Journal of International Economics>/i> 53, no. 1: 81-104.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>4</BIBL>	 <BIBTEXT> Braconier, H.,
 and K. Ekholm. 2001. "Foreign Direct Investment in Central and Eastern
 Europe: Employment Effects in the EU." Discussion Paper no. 3052, Center
 for Economic and Policy Research, Washington, DC.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>5</BIBL>	      <BIBTEXT> Brainard, S. L. 1997. "An
 Empirical Assessment of the Proximity-Concentration Tradeoff Between
 Multinational Sales and Trade." >i>American Economic Review>/i> 87, no. 4:
 520-544.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Brainard, S. L., and D. A. Riker. 1997. "Are U. S.
 Multinationals Exporting U. S. Jobs?" Working Paper no. 5958, National
 Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> Debaere, P.; H. Lee; and J.
 H. Lee. Forthcoming. "It Matters Where You Go: Outward Foreign Direct
 Investment and Multinational Employment Growth at Home." >i>Journal of
 Development Economics.>/i></BIBTEXT>	   </REF>      <REF>	   
 <BIBL>8</BIBL>        <BIBTEXT> Hansson, P. 2005. "Skill Upgrading and
 Production Transfer Within Swedish Multinationals." >i>Scandinavian
 Journal of Economics>/i> 107, no. 4: 673-692.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Head, K., and J. Ries. 2001.
 "Overseas Investment and Firm Exports." >i>Review of International
 Economics>/i> 9, no. 1: 108-122.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>10</BIBL>	<BIBTEXT> Head, K., and J. Ries. 2002. "Offshore
 Production and Skill Upgrading by Japanese Manufacturing Firms."
 >i>Journal of International Economics>/i> 58, no. 1: 81-105.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>11</BIBL>	  <BIBTEXT> Helpman, E.
 1984. "A Simple Theory of International Trade with Multinational
 Corporations." >i>Journal of Political Economy>/i> 92, no. 3:
 451-471.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Lipsey, R. 1994. "Outward Direct Investment and U. S. Economy."
 Working Paper no. 4691, National Bureau of Economic Research, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>13</BIBL>	   
 <BIBTEXT> Lipsey, R., and N. Y. Weiss. 1981. "Foreign Production and
 Exports in Manufacturing Industries." >i>Review of Economics and
 Statistics>/i> 63, no. 3: 488-494.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT> Lipsey, R.; E. D. Ramstetter; and M.
 Blomstrom. 2000. "Outward FDI and Parent Exports and Employment: Japan,
 the United States, and Sweden." Working Paper no. 7623, National Bureau of
 Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>15</BIBL>	<BIBTEXT> Markusen, J. R. 1984. "Multinationals,
 Multiplant Economies, and the Gains from Trade." >i>Journal of
 International Economics>/i> 16, nos. 3-4: 205-226.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>16</BIBL>	<BIBTEXT> Navaretti, G. B., and A.
 J. Venables. 2004. >i>Multinational Firms in the World Economy.>/i>
 Princeton: NJ: Princeton University Press.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Slaughter, M. J. 2000.
 "Production Transfer Within Multinational Enterprises and American Wages."
 >i>Journal of International Economics>/i> 50, no. 2: 449-472.</BIBTEXT>   
   </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:3:p:59-66




Template-Type: ReDIF-Article 1.0
Author-Name: FÃƒÂ©lix J. LÃƒÂ³pez Iturriaga 
Author-X-Name-First: FÃƒÂ©lix J. LÃƒÂ³pez 
Author-X-Name-Last: Iturriaga 
Author-Name: Vicente Lima CrisÃƒÂ³stomo 
Author-X-Name-First: Vicente Lima 
Author-X-Name-Last: CrisÃƒÂ³stomo 
Title: Do Leverage, Dividend Payout, and Ownership Concentration Influence Firms' Value Creation? An Analysis of Brazilian Firms 
Abstract:
 This study uses a sample of 213 Brazilian firms listed between 1995 and
 2004 to examine the effect of the presence or absence of growth
 opportunities on the subsequent effect of leverage, dividend payout, and
 ownership concentration on firm value. First, we find that leverage plays
 a dual role: whereas it negatively affects the value of firms with growth
 opportunities (i.e., underinvestment theory), it positively affects the
 value of firms without growth opportunities (i.e., overinvestment theory).
 Second, we find that dividends play a disciplinary role in firms with
 fewer growth opportunities by reducing free cash flow under managerial
 control. Finally, the results show that ownership structure has a
 nonlinear effectÃ¢Â€Â”that is, ownership concentration initially improves the
 value of most firms. However, after a certain threshold, in firms with
 growth opportunities, the risk increases that large shareholders
 expropriate wealth at the expense of minority shareholders.
Journal: Emerging Markets Finance and Trade 
Pages: 80-94 
Issue: 3 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: agency theory, dividends, growth opportunities, leverage, ownership structure, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E001540L55353828 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abor, J., and N.
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 B. Yeung. 2005. "Corporate Governance, Economic Entrenchment, and Growth."
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 <BIBTEXT> Rodrigues, D. A. 2000. "Os Investimentos no Brasil nos Anos 90:
 CenÃƒÂ¡rios Setorial e Regional" [Capital Expenditures in Brazil in the
 1990s: Industry and Regional Analysis]. >i>Revista do BNDES>/i> 7, no. 13:
 107-136 (available at >a target="_blank"
 href='http://www.bndes.gov.br/conhecimento/revista/rev1306.pdf'>www.bndes.
 gov.br/conhecimento/revista/rev1306.pdf>/a></BIBTEXT>	    </REF>     
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 Concentration and Firm Value." >i>Emerging Markets Finance and Trade>/i>
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	<BIBTEXT> Servaes, H. 1996. "The Value of Diversification During
 the Conglomerate Merger Wave." >i>Journal of Finance>/i> 51, no. 4:
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 <BIBTEXT> Shleifer, A., and R. W. Vishny. 1997. "A Survey of Corporate
 Governance." >i>Journal of Finance>/i> 52, no. 2: 737-782.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>61</BIBL>	 <BIBTEXT> Singh, M., and
 S. Faircloth. 2005. "The Impact of Corporate Debt on Long Term Investment
 and Firm Performance." >i>Applied Economics>/i> 37, no. 8:
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 <BIBTEXT> Siqueira, T. V. 1998. "ConcentraÃƒÂ§ÃƒÂ£o da Propriedade nas
 Empresas Brasileiras de Capital Aberto" [Ownership Concentration in Open
 Equity Brazilian Firms]. >i>Revista do BNDES>/i> 10: 1-24 (available at >a
 target="_blank"
 href='http://www.bndes.gov.br/conhecimento/revista/rev1002.pdf'>www.bndes.
 gov.br/conhecimento/revista/rev1002.pdf>/a></BIBTEXT>	    </REF>     
 <REF>	      <BIBL>63</BIBL>	     <BIBTEXT> Smith, C. W., and R. Watts.
 1992. "The Investment Opportunity Set and Corporate Financing, Dividend,
 and Compensation Policies." >i>Journal of Financial Economics>/i> 32, no.
 3: 263-292.</BIBTEXT>	    </REF>	<REF>	     <BIBL>64</BIBL>	   
 <BIBTEXT> Studart, R. 2000. "Financial Opening and Deregulation in Brazil
 in the 1990s: Moving Towards a New Pattern of Development Financing?"
 >i>Quarterly Review of Economics and Finance>/i> 40, no. 1:
 25-44.</BIBTEXT>      </REF>	   <REF>	<BIBL>65</BIBL>       
 <BIBTEXT> Terra, M. C. T. 2003. "Credit Constraints in Brazilian Firms:
 Evidence from Panel Data." >i>Revista Brasileira de Economia>/i> 57, no.
 2: 443-464.</BIBTEXT>	    </REF>	<REF>	     <BIBL>66</BIBL>	   
 <BIBTEXT> Torre, A.; J. C. Gozzi; and S. L. Schmukler. 2007. "Capital
 Market Development: Whither Latin America?" Policy Research Working Paper
 Series no. 4156, World Bank, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>67</BIBL>	     <BIBTEXT> Villalonga, B., and R. Amit.
 2006. "How Do Family Ownership, Control, and Management Affect Firm
 Value?" >i>Journal of Financial Economics>/i> 80, no. 2:
 385-417.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:3:p:80-94




Template-Type: ReDIF-Article 1.0
Author-Name: Gregory Clare 
Author-X-Name-First: Gregory 
Author-X-Name-Last: Clare 
Author-Name: Ira N. Gang 
Author-X-Name-First: Ira N. 
Author-X-Name-Last: Gang 
Title: Exchange Rate and Political Risks, Again 
Abstract:
 We examine the effects of exchange rate and political risks on foreign
 direct investment (FDI) for multinationals. We examine FDI by U. S. firms
 at two levels: in all industries and on the subset of firms in
 manufacturing industries. When investing in developed economies, firms
 appear to consider past and present variation in exchange rates. When
 investing in less developed nations, past and present variation does not
 appear to weigh as heavily as present and future variation. Decreasing
 political risk increases FDI.
Journal: Emerging Markets Finance and Trade 
Pages: 46-58 
Issue: 3 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: exchange rates, foreign direct investment, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=VP1M818351L2H454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Benassy-Quere, A.; L.
 Fontagne; and A. Lahreche-Revil. 2001. "Exchange-Rate Strategies in the
 Competition for Attracting Foreign Direct Investment." >i>Journal of the
 Japanese and International Economies>/i> 15, no. 2: 178-198.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>2</BIBL>	 <BIBTEXT> Biswas, R. 2002.
 "Determinants of Foreign Direct Investment." >i>Review of Development
 Economics>/i> 6, no. 3: 492-504.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>3</BIBL>        <BIBTEXT> Brzozowski, M. 2006. "Exchange Rate
 Variability and Foreign Direct Investment Consequences of EMU
 Enlargement." >i>Eastern European Economics>/i> 44, no. 1: 5-24.</BIBTEXT>
      </REF>	  <REF>        <BIBL>4</BIBL>	     <BIBTEXT> Busse, M.,
 and C. Hefeker. 2007. "Political Risk, Institutions, and Foreign Direct
 Investment." >i>European Journal of Political Economy>/i> 23, no. 2:
 397-415.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Carstensen, K., and F. Toubal. 2004. "Foreign Direct Investment
 in Central and Eastern European Countries: A Dynamic Panel Analysis."
 >i>Journal of Comparative Economics>/i> 32, no. 1: 3-22.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Clare, G. 1992.
 "The Impact of Exchange Rate Risk on the Foreign Direct Investment of U.
 S. Multinational Manufacturing Companies." >i>Open Economies Review>/i> 3,
 no. 2: 143-163.</BIBTEXT>	</REF>	    <REF>	 <BIBL>7</BIBL>    
    <BIBTEXT> Clare, G. 1998. "A Basic Model Incorporating Exchange Rate
 Risk in the Foreign Direct Investment Decision." >i>Journal of Economic
 Development>/i> 23, no. 1: 57-75.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT> Clare, G., and I. N. Gang. 2009. "Exchange
 Rate and Political Risks, Again." Rutgers Economics Working Papers, New
 Brunswick, NJ.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	   
   <BIBTEXT> Cushman, D. 1985. "Real Exchange Rate Risk, Expectations, and
 the Level of Direct Investment." >i>Review of Economics and Statistics>/i>
 67, no. 2: 297-308.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>10</BIBL>	<BIBTEXT> Cushman, D. 1988. "Exchange Rate
 Uncertainty and Foreign Direct Investment in the United States."
 >i>Weltwirtschaftliches Archiv>/i> 124, no. 2: 322-336.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Economic Report
 of the President. 2006. >i>2006 Economic Report of the President.>/i>
 Washington, DC: U. S. Government Printing Office.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>12</BIBL>        <BIBTEXT> Goldberg, L. S., and C. D.
 Kolstad. 1995. "Foreign Direct Investment, Exchange Rate Variability, and
 Demand Uncertainty." >i>International Economic Review>/i> 36, no. 4:
 855-873.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Igawa, K. 1983. "Some Evidence Between Foreign Direct
 Investments and Foreign Exchange Rates." >i>Kobe Economic and Business
 Review>/i> 29: 21-32.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>14</BIBL>	<BIBTEXT> International Monetary Fund. 1999.
 >i>Direction of Trade Statistics Yearbook, 1999.>/i> Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>15</BIBL>	   
 <BIBTEXT> Kelly, M. E., and G. C. Philippatos. 1982. "Comparative Analysis
 of the Foreign Investment Evaluation Practices by U. S. Based
 Manufacturing Multinational Companies." >i>Journal of International
 Business Studies>/i> 13, no. 3 (Winter): 19-42.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Nigh, D. 1985. "The Effect
 of Political Events on United States Direct Foreign Investment: A Pooled
 Time-Series Cross-Sectional Analysis." >i>Journal of International
 Business Studies>/i> 16, no. 1 (Spring): 1-17.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> U. S. Bureau of Economic
 Analysis. 2004. >i>U. S. Direct Investment Abroad: Final Results from the
 1999 Benchmark Survey.>/i> Washington, DC: U. S. Government Printing
 Office.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:46:y:2010:i:3:p:46-58




Template-Type: ReDIF-Article 1.0
Author-Name: Bi-Huei Tsai 
Author-X-Name-First: Bi-Huei 
Author-X-Name-Last: Tsai 
Author-Name: Chih-Huei Chang 
Author-X-Name-First: Chih-Huei 
Author-X-Name-Last: Chang 
Title: Predicting Financial Distress Based on the Credit Cycle Index: A Two-Stage Empirical Analysis 
Abstract:
 Predictive models of financial distress are developed using the two-stage
 method applied to listed Taiwanese firms. Firm-specific financial ratios
 and market factors are adopted to measure the probability of financial
 distress based on the discrete-time hazard models of Shumway (2001). The
 Kim (1999) credit cycle index is further established using macroeconomic
 factors to determine the cutoff indicator of financial distress. The
 results demonstrate that performance improves as the distressed cutoff
 indicators are adjusted according to the credit cycle index in the
 two-stage models, suggesting that the model effectively predicts financial
 distress, particularly in emerging markets.
Journal: Emerging Markets Finance and Trade 
Pages: 67-79 
Issue: 3 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: credit risk, emerging market, logit model, Type I error, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W565W5651320K847 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Allen, L.; G. DeLong;
 and A. Saunders. 2004. "Issues in the Credit Risk Modeling of Retail
 Markets." >i>Journal of Banking and Finance>/i> 28, no. 4:
 727-752.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Altman, E. I.; B. Brady; A. Reti; and A. Sironi. 2005. "The Link
 Between Default and Recovery Rates: Theory, Empirical Evidence, and
 Implications." >i>Journal of Business>/i> 78, no. 6: 2203-2227.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Basel
 Committee on Banking Supervision. 2001. "The Internal Ratings-Based
 Approach." Basel Report, Bank for International Settlements,
 Basel.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT> Beaver, W. H. 1966. "Financial Ratios as Predictors of Failure:
 Empirical Research in Accounting: Selected Studies." >i>Journal of
 Accounting Research>/i> 4 (supplement): 71-111.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Begley, J.; J. Ming; and S.
 Watts. 1996. "Bankruptcy Classification Errors in the 1980s: An Empirical
 Analysis of Altman's and Ohlson's Models." >i>Review of Accounting
 Studies>/i> 1, no. 4: 267-284.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>6</BIBL>        <BIBTEXT> Belkin, B.; S. J. Suchower; and L. R.
 Forest. 1998a. "A One-Parameter Representation of Credit Risk and
 Transition Matrices." >i>CreditMetrics Monitor>/i> (third quarter):
 46-56.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	     
 <BIBTEXT> Belkin, B.; S. J. Suchower; and L. R. Forest. 1998b. "The Effect
 of Systematic Credit Risk on Loan Portfolio Value at Risk and on Loan
 Pricing." >i>CreditMetrics Monitor>/i> (first quarter): 17-28.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>8</BIBL>	   <BIBTEXT> Fuertes, A.
 and E. Kalotychou. 2006. "Early Warning Systems for Sovereign Debt Crises:
 The Role of Heterogeneity." >i>Computational Statistics and Data
 Analysis>/i> 51, no. 2: 1420-1441.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>9</BIBL>        <BIBTEXT> Gupton, G. M.; C. C. Finger; and M.
 Bhatia. 1997. >i>CreditMetric. Technical Document.>/i> New York: Morgan
 Guaranty Trust Company.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>10</BIBL>	<BIBTEXT> Hanson, S. G.; M. H. Pesaran; and T.
 Schuermann. 2008. "Firm Heterogeneity and Credit Risk Diversification."
 >i>Journal of Empirical Finance>/i> 15, no. 4: 583-612.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Kalotychou, E.,
 and A. Fuertes. 2007. "Optimal Early Warning Systems for Sovereign Debt
 Crises." >i>International Journal of Forecasting>/i> 23, no. 1:
 85-100.</BIBTEXT>	</REF>	    <REF>	 <BIBL>12</BIBL>       
 <BIBTEXT> Kalotychou, E., and S. K. Staikouras. 2005. "The Banking
 Exposure to International Lending: Regional Differences or Common
 Fundamentals?" >i>Financial Markets, Institutions, and Instruments>/i> 14,
 no. 4: 187-214.</BIBTEXT>	</REF>	    <REF>	 <BIBL>13</BIBL>   
     <BIBTEXT> Kalotychou, E., and S. K. Staikouras. 2006. "An Empirical
 Investigation of the Loan Concentration Risk in Latin America." >i>Journal
 of Multinational Financial Management>/i> 16, no. 4: 363-384.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>14</BIBL>	   <BIBTEXT> Kim, J. 1999.
 "A Way to Condition the Transition Matrix on Wind." Working paper,
 RiskMetrics Group, New York.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>15</BIBL>	<BIBTEXT> Lancaster, T. 1990. >i>The Econometric
 Analysis of Transition Data.>/i> New York: Cambridge University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>16</BIBL>       
 <BIBTEXT> McKee, T. E., and M. Greenstein. 2000. "Predicting Bankruptcy
 Using Recursive Partitioning and a Realistically Proportioned Data Set."
 >i>Journal of Forecasting>/i> 19, no. 3: 219-230.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>17</BIBL>        <BIBTEXT> Pompe, P. M., and J.
 Bilderbeek. 2005. "The Prediction of Bankruptcy of Small- and Medium-Sized
 Industrial Firms." >i>Journal of Business Venturing>/i> 20, no. 6:
 847-868.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT> Shumway, T. 2001. "Forecasting Bankruptcy More Accurately: A
 Simple Hazard Model." >i>Journal of Business>/i> 74, no. 1:
 101-124.</BIBTEXT>	 </REF>      <REF>	  <BIBL>19</BIBL>	
 <BIBTEXT> Staikouras, S. K. 2005. "Multinational Banks, Credit Risk, and
 Financial Crises." >i>Emerging Markets Finance and Trade>/i> 41, no. 2:
 82-106.</BIBTEXT>	</REF>	    <REF>	 <BIBL>20</BIBL>       
 <BIBTEXT> Vineet, A., and T. Richard. 2008. "Comparing the Performance of
 Market-Based and Accounting-Based Bankruptcy Prediction Models."
 >i>Journal of Banking and Finance>/i> 32, no. 8: 1541-1551.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Wilson, T. C.
 1997a. "Portfolio Credit Risk, I." >i>Risk Magazine>/i> (October):
 111-117.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Wilson, T. C. 1997b. "Portfolio Credit Risk, II." >i>Risk
 Magazine>/i> (November): 56-61.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>23</BIBL>	<BIBTEXT> Zmijewski, M. E. 1983. "Predicting
 Corporate Bankruptcy: An Empirical Comparison of the Extant Financial
 Distress Models." Working Paper, State University of New York at
 Buffalo.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:3:p:67-79




Template-Type: ReDIF-Article 1.0
Author-Name: JosÃƒÂ© Luis Gallizo 
Author-X-Name-First: JosÃƒÂ© Luis 
Author-X-Name-Last: Gallizo 
Author-Name: Ramon Saladrigues 
Author-X-Name-First: Ramon 
Author-X-Name-Last: Saladrigues 
Author-Name: Manuel Salvador 
Author-X-Name-First: Manuel 
Author-X-Name-Last: Salvador 
Title: Financial Convergence in Transition Economies: EU Enlargement 
Abstract:
 This paper analyzes the financial effect of the enlargement of the
 European Union (EU) to include ten new Central and East European countries
 (CEECs) on firms' business and financial structures. We employ
 quantitative analytic techniques and financial ratios to discover whether
 firms in the new EU member states tend to converge with businesses in the
 EU-15 in terms of the structure of their financial statements. We examine
 the extent to which the increasing integration of the former may foster
 the convergence of productive structures. We analyze the evolution of
 twelve financial ratios in a sample of firms obtained from the AMADEUS
 database, performing a dynamic factor analysis that identifies the
 determining factors of the joint evolution of deviations in financial
 ratios from the average values of EU-15 firms. This allows us to analyze
 the convergence in each of the CEECs toward the EU-15.
Journal: Emerging Markets Finance and Trade 
Pages: 95-114 
Issue: 3 
Volume: 46 
Year: 2010 
Month: 5 
Keywords: Bayesian inference, dynamic factor analysis, EU enlargement, financial convergence, financial ratios, financial structure, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X8728X8647857328 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 "International Differences in Capital Structure Norms: An Empirical Study
 of Large European Companies." >i>Management International Review>/i> 21,
 no. 1: 75-88.</BIBTEXT>      </REF>	  <REF>        <BIBL>2</BIBL>	   
  <BIBTEXT> Deliktas, E., and M. Balcilar. 2005. "A Comparative Analysis of
 Productivity Growth, Catch-Up, and Convergence in Transition Economies."
 >i>Emerging Markets Finance & Trade>/i> 41, no. 1 (January-February):
 6-28.</BIBTEXT>      </REF>	  <REF>        <BIBL>3</BIBL>	    
 <BIBTEXT> Eickmeier, S., and J. Breitung. 2006. "How Synchronized Are New
 EU Member States with the Euro Area? Evidence from a Structural Factor
 Model." >i>Journal of Comparative Economics>/i> 34, no. 3:
 538-563.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> European Commission. 1995. "Financial Situation of European
 Enterprises." >i>European Economy>/i>, Supplement A, no. 2 (February):
 1-26.</BIBTEXT>      </REF>	  <REF>        <BIBL>5</BIBL>	    
 <BIBTEXT> European Commission. 1997. "Financial Situation of European
 Enterprises." >i>European Economy>/i>, Supplement A, no. 7 (July):
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 Situation of European Enterprises." >i>European Economy>/i>, Supplement A,
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:3:p:95-114




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Chuan Huang 
Author-X-Name-First: Yu Chuan 
Author-X-Name-Last: Huang 
Author-Name: Shu Hui Chan 
Author-X-Name-First: Shu Hui 
Author-X-Name-Last: Chan 
Title: Trading Behavior on Expiration Days and Quarter-End Days: The Effect of a New Closing Method 
Abstract:
 On July 1, 2002, the Taiwan Stock Exchange changed its closing price
 procedure to a five-minute call auction. This paper examines different
 types of trader behavior at the close before and after institution of the
 new mechanism. The results show that, since the new mechanism was
 introduced, individuals have shifted their trades away from the closing
 interval to the preclosing interval, which worsens market liquidity at the
 close. This paper also finds that institutional investors try to influence
 closing prices for window dressing at quarter ends, whereas foreign
 institutions attempt to influence closing prices on the expiration days of
 index futures. After the new mechanism's introduction, neither the
 expiration-day effect nor the quarter-end-day effect disappeared. Despite
 this finding, the new mechanism does make it more difficult and costly for
 traders to attempt to influence the stock price.
Journal: Emerging Markets Finance and Trade 
Pages: 105-125 
Issue: 4 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: manipulation, market mechanism, trader behavior, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=0W36G3L375HX1454 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aiken, M.; C.
 Comerton-Forde; and A. Frino. 2005. Ã¢Â€ÂœClosing Call Auction and
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 and D. Gale. 1992. Ã¢Â€ÂœStock Price Manipulation.Ã¢Â€Â >i>Review of Financial
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 1990. Ã¢Â€ÂœStock Market Microstructure and Return Volatility: Evidence from
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 <BIBTEXT> Carhart, M.M.; R.D.K. Musto; and A.V. Reed. 2002. Ã¢Â€ÂœLeaning for
 the Tape: Evidence of Gaming Behavior in Equity Mutual Funds.Ã¢Â€Â
 >i>Journal of Finance>/i> 57, no. 2: 661-693.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Chang, R.P.; S.T. Hsu; N.K.
 Huang; and S.G. Rhee. 1999. Ã¢Â€ÂœThe Effects of Trading Methods on
 Volatility and Liquidity: Evidence from the Taiwan Stock Exchange.Ã¢Â€Â
 >i>Journal of Business, Finance, and Accounting>/i> 26, no. 1-2:
 137-170.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Chen, Y.F.; C.Y. Wang; and F.L. Lin. 2008. Ã¢Â€ÂœDo Qualified
 Foreign Institutional Investors Herd in Taiwan's Securities Market?Ã¢Â€Â
 >i>Emerging Markets Finance & Trade>/i> 44, no. 4 (July-August):
 62-74.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT> Cheng, M.H., and H.H. Kang. 2007. Ã¢Â€ÂœPrice-Formation Process of
 an Emerging Futures Market: Call Auction Versus Continuous Auction.Ã¢Â€Â
 >i>Emerging Markets Finance & Trade>/i> 43, no. 1 (January-February):
 74-97.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	     
 <BIBTEXT> Chou, H.C.; W.N. Chen; and D.H. Chen. 2006. Ã¢Â€ÂœThe Expiration
 Effects of Stock-Index Derivatives: Empirical Evidence from the Taiwan
 Futures Exchange.Ã¢Â€Â >i>Emerging Markets Finance & Trade>/i> 42, no. 5
 (September-October): 81-102.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>10</BIBL>	<BIBTEXT> Chow, Y.F.; H.H.M. Yung; and H. Zhang.
 2003. Ã¢Â€ÂœExpiration Day Effects: The Case of Hong Kong.Ã¢Â€Â >i>Journal of
 Futures Markets>/i> 23, no. 1: 67-86. </BIBTEXT>      </REF>	   <REF>   
     <BIBL>11</BIBL>	    <BIBTEXT> Comerton-Forde, C., and J. Rydge.
 2006a. Ã¢Â€ÂœCall Auction Algorithm Design and Market Manipulation.Ã¢Â€Â
 >i>Journal of Multinational Financial Management>/i> 16, no. 2:
 184-198.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Comerton-Forde, C. 2006b. Ã¢Â€ÂœThe Influence of Call Auction
 Algorithm Rules on Market Efficiency.Ã¢Â€Â >i>Journal of Financial
 Markets>/i> 9, no. 2: 199-222.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>13</BIBL>	<BIBTEXT> Cushing, D., and A. Madhavan. 2000.
 Ã¢Â€ÂœStock Returns and Trading at the Close.Ã¢Â€Â >i>Journal of Financial
 Markets>/i> 3, no. 1: 45-67.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>14</BIBL>	<BIBTEXT> Efron, B. 1979. Ã¢Â€ÂœBootstrap Methods:
 Another Look at the Jackknife.Ã¢Â€Â >i>Annals of Statistics>/i> 7, no. 1:
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 <BIBTEXT> Efron, B., and R.J. Tibshirani. 1993. >i>An Introduction to the
 Bootstrap>/i>. New York: Chapman & Hall.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>16</BIBL>	      <BIBTEXT> Foucault, T.; D. Sraer; and D.
 Thesmar. 2008. Ã¢Â€ÂœIndividual Investors and Volatility.Ã¢Â€Â Working Paper,
 HEC, School of Management, Paris and CEPR and Department of Economics
 University of California, Berkeley, May (available at
 www.princeton.edu/~dsraer/SRD.pdf). >a target="_blank"
 href='http://www.princeton.edu/Ã¢ÂˆÂ¼dsraer/SRD.pdf'>www.princeton.edu/Ã¢ÂˆÂ¼dsr
 aer/SRD.pdf>/a></BIBTEXT>	</REF>	    <REF>	 <BIBL>17</BIBL>   
     <BIBTEXT> Hillion, P., and M. Suominen. 2004. Ã¢Â€ÂœThe Manipulation of
 Closing Price.Ã¢Â€Â >i>Journal of Financial Markets>/i> 7, no. 4:
 351-375.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT> Huang, Y.C., and P.L Tsai. 2008. Ã¢Â€ÂœEffectiveness of Closing
 Call Auctions: Evidence from the Taiwan Stock Exchange.Ã¢Â€Â >i>Emerging
 Markets Finance & Trade>/i> 44, no. 3 (May-June): 5-20.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Kehr, C.; J.
 Krahnen; and E. Theissen. 2001. Ã¢Â€ÂœThe Anatomy of a Call Market.Ã¢Â€Â
 >i>Journal of Financial Intermediation>/i> 10, no. 3-4: 249-270.</BIBTEXT>
      </REF>	  <REF>        <BIBL>20</BIBL>	      <BIBTEXT> Lin, A.Y.;
 L.S. Huang; M.Y. Chen. 2007. Ã¢Â€ÂœPrice Comovement and Institutional
 Performance Following Large Market Movements.Ã¢Â€Â >i>Emerging Markets
 Finance & Trade>/i> 43, no. 5 (September-October): 37-61.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Luo, J.S., and
 C.A. Li. 2008. Ã¢Â€ÂœFutures Market Sentiment and Institutional Investor
 Behavior in the Spot Market: The Emerging Market in Taiwan.Ã¢Â€Â >i>Emerging
 Markets Finance & Trade>/i> 44, no. 2 (March-April): 70-86.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT> Madhavan, A.
 1992. Ã¢Â€ÂœTrading Mechanisms in Securities Markets.Ã¢Â€Â >i>Journal of
 Finance>/i> 47, no. 2: 607-641.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>23</BIBL>	<BIBTEXT> Michayluk, D., and G.C. Sanger. 2006.
 Ã¢Â€ÂœDay-End Effect on the Paris Bourse.Ã¢Â€Â >i>Journal of Financial
 Research>/i> 29, no. 1: 131-146.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>24</BIBL>	<BIBTEXT> Pagano, M., and R. Schwartz. 2003. Ã¢Â€ÂœA
 Closing Call's Impact on Market Quality at Euronext Paris.Ã¢Â€Â >i>Journal
 of Financial Economics>/i> 68, no. 3: 439-484.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT> Parkinson, M. 1980. Ã¢Â€ÂœThe
 Extreme Value Method for Estimating the Variance of the Rate of Return.Ã¢Â€Â
 >i>Journal of Business>/i>, 53, no. 1: 61-65.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>26</BIBL>	     <BIBTEXT> Stoll, H., and R. Whaley.
 1991. Ã¢Â€ÂœExpiration-Day Effects: What Has Changed?Ã¢Â€Â >i>Financial
 Analysis Journal>/i> 47, no. 1: 58-72.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>27</BIBL>	    <BIBTEXT> Stoll, H. 1997. Ã¢Â€ÂœExpiration-Day
 Effects of the All Ordinaries Shares Prices Index Futures: Empirical
 Evidence and Alternative Settlement Procedures.Ã¢Â€Â >i>Australian Journal
 of Management>/i> 22, no. 2: 139-174.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>28</BIBL>	   <BIBTEXT> Thomas, S. 1998. Ã¢Â€ÂœEnd of Day
 Patterns After Implementation of a Call Auction on the Paris Bourse.Ã¢Â€Â
 SBF-Bourse de Paris.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>29</BIBL>	<BIBTEXT> Vipul. 2005. Ã¢Â€ÂœFutures and Options
 Expiration-Day Effects: The Indian Evidence.Ã¢Â€Â >i>Journal of Future
 Markets>/i> 25, no. 11: 1045-1065.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:4:p:105-125




Template-Type: ReDIF-Article 1.0
Author-Name: Emre Ozsoz 
Author-X-Name-First: Emre 
Author-X-Name-Last: Ozsoz 
Author-Name: Erick W. Rengifo 
Author-X-Name-First: Erick W. 
Author-X-Name-Last: Rengifo 
Author-Name: Dominick Salvatore 
Author-X-Name-First: Dominick 
Author-X-Name-Last: Salvatore 
Title: Deposit Dollarization as an Investment Signal in Transition Economies: The Cases of Croatia, the Czech Republic, and Slovakia 
Abstract:
 In highly dollarized banking systems, the high level of foreign currency
 assets or liabilities on banks' balance sheets may create a currency
 mismatch risk, which could lead to bank failures when faced with sudden
 exchange rate movements. Central banks in such economies have to adjust
 their currency policies accordingly. This paper uses probit and ordered
 probit models to forecast central banks' direct interventions in the
 foreign currency markets as a result of exchange rate volatility using
 data from three transition economies with varying dollarization ratios. We
 show that, in these three economies, central banks' interventions can be
 predicted to a degree by measuring dollarization as the ratio of
 dollar-deposits to M2 monetary base. Investors could potentially use this
 ratio as an investment signal.
Journal: Emerging Markets Finance and Trade 
Pages: 5-22 
Issue: 4 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: deposit dollarization, direct central bank intervention, foreign exchange rates, probit and ordered probit models, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=2HK3873348635308 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Almekinders, G.J., and
 S.C.W. Eijffinger. 1996. Ã¢Â€ÂœA Friction Model of Daily Bundesbank and
 Federal Reserve Intervention.Ã¢Â€Â >i>Journal of Banking and Finance>/i> 20,
 no. 8: 1365-1380.</BIBTEXT>	  </REF>      <REF>	   <BIBL>2</BIBL>  
      <BIBTEXT> Calvo, G.A., and C.A. Vegh. 1992. Ã¢Â€ÂœCurrency Substitution
 in Developing Countries: An Introduction.Ã¢Â€Â Working Paper 92/40,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Calvo, G.A. 1997. Ã¢Â€ÂœFrom
 Currency Substitution to Dollarization and Beyond: Analytical and Policy
 Issues.Ã¢Â€Â In >i>Essays on Money, Inflation, and Output>/i>, ed. G. Calvo,
 pp. 153-175. Cambridge, MA: MIT Press.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>4</BIBL>	   <BIBTEXT> Ito, T., and T. Yabu. 2004. Ã¢Â€ÂœWhat
 Prompts Japan to Intervene in the Forex Market? A New Approach to a
 Reaction Function.Ã¢Â€Â NBER Working Paper no. 10456, Cambridge, MA,
 April.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> Ito, T. 2007. Ã¢Â€ÂœWhat Prompts Japan to Intervene in the Forex
 Market? A New Approach to a Reaction Function.Ã¢Â€Â >i>Journal of
 International Money and Finance>/i>, 26, no. 2: 193-212.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Ize, A., and E.
 Levy-Yeyati. 2003. Ã¢Â€ÂœFinancial Dollarization.Ã¢Â€Â >i>Journal of
 International Economics>/i> 59, no. 2: 323-347.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> Levy-Yeyati, E. 2006.
 Ã¢Â€ÂœFinancial Dollarization: Evaluating the Consequences.Ã¢Â€Â >i>Economic
 Policy>/i> 45, no. 1: 61-118.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Rajan, R. 2004. Ã¢Â€ÂœDollar Shortages and
 Crises.Ã¢Â€Â Working Paper 10845, National Bureau of Economic Research,
 Cambridge, MA.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	   
   <BIBTEXT> Salvatore, D. 2003. Ã¢Â€ÂœWhich Countries in the Americas Should
 Dollarize?Ã¢Â€Â In >i>The Dollarization Debate>/i>, ed. J.D.D. Salvatore and
 T.D. Willet, pp. 196-206. New York: Oxford University Press.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>10</BIBL>	  <BIBTEXT> Savastano, M.
 1996. Ã¢Â€ÂœDollarization in Latin AmericaÃ¢Â€Â”Recent Evidence and Some Policy
 Issues.Ã¢Â€Â IMF Working Paper 96/4, Washington, DC.</BIBTEXT>	   </REF>   
Handle: RePEc:mes:emfitr:v:46:y:2010:i:4:p:5-22




Template-Type: ReDIF-Article 1.0
Author-Name: Ehsan Ahmed 
Author-X-Name-First: Ehsan 
Author-X-Name-Last: Ahmed 
Author-Name: J. Barkley Rosser Jr. 
Author-X-Name-First: J. Barkley 
Author-X-Name-Last: Rosser Jr. 
Author-Name: Jamshed Y. Uppal 
Author-X-Name-First: Jamshed Y. 
Author-X-Name-Last: Uppal 
Title: Emerging Markets and Stock Market Bubbles: Nonlinear Speculation? 
Abstract:
 Daily returns of stock markets in emerging markets in Asia, Africa, South
 America, and Eastern Europe from the early 1990s through 2006 are analyzed
 for the possible presence of nonlinear speculative bubbles. The absence of
 these is tested for by studying residuals of vector autoregressive-based
 fundamentals, using the Hamilton regimeswitching model and the rescaled
 range analysis of Hurst. For the first test, absence of bubbles is
 rejected for twenty-four countries (except Mexico, Sri Lanka, and Taiwan);
 for the second test, it is rejected for twenty-six countries (except
 Malaysia). BDS testing on these residuals after autoregressive conditional
 heteroskedasticity (ARCH) effects are removed fails to reject further
 nonlinearity (except for Israel). Policy issues are discussed, noting that
 what is appropriate varies from country to country and time period to time
 period.
Journal: Emerging Markets Finance and Trade 
Pages: 23-40 
Issue: 4 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: BDS tests, emerging markets, regime switching, rescaled range analysis, stock market bubbles, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=310601X2345N2086 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahmed, E., and J.
 Barkley Rosser, Jr. 1995. Ã¢Â€ÂœNonlinear Speculative Bubbles in the
 Pakistani Stock Market.Ã¢Â€Â >i>Pakistan Development Review>/i> 34, no. 1:
 25-41.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT> Ahmed, E.; H. Li; and J. Barkley Rosser, Jr. 2006. Ã¢Â€ÂœNonlinear
 Bubbles in Chinese Stock Markets in the 1990s.Ã¢Â€Â >i>Eastern Economic
 Journal>/i> 40, no. 1: 1-18.</BIBTEXT>      </REF>	 <REF>	     
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:4:p:23-40




Template-Type: ReDIF-Article 1.0
Author-Name: Jarko Fidrmuc 
Author-X-Name-First: Jarko 
Author-X-Name-Last: Fidrmuc 
Author-Name: Roman HorvÃƒÂ¡th 
Author-X-Name-First: Roman 
Author-X-Name-Last: HorvÃƒÂ¡th 
Author-Name: Eva HorvÃƒÂ¡thovÃƒÂ¡ 
Author-X-Name-First: Eva 
Author-X-Name-Last: HorvÃƒÂ¡thovÃƒÂ¡ 
Title: Corporate Interest Rates and the Financial Accelerator in the Czech Republic 
Abstract:
 We analyze the determinants of corporate interest rates and the financial
 accelerator in the Czech Republic. Using a unique panel of 448 Czech firms
 from 1996 to 2002, we find that selected balance sheet indicators
 significantly influence the firmspecific interest rates. Debt structure
 and cash flow have significant effects on interest rates, whereas
 indicators on collateral play no significant role. Monetary policy has
 stronger effects on smaller firms than on medium-size and larger firms.
 Finally, we find no asymmetric effects in the monetary policy over the
 business cycle.
Journal: Emerging Markets Finance and Trade 
Pages: 41-54 
Issue: 4 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: balance sheet channel, corporate interest rates, financial accelerator monetary policy transmission, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=403M6782M2104765 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Almeida, H., and M.
 Campello, 2007. Ã¢Â€ÂœFinancial Constraints, Asset Tangibility, and Corporate
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 Transmission in the Euro Area>/i>. Cambridge: Cambridge University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
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 Corporate Balance Sheets: An Analysis Using Aggregate and Disaggregated UK
 Data.Ã¢Â€Â Working Paper no. 193, Bank of England, London.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Berg, C.; J.
 Hansen; and P. Sellin. 2004. Ã¢Â€ÂœThe Financial Accelerator and Corporate
 Investment.Ã¢Â€Â >i>Sveriges Riksbank Economic Review>/i> 2, no. 2:
 23-46.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
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 and Business Fluctuations.Ã¢Â€Â >i>American Economic Review>/i> 79, no. 1:
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 <BIBTEXT> Bernanke, B.S.; M. Gertler; and S. Gilchrist. 1999. Ã¢Â€ÂœThe
 Financial Accelerator in a Quantitative Business Cycle Framework.Ã¢Â€Â In
 >i>Handbook of Macroeconomics,>/i> vol. 1C, ed. J. Taylor and M. Woodford,
 pp. 1341-1393. Amsterdam: North-Holland.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>7</BIBL>	     <BIBTEXT> Boissay, F. 2001. Ã¢Â€ÂœCredit
 Rationing, Output Gap, and Business Cycles.Ã¢Â€Â Working Paper no. 87,
 European Central Bank, Frankfurt am Main.</BIBTEXT>	  </REF>      <REF>
	<BIBL>8</BIBL>	      <BIBTEXT> Borys Morgese, M.; M. Franta; and
 R. HorvÃƒÂ¡th. 2009. Ã¢Â€ÂœThe Effects of Monetary Policy in the Czech
 Republic: An Empirical Study.Ã¢Â€Â >i>Empirica>/i> 36, no. 4:
 419-443.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Bougheas, S.; P. Mizen; and C. Yalcin. 2006. Ã¢Â€ÂœAccess to
 External Finance: Theory and Evidence on the Impact of Firm-Specific
 Characteristics.Ã¢Â€Â >i>Journal of Banking and Finance>/i> 30, no. 1:
 199-227.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Calstrom, C., and T. Fuerst. 1997. Ã¢Â€ÂœAgency Costs, Net Worth,
 and Business Fluctuations: A Computable General Equilibrium Analysis.Ã¢Â€Â
 >i>American Economic Review>/i> 87, no. 5: 893-910.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Coricelli, F.; B.
 ÃƒÂ‰gert; and R. MacDonald. 2006. Ã¢Â€ÂœMonetary Transmission Mechanism:
 Gliding on a Wind of Change.Ã¢Â€Â Discussion Paper no. 8/2006, Bank of
 Finland's Institute for Economies in Transition (BOFIT),
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 <BIBTEXT> Czech National Bank (CNB). 2005. >i>Financial Stability Report
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       <BIBTEXT> Elbourne, A., and J. de Haan. 2006. Ã¢Â€ÂœFinancial Structure
 and Monetary Policy Transmission in Transition Countries.Ã¢Â€Â >i>Journal of
 Comparative Economics>/i> 34, no. 1: 1-23.</BIBTEXT>	   </REF>     
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 Business in Transition.>/i> London.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>15</BIBL>	 <BIBTEXT> Fidrmuc, J., and C. Hainz. 2010.
 Ã¢Â€ÂœDefault Rates in the Loan Market for SMEs: Evidence from Slovakia.Ã¢Â€Â
 Working Paper no. 70, Ifo Institute for Economic Research,
 Munich.</BIBTEXT>	</REF>	    <REF>	 <BIBL>16</BIBL>       
 <BIBTEXT> Fidrmuc, J., and I. Korhonen. 2006. Ã¢Â€ÂœMeta-Analysis of the
 Business Cycle Correlation Between the Euro Area and the CEECs.Ã¢Â€Â
 >i>Journal of Comparative Economics>/i> 34, no. 3: 518-537.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT> Gertler, M., and
 S. Gilchrist. 1993. Ã¢Â€ÂœThe Role of Credit Market Imperfections in the
 Monetary Transmission Mechanism: Arguments and Evidence.Ã¢Â€Â
 >i>Scandinavian Journal of Economics>/i> 95, no. 1: 43-64.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Gertler, M., and
 S. Gilchrist. 1994. Ã¢Â€ÂœMonetary Policy, Business Cycles, and the Behavior
 of Small Manufacturing Firms.Ã¢Â€Â >i>Quarterly Journal of Economics>/i>
 109, no. 2: 309-340.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>19</BIBL>	<BIBTEXT> HorvÃƒÂ¡th, R., and A. Podpiera. 2009.
 Ã¢Â€ÂœHeterogeneity in Bank Pricing Policies: Estimation, Determinants, and
 Policy Implications.Ã¢Â€Â Czech National Bank, Prague.</BIBTEXT>      </REF>
      <REF>	   <BIBL>20</BIBL>	  <BIBTEXT> Kaufmann, S. 2002.
 Ã¢Â€ÂœIs There an Asymmetric Effect of Monetary Policy Over Time? A Bayesian
 Analysis Using Austrian Data.Ã¢Â€Â >i>Empirical Economics>/i> 27, no. 2:
 277-297.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Kiyotaki, N., and J. Moore. 1997. Ã¢Â€ÂœCredit Cycles.Ã¢Â€Â
 >i>Journal of Political Economy>/i> 105, no. 2: 211-248.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT> Matousek, R.,
 and N. Sarantis. 2009. Ã¢Â€ÂœThe Bank Lending Channel and Monetary
 Transmission in the Central and Eastern European Countries.Ã¢Â€Â >i>Journal
 of Comparative Economics>/i> 37, no. 2: 321-334.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>23</BIBL>	      <BIBTEXT> Mizen, P., and S. Tsoukas.
 2008. Ã¢Â€ÂœEvidence on the External Finance Premium from the U.S. and
 Emerging Asian Corporate Bond Markets.Ã¢Â€Â Working Paper no. 14/2008, Hong
 Kong Institute for Monetary Research.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>24</BIBL>	   <BIBTEXT> Mojon, B.; F. Smets; and P. Vermeulen.
 2002. Ã¢Â€ÂœInvestment and Monetary Policy in the Euro Area.Ã¢Â€Â >i>Journal of
 Banking and Finance>/i> 26, no. 11: 2111-2129.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT> Nerlove, M. 1999.
 Ã¢Â€ÂœProperties of Alternative Estimators of Dynamic Panel Models: An
 Empirical Analysis of Cross-Country Data for the Study of Economic
 Growth.Ã¢Â€Â In >i>Analysis of Panel and Limited Dependent Variable
 Models,>/i> ed. C. Hsiao, K. Lahiri, L.-F. Lee, and M.H. Pesaran, pp.
 136-170. Cambridge: Cambridge University Press.</BIBTEXT>	</REF>	   
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 1996. Ã¢Â€ÂœIs There a Broad Credit Channel of Monetary Policy?Ã¢Â€Â >i>Federal
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 Monetary Policy in Euro Area.Ã¢Â€Â >i>Economic Journal>/i> 115, no. 503:
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 the Czech Republic?Ã¢Â€Â >i>Eastern European Economics>/i> 42, no. 5:
 58-72.</BIBTEXT>      </REF>	   <REF>	<BIBL>29</BIBL>       
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 Statistics>/i> 64, no. 3: 213-231.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:4:p:41-54




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Serkan Tosun 
Author-X-Name-First: Mehmet Serkan 
Author-X-Name-Last: Tosun 
Author-Name: Serdar Yilmaz 
Author-X-Name-First: Serdar 
Author-X-Name-Last: Yilmaz 
Title: Decentralization, Economic Development, and Growth in Turkish Provinces 
Abstract:
 There have been important developments in the decentralization of the
 government structure in Turkey since the early 1980s. This paper examines
 economic development and growth in Turkish provinces. It first discusses
 local government reforms throughout the history of Turkey with the focus
 on recent reform efforts. It then empirically analyzes the effects of
 recent decentralization reforms in Turkish provinces using cross-sectional
 and panel data approaches as well as spatial econometrics. The panel data
 set consists of sixty-seven provinces from 1976 to 2001. Using the number
 of local governments per capita and number of local governments per square
 kilometer of land to indicate decentralization, the analysis examines
 whether variations in local decentralization across these provinces and
 across time have significantly affected economic development and growth in
 those provinces. The findings suggest a weak negative economic effect of
 decentralization through a number of municipalities per capita. However,
 the findings do not show any significant effect from the creation of new
 provinces by separation from the existing ones.
Journal: Emerging Markets Finance and Trade 
Pages: 71-91 
Issue: 4 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: decentralization, economic development and growth, intergovernmental relations, Turkish provincial cities, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=64161T8783122HK7 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akai, N., and M.
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:4:p:71-91




Template-Type: ReDIF-Article 1.0
Author-Name: Ekin Tokat 
Author-X-Name-First: Ekin 
Author-X-Name-Last: Tokat 
Author-Name: HakkÃ„Â± Arda Tokat 
Author-X-Name-First: HakkÃ„Â± Arda 
Author-X-Name-Last: Tokat 
Title: Shock and Volatility Transmission in the Futures and Spot Markets: Evidence from Turkish Markets 
Abstract:
 This paper examines the volatility transmission mechanism between the
 futures and corresponding underlying asset spot markets, focusing on
 Turkish currency and stock index futures traded on the lately established
 Turkish Derivatives Exchange (TURKDEX). Employing multivariate generalized
 autoregressive conditional heteroskedasticity modeling, which allows for
 potential spillovers and asymmetries in the variance-covariance structure
 for the market returns, the paper investigates the volatility interactions
 among each of the three futures-spot market systems. For all market
 systems under study, the volatility spillovers are found to be important
 and bidirectional. For the stock index market system, in line with the
 previous literature, volatility shows asymmetric behavior and strong
 asymmetric shock transmission. The main implication is that investors need
 to account for volatility spillovers and asymmetries among the futures and
 the spot markets to correctly build hedging strategies.
Journal: Emerging Markets Finance and Trade 
Pages: 92-104 
Issue: 4 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: asymmetric volatility, futures market, multivariate GARCH, Turkish Derivatives Exchange, volatility transmission, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=7161054LHNN6M48R 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adrangi, B., and A.
 Chatrath. 1998. Ã¢Â€ÂœFutures Commitments and Exchange Rate Volatility.Ã¢Â€Â
 >i>Journal of Business Finance and Accounting>/i> 25, nos. 3-4:
 501-520.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Al-Deehani, T., and I.A. Moosa. 2006. Ã¢Â€ÂœVolatility Spillover in
 Regional Emerging Spot Markets: A Structural Time Series Approach.Ã¢Â€Â
 >i>Emerging Markets Finance & Trade>/i> 42, no. 4 (July-August):
 78-89.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> Antoniou, A.; G. Pescetto; and A. Violaris. 2003. Ã¢Â€ÂœModeling
 International Price Relationships and Interdependencies Between the Stock
 Index Future Markets of Three EU Countries: A Multivariate Analysis.Ã¢Â€Â
 >i>Journal of Business Finance and Accounting>/i> 30, nos. 5-6:
 645-667.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Bahr, R., and A.G. Malliaris. 1998. Ã¢Â€ÂœVolume and Volatility in
 Foreign Currency Futures Markets.Ã¢Â€Â >i>Review of Quantitative Finance and
 Accounting>/i> 10, no. 3: 285-302.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>5</BIBL>        <BIBTEXT> Baklaci, H. 2007. Ã¢Â€ÂœTÃƒÂ¼rkiye'de vadeli
 dÃƒÂ¶viz Ã…ÂŸlemlerinin spot dÃƒÂ¶viz piyasa volatilitesi ÃƒÂ¼zerine etkileriÃ¢Â€Â
 [The Impact of Currency Derivatives on Underlying Spot Market Volatility
 in Turkey]. >i>Ã„Â°ktisat Ã„Â°Ã…ÂŸletme ve Finans>/i> 22, no. 250:
 53-68.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT> Baklaci, H., and H. Tutek. 2006. Ã¢Â€ÂœThe Impact of the Futures
 Market on Spot Volatility: An Analysis in Turkish Derivatives Markets.Ã¢Â€Â
 >i>Computational Finance and Its Applications II>/i>, vol. 43, ed. M.
 Costantino and C.A. Brebbia, pp. 237-246. Southampton: WIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	     
 <BIBTEXT> Bollerslev, T. 1986. Ã¢Â€ÂœGeneralized Autoregressive Conditional
 Heteroskedasticity.Ã¢Â€Â >i>Journal of Econometrics>/i> 31, no. 3:
 307-327.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Bollerslev, T.; R.F. Engle; and J.M. Wooldridge. 1988. Ã¢Â€ÂœA
 Capital Asset Pricing Model with Time Varying Covariance.Ã¢Â€Â >i>Journal of
 Political Economy>/i> 96, no. 1: 116-131.</BIBTEXT>	  </REF>      <REF>
	<BIBL>9</BIBL>	      <BIBTEXT> Chan, K.; K.C. Chan; and G.A.
 Karolyi. 1991. Ã¢Â€ÂœIntraday Volatility in the Stock Index and Stock Index
 Futures Markets.Ã¢Â€Â >i>Review of Financial Studies>/i> 4, no. 4:
 657-684.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Chan, L.; K.C. Chan; and W.K. Leung. 2005. Ã¢Â€ÂœInstitutional
 Interventions and Performance of Futures Markets in China.Ã¢Â€Â >i>Emerging
 Markets Finance & Trade>/i> 41, no. 5 (September-October):
 43-55.</BIBTEXT>      </REF>	   <REF>	<BIBL>11</BIBL>       
 <BIBTEXT> Chatrath, A.; S. Ramchander; and F. Song. 1996. Ã¢Â€ÂœThe Role of
 Futures Trading Activity in Exchange Rate Volatility.Ã¢Â€Â >i>Journal of
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      <BIBL>12</BIBL>	     <BIBTEXT> Clifton, E.V. 1985. Ã¢Â€ÂœThe Currency
 Futures Market and Interbank Foreign Exchange Trading.Ã¢Â€Â >i>Journal of
 Futures Markets>/i> 5, no. 3: 375-384.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>13</BIBL>	    <BIBTEXT> Crain, S.J., and J.H. Lee. 1995.
 Ã¢Â€ÂœIntraday Volatility in Interest Rate and Foreign Exchange Spot and
 Futures Markets.Ã¢Â€Â >i>Journal of Futures Markets>/i> 15, no. 4:
 395-421.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Engle, R. 1982. Ã¢Â€ÂœAutoregressive Conditional Heteroskedasticity
 with Estimates of the Variance of the U.K. Inflation.Ã¢Â€Â
 >i>Econometrica>/i> 50, no. 4: 987-1008.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>15</BIBL>	      <BIBTEXT> Engle, R. 2002. Ã¢Â€ÂœNew Frontiers
 for ARCH Models.Ã¢Â€Â >i>Journal of Applied Econometrics>/i> 17, no. 5:
 425-446.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT> Engle, R., and K. Kroner. 1995. Ã¢Â€ÂœMultivariate Simultaneous
 Generalized ARCH.Ã¢Â€Â >i>Econometric Reviews>/i> 11, no. 1:
 122-150.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Glosten, L.; R. Jagannathan; and D. Runkle. 1993.
 Ã¢Â€ÂœRelationship Between the Expected Value and the Volatility of the
 Nominal Excess Return on Stocks.Ã¢Â€Â >i>Journal of Finance>/i> 48, no. 5:
 1779-1801.</BIBTEXT>	   </REF>      <REF>	    <BIBL>18</BIBL>	  
 <BIBTEXT> Grier, K.B.; T.H. ÃƒÂ“lan; O. Nilss; S. Kalvinder. 2004. Ã¢Â€ÂœThe
 Symmetric Effects of Uncertainty on Inflation and Output Growth.Ã¢Â€Â
 >i>Journal of Applied Econometrics>/i> 19, no. 5: 551-565.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Hansen, P.R.,
 and A. Lunde. 2005. Ã¢Â€ÂœA Forecast Comparison of Volatility Models: Does
 Anything Beat a GARCH(1,1)?Ã¢Â€Â >i>Journal of Applied Econometrics>/i> 20,
 no. 7: 873-889.</BIBTEXT>	</REF>	    <REF>	 <BIBL>20</BIBL>   
     <BIBTEXT> Iihara, Y.; K. Kato; and T. Tokunaga. 1996. Ã¢Â€ÂœIntraday
 Return Dynamics Between the Cash and the Futures Markets in Japan.Ã¢Â€Â
 >i>Journal of Futures Markets>/i> 16, no. 2: 147-162.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Karolyi, A.
 1995. Ã¢Â€ÂœA Multivariate GARCH Model of International Transmission of Stock
 Returns and Volatility.Ã¢Â€Â >i>Journal of Business and Economic
 Statistics>/i> 13, no. 1: 11-25.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>22</BIBL>	<BIBTEXT> Kasman, A., and S. Kasman. 2008. Ã¢Â€ÂœThe
 Impact of Futures Trading on Volatility of the Underlying Asset in the
 Turkish Stock Market.Ã¢Â€Â >i>Physica A>/i> 387, no. 12:
 2837-2845.</BIBTEXT>	   </REF>      <REF>	    <BIBL>23</BIBL>	  
 <BIBTEXT> Lien, D., and M. Zhang. 2008. Ã¢Â€ÂœA Survey of Emerging
 Derivatives Markets.Ã¢Â€Â >i>Emerging Markets Finance & Trade>/i> 44, no. 2
 (March-April): 39-69.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>24</BIBL>	<BIBTEXT> Milunovich, G., and S. Thorp. 2006.
 Ã¢Â€ÂœValuing Volatility Spillovers.Ã¢Â€Â >i>Global Finance Journal>/i> 17, no.
 1: 1-22.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> Milunovich, G. 2007. Ã¢Â€ÂœMeasuring Equity Market Integration
 Using Uncorrelated Information Flows: Tokyo, London, and New York.Ã¢Â€Â
 >i>Journal of Multinational Financial Management>/i> 17, no. 4:
 275-289.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT> Robbani, M., and R. Bhuyan. 2005. Ã¢Â€ÂœIntroduction of Futures and
 Options on a Stock Index and Their Impact on the Trading Volume and
 Volatility: Empirical Evidence from the DJIA Components.Ã¢Â€Â >i>Derivatives
 Use, Trading, and Regulation>/i> 11, no. 3: 246-250.</BIBTEXT>      </REF>
      <REF>	   <BIBL>27</BIBL>	  <BIBTEXT> Savva, C.S. 2009.
 Ã¢Â€ÂœInternational Stock Markets Interactions and Conditional
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 <BIBL>28</BIBL>	<BIBTEXT> Savva, C.S.; D.R. Osborn; L. Gill. 2009.
 Ã¢Â€ÂœSpillovers and Correlations Between U.S. and Major European Stock
 Markets: The Role of the Euro.Ã¢Â€Â >i>Applied Financial Economics>/i> 19,
 no. 19: 1595-1604.</BIBTEXT>	   </REF>      <REF>	    <BIBL>29</BIBL>
	<BIBTEXT> Tanizaki, H., and S. Hamori. 2009. Ã¢Â€ÂœVolatility
 Transmission Between Japan, UK, and USA in Daily Stock Returns.Ã¢Â€Â
 >i>Empirical Economics>/i> 36, no. 1: 27-54.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:4:p:92-104




Template-Type: ReDIF-Article 1.0
Author-Name: F. Gulcin Ozkan 
Author-X-Name-First: F. Gulcin 
Author-X-Name-Last: Ozkan 
Author-Name: Ahmet Kipici 
Author-X-Name-First: Ahmet 
Author-X-Name-Last: Kipici 
Author-Name: Mustafa Ismihan 
Author-X-Name-First: Mustafa 
Author-X-Name-Last: Ismihan 
Title: The Banking Sector, Government Bonds, and Financial Intermediation: The Case of Emerging Market Countries 
Abstract:
 This paper develops an analytical framework to explore how
 financial-sector characteristics shape the terms and the scale of public
 borrowing in emerging market economies. We find that the more competitive
 the banking sector and the more liquid and deeper the deposit market, the
 better are conditions in the public securities market. We also show that
 the greater the central bank independence, the higher the cost of public
 borrowing. Furthermore, our results suggest that, in countries where banks
 rely significantly on foreign currency financing, the greater the
 government's reliance on bank lending, the greater is its exposure to
 exchange rate risk.
Journal: Emerging Markets Finance and Trade 
Pages: 55-70 
Issue: 4 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: cost of borrowing, financial sector, public debt, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D055R32Q02W65082 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abbas, A.M.A., and J.E.
 Christensen. 2007. Ã¢Â€ÂœThe Role of Domestic Debt Markets in Economic
 Growth: An Empirical Investigation for Low-Income Countries and Emerging
 Markets.Ã¢Â€Â Working Paper no. 07/129, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>    
    <BIBTEXT> Beetsma, R., and L. Bovenberg. 1997. Ã¢Â€ÂœCentral Bank
 Independence and Public Debt Policy.Ã¢Â€Â >i>Journal of Economic Dynamics
 and Control>/i> 21, no. 4: 873-894.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>3</BIBL>	<BIBTEXT> Bilgin, B., and F.G. Ozkan. 2009. Ã¢Â€ÂœThe
 Banking Sector and Macroeconomic Performance: Is There a Role? The Case of
 Turkey.Ã¢Â€Â Paper presented at the Tenth Mediterranean Research Meeting,
 European University Institute, Florence.</BIBTEXT>	 </REF>      <REF> 
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 Roubini. 1999. Ã¢Â€ÂœWhat Caused the Asian Currency and Financial Crisis?Ã¢Â€Â
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 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Cukierman, A.
 1991. Ã¢Â€ÂœWhy Does the Fed Smooth Interest Rates?Ã¢Â€Â In >i>Monetary Policy
 on the 75th Anniversary of the Fed>/i>, ed. M.T. Belongia, pp. 111-147.
 London: Kluwer.</BIBTEXT>	</REF>	    <REF>	 <BIBL>6</BIBL>    
    <BIBTEXT> Edwards, S., and G. Tabellini. 1991. Ã¢Â€ÂœExplaining Fiscal
 Policies and Inflation in Developing Countries.Ã¢Â€Â >i>Journal of
 International Money and Finance>/i> 10, no. 1: 516-548.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Guidotti, P., and
 M. Kumar. 1991. Ã¢Â€ÂœDomestic Public Debt of Externally Indebted
 Countries.Ã¢Â€Â Occasional Paper no. 80, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>    
    <BIBTEXT> Hanson, J.A. 2003. Ã¢Â€ÂœBanking in Developing Countries in the
 1990s.Ã¢Â€Â Policy Research Working Paper no. 3168, World Bank, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>	  
 <BIBTEXT> Hanson, J.A. 2007. Ã¢Â€ÂœThe Growth in Government Domestic Debt:
 Changing Burdens and Risks.Ã¢Â€Â Policy Research Working Paper no. 4348,
 World Bank, Washington, DC.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>10</BIBL>	<BIBTEXT> Hauner, D. 2008. Ã¢Â€ÂœCredit to Government
 and Banking Sector Performance.Ã¢Â€Â >i>Journal of Banking and Finance>/i>
 32, no. 8: 1499-1507.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>11</BIBL>	<BIBTEXT> Hauner, D. 2009. Ã¢Â€ÂœPublic Debt and
 Financial Development.Ã¢Â€Â >i>Journal of Development Economics>/i> 88, no.
 1: 171-183.</BIBTEXT>	    </REF>	<REF>	     <BIBL>12</BIBL>	   
 <BIBTEXT> International Bank for Reconstruction and Development (IBRD) and
 International Monetary Fund (IMF). 2001. >i>Developing Government Bond
 Markets: A Handbook>/i>. Washington, DC: World Bank
 Publications.</BIBTEXT>      </REF>	  <REF>        <BIBL>13</BIBL>	   
   <BIBTEXT> International Monetary Fund (IMF). 2001. Ã¢Â€ÂœThe Decline of
 Inflation in Emerging Markets: Can It Be Maintained?Ã¢Â€Â >i>IMF World
 Economic Outlook>/i> (May): 116-144.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>14</BIBL>	  <BIBTEXT> Ismihan, M., and F.G. Ozkan. 2004.
 Ã¢Â€ÂœDoes Central Bank Independence Lower Inflation?Ã¢Â€Â >i>Economics
 Letters>/i> 84, no. 3: 305-309.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>15</BIBL>	<BIBTEXT> Jeanne, O. 2005. Ã¢Â€ÂœWhy Do Emerging
 Economies Borrow in Foreign Currency?Ã¢Â€Â In >i>Other People's Money>/i>,
 ed. B. Eichengreen and R. Hausmann, pp. 190-217. Chicago: Chicago
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>16</BIBL> 
       <BIBTEXT> Jeanne, O., and A. Guscina. 2006. Ã¢Â€ÂœGovernment Debt in
 Emerging Market Countries: A New Data Set.Ã¢Â€Â Working Paper no. 06/98,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Kaminsky, G.; S. Lizondo;
 and C. Reinhart. 1998. Ã¢Â€ÂœLeading Indicators of Currency Crisis.Ã¢Â€Â >i>IMF
 Staff Papers>/i> 45, no. 1: 1-48.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>18</BIBL>	<BIBTEXT> Kumhof, M., and E. Tanner. 2005.
 Ã¢Â€ÂœGovernment Debt: A Key Role in Financial Intermediation.Ã¢Â€Â Working
 Paper no. 05/57, International Monetary Fund, Washington, DC.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>19</BIBL>	   <BIBTEXT> Ozkan, F.G.
 2000. Ã¢Â€ÂœWho Wants an Independent Central Bank? Monetary Policy Making and
 Politics.Ã¢Â€Â >i>Scandinavian Journal of Economics>/i> 102, no. 4:
 621-643.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT> Ozkan, F.G. 2005. Ã¢Â€ÂœCurrency and Financial Crises in Turkey,
 2000-2001: Bad Fundamentals or Bad Luck?Ã¢Â€Â >i>World Economy>/i> 28, no.
 4: 541-572.</BIBTEXT>	    </REF>	<REF>	     <BIBL>21</BIBL>	   
 <BIBTEXT> Ozkan, F.G.; A. Kipici; and M. Ismihan. 2008. Ã¢Â€ÂœThe Banking
 Sector, Government Bonds, and Financial Intermediation: The Case of
 Emerging Market Countries.Ã¢Â€Â Discussion Paper no. 08/11, University of
 York.</BIBTEXT>      </REF>	  <REF>        <BIBL>22</BIBL>	     
 <BIBTEXT> Rogoff, K. 2003. Ã¢Â€ÂœGlobalization and Global Disinflation.Ã¢Â€Â
 >i>Federal Reserve Bank of Kansas City Economic Review>/i> 88, no. 4:
 45-78.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:46:y:2010:i:4:p:55-70




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 4 
Volume: 46 
Year: 2010 
Month: 1 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H77423668U7K4615 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:46:y:2010:i:4:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Janchung Wang 
Author-X-Name-First: Janchung 
Author-X-Name-Last: Wang 
Title: Short Selling and Index Arbitrage Profitability: Evidence from the SGX MSCI and TAIFEX Taiwan Index Futures Markets 
Abstract:
 There are numerous impediments to market efficiency and index arbitrage in
 real capital markets, including the uptick rule on short selling,
 execution risk, market impact costs, regulatory barriers, and capital
 constraints. Adopting and relaxing the uptick restriction in the Taiwan
 stock market facilitated a study on whether adjustments in this
 restriction influence the efficiency and arbitrage of the Singapore
 Exchange Limited (SGX) and the Taiwan Futures Exchange (TAIFEX) index
 futures markets. This study examines the above issues using five-minute
 intraday transaction data and performs an ex post test of arbitrage, ex
 ante test of arbitrage, and regression analysis. Empirical results
 indicate that relaxing the uptick rule should improve market efficiency
 and facilitate long arbitrage, subsequently accelerating the adjustment to
 no-arbitrage bounds and helping to decrease ex post and ex ante mispricing
 and underpricing following the relaxation.
Journal: Emerging Markets Finance and Trade 
Pages: 48-66 
Issue: 5 
Volume: 46 
Year: 2010 
Month: 9 
Keywords: ex ante test, index arbitrage, short-sales constraints, underpricing, uptick rule, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=17N6N2846H556P93 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Brailsford, T. J., and
 A. J. Cusack. 1997. "A Comparison of Futures Pricing Models in a New
 Market: The Case of Individual Share Futures." >i>Journal of Futures
 Markets>/i> 17, no. 5: 515-541.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>2</BIBL>        <BIBTEXT> Brenner, M.; M. G. Subrahmanyam; and J.
 Uno. 1990. "Arbitrage Opportunities in the Japanese Stock and Futures
 Markets." >i>Financial Analysts Journal>/i> 46, no. 2: 14-24.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>3</BIBL>	  <BIBTEXT> Brown, S. J.,
 and J. B. Warner. 1985. "Using Daily Stock Returns: The Case of Event
 Studies." >i>Journal of Financial Economics>/i> 14, no. 1: 3-31.</BIBTEXT>
      </REF>	  <REF>        <BIBL>4</BIBL>	     <BIBTEXT> Butterworth,
 D., and P. Holmes. 2002. "Inter-Market Spread Trading: Evidence from UK
 Index Futures Markets." >i>Applied Financial Economics>/i> 12, no. 11:
 783-790.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Cakici, N., and S. Chatterjee. 1991. "Pricing Stock Index
 Futures with Stochastic Interest Rates." >i>Journal of Futures Markets>/i>
 11, no. 4: 441-452.</BIBTEXT>	    </REF>	<REF>	     <BIBL>6</BIBL>
	<BIBTEXT> Cheng, M. H., and H. H. Kang. 2007. "Price-Formation
 Process of an Emerging Futures Market: Call Auction Versus Continuous
 Auction." >i>Emerging Markets Finance & Trade>/i> 43, no. 1
 (January-February): 74-97.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>7</BIBL>        <BIBTEXT> Chou, P. H.; M. C. Lin; and M. T. Yu.
 2006. "Margins and Price Limits in Taiwan's Stock Index Futures Market."
 >i>Emerging Markets Finance & Trade>/i> 42, no. 1 (January-February):
 62-88.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT> Chung, Y. P.; J. K. Kang; and S. G. Rhee. 1994. "Index-Futures
 Arbitrage in Japan." Working paper, University of California,
 Riverside.</BIBTEXT>	   </REF>      <REF>	    <BIBL>9</BIBL>	 
 <BIBTEXT> Cornell, B., and K. R. French. 1983. "Taxes and the Pricing of
 Stock Index Futures." >i>Journal of Finance>/i> 38, no. 3:
 675-694.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Diamond, D., and R. Verecchia. 1987. "Constraints on
 Short-Selling and Asset Price Adjustment to Private Information."
 >i>Journal of Financial Economics>/i> 18, no. 2: 277-311.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Draper, P., and
 J. K. W. Fung. 2003. "Discretionary Government Intervention and the
 Mispricing of Index Futures." >i>Journal of Futures Markets>/i> 23, no.
 12: 1159-1189.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>    
    <BIBTEXT> Fung, J. K. W., and P. Draper. 1999. "Mispricing of Index
 Futures Contracts and Short Sales Constraints." >i>Journal of Futures
 Markets>/i> 19, no. 6: 695-715.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>13</BIBL>	<BIBTEXT> Gay, G. D., and D. Y. Jung. 1999. "A
 Further Look at Transaction Costs, Short Sale Restrictions, and Futures
 Market Efficiency: The Case of Korean Stock Index Futures." >i>Journal of
 Futures Markets>/i> 19, no. 2: 153-174.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>14</BIBL>	     <BIBTEXT> Gould, F. J. 1988. "Stock Index
 Futures: The Arbitrage Cycle and Portfolio Insurance." >i>Financial
 Analysts Journal>/i> 44, no. 1: 48-62.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>15</BIBL>	    <BIBTEXT> Hill, J. M.; A. Jain; and R. A. Wood
 Jr. 1988. "Insurance: Volatility Risk and Futures Mispricing." >i>Journal
 of Portfolio Management>/i> 14, no. 2: 23-29.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Hong, H., and J. Stein.
 2003. "Differences of Opinion, Short-Sales Constraints and Market
 Crashes." >i>Review of Financial Studies>/i> 16, no. 2: 487-525.</BIBTEXT>
      </REF>	  <REF>        <BIBL>17</BIBL>	      <BIBTEXT> Huang, Y.
 C., and P. L. Tsai. 2008. "Effectiveness of Closing Call Auctions:
 Evidence from the Taiwan Stock Exchange." >i>Emerging Markets Finance &
 Trade>/i> 44, no. 3 (May-June): 5-20.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>18</BIBL>	   <BIBTEXT> Jouini, E., and H. Kallal. 2001.
 "Efficient Trading Strategies in the Presence of Market Frictions."
 >i>Review of Financial Studies>/i> 14, no. 2: 343-369.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Kempf, A. 1998.
 "Short Selling, Unwinding, and Mispricing." >i>Journal of Futures
 Markets>/i> 18, no. 8: 903-923.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>20</BIBL>	<BIBTEXT> Klemkosky, R. C., and J. H. Lee. 1991.
 "The Intraday Ex Post and Ex Ante Profitability of Index Arbitrage."
 >i>Journal of Futures Markets>/i> 11, no. 3: 291-311.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Lee, J. H., and
 N. Nayar. 1993. "A Transactions Data Analysis of Arbitrage Between Index
 Options and Index Futures." >i>Journal of Futures Markets>/i> 13, no. 8:
 889-902.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Lien, D., and M. Zhang. 2008. "A Survey of Emerging Derivatives
 Markets." >i>Emerging Markets Finance & Trade>/i> 44, no. 2 (March-April):
 39-69.</BIBTEXT>      </REF>	   <REF>	<BIBL>23</BIBL>       
 <BIBTEXT> Neal, R. 1996. "Direct Tests of Index Arbitrage Models."
 >i>Journal of Financial and Quantitative Analysis>/i> 31, no. 4:
 541-562.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT> Pope, P. F., and P. K. Yadav. 1994. "The Impact of Short Sales
 Constraints on Stock Index Futures: Evidence from FT-SE 100 Futures."
 >i>Journal of Derivatives>/i> 1, no. 4: 15-26.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:46:y:2010:i:5:p:48-66




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen 
Author-X-Name-First: Chung-Hua 
Author-X-Name-Last: Shen 
Author-Name: Kun-Li Lin 
Author-X-Name-First: Kun-Li 
Author-X-Name-Last: Lin 
Title: The Impact of Corporate Governance on the Relationship Between Fundamental Information Analysis and Stock Returns 
Abstract:
 This study investigates whether corporate governance affects the impact of
 the relationship between fundamental signals and stock returns using
 Taiwanese data. The study employs the endogenous switching model (ESM) of
 Hu and Schiantarelli (1998), which combines the response equation and
 governance index equation simultaneously. We divide the sample into strong
 and weak governance regimes. Our results suggest that stock returns
 respond differently in different governance regimes. The beneficial
 response is greater in the strong governance regime than in the weak one,
 suggesting that it is worth improving governance for firms.
Journal: Emerging Markets Finance and Trade 
Pages: 90-105 
Issue: 5 
Volume: 46 
Year: 2010 
Month: 9 
Keywords: corporate governance, endogenous switching model, fundamental analysis, governance index, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=223K5478M07T9861 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abarbanell, S., and B.
 Bushee. 1997. "Fundamental Analysis, Future Earnings, and Stock Prices."
 >i>Journal of Accounting Research>/i> 35, no. 1: 1-24.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Abarbanell, S.,
 and B. Bushee. 1998. "Abnormal Returns to a Fundamental Analysis
 Strategy." >i>Accounting Review>/i> 73, no. 1: 19-45.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Ball, R., and L.
 Shivakumar. 2005. "Earnings Quality in U. K. Private Firms: Comparative
 Loss Recognition." >i>Journal of Accounting and Economics>/i> 39, no. 1:
 83-128.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>       
 <BIBTEXT> Beasley, M. 1996. "An Empirical Analysis of the Relation Between
 the Board of Director Composition and Financial Statement Fraud."
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 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Beekes, W., and P. Brown.
 2006. "Do Better-Governed Australian Firms Make More Informative
 Disclosures?" >i>Journal of Business Finance & Accounting>/i> 33, no. 3:
 422-450.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Bekaert, G., and H. Campbell. 2003. "Emerging Markets Finance."
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 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Chan, K.; L.
 Chan; N. Jegadeesh; and J. Lakonishok. 2006. "Earnings Quality and Stock
 Returns." >i>Journal of Business>/i> 79, no. 3: 1041-1082.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Chiang, M., and
 J. Lin. 2007. "The Relationship Between Corporate Governance and Firm
 Productivity: Evidence from Taiwan's Manufacturing Firms." >i>Corporate
 Governance: An International Review>/i> 15, no. 5: 768-779.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Claessens, S.; S.
 Djankov; and L. Lang. 2000. "The Separation of Ownership and Control in
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  <BIBTEXT> De Bondt, W., and R. Thaler. 1985. "Does the Stock Market
 Overreact?" >i>Journal of Finance>/i> 40, no. 3: 793-805.</BIBTEXT>	 
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 J. McConnell. 2003. "International Corporate Governance." >i>Journal of
 Financial and Quantitative Analysis>/i> 38, no. 1: 1-36.</BIBTEXT>	
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 S. Sundgren; and M. Wells. 1998. "Larger Board Size and Decreasing Firm
 Value in Small Firms." >i>Journal of Financial Economics>/i> 48, no. 1:
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 <BIBTEXT> Fabozzi, F. 1978. "Quality of Earnings: A Test of Market
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 <BIBTEXT> Fan, P. H., and T. Wong. 2002. "Corporate Ownership Structure
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 Concentration and Firm Value: A Study from the Indian Corporate Sector."
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 83-108.</BIBTEXT>	</REF>	    <REF>	 <BIBL>29</BIBL>       
 <BIBTEXT> Shen, C. H., and H. L. Chih. 2007. "Earnings Management and
 Corporate Governance in Asia's Emerging Markets." >i>Corporate Governance:
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 "Threshold Autoregression, Limit Cycles and Cyclical Data." >i>Journal of
 the Royal Statistical Society>/i> 42, no. 3: 245-292.</BIBTEXT>     
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 K. L. Deng. 2006. "Corporate Governance and Financial Distress: Evidence
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 Ownership, Accounting Choices, and Informativeness of Earnings."
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 1996. "Higher Market Valuation of Companies with a Small Board of
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:5:p:90-105




Template-Type: ReDIF-Article 1.0
Author-Name: Mazin A. M. Al Janabi 
Author-X-Name-First: Mazin A. M. 
Author-X-Name-Last: Al Janabi 
Author-Name: Abdulnasser Hatemi-J 
Author-X-Name-First: Abdulnasser 
Author-X-Name-Last: Hatemi-J 
Author-Name: Manuchehr Irandoust 
Author-X-Name-First: Manuchehr 
Author-X-Name-Last: Irandoust 
Title: Modeling Time-Varying Volatility and Expected Returns: Evidence from the GCC and MENA Regions 
Abstract:
 The aim of this study is to investigate empirically the underlying nexus
 of stock market returns and volatility in the Gulf Cooperation Council
 (GCC) countries and Middle East and North Africa (MENA) region by using
 the GARCH-M model. We find that volatility is time-varying in all
 countries, which indicates substantial variation in the degree of risk
 across time. However, we do not find empirical support that this
 time-varying volatility significantly explains expected returns, except in
 the case of Kuwait, United Arab Emirates, and the MENA region portfolio.
 Our findings show that stock return volatility is negatively correlated
 with stock returns in these three markets under the assumption of investor
 risk aversion. This lends some support to the hypothesis of a
 volatility-driven negative relationship in the literature. The policy
 implications of our results are discussed.
Journal: Emerging Markets Finance and Trade 
Pages: 39-47 
Issue: 5 
Volume: 46 
Year: 2010 
Month: 9 
Keywords: emerging markets, expected return, GARCH-M, Gulf Cooperation Council (GCC), risk management, volatility, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=801X4162MU786862 
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R.; C.
 Inclan; and R. Leal. 1999. "Volatility in Emerging Stock Markets."
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 <BIBL>23</BIBL>	<BIBTEXT> Hammoudeh, S., and K. Choi. 2007.
 "Characteristics of Permanent and Transitory Return in Oil-Sensitive
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 Financial Markets, Institutions and Money>/i> 17, no. 3:
 231-245.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
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 Intertemporal Relation Between the Market Risk Premium and Conditional
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 <BIBTEXT> Sharpe, W. F. 1964. "Capital Assets Prices: A Theory of Market
 Equilibrium Under Conditions of Market Risk." >i>Journal of Finance>/i>
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 1989. "A Markov Model of Heteroskedasticity, Risk, and Learning in the
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 <BIBTEXT> Whitelaw, R. 2000. "Stock Market Risk and Return: An Empirical
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:5:p:39-47




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel W. Malone 
Author-X-Name-First: Samuel W. 
Author-X-Name-Last: Malone 
Author-Name: Enrique ter Horst 
Author-X-Name-First: Enrique 
Author-X-Name-Last: ter Horst 
Title: The Black Market for Dollars in Venezuela 
Abstract:
 In February 2003, the Venezuelan government imposed a strict capital
 controls policy to stem the outflow of dollars. We describe the mechanics
 and structure of the resulting black market and analyze the comparative
 performance of alternative models in explaining and forecasting the black
 market premium. Robustly significant determinants of the premium include
 the lagged premium, the official real exchange rate, the implied returns
 from arbitrage, and the oil price. Our preferred model exhibits
 outstanding out-of-sample forecasting performance, with an average
 prediction error of -0.9 percent, and an error standard deviation of 7.8
 percent, during the ten-month period until July 2009. We provide evidence
 that the exogenous change of the black market swap vehicle to government
 bonds in 2007 induced a significant shift in the relative importance of
 the determinants of the premium, causing shocks to become significantly
 more persistent, the coefficient on the implied returns from arbitrage to
 double, and rendering the beneficial effect of oil price increases
 insignificant.
Journal: Emerging Markets Finance and Trade 
Pages: 67-89 
Issue: 5 
Volume: 46 
Year: 2010 
Month: 9 
Keywords: black market, capital controls, exchange rates, forecasting, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=9816382124G7H615 
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File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agenor, P.-R., and R.
 P. Flood. 1992. "Unification of Foreign Exchange Markets." >i>IMF Staff
 Papers>/i> 39, no. 4: 923-947.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>2</BIBL>        <BIBTEXT> Culbertson, W. P. 1989. "Empirical
 Regularities in Black Markets for Currency." >i>World Development>/i> 17,
 no. 12: 1907-1919.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL> 
       <BIBTEXT> Dornbusch, R.; D. V. Dantas; C. Pechman; R. de Rezende
 Rocha; and D. SemÃƒÂµes. 1983. "The Black Market for Dollars in Brazil."
 >i>Quarterly Journal of Economics>/i> 98, no. 1 (February):
 25-40.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT> Fishelson, G. 1988. "The Black Market for Foreign Exchange: An
 International Comparison," >i>Economics Letters>/i> 27, no. 1:
 67-71.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> Gallegos, R. 2007a. "Venezuela Pres Says to Nationalize Top
 Power, Telecom Cos." >i>Dow Jones International News>/i>, January
 8.</BIBTEXT>	   </REF>      <REF>	    <BIBL>6</BIBL>	  <BIBTEXT>
 Gallegos, R. 2007b. "Venezuela Black Forex Mkt Freezes as Govt Vows
 Crackdown." >i>Dow Jones International News>/i>, January 26.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT> Goldberg, L. S.,
 and I. Karimov. 1997. "Black Markets for Currency, Hoarding Activity and
 Policy Reforms." >i>Journal of International Economics>/i> 42, nos. 3-4:
 349-369.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Kamin, S. B. 1993. "Devaluation, Exchange Controls, and Black
 Markets for Foreign Exchange in Developing Countries." >i>Journal of
 Development Economics>/i> 40, no. 1: 151-169.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Kiguel, M., and S. A.
 O'Connell. 1995. "Parallel Exchange Rates in Developing Countries."
 >i>World Bank Research Observer>/i> 10, no. 1 (February): 21-52.</BIBTEXT>
      </REF>	  <REF>        <BIBL>10</BIBL>	      <BIBTEXT> Mander, B.
 2007. "Two Largest Venezuelan Stocks Delist from Exchange." >i>Financial
 Times>/i>, May 8.</BIBTEXT>	  </REF>      <REF>	   <BIBL>11</BIBL> 
       <BIBTEXT> Mander, B. 2008a. "Currency Tourists Reap Chavez
 Ã¢Â€Â˜Giveaway.Ã¢Â€Â™" >i>Financial Times>/i>, January 29.</BIBTEXT>      </REF>
      <REF>	   <BIBL>12</BIBL>	  <BIBTEXT> Mander, B. 2008b.
 "Caracas Eyes Ã¢Â€Â˜Dual Currency.Ã¢Â€Â™" >i>Financial Times>/i>, March
 31.</BIBTEXT>	    </REF>	<REF>	     <BIBL>13</BIBL>	   
 <BIBTEXT> Marion, N. P. 1994. "Dual Exchange Rates in Europe and Latin
 America." >i>World Bank Economic Review>/i> 8, no. 2: 213-245.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>14</BIBL>	    <BIBTEXT> Phylaktis, K.
 1992. "The Black Market for Dollars in Chile." >i>Journal of Development
 Economics>/i> 37, nos. 1-2: 155-172.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>15</BIBL>	  <BIBTEXT> Shachmurove, Y. 1999. "The Premium in
 Black Foreign Exchange Markets: Evidence from Developing Countries."
 >i>Journal of Policy Modeling>/i> 21 (January): 1-39.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Sims, C. A., and
 H. Uhlig. 1991. "Understanding Unit Rooters: A Helicopter Tour."
 >i>Econometrica>/i> 59, no. 6 (November): 1591-1600.</BIBTEXT>      </REF>
      <REF>	   <BIBL>17</BIBL>	  <BIBTEXT> Stroth, S., and N.
 GÃƒÂ³mez. 2009. "Consecuencias en el comercio y empresas colombianas del
 control cambiario venezolano" [Consequences of the Venezuelan Exchange
 Controls for Colombian Commerce and Businesses]. Master's thesis,
 Universidad de los Andes, Facultad de AdministraciÃƒÂ³n, BogotÃƒÂ¡,
 Colombia.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:5:p:67-89




Template-Type: ReDIF-Article 1.0
Author-Name: Gab-Je Jo 
Author-X-Name-First: Gab-Je 
Author-X-Name-Last: Jo 
Title: The Transmission of Japanese Financial Shocks: Evidence from International Bank Claims on East Asian Economies 
Abstract:
 Since Japanese banks have been the major creditors in Asia, Japan has been
 a notable source of regional macroeconomic fluctuations. This study
 explores the patterns of Japanese bank claims in East Asian economies,
 focusing on the transmission effects of Japanese financial shock via
 international bank claims. The author finds that international lending by
 Japanese banks differed substantially from that of other major lenders.
 The study also suggests that the banking shocks captured by the Japanese
 stock market decline and nonperforming loans were transmitted throughout
 other East Asian economies via lending activity by Japanese banks. This
 association was found to be statistically significant.
Journal: Emerging Markets Finance and Trade 
Pages: 4-17 
Issue: 5 
Volume: 46 
Year: 2010 
Month: 9 
Keywords: East Asia, financial shock, international bank lending, Japanese banking crisis, transmission effect, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=F3245722507362P5 
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Fukao, M. 2002.
 "Barriers to Financial Restructuring: Japanese Banking and Life-Insurance
 Industries." Paper presented at the conference on East Asian Monetary and
 Financial Co-operation; Concepts, Policy Prospects and the Role of the
 Yen, Hamburg Institute for International Economics, May 29.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Goldberg, L.
 2002. "When Is U. S. Bank Lending to Emerging Markets Volatile?" In
 >i>Preventing Currency Crises in Emerging Markets>/i>, ed. S. Edwards and
 J. Frankel, pp. 171-196. Chicago: University of Chicago Press.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>3</BIBL>	   <BIBTEXT> Goldberg, L.
 2002. "The International Exposure of U. S. Banks: Europe and Latin America
 Compared." In >i>International Capital Flows>/i>, ed. S. Edwards, pp.
 203-240. Chicago: University of Chicago Press.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Jeanneau, S., and M. Micu.
 2002. "Determinants of International Bank Lending to Emerging Market
 Countries." BIS Working Papers no. 112, Basel, Switzerland.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Kaminsky, G., and
 C. Reinhart. 2000. "On Crisis, Contagion and Confusion." >i>Journal of
 International Economics>/i> 51, no. 1: 145-168.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Kanaya, A., and D. Woo. 2000.
 "The Japanese Banking Crisis of the 1990s: Sources and Lessons." IMF
 Working Papers no. WP/00/7, Washington, DC.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> Krawczyk, M. K. 2004. "Change
 and Crisis in the Japanese Banking Industry." HWWA Discussion Papers no.
 277, Hamburg Institute of International Economics.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>8</BIBL>        <BIBTEXT> Levin, A.; C. F. Lin; and
 C. Chu. 2002. "Unit Root Tests in Panel Data: Asymptotic and Finite-Sample
 Properties." >i>Journal of Econometrics>/i> 108, no. 1: 1-24.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>9</BIBL>	  <BIBTEXT> Martinez Peria,
 M. S.; A. Powell; and I. Vladkova-Hollar. 2005. "Banking on Foreigners:
 The Behavior of International Bank Lending to Latin America." >i>IMF Staff
 Papers>/i> 52, no. 3: 108-151.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Peek, J., and E. S. Rosengren. 1997. "The
 International Transmission of Financial Shocks: The Case of Japan."
 >i>American Economic Review>/i> 87, no. 4: 495-505.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Peek, J., and E. S.
 Rosengren. 2000. "Collateral Damage: Effects of the Japanese Bank Crisis
 on Real Activity in the United States." >i>American Economic Review>/i>
 90, no. 1: 30-45.</BIBTEXT>	  </REF>      <REF>	   <BIBL>12</BIBL> 
       <BIBTEXT> Sargan, J. D. 1964. "Wages and Prices in the United
 Kingdom: A Study in Econometric Methodology." In >i>Econometric Analysis
 for National Economic Planning>/i>, ed. P. E. Hart, G. Mills, and J. K.
 Whitaker, pp. 25-64. London: Butterworths.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT> Willett, T. D.; A. Budiman;
 A. Denzau; G.-J. Jo; C. Ramos; and J. Thomas. 2004. "The Falsification of
 Four Popular Hypotheses About the Asian Crisis." >i>World Economy>/i> 27,
 no. 1: 25-44.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:46:y:2010:i:5:p:4-17




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 5 
Volume: 46 
Year: 2010 
Month: 9 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X421T3G2P9238123 
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:5:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Wei Lai 
Author-X-Name-First: Hung-Wei 
Author-X-Name-Last: Lai 
Author-Name: Cheng-Wei Chen 
Author-X-Name-First: Cheng-Wei 
Author-X-Name-Last: Chen 
Author-Name: Chin-Sheng Huang 
Author-X-Name-First: Chin-Sheng 
Author-X-Name-Last: Huang 
Title: Technical Analysis, Investment Psychology, and Liquidity Provision: Evidence from the Taiwan Stock Market 
Abstract:
 We set out to empirically identify the effects on technical signals
 attributable to psychological biases, adopting a set of specific liquidity
 provision proxies for a sample of firms listed on the Taiwan Stock
 Exchange. The main findings of our empirical analysis are that the
 "disposition," "information cascade," and "anchoring" effects each have
 significant impacts on trading signals. Our results should help to shed
 further light on the asymmetric market responses to technical buy and sell
 signals, while also providing some potential clarification of the
 different attitudes of traders toward big-cap and small-cap firms.
Journal: Emerging Markets Finance and Trade 
Pages: 18-38 
Issue: 5 
Volume: 46 
Year: 2010 
Month: 9 
Keywords: anchoring effect, disposition effect, information cascade, technical analysis, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y44532X2352L8162 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Atiase, R. 1985.
 "Pre-Disclosure Information, Firm Capitalization and Security Price
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 Predictive Ability and Profitability of Technical Trading Rules: Does
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 <BIBTEXT> Casey, C. 1980. "Variation in Accounting Information Load: The
 Effect on Loan Officers' Prediction of Bankruptcy." >i>Accounting
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 D. Galai. 1992. "The Settlement Day Effect in the French Bourse."
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 F., and K. R. French. 1993. "Common Risk Factors in the Return on Bonds."
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 1982. "Rational Expectations Equilibrium with Conditioning on Past Price:
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 and P. L. Tsai. 2008. "Effectiveness of Closing Call Auctions: Evidence
 from the Taiwan Stock Exchange." >i>Emerging Markets Finance & Trade>/i>
 44, no. 3 (May-June): 5-20.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>18</BIBL>	<BIBTEXT> Lin, A. Y.; L. S. Huang; and M. Y. Chen.
 2007. "Price Comovement and Institutional Performance Following Large
 Market Movements." >i>Emerging Markets Finance & Trade>/i> 43, no. 5
 (September-October): 37-61.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>19</BIBL>	<BIBTEXT> Luo, J. S., and C. A. Li. 2008. "Futures
 Market Sentiment and Institutional Investor Behavior in the Spot Market:
 The Emerging Market in Taiwan." >i>Emerging Markets Finance & Trade>/i>
 44, no. 2 (March-April): 70-86.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>20</BIBL>	<BIBTEXT> Menkhoff, L., and M. P. Taylor. 2007.
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 <BIBL>22</BIBL>	<BIBTEXT> Park, C. H., and S. H. Irwin. 2007. "What
 Do We Know About the Profitability of Technical Analysis?" >i>Journal of
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 Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and
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 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:5:p:18-38




Template-Type: ReDIF-Article 1.0
Author-Name: Saksit Budsayaplakorn 
Author-X-Name-First: Saksit 
Author-X-Name-Last: Budsayaplakorn 
Author-Name: Sel Dibooglu 
Author-X-Name-First: Sel 
Author-X-Name-Last: Dibooglu 
Author-Name: Ike Mathur 
Author-X-Name-First: Ike 
Author-X-Name-Last: Mathur 
Title: Can Macroeconomic Indicators Predict a Currency Crisis? Evidence from Selected Southeast Asian Countries 
Abstract:
 This paper examines the probability of currency crises using a signal
 approach and a multivariate probit model. The results indicate that the
 signal approach can provide an effective warning system despite its
 nonparametric nature. The top three indicators that are useful in
 anticipating crises include international reserves, stock market indices,
 and gross domestic product (GDP), in that order. Excess money balances and
 the ratio of domestic credit to GDP are significant and have positive
 correlation with the probability of a crisis. The growth rate of exports
 and the stock indices are significant and have a negative relationship
 with a crisis probability. Overall, the results indicate that government
 policies, the macroeconomic environment, and investor
 panic/self-fulfilling expectations all play a role in the making of a
 crisis.
Journal: Emerging Markets Finance and Trade 
Pages: 5-21 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: currency crisis, forecasting, probit model, signaling model, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=025325774737M257 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Berg, A., and C.
 Pattillo. 1999. "Predicting Currency Crises: The Indicators Approach and
 Alternative." >i>Journal of International Money and Finance>/i> 18, no. 4:
 561-586.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Canova, F. 1994. "Were Financial Crises Predictable?" >i>Journal
 of Money, Credit, and Banking>/i> 26, no. 1: 102-124.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Chang, R., and A.
 Velasco. 1999. "Liquidity Crises in Emerging Markets: Theory and Policy."
 National Bureau of Economic Research Working Paper no. 7272, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>	  
 <BIBTEXT> Corsetti, G.; P. Pesenti; and N. Roubini. 1998. "What Caused the
 Asian Currency and Financial Crisis?" National Bureau of Economic Research
 Working Paper no. 6833, Cambridge, MA.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>5</BIBL>	   <BIBTEXT> Davidson, S. 2005. "The 1997-98 Asian
 Crisis: A Property Rights Perspective." >i>Cato Journal>/i> 25, no. 3
 (Fall): 567-582.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>   
     <BIBTEXT> Diebold, F. X., and G. D. Rudebusch. 1989. "Scoring the
 Leading Indicators." >i>Journal of Business>/i> 62, no. 3:
 369-391.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Dooley, M. P. 1999. "Origins of the Crisis in Asia." In >i>The
 Asian Financial Crisis: Origins, Implications and Solutions>/i>, ed. W. C.
 Hunter, G. G. Kaufman, and T. H. Krueger, pp. 27-31. Boston:
 Kluwer.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>       
 <BIBTEXT> Frenkel, J. A. 1997. "Stability and Exchange Rate Policy." Bank
 of Japan, Tokyo.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>   
     <BIBTEXT> Funke, N. 1996. "Vulnerability of Fixed Exchange Rate
 Regimes: The Role of Economic Fundamentals." >i>OECD Economic Studies>/i>
 26, no. 1: 158-176.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>10</BIBL>	<BIBTEXT> Johnston, J., and J. DiNardo. 1997.
 >i>Econometric Methods>/i>, 4th ed. New York: McGraw-Hill.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Kamin, S. B.,
 and J. H. Rogers. 1996. "Monetary Policy in the End-Game to Exchange Rate
 Based Stabilizations: The Case of Mexico." International Finance
 Discussion Paper no. 540, Board of Governors of the Federal Reserve
 System, Washington, DC.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>12</BIBL>	<BIBTEXT> Kaminsky, G. 1998. "Currency and Banking
 Crises: The Early Warnings of Distress." International Finance Discussion
 Paper no. 629, Board of Governors of the Federal Reserve System,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>13</BIBL>   
     <BIBTEXT> Kaminsky, G., S. Lizondo, and C. M. Reinhart. 1998. "Leading
 Indicators of Currency Crisis." >i>IMF Staff Papers>/i> 45, no. 1:
 1-47.</BIBTEXT>      </REF>	  <REF>        <BIBL>14</BIBL>	     
 <BIBTEXT> Krugman, P. 2010. "Crises." Paper presented at the Nobel and
 Clark Lectures, American Economic Association Annual Conference, Atlanta,
 GA (available at >a target="_blank"
 href='http://www.princeton.edu/~pkrugman/CRISES.pdf'>www.princeton.edu/~pk
 rugman/CRISES.pdf>/a></BIBTEXT>      </REF>	  <REF>       
 <BIBL>15</BIBL>	<BIBTEXT> Marshall, D. 1998. "Understanding the
 Asian Crisis: Systemic Risk as Coordination Failure." >i>Economic
 Perspectives>/i> (Third Quarter): 13-28.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>16</BIBL>	      <BIBTEXT> Pindyck, R. S., and D. L.
 Rubinfeld. 1998. >i>Econometric Models and Economic Forecasts>/i>, 4th ed.
 New York: McGraw-Hill.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>17</BIBL>	<BIBTEXT> Radelet, S., and J. Sachs. 1988. "The
 Onset of the East Asian Financial Crisis." National Bureau of Economic
 Research Working Paper no. 6680, Cambridge, MA.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> Shimpalee, P. L., and J. B.
 Breuer. 2006. "Currency Crises and Institutions." >i>Journal of
 International Money and Finance>/i> 25, no. 1: 125-145.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> White, H. 1982.
 "Maximum Likelihood Estimation of Misspecified Models."
 >i>Econometrica>/i> 50, no. 1: 1-26.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:5-21




Template-Type: ReDIF-Article 1.0
Author-Name: Hubert Gabrisch 
Author-X-Name-First: Hubert 
Author-X-Name-Last: Gabrisch 
Author-Name: Lucjan T. Orlowski 
Author-X-Name-First: Lucjan T. 
Author-X-Name-Last: Orlowski 
Title: Interest Rate Convergence in Euro-Candidate Countries: Volatility Dynamics of Sovereign Bond Yields 
Abstract:
 We argue that a "static" specification of the Maastricht criterion for
 long-term bond yields is not conducive to assessing stability of financial
 systems in euro-candidate countries. Instead, we advocate a dynamic
 approach to assessing interest rate convergence to a common currency that
 is based on the analysis of financial system stability. Accordingly, we
 empirically test volatility dynamics of the ten-year sovereign bond yields
 of the 2004 EU accession countries in relation to the eurozone yields
 during the January 2, 2001-January 22, 2009, sample period. Our results
 show a varied degree of the relationship between domestic and eurozone
 sovereign bond yields, the most pronounced for the Czech Republic,
 Slovenia, and Poland, and weaker for Hungary and Slovakia. We find some
 divergence of relative bond yields since the EU accession.
Journal: Emerging Markets Finance and Trade 
Pages: 69-85 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: common currency area, GARCH, interest rate convergence, interest rate risk, new EU member states, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=24U7W81713882786 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Angeloni, I.; M. Flad;
 and F. Mongelli. 2005. "Economic and Monetary Integration of the New
 Member States: Helping to Chart the Route." European Central Bank
 Occasional Paper no. 36, Frankfurt am Main.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Baltzer, M.; L. Capiello; R.
 A. De Santis; and S. Manganelli. 2008. "Measuring Financial Integration in
 New EU Member States." European Central Bank Occasional Paper no. 81,
 Frankfurt am Main.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL> 
       <BIBTEXT> Bayoumi, T. A., and B. J. Eichengreen. 1993. "Shocking
 Aspects of European Monetary Integration." In >i>Growth and Adjustment in
 the European Monetary Union>/i>, ed. F. Torres and F. Giavazzi, pp.
 193-229. Cambridge: Cambridge University Press.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Brada, J. C., and A. M.
 Kutan. 2001. "The Convergence of Monetary Policy Between Candidate
 Countries and the European Union." >i>Economic Systems>/i> 25, no. 3:
 215-231.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Brada, J. C., and A. M. Kutan. 2002. "Balkan and Mediterranean
 Candidates for European Union Membership." >i>Eastern European
 Economics>/i> 40, no. 4: 31-44.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>6</BIBL>        <BIBTEXT> Brada, J. C.; A. M. Kutan; and S. Zhou.
 2005. "Real and Monetary Convergence Between the European Union's Core and
 Recent Member Countries: A Rolling Cointegration Approach." >i>Journal of
 Banking & Finance>/i> 29, no. 1: 249-270.</BIBTEXT>	  </REF>      <REF>
	<BIBL>7</BIBL>	      <BIBTEXT> DeGrauwe, P., and G. Schnabl. 2005.
 "Nominal Versus Real Convergence: EMU Entry Scenarios for New Member
 States." >i>Kyklos>/i> 58, no. 4: 537-555.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Figuet, J.-M., and N.
 Nenovsky. 2006. "Convergence and Shocks in the Road to EU: Empirical
 Investigations for Bulgaria and Romania." University of Michigan-William
 Davidson Institute Working Paper Series no. 810, Ann Arbor.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Hallerberg, M.,
 and G. B. Wolff. 2008. "Fiscal Institutions, Fiscal Policy and Sovereign
 Risk Premia in EMU." >i>Public Choice>/i> 136, nos. 3-4:
 379-396.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Hallerberg, M.; R. Strauch; and J. von Hagen. 2007. "The Design
 of Fiscal Rules and Forms of Governance in European Union Countries."
 >i>European Journal of Political Economy>/i> 23, no. 2: 338-359.</BIBTEXT>
      </REF>	  <REF>        <BIBL>11</BIBL>	      <BIBTEXT> Halpern,
 L., and C. Wyplosz. 2001. "Economic Transformation and Real Exchange Rates
 in the 2000s: The Balassa-Samuelson Connection." United Nations Economic
 Commission for Europe, Discussion Paper Series 2001.1, Geneva.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>12</BIBL>	    <BIBTEXT> HoltemÃƒÂ¶ller,
 O. 2005. "Uncovered Interest Rate Parity and Analysis of Monetary
 Convergence of Potential EMU Accession Countries." >i>International
 Economics and Economic Policy>/i> 2, no. 1: 33-63.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>13</BIBL>	<BIBTEXT> Hristov, K., and R.
 Rozenov. 2009. "Financial Convergence in the New EU Member States."
 Deutsches Institut fÃƒÂ¼r Wirtschaftsforschung (DIW)-Finess Project Working
 Paper D. 1.2, Berlin.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>14</BIBL>	<BIBTEXT> International Monetary Fund. 2009.
 "Global Financial Stability Report: Responding to the Financial Crisis and
 Measuring Systemic Risk." Washington, DC, April 2009.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Kenen, P. B.,
 and E. E. Meade. 2003. "EU Accession and the Euro: Close Together or Far
 Apart?" International Economics Policy Briefs no. PB03-9, Princeton
 University, October.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>16</BIBL>	<BIBTEXT> Kim, S. J.; B. M. Lucey; and E. Wu. 2006.
 "Dynamics of Bond Market Integration Between Established and Accession
 European Union Countries." >i>Journal of International Financial Markets,
 Institutions and Money>/i> 16, no. 1: 41-56.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> KoÃ„Âenda, E., and T.
 Poghosyan. 2009. "Macroeconomic Sources of Foreign Exchange Risk in New EU
 Members." >i>Journal of Banking and Finance>/i> 33, no. 11:
 2164-2173.</BIBTEXT>	   </REF>      <REF>	    <BIBL>18</BIBL>	  
 <BIBTEXT> KoÃ„Âenda, E., and J. Valachy. 2006. "Exchange Rate Volatility
 and Regime Change: A Visegrad Comparison." >i>Journal of Comparative
 Economics>/i> 34, no. 4: 727-753.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>19</BIBL>	<BIBTEXT> KoÃ„Âenda, E.; A. M. Kutan; and T. Yigit.
 2006. "Pilgrims to the Eurozone: How Far, How Fast?" >i>Economic
 Systems>/i> 30, no. 4: 311-327.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>20</BIBL>	<BIBTEXT> Kutan, A. M., and T. Yigit. 2005. "Real
 and Nominal Stochastic Convergence: Are the New EU Members Ready to Join
 the Euro Zone?" >i>Journal of Comparative Economics>/i> 33, no. 2:
 387-400.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> MatouÃ…Â¡ek, R., and A. Taci. 2003. "Direct Inflation Targeting
 and Nominal Convergence: The Czech Case." >i>Open Economies Review>/i> 14,
 no. 3: 269-283.</BIBTEXT>	</REF>	    <REF>	 <BIBL>22</BIBL>   
     <BIBTEXT> Mihaljek, D., and M. Klau. 2004. "The Balassa-Samuelson
 Effect in Central Europe: A Disaggregated Analysis." >i>Comparative
 Economic Studies>/i> 46, no. 1: 63-95.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>23</BIBL>	    <BIBTEXT> Orlowski, L. T. 2003. "Monetary
 Convergence and Risk Premiums in the EU Accession Countries." >i>Open
 Economies Review>/i> 14, no. 3: 251-267.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>24</BIBL>	      <BIBTEXT> Orlowski, L. T. 2008a. "Relative
 Inflation Forecast as Monetary Policy Target for Convergence to the Euro."
 >i>Journal of Policy Modeling>/i> 30, no. 6: 1061-1081.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Orlowski, L. T.
 2008b. "Stages of the 2007/2008 Global Financial Crisis: Is There a
 Wandering Asset-Price Bubble?" Economics E-Journal Discussion Paper no.
 43, December 18.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>  
      <BIBTEXT> Orlowski, L. T., and K. Lommatzsch. 2005. "Bond Yield
 Compression in the Countries Converging to the Euro. University of
 Michigan-William Davidson Institute Working Paper Series, no.
 799.</BIBTEXT>      </REF>	 <REF>	      <BIBL>27</BIBL>	    
 <BIBTEXT> Quah, D. 1993. "Galton's Fallacy and Tests of the Convergence
 Hypothesis." >i>Scandinavian Journal of Economics>/i> 95, no. 4:
 427-443.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT> Schulz, A., and G. B. Wolff. 2008. "Sovereign Bond Market
 Integration: The Euro, Trading Platforms and Globalization." Deutsche
 Bundesbank Discussion Paper Series 1, Economic Studies no. 12/2008,
 Frankfurt am Main.</BIBTEXT>	   </REF>      <REF>	    <BIBL>29</BIBL>
	<BIBTEXT> Weber, S. 2009. "European Financial Market Integration: A
 Closer Look at Government Bonds in Eurozone Countries." Deutsches Institut
 fÃƒÂ¼r Wirtschaftsforschung (DIW) Berlin Discussion Paper no. 864,
 Berlin.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:69-85




Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Chuan Chang 
Author-X-Name-First: Jui-Chuan 
Author-X-Name-Last: Chang 
Author-Name: Ching-Chuan Tsong 
Author-X-Name-First: Ching-Chuan 
Author-X-Name-Last: Tsong 
Title: Exchange Rate Pass-Through and Monetary Policy: A Cross-Commodity Analysis 
Abstract:
 This paper investigates how a change in monetary policy affects the degree
 and the speed of exchange rate pass-through to import prices in the
 emerging market economy, using a newly constructed data set from Taiwan's
 trading commodities. First, the analytical framework is set up following
 Goldberg and Knetter (1997) and Campa and Goldberg (2005). Next, the
 period-by-period and the multiple-period cumulative effects of monetary
 policy on the degree of exchange rate pass-through can be traced out. The
 dynamic panel data model is then estimated by Bun and Carree's (2005)
 bias-corrected approach, which enjoys easy calculation and robust testing
 performances, leading to more reliable empirical results. Our
 cross-commodity evidence strongly supports the partial pass-through in the
 short run and the complete pass-through in the long run. Moreover,
 following a change in monetary policy, this pass-through effect increases
 during several initial periods and declines to zero over time.
Journal: Emerging Markets Finance and Trade 
Pages: 106-120 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: dynamic panel, emerging market, exchange rate pass-through, monetary policy, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=375860U384625327 
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Anderton, B. 2003.
 "Extra-Euro Area Manufacturing Import Prices and Exchange Rate
 Pass-Through." Working Paper no. 219, European Central Bank,
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 <BIBTEXT> Bailliu, J., and E. Fujii. 2004. "Exchange Rate Pass-Through and
 the Inflation Environment in Industrialized Countries: An Empirical
 Investigation." Working Paper no. WP04-21, Bank of Canada,
 Ottawa.</BIBTEXT>	</REF>	    <REF>	 <BIBL>3</BIBL>       
 <BIBTEXT> Bun, M. J. G., and M. A. Carree. 2005. "Bias-Corrected
 Estimation in Dynamic Panel Data Models." >i>Journal of Business and
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 Prices in a Utility Maximizing Framework." >i>Journal of Monetary
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 <BIBL>5</BIBL>        <BIBTEXT> Campa, J. M., and L. Goldberg. 2005.
 "Exchange Rate Pass-Through into Import Prices." >i>Review of Economics
 and Statistics>/i> 87, no. 4: 679-690.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>6</BIBL>	   <BIBTEXT> Choudhri, E., and D. Hakura. 2006.
 "Exchange Rate Pass-Through to Domestic Prices: Does the Inflationary
 Environment Matter?" >i>Journal of International Money and Finance>/i> 25,
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    <BIBTEXT> Clark, T. E. 1999. "The Responses of Prices at Different
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 <BIBTEXT> Gagnon, J., and J. Ihrig. 2004. "Monetary Policy and Exchange
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:106-120




Template-Type: ReDIF-Article 1.0
Author-Name: Zhian Chen 
Author-X-Name-First: Zhian 
Author-X-Name-Last: Chen 
Author-Name: Hai Jiang 
Author-X-Name-First: Hai 
Author-X-Name-Last: Jiang 
Author-Name: Donghui Li 
Author-X-Name-First: Donghui 
Author-X-Name-Last: Li 
Author-Name: Ah Boon Sim 
Author-X-Name-First: Ah Boon 
Author-X-Name-Last: Sim 
Title: Regulation Change and Volatility Spillovers: Evidence from China's Stock Markets 
Abstract:
 This paper investigates the structural changes of volatility spillovers
 between Chinese A-share and B-share markets induced by a regulation change
 on February 19, 2001, that allowed Chinese domestic investors to trade in
 the B-share market. The empirical results of the study, using
 high-frequency intraday data collected from a sample of seventy-eight
 firms issuing both A-shares and B-shares and employing a bivariate
 generalized autoregressive conditional heteroskedasticity (GARCH) model,
 show that after the regulation change, the volatility in A-shares
 increases the volatility in B-shares, thus increasing the risk of the
 whole market, whereas the latter reduces the former, thus reducing the
 risk of the whole market. A further investigation of the determinants
 influencing these structural changes shows that the following factors can
 encourage structural changes that reduce overall market risk: government
 ownership, institutional ownership, firm size, B-share proportion, and
 market-to-book ratio. Conversely, the following factors can encourage
 structural changes that increase overall market risk: dual roles of chief
 executive officer and chairman and the joint effect of firm size and
 B-share proportion.
Journal: Emerging Markets Finance and Trade 
Pages: 140-157 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: bivariate GARCH, Chinese stock market, information transmission, volatility spillover, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=4J72X77H2287712Q 
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X-Bibl:
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:140-157




Template-Type: ReDIF-Article 1.0
Author-Name: A. Yasemin Yalta 
Author-X-Name-First: A. Yasemin 
Author-X-Name-Last: Yalta 
Title: Effect of Capital Flight on Investment: Evidence from Emerging Markets 
Abstract:
 Much of the discussion on international capital movements is directed
 toward studying the effects of foreign capital flows, whereas the
 implications of resident capital outflows (capital flight) from developing
 countries remain largely unanalyzed. Using a dynamic panel methodology for
 twenty-two emerging market economies between 1975 and 2000, this paper
 investigates the effect of capital flight on investment and how this
 effect changes with financial liberalization policies. The empirical
 findings indicate that capital flight reduces private investment
 dramatically but does not have any effect on public investment. However,
 no statistically significant impact of financial liberalization on the
 marginal effect of capital flight on investment is found.
Journal: Emerging Markets Finance and Trade 
Pages: 40-54 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: capital flight, emerging markets, financial liberalization, investment, resident capital outflows, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=945714Q105H41537 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 Capital Flow from Rich to Poor Countries?" >i>American Economic Review>/i>
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 and D. Dilts. 2003. "An Analysis of Capital Flight from East Asian
 Emerging Markets: Paradise Lost." >i>Journal of Asia Pacific Business>/i>
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Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:40-54




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Cuestas 
Author-X-Name-First: Juan Carlos 
Author-X-Name-Last: Cuestas 
Author-Name: Barry Harrison 
Author-X-Name-First: Barry 
Author-X-Name-Last: Harrison 
Title: Further Evidence on the Real Interest Rate Parity Hypothesis in Central and East European Countries: Unit Roots and Nonlinearities 
Abstract:
 This paper analyzes the empirical fulfillment of the real interest rate
 parity (RIRP) theory for a pool of central and east European countries. To
 do so, we apply the recently developed Ng and Perron (2001) unit root
 tests, which are corrected versions of existing unit root tests, and the
 Kapetanios et al. (2003) unit root test, which generalizes the alternative
 hypothesis to the globally stationary smooth transition autoregression
 model. We find evidence in favor of the empirical fulfillment of RIRP,
 particularly when taking into account the possibility of nonlinearities in
 the real interest rate differential.
Journal: Emerging Markets Finance and Trade 
Pages: 22-39 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: central and eastern Europe, nonlinearities, real interest rate parity, unit roots, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G260H1127ML6500H 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Arghyrou, M. G.; A.
 Gregoriou; and A. Kontonikas. 2009. "Do Real Interest Rates Converge?
 Evidence from the European Union." >i>Journal of International Financial
 Markets, Institutions and Money>/i> 19, no. 3: 447-460.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Baharumshah, A.
 Z.; C. T. Haw; and S. Fountas. 2005. "A Panel Study on Real Interest Rate
 Parity in East Asian Countries: Pre and Post-Liberalization Era."
 >i>Global Finance Journal>/i> 16, no. 1: 69-85.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Baharumshah, A. Z.; V. K.-S.
 Liew; and T.-H. Chan. 2007. "The Real Interest Rate Differential:
 International Evidence Based on Nonlinear Unit Root Tests." Munich
 Personal RePEc (Research Papers in Economics) Archive Paper 7300,
 University Library of Munich, Germany.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>4</BIBL>	   <BIBTEXT> Bahmani-Oskooee, M., and A. Gelan.
 2007. "Real and Nominal Effective Exchange Rates for African Countries."
 >i>Applied Economics>/i> 39, no. 8: 961-979.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Bahmani-Oskooee, M.; A. M.
 Kutan; and S. Zhou. 2007. "Testing PPP in the Non-Linear STAR Framework."
 >i>Economics Letters>/i> 94, no. 1: 104-110.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Bhargava, A. 1986. "On the
 Theory of Testing for Unit Roots in Observed Time Series." >i>Review of
 Economics Studies>/i> 53, no. 3: 369-384.</BIBTEXT>	  </REF>      <REF>
	<BIBL>7</BIBL>	      <BIBTEXT> Bierens, H. J. 2000. "Nonparametric
 Nonlinear Co-Trending Analysis, with an Application to Inflation and
 Interest in the U. S." >i>Journal of Business and Economic Statistics>/i>
 18, no. 3: 323-337.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>
	<BIBTEXT> Camarero, M.; J. L. Carrion-i-Silvestre; and C. R.
 Tamarit. 2007. "New Evidence of the Real Interest Rate Parity for OECD
 Countries Using Panel Unit Root Tests with Breaks." Working Paper,
 Colleccio d'Economia, Universitat de Barcelona, Facultat de Ciencies
 Economiques i Empresarials.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>9</BIBL>        <BIBTEXT> Cuestas, J. C., and B. Harrison. 2010.
 "Inflation Persistence and Nonlinearities in Central and Eastern European
 Countries." >i>Economics Letters>/i> 106, no. 2: 81-83.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Cumby, R., and
 F. Mishkin. 1987. "The International Linkage of Real Interest Rates: The
 European-U. S. Connection." >i>Journal of International Money and
 Finance>/i> 5, no. 1: 5-23.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>11</BIBL>	<BIBTEXT> Cumby, R., and M. Obstfeld. 1984.
 "International Interest Rate and Price Level Linkages Under Flexible
 Exchange Rates: A Review of Recent Evidence." In >i>Exchange Rate Theory
 and Practice>/i>, ed. J. Bilson and R. C. Marston, pp. 121-152. Chicago:
 University of Chicago Press.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>12</BIBL>	<BIBTEXT> Elliot, G.; T. J. Rothenberg; and J. H.
 Stock. 1996. "Efficient Tests for an Autoregressive Unit Root."
 >i>Econometrica>/i> 64, no. 4: 813-836.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>13</BIBL>	     <BIBTEXT> Ferreira, A. L., and M. A.
 LeÃƒÂ³n-Ledesma. 2007. "Does the Real Interest Parity Hypothesis Hold?
 Evidence for Developed and Emerging Markets." >i>Journal of International
 Money and Finance>/i> 26, no. 3: 364-382.</BIBTEXT>	  </REF>      <REF>
	<BIBL>14</BIBL>        <BIBTEXT> Fuji, E., and M. D. Chinn. 2000.
 "Fin de SiÃƒÂ¨cle Real Interest Parity." Working Paper no. 7870, National
 Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Hodrick, R. J., and E. C.
 Prescott. 1997. "Postwar Business Cycles: An Empirical Investigation."
 >i>Journal of Money, Credit and Banking>/i> 29, no. 1: 1-16.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>16</BIBL>	  <BIBTEXT> Holmes, M. J.
 2002. "Does Long-Run Real Interest Parity Hold Among EU Countries: Some
 New Panel Data Evidence." >i>Quarterly Review of Economics and Finance>/i>
 42, no. 4: 733-746.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>17</BIBL>	<BIBTEXT> Juselius, K. 1995. "Do Purchasing Power
 Parity and Uncovered Interest Rate Parity Hold in the Long Run? An Example
 of Likelihood Inference in a Multivariate Time Series Model." >i>Journal
 of Econometrics>/i> 69, no. 1: 211-240.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>18</BIBL>	     <BIBTEXT> Kapetanios, G.; Y. Shin; and A.
 Snell. 2003. "Testing for a Unit Root in the Nonlinear STAR Framework."
 >i>Journal of Econometrics>/i> 112, no. 2: 359-379.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Lee, J., and M. C.
 Strazicich. 2003. "Minimum LM Unit Root Test with Two Structural Breaks."
 >i>Review of Economics and Statistics>/i> 85, no. 4: 1082-1089.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Mark, N. C.,
 and Y.-K. Moh. 2005. "The Real Exchange Rate and Real Interest
 Differentials: The Role of Nonlinearities." >i>International Journal of
 Finance and Economics>/i> 10, no. 4: 323-335.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT> Mishkin, F. 1984. "Are Real
 Interest Rates Equal Across Countries? An Empirical Investigation of
 International Parity Conditions." >i>Journal of Finance>/i> 39, no. 5:
 1345-1357.</BIBTEXT>	   </REF>      <REF>	    <BIBL>22</BIBL>	  
 <BIBTEXT> Ng, S., and P. Perron. 2001. "Lag Length Selection and the
 Construction of Unit Root Tests with Good Size and Power."
 >i>Econometrica>/i> 69, no. 6: 1519-1554.</BIBTEXT>	  </REF>      <REF>
	<BIBL>23</BIBL>        <BIBTEXT> Phillips, P. C. B. 1987. "Time
 Series Regression with a Unit Root." >i>Econometrica>/i> 55, no. 2:
 311-340.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT> Phillips, P. C. B., and P. Perron. 1988. "Testing for a Unit
 Root in Time Series Regression." >i>Biometrica>/i> 75, no. 2:
 335-346.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> Phylaktis, K. 1999. "Capital Market Integration in the Pacific
 Basin Region: An Impulse Response Analysis." >i>Journal of International
 Money and Finance>/i> 18, no. 2: 267-287.</BIBTEXT>	  </REF>      <REF>
	<BIBL>26</BIBL>        <BIBTEXT> Taylor, M. P., and L. Sarno. 2004.
 "International Real Interest Rate Differentials, Purchasing Power Parity
 and the Behaviour of Real Exchange Rates: The Resolution of a Conundrum."
 >i>International Journal of Finance and Economics>/i> 9, no. 1:
 15-23.</BIBTEXT>      </REF>	   <REF>	<BIBL>27</BIBL>       
 <BIBTEXT> Wu, J. L., and S. L. Chen. 1998. "A Re-Examination of Real
 Interest Rate Parity." >i>Canadian Journal of Economics>/i> 31, no. 4:
 837-851.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:22-39




Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Chen Chang 
Author-X-Name-First: Shu-Chen 
Author-X-Name-Last: Chang 
Title: Effects of Asymmetric Adjustment Among Labor Productivity, Labor Demand, and Exchange Rate Using Threshold Cointegration Test 
Abstract:
 This paper investigates the asymmetric equilibrium relationship among
 labor productivity, labor demand, and the exchange rate in Taiwan's
 manufacturing industry using a threshold cointegration test that allows
 asymmetric adjustment. The findings show that there is a temporal delay in
 the reaction of labor demand to change in labor productivity, and vice
 versa. However, a temporal impact of exchange rate shock on labor demand
 and labor productivity is statistically unobvious. A trade-off between
 productivity growth and employment growth is not found.
Journal: Emerging Markets Finance and Trade 
Pages: 55-68 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: momentum threshold autoregressive process, threshold autoregressive process, threshold error correction, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H87057GN8601401H 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Balke, N., and T.
 Fomby. 1997. "Threshold Cointegration." >i>International Economic
 Review>/i> 38, no. 3: 627-645.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>2</BIBL>        <BIBTEXT> Beaudry, P., and F. Collard. 2002. "Why
 Has the Employment-Productivity Tradeoff Among Industrialized Countries
 Been So Strong?" Working Paper no. 8754, National Bureau of Economic
 Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>3</BIBL>        <BIBTEXT> Belke, A., and M. GÃƒÂ¶cke. 2001. "Exchange
 Rate Uncertainty and Play Non-Linearity in Aggregate Employment."
 >i>International Advances in Economic Research>/i> 7, no. 1:
 38-50.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT> Belke, A., and D. Gros. 2001. "Real Impacts of Intra-European
 Exchange Rate Variability: A Case for EMU?" >i>Open Economies Review>/i>
 12, no. 3: 231-264.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>
	<BIBTEXT> Belke, A., and D. Gros. 2002. "Designing EU-US Atlantic
 Monetary Relations: Exchange Rate Variability and Labour Markets."
 >i>World Economy>/i> 25, no. 6: 789-813.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>6</BIBL>	     <BIBTEXT> Belke, A., and R. Setzer. 2003.
 "Exchange Rate Variability and Labor Market Performance in the VisegrÃƒÂ¡d
 Countries." >i>Economics of Planning>/i> 36, no. 2: 153-175.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT> Belke, A., and
 R. Setzer. 2004. "Exchange Rate Volatility and Employment Growth:
 Empirical Evidence from the CEE Economies." >i>Economic and Social
 Review>/i> 34, no. 3: 267-292.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Blanchard, O. J., and L. F. Katz. 1997.
 "What We Know and Do Not Know About the Natural Rate of Unemployment."
 >i>Journal of Economic Perspectives>/i> 11, no. 1: 51-72.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Burgess, S. M.
 1992. "Nonlinear Dynamics in a Structural Model of Employment." >i>Journal
 of Applied Econometrics>/i> 7 (supplement): S101-S118.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Buscher, H. S.,
 and C. Mueller. 1999. "Exchange Rate Volatility Effect on the German
 Labour Market: A Survey of Recent Results and Extensions." IZA Discussion
 Papers no. 37, Bonn.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>11</BIBL>	<BIBTEXT> Campa, J. M., and L. S. Goldberg. 2001.
 "Employment Versus Wage Adjustment and the U. S. Dollar." >i>Review of
 Economics and Statistics>/i> 83, no. 3: 477-489.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>12</BIBL>	      <BIBTEXT> Caner, M., and B. E.
 Hansen. 2001. "Threshold Autoregression with a Unit Root."
 >i>Econometrica>/i> 69, no. 6: 1555-1596.</BIBTEXT>	  </REF>      <REF>
	<BIBL>13</BIBL>        <BIBTEXT> Chan, K. S. 1993. "Consistency and
 Limiting Distribution of the Least Squares Estimator." >i>Annals of
 Statistics>/i> 21, no. 1: 520-533.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT> Chang, Y., and J. H. Hong. 2006. "Do
 Technological Improvements in the Manufacturing Sector Raise or Lower
 Employment?" >i>American Economic Review>/i> 96, no. 1: 352-368.</BIBTEXT>
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 L. J.; M. Eichenbaum; and R. Vigfusson. 2003. "What Happens After a
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 <BIBL>16</BIBL>	<BIBTEXT> Christiano, L. J.; M. Eichenbaum; and R.
 Vigfusson. 2004. "The Response of Hours to a Technology Shock: Evidence
 Based on a Direct Measure of Technology." >i>Journal of the European
 Economic Association>/i> 2, nos. 2-3: 381-395.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Enders, W., and P. L.
 Siklos. 2001. "Cointegration and Threshold Adjustment." >i>Journal of
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 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Enders, W.; J.
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 Washington University, St. Louis, March 24.</BIBTEXT>	    </REF>     
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 Granger. 1987. "Cointegration and Error Correction Representation:
 Estimation and Testing." >i>Econometrica>/i> 55, no. 2:
 1096-1109.</BIBTEXT>	   </REF>      <REF>	    <BIBL>20</BIBL>	  
 <BIBTEXT> Francis, N., and V. A. Ramey. 2004. "The Source of Historical
 Economic Fluctuations: An Analysis Using Long-Run Restrictions." Working
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 Real Business Cycle Hypothesis Dead?" >i>Journal of Monetary Economics>/i>
 52, no. 8: 1379-1399.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>22</BIBL>	<BIBTEXT> Francis, N., and V. A. Ramey. 2005b.
 "Measures of Hours Per Capita and Their Implications of the
 Technology-Hours Debate." Working Paper no. 11694, National Bureau of
 Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>23</BIBL>	<BIBTEXT> GalÃƒÂ­, J., and P. Rabanal. 2004.
 "Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model
 Fit Postwar U. S. Data?" Working Paper no. 234, National Bureau of
 Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>24</BIBL>	<BIBTEXT> Goldberg, L., and J. Tracy. 2000.
 "Exchange Rates and Local Labor Markets, Trade and Wages." In >i>The
 Impact of International Trade on Wages>/i>, ed. Robert C. Feenstra, pp.
 269-308. Chicago: National Bureau of Economic Research and University of
 Chicago Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>25</BIBL>    
    <BIBTEXT> Goldberg, L.; J. Tracy; and S. Aaronson. 1999. "Exchange
 Rates and Employment Instability: Evidence from Matched CPS Data."
 >i>American Economic Review: Papers and Proceedings>/i> 89, no. 2:
 204-210.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT> Johansen, S. 1988. "Statistical Analysis of Cointegration
 Vectors." >i>Journal of Economic Dynamics and Control>/i> 12, no. 6:
 231-254.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT> Jung, A. 1996. "Is There a Causal Relationship Between Exchange
 Rate Volatility and Unemployment?" >i>Intereconomics>/i> 11, no. 12:
 281-282.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT> Kwiatkowski, D.; P. C. B. Phillips; P. Schmidt; and Y. Shin.
 1992. "Testing the Null Hypothesis of Stationary Against the Alternative
 of a Unit Root." >i>Journal of Econometrics>/i> 54, nos. 1-3:
 159-178.</BIBTEXT>	 </REF>      <REF>	  <BIBL>29</BIBL>	
 <BIBTEXT> MacKinnon, J. G. 1996. "Numerical Distribution Functions for
 Unit-Root and Cointegration Tests." >i>Journal of Applied Econometrics>/i>
 11, no. 6: 601-618.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>30</BIBL>	<BIBTEXT> Milas, C., and G. Legrenzi. 2006.
 "Nonlinear Real Exchange Rate Effects in the UK Labour Market." >i>Studies
 in Nonlinear Dynamics & Econometrics>/i> 10, no. 1: article 4.</BIBTEXT>  
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 1984. "Are Economic Time Series Asymmetric over the Business Cycle?"
 >i>Journal of Political Economy>/i> 92, no. 2: 307-328.</BIBTEXT>     
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 Economic Cooperation and Development (OECD). 2001. "The Cross-Market
 Effects of Product and Labour Market Policies." >i>OECD Economic
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  <BIBL>33</BIBL>	 <BIBTEXT> Organization for Economic Cooperation
 and Development (OECD). 2002. "Product Market Competition and Economic
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 11, Organization for Economic Cooperation and Development,
 Paris.</BIBTEXT>      </REF>	   <REF>	<BIBL>34</BIBL>       
 <BIBTEXT> Panagiotidis, T., and G. Pelloni. 2007. "Non-Linearity in the
 Canadian and U. S. Labour Markets: Univariate and Multivariate Evidence
 from a Battery of Tests." >i>Macroeconomic Dynamics>/i> 11, no. 5:
 613-637.</BIBTEXT>	 </REF>      <REF>	  <BIBL>35</BIBL>	
 <BIBTEXT> Rothman, P. 1991. "Further Evidence on the Asymmetric Behavior
 of Unemployment Rates over the Business Cycle." >i>Journal of
 Macroeconomics>/i> 13, no. 2: 291-298.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>36</BIBL>	    <BIBTEXT> Sichel, D. E. 1993. "Business Cycle
 Asymmetry: A Deeper Look." >i>Economic Inquiry>/i> 31, no. 2:
 224-236.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:55-68




Template-Type: ReDIF-Article 1.0
Author-Name: Hongbo Pan 
Author-X-Name-First: Hongbo 
Author-X-Name-Last: Pan 
Author-Name: Donghui Li 
Author-X-Name-First: Donghui 
Author-X-Name-Last: Li 
Author-Name: Xinping Xia 
Author-X-Name-First: Xinping 
Author-X-Name-Last: Xia 
Author-Name: Minggui Yu 
Author-X-Name-First: Minggui 
Author-X-Name-Last: Yu 
Title: Private Versus State Ownership and Spillover of Investor Protection Standards in Interprovince Mergers: Evidence from China's Emerging Market 
Abstract:
 This paper examines the spillover effects of investor protection standards
 for interprovince mergers in China's emerging markets. Using a sample of
 372 mergers, we find that if the provincial investor protection of the
 acquirer is better than that of the target, a privately owned acquirer
 will get significantly higher abnormal returns, whereas a local
 state-owned acquirer will not. Additional evidence indicates that in
 contrast to the crossborder acquirers or the private acquirers, the local
 state-owned acquirers in interprovince mergers come from provinces with
 worse fiscal conditions and prefer to acquire targets in provinces with
 better investor protection or fiscal conditions.
Journal: Emerging Markets Finance and Trade 
Pages: 86-105 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: interprovince mergers, investor protection, state-owned acquirers, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J4763081202M2154 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Acemoglu, D., and S.
 Johnson. 2005. "Unbundling Institutions." >i>Journal of Political
 Economy>/i> 113, no. 5: 949-995.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>2</BIBL>        <BIBTEXT> Ayyagari, M.; A. DemirgÃƒÂ¼ÃƒÂ§-Kunt; and V.
 Maksimovic. 2007. "Formal Versus Informal Finance: Evidence from China."
 Working paper, George Washington University.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Bris, A., and C. Cabolis.
 2008. "The Value of Investor Protection: Firm Evidence from Cross-Border
 Mergers." >i>Review of Financial Studies>/i> 21, no. 2: 605-648.</BIBTEXT>
      </REF>	  <REF>        <BIBL>4</BIBL>	     <BIBTEXT> Bris, A.; N.
 Brisley; and C. Cabolis. 2008. "Adopting Better Corporate Governance:
 Evidence from Cross-Border Mergers." >i>Journal of Corporate Finance>/i>
 14, no. 3: 224-240.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>
	<BIBTEXT> Brown, S. J., and J. B. Warner. 1985. "Using Daily Stock
 Returns: The Case of Event Studies." >i>Journal of Financial Economics>/i>
 14, no. 1: 3-31.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>   
     <BIBTEXT> Cheung, Y. L.; L. Jing; P. R. Rau; and A. Stouraitis. 2006.
 "How Does the Grabbing Hand Grab? Tunneling Assets from Chinese Listed
 Companies to the State." Working paper, City University of Hong
 Kong.</BIBTEXT>      </REF>	  <REF>        <BIBL>7</BIBL>	    
 <BIBTEXT> Cull, R., and L. C. Xu. 2005. "Institutions, Ownership, and
 Finance: The Determinants of Profit Reinvestment Among Chinese Firms."
 >i>Journal of Financial Economics>/i> 77, no. 1: 117-146.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Dahya, J.; O.
 Dimitrov; and J. J. McConnell. 2008. "Dominant Shareholders, Corporate
 Boards, and Corporate Value: A Cross-Country Analysis." >i>Journal of
 Financial Economics>/i> 87, no. 1: 73-100.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Fan, G., and X. L. Wang.
 2004. >i>NERI Index of Marketization of China's Provinces.>/i> Beijing:
 Economics Science Press (in Chinese).</BIBTEXT>      </REF>	  <REF>    
    <BIBL>10</BIBL>	   <BIBTEXT> Fan, J. P. H.; T. J. Wong; and T.
 Zhang. 2007a. "Politically-Connected CEOs, Corporate Governance and
 Post-IPO Performance of China's Newly Partially Privatized Firms."
 >i>Journal of Financial Economics>/i> 84, no. 2: 330-357.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Fan, J. P. H.;
 T. J. Wong; and T. Zhang. 2007b. "Organizational Structure as a
 Decentralization Device: Evidence from Corporate Pyramids." Working paper,
 Chinese University of Hong Kong.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>12</BIBL>	<BIBTEXT> Guiso, L.; P. Sapienza; and L. Zingales.
 2006. "Does Culture Affect Economic Outcomes?" >i>Journal of Economic
 Perspectives>/i> 20, no. 2: 23-48.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>13</BIBL>	<BIBTEXT> Hellman, J. S.; G. Jones; and D.
 Kaufmann. 2003. "Seize the State, Seize the Day: State Capture,
 Corruption, and Influence in Transition." >i>Journal of Comparative
 Economics>/i> 31, no. 4: 751-773.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>14</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A.
 Shleifer; and R. Vishny. 1997. "Legal Determinants of External Finance."
 >i>Journal of Finance>/i> 52, no. 3: 1131-1150.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> La Porta, R.; F.
 Lopez-de-Silanes; A. Shleifer; and R. Vishny. 1998. "Law and Finance."
 >i>Journal of Political Economy>/i> 101, no. 6: 678-709.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> La Porta, R.; F.
 Lopez-de-Silanes; A. Shleifer; and R. Vishny. 2000. "Investor Protection
 and Corporate Governance." >i>Journal of Financial Economics>/i> 58, nos.
 1-2: 3-27.</BIBTEXT>	   </REF>      <REF>	    <BIBL>17</BIBL>	  
 <BIBTEXT> Masulis, R. W.; C. Wang; and F. Xie. 2007. "Corporate Governance
 and Acquirer Returns." >i>Journal of Finance>/i> 62, no. 4:
 1851-1889.</BIBTEXT>	   </REF>      <REF>	    <BIBL>18</BIBL>	  
 <BIBTEXT> Martynova, M., and L. Renneboog. 2008. "Spillover of Corporate
 Governance Standards in Cross-Border Mergers and Acquisitions." >i>Journal
 of Corporate Finance>/i> 14, no. 3: 200-223.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Rossi, S., and P. Volpin.
 2004. "Cross-Country Determinants of Mergers and Acquisitions." >i>Journal
 of Financial Economics>/i> 74, no. 2: 277-304.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Shleifer, A., and R. W.
 Vishny. 1997. "A Survey of Corporate Governance." >i>Journal of
 Finance>/i> 52, no. 2: 737-783.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>21</BIBL>	<BIBTEXT> Shleifer, A., and R. W. Vishny. 1998.
 >i>The Grabbing Hand: Government Pathologies and Their Cures.>/i>
 Cambridge: Harvard University Press.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>22</BIBL>	  <BIBTEXT> Wang, Q.; T. J. Wong; and L. Xia. 2008.
 "State Ownership, Institutional Environment and Auditor Choice: Evidence
 from China." >i>Journal of Accounting and Economics>/i> 46, no. 1:
 112-134.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT> Young, M. N.; M. W. Peng; D. Ahlstrom; G. D. Bruton; and Y.
 Jiang. 2008. "Corporate Governance in Emerging Economies: A Review of the
 Principal-Principal Perspective." >i>Journal of Management Studies>/i> 45,
 no. 1: 196-220.</BIBTEXT>	</REF>	    <REF>	 <BIBL>24</BIBL>   
     <BIBTEXT> Zhang, X. 2006. "Fiscal Decentralization and Political
 Centralization in China: Implications for Growth and Inequality."
 >i>Journal of Comparative Economics>/i> 34, no. 4: 713-726.</BIBTEXT>	   
 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:86-105




Template-Type: ReDIF-Article 1.0
Author-Name: Adnan Kasman 
Author-X-Name-First: Adnan 
Author-X-Name-Last: Kasman 
Title: Consolidation and Competition in the Banking Industries of the EU Member and Candidate Countries 
Abstract:
 This paper investigates competitive conditions in the banking markets of
 all EU member and candidate countries over the period 1995-2007. The
 Panzar and Rosse (1987) model is implemented on bank-level data. In
 particular, the unscaled revenue equation is employed to assess market
 structure. Country-specific empirical results suggest a wide variation in
 the competitive conditions of the banking systems in the sampled
 countries. Nineteen banking systems are characterized as monopolistically
 competitive, nine as monopolies or perfectly colluding oligopolies, and
 two as perfectly competitive over the sample period. This study also
 investigates whether competition conditions changed over the sample
 period, using 2001 as an endogenously determined break year. The empirical
 evidence reveals that banking systems became less competitive after that
 time.
Journal: Emerging Markets Finance and Trade 
Pages: 121-139 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: competition, European banking, market structure, Panzar-Rosse model, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K7860G14124154H1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bain, J. S. 1951.
 "Relation of Profit Rate to Industry Concentration." >i>Quarterly Journal
 of Economics>/i> 65, no. 3: 293-324.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>2</BIBL>	 <BIBTEXT> Bikker, J. A., and J. M. Groeneveld.
 2000. "Competition and Concentration in the EU Banking Industry."
 >i>Kredit und Kapital>/i> 33, no. 1: 62-98.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Bikker, J. A., and K. Haaf.
 2002. "Competition, Concentration and Their Relationship: An Empirical
 Analysis of the Banking Industry." >i>Journal of Banking and Finance>/i>
 26, no. 11: 2191-2214.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>4</BIBL>        <BIBTEXT> Bikker, J. A., and L. Spierdijk. 2008.
 "How Banking Competition Changed over Time." Working Paper no. 167, De
 Nederlandsche Bank.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>
	<BIBTEXT> Bikker, J. A.; S. Shaffer; and L. Spierdijk. 2009.
 "Assessing Competition with the Panzar-Rosse Model: The Role of Scale,
 Costs and Equilibrium." Discussion Paper Series, no. 09-27, Tjalling C.
 Koopmans Research Institute, Utrecht School of Economics.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Bonin, J. P.
 2004. "Banking in the Balkans: The Structure of Banking Sectors in
 Southeast Europe." >i>Economic Systems>/i> 28, no. 2: 141-153.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>7</BIBL>	   <BIBTEXT> Bresnahan, T.
 F. 1982. "The Oligopoly Solution Concept Is Identified." >i>Economic
 Letters>/i> 10, no. 1: 87-92.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Carbo, S.; D. Humphrey; J. Maudos; and P.
 Molyneux. 2009. "Cross-Country Comparisons of Competition and Pricing
 Power in European Banking." >i>Journal of International Money and
 Finance>/i> 28, no. 1: 115-134.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>9</BIBL>        <BIBTEXT> Casu, B., and C. Girardone. 2006. "Bank
 Competition, Concentration and Efficiency in the Single European Market."
 >i>Manchester School>/i> 70, no. 4: 441-468.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Claessens, S., and L.
 Laeven. 2004. "What Drives Bank Competition? Some International Evidence."
 >i>Journal of Money, Credit, and Banking>/i> 36, no. 3: 563-584.</BIBTEXT>
      </REF>	  <REF>        <BIBL>11</BIBL>	      <BIBTEXT> Claeys, S.,
 and R. V. Vennet. 2008. "Determinants of Bank Interest Margins in Central
 and Eastern Europe: A Comparison with the West." >i>Economic Systems>/i>
 32, no. 2: 197-216.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>12</BIBL>	<BIBTEXT> Coccorese, P. 2004. "Banking Competition
 and Macroeconomic Conditions: A Disaggregate Analysis." >i>International
 Financial Markets, Institutions and Money>/i> 14, no. 3:
 203-219.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> De Bandt, O., and E. P. Davis. 2000. "Competition,
 Contestability and Market Structure in European Banking Sectors on the Eve
 of EMU." >i>Journal of Banking and Finance>/i> 24, no. 6:
 1045-1066.</BIBTEXT>	   </REF>      <REF>	    <BIBL>14</BIBL>	  
 <BIBTEXT> Delis, M. 2010. "Competitive Conditions in the Central and
 Eastern European Banking Systems." >i>Omega International Journal of
 Management Science>/i> 38, no. 5: 268-274.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> European Central Bank. 2005.
 >i>Report on EU Banking Structure.>/i> Frankfurt, November.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Gelos, R. G.,
 and J. Roldos. 2004. "Consolidation and Market Structure in Emerging
 Market Banking Systems." >i>Emerging Markets Review>/i> 5, no. 1:
 39-59.</BIBTEXT>      </REF>	   <REF>	<BIBL>17</BIBL>       
 <BIBTEXT> Goddard, J., and J. O. S. Wilson. 2009. "Competition in Banking:
 A Disequilibrium Approach." >i>Journal of Banking and Finance>/i> 33, no.
 12: 2282-2292.</BIBTEXT>      </REF>	   <REF>	<BIBL>18</BIBL>    
    <BIBTEXT> Kasman, A. 2005. "Efficiency and Scale Economies in
 Transition Economies: Evidence from Poland and the Czech Republic."
 >i>Emerging Markets Finance and Trade>/i> 41, no. 2: 60-81.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Lau, L. 1982.
 "On Identifying the Degree of Competitiveness from Industry Price and
 Output Data." >i>Economic Letters>/i> 10, nos. 1-2: 93-99.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT> Mamatzakis, E.;
 C. Staikouras; and N. Koutsomanoli-Fillipaki. 2005. "Competition and
 Concentration in the Banking Sector of the South Eastern European Region."
 >i>Emerging Markets Review>/i> 6, no. 2: 192-209.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>21</BIBL>        <BIBTEXT> Mason, E. S. 1939. "Price
 and Production Policies of Large-Scale Enterprise." >i>American Economic
 Review>/i> 29, no. 1: 61-74.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>22</BIBL>	<BIBTEXT> Molyneux, P.; J. Thornton; and D. M.
 Lloyd-Williams. 1996. "Competition and Market Contest-ability in the
 Japanese Commercial Banking Market." >i>Journal of Economics and
 Business>/i> 48, no. 1: 33-45.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>23</BIBL>	<BIBTEXT> Panzar, J. C., and J. N. Rosse. 1987.
 "Testing for Monopoly Equilibrium." >i>Journal of Industrial Economics>/i>
 35, no. 4: 443-456.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>24</BIBL>	<BIBTEXT> Rosse, J. N., and J. C. Panzar. 1977.
 "Chamberlin vs. Robinson: An Empirical Test for Monopoly Rents." Studies
 in Industry Economics, Research Paper no. 77, Stanford University,
 Stanford, CA.</BIBTEXT>      </REF>	  <REF>        <BIBL>25</BIBL>	   
   <BIBTEXT> Shaffer, S. 1982. "A Non-Structural Test for Competition in
 Financial Markets." In >i>Proceedings of a Conference on Bank Structure
 and Competition>/i>, pp. 225-243. Chicago: Federal Reserve Bank of
 Chicago.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT> Shaffer, S. 2002. "Competitive Bank Pricing and Adverse
 Selection, with Implications for Testing the SCP Hypothesis." >i>Quarterly
 Review of Economics and Finance>/i> 42, no. 3: 633-647.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>27</BIBL>	 <BIBTEXT> Shaffer, S.
 2004. "Patterns of Competition in Banking." >i>Journal of Economics and
 Business>/i> 56, no. 4: 287-313.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>28</BIBL>	<BIBTEXT> Shaffer, S., and J. DiSalvo. 1994.
 "Conduct in a Banking Duopoly." >i>Journal of Banking and Finance>/i> 18,
 no. 6: 1063-1082.</BIBTEXT>	  </REF>      <REF>	   <BIBL>29</BIBL> 
       <BIBTEXT> Staikouras, C., and N. Koutsomanoli-Fillipaki. 2006.
 "Competition and Concentration in the New European Banking Landscape."
 >i>European Financial Management>/i> 12, no. 3: 443-482.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>30</BIBL>	 <BIBTEXT> White, H. 1980.
 "A Heteroscedasticity-Consistent Covariance Matrix Estimator and a Direct
 Test for Heteroscedasticity." >i>Econometrica>/i> 48, no. 1:
 817-838.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:121-139




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 6 
Volume: 46 
Year: 2010 
Month: 11 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=P6W06K0M178330T5 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Huseyin Bilgin
Author-X-Name-First: Mehmet Huseyin
Author-X-Name-Last: Bilgin
Author-Name: Hakan Danis
Author-X-Name-First: Hakan
Author-X-Name-Last: Danis
Title: Guest Editors' Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3-4
Issue: 0
Volume: 47 
Year: 2011 
Month: 11
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=126786J8526J4LT5
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S5:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Chunyang Zhou 
Author-X-Name-First: Chunyang 
Author-X-Name-Last: Zhou 
Author-Name: Chongfeng Wu 
Author-X-Name-First: Chongfeng 
Author-X-Name-Last: Wu 
Author-Name: Li Yang 
Author-X-Name-First: Li 
Author-X-Name-Last: Yang 
Title: The Informational Role of Stock and Warrant Trades: Empirical Evidence from China 
Abstract:
 This paper analyzes intraday interdependence of returns and trades between
 Chinese equity and warrants markets based on a vector autoregression
 framework proposed by Chan et al. (2002). We find that both stock and
 warrant trades contain useful information for revealing quotes in the
 stock and warrants markets using 60- and 100-second data frequencies.
 However, when the data frequency is reduced from 100 seconds to 5 minutes,
 we find that stock volume has a negative impact on contemporaneous stock
 returns, which contradicts the informational effect of stock-trading
 activities.
Journal: Emerging Markets Finance and Trade 
Pages: 78-93 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: Chinese market, informed trading, warrant volume, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=204L8J4214072081 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahn, H. J.; J. Kang;
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 in the Stock and Stock Option Markets." >i>Journal of Finance>/i> 45, no.
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 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:78-93




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourão
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourão
Title: Has Trade Openness Already Voted? A Panel Data Study
Abstract:
 This paper investigates political budget cycles in the course of increasing trade openness. The data set covers up to sixty countries between 1960 and 2006. The results suggest that trade openness influences political budget cycles, so the trade-openness pattern of an economy must be considered; trade openness promotes greater exposure of young democracies to globalization forces so that international organizations such as the International Monetary Fund or the World Bank can more efficiently monitor and influence young democracies rather than old democracies; and established regimes should focus internally to flatten their budget cycles through control of corruption, fiscal illusions, and politicians' opportunism.
Journal: Emerging Markets Finance and Trade
Pages: 53-71
Issue: 0
Volume: 47 
Year: 2011 
Month: 11
Keywords: globalization, economic policy, political budget cycle
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=32P0TUV1657113G4
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alesina, A., and R. Perotti. 1997. "The Welfare State and Competitiveness." <i>American Economic Review</i> 87: 921-939.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Alt, J., and D. Lassen. 2006. "Fiscal Transparency, Political Parties, and Debt in OECD Countries." <i>European Economic Review</i> 50, no. 6: 1403-1439.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Arellano, M. 2003. <i>Panel Data Econometrics.</i> Oxford: Oxford University Press.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>     <BIBTEXT> Benarroch, M., and M. Pandey. 2008. "Trade Openness and Government Size." <i>Economic Letters</i> 101, no. 3: 157-159.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bhargava, A.; L. Franzini; and W. Narendranathan. 1982. "Serial Correlation and the Fixed Effects Models." <i>Review of Economic Studies</i> 49: 533-549.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>	 <BIBTEXT> Bird, R. 1971. "Wagner's Law of Expanding State Activity." <i>Public Finance</i> 26: 1-26.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Brender, A., and A. Drazen. 2005. "Political Budget Cycles in New Versus Established Democracies." <i>Journal of Monetary Economics</i> 52, no. 7: 1271-1295.</BIBTEXT> </REF>      <REF>   <BIBL>8</BIBL>	<BIBTEXT> Brug, W.; C. Eijk; and M. Franklin. 2007. <i>The Economy and the Vote: Economic Conditions and Elections in Fifteen Countries.</i> Cambridge: Cambridge University Press.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Clark, W. R. 2003. <i>Capitalism, Not Globalism: Capital Mobility, Central Bank Independence, and the Political Control of the Economy.</i> Ann Arbor: University of Michigan Press.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Dollar, D., and A. Kray. 2003. "Institutions, Trade, and Growth: Revisiting the Evidence." World Bank Policy Research Working Paper no. 3004.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Frankel, J. 2005. "Contractionary Currency Crashes in Developing Countries." <i>IMF Staff Papers</i> 52, no. 2: 149-192.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Garrett, G. 1998. <i>Partisan Politics in the Global Economy.</i> Cambridge: Cambridge University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Hamilton, J. 1994. <i>Time Series Analysis.</i> Princeton: Princeton University Press.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> International Monetary Fund (IMF). 2006. <i>International Financial Statistics.</i></BIBTEXT>   </REF>      <REF>	  <BIBL>15</BIBL>   <BIBTEXT> Krieckaus, J. 2005. "A Cross-National Comparison of Political Business Cycles: Are They More Prevalent in Developing Countries than Developed Countries?" Paper presented at the Annual Meeting of the American Political Science Association, Washington, DC, August 31-September 9.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL> <BIBTEXT> Mourão, P. 2007. "Has Trade Openness Increased All Portuguese Public Expenditures? A Detailed Time-Series Study." <i>Financial Theory and Practice</i> 31, no. 3: 225-247.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Nordhaus, W. 1975. "The Political Business Cycle." <i>Review of Economic Studies</i> 42: 169-190.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	   <BIBTEXT> Persson, T., and G. Tabellini. 2000. <i>Political Economics: Explaining Economic Policy.</i> Cambridge: MIT Press.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Persson, T., and G. Tabellini. 2002. "Do Electoral Cycles Differ Across Political Systems?" Working Paper no. 232, Innocenzo Gasparini Institute for Economic Research (IGIER), Bocconi University.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	  <BIBTEXT> Potrafke, N. 2007. "Social Expenditures as a Political Cue Ball? OECD Countries Under Examination." Discussion Papers of DIW Berlin no. 676, German Institute for Economic Research.</BIBTEXT>	  </REF>      <REF>	  <BIBL>21</BIBL>	<BIBTEXT> Rodrik, D. 1997. "Has Globalization Gone Too Far?" Institute for International Economics, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Rogoff, K. 1990. "Equilibrium Political Budget Cycles." <i>American Economic Review</i> 80: 21-36.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Rogoff, K., and A. Sibert. 1988. "Elections and Macroeconomic Policy Cycles." <i>Review of Economic Studies</i> 55: 1-16.</BIBTEXT>	</REF>	<REF>	   <BIBL>24</BIBL> <BIBTEXT> Shi, M., and J. Svensson. 2006. "Political Budget Cycles: Do They Differ Across Countries and Why?" <i>Journal of Public Economics</i> 90: 1367-1389.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Tanzi, V. 2006. "Making Policy Under Efficiency Pressures: Globalization, Public Spending, and Social Welfare." In <i>The New Public Finance</i>, ed. I. Kaul and P. Conceição, 109-130. Oxford: Oxford University Press.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Wagner, A. 1883. "Three Extracts on Public Finance." In <i>Classics in the Theory of Public Finance</i>, ed. R. Musgrave and A. Peacock, 1-15. London: Macmillan, 1958.</BIBTEXT> </REF>      <REF>   <BIBL>27</BIBL>	<BIBTEXT> Wang, E., and E. Alvi. 2011. "Relative Efficiency of Government Spending and Its Determinants: Evidence from East Asian Countries." <i>Eurasian Economic Review</i> 1, no. 1: 3-28.</BIBTEXT>	</REF>	 <REF>	   <BIBL>28</BIBL>	<BIBTEXT> Wibbels, E., and J. Rodden. 2007. "Fiscal Decentralization and the Business Cycle: An Empirical Study of Eight Federations." Paper presented at the conference "New Perspectives on Fiscal Federalism: Intergovernmental Relations, Competition and Accountability," Social Science Research Center, Berlin, October 18-20.</BIBTEXT>      </REF>	  <REF>     <BIBL>29</BIBL>	<BIBTEXT> Wooldridge, J. 2002. <i>Econometric Analysis of Cross Section and Panel Data.</i> Cambridge: MIT Press.</BIBTEXT>   </REF>     <REF>	 <BIBL>30</BIBL>   <BIBTEXT> World Bank. 2006. <i>World Development Indicators.</i> Washington, DC.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S5:p:53-71




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Danis
Author-X-Name-First: Hakan
Author-X-Name-Last: Danis
Author-Name: Mehmet Huseyin Bilgin
Author-X-Name-First: Mehmet Huseyin
Author-X-Name-Last: Bilgin
Title: Guest Editors' Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3-4
Issue: 0
Volume: 47 
Year: 2011 
Month: 9
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=4583282P9V2246M3
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S4:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Pinar Falcioglu
Author-X-Name-First: Pinar
Author-X-Name-Last: Falcioglu
Title: Location and Determinants of Productivity: The Case of the Manufacturing Industry in Turkey
Abstract:
 Discussions in this paper are based on arguments from the geography, economic, and management literatures suggesting that exploring the spatial reasons for productivity in Turkey became significantly important after Turkey became a candidate country. The aim of this paper is to complement the findings of the studies on productivity differences in Turkey's manufacturing industry by exploring the spatial determinants of productivity at the regional level. The discussion is based on an econometric analysis for the years between 1980 and 2000. The results suggest that related variety, proximity to core areas, high wages, and capital intensity contribute to regional productivity.
Journal: Emerging Markets Finance and Trade
Pages: 86-96
Issue: 0
Volume: 47 
Year: 2011 
Month: 11
Keywords: agglomeration economies, regional productivity, regional productivity, Turkey
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=472186035746HT73
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abegaz, B., and A. K. Basu. 2011. "The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies." <i>Emerging Markets Finance & Trade</i> 47, no. 1 (January-February): 5-27.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Bayar, G. 2002. "Effects of Foreign Trade Liberalization on the Productivity of Industrial Sectors in Turkey." <i>Emerging Markets Finance & Trade</i> 38, no. 5 (September-October): 46-71.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Boschma, R., and S. Iammarino. 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy." <i>Economic Geography</i> 85, no. 3: 289-311.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>     <BIBTEXT> Delgado, M.; M. E. Porter; and S. Stern. 2010. "Clusters, Convergence, and Economic Performance." U. S. Census Bureau Center for Economic Studies Paper no. CES-WP-10-34 (available at <a target="_blank" href='http://ssrn.com/abstract=1695011/'>http://ssrn.com/abstract=1695011/</a></BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Eraydin, A. 2002. <i>Yeni sanayi odaklari: Yerel kalkinmanin yeniden kavramlstirilmasi</i> [New Industrial Districts: The Reconceptualiation of Local Economic Development]. Ankara: METU, Faculty of Architectural Press.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>	 <BIBTEXT> Falcioglu, P. 2008. "Spatial Determinants of Regional Productivity in Turkish Manufacturing Industry: An Analysis for the Regions of Turkey." Paper presented at the Regional Studies Association Annual International Conference, Prague, May 27-29.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Falcioglu, P., and S. Akgüngör. 2008. "Regional Specialization and Industrial Concentration Patterns in the Turkish Manufacturing Industry: An Assessment for the 1980-2000 Period." <i>European Planning Studies</i> 16, no. 2: 303-323.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Frenken, K.; F. Van Oort; and T. Verburg. 2007. "Related Variety, Unrelated Variety and Regional Economic Growth." <i>Regional Studies</i> 41, no. 5: 685-697</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Fujita, M., and J. F. Thisse. 2002. <i>Economics of Agglomeration.</i> Cambridge: Cambridge University Press.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Fujita, M.; P. Krugman; and A. J. Venables. 1999. <i>The Spatial Economy.</i> Cambridge: MIT Press.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Gezici, F., and G. J. D. Hewings. 2004. "Regional Convergence and the Economic Performance of Peripheral Areas in Turkey." <i>Review of Urban and Regional Development Studies</i> 16, no. 2: 113-132.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Gezici, F., and G. J. D. Hewings. 2007. "Spatial Analysis of Regional Inequalities in Turkey." <i>European Planning Studies</i> 15, no. 3: 383-403.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Glaeser, E. L., and D. C. Maré. 2001. "Cities and Skills." <i>Journal of Labor Economics</i> 19, no. 2: 316-342.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Head, K., and T. Mayer. 2004. "The Empirics of Agglomeration and Trade." In <i>Handbook of Regional and Urban Economics</i>, vol. 4, ed. J. V. Henderson and J. F. Thisse, 2609-2669. Amsterdam: Elsevier.</BIBTEXT>   </REF>      <REF>	  <BIBL>15</BIBL>  <BIBTEXT> Glaeser, E. L.; H. D. Kallal; J. A. Scheinkman; and A. Shleifer. 1992. "Growth in Cities." <i>Journal of Political Economy</i> 100, no. 6: 1126-1152.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL> <BIBTEXT> Henderson, J. V. 1974. "The Sizes and Types of Cities." <i>American Economic Review</i> 64: 640-656.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Henderson, V.; A. Kuncoro; and M. Turner. 1995. "Industrial Development in Cities." <i>Journal of Political Economy</i> 103, no. 5: 1067-1090.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	   <BIBTEXT> Ismihan, M., and K. Metin-Ozcan. 2009. "Productivity and Growth in an Unstable Emerging Market Economy: The Case of Turkey, 1960-2004." <i>Emerging Markets Finance & Trade</i> 45, no. 5 (September-October): 4-18.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Krugman, P. 1991. <i>Geography and Trade.</i> Cambridge: MIT Press.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	  <BIBTEXT> Önder, A.Ö.; E. Deliktas; and A. Lenger. 2003. "Efficiency in the Manufacturing Industry of Selected Provinces in Turkey." <i>Emerging Markets Finance & Trade</i> 39, no. 2 (March-April): 98-113.</BIBTEXT>	</REF>      <REF>	  <BIBL>21</BIBL>	<BIBTEXT> Öz, Ö. 2002. "Assessing Porter's Framework for National Advantage: The Case of Turkey." <i>Journal of Business Research</i> 55, no. 6: 509-515.</BIBTEXT>	 </REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Porter, M. E. 1990. <i>The Competitive Advantage of Nations.</i> New York: Free Press.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Porter, M. E. 2000. "Locations, Clusters and Company Strategy." In <i>The Oxford Handbook of Economic Geography</i>, ed. G. L. Clark, M. P. Feldman, and M. S. Gertler, 253-274. Oxford: Oxford University Press.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Porter, M. E. 2003. "The Economic Performance of Regions." <i>Regional Studies</i> 37, nos. 6-7: 549-578.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Romer, P. M. 1987. "Growth Based on Increasing Returns Due to Specialization." <i>American Economic Review</i> 77, no. 2: 56-62.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Sarica, Y. 2010. <i>Wage Determination Under Collective Bargaining in Turkey.</i> Berlin: VDM Verlag Dr. Müller.</BIBTEXT> </REF>      <REF>   <BIBL>27</BIBL>	<BIBTEXT> Temel, T.; A. Tansel; and P. Albersen. 1999. "Convergence and Spatial Patterns in Labor Productivity: Nonparametric Estimations for Turkey." <i>Journal of Regional Analysis and Policy</i> 29, no. 1: 3-19.</BIBTEXT>	</REF>	 <REF>	   <BIBL>28</BIBL>	<BIBTEXT> Temel, T.; A. Tansel; and N. Gungör. 2005. "Convergence of Sectoral Productivity in Turkish Provinces: Markov Chains Model." <i>International Journal of Applied Econometrics and Quantitative Studies</i> 2, no: 2: 65-84.</BIBTEXT>      </REF>	  <REF>     <BIBL>29</BIBL>	<BIBTEXT> Tosun, M. S., and S. Yilmaz. 2010. "Decentralization, Economic Development, and Growth in Turkish Provinces." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 71-91.</BIBTEXT>   </REF>     <REF>	 <BIBL>30</BIBL>   <BIBTEXT> TUSIAD/DPT (Turkish Industry and Business Association/State Planning Organization). 2005. <i>Türkiye'de bölgesel gelisme politikalari Sektör, bölge yiginlsmalari</i> [Regional Development Policies in Turkey: Industry and Region Agglomerations]. Tüsiad Growth Strategies Series no. 4, Tüsiad-T/2002-09/408, Istanbul.</BIBTEXT>	 </REF>    <REF>	    <BIBL>31</BIBL>	  <BIBTEXT> Venables, A. J. 1996. "Equilibrium Locations of Vertically Linked Industries." <i>International Economic Review</i> 37, no. 2: 341-360.</BIBTEXT>	  </REF>      <REF>	  <BIBL>32</BIBL>	<BIBTEXT> Wheaton, W. C., and M. J. Lewis. 2002. "Urban Wages and Labor Market Agglomeration." <i>Journal of Urban Economics</i> 51, no. 3: 242-262.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S5:p:86-96




Template-Type: ReDIF-Article 1.0
Author-Name: Derya GÃƒÂ¼ltekin-KarakaÃ…ÂŸ 
Author-X-Name-First: Derya 
Author-X-Name-Last: GÃƒÂ¼ltekin-KarakaÃ…ÂŸ 
Author-Name: Mehtap HisarcÃ„Â±klÃ„Â±lar 
Author-X-Name-First: Mehtap 
Author-X-Name-Last: HisarcÃ„Â±klÃ„Â±lar 
Author-Name: HÃƒÂ¼seyin ÃƒÂ–ztÃƒÂ¼rk 
Author-X-Name-First: HÃƒÂ¼seyin 
Author-X-Name-Last: ÃƒÂ–ztÃƒÂ¼rk 
Title: Sovereign Risk Ratings: Biased Toward Developed Countries? 
Abstract:
 Sovereign credit ratings are widely used measurements for "country risk"
 in international capital markets. However, they have been exposed to
 increasing criticism in the aftermath of the recent global financial
 crises. Many international authorities proposed new frameworks for the
 regulation and supervision of the credit rating sector, in which many
 countries have taken various steps in this respect. Yet the reliability of
 sovereign credit ratings has not been criticized in the literature. Using
 random effects ordered probit modeling, this study explores the
 reliability of credit ratings. Separate analyses of developed and
 developing countries suggest that the consistency of credit ratings
 differs by favoring the developed country group.
Journal: Emerging Markets Finance and Trade 
Pages: 69-87 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: credit-rating agencies, ordered logit, ordered probit, political risk, risk premium, sovereign rating, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=708876P388209285 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> AkÃ„Â±ncÃ„Â±lar, M. 2008.
 "Kredi derecelendirme kuruluÃ…ÂŸlarÃ„Â±" [Credit Rating Agencies]. In
 >i>Ekonomik kurumlar ve kavramlar sÃƒÂ¶zlÃƒÂ¼Ã„ÂŸÃƒÂ¼>/i> [Dictionary of Economic
 Institutions and Concepts], ed. F. BaÃ…ÂŸkaya and A. ÃƒÂ–rdek, pp. 723-730.
 Ankara: Maki.</BIBTEXT>      </REF>	  <REF>        <BIBL>2</BIBL>	   
  <BIBTEXT> Alexe, S.; P. Hammer; A. Kogan; and M. Lejeune. 2003. "A
 Non-Recursive Regression Model for Country Risk Rating." Rutcor research
 report RRR 9-2003, Center for Operations Research, Rutgers University,
 Piscataway.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>	  
 <BIBTEXT> Bennell, J.A.; D. Crabbe; S. Thomas; and O. Gwilym. 2006.
 "Modelling Sovereign Credit Ratings: Neural Networks Versus Ordered
 Probit." >i>Expert Systems with Applications>/i> 30: 415-425.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>4</BIBL>	  <BIBTEXT>
 Bissoondoyal-Bheenick, E.; R. Brooks; and A.Y. Yip. 2005. "Determinants of
 Sovereign Ratings: A Comparison of Case-Based Reasoning and Ordered Probit
 Approaches." Working paper 9/05, Department of Econometrics and Business
 Statistics, Monash University.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>5</BIBL>        <BIBTEXT> Brewer, T.L., and P. Rivoli. 1990.
 "Politics and Perceived Country Creditworthiness in International
 Banking." >i>Journal of Money, Credit and Banking>/i> 22 (August):
 357-369.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Butler, J.S., and R. Moffit. 1982. "A Computationally Efficient
 Quadrature Procedure for the One-Factor Multinomial Probit Model."
 >i>Econometrica>/i> 50, no. 3: 761-764.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>7</BIBL>	    <BIBTEXT> Frechette, G.R. 2001. "Random-Effects
 Ordered Probit." >i>Stata Technical Bulletin>/i> 10, no. 59 (available at
 >a target="_blank"
 href='http://stata-press.com/journals/stbcontents/stb59.pdf'>http://stata-
 press.com/journals/stbcontents/stb59.pdf>/a></BIBTEXT>      </REF>	
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Glick, P., and Sahn, D.E.
 2000. "Schooling of Boys and Girls in a West African Country: The Effects
 of Parental Education, Income and Household Structure." >i>Economics of
 Education Review>/i> 19, no. 1: 63-87.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>9</BIBL>	   <BIBTEXT> Greene, W.H. 2002. >i>Econometric
 Analysis>/i>, 5th ed. London: Prentice Hall.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Haque, N.U.; N. Mark; and D.
 Mathieson. 1997. "Rating the Raters of Country Creditworthiness."
 >i>Finance and Development>/i> 34 (March): 10-13.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>11</BIBL>        <BIBTEXT> Hoti, S., and M. McAleer.
 2002. "Country Risk Ratings: An International Comparison." Department of
 Economics, University of Western Australia.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT> Hu, Y.-T.; R. Kiesel; and W.
 Perraudin. 2002. "The Estimation of Transition Matrices for Sovereign
 Credit Ratings." >i>Journal of Banking and Finance>/i> 26, no. 7:
 1383-1406.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT> Kaminsky, G., and S.L. Schmukler. 2002. "Emerging Market
 Instability: Do Sovereign Ratings Affect Country Risk and Stock Returns?"
 >i>World Bank Economic Review>/i> 16, no. 2: 171-195.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Katz, J.; E.
 Salinas; and C. Stephanou. 2009. "Credit Rating Agencies: No Easy
 Regulatory Solutions." Crisis Response Policy Brief 8, Financial and
 Private Sector Development Vice Presidency, World Bank Group.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>15</BIBL>	   <BIBTEXT> Kunczik, M.
 2000. "Globalization: News Media, Images of Nations and the Flow of
 International Capital with Special Reference to the Role of Rating
 Agencies." Paper presented at the International Association for Media and
 Communication Research (IAMCR) Conference, Singapore, July
 17-20.</BIBTEXT>      </REF>	   <REF>	<BIBL>16</BIBL>       
 <BIBTEXT> LarraÃƒÂ­n, G.; H. Reisen; and J. von Maltzan. 1997. "Emerging
 Market Risk and Sovereign Credit Ratings." OECD Development Centre working
 paper 124, Paris.</BIBTEXT>	  </REF>      <REF>	   <BIBL>17</BIBL> 
       <BIBTEXT> Levey, D. 2001. "Revised Country Ceiling Policy-Rating
 Methodology." Moody's Global Credit Research, Moody's Investors Service,
 New York.</BIBTEXT>	  </REF>      <REF>	   <BIBL>18</BIBL>	 
 <BIBTEXT> Partnoy, F. 1999. "The Siskel and Ebert of Financial Markets:
 Two Thumbs Down for the Credit Rating Agencies." >i>Washington University
 Law Quarterly>/i> 77, no. 3: 619-712.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>19</BIBL>	   <BIBTEXT> Partnoy, F. 2001. "The Paradox of
 Credit Ratings." Law and Economics Research Paper 20, School of Law,
 University of San Diego.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>20</BIBL>	<BIBTEXT> SandstrÃƒÂ¶m, A. 2008. "Political Risk in
 Credit Evaluation: Empirical Studies and Survey Results." Ph.D.
 dissertation, Swedish School of Economics and Business Administration,
 Helsinki.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:69-87




Template-Type: ReDIF-Article 1.0
Author-Name: El-hadj M. Bah 
Author-X-Name-First: El-hadj M. 
Author-X-Name-Last: Bah 
Title: Structural Transformation Paths Across Countries 
Abstract:
 Structural transformation is a key feature of economic development.
 Developed countries all followed the same process of structural
 transformation. This paper asks whether developing countries also follow a
 similar process. Three key findings emerge from the detailed analysis.
 First, developing countries are following different paths of structural
 transformation that deviate from those of developed countries in different
 ways. Second, the paths of the subcontinents of Africa, Asia, and Latin
 America are distinct, and there is great heterogeneity within each region.
 Third, many countries experience substantial structural transformation
 during periods of economic stagnation or even decline.
Journal: Emerging Markets Finance and Trade 
Pages: 5-19 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: Africa, Asia, economic development, Latin America, structural change, structural transformation, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=70N15R4R140W6124 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bah, E.M. 2010. "A
 Three-Sector Model of Structural Transformation and Economic Development."
 Working paper, University of Auckland.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>2</BIBL>	   <BIBTEXT> Beaumol, W. 1967. "Macroeconomics of
 Unbalanced Growth: The Anatomy of Urban Crisis." >i>American Economic
 Review>/i> 57, no. 3: 415-426.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>3</BIBL>        <BIBTEXT> Chenery, H.; S. Robinson; and M. Syrquin.
 1986. >i>Industrialization and Growth.>/i> Oxford: Oxford University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT> Chenery, H.B. 1960. "Patterns of Industrial Growth." >i>American
 Economic Review>/i> 50, no. 4: 624-654.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>5</BIBL>	    <BIBTEXT> Chenery, H.B. 1975. "The
 Structuralist Approach to Development Policy." >i>American Economic
 Review>/i> 65, no. 2: 310-316.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>6</BIBL>        <BIBTEXT> Duarte, M., and D. Restuccia. 2010. "The
 Role of Structural Transformation in Aggregate Productivity." >i>Quarterly
 Journal of Economics>/i> 125, no. 1: 129-173.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> Echevarria, C. 1997. "Changes
 in Sectoral Composition Associated with Economic Growth." >i>International
 Economic Review>/i> 38, no. 2: 431-452.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>8</BIBL>	    <BIBTEXT> Gollin, D.; S.L. Parente; and R.
 Rogerson. 2007. "The Food Problem and the Evolution of International
 Income Levels." >i>Journal of Monetary Economics>/i> 54, no. 4:
 1230-1255.</BIBTEXT>	   </REF>      <REF>	    <BIBL>9</BIBL>	 
 <BIBTEXT> Kuznets, S. 1957. "Quantitative Aspects of the Economic Growth
 of Nations: II. Industrial Distribution of National Product and Labor
 Force." >i>Economic Development and Cultural Change>/i> 5, no. 4:
 1-111.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>       
 <BIBTEXT> Kuznets, S. 1966. >i>Modern Economic Growth.>/i> New Haven: Yale
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>11</BIBL> 
       <BIBTEXT> Kuznets, S. 1971. >i>Economic Growth of Nations.>/i>
 Cambridge: Harvard University Press.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>12</BIBL>	  <BIBTEXT> Laitner, J. 2000. "Structural Change
 and Economic Growth." >i>Review of Economic Studies>/i> 67, no. 3:
 545-561.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Lautier, B. 2000. "Received and Debatable Ideas on the Informal
 Sector" (available at >a target="_blank"
 href='http://europa.eu.int/comm/development/publicat/courier/courier-178/e
 n/en-053-ni.pdf'>http://europa.eu.int/comm/development/publicat/courier/co
 urier-178/en/en-053-ni.pdf>/a></BIBTEXT>      </REF>	   <REF>       
 <BIBL>14</BIBL>	<BIBTEXT> Liimatainen, M.R. 2002. "Training and
 Skill Acquisition in the Informal Sector: A Literature Review." Working
 Paper, International Labour Organisation, Geneva (available at >a
 target="_blank"
 href='http://www.ilo.org/wcmsp5/groups/public/Ã¢Â€Â”ed_emp/Ã¢Â€Â”ifp_skills/docu
 ments/publication/wcms_104010.pdf'>http://www.ilo.org/wcmsp5/groups/public
 /Ã¢Â€Â”ed_emp/Ã¢Â€Â”ifp_skills/documents/publication/wcms_104010.pdf>/a></BIBTEX
 T>	 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT>
 Maddison, A. 1989. >i>The World Economy in the 20th Century.>/i> Paris:
 Development Centre of the OECD.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>16</BIBL>	<BIBTEXT> Maddison, A. 2009. "Statistics on Wold
 Population, GDP and per Capita GDP, 1-2008 AD." Groningen Growth and
 Development Center (available at >a target="_blank"
 href='http://www.ggdc.net/Maddison/'>http://www.ggdc.net/Maddison/>/a></BI
 BTEXT>      </REF>	 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT>
 Murphy, K.M.; A. Shleifer; and R.W. Vishny. 1989. "Industrialization and
 the Big Push." >i>Journal of Political Economy>/i> 97, no. 5:
 1003-1026.</BIBTEXT>	   </REF>      <REF>	    <BIBL>18</BIBL>	  
 <BIBTEXT> Ngai, L.R., and C.A. Pissarides. 2007. "Structural Change in a
 Multi-Sector Model of Growth." >i>American Economic Review>/i> 97, no. 1:
 429-443.</BIBTEXT>	 </REF>      <REF>	  <BIBL>19</BIBL>	
 <BIBTEXT> Rogerson, R. 2008. "Structural Transformation and the
 Deterioration of European Labor Market Outcomes." >i>Journal of Political
 Economy>/i> 166, no. 2: 235-259.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>20</BIBL>	<BIBTEXT> Syrquin, M. 1986. "Growth and Structural
 Change in Latin America Since 1960: A Comparative Analysis." >i>Economic
 Development and Cultural Change>/i> 34, no. 3: 443-454.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Syrquin, M.
 1994. "Structural Transformation and the New Growth Theory." In
 >i>Economic Growth and the Structure of Long-Term Development>/i>, vol.
 112, ed. LL. Pasinetti, and R.M. Solow, pp. 3-21. New York: St. Martin's
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>22</BIBL>       
 <BIBTEXT> Temin, P. 1967. "A Time-Series Test of Patterns of Industrial
 Growth." >i>Economic Development and Cultural Change>/i> 15, no. 2:
 174-182.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT> World Bank. 2009. >i>World Development Indicators.>/i>
 Washington, DC (available at >a target="_blank"
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 rg/dataonline/>/a></BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:5-19




Template-Type: ReDIF-Article 1.0
Author-Name: Rachel Male 
Author-X-Name-First: Rachel 
Author-X-Name-Last: Male 
Title: Developing Country Business Cycles: Characterizing the Cycle 
Abstract:
 Classical business cycles, following Burns and Mitchell (1946), can be
 defined as the sequential pattern of expansions and contractions in
 aggregate economic activity. Recently, Harding and Pagan (2002, 2006) have
 provided an econometric toolkit for the analysis of these cycles, and this
 has resulted in a recent surge in researchers using these methods to
 analyze developing country business cycles. However, the existing
 literature consists of diminutive samples, and the majority of the studies
 fail to consider the statistical significance of the concordance
 statistics. To address this shortfall, this paper examines the business
 cycle characteristics and synchronicity for thirty-two developing
 countries. Furthermore, the United States, United Kingdom, and Japan are
 included. This provides benchmarks upon which to compare the
 characteristics of the developing country cycles and also to examine the
 degree of synchronization between developed and developing countries.
 Significantly, this research reveals that business cycles of developing
 countries are not, as previously believed, significantly shorter than
 those of the developed countries. However, the amplitude of both expansion
 and contraction phases tends to be greater in the developing countries.
 Furthermore, a clear relationship is exhibited between the timing of
 business cycle fluctuations and periods of significant regional crises,
 such as the Asian financial crisis. However, the more specific timing of
 the onset of these fluctuations appears to be determined by
 country-specific factors. Moreover, there are no clear patterns of
 concordance either within regions or between developed and developing
 country business cycles.
Journal: Emerging Markets Finance and Trade 
Pages: 20-39 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: classical business cycle, concordance, contagion, developing economies, synchronization, turning points, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=7626184L13245140 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> AgÃƒÂ©nor, P.; C.
 McDermott; and E. Prasad. 2000. "Macroeconomic Fluctuations in Developing
 Countries: Some Stylised Facts." >i>World Bank Economic Review>/i> 14, no.
 2: 251-285.</BIBTEXT>	    </REF>	<REF>	     <BIBL>2</BIBL>	  
 <BIBTEXT> Aruoba, S.B. 2001. "Business Cycle Facts for Turkey." Working
 paper, Department of Economics, University of Pennsylvania.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Backus, D.K.;
 P.J. Kehoe; and F.E. Kydland. 1995. "International Business Cycles: Theory
 and Evidence" In >i>Frontiers of Business Cycle Analysis>/i>, ed. T.F.
 Cooley, pp. 331-356. Princeton: Princeton University Press.</BIBTEXT>	   
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 Boschan. 1971. >i>Cyclical Analysis of Time Series: Selected Procedures
 and Computer Programs.>/i> Cambridge, MA: National Bureau of Economic
 Research.</BIBTEXT>	  </REF>      <REF>	   <BIBL>5</BIBL>	
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 2002. "Trade Policy and Economic Growth: Cases of Belarus and Lithuania."
 >i>Privredna kretanja i ekonomska politika>/i> 12, no. 90:
 67-102.</BIBTEXT>	</REF>	    <REF>	 <BIBL>6</BIBL>       
 <BIBTEXT> Burns, A.F., and W.C. Mitchell. 1946. >i>Measuring Business
 Cycles.>/i> Cambridge, MA: National Bureau of Economic Research.</BIBTEXT>
      </REF>	  <REF>        <BIBL>7</BIBL>	     <BIBTEXT> CalderÃƒÂ³n,
 C., and R. Fuentes. 2006. "Characterising the Business Cycles of Emerging
 Economies." Working paper, Centre for Economic Policy Research,
 London.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>       
 <BIBTEXT> CalderÃƒÂ³n, C.; A. Chong; and E. Stein. 2007. "Trade Intensity
 and Business Cycle Synchronization: Are Developing Countries Any
 Different?" >i>Journal of International Economics>/i> 71, no. 1:
 2-21.</BIBTEXT>      </REF>	  <REF>        <BIBL>9</BIBL>	    
 <BIBTEXT> Calvo, G. 1999. "Contagion in Emerging Markets: When Wall Street
 Is a Carrier." Working paper, Department of Economics, University of
 Maryland.</BIBTEXT>	  </REF>      <REF>	   <BIBL>10</BIBL>	 
 <BIBTEXT> Calvo, G., and E. Mendoza. 2000. "Rational Contagion and the
 Globalization of Securities Markets." >i>Journal of International
 Economics>/i> 51, no. 1: 79-113.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>11</BIBL>	<BIBTEXT> Cashin, P. 2004. "Caribbean Business
 Cycles." Working paper no. WP/04/136, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>12</BIBL>   
     <BIBTEXT> Corsetti, G.; P. Pesenti; N. Roubini; and C. Tille. 1999.
 "Competitive Devaluations: A Welfare- Based Approach." Working paper no.
 6889, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Du Plessis, S.
 2006. "Business Cycles in Emerging Market Economies: A New View of the
 Stylised Facts." Working paper, Department of Economics, Stellenbosh
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 <BIBTEXT> Eichengreen, B.; A. Rose; and C. Wyplosz. 1996. "Contagious
 Currency Crises." Working paper no. 5681, National Bureau of Economic
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 <BIBL>15</BIBL>	<BIBTEXT> Frankel, J.A., and N. Roubini. 2001. "The
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 2005. "A Suggested Framework for Classifying the Modes of Cycle Research."
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 A. Pagan. 2006. "Synchronisation of Cycles." >i>Journal of
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  <BIBL>20</BIBL>	 <BIBTEXT> Hodrick, R.J., and E.C. Prescott. 1997.
 "Postwar U.S. Business Cycles: An Empirical Investigation." >i>Journal of
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 1990. "Business Cycle: Real Facts and a Monetary Myth." >i>Federal Reserve
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 1977. "Understanding Business Cycles." In >i>Stabilization of the Domestic
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 no. 9286, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>  
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:20-39




Template-Type: ReDIF-Article 1.0
Author-Name: E. Nur Özkan-Günay
Author-X-Name-First: E. Nur
Author-X-Name-Last: Özkan-Günay
Title: Determinants of FDI Inflows and Policy Implications: A Comparative Study for the Enlarged EU and Candidate Countries
Abstract:
 This study aims to identify underlying fundamental factors in attracting foreign direct investments (FDI) among the EU countries where there exists a large discrepancy in terms of their economic and technological development levels. The fundamental factors are analyzed by employing panel data models for the EU-15 and the EU-12+2 countries over the period from 1998 to 2008. The empirical findings show dissimilarities in macroeconomic factors such as inflation and the unemployment rate. The common characteristic is that domestic and foreign capital seem to be complementary. Although the integration capacity is an important factor in the EU-12+2, it may not be so important in the EU-15. From a policy perspective, this divergence creates an opportunity to build strong economic links through FDI inflows between these countries.
Journal: Emerging Markets Finance and Trade
Pages: 71-85
Issue: 0
Volume: 47 
Year: 2011 
Month: 9
Keywords: emerging markets, European Union, foreign direct investment, Turkey
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=825287Q469835218
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> AbuAl-Foul, B.M., and M. Soliman. 2008. "Foreign Direct Investment and LDC Exports: Evidence from the MENA Region." <i>Emerging Markets Finance & Trade</i> 44, no. 2 (March-April): 4-14.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Agarwall, J. 1980. "The Determinants of Foreign Direct Investment: A Survey." <i>Weltirtschafliches Archiv</i> 116: 339-373.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Botric, V., and L. Skuflic. 2006. "Main Determinants of Foreign Direct Investment in the Southeast European Countries." <i>Transition Studies Review</i> 13, no. 2: 359-377.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>     <BIBTEXT> Chakrabarti, A. 2001. "The Determinants of Foreign Direct Investment: Sensitivity Analyses of Cross-Country Regressions." <i>KYKLOS</i> 54: 89-114.</BIBTEXT>	    </REF>	<REF>	   <BIBL>5</BIBL>  <BIBTEXT> Deichmann, J.; S. Karidis; and S. Sayek. 2003. "Foreign Direct Investment in Turkey: Regional Determinants." <i>Applied Economics</i> 35: 1767-1778.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>	 <BIBTEXT> Dunning, J.H. 1997a. "The European Internal Market and Inbound Foreign Direct Investment: Part 1." <i>Journal of Common Market Studies</i> 35, no. 1: 1-30.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Dunning, J.H. 1997b. "The European Internal Market and Inbound Foreign Direct Investment: Part 2." <i>Journal of Common Market Studies</i> 35, no. 2: 189-223.</BIBTEXT> </REF>      <REF>   <BIBL>8</BIBL>	<BIBTEXT> Erdal, F., and E. Tatoglu. 2002. "Locational Determinants of Foreign Direct Investment in Emerging Market Economy: Evidence from Turkey." <i>Multinational Business Review</i> 10, no. 1: 1-7.</BIBTEXT>	    </REF>	<REF>	    <BIBL>9</BIBL>	<BIBTEXT> Galego, A.; C. Vieira; and I. Vieira. 2004. "The CEECs as FDI Attractors: A Menace to the EU Periphery." <i>Emerging Markets Finance & Trade</i> 40, no. 5: 74-91.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Grcic, B., and Z. Babic. 2003. "The Determinants of FDI: Evaluation of Transition Countries Attractiveness for Foreign Investors." In <i>Proceedings of the Fifth International Conference on "Enterprise in Transition</i>," 265-270. Tucepi: Faculty of Economics Split.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>	<BIBTEXT> Greene, W.H. 2007. <i>LIMDEP, Econometric Modeling Guide</i>, Version 9.0. Vol. 1. Plainview, NY: Econometric Software.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Holland, D., and N. Pain. 1998. "The Diffusion of Innovations in Central and Eastern Europe: A Study of the Determinants and Impact of Foreign Direct Investment." NIESR Discussion Papers 137, National Institute of Economic and Social Research, London.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Jensen, C. 2006. "Foreign Direct Investment and Economic Transition: Panacea or Pain Killer?" <i>Europe-Asia Studies</i> 58, no. 6: 881-902.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Lefilleur, J., and M. Maurel. 2010. "Inter- and Intra-Industry Linkages as a Determinant of FDI in Central and Eastern Europe." <i>Economic Systems</i> 34: 309-330.</BIBTEXT>   </REF>      <REF>	  <BIBL>15</BIBL>   <BIBTEXT> Lim, E. 2001. "Determinants of, and the Relation Between, Foreign Direct Investment and Growth: A Summary of the Recent Literature." IMF Working Paper, WP/01/175, Washington, DC.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL> <BIBTEXT> Nunnenkamp, P. 2002. "Determinants of FDI in Developing Countries: Has Globalization Changed the Rules of the Game?" Working paper, Kiel Institute for World Economics, Kiel.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Ok, S.T. 2004. "What Drives Foreign Direct Investment into Emerging Markets? Evidence from Turkey." <i>Emerging Markets Finance & Trade</i> 40, no. 4: 101-114.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	   <BIBTEXT> Sayek, S. 2007. "FDI in Turkey: The Investment Climate and EU Effects." <i>Journal of International Trade and Diplomacy</i> 1, no. 2 (Fall): 105-138.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Stefanovic, S. 2008. "Analytical Framework of FDI Determinants: Implementation of the Olli Model." <i>Facta Universitatis Series: Economics and Organization</i> 5, no 3: 239-249.</BIBTEXT>     </REF>      <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Tatoglu, E.; M. Demirbag; and G. Kaplan. 2003. "Motives for Retailer Internationalization to Central and Eastern Europe." <i>Emerging Markets Finance & Trade</i> 39, no. 4 (July-August): 40-57.</BIBTEXT>      </REF>	<REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Trevino, L.J.; J.D. Daniels; and H. Arbeláez. 2002. "Market Reform and FDI in Latin America: An Empirical Investigation." United Nations Conference on Trade and Development, New York and Geneva, vol. 2, no. 2.</BIBTEXT>	   </REF>      <REF>	  <BIBL>22</BIBL>	<BIBTEXT> United Nations Conference on Trade and Development (UNCTAD). <i>World Investment Prospects</i> (WIP). 2006. New York: United Nations.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>  <BIBTEXT> Vuksic, G. 2005. "Impact of Foreign Direct Investment on Croatian Manufacturing Exports." <i>Financial Theory and Practice</i> 29, no. 2: 131-158.</BIBTEXT>    </REF>    <REF>	  <BIBL>24</BIBL>  <BIBTEXT> Walkenhorst, P. 2004. "Economic Transition and the Sectoral Patterns of Foreign Direct Investment." <i>Emerging Markets Finance & Trade</i> 40, no. 2: 5-26.</BIBTEXT>    </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S4:p:71-85




Template-Type: ReDIF-Article 1.0
Author-Name: Janchung Wang 
Author-X-Name-First: Janchung 
Author-X-Name-Last: Wang 
Title: Price Behavior of Stock Index Futures: Evidence from the FTSE Xinhua China A50 and H-Share Index Futures Markets 
Abstract:
 This study presents empirical evidence related to futures pricing for the
 SGX FTSE Xinhua China A50 and HKEx H-share index futures markets. First,
 whether the costof-carry model can describe the relationship between index
 futures prices and underlying stock indexes is examined. As anticipated,
 the cost of carry model cannot accurately predict the prices of these two
 index futures, because the two underlying Chinese stock markets display
 high price volatility. Furthermore, the empirical results indicate that
 different risk-free interest rate proxies have little effect on the
 mispricing of the cost-of-carry model. Next, this study compares the
 pricing performance of the cost-of-carry model and the Hemler-Longstaff
 (1991) model with stock market volatility. Empirical results demonstrate
 that incorporating stock market volatility into pricing models appears
 beneficial for estimating prices on these two index futures. Furthermore,
 the component GARCH model improves the pricing performance of the
 Hemler-Longstaff model. Finally, the autocorrelation and regression
 results suggest high persistence in mispricings.
Journal: Emerging Markets Finance and Trade 
Pages: 61-77 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: component GARCH model, Hemler-Longstaff model, persistence in mispricing, pricing of stock index futures, SGX FTSE Xinhua China A50 index futures, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=91405M66205816L4 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bailey, W. 1989. "The
 Market for Japanese Stock Index Futures: Some Preliminary Evidence."
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 "Generalized Autoregressive Conditional Heteroskedasticity." >i>Journal of
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 Heteroskedastic Time Series Model for Speculative Prices and Rates of
 Return." >i>Review of Economics and Statistics>/i> 69, no. 3:
 542-547.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Brailsford, T. J., and A. J. Cusack. 1997. "A Comparison of
 Futures Pricing Models in a New Market: The Case of Individual Share
 Futures." >i>Journal of Futures Markets>/i> 17, no. 5: 515-541.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Cakici, N.,
 and S. Chatterjee. 1991. "Pricing Stock Index Futures with Stochastic
 Interest Rates." >i>Journal of Futures Markets>/i> 11, no. 4:
 441-452.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Chiang, S. M.; C. P. Yeh; and C. L. Chiu. 2009. "Permanent and
 Transitory Components in the Chinese Stock Market: The ARJI-Trend Model."
 >i>Emerging Markets Finance & Trade>/i> 45, no. 3 (May-June):
 35-55.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	     
 <BIBTEXT> Cornell, B., and K. R. French. 1983a. "The Pricing of Stock
 Index Futures." >i>Journal of Futures Markets>/i> 3, no. 1:
 1-14.</BIBTEXT>      </REF>	  <REF>        <BIBL>8</BIBL>	    
 <BIBTEXT> Cornell, B., and K. R. French. 1983b. "Taxes and the Pricing of
 Stock Index Futures." >i>Journal of Finance>/i> 38, no. 3:
 675-694.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Cox, J. C.; J. E. Ingersoll, Jr.; and S. A. Ross 1985a. "An
 Intertemporal General Equilibrium Model of Asset Prices."
 >i>Econometrica>/i> 53, no. 2: 363-384.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>10</BIBL>	     <BIBTEXT> Cox, J. C.; J. E. Ingersoll, Jr.;
 and S. A. Ross 1985b. "A Theory of the Term Structure of Interest Rates."
 >i>Econometrica>/i> 53, no. 2: 385-408.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>11</BIBL>	     <BIBTEXT> Draper, P., and J. K. W. Fung. 2003.
 "Discretionary Government Intervention and the Mispricing of Index
 Futures." >i>Journal of Futures Markets>/i> 23, no. 12:
 1159-1189.</BIBTEXT>	   </REF>      <REF>	    <BIBL>12</BIBL>	  
 <BIBTEXT> Engle, R. F., and G. Lee. 1999. "A Long-Run and Short-Run
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 Oxford: Oxford University Press.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>13</BIBL>	<BIBTEXT> Fung, J. K. W., and P. Draper. 1999.
 "Mispricing of Index Futures Contracts and Short Sales Constraints."
 >i>Journal of Futures Markets>/i> 19, no. 6: 695-715.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Gay, G. D., and
 D. Y. Jung. 1999. "A Further Look at Transaction Costs, Short Sale
 Restrictions, and Futures Market Efficiency: The Case of Korean Stock
 Index Futures." >i>Journal of Futures Markets>/i> 19, no. 2:
 153-174.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Glosten, L. R.; R. Jagannathan; and D. E. Runkle. 1993. "On the
 Relation Between the Expected Value and the Volatility of the Nominal
 Excess Return on Stocks." >i>Journal of Finance>/i> 48, no. 5:
 1779-1801.</BIBTEXT>	   </REF>      <REF>	    <BIBL>16</BIBL>	  
 <BIBTEXT> Guermat, C., and R. D. F. Harris. 2002. "Robust Conditional
 Variance Estimation and Value-at-Risk." >i>Journal of Risk>/i> 4, no. 2:
 25-41.</BIBTEXT>      </REF>	   <REF>	<BIBL>17</BIBL>       
 <BIBTEXT> Hauser, S., and B. Lauterbach. 1997. "The Relative Performance
 of Five Alternative Warrant Pricing Models." >i>Financial Analysts
 Journal>/i> 53, no. 1: 55-61.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>18</BIBL>	<BIBTEXT> Hemler, M. L., and F. A. Longstaff. 1991.
 "General Equilibrium Stock Index Futures Prices: Theory and Empirical
 Evidence." >i>Journal of Financial and Quantitative Analysis>/i> 26, no.
 3: 287-308.</BIBTEXT>	    </REF>	<REF>	     <BIBL>19</BIBL>	   
 <BIBTEXT> Huang, A. G., and H. G. Fung. 2005. "Floating the Nonfloatables
 in China's Stock Market: Theory and Design." >i>Emerging Markets Finance &
 Trade>/i> 41, no. 5 (September-October): 6-26.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> J. P. Morgan. 1996.
 >i>RiskmetricsÃ¢Â„Â¢Ã¢Â€Â”Technical Document>/i>, 4th ed. New York: Morgan
 Guaranty Trust Company.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>21</BIBL>	<BIBTEXT> Nelson, D. B. 1991. "Conditional
 Heteroskedasticity in Asset Returns: A New Approach." >i>Econometrica>/i>
 59, no. 2: 347-370.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>22</BIBL>	<BIBTEXT> Pan, H.; X. Xia; and M. Yu. 2008.
 "Expropriation: Evidence from Rights Issues in China." >i>Emerging Markets
 Finance & Trade>/i> 44, no. 1 (January-February): 5-20.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT> Ramaswamy, K.,
 and S. M. Sundaresan. 1985. "The Valuation of Options on Futures
 Contracts." >i>Journal of Finance>/i> 40, no. 5: 1319-1340.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>24</BIBL>	 <BIBTEXT> Wang, J., and H.
 Hsu. 2006. "Price Expectation and the Pricing of Stock Index Futures:
 Evidence from Developed and Emerging Markets." >i>Review of Pacific Basin
 Financial Markets and Policies>/i> 9, no. 4: 639-660.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Xu, X. E. 2005.
 "Performance of Securities Investment Funds in China." >i>Emerging Markets
 Finance & Trade>/i> 41, no. 5 (September-October): 28-42.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT> Yadav, P. K.,
 and P. F. Pope. 1994. "Stock Index Futures Mispricing: Profit
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     <BIBTEXT> ZakoÃƒÂ¯an, J. M. 1994. "Threshold Heteroskedastic Models."
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 931-955.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:61-77




Template-Type: ReDIF-Article 1.0
Author-Name: Gema Pastor-Agustín
Author-X-Name-First: Gema
Author-X-Name-Last: Pastor-Agustín
Author-Name: Marisa Ramírez-Alesón
Author-X-Name-First: Marisa
Author-X-Name-Last: Ramírez-Alesón
Author-Name: Manuel Espitia-Escuer
Author-X-Name-First: Manuel
Author-X-Name-Last: Espitia-Escuer
Title: Complementary Assets and Investment Decisions
Abstract:
 This paper analyzes which simultaneous crossover effects among tangible, intangible, and current assets affect investment and disinvestment decisions on tangible and intangible assets. Controlling for nonconvexity and irreversibility effects, we analyze investment and disinvestment over 1,044 firm-year observations of Spanish firms. The results show interrelations among tangible and intangible assets affecting their investment and disinvestment decisions, a different effect of current assets on investment and disinvestment, and the existence of lumping investment. The main contribution is the control for misspecification biases since all the effects are considered together.
Journal: Emerging Markets Finance and Trade
Pages: 25-39
Issue: 0
Volume: 47 
Year: 2011 
Month: 11
Keywords: investment models, complementarities, Tobin's <i>q</i>, tangible, intangible, current
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=AX8J0721276N6883
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abel, A., and J. C. Eberly. 1994. "A Unified Model of Investment Under Uncertainty." <i>American Economic Review</i> 84, no. 5: 1369-1384.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Abel, A., and J. C. Eberly. 1996. "Optimal Investment with Costly Reversibility." <i>Review of Economic Studies</i> 63, no. 4: 581-593.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Abel, A., and J. C. Eberly. 2002. "Investment and <i>q</i> with Fixed Costs: An Empirical Analysis." Working Paper, Kellogg School of Management and the Wharton School.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>     <BIBTEXT> Abel, A., and J. C. Eberly. 2005. "Investment, Valuation and Growth Options." 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Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S5:p:25-39




Template-Type: ReDIF-Article 1.0
Author-Name: Martin T. Bohl 
Author-X-Name-First: Martin T. 
Author-X-Name-Last: Bohl 
Author-Name: Judith Lischewski 
Author-X-Name-First: Judith 
Author-X-Name-Last: Lischewski 
Author-Name: Svitlana Voronkova 
Author-X-Name-First: Svitlana 
Author-X-Name-Last: Voronkova 
Title: Pension Funds' Performance in Strongly Regulated Industries in Central Europe: Evidence from Poland and Hungary 
Abstract:
 This paper presents an analysis of pension funds' performance in Poland
 and Hungary, two Central European countries characterized by strong
 regulation of their private pension fund industries. Thus, the paper
 extends the literature, which has so far mostly focused on the performance
 of pension fund industries facing no or limited regulation. We find that
 the performance of pension funds in the two studied countries differs.
 While we do not find convincing evidence of outperformance by Polish
 pension funds, we find strong evidence of underperformance by Hungarian
 pension funds. The results are robust to time variation. The paper
 considers possible explanations for these findings. The results of the
 paper should be of interest to policymakers seeking to achieve optimal
 performance of pension systems and to academics researching the area of
 pension funds.
Journal: Emerging Markets Finance and Trade 
Pages: 80-94 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: Central European stock markets, emerging markets, investment and performance regulation, pension fund management, performance measurement, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D03315446130500N 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Antolin, P.; S. Blome;
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      <BIBL>5</BIBL>	    <BIBTEXT> Cesari, R., and F. Panetta. 2002.
 "The Performance of Italian Equity Funds." >i>Journal of Banking and
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 <BIBL>6</BIBL>        <BIBTEXT> Chan-Lau, J.A. 2005. "Pension Funds and
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 14: 107-133.</BIBTEXT>      </REF>	 <REF>	      <BIBL>7</BIBL>	   
 <BIBTEXT> Chevalier, J., and G. Ellison. 1999. "Are Some Mutual Fund
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 and A.C. Kraay. 1998. "Consistent Covariance Matrix Estimation with
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     <BIBTEXT> Organization for Economic Cooperation and Development
 (OECD). 2006 (and earlier years). >i>Survey of Investment Regulations of
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 rch/425EF1B92AE5B63085257236007A89E0/$file/hungary_pensions_wp.pdf'>http:/
 /lnweb90.worldbank.org/oed/oeddoclib.nsf/DocUNIDViewForJavaSearch/425EF1B9
 2AE5B63085257236007A89E0/$file/hungary_pensions_wp.pdf>/a></BIBTEXT>	  
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 '>www.knf.gov.pl/Images/konkurencja_na_rynku_ofe_tcm75-7063.pdf>/a></BIBTE
 XT>	  </REF>      <REF>	   <BIBL>23</BIBL>	  <BIBTEXT>
 Prather, L., and K. Middleton 2006. "Timing and Selectivity of Mutual Fund
 Managers: An Empirical Test of the Behavioral Decision-Making Theory."
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 1966. "Mutual Fund Performance." >i>Journal of Business>/i> 39, no. 2:
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 <BIBTEXT> Stanko, D. 2003. "Polish Pension Funds. Does the System Work?
 Cost, Efficiency and Performance Measurement Issues." Discussion Paper
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 <BIBTEXT> Treynor, J.L. 1965. "How to Rate Management of Investment
 Funds." >i>Harvard Business Review>/i> 43, no. 1: 63-75.</BIBTEXT>	
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 K. Mazuy. 1966. "Can Mutual Funds Outguess the Market?" >i>Harvard
 Business Review>/i> 44: 131-136.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>28</BIBL>	<BIBTEXT> Voronkova, S., and M. Bohl. 2005.
 "Institutional Traders' Behavior in an Emerging Stock Market: Empirical
 Evidence on Polish Pension Fund Investors." >i>Journal of Business Finance
 and Accounting>/i> 32: 1537-1560.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>29</BIBL>	<BIBTEXT> World Bank 1994. >i>Averting the Old-Age
 Crisis: Polices to Protect the Old and Promote Growth>/i>. New York:
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 Reforms." >i>Emerging Markets Review>/i> 7, no. 4: 339-360.</BIBTEXT>	   
 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:80-94




Template-Type: ReDIF-Article 1.0
Author-Name: Yulu Chen 
Author-X-Name-First: Yulu 
Author-X-Name-Last: Chen 
Author-Name: Donald Lien 
Author-X-Name-First: Donald 
Author-X-Name-Last: Lien 
Author-Name: Changyun Wang 
Author-X-Name-First: Changyun 
Author-X-Name-Last: Wang 
Title: Guest Editors' Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-6 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D554622T14415238 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:3-6




Template-Type: ReDIF-Article 1.0
Author-Name: Laivi Laidroo 
Author-X-Name-First: Laivi 
Author-X-Name-Last: Laidroo 
Title: Market Liquidity and Public Announcements' Disclosure Quality on Tallinn, Riga, and Vilnius Stock Exchanges 
Abstract:
 This paper investigates the association between market liquidity and
 public announcements' disclosure quality on three emerging markets in the
 BalticsÃ¢Â€Â”the Tallinn, Riga, and Vilnius Stock Exchanges. The results show
 that disclosure quality, disclosure quantity, and above average disclosure
 quality level of the current year reduces the spread on the following
 year, as expected. The increase in disclosure quality level leads to
 greater volume on the same year; higher disclosure quality leads to lower
 illiquidity ratio on the following year; increase in disclosure quality,
 number of announcements, and above average disclosure level leads to
 higher volatility on the same year; and increase in number of
 announcements leads to higher combined liquidity measure on the following
 year, as expected. Still, unlike in previous studies, the spread and
 illiquidity ratio seem to react more slowly to the disclosure
 quality/quantity change compared to volume and volatility.
Journal: Emerging Markets Finance and Trade 
Pages: 54-79 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: disclosure quality, emerging markets, market liquidity, public announcements, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E4WN872423117117 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:54-79




Template-Type: ReDIF-Article 1.0
Author-Name: Sophia P. Dimelis 
Author-X-Name-First: Sophia P. 
Author-X-Name-Last: Dimelis 
Author-Name: Sotiris K. Papaioannou 
Author-X-Name-First: Sotiris K. 
Author-X-Name-Last: Papaioannou 
Title: Technical Efficiency and the Role of ICT: A Comparison of Developed and Developing Countries 
Abstract:
 This paper investigates for possible effects of information and
 communication technology (ICT) in reducing aggregate technical
 inefficiency. A translog stochastic production frontier is simultaneously
 estimated with a technical inefficiency model across a panel of forty-two
 countries in 1993-2001. Strong evidence is provided for a significant
 impact of ICT in reducing country inefficiencies. Further evidence
 indicates a significantly positive ICT impact on labor productivity, while
 it seems that a substitute relationship between ICT and non-ICT capital
 exists. Based on the model's estimates, the most efficient country in the
 sample is the United States, followed by India, and a number of other
 developed countries. Overall, developed countries operate closer to the
 world frontier.
Journal: Emerging Markets Finance and Trade 
Pages: 40-53 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: ICT, stochastic production frontier, technical efficiency, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E5685272H2785288 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:40-53




Template-Type: ReDIF-Article 1.0
Author-Name: Ravi Balakrishnan 
Author-X-Name-First: Ravi 
Author-X-Name-Last: Balakrishnan 
Author-Name: Stephan Danninger 
Author-X-Name-First: Stephan 
Author-X-Name-Last: Danninger 
Author-Name: Selim Elekdag 
Author-X-Name-First: Selim 
Author-X-Name-Last: Elekdag 
Author-Name: Irina Tytell 
Author-X-Name-First: Irina 
Author-X-Name-Last: Tytell 
Title: The Transmission of Financial Stress from Advanced to Emerging Economies 
Abstract:
 This paper studies how financial stress, defined as periods of impaired
 financial intermediation, is transmitted from advanced to emerging
 economies using a new financial stress index for emerging economies.
 Previous financial crises in advanced economies passed through strongly
 and rapidly to emerging economies. The unprecedented spike in financial
 stress in advanced economies elevated stress across emerging economies
 above levels seen during the Asian crisis but with significant
 cross-country variation. The extent of pass-through of financial stress is
 related to the depth of financial linkages between advanced and emerging
 economies. Higher current account and fiscal balances do little to
 insulate emerging economies from the transmission of acute financial
 stress in advanced economies, although they may still help dampen the
 impact on the real economy.
Journal: Emerging Markets Finance and Trade 
Pages: 40-68 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: emerging economies, financial crises, financial stress index, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=FM7707J538628894 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Balakrishnan, R.; S.
 Danninger; S. Elekdag; and I. Tytell. 2009. "The Transmission of Financial
 Stress from Advanced to Emerging Economies." Working paper no. WP/09/133,
 International Monetary Fund, Washington DC.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Broner, F.A.; R.G. Gelos; and
 C.M. Reinhart. 2006. "When in Peril, Retrench: Testing the Portfolio
 Channel of Contagion." >i>Journal of International Economics>/i> 69, no.
 1: 203-230.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>	  
 <BIBTEXT> Calvo, G.A., and C. Reinhart. 2002. "Fear of Floating."
 >i>Quarterly Journal of Economics>/i> 117, no. 2: 379-408.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Calvo, G.A.; A.
 Izquierdo; and L.F. MejÃƒÂ­a. 2008. "Systemic Sudden Stops: The Relevance of
 Balance-Sheet Effect and Financial Integration." Working paper no. 14026,
 National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>
      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT> Cardarelli, R.; S.
 Elekdag; and S. Lall. 2009, "Financial Stress, Downturns, and Recoveries."
 Working paper no. WP/09/100, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>6</BIBL>	  
 <BIBTEXT> Cardarelli, R.; S. Elekdag; and S. Lall. 2011. "Financial Stress
 and Economic Contractions." >i>Journal of Financial Stability>/i> 7, no.
 2: 78-97.</BIBTEXT>	  </REF>      <REF>	   <BIBL>7</BIBL>	
 <BIBTEXT> Chamon, M.; P. Manasse; and A. Prati. 2007. "Can We Predict the
 Next Capital Account Crisis?" >i>IMF Staff Papers>/i> 54, no. 2:
 270-305.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Claessens, S.; N. Van Horen; T. Gurcanlar; and J. Mercado. 2008.
 "Foreign Bank Presence in Developing Countries 1995-2006: Data and
 Trends." World Bank, Washington, DC, March.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> DemirgÃƒÂ¼ÃƒÂ§-Kunt, A.; E.
 Detragiache; and P. Gupta. 2006. "Inside the Crisis: An Empirical Analysis
 of Banking Systems in Distress." >i>Journal of International Money and
 Finance>/i> 25, no. 5: 702-718.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>10</BIBL>	<BIBTEXT> Edison, H.J. 2003. "Do Indicators of
 Financial Crises Work? An Evaluation of an Early Warning System."
 >i>International Journal of Finance and Economics>/i> 8, no. 1:
 11-53.</BIBTEXT>      </REF>	   <REF>	<BIBL>11</BIBL>       
 <BIBTEXT> Eichengreen, B.J., and M.D. Bordo. 2002. "Crises Now and Then:
 What Lessons from the Last Era of Financial Globalization." Working paper
 no. W8716, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT> Forbes, K.,
 and M.D. Chinn. 2004. "A Decomposition of Global Linkages in Financial
 Markets over Time." >i>Review of Economics and Statistics>/i> 86, no. 3:
 703-722.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Glick, R., and A.K. Rose, 1999, "Contagion and Trade. Why Are
 Currency Crises Regional?" >i>Journal of International Money and
 Finance>/i> 18, no. 4: 603-617.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>14</BIBL>	<BIBTEXT> Honohan, P., and L. Laeven, ed. 2005.
 >i>Systemic Financial Crises: Containment and Resolution.>/i> Cambridge:
 Cambridge University Press.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>15</BIBL>	<BIBTEXT> Illing, M., and Y. Liu. 2006, "Measuring
 Financial Stress in a Developed Country: An Application to Canada."
 >i>Journal of Financial Stability>/i> 2, no. 3: 243-265.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> International
 Monetary Fund. 2008. >i>World Economic Outlook: Financial Stress and
 Economic Downturns.>/i> Washington, DC.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>17</BIBL>	     <BIBTEXT> Kaminsky, G., and C.M. Reinhart.
 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments
 Problems." >i>American Economic Review>/i> 89, no. 3: 473-500.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>18</BIBL>	    <BIBTEXT> Kaminsky, G.,
 and C.M. Reinhart. 2003. "The Center and the Periphery: The Globalization
 of Financial Turmoil." Working paper no. 9479, National Bureau of Economic
 Research, Cambridge, MA, January.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>19</BIBL>	<BIBTEXT> Kose, M.A.; E. Prasad, and M.E. Terrones.
 2005. "How Do Trade and Financial Integration Affect the Relationship
 Between Growth and Volatility?" >i>Journal of International Economics>/i>
 69, no. 1: 176-202.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>20</BIBL>	<BIBTEXT> Laeven, L., and F. Valencia. 2008.
 "Systemic Banking Crises: A New Database." Working paper no. WP/08/224,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT> Ramakrishnan, U., and J.
 Zalduendo. 2006. "The Role of IMF Support in Crisis Prevention." Working
 paper no. WP/06/75, International Monetary Fund, Washington, DC.</BIBTEXT>
      </REF>	  <REF>        <BIBL>22</BIBL>	      <BIBTEXT> Reinhart,
 C.M., and V. Reinhart. 2009. "Capital Flow Bonanzas: An Encompassing View
 of the Past and Present." In >i>NBER International Seminar in
 Macroeconomics 2008>/i>, ed. J. Frankel and C. Pissarides, pp. 9-62.
 Cambridge: NBER Books.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>23</BIBL>	<BIBTEXT> Reinhart, C.M., and K.S. Rogoff. 2008.
 "This Time Is Different: A Panoramic View of Eight Centuries of Financial
 Crises." Working paper no. 13882, National Bureau of Economic Research,
 Cambridge, MA.</BIBTEXT>      </REF>	   <REF>	<BIBL>24</BIBL>    
    <BIBTEXT> Reinhart, C.M., and K.S. Rogoff. 2009. "The Aftermath of
 Financial Crises." >i>American Economic Review>/i> 99, no. 2:
 466-472.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
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 <BIBL>26</BIBL>	<BIBTEXT> Spatafora, N., and I. Tytell. 2009.
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 no. WP/09/205, International Monetary Fund, Washington, DC.</BIBTEXT>	   
 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:40-68




Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Ortobelli Lozza
Author-X-Name-First: Sergio Ortobelli
Author-X-Name-Last: Lozza
Author-Name: Enrico Angelelli
Author-X-Name-First: Enrico
Author-X-Name-Last: Angelelli
Author-Name: Daniele Toninelli
Author-X-Name-First: Daniele
Author-X-Name-Last: Toninelli
Title: Set-Portfolio Selection with the Use of Market Stochastic Bounds
Abstract:
 This paper proposes an ex post comparison of portfolio selection strategies. These strategies are applied to a set of assets, preselected among about 10,000 stocks on the global market. The preselection criteria consider the joint Markovian behavior of the returns and their association with the market stochastic bounds. Furthermore, we examine the performance and the impact of different strategies that use or do not use the preselection criteria. Finally, we compare the ex post wealth obtained with the optimization of several reward-risk performance functionals that use the stochastic bounds of the preselected assets.
Journal: Emerging Markets Finance and Trade
Pages: 5-24
Issue: 0
Volume: 47 
Year: 2011 
Month: 11
Keywords: computational complexity, Markov chains, portfolio strategies, stochastic bounds
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H2221550703T2UPV
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S5:p:5-24




Template-Type: ReDIF-Article 1.0
Author-Name: Mei-Hua Liao
Author-X-Name-First: Mei-Hua
Author-X-Name-Last: Liao
Author-Name: Chien-Chih Lin
Author-X-Name-First: Chien-Chih
Author-X-Name-Last: Lin
Author-Name: Yinrou Wang
Author-X-Name-First: Yinrou
Author-X-Name-Last: Wang
Title: The Effects of Removing Price Limits: Evidence from Taiwan IPO Stocks
Abstract:
 There have been few studies of the price limits for initial public offering (IPO) stocks. In 2005, the Taiwanese authorities introduced a trading rule that removed the price limit for IPO stocks during their first five days. In this paper, we investigate the influences of this trading rule on the aftermarket. It is shown that, after implementation of the trading rule, the level of aftermarket returns in the first two weeks became lower, the price was adjusted speedily, and the trading volume was increased.
Journal: Emerging Markets Finance and Trade
Pages: 40-52
Issue: 0
Volume: 47 
Year: 2011 
Month: 11
Keywords: public offerings, price limit, underpricing
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J710417P33154N14
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bildik, R., and S. Elekdag. 2004. "Effects of Price Limits on Volatility." <i>Emerging Markets Finance & Trade</i> 40, no. 1 (January-February): 5-34.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Chahine, S. 2007. "Investor Interest, Trading Volume, and the Choice of IPO Mechanism in France." <i>International Review of Financial Analysts</i>, no. 16: 116-135.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Chen, A., and L. Kao. 2006. "The Benefit of Excluding Institutional Investors from Fixed-Price IPOs: Evidence from Taiwan." <i>Emerging Markets Finance & Trade</i> 42, no. 6 (November-December): 5-24.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>     <BIBTEXT> Chen, A.; Y. T. U. Huang; L. Kao; and C. S. Lu. 2009. "Is Underwriter Retention of IPO Shares a Good Substitute for Underwriting Spreads?" <i>Emerging Markets Finance & Trade</i> 45, no. 5 (September-October): 19-30.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Cumming, D. J.; S. A. Johan; and D. Li. 2011. "Exchange Trading Rules and Stock Market Liquidity." <i>Journal of Financial Economics</i> 99, no. 3: 651-671.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>   <BIBTEXT> Easley, D., and M. O'Hara. 2004. "Information and the Cost of Capital." <i>Journal of Finance</i> 59, no. 4: 1553-1583.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Deb, S. S.; P. S. Kalev; and V. B. Marisetty. 2010. "Are Price Limits Really Bad for Equity Markets?" <i>Journal of Banking and Finance</i> 34, no. 10: 2462-2471.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Degeorge, F.; F. Derrien; and K. L. Womack. 2010. "Auctioned IPOs: The U. S. Evidence." <i>Journal of Financial Economics</i> 98, no. 2: 177-194.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Gondat-Larralde, C., and K. R. James. 2008. "IPO Pricing and Share Allocation: The Importance of Being Ignorant." <i>Journal of Finance</i> no. 63: 449-478.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Huang, C.-J., and C.-G. Lin. 2007. "Earnings Management in IPO Lockup and Insider Trading: Evidence from Taiwan." <i>Emerging Markets Finance & Trade</i> 43, no. 5 (September-October): 78-91.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Ibbotson, R. G., and J. F. Jaffe. 1975. "‘Hot Issue’ Markets." <i>Journal of Finance</i> no. 30: 1027-1042.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Jenkinson, T., and H. Jones. 2007. "The Economics of IPO Stabilization, Syndicates and Naked Shorts." <i>European Financial Management</i> no. 13: 616-642.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Kim, K. A., and P. Limpaphayom. 2000. "Characteristics of Stocks That Frequently Hit Price Limits: Empirical Evidence from Taiwan and Thailand." <i>Journal of Financial Markets</i> no. 3: 315-332.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Kim, K. A., and J. Park. 2010. "Why Do Price Limits Exist in Stock Markets? A Manipulation-Based Explanation." <i>European Financial Management</i> 16, no. 2: 296-318.</BIBTEXT>   </REF>      <REF>	<BIBL>15</BIBL>  <BIBTEXT> Kim, K. A., and S. G. Rhee. 1997. "Price Limit Performance: Evidence from the Tokyo Exchange." <i>Journal of Finance</i> 52, no. 2: 885-901.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL> <BIBTEXT> Kim, Y. H., and J. J. Yang. 2009. "Effect of Price Limits: Initial Public Offerings Versus Seasoned Equities." <i>International Review of Economics and Finance</i> 9, no. 3: 295-318.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Kim, Y. H.; J. Yague; and J. J. Yang. 2008. "Relative Performance of Trading Halts and Price Limits: Evidence from the Spanish Stock Exchange." <i>International Review of Economics and Finance</i> 17: 197-215.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	   <BIBTEXT> Lee, J.-S.; C.-T. Kuo; and P.-H. Yen. 2011. "Market States and Initial Returns: Evidence from Taiwanese IPOs." <i>Emerging Markets Finance & Trade</i> 47, no. 2 (March-April): 6-20.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Lin, M.-C., and P.-H. Chou. 2011. "Prospect Theory and the Effectiveness of Price Limits." <i>Pacific-Basin Finance Journal</i> 19, no. 3: 330-349.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	  <BIBTEXT> Loughran, T., and J. R. Ritter. 2004. "Why Has IPO Underpricing Changed Over Time?" <i>Financial Management</i> 33: 5-37.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Ma, C. K.; R. P. Rao; and R. S. Sears. 1989. "Volatility, Price Resolution, and the Effectiveness of Price Limits." <i>Journal of Financial Services Research</i> 3: 165-199.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Pettway, R. H., and T. Kaneko. 1996. "The Effects of Removing Price Limits and Introducing Auctions upon Short-Term IPO Returns: The Case of Japanese IPOs." <i>Pacific-Basin Finance Journal</i> 4: 1241-1258.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Ritter, J. R. 1991. "The Long-Run Performance of Public Offerings." <i>Journal of Finance</i> 46: 3-27.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Ritter, J. R. 2003. "Difference Between European and American IPO Markets." <i>European Financial Management</i> 9: 421-434.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Rock, K. 1986. "Why New Issues Are Underpriced." <i>Journal of Financial Economics</i> 15: 187-212.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Shu, P.-G.; Y.-H. Yeh; and Y.-H. Su. 2009. "Decisions of Initial Public Offering Review Committees: Causes and Consequences." <i>Emerging Markets Finance & Trade</i> 45, no. 3 (March-April): 67-82.</BIBTEXT>   </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S5:p:40-52




Template-Type: ReDIF-Article 1.0
Author-Name: Sagi Akron
Author-X-Name-First: Sagi
Author-X-Name-Last: Akron
Title: Market Reactions to Dividend Announcements Under Different Business Cycles
Abstract:
 In this paper, I examine the impact of business cycles on the market reaction to dividend announcements of large-cap firms in the Tel Aviv Stock Exchange. The findings show that the 2001-7 significant positive first-day dividend announcement reaction is derived from the significantly stronger market reaction during the crisis period of 2001-2. Hence, I conclude that the business cycle is a critical parameter in the investors' interpretation of dividend announcements. During busts, a dividend announcement is perceived as a strong and reliable signal about the state of the corporation, compared to times of normality.
Journal: Emerging Markets Finance and Trade
Pages: 72-85
Issue: 0
Volume: 47 
Year: 2011 
Month: 11
Keywords: dividend announcement reaction, efficient market hypothesis, business cycles
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=KT403022T4882604
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bajaj, M., and A. Vijh. 1995. "Trading Behavior and the Unbiasedness of the Market Reaction to Dividend Announcements." <i>Journal of Finance</i> 50, no. 1: 255-278.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Below, S., and K. H. Johnson. 1996. "An Analysis of Shareholder Reaction to Dividends Announcements in Bull and Bear Markets." <i>Journal of Financial and Strategic Decisions</i> 9, no. 3: 15-26.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Bhattacharya, S. 1979. "Imperfect Information, Dividend Policy, and ‘the Bird in the Hand’ Fallacy." <i>Bell Journal of Economics</i> 10, no. 1: 259-270.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>     <BIBTEXT> Bou Ysás, S., and M. Caýon Costa. 2011. "Fishing in Troubled Waters: The Lull Before the Storm." <i>Eurasian Economic Review</i> 1, no. 1: 51-65.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Brown, S. J., and J. B. Warner. 1980. "Measuring Securities Price Performance." <i>Journal of Financial Economics</i> 8: 205-258.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>   <BIBTEXT> Dasgupta, S.; B. Laplante; and N. Mamingi. 1998. "Capital Market Responses to Environmental Performance in Developing Countries." World Bank Policy Research Working Paper no. 1909, Washington, DC.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Dumas, B. 1994. "A Test of the International CAPM Using Business Cycles Indicators as Instrumental Variables." Working Paper Series no. 4657, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Eades, K. M.; P. J. Hess; and H. E. Kim. 1985. "Market Rationality and Dividend Announcements." <i>Journal of Financial Economics</i> 14: 581-604.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Easton, S., and A. Sinclair. 1989. "The Impact of Unexpected Earnings and Dividends on Abnormal Returns to Equity." <i>Accounting and Finance</i> 29: 1-19.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Gallegati, M.; M. Gallegati; and W. Polasek. 2004. "Business Cycle Fluctuations in Mediterranean Countries." <i>Emerging Markets Finance & Trade</i> 40, no. 6 (November-December): 28-47.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Gombola, M. J., and F-Y. Liu. 1999. "The Signaling Power of Specially Designed Dividends." <i>Journal of Financial and Quantitative Analysis</i> 34: 409-424.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Gordon, M. J. 1959. "Dividend Earning, and Stock Prices." <i>Review of Economics and Statistics</i> 41: 99-105.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Gurgul, H.; R. Mestel; and C. Schleicher. 2003. "Stock Market Reactions to Dividends Announcements: Empirical Evidence from the Austrian Stock Market." <i>Financial Markets and Portfolio Management</i> 17: 332-350.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Kalay, A., and U. Loewenstein. 1985. "Predictable Events and Excess Returns: The Case of Dividend Announcements." <i>Journal of Financial Economics</i> 14: 423-450.</BIBTEXT>   </REF>      <REF>	<BIBL>15</BIBL>  <BIBTEXT> Kato, K., and U. Loewenstein. 1995. "The Ex-Dividend Day Behavior of Stock Prices: The Case of Japan." <i>Review of Financial Studies</i> 8: 816-847.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL> <BIBTEXT> Lee, B. S. 1995. "The Response of Stock Prices to Permanent and Temporary Shocks to Dividends." <i>Journal of Financial and Quantitative Analysis</i> 30: 1-22.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Litzenberger, R., and K. Ramaswamy. 1982. "The Effects of Dividends on Common Stock Prices: Tax Effects or Information Effects?" <i>Journal of Finance</i> 2: 429-443.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Loughlin, P. H. 1982. "The Effect of Dividend Policy on Changes in Stockholders' Wealth." Ph.D. dissertation, Graduate School of Saint Louis University.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Mackinlay, C. 1997. "Event Studies in Economics and Finance." <i>Journal of Economic Literature</i> 35: 13-39.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	  <BIBTEXT> Michaely, R.; R. T. Thaler; and K. L. Womack. 1995. "Price Reactions to Dividend Initiations and Omissions: Overreaction or Drift?" <i>Journal of Finance</i> 50, no. 2: 573-608.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Miller, M. H., and F. Modigliani. 1961. "Dividend Policy, Growth and the Valuation of Shares." <i>Journal of Business</i> 34: 411-433.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Ogden, J. P. 1994. "A Dividend Payment Effect in Stock Returns." <i>Financial Review</i> 29: 345-369.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Peterson, P. P. 1989. "Event Studies: A Review of Issues and Methodology." <i>Quarterly Journal of Business and Economics</i> 28, no. 3: 36-66.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Reddy, Y. S., and Rath, S. 2005. "Disappearing Dividends in Emerging Markets? Evidence from India." <i>Emerging Markets Finance & Trade</i> 41, no. 6 (November-December): 58-82.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Ross, S. A. 1977. "The Determination of Financial Structure: The Incentive Signaling Approach." <i>Bell Journal of Economics</i> 8, no. 1: 23-40.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Shih-Jen, K. H., and C. Wu. 2001. "The Earnings Information Content of Dividend Initiations and Omissions." <i>Journal of Business Finance and Accounting</i> 28, nos. 7-8: 963-977.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Stern, J. 1979. "The Dividend Questions, Opinion Column." <i>Wall Street Journal</i>, July 15.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Stevens, J. L., and M. L. Jose. 1992. "The Effect of Dividend Pay-out. Stability, and Smoothing of Firm Value." <i>Journal of Accounting Auditing and Finance</i> 16: 29-41.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Yoon, P. S., and L. T. Starks. 1995. "Signaling Investment Opportunities, and Dividend Announcements." <i>Review of Financial Studies</i> 8: 995-1018.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S5:p:72-85




Template-Type: ReDIF-Article 1.0
Author-Name: MÃƒÂ¼bariz Hasanov 
Author-X-Name-First: MÃƒÂ¼bariz 
Author-X-Name-Last: Hasanov 
Author-Name: Tolga Omay 
Author-X-Name-First: Tolga 
Author-X-Name-Last: Omay 
Title: The Relationship Between Inflation, Output Growth, and Their Uncertainties: Evidence from Selected CEE Countries 
Abstract:
 In this paper, we examine causal relationships between inflation rate,
 output growth rate, inflation uncertainty, and output uncertainty for ten
 Central and Eastern European transition countries. For this purpose, we
 estimate a bivariate GARCH model that includes output growth and inflation
 rates for each country. Then we use conditional standard deviations of
 inflation and output to proxy nominal and real uncertainty, respectively,
 and perform Granger causality tests. Our results suggest that inflation
 rate induces uncertainty about both inflation rate and output growth rate,
 which is detrimental to real economic activity. At the same time, we find
 that output growth rate reduces macroeconomic uncertainty in some
 countries. In addition, we also examine and discuss causal relationships
 between the remaining variables.
Journal: Emerging Markets Finance and Trade 
Pages: 5-20 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: Granger causality tests, inflation, output growth, transition countries, uncertainty, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M1635621310126U1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ball, L. 1992. "Why
 Does High Inflation Raise Inflation Uncertainty?" >i>Journal of Monetary
 Economics>/i> 29, no. 3: 371-388.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Blackburn, K., and A. Pelloni. 2005.
 "Growth, Cycles and Stabilization Policy." >i>Oxford Economic Papers>/i>
 57 (April): 262-282.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>3</BIBL>        <BIBTEXT> Blanchard, O. 1997. >i>The Economics of
 Post Communist Transition>/i>. Oxford: Clarendon Press.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Bohnec, D. 2003.
 "Impact of EU Enlargement: Challenges for Slovenia's Monetary and Exchange
 Rate Policies." >i>Atlantic Economic Journal>/i> 31, no. 4:
 303-308.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Bollerslev, T. 1990. "Modelling the Coherence in Short-Run
 Nominal Exchange Rates: A Multivariate Generalized ARCH Model." >i>Review
 of Economics and Statistics>/i> 72, no. 3: 498-505.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Campos, N.F., and F.
 Coricelli. 2002. "Growth in Transition: What We Know, What We Don't, and
 What We Should." >i>Journal of Economic Literature>/i> 40, no. 3:
 793-836.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Cukierman, A., and A. Meltzer. 1986. "A Theory of Ambiguity,
 Credibility, and Inflation Under Discretion and Asymmetric Information."
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 Neyapti. 2002. "Central Bank Reform, Liberalization and Inflation in
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 2000. "The Level and Uncertainty of Inflation: Results from OECD
 Forecasts." >i>Economic Inquiry>/i> 38, no. 1: 58-72.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Devereux, M.
 1989. "A Positive Theory of Inflation and Inflation Variance." >i>Economic
 Inquiry>/i> 27, no. 1: 105-116.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>11</BIBL>	<BIBTEXT> Dibooglu, S., and A.M. Kutan. 2005.
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 of Macroeconomics>/i> 27, no. 1: 107-131</BIBTEXT>	 </REF>      <REF> 
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 T. ÃƒÂ‡avuÃ…ÂŸoÃ„ÂŸlu. 2008. "Modelling Inflation Uncertainty in Transition
 Economies: The Case of Russia and the Former Soviet Republics."
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 the Link Between Inflation Rates and Inflation Uncertainty." >i>Journal of
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 C.A. Vegh. 1996. "Stabilisation and Economic Growth in Transition
 Economies: The Early Experience." >i>Journal of Economic Perspectives>/i>
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      <BIBTEXT> Friedman, M. 1968. "The Role of Monetary Policy."
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 2006. "Inflation Uncertainty, Output Growth Uncertainty and Macroeconomic
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 Central and East European Countries: Deeds vs. Words." >i>Journal of
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 "Inflation/Output Variance Trade-Offs and Optimal Monetary Policy."
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 R. 2008. "Note on Ã¢Â€Â˜Growth, Cycles, and Stabilization Policy.Ã¢Â€Â™"
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 Transition Countries." Cardiff Economics Working Paper E2008/25. Cardiff
 Business School, Cardiff, UK.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>24</BIBL>	<BIBTEXT> Gillman, M., and A. Nakov. 2004. "Granger
 Causality of the Inflation-Growth Mirror in Accession Countries."
 >i>Economics of Transition>/i> 12, no. 4: 653-681.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>25</BIBL>	<BIBTEXT> Gomulka, S. 2000.
 >i>Macroeconomic Policies and Achievements in Transition Economies,
 1989-1999>/i>. London: London School of Economics, Centre for Economic
 Performance.</BIBTEXT>      </REF>	 <REF>	      <BIBL>26</BIBL>	   
  <BIBTEXT> Grier, K., and M. Perry. 1998. "On Inflation and Inflation
 Uncertainty in the G7 Countries." >i>Journal of International Money and
 Finance>/i> 17, no. 4: 671-689.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>27</BIBL>	<BIBTEXT> Grier, K., and M. Perry. 2000. "The
 Effects of Real and Nominal Uncertainty on Inflation and Output Growth:
 Some GARCH-M Evidence." >i>Journal of Applied Econometrics>/i> 15, no. 1:
 45-58.</BIBTEXT>      </REF>	   <REF>	<BIBL>28</BIBL>       
 <BIBTEXT> Holland, S. 1995. "Inflation and Uncertainty: Tests for Temporal
 Ordering." >i>Journal of Money, Credit, and Banking>/i> 27, no. 3:
 827-837.</BIBTEXT>	 </REF>      <REF>	  <BIBL>29</BIBL>	
 <BIBTEXT> Kutan, A.M., and T.M. Yigit. 2007. "European Integration,
 Productivity Growth, and Real Convergence." >i>European Economic
 Review>/i> 51, no. 6: 1370-1395.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>30</BIBL>	<BIBTEXT> Logue, D., and R. Sweeney. 1981.
 "Inflation and Real Growth: Some Empirical Results: A Note." >i>Journal of
 Money, Credit, and Banking>/i> 13, no. 4: 497-501.</BIBTEXT>	   </REF>  
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 "Expectations and the Neutrality of Money." >i>Journal of Economic
 Theory>/i>, 4, no. 1: 103-124.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>32</BIBL>	<BIBTEXT> Mladenovic, Z. 2007. "Relationship
 Between Inflation and Inflation Uncertainty: The Case of Serbia." Paper
 presented at the Eighth Balkan Conference on Operational Research,
 Belgrade, Serbia, September 14-17.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>33</BIBL>	<BIBTEXT> Obstfeld, M., and K. Rogoff. 1995. "The
 Mirage of Fixed Exchange Rates." >i>Journal of Economic Perspectives>/i>
 9, no. 4: 73-96.</BIBTEXT>	 </REF>      <REF>	  <BIBL>34</BIBL>  
      <BIBTEXT> Okun, A. 1971. "The Mirage of Steady Inflation."
 >i>Brookings Papers on Economic Activity>/i>, no. 2: 485-498.</BIBTEXT>   
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 1991. "Irreversibility, Uncertainty, and Investment." >i>Journal of
 Economic Literature>/i> 29, no. 3: 1110-1148.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>36</BIBL>	     <BIBTEXT> Susjan, A., and T. Redek.
 2008. "Uncertainty and Growth in Transition Economies." >i>Review of
 Social Economy>/i> 66, no. 2: 209-234.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>37</BIBL>	    <BIBTEXT> Taylor, J. 1979. "Estimation and
 Control of a Macroeconomic Model with Rational Expectations."
 >i>Econometrica>/i> 47, no. 5: 1267-1286.</BIBTEXT>	  </REF>      <REF>
	<BIBL>38</BIBL>        <BIBTEXT> Thornton, J. 2007. "The
 Relationship Between Inflation and Inflation Uncertainty in Emerging
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 858-870.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:5-20




Template-Type: ReDIF-Article 1.0
Author-Name: Grigori FainÃ…Â¡tein 
Author-X-Name-First: Grigori 
Author-X-Name-Last: FainÃ…Â¡tein 
Author-Name: Aleksei NetÃ…Â¡unajev 
Author-X-Name-First: Aleksei 
Author-X-Name-Last: NetÃ…Â¡unajev 
Title: Intra-Industry Trade Development in the Baltic States 
Abstract:
 This paper investigates intra-industry trade (IIT) dynamics for Estonia,
 Latvia, and Lithuania in 1999-2007. IIT is decomposed into its vertical
 and horizontal components based on differences in import and export unit
 values. Results show that shares of IIT have increased within the period,
 with vertical IIT dominating. Shares of total vertical and horizontal IIT
 have grown since 2004, the year of accession to the European Union. Using
 panel data analysis, we estimate three static models and a dynamic model
 of IIT determinants. We find market size to be important in the Baltic
 states for IIT in general and for horizontal IIT in particular. A negative
 relationship between distance and share of IIT is a standard finding.
 Among factor endowment variables, we find difference in human capital to
 be significant in explaining IIT.
Journal: Emerging Markets Finance and Trade 
Pages: 95-110 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: Baltic states, determinants of intra-industry trade, vertical/horizontal intraindustry trade, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M44Q63147R8277M1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Azhar, A., and R.
 Eliott. 2006. "On the Measurement of Product Quality in Intra-Industry
 Trade." >i>Review of World Economics>/i> 142, no. 3: 476-495.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>2</BIBL>	  <BIBTEXT> BrÃƒÂ¼hlart, M.
 2000. "Dynamics of Intra-Industry Trade and Labor-Market Adjustment."
 >i>Review of International Economics>/i> 8, no. 3: 420-435.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> BrÃƒÂ¼hlart, M.
 2008. "An Account of Global Intra-Industry Trade, 1962-2006." Research
 Paper Series, University of Nottingham.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>4</BIBL>	    <BIBTEXT> Crespo, N., and M. Fontoura. 2004.
 "Intra-Industry Trade by Types: What Can We Learn from Portuguese Data?"
 >i>Review of World Economics>/i> 140, no. 1: 52-79.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Falvey, R. 1981.
 "Commercial Policy and Intra-Industry Trade." >i>Journal of International
 Economics>/i> 11, no. 4: 495-511.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>6</BIBL>        <BIBTEXT> Falvey, R., and H. Kierzkowski. 1987.
 "Product Quality, Intra-Industry Trade and (Im)perfect Competition." In
 >i>Protection and Competition in International Trade>/i>, ed. H.
 Kierzkowski, pp. 143-161. Oxford: Basil Blackwell.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>7</BIBL>        <BIBTEXT> FertÃƒÂ¶, I. 2005a.
 "Vertical and Horizontal Intra-Industry Trade in Milk Products in the EU.
 The Northern European Food Industry: Challenges and Transitions from an
 Economic Perspective." Paper presented at the Nordic Association of
 Agricultural Scientists seminar no. 381, Helsinki, Finland, November
 24-25.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT> FertÃƒÂ¶, I. 2005b. "Vertically Differentiated Trade and
 Differences in Factor Endowment: The Case of Agri-Food Products Between
 Hungary and the EU." >i>Journal of Agricultural Economics>/i> 56, no. 1:
 117-134.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> FontagnÃƒÂ©, L., and M. Freudenberg. 1997. "Intra-Industry Trade:
 Methodological Issues Reconsidered." Working paper 97-01, CEPII,
 Paris.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>       
 <BIBTEXT> FontagnÃƒÂ©, L.; M. Freudenberg; and G. Gaulier. 2006. "A
 Systematic Decomposition of World Trade into Horizontal and Vertical IIT."
 >i>Review of World Economics>/i> 142, no. 3: 459-475.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Greenaway, D.;
 R.C. Hine; and C.R. Milner. 1994. >i>Country-Specific Factors and the
 Pattern of Horizontal and Vertical Intra-Industry Trade in the UK>/i>.
 Adelaide: University of Adelaide.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>12</BIBL>	<BIBTEXT> Greenaway, D.; R.C. Hine; and C.R.
 Milner. 1995. "Vertical and Horizontal Intra-Industry Trade: A
 Cross-Industry Analysis for the United Kingdom." >i>Economic Journal>/i>
 105, no. 433: 1505-1518.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>13</BIBL>	<BIBTEXT> Grubel, H.G., and P.J. Lloyd. 1975.
 >i>Intra-Industry Trade. The Theory and Measurement of International Trade
 in Different Products>/i>. London: Macmillan.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT> Janda, K., and D. MÃƒÂ¼nich.
 2004. "The Intra-Industry Trade of the Czech Republic in the Economic
 Transition." >i>Emerging Markets Finance & Trade>/i> 40, no. 2:
 27-50.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>       
 <BIBTEXT> Kandogan, Y. 2003. "Intra-industry Trade of Transition
 Countries: Trends and Determinants." >i>Emerging Markets Review>/i> 4:
 273-286.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT> Krugman, P. 1979. "Increasing Returns, Monopolistic Competition,
 and International Trade." >i>Journal of International Economics>/i> 9, no.
 4: 469-479.</BIBTEXT>	    </REF>	<REF>	     <BIBL>17</BIBL>	   
 <BIBTEXT> Lancaster, K. 1980. "Intra-Industry Trade Under Perfect
 Monopolistic Competition." >i>Journal of International Economics>/i> 10,
 no. 2: 151-175.</BIBTEXT>	</REF>	    <REF>	 <BIBL>18</BIBL>   
     <BIBTEXT> Mardas D., and C. Nikas. 2008. "European Integration,
 Intra-Industry Trade in Vertically Differentiated Products and the Balkan
 Countries." >i>International Advances in Economic Research>/i> 14, no. 4:
 355-368.</BIBTEXT>	 </REF>      <REF>	  <BIBL>19</BIBL>	
 <BIBTEXT> Nilsson, L. 1997. "The Measurement of Intra-Industry Trade
 Between Unequal Partners." >i>Review of World Economics>/i> 133, no. 3:
 554-565.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT> Nilsson, L. 1999. "The Measurement of Intra-Industry Trade
 Between Unequal Partners: The EU and the Developing Countries." >i>Review
 of World Economics>/i> 135, no. 1: 102-127.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT> Stiglitz, J. 1987. "The
 Causes and the Consequences of the Dependence of Quality on Price."
 >i>Journal of Economic Literature>/i> 25, no. 1: 1-48.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT> Veeramani, C.
 2001. "India's Intra-Industry Trade Under Economic Liberalization: Trends
 and Country Specific Factors." Working Paper no. 313, Centre for
 Development Studies.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>23</BIBL>	<BIBTEXT> Verdoorn, P.J. 1960. "The Intra-Bloc
 Trade of Benelux." In >i>Economic Consequences of the Size of Nations>/i>,
 ed. E. Robinson, pp. 291-329. London: Macmillan.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:95-110




Template-Type: ReDIF-Article 1.0
Author-Name: Daniel StavÃƒÂ¡rek 
Author-X-Name-First: Daniel 
Author-X-Name-Last: StavÃƒÂ¡rek 
Title: Comparison of Exchange Market Pressure Across the New Part of the European Union 
Abstract:
 In this paper, we choose the correct model specification for eight
 European Union new member states (NMS) to estimate the exchange market
 pressure (EMP) for the period 1995-2009. The results suggest that the
 growth of domestic credit and the money multiplier had a significantly
 positive effect on EMP. Furthermore, EMP in many NMS was determined by
 foreign disturbances, namely, the eurozone's money supply, foreign capital
 inflow, and interest rate differential. EMP in most NMS with a flexible
 exchange rate regime was primarily absorbed by changes in international
 reserves. Along with fundamentally stable EMP development in recent years,
 this forms a solid basis for potential fulfillment of the exchange rate
 stability convergence criterion.
Journal: Emerging Markets Finance and Trade 
Pages: 21-39 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: determinants, exchange market pressure, Girton-Roper model, new EU member states, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=MH861267341478V4 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Anastasatos, T., and C.
 Manou. 2008. "Speculative Attacks on the Drachma and the Changeover to the
 Euro." >i>Economic Bulletin>/i> 31, no. 1: 49-77.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>2</BIBL>	      <BIBTEXT> Asteriou, D., and S.G.
 Hall. 2007. >i>Applied Econometrics. A Modern Approach>/i>. Houndmills,
 UK: Palgrave Macmillan.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>3</BIBL>        <BIBTEXT> Bahmani-Oskooee, M., and D.J. Bernstein.
 1999. "Exchange Market Pressure During the Current Managed Float."
 >i>Applied Economics Letters>/i> 6, no. 9: 585-588.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Bertolli, S.; G.M. Gallo;
 and G. Ricchiuti. 2010. "Exchange Market Pressure: Some Caveats in
 Empirical Applications." >i>Applied Economics>/i> 42, no. 19:
 2435-2448.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL>	 
 <BIBTEXT> Bielecki, S. 2005. "Exchange Market Pressure and Domestic Credit
 Evidence from Poland." >i>Poznan University of Economics Review>/i> 5, no.
 1: 20-36.</BIBTEXT>	  </REF>      <REF>	   <BIBL>6</BIBL>	
 <BIBTEXT> Davidson, R., and J.G. MacKinnon. 1981. "Several Tests for Model
 Specification in the Presence of Alternative Hypotheses."
 >i>Econometrica>/i> 49, no. 3: 791-793.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>7</BIBL>	    <BIBTEXT> Eichengreen, B.J.; A.K. Rose; and C.
 Wyplosz. 1994. "Speculative Attacks on Pegged Exchange Rates: an Empirical
 Exploration with Special Reference to the European Monetary System."
 Working Paper no. 4898, National Bureau of Economic Research, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>	  
 <BIBTEXT> Eichengreen, B.J.; A.K. Rose; and C. Wyplosz. 1995. "Exchange
 Market Mayhem: The Antecedents and Aftermath of Speculative Attacks."
 >i>Economic Policy>/i> 10, no. 21: 249-312.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Girton, L., and D.E. Roper.
 1977. "A Monetary Model of Exchange Market Pressure Applied to the Postwar
 Canadian Experience." >i>American Economic Review>/i> 67, no. 4:
 537-548.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Hegerty, S.W. 2009. "Capital Inflows, Exchange Market Pressure,
 and Credit Growth in Four Transition Economies with Fixed Exchange Rate."
 >i>Economic Systems>/i> 33, no. 2: 155-167.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Maret, V. 2009. "Exchange
 Market Pressure and the Role of Institutions in the New EU Members, EU
 Candidates and Potential Candidates." >i>Les Cahiers de Recherche>/i> 11
 (April): 249-282.</BIBTEXT>	  </REF>      <REF>	   <BIBL>12</BIBL> 
       <BIBTEXT> Mirdala, R. 2008. "Exchange Rate and Output Vulnerability
 to Macroeconomic Shocks in Selected CEECs (SVAR Approach)." >i>EkonomickÃƒÂ½
 Ã„Âasopis>/i> 56, no. 8: 745-763.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>13</BIBL>	<BIBTEXT> Mizon, G.E., and J.F. Richard. 1986. "The
 Encompassing Principle and Its Application to Non-Nested Hypotheses."
 >i>Econometrica>/i> 54, no. 3: 657-678.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>14</BIBL>	     <BIBTEXT> Moreno, R. 1995. "Macroeconomic
 Behavior During Periods of Speculative Pressure on Realignment: Evidence
 from Pacific Basin Economies." >i>Economic Review>/i> 3: 3-16.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>15</BIBL>	    <BIBTEXT> Pollard, S.K.
 1999. "Foreign Exchange Market Pressure and Transmission of International
 Disturbances: The Case of Barbados, Guyana, Jamaica, and Trinidad and
 Tobago." >i>Applied Economics Letters>/i> 6, no. 1: 1-4.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Pontines, V.,
 and R. Siregar. 2006. "Fundamental Pitfalls of Exchange Market
 Pressure-Based Approaches to Identification of Currency Crises."
 >i>International Review of Economics and Finance>/i> 17, no. 3:
 345-365.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Sachs, J.D.; A. Tornell; and A. Velasco. 1996. "Financial Crises
 in Emerging Markets: The Lessons from 1995." >i>Brooking Papers on
 Economic Activity>/i> 1: 147-215.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>18</BIBL>	<BIBTEXT> Sideris, D. 2006. "Purchasing Power
 Parity in Economies in Transition: Evidence from Central and East European
 Countries." >i>Applied Financial Economics>/i> 16, nos. 1-2:
 135-143.</BIBTEXT>	 </REF>      <REF>	  <BIBL>19</BIBL>	
 <BIBTEXT> StavÃƒÂ¡rek, D. 2006. "Exchange Market Pressure Before Entering
 the ERM II: The Case of Central European Countries." >i>Amfiteatru
 Economic>/i> 8, no. 19: 34-39.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>20</BIBL>	<BIBTEXT> StavÃƒÂ¡rek, D. 2010a. "Investigation of
 Exchange Market Pressure in Central European Countries Using the
 Girton-Roper Model." >i>Economic Computation and Economic Cybernetics
 Studies and Research>/i> 44, no. 2: 19-32.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT> StavÃƒÂ¡rek, D. 2010b.
 "Exchange Market Pressure and De Facto Exchange Rate Regime in the
 Euro-Candidates." >i>Romanian Journal for Economic Forecasting>/i> 13, no.
 2: 119-139.</BIBTEXT>	    </REF>	<REF>	     <BIBL>22</BIBL>	   
 <BIBTEXT> Van Poeck, A.; J. Vanneste; and M. Veiner. 2007. "Exchange Rate
 Regimes and Exchange Market Pressure in the New EU Member States."
 >i>Journal of Common Market Studies>/i> 45, no. 2: 459-485.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT> Weymark, D.N.
 1995. "Estimating Exchange Market Pressure and the Degree of Exchange
 Market Intervention for Canada." >i>Journal of International Economics>/i>
 39, nos. 3-4: 273-295.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>24</BIBL>	<BIBTEXT> Wohar, M.E., and B.S. Lee. 1992. "An
 Application of the Girton-Roper Monetary Model of Exchange Market
 Pressure: The Japanese Experience, 1959-1991." >i>Rivista Internazionale
 di Science Economiche e Commerciali>/i> 39, no. 12: 993-1013.</BIBTEXT>   
   </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:21-39




Template-Type: ReDIF-Article 1.0
Author-Name: Yiwei Fang
Author-X-Name-First: Yiwei
Author-X-Name-Last: Fang
Author-Name: Iftekhar Hasan
Author-X-Name-First: Iftekhar
Author-X-Name-Last: Hasan
Author-Name: Katherin Marton
Author-X-Name-First: Katherin
Author-X-Name-Last: Marton
Title: Institutional Development and Its Impact on the Performance Effect of Bank Diversification: Evidence from Transition Economies
Abstract:
 This paper investigates the performance impact of bank diversification on loan and asset portfolios in transition economies. We find that asset diversification is associated positively and loan diversification negatively with bank performance. We also examine the relationship between institutional changes and the performance impact of bank diversification. Our results indicate that different types of institutional reforms play different roles. Banking liberalization and corporate governance restructuring significantly enhance profit gains from loan and asset diversification. Legal reforms, however, tend to reduce profit gains and usually entail a diversification discount. Our findings on the differential impact of various institutional measures on bank performance contribute to a better understanding of the role of institutional reforms of the past two decades in transition countries.
Journal: Emerging Markets Finance and Trade
Pages: 5-22
Issue: 0
Volume: 47 
Year: 2011 
Month: 9
Keywords: diversification, institutional reforms, transition banking
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V06771U4607RQ106
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Acharya, V.V.; I. Hasan; and A. Saunders. 2006. "Should Banks Be Diversified? Evidence from Individual Bank Loan Portfolios." <i>Journal of Business</i> 79: 1355-1412.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Amihud, Y., and B. Lev. 1981. "Risk Reduction as a Managerial Motive for Conglomerate Mergers." <i>Bell Journal of Economics</i> 12: 605-617.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Arellano, M., and S. Bond. 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations." <i>Review of Economic Studies</i> 58: 77-98.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>     <BIBTEXT> Arrelano, M., and O. Bover. 1995. "Another Look at the Instrumental Variables Estimation of Error Components Models." <i>Journal of Econometrics</i> 68: 29-51.</BIBTEXT>	    </REF>	<REF>	   <BIBL>5</BIBL>  <BIBTEXT> Barth, J.R.; B. Caprio; and R. Levine. 2001. "Banking Systems Around the Globe: Do Regulation and Ownership Affect Performance and Stability?" In <i>Prudential Regulation and Supervision: What Works and What Doesn't</i>, ed. F. Mishkin, pp. 31-88. Chicago: University of Chicago Press.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>	 <BIBTEXT> Barth, J.R.; B. Caprio; and R. Levine. 2004. "Bank Regulation and Supervision: What Works Best?" <i>Journal of Financial Intermediation</i> 13: 205-248.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Barth, J.R.; B. Caprio; and R. Levine. 2008. "Bank Regulations Are Changing: For Better or Worse?" <i>Comparative Economic Studies</i> 50: 537-563.</BIBTEXT> </REF>      <REF>   <BIBL>8</BIBL>	<BIBTEXT> Berger, A.N.; I. Hasan; and M. Zhou. 2010. "The Effects of Focus Versus Diversification on Bank Performance: Evidence from Chinese Banks." <i>Journal of Banking and Finance</i> 34, no. 7: 1417-1435.</BIBTEXT>	    </REF>	<REF>	    <BIBL>9</BIBL>	<BIBTEXT> Berger, A.N.; J.D. Cummins; M.A. Weiss; and H. Zi. 2000. "Conglomeration Versus Strategic Focus: Evidence from the Insurance Industry." <i>Journal of Financial Intermediation</i> 9: 323-362.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Berger, P., and E. Ofek. 1995. "Diversification's Effect on Firm Value." <i>Journal of Financial Economics</i> 37: 39-65.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>	<BIBTEXT> Blundell, R., and S. Bond. 1998. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models." <i>Journal of Econometrics</i> 87: 115-143.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Bonin, J.P.; I. Hasan; and P. Wachtel. 2005. "Bank Performance, Efficiency and Ownership in Transition Countries." <i>Journal of Banking and Finance</i> 29, no. 1: 31-53.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Boot, A., and A. Schmeits. 2000. 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"How Law Affects Lending." <i>Review of Financial Studies</i> 23: 549-580.</BIBTEXT>	  </REF>      <REF>	  <BIBL>22</BIBL>	<BIBTEXT> Iskandar-Datta, M., and R. McLaughlin. 2005. "Global Diversification: New Evidence from Corporate Operating Performance." Working paper, Wayne State University, School of Business Administration, Detroit.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>  <BIBTEXT> Jensen, M. 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers." <i>American Economic Review</i> 76: 323-329.</BIBTEXT>    </REF>    <REF>	  <BIBL>24</BIBL>  <BIBTEXT> Jensen, M., and W. Meckling. 1976. "Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure." <i>Journal of Financial Economics</i> 3: 305-360.</BIBTEXT>    </REF>   <REF>	    <BIBL>25</BIBL>	  <BIBTEXT> Khanna, T., and K. Palepu. 2000. "Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups." <i>Journal of Finance</i> 55, no. 2: 867-892.</BIBTEXT>	  </REF>      <REF>	  <BIBL>26</BIBL>	<BIBTEXT> Khanna, T.; K. Palepu; and J. Sinha. 2005. "Strategies That Fit Emerging Markets." <i>Harvard Business Review</i> (June): 63-76.</BIBTEXT>	 </REF>      <REF>	<BIBL>27</BIBL>    <BIBTEXT> Klein, P., and M. Saidenberg. 1998. "Diversification, Organization, and Efficiency: Evidence from Bank Holding Companies." Working paper, Federal Reserve Bank of New York.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>     <BIBTEXT> Koetter, M.; and J. Kolari; and L. Spierdijk. 2008. "Efficient Competition? Testing the Quiet Life of US Banks with Adjusted Lerner Indices." Paper presented at the Forty-Fourth Bank Structure and Competition Conference, Federal Reserve Bank of Chicago.</BIBTEXT>	    </REF>	<REF>	   <BIBL>29</BIBL>  <BIBTEXT> Kumbhakar, S., and C.A.K. 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"International Evidence on the Value of Corporate Diversification." <i>Journal of Finance</i> 54: 2215-2239.</BIBTEXT>   </REF>     <REF>	 <BIBL>35</BIBL>	<BIBTEXT> Peng, M.W., and P. Heath. 1996. "The Growth of the Firm in Planned Economies in Transition: Institutions, Organizations, and Strategic Choice." <i>Academy of Management Review</i> 21, no. 2: 492-528.</BIBTEXT>	</REF>	    <REF>	<BIBL>36</BIBL>       <BIBTEXT> Pistor, K.; M. Raiser; and S. Gelfer. 2000. "Law and Finance in Transition Economies." <i>Economics of Transition</i> 8, no. 2: 325-368.</BIBTEXT>	 </REF>      <REF>	<BIBL>37</BIBL>	 <BIBTEXT> Rajan, R. 1992. "Insiders and Outsiders: The Choice Between Relationship and Arm's Length Debt." <i>Journal of Finance</i> 47: 1367-1400.</BIBTEXT>    </REF>	<REF>	 <BIBL>38</BIBL>	<BIBTEXT> Saunders, A., and I. Walter. 1994. <i>Universal Banking in the United States: What Could We Gain? 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Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S4:p:5-22




Template-Type: ReDIF-Article 1.0
Author-Name: Aaro Hazak 
Author-X-Name-First: Aaro 
Author-X-Name-Last: Hazak 
Author-Name: Urve Venesaar 
Author-X-Name-First: Urve 
Author-X-Name-Last: Venesaar 
Title: Guest Editors' Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 0S3 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V3547H2T306757H8 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S3:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Heeho Kim
Author-X-Name-First: Heeho
Author-X-Name-Last: Kim
Author-Name: JooEun Cho
Author-X-Name-First: JooEun
Author-X-Name-Last: Cho
Title: A Test of the Revised Interest Parity in China and Asian Emerging Markets
Abstract:
 This paper explored and tested the risk-adjusted uncovered interest parity model to investigate the degree of capital mobility in the United States, Japan, the United Kingdom, and four East Asian emerging markets relative to China from January 1994 to July 2008. Evidence was found to strongly support our hypotheses; market risk was significant for capital flows in the Chinese capital market, while the relationship between returns and the appreciation rate of the exchange rate were divided between the Asian emerging markets and the developed economies, depending on the directions of capital flows.
Journal: Emerging Markets Finance and Trade
Pages: 23-41
Issue: 0
Volume: 47 
Year: 2011 
Month: 9
Keywords: Chinese capital market, portfolio equity flows, revised uncovered interest parity, risk
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W324G66250K445L7
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alper, C.; O. Ardic; and S. Fendoglu. 2009. "The Economics of the Uncovered Interest Parity Condition for Emerging Markets." <i>Journal of Economic Surveys</i> 23, no. 1: 115-138.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Bansal, R., and M. Dahlquist. 2000. "The Forward Premium Puzzle: Different Tales from Developed and Emerging Economies." <i>Journal of International Economics</i> 51, no. 1: 115-144.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Bekaert, G., C. Harvay; and R. Lumsdaine. 2002. "Dating the Integration of World Equity Markets." <i>Journal of Financial Economics</i> 62, no. 2: 203-247.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>     <BIBTEXT> Bineau, Y. 2010. "Renminbi's Misalignment: A Meta-Analysis." <i>Economic Systems</i> 34, no. 3: 259-269.</BIBTEXT>	    </REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Chinn, M. 2006. "The Rehabilitation of Interest Parity in the Floating Rate Era: Longer Horizons, Alternative Expectations, and Emerging Markets." <i>Journal of International Money and Finance</i> 25, no. 1: 7-21.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>	 <BIBTEXT> Chinn, M., and G. Meredith. 2004. "Monetary Policy and Long Horizon Uncovered Interest Parity." <i>IMF Staff Papers</i> 51, no. 3 (November): 409-430.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chordia, T.; R. Roll; and A. Subrahmanyam. 2001. "Market Liquidity and Trading Activity." <i>Journal of Finance</i> 56, no. 2: 501-530.</BIBTEXT> </REF>      <REF>   <BIBL>8</BIBL>	<BIBTEXT> Cuestas, J., and B. Harrison. 2010. "Further Evidence on the Real Interest Rate Parity Hypothesis in Central and East European Countries: Unit Roots and Nonlinearities." <i>Emerging Markets Finance and Trade</i> 46, no. 6: 22-39.</BIBTEXT>	    </REF>	<REF>	    <BIBL>9</BIBL>	<BIBTEXT> Engel, C. 1996. "The Forward Discount Anomaly and the Risk Premium: A Survey of Recent Evidence." <i>Journal of Empirical Finance</i> 3, no. 1: 123-192.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Ferreira, A., and M. Leon-Ledesma. 2007. "Does the Real Interest Rate Parity Hold? Evidence for Emerging and Developing Countries." <i>Journal of International Money and Finance</i> 26, no. 3: 364-382.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Flood, R., and A. Rose. 1996. "Fixes: Of the Forward Discount Puzzle." <i>Review of Economics and Statistics</i> 78, no. 4: 748-752.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Flood, R., and A. Rose. 2002. "Uncovered Interest Parity in Crisis." <i>IMF Staff Papers</i> 49, no. 2: 252-266.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Froot, K., and R. Thaler. 1990. "Anomalities: Foreign Exchange." <i>Journal of Economic Perspectives</i> 4, no. 3: 179-192.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Goh, S.; G. Lim; and N. Olekalns. 2006. "Deviations from the Uncovered Interest Parity in Malaysia." <i>Applied Financial Economics</i> 16, no. 10: 745-759.</BIBTEXT>   </REF>      <REF>	  <BIBL>15</BIBL>   <BIBTEXT> Hau, H., and H. Rey. 2004. "Can Portfolio Rebalancing Explain the Dynamics of Equity Returns, Equity Flows, and Exchange Rates?" <i>American Economic Review</i> 96, no. 2: 126-133.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL> <BIBTEXT> Hau, H., and H. Rey. 2006. "Exchange Rates, Equity Prices, and Capital Flows." <i>Review of Financial Studies</i> 19, no. 1: 273-317.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Huang, Y., and F. Guo. 2006. "An Empirical Examination of Capital Mobility in East Asia Emerging Markets." <i>Global Economic Review</i> 35, no. 1: 97-111.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	   <BIBTEXT> Lewis, K. 1995. "Puzzles in International Financial Markets." In <i>The Handbook of International Economics, Vol. 3: 1913-1971</i>, ed. G. Grossman and K. Logoff, ch. 37. Amsterdam: Elsevier Science.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Martin, P., and H. Rey. 2004. "Financial Super-Markets: Size Matters for Asset Trade." <i>Journal of International Economics</i> 64, no. 2: 335-361.</BIBTEXT>     </REF>      <REF>	  <BIBL>20</BIBL>	<BIBTEXT> Newey, W., and K. West. 1987. "A Simple, Positive Semi-Definite Heteroscedasticity and Autocorrelation Consistent Covariance Matrix." <i>Econometrica</i> 55, no. 3: 703-708.</BIBTEXT>      </REF>	<REF>	    <BIBL>21</BIBL>	  <BIBTEXT> People's Bank of China. 2008. "China: The Evolution of Foreign Exchange Controls and the Consequences of Capital Flows." Working Paper no. 44, Bank for International Settlements, Basel.</BIBTEXT>	  </REF>      <REF>	  <BIBL>22</BIBL>	<BIBTEXT> Phillips, P., and P. Perron. 1988. "Testing for a Unit Root in Time Series Regression." <i>Biometrika</i> 75, no. 2: 335-346.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>  <BIBTEXT> Poghosyan, T.; E. Kocenda; and P. Zemcik. 2008. "Modeling Foreign Exchange Risk Premium in Armenia." <i>Emerging Markets Finance and Trade</i> 44, no. 1: 41-61.</BIBTEXT>    </REF>    <REF>	  <BIBL>24</BIBL>  <BIBTEXT> Portes, R., and H. Rey. 2005. "The Determinants of Cross-Border Equity Flows." <i>Journal of International Economics</i> 65, no. 2: 269-296.</BIBTEXT>    </REF>   <REF>	    <BIBL>25</BIBL>	  <BIBTEXT> Sachsida, A.; R. Ellery Jr.; and J. Teixeira. 2001. "Uncovered Interest Rate Parity and the Peso Problem: The Brazilian Case." <i>Applied Economics Letters</i> 8, no. 3: 179-181.</BIBTEXT>	  </REF>      <REF>	  <BIBL>26</BIBL>	<BIBTEXT> Sarno, L. 2005. "Towards a Solution to the Puzzles in Exchange Rate Economics: Where Do We Stand?" <i>Canadian Journal of Economics</i> 38, no. 3: 673-708.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S4:p:23-41




Template-Type: ReDIF-Article 1.0
Author-Name: Sung C. Bae 
Author-X-Name-First: Sung C. 
Author-X-Name-Last: Bae 
Author-Name: Mingsheng Li 
Author-X-Name-First: Mingsheng 
Author-X-Name-Last: Li 
Author-Name: Jing Shi 
Author-X-Name-First: Jing 
Author-X-Name-Last: Shi 
Title: Heterogeneous Investors' Reaction to Exchange Rate Movements: New Evidence from a Unique Emerging Market 
Abstract:
 Previous studies find mixed results on the relation between exchange rate
 movements and stock returns. We revisit the issue by exploring the effect
 of market efficiency and heterogeneous investors' reaction to exchange
 rate changes using the unique event of Chinese currency appreciation. Our
 results show that different investor groups react differently to exchange
 rate appreciation. In addition, we find that investors with limited
 investment opportunities react more positively to exchange rate
 appreciation. Our results suggest that the issues of market efficiency and
 the differences among investors are important factors to consider when one
 analyzes the relation between exchange rate movements and stock returns.
Journal: Emerging Markets Finance and Trade 
Pages: 7-22 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: Chinese stock market, foreign exchange rate, market efficiency, price discounts, stock returns, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W4L1P602Q5486556 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bae, S. C.; T. H. Kwon;
 and M. Li. 2008. "Foreign Exchange Rate Exposure and Risk Premium in
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 and Evidence." >i>Review of Financial Studies>/i> 8, no. 4:
 1019-1057.</BIBTEXT>	   </REF>      <REF>	    <BIBL>24</BIBL>	  
 <BIBTEXT> Sun, Q., and W. Tong. 2000. "The Effect of Market Segmentation
 on Stock Prices: The China Syndrome." >i>Journal of Banking and
 Finance>/i> 24, no. 12: 1875-1902.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>25</BIBL>	<BIBTEXT> Wang S. S., and L. Jiang. 2004. "Location
 of Trade, Ownership Restrictions, and Market Illiquidity: Examining
 Chinese A- and H-Shares." >i>Journal of Banking and Finance>/i> 28, no. 6:
 1273-1297.</BIBTEXT>	   </REF>      <REF>	    <BIBL>26</BIBL>	  
 <BIBTEXT> Williamson, R. 2001. "Exchange Rate Exposure and Competition:
 Evidence from the Automotive Industry." >i>Journal of Financial
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 <BIBL>27</BIBL>	<BIBTEXT> Yang, J. 2003. "Market Segmentation and
 Information Asymmetry in Chinese Stock Markets: A VAR Analysis."
 >i>Financial Review>/i> 38, no. 4: 591-609.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>28</BIBL>	     <BIBTEXT> Zhang, Z. 2001. "Real
 Exchange Rate Misalignment in China: An Empirical Investigation."
 >i>Journal of Comparative Economics>/i> 29, no. 1: 80-94.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>29</BIBL>	 <BIBTEXT> Zhou, H.;
 Geppert, J.; and D. Kong. 2010. "An Anatomy of Trading Strategies:
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 (March-April): 66-79.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:7-22




Template-Type: ReDIF-Article 1.0
Author-Name: Imad Moosa 
Author-X-Name-First: Imad 
Author-X-Name-Last: Moosa 
Author-Name: Larry Li 
Author-X-Name-First: Larry 
Author-X-Name-Last: Li 
Title: Technical and Fundamental Trading in the Chinese Stock Market: Evidence Based on Time-Series and Panel Data 
Abstract:
 Time-series and panel data are used to provide empirical evidence on
 technical and fundamental trading in the Chinese stock market. An
 econometric model is used to differentiate between the effect on stock
 prices of the actions of traders who act on the basis of fundamental
 analysis (financial ratios) and those acting on the basis of technical
 analysis. The model is estimated using monthly data on the stock prices of
 100 companies listed on the Shanghai Stock Exchange. The results obtained
 from time series regressions show mixed results for the effectiveness of
 fundamental trading and overwhelming support for the effectiveness of
 technical trading. However, panel regressions show that both technical and
 fundamental trading have roles to play in determining stock prices, but
 technical trading is more effective.
Journal: Emerging Markets Finance and Trade 
Pages: 23-31 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: Chinese stock market, fundamental analysis, technical trading rules, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W57Q87502616U640 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Al-Muraikhi, H. 2005.
 "Speculation in Emerging Financial Markets: The Case of the Kuwait Stock
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 (May-June): 35-55.</BIBTEXT>	   </REF>      <REF>	    <BIBL>4</BIBL> 
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 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Huang, A. G.,
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 <BIBL>13</BIBL>	<BIBTEXT> Kirman, A. 1991. "Epidemics of Opinion
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 S. Y. Lee; and N. Kiseok. 2009. "Profitability of Nonlinear Dynamics Under
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 13-35.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>       
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 <BIBL>17</BIBL>	<BIBTEXT> McKenzie, M. D. 2007. "Technical Trading
 Rules in Emerging Markets and the 1997 Asian Currency Crises." >i>Emerging
 Markets Finance & Trade>/i> 43, no. 4 (July-August): 46-73.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Mizon, G. E.,
 and J. F. Richard. 1986. "The Encompassing Principle and Its Application
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 <BIBTEXT> Mok, H. M. K., and Y. V. Hui. 1998. "Underpricing and After
 Market Performance of IPOs in Shanghai, China." >i>Pacific-Basin Financial
 Journal>/i> 6, no. 5: 453-474.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>20</BIBL>	<BIBTEXT> Moosa, I., and N. Al-Loughani. 2003. "The
 Role of Fundamentalists and Technicians in the Foreign Exchange Market
 When the Domestic Currency Is Pegged to a Basket." >i>Applied Financial
 Economics>/i> 13, no. 2: 79-84.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>21</BIBL>	<BIBTEXT> Moosa, I., and M. Korczak. 2000. "The
 Role of Fundamentalists and Technicians in Exchange Rate Determination."
 >i>Economia Internazionale>/i> 53, no. 1: 97-106.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>22</BIBL>        <BIBTEXT> Nieh, C. C., and H. Y.
 Yau. 2010. "The Impact of Renminbi Appreciation on Stock Prices in China."
 >i>Emerging Markets Finance & Trade>/i> 46, no. 1 (January-February):
 16-26.</BIBTEXT>      </REF>	   <REF>	<BIBL>23</BIBL>       
 <BIBTEXT> Odean, T. 1998. "Are Investors Reluctant to Realize Their
 Losses?" >i>Journal of Finance>/i> 53, no. 5: 1775-1798.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>24</BIBL>	 <BIBTEXT> Pan, H.; X. Xia;
 and M. Yu. 2008. "Expropriation: Evidence from Rights Issues in China."
 >i>Emerging Markets Finance & Trade>/i> 44, no. 1 (January-February):
 5-20.</BIBTEXT>      </REF>	  <REF>        <BIBL>25</BIBL>	     
 <BIBTEXT> Pesaran, M. H. 1974. "On the General Problem of Model
 Selection." >i>Review of Economic Studies>/i> 41, no. 2:
 153-171.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
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 4.0: Interactive Econometric Analysis.>/i> Oxford: Oxford University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>27</BIBL>       
 <BIBTEXT> Petersen, M. A. 2009. "Estimating Standard Errors in Finance
 Panel Data Sets: Comparing Approaches." >i>Review of Financial Studies>/i>
 22, no. 1: 435-480.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>28</BIBL>	<BIBTEXT> Vigfusson, R. 1997. "Switching Between
 Chartists and Fundamentalists: A Markov Regime-Switching Approach."
 >i>International Journal of Finance and Economics>/i> 2, no. 4:
 291-305.</BIBTEXT>	 </REF>      <REF>	  <BIBL>29</BIBL>	
 <BIBTEXT> Xu, X. E. 2005. "Performance of Securities Investment Funds in
 China." >i>Emerging Markets Finance & Trade>/i> 41, no. 5
 (September-October): 28-42.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>30</BIBL>	<BIBTEXT> Zhou, H.; J. Geppert; and D. Kong. 2010.
 "An Anatomy of Trading Strategies: Evidence from China." >i>Emerging
 Markets Finance & Trade>/i> 46, no. 2 (March-April): 66-79.</BIBTEXT>	   
 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:23-31




Template-Type: ReDIF-Article 1.0
Author-Name: Yongyang Su 
Author-X-Name-First: Yongyang 
Author-X-Name-Last: Su 
Author-Name: Lan Zheng 
Author-X-Name-First: Lan 
Author-X-Name-Last: Zheng 
Title: The Impact of Securities Transaction Taxes on the Chinese Stock Market 
Abstract:
 This paper analyzes the impact of changes in the securities transaction
 tax (STT) rate on the local A-share market in China. We find that, on
 average, a 22-basis-point increase in the STT rate is associated with
 about a 28 percent drop in trading volume, and a 17-basis-point reduction
 in the STT rate is associated with about an 89 percent increase in trading
 volume in the Chinese A-share market. Both increases and reductions in the
 STT rate result in significant increases in market volatility. In
 addition, increases in the STT rate have mixed effects on market
 efficiency, either improving or curbing it. Reductions usually either make
 the market less efficient or have no effect on it. The empirical results
 show that levying the STT on trading is not an effective tool to regulate
 the stock market, at least not in this emerging market.
Journal: Emerging Markets Finance and Trade 
Pages: 32-46 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: market volatility, securities transaction tax, stock market, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W775475358M18NL4 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baltagi, H. B.; D. Li;
 and Q. Li. 2006. "Transaction Tax and Stock Market Behavior: Evidence from
 an Emerging Market." >i>Empirical Economics>/i> 31, no. 2:
 393-408.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Brown, M. B., and A. B. Forsythe. 1974 "Robust Tests for the
 Equality of Variances." >i>Journal of the American Statistical
 Association>/i> 69 (June): 364-367.</BIBTEXT>	    </REF>	<REF>	   
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 "Securities Transaction Taxes: What About International Experiences and
 Migrating Markets?" In >i>Securities Transaction Taxes: False Hopes and
 Unintended Consequences>/i>, ed. Catalyst Institute, pp. 110-142. Burr,
 IL: Irwin.</BIBTEXT>	   </REF>      <REF>	    <BIBL>4</BIBL>	 
 <BIBTEXT> Chan, K.; J. A. Menkveld; and Z. Yang. 2008. "Information
 Asymmetry and Asset Prices: Evidence from the China Foreign Share
 Discount." >i>Journal of Finance>/i> 63, no. 1: 159-196.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Chiang, S. M.; C.
 P. Yeh; and C. L. Chiu. 2009. "Permanent and Transitory Components in the
 Chinese Stock Market: The ARJI-Trend Model." >i>Emerging Markets Finance &
 Trade>/i> 45, no. 3 (May-June): 35-55.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>6</BIBL>	   <BIBTEXT> Chou, R., and G. Wang, G. 2006.
 "Transaction Tax and Market Quality of the Taiwan Stock Index Futures."
 >i>Journal of Futures Markets>/i> 26, no. 12: 1195-1216.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Efron, B., and R.
 J. Tibshirani. 1993. >i>An Introduction to the Bootstrap.>/i> London:
 Chapman and Hall.</BIBTEXT>	  </REF>      <REF>	   <BIBL>8</BIBL>  
      <BIBTEXT> Habermeier, K., and A. A. Kirilenko. 2003. "Securities
 Transaction Taxes and Financial Markets." >i>IMF Staff Papers>/i> 50
 (Special Issue): 165-180.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>9</BIBL>        <BIBTEXT> Hau, H. 2006 "The Role of Transaction
 Costs for Financial Volatility: Evidence from the Paris Bourse."
 >i>Journal of the European Economic Association>/i> 4, no. 4:
 862-870.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Hu, S. 1998. "The Effects of the Stock Transaction Tax on the
 Stock Market: Experiences from Asian Markets." >i>Pacific-Basin Finance
 Journal>/i> 6, nos. 3-4: 347-364.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>11</BIBL>	<BIBTEXT> Huang, A. G., and H. G. Fung. 2005.
 "Floating the Nonfloatables in China's Stock Market: Theory and Design."
 >i>Emerging Markets Finance & Trade>/i> 41, no. 5 (September-October):
 6-26.</BIBTEXT>      </REF>	  <REF>        <BIBL>12</BIBL>	     
 <BIBTEXT> Kupiec, P. H. 1996. "Noise Traders, Excess Volatility, and a
 Securities Transaction Tax." >i>Journal of Financial Services Research>/i>
 10, no. 2: 115-129.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>13</BIBL>	<BIBTEXT> Lee, S. B., and K. Y. Ohk. 1992. "Stock
 Index Futures Listing and Structure Change in Time-Varying Volatility."
 >i>Journal of Futures Markets>/i> 12, no. 5: 493-509.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Levene, H. 1960.
 "Robust Tests for Equality of Variance." In >i>Contributions to
 Probability and Statistics: Essays in Honor of Harold Hotelling>/i>, ed.
 I. Olkin, pp. 278-292. Palo Alto: Stanford University Press.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>15</BIBL>	  <BIBTEXT> Li, D.; S.-K.
 Lin; and C. Li. 1997. "The Impact of Settlement Time on the Volatility of
 Stock Markets." >i>Applied Financial Economics>/i> 7, no. 6:
 689-694.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT> Lindgren, R., and A. Westlund. 1990. "How did the Transaction
 Costs on the Stockholm Stock Exchange Influence Trading Volume and Price
 Volatility?" >i>Skandinaviska Enskilda Banken Quarterly Review>/i>, 2:
 30-35.</BIBTEXT>      </REF>	   <REF>	<BIBL>17</BIBL>       
 <BIBTEXT> Lo, A., and C. MacKinlay. 2004. "Asset Prices and Trading Volume
 Under Fixed Transaction Costs." >i>Journal of Political Economy>/i> 112,
 no. 51: 1054-1091.</BIBTEXT>	   </REF>      <REF>	    <BIBL>18</BIBL>
	<BIBTEXT> Nieh, C. C., and H. Y. Yau. 2010. "The Impact of Renminbi
 Appreciation on Stock Prices in China." >i>Emerging Markets Finance &
 Trade>/i> 46, no. 1 (January-February): 16-26.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Pan, H.; X. Xia; and M. Yu.
 2008. "Expropriation: Evidence from Rights Issues in China." >i>Emerging
 Markets Finance & Trade>/i> 44, no. 1 (Janurary-February): 5-20.</BIBTEXT>
      </REF>	  <REF>        <BIBL>20</BIBL>	      <BIBTEXT> Phylaktis,
 K., and A. Aristidou. 2007. "Security Transaction Taxes and Financial
 Volatility: Athens Stock Exchange." >i>Applied Financial Economics>/i> 17,
 no. 18: 1455-1467.</BIBTEXT>	   </REF>      <REF>	    <BIBL>21</BIBL>
	<BIBTEXT> Pollin, R.; D. Baker; and M. Schaberg. 2003. "Securities
 Transaction Taxes for U. S. Financial Markets." >i>Eastern Economic
 Journal>/i> 29, no. 4: 527-558.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>22</BIBL>	<BIBTEXT> Song, M. F., and J. Zhang. 2005.
 "Securities Transaction Tax and Market Volatility." >i>Economic
 Journal>/i> 115, no. 506: 1103-1120.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>23</BIBL>	  <BIBTEXT> Stiglitz, J. E. 1989. "Using Tax Policy
 to Curb Speculative Short-Term Trading." >i>Journal of Financial Services
 Research>/i> 3, nos. 2-3: 101-115.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>24</BIBL>	<BIBTEXT> Umlauf, S. R. 1993. "Transaction Taxes
 and the Behavior of the Swedish Stock Market." >i>Journal of Financial
 Economics>/i> 33, no. 2: 249-282.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>25</BIBL>	<BIBTEXT> Xiong, W., and H. Yan. 2010.
 "Heterogeneous Expectations and Bond Markets." >i>Review of Financial
 Studies>/i> 23, no. 4: 1433-1466.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>26</BIBL>	<BIBTEXT> Zhou, H.; J. Geppert; and D. Kong. 2010.
 "An Anatomy of Trading Strategies: Evidence from China." >i>Emerging
 Markets Finance & Trade>/i> 46, no. 2 (March-April): 66-79.</BIBTEXT>	   
 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:32-46




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Author-Name: Hakan Yilmazkuday 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Yilmazkuday 
Title: Guest Editors' Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 0S2 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X2178674308610RG 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S2:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Laura Márquez-Ramos
Author-X-Name-First: Laura
Author-X-Name-Last: Márquez-Ramos
Title: European Accounting Harmonization: Consequences of IFRS Adoption on Trade in Goods and Foreign Direct Investments
Abstract:
 This paper focuses on the importance of accounting harmonization in foreign activities at the country level. The adoption of International Financial Reporting Standards (IFRS) is considered to reduce information costs among countries and, therefore, to encourage international trade in goods and investment. The results provide evidence that benefits exist in terms of trade in goods and foreign direct investment when IFRS are adopted.
Journal: Emerging Markets Finance and Trade
Pages: 42-57
Issue: 0
Volume: 47 
Year: 2011 
Month: 9
Keywords: FDI, gravity, IFRS, trade in goods
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X566H2228P3XJ10L
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahearne, A.G.; W.L. Griever; and F.E. Warnock. 2004. "Information Costs and Home Bias: An Analysis of U.S. Holdings of Foreign Equities." <i>Journal of International Economics</i> 62, no. 2: 313-336.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Amiram, D. 2009. "Financial Information Globalization and Foreign Investment Decisions." Working paper (available at <a target="_blank" href='http://ssrn.com/abstract=1446522/'>http://ssrn.com/abstract=1446522/</a></BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Barth, M.E.; W.R. Landsman; and M.H. Lang. 2008. "International Accounting Standards and Accounting Quality." <i>Journal of Accounting Research</i> 46, no. 3: 467-498.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>     <BIBTEXT> Beneish, M.D.; B.P. Miller; and T.L. Yohn. 2009. "The Effect of IFRS Adoption on Cross-Border Investment in Equity and Debt Markets." Working paper (available at <a target="_blank" href='http://ssrn.com/abstract=1403451/'>http://ssrn.com/abstract=1403451/</a></BIBTEXT>	    </REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Berger, A.N., and G.F. Udell. 2006. "A More Complete Conceptual Framework for SME Finance." <i>Journal of Banking and Finance</i> 30, no. 11: 2945-2966.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>	 <BIBTEXT> Callao, S.; J.I. Jarne; and J.A. Laínez. 2007. "Adoption of IFRS in Spain: Effect on the Comparability and Relevance of Financial Reporting." <i>Journal of Accounting, Auditing and Taxation</i> 16: 148-178.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Centre d'Études Prospectives et d'Informations Internationales (CEPII). 2007. "CEPII Database." Paris (available at <a target="_blank" href='http://www.cepii.fr/welcome_en.asp'>http://www.cepii.fr/welcome_en.asp</a></BIBTEXT> </REF>      <REF>   <BIBL>8</BIBL>	<BIBTEXT> Christensen, H.B.; E. Lee; and M. Walker. 2008. "Incentives or Standards: What Determines Accounting Quality Changes Around IFRS Adoption?" AAA 2008 Financial Accounting and Reporting Section (FARS) paper (available at <a target="_blank" href='http://ssrn.com/abstract=1013054/'>http://ssrn.com/abstract=1013054/</a></BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Commission of the European Communities. 1995. <i>Accounting Harmonisation: A New Strategy vis-à-vis International Harmonisation</i>. COM 95(508). Brussels.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Deloitte. 2003-2008. <i>IFRS in Your Pocket</i>. Deloitte Touche Tohmatsu (available at <a target="_blank" href='http://www.iasplus.com'>http://www.iasplus.com</a></BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> De Ménil, G. 1999. "Real Capital Market Integration: How Far Has Integration Gone? What Euro Effect?" <i>Economic Policy</i> 14, no. 28: 165-201.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Devalle, A.; E. Onali; and R. Magarini. 2010. "Assessing the Value Relevance of Accounting Data After the Introduction of IFRS in Europe." <i>Journal of International Financial Management and Accounting</i> 21, no. 2: 85-119.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> European Commission. 2010. "Accounting: Legal Framework" (available at <a target="_blank" href='http://ec.europa.eu/internal_market/accounting/legal_framework/index_en.htm'>http://ec.europa.eu/internal_market/accounting/legal_framework/index_en.htm</a></BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Eurostat. 2008a. "Balance of Payments—International Transactions." Brussels (available at <a target="_blank" href='http://epp.eurostat.ec.europa.eu/portal/page/portal/balance_of_payments/data/database/'>http://epp.eurostat.ec.europa.eu/portal/page/portal/balance_of_payments/data/database/</a></BIBTEXT>   </REF>      <REF>	  <BIBL>15</BIBL>   <BIBTEXT> Eurostat. 2008b. "EU27 Trade Since 1995 by SITC." Brussels (available at <a target="_blank" href='http://epp.eurostat.ec.europa.eu/portal/page/portal/external_trade/data/database/'>http://epp.eurostat.ec.europa.eu/portal/page/portal/external_trade/data/database/</a></BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL> <BIBTEXT> Jermakowicz, E.; J. Prather-Kinsey; and I. Wulf. 2007. "The Value Relevance of Accounting Income Reported by DAX-30 German Companies." <i>Journal of International Financial Management and Accounting</i> 18, no. 3: 151-191.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Márquez-Ramos, L. 2011. "European Accounting Harmonisation: Consequences of IFRS Adoption on Trade in Goods and Foreign Direct Investments." Working Paper Series WP2011/8, Universitat Jaume I, Castellón, Spain.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	   <BIBTEXT> Portes, R., and H. Rey. 2005. "The Determinants of Cross-Border Equity Flows." <i>Journal of International Economics</i> 65, no. 2: 269-296.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> World Bank. 2010. <i>World Development Indicators</i>. Washington, DC (available at <a target="_blank" href='http://data.worldbank.org/data-catalog/world-development-indicators/'>http://data.worldbank.org/data-catalog/world-development-indicators/</a></BIBTEXT>     </REF>      <REF>	  <BIBL>20</BIBL>	<BIBTEXT> World Bank. Various issues. <i>Business Surveys</i>. Washington, DC (available at <a target="_blank" href='http://www.enterprisesurveys.org'>http://www.enterprisesurveys.org</a></BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S4:p:42-57




Template-Type: ReDIF-Article 1.0
Author-Name: Ender Demir
Author-X-Name-First: Ender
Author-X-Name-Last: Demir
Author-Name: Hakan Danis
Author-X-Name-First: Hakan
Author-X-Name-Last: Danis
Title: The Effect of Performance of Soccer Clubs on Their Stock Prices: Evidence from Turkey
Abstract:
 This paper investigates the stock price reactions of Turkish soccer clubs to game results, according to match venue and competition type. Betting odds are included to control expectations. The findings indicate that match results of the listed soccer clubs affect abnormal returns, and there is an asymmetric stock market reaction to both wins and losses. The results also indicate that a win in a European Cup does not affect clubs' stock returns. However, a domestic win effect is significantly higher than the effect of a European Cup win. The price reaction of stocks also depends on the type of corporation that the clubs establish when they go public.
Journal: Emerging Markets Finance and Trade
Pages: 58-70
Issue: 0
Volume: 47 
Year: 2011 
Month: 9
Keywords: abnormal return, Besiktas, Galatasaray, Fenerbahce, odds, stock return
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y558X7076613J052
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aksar, T. 2010. "Kulüpler bu sportif a.s.'lerden nasil kurtulacak?" [How Do Clubs Get Rid of Their Listed Companies?]. February 16 (available at <a target="_blank" href='http://www.goal.com/tr/news/2556/editoryal/2010/02/16/1793150/goalcom-özel-kulüpler-bu-sportif-aslerden-nasil-kurtulacak/'>http://www.goal.com/tr/news/2556/editoryal/2010/02/16/1793150/goalcom-özel-kulüpler-bu-sportif-aslerden-nasil-kurtulacak/</a></BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Andreff, W., and S. Szymanski. 2007. <i>Handbook on the Economics of Sport</i>. Cheltenham, UK: Edward Elgar.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Aygoren H.; S. Uyar; and H. Saritas. 2008. "Yatirimcilar futbol maclarinin sonuclarindan etkilenir mi? Istanbul Menkul Kiymetler Borsasi'nda bir uygulama" [Are Investors Affected by Match Results? Application to Istanbul Stock Exchange]. <i>H.U. Iktisadi ve Idari Bilimler Fakultesi Dergisi</i> 26, no. 1: 121-137.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>     <BIBTEXT> Bell, A.; C. Brooks; D. Matthews; and C. Sutcliffe. 2009. "Over the Moon or Sick as a Parrot? The Effects of Football Results on a Club's Share Price." Discussion Papers in Finance, no. 2009-08, ICMA Centre, University of Reading, UK.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Benkraiem, R.; W. Louhichi; and P. Marques. 2009. "Market Reaction to Sporting Results: The Case of European Listed Football Clubs." <i>Management Decision</i> 47, no. 1: 100-109.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>	 <BIBTEXT> Bernile, G., and E. Lyandres, E. 2009. "Understanding Investor Sentiment: The Case of Soccer." Research Paper no. 2009-13, Boston University School of Management, Boston.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Boido, C., and A. Fasano. 2007. "Football and Mood in Italian Stock Exchange." <i>ICAFI Journal of Behavioral Finance</i> 4, no. 4: 32-50.</BIBTEXT> </REF>      <REF>   <BIBL>8</BIBL>	<BIBTEXT> Brown, G.W., and J. C. Hartzell. 2001. "Market Reaction to Public Information: The Atypical Case of the Boston Celtics." <i>Journal of Financial Economics</i> 60, no. 2-3: 333-370.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Devecioglu, D. 2004. "Halka arz edilen spor kulüplerinin sportif basarilari ile piyasa degerleri arasindaki 'liski" [The Relationship Between Sports Performances and Market Values of Sports Clubs That Went Public]. <i>Spormetre Beden Egitimi ve Spor Bilimleri Dergisi</i> 2, no. 1: 11-18.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Dobson, S., and J. Goddard. 2001. <i>The Economics of Football</i>. Cambridge: Cambridge University Press.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Dowling, M., and B.M. Lucey. 2005. "The Role of Feelings in Investor Decision-Making." <i>Journal of Economic Surveys</i> 19, no. 2: 211-237.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Duque, J., and N.A. Ferreira. 2005. "Explaining Share Price Performance of Football Clubs Listed on the Euronext Lisbon." Working Paper no. 05-01, ISEG-Universidade Tecnica de Lisboa Business Administration, Lisbon, Portugal.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Palomino, F.; L. Renneboog; and C. Zhang. 2009. "Information Salience, Investor Sentiment, and Stock Returns: The Case of British Soccer Betting." <i>Journal of Corporate Finance</i> 15, no. 3: 368-387.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Raney, A., and J. Bryant. 2006. <i>Handbook of Sports and Media</i>. London: Routledge.</BIBTEXT>   </REF>      <REF>	  <BIBL>15</BIBL>   <BIBTEXT> Renneboog, L., and P. Vanbrabant. 2000. "Share Price Reactions to Sporty Performances of Soccer Clubs Listed on the London Stock Exchange and the AIM." Discussion Paper no. 2000-19, Center for Economic Research, Tilburg University, Tilburg, Netherlands.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL> <BIBTEXT> Scholtens, B., and W. Peenstra. 2009. "Scoring on the Stock Exchange? The Effect of Football Matches on Stock Market Returns: An Event Study." <i>Applied Economics</i> 41, no. 25: 3231-3237.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Stadtmann, G. 2004. "An Empirical Examination of the News Model: The Case of Borussia Dortmund GmbH & Co. KgaA." <i>Zeitschrift für Betriebswirtschaft</i> 74, no. 2: 165-185.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	   <BIBTEXT> Stadtmann, G. 2006. "Frequent News and Pure Signals: the Case of a Publicly Traded Football Club." <i>Scottish Journal of Political Economy</i> 53, no. 4: 485-504.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Zuber, R.A.; P. Yiu P.; R.P. Lamb; and J.M. Gandar. 2005. "Investor-fans? An Examination of the Performance of Publicly Traded English Premier League Teams." <i>Applied Financial Economics</i> 15, no: 5: 305-313.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:0S4:p:58-70




Template-Type: ReDIF-Article 1.0
Author-Name: Ke Tang 
Author-X-Name-First: Ke 
Author-X-Name-Last: Tang 
Author-Name: Changyun Wang 
Author-X-Name-First: Changyun 
Author-X-Name-Last: Wang 
Title: Corporate Governance and Firm Liquidity: Evidence from the Chinese Stock Market 
Abstract:
 This paper examines the cross-sectional relation between corporate
 governance and firm liquidity in the Chinese stock market. We construct a
 measure of overall quality of governance based on publicly available
 information for each firm listed on the Shanghai Stock Exchange (SHSE) and
 the Shenzhen Stock Exchange (SZSE) for each year over the 1999-2004
 interval. After accounting for other liquidity-related factors, we present
 strong evidence that the level of corporate governance is positively
 related to firm liquidity. An increase of 1 percent in corporate
 governance index (total 100 percent) is on average associated with a 1.2
 percent increase in a firm's annual turnover ratio over the subsequent
 year. Results from examinations of subindices of corporate governance
 provide further support for the positive governance-liquidity relation.
 These findings have important implications for academics to investigate
 the value of enhancing corporate governance, and for regulators to promote
 corporate governance reform.
Journal: Emerging Markets Finance and Trade 
Pages: 47-60 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: Chinese stock market, corporate governance, firm liquidity, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y768352V65738376 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:47-60




Template-Type: ReDIF-Article 1.0
Author-Name: Tuomas A. Peltonen 
Author-X-Name-First: Tuomas A. 
Author-X-Name-Last: Peltonen 
Author-Name: Ricardo M. Sousa 
Author-X-Name-First: Ricardo M. 
Author-X-Name-Last: Sousa 
Author-Name: Isabel S. Vansteenkiste 
Author-X-Name-First: Isabel S. 
Author-X-Name-Last: Vansteenkiste 
Title: Fundamentals, Financial Factors, and the Dynamics of Investment in Emerging Markets 
Abstract:
 The paper uses a panel vector autoregression approach to analyze the
 dynamics of the transition of investment to shocks to fundamental and
 financial factors in emerging market economies. By relying on a panel of
 thirty-one emerging economies and quarterly frequency data for the period
 1990:1-2008:3, we show that (1) investment sluggishly adjusts to its own
 shocks; (2) gross domestic product and equity price shocks have a positive
 and sizable impact on investment; (3) unexpected variation in the cost of
 capital and the lending rate has a negative effect on investment; and (4)
 the response of investment to credit market developments seems to be
 driven by the demand side. In addition, the effects of equity price shocks
 appear to be similar for emerging Asia and Latin America, but credit
 shocks are more important in Latin America. Moreover, shocks to the
 lending rate have a pronounced and negative impact in emerging European
 markets. Finally, we show that the stock market bubbles may have
 encouraged real investment during the 1990s.
Journal: Emerging Markets Finance and Trade 
Pages: 88-105 
Issue: 0 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: emerging markets, financial factors, fundamentals, investment, panel VAR, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y8215N0NV4J82782 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:0:p:88-105




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 1 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=0615408887059518 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:1:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Berhanu Abegaz 
Author-X-Name-First: Berhanu 
Author-X-Name-Last: Abegaz 
Author-Name: Arnab K. Basu 
Author-X-Name-First: Arnab K. 
Author-X-Name-Last: Basu 
Title: The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies 
Abstract:
 Using a model that admits variable returns and imperfect competition, we
 investigate the impact on total factor productivity of trade
 liberalization in six emerging economies. Regressions based on panel data
 for twenty-eight three-digit manufacturing industries show that
 productivity growth is insensitive to tariff reduction. These results are
 at variance with country-specific studies that, using firm-level data,
 generally find a positive association between liberalization and
 productivity growth. While aggregation effects may matter, our results can
 also be explained as follows: significant productivity gains by latecomers
 via technological assimilation do take time and require appropriate
 sequencing of reforms of trade and industrial policies.
Journal: Emerging Markets Finance and Trade 
Pages: 5-27 
Issue: 1 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: liberalization, manufacturing, markup, scale economies, total factor productivity (TFP), 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=10UV0306668255KU 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abegaz, B. 2002.
 "Structural Convergence in Manufacturing Industries Between Leaders and
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:1:p:5-27




Template-Type: ReDIF-Article 1.0
Author-Name: Janusz BrzeszczyÃ…Â„ski 
Author-X-Name-First: Janusz 
Author-X-Name-Last: BrzeszczyÃ…Â„ski 
Author-Name: Jerzy Gajdka 
Author-X-Name-First: Jerzy 
Author-X-Name-Last: Gajdka 
Author-Name: Tomasz Schabek 
Author-X-Name-First: Tomasz 
Author-X-Name-Last: Schabek 
Title: The Role of Stock Size and Trading Intensity in the Magnitude of the "Interval Effect" in Beta Estimation: Empirical Evidence from the Polish Capital Market 
Abstract:
 In this paper, we present empirical evidence about the "interval effect"
 in estimation of beta parameters for stocks listed on the Warsaw Stock
 Exchange. We analyze models constructed for the returns calculated using
 intervals of different lengthÃ¢Â€Â”that is, 1, 5, 10, and 21 trading days
 (corresponding to, roughly, 1 day, 1 week, 2 weeks, and 1 month,
 respectively). In the cases in which heteroskedasticity was present, we
 estimated ARCH models. The results indicate that the estimates of betas
 for the same stock differ considerably when various return intervals are
 used. We further explore the source of differences in betas for every
 stock by investigating the relations between them and such factors as
 stock size and its trading intensity. The empirical results provide
 evidence that a statistically significant relationship exists between
 these two characteristics of stocks. This finding has important practical
 implications for beta estimation in practice.
Journal: Emerging Markets Finance and Trade 
Pages: 28-49 
Issue: 1 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: autoregressive conditional heteroskedastic (ARCH) models, beta estimation, interval effect, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=246HT6091640533P 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Armitage, S., and J.
 BrzeszczyÃ…Â„ski. 2008. "Heteroscedasticity and Interval Effects in
 Estimating Beta: UK Evidence." Working paper, University of Edinburgh,
 January 31 (available at >a target="_blank"
 href='http://ssrn.com/abstract=1100573/'>http://ssrn.com/abstract=1100573/
 >/a></BIBTEXT>      </REF>	 <REF>	      <BIBL>2</BIBL>	   
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 modeli klasy ARCH do estymacji parametru beta przy uwzglÃ„Â™dnieniu stÃƒÂ³p
 zwrotu dla rÃƒÂ³Ã…Â¼nych interwaÃ…Â‚ÃƒÂ³w czasowych" [Application of ARCH Models
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 Shifts as a Return Interval Changes." >i>Financial Analysts Journal>/i>
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:1:p:28-49




Template-Type: ReDIF-Article 1.0
Author-Name: Sung-Hoon Lim 
Author-X-Name-First: Sung-Hoon 
Author-X-Name-Last: Lim 
Title: Risks in the North Korean Special Economic Zone: Context, Identification, and Assessment 
Abstract:
 This paper examines the key factors (firm-specific conditions, political
 risk, and countermeasures for reducing political risk) affecting the risk
 assessment of the Kaesong Industrial Complex, a North Korean special
 economic zone extremely sensitive to the North Korean nuclear issue. The
 empirical results suggest that of the foreign firms operating in Kaesong,
 those with a structure sufficiently flexible to cope with the rising cost
 of labor are more likely to face higher levels of political risk. In
 addition, investment decisions involving high levels of political risk are
 closely related to company strategies such as minimizing the initial
 investment and deploying a dual-plant strategy.
Journal: Emerging Markets Finance and Trade 
Pages: 50-66 
Issue: 1 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: foreign direct investment, North Korea, northeastern Asia, political risk, risk assessment, special economic zone, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=374PW66903157111 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Beaulieu, M. C.; J. C.
 Cosset; and N. Essaddam. 2005. "The Impact of Political Risk on the
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:1:p:50-66




Template-Type: ReDIF-Article 1.0
Author-Name: JosÃƒÂ© Luiz Rossi JÃƒÂºnior 
Author-X-Name-First: JosÃƒÂ© Luiz Rossi 
Author-X-Name-Last: JÃƒÂºnior 
Title: Exchange Rate Exposure, Foreign Currency Debt, and the Use of Derivatives: Evidence from Brazil 
Abstract:
 This paper studies the exchange rate exposure and its determinants for a
 sample of nonfinancial Brazilian companies from 1996 to 2006. The results
 indicate that the number of firms exposed to exchange rate fluctuations is
 higher in periods of crisis and under a fixed exchange rate regime. In
 addition, the results point out that, although companies' international
 activities, operational hedging, and financial policies are important
 determinants of firms' exposure, the changes in companies' exposure that
 took place when Brazil moved from a fixed to a floating exchange rate
 regime were mainly driven by changes in companies' foreign currency
 borrowing and the use of derivatives that occurred in that period.
Journal: Emerging Markets Finance and Trade 
Pages: 67-89 
Issue: 1 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: debt composition, exchange rate regime, exposure, hedging, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=471566165R587111 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 Ihrig. 2001. "Exposure and Markups." >i>Review of Financial Studies>/i>
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 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:1:p:67-89




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyun Liu 
Author-X-Name-First: Xiaoyun 
Author-X-Name-Last: Liu 
Author-Name: Xian Xin 
Author-X-Name-First: Xian 
Author-X-Name-Last: Xin 
Title: Why Has China's Trade Grown So Fast? A Demand-Side Perspective 
Abstract:
 China's share of global trade has experienced rapid growth in the past
 three decades. Taking a demand-side perspective, this paper investigates
 the causes of this rapid growth by decomposing China's trade growth into
 preference changes, income growth, and other factors. The results indicate
 that preference changes explain 35.8 percent of export growth and 41.9
 percent of import growth over the period. Income growth (excluding
 convergence) explains a further 28.4 percent and 27.1 percent,
 respectively, of export and import growth, respectively. In addition,
 income convergence further contributed about 24 percent and 11.3 percent,
 respectively, of export and import growth, respectively. These results are
 generated using a multiregional numerical general equilibrium model of the
 global economy involving major trading blocs and are calibrated to both
 1975 and 2004 data.
Journal: Emerging Markets Finance and Trade 
Pages: 90-100 
Issue: 1 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: China, multiregion general equilibrium model, preference changes, trade growth, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=50457R6X1T143643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adams, F. G.; B.
 Gangnes; and Y. Shachmurove. 2006. "Why Is China So Competitive? Measuring
 and Explaining China's Competitiveness." >i>World Economy>/i> 29, no. 2:
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    <BIBTEXT> Rodrik, D. 2006. "What's So Special About China's Exports?"
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 Elasticities in Intermediate Inputs Trade: A Problem in Using Multilateral
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 Liberalization Among Major World Trading Areas.>/i> Cambridge: MIT
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 123-135.</BIBTEXT>	 </REF>      <REF>	  <BIBL>30</BIBL>	
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 Unconditional Systematic Sensitivity in Minutes." In >i>Applied General
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 Verlag.</BIBTEXT>	</REF>	    <REF>	 <BIBL>31</BIBL>       
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 Representation of China's Agricultural Sectors." >i>China Agricultural
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 Geneva.</BIBTEXT>	</REF>	    <REF>	 <BIBL>34</BIBL>       
 <BIBTEXT> World Trade Organization (WTO). 2007b. >i>World Trade 2006 and
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:1:p:90-100




Template-Type: ReDIF-Article 1.0
Author-Name: Kiril Tochkov 
Author-X-Name-First: Kiril 
Author-X-Name-Last: Tochkov 
Author-Name: Nikolay Nenovsky 
Author-X-Name-First: Nikolay 
Author-X-Name-Last: Nenovsky 
Title: Institutional Reforms, EU Accession, and Bank Efficiency in Transition Economies: Evidence from Bulgaria 
Abstract:
 This paper examines the efficiency of Bulgarian banks and its determinants
 over the period 1999-2007. The levels of technical, allocative, and cost
 efficiency are estimated using a nonparametric methodology and then
 regressed on a number of bankspecific, institutional, and EU-related
 factors. The findings indicate that foreign banks were more efficient than
 domestic private banks, although the gap between them narrowed over time.
 State-owned banks ranked last, but their privatization resulted in
 efficiency gains. Capitalization, liquidity, and enterprise restructuring
 enhanced bank efficiency, whereas banking reforms had an adverse effect.
 The Treaty of Accession and EU membership were associated with significant
 efficiency improvements.
Journal: Emerging Markets Finance and Trade 
Pages: 113-129 
Issue: 1 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: banking, efficiency, EU accession, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=658684574T25024K 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Asaftei, G., and S. C.
 Kumbhakar. 2008. "Regulation and Efficiency in Transition: The Case of
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 and N. Nenovsky. 2004. "Lending of First Versus Lending of Last Resort:
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 Studies>/i> 46, no. 2: 245-271.</BIBTEXT>	</REF>	    <REF>	
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 Delay in the Bulgarian Privatization Process? Determining Incentives and
 Barriers of Privatization as a Way of Foreign Entry." >i>Emerging Markets
 Finance and Trade>/i> 39, no. 5 (September-October): 58-82.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Bonin, J. P.
 2004. "Banking in the Balkans: The Structure of Banking Sectors in
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 Ownership in Transition Countries." >i>Journal of Banking and Finance>/i>
 29, no. 1: 31-53.</BIBTEXT>	  </REF>      <REF>	   <BIBL>7</BIBL>  
      <BIBTEXT> Brissimis, S. N.; M. D. Delis; and N. I. Papanikolaou.
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    <BIBTEXT> Claeys, S., and R. Vander Vennet. 2008. "Determinants of Bank
 Interest Margins in CEE: A Comparison with the West." >i>Economic
 Systems>/i> 32, no. 2: 197-216.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>9</BIBL>        <BIBTEXT> Derviz, A., and J. Podpiera. 2008.
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 <BIBTEXT> Dobrinsky, R. 2000. "The Transition Crisis in Bulgaria."
 >i>Cambridge Journal of Economics>/i> 24, no. 5: 581-602.</BIBTEXT>	 
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       <BIBL>16</BIBL>	      <BIBTEXT> Hasan, I., and K. Marton. 2003.
 "Development and Efficiency of the Banking Sector in a Transition Economy:
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 2249-2271.</BIBTEXT>	   </REF>      <REF>	    <BIBL>17</BIBL>	  
 <BIBTEXT> Havrylchyk, O. 2004. "Consolidation of the Polish Banking
 Sector: Consequences for the Banking Institutions and the Public."
 >i>Economic Systems>/i> 28, no. 2: 125-140.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> Havrylchyk, O. 2006.
 "Efficiency of the Polish Banking Industry: Foreign Versus Domestic
 Banks." >i>Journal of Banking and Finance>/i> 30, no. 7:
 1975-1996.</BIBTEXT>	   </REF>      <REF>	    <BIBL>19</BIBL>	  
 <BIBTEXT> Horvath, B., and I. Szekely. 2003. "The Role of Medium-Term
 Fiscal Frameworks for Transition Countries: The Case of Bulgaria."
 >i>Emerging Markets Finance and Trade>/i> 39, no. 1 (January-February):
 86-113.</BIBTEXT>	</REF>	    <REF>	 <BIBL>20</BIBL>       
 <BIBTEXT> Jemric, I., and B. Vujcic. 2002. "Efficiency of Banks in
 Croatia: A DEA Approach." >i>Comparative Economic Studies>/i> 44, nos.
 2-3: 169-193.</BIBTEXT>      </REF>	  <REF>        <BIBL>21</BIBL>	   
   <BIBTEXT> Jimborean, R. 2009. "The Role of Banks in the Monetary Policy
 Transmission in the New EU Member States." >i>Economic Systems>/i> 33, no.
 4: 360-375.</BIBTEXT>	    </REF>	<REF>	     <BIBL>22</BIBL>	   
 <BIBTEXT> Kager, M. 2002. "The Banking System in the Accession Countries
 on the Eve of EU Entry." >i>Focus on Austria>/i> 2: 99-116.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT> Kasman, A. 2005.
 "Efficiency and Scale Economies in Transition Economies: Evidence from
 Poland and the Czech Republic." >i>Emerging Markets Finance and Trade>/i>
 41, no. 2 (March- April): 60-81.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>24</BIBL>	<BIBTEXT> Koford, K., and A. Tschoegl. 2003.
 "Foreign Banks in Bulgaria, 1875-2002." William Davidson Institute Working
 Paper no. 537, William Davidson Institute, Ann Arbor, MI.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Kraft, E., and
 D. Tirtiroglu. 1998. "Bank Efficiency in Croatia: A Stochastic-Frontier
 Analysis." >i>Journal of Comparative Economics>/i> 26, no. 2:
 282-300.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT> Matousek, R., and A. Taci. 2004. "Efficiency in Banking:
 Empirical Evidence from the Czech Republic." >i>Economics of Planning>/i>
 37, no. 3: 225-244.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>27</BIBL>	<BIBTEXT> Nenovsky, N., and K. Hristov. 2002. "New
 Currency Boards and Discretion: The Empirical Evidence from Bulgaria."
 >i>Economic Systems>/i> 26, no. 1: 55-72.</BIBTEXT>	  </REF>      <REF>
	<BIBL>28</BIBL>        <BIBTEXT> Nenovsky, N.; P. Chobanov; G.
 Mihaylova; and D. Koleva. 2008. "Efficiency of the Bulgarian Banking
 System: Traditional Approach and Data Envelopment Analysis." Working Paper
 no. 1, Agency for Economic Analysis and Forecasting, Sofia,
 Bulgaria.</BIBTEXT>	  </REF>      <REF>	   <BIBL>29</BIBL>	 
 <BIBTEXT> Nikiel, E. M., and T. P. Opiela. 2002. "Customer Type and Bank
 Efficiency in Poland: Implications for Emerging Banking Market."
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 </REF>      <REF>	  <BIBL>30</BIBL>	 <BIBTEXT> Ray, S. 2004.
 >i>Data Envelopment Analysis: Theory and Techniques for Economics and
 Operations Research.>/i> New York: Cambridge University Press.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>31</BIBL>	    <BIBTEXT> Rizov, M.
 2004. "Credit Constraints and Profitability: Evidence from a Transition
 Economy." >i>Emerging Markets Finance and Trade>/i> 40, no. 4
 (July-August): 63-83.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>32</BIBL>	<BIBTEXT> Sherman, H., and F. Gold. 1985. "Bank
 Branch Operating Efficiency: Evaluation with Data Envelopment Analysis."
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 P. Wilson. 1998. "Sensitivity Analysis of Efficiency Scores: How to
 Bootstrap in Nonparametric Frontier Models." >i>Management Science>/i> 44,
 no. 1: 49-61.</BIBTEXT>      </REF>	  <REF>        <BIBL>34</BIBL>	   
   <BIBTEXT> Simar, L., and P. Wilson. 2008. "Statistical Inference in
 Non-Parametric Frontier Models: Recent Developments and Perspectives." In
 >i>The Measurement of Productive Efficiency and Productivity Change>/i>,
 ed. H. Fried, C. Lovell, and S. Schmidt, pp. 421-521. New York: Oxford
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>35</BIBL> 
       <BIBTEXT> Tochkov, K., and N. Nenovsky. 2009. "Efficiency of
 Commercial Banks in Bulgaria in the Wake of EU Accession." Discussion
 Paper no. 75, Bulgarian National Bank, Sofia.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>36</BIBL>	     <BIBTEXT> Vutcheva, H. 2001.
 >i>Economic Policy in Bulgaria During 1991-2000.>/i> Sofia:
 Stopanstvo.</BIBTEXT>	    </REF>	<REF>	     <BIBL>37</BIBL>	   
 <BIBTEXT> Weill, L. 2003. "Banking Efficiency in Transition Economies: The
 Role of Foreign Ownership." >i>Economics of Transition>/i> 11, no. 3:
 569-592.</BIBTEXT>	 </REF>      <REF>	  <BIBL>38</BIBL>	
 <BIBTEXT> Yildirim, H. S., and G. S. Philippatos. 2007. "Efficiency of
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 >i>European Journal of Finance>/i> 13, no. 2: 123-143.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:1:p:113-129




Template-Type: ReDIF-Article 1.0
Author-Name: Cenktan Ozyildirim 
Author-X-Name-First: Cenktan 
Author-X-Name-Last: Ozyildirim 
Author-Name: Begumhan Ozdincer 
Author-X-Name-First: Begumhan 
Author-X-Name-Last: Ozdincer 
Title: The Strategic Implications of Asset and Liability Allocation in the Turkish Banking Industry 
Abstract:
 This study aims to analyze whether banks' deviation from the mainstream in
 terms of asset and liability allocation enables them to perform better
 than their competition. Overall, deviation in the liability structure
 seems to have a significant impact on performance. In a second regression,
 the results obtained from the analysis of liability allocation are further
 examined by focusing on the effects of the deposit base on bank
 performance. Our analysis brings out the significance of liability
 allocation and of the effect of deposit strategies as a primary source of
 funding. The major difference of this study from the existing literature
 is that we focus primarily on both asset and liability allocation
 strategies of banks, and we further analyze the components of the
 liability structure to evaluate the impact of liability deviation on the
 banking strategy.
Journal: Emerging Markets Finance and Trade 
Pages: 101-112 
Issue: 1 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: banking, liability allocation, strategic deviation, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M4448M6346W21287 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Acharya, V. V.; H.
 Iftekhar; and A. Saunders. 2006. "Should Banks Be Diversified? Evidence
 from Individual Bank Loan Portfolios." >i>Journal of Business>/i> 79, no.
 3: 1355-1412.</BIBTEXT>      </REF>	  <REF>        <BIBL>2</BIBL>	   
  <BIBTEXT> AltunbaÃ…ÂŸ, Y., and M. D. Ibanes. 2008. "Mergers and
 Acquisitions and Bank Performance in Europe: The Role of Strategic
 Similarities." >i>Journal of Economics and Business>/i> 60, no. 3:
 204-222.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Athanasoglou, P. P.; S. N. Brissimis; and M. D. Delis. 2008.
 "Bank-Specific, Industry-Specific and Macroeconomic Determinants of Bank
 Profitability." >i>International Financial Markets, Institutions and
 Money>/i> 18, no. 2: 121-136.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>4</BIBL>        <BIBTEXT> Baltagi, B. H. 2001. >i>Econometric
 Analysis of Panel Data>/i>, 2d ed. Chichester, UK: John Wiley &
 Sons.</BIBTEXT>      </REF>	  <REF>        <BIBL>5</BIBL>	    
 <BIBTEXT> Behr, A.; A. Kamp; C. Memmel; and A. Pfingsten. 2007.
 "Diversification and the Banks' Risk-Return-CharacteristicsÃ¢Â€Â”Evidence
 from Loan Portfolios of German Banks." Discussion Paper Series 2, Banking
 and Financial Studies, Research Center, Deutsche Bundesbank,
 Frankfurt.</BIBTEXT>	   </REF>      <REF>	    <BIBL>6</BIBL>	 
 <BIBTEXT> Berger, A. N. 1999. "The Consolidation of the Financial Services
 Industry: Causes, Consequences, and Implications for the Future."
 >i>Journal of Banking and Finance>/i> 23, nos. 2-4: 135-194.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT> Berger, A. N.
 2000. "Why Are Bank Profits So Persistent? The Roles of Product Market
 Competition, Informational Opacity, and Regional/Macroeconomic Shocks."
 >i>Journal of Banking and Finance>/i> 24, no. 7: 1203-1235.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Best, M. 1990.
 >i>The New Industrial Competition.>/i> Cambridge, UK: Polity
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	     
 <BIBTEXT> Deephouse, D. L. 1999. "To Be Different, or to Be the Same? It's
 a Question (and Theory) of Strategic Balance." >i>Strategic Management
 Journal>/i> 20, no. 2: 147-166.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>10</BIBL>	<BIBTEXT> Demsetz, R. S., and P. E. Strahan. 1997.
 "Diversification, Size, and Risk at Bank Holding Companies." >i>Journal of
 Money, Credit and Banking>/i> 29, no. 3: 300-313.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>11</BIBL>        <BIBTEXT> Dierickx, I., and K. Cool.
 1989. "Asset Stock Accumulation and Sustainability of Competitive
 Advantage." >i>Management Science>/i> 35, no. 12: 1504-1511.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>12</BIBL>	  <BIBTEXT> Haveman, H. A.
 1993. "Follow the Leader: Mimetic Isomorphism and Entry into New Markets."
 >i>Administrative Science Quarterly>/i> 38, no. 4: 593-627.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Mehra, A. 1996.
 "Resource and Market Based Determinants of Performance in the U. S.
 Banking Industry." >i>Strategic Management Journal>/i> 17, no. 4:
 307-322.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Ozdincer, B., and C. Ozyildirim. 2008. "The Effects of
 Diversification on Bank Performance from the Perspective of Risk, Return
 and Cost Efficiency." Paper presented at the 21st Australasian Finance and
 Banking Conference, Sydney, December 16-18.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Penrose, E. T. 1959. >i>The
 Theory of the Growth of the Firm.>/i> New York: Wiley.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Peteraf, M. A.
 1993. "The Cornerstones of Competitive Advantage: A Resource-Based View."
 >i>Strategic Management Journal>/i> 14, no. 3: 179-191.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT> Quinn, J. B.; T.
 L. Dorley; and P. C. Paquette. 1990. "Beyond Products: Services-Based
 Strategy." >i>Harvard Business Review>/i> 68, no. 2: 58-68.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Ramaswamy, K.
 1997. "The Performance Impact of Strategic Similarity in Horizontal
 Mergers: Evidence from the U. S. Banking Industry." >i>Academy of
 Management Journal>/i> 40, no. 3: 697-715.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Reger, R. K.; I. M. Duhaime;
 and J. L. Stimpert. 1992. "Deregulation, Strategic Choice, Risk and
 Financial Performance." >i>Strategic Management Journal>/i> 13, no. 3:
 189-204.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT> Santomero, A. M. 1984. "Modeling the Banking Firm." >i>Journal
 of Money, Credit and Banking>/i> 16, no. 4: 576-602.</BIBTEXT>      </REF>
      <REF>	   <BIBL>21</BIBL>	  <BIBTEXT> Smirlock, M. 1985.
 "Evidence on the (Non) Relationship Between Concentration and
 Profitability in Banking." >i>Journal of Money, Credit and Banking>/i> 17,
 no. 1: 69-83.</BIBTEXT>      </REF>	  <REF>        <BIBL>22</BIBL>	   
   <BIBTEXT> Wernerfelt, B. 1984. "A Resource-Based View of the Firm."
 >i>Strategic Management Journal>/i> 5, no. 2: 171-180.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT> Winton, A. 1999.
 "Ã¢Â€Â˜Don't Put All Your Eggs in One BasketÃ¢Â€Â™? Diversification and
 Specialization in Lending." Working paper, Wharton School Center for
 Financial Institutions, University of Pennsylvania.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>24</BIBL>	 <BIBTEXT> Wooldridge, J. M. 2002.
 Econometric Analysis of Cross Section and Panel Data. Cambridge: MIT
 Press.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:1:p:101-112




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Acknowledgment of Referees 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 130-135 
Issue: 1 
Volume: 47 
Year: 2011 
Month: 1 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X64525PK1W877414 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:1:p:130-135




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Wei Lee 
Author-X-Name-First: Chih-Wei 
Author-X-Name-Last: Lee 
Author-Name: Ming-Jen Chang 
Author-X-Name-First: Ming-Jen 
Author-X-Name-Last: Chang 
Title: Announcement Effects and Asymmetric Volatility in Industry Stock Returns: Evidence from Taiwan 
Abstract:
 This study employs financial econometric models to examine the asymmetric
 volatility of equity returns in response to monetary policy announcements
 in the Taiwanese stock market. The meetings of the board of directors at
 the Central Bank of the Republic of China (Taiwan) are considered for
 testing the announcement effects. The asymmetric generalized
 autoregressive conditional heteroskedasticity (GARCH) model and the smooth
 transition autoregression with GARCH model are used to measure equity
 returns' asymmetric volatility. We conclude that the asymmetric volatility
 of countercyclical equity returns can be identified. Our findings support
 the >i>leverage effect>/i> of stock price changes for most industry equity
 returns in Taiwan.
Journal: Emerging Markets Finance and Trade 
Pages: 48-61 
Issue: 2 
Volume: 47 
Year: 2011 
Month: 3 
Keywords: announcement effects, asymmetric volatility, stock returns, Taiwan Stock Exchange, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=01842158J0063U6T 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Black, F. 1976.
 "Studies in Stock Price Volatility Changes." In >i>Proceedings of the 1976
 Business Meeting of the Business and Economics Statistics Section,
 American Statistical Association>/i>, pp. 177-181. Washington, DC:
 American Statistical Association.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Bomfim, A. N. 2003. "Pre-Announcement
 Effects, News Effects, and Volatility: Monetary Policy and the Stock
 Market." >i>Journal of Banking and Finance>/i> 27, no. 1:
 133-151.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Chan, F., and M. McAleer. 2002. "Maximum Likelihood Estimation
 of STAR and STAR-GARCH Models: Theory and Monte Carlo Evidence."
 >i>Journal of Applied Econometrics>/i> 17, no. 5: 509-534.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Christiansen, C.
 2000. "Macroeconomic Announcement Effects on the Covariance Structure of
 Government Bond Returns." >i>Journal of Empirical Finance>/i> 7, no. 5:
 479-507.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> DeGoeij, P., and W. Marquering. 2006. "Macroeconomic
 Announcements and Asymmetric Volatility in Bond Returns." >i>Journal of
 Banking and Finance>/i> 30, no. 10: 2659-2680.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Friedmann, R., and W. G.
 Sanddorf-KÃƒÂ¶hle. 2002. "Volatility Clustering and Nontrading Days in
 Chinese Stock Markets." >i>Journal of Economics and Business>/i> 54, no.
 2: 193-217.</BIBTEXT>	    </REF>	<REF>	     <BIBL>7</BIBL>	  
 <BIBTEXT> Glosten, L. R.; R. Jagannathan; and D. E. Runkle. 1993. "On the
 Relation Between the Expected Value and the Volatility of the Nominal
 Excess Return on Stocks." >i>Journal of Finance>/i> 48, no. 5:
 1779-1801.</BIBTEXT>	   </REF>      <REF>	    <BIBL>8</BIBL>	 
 <BIBTEXT> Huang, H.-H.; P. Hsu; H. A. Khan; and Y.-L. Yu. 2008. "Does the
 Appointment of an Outside Director Increase Firm Value? Evidence from
 Taiwan." >i>Emerging Markets Finance & Trade>/i> 44, no. 3 (May-June):
 66-80.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	     
 <BIBTEXT> Huang, Y. C., and S. H. Chan. 2010. "Trading Behavior on
 Expiration Days and Quarter-End Days: The Effect of a New Closing Method."
 >i>Emerging Markets Finance & Trade>/i> 46, no. 4 (July-August):
 105-125.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Lai, H.-W.; C.-W. Chen; and C.-S. Huang. 2010. "Technical
 Analysis, Investment Psychology, and Liquidity Provision: Evidence from
 the Taiwan Stock Market." >i>Emerging Markets Finance & Trade>/i> 46, no.
 5 (September-October): 18-38.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>11</BIBL>	<BIBTEXT> Lo, K.-H.; K. Wang; and C.-T. Yeh. 2008.
 "Stock Repurchase and Agency Problems: New Evidence in Taiwan's Stock
 Market." >i>Emerging Markets Finance & Trade>/i> 44, no. 1
 (January-February): 84-94.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>12</BIBL>	<BIBTEXT> Mele, A. 2007. "Asymmetric Stock Market
 Volatility and the Cyclical Behavior of Expected Returns." >i>Journal of
 Financial Economics>/i> 86, no. 2: 446-478.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT> Rigobon, R., and B. Sack.
 2003. "Measuring the Reaction of Monetary Policy to the Stock Market."
 >i>Quarterly Journal of Economics>/i> 118, no. 2: 639-669.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Shen, C.-H., and
 D. R. Hakes. 1995. "Monetary Policy as a Decision-Making Hierarchy: The
 Case of Taiwan." >i>Journal of Macroeconomics>/i> 17, no. 2:
 357-368.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> TerÃƒÂ¤svirta, T. 1994. "Specification, Estimation and Evaluation
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 Statistical Association>/i> 89, no. 425: 208-218.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:2:p:48-61




Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Sin Lee 
Author-X-Name-First: Jen-Sin 
Author-X-Name-Last: Lee 
Author-Name: Chin-Tai Kuo 
Author-X-Name-First: Chin-Tai 
Author-X-Name-Last: Kuo 
Author-Name: Pi-Hsia Yen 
Author-X-Name-First: Pi-Hsia 
Author-X-Name-Last: Yen 
Title: Market States and Initial Returns: Evidence from Taiwanese IPOs 
Abstract:
 This paper investigates the different affecting patterns of the
 determinants of initial returns under different market states for
 Taiwanese IPOs. Contrary to the prior literature, this paper estimates the
 sample separated from different market states, including bullish, bearish,
 and range-bound markets, and finds that the affecting patterns of the
 determinants of initial returns indeed exhibit some significant
 differences under different market states. For instance, the stronger the
 auditor reputation effect, the lower are the initial returns under a
 range-bound market, and the market momentum effect is stronger under a
 bullish market. In addition, the risk perception effect is stronger under
 a bearish market. These findings show that the empirical result of
 dividing market states will provide more insights and a greater variety of
 information as investors make decisions.
Journal: Emerging Markets Finance and Trade 
Pages: 6-20 
Issue: 2 
Volume: 47 
Year: 2011 
Month: 3 
Keywords: auditor reputation, initial returns, market momentum, market risk, market states, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=10815N5287W23550 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R., and R.
 Kunz. 1994. "Why Initial Public Offerings Are Underpriced: Evidence from
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      </REF>	  <REF>        <BIBL>6</BIBL>	     <BIBTEXT> Chen, A.,
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 <BIBL>31</BIBL>	<BIBTEXT> Ljungqvist, A., and W. J. Wilhelm Jr.
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 and R. Singh. 2006. "Hot Markets, Investor Sentiment, and IPO Pricing."
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 "Does the Choice of Auditor Convey Quality in an Initial Public Offering?"
 >i>Financial Management>/i> 24, no. 4 (Winter): 15-30.</BIBTEXT>     
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 and K. A. Sossounov. 2003. "A Simple Framework for Analyzing Bull and Bear
 Markets." >i>Journal of Applied Econometrics>/i> 18, no. 1
 (January-February): 23-46.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>38</BIBL>	<BIBTEXT> Ritter, J. R. 1984. "The Ã¢Â€Â˜Hot IssueÃ¢Â€Â™
 Market of 1980." >i>Journal of Business>/i> 57, no. 2 (April):
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 <BIBTEXT> Ritter, J. R., and I. Welch. 2002. "A Review of IPO Activity,
 Pricing, and Allocations." >i>Journal of Finance>/i> 57, no. 4 (August):
 1795-1828.</BIBTEXT>	   </REF>      <REF>	    <BIBL>40</BIBL>	  
 <BIBTEXT> Ritter, J. R., and D. Zhang. 2007. "Affiliated Mutual Funds and
 the Allocation of Initial Public Offerings." >i>Journal of Financial
 Economics>/i> 86, no. 2 (November): 337-368.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>41</BIBL>	     <BIBTEXT> Shu, P. G.; Y. H. Yeh; and
 Y. H. Su. 2009. "Decisions of Initial Public Offering Review Committees:
 Causes and Consequences." >i>Emerging Markets Finance & Trade>/i> 45, no.
 3 (May-June): 67-82.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>42</BIBL>	<BIBTEXT> Welch, I. 1989. "Seasoned Offerings,
 Imitation Costs and the Underpricing of Initial Public Offerings."
 >i>Journal of Finance>/i> 44, no. 2 (June): 421-449.</BIBTEXT>      </REF>
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 Study on the Relationship Between Timing of Issuances and Abnormal Returns
 of IPO Firms." >i>Chiao Da Management Review>/i> 26, no. 1 (June):
 39-67.</BIBTEXT>      </REF>	   <REF>	<BIBL>44</BIBL>       
 <BIBTEXT> Xie, H. 2001. "The Mispricing of Abnormal Accruals."
 >i>Accounting Review>/i> 76, no. 3 (July): 357-373.</BIBTEXT>	    </REF>  
Handle: RePEc:mes:emfitr:v:47:y:2011:i:2:p:6-20




Template-Type: ReDIF-Article 1.0
Author-Name: Wenchang Fang 
Author-X-Name-First: Wenchang 
Author-X-Name-Last: Fang 
Title: Market Development and Investment Strategies in Asia 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-5 
Issue: 2 
Volume: 47 
Year: 2011 
Month: 3 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8W20771U2374757T 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:2:p:3-5




Template-Type: ReDIF-Article 1.0
Author-Name: Edward H. Chow 
Author-X-Name-First: Edward H. 
Author-X-Name-Last: Chow 
Author-Name: Hsiao-Mei Lin 
Author-X-Name-First: Hsiao-Mei 
Author-X-Name-Last: Lin 
Author-Name: Yo-Min Lin 
Author-X-Name-First: Yo-Min 
Author-X-Name-Last: Lin 
Author-Name: Yin-Che Weng 
Author-X-Name-First: Yin-Che 
Author-X-Name-Last: Weng 
Title: The Performance of Overconfident Fund Managers 
Abstract:
 Using data for 193 equity funds in Taiwan, we examine whether fund
 managers behave overconfidently. We show that the higher the fund
 performance, the more that trading occurs in the next period. In addition,
 such trading may hurt subsequent performance, although the evidence is
 marginal. Our findings suggest that managers of equity funds in Taiwan are
 overconfident.
Journal: Emerging Markets Finance and Trade 
Pages: 21-30 
Issue: 2 
Volume: 47 
Year: 2011 
Month: 3 
Keywords: equity fund, overconfidence, vector autoregression, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=978034201XT0646H 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alpert, M., and H.
 Raiffa. 1982. "A Progress Report on the Training of Probability
 Assessors." In >i>Judgment Under Uncertainty: Heuristics and Biases>/i>,
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 Cambridge University Press.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>2</BIBL>        <BIBTEXT> Barber, B., and T. Odean. 2000. "Trading
 Is Hazardous to Your Wealth: The Common Stock Investment Performance of
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 <BIBTEXT> Barber, B.; L. Yi-Tsung; Y.-J. Liu; and T. Odean. 2009. "Just
 How Much Do Individual Investors Lose by Trading?" >i>Review of Financial
 Studies>/i> 22, no. 2: 609-632.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>4</BIBL>        <BIBTEXT> Baumann, A.; R. Deber; and G. Thompson.
 1991. "Overconfidence Among Physicians and Nurses: The Ã¢Â€Â˜Micro-Certainty,
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    <BIBTEXT> Berk, J., and R. Green. 2004. "Mutual Fund Flows and
 Performance in Rational Markets." >i>Journal of Political Economy>/i> 112,
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      <BIBTEXT> Gervais, S., and T. Odean. 2001. "Learning to Be
 Overconfident." >i>Review of Financial Studies>/i> 14, no. 1:
 1-27.</BIBTEXT>      </REF>	  <REF>        <BIBL>7</BIBL>	    
 <BIBTEXT> Griffin, J.; F. Nardari; and R. M. Stulz. 2007. "Do Investors
 Trade More When Stocks Have Performed Well? Evidence from 46 Countries."
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 "The Utilization of Subjective Probabilities in Production Planning."
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 Price, and Profit When All Traders Are Above Average." >i>Journal of
 Finance>/i> 53, no. 6: 1887-1934.</BIBTEXT>	  </REF>      <REF>	  
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 Springer.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:2:p:21-30




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Da Chen 
Author-X-Name-First: Chun-Da 
Author-X-Name-Last: Chen 
Author-Name: Alex YiHou Huang 
Author-X-Name-First: Alex YiHou 
Author-X-Name-Last: Huang 
Author-Name: Chih-Chun Chen 
Author-X-Name-First: Chih-Chun 
Author-X-Name-Last: Chen 
Title: The Effects of Abolishing a Foreign Institutional Investment Quota in Taiwan 
Abstract:
 Policies regarding the globalization of financial markets have long been
 investigated with conflicting results. This paper employs an event study
 approach with the EGARCH process to examine the effects of lifting
 restrictions on qualified foreign institutional investors in the Taiwanese
 stock market. The empirical results indicate significant differences in
 the behavior of stock returns in the electronics, financial, and other
 nonfinancial sectors, both on and after the abolition of Taiwan's
 investment quota. In addition, the volatility of stock returns in the
 electronics sector increases following the event. Foreign ownership
 provides some additional explanatory power for electronics and other
 nonfinancial stocks in the short run.
Journal: Emerging Markets Finance and Trade 
Pages: 74-98 
Issue: 2 
Volume: 47 
Year: 2011 
Month: 3 
Keywords: EGARCH model, event study, investment policy, qualified foreign institutional investor, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B331J02383032137 
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X-Bibl:
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:2:p:74-98




Template-Type: ReDIF-Article 1.0
Author-Name: Hsiao-Fen Hsiao 
Author-X-Name-First: Hsiao-Fen 
Author-X-Name-Last: Hsiao 
Author-Name: Chuan-Ying Hsu 
Author-X-Name-First: Chuan-Ying 
Author-X-Name-Last: Hsu 
Author-Name: Chun-An Li 
Author-X-Name-First: Chun-An 
Author-X-Name-Last: Li 
Author-Name: Ai-Chi Hsu 
Author-X-Name-First: Ai-Chi 
Author-X-Name-Last: Hsu 
Title: The Relationship Among Managerial Sentiment, Corporate Investment, and Firm Value: Evidence from Taiwan 
Abstract:
 This study has two objectives: to examine the relationship between
 managerial sentiment and corporate investment and to examine the
 relationship between investment and firm value. We use a sample of
 Taiwanese firms and find that an optimal level of investment that
 maximizes a firm's value does exist and that it depends upon the quality
 of the investment opportunities. In addition, the empirical results show
 that when firms have valuable (nonvaluable) investment opportunities,
 managerial optimism (pessimism) makes overinvestment (underinvestment)
 more likely. Interestingly, the overinvestment (underinvestment)
 phenomenon for optimistic (pessimistic) managers differs significantly
 between valuable project and nonvaluable project firms.
Journal: Emerging Markets Finance and Trade 
Pages: 99-111 
Issue: 2 
Volume: 47 
Year: 2011 
Month: 3 
Keywords: earnings manipulation, managerial sentiment, overinvestment, underinvestment, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K70V14T80K821N16 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 J., and A. Weiss. 1981. "Credit Rationing in Markets with Imperfect
 Information." >i>American Economic Review>/i> 71, no. 3:
 393-410.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Stulz, R. 1990. "Managerial Discretion and Optimal Financing
 Policies." >i>Journal of Financial Economics>/i> 26, no. 1:
 3-27.</BIBTEXT>      </REF>	  <REF>        <BIBL>22</BIBL>	     
 <BIBTEXT> Tobin, J. 1969. "A General Equilibrium Approach to Monetary
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 <BIBTEXT> Tucker, X. J., and P. Zarowin. 2006. "Does Income Smoothing
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 251-270.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:2:p:99-111




Template-Type: ReDIF-Article 1.0
Author-Name: Her-Jiun Sheu 
Author-X-Name-First: Her-Jiun 
Author-X-Name-Last: Sheu 
Author-Name: Yu-Chen Wei 
Author-X-Name-First: Yu-Chen 
Author-X-Name-Last: Wei 
Title: Options Trading Based on the Forecasting of Volatility Direction with the Incorporation of Investor Sentiment 
Abstract:
 Using options price data on the Taiwanese stock market, we propose an
 options trading strategy based on the forecasting of volatility direction.
 The forecasting models are constructed with the incorporation of absolute
 returns, heterogeneous autoregressive-realized volatility (HAR-RV), and
 proxy of investor sentiment. After we take into consideration the
 margin-based transaction costs, the results of our simulated trading
 indicate that a straddle trading strategy that considers the forecasting
 of volatility direction with the incorporation of market turnover achieves
 the best Sharpe ratios. Our trading algorithm bridges the gap between
 options trading, market volatility, and the information content of
 investor overreaction.
Journal: Emerging Markets Finance and Trade 
Pages: 31-47 
Issue: 2 
Volume: 47 
Year: 2011 
Month: 3 
Keywords: HAR-RV model, investor sentiment, market turnover, options trading, volatility forecasting, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R5078T67V7727603 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Andersen, T. G.; T.
 Bollerslev; F. X. Diebold; and H. Ebens. 2001. "The Distribution of
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      <BIBTEXT> Arms, R. W. 1989. >i>The Arms Index (TRIN): An Introduction
 to the Volume Analysis of Stock and Bond Markets.>/i> New York:
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 <BIBTEXT> Baker, M., and J. C. Stein. 2004. "Market Liquidity as a
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 271-299.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Baker, M., and J. Wurgler. 2006. "Investor Sentiment and the
 Cross-Section of Stock Returns." >i>Journal of Finance>/i> 61, no. 4:
 1645-1680.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL>	 
 <BIBTEXT> Baker, M., and J. Wurgler. 2007. "Investor Sentiment in the
 Stock Market." >i>Journal of Economic Perspectives>/i> 21, no. 4:
 129-151.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Banerjee, P. S.; J. S. Doran; and D. R. Peterson. 2007. "Implied
 Volatility and Future Portfolio Returns." >i>Journal of Banking &
 Finance>/i> 31, no. 10: 3183-3199.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>7</BIBL>        <BIBTEXT> Bauer, R.; M. Cosemans; and P. Eichholtz.
 2009. "Option Trading and Individual Investor Performance." >i>Journal of
 Banking & Finance>/i> 33, no. 4: 731-746.</BIBTEXT>	  </REF>      <REF>
	<BIBL>8</BIBL>	      <BIBTEXT> Bekiros, S. D., and D. A.
 Georgoutsos. 2008. "Direction-of-Change Forecasting Using a
 Volatility-Based Recurrent Neural Network." >i>Journal of Forecasting>/i>
 27, no. 5: 407-417.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>
	<BIBTEXT> Brown, G. W. 1999. "Volatility, Sentiment, and Noise
 Traders." >i>Financial Analysts Journal>/i> 55, no. 2: 82-90.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>10</BIBL>	   <BIBTEXT> Brown, G. W.,
 and M. T. Cliff. 2004. "Investor Sentiment and the Near-Term Stock
 Market." >i>Journal of Empirical Finance>/i> 11, no. 1: 1-27.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>11</BIBL>	   <BIBTEXT> Canbas, S.,
 and S. Y. Kandir. 2009. "Investor Sentiment and Stock Returns: Evidence
 from Turkey." >i>Emerging Markets Finance & Trade>/i> 45, no. 4
 (July-August): 36-52.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>12</BIBL>	<BIBTEXT> Christoffersen, P. F., and F. X. Diebold.
 2006. "Financial Asset Returns, Direction-of-Change Forecasting, and
 Volatility Dynamics." >i>Management Science>/i> 52, no. 8:
 1273-1287.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT> Clarke, R. G., and M. Statman. 1998. "Bullish or Bearish?"
 >i>Financial Analysts Journal>/i> 54, no. 3: 63-72.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Corrado, C. J., and T.
 W. Miller. 2005. "The Forecast Quality of CBOE Implied Volatility
 Indexes." >i>Journal of Futures Markets>/i> 25, no. 4: 339-373.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Corsi, F.
 2009. "A Simple Approximate Long-Memory Model of Realized Volatility."
 >i>Journal of Financial Econometrics>/i> 7, no. 2: 174-196.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> De Long, J. B.;
 A. Shleifer; L. G. Summers; and R. J. Waldmann. 1990. "Noise Trader Risk
 in Financial Markets." >i>Journal of Political Economy>/i> 98, no. 4:
 703-738.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Diebold, F. X., and R. S. Mariano. 1995. "Comparing Predictive
 Accuracy." >i>Journal of Business and Economics Statistics>/i> 13, no. 3:
 253-263.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT> Engle, R. F., and G. M. Gallo. 2006. "A Multiple-Indicators
 Model for Volatility Using Intra-Daily Data." >i>Journal of
 Econometrics>/i> 131, nos. 1-2: 3-27.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>19</BIBL>	   <BIBTEXT> Fisher, K. L., and M. Statman, M.
 2000. "Investor Sentiment and Stock Returns." >i>Financial Analysts
 Journal>/i> 56, no. 2: 16-23.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>20</BIBL>	<BIBTEXT> Han, B. 2008. "Investor Sentiment and
 Option Prices." >i>Review of Financial Studies>/i> 21, no. 1:
 387-414.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Hull, J. C. 2006. >i>Options, Futures, and Other
 Derivatives>/i>, 6th ed. Upper Saddle River, NJ: Prentice Hall.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT> Lee, W. Y.;
 C. X. Jiang; and D. C. Indro. 2002. "Stock Market Volatility, Excess
 Returns, and the Role of Investor Sentiment." >i>Journal of Banking &
 Finance>/i> 26, no. 12: 2277-2299.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>23</BIBL>	<BIBTEXT> Low, C. 2004. "The Fear and Exuberance
 from Implied Volatility of S&P 100 Index Options." >i>Journal of
 Business>/i> 77, no. 3: 527-546.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>24</BIBL>	<BIBTEXT> Maris, K.; K. Nikolopoulos; K. Giannelos;
 and V. Assimakopoulos. 2007. "Options Trading Driven by Volatility
 Directional Accuracy." >i>Applied Economics>/i> 39, no. 2:
 253-260.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> MuÃƒÂ±oz, M. P.; M. Marquez; and L. M. Acosta. 2007. "Forecasting
 Volatility by Means of Threshold Models." >i>Journal of Forecasting>/i>
 26, no. 5: 343-363.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>26</BIBL>	<BIBTEXT> Newey, W. K., and K. D. West. 1987. "A
 Simple, Positive-Definite, Heteroskedasticity and Autocorrelation
 Consistent Covariance Matrix." >i>Econometrica>/i> 55, no. 3:
 703-708.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT> Poon, S. H., and C. W. J. Granger. 2003. "Forecasting Volatility
 in Financial Markets: A Review." >i>Journal of Economic Literature>/i> 41,
 no. 2: 478-539.</BIBTEXT>	</REF>	    <REF>	 <BIBL>28</BIBL>   
     <BIBTEXT> Sharpe, W. F. 1994. "The Sharpe Ratio." >i>Journal of
 Portfolio Management>/i> 21, no. 1: 49-58.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>29</BIBL>	     <BIBTEXT> Simon, D. P., and R. A.
 Wiggins. 2001. "S&P Futures Returns and Contrary Sentiment Indicators."
 >i>Journal of Futures Markets>/i> 21, no. 5: 447-462.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>30</BIBL>	 <BIBTEXT> Solt, M. E., and
 M. Statman. 1988. "How Useful Is the Sentiment Index?" >i>Financial
 Analysts Journal>/i> 44, no. 5: 45-55.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>31</BIBL>	    <BIBTEXT> Verma, R., and P. Verma. 2007. "Noise
 Trading and Stock Market Volatility." >i>Journal of Multinational
 Financial Management>/i> 17, no. 3: 231-243.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>32</BIBL>	     <BIBTEXT> Wang, Y. H.; A. Keswani; and
 S. Taylor. 2006. "The Relationships Between Sentiment, Returns and
 Volatility." >i>International Journal of Forecasting>/i> 22, no. 1:
 109-123.</BIBTEXT>	 </REF>      <REF>	  <BIBL>33</BIBL>	
 <BIBTEXT> Whaley, R. E. 2000. "The Investor Fear Gauge." >i>Journal of
 Portfolio Management>/i> 26, no. 3: 12-17.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:2:p:31-47




Template-Type: ReDIF-Article 1.0
Author-Name: Fengyi Lin 
Author-X-Name-First: Fengyi 
Author-X-Name-Last: Lin 
Author-Name: Liming Guan 
Author-X-Name-First: Liming 
Author-X-Name-Last: Guan 
Author-Name: Wenchang Fang 
Author-X-Name-First: Wenchang 
Author-X-Name-Last: Fang 
Title: Heaping in Reported Earnings: Evidence from Monthly Financial Reports of Taiwanese Firms 
Abstract:
 Heaping is a phenomenon in which reported numbers tend to appear in
 increments that are important for cultural or other reasons. This study
 reports that heaping is present in monthly earnings reports for publicly
 listed companies in Taiwan. We find that Taiwanese firms tend to report
 monthly earnings in increments of 5 in the first two places (digits) of
 the earnings numbers. Furthermore, we observe predominantly more zeros in
 the third through fifth places of monthly earnings numbers, suggesting
 that monthly earnings tend to be reported in increments of 10 in the first
 three, first four, and first five places. Reporting of monthly earnings in
 Taiwan is discretionary, and our findings suggest that managers of
 Taiwanese firms are susceptible to heuristic bias when reporting monthly
 earnings. These findings complement studies on heaping in U.S. financial
 markets documenting that managers and financial analysts tend to make
 earnings per share estimates that heap in increments of nickels.
Journal: Emerging Markets Finance and Trade 
Pages: 62-73 
Issue: 2 
Volume: 47 
Year: 2011 
Month: 3 
Keywords: Benford's law, cognitive bias, heaping, voluntary disclosure, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T23T175Q064435GV 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bamber, L.; K. Hui; and
 P. Yeung. 2010. "Managers' EPS Forecasts: Nickeling and Diming the
 Market?" >i>Accounting Review>/i> 85, no. 1: 63-95.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Benford, F. 1938. "The
 Law of Anomalous Numbers." >i>Proceedings of the American Philosophical
 Society>/i> 78, no. 4 (March): 551-572.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>3</BIBL>	    <BIBTEXT> Brown, L.; E. Burgess; S. Sales; J.
 Whiteley; M. Evans; and I. Miller. 1998. "Reliability and Validity of a
 Smoking Timeline Follow-Back Interview." >i>Psychology of Addictive
 Behaviors>/i> 12, no. 2: 101-112.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>4</BIBL>        <BIBTEXT> Chiang, Y., and C. Ko. 2009. "An Empirical
 Study of Equity Agency Costs and Internationalization: Evidence from
 Taiwanese Firms." >i>Research in International Business and Finance>/i>
 23, no. 3: 369-382.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>
	<BIBTEXT> Cho, W., and B. Gaines. 2007. "Breaking the (Benford)
 Law: Statistical Fraud Detection in Campaign Finance." >i>American
 Statistician>/i> 61, no. 3 (August): 218-223.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Guan, L.; F. Lin; and W.
 Fang. 2008. "Goal-Oriented Earnings Management: Evidence from Taiwanese
 Firms." >i>Emerging Markets Finance & Trade>/i> 44, no. 4 (July-August):
 19-32.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	     
 <BIBTEXT> Herrmann, D., and W. Thomas. 2005. "Rounding of Analyst
 Forecasts." >i>Accounting Review>/i> 80, no. 3: 805-823.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Huang, C., and C.
 Lin. 2007. "Earnings Management in IPO Lockup and Insider Trading:
 Evidence from Taiwan." >i>Emerging Markets Finance & Trade>/i> 43, no. 5
 (September-October): 78-91.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>9</BIBL>        <BIBTEXT> Huttenlocher, J.; L. Hedges; and N.
 Bradburn. 1990. "Reports of Elapsed Time: Bounding and Rounding Processes
 in Estimation." >i>Journal of Experimental Psychology>/i> 16 (March):
 196-213.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Lin, C.; C. Liu; and M. Li. 2009. "Trading Behaviors of
 Insiders: A Speculative Trading Model and Empirical Evidence." >i>Emerging
 Markets Finance & Trade>/i> 45, no. 5 (September-October):
 62-71.</BIBTEXT>      </REF>	   <REF>	<BIBL>11</BIBL>       
 <BIBTEXT> Liu, C., and T. Chen. 1998. "Factors Influencing Managers'
 Behavior and Timing of Voluntary Earnings Forecasts: An Empirical Study of
 Firms Listed on the Taiwan Stock Exchange." >i>Journal of Financial
 Studies>/i> 6, no. 1 (July): 1-43.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>12</BIBL>	<BIBTEXT> McCarty, C.; P. Killworth; H. Bernard; E.
 Johnson; and G. Shelley. 2001. "Comparing Two Methods for Estimating
 Network Size." >i>Human Organization>/i> 60 (Spring): 28-39.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>13</BIBL>	  <BIBTEXT> Newcomb, S.
 1881. "Note on the Frequency of Use of the Different Digits in Natural
 Numbers." >i>American Journal of Mathematics>/i> 4, no. 1:
 39-40.</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>       
 <BIBTEXT> Nieh, C.; H. Yau; and W. Liu. 2008. "Investigation of Target
 Capital Structure for Electronic Listed Firms in Taiwan." >i>Emerging
 Markets Finance & Trade>/i> 44, no. 4 (July-August): 75-87.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Nigrini, M., and
 L. Mittermaier. 1997. "The Use of Benford's Law as an Aid in Analytical
 Procedures." >i>Auditing: A Journal of Practice & Theory>/i> 2 (Fall):
 52-67.</BIBTEXT>      </REF>	   <REF>	<BIBL>16</BIBL>       
 <BIBTEXT> Roberts, J., and D. Brewer. 2001. "Measures and Tests of Heaping
 in Discrete Quantitative Distributions." >i>Journal of Applied
 Statistics>/i> 28, no. 7: 887-896.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>17</BIBL>	<BIBTEXT> Rowland, M. 1990. "Self-Reported Weight
 and Height." >i>American Journal of Clinical Nutrition>/i> 52, no. 6:
 1125-1133.</BIBTEXT>	   </REF>      <REF>	    <BIBL>18</BIBL>	  
 <BIBTEXT> Shu, P.; Y. Yeh; and Y. Su. 2009. "Decisions of Initial Public
 Offering Review Committees: Causes and Consequences." >i>Emerging Markets
 Finance & Trade>/i> 45, no. 3 (May-June): 67-82.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>19</BIBL>	      <BIBTEXT> Stockwell, E., and J.
 Wicks. 1974. "Age Heaping in Recent National Censuses." >i>Social
 Biology>/i> 21 (Summer): 163-167.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>20</BIBL>	<BIBTEXT> Thomas, J. 1989. " Unusual Patterns in
 Reported Earnings." >i>Accounting Review>/i> 64, no. 4: 773-787.</BIBTEXT>
      </REF>	  <REF>        <BIBL>21</BIBL>	      <BIBTEXT> Torelli,
 N., and U. Trivellato. 1993. "Modeling Inaccuracies in Job-Search Duration
 Data." >i>Journal of Econometrics>/i> 59, no. 1 (January-February):
 187-211.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Turner, S. 1958. "Patterns of Heaping in the Reporting of
 Numerical Data." In >i>Proceedings of the Social Statistics Section,
 American Statistical Association>/i>, pp. 248-251. Washington, DC:
 American Statistical Association.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>23</BIBL>	<BIBTEXT> Ureta, M. 1992. "The Importance of
 Lifetime Jobs in the U. S. Economy, Revisited." >i>American Economic
 Review>/i> 82, no. 1: 322-335.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>24</BIBL>	<BIBTEXT> Wen, S.; M. Kramer; J. Hoey; J. Hanley;
 and R. Usher. 1993. "Terminal Digit Preference, Random Error, and Bias in
 Routine Clinical Measurement of Blood Pressure." >i>Journal of Clinical
 Epidemiology>/i> 46, no. 10: 1187-1193.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>25</BIBL>	     <BIBTEXT> Wright, D., and I. Bray. 2003. "A
 Mixture Model for Rounded Data." >i>Journal of the Royal Statistical
 Society>/i> 52, no. 1: 3-13.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>26</BIBL>	<BIBTEXT> Zhou, L. 2011 forthcoming. "Nickels Not
 Pennies: Granularity in Analysts' EPS Forecasts and Forecast Revisions."
 >i>Journal of Accounting, Auditing and Finance.>/i></BIBTEXT>	    </REF>  
Handle: RePEc:mes:emfitr:v:47:y:2011:i:2:p:62-73




Template-Type: ReDIF-Article 1.0
Author-Name: Byungmo Kim 
Author-X-Name-First: Byungmo 
Author-X-Name-Last: Kim 
Title: Do Foreign Investors Encourage Value-Enhancing Corporate Risk Taking? 
Abstract:
 This paper examines whether foreign investors in Korea affect incentives
 for firms to take risks in corporate investment. The short-term focus of
 foreign investors encourages managers to engage in conservative investment
 behavior. On the other hand, foreign investors encourage managers to focus
 on long-term value rather than short-term returns as active participants
 in corporate governance. These competing views are examined by testing for
 the association between foreign ownership and variations in corporate cash
 flow, a proxy for the risk of chosen investments. Furthermore, we examine
 whether risk taking is positively associated with firm growth, which is a
 primary concern in debates regarding the myopic behaviors of foreign
 investors. The results show that firms with high foreign ownership are
 less likely to avoid risk takingÃ¢Â€Â”and that risk taking is, in turn,
 positively associated with firm growth, implying that foreign investors
 perform a monitoring function in encouraging value-enhancing risk taking.
Journal: Emerging Markets Finance and Trade 
Pages: 88-110 
Issue: 3 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: foreign investors, growth, Korea, risk taking, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8137288130763718 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abel, I., and P.
 Siklos. 2004. "Secrets to the Successful Hungarian Bank Privatization: The
 Benefits of Foreign Ownership Through Strategic Partnerships." >i>Economic
 Systems>/i> 28, no. 2: 111-123.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>2</BIBL>        <BIBTEXT> Abrahamson, E., and C. Park. 1994.
 "Concealment of Negative Organizational Outcomes: An Agency Theory
 Perspective." >i>Academy of Management Journal>/i> 37, no. 5:
 1302-1334.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL>	 
 <BIBTEXT> Agrawal, A., and G. Mandelker. 1987. "Managerial Incentives and
 Corporate Investment and Financing Decisions." >i>Journal of Finance>/i>
 42, no. 4: 823-837.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>
	<BIBTEXT> Amihud, Y., and B. Lev. 1981. "Risk Reduction as a
 Managerial Motive for Conglomerate Mergers." >i>Bell Journal of
 Economics>/i> 12, no. 2: 605-617.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>5</BIBL>        <BIBTEXT> Bae, J., and M. Hwang. 2007. "The Effect
 of Foreign Stock Ownership on Corporate Dividends and Investments."
 Research report, Bank of Korea (in Korean).</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Bae, K.-H.; J.-K. Kang; and
 J.-M. Kim. 2002. "Tunneling or Value Added? Evidence from Mergers by
 Korean Business Groups." >i>Journal of Finance>/i> 57, no. 6:
 2695-2740.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> Baysinger, B.; R. Kosnik; and T. Turk. 1991. "Effects of Board
 and Ownership Structure on Corporate R&D Strategy." >i>Academy of
 Management Journal>/i> 34, no. 1: 205-214.</BIBTEXT>	   </REF>     
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 2000. "Foreign Speculators and Emerging Equity Markets." >i>Journal of
 Finance>/i> 55, no. 2: 565-613.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>9</BIBL>        <BIBTEXT> Berger, P. 1993. "Explicit and Implicit
 Tax Effects of the R&D Tax Credit." >i>Journal of Accounting Research>/i>
 31, no. 2: 131-171.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>10</BIBL>	<BIBTEXT> Bolton, P., and E.-L. Thadden. 1998.
 "Blocks, Liquidity and Corporate Control." >i>Journal of Finance>/i> 53,
 no. 1: 1-25.</BIBTEXT>      </REF>	 <REF>	      <BIBL>11</BIBL>	   
  <BIBTEXT> Bushee, B. 1998. "The Influence of Institutional Investors on
 Myopic R&D Investment Behavior." >i>Accounting Review>/i> 73, no. 3:
 305-333.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Cho, Y., and W. Seol. 2006. "Foreign Shareholders and Firms' R&D
 Investment." >i>Korean Journal of International Business Studies>/i> 17,
 no. 4: 127-156 (in Korean).</BIBTEXT>	    </REF>	<REF>	    
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:3:p:88-110




Template-Type: ReDIF-Article 1.0
Author-Name: Magdalena Morgese Borys 
Author-X-Name-First: Magdalena Morgese 
Author-X-Name-Last: Borys 
Author-Name: Petr ZemÃ„Âik 
Author-X-Name-First: Petr 
Author-X-Name-Last: ZemÃ„Âik 
Title: Size and Value Effects in the Visegrad Countries 
Abstract:
 This paper has two main objectives. The first is to test for the presence
 of size and book-to-market value effects in the Visegrad countries (the
 Czech Republic, Hungary, Poland, and Slovakia). Such effects have been
 found in the U.S. stock market and in many other developed stock markets.
 The authors demonstrate that sizeand value do explain the expected
 return/cost of capital in eastern Europe. From this result they proceed by
 constructing regional size and book-to-market portfolios for a combined
 Visegrad market. Returns on these portfolios serve as factors in addition
 to the market portfolio. The second objective is constructing a model for
 the cost of capital. The regional three-factor model outperforms
 country-specific versions of the model, and it can be estimated for a more
 current sample in Prague, Budapest, Warsaw, and Bratislava. Therefore, it
 is a plausible model for the cost of capital in this region, and it is
 used to calculate the cost of capital for the following industries: banks;
 capital goods; food, beverage, and tobacco; materials; and utilities.
Journal: Emerging Markets Finance and Trade 
Pages: 50-68 
Issue: 3 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: book-to-market ratio, Fama and French factors, size, Visegrad countries, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=842451J85207709V 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahmed, E.; J.B. Rosser,
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:3:p:50-68




Template-Type: ReDIF-Article 1.0
Author-Name: K. Ozgur Demirtas 
Author-X-Name-First: K. Ozgur 
Author-X-Name-Last: Demirtas 
Author-Name: Duygu Zirek 
Author-X-Name-First: Duygu 
Author-X-Name-Last: Zirek 
Title: Aggregate Earnings and Expected Stock Returns in Emerging Markets 
Abstract:
 This paper examines the time-series predictability of aggregate stock
 returns in twenty emerging markets. In contrast to the aggregate-level
 findings in the United States, earnings yield forecasts the time series of
 aggregate stock returns in emerging markets. We consider aggregate
 earnings not as normalizing variables for stock price but as predictive
 variables in their own right. Aggregate earnings covary with the market
 returns; hence, it is not just the mean reversion of stock prices that is
 responsible for the forecasting power of earnings yield. These results are
 robust across different estimation methods and after controlling for
 small-sample bias and macroeconomic variables.
Journal: Emerging Markets Finance and Trade 
Pages: 4-22 
Issue: 3 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: business cycle, earnings, emerging markets, market returns, predictability, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=85Q36783X06K5261 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bali, T.G.; K.O.
 Demirtas; and H. Levy. 2008. "Nonlinear Mean Reversion in Stock Prices."
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:3:p:4-22




Template-Type: ReDIF-Article 1.0
Author-Name: Julia Korosteleva 
Author-X-Name-First: Julia 
Author-X-Name-Last: Korosteleva 
Author-Name: Tomasz Mickiewicz 
Author-X-Name-First: Tomasz 
Author-X-Name-Last: Mickiewicz 
Title: Start-Up Financing in the Age of Globalization 
Abstract:
 The authors investigate the determinants of start-up financing in
 fifty-four countries, using the Global Entrepreneurship Monitor (GEM)
 surveys for the years 2001-6. They find that financial liberalization
 increases the total financial size of the individual start-up
 entrepreneurial project both via the increased use of external and of own
 funds. In addition, the volume of start-up finance responds positively to
 international capital inflows, as represented by loans from nonresident
 banks and remittances, and negatively to the volume of offshore deposits.
 The positive impact of remittances on total volume of start-up financing
 is via financing by the entrepreneur.
Journal: Emerging Markets Finance and Trade 
Pages: 23-49 
Issue: 3 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: capital flows, entrepreneurial traits, financial freedom, Global Entrepreneurship Monitor survey, informal finance, start-up financing, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8N3071K465181157 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:3:p:23-49




Template-Type: ReDIF-Article 1.0
Author-Name: Chiao Yi Chang 
Author-X-Name-First: Chiao Yi 
Author-X-Name-Last: Chang 
Author-Name: Fu Shuen Shie 
Author-X-Name-First: Fu Shuen 
Author-X-Name-Last: Shie 
Title: The Relation Between Relative Order Imbalance and Intraday Futures Returns: An Application of the Quantile Regression Model to Taiwan 
Abstract:
 Adopting the quantile regression model, this paper describes the positive
 relation between relative order imbalance and intraday futures returns.
 The positive connection is relatively stronger for lower quantiles of
 intraday futures returns than for higher quantiles. However, the
 connection vanishes within 30 minutes. The results reflect the
 compensation of the uncertainty and the absence of liquidity for
 relatively lower returns in the Taiwan futures market. Furthermore, this
 paper finds evidence supporting an L-shaped pattern for intraday futures
 returns.
Journal: Emerging Markets Finance and Trade 
Pages: 69-87 
Issue: 3 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: intraday data, order imbalance, quantile regression model, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8U6327228N5583R1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:3:p:69-87




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 3 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y487L797271H0P5U 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:3:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: Jangkoo Kang 
Author-X-Name-First: Jangkoo 
Author-X-Name-Last: Kang 
Author-Name: Changjun Lee 
Author-X-Name-First: Changjun 
Author-X-Name-Last: Lee 
Author-Name: Doowon Lee 
Author-X-Name-First: Doowon 
Author-X-Name-Last: Lee 
Title: Equity Fund Performance Persistence with Investment Style: Evidence from Korea 
Abstract:
 Using a comprehensive database on equity funds in Korea, we investigate
 the performance and performance persistence with investment style
 employing the Fama and French three-factor model and the Carhart
 four-factor model. The paper finds that most investment styles in Korea
 noticeably outperform the passive benchmarks. In addition, positive
 performance persistence is observed among funds investing in large-cap
 stocks and stocks of high past performance. Finally, outperformance and
 positive performance persistence of equity funds are still present in
 various ranking and postranking horizons. These empirical findings are in
 sharp contrast with results from earlier studies on markets in developed
 countries, such as the United States.
Journal: Emerging Markets Finance and Trade 
Pages: 111-135 
Issue: 3 
Volume: 47 
Year: 2011 
Month: 5 
Keywords: asset allocation, equity fund performance, investment style, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y5V08L0621607773 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 "The Cross-Section of Stock Returns in Korea: An Empirical Investigation."
 >i>Asian Review of Financial Research>/i> 22, no. 1: 1-44.</BIBTEXT>	  
 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:3:p:111-135




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Dreger 
Author-X-Name-First: Christian 
Author-X-Name-Last: Dreger 
Author-Name: Jarko Fidrmuc 
Author-X-Name-First: Jarko 
Author-X-Name-Last: Fidrmuc 
Title: Drivers of Exchange Rate Dynamics in Selected CIS Countries: Evidence from a Factor-Augmented Vector Autoregressive (FAVAR) Analysis 
Abstract:
 We investigate the likely sources of exchange rate dynamics in selected
 member countries of the Commonwealth of Independent States (CIS; Russia,
 Kazakhstan, Ukraine, Kyrgyzstan, Azerbaijan, and Moldova) over the past
 decade (1999-2010). Evidence is based on country VARs augmented by a
 regional common-factor structure (FAVAR model). The models include nominal
 exchange rates, the common factor of exchange rates in the CIS countries,
 and international drivers such as global trade, share prices, and oil
 price. Global, regional, and idiosyncratic shocks are identified in a
 standard Cholesky fashion. Their relevance for exchange rates is explored
 by a decomposition of the variance of forecast errors. The impact of
 global shocks on the development of exchange rates has increased,
 particularly if financial shocks are considered. Because of the recent
 global financial crisis, regional shocks have become more important at the
 expense of global shocks.
Journal: Emerging Markets Finance and Trade 
Pages: 49-58 
Issue: 4 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: CIS countries, exchange rates, FAVAR models, financial crisis, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=0647560HT2458955 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bai, J., and S. Ng.
 2002. "Determining the Number of Factors in Approximate Factor Models."
 >i>Econometrica>/i> 70, no. 1: 191-221.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>2</BIBL>	    <BIBTEXT> Bernanke, B.; J. Boivin; and P.S.
 Eliasz. 2005. "Measuring the Effects of Monetary Policy: A
 Factor-Augmented Vector Autoregressive (FAVAR) Approach." >i>Quarterly
 Journal of Economics>/i> 120, no. 1: 387-422.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Chaplygin, V.; A.H. Hallett;
 and C. Richter. 2006. "Monetary Integration in the Ex-Soviet Union: A
 Ã¢Â€Â˜Union of FourÃ¢Â€Â™?" >i>Economics of Transition>/i> 14, no. 1:
 47-68.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT> Dufrenot, G., and B. ÃƒÂ‰gert. 2005. "Real Exchange Rates in
 Central and Eastern Europe: What Scope for the Underlying Fundamentals?"
 >i>Emerging Markets Finance & Trade>/i> 41, no. 2 (March-April):
 41-59.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> EeAgert, B. 2005. "Equilibrium Exchange Rates in South Eastern
 Europe, Russia, Ukraine and Turkey: Healthy or (Dutch) Diseased?"
 >i>Economic Systems>/i> 29, no. 2: 205-241.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> ÃƒÂ‰gert, B., and C. Leonard.
 2008. "Dutch Disease Scare in Kazakhstan: Is It Real?" >i>Open Economies
 Review>/i> 19, no. 2: 147-165.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>7</BIBL>        <BIBTEXT> Elbourne, A., and J. de Haan. 2009.
 "Modeling Monetary Policy Transmission in Acceding Countries: Vector
 Autoregression Versus Structural Vector Autoregression." >i>Emerging
 Markets Finance & Trade>/i> 45, no. 2 (March-April): 4-20.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Fidrmuc, J., and
 J. Fidrmuc. 2003. "Disintegration and Trade." >i>Review of International
 Economies>/i> 11, no. 5: 811-829.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>9</BIBL>        <BIBTEXT> FungÃƒÂ¡Ã„ÂovÃƒÂ¡, Z., and L. Solanko. 2008.
 "Risk Taking by Russian Banks: Do Location, Ownership and Size Matter?"
 Bank of Finland Institute for Economies in Transition (BOFIT) Discussion
 Paper 21/08, Helsinki.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Juselius, K. 2007. >i>The Cointegrated
 VAR Model: Methodology and Applications.>/i> Oxford: Oxford University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>11</BIBL>       
 <BIBTEXT> Korhonen, I., and A. Mehrotra. 2009. "Real Exchange Rate, Output
 and Oil: Case of Four Large Energy Producers." Bank of Finland Institute
 for Economies in Transition (BOFIT) Discussion Paper 6/09,
 Helsinki.</BIBTEXT>	  </REF>      <REF>	   <BIBL>12</BIBL>	 
 <BIBTEXT> Korhonen, I., and P. Wachtel. 2006. "A Note on Exchange Rate
 Pass-Through in CIS Countries." >i>Research in International Business and
 Finance>/i> 20, no. 2: 215-226.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>13</BIBL>	<BIBTEXT> KoÃ…Âºluk, T. 2008. "Global and Regional
 Links Between Stock MarketsÃ¢Â€Â”The Case of Russia and China." Bank of
 Finland Institute for Economies in Transition (BOFIT) Discussion Paper
 4/08, Helsinki.</BIBTEXT>	</REF>	    <REF>	 <BIBL>14</BIBL>   
     <BIBTEXT> Kutan, A.M., and M.L. Wyzan. 2005. "Explaining the Real
 Exchange Rate in Kazakhstan, 1996-2003: Is Kazakhstan Vulnerable to the
 Dutch Disease?" >i>Economic Systems>/i> 29, no. 2: 242-255.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Lommatzsch, K.,
 and S. Tober. 2004. "What Is Behind the Real Appreciation of the Accession
 Countries' Currencies? An Investigation of the PPI-Based Real Exchange
 Rate." >i>Economic Systems>/i> 28, no. 4: 383-403.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>16</BIBL>	<BIBTEXT> MacDonald, R., and C.
 WÃƒÂ³jcik. 2008. "Productivity, Demand, and Regulated Price Effects
 Revisited: An Analysis of the Real Bilateral Exchange Rates of Four New EU
 Member States." >i>Emerging Markets Finance & Trade>/i> 44, no. 3
 (May-June): 48-65.</BIBTEXT>	   </REF>      <REF>	    <BIBL>17</BIBL>
	<BIBTEXT> Marcellino, M.; J.H. Stock; and M.W. Watson. 2003.
 "Macroeconomic Forecasting in the Euro Area: Country Specific Versus
 Area-Wide Information." >i>European Economic Review>/i> 47, no. 1:
 1-18.</BIBTEXT>      </REF>	  <REF>        <BIBL>18</BIBL>	     
 <BIBTEXT> Mayes, D.G., and V. Korhonen. 2007. "The CIS: Does the Regional
 Hegemon Facilitate Monetary Integration?" Bank of Finland Institute for
 Economies in Transition (BOFIT) Discussion Paper 16/07,
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 <BIBTEXT> Odling-Smee, J. 2006. "The IMF and Russia in the 1990s." >i>IMF
 Staff Papers>/i> 53, no. 1: 151-194.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>20</BIBL>	  <BIBTEXT> Oomes, N., and K. Kalcheva. 2007.
 "Diagnosing Dutch Disease: Does Russia Have the Symptoms?" Bank of Finland
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 <BIBTEXT> Schnabl, G. 2005. "International Capital Markets and Exchange
 Rate Stabilization in the CIS." >i>Journal of Comparative Economics>/i>
 33, no. 3: 425-440.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>22</BIBL>	<BIBTEXT> Shiells, C.R.; P. Marco; and E. Jafarov.
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 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>23</BIBL>	     <BIBTEXT> Shleifer, A., and D.
 Treisman. 2005. "A Normal Country: Russia After Communism." >i>Journal of
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 <REF>	      <BIBL>24</BIBL>	     <BIBTEXT> Sims, C.A.; J.H. Stock; and
 M.W. Watson. 1990. "Inference in Linear Time Series Models with Some Unit
 Roots." >i>Econometrica>/i> 58, no. 1: 113-144.</BIBTEXT>	</REF>	   
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 Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:4:p:49-58




Template-Type: ReDIF-Article 1.0
Author-Name: Olga Loiseau-Aslanidi 
Author-X-Name-First: Olga 
Author-X-Name-Last: Loiseau-Aslanidi 
Title: Determinants and Effectiveness of Foreign Exchange Market Intervention in Georgia 
Abstract:
 This paper uses unique daily data to study the determinants and the
 effectiveness of partially sterilized intervention by the National Bank of
 Georgia (NBG) during the period 1996-2007. Detected structural breaks in
 the exchange rate and the intervention series are important for NBG
 intervention motives and effectiveness. The central bank reaction
 functions indicate that the NBG leans against the wind while smoothing the
 exchange rate. The intended effect on the level of the exchange rate is
 observed the day after intervention is conducted. However, the conditional
 volatility increases with intervention.
Journal: Emerging Markets Finance and Trade 
Pages: 75-95 
Issue: 4 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: determinants of intervention, effectiveness of intervention, foreign exchange intervention, Georgia, structural break, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=1J670W1H8X616277 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aarle, B.; E. Jong; and
 R. Sosoian. 2006. "Exchange Rate Management in Ukraine: Is There a Case
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 ÃƒÂ‡ulha; ÃƒÂœ. ÃƒÂ–zlale; and G. Sahinbeyoglu. 2005b. "Causes and Effectiveness
 of Foreign Exchange Interventions for the Turkish Economy." Working Paper
 no. 05, Central Bank of the Republic of Turkey Research Department,
 Ankara.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>       
 <BIBTEXT> Almekinders, G. 1995. >i>Foreign Exchange Intervention: Theory
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 Do Central Banks Intervene?" >i>Journal of International Money and
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 <BIBL>9</BIBL>        <BIBTEXT> Billmeier, A., and G. Bakradze. 2007.
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 <BIBTEXT> Galati, G.; W. Melick; and M. Micu. 2005. "Foreign Exchange
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 Economics and Finance>/i> 56, nos. 9-10: 398-415.</BIBTEXT>	  </REF>   
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:4:p:75-95




Template-Type: ReDIF-Article 1.0
Author-Name: Dongwei Su 
Author-X-Name-First: Dongwei 
Author-X-Name-Last: Su 
Title: An Empirical Analysis of Industry Momentum in Chinese Stock Markets 
Abstract:
 This paper documents significant abnormal profits for industry momentum
 strategies in Chinese stock markets. Industry momentum remains profitable
 even after controlling for lead-lag effect, the January effect, and
 individual stock momentum. Moreover, momentum profits generated by
 industry-specific components are much larger than those generated by
 common-factor components of the Fama-French three-factor model and a
 delayed-reaction three-factor model. The findings provide new evidence
 that momentum profits are due to idiosyncratic risk and investors'
 underreaction to industry-specific information. The implication is that
 behavioral biases, market manipulation, and institutional trading are
 pivotal in explaining why stock prices do not incorporate
 industry-specific news instantaneously.
Journal: Emerging Markets Finance and Trade 
Pages: 4-27 
Issue: 4 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: asset pricing, behavioral biases, Chinese stock markets, industry returns, momentum, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=722731535M6L070T 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R., and G.
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 N., and S. Titman. 1995. "Overreaction, Delayed Reaction and Contrarian
 Profits." >i>Review of Financial Studies>/i> 8, no. 4: 973-993.</BIBTEXT> 
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 M.H. Liu; and S. Ni. 2002. "Contrarian and Momentum Strategies in the
 China Stock Market: 1993-2000." >i>Pacific-Basin Finance Journal>/i> 10,
 no. 3: 243-265.</BIBTEXT>	</REF>	    <REF>	 <BIBL>23</BIBL>   
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 the Trading Behaviors of Individual Investors in China." >i>Economic
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 MacKinlay. 1990. "When Are Contrarian Profits Due to Stock Market
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 <BIBTEXT> Moskowitz, T.J., and M. Grinblatt. 1999. "Do Industries Explain
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 Santamaria. 2007. "The Momentum Effect in Latin American Emerging
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 <BIBTEXT> Naughton, T.; C. Truong; and M. Veeraraghavan. 2008. "Momentum
 Strategies and Stock Returns: Chinese Evidence." >i>Pacific-Basin Finance
 Journal>/i> 16, no. 4: 476-492.</BIBTEXT>	</REF>	    <REF>	
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 Behavior of Institutions and Individuals in Chinese Equity Markets."
 >i>Journal of Banking and Finance>/i> 31, no. 9: 2695-2710.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>31</BIBL>	 <BIBTEXT> Nieh, C.C., and
 H.Y. Yau. 2010. "The Impact of Renminbi Appreciation on Stock Prices in
 China." >i>Emerging Markets Finance & Trade>/i> 46, no. 1
 (January-February): 16-26.</BIBTEXT>	   </REF>      <REF>	   
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 "Expropriation: Evidence from Rights Issues in China." >i>Emerging Markets
 Finance & Trade>/i> 44, no. 1 (January-February): 5-20.</BIBTEXT>     
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 Liano; and G. Huang. 2004. "Industry Momentum Strategies and
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 </REF>    
Handle: RePEc:mes:emfitr:v:47:y:2011:i:4:p:4-27




Template-Type: ReDIF-Article 1.0
Author-Name: A. Can Inci 
Author-X-Name-First: A. Can 
Author-X-Name-Last: Inci 
Author-Name: Hakan Saraoglu 
Author-X-Name-First: Hakan 
Author-X-Name-Last: Saraoglu 
Title: International Equity Asset Classes in the Turkish Fund Industry 
Abstract:
 We examine Turkish fund portfolios and identify the role of international
 investments in their formation. We find that (1) Turkish funds hold a very
 small fraction of international assets during 1987-2008, (2) the weight of
 international equity in the funds with an international mandate is smaller
 than the total weight of domestic asset classes as of 2009, and (3)
 international stock holdings of Turkish portfolio managers show
 significant similarity, which can be explained by the fact that the
 managers tend to hold stocks with which they are familiar. We compare the
 performance of funds that have the international investment objective with
 benchmark portfolios and provide suggestions for more diverse funds in the
 Turkish fund industry.
Journal: Emerging Markets Finance and Trade 
Pages: 96-114 
Issue: 4 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: diversification, mutual funds, pension funds, portfolio management, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=HQ8634612L1874TQ 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> >i>BusinessWeek.>/i>
 2009. "100 Best Global Brands." September 28, 2009 (available at >a
 target="_blank"
 href='http://www.businessweek.com/interactive_reports/best_global_brands_2
 009.html'>http://www.businessweek.com/interactive_reports/best_global_bran
 ds_2009.html>/a></BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>   
     <BIBTEXT> Byrne, A.; D. Blake; A. Cairns; and K. Dowd. 2007. "Default
 Funds in U.K. Defined-Contribution Plans." >i>Financial Analysts
 Journal>/i> 63, no. 4: 40-51.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>3</BIBL>        <BIBTEXT> Doganay, M. 2002. "Hisse senedi
 fonlarÃ„Â±nÃ„Â±n cok kriterli karar yaklasÃ„Â±mÃ„Â±yla derecelendirilmesi" [Rating
 of Stock Funds by Using a Multiple Criteria Decision Making Approach].
 >i>Ankara ÃƒÂ¼niversitesi SBF Dergisi>/i> 57, no. 3: 31-48.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Fernando, D.;
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 <BIBTEXT> French, K.R., and J.M. Poterba. 1991. "Investor Diversification
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 <BIBTEXT> GÃƒÂ¶kgÃƒÂ¶z, F. 2007. "Bireysel emeklilik fonlarinin performans
 degerlendirmesi" [A Performance Evaluation for Turkish Pension Funds].
 >i>Hacettepe ÃƒÂ¼niversitesi Ã„Â°ktisadi ve Ã„Â°dari Bilimler FakÃƒÂ¼ltesi
 Dergisi>/i> 25, no. 1: 259-291.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT> GÃƒÂ¼ndÃƒÂ¼z, L., and A. Hatemi-J. 2005.
 "Stock Price and Volume Relation in Emerging Markets." >i>Emerging Markets
 Finance & Trade>/i> 41, no. 1 (January-February): 29-44.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Hiraki, T.; A.
 Ito; and F. Kuroki. 2003. "Investor Familiarity and Home Bias: Japanese
 Evidence." >i>Asia-Pacific Financial Markets>/i> 10, no. 4:
 281-300.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Huberman, G. 2001. "Familiarity Breeds Investment." >i>Review of
 Financial Studies>/i> 14, no. 3: 659-680.</BIBTEXT>	  </REF>      <REF>
	<BIBL>10</BIBL>        <BIBTEXT> Ã„Â°miÃ…ÂŸiker, S., and ÃƒÂœ. ÃƒÂ–zlale.
 2008. "Assessing Selectivity and Market Timing Performance of Mutual Funds
 for an Emerging Market: The Case of Turkey." >i>Emerging Markets Finance &
 Trade>/i> 44, no. 2 (March-April): 87-99.</BIBTEXT>	  </REF>      <REF>
	<BIBL>11</BIBL>        <BIBTEXT> Kang, J.K., and R. Stulz. 1997.
 "Why Is There a Home Bias? An Analysis of Foreign Portfolio Ownership in
 Japan." >i>Journal of Financial Economics>/i> 46, no. 1: 3-28.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>12</BIBL>	    <BIBTEXT> Karatepe, Y.,
 and F. GÃƒÂ¶kgÃƒÂ¶z. 2006. "Style Analysis of Turkish Equity Mutual Funds."
 >i>International Research Journal of Finance and Economics>/i> 2 (March):
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 <BIBTEXT> Karatepe, Y., and F. GÃƒÂ¶kgÃƒÂ¶z. 2007. "A-tipi yatÃ„Â±rÃ„Â±m fonu
 performansÃ„Â±nÃ„Â±n deÃ„ÂŸerlendirilmesi ve performans devamlÃ„Â±lÃ„Â±k analizi"
 [Analysis of Sustainable Performance of Equity Mutual Funds]." >i>Ankara
 ÃƒÂ¼niversitesi SBF Dergisi>/i> 62, no. 2: 75-109.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>14</BIBL>	      <BIBTEXT> Sharpe, W. 1998.
 "Morningstar Performance Measures." >i>Financial Analysts Journal>/i> 54,
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   <BIBTEXT> Shawky, H.A., and D.M. Smith. 2005. "Optimal Number of Stock
 Holdings in Mutual Fund Portfolios Based on Market Performance."
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 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Strong, N., and X. Xu. 2003.
 "Understanding the Equity Home Bias: Evidence from Survey Data." >i>Review
 of Economics and Statistics>/i> 85, no. 2: 307-312.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>17</BIBL>	 <BIBTEXT> Teker, S., and O.
 Muminoglu. 2005. "A Solution for the Aged Turkish Social Security System:
 Private Pension Funds." >i>Elektronik Sosyal Bilimler Dergisi>/i> 4, no.
 13: 16-38.</BIBTEXT>	   </REF>      <REF>	    <BIBL>18</BIBL>	  
 <BIBTEXT> Teker, S.; E. Karakurum; and O. Tav. 2008. "YatÃ„Â±rÃ„Â±m
 fonlarÃ„Â±nÃ„Â±n risk odaklÃ„Â± performans deÃ„ÂŸerlemesi" [Risk-Based Performance
 Evaluation of Mutual Funds]. >i>Dogus Universitesi Dergisi>/i> 9, no. 1:
 89-105.</BIBTEXT>	</REF>	    <REF>	 <BIBL>19</BIBL>       
 <BIBTEXT> Teksoz, A.T., and S. Sayan. 2002. "Simulation of Benefits and
 Risks After the Planned Privatization of the Pension System in Turkey: Is
 the Expected Boost to Financial Markets Feasible?" >i>Emerging Markets
 Finance & Trade>/i> 38, no. 5 (September-October): 23-45.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT> Tesar, L., and
 I.M. Werner. 1995. "Home Bias and High Turnover." >i>Journal of
 International Money and Finance>/i> 14, no. 4: 467-492.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Tokat, E., and
 H.A. Tokat. 2010. "Shock and Volatility Transmission in the Futures and
 Spot Markets: Evidence from Turkish Markets." >i>Emerging Markets Finance
 & Trade>/i> 46, no. 4 (July-August): 92-104.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT> Van Nieuwerburgh, S., and L.
 Veldkamp. 2008. "Information Immobility and the Home Bias Puzzle." Working
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 Aslanoglu. 2005. "Kurumsal yatirimci olarak ozel emeklilik fonlari:
 turkiyede olusturulan sisteme yonelik degerlendirme ve gelecege yonelik
 bir tahmin" [Private Pension Funds as Institutional Investors: The
 Evaluation of the Turkish System and Its Future]. >i>Muhasebe Finansman
 Dergisi>/i> 26, no. 2: 184-197.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:47:y:2011:i:4:p:96-114




Template-Type: ReDIF-Article 1.0
Author-Name: Atakan YalÃƒÂ§Ã„Â±n 
Author-X-Name-First: Atakan 
Author-X-Name-Last: YalÃƒÂ§Ã„Â±n 
Author-Name: Nuri ErsÃ…ÂŸahin 
Author-X-Name-First: Nuri 
Author-X-Name-Last: ErsÃ…ÂŸahin 
Title: Does the Conditional CAPM Work? Evidence from the Istanbul Stock Exchange 
Abstract:
 Using a sample of common stocks traded on the Istanbul Stock Exchange from
 February 1997 to April 2008, we test whether the conditional capital asset
 pricing model (CAPM) accurately prices assets. In our empirical analysis,
 we closely follow the methodology introduced in Lewellen and Nagel (2006).
 Our results show that the conditional CAPM fares no better than the static
 counterpart in pricing assets. Although market betas do vary significantly
 over time, the intertemporal variation is not large enough to drive
 average conditional alphas to zero.
Journal: Emerging Markets Finance and Trade 
Pages: 28-48 
Issue: 4 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: asset pricing, conditional CAPM, emerging markets, short window regression, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=P4V3250568200575 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akdeniz, L.; A.
 Altay-Salih; and K. Aydogan. 2000. "Cross Section of Expected Stock
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 <BIBTEXT> Alper, C.E., and K. Yilmaz. 2004. "Volatility and Contagion:
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:4:p:28-48




Template-Type: ReDIF-Article 1.0
Author-Name: Alfredo JimÃƒÂ©nez 
Author-X-Name-First: Alfredo 
Author-X-Name-Last: JimÃƒÂ©nez 
Title: Political Risk as a Determinant of Southern European FDI in Neighboring Developing Countries 
Abstract:
 This study analyzes foreign direct investment flows from southern European
 countries to one of two nearby developing regions: north African countries
 and new European Union member states in central and eastern Europe. As
 expected, good economic perspectives, human capital, and development of
 infrastructures attract greater investment flows. However, greater levels
 of political risk, measured through scales of political discretion,
 corruption, and economic freedom, do also attract higher inflows. Despite
 the fact that one might expect global flows to fall as a consequence of
 political risk, those from the countries in the sample increase, because
 they come from firms that are searching for a market niche where they can
 take advantage of their political capabilities.
Journal: Emerging Markets Finance and Trade 
Pages: 59-74 
Issue: 4 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: central and eastern Europe, corruption, developing countries, foreign direct investment, multinational enterprise, North Africa, panel data, political risk, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q4635564322JV486 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 641-658.</BIBTEXT>	 </REF>      <REF>	  <BIBL>50</BIBL>	
 <BIBTEXT> Smarzynska, B.K. 2002. "Composition of Foreign Direct Investment
 and Protection of Intellectual Property Rights: Evidence from Transition
 Economies." Policy Research Working Paper no. 1786, World Bank,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>51</BIBL>   
     <BIBTEXT> United Nations Conference on Trade and Development (UNCTAD).
 2003. >i>World Investment Report>/i>. Geneva and New York.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>52</BIBL>	 <BIBTEXT> Wahid, A.N.M.;
 R. Sawkut; and B. Seetanah. 2009. "Determinants of Foreign Direct
 Investment (FDI): Lessons from the African Economies." >i>Journal of
 Applied Business and Economics>/i> 9, no. 1: 70-80.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>53</BIBL>	 <BIBTEXT> Walkenhorst, P. 2004.
 "Economic Transition and the Sectoral Patterns of Foreign Direct
 Investment." >i>Emerging Markets Finance & Trade>/i> 40, no. 2
 (March-April): 5-26.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>54</BIBL>	<BIBTEXT> Wan, W.P. 2005. "Country Resource
 Environments, Firm Capabilities, and Corporate Diversification
 Strategies." >i>Journal of Management Studies>/i> 42, no. 2:
 161-171.</BIBTEXT>	 </REF>      <REF>	  <BIBL>55</BIBL>	
 <BIBTEXT> Wei, S.J. 2000. "How Taxing Is Corruption on International
 Investors?" >i>Review of Economics and Statistics>/i> 82, no. 1:
 1-11.</BIBTEXT>      </REF>	  <REF>        <BIBL>56</BIBL>	     
 <BIBTEXT> Wheeler, D., and A. Mody. 1992. "Institutional Investment
 Location Decisions: The Case of U.S. Firms." >i>Journal of International
 Economics>/i> 33, no. 1: 57-76.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>57</BIBL>	<BIBTEXT> World Bank. 2004. >i>World Bank Africa
 Database>/i>. Washington, DC.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:47:y:2011:i:4:p:59-74




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 4 
Volume: 47 
Year: 2011 
Month: 7 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V8RPQQ5126725641 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:47:y:2011:i:4:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: Viviana Fernandez
Author-X-Name-First: Viviana
Author-X-Name-Last: Fernandez
Title: The Driving Factors of Firm Investment: Latin American Evidence
Abstract:
 The finance literature has extensively documented the role of debt in influencing corporate investment decisions. This study focuses on testing two well-known hypotheses—on underinvestment and overinvestment—in three emerging countries: Chile, Brazil, and Mexico during the period 1997-2006. Our main findings show that for the average firm there is a strong and inverse relation between investment and long-term leverage. Moreover, for low-growth firms there exists an inverse and statistically significant association between investment and asset maturity. This evidence suggests that the disciplinary role of debt financing, stressed by the overinvestment hypothesis, seems more congruent with the data.
Journal: Emerging Markets Finance and Trade
Pages: 4-26
Issue: 5
Volume: 47 
Year: 2011 
Month: 9
Keywords: asset maturity, censoring, firm investment, GMM, random effects
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B64200WV43306804
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abramowitz, M., and I. Stegun. 1964. <i>Handbook of Mathematical Functions.</i> New York: Dover.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Aivazian, V.; Y. Ge; and J. Qiu. 2005a. "Debt Maturity Structure and Firm Investment." <i>Financial Management</i> 34, no. 4: 107-119.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Aivazian, V.; Y. Ge; and J. Qiu. 2005b. "The Impact of Leverage on Firm Investment: Canadian Evidence." <i>Journal of Corporate Finance 11, nos.</i> 1-2: 277-291.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>     <BIBTEXT> Anderson, G. 1986. "An Application of the Tobit Model to Panel Data: Modeling Dividend Behavior in Canada." Working Paper no. 85-22, Department of Economics, McMaster University, Ontario.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Carrasco, O.; C. Johnson; and H. Nunez. 2005. "Determinants of Firms' Investment: A Panel Data Analysis for Chile." <i>Estudios de Administracion</i> 12, no. 1: 87-122.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>   <BIBTEXT> Dang, V. 2011. "Leverage, Debt Maturity and Firm Investment: An Empirical Analysis." <i>Journal of Business Finance and Accounting</i> 38, nos. 1-2: 225-258.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Erol, T. 2004. "Strategic Debt with Diverse Maturity in Developing Countries: Industry-Level Evidence from Turkey." <i>Emerging Markets Finance & Trade</i> 40, no. 5 (September-October): 5-24.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Fernandez, V. 2006. "Specification Tests for a Parsimonious Random-Effects Model." <i>Applied Economics Letters</i> 13, no. 15: 1009-1012.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Fernandez, V. 2009. "Institutional Factors Behind Capital Structure: Evidence from Chilean Firms." In <i>Financial Innovations in Emerging Markets</i>, ed. G. N. Gregoriou, pp. 319-345. London: Chapman-Hall/Taylor and Francis.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Gallego, F., and N. Loayza. 2000. "Financial Structure in Chile: Macroeconomic Developments and Microeconomic Effects." <i>Working Paper Series</i> no. 75, Banco Central de Chile, Santiago.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Harris, M., and A. Raviv. 1991. "The Theory of Capital Structure." <i>Journal of Finance</i> 46, no. 1: 297-355.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Hoffmann, R.; C. Lee; B. Ramasamy; and M. Yeung. 2005. "FDI and Pollution: A Granger Causality Test Using Panel Data." <i>Journal of International Development</i> 17, no. 3: 311-317.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Jensen, M. 1986. "Agency Costs of Free Cash Flows, Corporate Finance, and Takeovers." <i>American Economic Review</i> 76, no. 2: 323-329.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Jensen, M., and W. Meckling. 1976. "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure." <i>Journal of Financial Economics</i> 3, no. 4: 305-360.</BIBTEXT>   </REF>      <REF>	<BIBL>15</BIBL>  <BIBTEXT> Kim, B., and G. Maddala. 1992. "Estimation and Specification Analysis of Models of Dividend Behavior Based on Censored Panel Data." <i>Empirical Economics</i> 17, no. 1: 111-124.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL> <BIBTEXT> Lang, L.; E. Ofek; and R. Stulz. 1996. "Leverage, Investment, and Firm Growth." <i>Journal of Financial Economics</i> 40, no. 1: 3-29.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Leary, M., and M. Roberts. 2005. "Do Firms Rebalance Their Capital Structures?" <i>Journal of Finance</i> 60, no. 6: 2575-2619.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	  <BIBTEXT> López Iturriaga, F., and V. Lima Crisóstomo. 2010. "Do Leverage, Dividend Payout, and Ownership Concentration Influence Firms' Value Creation? An Analysis of Brazilian Firms." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 80-94.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> McConnell, J., and H. Servaes. 1995. "Equity Ownership and the Two Faces of Debt." <i>Journal of Financial Economics</i> 39, no. 1: 131-157.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	  <BIBTEXT> Modigliani, F., and M. Miller. 1958. "The Cost of Capital, Corporation Finance and the Theory of Investment." <i>American Economic Review</i> 48, no. 3: 261-297.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Modigliani, F., and M. Miller. 1963. "Corporate Income Taxes and the Cost of Capital: A Correction." <i>American Economic Review</i> 53, no. 3: 433-443.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Myers, S. 1977. "Determinants of Corporate Borrowing." <i>Journal of Financial Economics</i> 5, no. 2: 147-155.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Myers, S. 1984. "The Capital Structure Puzzle." <i>Journal of Finance</i> 39, no. 3: 575-592.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Myers, S. 2001. "Capital Structure." <i>Journal of Economic Perspectives</i> 15, no. 2: 81-102.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Myers, S., and N. Majluf. 1984. "Corporate Financing and Investment Decisions When Firms Have Information Investors Do Not Have." <i>Journal of Financial Economics</i> 13, no. 2: 187-221.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Quer, D., and E. Claver. 2007. "Determinants of Spanish Foreign Direct Investment in Morocco." <i>Emerging Markets Finance & Trade</i> 43, no. 2 (March-April): 19-32.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Stohs, M., and D. Mauer. 1996. "The Determinants of Corporate Debt Maturity Structure." <i>Journal of Business</i> 69, no. 3: 279-312.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Stulz, R. 1990. "Managerial Discretion and Optimal Financing Policies." <i>Journal of Financial Economics</i> 26 no. 1: 3-27.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Yartey, C. 2009. "The Stock Market and the Financing of Corporate Growth in Africa: The Case of Ghana." <i>Emerging Markets Finance & Trade</i> 45, no. 4 (July-August): 53-68.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:5:p:4-26




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Zubaidi Baharumshah
Author-X-Name-First: Ahmad Zubaidi
Author-X-Name-Last: Baharumshah
Author-Name: Siti Hamizah Mohd
Author-X-Name-First: Siti Hamizah
Author-X-Name-Last: Mohd
Author-Name: Siew-Voon Soon
Author-X-Name-First: Siew-Voon
Author-X-Name-Last: Soon
Title: Purchasing Power Parity and Efficiency of Black Market Exchange Rate in African Countries
Abstract:
 This paper investigates the long-run dynamics of black and official exchange rates for ten African countries. Our major findings are, first, that parity holds more favorably when the black market rate is used to validate the purchasing power parity hypothesis. The evidence supports the notion that the speed of adjustment is much faster in the black market than in the official market. Second, the two rates are connected in the long run, with the official rate adjusting toward the black market rate for the majority of cases. Finally, we find the long-run informationally efficient hypothesis is supported in the majority of African countries.
Journal: Emerging Markets Finance and Trade
Pages: 52-70
Issue: 5
Volume: 47 
Year: 2011 
Month: 9
Keywords: African countries, black market exchange rate, bounds tests, purchasing power parity
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C412248434757786
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agenor, P.-R., and M. P. Taylor. 1993. "The Causality Between Official and Parallel Exchange Rates in Developing Countries." <i>Applied Financial Economics</i> 3, no. 3: 255-266.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Apergis, N. 2000. "Black Market Rates and Official Rates in Armenia: Evidence from Granger Causality Tests in Alternative Regimes." <i>Eastern Economic Journal</i> 26, no. 3: 335-344.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Ashworth, J.; L. Evans; and A. Teriba. 1999. "Structural Breaks in Parallel Markets? The Case of Nigeria, 1980-1993." <i>Journal of Development Economics</i> 58, no. 1: 255-264.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>     <BIBTEXT> Baharumshah, A. Z.; R. Aggarwal; and T.-Z. Chan. 2007. "East Asian Real Exchange Rates and PPP: New Evidence from Panel-Data Tests." <i>Global Economic Review</i> 36, no. 2: 103-119.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bahmani-Oskooee, M., and G. G. Goswami. 2005. "Black Market Exchange Rates and Purchasing Power Parity in Emerging Economies." <i>Emerging Markets Finance & Trade</i> 41, no. 3 (May-June): 37-52.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>   <BIBTEXT> Bahmani-Oskooee, M., and S. W. Hegerty. 2009. "Purchasing Power Parity in Less-Developed and Transition Economies: A Review Paper." <i>Journal of Economic Surveys</i> 23, no. 4: 617-658.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bahmani-Oskooee, M., and A. Tankui. 2008. "The Black Market Exchange Rate vs. the Official Rate in Testing PPP: Which Rate Fosters the Adjustment Process?" <i>Economics Letters</i> 99, no. 1: 40-43.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Bahmani-Oskooee, M.; A. M. Kutan; and S. Zhou. 2008. "Do Real Exchange Rates Follow a Non-Linear Mean-Reverting Process in Developing Countries?" <i>Southern Economic Journal</i> 74, no. 4: 1049-1062.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Baliamoune-Lutz, M. 2010. "Black and Official Exchange Rates in Morocco: An Analysis of Their Long-Run Behaviour and Short-Run Dynamics (1974-1992)." <i>Applied Economics</i> 42, no. 27: 3481-3490.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Booth, G., and C. Mustafa. 1991. "Long-Run Dynamics of Black and Official Exchange Rates." <i>Journal of International Money and Finance</i> 10, no. 3: 392-405.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Caporale, G. M., and M. Cerrato. 2008. "Black Market and Official Exchange Rates: Long-Run Equilibrium and Short-Run Dynamics." <i>Review of International Economics</i> 16, no. 3: 401-412.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Cerrato, M., and N. Sarantis. 2007. "Does Purchasing Power Parity Hold in Emerging Markets? Evidence from a Panel of Black Market Exchange Rates." <i>International Journal of Finance and Economics</i> 12, no. 4: 427-444.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Diamandis, P. F. 2003. "Market Efficiency, Purchasing Power Parity, and the Official and Parallel Markets for Foreign Currency in Latin America." <i>International Review of Economics and Finance</i> 12, no. 1: 89-110.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Hansen, B. E. 1992. "Tests for Parameter Instability in Regressions with I(1) Processes." <i>Journal of Business Economic Statistics</i> 10, no. 3: 45-49.</BIBTEXT>   </REF>      <REF>	<BIBL>15</BIBL>  <BIBTEXT> Hassanain, K. 2005. "The Real Exchange Rate and the Black Market Exchange Rate in Developing Countries." <i>Empirical Economics</i> 30, no. 2: 483-492.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>  <BIBTEXT> Holmes, M. J. 2000. "Does Purchasing Power Parity Hold in African Less Developed Countries? Evidence from Panel Data Unit Root Test." <i>Journal of African Economies</i> 9, no. 1: 63-73.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Kargbo, J. M. 2006. "Purchasing Power Parity and Real Exchange Rate Behaviour in Africa." <i>Applied Financial Economics</i> 16, nos. 1-2: 169-183.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Kasman, S.; A. Kasman; and D. Ayhan. 2010. "Testing the Purchasing Power Parity Hypothesis for the New Member and Candidate Countries of the European Union: Evidence from Lagrange Multiplier Unit Root Tests with Structural Breaks." <i>Emerging Markets Finance & Trade</i>, 46, no. 2 (March-April): 53-65.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Lee, J., and M. C. Strazicich. 2004. "Minimum LM Unit Root Test with One Structural Break." Working Paper Series no. 04-17, Department of Economics, Appalachian State University, Boone, NC.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	  <BIBTEXT> Lence, S., and B. Falk. 2005. "Cointegration, Market Integration and Market Efficiency." <i>Journal of International Money and Finance</i> 24, no. 6: 873-890.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Moore, M., and K. Phylaktis. 2000. "Black and Official Exchange Rates in the Pacific Basin: Some Tests of Dynamic Behavior." <i>Applied Financial Economics</i> 10, no. 4: 361-369.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Narayan, P. K., and B. C. Prasad. 2005. "The Validity of Purchasing Power Parity for Eleven Middle Eastern Countries." <i>Review of Middle East Economics and Finance</i> 3, no. 2: 135-149.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Ng, S., and P. Perron. 1997. "Estimation and Inference in Nearly Unbalanced Nearly Cointegrated Systems." <i>Journal of Econometrics</i> 79, no. 1: 53-81.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Ng, S., and P. Perron. 2001. "Lag Length Selection and the Construction of Unit Root Tests with Good Size and Power." <i>Econometrica</i> 69, no. 6: 1519-1554.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Pedroni, P. 2000. "Fully Modified OLS for Heterogeneous Cointegrated Panels." <i>Advances in Econometrics</i> 15: 93-130.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Pedroni, P. 2004. "Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis." <i>Econometric Theory</i> 20, no. 3: 597-625.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Pesaran, M. H., and R. J. Smith. 1999. "Structural Analysis of Cointegrating VARs." In <i>Practical Issues in Cointegration Analysis</i>, ed. L. Oxley and M. McAleer, pp. 55-89. Oxford: Blackwell.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Pesaran, M. H.; Y. Shin; and R. J. Smith. 2001. "Bounds Testing Approaches to the Analysis of Level Relationships." <i>Journal of Applied Econometrics</i> 16, no. 3: 289-326.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Phillips, P. C. B., and B. E. Hansen. 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes." <i>Review of Economic Studies</i> 57, no. 1: 99-125.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Rogoff, K. 1996. "The Purchasing Power Parity Puzzle." <i>Journal of Economic Literature</i> 34, no. 2: 647-668.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Sanchez-Fung, J. R. 1999. "Efficiency of Black Market for Foreign Exchange and PPP: The Case of the Dominican Republic." <i>Applied Economics Letters</i> 6, no. 3: 173-176.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:5:p:52-70




Template-Type: ReDIF-Article 1.0
Author-Name: Pavle Petrovic
Author-X-Name-First: Pavle
Author-X-Name-Last: Petrovic
Author-Name: Zorica Mladenovic
Author-X-Name-First: Zorica
Author-X-Name-Last: Mladenovic
Author-Name: Aleksandra Nojkovic
Author-X-Name-First: Aleksandra
Author-X-Name-Last: Nojkovic
Title: Inflation Triggers in Transition Economies: Their Evolution and Specific Features
Abstract:
 Analysis of thirty inflation episodes in sixteen European transition economies, using the probit panel model with fixed effects, uncovers inflation triggers that overlap with those obtained in either developing or developed countries or both. However, we found some transition-specific features. Thus, the relative contribution of the triggers evolves as transition progresses, such that the early dominance of the output gap, the fiscal deficit, and elections are subsequently subdued by a rise in food and oil prices, the exchange rate regime, and the current account deficit. The last two triggers could be linked to deep financial integration in Europe and the consequent large flow of capital toward European transition economies in the 2000s, a phenomenon not observed in any other part of the world. In addition, the exchange rate regime as an inflation starter in transitional Europe may be due to its convergence with developed Europe and the resulting real appreciation of currency.
Journal: Emerging Markets Finance and Trade
Pages: 101-124
Issue: 5
Volume: 47 
Year: 2011 
Month: 9
Keywords: inflation starts, probit with fixed effects and nonstationary variables, transition economies
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D76031N7X8788X46
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abiad, A.; D. Leigh; and A. Mody. 2009. "Financial Integration, Capital Mobility, and Income Convergence." <i>Economic Policy</i> 24, no. 58: 241-305.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Alesina, A.; N. Roubini; and G. D. Cohen. 1997. <i>Political Cycles and the Macroeconomy.</i> Cambridge: MIT Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Backe, P.; J. Fidrmuc; T. Reininger; and F. Schardax. 2003. "Price Dynamics in Central and Eastern Europe EU Accession Countries." <i>Emerging Markets Finance & Trade</i> 39, no. 3 (May-June): 42-78.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>     <BIBTEXT> Ball, L. 1994. "What Determines the Sacrifice Ratio?" In <i>Monetary Policy</i>, ed. N. G. Mankiw, pp. 155-193. Chicago: University of Chicago Press.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Barlow, D. 2005. "The Hungarian Exchange Rate and Inflation over the Transition." <i>Economic Systems</i> 29, no. 1: 87-97.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>   <BIBTEXT> Barlow, D. 2010. "How Did Structural Reform Influence Inflation in Transition Economies?" <i>Economic Systems</i> 34, no. 2: 198-210.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Beirne, J. 2009. "Vulnerability of Inflation in the New EU Member States to Country-Specific and Global Factors." <i>Economics Bulletin</i> 29, no. 2: 1420-1431.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Berglof, E.; Y. Korniyenko; A. Plekhanov; and J. Zettelmeyer. 2009. "Understanding the Crisis in Emerging Europe." Working Paper no. 109, European Bank for Reconstruction and Development, London.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Boschen, J., and C. Weise. 2003. 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In <i>Palgrave Handbook of Econometrics</i>, vol. 2, ed. T. C. Mills and K. Patterson, pp. 473-556. Hampshire, UK: Palgrave Macmillan.</BIBTEXT>      </REF>      <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Hadri, K. 2000. "Testing for Stationarity in Heterogeneous Panel Data." <i>Econometrics Journal</i> 3, no. 2: 148-161.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Im, K. S.; M. H. Pesaran; and Y. Shin. 2003. "Testing for Unit Roots in Heterogeneous Panels." <i>Journal of Econometrics</i> 115, no. 1: 53-74.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	  <BIBTEXT> International Monetary Fund (IMF). (Various issues). <i>Annual Report on Exchange Rate Arrangements and Exchange Restrictions.</i> Washington, DC.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> International Monetary Fund (IMF). 2008. <i>World Economic Outlook.</i> Washington, DC.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Jin, S. 2009. 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Nojkovic. 2008. "What Triggers Inflation in Transition Economies?" <i>Quarterly Monitor</i> 14 (July-September): 60-69.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Reinhart, C., and K. Rogoff. 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation." <i>Quarterly Journal of Economics</i> 119, no. 1: 1-48.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Reinhart, C., and K. Rogoff. 2010. "Growth in Time of Debt." Working Paper no. 15639, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Rogoff, K., and A. Sibert. 1988. "Elections and Macroeconomic Policy Cycle." <i>Review of Economic Studies</i> 55, no. 181: 1-16.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Sargent, T. J. 1999. <i>The Conquest of American Inflation.</i> Princeton: Princeton University Press.</BIBTEXT>	 </REF>     <REF>	    <BIBL>32</BIBL>	  <BIBTEXT> Staehr, K. 2009. "Inflation in the New EU Countries from Central and Eastern Europe: Theories and Panel Data Estimations." In <i>What Drives Inflation in the New EU Member States?</i> ed. European Commission, pp. 35-58. Brussels: European Commission.</BIBTEXT>	  </REF>      <REF>	  <BIBL>33</BIBL>	<BIBTEXT> Stavrev, E. 2009. "Forces Driving Inflation in the New EU10 Members." In <i>What Drives Inflation in the New EU Member States?</i> ed. European Commission, pp. 11-24. Brussels: European Commission.</BIBTEXT>	 </REF>      <REF>	<BIBL>34</BIBL>    <BIBTEXT> Taylor, J. B. 1992. "The Great Disinflation, and Policies for Future Price Stability." In <i>Inflation, Disinflation and Monetary Policy</i>, ed. A. Blundell-Wignall, pp. 9-31. Sydney: Reserve Bank of Australia.</BIBTEXT>	 </REF>      <REF>	 <BIBL>35</BIBL>     <BIBTEXT> Vansteenkiste, I. 2009. "What Triggers Prolonged Inflation Regimes? A Historical Analysis." 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Handle: RePEc:mes:emfitr:v:47:y:2011:i:5:p:101-124




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 5
Volume: 47 
Year: 2011 
Month: 9
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T02546255U302425
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:      
Handle: RePEc:mes:emfitr:v:47:y:2011:i:5:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandra Gregoric
Author-X-Name-First: Aleksandra
Author-X-Name-Last: Gregoric
Author-Name: Arjana Brezigar Masten
Author-X-Name-First: Arjana Brezigar
Author-X-Name-Last: Masten
Author-Name: Katarina Zajc
Author-X-Name-First: Katarina
Author-X-Name-Last: Zajc
Title: From Social to Private Ownership: Multiple Blockholders in Slovenian Unlisted Firms
Abstract:
 This paper studies the ownership structures of unlisted privatized firms in Slovenia. On the basis of official ownership records for all nonfinancial firms over a six-year period (1999-2004), we explore the factors responsible for the concentration of ownership and for the dissolution of the multiple blockholder structures that these firms were assigned at privatization. We observe significant path dependence: patterns of ownership and control are in part determined by the persistence of the initial privatization owners (state funds, privatization investment funds, employees, and managers) as firm blockholders. We also find that ownership concentrates less in larger, riskier, and better-performing firms. Multiple blockholders remain present in the firms in which the two largest owners are of the same type, which presumably makes it easier for them to control in coalition.
Journal: Emerging Markets Finance and Trade
Pages: 27-51
Issue: 5
Volume: 47 
Year: 2011 
Month: 9
Keywords: homogeneity, owner identity, ownership structure, path dependency shareholder coalitions
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U17306T02214L154
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:5:p:27-51




Template-Type: ReDIF-Article 1.0
Author-Name: Borek Vašícek
Author-X-Name-First: Borek
Author-X-Name-Last: Vašícek
Title: Inflation Dynamics and the New Keynesian Phillips Curve in Four Central European Countries
Abstract:
 This paper seeks to shed light on the inflation dynamics of four new central European EU members: the Czech Republic, Hungary, Poland, and Slovakia. To this end, the New Keynesian Phillips curve augmented for open economies is estimated and additional statistical tests applied, with the following results: (1) the claim of New Keynesians that the real marginal cost is the main inflation-forcing variable is fragile, (2) inflation seems to be driven by external factors, and (3) although inflation holds a forward-looking component, the backward-looking component is substantial. An intuitive explanation for higher inflation persistence may be adaptive, rather than rational price setting of local firms.
Journal: Emerging Markets Finance and Trade
Pages: 71-100
Issue: 5
Volume: 47 
Year: 2011 
Month: 9
Keywords: Central European countries, GMM estimation, inflation dynamics, New Keynesian Phillips curve
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:5:p:71-100




Template-Type: ReDIF-Article 1.0
Author-Name: A. Nazif Çatik
Author-X-Name-First: A. Nazif
Author-X-Name-Last: Çatik
Author-Name: A. Özlem Önder
Author-X-Name-First: A. Özlem
Author-X-Name-Last: Önder
Title: Inflationary Effects of Oil Prices in Turkey: A Regime-Switching Approach
Abstract:
 This paper investigates the existence of oil pass-through to inflation for Turkey covering the period February 1996-May 2007. Oil price-augmented Phillips curves are estimated with linear and Markov regime-switching models. Markov regime-switching models reveal the asymmetric structure of oil pass-through and indicate the existence of two different regimes characterized as the high- and the low-inflation periods. We find evidence for asymmetric oil pass-through in the high-inflation regime for headline and food- and energy-excluded inflation measures. Our results suggest that Jarque-Bera core inflation is not affected by oil price variations under either inflationary environment. Hence, we suggest the Jarque-Bera indicator as an intermediate target in the analysis of the future trend of inflation.
Journal: Emerging Markets Finance and Trade
Pages: 125-140
Issue: 5
Volume: 47 
Year: 2011 
Month: 9
Keywords: inflation, Markov regime-switching models, oil shocks, pass-through
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=WH60516H5444763R
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"Forecasting Inflation in Emerging Markets by Using the Phillips Curve and Alternative Time Series Models." <i>Emerging Markets Finance & Trade</i>, 40, no. 2 (March- April): 71-82.</BIBTEXT>	 </REF>     <REF>	    <BIBL>32</BIBL>	  <BIBTEXT> Önder, A.Ö. 2009. "The Stability of the Turkish Phillips Curve and Alternative Regime Shifting Models." <i>Applied Economics</i> 41, no. 20: 2597-2604.</BIBTEXT>	  </REF>      <REF>	  <BIBL>33</BIBL>	<BIBTEXT> Rich R., and C. Steindel. 2005. "A Review of Core Inflation and an Evaluation of Its Measures." Staff Report no. 236, Federal Reserve Bank of New York.</BIBTEXT>	 </REF>      <REF>	<BIBL>34</BIBL>    <BIBTEXT> Taylor, J. B. 2000. "Low Inflation, Pass-Through, and the Pricing Power of Firms." <i>European Economic Review</i> 44, no. 7: 1389-1408.</BIBTEXT>   </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:5:p:125-140




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 6
Volume: 47 
Year: 2011 
Month: 11
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=01767400788V4075
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Handle: RePEc:mes:emfitr:v:47:y:2011:i:6:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Khurshid Djalilov
Author-X-Name-First: Khurshid
Author-X-Name-Last: Djalilov
Author-Name: Jenifer Piesse
Author-X-Name-First: Jenifer
Author-X-Name-Last: Piesse
Title: Financial Development and Growth in Transition Countries: A Study of Central Asia
Abstract:
 Central Asian countries are examined pre- and postindependence to identify the impact of economic and financial development policies. The theoretical background to financial flows and the relation between the development of the financial system and economic growth in transition economies is analyzed using regression, correlation and Granger causality. Data from twenty-seven transition economies in eastern Europe and the former Soviet republics for 1992 to 2008 are used. The results indicate that the transition reform indicator of the European Bank for Reconstruction and Development appears to have a negative growth impact, and the results for the indicator of <i>credit to the private sector</i> show no significant effect on growth. Moreover, the difference between lending and borrowing rates appears to have a negative growth impact, as expected.
Journal: Emerging Markets Finance and Trade
Pages: 4-23
Issue: 6
Volume: 47 
Year: 2011 
Month: 11
Keywords: Central Asia, economic growth, financial development
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=1718783726465124
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akimov, A. 2002. "Uzbekistan's Financial System: Ten Years of Transition." <i>Oeconomicus</i> 6 (Fall): 21-25.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Beck, T.; A. Demirguc-Kunt; and V. Maksimovic. 2005a. "Financial and Legal Constraints to Growth: Does Firm Size Matter?" <i>Journal of Finance</i> 60, no. 1: 170-171.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Beck, T.; A. Demirguc-Kunt; L. Laeven; and R. Levine. 2005b. "Finance, Firm Size, and Growth." Working Paper no. 3485, World Bank, Washington, DC.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>     <BIBTEXT> Bertrand, M.; A. S. Schoar; and D. Thesmar. 2007. "Banking Deregulation and Industry Structure: Evidence from French Banking Reforms of 1985." <i>Journal of Finance</i> 62, no. 2: 597-628.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Blackburn, K., and V. T. Y. Hung. 1998. 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"Financial Markets and the Allocation of Capital." <i>Journal of Financial Economics</i> 58, nos. 1-2: 187-214.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:6:p:4-23




Template-Type: ReDIF-Article 1.0
Author-Name: Onur Olgun
Author-X-Name-First: Onur
Author-X-Name-Last: Olgun
Author-Name: I. Hakan Yetkiner
Author-X-Name-First: I. Hakan
Author-X-Name-Last: Yetkiner
Title: Determination of Optimal Hedging Strategy for Index Futures: Evidence from Turkey
Abstract:
 This paper aims to determine optimal hedge strategy for the Istanbul Stock Exchange (ISE)-30 stock index futures in Turkey by comparing hedging performance of constant and time-varying hedge ratios under mean-variance utility criteria. We employ standard regression and bivariate GARCH frameworks to estimate constant and time-varying hedge ratios respectively. The Turkish case is particularly challenging since Turkey has one of the most volatile stock markets among emerging economies and the turnover ratio as a measure of liquidity is very high for the market. These facts can be considered to highlight the great risk and, therefore, the extra need for hedging in the Istanbul Stock Exchange (ISE). The empirical results from the study reveal that the dynamic hedge strategy outperforms the static and the traditional strategies.
Journal: Emerging Markets Finance and Trade
Pages: 68-79
Issue: 6
Volume: 47 
Year: 2011 
Month: 11
Keywords: futures pricing, hedging, M-GARCH
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=2023685827833T71
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aksoy, G., and O. Olgun. 2009. "An Empirical Analysis on Estimation of the Optimal Hedge Ratio: The Case of TurkDex (Turkish)." <i>Iktisat, Isletme ve Finans</i> 24, no. 274: 33-50.</BIBTEXT>	  </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Andani, A.; J. A. Lafuente; and A. Novales. 2009. "Liquidity and Hedging Effectiveness Under Futures Mispricing: International Evidence." <i>Journal of Futures Markets</i> 29, no. 11: 1050-1066.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>    <BIBTEXT> Baillie, R., and R. Myers. 1991. "Bivariate GARCH Estimation of the Optimal Commodity Futures Hedge." <i>Journal of Applied Econometrics</i> 6, no. 2: 109-124.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>    <BIBTEXT> Benet, B. A. 1992. 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"Hedge Effectiveness: Basis Risk and Minimum-Variance Hedging." <i>Journal of Futures Markets</i> 12, no. 2: 187-201.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chen, H. C., and J. Wu. 2009. "Volatility, Depth, and Order Composition: Evidence from a Pure Limit Order Futures Market." <i>Emerging Markets Finance & Trade</i> 45, no. 5 (September-October): 72-85.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Cheng, M. H., and H. H. Kang. 2007. "Price-Formation Process of an Emerging Futures Market: Call Auction Versus Continuous Auction." <i>Emerging Markets Finance & Trade</i> 43, no. 1 (January-February): 74-97.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Choudhry, T. 2003. "Short-Run Deviations and Optimal Hedge Ratio: Evidence from Stock Futures." <i>Journal of Multinational Financial Management</i> 13, no. 2: 171-192.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Ederington, H. 1979. "The Hedging Performance of the New Futures Markets." <i>Journal of Finance</i> 34, no. 1: 157-170.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Figlewski, S. 1984. "Hedging Performance and Basis Risk in Stock Index Futures." <i>Journal of Finance</i> 39, no. 3: 657-669.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Haigh, M., and M. Holt. 2002. "Hedging Foreign Currency, Freight and Commodity Futures Portfolios—A Note." <i>Journal of Futures Markets</i> 22, no. 12: 1205-1224.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Hill, J., and T. Schneeweis. 1981. "The Hedging Effectiveness of Foreign Currency Futures." <i>Journal of Financial Research</i> 28, no. 4: 95-104.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>  <BIBTEXT> Johnson, L. 1960. "The Theory of Hedging and Speculation in Commodity Futures." <i>Review of Economic Studies</i> 27, no. 3: 139-151.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Júnior, J. 2011. 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"Dynamic Hedging Performance with the Evaluation of Multivariate GARCH Models: Evidence from KOSTAR Index Futures." <i>Applied Economics Letters</i> 16, no. 9: 913-919.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Myers, R. J., and S. R. Thompson. 1989. "Generalized Optimal Hedge Ratio Estimation." <i>American Journal of Agricultural Economics</i> 71, no. 4: 858-867.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Park, T. H., and L. N. Switzer. 1995. "Bivariate GARCH Estimation of the Optimal Hedge Ratios for Stock Index Futures: A Note." <i>Journal of Futures Market</i> 15, no. 1: 61-67.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Stein, J. L. 1961. "The Simultaneous Determination of Spot and Future Prices." <i>American Economic Review</i> 51, no. 5: 1012-1025.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Susmel, R., and R. Engle. 1994. "Hourly Volatility Spillovers Between International Equity Markets." <i>Journal of International Money Finance</i> 13, no. 1: 3-25.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Toevs, A., and D. Jacob. 1986. "Futures and Alternative Hedge Ratio Methodology." <i>Journal of Portfolio Management</i> 12, no. 3: 60-70.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Tokat, E., and H. A. Tokat. 2010. "Shock and Volatility Transmission in the Futures and Spot Markets: Evidence from Turkish Markets." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 92-104.</BIBTEXT>	 </REF>     <REF>	    <BIBL>32</BIBL>	  <BIBTEXT> Vishwanath, P. 1993. "Efficient Use of Information, Convergence Adjustments, and Regression Estimates of Hedge Ratios." <i>Journal of Futures Markets</i> 13, no. 1: 43-53.</BIBTEXT>	  </REF>      <REF>	  <BIBL>33</BIBL>	<BIBTEXT> Wahab, M. 1995. "Conditional Dynamics and Optimal Spreading in the Precious Metals Futures Markets." <i>Journal of Futures Markets</i> 15, no. 2: 131-166.</BIBTEXT>	 </REF>      <REF>	<BIBL>34</BIBL>    <BIBTEXT> Wang, J. 2011. "Price Behavior of Stock Index Futures: Evidence from the FTSE Xinhua China A50 and H-Share Index Futures Markets." <i>Emerging Markets Finance & Trade</i> 47, Supplement 1: 61-77.</BIBTEXT>	 </REF>      <REF>	 <BIBL>35</BIBL>     <BIBTEXT> Working, H. 1961. "New Concepts Concerning Futures Markets and Prices." <i>American Economic Review</i> 51, no. 3: 160-163.</BIBTEXT>	</REF>	<REF>	   <BIBL>36</BIBL> <BIBTEXT> World Bank. 2009. <i>World Development Indicators 2009.</i> Washington, DC.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:6:p:68-79




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Imam
Author-X-Name-First: Patrick
Author-X-Name-Last: Imam
Author-Name: Camelia Minoiu
Author-X-Name-First: Camelia
Author-X-Name-Last: Minoiu
Title: The Equilibrium Exchange Rate of Mauritius: Evidence from Two Structural Models
Abstract:
 In this paper we assess the equilibrium value of the Mauritian rupee in 2006-7 and over the medium run using two structural models. First, we derive a current account-based measure of the exchange rate equilibrium using the macroeconomic balance approach. Second, we estimate a reduced-form fundamental equilibrium exchange rate measure. Our results, which are robust to an alternative non-econometric approach, suggest that the Mauritian rupee was aligned with its equilibrium value in 2006-7 and little adjustment appeared necessary over the medium run.
Journal: Emerging Markets Finance and Trade
Pages: 134-147
Issue: 6
Volume: 47 
Year: 2011 
Month: 11
Keywords: equilibrium real exchange rate, external sustainability, fundamental equilibrium exchange rate, macroeconomic balance, Mauritius
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=460N80041154610Q
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Atasoy, D., and S. C. Saxena. 2006. "Misaligned? Overvalued? The Untold Story of the Turkish Lira." <i>Emerging Markets Finance & Trade</i> 42, no. 3 (May-June): 29-45.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Calderon, C. A.; N. Loayza; and L. Servén. 1999. "External Sustainability: A Stock Equilibrium Perspective." World Bank Policy Research Working Paper no. 2281, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Calderon, C. A.; A. Chong; and N. Loayza. 2002. "Determinants of Current Account Deficits in Developing Countries." <i>B. E. Journal of Macroeconomics</i> 2, no. 1: 1-31.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>    <BIBTEXT> Chinn, M. D. 2005. "Getting Serious about the Twin Deficits." 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"Mauritius: 2008 Article IV Consultations—Staff Report." IMF Country Report no. 08/238, Washington, DC (available at <a target="_blank" href='http://www.imf.org/external/pubs/ft/scr/2008/cr08238.pdf'>www.imf.org/external/pubs/ft/scr/2008/cr08238.pdf</a></BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> International Monetary Fund. 2010. "Mauritius: 2009 Article IV Consultations—Staff Report." IMF Country Report no. 10/37, Washington, DC (available at <a target="_blank" href='http://www.imf.org/external/pubs/ft/scr/2010/cr1037.pdf'>www.imf.org/external/pubs/ft/scr/2010/cr1037.pdf</a></BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Isard, P., and H. Faruqee. 1998. "Exchange Rate Assessment: Extensions of the Macroeconomic Balance Approach." Occasional Paper no. 167, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Kemme, D., and S. Roy. 2006. 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"The Transfer Problem Revisited: Net Foreign Assets and Real Exchange Rates." <i>Review of Economics and Statistics</i> 86, no. 4: 841-857.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Lee, J.; G. M. Milesi-Ferretti; J. Ostry; A. Prati; and L. A. Ricci. 2008. "Exchange Rate Assessments: CGER Methodologies." Occasional Paper no. 261, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>     <REF>	    <BIBL>32</BIBL>	  <BIBTEXT> Maddala, G. S., and S. Wu. 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test." <i>Oxford Bulletin of Economics and Statistics</i> 61, Special Issue (November): 631-652.</BIBTEXT>	  </REF>      <REF>	  <BIBL>33</BIBL>	<BIBTEXT> Maeso-Fernandez, F.; C. Osbat; and B. Schnatz. 2005. "Pitfalls in Estimating Equilibrium Exchange Rates for Transition Economies." <i>Economic Systems</i> 29, no. 2: 130-143.</BIBTEXT>	 </REF>      <REF>	<BIBL>34</BIBL>    <BIBTEXT> Milesi-Ferretti, G. M., and A. Razin. 1996. "Current Account Sustainability." <i>Princeton Studies in International Finance</i> no. 81.</BIBTEXT>	 </REF>      <REF>	 <BIBL>35</BIBL>     <BIBTEXT> Pesaran, M. H., and Y. Shin. 1999. "An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysis." In <i>Econometrics and Economic Theory in the 20th Century: The Ragnar Frisch Centennial Symposium</i>, ed. S. Strom, pp. 371-413. Cambridge: Cambridge University Press.</BIBTEXT>	</REF>	<REF>	   <BIBL>36</BIBL> <BIBTEXT> Pesaran, M. H.; Shin, Y.; and R. J. Smith. 2001. "Bounds Testing Approaches to the Analysis of Level Relationships." <i>Journal of Applied Econometrics</i> 16, no. 3: 289-326.</BIBTEXT>	 </REF>    <REF>	    <BIBL>37</BIBL>	  <BIBTEXT> Rajan, R. S.; R. Sen; and R. Siregar. 2004. "Misalignment of the Baht, Trade Imbalances, and the Crisis in Thailand." <i>World Economy</i> 27, no. 7: 985-1012.</BIBTEXT>	  </REF>      <REF>	<BIBL>38</BIBL>	<BIBTEXT> Razin, O., and S. Collins. 1997. "Real Exchange Rate Misalignments and Growth." Working Paper no. 6174, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	<BIBL>39</BIBL>   <BIBTEXT> Reinhard, C. M., and K. S. Rogoff. 2004. "A Modern History of Exchange Rate Arrangements: A Reinterpretation." <i>Quarterly Journal of Economics</i> 119, no. 1: 1-48.</BIBTEXT>	 </REF>      <REF>	 <BIBL>40</BIBL>    <BIBTEXT> Rodrik, D. 2008. "The Real Exchange Rate and Economic Growth." <i>Brookings Papers on Economic Activity</i> 2, 365-412.</BIBTEXT>	</REF>	<REF>	   <BIBL>41</BIBL> <BIBTEXT> Timmermann, A. 2007. "An Evaluation of the World Economic Outlook Forecasts." <i>IMF Staff Papers</i> 54, no. 1: 1-33.</BIBTEXT>     </REF>      <REF>	  <BIBL>42</BIBL>   <BIBTEXT> Tsangarides, C. 2010. "Monetary Policy Transmission in Mauritius Using a VAR Analysis." Working Paper no. 10/36, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	<REF>    <BIBL>43</BIBL>	<BIBTEXT> Williamson, J. 1994. "Estimates of FEERs." In <i>Estimating Equilibrium Exchange Rates</i>, ed. J. Williamson, pp. 177-243. Washington, DC: Institute for International Economics.</BIBTEXT> </REF>     <REF>   <BIBL>44</BIBL>	<BIBTEXT> Wren-Lewis, S. 1992. "On the Analytical Foundations of the Fundamental Equilibrium Exchange Rate." In <i>Macroeconomic Modeling of the Long Run</i>, ed. C. P. Hargreaves, pp. 75-94. London: Edward Elgar.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:6:p:134-147




Template-Type: ReDIF-Article 1.0
Author-Name: Alexis Guyot
Author-X-Name-First: Alexis
Author-X-Name-Last: Guyot
Title: Efficiency and Dynamics of Islamic Investment: Evidence of Geopolitical Effects on Dow Jones Islamic Market Indexes
Abstract:
 This paper analyzes both the market quality and price dynamics of a sample group of Islamic indexes. Our results highlight that efficient investment allocation is not compromised by the application of Shariah criteria. However, although few indexes impose an additional liquidity cost on investors, a vast majority of indexes present degrees of liquidity that are similar to conventional indexes. Ultimately, investors whose investment decisions are guided by religious principles do not bear significant additional costs of inefficiency but may have to accept that their portfolios are more sensitive to geopolitical events. However, Islamic indexes may contribute to the international diversification of investors' portfolios.
Journal: Emerging Markets Finance and Trade
Pages: 24-45
Issue: 6
Volume: 47 
Year: 2011 
Month: 11
Keywords: cointegration, Dow Jones Islamic Market Indexes, geopolitical effects, market quality, Shariah
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=9440035738011817
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abdullah, F.; S. Mohamed; and T. Hassan. 2002. "A Comparative Performance of Malaysian Islamic and Conventional Mutual Funds." <i>Pertanika</i> 8, no. 2: 30-49.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Albaity, M., and R. Ahmad. 2008. "Performance of Syariah and Composite Indices: Evidence from Bursa Malaysia." <i>Asian Academy of Management Journal of Accounting and Finance</i> 4, no. 1: 23-43.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Belaire-Franch, J., and D. Contreras. 2004. "Ranks and Signs Based Multiple Variance Ratio Tests." Working paper, University of Valencia.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>    <BIBTEXT> Dickey, D., and W. Fuller. 1979. "Distribution of the Estimators for Autoregressive Time Series with a Unit Root." <i>Journal of the American Statistical Association</i> 74, no. 366: 427-431.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Drakos, K. 2010. 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"Islamic Funds Flex Their Newfound Muscle." <i>Global Finance</i> 20, no. 8 (September): 10.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Hayat, R., and R. Kraeussl. 2011. "Risk and Return Characteristics of Islamic Equity Funds." <i>Emerging Markets Review</i> 12, no. 2: 189-203.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Hussein, K., and M. Omran. 2005. "Ethical Investment Revisited: Evidence from Dow Jones Islamic Indexes." <i>Journal of Investing</i> 12, no. 2 (Fall): 105-124.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>  <BIBTEXT> Johansen, S. 1988. "Statistical Analysis of Cointegrating Vectors." <i>Journal of Economic Dynamics and Control</i> 12, nos. 2-3: 231-254.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Johansen, S., and K. Juselius. 1990. 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"Testing for a Unit Root in Time Series Regression." <i>Biometrika</i> 75, no. 2: 335-346.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Roll, R. 1984. "A Simple Implicit Measure of the Effective Bid-Ask Spread in an Efficient Market." <i>Journal of Finance</i> 39, no. 4: 1127-1139.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Wilson, R. 2004. "Capital Flight Through Islamic Managed Funds." In <i>Politics of Islamic Finance</i>, ed. C. Henry and R. Wilson, pp. 129-152. Edinburgh: Edinburgh University Press.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Wright, J. H. 2000. "Alternative Variance-Ratio Tests Using Ranks and Signs." <i>Journal of Business and Economic Statistics</i> 18, no. 1: 1-9.</BIBTEXT>	 </REF>     <REF>	    <BIBL>32</BIBL>	  <BIBTEXT> Yusof, R. M., and S. A. Majid. 2007. 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Handle: RePEc:mes:emfitr:v:47:y:2011:i:6:p:24-45




Template-Type: ReDIF-Article 1.0
Author-Name: Hasan F. Baklaci
Author-X-Name-First: Hasan F.
Author-X-Name-Last: Baklaci
Author-Name: Gokce Tunc
Author-X-Name-First: Gokce
Author-X-Name-Last: Tunc
Author-Name: Berna Aydogan
Author-X-Name-First: Berna
Author-X-Name-Last: Aydogan
Author-Name: Gulin Vardar
Author-X-Name-First: Gulin
Author-X-Name-Last: Vardar
Title: The Impact of Firm-Specific Public News on Intraday Market Dynamics: Evidence from the Turkish Stock Market
Abstract:
 This study attempts to discover the intraday firm-specific news announcements and return volatility relation in the Turkish stock market. The GARCH framework is utilized to investigate the impact of firm-specific public news announcements on volatility persistence with and without trading volume. For the majority of the stocks in the sample, the volatility persistence diminishes with the inclusion of firm-specific news, implying that news is impounded rapidly into prices. This effect is more pronounced for larger stocks. When there is no news, the trading volume does not appear to reduce the volatility persistence for the majority of stocks, possibly due to the presence of private information possessed by informed traders.
Journal: Emerging Markets Finance and Trade
Pages: 99-119
Issue: 6
Volume: 47 
Year: 2011 
Month: 11
Keywords: GARCH, informational efficiency, public news, trading volume, volatility persistence
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B30148760N607748
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Almeida, A.; C. Goodhart; and R. Payne. 1998. "The Effects of Macroeconomic News on High Frequency Exchange Rate Behavior." <i>Journal of Financial and Quantitative Analysis</i> 33, no. 3: 383-408.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Andersen, T. G., and T. Bollerslev. 1997. "Intraday Periodicity and Volatility Persistence in Financial Markets." <i>Journal of Empirical Finance</i> 4, nos. 2-3: 115-158.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Andersen, T. G.; T. Bollerslev; F. Diebold; and C. Vega. 2003. "Micro Effects of Macro Announcements: Real-Time Price Discovery in Foreign Exchange." <i>American Economic Review</i> 93, no. 1: 38-62.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>    <BIBTEXT> Bai, X.; J. R. Russel; and G. C. Tiao. 2003. 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"Effects of Price Limits on Volatility: Evidence from the Istanbul Stock Exchange." <i>Emerging Markets Finance & Trade</i> 40, no. 1 (January-February): 5-34.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Black, F. 1976. "Studies in Stock Price Volatility Changes." In <i>Proceedings of the 1976 Meeting of the Business and Economic Statistics Section, 177-181.</i> Washington, DC: American Statistical Association.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Bollerslev, T., and I. Domowitz. 1993. "Trading Patterns and Prices in the Interbank Foreign Exchange Market." <i>Journal of Finance</i> 48, no. 4: 1421-1444.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Bollerslev, T.; J. Cai; and F. M. Song. 2000. "Intraday Periodicity, Long-Memory Volatility, and Macroeconomic Announcement Effects in the U. S. Treasury Bond Market." <i>Journal of Empirical Finance</i> 7, no. 1: 37-55.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Chang, Y., and S. J. Taylor. 2003. "Information Arrivals and Intraday Exchange Rate Volatility." <i>International Financial Markets, Institutions and Money</i> 13, no. 2: 85-112.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Cheng, M. H., and H. Kang. 2007. "Price-Formation Process of an Emerging Futures Market: Call Auction Versus Continuous Auction." <i>Emerging Markets Finance & Trade</i> 43, no. 1 (January-February): 74-97.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Claessens, S.; S. Dasgupta; and J. Glen. 1995. "Return Behavior in Emerging Stock Markets." <i>World Bank Economic Review</i> 9, no. 1: 131-151.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Cousin, J. G., and T. Launois. 2006. "News Intensity and Conditional Volatility on the French Stock Market." <i>Finance</i> 27, no. 1: 7-60.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>  <BIBTEXT> Cunado, J.; L. A. Gil-Alana; and F. P. de Gracia. 2009. "U. S. Stock Market Volatility Persistence: Evidence Before and After the Burst of the IT Bubble." <i>Review of Quantitative Finance and Accounting</i> 33, no. 3: 233-252.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Darrat, A. F.; M. Zhong; and L. W. T. Cheng. 2007. "Intraday Volume and Volatility Relations With and Without Public News." <i>Journal of Banking and Finance</i> 31, no. 9: 2711-2729.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Deo, M.; K. Srinivasan; and K. Devanadhen. 2008. "The Empirical Relationship Between Stock Returns, Trading Volume and Volatility: Evidence from Selected Asia-Pacific Stock Markets." <i>European Journal of Economics, Finance and Administrative Sciences</i> 12 (October): 58-68.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> De Santis, G., and S. Imrohoroglu. 1997. 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"Public Information Arrival and Emerging Markets Returns and Volatility." <i>Multinational Finance Journal</i> 8, nos. 3-4: 227-245.</BIBTEXT>	  </REF>      <REF>	  <BIBL>33</BIBL>	<BIBTEXT> Kyle, A. S. 1985. "Continuous Auctions and Insider Trading." <i>Econometrica</i> 53, no. 6: 1315-1335.</BIBTEXT>	</REF>     <REF>	    <BIBL>34</BIBL>	  <BIBTEXT> Lamoureux, C. G., and W. D. Lastrapes. 1990. "Heteroskedasticity in Stock Return Data: Volume Versus GARCH Effects." <i>Journal of Finance</i> 45, no. 1: 221-229.</BIBTEXT>	  </REF>      <REF>	<BIBL>35</BIBL>	<BIBTEXT> LeRoy, S. F., and R. D. Porter. 1981. "The Present-Value Relation: Tests Based on Implied Variance Bounds." <i>Econometrica</i> 49, no. 3: 555-574.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>   <BIBTEXT> Lin, C.-Y.; R.-S. Wu; and T. Chen. 2010. "Taiwan's Foreign Exchange Market—Volatile but Still Efficient? Evidence from Intraday Data." <i>Emerging Markets Finance & Trade</i> 46, no. 1 (January-February): 34-41.</BIBTEXT>	 </REF>      <REF>	 <BIBL>37</BIBL>    <BIBTEXT> Melvin, M., and X. Yin. 2000. "Public Information Arrival, Exchange Rate Volatility, and Quote Frequency." <i>Economic Journal</i> 110, no. 465: 644-661.</BIBTEXT>	</REF>	<REF>	   <BIBL>38</BIBL> <BIBTEXT> Mitchell, M. L., and J. H. Mulherin. 1994. "The Impact of Public Information on the Stock Market." <i>Journal of Finance</i> 49, no. 3: 923-949.</BIBTEXT>     </REF>      <REF>	  <BIBL>39</BIBL>   <BIBTEXT> Nowak S.; J. Andritzky; A. Jobst; and N. Tamirisa. 2009. "Macroeconomic Fundamentals, Price Discovery and Volatility Dynamics in Emerging Markets." Working Paper, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	<REF>    <BIBL>40</BIBL>	<BIBTEXT> Rao, A. 2008. "Analysis of Volatility Persistence in Middle East Emerging Equity Markets." <i>Studies in Economics and Finance</i> 25, no. 2: 93-111.</BIBTEXT> </REF>     <REF>   <BIBL>41</BIBL>	<BIBTEXT> Selcuk, F. 2005. "Asymmetric Stochastic Volatility in Emerging Stock Markets." <i>Applied Financial Economics</i> 15, no. 12: 867-874.</BIBTEXT>	</REF>	 <REF>	   <BIBL>42</BIBL>	<BIBTEXT> Shiller, R. J. 1981. "The Use of Volatility Measures in Assessing Market Efficiency." <i>Journal of Finance</i> 36, no. 2: 291-304.</BIBTEXT>      </REF>	  <REF>     <BIBL>43</BIBL>	<BIBTEXT> Stulz, R. 1999. "Do Foreign Investors Destabilize Stock Markets? The Korean Experience in 1997." <i>Journal of Financial Economics</i> 54, no. 2: 227-264.</BIBTEXT>   </REF>     <REF>	 <BIBL>44</BIBL>   <BIBTEXT> —. 2005. "The Limits of Financial Globalization." <i>Journal of Finance</i> 60, no. 4: 1595-1638.</BIBTEXT>	</REF>	    <REF>	<BIBL>45</BIBL>       <BIBTEXT> Wang, H. 1994. "A Model of Competitive Stock Trading Volume." <i>Journal of Political Economy</i> 102, no. 1: 127-168.</BIBTEXT>	 </REF>      <REF>	<BIBL>46</BIBL>	 <BIBTEXT> Yuksel, A. 2002. "The Performance of the Istanbul Stock Exchange: During the Russian Crisis." <i>Emerging Markets Finance & Trade</i> 38, no. 6 (November-December): 78-99.</BIBTEXT>    </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:6:p:99-119




Template-Type: ReDIF-Article 1.0
Author-Name: Uluc Aysun
Author-X-Name-First: Uluc
Author-X-Name-Last: Aysun
Author-Name: Melanie Guldi
Author-X-Name-First: Melanie
Author-X-Name-Last: Guldi
Title: Derivatives Market Activity in Emerging Markets and Exchange Rate Exposure
Abstract:
 Using firm-level data, we show that higher derivatives market participation by emerging market firms contributed to the observed decline in the exchange rate exposure of these firms from 1995 to 2005. Our methodology follows a three-stage approach. First, we measure and report exchange rate exposures for each year using the popularized extension of the Adler and Dumas (1984) model. Next, we use an indirect methodology to estimate firms' derivatives market participation. Finally, we investigate the effects of derivatives market participation on firms' exchange rate exposure. Our results show that exposure is negatively related to derivatives usage.
Journal: Emerging Markets Finance and Trade
Pages: 46-67
Issue: 6
Volume: 47 
Year: 2011 
Month: 11
Keywords: derivatives, emerging markets, exchange rate exposure
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H413H5464551G287
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adler, M., and B. Dumas. 1984. "Exposure to Currency Risk: Definition and Measurement." <i>Financial Management</i> 13, no. 2: 41-50.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Allayannis, G., and E. Ofek. 2001. "Exchange Rate Exposure, Hedging and the Use of Foreign Currency Derivatives." <i>Journal of International Money and Finance</i> 20, no. 2: 273-296.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Arellano, M., and O. Bover. 1995. "Another Look at the Instrumental-Variable Estimation Components Models." <i>Journal of Econometrics</i> 68, no. 1: 29-52.</BIBTEXT>	 </REF>      <REF>	 <BIBL>4</BIBL>    <BIBTEXT> Bank for International Settlements (BIS). 1997. "Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity." Basel, December.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bartram, S. M., and G. M. Bodnar. 2007. "The Exchange Rate Exposure Puzzle." <i>Managerial Finance</i> 33, no. 9: 642-666.</BIBTEXT>     </REF>      <REF>	  <BIBL>6</BIBL>   <BIBTEXT> Bartram, S. M.; G. W. Brown; and F. R. Fehle. 2009. "International Evidence on Financial Derivative Usage." <i>Financial Management</i> 38, no, 1: 185-206.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bodnar, G. M., and G. Gebhardt. 1999. "Derivatives Usage in Risk Management by U. S. and German Non-Financial Firms." <i>Journal of International Financial Management and Accounting</i> 10, no. 3: 158-187.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Bodnar, G. M., and M. H. F. Wong. 2003. "Estimating Exchange Rate Exposure Some Weighty Issues." <i>Financial Management</i> 32, no. 1: 35-67.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Broll, U.; R. Mallick; and K. P. Wong. 2001. "International Trade and Hedging in Economies in Transition." <i>Economic Systems</i> 25, no. 2: 149-159.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Cardarelli, R.; S. Elekdag; and A. M. Kose. 2010. "Capital Inflows: Macroeconomic Implications and Policy Responses." <i>Economic Systems</i> 34, no. 4: 333-356.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Chen, N. F.; R. Roll; and S. A. Ross. 1986. "Economic Forces and the Stock Market." <i>Journal of Business</i> 59, no. 3: 383-403.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Chow, E. H.; W. Y. Lee; and M. E. Solt. 1997. "The Economic Exposure of U. S. Multinational Firms." <i>Journal of Financial Research</i> 20, no. 2: 191-210.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Chue, T. K., and D. E. Cook. 2008. "Emerging Market Exchange-Rate Exposure." <i>Journal of Banking and Finance</i> 32, no. 7: 1349-1362.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Clare, G., and I. N. Gang. 2010. "Exchange Rate and Political Risks, Again." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 46-58.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Cragg, J. 1971. "Some Statistical Models for Limited Dependent Variable with Application to the Demand of Durable Goods." <i>Econometrica</i> 39, no. 5: 829-844.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>  <BIBTEXT> Dellas, H., and M. Hess. 2005. "Financial Development and Stock Returns: A Cross-Country Analysis." <i>Journal of International Money and Finance</i> 24, no. 6: 891-912.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Doidge, C.; J. Griffin; and R. Williamson. 2006. "Measuring the Economic Importance of Exchange Rate Exposure." <i>Journal of Empirical Finance</i> 4, no. 5: 550-576.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Dominguez, K. M. E., and L. T. Tesar. 2001. "A Re-Examination of Exchange Rate Exposure." <i>American Economic Review</i> 91, no. 2: 396-399.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Dominguez, K. M. E., and L. T. Tesar. 2006. "Exchange Rate Exposure." <i>Journal of International Economics</i> 68, no. 1: 188-218.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Dukas, S. P.; A. M. Fatemi; and A. Tavakkol. 1996. "Foreign Exchange Rate Exposure and the Pricing of Exchange Rate Risk." <i>Global Finance Journal</i> 7, no. 2: 169-189.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Fama, E. F. 1981. "Stock Returns, Real Activity, Inflation and Money." <i>American Economic Review</i> 71, no. 4: 545-565.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Financial Policy Forum. 2004. "Developing Countries Lead Growth in Global Derivatives Markets." Special Policy Brief no. 15. Washington, DC.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Futures Industry Association. 2003. "Annual Survey." Washington, DC.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Hagelin, N., and B. Pramborg. 2004. "Hedging Foreign Exchange Exposure: Risk Reduction from Transaction and Translation Hedging." <i>Journal of International Financial Management and Accounting</i> 15, no. 1: 1-20.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> He, J., and L. K. Ng. 1994. "Economic Forces, Fundamental Variables, and Equity Returns." <i>Journal of Business</i> 67, no. 4: 599-609.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Ibrahim, M. 1999. "Macroeconomic Variables and Stock Prices in Malaysia: An Empirical Analysis." <i>Asian Economic Journal</i> 13, no. 2: 219-231.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> International Monetary Fund. 2007. "The Development of Bond Markets in Emerging Market Countries." Note presented at the G7 Deputies meeting, February.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Jongen, R.; A. Muller; and W. F. C. Verschoor. 2007. "Using Survey Data to Resolve the Exchange Risk Exposure Puzzle: Evidence from U. S. Multinational Firms." Meeting paper, European Finance Association, Ljubljana.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Jorion, P. 1990. "The Exchange Rate Exposure of U. S. Multinationals." <i>Journal of Business</i> 63, no. 3: 331-345.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Kho, B., and R. M. Stulz. 2000. "Banks, the IMF, and the Asian Crisis." <i>Pacific-Basin Finance Journal</i> 8, no. 2: 177-216.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Kogut, B., and N. Kulatilaka. 1994. "Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network." <i>Management Science</i> 40, no. 1: 123-139.</BIBTEXT>	 </REF>     <REF>	<BIBL>32</BIBL>	  <BIBTEXT> Levy-Yeyati, E., and F. Sturzenegger. 2005. "Classifying Exchange Rate Regimes: Deeds vs. Words." <i>European Economic Review</i> 49, no. 6: 1603-1635.</BIBTEXT>	  </REF>      <REF>	  <BIBL>33</BIBL>	<BIBTEXT> Lien, D., and M. Zhang. 2008. "A Survey of Emerging Derivatives Markets." <i>Emerging Markets Finance & Trade</i> 44, no. 2 (March-April): 39-69.</BIBTEXT>	</REF>     <REF>	    <BIBL>34</BIBL>	  <BIBTEXT> McAleer, M., and C. R. McKenzie. 1991. "When Are Two Step Estimators Efficient?" <i>Econometric Reviews</i> 10, no. 2: 235-252.</BIBTEXT>	  </REF>      <REF>	<BIBL>35</BIBL>	<BIBTEXT> McAleer, M., and C. R. McKenzie. 1994. "On the Effects of Misspecification Errors in Models with Generated Regressors." <i>Oxford Bulletin of Economics and Statistics</i> 56, no. 4: 441-455.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>   <BIBTEXT> Muller, A., and W. F. C. Verschoor. 2006. "European Foreign Exchange Risk Exposure." European Financial Management 12, no. 2: 195-220.</BIBTEXT>	 </REF>      <REF>	 <BIBL>37</BIBL>    <BIBTEXT> Muller, A., and W. F. C. Verschoor. 2005. "The Impact of Corporate Derivative Usage on Foreign Exchange Risk Exposure." Working paper, HEC Management School University of Liège and Erasmus University Rotterdam, March.</BIBTEXT>	</REF>	<REF>	   <BIBL>38</BIBL> <BIBTEXT> Newey, W. K., and K. D. West. 1987. "A Simple, Positive Semi-Definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix." <i>Econometrica</i> 55, no. 3: 703-708.</BIBTEXT>     </REF>      <REF>	  <BIBL>39</BIBL>   <BIBTEXT> Ozkan, G.; A. Kipici; and M. Ismihan. 2010. "The Banking Sector, Government Bonds, and Financial Intermediation: The Case of Emerging Market Countries." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 55-70.</BIBTEXT>      </REF>	<REF>    <BIBL>40</BIBL>	<BIBTEXT> Pagan, A. 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors." <i>International Economic Review</i> 25, no. 1: 221-247.</BIBTEXT> </REF>     <REF>   <BIBL>41</BIBL>	<BIBTEXT> Pantzalis, C.; B. J. Simkins; and P. A. Laux. 2001. "Operational Hedges and the Foreign Exchange Exposure of U. S. Multinational Corporations." <i>Journal of International Business Studies</i> 32, no. 4: 793-812.</BIBTEXT>	</REF>	 <REF>	   <BIBL>42</BIBL>	<BIBTEXT> Parsley, D. C., and H. Popper. 2006. "Exchange Rate Pegs and Foreign Exchange Exposure in East and Southeast Asia." <i>Journal of International Money and Finance</i> 25, no. 6: 992-1009.</BIBTEXT>      </REF>	  <REF>     <BIBL>43</BIBL>	<BIBTEXT> Prasad, A. M., and M. Rajan. 1995. "The Role of Exchange and Interest Risk in Equity Valuation: A Comparative Study of International Stock Markets." <i>Journal of Economics and Business</i> 47, no. 5: 457-472.</BIBTEXT>   </REF>     <REF>	 <BIBL>44</BIBL>   <BIBTEXT> Richardson, M., and T. Smith. 1991. "Tests of Financial Models in the Presence of Overlapping Observations." <i>Review of Financial Studies</i> 4, no. 2: 227-234.</BIBTEXT>	</REF>	    <REF>	<BIBL>45</BIBL>       <BIBTEXT> Schwert, G. W. 1990. "Stock Returns and Real Activity: A Century of Evidence." <i>Journal of Finance</i> 45, no. 4: 1237-1257.</BIBTEXT>	 </REF>      <REF>	<BIBL>46</BIBL>	 <BIBTEXT> Simkins, B., and P. Laux. 1997. "Derivatives Use and the Exchange Rate Risk of Investing in Large U. S. Corporations." Working paper, Department of Finance, Case Western Reserve University, Cleveland.</BIBTEXT>    </REF>    <REF>	    <BIBL>47</BIBL>	  <BIBTEXT> Stulz, R. M. 2003. <i>Risk Management and Derivatives.</i> Cincinnati: Southwestern.</BIBTEXT>	  </REF>      <REF>	<BIBL>48</BIBL>	<BIBTEXT> Turner, P. 2002. "The Development of Bond Markets in Emerging Economies: An Overview of Policy Issues." BIS Paper no. 11, Bank for International Settlements, Basel, Switzerland.</BIBTEXT>	 </REF>      <REF>	<BIBL>49</BIBL>   <BIBTEXT> Walsh, E. J. 1994. "Operating Income, Exchange Rate Changes and the Value of the Firm: An Empirical Analysis." <i>Journal of Accounting, Auditing and Finance</i> 9, no. 4: 703-724.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:6:p:46-67




Template-Type: ReDIF-Article 1.0
Author-Name: Evžen Kocenda
Author-X-Name-First: Evžen
Author-X-Name-Last: Kocenda
Author-Name: Martin Vojtek
Author-X-Name-First: Martin
Author-X-Name-Last: Vojtek
Title: Default Predictors in Retail Credit Scoring: Evidence from Czech Banking Data
Abstract:
 Credit to the private sector has risen rapidly in European emerging markets, but its risk evaluation has been largely neglected. Using retail-loan banking data from the Czech Republic, we construct two credit risk models based on logistic regression and classification and regression trees. Both methods are comparably efficient and detect similar financial and socioeconomic variables as the key determinants of default behavior. We also construct a model without the most important financial variable (amount of resources), which performs very well. This way, we confirm significance of sociodemographic variables and link our results with specific issues characteristic to new EU members.
Journal: Emerging Markets Finance and Trade
Pages: 80-98
Issue: 6
Volume: 47 
Year: 2011 
Month: 11
Keywords: banking sector, CART, credit scoring, discrimination analysis, European Union, pattern recognition, retail loans
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J731L4122P636J00
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Anderson, R. 2007. <i>Credit Scoring Toolkit: Theory and Practice for Retail Credit Risk Management and Decision Automation.</i> Oxford: Oxford University Press.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Arslan, Ö., and M. B. Karan. 2010. "Consumer Credit Risk Characteristics: Understanding Income and Expense Differentials." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 20-37.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Avery, R. B.; P. S. Calem; and G. B. Canner. 2004. "Consumer Credit Scoring: Do Situational Circumstances Matter?" <i>Journal of Banking and Finance</i> 28, no. 4: 835-856.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Backé, P., and C. Wójcik. 2008. "Credit Boom, Monetary Integration and the New Neoclassical Synthesis." <i>Journal of Banking and Finance</i> 32, no. 3: 458-470.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Banasik, J.; J. Crook; and L. Thomas. 2003. "Sample Selection Bias in Credit Scoring Models." <i>Journal of the Operational Research Society</i> 54, no. 8: 822-832.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Barisitz, S. 2005. "Banking in Central and Eastern Europe since the Turn of the Millennium—An Overview of Structural Modernization in Ten Countries." <i>Focus on European Economic Integration</i> 2, no. 5: 58-82.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Blöchlinger, A., and M. Leippold. 2006. "Economic Benefit of Powerful Credit Scoring." <i>Journal of Banking and Finance</i> 30, no. 3: 851-873.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Breiman, L.; J. H. Friedman; R. A. Olshen; and C. J. Stone. 1984. <i>Classification and Regression Trees.</i> Pacific Grove, CA: Wadsworth.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Charitou, A.; E. Neophytou; and C. Charalambous. 2004. "Predicting Corporate Failure: Empirical Evidence for the UK." <i>European Accounting Review</i> 13, no. 3: 465-497.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Czech National Bank. 2010. <i>Financial Stability Report 2009/2010.</i> Prague.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Derviz, A., and J. Podpiera. 2008. "Predicting Bank CAMELS and S&P Ratings: The Case of the Czech Republic." <i>Emerging Markets Finance & Trade</i> 44, no. 1 (January-February): 117-130.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Desai, V. S.; J. N. Crook; and G. A. Overstreet. 1996. "A Comparison of Neural Networks and Linear Scoring Models in the Credit Union Environment." <i>European Journal of Operational Research</i> 95, no. 1: 24-37.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Dinh, T. H. T., and S. Kleimeier. 2007. "A Credit Scoring Model for Vietnam's Retail Banking Market." <i>International Review of Financial Analysis</i> 16, no. 5: 471-495.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Feldman, D., and S. Gross. 2005. "Mortgage Default: Classification Tree Analysis." <i>Journal of Real Estate Finance and Economics</i> 30, no. 4: 369-396.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Gabrisch, H., and L. T. Orlowski. 2010. "Interest Rate Convergence in Euro-Candidate Countries: Volatility Dynamics of Sovereign Bond Yields." <i>Emerging Markets Finance & Trade</i> 46, no. 6 (November-December): 69-85.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>  <BIBTEXT> Gallizo, J. L.; R. Saladrigues; and M. Salvador. 2010. "Financial Convergence in Transition Economies: EU Enlargement." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 95-114.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Green, W. 1998. "Sample Selection in Credit-Scoring Models." <i>Japan and World Economy</i> 10, no. 3: 299-316.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Grigorian, D. A., and V. Manole. 2006. "Determinants of Commercial Bank Performance in Transition: An Application of Data Envelopment Analysis." <i>Comparative Economic Studies</i> 48, no. 3: 497-522.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Hand, D. J., and W. E. Henley. 1993. "Can Reject Inference Ever Work?" <i>IMA Journal of Mathematics Applied in Business and Industry</i> 5, no. 4: 45-55.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Hand, D. J., and W. E. Henley. 1997. "Statistical Classification Methods in Consumer Credit Scoring." <i>Journal of the Royal Statistical Society</i> 160, no. 3: 523-541.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Hanousek, J.; E. Kocenda; and P. Ondko. 2007. "The Banking Sector in New EU Member Countries: A Sectoral Financial Flows Analysis." <i>Czech Journal of Economics and Finance</i> 57, nos. 5-6: 200-224.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Hilbers, P. L. C.; I. Otker-Robe; G. Johnsen; and C. Pazarbasioglu. 2005. "Assessing and Managing Rapid Credit Growth and the Role of Supervisory and Prudential Policies." Working Paper no. 05/151, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Lawrence, E., and N. Arshadi. 1995. "A Multinomial Logit Analysis of Problem Loan Resolution Choices in Banking." <i>Journal of Money, Credit and Banking</i> 27, no. 1: 202-216.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Lee, T. S.; C. C. Chiu; Y. C. Chou; and C. J. Lu. 2006. "Mining the Customer Credit Using Classification and Regression Tree and Multivariate Adaptive Regression Splines." <i>Computational Statistics & Data Analysis</i> 50, no. 4: 1113-1130.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Renault, O., and A. de Servigny. 2004. <i>The Standard & Poor's Guide to Measuring and Managing Credit Risk.</i> New York: McGraw-Hill.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Sexton, D. E. 1977. "Determining Good and Bad Credit Risks Among High and Low Income Families." <i>Journal of Business</i> 50, no. 2: 236-239.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Swain, R. B. 2007. "The Demand and Supply of Credit for Households." <i>Applied Economics</i> 39, no. 21: 1-12.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Thomas, L. C.; D. B. Edelman; and J. N. Crook. 2002. <i>Credit Scoring and Its Applications.</i> Philadelphia: SIAM Monographs on Mathematical Modeling and Computation.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Thomas, L. C.; J. Ho; and W. T. Scherer. 2001. "Time Will Tell: Behavioural Scoring and the Dynamics of Consumer Credit Assessment." <i>IMA Journal of Management Mathematics</i> 12, no. 1: 89-103.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Vojtek, M., and E. Kocenda. 2006. "Credit Scoring Methods." <i>Czech Journal of Economics and Finance</i> 56, nos. 3-4: 152-167.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Webb, A. R. 2002. <i>Statistical Pattern Recognition.</i> New York: John Wiley & Sons.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:6:p:80-98




Template-Type: ReDIF-Article 1.0
Author-Name: Chiung-Ju Liang
Author-X-Name-First: Chiung-Ju
Author-X-Name-Last: Liang
Author-Name: Ying-Li Lin
Author-X-Name-First: Ying-Li
Author-X-Name-Last: Lin
Author-Name: Tzu-Tsang Huang
Author-X-Name-First: Tzu-Tsang
Author-X-Name-Last: Huang
Title: Does Endogenously Determined Ownership Matter on Performance? Dynamic Evidence from the Emerging Taiwan Market
Abstract:
 This paper reexamines the relationship between ownership and firm performance. Using an unbalanced panel data in the emerging Taiwan market, we adopt a simultaneous equations framework to explore the persistence of the relationship across the life cycle of firms over time. Empirical results suggest that firm performance is a function of institutional ownership, especially in the mature stage. Through dynamic specification, evidence appears to account for lack of persistence of the impacts of ownership on performance over time. To alleviate a potential simultaneity issue, we construct a lagged specification to examine the sensitivity of our results. Consequently, the main results are found to be robust.
Journal: Emerging Markets Finance and Trade
Pages: 120-133
Issue: 6
Volume: 47 
Year: 2011 
Month: 11
Keywords: emerging Taiwan market, endogeneity, life-cycle stage, ownership structure, simultaneous equations framework, unbalanced panel
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K057N257N175V572
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adams, R., and J. A. C. Santos. 2006. "Identifying the Effect of Managerial Control on Firm Performance." <i>Journal of Accounting and Economics</i> 41, nos. 1-2: 55-85.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Almazan, A.; J. Hartzell; and L. T. Starks. 2005. "Active Institutional Shareholders and Cost of Monitoring: Evidence from Managerial Compensation." <i>Financial Management</i> 34, no. 4: 5-34.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Anderson, R. C., and D. M. Reeb. 2003. "Founding-Family Ownership and Firm Performance: Evidence from the S&P 500." <i>Journal of Finance</i> 58, no. 3: 1301-1328.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Anthony, J. H., and K. Ramesh. 1992. "Association Between Accounting Performance Measures and Stock Prices." <i>Journal of Accounting and Economics</i> 15, nos. 2-3: 203-227.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Barnhart, S. W., and S. Rosenstein. 1998. "Board Composition, Managerial Ownership, and Firm Performance: An Empirical Analysis." <i>Financial Review</i> 33, no. 4: 1-16.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bektas, E., and T. Kaymak. 2009. "Governance Mechanisms and Ownership in an Emerging Market: The Case of Turkish Banks." <i>Emerging Markets Finance & Trade</i> 45, no. 6 (November-December): 20-32.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Black, E. L. 1998. "Life-Cycle Impacts on the Incremental Value-Relevance of Earnings and Cash Flow Measures." <i>Journal of Financial Statement Analysis</i> 4, no. 1: 40-56.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Cho, M.-H. 1998. "Ownership Structure, Investment, and the Corporate Value: An Empirical Analysis." <i>Journal of Financial Economics</i> 47, no. 1: 103-121.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Cornett, M. M.; A. J. Marcus; S. Anthony; and H. Tehranian. 2007. "The Impact of Institutional Ownership on Corporate Operating Performance." <i>Journal of Banking and Finance</i> 31, no. 6: 1771-1794.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Crutchley, C. E.; M. R. H. Jensen; J. S. Jahera, Jr.; and J. E. Raymond. 1999. "Agency Problems and the Simultaneity of Decision Making: The Role of Institutional Ownership." <i>International Review of Financial Analysis</i> 8, no. 2: 177-197.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Demsetz, H., and K. Lehn. 1985. "The Structure of Corporate Ownership: Causes and Consequences." <i>Journal of Political Economy</i> 93, no. 6: 1155-1177.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Demsetz, H., and B. Villalonga. 2001. "Ownership Structure and Corporate Performance." <i>Journal of Corporate Finance</i> 7, no. 3: 209-233.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Faccio, M., and M. A. Lasfer. 2000. "Do Occupational Pension Funds Monitor Companies in Which They Hold Large Stakes?" <i>Journal of Corporate Finance</i> 6, no. 1: 71-110.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Farooque, O. A.; T. V. Zijl; K. Dunstanc; and A. W. Karim. 2007. "Ownership Structure and Corporate Performance: Evidence from Bangladesh." <i>Asia-Pacific Journal of Accounting and Economics</i> 14: 127-150.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Hahn, J., and J. A. Hausman. 2002. "A New Specification Test for the Validity of Instrumental Variables." <i>Econometrica</i> 70, no. 1: 163-189.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Hermalin, B., and M. Weisbach. 1991. "The Effects of Board Compensation and Direct Incentives on Firm Performance." <i>Financial Management</i> 20, no. 4: 101-112.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Himmelberg, C. P.; R. G. Hubbard; and D. Palia. 1999. "Understanding the Determinants of Managerial Ownership and the Link Between Ownership and Performance." <i>Journal of Financial Economics</i> 53, no. 3: 353-384.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Holderness, C.; R. Kroszner; and D. Sheehan. 1999. "Were the Good Old Days That Good? Changes in Managerial Stock Ownership Since the Great Depression." <i>Journal of Finance</i> 54, no. 2: 435-469.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Huang, H. H.; P. Hsu; H. A. Khan; and Y. L. Yu. 2008. "Does the Appointment of an Outside Director Increase Firm Value? Evidence from Taiwan." <i>Emerging Markets Finance & Trade</i> 44, no. 3 (May-June): 66-80.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Iturriaga, F. J. L., and V. L. Crisóstomo. 2010. "Do Leverage, Dividend Payout, and Ownership Concentration Influence Firms' Value Creation? An Analysis of Brazilian Firms." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June 2010): 80-94.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Jensen, M. C., and W. H. Meckling. 1976. "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure." <i>Journal of Financial Economics</i> 3, no. 4: 305-360.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Lemmon, M., and K. Lins. 2003. "Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis" <i>Journal of Finance</i> 58, no. 4: 1445-1468.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> McConnell, J. J.; and H. Servaes. 1990. "Additional Evidence on Equity Ownership and Corporate Value." <i>Journal of Financial Economics</i> 27, no. 2: 595-612.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> McConnell, J. J.; S. Henri; and K. Lins. 2008. "Changes in Insider Ownership and Changes in the Market Value of the Firm." <i>Journal of Corporate Finance</i> 14, no. 2: 92-106.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Miles, G.; C. C. Snow; and M. P. Sharfman. 1993. "Industry Variety and Performance." <i>Strategic Management Journal</i> 14, no. 3: 163-177.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Morck, R.; A. Shleifer; and R. W. Vishny. 1988. "Management Ownership and Market Valuation: An Empirical Analysis." <i>Journal of Financial Economics</i> 20, nos. 1-2: 293-315.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Sanjai, B., and B. Brian. 2008. "Corporate Governance and Firm Performance." <i>Journal of Corporate Finance</i> 14: 257-273.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Selarka, E. 2005. "Ownership Concentration and Firm Value: A Study from the Indian Corporate Sector." <i>Emerging Markets Finance & Trade</i> 41, no. 6 (November-December): 83-108.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Shen, C. H., and K. L. Lin. 2010. "The Impact of Corporate Governance on the Relationship Between Fundamental Information Analysis and Stock Returns." <i>Emerging Markets Finance & Trade</i> 46, no. 5 (September-October): 90-105.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Shyu, J., and Y. L. Chen. 2009. "Diversification, Performance, and the Corporate Life Cycle." <i>Emerging Markets Finance & Trade</i> 45, no. 6 (November-December): 57-68.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Villalonga, B., and R. Amit. 2006. "How Do Family Ownership, Control, and Management Affect Firm Value?" <i>Journal of Financial Economics</i> 80, no. 2: 385-417.</BIBTEXT>	 </REF>    <REF>	  <BIBL>32</BIBL>	<BIBTEXT> Yeh, Y. H., and T. Woidtke. 2005. "Commitment or Entrenchment? Controlling Shareholders and Board Composition." <i>Journal of Banking and Finance</i> 29, no. 7: 1857-1885.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:47:y:2011:i:6:p:120-133




Template-Type: ReDIF-Article 1.0
Author-Name: H. Young Baek
Author-X-Name-First: H. Young
Author-X-Name-Last: Baek
Author-Name: David Cho
Author-X-Name-First: David
Author-X-Name-Last: Cho
Author-Name: Dong-Kyoon Kim
Author-X-Name-First: Dong-Kyoon
Author-X-Name-Last: Kim
Title: Multinational Real Options and Hysteresis: An Examination of FDI in Manufacturing and Hard- and Soft-Service Industries
Abstract:
 Growth option benefits in foreign direct investment may be limited by a low probability of exercise due to less demand or corporate focus change. Acquisitions driven by management self-interest may even decrease shareholder wealth. Flexibility option benefits are negligible among soft-service multinational enterprises (MNEs), but are better realized by hard-service MNEs, which are operationally less encumbered by hysteresis than manufacturing MNEs. For 235 foreign acquisitions announced by U.S. firms during 1999 and 2000, flexibility options have a positive effect on shareholder value especially for the hard-service acquirers, which are less subject to the muting effects of hysteresis.
Journal: Emerging Markets Finance and Trade
Pages: 7-19
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: flexibility, foreign direct investment (FDI), growth, hysteresis, multinational enterprise (MNE), real option, platform, switching
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=05647630046M1432
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Amihud, Y., and B. Lev. 1981. "Risk Reduction as a Managerial Motive for Conglomerate Mergers." <i>Bell Journal of Economics</i> 12, no. 2: 605-617.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Amram, M., and N. Kulatilaka. 1999. <i>Real Options: Managing Strategic Investment in an Uncertain World</i>. Boston: Harvard Business School Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Baek, H. 2003. "Parent-Affiliate Agency Conflicts and Foreign Entry Mode Choice." <i>Multinational Business Review</i> 11, no. 2: 75-97.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Baek, H., and C. Kwok. 2002. "Foreign Exchange Rates and the Corporate Choice of Foreign Entry Mode." <i>International Review of Economics and Finance</i> 11: 207-227.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Baldwin, R. 1988. 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"Service Multinationals: Conceptualization, Measurement and Theory." <i>Journal of International Business Studies</i> 17, no. 3: 41-57.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Buckley, P., and C. Casson. 1976. <i>The Future of the Multinational Enterprise</i>. London: Macmillan.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Christophe, S. 1997. "Hysteresis and the Value of the U.S. Multinational Corporation." <i>Journal of Business</i> 70, no. 3: 435-462.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Contractor, F.; S. Kundu; and C. Hsu. 2003. "A Three-Stage Theory of International Expansion: The Link Between Multinationality and Performance in the Service Sector." <i>Journal of International Business Studies</i> 34, no. 1: 5-18.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Dixit, A. 1989. "Entry and Exit Decisions Under Uncertainty." <i>Journal of Political Economy</i> 97, no. 3: 620-638.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Doukas, J., and N. Travlos. 1988. "The Effect of Corporate Multinationalism on Shareholders' Wealth: Evidence from International Acquisitions." <i>Journal of Finance</i> 43, no. 5: 1161-1175.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Dunning, J. 1980. "Toward an Eclectic Theory of International Production: Some Empirical Tests." <i>Journal of International Business Studies</i> 11, no. 1: 9-31.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Erramilli, M. 1991. "The Experience Factor in Foreign Market Entry Behavior of Service Firms." <i>Journal of International Business Studies</i> 22, no. 3: 479-501.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Erramilli, M., and C. Rao. 1990. 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"Designing Global Strategies: Profiting from Operational Flexibility." <i>Sloan Management Review</i> 27, no. 1: 27-38.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Kogut, B., and N. Kulatilaka. 1994a. "Operating Flexibility, Global Manufacturing and the Option Value of a Multinational Network." <i>Management Science</i> 40, no. 1: 123-139.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Kogut, B., and N. Kulatilaka. 1994b. "Options Thinking and Platform Investments: Investing in Opportunity." <i>California Management Review</i> 36, no. 2: 52-71.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Lee, H. 2010. "The Destination of Outward FDI and the Performance of South Korean Multinationals. <i>Emerging Markets Finance and Trade</i> 46, no. 3: 59-66.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Markides, C., and C. Ittner. 1994. "Shareholder Benefits from Corporate International Diversification: Evidence from U.S. International Acquisitions." <i>Journal of International Business Studies</i> 25, no. 2: 343-366.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Morck, R., and B. Yeung. 1991. "Why Investors Value Multinationality." <i>Journal of Business</i> 64, no. 2: 165-187.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Myers, S. 1977. "Determinants of Corporate Borrowing." <i>Journal of Financial Economics</i> 5, no. 2: 147-176.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Quer, D., and E. Claver. 2007. "Determinants of Spanish Foreign Direct Investment in Morocco." <i>Emerging Market Finance and Trade</i> 43, no. 2: 19-32.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Richardson, S. 2006. "Over-Investment of Free Cash Flow." <i>Review of Accounting Studies</i> 11: 159-189.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Shleifer, A., and R.W. Vishny. 2003. "Stock Market Driven Acquisitions." <i>Journal of Financial Economics</i> 70: 295-311.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Tong, T., and J. Reuer. 2007. "Real Options in Multinational Corporations: Organizational Challenges and Risk Implication." <i>Journal of International Business Studies</i> 38: 215-230.</BIBTEXT>	 </REF>    <REF>	  <BIBL>32</BIBL>	<BIBTEXT> Zeithaml, V.; A. Parasuraman; and L. Berry. 1985. "Problems and Strategies in Services Marketing." <i>Journal of Marketing</i> 49: 33-46.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:7-19




Template-Type: ReDIF-Article 1.0
Author-Name: Song-Hua Hu
Author-X-Name-First: Song-Hua
Author-X-Name-Last: Hu
Author-Name: Guang Li
Author-X-Name-First: Guang
Author-X-Name-Last: Li
Author-Name: Yue-Hua Xu
Author-X-Name-First: Yue-Hua
Author-X-Name-Last: Xu
Author-Name: Xu-Ang Fan
Author-X-Name-First: Xu-Ang
Author-X-Name-Last: Fan
Title: Effects of Internal Governance Factors on Cross-Border-Related Party Transactions of Chinese Companies
Abstract:
 This study investigates the determinants of the cross-border-related party (CBRP) transactions of Chinese firms. Our empirical analysis of companies listed on China's stock exchanges provides insightful findings. First, the size of CBRP transactions is positively associated with concentrated ownership, CEO (chief executive officer) duality, and an imbalance of power among large shareholders. Furthermore, the size of CBRP transactions tends to decrease as the proportion of outside directors rises, but it is likely to increase as the outside directors' compensations become larger. State-owned companies make more CBRP transactions than non-state-owned companies. Finally, the equity incentive for executives produces insignificant effects on CBRP transactions.
Journal: Emerging Markets Finance and Trade
Pages: 58-73
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: CEO duality, connected party transactions, corporate governance, equity incentive, outside directors, ownership structure
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=242G828773160618
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baliga, B.R.; R.C. Moyer; and R.S. Rao. 1996. "CEO Duality and Firm Performance. What's the Fuss?" <i>Strategic Management Journal</i> 1, no. 17: 41-53.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bennedsen, M., and D. Wolfenzon. 2000. "The Balance of Power in Closely Held Corporations." <i>Journal of Financial Economics</i> 58, no. 1: 113-139.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bertrand, M.; P. Mehta; and S. Mullainathan. 2002. "Ferreting Out Tunneling: An Application. Indian Business Groups." <i>Quarterly Journal of Economics</i> 118, no. 4: 121-148.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Borokhovich, K.A.; R. Parrino; and T. Trapani. 1996. "Outside Directors and CEO Selection." <i>Journal of Financial and Quantitative Analysis</i> 31, no. 3: 337-355.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Brockman, P., and D.Y. Chung. 2003. "Investor Protection and Firm Liquidity." <i>Journal of Finance</i> 58, no. 2: 921-938.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chen, X., and K. Wang. 2005. "Related Party Transactions, Corporate Governance and State Ownership Reform." <i>Economic Research Journal</i> 4: 77-86 (in Chinese).</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Claessens, S., and J.P.H. Fan. 2002. "Corporate Governance in Asia: A Survey." <i>International Review of Finance</i> 57, no. 3: 2741-2771.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Fama, E., and M. Jensen 1983. "Separation of Ownership and Control." <i>Journal of Law and Economics</i> 26, no. 2: 301-325.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Holmstrom, B., and P. Milgrom. 1994. "The Firm as an Incentive System." <i>American Economic Review</i> 84, no. 4: 972-991.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Hu, S.H.; Y.Q. Shen; and Y.H. Xu. 2009. "Determinants of Related Party Transactions: Evidence from China's Listed Companies During 2002-2006." <i>Frontier of Business Research in China</i> 3 no. 2: 190-206.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Jiang, Y., and Z. Wu. 2008. "The Relationship Between Compensation of Outside Directors and the Interest of Controlling Shareholders." <i>Securities Market Herald</i> 1: 37-42 (in Chinese).</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Johnson, S.; R. La Porta; F. Lopez-de-Silanes; and A. Shleifer. 2000. "Tunneling." <i>American Economic Review</i> 90, no. 2: 22-27.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; and A. Shleifer. 1999. "Corporate Ownership Around the World." <i>Journal of Finance</i> 54, no. 2: 471-518.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; and A. Shleifer. 2000. "Agency Problems and Dividend Policies Around the World." <i>Journal of Finance</i> 55, no. 1: 1-33.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Liu, J.M. 2007. "A Study on Determinants of Unfair Related-Party Transactions of Chinese Listed Companies." Ph.D. dissertation, Chongqing University, China (in Chinese).</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Murphy, K. 1999. "Executive Compensation." In <i>Handbook of Labor Economics</i>, vol. 3, ed. O. Ashenfelter and D. Card, pp. 2485-2563. Amsterdam: Elsevier.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Pan, H.; X. Xia; and M. Yu. 2008. "Expropriation: Evidence from Rights Issues in China." <i>Emerging Markets Finance and Trade</i> 4, no. 1: 5-20.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Rao, Y.L.; X. He; and X.P. Liang. 2007. "Related-Party Transactions and Expropriation of Minority Shareholders." <i>Statistics and Decision Making</i> 6, no. 1: 91-94 (in Chinese).</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Shleifer, A., and R.W. Vishny. 1997. "A Survey of Corporate Governance." <i>Journal of Finance</i> 52, no. 2: 737-783.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Tan, K., and C. Wang. 2011. "Corporate Governance and Firm Liquidity: Evidence from the Chinese Stock Market." <i>Emerging Markets Finance and Trade</i> 47, supp. 1: 47-60.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Yalta, A.Y. 2010. "Effect of Capital Flight on Investment: Evidence from Emerging Markets." <i>Emerging Markets Finance and Trade</i> 46, no. 6: 40-54.</BIBTEXT>  </REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Zhang, X.J.; D.J. Wang; and J. Xu. 2007. "Related-Party Transactions and Tunneling Activities of Controlling Shareholders." <i>South China Journal of Economics</i> 5, no. 1: 53-64 (in Chinese).</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:58-73




Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Chin Chiu
Author-X-Name-First: Yung-Chin
Author-X-Name-Last: Chiu
Author-Name: Ching-Wen Liang
Author-X-Name-First: Ching-Wen
Author-X-Name-Last: Liang
Author-Name: Yanzhi Wang
Author-X-Name-First: Yanzhi
Author-X-Name-Last: Wang
Title: Corporate Financing Decisions on Research and Development Increases
Abstract:
 This paper investigates corporate financing decisions on corporate investment using cases of research and development (R&D) spending. We focus on U.S. firms with large R&D increases in 1986 to 2007, and we find that most firms with increases in R&D outlays use internal funds to finance the projects. R&D increasing firms with ex ante external financing are prone to low book-to-market ratios, indicating that firms choose external funds for their investment needs when the market timing is good. Finally, we find that the market reaction to R&D increases using internal funds is similar to R&D increases using external funds.
Journal: Emerging Markets Finance and Trade
Pages: 88-109
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: financing decision, market timing, R&D investment
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=3406J866046512J7
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bah, R., and P. Dumontier. 2001. "R&D Intensity and Corporate Financial Policy: Some International Evidence." <i>Journal of Business Finance and Accounting</i> 28, nos. 5-6: 671-692.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Baker, M., and J. Wurgler. 2002. "Market Timing and Capital Structure." <i>Journal of Finance</i> 57, no. 1: 1-32.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Billett, M.T., and H. Xue. 2007. "Share Repurchases and the Need for External Finance." <i>Journal of Applied Corporate Finance</i> 19, no. 3: 42-55.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Boyd, J.H., and E.G. Prescott. 1986. "Financial Intermediary-Coalitions." <i>Journal of Economic Theory</i> 38, no. 2: 211-232.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Brown, J.R., and B.C. Petersen. 2011. "Cash Holding and R&D Smoothing." <i>Journal of Corporate Finance</i> 17, no. 3: 694-709.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chan, K.; D. Ikenberry; and I. Lee. 2004. "Economic Sources of Gain in Stock Repurchases." <i>Journal of Financial and Quantitative Analysis</i> 39, no. 3: 461-479.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chan, K.; L.K.C. Chan; N. Jegadeesh; and Josef Lakonishok. 2006. "Earnings Quality and Stock Returns." <i>Journal of Business</i> 79, no. 3: 1041-82.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chan, K.; D. Ikenberry; I. Lee; and Y. Wang. 2010. "Share Repurchases as a Potential Tool to Mislead Investors." <i>Journal of Corporate Finance</i> 16, no. 2: 137-158.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chan, L.K.C.; J. Lakonishok; and T. Sougiannis. 2001. 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"Market Reactions to Tangible and Intangible Information." <i>Journal of Finance</i> 61, no. 4: 1605-1643.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Denis, D.J., and V. Mihov. 2003. "The Choice Among Bank Debt, Non-Bank Private Debt, and Public Debt: Evidence from New Corporate Borrowings." <i>Journal of Financial Economics</i> 70, no. 1: 3-28.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Diamond, D.W. 1984. "Financial Intermediation and Delegated Monitoring." <i>Review of Economic Studies</i> 51, no. 3: 393-414.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Eberhart, A.C.; W.F. Maxwell; and A.R. Siddique. 2004. "An Examination of Long-Term Abnormal Stock Returns and Operating Performance Following R&D Increases." <i>Journal of Finance</i> 59, no. 2: 623-650.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Fama, E.F., and K.R. French. 1993. "Common Risk Factors in the Returns on Stocks and Bonds." <i>Journal of Financial Economics</i> 33, no. 1: 3-56.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Fama, E.F., and K.R. French. 1996. "Multifactor Explanations of Asset Pricing Anomalies Multifactor Explanations of Asset Pricing Anomalies." <i>Journal of Finance</i> 51, no. 1: 55-84.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Fama, E.F., and J.D. MacBeth. 1973. "Risk, Return, and Equilibrium: Empirical Tests." <i>Journal of Political Economy</i> 81, no. 3: 607-636.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Faulkender, M., and M.A. Petersen. 2006. "Does the Source of Capital Affect Capital Structure?" <i>Review of Financial Studies</i> 19, no. 1: 45-79.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Fazzari, S.M., and B.C. Petersen. 1993. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:88-109




Template-Type: ReDIF-Article 1.0
Author-Name: Jaeuk Khil
Author-X-Name-First: Jaeuk
Author-X-Name-Last: Khil
Author-Name: Young S. Park
Author-X-Name-First: Young S.
Author-X-Name-Last: Park
Author-Name: Jhinyoung Shin
Author-X-Name-First: Jhinyoung
Author-X-Name-Last: Shin
Title: The More Transparent, the Better? Effects of Transparency Regime Changes on Large/Actively Traded Stocks on the Korea Exchange
Abstract:
 This paper studies the effects of four events initiated by the Korea Exchange (KRX) aimed at enhancing pre-trade transparency: two for market opening by single-price call auction, and two for regular trading hours by continuous auction. We select the ten largest stocks, and another ten of the most actively traded, before and after each event. Market liquidity and depth were generally improved but not by a statistically significant margin. Investors adjusted their trading strategies as a smaller number of orders was canceled and it took less time for order cancellation. Our study shows that policies aimed at enhancing pre-trade transparency might have only a marginal impact on the trading of large and/or actively traded stocks.
Journal: Emerging Markets Finance and Trade
Pages: 133-152
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: KRX, liquidity, market depth, microstructure, transparency
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=47241032644784Q7
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baruch, S. 2005. "Who Benefits from an Open Limit-Order Book?" <i>Journal of Business</i> 78, no. 4: 1267-1306.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bloomfield, R., and M. O'Hara. 1999. "Market Transparency: Who Wins and Who Loses?" <i>Review of Financial Studies</i> 12, no. 1: 5-35.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Boehmer, E.; G. Saar; and L. Yu. 2005. "Lifting the Veil: An Analysis of Pre-trade Transparency at the NYSE." <i>Journal of Finance</i> 60, no. 2: 783-815.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bortoli, L.; A. Frino; E. Jarnecic; and D. Johnstone. 2006. "Limit Order Book Transparency, Execution Risk and Market Liquidity: Evidence from the Sydney Futures Exchange." <i>Journal of Futures Markets</i> 26, no. 12: 1147-1167.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Carsberg, B. 1994. "Trade Publication Rules of the London Stock Exchange, Report to the Chancellor for the Exchequer by the Director General of Fair Trading." Office of Fair Trading, London.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Comerton-Forde, C.; A. Frino; and V. Mollica. 2005. "The Impact of Limit Order Anonymity on Liquidity: Evidence from Paris, Tokyo and Korea." <i>Journal of Economics and Business</i> 57, no. 6: 528-540.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Eom, K.; J. Ok; and J. Park. 2007. "Pre-trade Transparency and Market Quality." <i>Journal of Financial Markets</i> 10, no. 4: 319-341.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Flood, M.D.; R. Huisman; K.G. Koedijik; and R.J. Mahieu. 1999. "Quote Disclosure and Price Discovery in Multi-Dealer Financial Markets." <i>Review of Financial Studies</i> 12, no. 1: 37-59.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Foucault, T.; S. Moinas; and E. Theissen. 2007. "Does Anonymity Matter in Electronic Limit Order Markets?" <i>Review of Financial Studies</i> 20, no. 5: 1707-1747.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Gajewski, J., and C. Gresse. 2007. "Centralised Order Books Versus Hybrid Order Books: A Paired Comparison of Trading Costs on NSC (Euronext Paris) and SETS (London Stock Exchange)." <i>Journal of Banking and Finance</i> 31, no. 9: 2906-2924.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Glosten, L.R. 1999. "Introductory Comments: Bloomfield and O'Hara, and Flood, Huisman, Koedijik, and Mahieu." <i>Review of Financial Studies</i> 12, no. 1: 1-3.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Huang, Y.C., and P.L. Tsai. 2008. "Effectiveness of Closing Call Auctions: Evidence from the Taiwan Stock Exchange." <i>Emerging Markets Finance and Trade</i> 44, no. 3: 5-20.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Krishnamurti, C.; M. John; J.M. Sequeira; and F. Fu. 2003. "Stock Exchange Governance and Market <i>Quality." Journal of Banking and Finance</i> 27, no. 9: 1859-1878.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Lai, H.; C. Chen; and C. Huang. 2010. "Technical Analysis, Investment Psychology, and Liquidity Provision: Evidence from the Taiwan Stock Market." <i>Emerging Markets Finance and Trade</i> 46, no. 5: 18-38.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Lin, A.Y.; L.S. Huang; and M.Y. Chen. 2007. "Price Comovement and Institutional Performance Following Large Market Movements." <i>Emerging Markets Finance and Trade</i> 43, no. 5: 37-61.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Madhavan, A.; D. Porter; and D. Weaver. 2005. "Should Securities Markets Be Transparent?" <i>Journal of Financial Markets</i> 8, no. 3: 265-287.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Pagano, M., and A. Roell. 1996. "Transparency and Liquidity: A Comparison of Auction and Dealer Markets with Informed Trading." <i>Journal of Finance</i> 51, no. 2: 579-611.</BIBTEXT>    </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Securities Investment Board (SIB). 1994. "Regulation of the United Kingdom Equity Markets." London.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> U.S. Securities and Exchange Commission (SEC). 1994. "Market 2000: An Examination of Current Equity Market Developments." Division of Market Regulation, SEC Government Printing Office, Washington, DC.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:133-152




Template-Type: ReDIF-Article 1.0
Author-Name: Yang-Cheng Lu
Author-X-Name-First: Yang-Cheng
Author-X-Name-Last: Lu
Author-Name: Yu-Chen Wei
Author-X-Name-First: Yu-Chen
Author-X-Name-Last: Wei
Author-Name: Chien-Wei Chang
Author-X-Name-First: Chien-Wei
Author-X-Name-Last: Chang
Title: Nonlinear Dynamics Between the Investor Fear Gauge and Market Index in the Emerging Taiwan Equity Market
Abstract:
 Nonlinear models that include the threshold autoregressive model and the threshold cointegration model (TVECM) are applied from the behavioral finance point of view to examine the dynamics between the investor fear gauge proxied by the volatility index (<i>TVIX</i>) and the market index (<i>TAIEX</i>) in Taiwan. If the <i>TVIX</i> is in the extreme higher regime identified by the TAR, the overreaction of the investors' fear gauge could be the leading indicator of the market. However, in the extreme lower regime identified by the TVECM, the <i>TAIEX</i> returns would drive the deviation between the indexes to convergence.
Journal: Emerging Markets Finance and Trade
Pages: 171-191
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: causality, investor fear gauge, options volatility index, Taiwan, threshold model
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=5XH042314M186M50
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Andersen, T.G., and T. Bollerslev. 1998. "Answering the Skeptics: Yes, Standard Volatility Models Do Provide Accurate Forecasts." <i>International Economic Review</i> 39, no. 4: 885-905.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Andersen, T.G.; T. Bollerslev; F.X. Diebold; and H. Ebens. 2001. "The Distribution of Realized Stock Return Volatility." <i>Journal of Financial Economics</i> 61, no. 1: 43-76.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bekiros, S.D., and D.A. Georgoutsos. 2008. "Non-Linear Dynamics in Financial Asset Returns: The Predictive Power of the CBOE Volatility Index." <i>European Journal of Finance</i> 14, no. 5: 397-408.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bollerslev, T. 1986. "Generalized Autoregressive Conditional Heteroskedasticity." <i>Journal of Econometrics</i> 31, no. 3: 307-327.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Canbas, S., and S.Y. Kandir. 2009. "Investor Sentiment and Stock Returns: Evidence from Turkey." <i>Emerging Markets Finance and Trade</i> 45, no. 4: 36-52.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chan, K.S. 1993. "Consistency and Limiting Distribution of the Least Squares Estimator of a Threshold Autoregressive Model." <i>Annals of Statistics</i> 21, no. 1: 520-533.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Copeland, M.M., and T.E. Copeland. 1999. "Market Timing: Style and Size Rotation Using the VIX." <i>Financial Analysts Journal</i> 55, no. 2: 73-81.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Dionisio, A.; R. Menezes; and D.A. Mendes. 2007. "On the Integrated Behavior of Non-stationary Volatility in Stock Markets." <i>Physica A</i> 382, no. 1: 58-65.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Engle, R.F. 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation." <i>Econometrica</i> 50, no. 4: 987-1007.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Engle, R.F., and T.P. Bollerslev. 1986. "Modelling the Persistence of Conditional Variances." <i>Econometric Reviews</i> 5, no. 1: 1-50.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Fleming, J.; B. Ostdiek; and R.E. Whaley. 1995. "Predicting Stock Market Volatility: A New Measure." <i>Journal of Futures Markets</i> 15, no. 3: 265-302.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Giot, P. 2005. "Relationships Between Implied Volatility Indexes and Stock Index Returns." <i>Journal of Portfolio Management</i> 31, no. 3: 92-100.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Granger, C.W.J. 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods." <i>Econometrica</i> 37, no. 3: 424-438.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Granger, C.W.J. 1988. "Some Recent Developments in a Concept of Causality." <i>Journal of Econometrics</i> 39, nos. 1-2: 199-211.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Hansen, B.E., and B. Seo. 2002. "Testing for Two-Regime Threshold Cointegration in Vector Error-Correction Models." <i>Journal of Econometrics</i> 110, no. 2: 293-318.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Hibbert, A.M.; R.T. Daigler; and B. Dupoyet. 2008. "A Behavioral Explanation for the Negative Asymmetric Return-Volatility Relation." <i>Journal of Banking and Finance</i> 32, no. 10: 2254-2266.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Koopman, S.J.; B. Jungbacker; and E. Hol. 2005. "Forecasting Daily Variability of the S&P 100 Stock Index Using Historical, Realized and Implied Volatility Measurements." <i>Journal of Empirical Finance</i> 12, no. 3: 445-475.</BIBTEXT>    </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Krausz, J.; S.Y. Lee; and K. Nam. 2009. "Profitability of Nonlinear Dynamics Under Technical Trading Rules: Evidence from Pacific Basin Stock Markets." <i>Emerging Markets Finance and Trade</i> 45, no. 4: 13-35.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Olsen, R.A. 1998. "Behavioral Finance and Its Implications for Stock-Price Volatility." <i>Financial Analysts Journal</i> 54, no. 2: 10-18.</BIBTEXT>	 </REF>    <REF>	    <BIBL>20</BIBL>	  <BIBTEXT> Poon, S.H., and C.W.J. Granger. 2005. "Practical Issues in Forecasting Volatility." <i>Financial Analysts Journal</i> 61, no. 1: 45-56.</BIBTEXT>	  </REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Sarkar, N., and D. Mukhopadhyay. 2005. "Testing Predictability and Nonlinear Dependence in the Indian Stock Market." <i>Emerging Markets Finance and Trade</i> 41, no. 6: 7-44.</BIBTEXT>	 </REF>      <REF>	<BIBL>22</BIBL>   <BIBTEXT> Shefrin, H. 2007. <i>Beyond Greed and Fear.</i> New York: Oxford University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>    <BIBTEXT> Sims, C.A. 1972. "Money, Income, and Causality." <i>American Economic Review</i> 62, no. 4: 540-552.</BIBTEXT>	</REF>	<REF>	   <BIBL>24</BIBL> <BIBTEXT> Skiadopoulos, G. 2004. "The Greek Implied Volatility Index: Construction and Properties." <i>Applied Financial Economics</i> 14, no. 16: 1187-1196.</BIBTEXT>     </REF>      <REF>	 <BIBL>25</BIBL>   <BIBTEXT> Taylor, S.J. 1986. <i>Modeling Financial Time Series.</i> Chichester, UK: Wiley.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> Tong, H. 1983. <i>Threshold Models in Non-linear Time Series Analysis.</i> New York: Springer.</BIBTEXT> </REF>     <REF>   <BIBL>27</BIBL>	<BIBTEXT> Tsay, R.S. 2005. <i>Analysis of Financial Time Series.</i> Hoboken, NJ: Wiley.</BIBTEXT>	</REF>	 <REF>	   <BIBL>28</BIBL>	<BIBTEXT> Whaley, R.E. 1993. "Derivatives on Market Volatility: Hedging Tools Long Overdue." <i>Journal of Derivatives</i> 1, no. 1: 71-84.</BIBTEXT>      </REF>    <REF>	    <BIBL>29</BIBL>	  <BIBTEXT> Whaley, R.E. 2000. "The Investor Fear Gauge." <i>Journal of Portfolio Management</i> 26, no. 3: 12-17.</BIBTEXT>	  </REF>      <REF>	<BIBL>30</BIBL>	<BIBTEXT> Whaley, R.E. 2009. "Understanding the VIX." <i>Journal of Portfolio Management</i> 35, no. 3: 98-105.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:171-191




Template-Type: ReDIF-Article 1.0
Author-Name: Guangxi Cao
Author-X-Name-First: Guangxi
Author-X-Name-Last: Cao
Title: Time-Varying Effects of Changes in the Interest Rate and the RMB Exchange Rate on the Stock Market of China: Evidence from the Long-Memory TVP-VAR Model
Abstract:
 This paper extends the TVP-VAR (time-varying parameter structural vector autoregression) (Primiceri 2005) and TVP-R (time-varying parameter autoregression) (Nakajima 2011) to the long-memory models, and uses them to investigate the time-varying effects of changes in the interest rate and renminbi (RMB) exchange rate on the Chinese stock market from July 22, 2005, to January 13, 2012. As shown in the results, the short-term effect on stock returns of changes in the RMB exchange rate is sensitive to the reform of the increasing flexibility of the RMB exchange rate. The short-term effect of interest rate changes on stock returns may be sensitive to the 2008 financial crisis. In the long term, the impact of interest rate changes on stock returns is very limited, whereas appreciation of the RMB is not an unfavorable factor for the Chinese stock market.
Journal: Emerging Markets Finance and Trade
Pages: 230-248
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: impulse response, long memory, long-term equilibrium relationship, time-varying, TVP-VAR
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=7005511373H22123
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abdalla, I., and V. Murinde. 1997. "Exchange Rate and Stock Price Interactions in Emerging Financial Markets: Evidence on India, Korea, Pakistan and the Philippines." <i>Applied Financial Economics</i> 7, no. 1: 25-35.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Akella, S. R., and S. J. Chen. 1990. "Interest Rate Sensitivity of Bank Stock Returns: Specification Effects and Structural Changes." <i>Journal of Financial Research</i> 13, no. 2: 147-154.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Al-Jafari, M. K.; R. M. Salameh; and M. R. Habbash. 2011. "Investigating the Relationship Between Stock Market Returns and Macroeconomic Variables: Evidence from Developed and Emerging Markets." <i>International Research Journal of Finance and Economics</i> 6, no. 79: 6-30.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Ausloos, M. 2000. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:230-248




Template-Type: ReDIF-Article 1.0
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: Implied Volatility Index of KOSPI200: Information Contents and Properties
Abstract:
 This paper investigates the properties and information contents of an implied volatility index based on Korea's index options contract, which is the most liquid options product in the world. Analyzing the recent 100-month-long volatility index series (VKOSPI; Volatility Index of KOSPI200) constructed using the KOSPI200 index and options prices, we measure the in-sample and out-of-sample forecasting performances of the implied volatility index and examine its quality as a market volatility indicator. The VKOSPI exhibits an asymmetric volatility response to positive and negative return shocks and has a significantly positive effect on the explanatory power of nested GARCH models. Though the VKOSPI provides slightly biased forecasts, as other risk-adjusted volatility measures also do, it outperforms the Black-Scholes implied volatility, the RiskMetrics approach, and the GJR-GARCH model (which generally shows the best in-sample performance among the GARCH-family models) in forecasting future realized volatilities.
Journal: Emerging Markets Finance and Trade
Pages: 24-39
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: Black-Scholes, GARCH, implied volatility, KOSPI200 Options, RiskMetrics, VKOSPI
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahn, H.; J. Kang; and D. Ryu. 2008. "Informed Trading in the Index Option Market: The Case of KOSPI 200 Options." <i>Journal of Futures Markets</i> 28, no. 12: 1-29.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Ahn, H.; J. Kang; and D. Ryu. 2010. "Information Effects of Trade Size and Trade Direction: Evidence from the KOSPI 200 Index Options Market." <i>Asia-Pacific Journal of Financial Studies</i> 39, no. 3: 301-339.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Al Janabi, M. A. M.; A. Hatemi-J; and M. Irandoust. 2010. "Modeling Time-Varying Volatility and Expected Returns: Evidence from the GCC and MENA Regions." <i>Emerging Markets Finance & Trade</i> 46, no. 5 (September-October): 39-47.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Black, F. 1976. "Studies of Stock Price Volatility Changes." In proceedings of the Meetings of the American Statistical Association, Business and Economics Section, 177-181.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Blair, B. J.; S.-H. Poon; and S. J. Taylor. 2001. "Forecasting S&P 100 Volatility: The Incremental Information Content of Implied Volatilities and High Frequency Index Returns." <i>Journal of Econometrics</i> 105, no. 1: 5-26.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bollerslev, T., and J. M. Wooldridge. 1992. "Quasi-Maximum Likelihood Estimation and Inference in Dynamic Models with Time Varying Covariances." <i>Econometric Reviews</i> 11, no. 2: 143-172.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bollerslev, T., and H. Zhou. 2006. "Volatility Puzzles: A Unified Framework for Gauging Return- Volatility Regressions." <i>Journal of Econometrics</i> 131, nos. 1-2: 123-150.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Britten-Jones, M., and A. Neuberger. 2000. 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"The Accuracy of Density Forecasts from Foreign Exchange Options." <i>Journal of Financial Econometrics</i> 3, no. 4: 578-605.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Demeterfi, K.; E. Derman; M. Kamal; and J. Zou. 1999. "A Guide to Volatility and Variance Swaps." <i>Journal of Derivatives</i> 6, no. 4 (Summer): 9-32.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Fleming, J.; B. Ostdiek; and R. E. Whaley. 1995. "Predicting Stock Market Volatility: A New Measure." <i>Journal of Futures Markets</i> 15, no. 3: 265-302.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> French, K.; G. Schwert; and R. Stambaugh. 1987. "Expected Stock Returns and Volatility." <i>Journal of Financial Economics</i> 19, no. 1: 3-29.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Frijns, B.; C. Tallau; and A. Tourani-Rad. 2010. 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The Case of an Index Options Market." <i>Applied Economics Letters</i> 19, no. 17: 1683-1692.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Pindyck, R. 1984. "Risk, Inflation, and the Stock Market." <i>American Economic Review</i> 74, no. 3: 335-351.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Poon, S.-H., and C. W. J. Granger. 2003. "Forecasting Volatility in Financial Markets: A Review." <i>Journal of Economic Literature</i> 41, no. 2: 478-539.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Ryu, D. 2011. "Intraday Price Formation and Bid-Ask Spread Components: A New Approach Using a Cross-Market Model." <i>Journal of Futures Markets</i> 31, no. 12: 1142-1169.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Ryu, D. 2012a. "The Effectiveness of the Order-Splitting Strategy: An Analysis of Unique Data." <i>Applied Economics Letters</i> 19, no. 6: 541-549.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Ryu, D. 2012b. "The Profitability of Day Trading: An Empirical Study Using High-Quality Data." <i>Investment Analysts Journal</i>, 75 (May): 43-54.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Sheu, H., and Y. Wei. 2011. "Options Trading Based on the Forecasting of Volatility Direction with the Incorporation of Investor Sentiment." <i>Emerging Markets Finance & Trade</i> 47, no. 2 (March-April): 31-47.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>   <BIBTEXT> Taylor, S. J.; P. K. Yadav; and Y. Zhang. 2010. "Information Content of Implied Volatilities and Model-Free Volatility Expectations: Evidence from Options Written on Individual Stocks." <i>Journal of Banking & Finance</i> 34, no. 4: 871-881.</BIBTEXT>   </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:24-39




Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Ping Wang
Author-X-Name-First: Ching-Ping
Author-X-Name-Last: Wang
Author-Name: Hung-Hsi Huang
Author-X-Name-First: Hung-Hsi
Author-X-Name-Last: Huang
Author-Name: Chi-Chung Huang
Author-X-Name-First: Chi-Chung
Author-X-Name-Last: Huang
Title: Momentum and Contrarian Profits Corresponding to the Coincident Economic Indicator on the Taiwan Stock Market
Abstract:
 This study investigates the momentum and contrarian profits corresponding to the coincident economic indicator on the Taiwan stock market. The empirical findings are as follows. First, neither momentum nor contrarian profits are statistically significant on average. Second, winners and losers have positive excess returns on average, adjusted by the capital assert pricing model (CAPM) and the Fama-French model. Third, the selected portfolio size plays an important role in portfolio returns. Fourth, winner and loser profits are positively related to the size factor in the Fama-French model. Finally, the coincident economic indicator is positively correlated with long-term momentum.
Journal: Emerging Markets Finance and Trade
Pages: 29-40
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: business cycle, CAPM, coincident economic indicator, contrarian strategy, Fama-French model, momentum strategy
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=9N53525205560861
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Barberis, N.; A. Shleifer; and R. Vishny. 1998. "A Model of Investor Sentiment." <i>Journal of Financial Economics</i> 49, no. 3: 307-343.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Chordia, T., and L. Shivakumar. 2002. "Momentum, Business Cycle and Time-Varying Expected Returns." <i>Journal of Finance</i> 57, no. 2: 985-1019.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Chui, A.; S. Titman; and J. Wei. 2010. "Individualism and Momentum Around the World." <i>Journal of Finance</i> 65, no. 1: 361-392.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Cooper, M.; R. Gutierrez; and A. Hameed. 2004. "Market States and Momentum." <i>Journal of Finance</i> 59, no. 3: 1345-1366.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Daniel, K.; D. Hirshleifer; and A. Subrahmanyam. 1998. "Investor Psychology and Security Market Under- and Over-Reaction." <i>Journal of Finance</i> 53, no. 6: 1839-1886.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> De Bondt, W., and R. Thaler. 1985. "Does the Stock Market Overreact?" <i>Journal of Finance</i> 40, no. 3: 793-808.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Du, D.; Z. Huang; and B-S. Liao. 2009. "Why Is There No Momentum in the Taiwan Stock Market?" <i>Journal of Economics and Business</i> 61, no. 2: 140-152.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Fama, E., and K. French. 1993. "Common Risk Factors in the Returns on Stocks and Bonds." <i>Journal of Financial Economics</i> 33, no. 1: 3-56.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Griffin, J.; X. Ji; and S. Martin. 2003. "Momentum Investing and Business Cycle Risk: Evidence from Pole to Pole." <i>Journal of Finance</i> 58, no. 6: 2515-2547.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Hameed, A., and Y. Kusnadi. 2002. "Momentum Strategies: Evidence from Pacific Basin Stock Markets." <i>Journal of Financial Research</i> 25, no. 3: 383-397.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Jegadeesh, N., and S. Titman. 1993. "Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency." <i>Journal of Finance</i> 48, no. 1: 65-91.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Moskowitz, T., and M. Grinblatt. 1999. "Do Industries Explain Momentum?" <i>Journal of Finance</i> 54, no. 4: 1249-1290.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Muga, L., and R. Santamaria. 2007. "The Momentum Effect in Latin American Emerging Markets." <i>Emerging Markets Finance and Trade</i> 43, no. 4: 24-45.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Rouwenhorst, G. 1998. "International Momentum Strategies." <i>Journal of Finance</i> 53, no. 1: 267-284.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Su, D. 2011. "An Empirical Analysis of Industry Momentum in Chinese Stock Markets." <i>Emerging Markets Finance and Trade</i> 47, no. 4: 4-27.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Zhou, H.; J. Geppert; and D. Kong. 2010. "An Anatomy of Trading Strategies: Evidence from China." <i>Emerging Markets Finance and Trade</i> 46, no. 2: 66-79.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:29-40




Template-Type: ReDIF-Article 1.0
Author-Name: Seong-Soon Cho
Author-X-Name-First: Seong-Soon
Author-X-Name-Last: Cho
Author-Name: Jung-Soon Shin
Author-X-Name-First: Jung-Soon
Author-X-Name-Last: Shin
Author-Name: Jinho Byun
Author-X-Name-First: Jinho
Author-X-Name-Last: Byun
Title: The Value of a Two-Dimensional Value Investment Strategy: Evidence from the Korean Stock Market
Abstract:
 This paper examines whether the two-dimensional value investment strategy that incorporates both the value investment strategy and financial statement information can earn excess returns in the Korean stock market. The two-dimensional value investment strategy yields a return of 27.9 percent, which is 8.97 percent higher than the return provided by the simple value investment strategy. Thus, the result shows that the two-dimensional strategy is not only effective in the U. S. stock market, but also effective in emerging markets such as the Korean stock market. Furthermore, the two-dimensional value investment strategy shows that the higher return during a bear market demonstrates the strategy's protective ability.
Journal: Emerging Markets Finance and Trade
Pages: 58-81
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: book-to-market ratio, FSCORE, glamor stocks, value investment, value stocks
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=AU3571L03366757M
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bartov, E., and M. Kim. 2004. "Risk, Mispricing, and Value Investing." <i>Review of Quantitative Finance and Accounting</i> 23, no. 4: 353-376.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Basu, S. 1977. "Investment Performance of Common Stocks in Relation to Their Price-Earnings Ratio: A Test of the Efficient Market Hypothesis." <i>Journal of Finance</i> 32, no. 3: 663-682.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Basu, S. 1983. "The Relationship Between Earnings Yield, Market Value, and Return for NYSE Common Stocks." <i>Journal of Financial Economics</i> 12, no. 1: 129-156.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Brennan, M. J., and A. Subrahmanyam. 1996. "Market Microstructure and Asset Pricing: On the Compensation for Illiquidity in Stock Returns." <i>Journal of Financial Economics</i> 41, no. 4: 441-464.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Chan, L. C.; Y. Hamao; and J. Lakonishok. 1991. "Fundamentals and Stock Returns in Japan." <i>Journal of Finance</i> 46, no. 1: 1739-1764.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chang, Y., and C. Kim. 2003. "A Value Investment Strategy: Its Performance and Sources." <i>Korean Journal of Financial Studies</i> 32, no. 2: 165-208 (in Korean).</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chordia, T.; A. Subrahmanyam; and R. Anshuman. 2001. "Trading Activity and Expected Stock Returns." <i>Journal of Financial Economics</i> 59, no. 1: 3-32.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Dokko, Y.; J. Park; and H. Cho. 2001. "A Study on the Equity Premium in Korea." <i>Asian Review of Financial Research</i> 14, no. 1: 1-22 (in Korean).</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Fama, E., and K. French. 1992. "The Cross Section of Expected Stock Returns." <i>Journal of Finance</i> 47, no. 2: 427-465.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Fama, E., and K. French. 1993. "Common Risk Factors in the Returns on Stocks and Bonds." <i>Journal of Financial Economics</i> 33, no. 1: 3-56.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Fama, E., and K. French. 1995. "Size and Book-to-Market Factors in Earnings and Returns." <i>Journal of Finance</i> 50, no. 1: 131-155.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Frankel, R., and C. M. C. Lee. 1998. "Accounting Valuation, Market Expectation, and Cross- Sectional Stock Returns." <i>Journal of Accounting and Economics</i> 25, no. 3: 283-319.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Gam, H. 1999. "An Empirical Study on the Performance of Contrarian Investment in Korea Stock Market." <i>Korean Journal of Financial Management</i> 16, no. 2: 157-178 (in Korean).</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Jaffe, J. D.; B. Keim; and R. Westerfield. 1989. "Earnings Yields, Market Values, and Stock Returns." <i>Journal of Finance</i> 44, no. 1: 135-148.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Kim, B., and P. Lee. 2006. "An Analysis on the Long-Term Performance of Value Investment Strategy in Korea." <i>Korean Journal of Financial Studies</i> 35, no. 3: 1-39 (in Korean).</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Kim, I., and J. Hong. 2008. "A Study on the Equity Premium Puzzle in Korea." <i>Asian Review of Financial Research</i> 21, no. 1: 1-32 (in Korean).</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>    <BIBTEXT> Kim, K., and J. Byun. 2010. "Effect of Investor Sentiment on Market Response to Stock Split Announcement." <i>Asia-Pacific Journal of Financial Studies</i> 39, no. 6: 687-719.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Kim, K., and J. Byun. 2011. "Studies on Korean Capital Markets from the Perspective of Behavioral Finance." <i>Asian Review of Financial Research</i> 24, no. 3: 953-1020.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Lakonishok, J.; A. Shleifer; and R. Vishny. 1994. "Contrarian Investment, Extrapolation, and Risk." <i>Journal of Finance</i> 49, no. 5: 1541-1578.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> La Porta, R. 1996. "Expectations and the Cross-Section of Stock Returns." <i>Journal of Finance</i> 51, no. 5: 1715-1742.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> La Porta, R.; J. Lakonishok; A. Shleifer; and R. Vishny 1997. "Good News for Value Stocks: Further Evidence on Market Efficiency." <i>Journal of Finance</i> 43, no. 2: 859-874.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Lai, H.; C. Chen; and C. Huan. 2010. "Technical Analysis, Investment Psychology, and Liquidity Provision: Evidence from the Taiwan Stock Market." <i>Emerging Markets Finance & Trade</i> 46, no. 5 (September-October): 18-38.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Piotroski, J. D. 2000. "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers." <i>Journal of Accounting Research</i>, 38, Supplement: 1-41.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Piotroski. J. D., and E. C. So. 2011. "Identifying Expectation Errors in Value/Glamour Strategies: A Fundamental Analysis Approach." Working Paper, Graduate School of Business, Stanford University.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Rosenberg, B.; K. Reid; and R. Lanstein. 1985. "Persuasive Evidence of Market Inefficiency." <i>Journal of Portfolio Management</i> 11, no. 3: 18-28.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Rouwenhorst, R. G. 1999. "Local Return Factors and Turnover in Emerging Stock Markets." <i>Journal of Finance</i> 54, no. 4: 1439-1464.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>   <BIBTEXT> Song, Y. C. 1999. "The Effects of Size and Book-to-Market Ratio on the Cross Sectional Returns." <i>Korean Journal of Financial Studies</i> 24, no. 1: 83-102 (in Korean).</BIBTEXT>   </REF>    <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Yun, S.; B. Ku; Y. Eom; and J. Han. 2009. "The Cross-Section of Stock Returns in Korea: An Empirical Investigation." <i>Asian Review of Financial Research</i> 22, no. 1: 1-44 (in Korean).</BIBTEXT>	  </REF>      <REF>	<BIBL>29</BIBL>	<BIBTEXT> Wang, C., and L. Xie. 2010. "Information Diffusion and Overreaction: Evidence from the Chinese Stock Market." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 80-100.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:58-81




Template-Type: ReDIF-Article 1.0
Author-Name: Hsu-Huei Huang
Author-X-Name-First: Hsu-Huei
Author-X-Name-Last: Huang
Author-Name: Min-Lee Chan
Author-X-Name-First: Min-Lee
Author-X-Name-Last: Chan
Author-Name: Chih-Hsiang Chang
Author-X-Name-First: Chih-Hsiang
Author-X-Name-Last: Chang
Author-Name: Jing-Ling Wong
Author-X-Name-First: Jing-Ling
Author-X-Name-Last: Wong
Title: Is Corporate Governance Related to the Conservatism in Management Earnings Forecasts?
Abstract:
 Managers are more likely to overestimate earnings if they are less likely to be penalized when their forecasted earnings cannot be achieved. Since corporate governance is expected to influence a firm's monitoring mechanism, the authors argue that the corporate governance mechanism will also affect the conservatism in management earnings forecasts. This study's results indicate that earnings forecasts tend to be more conservative for those firms with larger insider shareholdings, higher institutional shareholdings, or that have a CEO serving as the board chairman. They tend to be less conservative for the firms that are controlled by a family or are characterized by a pyramidal ownership structure.
Journal: Emerging Markets Finance and Trade
Pages: 105-121
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: board composition, conservatism, corporate governance, earnings forecasts, ownership structure
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B506134607066LX4
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agrawal, A., and G. N. Mandelker. 1990. "Large Shareholders and the Monitoring of Managers: The Case of Antitakeover Charter Amendments." <i>Journal of Financial and Quantitative Analysis</i> 25, no. 2: 143-161.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Ajinkya, B. B., and M. J. Gift. 1984. "Corporate Managers' Earnings Forecasts and Symmetrical Adjustments of Market Expectations." <i>Journal of Accounting Research</i> 22, no. 2 (Autumn): 425-444.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Boubakri, N.; O. Guedhami; and D. Mishra. 2010. "Family Control and the Implied Cost of Equity: Evidence Before and After the Asian Financial Crisis." <i>Journal of International Business Studies</i> 41, no. 3: 451-474.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Brickley, J. A.; J. L. Coles; and G. Jarrell. 1997. "Leadership Structure: Separating the CEO and Chairman of the Board." <i>Journal of Corporate Finance</i> 3, no. 3: 189-220.</BIBTEXT>	</REF>	<REF>	 <BIBL>5</BIBL> <BIBTEXT> Brickley, J. A.; R. C. Lease; and C. W. Smith. 1988. "Ownership Structure and Voting on Anti-takeover Amendments." <i>Journal of Financial Economics</i> 20, no. 1: 267-291.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chen, C. R.; W. Guo; and V. Mande. 2003. "Managerial Ownership and Firm Valuation: Evidence from Japanese Firms." <i>Pacific-Basin Finance Journal</i> 11, no. 3: 267-283.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chen, S. 2004. "Why Do Managers Fail to Meet Their Own Forecasts?" Working paper series, University of Texas at Austin, Red McCombs School of Business, August.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Claessens, S.; S. Djankov; J. P. Fan; and L. Lang. 2002. "Disentangling the Incentive and Entrenchment Effects of Large Shareholdings." <i>Journal of Finance</i> 57, no. 6: 2741-2771.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Coller, M., and T. L. Yohn. 1997. "Management Forecasts and Information Asymmetry: An Examination of Bid-Ask Spreads." <i>Journal of Accounting Research</i> 35, no. 2 (Autumn): 181-191.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Cornett, M. M.; A. J. Marcus; A. Saunders; and H. Tehranian. 2007. "The Impact of Institutional Ownership on Corporate Operating Performance." <i>Journal of Banking and Finance</i> 31, no. 6: 1771-1794.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Dayton, K. 1984. "Corporate Governance: The Other Side of the Coin." <i>Harvard Business Review</i> 62, no. 1: 34-37.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Diamond, D., and R. Verrecchia. 1991. "Disclosure, Liquidity, and the Cost of Capital." <i>Journal of Finance</i> 46, no. 4: 1325-1359.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Fama, E. 1980. "Agency Problems and the Theory of the Firm." <i>Journal of Political Economy</i> 88, no. 2: 288-307.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Grossman, S., and O. Hart. 1980. "Takeover Bids, the Free Rider Problem, and the Theory of the Corporation." <i>Bell Journal of Economics</i> 11, no. 1 (Spring): 42-64.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Hanson, R. C., and M. H. Song. 2003. "Long-Term Performance of Divesting Firms and the Effect of Managerial Ownership." <i>Journal of Economics and Finance</i> 27, no. 3 (Fall): 321-336.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Hassell, J. M., and R. Jennings. 1986. "Relative Forecast Accuracy and the Timing of Earnings Forecast Announcements." <i>Accounting Review</i> 61, no. 1: 58-75.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>    <BIBTEXT> Hribar, P., and H. Yang. 2011. "CEO Overconfidence, Management Earnings Forecasts, and Earnings Management." Working paper, University of Iowa, Henry B. Tippie College of Business, April 13.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Jensen, M. C. 1993. "The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems." <i>Journal of Finance</i> 48, no. 3: 831-880.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Jensen, M. C., and W. H. Meckling. 1976. "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure." <i>Journal of Financial Economics</i> 3, no. 4: 305-360.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Karamanou, I., and N. Vafeas. 2005. "The Association Between Corporate Boards, Audit Committees, and Management Earnings Forecasts: An Empirical Analysis." <i>Journal of Accounting Research</i> 43, no. 3: 453-486.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Kasznik, R. 1999. "On the Association Between Voluntary Disclosure and Earnings Management." <i>Journal of Accounting Research</i> 37, no. 1 (Spring): 57-81.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Lang, M. H., and R. J. Lundholm. 2000. "Voluntary Disclosure and Equity Offerings: Reducing Information Asymmetry or Hyping the Stock?" <i>Contemporary Accounting Research</i> 17, no. 4 (Winter): 623-662.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> La Porta, R.; F. Lopez de Silanes; A. Shleifer; and R. Vishny. 1999. "The Quality of Government." <i>Journal of Law, Economics and Organization</i> 15, no. 1: 222-279.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Lausten, M. 2002. "CEO Turnover, Firm Performance and Corporate Governance: Empirical Evidence on Danish Firms." <i>International Journal of Industrial Organization</i> 20, no. 3: 391-405.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Leuz, C., and R. Verrecchia. 2000. "The Economic Consequences of Increased Disclosure." <i>Journal of Accounting Research</i> 38, no. 3 (Supplement): 91-124.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Liang C. J.; Y. L. Lin; and T. T. Huang. 2011. "Does Endogenously Determined Ownership Matter on Performance? Dynamic Evidence from the Emerging Taiwan Market." <i>Emerging Markets Finance & Trade</i> 47, no. 6 (November-December): 120-133.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>   <BIBTEXT> Liu, J., and D. Pang. 2009. "Financial Factors and Company Investment Decisions in Transitional China." <i>Managerial and Decision Economics</i> 30, no. 2: 91-108.</BIBTEXT>   </REF>    <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Morck, R., and B. Yeung. 2003. "Agency Problems in Large Family Business Groups." <i>Entrepreneurship: Theory and Practice</i> 27, no. 4: 367-382.</BIBTEXT>	  </REF>      <REF>	<BIBL>29</BIBL>	<BIBTEXT> Mueller E., and A. Spitz-Oener. 2006. "Managerial Ownership and Company Performance in German Small and Medium-Sized Private Enterprises." <i>German Economic Review</i> 7, no. 2: 233-247.</BIBTEXT>	 </REF>     <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Pi, L., and S. G. Timme. 1993. "Corporate Control and Bank Efficiency." <i>Journal of Banking and Finance</i> 17, no. 2: 515-530.</BIBTEXT>	  </REF>      <REF>	<BIBL>31</BIBL>	<BIBTEXT> Setia-Atmaja, L.; G. A. Tanewski; and M. Skully. 2009. "The Role of Dividends, Debt and Board Structure in the Governance of Family Controlled Firms." <i>Journal of Business Finance and Accounting</i> 36, no. 7: 863-898.</BIBTEXT>	 </REF>      <REF>	<BIBL>32</BIBL>   <BIBTEXT> Shen, C. H., and K. L. Lin. 2010. "The Impact of Corporate Governance on the Relationship Between Fundamental Information Analysis and Stock Returns." <i>Emerging Markets Finance & Trade</i> 46, no. 5 (September-October): 90-105.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>    <BIBTEXT> Shleifer, A., and R. Vishny. 1986. "Large Shareholders and Corporate Control." <i>Journal of Political Economy</i> 95, no. 3: 461-488.</BIBTEXT>	</REF>	<REF>	 <BIBL>34</BIBL> <BIBTEXT> Sias, R. W.; L. T. Starks; and S. Titman. 2006. "Changes in Institutional Ownership and Stock Returns: Assessment and Methodology." <i>Journal of Business</i> 79, no. 6: 2869-2910.</BIBTEXT>     </REF>      <REF>	 <BIBL>35</BIBL>   <BIBTEXT> Smith, B. F.; B. Amoako-Adu; and M. Kalimipalli. 2009. "Concentrated Control and Corporate Value: A Comparative Analysis of Single and Dual Class Structures in Canada." <i>Applied Financial Economics</i> 19, no. 12: 955-974.</BIBTEXT>      </REF>	<REF>    <BIBL>36</BIBL>	<BIBTEXT> Verrecchia, R. 2001. "Essays on Disclosure." <i>Journal of Accounting and Economics</i> 32, nos. 1-3: 97-180.</BIBTEXT> </REF>     <REF>   <BIBL>37</BIBL>	<BIBTEXT> Williamson, O. E. 1983. "Organization Form, Residual Claimants and Corporate Control." <i>Journal of Law and Economics</i> 26, no. 2: 431-460.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:105-121




Template-Type: ReDIF-Article 1.0
Author-Name: Tzu-Yun Tseng
Author-X-Name-First: Tzu-Yun
Author-X-Name-Last: Tseng
Title: Will Both Direct Financial Development and Indirect Financial Development Mitigate Investment Sensitivity to Cash Flow? The Experience of Taiwan
Abstract:
 The Taiwanese government introduced a financial reform plan to encourage financial development. This paper examines this reform strategy to determine whether investment sensitivity to cash flow has actually been reduced. We find that financial development in Taiwan has resulted in improved access to external capital, which reduces firms' reliance on internally generated funds for investment. However, the reduction of investment sensitivity to cash flow is due to indirect financial development (development of financial intermediaries), but not direct financial development (stock market development). After several robustness tests, the main findings remain unchanged.
Journal: Emerging Markets Finance and Trade
Pages: 139-152
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: cash flow, direct finance, financial development, indirect finance, investment
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C73180410XWQ1J70
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agca, S., and A. Mozumdar. 2008. "The Impact of Capital Market Imperfections on Investment-Cash Flow Sensitivity." <i>Journal of Banking & Finance</i> 32, no. 2: 207-216.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bae, K. H.; K. Chan; and A. Ng. 2004. "Investibility and Return Volatility." <i>Journal of Financial Economics</i> 71, no. 2: 239-263.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bond, S.; J. A. Elston; J. Mairesse; and B. Mulkay. 2003. "Financial Factors and Investment in Belgium, France, Germany, and the United Kingdom: A Comparison Using Company Panel Data." <i>Review of Economics and Statistics</i> 85, no. 1: 153-165.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Chen, H., and S. Chen. 2012. "Investment-Cash Flow Sensitivity Cannot Be a Good Measure of Financial Constraints: Evidence from Time-Series." <i>Journal of Financial Economics</i> 103, no. 2: 393-410.</BIBTEXT>	</REF>	<REF>	 <BIBL>5</BIBL> <BIBTEXT> Cleary, S. 1999. "The Relationship Between Firm Investment and Financial Status." <i>Journal of Finance</i> 54, no. 2: 673-692.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Djalilov, K., and J. Piesse. 2011. "Financial Development and Growth in Transition Countries: A Study of Central Asia." <i>Emerging Markets Finance & Trade</i> 47, no. 6 (November-December): 4-23.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Fazzari, S. M.; R. G. Hubbard; and B. C. Peterson. 2000. "Investment-Cash Flow Sensitivities Are Useful: A Comment on Kaplan and Zingales." <i>Quarterly Journal of Economics</i> 115, no. 2: 695-705.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Graff, M. 2003. "Financial Development and Economic Growth in Corporatist and Liberal Market Economies." <i>Emerging Markets Finance & Trade</i> 39, no. 2 (March-April): 47-69.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Hoshi, T.; A. Kashyap; and D. Scharfstein. 1991. "Corporate Structure, Liquidity and Investment: Evidence from Japanese Industrial Groups." <i>Quarterly Journal of Economics</i> 106, no. 1: 33-60.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Hung, J. H, and T. Y. Tseng. 2009. "Impact of the QFII Scheme on Investment-Cash Flow Sensitivity." <i>Asia-Pacific Journal of Financial Studies</i> 38, no. 3: 311-355.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Islam, S. S., and A. Mozumdar. 2007. "Financial Market Development and the Importance of Internal Cash: Evidence from International Data." <i>Journal of Banking & Finance</i> 31, no. 3: 641-658.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Kaplan, S. N., and L. Zingales. 1997. "Do Investment-Cash Flows Sensitivities Provide UsefulMeasures of Financing Constraints?" <i>Quarterly Journal of Economics</i> 112, no. 1: 169-215.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Kaplan, S. N., and L. Zingales. 2000. "Investment-Cash Flow Sensitivities Are Not Valid Measures of Financing Constraints." <i>Quarterly Journal of Economics</i> 115, no. 2: 707-712.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> King, R. G., and R. Levine. 1993. "Finance and Growth: Schumpeter Might Be Right." <i>Quarterly Journal of Economics</i> 108, no. 3: 717-737.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Laeven, L. 2003. "Does Financial Liberalization Reduce Financing Constraint?" <i>Financial Management</i> 32, no. 1: 5-34.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Levine, R., and S. Zervos. 1998. "Stock Markets, Banks, and Economic Growth," <i>American Economic Review</i> 88, no. 3: 537-558.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>    <BIBTEXT> Li, K.; R. Morck; F. Yang; and B. Yeung. 2004. "Firm-Specific Variation and Openness in Emerging Markets." <i>Review of Economics and Statistics</i> 86, no. 3: 658-669.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Love, I. 2003. "Financial Development and Financial Constraints: International Evidence from the Structural Investment Model." <i>Review of Financial Studies</i> 16, no. 3: 765-791.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Love, I., and L. Zicchino. 2006. "Financial Development and Dynamic Investment Behavior: Evidence from Panel VAR." <i>Quarterly Review of Economics and Finance</i> 46, no. 2: 190-210.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Maddala, G. S. 2002. <i>Introduction to Econometrics</i>, 3d ed. New York: John Wiley & Sons.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Ndikumana, L. 1999. "Debt Service, Financing Constraints, and Fixed Investment: Evidence from Panel Data." <i>Journal of Post Keynesian Economics</i> 21, no. 3: 455-478.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Oshikoya, T. W. 1994. "Macroeconomic Determinants of Domestic Private Investment in Africa: An Empirical Analysis." <i>Economic Development and Cultural Change</i> 42, no. 3: 573-596.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Stiglitz, J. E. 2004. "Capital-Market Liberalization, Globalization, and the IMF." <i>Oxford Review of Economic Policy</i> 20, no. 1: 57-71.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Tang, S. Y. 1995. "Informal Credit Markets and Economic Development in Taiwan." <i>World Development</i> 23, no. 5: 845-855.</BIBTEXT>	</REF>	<REF>	 <BIBL>25</BIBL> <BIBTEXT> Tornell, A.; F. Westermann; and L. Martinez. 2004. "The Positive Link Between Financial Liberalization, Growth and Crises." Working Paper no. 10293, National Bureau for Economic Research, Cambridge, MA.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Wei, K. C. J., and Y. Zhang. 2008. "Ownership Structure, Cash Flow and Capital Investment: Evidence from East-Asian Economies Before the Financial Crisis." <i>Journal of Corporate Finance</i> 14, no. 2: 118-132.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:139-152




Template-Type: ReDIF-Article 1.0
Author-Name: Yao-Hung Yang
Author-X-Name-First: Yao-Hung
Author-X-Name-Last: Yang
Author-Name: Ya-Hui Lin
Author-X-Name-First: Ya-Hui
Author-X-Name-Last: Lin
Author-Name: Ghi-Feng Yen
Author-X-Name-First: Ghi-Feng
Author-X-Name-Last: Yen
Title: A Study on Efficiency Monitoring and Interest Assimilation in Corporate Governance: Listed Companies in Taiwan
Abstract:
 This paper examines whether efficiency monitoring has a positive influence on corporate performance by using the fixed effect model with panel data of listed firms in Taiwan from 2005 to 2010. The results show that having a shared interest group, formed by the controlling shareholders of a company and its board directors, leads to a failing monitoring function of the board of directors. Moreover, greater divergence between the number of board seats controlled and voting rights leads to a higher likelihood of corporate performance appearing to be an inverted curve. If this divergence exceeds a certain threshold, the interests of external shareholders may be harmed by large shareholders.
Journal: Emerging Markets Finance and Trade
Pages: 169-183
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: board-seat control-voting rights divergence, controlling shareholder, corporate performance, interest assimilation, shared interest group
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D1684M116V526761
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bai, C. E.; Q. Liu; J. Lu; F. M. Song; and J. Zhang. 2004. "Corporate Governance and Market Valuation in China." <i>Journal of Comparative Economics</i> 32, no. 4: 599-616.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bartholomeusz, S., and G. A. Tanewski. 2006. "The Relationship Between Family Firms and Corporate Governance." <i>Journal of Small Business Management</i> 44, no. 2: 245-267.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Boubaker, S., and F. Labegorre. 2008. "Ownership Structure, Corporate Governance and Analyst Following: A Study of French Listed Firms." <i>Journal of Banking & Finance</i> 32, no. 6: 961-976.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Byrd, J. W., and K. A. Hickman. 1992. "Do Outside Director Monitor Managers? Evidence from Tender Offer Bids." <i>Journal of Financial Economies</i> 32, no. 2: 195-221.</BIBTEXT>	</REF>	<REF>	 <BIBL>5</BIBL> <BIBTEXT> Chen, G.; M. Firth; D. N. Gao; and O. M. Rui. 2006. "Ownership Structure, Corporate Governance and Fraud: Evidence from China." <i>Journal of Corporate Finance</i> 12, no. 3: 424-448.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Cheng, S. 2008. "Board Size and the Variability of Corporate Performance." <i>Journal of Financial Economics</i> 87, no. 1: 157-176.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chong, B. S. 2010. "The Impact of Divergence in Voting and Cash-Flow Rights on the Use of Bank Debt." <i>Pacific-Basin Finance Journal</i> 18, no. 2: 158-174.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chung, K. H., and S. W. Pruitt. 1994. "A Simple Approximation of Tobin's q." <i>Financial Management</i> 23, no. 3: 70-74.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Claessens, S.; S. Djankov; and L. H. P. Lang. 2000. "The Separation of Ownership and Control in East Asian Corporations." <i>Journal of Financial Economics</i> 58, no. 1: 81-112.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Conyon, M., and S. I. Peck. 1998. "Board Control, Remuneration Committees, and Top Management Compensation." <i>Academy of Management Journal</i> 41, no. 2: 146-157.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Core, J. E.; W. R. Guay; and T. O. Rusticus. 2006. "Does Weak Governance Cause Weak Stock Returns?" An Examination of Firm Operating Performance and Investors' Expectations." <i>Journal of Finance</i> 61, no. 2: 655-687.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Core, J. E.; R. W. Holthausen; and D. F. Larcker. 1999. "Corporate Governance, Chief Executive Officer Compensation, and Firm Performance." <i>Journal of Financial Economics</i> 51, no. 3: 371-406.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Filatotchev, I.; Y. C. Lien; and J. Piesse. 2005. "Corporate Governance and Performance in Publicly Listed, Family-Controlled Firms: Evidence from Taiwan." <i>Asia Pacific Journal of Management</i> 22, no. 3: 257-283.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Finkelstein, S., and D. C. Hambrick. 1988. "Chief Executive Compensation: A Synthesis and Reconciliation." <i>Strategic Management Journal</i> 9, no. 6: 543-558.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Harvey, C. R.; K. V. Lins; and A. H. Roper. 2004. "The Effect of Capital Structure When Expected Agency Costs Are Extreme." <i>Journal of Financial Economics</i> 74, no. 3: 3-30.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Hausman, J. A. 1978. "Specification Tests in Econometrics." <i>Econometrica</i> 46, no. 6: 1251-1271.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>    <BIBTEXT> Hsiao, H. F.; C. Y. Hsu; and C. A. Li. 2011. "The Relationship Among Managerial Sentiment, Corporate Investment, and Firm Value: Evidence from Taiwan." <i>Emerging Markets Finance & Trade</i> 47, no. 2: 99-111.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Jensen, M. C., and W. H. Meckling. 1976. "Theory of the Firm: Managerial Behavior, Agency Cost and Ownership Structure." <i>Journal of Financial Economics</i> 3, no. 4: 305-360.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; and A. Shleifer. 1999. "Corporate Ownership Around the World." <i>Journal of Finance</i> 54, no. 2: 471-517.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Lemmon, M. L., and K. V. Lins. 2003. "Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis." <i>Journal of Finance</i> 58, no. 4: 1445-1468.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Lin, Y. F. 2005. 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"On the Pooling of Time Series and Cross Section Data." <i>Econometrica</i> 46, no. 1: 69-85.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Portney, L. G., and M. P. Watkins. 2000. <i>Foundations of Clinical Research: Applications to Practice</i>, 2d ed. Upper Saddle River, NJ: Prentice Hall.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>   <BIBTEXT> Pound, J. 1988. "Proxy Contests and the Efficiency of Shareholder Oversight." <i>Journal of Financial Economics</i> 20, nos. 1-2: 237-265.</BIBTEXT>   </REF>    <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Shen, C. H., and K. L. Lin. 2010. "The Impact of Corporate Governance on the Relationship Between Fundamental Information Analysis and Stock Returns." <i>Emerging Markets Finance & Trade</i> 46, no. 5 (September-October): 90-105.</BIBTEXT>	  </REF>      <REF>	<BIBL>29</BIBL>	<BIBTEXT> Shleifer, A., and R. W. Vishny. 1997. 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"Family Groupings, Core Business and Return Interaction: Taiwan and Hong Kong Stock Markets." <i>Management Review</i> 18, no. 2: 59-86.</BIBTEXT>	</REF>	
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:169-183




Template-Type: ReDIF-Article 1.0
Author-Name: Nai-Hui Su
Author-X-Name-First: Nai-Hui
Author-X-Name-Last: Su
Author-Name: Chan-Jane Lin
Author-X-Name-First: Chan-Jane
Author-X-Name-Last: Lin
Title: The Impact of Open-Market Share Repurchases on Long-Term Stock Returns: Evidence from the Taiwanese Market
Abstract:
 This study examines long-term stock returns following open-market share repurchases of listed firms in Taiwan. The empirical results based on event-time cumulative abnormal returns (CARs) and buy-and-hold abnormal returns (BHARs) show that announcing firms do not experience significant positive long-term return relative to the control firms. Moreover, using the calendar-time portfolio approach, we find the abnormal returns are significantly negative over twelve, twenty-four, and thirty-six months, suggesting stocks of firms that repurchase their shares are underperformed in the postannouncement period. The implication from our results is that in Taiwan, share repurchases are mainly used to stabilize stock price during a market downturn rather than to signal a firm's future prospects.
Journal: Emerging Markets Finance and Trade
Pages: 200-229
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: buy-and-hold abnormal returns, Fama-French three-factor model, long-term performance, share repurchases
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E24448R7V6765W5G
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Barber, B. M., and J. D. Lyon. 1997. "Detecting Long-Run Abnormal Stock Returns: The Empirical Power and Specification Test Statistic." <i>Journal of Financial Economics</i> 43, no. 3: 341-372.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bradford, B. M. 2008. "Open-Market Common Stock Repurchases and Subsequent Market Performance." <i>Journal of Business & Economic Studies</i> 14, no. 1: 45-61.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Brockman, P., and D. Y. Chung. 2001. "Managerial Timing and Corporate Liquidity: Evidence from Actual Share Repurchases." <i>Journal of Financial Economics</i> 61, no. 3: 417-488.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Brown, S. J., and J. B. Warner. 1985. "Using Daily Stock Returns: The Case of Event Studies." <i>Journal of Financial Economics</i> 14, no. 1: 3-31.</BIBTEXT>	</REF>	<REF>	 <BIBL>5</BIBL> <BIBTEXT> Carhart, M. M. 1997. "On the Persistence in Mutual Fund Performance." <i>Journal of Finance</i> 52, no. 1: 57-82.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chan, K.; D. Ikenberry; and L. Lee. 2004. "Economic Sources of Gain in Stock Repurchases." <i>Journal of Financial and Quantitative Analysis</i> 39, no. 3: 461-479.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chan, K.; D. Ikenberry; and L. Lee. 2007. "Do Managers Time the Market? Evidence from Open-Market Share Repurchases." <i>Journal of Banking & Finance</i> 31, no. 9: 2673-2694.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chan, K.; D. L. Ikenberry; I. Lee; and Y. Wang. 2010. "Share Repurchases as a Potential Tool to Mislead Investors." <i>Journal of Corporate Finance</i> 16, no. 2: 137-158.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chen, C. D.; A. Y. Huang; and C. C. Chen. 2011. "The Effects of Abolishing a Foreign Institutional Investment Quota in Taiwan." <i>Emerging Markets Finance & Trade</i> 47, no. 2 (March-April): 74-98.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Chen, C. Y., and H. L. Wu. 2002. "The Information Contents of Stock Repurchase Announcements in Taiwan." <i>Sun Yat-Sen Management Review</i> 10, no. 1: 127-154.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Chen, M.; C. L. Chen; and W. H. Cheng. 2004. "The Announcement Effects of Restricted Open Market Share Repurchases: Experience from Taiwan." <i>Review of Pacific Basin Financial Markets and Policies</i> 7, no. 3: 335-354.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Cheng, K. H. 2002. "The Information Content of Stock Repurchases: Investor's Perspective." Ph.D. Dissertation, National Chengchi University, Taipei, Taiwan.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Comment, R., and G. A. Jarrell. 1991. "The Relative Signalling Power of Dutch-Auction and Fixed-Price Self-Tender Offers and Open-Market Share Repurchases." <i>Journal of Finance</i> 46, no. 4: 1243-1271.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Dann, L. 1981. "Common Stock Repurchases: An Analysis of Returns to Bondholders and Stock-holders." <i>Journal of Financial Economics</i> 9, no. 2: 113-138.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Dittmar, A. K. 2000. "Why Do Firms Repurchase Stock?" <i>Journal of Business</i> 73, no. 3: 331-355.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Fama, E. F. 1998. "Market Efficiency, Long-Term Returns, and Behavioral Finance." <i>Journal of Financial Economics</i> 49, no. 3: 283-306.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>    <BIBTEXT> Fama, E. F., and K. R. French. 1993. "Common Risk Factors in the Returns on Stocks and Bonds." <i>Journal of Financial Economics</i> 33, no. 1: 3-56.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Fried, J. 2005. "Informed Trading and False Signaling with Open Market Repurchases." <i>California Law Review</i> 93, no. 5: 1323-1386.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Ginglinger, E., and J. Hamon. 2007. "Actual Share Repurchases, Timing and Liquidity." <i>Journal of Banking & Finance</i> 31, no. 3: 915-938.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Grullon, G., and D. L. Ikenberry. 2000. "What Do We Know About Stock Repurchases?" <i>Journal of Applied Corporate Finance</i> 13, no. 1: 31-51.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Grullon, G., and R. Michaely. 2002. "Dividends, Share Repurchases, and the Substitution Hypothesis." <i>Journal of Finance</i> 57, no. 4: 1649-1684.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Grullon, G., and R. Michaely. 2004. "The Information Content of Share Repurchase Programs." <i>Journal of Finance</i> 59, no. 2: 651-680.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Hung, J. H., and Y. P. Chen. 2010. "Equity Undervaluation and Signaling Power of Share Repurchases with Legal Restrictions." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 101-115.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Ikenberry, D. L., and T. Vermaelen. 1996. "The Option to Repurchase Stock." <i>Financial Management</i> 25, no. 4: 9-24.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Ikenberry, D.; J. Lakonishok; and T. Vermaelen. 1995. "Market Underreaction to Open Market Share Repurchases." <i>Journal of Financial Economics</i> 39, no. 2-3: 181-208.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Ikenberry, D.; J. Lakonishok; and T. Vermaelen. 2000. "Stock Repurchases in Canada: Performance and Strategic Trading." <i>Journal of Finance</i> 55, no. 5: 2373-2397.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>   <BIBTEXT> Jagannathan, M., and C. Stephens. 2003. "Motives for Multiple Open-Market Repurchase Programs." <i>Financial Management</i> 32, no. 2: 71-91.</BIBTEXT>   </REF>    <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Jensen, M. C. 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers." <i>American Economics Review</i> 76, no. 2: 323-329.</BIBTEXT>	  </REF>      <REF>	<BIBL>29</BIBL>	<BIBTEXT> Kothari, S. P., and J. B. Warner. 1997. "Measuring Long-Horizon Security Price Performance." <i>Journal of Financial Economics</i> 43, no. 3: 301-339.</BIBTEXT>	 </REF>     <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Lai, H. W.; C. W. Chen; and C. S. Huang. 2010. "Technical Analysis, Investment Psychology, and Liquidity Provision: Evidence from the Taiwan Stock Market." <i>Emerging Markets Finance & Trade</i> 46, no. 5 (September-October): 18-38.</BIBTEXT>	  </REF>      <REF>	<BIBL>31</BIBL>	<BIBTEXT> Lee, Y. G.; S. C. Jung; and J. H. Thornton Jr. 2005. "Long-Term Stock Performance After Open-Market Repurchases in Korea." <i>Global Finance Journal</i> 16, no. 2: 191-209.</BIBTEXT>	 </REF>      <REF>	<BIBL>32</BIBL>   <BIBTEXT> Lie, E. 2000. "Excess Funds and Agency Problems: An Empirical Study of Incremental Cash Disbursements." <i>Review of Financial Studies</i> 13, no. 1: 219-248.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>    <BIBTEXT>Lin, M. C. 2005. "Asymmetric Reaction in the Taiwan Stock Market: Overreaction to Bad News and Underreaction to Good News." <i>Sun Yat-Sen Management Review</i> 13, Special Issue: 7-39.</BIBTEXT>	</REF>	<REF>	    <BIBL>34</BIBL>	  <BIBTEXT> Lo, K. H.; K. Wang; and C. T. Yeh. 2008. "Stock Repurchase and Agency Problems: New Evidence in Taiwan's Stock Market." <i>Emerging Markets Finance & Trade</i> 44, no. 1 (January-February): 84-94.</BIBTEXT>	  </REF>      <REF>	<BIBL>35</BIBL>	<BIBTEXT> Lyon, J. D.; B. M. Barber; and C. L. Tsai. 1999. "Improved Methods for Tests of Long-Run Abnormal Stock Returns." <i>Journal of Finance</i> 54, no. 1: 165-201.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>   <BIBTEXT> McNally, W. J., and B. F. Smith. 2007. "Long-Run Returns Following Open Market Share Repurchases." <i>Journal of Banking & Finance</i> 31, no. 3: 703-717.</BIBTEXT>	 </REF>      <REF>	<BIBL>37</BIBL>    <BIBTEXT> Mitchell, J. D., and G. V. Dharmawan. 2007. "Incentives for On-Market Buy-Backs: Evidence from a Transparent Buy-Back Regime." <i>Journal of Corporate Finance</i> 13, no. 1: 146-169.</BIBTEXT>	</REF>	<REF>	 <BIBL>38</BIBL> <BIBTEXT> Mitchell, M. L., and E. Stafford. 2000. "Managerial Decisions and Long-Term Stock Price Performance." <i>Journal of Business</i> 73, no. 3: 287-329.</BIBTEXT>     </REF>      <REF>	 <BIBL>39</BIBL>   <BIBTEXT> Nohel, T., and V. Tarhan. 1998. "Share Repurchases and Firm Performance: New Evidence on the Agency Costs of Free Cash Flow." <i>Journal of Financial Economics</i> 49, no. 2: 187-222.</BIBTEXT>      </REF>	<REF>    <BIBL>40</BIBL>	<BIBTEXT> Oded, J. 2005. "Why Do Firms Announce Open-Market Repurchase Programs?" <i>Review of Financial Studies</i> 18, no. 1: 271-300.</BIBTEXT> </REF>     <REF>   <BIBL>41</BIBL>	<BIBTEXT> Oswald, D., and S. Young. 2004. "What Role Taxes and Regulation? A Second Look at Open Market Share Buyback Activity in the UK." <i>Journal of Business Finance & Accounting</i> 31, nos. 1-2: 257-292.</BIBTEXT>	</REF>	 <REF>	   <BIBL>42</BIBL>	<BIBTEXT> Rau, P. R., and T. Vermaelen. 2002. "Regulation, Taxes, and Share Repurchases in the United Kingdom." <i>Journal of Business</i> 75, no. 2: 245-282.</BIBTEXT>      </REF>	  <REF>     <BIBL>43</BIBL>	<BIBTEXT> Stephens, C. P., and M. S. Weisbach. 1998. "Actual Share Reacquisitions in Open-Market Repurchase Programs." <i>Journal of Finance</i> 53, no. 1: 313-333.</BIBTEXT>   </REF>     <REF>	 <BIBL>44</BIBL>  <BIBTEXT> "Time for the Government to Exit Taiwan's Stock Market." 2011. <i>Economic Daily News</i> September 18.</BIBTEXT>	</REF>	    <REF>	<BIBL>45</BIBL>       <BIBTEXT> Tsai, H. C. 2001. "An Empirical Study on Stock Repurchases by Taiwan Publicly Listed Companies." Master's thesis, National Taipei University, New Taipei City, Taiwan.</BIBTEXT>	 </REF>    <REF>	    <BIBL>46</BIBL>	  <BIBTEXT> Tsai, L. C., and F. Y. Guo. 2004. "An Empirical Study on Stock Repurchases in Taiwan: Information Effects and Signaling Motivations." <i>International Journal of Accounting Studies</i> 38 (January): 81-112.</BIBTEXT>	  </REF>      <REF>	<BIBL>47</BIBL>	<BIBTEXT> Vermaelen, T. 1981. "Common Stock Repurchases and Market Signaling: An Empirical Study." <i>Journal of Financial Economics</i> 9, no. 2: 139-183.</BIBTEXT>	 </REF>      <REF>	<BIBL>48</BIBL>   <BIBTEXT> Zhang, H. 2002. "Share Repurchases Under the Commercial Law 212-2 in Japan: Market Reaction and Actual Implementation." <i>Pacific-Basin Finance Journal</i> 10, no. 3: 287-305.</BIBTEXT>	 </REF>      <REF>	<BIBL>49</BIBL>    <BIBTEXT> Zhang, H. 2005. "Share Price Performance Following Actual Share Repurchases." <i>Journal of Banking & Finance</i> 29, no. 7: 1887-1901.</BIBTEXT>     </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:200-229




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4-5
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G44J03148X18P432
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:4-5




Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Hsun Lu
Author-X-Name-First: Tsung-Hsun
Author-X-Name-Last: Lu
Author-Name: Yung-Ming Shiu
Author-X-Name-First: Yung-Ming
Author-X-Name-Last: Shiu
Title: Tests for Two-Day Candlestick Patterns in the Emerging Equity Market of Taiwan
Abstract:
 Using the Taiwan 50 Index component stocks for the period from January 2, 2002, to December 31, 2009, this study examines the predictive power of candlestick trading strategies. A four-digit numbers approach is employed to categorize two-day candlestick patterns. We find that the Taiwanese stock market is not efficient. We also document that two candlestick bullish patterns consistently outperform others. The main contributions of this study include addressing a range of two-day candlestick patterns, finding existing patterns not profitable, and showing two new patterns as profitable.
Journal: Emerging Markets Finance and Trade
Pages: 41-57
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: candlesticks, technical analysis, two-day patterns
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H2N1055136881405
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"Profitable Technical Trading Rules as a Source of Price Instability." <i>Quantitative Finance</i> 3, no. 3: 220-229.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Goo, Y.; D. Chen; and Y. Chang. 2007. "The Application of Japanese Candlestick Trading Strategies in Taiwan." <i>Investment Management and Financial Innovations</i> 4, no. 4: 49-71.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Grundy, B.D., and M. McNichols. 1989. "Trade and the Revelation of Information Through Prices and Direct Disclosure." <i>Review of Financial Studies</i> 2, no. 4: 495-526.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Hellwig, M. 1982. "Rational Expectations Equilibrium with Conditioning on Past Prices: A Mean-Variance Example." <i>Journal of Economic Theory</i> 26, no. 2: 279-312.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Horton, M.J. 2009. "Stars, Crows, and Doji: The Use of Candlesticks in Stock Selection." <i>Quarterly Review of Economics and Finance</i> 49, no. 2: 283-294.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Jegadeesh, N. 1990. "Evidence of Predictable Behavior of Security Returns." <i>Journal of Finance</i> 45, no. 3: 881-898.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Johnson, N.J. 1978. "Modified <i>t</i>-Tests and Confidence Intervals for Asymmetrical Populations." <i>Journal of the American Statistical Association</i> 73, no. 363: 536-544.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Kahneman, D., and A. Tversky. 1979. "Prospect Theory: An Analysis of Decision Under Risk." <i>Econometrica</i> 47, no. 2: 263-291.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Krausz, J.; S. Lee; and K. Nam. 2009. 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"The Profitability of Momentum Investing." <i>Journal of Business Finance and Accounting</i> 26, nos. 9-10: 1043-1091.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Lukac, L.P., and B.W. Brorsen. 1990. "A Comprehensive Test of the Futures Market Disequilibrium." <i>Financial Review</i> 25, no. 4: 593-622.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Malkiel, B. 1996. <i>A Random Walk Down Wall Street: Including a Life-Cycle Guide to Personal Investing</i>. New York: Norton.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Marshall, B.R.; M.R. Young; and R. Cahan. 2008. "Are Candlestick Technical Trading Strategies Profitable in the Japanese Equity Market?" <i>Review of Quantitative Finance and Accounting</i> 31, no. 2: 191-207.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Marshall, B.R.; M.R. Young; and L.C. Rose. 2006. 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"Why Technical Trading May Be Successful? A Lesson from the Agent-Based Modeling." <i>Physica A: Statistical Mechanics and Its Applications</i> 303, nos. 1-2: 185-188.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>    <BIBTEXT> Shiu, Y., and T. Lu. 2011. "Pinpoint and Synergistic Trading Strategies of Candlesticks." <i>International Journal of Economics and Finance</i> 3, no. 1: 234-244.</BIBTEXT>	</REF>	<REF>	   <BIBL>37</BIBL> <BIBTEXT> Sullivan, R.; A. Timmermann; and H. White. 1999. "Data Snooping, Technical Trading Rule Performance, and the Bootstrap." <i>Journal of Finance</i> 54, no. 5: 1647-1691.</BIBTEXT>     </REF>      <REF>	 <BIBL>38</BIBL>   <BIBTEXT> Wang, C., and L. Xie. 2010. "Information Diffusion and Overreaction: Evidence from the Chinese Stock Market." <i>Emerging Markets Finance and Trade</i> 46, no. 2: 80-100.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:41-57




Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Chieh Tsai
Author-X-Name-First: Ching-Chieh
Author-X-Name-Last: Tsai
Author-Name: Chi-Cheng Wu
Author-X-Name-First: Chi-Cheng
Author-X-Name-Last: Wu
Author-Name: Ruey-Dang Chang
Author-X-Name-First: Ruey-Dang
Author-X-Name-Last: Chang
Title: Effects of Overvalued Equity and Managerial Incentives on Corporate Policy
Abstract:
 This paper examines the relationship between overvalued equity, managerial incentives, and corporate policy for firms listed on the Taiwan Stock Exchange. The empirical evidence reveals that firms with higher overvalued equity opt for higher leverage and hold less cash, and the sensitivity of managerial total wealth to the stock price and stock option holdings incentives induce inadequately diversified risk-averse managers to adopt lower leverage and hold more cash. By contrast, higher overvalued equity, the sensitivity of managerial total wealth to the stock price, and stock option holdings incentives induce managers to engage in earnings manipulation.
Journal: Emerging Markets Finance and Trade
Pages: 74-87
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: corporate governance, corporate policy, earnings management, managerial incentives, overvalued equity
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J13067U742Q06645
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R.K., and A.A. Samwick. 2006. "Empire-Builders and Shirkers: Investment, Firm Performance, and Managerial Incentives." <i>Journal of Corporate Finance</i> 12, no. 3: 489-515.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Ali, A.; L.S. Hwang; and M.A. Trombley. 2003. "Residual-Income Based Valuation Predicts Future Stock Returns: Evidence on Mispricing vs. Risk Explanation." <i>Accounting Review</i> 78, no. 2: 377-396.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Beneish, M., and D. Nichols. 2008. "Identifying Overvalued Equity." Johnson School Research Paper Series no. 09-09 (Indiana University and Cornell University).</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Berger, P.; E. Ofek; and D. Yermack. 1999. "Managerial Entrenchment and Capital Structure Decisions." <i>Journal of Finance</i> 52, no. 4: 1411-1438.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bergstresser, D., and T. Philippon. 2006. "CEO Incentive and Earnings Management." <i>Journal of Financial Economics</i> 80, no. 3: 511-529.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chava, S., and A. Purnanandam. 2010. "CEOs Versus CFOs: Incentives and Corporate Policies." <i>Journal of Financial Economics</i> 97, no. 2: 263-278.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chen, Y. 2008. "Corporate Governance and Cash Holdings: Listed New Economy Versus Old Economy Firms." <i>Corporate Governance</i> 16, no. 5: 430-442.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chen, Y.R., and W.T. Chang. 2009. "Alignment or Entrenchment? Corporate Governance and Cash Holdings in Growing Firms." <i>Journal of Business Research</i> 62, no. 11: 1200-1206.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Cheng, Q., and T.D. Warfield. 2005. "Equity Incentive and Earnings Management." <i>Accounting Review</i> 80, no. 2: 441-476.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Chi, J., and M. Gupta. 2009. "Overvaluation and Earnings Management." <i>Journal of Banking and Finance</i> 33, no. 9: 1652-1663.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Chi, L. 2009. "Do Transparency and Disclosure Predict firm Performance? Evidence from the Taiwan Market." <i>Expert Systems with Applications</i> 36, no. 8: 11198-11203.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Coles, J.L.; N.D. Daniel; and L. Naveen. 2006. "Managerial Incentives and Risk-Taking." <i>Journal of Financial Economics</i> 79, no. 2: 431-468.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Collins, D., and P. Hribar. 2000. 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"Earnings Management during Import Relief Investigation." <i>Journal of Accounting Research</i> 29, no. 2: 192-228.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Jensen, M.C. 2005. "Agency Costs of Overvalued Equity." <i>Financial Management</i> 34, no. 1: 5-19.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Jiang, J.X. 2009. "Equity Incentives, Earnings Management and Insider Trading: An Empirical Investigation of the Agency Costs of Overvalued Equity." <i>NTU Management Review</i> 19, no. S2: 1-34.</BIBTEXT>	 </REF>    <REF>	  <BIBL>32</BIBL>	<BIBTEXT> Kang, S.; P. Kumar; and H. Lee. 2006. "Agency and Corporate Investment: The Role of Executive Compensation and Corporate Governance." <i>Journal of Business</i> 79, no. 3: 1127-1147.</BIBTEXT>	 </REF>    <REF>	    <BIBL>33</BIBL>	  <BIBTEXT> Kim, J., and C.H. Yi. 2006. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:74-87




Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Ying Chan
Author-X-Name-First: Chia-Ying
Author-X-Name-Last: Chan
Author-Name: Vivian W. Tai
Author-X-Name-First: Vivian W.
Author-X-Name-Last: Tai
Author-Name: Kuo-An Li
Author-X-Name-First: Kuo-An
Author-X-Name-Last: Li
Author-Name: Ranko Jelic
Author-X-Name-First: Ranko
Author-X-Name-Last: Jelic
Title: Do Market Participants Favor Employee Stock Option Schemes? Evidence from Taiwan
Abstract:
 Since their inception in 2000, employee stock options (ESOs) in Taiwan have grown in popularity and captivated market stakeholders. Previous studies have explored how ESOs serve as an incentive to stimulate both employees and management, and hence lead to better performance. If this is true, then positive market reactions toward ESO approval/issue dates and long-run market/operating performance are expected. While our empirical results confirm the short- and long-run stimulation effects and effectiveness of ESOs, we observe that a manipulation effect may also exist in terms of how the ESO strike price is determined prior to their issue date.
Journal: Emerging Markets Finance and Trade
Pages: 110-132
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: abnormal return, abnormal trading volume, employee stock options
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K375274412U57432
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aboody, D., and R. Kasznik. 1998. "CEO Stock Option Awards and Corporate Voluntary Disclosures." Stanford University, Graduate School of Business, Research Paper Series, November.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Aboody, D.; N.B. Johnson; and R. Kasznik. 2010. "Employee Stock Options and Future Firm Performance: Evidence from Option Repricings." <i>Journal of Accounting and Economics</i> 50, no. 1: 74-92.</BIBTEXT>	 </REF>      <REF>   <BIBL>3</BIBL>   <BIBTEXT> Ball, R., and P. Brown. 1968. "An Empirical Evaluation of Accounting Income Numbers." <i>Journal of Accounting Research</i> 6, no. 2: 159-178.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Becker, G. 1968. "Crime and Punishment: An Economic Approach." <i>Journal of Political Economy</i> 76, no. 2: 169-217.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Brickley, J.A.; S. Bhagat; and R.C. Lease. 1985. "The Impact of Long-range Managerial Compensation Plans on Shareholder Wealth." <i>Journal of Accounting and Economics</i> 7, nos. 1-3: 115-129.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chan, C.Y.; L.C. Lee; and M.C. Wang. 2010. "Employee Stock Options Pricing and the Implication of Restricted Exercise Price: Evidence from Taiwan." <i>Review of Quantitative Finance and Accounting</i> 34, no. 2: 247-271.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chan, Y.C., and K.C.J. Wei. 2001. "Price and Volume Effects Associated with Derivative Warrant Issuance on the Stock Exchange of Hong Kong." <i>Journal of Banking and Finance</i> 25, no. 8: 1401-1426.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Core, J., and W. Guay. 1999. "The Use of Equity Grants to Manage Optimal Equity Incentive Levels." <i>Journal of Accounting and Economics</i> 28, no. 2: 151-184.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> DeFusco, R.A.; R.R., Johnson; and T.S. Zorn. 1990. "The Effect of Executive Stock Option Plans on Stockholders and Bondholders." <i>Journal of Finance</i> 45, no. 2: 617-627.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Dhiman, R.K. 2009. "The Elusive Employee Stock Option Plan-Productivity Link: Evidence from India." <i>International Journal of Productivity and Performance Management</i> 58, no. 6: 542-563.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Fama, E., and M. Jensen. 1983. "Separation of Ownership and Control." <i>Journal of Law and Economics</i> 26, no. 2: 301-325.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Feng, L., and W. Xu. 2007. "Has the Reform of Nontradable Shares Raised Prices? An Event-Study Analysis." <i>Emerging Markets Finance and Trade</i> 43, no. 2: 33-62.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Fisher, P.E., and R.E. Verrecchia. 2000. "Reporting Bias." <i>Accounting Review</i> 75, no. 2: 229-245.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Gaver, J.J., and K.M. Gaver. 1995. "Compensation Policy and the Investment Opportunity Set." <i>Financial Management</i> 24, no. 1: 19-32.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Ghosh, A. 2006. "Determination of Executive Compensation in an Emerging Economy Evidence from India." <i>Emerging Markets Finance and Trade</i> 42, no. 3: 66-90.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Guay, W.R. 1999. "An Empirical Analysis of Convexity in the Relation Between CEOs' Wealth and Stock Price: An Analysis of the Magnitude and Determinants." <i>Journal of Financial Economics</i> 53, no. 1: 43-71.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Ikäheimo, S.; A. Kjellman; J. Holmberg; and S. Jussila. 2004. "Employee Stock Option Plans and Stock Market Reaction: Evidence from Finland." <i>European Journal of Finance</i> 10, no. 2: 105-122.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Jenkins, E., and R.E. Seiler. 1990. "The Impact of Executive and Growth in Stockholder upon the Level of Discretionary Expenditures and Growth in Stockholder Wealth." <i>Journal of Business Finance and Accounting</i> 17, no. 4: 585-592.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Jensen, M.C., and W.H. Meckling. 1976. "Theory of the Firm: Management Behavior, Agency Costs and Ownership Structure." <i>Journal of Financial Economics</i> 3, no. 4: 305-360.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Jensen, M.C., and K.J. Murphy. 1990. "Performance Pay and Top-management Incentives." <i>Journal of Political Economy</i> 98, no. 2: 225-264.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> Jensen, M.C.; K.J. Murphy; and E.G. Wruck. 2004. "Remuneration: Where We've Been, How We Got to Here, What Are the Problems, and How to Fix Them." Harvard NOM Working Paper.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Kahle, K.M. 2002. "When a Buyback Isn't a Buyback: Open Market Repurchases and Employee Options." <i>Journal of Financial Economics</i> 63, no. 2: 235-261.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Kato, H.K.; M. Lemmon; M. Luo; and J. Schallheim. 2005. "An Empirical Examination of the Costs and Benefits of Executive Stock Options: Evidence from Japan." <i>Journal of Financial Economics</i> 78, no. 2: 435-461.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Lawrence, J.A. 2001. "Financing, Dividend and Compensation Policies Subsequent to a Shift in the Investment Opportunities." <i>Managerial Finance</i> 32, no. 3: 31-47.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Leskinen, M. 1998. "Valuing Finnish Employee Stock Options." Helsinki Center for Business Research (LTT), Helsinki School of Economics and Business Administration, Working paper.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> MacKinlay, A.C. 1997. "Event Studies in Economics and Finance." <i>Journal of Economic Literature</i> 35, no. 1: 13-19.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Michaely, R.; R. Thaler; and K. Womack. 1995. "Price Reactions to Dividend Initiations and Omissions: Overreactions or Drift?" <i>Journal of Finance</i> 50, no. 2: 573-608.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Shavell, S. 1979. "Risk Sharing and Incentives in the Principal and Agent Relationship." <i>Bell Journal of Economics</i> 10, no. 1: 55-73.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Tehranian, H., and J.F. Waegelein. 1985. "Market Reaction to Short-Term Executive Compensation Plan Adoption." <i>Journal of Accounting and Economics</i> 7, nos. 1-3: 131-144.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Yermack, D. 1995. "Do Corporations Award CEO Stock Options Effectively?" <i>Journal of Financial Economics</i> 39, nos. 2-3: 237-269.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Yermack, D. 1997. "Good Timing: CEO Stock Option Awards and Company News Announcements." <i>Journal of Finance</i> 52, no. 2: 449-476.</BIBTEXT>	 </REF>    <REF>	  <BIBL>32</BIBL>	<BIBTEXT> Yilmaz, A.K., and G. Gulay. 2006. "Dividend Policies and Price-Volume Reactions to Cash Dividends on the Stock Market Evidence from the Istanbul Stock Exchange." <i>Emerging Markets Finance and Trade</i> 42, no. 4: 19-49.</BIBTEXT>      </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:110-132




Template-Type: ReDIF-Article 1.0
Author-Name: Mu-Fen Chao
Author-X-Name-First: Mu-Fen
Author-X-Name-Last: Chao
Author-Name: Shing-Yau Chen
Author-X-Name-First: Shing-Yau
Author-X-Name-Last: Chen
Title: A Study of Factors Influencing Foreign Share Holdings in the Taiwan Semiconductor Industry
Abstract:
 As the semiconductor industry grows globally, the ability to attract investments and capital from foreign institutions continues to become more competitive. This paper examines factors—including stock indexes, macroeconomic variables, and company financial statistics—that would influence the foreign investment ratio in the Taiwan semiconductor industry, based on panel data from 2004 to 2009. The major findings of this study are that three types of variables significantly influence a foreign institution's preference for firms in Taiwan. These findings could have important implications in decision making either for local investors who want to follow a foreign institution's investment strategy or for a firm's financial managers who want to draw a foreign institution's attention.
Journal: Emerging Markets Finance and Trade
Pages: 153-170
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: foreign share holdings, panel data, semiconductor industry
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L20824P7878721X8
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abugri, B.A. 2006. "Empirical Relationship Between Macroeconomic Volatility and Stock Returns: Evidence from Latin American Markets." <i>International Review of Financial Analysis</i> 17, no. 2: 396-410.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Agmon, T. 1972. "The Relationships Among Equity Markets: A Study of Share Price Co-movements in the United States, United Kingdom, Germany and Japan." <i>Journal of Finance</i> 27, no. 4: 839-855.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Badrindath, S.G.; G.D. Gay; and J.R. Kale. 1989. "Patterns of Institutional Investment, Prudence, and the Managerial ‘Safety Net’ Hypothesis." <i>Journal of Risk and Insurance</i> 56, no. 4: 605-629.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bang, N.J., and S.K.J. Beom. 2004. "The Linkage Between the US and Korean Stock Markets: The Case of NASDAQ, KOSDAQ, and the Semiconductor Stocks." <i>Research in International Business and Finance</i> 18, no. 3: 319-340.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Beltratti, A., and C. Morana. 2006. "Breaks and Persistency: Macroeconomic Causes of Stock Market Volatility." <i>Journal of Econometrics</i> 131, nos. 1-2: 151-177.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bilson, C.M.; T.J. Brailsford; and V.J. Hooper. 2001. "Selecting Macroeconomic Variables as Explanatory Factors of Emerging Stock Market Returns." <i>Pacific Basin Finance Journal</i> 9, no. 4: 401-426.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bonomo, V.; S.P. Ferris; and G. Noronha. 1993. "The International Impact of Federal Reserve Bank Discount Rate Changes: Evidence from American Depository Receipts." <i>Economics Letters</i> 43, no. 2: 211-218.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Booth, G.G.; M. Chowdhury; and T. Martikainen. 1996. "Common Volatility in Major Stock Index Futures Markets." <i>European Journal of Operational Research</i> 95, no. 3: 623-630.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Bredin, D.; C. Gavin; and G. O'Reilly. 2005. "U.S. Monetary Policy Announcements and Irish Stock Market Volatility." <i>Applied Financial Economics</i> 15, no. 17: 1243-1250.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Brennan, M.J., and H.H. Cao. 1997. "International Portfolio Investment Flows." <i>Journal of Finance</i> 52, no. 5: 1851-1880.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Brown, C., and G. Linden. 2005. "Semiconductor Capabilities in the U.S. and Industrializing Asia." Working paper. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:153-170




Template-Type: ReDIF-Article 1.0
Author-Name: Yee-Chy Tseng
Author-X-Name-First: Yee-Chy
Author-X-Name-Last: Tseng
Author-Name: Ching-Ping Chang
Author-X-Name-First: Ching-Ping
Author-X-Name-Last: Chang
Author-Name: Ruey-Dang Chang
Author-X-Name-First: Ruey-Dang
Author-X-Name-Last: Chang
Author-Name: Hao-Yun Liao
Author-X-Name-First: Hao-Yun
Author-X-Name-Last: Liao
Title: The Impact of Bankers on the Board on Corporate Dividend Policy: Evidence from an Emerging Market
Abstract:
 This study collects data from Taiwan publicly traded corporations that have banker directors between 2003 and 2007, together with a matching sample consisting of firms without banker directors. Variables used to construct empirical analyses are from the <i>Taiwan Economic Journal</i> (TEJ) database. The results indicate that there is a negative relationship between the presence of banker directors and the likelihood of dividend payment. This study contributes to lacuna in the existing banking literature by providing evidence on how banks influence listed corporate dividend policy in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 192-212
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: banker, board of directors, dividend policy
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M0467TQ512589602
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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"Information Disclosure Costs and the Choice of Financing Source." <i>Journal of Financial Intermediation</i> 4, no. 1 (January): 3-20.</BIBTEXT>	 </REF>    <REF>	    <BIBL>50</BIBL>	  <BIBTEXT> Yoshikawa, T., and A.A. Rasheed. 2010. "Family Control and Ownership Monitoring in Family-Controlled Firms in Japan." <i>Journal of Management Studies</i> 47, no. 2 (March): 274-295.</BIBTEXT>	  </REF>      <REF>	<BIBL>51</BIBL>	<BIBTEXT> Young, M.; M.W. Peng; D. Ahlstrom; G. Bruton; and Y. Jiang. 2008. "Corporate Governance in Merging Economies: A Review of the Principal-Principal Perspective." <i>Journal of Management Studies</i> 45, no. 1 (January): 196-220.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:192-212




Template-Type: ReDIF-Article 1.0
Author-Name: Wenchang Fang
Author-X-Name-First: Wenchang
Author-X-Name-Last: Fang
Title: Guest Editor's Introduction: ISFA 2010
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4-6
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=PN553073T5873631
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:4-6




Template-Type: ReDIF-Article 1.0
Author-Name: Xia Wang
Author-X-Name-First: Xia
Author-X-Name-Last: Wang
Author-Name: Yung-Hsin Chen
Author-X-Name-First: Yung-Hsin
Author-X-Name-Last: Chen
Title: Is the Consumer Sentiment Index Capable of Forecasting the Transaction Activeness of Clients? Case Study for a Commercial Bank in China
Abstract:
 The Consumer Sentiment Index (CSI), a leading macroeconomic indicator, reflects consumers' assessments of current financial situations, forecasts consumers' buying behavior, and allows business organizations, such as banks, to capture business opportunities. There is a consensus that the trend of the CSI can forecast consumption activities in a vast array of markets. However, this study demonstrates that it does so for banks only if and when the characteristics of client behavior are taken into account. The study thus contributes to filling a gap in the bank management literature. The managerial implication is that to improve performance, banks should focus on the bank-client relationship.
Journal: Emerging Markets Finance and Trade
Pages: 20-28
Issue: 0
Volume: 48
Year: 2012
Month: 1
Keywords: Consumer Sentiment Index, customer relationship management, transaction activeness
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q332L8143NK6M17L
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Batislam, E.P.; M. Denizel; and A. Filiztekin. 2007. "Empirical Validation and Comparison of Models for Customer Base Analysis." <i>International Journal of Research in Marketing</i> 24, no. 3: 201-209.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Carroll, C.D.; J.C. Fuhrer; and D.W. Wilcox. 1994. "Does Consumer Sentiment Forecast Household Spending? If So, Why?" <i>American Economic Review</i> 84, no. 5: 1397-1408.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> CRI News Report. 2009. "Chinese Consumer Confidence Remains High." May 19.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Darrat, A.F.; K. Elkhal; and B. McCallum. 2006. "Finance and Macroeconomic Performance: Some Evidence for Emerging Markets." <i>Emerging Markets Finance and Trade</i> 42, no. 3: 5-28.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Easaw, J.; D. Garratt; and S.M. Heravi. 2005. "Does Consumer Sentiment Accurately Forecast UK Household Consumption? Are There Any Comparisons to Be Made with the U.S.?" <i>Journal of Macroeconomics</i> 27, no. 3: 517-532.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Fader, P.S.; B.G.S. Hardie; and K.L. Lee. 2005. "RFM and CLV: Using Iso-Value Curves for Customer Base Analysis." <i>Journal of Marketing Research</i> 42, no. 4: 415-430.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Garner, C.A. 1991. "Forecasting Consumer Spending: Should Economists Pay Attention to Consumer Confidence Surveys?" <i>Economic Review</i> 76, no. 3: 57-71.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Huang, C.L., and Y.J. Goo. 2008. "Are Happy Investors Likely to Be Overconfident?" <i>Emerging Markets Finance and Trade</i> 44, no. 4: 33-39.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Leland, H.E. 1968. "Saving and Uncertainty: The Precautionary Demand for Saving." <i>Quarterly Journal of Economics</i> 82, no. 3: 465-473.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Leung, M.K., and R.Y.K. Chan. 2006. "Are Foreign Banks Sure Winners in Post-WTO China?" <i>Business Horizons</i> 49, no. 3: 221-234.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Ludvigson, S.C. 2004. "Consumer Confidence and Consumer Spending." <i>Journal of Economic Perspectives</i> 18, no. 2: 29-50.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Malgarini, M., and P. Margani. 2007. "Psychology, Consumer Sentiment and Household Expenditures." <i>Applied Economics</i> 39, no. 13: 1719-1729.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Menon, K., and A. O'Connor. 2007. "Building Customers' Affective Commitment towards Retail Banks: The Role of CRM in Each ‘Moment of Truth.’" <i>Journal of Financial Services and Marketing</i> 12, no. 2: 157-168.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Ozkan, G.; A. Kipici; and M. Ismihan. 2010. "The Banking Sector, Government Bonds, and Financial Intermediation: The Case of Emerging Market Countries." <i>Emerging Markets Finance and Trade</i> 46, no. 4: 55-70.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Thomas, L.C.; S. Thomas; and L. Tang. 2005. "Impact of Demographic and Economic Variables on Financial Policy Purchase Timing Decisions." <i>Journal of the Operational Research Society</i> 56, no. 9: 1051-1062.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:20-28




Template-Type: ReDIF-Article 1.0
Author-Name: Ruei-Shian Wu
Author-X-Name-First: Ruei-Shian
Author-X-Name-Last: Wu
Title: Agency Theory and Open-Market Share Repurchases: Evidence from Taiwan
Abstract:
 This study extends the literature of open-market share repurchases by detailing the role of the agency problem on the information content of repurchase announcements, the actual buyback, and the subsequent operating performance of repurchasing firms. It uses management ownership to measure the severity of firms' agency problems. Firms with greater management ownership are presumed to have less information asymmetry between managers and outside shareholders and therefore have a less severe agency problem. The findings suggest that firms with a less severe agency problem have more information in their repurchase announcements, buy back fewer shares, and perform better after the repurchase programs.
Journal: Emerging Markets Finance and Trade
Pages: 6-23
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: agency theory, management ownership, open-market share repurchases, operating performance, signaling
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=QM31Q071M331J6WW
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agrawal, A., and C. R. Knoeber. 1996. "Firm Performance and Mechanism to Control Agency Problems Between Managers and Shareholders." <i>Journal of Financial and Quantitative Analysis</i> 31, no. 3: 377-397.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Babenko, I. 2009. "Share Repurchases and Pay-Performance Sensitivity of Employee Compensation Contracts." <i>Journal of Finance</i> 64, no. 1: 117-151.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Barber, B., and J. Lyon. 1996. "Detecting Abnormal Operating Performance: The Empirical Power and Specification of Test Statistics." <i>Journal of Financial Economics</i> 41, no. 3: 359-399.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Baumol, W. 1959. "The Revenue Maximization Hypothesis." In <i>Business Behavior, Value, and Growth</i>, pp. 45-53. New York: Macmillan.</BIBTEXT>	</REF>	<REF>	 <BIBL>5</BIBL> <BIBTEXT> Bebchuk, L., and J. Fried. 2003. "Executive Compensation as an Agency Problem." <i>Journal of Economic Perspectives</i> 17, no. 3: 71-92.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bektas, E., and T. Kaymak. 2009. "Governance Mechanisms and Ownership in an Emerging Market: The Case of Turkish Banks." <i>Emerging Markets Finance & Trade</i> 45, no. 6 (November-December): 20-32.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bens, D.; V. Nagar; D. Skinner; and F. Wong. 2003. "Employee Stock Options, EPS Dilution, and Stock Repurchases." <i>Journal of Accounting and Economics</i> 36, no. 1-3: 51-90.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Bollerslev, T. 1986. "Generalized Autoregressive Conditional Heteroskedasticity." <i>Journal of Econometrics</i> 31, no. 3: 307-327.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Brav, A.; J. Graham; C. Harvey; and R. Michaely. 2005. "Payout Policy in the 21st Century." <i>Journal of Financial Economics</i> 77, no. 3: 483-527.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Brown, S., and J. Warner. 1985. "Using Daily Stock Returns." <i>Journal of Financial Economics</i> 14, no. 1: 13-31.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Chan, K.; D. Ikenberry; and I. Lee. 2004. "Economic Sources of Gain in Stock Repurchases." <i>Journal of Financial and Quantitative Analysis</i> 39, no. 3: 461-479.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Chan, K.; D. Ikenberry; I. Lee; and Y. Wang. 2010. "Share Repurchases as a Potential Tool to Mislead Investors." <i>Journal of Corporate Finance</i> 16, no. 2: 137-158.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Claessens, S.; S. Djankov; J. P. Fan; and L. P. Lang. 2002. "Disentangling the Incentive and Entrenchment Effects of Large Shareholdings." <i>Journal of Finance</i> 57, no. 6: 2741-2771.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Comment, R., and G. A. Jarrell. 1991. "The Relative Signaling Power of Dutch-Auction and Fixed-Price Self-Tender Offers and Open-Market Share Purchases." <i>Journal of Finance</i> 46, no. 4: 1243-1271.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Fama, E. 1980. "Agency Problems and the Theory of the Firm." <i>Journal of Political Economy</i> 88, no. 2: 288-307.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Fama, E., and M. Jensen. 1983. "Agency Problems and Residual Claims." <i>Journal of Law and Economics</i> 26, no. 2: 327-349.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>    <BIBTEXT> Fried, J. 2005. "Informed Trading and False Signaling with Open Market Repurchases." <i>California Law Review</i> 93, no. 5: 1323-1386.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Gong, G.; H. Louis; and A. Sun. 2008. "Earnings Management and Firm Performance Following Open-Market Repurchases." <i>Journal of Finance</i> 63, no. 2: 947-986.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Grullon, G., and R. Michaely. 2004. "The Information Content of Share Repurchase Programs." <i>Journal of Finance</i> 59, no. 2: 651-680.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Hribar, P.; N. T. Jenkins; and W. B. Johnson. 2006. "Stock Repurchases as an Earnings Management Device." <i>Journal of Accounting Economics</i> 41, no. 1: 3-27.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Huber, P. J. 1967. "The Behavior of Maximum Likelihood Estimates under Non-Standard Conditions." In <i>Proceedings of the Fifth Berkeley Symposium on Mathematical Statistics and Probability</i>, vol. 1, pp. 221-233. Berkeley: University of California Press.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Ikenberry, D.; J. Lakonishok; and T. Vermaelen. 1995. "Market Underreaction to Open Market Share Repurchases." <i>Journal of Financial Economics</i> 39, nos. 2-3: 181-208.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Ikenberry, D.; J. Lakonishok; and T. Vermaelen. 2000. "Stock Repurchases in Canada: Performance and Strategic Trading." <i>Journal of Finance</i> 55, no. 5: 2373-2397.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Iturriaga, F. J. L., and V. L. Crisóstomo. 2010. "Do Leverage, Dividend Payout, and Ownership Concentration Influence Firms' Value Creation? An Analysis of Brazilian Firms." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 80-94.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Jagannathan, M., and C. Stephens. 2003. "Motives for Multiple Open-Market Repurchase Programs." <i>Financial Management</i> 32, no. 2: 71-91.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Jensen, M. 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers." <i>American Economic Review</i> 76, no. 2: 323-329.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>   <BIBTEXT> Jensen, M., and W. Meckling. 1976. "Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure." <i>Journal of Financial Economics</i> 3, no. 4: 305-360.</BIBTEXT>   </REF>    <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Kahle, K. 2002. "When a Buyback Isn't a Buyback: Open Market Repurchases and Employee Options." <i>Journal of Financial Economics</i> 63, no. 2: 235-261.</BIBTEXT>	  </REF>      <REF>	<BIBL>29</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A. Shleifer; and R. Vishny. 2000. "Agency Problems and Dividend Policies Around the World." <i>Journal of Finance</i> 55, no. 1: 1-33.</BIBTEXT>	 </REF>     <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Lemmon, M. L., and K. V. Lins. 2003. "Ownership, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis." <i>Journal of Finance</i> 58, no. 4: 1445-1468.</BIBTEXT>	  </REF>      <REF>	<BIBL>31</BIBL>	<BIBTEXT> Lie, E. 2005. "Operating Performance Following Open Market Share Repurchase Announcements." <i>Journal of Accounting and Economics</i> 39, no. 3: 411-436.</BIBTEXT>	 </REF>      <REF>	<BIBL>32</BIBL>   <BIBTEXT> Lin, Y.; J. Chiou; and Y. Chen. 2010. "Ownership Structure and Dividend Preference: Evidence from China's Privatized State-Owned Enterprises." <i>Emerging Markets Finance & Trade</i> 46, no. 1 (January-February): 56-74.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>    <BIBTEXT>Massa, M.; Z. Rehman; and T. Vermaelen. 2007. "Mimicking Repurchases." <i>Journal of Financial Economics</i> 84, no. 3: 624-666.</BIBTEXT>	</REF>	<REF>	    <BIBL>34</BIBL>	  <BIBTEXT> Morck, R.; A. Shleifer; and R. Vishny. 1988. "Management Ownership and Market Valuation: An Empirical Analysis." <i>Journal of Financial Economics</i> 20, no. 1-2: 293-315.</BIBTEXT>	  </REF>      <REF>	<BIBL>35</BIBL>	<BIBTEXT> Peyer, U., and T. Vermaelen. 2009. "The Nature and Persistence of Buyback Anomalies." <i>Review of Financial Studies</i> 22, no. 4: 1693-1745.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>   <BIBTEXT> Securities and Futures Bureau, Financial Supervisory Commission. 2009. <i>Indicators of Securities and Futures Markets Republic of China (Taiwan).</i> Taipei: Executive Yuan.</BIBTEXT>	 </REF>      <REF>	<BIBL>37</BIBL>    <BIBTEXT> Shleifer, A., and R. Vishny. 1997. "A Survey of Corporate Governance." <i>Journal of Finance</i> 52, no. 2: 737-783.</BIBTEXT>	</REF>	<REF>	 <BIBL>38</BIBL> <BIBTEXT> Stephens, C., and M. Weisbach. 1998. "Actual Share Reacquisitions in Open Market Repurchase Programs." <i>Journal of Finance</i> 53, no. 1: 313-334.</BIBTEXT>     </REF>      <REF>	 <BIBL>39</BIBL>   <BIBTEXT> Vermaelen, T. 1981. "Common Stock Repurchases and Market Signaling: An Empirical Study." <i>Journal of Financial Economics</i> 9, no. 2: 139-183.</BIBTEXT>      </REF>	<REF>    <BIBL>40</BIBL>	<BIBTEXT> White, H. 1982. "Maximum Likelihood Estimation of Misspecified Models." <i>Econometrika</i> 50, no. 1: 1-26.</BIBTEXT> </REF>     <REF>   <BIBL>41</BIBL>	<BIBTEXT> Zajac, E. 1990. "CEO Selection, Succession, Compensation, and Firm Performance: A Theoretical Integration and Empirical Analysis." <i>Strategic Management Journal</i> 11, no. 3: 217-230.</BIBTEXT>     </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:6-23




Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Ping Wang
Author-X-Name-First: Ching-Ping
Author-X-Name-Last: Wang
Author-Name: Hung-Hsi Huang
Author-X-Name-First: Hung-Hsi
Author-X-Name-Last: Huang
Author-Name: Yong-Wei Chen
Author-X-Name-First: Yong-Wei
Author-X-Name-Last: Chen
Title: Investor SAD Sentiment and Stock Returns in Taiwan
Abstract:
 Previous studies have demonstrated that investor sentiment affects trading behavior and stock returns, and is correlated with seasons and weather. In addition, a great deal of evidence supports the main systematic factors of the Fama-French (FF) three-factor model. This study presents both the seasonal affective disorder (SAD) model and the SAD-FF model to examine the influence of season and weather on Taiwan stock returns from 1991 to 2010. To determine whether SAD variables affect stock returns, the SAD and SAD-FF models include the additional, explanatory variable of the business cycle factor.
Journal: Emerging Markets Finance and Trade
Pages: 40-57
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: business cycle, Fama-French three-factor model, investor sentiment, seasonal affective disorder (SAD)
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R284706231277042
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abraham, A., and D. Ikenberry. 1994. "The Individual Investor and the Weekend Effect." <i>Journal of Financial and Quantitative Analysis</i> 29, no. 2: 263-277.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Antonio, M. 2007. "Asymmetric Stock Market Volatility and the Cyclical Behavior of Expected Returns." <i>Journal of Financial Economics</i> 86, no. 2: 446-478.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bhardwaj, R., and L. Brooks. 1992. "The January Anomaly: Effects of Low Share Price, Transaction Costs, and Bid-Ask Bias." <i>Journal of Finance</i> 47, no. 2: 553-575.</BIBTEXT>	</REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Chang, S. C.; S. S. Chen; R. Chou; and Y. H. Lin. 2008. "Weather and Intraday Patterns in Stock Returns and Trading Activity." <i>Journal of Banking and Finance</i> 32, no. 9: 1754-1766.</BIBTEXT>	</REF>	<REF>	 <BIBL>5</BIBL> <BIBTEXT> Fama, E., and K. French. 1993. "Common Risk Factors in the Returns on Stocks and Bonds, <i>Journal of Financial Economic</i> 33, no. 1: 3-56.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Fama, E., and K. French. 1996. "Multifactor Explanations of Asset Pricing Anomalies." <i>Journal of Finance</i> 51, no. 1: 55-84.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> French, K. 1980. "Stock Returns and Weekend Effect." <i>Journal of Finance Economics</i> 8, no. 1: 55-69.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Goetzmann, W., and N. Zhu. 2005. "Rain or Shine: Where Is the Weather Effect?" <i>European Financial Management</i> 11, no. 5: 559-578.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Goo, Y. J.; D. H. Chen; S. S. Chang; and C. F. Yeh. 2010. "A Study of the Disposition Effect for Individual Investors in the Taiwan Stock Market." <i>Emerging Markets Finance & Trade</i> 46, no. 1 (January-February): 108-119.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Harding, D., and A. Pagan. 2006. "Synchronisation of Cycles." <i>Journal of Econometrics</i> 132, no. 1: 59-79.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Hirshleifer, D., and T. Shumway. 2003. "Good Day Sunshine: Stock Returns and the Weather." <i>Journal of Finance</i> 58, no. 3: 1009-1032.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Howarth, E., and M. S. Hoffman. 1984. "A Multidimensional Approach to the Relationship Between Mood and Weather." <i>British Journal of Psychology</i> 75, no. 1: 15-23.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Hsiao, H. F.; C. Y. Hsu; C. A. Li; and A. C. Hsu. 2011. "The Relationship Among Managerial Sentiment, Corporate Investment, and Firm Value: Evidence from Taiwan." <i>Emerging Markets Finance & Trade</i> 47, no. 2 (March-April): 99-111.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Jacobsen, B., and W. Marquering. 2008. "Is It the Weather?" <i>Journal of Banking and Finance</i> 32, no. 4: 526-540.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Jacobsen, B., and W. Marquering. 2009. "Is It the Weather? Response." <i>Journal of Banking and Finance</i> 33, no. 3: 583-587.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Kamstra, M.; L. Kramer; and M. Levi. 2003. "Winter Blues: A SAD Stock Market Cycle." <i>American Economic Review</i> 93, no. 1: 324-343.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>    <BIBTEXT> Keim, D. 1983. "Size-Related Anomalies and Stock Return Seasonality: Further Empirical Evidence." <i>Journal of Financial Economics</i> 12, no. 1: 13-32.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Keim, D., and R. Stambaugh. 1984. "A Further Investigation of the Weekend Effect in Stock Returns." <i>Journal of Finance</i> 39, no. 3: 819-835.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Kelly, P., and F. Meschke. 2010. "Sentiment and Stock Returns: The SAD Anomaly Revisited." <i>Journal of Banking and Finance</i> 34, no. 6: 1308-1326.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Kizys, R., and C. Pierdzioch. 2010. "The Business Cycle and the Equity Risk Premium in Real Time." <i>International Review of Economics and Finance</i> 19, no. 4: 711-722.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Kose, M. A.; C. Otrok; and C. H. Whiteman. 2003. "International Business Cycles: World, Region and Country-Specific Factors." <i>American Economic Review</i> 93, no. 4: 1216-1239.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Lai, H. W.; C. W. Chen; and C. S. Huang. 2010. "Technical Analysis, Investment Psychology, and Liquidity Provision: Evidence from the Taiwan Stock Market." <i>Emerging Markets Finance & Trade</i> 46, no. 5 (September-October): 18-38.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Male, R. 2011. "Developing Country Business Cycles: Characterizing the Cycle." <i>Emerging Markets Finance & Trade</i> 47, Supplement 2: 20-39.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Pardo, A., and E. Valor. 2003. "Spanish Stock Returns: Where Is the Weather Effect?" <i>European Financial Management</i> 9, no. 1: 117-126.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Raghunathan, R., and M. T. Pham. 1999. "All Negative Moods Are Not Equal: Motivational Influences of Anxiety and Sadness on Decision Making." <i>Organizational Behavior and Human Decision Processes</i> 79, no. 1: 56-77.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Reinganum, M. 1983. "The Anomalous Stock Market Behavior of Small Firms in January: Empirical Tests for Tax-Loss Selling Effects." <i>Journal of Financial Economics</i> 12, no. 1: 89-104.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>   <BIBTEXT> Saunders, E. 1993. "Stock Prices and Wall Street Weather." <i>American Economic Review</i> 83, no. 5: 1337-1345.</BIBTEXT>   </REF>    <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Shefrin, H., and M. Statman. 1994. "Behavioral Capital Asset Pricing Theory." <i>Journal of Financial and Quantitative Analysis</i> 29, no. 3: 323-349.</BIBTEXT>	  </REF>      <REF>	<BIBL>29</BIBL>	<BIBTEXT> Smith, P. N.; S. Sorensen; and M. R. Wickens. 2010. "The Equity Premium and the Business Cycle: The Role of Demand and Supply Shocks." <i>International Journal of Finance and Economics</i> 15, no. 2: 134-152.</BIBTEXT>     </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:40-57




Template-Type: ReDIF-Article 1.0
Author-Name: Chiao-Yi Chang
Author-X-Name-First: Chiao-Yi
Author-X-Name-Last: Chang
Author-Name: Hsiang-Lan Chen
Author-X-Name-First: Hsiang-Lan
Author-X-Name-Last: Chen
Author-Name: Zong-Ru Jiang
Author-X-Name-First: Zong-Ru
Author-X-Name-Last: Jiang
Title: Portfolio Performance in Relation to Herding Behavior in the Taiwan Stock Market
Abstract:
 Herding behavior, which is investing in crowded stocks during a specific period, will push the target stocks' return down or up. Using both institutional and individual investors' intraday trading data to calculate the measure of daily herding, we find that a zero-cost investing strategy of buying long and high and selling short and high is profitable. The profits gained strategically through herding by individual investors are greater than those earned by institutional investors. This means institutional investors reflect the information quickly and, although they do behave as a herd, it is harder to exploit the herding of institutional investors to make strategically gained profits.
Journal: Emerging Markets Finance and Trade
Pages: 82-104
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: herding, individual investor, institutional investor
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T557566427T64456
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Banerjee, A. 1992. "A Simple Model of Herd Behavior." <i>Quarterly Journal of Economics</i> 107, no. 3: 797-817.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bikhchandani, S.; D. Hirshleifer; and I. Welch. 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades." <i>Journal of Political Economy</i> 100, no. 5: 992-1026.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Brown, S.; D. Yan Du; S. G. Rhee; and L. Zhang. 2008. "The Returns to Value and Momentum in Asian Markets." <i>Emerging Markets Review</i> 9, no. 2: 79-88.</BIBTEXT>	</REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Chan, K.; A. Hameed; and W. Tong. 2000. "Profitability of Momentum Strategies in the International Equity Markets." <i>Journal of Financial and Quantitative Analysis</i> 35, no. 2: 153-172.</BIBTEXT>	</REF>	<REF>	 <BIBL>5</BIBL> <BIBTEXT> Chen, Y. W., and H. Wu. 2007. "Investigation of the Returns of Contrarian and Momentum Strategies in the Taiwanese Equity Market." <i>Journal of American Academy of Business</i> 11, no. 2: 143-150.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chen, Y. W., and H. Wu. 2008. "Trading Strategies and Volume in the Taiwan Stock Market." <i>Business Review</i> 11, no. 2: 76-83.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Del Guercio, D. 1996. "The Distorting Effect of the Prudent-Man Laws on Institutional Equity Investments." <i>Journal of Financial Economics</i> 40, no. 1: 31-62.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Devenow, A., and I. Welch. 1996. "Rational Herding in Financial Economics." <i>European Economics Review</i> 40, nos. 3-5: 603-615.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Falkenstain, E. G. 1996. "Preferences for Stock Characteristics as Revealed by Mutual Fund Portfolio Holdings." <i>Journal of Finance</i> 51, no. 1: 111-135.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Fama, E. F., and K. R. French. 1993. "Common Risk Factors in the Returns on Stocks and Bonds." <i>Journal of Financial Economics</i> 33, no. 1: 3-56.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Froot, K. A.; D. S. Scharfstein; and J. C. Stein. 1992. "Herd on the Street: Informational Inefficiencies in a Market with Short-Term Speculation." <i>Journal of Finance</i> 47, no. 4: 1461-1484.</BIBTEXT>   </REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Gompers, P. A., and A. Metrick. 2001. "Institutional Investors and Equity Prices." <i>Quarterly Journal of Economics</i> 116, no. 1: 229-259.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Grinblatt, M.; S. Titman; and R. Wermers. 1995. "Momentum Investment Strategies, Portfolio Performance, and Herding: A Study of Mutual Fund Behavior." <i>American Economic Review</i> 85, no. 5: 1088-1105.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Hameed, A., and Y. Kusnadi. 2002. "Momentum Strategies: Evidence from Pacific Basin Stock Markets." <i>Journal of Financial Research</i> 25, no. 3: 383-397.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Hirshleifer, D.; A. Subrahmanyam; S. Titman. 1994. "Security Analysis and Trading Patterns When Some Investors Receive Information Before Others." <i>Journal of Finance</i> 49, no. 5: 1665-1698.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Jarque, C. M., and A. K. Bera. 1980. "Efficient Test for Normality, Homoscedasticity and Serial Independence of Regression Residuals." <i>Economics Letters</i> 6, no. 3: 255-259.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>    <BIBTEXT> Jegadeesh, N., and S. Titman. 1993. "Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency." <i>Journal of Finance</i> 48, no. 1: 65-91.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Lai, H. W.; C. W. Chen; and C. S. Huang. 2010. "Technical Analysis, Investment Psychology, and Liquidity Provision: Evidence from the Taiwan Stock Market." <i>Emerging Markets Finance & Trade</i> 46, no. 5 (September-October): 18-38.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Lakonishok, J.; A. Shleifer; and R. W. Vishny. 1992. "The Impact of Institutional Trading on Stock Prices." <i>Journal of Financial Economics</i> 32, no. 1: 23-43.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Maug, E. G., and N. Y. Naik. 1996. "Herding and Delegated Portfolio Management: The Impact of Relative Performance Evaluation on Asset Allocation." IFA Working Paper no. 223-1966, University of Berlin, Berlin.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Rouwenhorst, K. G. 1998. "International Momentum Strategies." <i>Journal of Finance</i> 53, no. 1: 267-284.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Scharfstein, D. S., and J. C. Stein. 1990. "Herd Behavior and Investment." <i>American Economic Review</i> 80, no. 3: 465-479.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Sias, R. W., and L. T. Starks. 1997. "Institutions and Individuals at the Turn-of-the-Year." <i>Journal of Finance</i> 52, no. 4: 1543-1562.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Su, D. 2011. "An Empirical Analysis of Industry Momentum in Chinese Stock Markets." <i>Emerging Markets Finance & Trade</i> 47, no. 4 (July-August): 4-27.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Wermers, R. 1999. "Mutual Fund Herding and the Impact on Stock Prices." <i>Journal of Finance</i> 54, no. 2: 581-622.</BIBTEXT>     </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:82-104




Template-Type: ReDIF-Article 1.0
Author-Name: Su-Lien Lu
Author-X-Name-First: Su-Lien
Author-X-Name-Last: Lu
Author-Name: Ming-Chun Wang
Author-X-Name-First: Ming-Chun
Author-X-Name-Last: Wang
Title: How to Measure the Credit Risk of Housing Loans: Evidence from a Taiwanese Bank
Abstract:
 This paper proposes a formal methodology to gauge the credit risk of housing loans. It estimates the default probability and recovery rate endogenously, which is more detailed than previous studies. Using data from a bank in Taiwan, this study also determines whether securing loans, granting grace periods, and lending to first-time buyers influence the credit risk of housing loans. Results show that unsecured loans and housing loans with grace periods have a higher credit risk because repayment is more uncertain. Housing loans to first-time buyers may distort loan-pricing decisions. Finally, this study estimates four risk factors emphasized by the New Basel Capital Accord, including default probability, loss given default, exposure at default, and maturity.
Journal: Emerging Markets Finance and Trade
Pages: 122-138
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: credit risk, default probability, housing loans, implied recovery rate
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=UQ10Q57057037155
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Altman, E.; A. Resti; and A. Sironi. 2004. "Default Recovery Rates in Credit Risk Modeling: A Review of the Literature and Empirical Evidence." <i>Economic Notes</i> 33, no. 2: 183-208.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Arslan, O., and M. B. Karan. 2010. "Consumer Credit Risk Characteristics: Understanding Income and Expense Differentials." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 20-37.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bhanot, K. 1998. "Recovery and Implied Default in Brady Bonds," <i>Journal of Fixed Income</i> 8, no. 1: 47-51.</BIBTEXT>	</REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bierman, H., and J. E. Hass. 1975. "An Analytic Model of Bond Risk Differentials." <i>Journal of Financial and Quantitative Analysis</i> 10, no. 5: 757-773.</BIBTEXT>	</REF>	<REF>	 <BIBL>5</BIBL> <BIBTEXT> Black, F., and J. C. Cox. 1976. "Valuing Corporate Securities: Some Effects of Bond Indenture Provisions." <i>Journal of Finance</i> 31, no. 2: 351-367.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Black, F., and M. Scholes. 1973. "The Pricing of Options and Corporate Liabilities." <i>Journal of Political Economy</i> 81, no. 3: 637-659.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Briys, E., and F. de Varenne. 1997. "Valuing Risky Fixed Rate Debt: An Extension." <i>Journal of Financial and Quantitative Analysis</i> 32, no. 2: 239-249.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Carty, L., and D. Lieberman. 1996. "Defaulted Bank Loan Recoveries." Moody's Special Report, December.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Collin-Dufresne, P., and R. Goldstein. 2001. "Do Credit Spreads Reflect Stationary Leverage Ratios?" <i>Journal of Finance</i> 56, no. 5: 1929-1957.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Copeland, L., and S. A. Jones. 2001. "Default Probabilities of European Sovereign Debt: Market-Based Estimates." <i>Applied Economics Letters</i> 8, no. 5: 321-324.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Damar, H. E. 2007. "The Effect of the Iraq War on Foreign Bank Lending to the MENA Region." <i>Emerging Markets Finance & Trade</i> 43, no. 5 (September-October): 20-36.</BIBTEXT>   </REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Duffie, D. 1998. "Defaultable Term Structure Models with Fractional Recovery of Par." Graduate School of Business Working Paper, Stanford University, Palo Alto.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Duffie, D., and K. J. Singleton. 1999. "An Econometric Model of the Term Structure of Interest-Rate Swap Yields." <i>Journal of Finance</i> 52, no. 4: 1287-1321.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Eom, Y.; J. Helwege; and J. Huang. 2004. "Structure Models of Corporate Bond Pricing: An Empirical Analysis." <i>Review of Financial Studies</i> 17, no. 2 (Summer): 499-544.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Fang, Y.; I. Hasan; and K. Marton. 2011. "Institutional Development and Its Impact on the Performance Effect of Bank Diversification: Evidence from Transition Economies." <i>Emerging Markets Finance & Trade</i> 47, Supplement 4: 5-22.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Fons, J. S. 1987. "The Default Premium and Corporate Bond Experience." <i>Journal of Finance</i> 42, no.1: 81-98.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>    <BIBTEXT> Gültekin-Karakas, D.; M. Hisarciklilar; and H. Öztürk. 2011. "Sovereign Risk Ratings: Biased Toward Developed Countries." <i>Emerging Markets Finance & Trade</i> 47, Supplement 2: 82-106.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Hurley, W. J., and L. D. Johnson. 1996. "On the Pricing of Bond Default Risk." <i>Journal of Portfolio Management</i> 22, no. 2: 66-70.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Jarrow, R. A., and S. M. Turnbull. 1995. "Pricing Derivatives on Financial Securities Subject to Credit Risk." <i>Journal of Finance</i> 50, no. 1: 53-86.</BIBTEXT>	</REF>   <REF>	<BIBL>20</BIBL>	<BIBTEXT> Jarrow, R. A.; D. Lando; and S. M. Turnbull. 1997. "A Markov Model for the Term Structure of Credit Risk Spreads." <i>Review of Financial Studies</i> 10, no. 2: 481-523.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Kim, B. 2011. "Do Foreign Investors Encourage Value-Enhancing Corporate Risk Taking?" <i>Emerging Markets Finance & Trade</i> 47, no. 3 (May-June): 88-110.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Kim, I. J.; K. Ramaswamy; and S. Sundaresan. 1989. "The Valuation of Corporate Fixed Income Securities." Working Paper, University of Pennsylvania.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Kocenda, E., and M. Vojtek. 2011. "Default Predictors in Retail Credit Scoring: Evidence from Czech Banking Data." <i>Emerging Markets Finance & Trade</i> 47, no. 6 (November-December): 67-79.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Lando, D. 1998. "On Cox Processes and Credit Risky Securities." <i>Review of Derivatives Research</i> 2, nos. 2-3: 99-120.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Leland, H. E. 1994. "Corporate Debt Value, Bond Covenants and Optimal Capital Structure." <i>Journal of Finance</i> 49, no. 4: 1213-1252.</BIBTEXT>     </REF>     <REF>	    <BIBL>26</BIBL>	  <BIBTEXT> Leland, H. E., and K. B. Toft. 1996. "Optimal Capital Structure, Endogenous Bankruptcy, and the Term Structure of Credit Spreads." <i>Journal of Finance</i> 51, no. 3: 987-1019.</BIBTEXT>	  </REF>      <REF>	<BIBL>27</BIBL>	<BIBTEXT> Longstaff, F. A., and E. S. Schwartz. 1995. "A Simple Approach to Valuing Risky Fixed and Floating Rate Debt." <i>Journal of Finance</i> 50, no. 3: 789-819.</BIBTEXT>	 </REF>      <REF>	<BIBL>28</BIBL>   <BIBTEXT> Lu, S. L. 2007. "An Approach to Condition the Transition Matrix on Credit Cycle: An Empirical Investigation of Bank Loans in Taiwan." <i>Asia Pacific Management Review</i> 12, no. 2: 73-84.</BIBTEXT>	</REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Lu, S. L., and C. J. Kuo. 2005. "How to Gauge the Credit Risk of Guarantee Issues in Taiwanese Bills Finance Company: An Empirical Investigation Using a Market-Based Approach." <i>Applied Financial Economics</i> 15, no. 16: 1153-1164.</BIBTEXT>	</REF>	<REF>	 <BIBL>30</BIBL> <BIBTEXT> Lu, S. L., and C. J. Kuo. 2006. "The Default Probability of Bank Loans in Taiwan: An Empirical Investigation by Markov Chain Model." <i>Asia Pacific Management Review</i> 11, no. 2: 405-413.</BIBTEXT>     </REF>      <REF>	 <BIBL>31</BIBL>   <BIBTEXT> Merrick, J. J., Jr. 2001. "Crisis Dynamics of Implied Default Recovery Ratios: Evidence from Russia and Argentina." <i>Journal of Banking and Finance</i> 25, no. 10: 1921-1939.</BIBTEXT>      </REF>	<REF>    <BIBL>32</BIBL>	<BIBTEXT> Merton, R. C. 1974. "On the Pricing of Corporate Debt: The Risk Structure of Interest Rates." <i>Journal of Finance</i> 29, no. 2: 449-470.</BIBTEXT> </REF>     <REF>   <BIBL>33</BIBL>	<BIBTEXT> Staikouras, S. K. 2005. "Multinational Banks, Credit Risk, and Financial Crises: A Qualitative Response Analysis." <i>Emerging Markets Finance & Trade</i> 41, no. 2 (March-April): 82-106.</BIBTEXT>	</REF>	 <REF>	   <BIBL>34</BIBL>	<BIBTEXT> Tsai, B. H., and C. H. Chang. 2010. "Predicting Financial Distress Based on the Credit Cycle Index: A Two-Stage Empirical Analysis." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 67-79.</BIBTEXT>   </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:122-138




Template-Type: ReDIF-Article 1.0
Author-Name: Pao-Yu Huang
Author-X-Name-First: Pao-Yu
Author-X-Name-Last: Huang
Author-Name: Yen-Sen Ni
Author-X-Name-First: Yen-Sen
Author-X-Name-Last: Ni
Author-Name: Chi-Min Yu
Author-X-Name-First: Chi-Min
Author-X-Name-Last: Yu
Title: The Microstructure of the Price-Volume Relationship of the Constituent Stocks of the Taiwan 50 Index
Abstract:
 Due to data concerns, the microstructure of the price-volume relationship is seldom explored in Taiwan. Through efforts to collect the data, we reveal two impressive findings to contribute to the literature. One is that declining share prices are followed by a burst in volume, especially at market close. The other is that total trading volume increased by foreign institutions boosts subsequent returns, whether the trading volume is increased by buying or selling. Both results are barely disclosed in previous studies.
Journal: Emerging Markets Finance and Trade
Pages: 153-168
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: institutional investors, microstructure, price-volume relationship
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=VWWVJ5H307781420
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:153-168




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Haumin Chu
Author-X-Name-First: Haumin
Author-X-Name-Last: Chu
Author-Name: Yu-Chun Wang
Author-X-Name-First: Yu-Chun
Author-X-Name-Last: Wang
Title: Who Furls the Umbrella on Rainy Days? The Role of Bank Ownership Type and Bank Size in SME Lending
Abstract:
 Using Taiwanese bank-level loan data, this paper examines the changes during the three recent recessions in the granting of loans to small and medium-size enterprises (SMEs) by privately owned banks (POBs), government-owned banks (GOBs), and foreign-owned banks (FOBs). The effects of bank size on SME lending are also examined. The behavior of cutting lending during the recession is referred to as "furling the umbrella on rainy days." The behavior is found for FOBs during the last recession (covering the subprime crisis) but not for GOBs and POBs. On the contrary, GOBs even significantly increased SME lending during the crisis period. Finally, large banks make more SME loans than do small banks in both tranquil and crisis times in this study.
Journal: Emerging Markets Finance and Trade
Pages: 184-199
Issue: 0
Volume: 48
Year: 2012
Month: 7
Keywords: bank ownership, bank size, financial crisis, recession, SME lending
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W1RJ4G1P34126873
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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Financial Crisis: Distinguishing Between Supply and Demand Effects." <i>Journal of Financial Economics</i> 100, no. 3: 556-578.</BIBTEXT>	  </REF>      <REF>	<BIBL>36</BIBL>	<BIBTEXT> Rhoades, S. D., and Z. N. Güner. 2003. "Economic Uncertainty and Credit Crunch: Evidence from an Emerging Market." <i>Emerging Markets Finance & Trade</i> 39, no. 4 (July-August): 5-23.</BIBTEXT>	 </REF>      <REF>	<BIBL>37</BIBL>   <BIBTEXT> Rizov, M. 2004. "Credit Constraints and Profitability: Evidence from a Transition Economy." <i>Emerging Markets Finance & Trade</i> 40, no. 4 (July-August): 63-83.</BIBTEXT>	</REF>      <REF>	<BIBL>38</BIBL>    <BIBTEXT> Sealey, C. W., Jr. 1979. "Credit Rationing in the Commercial Loan Market: Estimates of a Structural Model under Conditions of Disequilibrium." <i>Journal of Finance</i> 34, no. 3: 689-702.</BIBTEXT>	</REF>	<REF>	 <BIBL>39</BIBL> <BIBTEXT> Shen, C.-H. 2002. "Credit Rationing for Bad Companies in Bad Years: Evidence from Bank Loan Transaction Data." <i>International Journal of Finance and Economics</i> 7, no. 3: 261-278.</BIBTEXT>     </REF>      <REF>	 <BIBL>40</BIBL>   <BIBTEXT> Stiglitz, J. E.; J. Jaramillo-Vallejo; and Y. C. Park. 1993. "The Role of the State in Financial Markets." In <i>Proceedings of the World Bank Annual Conference on Economic Development</i>, pp. 19-61. Washington, DC: International Bank for Reconstruction and Development/World Bank.</BIBTEXT>      </REF>	<REF>    <BIBL>41</BIBL>	<BIBTEXT> Vogel, U., and A. Winkler. 2010. "Foreign Banks and Financial Stability in Emerging Markets: Evidence from the Global Financial Crisis." Working Paper no. 149, Frankfurt School of Finance and Management, Frankfurt am Main, Germany.</BIBTEXT> </REF>     <REF>   <BIBL>42</BIBL>	<BIBTEXT> White, H. 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity." <i>Econometrica</i> 48, no. 4: 817-838.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:0:p:184-199




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Acknowledgment of Referees
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 132-137
Issue: 1
Volume: 48
Year: 2012
Month: 1
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=78536V3HV668XK06
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:1:p:132-137




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 1
Volume: 48
Year: 2012
Month: 1
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A3828PN2P02J3285
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:1:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Alvarez
Author-X-Name-First: Roberto
Author-X-Name-Last: Alvarez
Author-Name: Patricio Jaramillo
Author-X-Name-First: Patricio
Author-X-Name-Last: Jaramillo
Author-Name: Jorge Selaive
Author-X-Name-First: Jorge
Author-X-Name-Last: Selaive
Title: Is the Exchange Rate Pass-Through into Import Prices Declining? Evidence from Chile
Abstract:
 Several empirical studies have found that the exchange rate pass-through (ERPT) into import prices is not complete and declined during the 1990s. In this paper we carry out a reexamination of these findings using a unique database of disaggregated import prices both at the border and wholesale levels for Chile. Our results do not support previous conclusions. We find a complete and nondeclining ERPT in the long run at both pricing levels of Chilean imports. We extend previous evidence by showing that, in the short run, wholesale prices seem to be less sensitive to exchange rate variations. In addition, we find weak evidence of asymmetric pass-through from appreciations versus depreciations for the aggregate import indexes in the short run and the long run.
Journal: Emerging Markets Finance and Trade
Pages: 100-116
Issue: 1
Volume: 48
Year: 2012
Month: 1
Keywords: exchange rate pass-through, import prices, local currency pricing, monetary policy, price-to-market
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E3K4147857J24670
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Andrews, D. 1991. "Heteroskedasticity and Autocorrelation Consistent Covariance Matrix Estimation." <i>Econometrica</i> 59, no. 3: 817-858.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Athukorala, P. 1991. "Exchange Rate Pass-Through: The Case of Korean Exports of Manufactures." <i>Economics Letters</i> 351, no. 1: 79-84.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bacchetta, P., and E. Van Wincoop. 2003. "Why Do Consumer Prices React Less Than Import Prices to Exchange Rates?" <i>Journal of the European Economic Association</i>, 1, nos. 2-3: 662-670.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bahmani-Oskooee, M., and N. Panthamit. 2006. "Exchange Rate Overshooting in East Asian Countries." <i>Emerging Markets Finance & Trade</i> 42, no. 4 (July-August): 5-18.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Ball, L., and N.G. Mankiw. 1994. "Asymmetric Price Adjustment and Economic Fluctuations." <i>Economic Journal</i> 104, no. 423: 247-261.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bouakez, H., and N. Rebei. 2005. "Has Exchange Rate Pass-Through Really Declined in Canada?" Working Paper no. 05-29, Bank of Canada, Ontario.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Burstein, A.T.; J.C. Neves; and S. Rebelo. 2003. "Distribution Costs and Real Exchange Rate Dynamics During Exchange-Rate-Based Stabilizations." <i>Journal of Monetary Economics</i> 50, no. 6: 1189-1214.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Campa, J.M., and L.S. Goldberg. 2005."Exchange Rate Pass-Through into Import Prices." <i>Review of Economics and Statistics</i> 87, no. 4: 679-690.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Campa, J.M.; L.S. Goldberg; and J.M. González-Mínguez. 2005. "Exchange-Rate Pass-Through to Import Prices in the Euro Area." Working Paper no. 11632, National Bureau of Economic Research, Cambridge, MA, September.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Ca'Zorzi, M.; E. Hahn; and M. Sanchez. 2007. "Exchange Rate Pass-Through in Emerging Markets." Working Paper no. 739, European Central Bank, Frankfurt, March.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Corsetti, G., and L. Dedola. 2003. "The Macroeconomics of International Price Discrimination." Working Paper no. 176, European Central Bank, Frankfurt.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Devereux, M.B., and H.E. Siu. 2007. "State Dependent Pricing and Business Cycle Asymmetries." <i>International Economic Review</i> 48, no. 1: 281-310.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Edwards, S. 2007. "The Relationship Between Exchange Rates and Inflation Targeting Revisited." In <i>Monetary Policy Under Inflation Targeting</i>, ed. F.S. Mishkin and K. Schmidt-Hebbel, pp. 373-413. Santiago: Central Bank of Chile.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Engle, R.F., and C.W.J. Granger. 1987. "Co-Integration and Error-Correction: Representation, Estimation and Testing." <i>Econometrica</i> 55, no. 2: 251-276.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Feinberg, R. 1989. "The Effects of Foreign Exchange Movements on U.S. Domestic Prices." <i>Review of Economics and Statistics</i> 71, no. 3: 505-511.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Fuentes, M. 2007. "Pass-Through to Import Prices: Evidence from Developing Countries." Working Paper no. 320, Pontificia Universidad Catolica de Chile, Santiago.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> García, C., and J. Restrepo. 2002. "Price Inflation and Exchange Rate Pass-Through in Chile." Working Paper no. 128, Central Bank of Chile, Santiago.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Gil-Pareja, S. 2000. "Exchange Rates and European Countries' Export Prices: An Empirical Test for Asymmetries in Pricing to Market Behavior." <i>Weltwirtschaftliches Archiv</i> 136, no. 1: 1-23.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Goldberg, P.M., and M.M. Knetter. 1997. "Goods Prices and Exchange Rates: What Have We Learned?" <i>Journal of Economic Literature</i> 35, no. 3: 1243-1272.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Hansen, G.D., and E.C. Prescott. 2005. "Capacity Constraints, Asymmetries, and the Business Cycle." <i>Review of Economic Dynamics</i> 8, no. 4: 850-865.</BIBTEXT>	</REF>      <REF>	<BIBL>21</BIBL>	<BIBTEXT> International Monetary Fund. 2009. <i>Export and Import Price Index Manual Theory and Practice.</i> Washington, DC.</BIBTEXT>	</REF>      <REF>	<BIBL>22</BIBL>    <BIBTEXT> Irigh J.; M. Marazzi; and A. Rothenberg. 2006. "Exchange-Rate Pass-Through in the G-7 Countries." Federal Reserve International Finance Discussion Paper no. 851, Federal Reserve, Washington, DC.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>     <BIBTEXT> Kara, H., and F. Ögünç. 2008. "Inflation Targeting and Exchange Rate Pass-Through: The Turkish Experience." <i>Emerging Markets Finance & Trade</i> 44, no. 6 (November-December): 52-66.</BIBTEXT>	</REF>	<REF>	 <BIBL>24</BIBL> <BIBTEXT> Knetter, M. 1994. "Is Export Price Adjustment Asymmetric? Evaluating the Market Share and Marketing Bottlenecks Hypotheses." <i>Journal of International Money and Finance</i> 13, no. 1: 55-70.</BIBTEXT>     </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Marazzi, M., and N. Sheets. 2007. "Declining Exchange Rate Pass-Through to U.S. Import Prices: The Potential Role of Global Factors." <i>Journal of International Money and Finance</i> 26, no. 6: 924-947.</BIBTEXT>      </REF>	<REF>    <BIBL>26</BIBL>	<BIBTEXT> McCarthy, J. 2006. <i>Pass-Through of Exchange Rates and Import Prices to Domestic Inflation in Some Industrialized Economies.</i> New York: Federal Reserve Bank of New York.</BIBTEXT>   </REF>    <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Morandé, F., and M. Tapia. 2002. "Políticacambiaria en Chile: el abandono de la banda y la experiencia de flotación" [Exchange Rate Policy in Chile: The Abandonment of the Band and the Experience of Floating]. <i>Journal Economía Chilena</i> 5, no. 3: 67-94.</BIBTEXT>	  </REF>      <REF>	  <BIBL>28</BIBL>	<BIBTEXT> Mumtaz, H.; O. Oomen; and J. Wang. 2006. "Exchange Rate Pass-Through into UK Import Prices." Working Paper no. 312, Bank of England, London.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>    <BIBTEXT> Otani, S., and Shirota. 2005. "Revisiting the Decline in the Exchange-Rate Pass-Through: Further Evidence from Japan's Import Prices." Monetary and Economic Studies Discussion Paper Series no. 2005-E-6, Bank of Japan.</BIBTEXT>	 </REF>   <REF>	    <BIBL>30</BIBL>	  <BIBTEXT> Otani, A.; S. Shiratsuka; and T. Shirota. 2003. "The Decline in the Exchange Rate Pass-Through: Evidence from Japan Import Prices." <i>Monetary and Economic Studies</i> 21, no. 3: 53-81.</BIBTEXT>	  </REF>      <REF>	  <BIBL>31</BIBL>	<BIBTEXT> Schott, P.K. 2004. "Across-Product Versus Within-Product Specialization in International Trade." <i>Quarterly Journal of Economics</i> 119, no. 2: 647-678.</BIBTEXT>	 </REF>    <REF>	  <BIBL>32</BIBL>	<BIBTEXT> Sekine, T. 2006. "Time-Varying Exchange Rate Pass-Through Experiences of Some Industrial Countries." Bank for International Settlements, Basel.</BIBTEXT>	 </REF>    <REF>	  <BIBL>33</BIBL>	<BIBTEXT> Taylor, J. 2000. "Low Inflation, Pass-Through, and the Pricing Power of Firms." <i>European Economic Review</i> 44, no. 7: 1389-1408.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:1:p:100-116




Template-Type: ReDIF-Article 1.0
Author-Name: Rasha Alsakka
Author-X-Name-First: Rasha
Author-X-Name-Last: Alsakka
Author-Name: Owain ap Gwilym
Author-X-Name-First: Owain
Author-X-Name-Last: ap Gwilym
Title: The Causes and Extent of Split Sovereign Credit Ratings in Emerging Markets
Abstract:
 Sovereign credit rating actions have attracted considerable attention recently. This study employs a rich and unique data set of ratings from six international agencies to investigate the causes of split sovereign ratings in emerging countries. Three reasons are identified in explaining the relatively high frequency of disagreement across agencies on emerging sovereign ratings. First, rating agencies use different economic factors and different weights on those factors. Second, rating agencies disagree to a greater extent about more opaque issuers. Third, for smaller rating agencies, issuers in their "home region" tend to be more favored. The findings should be of interest to a wide range of participants in global credit markets.
Journal: Emerging Markets Finance and Trade
Pages: 4-24
Issue: 1
Volume: 48
Year: 2012
Month: 1
Keywords: emerging sovereign ratings, home bias, opacity, ordered probit model, split ratings
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J835T34R218K1871
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alsakka, R., and O. ap Gwilym. 2010a. "Leads and Lags in Sovereign Credit Ratings." <i>Journal of Banking and Finance</i> 34, no. 11: 2614-2626.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Alsakka, R., and O. ap Gwilym. 2010b. "Split Emerging Sovereign Ratings and Rating Migration." <i>Emerging Markets Review</i> 11, no. 2: 79-97.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bennell, J.; D. Crabbe; S. Thomas; and O. ap Gwilym. 2006. "Modelling Sovereign Credit Ratings: Neural Networks Versus Ordered Probit." <i>Expert Systems with Applications</i> 30, no. 3: 415-425.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bissoondoyal-Bheenick, E. 2005. "An Analysis of the Determinants of Sovereign Ratings." <i>Global Finance Journal</i> 15, no. 3: 251-280.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Cantor, R., and F. Packer. 1995. "Sovereign Credit Ratings." <i>Current Issues in Economics and Finance</i> 1, no. 3: 1-6.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Cantor, R., and F. Packer. 1996. "Determinants and Impact of Sovereign Credit Ratings." <i>Federal Reserve Bank of New York Economic Policy Review</i> 2, no. 2 (October): 1-15.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Cantor, R., and F. Packer. 1997. "Differences of Opinion and Selection Bias in the Credit Rating Industry." <i>Journal of Banking and Finance</i> 21, no. 10: 1359-1417.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Dandapani, K., and E. Lawrence. 2007. "Examining Split Bond Ratings: Effect of Rating Scale." <i>Quarterly Journal of Business and Economics</i> 46, no. 2 (Spring): 1-10.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Duff, A., and S. Einig. 2009. "Understanding Credit Ratings Quality: Evidence from UK Debt Market Participants." <i>British Accounting Review</i> 41, no. 2: 107-119.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Ederington, L. 1986. "Why Split Ratings Occur." <i>Financial Management</i> 15, no. 1: 37-49.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>   <BIBTEXT> Hyytinen, A., and M. Pajarinen. 2008. "Opacity of Young Business: Evidence from Rating Disagreement." <i>Journal of Banking and Finance</i> 32, no. 7: 1234-1241.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> International Monetary Fund. 2010. "Resolving the Crisis Legacy and Meeting New Challenges to Financial Stability." IMF Global Financial Stability Report: Meeting New Challenges to Stability and Building a Safer System, Washington, DC, April.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Jewell, J., and M. Livingston. 1998. "Split Ratings, Bond Yields, and Underwriter Spreads for Industrial Bonds." <i>Journal of Financial Research</i> 21, no. 2: 185-204.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Livingston, M.; A. Naranjo; and L. Zhou. 2007. "Asset Opaqueness and Split Bond Ratings." <i>Financial Management</i> 36, no. 3: 49-62.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Livingston, M.; A. Naranjo; and L. Zhou. 2008. "Split Bond Ratings and Rating Migration." <i>Journal of Banking and Finance</i> 32, no. 8: 1613-1624.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Monfort, B., and C. Mulder. 2000. "Using Credit Ratings for Capital Requirements on Lending to Emerging Market Economies: Possible Impact of a New Basel Accord." Working Paper no. 69, International Monetary Fund, Washington, DC.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Morgan, P. 2002. "Rating Banks: Risk and Uncertainty in an Opaque Industry." <i>American Economic Review</i> 92, no. 4: 874-888.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Mulder, C., and R. Perrelli. 2001. "Foreign Currency Credit Ratings for Emerging Market Economies." Working Paper no. 01/191, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Pottier, W., and D. Sommer. 1999. "Property-Liability Insurer Financial Strength Ratings: Differences Across Rating Agencies." <i>Journal of Risk and Insurance</i> 66, no. 4: 621-642.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Shin, Y., and W. Moore. 2003. "Explaining Credit Rating Differences Between Japanese and U.S. Agencies." <i>Review of Financial Economics</i> 12, no. 4: 327-344.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:1:p:4-24




Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mampho P. Modise
Author-X-Name-First: Mampho P.
Author-X-Name-Last: Modise
Title: Valuation Ratios and Stock Return Predictability in South Africa: Is It There?
Abstract:
 Using monthly South African data for January 1990 through October 2009, this paper, to the best of our knowledge, is the first to examine the predictability of real stock return based on valuation ratios, namely, price-dividend and price-earnings ratios. We cannot detect either short-horizon or long-horizon predictability; that is, the hypothesis that the current value of a valuation ratio is uncorrelated with future stock price changes cannot be rejected at both short and long horizons based on bootstrapped critical values constructed from linear representations of the data. We find, via Monte Carlo simulations, that the power to detect predictability in finite samples tends to decrease at long horizons in a linear framework. Although Monte Carlo simulations applied to exponential smooth-transition autoregressive models of the price-dividend and price-earnings ratios show increased power, the ability of the nonlinear framework in explaining the pattern of stock return predictability in the data does not show any promise at either short or long horizons, just as in the linear predictive regressions.
Journal: Emerging Markets Finance and Trade
Pages: 70-82
Issue: 1
Volume: 48
Year: 2012
Month: 1
Keywords: Monte Carlo simulation, nonlinear mean reversion, predictive regression
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=MU170M451788P102
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Andrews, D.W.K. 1993. "Tests for Parameter Instability and Structural Change with Unknown Change Point." <i>Econometrica</i> 61, no. 4: 821-856.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Ang, A., and G. Bekaert. 2007. "Stock Return Predictability: Is It There?" <i>Review of Financial Studies</i> 20, no. 3: 651-707.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Apergis, N., and S.M. Miller. 2004. "Consumption Asymmetry and the Stock Market: Further Evidence." Working Paper no. 2004-19, Department of Economics, University of Connecticut, Hartford.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Apergis, N., and S.M. Miller. 2005a. "Consumption Asymmetry and the Stock Market: New Evidence Through a Threshold Adjustment Model." Working Paper no. 2005-08, Department of Economics, University of Connecticut, Hartford.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Apergis, N., and S.M. Miller. 2005b. "Resurrecting the Wealth Effect on Consumption: Further Analysis and Extension." Working Paper no. 2005-57, Department of Economics, University of Connecticut, Hartford.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Apergis, N., and S.M. Miller. 2006. "Consumption Asymmetry and the Stock Market: Empirical Evidence." <i>Economics Letters</i> 93, no. 3: 337-342.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Balcilar, M. 2003. "Multifractality of the Istanbul and Moscow Stock Market Returns." <i>Emerging Markets Finance & Trade</i> 39, no. 2 (March-April): 5-46.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Balcilar, M. 2004. "Persistence in Inflation: Does Aggregation Cause Long Memory?" <i>Emerging Markets Finance & Trade</i> 40, no. 5 (September-October): 25-56.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Berkowitz, J., and L. Giorgianni. 2001. 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Zhou. 2010. "Industry Return Predictability: Does It Matter Out of Sample?" Working paper, Department of Economics, St. Louis University, February 25.</BIBTEXT>      </REF>	  <REF>     <BIBL>50</BIBL>	<BIBTEXT> Shaman, P., and R.A. Stine. 1988. "The Bias of Autoregressive Coefficient Estimators." <i>Journal of the American Statistical Association</i> 83, no. 403: 842-848.</BIBTEXT>   </REF>     <REF>	 <BIBL>51</BIBL>  <BIBTEXT> Stambaugh, R.F. 1986. "Biases in Regressions with Lagged Stochastic Regressors." Working Paper no. 156, Graduate School of Business, University of Chicago.</BIBTEXT>	</REF>	    <REF>	<BIBL>52</BIBL>       <BIBTEXT> Stambaugh, R.F. 1999. "Predictive Regressions." <i>Journal of Financial Economics</i> 54, no. 3: 375-421.</BIBTEXT>	 </REF>    <REF>	    <BIBL>53</BIBL>	  <BIBTEXT> Stock, J.H., and M.W. Watson. 2003. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:1:p:70-82




Template-Type: ReDIF-Article 1.0
Author-Name: Yan-Ting Lin
Author-X-Name-First: Yan-Ting
Author-X-Name-Last: Lin
Author-Name: Shang-Chi Gong
Author-X-Name-First: Shang-Chi
Author-X-Name-Last: Gong
Author-Name: Sou-Shan Wu
Author-X-Name-First: Sou-Shan
Author-X-Name-Last: Wu
Author-Name: Tsung-Pei Lee
Author-X-Name-First: Tsung-Pei
Author-X-Name-Last: Lee
Title: E/P Mean Reversion-Based Strategies for Investment Practice: Evidence from the Taiwan Market
Abstract:
 This study investigates the mean-reversion characteristic in firm-specific earnings-to-price ratios (E/P ratios) and proposes two investment strategies based on the detected mean-reversion feature of E/P ratios. We differentiate our study from other research by analyzing firm-specific time series data. The results show that, of the 1,156 nonfinancial firms listed on the Taiwan Stock Exchange and the GraTai Securities Market in 2006, the E/P ratios of 516 (about 45 percent) exhibited a tendency of mean reversion. Furthermore, we design two investment strategies based on the detected mean-reversion feature of firm-specific E/P ratios and report the dominant investment performances.
Journal: Emerging Markets Finance and Trade
Pages: 117-131
Issue: 1
Volume: 48
Year: 2012
Month: 1
Keywords: E/P ratio, investment strategy, mean reversion, time series analysis
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=N3036J1405113W57
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahmed, P.; K. Beck; and E. Goldreyer. 2000. "Can Moving Average Technical Trading Strategies Help in Volatile and Declining Markets? A Study of Some Emerging Asian Markets." <i>Managerial Finance</i> 26, no. 6: 49-53.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Aksoy, H., and I. Saglam. 2006. "Patience Extracts Sugar from a Lemon: Buy and Hold with a Classifier System in the Istanbul Stock Exchange." <i>Emerging Markets Finance & Trade</i> 42, no. 1 (January-February): 50-61.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bhargava, V., and D. Malhotra. 2006. "Do Price-Earnings Ratios Drive Stock Values?" <i>Journal of Portfolio Management</i> 33, no. 1 (Fall): 86-92.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Brzeszczynski, J., and A. Welfe. 2007. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:1:p:117-131




Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim
Author-X-Name-First: Dong-Hyeon
Author-X-Name-Last: Kim
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Author-Name: Yu-Bo Suen
Author-X-Name-First: Yu-Bo
Author-X-Name-Last: Suen
Title: Dynamic Effects of Financial Openness on Economic Growth and Macroeconomic Uncertainty
Abstract:
 This paper examines the dynamic effects of financial integration and foreign direct investment (FDI) on economic growth and macroeconomic uncertainty. Using the pooled mean group autoregressive distributed lag approach to annual data over 1975-2007 for ninety developing countries, we find that financial integration contributes to faster economic growth and lower growth uncertainty in the long run. The evidence also shows considerable heterogeneity in the short run. In addition, we find that FDI impedes output growth but mitigates uncertainty in output and consumption growth in the long run. In the short run, FDI has an average negative effect on growth and negligible effect on growth uncertainty, but there are large cross-country differences in response to FDI integration.
Journal: Emerging Markets Finance and Trade
Pages: 25-54
Issue: 1
Volume: 48
Year: 2012
Month: 1
Keywords: economic growth, financial openness, macroeconomic uncertainty, pooled mean group estimator
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T325620JV5K0826T
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File-Restriction: Access to full text is restricted to subscribers. 
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aghion, P.; P. Bacchetta; and A. Banerjee. 2004. "Financial Development and the Instability of Open Economies." <i>Journal of Monetary Economics</i> 51, no. 6: 1077-1106.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Aghion, P.; A. Banerjee; and T. Piketty. 1999. "Dualism and Macroeconomic Volatility." <i>Quarterly Journal of Economics</i> 114, no. 4: 1359-1397.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Ahmed, A.D., and S. Suardi. 2009. "Macroeconomic Volatility, Trade and Financial Liberalization in Africa." <i>World Development</i> 37, no. 10: 1623-1636.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Aitken, B.J., and A.E. Harrison. 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela." <i>American Economic Review</i> 89, no. 3: 605-618.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Alfaro, L.; A. Chanda; S. Kalemli-Ozcan; and S. Sayek. 2010. 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Working Paper no. 7899, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Gine, X., and R.M. Townsend. 2004. "Evaluation of Financial Liberalization: A General Equilibrium Model with Constrained Occupation Choice." <i>Journal of Development Economics</i> 74, no. 2: 269-307.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Hansen, H., and J. Rand. 2006. "On the Causal Links Between FDI and Growth in Developing Countries." <i>World Economy</i> 29, no. 1: 21-41.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> International Monetary Fund. 2009. <i>International Financial Statistics 2009</i>. Washington, DC.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Kalemli-Ozcan, S.; B.E. Sorensen; and O. Yosha. 2003. "Risk Sharing and Industrial Specialization: Regional and International Evidence." <i>American Economic Review</i> 93, no. 3: 903-918.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Kose, M.A.; E.S. Prasad; and A.D. Taylor. 2010. "Thresholds in the Process of International Financial Integration." <i>Journal of International Money and Finance</i> 30, no. 1: 147-179.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Kose, M.A.; E.S. Prasad; and M.E. Terrones. 2005. "Growth and Volatility in an Era of Globalization." <i>IMF Staff Papers</i> 52, Special Issue: 31-63.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Lane, P.R., and G.M. Milesi-Ferretti. 2007. "The External Wealth of Nations Mark II." <i>Journal of International Economics</i> 73, no. 2: 223-250.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Levchenko, A.A.; R. Ranciere; and M. Thoenig. 2009. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:1:p:25-54




Template-Type: ReDIF-Article 1.0
Author-Name: Oleksandr Talavera
Author-X-Name-First: Oleksandr
Author-X-Name-Last: Talavera
Author-Name: Lin Xiong
Author-X-Name-First: Lin
Author-X-Name-Last: Xiong
Author-Name: Xiong Xiong
Author-X-Name-First: Xiong
Author-X-Name-Last: Xiong
Title: Social Capital and Access to Bank Financing: The Case of Chinese Entrepreneurs
Abstract:
 This paper presents the results of a study of the effects of social capital on access to bank financing. Based on a Chinese nationwide survey, our analysis suggests that entrepreneurs who contribute to charities are more likely to be successful in loan applications. In addition, we find that political party membership is an important determinant of state-owned bank financing, whereas time spent on social activities increases the probability of obtaining loans from commercial banks. Therefore, our data provide some evidence for substitutability between various types of social capital. To obtain a loan from a specific type of bank, an entrepreneur should access the relevant social network.
Journal: Emerging Markets Finance and Trade
Pages: 55-69
Issue: 1
Volume: 48
Year: 2012
Month: 1
Keywords: China, entrepreneurs, social capital
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V482416558105074
File-Format: text/html
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abor, J., and N. Biekpe. 2007. "Small Business Reliance on Bank Financing in Ghana." <i>Emerging Markets Finance & Trade</i> 43, no. 4 (July-August): 93-102.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Agrawal, A., and C.R. Knoeber. 2001. "Do Some Outside Directors Play a Political Role?" <i>Journal of Law and Economics</i> 44, no. 1: 179-198.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Allen, F.; J. Qian; and M. Qian. 2005. "Law, Finance, and Economic Growth in China." <i>Journal of Financial Economics</i> 77, no. 1: 57-116.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Alston, J.P. 1989. "<i>Wa, Guanxi</i>, and <i>Inhwa</i>: Managerial Principles in Japan, China, and Korea." <i>Business Horizons</i> 32, no. 2: 26-31.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Ayyagari, M.; A. Demirgüç-Kunt; and V. Maksimovic. 2010. "Formal Versus Informal Finance: Evidence from China." <i>Review of Financial Studies</i> 23, no. 8: 3048-3097.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Barr, A. 2000. "Social Capital and Technical Information Flows in the Ghanaian Manufacturing Sector." <i>Oxford Economic Papers</i> 52, no. 3: 539-559.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Batjargal, B., and M.M. Liu. 2002. "Entrepreneurs' Access to Private Equity in China: The Role of Social Capital." William Davidson Institute Working Paper no. 453, University of Michigan, Ann Arbor.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Beck, T., and A. Demirgüç-Kunt. 2006. "Small and Medium-Size Enterprises: Access to Finance as a Growth Constraint." <i>Journal of Banking and Finance</i> 30, no. 11: 2931-2943.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Beck, T.; A. Demirgüç-Kunt; L. Laeven; and V. Maksimovic. 2006. "The Determinants of Financing Obstacles." <i>Journal of International Money and Finance</i> 25, no. 6: 932-952.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Berger, A.N., and G.F. Udell. 1998. "The Economics of Small Business Finance: The Role of Private Equity and Debt Markets in the Financial Growth Cycle." <i>Journal of Banking and Finance</i> 22, nos. 6-8: 613-673.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Biggs, T., and M.K. Shah. 2006. "African SMEs, Networks, and Manufacturing Performance." <i>Journal of Banking and Finance</i> 30, no. 11: 3043-3066.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Boot, A.W.A. 2000. "Relationship Banking: What Do We Know?" <i>Journal of Financial Intermediation</i> 9, no. 1: 7-25.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Brunner, J.A.; J. Chen; C. Sun; and N. Zhou. 1989. "The Role of <i>Guanxi</i> in Negotiations in the Pacific Basin." <i>Journal of Global Marketing</i> 3, no. 2: 7-23.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Cao, W.M; J.G. Chen; and J. Chi. 2010. "Bank Firm Relationship and Firm Performance Under a State-Owned Bank System: Evidence from China." <i>Banks and Bank Systems</i> 5, no. 3: 68-79.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Claessens, S.; E. Feijen; and L. Laeven. 2008. "Political Connections and Preferential Access to Finance: The Role of Campaign Contributions," <i>Journal of Financial Economics</i> 88, no. 3: 554-580.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Djankov, S.; Y. Qian; G. Roland; and E. Zhuravskaya. 2006. "Who Are China's Entrepreneurs?" <i>American Economic Review</i> 96, no. 2: 348-352.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Evans, D.S., and B. Jovanovic. 1989. 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Tenev. 2001. "The Financing of Private Enterprise in China." <i>Finance and Development</i> 38, no. 1: 14-17.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Gregory, N.; S. Tenev; and D.M. Wagle. 2000. "China's Emerging Private Enterprises: Prospects for the New Century." International Finance Corporation, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Honig, B. 1998. "What Determines Success? Examining the Human, Financial, and Social Capital of Jamaican Microentrepreneurs." <i>Journal of Business Venturing</i> 13, no. 5: 371-394.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Li, H.; L. Meng; Q. Wang; and L.A. Zhou. 2008. "Political Connections, Financing and Firm Performance: Evidence from Chinese Private Firms." <i>Journal of Development Economics</i> 87, no. 2: 283-299.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Liu, X., and X. Xin. 2011. "Why Has China's Trade Grown So Fast? A Demand-Side Perspective." <i>Emerging Markets Finance & Trade</i> 47, no. 1 (January-February): 90-100.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>   <BIBTEXT> Lu, Y. 2011. "Political Connections and Trade Expansion: Evidence from Chinese Private Firms." <i>Economics of Transition</i> 19, no. 1: 1-24.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> McGrath, R.G.; I.C. MacMillan; E.A. Yang; and W. Tsai. 1992. "Does Culture Endure, or Is It Malleable? Issues for Entrepreneurial Economic Development." <i>Journal of Business Venturing</i> 7, no. 6: 441-458.</BIBTEXT>  </REF>	  <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Ministry of Commerce of the People's Republic of China. 2009. <i>China Commerce Yearbook</i>. Beijing: Editorial board of the China Commerce Yearbook.</BIBTEXT>      </REF>	  <REF>     <BIBL>30</BIBL>	<BIBTEXT> Muravyev, A.; D. Schafer; and O. Talavera. 2009. "Entrepreneurs Gender and Financial Constraints: Evidence from International Data." <i>Journal of Comparative Economics</i> 37, no. 2: 270-286.</BIBTEXT>   </REF>     <REF>	 <BIBL>31</BIBL>  <BIBTEXT> Murphy, K.M.; A. Shleifer; and R.W. Vishny. 1992. "The Transition to a Market Economy: Pitfalls of Partial Reform." <i>Quarterly Journal of Economics</i> 107, no. 3: 889-906.</BIBTEXT>	</REF>	    <REF>	<BIBL>32</BIBL>       <BIBTEXT> Redding, S.G. 1991. "Culture and Entrepreneurial Behaviour Among the Overseas Chinese." In <i>The Culture of Entrepreneurship</i>, ed. B. Berger, pp. 137-156. San Francisco: ICS.</BIBTEXT>	</REF>    <REF>	    <BIBL>33</BIBL>	  <BIBTEXT> Rizov, M. 2004. "Credit Constraints and Profitability: Evidence from a Transition Economy." <i>Emerging Markets Finance & Trade</i> 40, no. 4 (July-August): 63-83.</BIBTEXT>	  </REF>      <REF>	<BIBL>34</BIBL>	<BIBTEXT> Schiffer, M., and B. Weder. 2001. "Firm Size and the Business Environment: Worldwide Survey Results." Discussion Paper no. 43, International Finance Corporation, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>35</BIBL>   <BIBTEXT> Tsai, K. 2004. "Back-Alley Banking: Private Entrepreneurs in China." Ithaca: Cornell University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>    <BIBTEXT> Tsang, E.W.K. 1994. "Threats and Opportunities Faced by Private Businesses in China." <i>Journal of Business Venturing</i> 9, no. 6: 451-468.</BIBTEXT>	</REF>	<REF>	   <BIBL>37</BIBL> <BIBTEXT> Uzzi, B. 1999. "Embeddedness in the Making of Financial Capital: How Social Relations and Networks Benefit Firms Seeking Financing." <i>American Sociological Review</i> 64, no. 4: 481-505.</BIBTEXT>     </REF>      <REF>	 <BIBL>38</BIBL>   <BIBTEXT> Webster, L., and M. Taussig. 1999. "Vietnam's Undersized Engine: A Survey of 95 Larger Private Manufacturers." Mekong Project Development Facility Private Sector Discussion Papers, World Bank, Washington, DC.</BIBTEXT>      </REF>	<REF>    <BIBL>39</BIBL>	<BIBTEXT> Xin, K., and J. Pearce. 1996. "Guanxi: Connections as Substitutes for Formal Institutional Support." <i>Academy of Management Journal</i> 39, no. 6: 1641-1658.</BIBTEXT> </REF>     <REF>   <BIBL>40</BIBL>	<BIBTEXT> Zhang, J.; Z. Yuan; and P. Lin. 2002. "From Interpersonal Credit to Unregulated, Private-Governed Financial Institutions: Formats and Pricing Mechanisms of Informal finance." <i>Journal of Financial Research</i> 25, no. 1: 101-109.</BIBTEXT>	</REF>	 <REF>	   <BIBL>41</BIBL>	<BIBTEXT> Zhang, Q., and H.G. Fung. 2006. "China's Social Capital and Financial Performance of Private Enterprises." <i>Journal of Small Business and Enterprise Development</i> 13, no. 2: 198-207.</BIBTEXT>      </REF>	  <REF>     <BIBL>42</BIBL>	<BIBTEXT> Zhao, L.M., and J.D. Aram. 1995. "Networking and Growth of Young Technology-Intensive Ventures in China." <i>Journal of Business Venturing</i> 10, no. 5: 349-370.</BIBTEXT>   </REF>    <REF>     <BIBL>43</BIBL>	<BIBTEXT> Zhou, K., and M.C.S. Wong. 2008. "The Determinants of Net Interest Margins of Commercial Banks in Mainland China." <i>Emerging Markets Finance & Trade</i> 44, no. 5 (September-October): 41-53.</BIBTEXT>   </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:1:p:55-69




Template-Type: ReDIF-Article 1.0
Author-Name: Hulya Ulku
Author-X-Name-First: Hulya
Author-X-Name-Last: Ulku
Title: Determinants of the Savings and Fixed Asset Holdings of Turkish Migrants in Germany
Abstract:
 This paper investigates the determinants of the bank savings and fixed assets of Turkish migrants residing in Germany. We find that migrants with firmer roots in Germany are more likely to hold savings and fixed assets in Germany, and those with stronger links to Turkey are more likely to hold savings and fixed assets in Turkey. As expected, income is a positive determinant of savings and fixed assets in both countries. Although age has a positive impact on savings and fixed assets in Turkey, it has a negative impact on savings in Germany. These results shed new light on Turkish migrants' short- and long-term savings in Turkey and Germany.
Journal: Emerging Markets Finance and Trade
Pages: 83-99
Issue: 1
Volume: 48
Year: 2012
Month: 1
Keywords: fixed asset holdings, Germany, household data, savings, Turkish migrants
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=WN7088M07T7K43R6
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akkoyunlu, S., and K.A. Kholodilin. 2008. "A Link Between Workers' Remittances and Business Cycles in Germany and Turkey." <i>Emerging Markets Finance & Trade</i> 44, no. 5 (September-October): 23-40.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Aydas, O.T.; K.M. Ozcan; and B. Neyapti. 2005. "Determinants of Workers' Remittances: The Case of Turkey." <i>Emerging Markets Finance & Trade</i> 41, no. 3 (May-June): 53-69.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bauer, T.K., and M.G. Sinning. 2011. "The Savings Behavior of Temporary and Permanent Migrants in Germany." <i>Journal of Population Economics</i> 24, no. 2: 421-449.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Caballero, R. 1990."Consumption Puzzles and Precautionary Savings." <i>Journal of Monetary Economics</i> 25, no. 1: 113-136.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Carroll, C.D.; B. Rhee; and C. Rhee. 1999. "Does Cultural Origin Affect Saving Behavior? Evidence from Immigrants." <i>Economic Development and Cultural Change</i> 48, no. 1: 33-50.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Constant, A.F.; R. Roberts; and K.F. Zimmermann. 2008. "Ethnic Identity and Immigrant Homeownership." <i>Urban Studies</i> 46, no. 9: 1879-1898.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Djajic, S. 1989. "Migrants in a Guest Worker System: A Utility Maximization Approach." <i>Journal of Development Economics</i> 31, no. 2: 327-339.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Djajic, S., and R. Melbourne. 1988. "A General Equilibrium Model of Guest Worker Migration." <i>Journal of International Economics</i> 25, nos. 3-4: 335-351.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Dustmann, C. 1995. "Savings Behavior of Return Migrants: A Life-Cycle Analysis." <i>Zeitschrift fur Wirtschafts- und Soczialwissenschaften</i> 115, no. 4: S.511-533.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Dustmann, C. 1997. "Return Migration, Uncertainty and Precautionary Savings." <i>Journal of Development Economics</i> 52, no. 2: 295-316.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Dustmann, C., and J. Mestres. 2010. "Remittances and Temporary Migration." <i>Journal of Development Economics</i> 92, no. 1: 62-70.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Friedman, M. 1957. <i>A Theory of the Consumption Function.</i> Princeton: Princeton University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Galor, O., and O. Stark. 1990. "Migrants' Savings, the Probability of Return Migration and Migrants' Performance." <i>International Economic Review</i> 31, no. 2: 463-467.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Karayalcin, C. 1994. "Temporary and Permanent Migration With and Without an Immobile Factor." <i>Journal of Development Economics</i> 43, no. 2: 197-215.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Kirdar, M.G. 2009."Labor Market Outcomes, Savings Accumulation, and Return Migration." <i>Labour Economics</i> 16, no. 4: 418-428.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Kirdar, M.G. 2010. "Source Country Characteristics and Immigrants' Migration Duration and Saving Decisions." TUSIAD-Koç University Economic Research Forum Working Paper Series no. 1010, Istanbul, Turkey.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Kumcu, E.M. 1989. "The Savings Behavior of Migrant Workers: Turkish Workers in W. Germany." <i>Journal of Development Economics</i> 30, no. 2: 273-286.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Merkle, L., and K.F. Zimmermann. 1992. "Savings, Remittances, and Return Migration." <i>Economics Letters</i> 38, no. 1: 77-81.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Modigliani, F. 1986. "Life-Cycle, Individual Thrift, and the Wealth of Nations." <i>American Economic Review</i> 76, no. 3: 297-313.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Neyapti, B. 2004. "Trends in Workers' Remittances: A Worldwide Overview." <i>Emerging Markets Finance & Trade</i> 40, no. 2 (March-April): 83-90.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Piracha, M., and Y. Zhu. 2007. "Precautionary Savings by Natives and Immigrants in Germany." IZA (Institute for the Study of Labor) Discussion Paper no. 2942, Bonn, July.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Ratha, D., and S. Mohapatra. 2011. "Preliminary Estimates of Diaspora Savings." Migration and Development Brief 14, Migration and Remittances Unit, World Bank, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Sayan, S. 2004. "Guest Workers' Remittances and Output Fluctuations in Host and Home Countries: The Case of Remittances from Turkish Workers in Germany." <i>Emerging Markets Finance & Trade</i> 40, no. 6 (November-December): 68-81.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Sinning, M. 2007. "Determinants of Savings and Remittances: Empirical Evidence from Immigrants to Germany." IZA (Institute for the Study of Labor) Discussion Paper no. 2966, Bonn, August.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Ulku, H. 2012 (forthcoming). "Remitting Behaviour of Turkish Migrants: Evidence from Household Data in Germany." <i>Urban Studies.</i></BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> United Nations. 2006. "International Migration Report 2006: A Global Assessment." Department of Economic and Social Affairs, Population Division, New York.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>   <BIBTEXT> World Bank. 2008. <i>Migration and Remittances Factbook 2008.</i> Washington, DC: World Bank.</BIBTEXT>   </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:1:p:83-99




Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Hsun Hsieh
Author-X-Name-First: Chia-Hsun
Author-X-Name-Last: Hsieh
Author-Name: Shian-Chang Huang
Author-X-Name-First: Shian-Chang
Author-X-Name-Last: Huang
Title: Time-Varying Dependency and Structural Changes in Currency Markets
Abstract:
 This study employs Patton's (2006) conditional copula framework to model dynamic conditional joint distribution with currency data for Taiwan and its trading counterparties. Empirical findings suggest that the exchange rate of Taiwan tends to display high tail dependence with those of Asian countries during currency depreciations. Because financial events during the sample period may be the source of structural changes for dependence structure, this study applies Bai and Perron's (1998, 2003) approach to detect the internal structural breaks. Empirical results reveal significant structural changes in the persistence of dependence, especially during the financial crisis of 2008.
Journal: Emerging Markets Finance and Trade
Pages: 94-127
Issue: 2
Volume: 48
Year: 2012
Month: 3
Keywords: conditional copula, currency market, structural break, time series model, time-varying dependency
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=62180KL2VN411563
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:2:p:94-127




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-An Wang
Author-X-Name-First: Chien-An
Author-X-Name-Last: Wang
Title: Determinants of the Choice of Formal Bankruptcy Procedure: An International Comparison of Reorganization and Liquidation
Abstract:
 Application of a logit regression model to 555 bankruptcy filings from 30 countries from 1993 to 2009 provides insight into the factors that determined the outcomes of two formal bankruptcy resolution procedures, reorganization, and liquidation. The evidence shows that the judicial efficiency of debt enforcement had greater effects on the reorganization choice than the formalism on debtor rights written in the law books had. A higher bank debt ratio did not necessarily favor liquidation over reorganization, and creditors relied on the future value of the viable firm and judicial efficiency to decide between reorganization and liquidation. The results highlighted that the bankruptcy code and its enforceability efficiency were the causes of the variability in formal bankruptcy outcomes.
Journal: Emerging Markets Finance and Trade
Pages: 4-28
Issue: 2
Volume: 48
Year: 2012
Month: 3
Keywords: bankruptcy, judicial efficiency, liquidation, reorganization
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B4R76T600H078780
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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"The Regulation of Entry." <i>Quarterly Journal of Economics</i> 53, no. 1: 559-588.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Ferri, G.; T.S. Kang; and I.J. Kim. 2000. "The Value of Relationship Banking During Financial Crises: Evidence from the Republic of Korea." World Bank Working Paper no. 2553, Washington, DC.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Fisher, T.C., and J. Martel. 1995. "The Creditors' Financial Reorganization Decision: New Evidence from Canadian Data." <i>Journal of Law, Economics and Organization</i> 11, no. 1: 112-126.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Franks, J.R, and W.N. Torous. 1989. "An Empirical Investigation of U.S. Firms in Reorganization." <i>Journal of Finance</i> 44, no. 3: 747-769.</BIBTEXT>	</REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Franks, J.R.; K.G. Nyborg; and W.N. Torous. 1996. "A Comparison of U.S., U.K. and German Insolvency Codes." <i>Financial Management</i> 25, no. 3: 86-101.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Gilson, S.C. 1990. "Bankruptcy, Boards, Banks, and Blockholders: Evidence on Changes in Corporate Ownership and Control When Firms Default." <i>Journal of Financial Economics</i> 26, no. 2: 355-387.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Gilson, S.C. 1997. "Transactions Costs and Capital Structure Choice: Evidence from Financially Distressed Firms." <i>Journal of Finance</i> 52, no. 1: 161-196.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Gilson, S.C., and M.R. Vetsuypens. 1993. "CEO Compensation in Financially Distressed Firms: An Empirical Analysis." <i>Journal of Finance</i> 43, no. 2: 425-458.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Hackbarth, D.; C. Hennessy; and H. Leland. 2007. "Can the Trade-Off Theory Explain Debt Structure?" <i>Review of Financial Studies</i> 20, no. 5: 1389-1428.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Hansen, L. 1982. "Large Sample Properties of Generalized Method of Moments Estimators." <i>Econometrica</i> 50, no. 4: 1029-1054.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Helwege, J., and F. Packer. 2003. "Determinants of the Choice of Bankruptcy Procedure in Japan." <i>Journal of Financial Intermediation</i> 12, no. 1: 96-120.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Hoshi, T.; A. Kashyap; and D. Scharfstein. 1991. "Corporate Structure, Liquidity and Investment: Evidence from Japanese Industrial Groups." <i>Quarterly Journal of Economics</i> 106, no. 1: 33-60.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Kaiser, K.M.J. 1996. "European Bankruptcy Laws: Implications for Corporations Facing Financial Distress." <i>Financial Management</i> 25, no. 3: 67-85.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Lang, H.P., and R.H. Litzenberger. 1989. "Divided Announcements—Cash Flow Signalling vs. Free Cash Flow Hypothesis?" <i>Journal of Finance and Economics</i> 24, no. 1: 181-191.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; S. Andrei; and R.W. Vishny. 1998. "Law and Finance." <i>Journal of Political Economy</i> 106, no. 6: 1113-1155.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Lawrence, E.C., and N. Arshadi. 1995. "A Multinomial Logit Analysis of Problem Loan Resolution Choices in Banking." <i>Journal of Money, Credit, and Banking</i> 27, no. 1: 202-216.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Maksimovic, V., and G. Phillips. 1998. 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"Bankruptcy Resolution: Direct Costs and Violation of Priority of Claims." <i>Journal of Financial Economics</i> 27, no. 2: 285-314.</BIBTEXT>      </REF>	  <REF>     <BIBL>30</BIBL>	<BIBTEXT> White, M.J. 1989. "The Corporate Bankruptcy Decision." <i>Journal of Economic Perspectives</i> 3, no. 2: 129-151.</BIBTEXT>   </REF>     
Handle: RePEc:mes:emfitr:v:48:y:2012:i:2:p:4-28




Template-Type: ReDIF-Article 1.0
Author-Name: Dayong Zhang
Author-X-Name-First: Dayong
Author-X-Name-Last: Zhang
Author-Name: Yu Wu
Author-X-Name-First: Yu
Author-X-Name-Last: Wu
Title: Household Savings, the Stock Market, and Economic Growth in China
Abstract:
 Previous research studies have suggested that rising optimism caused by booming stock prices has a significant negative impact on savings decisions. However, identifying this relationship clarifies only one side of the problem. It is also necessary to look at whether savings decisions can affect stock market performance. Moreover, another important question that policy makers may be interested in is how these savings and stock market investment decisions in the private sector can affect economic growth. This paper investigates this mechanism in China via a time-series approach and discusses further policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 44-58
Issue: 2
Volume: 48
Year: 2012
Month: 3
Keywords: cointegration, economic growth, household savings, stock market, structural break
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C6111T75076038W2
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Andrews, D.W.K. 1993. "Tests for Parameter Instability and Structural Change with Unknown Change Point." <i>Econometrica</i> 61, no. 4: 821-856.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Andrews, D.W.K., and W. Ploberger. 1994. "Optimal Tests When a Nuisance Parameter Is Present Only Under the Alternative." <i>Econometrica</i> 62, no. 6: 1383-1414.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Arestis, P.; P.O. Demetriades; and K.B. Luintel. 2001. "Financial Development and Economic Growth: The Role of Stock Markets." <i>Journal of Money, Credit and Banking</i> 33, no. 1: 16-41.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Atje, R., and B. Jovanovic. 1993. "Stock Markets and Development." <i>European Economic Review</i> 37, nos. 2-3: 632-640.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Beck, T., and R. Levine. 2002. "Industry Growth and Capital Allocation: Does Having a Market- or Bank-Based System Matter?" <i>Journal of Financial Economics</i> 64, no. 2: 147-180.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Beck, T., and R. Levine. 2004. "Stock Markets, Banks, and Growth: Panel Evidence." <i>Journal of Banking & Finance</i> 28, no. 3: 423-442.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bonham, C., and C. Weimer. 2010. "Chinese Saving Dynamics: The Impact of GDP Growth and the Dependent Share." University of Hawaii Working Paper no. 2010-11, Economic Research Association, Honolulu, July 29.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Burdekin, R.C.K., and L. Redfern. 2009a. "Sentiment Effects on Chinese Share Prices and Savings Deposits: The Post-2003 Experience." <i>China Economic Review</i> 20, no. 2: 246-261.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Burdekin, R.C.K., and L. Redfern. 2009b. "Stock Market Sentiment and the Draining of China's Savings Deposits." <i>Economics Letters</i> 102, no. 1: 27-29.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> <i>China Securities Journal</i>. 2007. "Chinese Pour Savings Deposits into Stock Market." May 14 (available at <a target="_blank" href='http://www.cs.com.cn/english/ei/200705/t20070514_1101649.htm'>www.cs.com.cn/english/ei/200705/t20070514_1101649.htm</a></BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Chow, G.C. 1960. "Tests of Equality Between Sets of Coefficients in Two Linear Regressions." <i>Econometrica</i> 28, no. 3: 591-605.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Corbett, J., and T. Jenkinson. 1994. "The Financing of Industry, 1970-1989: An International Comparison." Discussion Paper no. 948, Centre for Economic Policy Research, London.</BIBTEXT>	</REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Darrat, A.F.; K. Elkhal; and B. McCallum. 2006. "Finance and Macroeconomic Performance: Some Evidence for Emerging Markets." <i>Emerging Markets Finance & Trade</i> 42, no. 3 (May-June): 5-28.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Engle, R.F., and C.W.J. Granger. 1987. "Cointegration and Error Correction: Representation, Estimation and Testing." <i>Econometrica</i> 55, no. 2: 251-276.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Fry, M.J. 1997. "In Favour of Financial Liberalisation." <i>Economic Journal</i> 107, no. 442: 754-770.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Graff, M. 2003. "Financial Development and Economic Growth in Corporatist and Liberal Market Economies." <i>Emerging Markets Finance & Trade</i> 39, no. 2 (March-April): 47-69.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Gregory, A.W., and B.E. Hansen. 1996. "Residual-Based Tests for Cointegration in Models with Regime Shifts." <i>Journal of Econometrics</i> 70, no. 1: 99-126.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Hall, S., and M. Wickens. 1993. "Causality in Integrated Systems." London Business School Discussion Paper no. 27-93.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Hansen, B.E. 1997. "Approximate Asymptotic <i>P</i> Values for Structural-Change Tests." <i>Journal of Business and Economic Statistics</i> 15, no. 1: 60-67.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> He, X., and Y. Cao. 2007. "Understanding High Saving Rate in China." <i>China & World Economy</i> 15, no. 1: 1-13.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Inoue, A. 1999. "Tests of Cointegrating Rank with a Trend-Break." <i>Journal of Econometrics</i> 90, no. 2: 215-237.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Johansen, S. 1988. "Statistical Analysis of Co-Integrating Vectors." <i>Journal of Economic Dynamics and Control</i> 12, nos. 2-3: 231-254.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Johansen, S. 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models." <i>Econometrica</i> 59, no. 6: 1551-1580.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Johansen, S., and K. Juselius. 1992. "Testing Structural Hypotheses in a Multivariate Cointegration Analysis of the PPP and the UIP for UK." <i>Journal of Econometrics</i> 53, nos. 1-3: 211-244.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> King, R.G., and R. Levine. 1993. "Finance and Growth: Schumpeter Might Be Right." <i>Quarterly Journal of Economics</i> 108, no. 3: 717-737.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Lee, B.S.; W. Li; and S.S. Wang. 2010. "The Dynamics of Individual and Institutional Trading on the Shanghai Stock Exchange." <i>Pacific-Basin Finance Journal</i> 18, no. 1: 116-137.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Levine, R., and S. Zervos. 1998. "Stock Markets, Banks and Economic Growth." <i>American Economic Review</i> 88, no. 3: 537-558.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> MacKinnon, J.G. 1991. "Critical Values for Cointegration Tests." In <i>Long-Run Economic Relationships: Readings in Cointegration</i>, ed. R.F. Engle and C.W.J. Granger, pp. 267-276. Oxford: Oxford University Press.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Mayer, C. 1988. "New Issues in Corporate Finance." <i>European Economic Review</i> 32, no. 5: 1167-1188.</BIBTEXT>      </REF>	  <REF>     <BIBL>30</BIBL>	<BIBTEXT> Ozkan, F.G.; A. Kipici; and M. Ismihan. 2010. "The Banking Sector, Government Bonds, and Financial Intermediation: The Case of Emerging Market Countries." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 55-70.</BIBTEXT>   </REF>     <REF>	    <BIBL>31</BIBL>	  <BIBTEXT> Quandt, R. 1960. "Tests of the Hypothesis That a Linear Regression Obeys Two Separate Regimes." <i>Journal of the American Statistical Association</i> 55, no. 290: 324-330.</BIBTEXT>	  </REF>      <REF>	<BIBL>32</BIBL>	<BIBTEXT> Yartey, C.A. 2009. "The Stock Market and the Financing of Corporate Growth in Africa: The Case of Ghana." <i>Emerging Markets Finance & Trade</i> 45, no. 4 (July-August): 53-68.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>   <BIBTEXT> Zhao, J., and H. Gao. 2010. "Impact of Asset Price Fluctuation on China's Monetary Policy: An Empirical Analysis Based on Quarterly Data, 1994-2006." <i>Frontiers of Economics in China</i> 5, no. 1: 69-95.</BIBTEXT>	 </REF> 
Handle: RePEc:mes:emfitr:v:48:y:2012:i:2:p:44-58




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M.
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 2
Volume: 48
Year: 2012
Month: 3
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T331UR432683420Q
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:2:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Kyle Peyton
Author-X-Name-First: Kyle
Author-X-Name-Last: Peyton
Author-Name: Ariel R. Belasen
Author-X-Name-First: Ariel R.
Author-X-Name-Last: Belasen
Title: Corruption in Emerging and Developing Economies: Evidence from a Pooled Cross-Section
Abstract:
 Corruption has affected systems of governance for thousands of years. Existing evidence suggests that it is especially common in "emerging and developing economies," yet cross-country analysis in this context is rare. We examine the impact of political, economic, and media freedom on corruption in a large sample of countries across multiple time periods to investigate the marginal differences within each. The results show that increased economic and press freedoms are associated with lower levels of corruption in developing countries. We find that although increased political freedom through democratization is statistically significant, it reduces corruption only in developed countries and may increase levels of corruption in developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 29-43
Issue: 2
Volume: 48
Year: 2012
Month: 3
Keywords: corruption, democratization, development, economic freedom, emerging and developing economies, media freedom
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U87477H100301820
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abed, G., and H. Davoodi. 2000. "Corruption, Structural Reforms and Economic Performance in the Transition Economies." Working Paper no. 132, International Monetary Fund, Washington, DC.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Acemoglu, D., and S. Johnson. 2005. "Unbundling Institutions." <i>Journal of Political Economy</i> 118, no. 5: 949-995.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Acemoglu, D.; S. Johnson; and J.A. Robinson. 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation." <i>American Economic Review</i> 91, no. 5: 1369-1401.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Adsera, A.; C. Boix; and M. Payne. 2000. "Are You Being Served? Political Accountability and Quality of Government." Working Paper no. 438, Inter-American Development Bank Research Department, Washington, DC.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Al-Marhubi, F. 2000. "Corruption and Inflation." <i>Economic Letters</i>, 66, no. 2: 199-202.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Alper, C.E., and Z. Onis. 2003. "Financial Globalization, the Democratic Deficit, and Recurrent Crises in Emerging Markets: The Turkish Experience in the Aftermath of Capital Account Liberalization." <i>Emerging Markets Finance & Trade</i> 39, no. 3 (May-June): 5-26.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Banfield, E.C. 1975. "Corruption as a Feature of Government Organizations." <i>Journal of Law and Economics</i>, 18, no. 3: 587-605.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Beck, T.; A. Demirgüç-Kunt; and R. Levine. 2003. "Law and Finance: Why Does Legal Origin Matter?" <i>Journal of Comparative Economics</i> 31, no. 4: 653-675.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Becker, G.S. 1994. "To Root Out Corruption, Boot Out Big Government." <i>BusinessWeek</i> (January 31): 18.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Becker, G.S. 1995. "If You Want to Cut Corruption, Cut Government." <i>BusinessWeek</i> (December 11): 26.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Becker, G.S., and G.J. Stigler. 1974. "Law Enforcement, Malfeasance, and the Compensation of Enforcers." <i>Journal of Legal Studies</i> 3, no. 1: 1-18.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Berengaut, J., and K. Elborgh-Woytek. 2006. "Who Is Still Haunted by the Specter of Communism? Explaining Relative Output Contractions Under Transition." <i>Emerging Markets Finance & Trade</i> 42, no. 5 (September-October): 61-80.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Bohara, A.K.; N.J. Mitchell; and C.F. Mittendorff. 2004. "Compound Democracy and the Control of Corruption: A Cross-Country Investigation." <i>Policy Studies Journal</i> 32, no. 4: 481-499.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Braun, M., and R. Di Tella. 2004. "Inflation, Inflation Variability, and Corruption." <i>Economic and Politics</i> 16, no. 1: 77-100.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Brunetti, A., and B. Weder. 2003. "A Free Press Is Bad News for Corruption." <i>Journal of Public Economics</i> 87, nos. 7-8: 1801-1824.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Butkiewicz, J.L., and H. Yanikkaya. 2008. "Capital Account Openness, International Trade, and Economic Growth: A Cross-Country Empirical Investigation." <i>Emerging Markets Finance & Trade</i> 44, 2 (March-April): 15-38.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Chowdhury, S.K. 2004. 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"Political Institutions and Governance: Pluralism Versus Centralism." <i>British Journal of Political Science</i> 34, no. 2: 295-303.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Gerring, J., and S. Thacker. 2005. "Do Neoliberal Policies Deter Political Corruption?" <i>International Organization</i> 59, no. 1: 233-254.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Getz, K.A., and R.J. Volkema. 2001. "Culture, Perceived Corruption, and Economics: A Model of Predictors and Outcomes." <i>Business and Society</i> 40, no. 1: 7-30.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Goel, R.K., and M.A. Nelson. 2005. "Economic Freedom Versus Political Freedom: Cross-Country Influences on Corruption." <i>Australian Economic Papers</i> 44, no. 2: 121-133.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Goldsmith, A.A. 1999. "Slapping the Grasping Hand: Correlates of Political Corruption in Emerging Markets." <i>American Journal of Economics and Sociology</i> 58, no. 4: 865-868.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Graeff, P., and G. Mehlkop. 2003. "The Impact of Economic Freedom on Corruption: Different Patterns for Rich and Poor Countries." <i>European Journal of Political Economy</i> 19, no. 3: 605-620.</BIBTEXT>      </REF>	  <REF>     <BIBL>30</BIBL>	<BIBTEXT> Gwartney, J. 2009. "Institutions, Economic Freedom, and Cross-Country Differences in Performance." <i>Southern Economic Journal</i> 75, no. 4: 937-956.</BIBTEXT>   </REF>     <REF>	 <BIBL>31</BIBL>  <BIBTEXT> International Monetary Fund. 1997. "The Role of the IMF in Governance Issues: Guidance Note." In <i>Good Governance: The IMF's Role</i>, pp. 1-13. Washington, DC (available at <a target="_blank" href='http://www.imf.org/external/pubs/ft/exrp/govern/govern.pdf'>www.imf.org/external/pubs/ft/exrp/govern/govern.pdf</a></BIBTEXT>	</REF>	    <REF>	<BIBL>32</BIBL>       <BIBTEXT> Johnston, M. 2005. <i>Syndromes of Corruption</i>. Cambridge: Cambridge University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>	 <BIBTEXT> Kaufmann, D., and S.-J. Wei. 1999. "Does ‘Grease Payment’ Speed Up the Wheels of Commerce?" Working Paper no. 7093, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>    </REF>	<REF>	 <BIBL>34</BIBL>	<BIBTEXT> Kekic, L. 2007. "The Economist Intelligence Unit's Index of Democracy." Economist Intelligence Unit (available at <a target="_blank" href='http://www.economist.com/media/pdf/DEMOCRACY_INDEX_2007_v3.pdf'>www.economist.com/media/pdf/DEMOCRACY_INDEX_2007_v3.pdf</a></BIBTEXT>   </REF>     <REF>	<BIBL>35</BIBL>  <BIBTEXT> Khan, M. 2006. "Determinants of Corruption in Developing Countries: The Limits of Conventional Economic Analysis." In <i>International Handbook on the Economics of Corruption</i>, ed. S. Rose-Ackerman, pp. 216-244. Cheltenham, UK: Edward Elgar.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>  <BIBTEXT> Klitgaard, R. 1988. <i>Controlling Corruption</i>. Berkeley: University of California Press.</BIBTEXT>	</REF>	    <REF>	<BIBL>37</BIBL>   <BIBTEXT> Krueger, A.O. 1974. "The Political Economy of the Rent-Seeking Society." <i>American Economic Review</i> 64, no. 3: 291-303.</BIBTEXT>      </REF>     <REF>	<BIBL>38</BIBL>	  <BIBTEXT> Lagoarde-Segot, T., and B.M. Lucey. 2008. "The Capital Markets of the Middle East and North African Region: Situation and Characteristics." <i>Emerging Markets Finance & Trade</i> 44, no. 5 (September-October): 68-81.</BIBTEXT>      </REF>	 <REF>	    <BIBL>39</BIBL>	<BIBTEXT> Lambsdorff, J.G. 2007. <i>The Institutional Economic of Corruption and Reform: Theory, Evidence and Policy</i>. Cambridge: Cambridge University Press.</BIBTEXT>	</REF>   <REF>	    <BIBL>40</BIBL>	<BIBTEXT> LaPalombara, J. 1994. "Structural and Institutional Aspects of Corruption." <i>Social Research</i> 61, no. 2 (Summer): 325-350.</BIBTEXT>	 </REF>    <REF>	    <BIBL>41</BIBL>	  <BIBTEXT> Lederman, D.; N. Loayza; and R.R. Soares. 2005. "Accountability and Corruption: Political Institutions Matter." <i>Economics & Politics</i> 17, no. 3: 1-35.</BIBTEXT>	  </REF>      <REF>	<BIBL>42</BIBL>	<BIBTEXT> Leite, C., and J. Weideman. 1999. "Does Mother Nature Corrupt? Natural Resources, Corruption and Economic Growth." Working Paper no. 85, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>43</BIBL>   <BIBTEXT> Mauro, P. 1995. "Corruption and Growth." <i>Quarterly Journal of Economics</i> 110, no. 3: 681-712.</BIBTEXT>	 </REF>      <REF>	<BIBL>44</BIBL>    <BIBTEXT> Mocan, N. 2004. "What Determines Corruption? International Evidence from Micro Data." Working Paper no. 10460, National Bureau of Economic Research, Cambridge, MA, April.</BIBTEXT>	</REF>    <REF>	    <BIBL>45</BIBL>	  <BIBTEXT> Montinola, G., and R.W. Jackman. 2002. "Sources of Corruption: A Cross-Country Study." <i>British Journal of Political Science</i> 32, no. 1: 147-170.</BIBTEXT>	  </REF>      <REF>	<BIBL>46</BIBL>	<BIBTEXT> Paldam, M. 2002. "The Cross-Country Pattern of Corruption: Economics, Culture and the See-Saw Dynamics." <i>European Journal of Political Economy</i> 18, no. 2: 215-220.</BIBTEXT>	 </REF>      <REF>	<BIBL>47</BIBL>   <BIBTEXT> Persson, T.; G. Tabellini; and F. Trebbi. 2003. "Electoral Rules and Corruption." <i>Journal of the European Economic Association</i> 1, no. 4: 958-989.</BIBTEXT>	 </REF>      <REF>	<BIBL>48</BIBL>    <BIBTEXT> Rose-Ackerman, S. 1999. <i>Corruption and Government: Causes, Consequences, and Reform</i>. Cambridge: Cambridge University Press.</BIBTEXT>	</REF>	<REF>	   <BIBL>49</BIBL> <BIBTEXT> Sachs, J.D. 2001. "Tropical Underdevelopment." Working Paper no. 8119, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>     </REF>      <REF>	 <BIBL>50</BIBL>   <BIBTEXT> Sachs, J.D. 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income." Working Paper no. 9490. National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>	<REF>    <BIBL>51</BIBL>	<BIBTEXT> Saha, S.; R. Gounder, and J.-J. Su. 2009. "The Interaction Effect of Economic Freedom and Democracy on Corruption: A Panel Cross-Country Analysis." <i>Economics Letters</i> 105, no. 2: 173-176.</BIBTEXT> </REF>     <REF>   <BIBL>52</BIBL>	<BIBTEXT> Sandholtz, W., and W. Koetzle. 2000. "Accounting for Corruption: Economic Structure, Democracy and Trade." <i>Industrial Studies Quarterly</i> 44, no. 1: 31-50.</BIBTEXT>	</REF>	 <REF>	   <BIBL>53</BIBL>	<BIBTEXT> Schneider, B.R. 1998. "Elusive Synergy: Business-Government Relations and Development." <i>Comparative Politics</i> 31, no. 1: 101-122.</BIBTEXT>      </REF>	  <REF>     <BIBL>54</BIBL>	<BIBTEXT> Scott, J. 1972. <i>Comparative Political Corruption</i>. Englewood Cliffs, NJ: Prentice Hall.</BIBTEXT>   </REF>     <REF>	 <BIBL>55</BIBL>  <BIBTEXT> Shen, C., and J.B. Williamson. 2005. "Corruption, Democracy, Economic Freedom and State Strength: A Cross-National Analysis." <i>International Journal of Comparative Sociology</i> 46, no. 4: 327-345.</BIBTEXT>	</REF>	    <REF>	<BIBL>56</BIBL>       <BIBTEXT> Sung, H.-E. 2002. "A Convergence Approach to the Analysis of Political Corruption: A Cross-National Comparison." <i>Crime, Law and Social Change</i> 38, no. 2: 137-160.</BIBTEXT>	 </REF>      <REF>	<BIBL>57</BIBL>	 <BIBTEXT> Tanzi, V. 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures." Working Paper no. 63, International Monetary Fund, Washington, DC.</BIBTEXT>    </REF>	<REF>	 <BIBL>58</BIBL>	<BIBTEXT> Tanzi, V., and H. Davoodi. 1997. "Corruption, Public Investment and Growth." Working Paper no. 97, International Monetary Fund, Washington, DC.</BIBTEXT>   </REF>     <REF>	<BIBL>58</BIBL>  <BIBTEXT> Tavares, J., and R. Wacziarg. 2001. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:2:p:29-43




Template-Type: ReDIF-Article 1.0
Author-Name: Tomasz Jewartowski
Author-X-Name-First: Tomasz
Author-X-Name-Last: Jewartowski
Author-Name: Joanna Lizinska
Author-X-Name-First: Joanna
Author-X-Name-Last: Lizinska
Title: Short- and Long-Term Performance of Polish IPOs
Abstract:
 The paper documents short- and long-run performance of initial public offerings on the Warsaw Stock Exchange from 1998 to 2008. The study reveals positive initial market-adjusted returns of 13.95 percent and significant long-term underperformance with mean of -22.62 percent for the three-year buy-and-hold strategy. We introduce ordinary least squares regressions to find determinants of initial returns. Our findings document strong explanatory power of early aftermarket volatility, issuer's size, growth opportunities, and profitability before the offering. Moreover, those variables that can partly explain differences in initial returns can also help to shed light on the long-term underperformance issue. Our results are thus consistent with Miller's (1977) divergence of opinion hypothesis.
Journal: Emerging Markets Finance and Trade
Pages: 59-75
Issue: 2
Volume: 48
Year: 2012
Month: 3
Keywords: divergence of opinion, initial public offerings, IPO underperformance, IPO underpricing, long-run returns
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V19X383T530115M4
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R., and P. Rivoli. 1990. "Fads in the Initial Public Offering Market?" <i>Financial Management</i> 19, no. 4: 45-57.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Aggarwal, R.; R. Leal; and L. Hernandez. 1993. "The Aftermarket Performance of Initial Public Offerings in Latin America." <i>Financial Management</i> 22, no. 1: 42-53.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Alvarez, S., and V. Gonzalez. 2005. "Long-Run Performance of Initial Public Offerings in the Spanish Capital Market." <i>Journal of Business Finance and Accounting</i> 32, nos. 1-2: 325-350.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Aussenegg, W. 2000. "Privatization Versus Private Sector Initial Public Offerings in Poland." <i>Multinational Finance Journal</i> 4, nos. 1-2: 69-99.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bradley, D.J., and B.D. Jordan. 2002. "Partial Adjustment to Public Information and IPO Underpricing." <i>Journal of Financial and Quantitative Analysis</i> 37, no. 4: 595-616.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Dawson, S. 1987. "Secondary Stock Market Performance of Initial Public Offers, Hong Kong, Singapore and Malaysia: 1978-1984." <i>Journal of Business Finance and Accounting</i> 14, no. 1: 65-76.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Dong, M., and J.S. Michel. 2009. "Divergence of Opinion, Overallotment, and IPO Long-Run Performance." Working Paper, Finance Area, Schulich School of Business, York University.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Gao, Y.; C.X. Mao; and R. Zhong. 2006. "Divergence of Opinion and Long-Term Performance of Initial Public Offerings." <i>Journal of Financial Research</i> 29, no. 1: 113-129.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Ghosh, S. 2005. "Underpricing of Initial Public Offerings: The Indian Experience." <i>Emerging Markets Finance & Trade</i> 41, no. 6 (November-December): 45-57.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Fama, E.F., and K.R. French. 1993. "Common Risk Factors in the Returns on Stocks and Bonds." <i>Journal of Financial Economics</i> 33, no. 1: 3-56.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Houge, T.; T. Loughran; G. Suchanek; and X. Yan. 2001. "Divergence of Opinion, Uncertainty, and the Quality of Initial Public Offerings." <i>Financial Management</i> 30, no. 4: 5-23.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Huang, C.J., and C.G. Lin. 2007. "Earnings Management in IPO Lockup and Insider Trading. Evidence from Taiwan." <i>Emerging Markets Finance & Trade</i> 43, no. 5 (September-October): 78-91.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Ibbotson, R.G. 1975. "Price Performance of Common Stock New Issues." <i>Journal of Financial Economics</i> 2, no. 3: 235-272.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Jelic, R., and R. Briston. 2003. "Privatisation Initial Public Offerings: The Polish Experience." <i>European Financial Management</i> 9, no. 4: 457-484.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Lee, J.S.; C.T. Kuo; and P.H. Yen. 2011. "Market States and Initial Returns: Evidence from Taiwanese IPOs." <i>Emerging Markets Finance & Trade</i> 47, no. 2 (March-April): 6-20.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Levis, M. 1993. "The Long-Run Performance of Initial Public Offerings: The UK Experience 1980-1988." <i>Financial Management</i> 22, no. 1: 28-41.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Lin, C.Y.; H.T. Lee; and C.L. Lee. 2008. "One More Step, Some More Performance? An Empirical Study on Initial Public Offerings in the Taiwan Emerging Stock Market." <i>Emerging Markets Finance & Trade</i> 44, no. 4 (July-August): 6-18.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Ljungqvist, A.P. 1997. "Pricing Initial Public Offerings: Further Evidence from Germany." <i>European Economic Review</i> 41, no. 7: 1309-1320.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Ljungqvist, A.P. 2007. "IPO Underpricing." In <i>Handbook of Corporate Finance: Empirical Corporate Finance: vol. 1</i>, ed. B.E. Eckbo, pp. 395-422. Amsterdam: North-Holland.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Loughran, T., and J. Ritter. 1995. "The New Issues Puzzle." <i>Journal of Finance</i> 50, no. 1: 23-51.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Lyn, E.O., and E.J. Zychowicz. 2003. "The Performance of New Equity Offerings in Hungary and Poland." <i>Global Finance Journal</i> 14: 181-195.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Lyon, J.; B. Barber; and C. Tsai. 1999. "Improved Methods for Tests of Long-Run Abnormal Stock Returns." <i>Journal of Finance</i> 54, no. 1: 165-201.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Miller, E.M. 1977. "Risk, Uncertainty, and Divergence of Opinion." <i>Journal of Finance</i> 32, no. 4: 1151-1168.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Miller, E.M. 2000. "Long Run Underperformance of Initial Public Offerings: An Explanation." Working Paper no. 1999-18, Department of Economics and Finance, University of New Orleans.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Rajan, R., and H. Servaes. 1997. "Analyst Following of Initial Public Offerings." <i>Journal of Finance</i> 52, no. 2: 507-529.</BIBTEXT>     </REF>      <REF>	<BIBL>26</BIBL>   <BIBTEXT> Ritter, J.R. 1984. "The ‘Hot-Issue’ Market of 1980." <i>Journal of Business</i> 57, no. 2: 215-240.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Ritter, J.R. 1991. "The Long-Run Performance of Initial Public Offerings." <i>Journal of Finance</i> 46, no. 1: 3-27.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Teoh, S.H.; I. Welch; and T.J. Wong. 1998. "Earnings Management and the Long-Run Market Performance of Initial Public Offerings." <i>Journal of Finance</i> 53, no. 6: 1935-1974.</BIBTEXT>      </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:2:p:59-75




Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Stephan
Author-X-Name-First: Andreas
Author-X-Name-Last: Stephan
Author-Name: Andriy Tsapin
Author-X-Name-First: Andriy
Author-X-Name-Last: Tsapin
Author-Name: Oleksandr Talavera
Author-X-Name-First: Oleksandr
Author-X-Name-Last: Talavera
Title: Main Bank Power, Switching Costs, and Firm Performance: Theory and Evidence from Ukraine
Abstract:
 We examine firms' motivation to change their main bank and how this switch affects loans, interest payments, and firm performance. Applying treatment effect analysis to unique firm-bank matched Ukrainian data, we find that larger and more highly leveraged companies are more likely to switch their main bank. Importantly, firms tend to switch to a new main bank that holds a higher share of equity in the firm and thus has stronger power. The results also suggest that after switching, firms obtain additional access to bank loans but, on average, have lower profits due to bigger interest payments.
Journal: Emerging Markets Finance and Trade
Pages: 76-93
Issue: 2
Volume: 48
Year: 2012
Month: 3
Keywords: financial constraints, firm performance, main bank power, switching, Ukraine
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=WP02256N5508X72R
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agarwal, R., and J.A. Elston. 2001. "Bank-Firm Relationships, Financing and Firm Performance in Germany." <i>Economics Letters</i> 72, no. 2: 225-232.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Berger, A.N., and G.F. Udell. 1995. "Relationship Lending and Lines of Credit in Small Firm Finance." <i>Journal of Business</i> 68, no. 3: 351-381.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Berger, A.N.; N.H. Miller; M.A. Petersen; R.G. Rajan; and J.C. Stein. 2005. "Does Function Follow Organizational Form? Evidence from the Lending Practices of Large and Small Banks." <i>Journal of Financial Economics</i> 76, no. 2: 237-269.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Boot, A.W.A. 2000. "Relationship Banking: What Do We Know?" <i>Journal of Financial Intermediation</i> 9, no. 1: 7-25.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Brown, M.; T. Jappelli; and M. Pagano. 2009. "Information Sharing and Credit: Firm-Level Evidence from Transition Countries." <i>Journal of Financial Intermediation</i> 18, no. 2: 151-172.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Buch, C. 1998. "Toward Universal Banking—Risks and Benefits for Transition Economies." In <i>Competition and Convergence in Financial Markets: The German and Anglo-Saxon Models</i>, ed. S. Black and M. Moersch, pp. 333-368. Amsterdam: Elsevier.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Claessens, S., and S. Djankov. 1999. "Ownership Concentration and Corporate Performance in the Czech Republic." <i>Journal of Comparative Economics</i> 27, no. 3: 498-513.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> D'Auria, C.; A. Foglia; and P.M. Reedtz. 1999. "Bank Interest Rates and Credit Relationships in Italy." <i>Journal of Banking & Finance</i> 23, no. 7: 1067-1093.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Degryse, H., and S. Ongena. 2001. "Bank Relationships and Firm Profitability." <i>Financial Management</i> 30, no. 1: 9-34.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Degryse, H.; L. Laeven; and S. Ongena. 2009. "The Impact of Organizational Structure and Lending Technology on Banking Competition." <i>Review of Finance</i> 13, no. 2: 225-259.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Detragiache, E.; P. Garella; and L. Guiso. 2000. "Multiple Versus Single Banking Relationships: Theory and Evidence." <i>Journal of Finance</i> 55, no. 3: 1133-1161.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Dewenter, K.L., and P.H. Malatesta. 2001. "State-Owned and Privately Owned Firms: An Empirical Analysis of Profitability, Leverage, and Labor Intensity." <i>American Economic Review</i> 91, no. 1: 320-334.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Domanski, D. 2005. "Foreign Banks in Emerging Market Economies: Changing Players, Changing Issues." <i>BIS Quarterly Review</i> 4 (December): 69-81.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Elsas, R. 2005. "Empirical Determinants of Relationship Lending." <i>Journal of Financial Intermediation</i> 14, no. 1: 32-57.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Elsas, R., and J.P. Krahnen. 1998. "Is Relationship Lending Special? Evidence from Credit-File Data in Germany." <i>Journal of Banking & Finance</i> 22, nos. 10-11: 1283-1316.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Farinha, L.A., and J. Santos. 2002. "Switching from Single to Multiple Bank Lending Relationships: Determinants and Implications." <i>Journal of Financial Intermediation</i> 11, no. 2: 124-151.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Fukuda, S.; M. Kasuya; and J. Nakajima. 2006. "Deteriorating Bank Health and Lending in Japan: Evidence from Unlisted Companies Undergoing Financial Distress." <i>Journal of the Asia Pacific Economy</i> 11, no. 4: 482-501.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Garcia-Teruel, P.J., and P. Martinez-Solano. 2010. "Ownership Structure and Debt Maturity: New Evidence from Spain." <i>Review of Quantitative Finance and Accounting</i> 35, no. 4: 473-491.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Giannetti, M., and S. Ongena. 2008. "Lending by Example: Direct and Indirect Effects of Foreign Banks in Emerging Markets." Discussion Paper no. 6958, Centre for Economic and Policy Research, London.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Giannetti, M., and S. Ongena. 2009. "Financial Integration and Firm Performance: Evidence from Foreign Bank Entry in Emerging Markets." <i>Review of Finance</i> 13, no. 2: 181-223.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	<BIBTEXT> Gopalan, R.; G.F. Udell; and V. Yerramilli. 2011. "Why Do Firms Form New Banking Relationships?" <i>Journal of Financial and Quantitative Analysis</i> 46, no. 5: 1335-1365.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Hoshi, T.; A. Kashyap; and D. Sharfstein. 1990. "The Role of Banks in Reducing the Costs of Financial Distress in Japan." <i>Journal of Financial Economics</i> 27, no. 1: 67-88.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Hubbard, G.R.; K.N. Kuttner; and D.N. Palia. 2002. "Are There Bank Effects in Borrowers' Costs of Funds? Evidence from a Matched Sample of Borrowers and Banks." <i>Journal of Business</i> 75, no. 4: 559-582.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Ioannidou, V., and S. Ongena. 2010. "Time for a Change: Loan Conditions and Bank Behavior When Firms Switch Banks." <i>Journal of Finance</i> 65, no. 5: 1847-1877.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Kim, M.; D. Kliger; and B. Vale. 2003. "Estimating Switching Costs: The Case of Banking." <i>Journal of Financial Intermediation</i> 12, no. 1: 25-56.</BIBTEXT>     </REF>      <REF>	<BIBL>26</BIBL>   <BIBTEXT> Klemperer, P. 1995. "Competition When Consumers Have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade." <i>Review of Economic Studies</i> 62, no. 4: 515-539.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Morck, R.; M. Nakamura; and A. Shivdasani. 2000. "Banks, Ownership Structure, and Firm Value in Japan." <i>Journal of Business</i> 73, no. 4: 539-567.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Ongena, S., and D.C. Smith. 2001. "The Duration of Bank Relationships." <i>Journal of Financial Economics</i> 61, no. 3: 449-475.</BIBTEXT>      </REF>    <REF>	    <BIBL>29</BIBL>	  <BIBTEXT> Ozkan, F.G.; A. Kipici; and M. Ismihan. 2010. "The Banking Sector, Government Bonds, and Financial Intermediation: The Case of Emerging Market Countries." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 55-70.</BIBTEXT>	  </REF>      <REF>	<BIBL>30</BIBL>	<BIBTEXT> Rajan, R.G. 1992. "Insiders and Outsiders: The Choice Between Informed and Arm's-Length Debt." <i>Journal of Finance</i> 47, no. 4: 1367-1400.</BIBTEXT>	 </REF>      <REF>	<BIBL>31</BIBL>   <BIBTEXT> Rajan, R.G. 2002. "An Investigation into the Economics of Extending Bank Powers." <i>Journal of Emerging Market Finance</i> 1, no. 2: 125-156.</BIBTEXT>	 </REF>      <REF>	<BIBL>32</BIBL>    <BIBTEXT> Rajan, R.G., and L. Zingales. 1995. "What Do We Know About Capital Structure? Some Evidences from International Data." <i>Journal of Finance</i> 50, no. 5: 1421-1460.</BIBTEXT>	</REF>	<REF>	   <BIBL>33</BIBL> <BIBTEXT> Rajan, R.G., and L. Zingales. 1998. "Which Capitalism? Lessons from the East Asian Crisis." <i>Journal of Applied Corporate Finance</i> 11, no. 3: 40-48.</BIBTEXT>     </REF>      <REF>	 <BIBL>34</BIBL>   <BIBTEXT> Schenone, C. 2010. "Lending Relationships and Information Rents: Do Banks Exploit Their Information Advantages?" <i>Review of Financial Studies</i> 23, no. 3: 1149-1199.</BIBTEXT>      </REF>	<REF>    <BIBL>35</BIBL>	<BIBTEXT> Sharpe, S.A. 1990. "Asymmetric Information, Bank Lending, and Implicit Contracts: A Stylized Model of Customer Relationships." <i>Journal of Finance</i> 45, no. 4: 1069-1087.</BIBTEXT> </REF>     <REF>   <BIBL>36</BIBL>	<BIBTEXT> Sheard, P. 1989. "The Main Bank System and Corporate Monitoring and Control in Japan." <i>Journal of Economic Behavior and Organization</i> 11, no. 3: 399-422.</BIBTEXT>	</REF>	 <REF>	   <BIBL>37</BIBL>	<BIBTEXT> Shen, C.-H., and A.-H. Huang. 2003. "Are Performances of Banks and Firms Linked? And If So, Why?" <i>Journal of Policy Modeling</i> 25, no. 4: 397-414.</BIBTEXT>      </REF>	  <REF>   <BIBL>38</BIBL>	<BIBTEXT> Singh, A. 2003. "Competition, Corporate Governance and Selection in Emerging Markets." <i>Economic Journal</i> 113, no. 491: F443-F464.</BIBTEXT>   </REF>     <REF>	 <BIBL>39</BIBL>  <BIBTEXT> Stephan, A.; O. Talavera; and A. Tsapin. 2011. "Corporate Debt Maturity Choice in Emerging Financial Markets." <i>Quarterly Review of Economics and Finance</i> 51, no. 2: 141-151.</BIBTEXT>	</REF>	    <REF>	<BIBL>40</BIBL>       <BIBTEXT> Stiglitz, J.E. 1989. "Financial Markets and Development." <i>Oxford Review of Economic Policy</i> 5, no. 4: 55-69.</BIBTEXT>	 </REF>      <REF>	<BIBL>41</BIBL>	 <BIBTEXT> Talavera, O.; L. Xiong; and X. Xiong. 2012. "Social Capital and Access to Bank Financing: The Case of Chinese Entrepreneurs." <i>Emerging Markets Finance & Trade</i> 48, no. 1 (January-February): 57-71.</BIBTEXT>    </REF>	<REF>	 <BIBL>42</BIBL>	<BIBTEXT> Verbeek, M. 1990. "On the Estimation of a Fixed Effects Model with Selectivity Bias." <i>Economic Letters</i> 34, no. 3: 267-270.</BIBTEXT>   </REF>     <REF>	<BIBL>43</BIBL>  <BIBTEXT> Verbeek, M., and T. Nijman. 1992. "Testing for Selectivity Bias in Panel Data Models." <i>International Economic Review</i> 33, no. 3: 681-703.</BIBTEXT>	 </REF>      <REF>	<BIBL>44</BIBL>  <BIBTEXT> Vesala, T. 2007. "Switching Costs and Relationship Profits in Bank Lending." <i>Journal of Banking and Finance</i> 31, no. 2: 477-493.</BIBTEXT>	</REF>	    <REF>	<BIBL>45</BIBL>   <BIBTEXT> von Thadden, E.-L. 2004. "Asymmetric Information, Bank Lending and Implicit Contracts: The Winner's Curse." <i>Finance Research Letters</i> 1, no. 1: 11-23.</BIBTEXT>      </REF>     <REF>	<BIBL>46</BIBL>	  <BIBTEXT> Weinstein, D.E., and Y. Yafeh. 1998. "On the Cost of a Bank-Centered Financial System: Evidence from the Changing Main Bank Relations in Japan." <i>Journal of Finance</i> 53, no. 2: 635-672.</BIBTEXT>      </REF>	 <REF>	    <BIBL>47</BIBL>	<BIBTEXT> Yao, J., and H. Ouyang. 2007. "Dark-Side Evidence on Bank-Firm Relationship in Japan." <i>Japan and the World Economy</i> 19, no. 2: 198-213.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:2:p:76-93




Template-Type: ReDIF-Article 1.0
Author-Name: Hanan Morsy
Author-X-Name-First: Hanan
Author-X-Name-Last: Morsy
Title: Current Account Determinants for Oil-Exporting Countries
Abstract:
 The paper characterizes the main determinants of the medium-term current account balance for oil-exporting countries using dynamic panel estimation techniques. It includes a large number of oil-exporting countries and extends the specifications commonly used in the literature to include an oil wealth variable as well as a proxy for the degree of maturity in oil production. The results reveal that factors that matter in determining the equilibrium current account balance of oil-exporting counties are fiscal balance, oil balance, oil wealth, age dependency, economic growth, and degree of oil production-related imports.
Journal: Emerging Markets Finance and Trade
Pages: 122-133
Issue: 3
Volume: 48
Year: 2012
Month: 3
Keywords: current account, oil exporters
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=05L14742H05G184N
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bernheim, D. 1987. "The Ricardian Equivalence: An Evaluation of Theory and Evidence." Working Paper no. 2330, National Bureau for Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Blundell, R., and S. Bond. 1998. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models." <i>Journal of Econometrics</i> 87, no. 1: 115-143.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Chinn, M., and E. Prasad. 2003. "Medium-Term Determinants of Current Accounts in Industrial and Developing Countries: An Empirical Exploration." <i>Journal of International Economics</i> 59, no. 1: 47-76.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Debelle, G., and H. Faruqee. 1996. "What Determines the Current Account? A Cross-Sectional and Panel Approach." Working Paper no. 96/58, International Monetary Fund, Washington, DC.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Kandil, M., and H. Morsy. 2009. "Fiscal Stimulus and Credibility in Emerging Countries." Working Paper no. 10/123, International Monetary Fund, Washington, DC.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Lane, P., and G. M. Milesi-Ferretti. 2002. "External Wealth, the Trade Balance, and the Real Exchange Rate." <i>European Economic Review</i> 46 (June): 1049-1071.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Lane, P., and G. M. Milesi-Ferretti. 2007. "The External Wealth of Nations Mark II: Revised and Extended Estimates of Foreign Assets and Liabilities, 1970-2004." <i>Journal of International Economics</i> 73, no. 2: 223-250.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Lee, J.; G. M. Milesi-Ferretti; J. Ostry; A. Prati; and L. A. Ricci. 2008. "Exchange Rate Assessments: CGER Methodologies." Occasional Paper no. 261, International Monetary Fund, Washington, DC.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Sachs, J. 1981. "The Current Account and Macroeconomic Adjustment in the 1970s." <i>Brookings Papers on Economic Activity</i> 1: 201-268.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Williamson, J. 1994. <i>Estimating Equilibrium Exchange Rates.</i> Washington, DC: Institute of International Economics.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:3:p:122-133




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Yuan Chen
Author-X-Name-First: Ming-Yuan
Author-X-Name-Last: Chen
Title: Entry Mode Choice and Performance: Evidence from Taiwanese FDI in China
Abstract:
 This paper examines entry mode choices between wholly owned subsidiaries (WOSs) and joint ventures (JVs) and the impact on performance for Taiwanese foreign direct investment in China. Taiwan and China share common cultural traits, so Taiwanese investors inherently prefer WOSs because these investors are acquainted with local conditions in China. This paper shows that even if WOSs are a natural choice, transaction cost theory is applicable in explaining the adoption of JVs by Taiwanese firms when investing in China. Firms that choose WOSs generally have higher sales growth and superior profitability. However, the smaller the subsidiary and the less experienced the firm, the more likely that JVs will have better performance.
Journal: Emerging Markets Finance and Trade
Pages: 31-51
Issue: 3
Volume: 48
Year: 2012
Month: 5
Keywords: bivariate probit model, entry mode choice, performance, transaction cost theory, treatment effects model
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=508401732647357T
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Anderson, E., and H. Gatignon. 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions." <i>Journal of International Business Studies</i> 17, no. 3: 1-26.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Asiedu, E., and H. S. Esfahani. 2001. "Ownership Structure in Foreign Direct Investment Projects." <i>Review of Economics</i> 83, no. 4: 647-662.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bell, J. 1995. "The Internationalization of Small Computer Software Firms: A Further Challenge to Stage Theories." <i>European Journal of Marketing</i> 29, no. 8: 60-75.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bhaumik, S. K., and S. Gelb. 2005. "Determinants of Entry Mode Choice of MNCs in Emerging Markets: Evidence from South Africa and Egypt." <i>Emerging Markets Finance & Trade</i> 41, no. 2 (March-April): 5-24.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Blodgett, L. L. 1991. "Partner Contributions as Predictors of Equity Share in International Joint Ventures." <i>Journal of International Business Studies</i> 22, no. 1: 63-78.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Brouthers, K. D. 2002. "Institutional, Cultural and Transaction Cost Influences on Entry Mode Choice and Performance." <i>Journal of International Business Studies</i> 33, no. 2: 203-221.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Brouthers, K. D., and G. Nakos. 2004. "SME Entry Mode Choice and Performance: A Transaction Cost Perspective." <i>Entrepreneurship Theory and Practice</i> 28, no. 3: 229-247.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Brouthers, K. D.; L. E. Brouthers; and S. Werner. 2003. "Transaction Cost-Enhanced Entry Mode Choices and Firm Performance." <i>Strategic Management Journal</i> 24, no. 12: 1239-1248.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chang, S. J., and P. M. Rosenzweig. 2001. "The Choice of Entry Mode in Sequential Foreign Direct Investment." <i>Strategic Management Journal</i> 22, no. 8: 747-776.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Chen, H., and T. J. Chen. 1998. "Network Linkages and Location Choice in Foreign Direct Investment." <i>Journal of International Business Studies</i> 29, no. 3: 445-467.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> Chen, S. S., and J. F. Hennart. 2002. "Japanese Investors' Choice of Joint Ventures Versus Wholly Owned Subsidiaries in the U. S.: The Role of Market Barriers and Firm Capabilities." <i>Journal of International Business Studies</i> 33, no. 2: 1-18.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Coviello, N., and H. Munro. 1997. "Network Relationships and the Internationalization Process of Small Software Firms." <i>International Business Review</i> 6, no. 1: 361-386.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Delios, A., and P. W. Beamish. 1999. "Ownership Strategy of Japanese Firms: Transactional, Institutional, and Experience Influences." <i>Strategic Management Journal</i> 20, no. 10: 915-933.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Gatignon, H., and E. Anderson. 1988. "The Multinational Corporation's Degree of Control over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation." <i>Journal of Law, Economics and Organization</i> 4, no. 4: 305-336.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Gomes-Casseres, B. 1989. "Ownership Structures of Foreign Subsidiaries." <i>Journal of Economic Behavior and Organizations</i> 11, no. 1: 1-25.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Greene, W. 1981. "Sample Selection Bias as a Specification Error: Comment." <i>Econometrica</i> 49, no. 3: 795-798.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Greene, W. 2003. <i>Econometric Analysis</i>, 5th ed. New York: Prentice Hall.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Greene, W. 2007. <i>Limdep Version 9.0 Reference Guide.</i> Plainview, TX: Econometric Software.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Heckman, J. 1979. "Sample Selection Bias as a Specification Error." <i>Econometrica</i> 47, no. 1: 153-161.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Hennart, J. F. 1982. <i>A Theory of Multinational Enterprise.</i> Ann Arbor: University of Michigan Press.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Hennart, J. F. 1991. "The Transaction Cost Theory of Joint Ventures: An Empirical Study of Japanese Subsidiaries in the United States." <i>Management Science</i> 37, no. 4: 483-497.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Hennart, J. F., and J. Larimo. 1998. "The Impact of Culture on the Strategy of Multinational Enterprise: Does National Origin Affect Ownership Decisions?" <i>Journal of International Business Studies</i> 29, no. 1: 515-538.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Hennart, J. F., and M. Zeng. 2005. "Structural Determinants of Joint Venture Performance." <i>European Management Review</i> 2, no. 2: 105-115.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Hill, C. W. L.; P. Hwang; and W. C. Kim. 1990. "An Eclectic Theory of the Choice of International Entry Mode." <i>Strategic Management Journal</i> 11, no. 2: 117-128.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Masten, S. E. 1993. "Transaction Cost, Mistakes, and Performance: Assessing the Importance of Governance." <i>Managerial and Decision Economics</i> 14, no. 2: 119-129.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Mutinelli, M., and L. Piscitello. 1998. "The Entry Mode Choice of MNEs: An Evolutionary Approach." <i>Research Policy</i> 27, no. 5: 491-506.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Quer, D., and E. Claver. 2007. "Determinants of Spanish Foreign Direct Investment in Morocco." <i>Emerging Markets Finance & Trade</i> 43, no. 2 (March-April): 19-32.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Shaver, J. M. 1998. "Accounting for Endogeneity When Assessing Strategy Performance: Does Entry Mode Choice Affect FDI Survival?" <i>Management Science</i> 44, no. 4: 571-585.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Shrader, R. C. 2001. "Collaboration and Performance in Foreign Markets: The Case of Young High-Technology Manufacturing Firms." <i>Academy of Management Journal</i> 44, no. 1: 45-60.</BIBTEXT>      </REF>	  <REF>   <BIBL>30</BIBL>	<BIBTEXT> Tatoglu, E.; M. Demirbag; and G. Kaplan. 2003. "Motives for Retailer Internationalization to Central and Eastern Europe." <i>Emerging Markets Finance & Trade</i> 39, no. 4 (July-August): 40-57.</BIBTEXT>	 </REF>    <REF>	    <BIBL>31</BIBL>	  <BIBTEXT> Teece, D. J. 1980. "Economies of Scope and the Scope of the Firm." <i>Journal of Economics Behavior and Organization</i> 1, no. 3: 223-247.</BIBTEXT>	  </REF>      <REF>	<BIBL>32</BIBL>	<BIBTEXT> Teece, D. J. 1982. "Towards an Economic Theory of the Multiproduct Firm." <i>Journal of Economics Behavior and Organization</i> 3, no. 1: 39-63.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>   <BIBTEXT> Wei Y.; B. Liu; and X. Liu. 2005. "Entry Modes of Foreign Direct Investment in China: A Multinomial Logit Approach." <i>Journal of Business Research</i> 58, no. 11: 1495-1505.</BIBTEXT>	 </REF>      <REF>	<BIBL>34</BIBL>    <BIBTEXT> Williamson, O. E. 1975. <i>Markets and Hierarchies.</i> New York: Free Press.</BIBTEXT>	</REF>	<REF>	   <BIBL>35</BIBL> <BIBTEXT> Williamson, O. E. 1985. <i>The Economic Institutions of Capitalism.</i> New York: Free Press.</BIBTEXT>     </REF>      <REF>	 <BIBL>36</BIBL>   <BIBTEXT> Yiu, D., and S. Makino. 2002. "The Choice Between Joint Venture and Wholly Owned Subsidiary: An Institutional Perspective." <i>Organization Science</i> 13, no. 6: 667-683.</BIBTEXT>      </REF>	<REF>    <BIBL>37</BIBL>	<BIBTEXT> Yvrande-Billon, A., and S. Saussier. 2005. "Do Organization Choices Matter? Assessing the Importance of Governance Through Performance Comparisons." In <i>New Ideas in Contracting and Organizational Economics Research</i>, ed. H. S. James Jr., pp. 69-86. Hauppauge, NY: Nova Science.</BIBTEXT> </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:3:p:31-51




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 3
Volume: 48
Year: 2012
Month: 5
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B3255G78787XP81W
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:3:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: William T. Lin
Author-X-Name-First: William T.
Author-X-Name-Last: Lin
Author-Name: Shih-Chuan Tsai
Author-X-Name-First: Shih-Chuan
Author-X-Name-Last: Tsai
Author-Name: David S. Sun
Author-X-Name-First: David S.
Author-X-Name-Last: Sun
Title: Search Costs and Investor Trading Activity: Evidence from Limit Order Books
Abstract:
 In this study, we analyze investor trading behavior based not on information-related assumptions but on the search model of Vayanos and Wang (2007). Our study shows that search cost dictates trading polarization across investors, firm size, and time of day. We find that individual investors prefer to trade at market open, while institutional investors trade more heavily near market close. Trading costs indicate that it is less costly for institutional investors to trade large cap stocks at market close than at open. Search cost is related significantly to order-based market liquidity measures depending on time of day, market capitalizations, and investor type.
Journal: Emerging Markets Finance and Trade
Pages: 4-30
Issue: 3
Volume: 48
Year: 2012
Month: 5
Keywords: execution cost, limit order book, liquidity, market depth, search model
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C3L4M2U732337892
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahmed, E.; B. Rosser Jr.; and J. Y. Uppal. 2010. "Emerging Markets and Stock Market Bubbles." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 23-40.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Back, K.; H. C. Cao; and G. A. Willard. 2000. "Imperfect Competition Among Informed Traders." <i>Journal of Finance</i> 55, no. 5: 2117-2155.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Barber, B. M.; T. Odean; and N. Zhu. 2009. "Systematic Noise." <i>Journal of Financial Markets</i> 12, no. 4: 547-569.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bloomfield, R.; M. O'Hara; and G. Saar. 2005. "The ‘Make or Take’ Decision in an Electronic Market: Evidence on the Evolution of Liquidity." <i>Journal of Financial Economics</i> 75, no. 1: 165-199.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Chan, K.; A. J. Menkveld; and Z. Yang. 2007. "The Informativeness of Domestic and Foreign Investors' Stock Trades: Evidence from the Perfectly Segmented Chinese Market." <i>Journal of Financial Markets</i> 10, no. 4: 391-415.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Diamond, P. 1982. "Aggregate Demand Management in Search Equilibrium." <i>Journal of Political Economy</i> 90, no. 5: 881-894.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Dorn, D.; G. Huberman; and P. Sengmueller. 2008. "Correlated Trading and Returns." <i>Journal of Finance</i> 58, no. 2: 885-920.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Duffie, D.; N. Gârleanul and L. H. Pedersen. 2002. "Securities Lending, Shorting, and Pricing." <i>Journal of Financial Economics</i> 66, nos. 2-3: 307-339.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Foucault, T.; O. Kadam; and E. Kandel. 2005. "Limit Order Book as a Market for Liquidity." <i>Review of Financial Studies</i> 18, no. 4: 1171-1218.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Foucault, T.; S. Moinas; and E. Theissen. 2007. "Does Anonymity Matter in Electronic Limit Order Markets?" <i>Review of Financial Studies</i> 20, no. 5: 1707-1747.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> Glosten, L., and P. Milgrom. 1985. "Bid, Ask, and Transaction Prices in a Specialist Market with Heterogeneously Informed Traders." <i>Journal of Financial Economics</i> 14, no. 1: 71-100.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Gunduz, L., and A. Hatemi-J. 2005. "Stock Price and Volume Relation in Emerging Markets." <i>Emerging Markets Finance & Trade</i> 41, no. 1 (January-February): 29-44.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Hu, S. 2006. "A Simple Estimate of Noise and Its Determinant in a Call Auction Market." <i>International Review of Financial Analysis</i> 15, nos. 4-5: 348-362.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Kang, W., and W. Yeo. 2008. "Liquidity Beyond the Best Quote: A Study of the NYSE Limit Order Book." Working Paper, Business School, National University of Singapore.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> McKenzie, M. 2007. "Technical Trading Rules in Emerging Markets and the 1997 Asian Currency Crises." <i>Emerging Markets Finance & Trade</i> 43, no. 4 (July-August): 46-73.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Stoll, H. R. 2000. "Friction." <i>Journal of Finance</i> 55, no. 4: 1479-1514.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Ting, H. 2009. "Does Corporate Governance Matter to Institutional Investors?" <i>Journal of Management</i> 26, no. 3: 233-253.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Vayanos, D., and T. Wang. 2007. "Search and Endogenous Concentration of Liquidity in Asset Markets." <i>Journal of Economic Theory</i> 136, no. 1: 66-104.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Vayanos, D., and P. Weill. 2008. "A Search-Based Theory of the On-the-Run Phenomenon." <i>Journal of Finance</i> 63, no. 3: 1361-1398.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Yan, X., and Z. Zhang. 2009. "Institutional Investors and Equity Returns: Are Short-Term Institutions Better Informed?" <i>Review of Financial Studies</i> 22, no. 1: 893-924.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Zhou, H.; J. Geppert; and D. Kong. 2010. "An Anatomy of Trading Strategies, Evidence from China." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 66-79.</BIBTEXT> </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:3:p:4-30




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Frömmel
Author-X-Name-First: Michael
Author-X-Name-Last: Frömmel
Author-Name: Frederick Van Gysegem
Author-X-Name-First: Frederick
Author-X-Name-Last: Van Gysegem
Title: Spread Components in the Hungarian Forint-Euro Market
Abstract:
 We apply the spread decomposition model by Huang and Stoll (1997) to a new data set on the Hungarian forint/euro interbank market. In contrast to previous results, we cover a minor market over a long time span. We find a significant inventory effect, and we find that spread size significantly increases with trade size. Overall, this work confirms the predictions from various theoretical models on a small and less-liquid market. In comparison with other studies, the size of the market, institutional differences between markets, and specificities of the data set seem to play an important role.
Journal: Emerging Markets Finance and Trade
Pages: 52-69
Issue: 3
Volume: 48
Year: 2012
Month: 5
Keywords: adverse selection, foreign exchange, Hungary, inventory, microstructure, spread
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D2K838XM566Q8930
File-Format: text/html
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"Information Effects on the Bid-Ask Spread." <i>Journal of Finance</i> 38, no. 5: 1457-1469.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> Ding, L. 2009. "Bid-Ask Spread and Order Size in the Foreign Exchange Market: An Empirical Investigation." <i>International Journal of Finance and Economics</i> 14, no. 1: 98-105.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Easley, D., and M. O'Hara. 1987. "Price, Trade Size and Information in Securities Markets." <i>Journal of Financial Economics</i> 19, no. 1: 69-90.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Foucault, T.; O. Kadan; and E. Kandel. 2005. "Limit Order Book as a Market for Liquidity." <i>Review of Financial Studies</i> 18, no. 4: 1171-1217.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Frömmel, M.; N. Kiss M.; and K. Pintér. 2011. 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"The Components of the Bid-Ask Spread: A General Approach." <i>Review of Financial Studies</i> 10, no. 4: 995-1034.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Kang, J., and D. Ryu. 2010. "Which Trades Move Asset Prices? An Analysis of Futures Trading Data." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 7-22.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Kyle, A. S. 1985. "Continuous Auctions and Insider Trading." <i>Econometrica</i> 53, no. 6: 1315-1336.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Lin, C.-Y.; R.-S. Wu; and T. Chen. 2010. "Taiwan's Foreign Exchange Market—Volatile but Still Efficient? Evidence from Intraday Data." <i>Emerging Markets Finance & Trade</i> 46, no. 1 (January-February): 33-41.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Linnainmaa, J. T., and I. Rosu. 2009. "Weather and Time Series Determinants of Liquidity in a Limit Order Market." 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:3:p:52-69




Template-Type: ReDIF-Article 1.0
Author-Name: Abubakr Saeed
Author-X-Name-First: Abubakr
Author-X-Name-Last: Saeed
Author-Name: Olusegun Vincent
Author-X-Name-First: Olusegun
Author-X-Name-Last: Vincent
Title: Bank Concentration and Firm Investment: Empirical Evidence from India
Abstract:
 This paper investigates the impact of bank concentration on firm-level investment across firm groups classified according to size, investment destination, and debt maturity structure. Using data of 302 manufacturing firms for the period 2000-2009, we show that elevated financial constraints are associated with small and medium-size enterprises and firms that are dependent on short-term debt and exhibit high levels of sensitivity of investment to cash flow. Our empirical finding confirms that bank concentration exerts a positive impact on firms' financial constraints on investment. This effect is more pronounced for small firms and firms dependent on short-term debt. However, our results are indifferent to domestic versus foreign investing firm groups.
Journal: Emerging Markets Finance and Trade
Pages: 85-105
Issue: 3
Volume: 48
Year: 2012
Month: 5
Keywords: developing economy, financial constraints, financial reforms, internal finance, investment-cash flow sensitivity
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=F33X01P76886114P
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abor, J., and N. Biekpe. 2007. "Small Business Reliance on Bank Financing in Ghana." <i>Emerging Markets Finance & Trade</i> 43, no. 4 (July-August): 93-102.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Alti, A. 2003. "How Sensitive Is Investment to Cash Flow When Financing Is Frictionless?" <i>Journal of Finance</i> 58, no. 2: 707-722.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Arellano, M., and S. Bond. 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations." <i>Review of Economic Studies</i> 58, no. 2: 277-297.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Athey, M., and P. Thomas. 1994. "Internal Funds and Corporate Investment in India." <i>Journal of Developing Economics</i> 45, no. 2: 287-303.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Badarau-Semenescu, C., and A. Semenescu. 2010. 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"The Relationship Between Firm Investment and Financial Status." <i>Journal of Finance</i> 54, no. 2: 673-692.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Cleary, S. 2006. "International Corporate Investment and the Relationships Between Financial Constraint Measures." <i>Journal of Banking and Finance</i> 30, no. 5: 1559-1580.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Das, S. K. 2010. "Financial Liberalization and Banking Sector Efficiency: The Indian Experience." Paper presented at the 12th Money and Finance Conference, Indira Gandhi Institute of Development Research Mumbai, November 11-12.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Demirgüç-Kunt, A., and V. Maksimovic. 1998. "Law, Finance and Firm Growth." <i>Journal of Finance</i> 53, no. 6: 2107-2137.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> D'Espallier, B., and F. López-Iturriaga. 2009. 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"Outward Orientation, Investment and Finance Constraints: A Study of Indian Firms." <i>Journal of Development Studies</i> 37, no. 4: 133-149.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Ghosh, S. 2006. "Did Financial Liberalization Ease Financing Constraints? Evidence from Indian Firm-Level Data." <i>Emerging Market Review</i> 7, no. 2: 176-190.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Gilchrist, S., and C. Himmelberg. 1998. "Investment, Fundamentals and Finance." Working Paper 6652, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Gormley, A. T. 2010. "The Impact of Foreign Bank Entry in Emerging Markets: Evidence from India." <i>Journal of Financial Intermediation</i> 19, no. 1: 26-51.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Guariglia, A., and S. Mateut. 2005. "Inventory Investment, Global Engagement and Financial Constraints in the UK: Evidence from Micro Data." GEP Research Paper no. 05/23, Lever-hulme Centre for Research on Globalization and Economic Policy, University of Nottingham.</BIBTEXT>      </REF>	  <REF>   <BIBL>30</BIBL>	<BIBTEXT> Guzman, M. G. 2000. "Bank Structure, Capital Accumulation and Growth: A Simple Macroeconomic Model." <i>Economic Theory</i> 16, no. 2: 421-455.</BIBTEXT>	 </REF>    <REF>	    <BIBL>31</BIBL>	  <BIBTEXT> Hannan, T. H. 1991. "Bank Commercial Loan Markets and the Role of Market Structure: Evidence from Surveys of Commercial Lending." <i>Journal of Banking and Finance</i> 15, no. 1: 133-149.</BIBTEXT>	  </REF>      <REF>	<BIBL>32</BIBL>	<BIBTEXT> Hoshi, T.; A. Kashyap; and D. Scharfstein. 1991. "Corporate Structure, Liquidity and Investment: Evidence from Japanese Industrial Groups." <i>Quarterly Journal of Economics</i> 106, no. 1: 33-60.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>   <BIBTEXT> Hovakimian, G., and S. Titman. 2006. 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"Law and Finance." <i>Journal of Political Economy</i> 106, no. 6: 1113-1155.</BIBTEXT> </REF>     <REF>	    <BIBL>38</BIBL>	  <BIBTEXT> Laeven, L. 2002. "Does Financial Liberalization Reduce Financing Constraints?" <i>Financial Management</i> 32, no. 1: 5-34.</BIBTEXT>	  </REF>      <REF>	<BIBL>39</BIBL>	<BIBTEXT> Lang, L.; E. Ofek; and R. M. Stulz. 1996. "Leverage, Investment and Firm Growth." <i>Journal of Financial Economics</i> 40, no. 1: 3-29.</BIBTEXT>	 </REF>      <REF>	<BIBL>40</BIBL>   <BIBTEXT> Lucke, L.; G. S. Beatriz; and J. Zotti. 2007. "Assessing Economic and Fiscal Reforms in Lebanon: A Dynamic CGE Analysis with Debt Constraints." <i>Emerging Markets Finance & Trade</i> 43, no. 1 (January-February): 35-63.</BIBTEXT>	 </REF>      <REF>	<BIBL>41</BIBL>    <BIBTEXT> Manole, V., and M. Spatareanu, 2010. "Exporting, Capital Investment and Financial Constraints." <i>Review of World Economics</i> 146, no. 1: 23-37.</BIBTEXT>	</REF>	<REF>	   <BIBL>42</BIBL> <BIBTEXT> Marquez, R. 2002. "Competition, Adverse Selection and Information Dispersion in the Banking Industry." <i>Review of Financial Studies</i> 15, no. 3: 901-926.</BIBTEXT>     </REF>      <REF>	 <BIBL>43</BIBL>   <BIBTEXT> Modigliani, F., and M. H. Miller. 1958. "The Cost of Capital, Corporation Finance, and the Theory of Investment." <i>American Economic Review</i> 48, no. 3: 261-297.</BIBTEXT>      </REF>     <REF>	    <BIBL>44</BIBL>	  <BIBTEXT> Moyen, N. 2004. "Investment-Cash Flow Sensitivities: Constrained Versus Unconstrained Firms." <i>Journal of Finance</i> 59, no. 5: 2061-2092.</BIBTEXT>	  </REF>      <REF>	<BIBL>45</BIBL>	<BIBTEXT> Ogura, Y. 2008. "Lending Competition, Relationship Banking, and Credit Availability for Entrepreneurs." Working paper, Hitotsubashi University Institute of Economic Research.</BIBTEXT>	 </REF>      <REF>	<BIBL>46</BIBL>   <BIBTEXT> Pal, R., and R. Kozhan. 2009. "Firms' Investment Under Financial Constraints: A Euro Area Investigation." <i>Applied Financial Economics</i> 19, no. 20: 1611-1624.</BIBTEXT>	 </REF>      <REF>	<BIBL>47</BIBL>    <BIBTEXT> Peng, M. W. 1997. "Firm Growth in Transitional Economies: Three Longitudinal Cases from China, 1989-96." <i>Organizational Studies</i> 18, no. 3: 385-413.</BIBTEXT>	</REF>	<REF>	   <BIBL>48</BIBL> <BIBTEXT> Petersen, M., and R. Rajan. 1995. "The Effect of Credit Market Competition on Lending Relationships." <i>Quarterly Journal of Economics</i> 110, no. 2: 407-443.</BIBTEXT>     </REF>      <REF>	 <BIBL>49</BIBL>   <BIBTEXT> Poncet, S.; W. Steingress; and H. Vandenbussche. 2010. "Financial Constraints in China: Firm-Level Evidence." <i>China Economic Review</i> 21, no. 3: 411-422.</BIBTEXT>      </REF>	<REF>    <BIBL>50</BIBL>   <BIBTEXT> Ratti, R. A.; S. Lee; and Y. Seol. 2008. "Bank Concentration and Financial Constraints on Firm-Level Investment in Europe." <i>Journal of Banking and Finance</i> 32, no. 12: 2684-2694.</BIBTEXT> </REF>     <REF>   <BIBL>51</BIBL>	<BIBTEXT> Rice, T., and P. E. Strahan. 2010. "Does Credit Competition Affect Small-Firm Finance?" <i>Journal of Finance</i> 65, no. 3: 861-889.</BIBTEXT>	</REF>	 <REF>	   <BIBL>52</BIBL>	<BIBTEXT> Roland, C. 2006. "Banking Sector Reforms in Indian." Paper presented at the Indian Institute of Capital Markets Ninth Capital Markets Conference, Mumbai, India, December 19-20.</BIBTEXT>      </REF>	  <REF>   <BIBL>53</BIBL>	<BIBTEXT> Rutkowski, A. 2006. "Inward FDI and Financial Constraints in Central and East European Countries." <i>Emerging Markets Finance & Trade</i> 42, no. 5 (September-October): 28-60.</BIBTEXT>	 </REF>    <REF>	    <BIBL>54</BIBL>	  <BIBTEXT> Saeed, A., and F. Esposito. 2012. "Bank Concentration and Financial Constraints on Firm Investment in UK." <i>Studies in Economics and Finance</i>, 29, no. 1: 11-25.</BIBTEXT>	  </REF>      <REF>	<BIBL>55</BIBL>	<BIBTEXT> Schiantarelli, F. 1996. "Financial Constraints and Investment: A Critical Survey of the International Evidence." <i>Oxford Review of Economic Policy</i> 12, no. 2: 70-89.</BIBTEXT>	 </REF>      <REF>	<BIBL>56</BIBL>   <BIBTEXT> Sharma, M. K., and H. K. Bal. 2010. "Measures of Concentration: An Empirical Analysis of the Banking Sector in India." <i>Journal of Global Business Studies</i> 7, no. 2: 16-19.</BIBTEXT>	 </REF>      <REF>	<BIBL>57</BIBL>    <BIBTEXT> Shirai, S. 2001. "Is India's Banking Sector Reform Successful? From the Perspective of the Governance of the Banking System." Paper presented at the Workshop on Mobilizing Domestic Finance for Development: Reassessment of Bank Finance and Debt Markets in Asia and the Pacific, Bangkok, November 22-23.</BIBTEXT>	</REF>	<REF>	   <BIBL>58</BIBL> <BIBTEXT> Whited, T. 1992. "Debt, Liquidity Constraints, and Corporate Investment: Evidence from Panel Data." <i>Journal of Finance</i> 47, no. 4: 425-460.</BIBTEXT>     </REF>      <REF>	 <BIBL>59</BIBL>   <BIBTEXT> Zarutskie, R. 2006. "Evidence on the Effects of Bank Competition on Firm Borrowing and Investment." <i>Journal of Financial Economics</i> 81, no. 3: 503-537.</BIBTEXT>      </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:3:p:85-105




Template-Type: ReDIF-Article 1.0
Author-Name: Olga Loiseau-Aslanidi
Author-X-Name-First: Olga
Author-X-Name-Last: Loiseau-Aslanidi
Title: Dollarization in Emerging Markets: Evidence from Georgia
Abstract:
 This paper studies dollarization using the implications of three versions of a money-in-utility function model. These versions accentuate the roles of the exchange rate, the interest rates on foreign and domestic currencies time deposits, and domestic and foreign inflation. Monthly Georgian data for the period 1996-2007 are employed in the analysis. Findings indicate that the U.S. dollar is a strong substitute for the domestic currency and has a significant share in domestic liquidity services. The historical dollarization is well explained by the exchange rate model.
Journal: Emerging Markets Finance and Trade
Pages: 70-84
Issue: 3
Volume: 48
Year: 2012
Month: 5
Keywords: dollarization, Georgia, money-in-utility function
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X7PHP4076185572R
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bufman, G., and L. Leiderman. 1993. "Currency Substitution Under Non-Expected Utility: Some Empirical Evidence." <i>Journal of Money, Credit, and Banking</i> 25, no. 3: 320-325.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Calvo, G., and C. Reinhart. 2002. "Fear of Floating." <i>Quarterly Journal of Economics</i> 117, no. 2: 379-408.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Calvo, G., and C. Vegh. 1992. "Currency Substitution in Developing Countries: An Introduction." Working Paper 92/40, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Calvo, G., and C. Vegh. 1996. "From Currency Substitution to Dollarization and Beyond: Analytical and Policy Issues." In <i>Money, Exchange Rates and Outputs</i>, ed. C. Vegh, pp. 153-175. Cambridge: MIT Press.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Cuddington, J. 1983. "Currency Substitution, Capital Mobility and the Demand for Domestic Money." <i>Journal of International Money and Finance</i> 2 (August): 111-133.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Cuddington, J.; R.-M. Garcia; and D. Westbrook. 2002. "A Micro-Foundations Model of Dollarization with Network Externalities and Portfolio Choice: The Case of Bolivia." Department of Economics, Georgetown University, Washington, DC.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Feige, E. 2003. "The Dynamics of Currency Substitution, Asset Substitution and De Facto Dollarization and Euroization in Transition Countries." <i>Comparative Economic Studies</i> 45, no. 3: 358-383.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Feige, E., and J. Dean. 2004. "Dollarization and Euroization in Transition Countries: Currency Substitution, Asset Substitution, Network Externalities, and Irreversibility." In <i>Monetary Unions and Hard Pegs: Effects on Trade, Financial Development, and Stability</i>, ed. V. Alexander, J. Melitz, and G. M. von Furstenberg, pp. 303-319. Oxford: Oxford University Press.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Feige, E.; M. Faulend; V. Sonje; and V. Sosic. "Currency Substitution, Unofficial Dollarization and Estimates of Foreign Currency Held Abroad: The Case of Croatia." In <i>Financial Policies in Emerging Markets</i>, ed. M. Blejer and M. Skreb, pp. 217-249. Cambridge: MIT Press, 2000.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Friedman, A., and A. Verbetsky. 2001. "Currency Substitution in Russia." Working Paper no. 01/05, Economic Education and Research Consortium, Kiev, Ukraine.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> Giovanni, A., and B. Turtelboom. 1992. "Currency Substitution." Working Paper no. 4232, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Hansen, L. 1982. "Large Sample Properties of Generalized Method of Moments Estimators." <i>Econometrica</i> 50, no. 4: 1029-1054.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Hansen, L., and K. Singleton. 1982. "Generalized Instrumental Variables of Nonlinear Rational Expectations Models." <i>Econometrica</i> 50, no. 5: 1269-1285.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Imrohoroglu, S. 1994. "GMM Estimates of Currency Substitution Between the Canadian Dollar and the U. S. Dollar." <i>Journal of Money, Credit and Banking</i> 26, no. 4: 792-807.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Korhonen, I., and A. Mehrotra. 2010. "Money Demand in Post-Crisis Russia: Dedollarization and Remonetization." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 5-19.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Kydland, F. E., and E. C. Prescott. 1982. "Time to Build and Aggregate Fluctuations." <i>Econometrica</i> 50, no. 6: 1345-1370.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Loiseau-Aslanidi, Olga. 2011. "Determinants and Effectiveness of Foreign Exchange Market Intervention in Georgia." <i>Emerging Markets Finance & Trade</i> 47, no. 4: 75-95.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Miles, M. 1978. "Currency Substitution, Flexible Exchange Rates, and Monetary Independence." <i>American Economic Review</i> 68, no. 3: 428-436.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Mongardini, J., and J. Mueller. 1999. "Ratchet Effects in Currency Substitution: An Application to the Kyrgyz Republic." Working Paper no. 99/102, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Mulligan, R., and E. Nijsse. 2001. "Shortage and Currency Substitution in Transition Economies: Bulgaria, Hungary, Poland and Romania." <i>International Advances in Economic Research</i> 7, no. 3: 275-295.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Nicolo, G.; P. Honohan; and A. Ize. 2005. "Dollarisation of Bank Deposits: Causes and Consequences." <i>Journal of Banking and Finance</i> 29, no. 7: 1697-1727.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Oomes, N. 2003. "Network Externalities and Dollarization Hysteresis: The Case of Russia." Working Paper no. 03/96, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Ozsoz, E.; E. Rengifo; and D. Salvatore. 2010. "Deposit Dollarization as an Investment Signal in Transition Economies: The Cases of Croatia, the Czech Republic, and Slovakia." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 5-22.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Selcuk, F. 1997. "GMM Estimation of Currency Substitution in a High-Inflation Economy." <i>Applied Economics Letters</i> 4, no. 4: 225-228.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Selcuk, F. 2003. "Currency Substitution: New Evidence from Emerging Economies." <i>Economics Letters</i> 78, no. 3: 219-224.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Us, V. 2003. "Analyzing the Persistence of Currency Substitution Using a Ratchet Variable: The Turkish Case." <i>Emerging Markets Finance & Trade</i> 39, no. 4 (July-August): 58-81.</BIBTEXT>      </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:3:p:70-84




Template-Type: ReDIF-Article 1.0
Author-Name: Deniz Ikizlerli
Author-X-Name-First: Deniz
Author-X-Name-Last: Ikizlerli
Author-Name: Numan Ülkü
Author-X-Name-First: Numan
Author-X-Name-Last: Ülkü
Title: Political Risk and Foreigners' Trading: Evidence from an Emerging Stock Market
Abstract:
 This paper analyzes the impact of political risk on foreign investors' trading in emerging stock markets, market-wide and for industry portfolios, using quantified political risk ratings reported in the <i>International Country Risk Guide</i> and foreign flows data compiled by the Istanbul Stock Exchange. We also track the differential effect of political risk upgrades and downgrades. Political risk is shown to affect stock returns, net foreign flows, and macroeconomic variables. Foreigners' reaction to upgrades (downgrades) is slow (immediate) and smaller in magnitude. Foreigners' reaction to political risk varies with industry's sensitivity to market risk, except for the tourism sector, where their response is particularly salient. Local investors appear to provide liquidity to foreigners, who respond to information.
Journal: Emerging Markets Finance and Trade
Pages: 106-121
Issue: 3
Volume: 48
Year: 2012
Month: 5
Keywords: emerging stock markets, foreign flows, political risk
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y121666471JW7026
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alper, E. 2002. "Business Cycles, Excess Volatility and Capital Flows: Evidence from Mexico and Turkey." <i>Emerging Markets Finance & Trade</i> 38, no. 4 (July-August): 25-58.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bailey, W., and P. Chung. 1995. "Exchange Rate Fluctuations, Political Risk, and Stock Returns: Some Evidence from an Emerging Market." <i>Journal of Financial and Quantitative Analysis</i> 30, no. 4: 541-562.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Berument, H. M., and N. Dinçer. 2004. "Do Capital Flows Improve Macroeconomic Performance in Emerging Markets? The Turkish Experience." <i>Emerging Markets Finance & Trade</i> 40, no. 4 (July-August): 20-32.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bilson, C.; T. Brailsford; and V. Hooper. 2002. "The Explanatory Power of Political Risk in Emerging Markets." <i>International Review of Financial Analysis</i> 11, no. 1: 1-27.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Chan, Y., and J. Wei. 1996. "Political Risk and Stock Price Volatility: The Case of Hong Kong." <i>Pacific-Basin Finance Journal</i> 4, nos. 2-3: 259-275.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chen, C.; A. Huang; and C. Chen. 2011. "The Effects of Abolishing a Foreign Institutional Investment Quota in Taiwan." <i>Emerging Markets Finance & Trade</i> 47, no. 2 (March-April): 74-98.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Clare, G., and I. Gang. 2010. "Exchange Rate and Political Risks, Again." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 46-58.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Diamonte, R.; J. Liew; and R. Stevens. 1996. "Political Risk in Emerging and Developed Markets." <i>Financial Analysts Journal</i> 52, no. 3 (May-June): 71-76.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Erb, C.; C. Harvey; and T. Viskanta. 1996. "Political Risk, Economic Risk and Financial Risk." <i>Financial Analysts Journal</i> 52, no. 6 (November-December): 29-46.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Griffin, J. M.; F. Nardari; and R. M. Stulz. 2004. "Are Daily Cross-Border Equity Flows Pushed or Pulled?" <i>Review of Economics and Statistics</i> 86, no. 3: 641-657.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> Kim, H., and J. Mei. 2001. "What Makes the Stock Market Jump? An Analysis of Political Risk on Hong Kong Stock Returns." <i>Journal of International Money and Finance</i> 20, no. 7: 1003-1016.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Richards, A. 2005. "Big Fish in Small Ponds: The Trading Behavior and Price Impact of Foreign Investors in Asian Emerging Equity Markets." <i>Journal of Financial and Quantitative Analysis</i> 40, no. 1: 1-27.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Sönmez, S. 1998. "Tourism, Terrorism and Political Instability." <i>Annals of Tourism Research</i> 25, no. 2: 416-456.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Ülkü, N. 2011. "The Interaction Between Foreign Investors' Trading, Stock Market Returns and Macroeconomic Activity in European Emerging Markets." Closing Report for OTKA (Hungarian National Scientific Research Fund) Project no. K 81343.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Wisniewski, T. P. 2009. "Can Political Factors Explain the Behaviour of Stock Prices Beyond the Standard Present Value Models?" <i>Applied Financial Economics</i> 19, no. 23: 1873-1884.</BIBTEXT>      </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:3:p:106-121




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Melecky
Author-X-Name-First: Martin
Author-X-Name-Last: Melecky
Author-Name: Anca Maria Podpiera
Author-X-Name-First: Anca Maria
Author-X-Name-Last: Podpiera
Title: Macroprudential Stress-Testing Practices of Central Banks in Central and Southeastern Europe: Comparison and Challenges Ahead
Abstract:
 This paper reviews and compares stress-testing practices of central banks in Central and Southeastern Europe (CSEECBs) and outlines challenges in the area of stress testing going forward. The authors, focusing their comparison on CSEECBs, construct the baseline and stress scenarios, map macroeconomic scenarios and microeconomic factors to risk factors, calculate risk exposures to different risk indicators, and estimate outcome indicators to inform macroprudential policy. The main challenges going forward concern data reliability, consideration of quantitative microprudential indicators, incorporation of feedback effects in stress tests, institutionalization of macroprudential policy responses to alarming stress-test results, and information exchange for better cross-border supervision.
Journal: Emerging Markets Finance and Trade
Pages: 118-134
Issue: 4
Volume: 48
Year: 2012
Month: 7
Keywords: central banks, Central and Southeastern Europe, financial stability, macroprudential stress tests, prudential supervision
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=2P86248J7L00L25R
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Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 4
Volume: 48
Year: 2012
Month: 7
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=419088R13U917464
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:4:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Giulia Bettin
Author-X-Name-First: Giulia
Author-X-Name-Last: Bettin
Author-Name: Alessia Lo Turco
Author-X-Name-First: Alessia Lo
Author-X-Name-Last: Turco
Title: A Cross-Country View on South-North Migration and Trade: Dissecting the Channels
Abstract:
 We explore the nexus between South-North migration and trade in a cross-country framework over the period 1990-2005. In addition to the relatively unexploited cross-country framework, our main contribution resides in the search for heterogeneous responses of trade to migration according to different goods typologies. Besides the usual distinction between homogeneous and differentiated products dictated by the information channel, we also investigate the effects of migration on trade in primary and final goods and in labor- and capital-intensive goods with the aim of assessing the preference and technology channels as well. Our results show that, as expected, migration enhances the import of primary and final goods (preference channel) and the export of differentiated, low elasticity of substitution goods (information channel). However, there is some evidence that the increase in the presence of migrants from the South enhances the export of labor-intensive goods (technology channel).
Journal: Emerging Markets Finance and Trade
Pages: 4-29
Issue: 4
Volume: 48
Year: 2012
Month: 7
Keywords: migration, North-South trade
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=523113166504Q84P
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:4:p:4-29




Template-Type: ReDIF-Article 1.0
Author-Name: Erk Hacihasanoglu
Author-X-Name-First: Erk
Author-X-Name-Last: Hacihasanoglu
Author-Name: F. N. Can Simga-Mugan
Author-X-Name-First: F. N. Can
Author-X-Name-Last: Simga-Mugan
Author-Name: Ugur Soytas
Author-X-Name-First: Ugur
Author-X-Name-Last: Soytas
Title: Do Global Risk Perceptions Play a Role in Emerging Market Equity Return Volatilities?
Abstract:
 This paper investigates whether global risk perceptions lead emerging market return volatilities. In so doing, we analyzed the period of interest in three parts to determine the effects of the changes in global risk perceptions on the volatility of emerging markets. We uncovered volatility spillover from risk perceptions to the MXEF returns before the crisis. Our results show that all the effects on emerging market volatilities are severed in 2008, during which MXEF follows a downward trend. However, we observe that volatility transmission emerges during the recovery period of MXEF again. Hence, risk perceptions should be considered while analyzing emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 67-78
Issue: 4
Volume: 48
Year: 2012
Month: 7
Keywords: CVIX, emerging market equity returns, MOVE, risk perceptions, VIX
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8G6247QQN7R57288
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Al-Deehani, T., and I. Mossa. 2006. "Volatility Spillover in Regional Emerging Stock Markets." <i>Emerging Markets Finance & Trade</i> 42, no. 4 (July-August): 78-89.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Balakrishnan, R.; S. Danninger; S. Elekdag; and I. Tytell. 2011. "The Transmission of Financial Stress from Advanced to Emerging Economies." <i>Emerging Markets Finance & Trade</i> 47, no. 2 (March-April): 40-68.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Beirne, J.; G. Caporale; M. Schulze-Ghattas; and N. Spagnolo. 2009. "Volatility Spillovers and Contagion from Mature to Emerging Stock Markets." Working Paper no. 1113, European Central Bank, Frankfurt am Main.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bekaert, G., and C. R. Harvey. 2000. "Foreign Speculators and Emerging Equity Markets." <i>Journal of Finance</i> 55, no. 2: 565-613.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bekaert, G., and R. J. Hodrick. 1992. "Characterizing Predictable Components in Excess Returns in Equity and Foreign Exchange Markets." <i>Journal of Finance</i> 47, no. 2: 467-509.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bekaert, G.; C. R. Harvey; and R. L. Lumsdaine. 2002. "The Dynamics of Emerging Market Equity Flows." <i>Journal of International Money and Finance</i> 21, no. 3: 295-350.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bekaert, G.; M. Hoerova; and M. Scheicher. 2009. "What Do Asset Prices Have to Say About Risk Appetite and Uncertainty?" Working Paper no. 1037, European Central Bank, Frankfurt am Main.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Brooks, C., and O. T. Henry. 2000. "Linear and Non-Linear Transmission of Equity Return Volatility: Evidence from the U. S., Japan and Australia." <i>Economic Modeling</i> 17, no. 4: 497-513.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Caicedo-Llano, J., and T. Dionysopoulos. 2007. "Predictors of Stock Returns in Emerging Equity Markets." Latin American and Caribbean Economic Association (LACEA)-Latin American Meeting of the Economic Society (LAMES) 2007 Joint Annual Meeting, Bogota, Colombia, October 4-6.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Chancharoenchai, K., and S. Dibooglu. 2006. "Volatility Spillovers and Contagion During the Asian Crisis: Evidence from Six Southeast Asian Stock Markets." <i>Emerging Markets Finance & Trade</i> 42, no. 2 (March-April): 4-17.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> Cheung, Y., and L. K. Ng. 1996. "A Causality-in-Variance Test and Its Application to Financial Market Prices." <i>Journal of Econometrics</i> 72, nos. 1-2: 33-48.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Choudhry, T. 2004. "International Transmission of Stock Returns and Volatility." <i>Emerging Markets Finance & Trade</i> 40, no. 4 (July-August): 33-52.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Claessens, S.; R. Dornbusch; and Y. S. Park. 2001. "Contagion: Why Crises Spread and How This Can Be Stopped." In <i>International Financial Contagion</i>, ed. S. Claessens and K. Forbes, pp. 19-41. Norwell, MA: Kluwer Academic.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Coudert, V., and H. Raymond. 2010. "Gold and Financial Assets: Are There Any Safe Havens in the Bear Markets?" Working Paper no. 2010-13, Centre d'Etudes Prospectives et d'Informations Internationale, Paris.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Didier, T.; I. Love; and M. S. Martinez Peria. 2010. "What Explains Stock Market's Vulnerability to the 2007-2008 Crisis?" World Bank Policy Research Working Paper no. WPS5224, Washington, DC.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Dungey, M.; R. Fry; B. González-Hermosillo; and V. Martin. 2004. "Empirical Modeling of Contagion: A Review of Methodologies." Working Paper no. WP/04/78, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Elliott, G.; T. J. Rothenberg; and J. H. Stock. 1996. "Efficient Tests for an Autoregressive Unit Root." <i>Econometrica</i> 64, no. 4: 813-836.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Frank, N., and H. Hesse. 2009. "Financial Spillovers to Emerging Markets During the Global Financial Crisis." Working Paper no. WP/09/104, International Monetary Fund, Washington, DC.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Hafner, C. M., and H. Herwartz. 2006. "A Lagrange Multiplier Test for Causality in Variance." <i>Economics Letters</i> 93, no. 1: 137-141.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Harvey, C. R. 1995. "Predictable Risk and Returns in Emerging Markets." <i>Review of Financial Studies</i> 8, no. 3: 773-816.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Hong, Y. 2001. "A Test for Volatility Spillover with Application to Exchange Rates." <i>Journal of Econometrics</i> 103, nos. 1-2: 183-224.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Karolyi, G. A. 2003. "Does International Financial Contagion Really Exist." <i>International Finance</i> 6, no. 2: 179-199.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Karolyi, G. A., and R. M. Stulz. 1996. "Why Do Markets Move Together? An Investigation of U. S.-Japan Stock Return Comovements." <i>Journal of Finance</i> 51, no. 3: 951-986.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Kaul, A., and S. Sapp. 2006. "Y2K Fears and Safe Haven Trading of the U. S. Dollar." <i>Journal of International Money and Finance</i> 25, no. 5: 760-779.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> McCauley, R., and P. McGuire. 2009. "Dollar Appreciation in 2008: Safe Haven, Carry Trades, Dollar Shortage and Overhedging." <i>BIS Quarterly Review</i> (December 7): 85-93.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Ng, A. 2000. "Volatility Spillover Effects from Japan and the U. S. to the Pacific-Basin." <i>Journal of International Money and Finance</i> 19, no. 2: 207-233.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Ng, S., and P. Perron. 2001. "Lag Length Selection and the Construction of Unit Root Tests with Good Size and Power." <i>Econometrica</i> 69, no. 6: 1519-1554.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Ogum, G. 2010. "Equity Volatility Transmission and Contagion Between the U. S. and Emerging Stock Markets: The Role of the U. S. Subprime Crisis." Southwestern Finance Association, 49th Annual Meeting, Dallas, TX, March 2-6.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Pattarathammas, S., and A. Khanthavit. 2009. "World and Regional Factors in Stock Market Returns." <i>International Journal of Managerial Finance</i> 5, no. 2: 222-241.</BIBTEXT>      </REF>	  <REF>   <BIBL>30</BIBL>	<BIBTEXT> Pericoli, M., and M. Sbracia. 2003. "A Primer on Financial Contagion." <i>Journal of Economic Surveys</i> 17, no. 4: 571-608.</BIBTEXT>	 </REF>    <REF>	    <BIBL>31</BIBL>	  <BIBTEXT> Psalida, L. E., and T. Sun. 2009. "Spillovers to Emerging Equity Markets: An Econometric Assessment." Working Paper no. WP/09/111, International Monetary Fund, Washington, DC.</BIBTEXT>	  </REF>      <REF>	<BIBL>32</BIBL>	<BIBTEXT> Wei, J. K. C.; Y. J. Liu; C. C. Yang; and G. S. Chaung. 1995. "Volatility and Price Change Spillover Effects Across the Developed and Emerging Markets." <i>Pacific-Basin Finance Journal</i> 3, no. 1: 113-136.</BIBTEXT>      </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:4:p:67-78




Template-Type: ReDIF-Article 1.0
Author-Name: PengCheng Zhu
Author-X-Name-First: PengCheng
Author-X-Name-Last: Zhu
Author-Name: Vijay Jog
Author-X-Name-First: Vijay
Author-X-Name-Last: Jog
Title: Impact on Target Firm Risk-Return Characteristics of Domestic and Cross-Border Mergers and Acquisitions in Emerging Markets
Abstract:
 Using a large sample of partial cross-border mergers and acquisitions from emerging countries, we show that these acquisitions significantly reduce the risk of the target firms and that the risk reduction is directly related to the changes in the international shareholder base and the strength of the investor right protection of the acquirer. We also find that these acquisitions are value creating because we see improvements in both the short-term and long-term risk-adjusted stock performance in target firms during the postacquisition period.
Journal: Emerging Markets Finance and Trade
Pages: 79-101
Issue: 4
Volume: 48
Year: 2012
Month: 7
Keywords: corporate governance, cross-border mergers and acquisitions, event study, long-term performance, shareholder base, target firm risk
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G8350G4822124184
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Amihud, Y.; G. DeLong; and A. Saunders. 2002. "The Effects of Cross-Border Bank Mergers on Bank Risk and Value." <i>Journal of International Money and Finance</i> 21, no. 6: 857-877.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Barry, C.; J. Peavy; and M. Rodriguez. 1997. "Emerging Stock Markets: Risk, Return, and Performance." Research Foundation of the Institute of Chartered Financial Analysts, Charlot-tesville, VA.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bekaert, G., and C. R. Harvey. 1997. "Emerging Equity Market Volatility." <i>Journal of Financial Economics</i> 43, no. 1: 29-77.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bekaert, G., and C. R. Harvey. 2002. "Research in Emerging Markets Finance: Looking to the Future." <i>Emerging Market Review</i> 3, no. 4: 429-448.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bekaert, G.; C. Harvey; and C. Lundblad. 2007. "Liquidity and Expected Returns: Lessons from Emerging Markets." <i>Review of Financial Studies</i> 20, no. 6: 1783-1831.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bekaert, G.; C. B. Erb; C. R. Harvey; and T. E. Viskanta. 1998. "Distributional Characteristics of Emerging Market Returns and Asset Allocation." <i>Journal of Portfolio Management</i> 24, no. 2: 102-116.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bharath, S., and G. Wu. 2005. "Long-Run Volatility and Risk Around Mergers and Acquisitions." Working Paper, Department of Finance, University of Michigan, Ann Arbor.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Bris, A., and C. Cabolis. 2008. "The Value of Investor Protection: Firm Evidence from Cross-Border Mergers." <i>Review of Financial Studies</i> 21, no. 2: 605-648.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Bris, A.; N. Brisley; and C. Cabolis. 2008. "Adopting Better Corporate Governance: Evidence from Cross-Border Mergers." <i>Journal of Corporate Finance</i> 14, no. 3: 224-240.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Brown, S., and J. Warner. 1985. "Using Daily Stock Returns: The Case of Event Studies." <i>Journal of Financial Economics</i> 14, no. 1: 3-31.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> Chari, A.; P. Ouimet; and L. Tesar. 2010. "The Value of Control in Emerging Markets." <i>Review of Financial Studies</i> 23, no. 4: 1741-1770.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Claessens, S.; S. Dasgupta; and J. Glen. 1995. "Return Behavior in Emerging Markets." <i>World Bank Economic Review</i> 9, no. 1: 131-151.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Claessens, S.; S. Djankov; J. P. H. Fan; and L. H. P. Lang. 2002. "Disentangling the Incentive and Entrenchment Effects of Large Shareholdings." <i>Journal of Finance</i> 57, no. 6: 2741-2771.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Djankov, J.; R. La Porta; F. López-de-Silanes; and A. Shleifer. 2006. "The Law and Economics of Self-Dealing." <i>Journal of Financial Economics</i> 88, no. 3: 430-465.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Estrada, J. 2005. "Assessing Risk in Emerging Markets." <i>Emerging Market Review</i> 6, no. 4: 309-310.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Estrada, J. 2006. "Downside Risk in Practice." <i>Journal of Applied Corporate Finance</i> 18, no. 1: 117-125.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Fama, E. F., and K. R. French. 1993. "Common Risk Factors in the Returns on Stocks and Bonds." <i>Journal of Financial Economics</i> 33, no. 1: 3-56.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Foerster, L., and G. Karolyi. 1999. "The Effects of Market Segmentation and Investor Recognition on Asset Prices: Evidence from Foreign Stocks Listing in the United States." <i>Journal of Finance</i> 54, no. 3: 981-1013.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Grishchenko, O.; L. Litov; and J. Mei. 2002. "Measuring Private Information Trading in Emerging Markets." Working Paper, Department of Finance, New York University, New York.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Hofstede, G. 1980. <i>Culture's Consequences: International Differences in Work-Related Values.</i> Beverly Hills, CA: Sage.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Jiménez, A. 2011. "Political Risk as a Determinant of Southern European FDI in Neighboring Developing Countries." <i>Emerging Markets Finance & Trade</i> 47, no. 4 (July-August): 59-74.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> John, K.; L. Litov; and B. Yeung. 2008. "Corporate Governance and Risk-Taking." <i>Journal of Finance</i> 63, no. 4: 1679-1728.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Kim, B. 2011. "Do Foreign Investors Encourage Value-Enhancing Corporate Risk Taking?" <i>Emerging Markets Finance & Trade</i> 47, no. 3 (May-June): 88-110.</BIBTEXT>	</REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Kiymaz, H., and T. Mukherjee. 2001. "Parameter Shifts When Measuring Wealth Effects in Cross-Border Mergers." <i>Global Finance Journal</i> 12, no. 2: 249-266.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A. Shleifer; and R. Vishny. 1998. "Law and Finance." <i>Journal of Political Economy</i> 106, no. 6: 1113-1155.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Lins, K. V. 2003. "Equity Ownership and Firm Value in Emerging Markets." <i>Journal of Financial and Quantitative Analysis</i> 38, no. 1: 159-184.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Martynova, M., and L. Renneboog. 2008. "Spillover of Corporate Governance Standards in Cross-Border Mergers and Acquisitions." <i>Journal of Corporate Finance</i> 14, no. 3: 200-203.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Miller, D. P. 1999. "The Market Reaction to International Cross-Listing: Evidence from Depositary Receipts." <i>Journal of Financial Economics</i> 51, no. 1: 103-123.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Pan, H.; D. Li; X. Xia; and M. Yu. 2010. "Private Versus State Ownership and Spillover of Investor Protection Standards in Interprovince Mergers: Evidence from China's Emerging Market." <i>Emerging Markets Finance & Trade</i> 46, no. 6 (November-December): 86-105.</BIBTEXT>      </REF>	  <REF>   <BIBL>30</BIBL>	<BIBTEXT> Pazarbasioglu, C.; M. Goswami; and J. Ree. 2007. "The Changing Face of Investors." <i>Finance and Development</i> 44, no. 1 (available at <a target="_blank" href='http://www.imf.org/external/pubs/ft/fandd/2007/03/pazar.htm'>www.imf.org/external/pubs/ft/fandd/2007/03/pazar.htm</a></BIBTEXT>	 </REF>    <REF>	    <BIBL>31</BIBL>	  <BIBTEXT> Rosenbaum, P. R., and D. B. Rubin. 1983. "The Central Role of the Propensity Score in Observational Studies for Causal Effects." <i>Biometrika</i> 70, no. 1: 41-55.</BIBTEXT>	  </REF>      <REF>	<BIBL>32</BIBL>	<BIBTEXT> Selarka, E. 2005. "Ownership Concentration and Firm Value: A Study from the Indian Corporate Sector." <i>Emerging Markets Finance & Trade</i> 41, no. 6 (November-December): 83-108.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>   <BIBTEXT> Sharpe, W. F. 1966. "Mutual Fund Performance." <i>Journal of Business</i> 39, no. S1: 119-138.</BIBTEXT>	 </REF>      <REF>	<BIBL>34</BIBL>    <BIBTEXT> Shkolnikov, A. 2006. "Protecting Minority Shareholders in Emerging Markets." Working Paper, Center for International Private Enterprise, Washington, DC.</BIBTEXT>	</REF>	<REF>	   <BIBL>35</BIBL> <BIBTEXT> Shleifer, A., and R. W. Vishny. 1997. "A Survey of Corporate Governance." <i>Journal of Finance</i> 52, no. 2: 737-783.</BIBTEXT>     </REF>      <REF>	 <BIBL>36</BIBL>   <BIBTEXT> Sortino, F. A., and L. N. Price. 1994. "Performance Measurement in a Downside Risk Framework." <i>Journal of Investing</i> 3, no. 3: 59-64.</BIBTEXT>      </REF>	<REF>    <BIBL>37</BIBL>	<BIBTEXT> Tang, K., and C. Wang. 2011. "Corporate Governance and Firm Liquidity: Evidence from the Chinese Stock Market." <i>Emerging Markets Finance & Trade</i> 47, no. 1 (January-February): 47-60.</BIBTEXT> </REF>     <REF>	    <BIBL>38</BIBL>	  <BIBTEXT> Zhu, P.; V. Jog; and I. Otchere. 2011. "Partial Acquisitions in Emerging Markets: A Test of the Strategic Market Entry and Corporate Control Hypotheses." <i>Journal of Corporate Finance</i> 17, no. 2: 288-305.</BIBTEXT>	 </REF> 
Handle: RePEc:mes:emfitr:v:48:y:2012:i:4:p:79-101




Template-Type: ReDIF-Article 1.0
Author-Name: Pinar Özlü
Author-X-Name-First: Pinar
Author-X-Name-Last: Özlü
Author-Name: Cihan Yalçin
Author-X-Name-First: Cihan
Author-X-Name-Last: Yalçin
Title: The Trade Credit Channel of Monetary Policy Transmission: Evidence from Nonfinancial Manufacturing Firms in Turkey
Abstract:
 This study investigates the trade credit channel of monetary policy transmission in Turkey by using a large panel of corporate firms and includes detailed information on balance sheets and income statements of firms that regularly reported to the Central Bank of the Republic of Turkey during the period 1996-2008. The study suggests that the composition of external finance differs considerably across firm types based on size and export performance under tight and loose financial conditions. Small and medium-size manufacturing firms and firms with a low export share are less likely to have access to bank finance, especially in tight periods. In addition, financially constrained firms with limited access to bank finance (small, low-export-share firms) tend to substitute trade credits for bank loans more aggressively in tight periods as monetary policy tightens. The large volume of trade credit on firms' balance sheets and its positive response to contractionary monetary shocks imply that the trade credit channel might subdue the traditional credit channel of monetary transmission.
Journal: Emerging Markets Finance and Trade
Pages: 102-117
Issue: 4
Volume: 48
Year: 2012
Month: 7
Keywords: credit channel, monetary policy transmission, trade credits
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H2N853173T641410
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akyürek, C. 2006. "The Turkish Crisis of 2001." <i>Emerging Markets Finance & Trade</i> 42, no. 1 (January-February): 5-32.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Atanasova, C. V., and N. Wilson. 2001. "Borrowing Constraints and The Demand for Trade Credit: Evidence from UK Panel Data." Credit Management Research Center, Leeds University Business School.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Aydin, H.; C. Kaplan; M. Kesriyeli; E. Özmen; C. Yalçin; and S. Yigit. 2006. "Corporate Sector Financial Structure in Turkey: A Descriptive Analysis." Working Paper no. 06/07, Central Bank of the Republic of Turkey, Ankara.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Badarau-Semenescu, C., and A. Semenescu. 2010. "Fiscal Policy and the Cost of External Finance to Firms: Microeconomic and Macroeconomic Implications." <i>Emerging Markets Finance & Trade</i> 46, Supplement 1: 36-50.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Berger, A., and G. Udell. 1998. "The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth Cycle." <i>Journal of Banking and Finance</i> 22, nos. 6-8: 613-673.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bernanke, B. S., and A. S. Blinder. 1988. "Credit, Money and Aggregate Demand." <i>American Economic Review</i> 78, no. 2: 435-439.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bernanke, B. S.; M. Gertler; and S. Gilchrist. 1996. "Financial Accelerator and the Flight to Quality." <i>Review of Economics and Statistics</i> 78, no. 1: 1-15.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Bernanke, B. S.; M. Gertler; and S. Gilchrist. 1998. "The Financial Accelerator in a Quantitative Business Cycle Framework." In <i>Handbook of Macroeconomics</i>, vol. 1C, ed. J. B. Taylor and M. Woodford, pp. 1341-1393. Amsterdam: Elsevier.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Bougheas, S.; P. Mizen; and C. Yalçin. 2005. "Access to External Finance: Theory and Evidence on the Impact of Firm-Specific Characteristics." <i>Journal of Banking and Finance</i> 30, no. 1: 199-227.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Choi, W., and Y. Kim. 2005. "Trade Credit and the Effect of Macro-Financial Shocks: Evidence from U. S. Panel Data." <i>Journal of Financial and Quantitative Analysis</i> 40, no. 4: 897-925.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> De Blasio, G. 2003. "Does Trade Credit Substitute for Bank Credit? Evidence from Firm-Level Data." Working Paper no. 03/166, International Monetary Fund, Washington, DC.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Elliehausen, G. E., and J. D. Wolken. 1993. "The Demand for Trade Credit: An Investigation of Motives for Trade Credit Use by Small Business." Board of Governors of the Federal Reserve System, Washington, DC, September (available at <a target="_blank" href='http://www.federalreserve.gov/pubs/staffstudies/1990-99/ss165.pdf'>www.federalreserve.gov/pubs/staffstudies/1990-99/ss165.pdf</a></BIBTEXT>	</REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Fidrmuc, J.; R. Horváth; and E. Horváthová. 2010. "Corporate Interest Rates and the Financial Accelerator in the Czech Republic." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 41-54.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Ge, Y., and J. Qiu. 2007. "Financial Development, Bank Discrimination and Trade Credit." <i>Journal of Banking and Finance</i> 31, no. 2: 513-530.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Gertler, M., and S. Gilchrist. 1994. 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"The Determinants and Implications of Financial Asset Holdings of Non-Financial Firms in Turkey: An Empirical Investigation." Working Paper no. 06/06, Central Bank of the Republic of Turkey, Ankara.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Kaplan, S., and L. Zingales. 1997. "Do Investment Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?" <i>Quarterly Journal of Economics</i> 112, no. 1: 169-216.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Kashyap, A. K.; O. A. Lamont; and J. C. Stein. 1994. "Credit Condition and the Cyclical Behavior of Inventories." <i>Quarterly Journal of Economics</i> 109, no. 3: 567-592.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Kashyap, A. K.; J. C. Stein; and D. W. Wilcox. 1993. "Monetary Policy and Credit Conditions: Evidence from the Composition of External Finance." <i>American Economic Review</i> 83, no. 1: 78-98.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Kiyotaki, N., and J. Moore. 1997. "Credit Cycles." <i>Journal of Political Economy</i> 105, no. 2: 211-248.</BIBTEXT>	</REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Kohler, M.; E. Britton; and T. Yates. 2000. "Trade Credit and the Monetary Transmission Mechanism." Working Paper Series no. 115, Bank of England, London.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Love, I.; L. Preve; and V. Sarria-Allende. 2007. "Trade Credit and Bank Credit: Evidence from Recent Financial Crises." <i>Journal of Financial Economics</i> 83, no. 2: 453-469.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Mateut, S. 2005. "Trade Credit and Monetary Policy Transmission." <i>Journal of Economic Surveys</i> 19, no. 4: 655-669.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Mateut, S.; S. Bougheas; and P. Mizen. 2006. "Trade Credit, Bank Lending and Monetary Policy Transmission." <i>European Economic Review</i> 50, no. 3: 603-629.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Meltzer, A. 1960. "Mercantile Credit, Monetary Policy, and Size of Firms." <i>Review of Economics and Statistics</i> 42, no. 4: 429-437.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Mizen, P., and C. Yalçin. 2006. "Monetary Policy, Corporate Financial Conditions and Real Activity." <i>CESifo Economic Studies</i> 52, no. 1: 177-213.</BIBTEXT>      </REF>	  <REF>   <BIBL>30</BIBL>	<BIBTEXT> Myers, S., and N. Majluf. 1984. 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"Trade Credit: Theories and Evidence." <i>Review of Financial Studies</i> 10, no. 3: 661-691.</BIBTEXT>	</REF>	<REF>	   <BIBL>35</BIBL> <BIBTEXT> Rajan, R. G., and L. Zingales. 1995. "What Do We Know About Capital Structure? Some Evidence from International Data." <i>Journal of Finance</i> 50, no. 5: 1421-1460.</BIBTEXT>     </REF>      <REF>	 <BIBL>36</BIBL>   <BIBTEXT> Türkan, E. 2004. "Türk ekonomisinde makro kredi kanali: Ölçek ve kalite açisindan bir degerlendirme" [Broad Credit Channel in Turkish Economy: An Assessment in Terms of Scale and Quality]. Central Bank of the Republic of Turkey, Ankara.</BIBTEXT>      </REF>	<REF>    <BIBL>37</BIBL>	<BIBTEXT> Valderrama, M. 2003. "The Role of Trade Credit and Bank-Lending Relationships in the Transmission Mechanism in Austria." In <i>Monetary Policy Transmission in the Euro Area</i>, ed. I. Angelino, A. Kashyap, and B. Mojon, pp. 221-234. Cambridge: Cambridge University Press.</BIBTEXT> </REF>     <REF>	    <BIBL>38</BIBL>	  <BIBTEXT> World Bank. 2010. "Turkey—Investment Climate Assessment: From Crisis to Private Sector Led Growth." World Bank and YOIKK Report no. 54123-TR, Washington, DC.</BIBTEXT>	 </REF>     <REF>	    <BIBL>39</BIBL>	  <BIBTEXT> Yalçin, C.; O. Y. Çulha; and P.Ö. Özlü. 2005. "Economic Growth and Financial Structure: A Firm Level Analysis." TÜSIAD Growth Strategies Series no. 5, Istanbul.</BIBTEXT>	  </REF>      <REF>	<BIBL>40</BIBL>	<BIBTEXT> Yesiltas, S. 2009. "Financing Constraints and Investment: The Case for Manufacturing Firms." Master's thesis, Department of Economics, Bilkent University, Ankara.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:4:p:102-117




Template-Type: ReDIF-Article 1.0
Author-Name: Zhian Chen
Author-X-Name-First: Zhian
Author-X-Name-Last: Chen
Author-Name: Xin Cui
Author-X-Name-First: Xin
Author-X-Name-Last: Cui
Title: Decomposing the Bid-Ask Spread in a Segmented Equity Market: Analyzing Chinese A Shares Versus B Shares
Abstract:
 Because of a regulatory policy change in February 2001, the segmentation of the Chinese stock market significantly decreased. Using this event, we show that the Chinese A-share market is more informationally efficient than the B-share market, both before and after the opening of the B-share market. Furthermore, after the event, both the adverse selection and the order-processing component of B shares decreased, as a result of a larger investor base and possibly a lower proportion of informed investors. This study thus sheds new light on the market segmentation and its effect on transaction costs.
Journal: Emerging Markets Finance and Trade
Pages: 30-49
Issue: 4
Volume: 48
Year: 2012
Month: 7
Keywords: bid-ask spread, China, market segmentation
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=N23331531887163J
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Affleck-Graves, J.; S. P. Hedge; and R. E. Miller. 1994. "Trading Mechanisms and the Components of the Bid-Ask Spread." <i>Journal of Finance</i> 49, no. 4: 1471-1488.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Ahn, H.; J. Cai; Y. Hamao; and R. Y. K. Ho. 2002. "The Components of the Bid-Ask Spread in a Limit-Order Market: Evidence from the Tokyo Stock Exchange." <i>Journal of Empirical Finance</i> 9, no. 4: 399-430.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Ahn, H.; J. Cai; Y. Hamao; and R. Y. K. Ho. 2005. "Adverse Selection, Brokerage Coverage, and Trading Activity on the Tokyo Stock Exchange." <i>Journal of Banking & Finance</i> 29, no. 6: 1483-1508.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Benston, G. J., and R. L. Hagerman. 1974. "Determinants of Bid-Asked Spreads in the Over-the-Counter Market." <i>Journal of Financial Economics</i> 1, no. 4: 353-364.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Branch, B., and W. Freed. 1977. "Bid-Asked Spreads on the AMEX and the Big Board." <i>Journal of Finance</i> 32, no. 1: 159-163.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Brennan, M. J., and H. H. Cao. 1997. "International Portfolio Investment Flows." <i>Journal of Finance</i> 52, no. 5: 1851-1880.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Brockman, P., and D. Y. Chung. 1999. "An Analysis of Depth Behavior in an Electronic, Order-Driven Environment." <i>Journal of Banking & Finance</i> 23, no. 12: 1861-1886.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chakravarty, S.; A. Sarkar; and L. Wu. 1998. "Information Asymmetry, Market Segmentation and the Pricing of Cross-Listed Shares: Theory and Evidence from Chinese A and B Shares." <i>Journal of International Financial Markets, Institutions and Money</i> 8, nos. 3-4: 325-355.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chan, K.; A. J. Menkveld; and Z. Yang. 2008. "Information Asymmetry and Asset Prices: Evidence from the China Foreign Share Discount." <i>Journal of Finance</i> 63, no. 1: 159-196.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Chen, Z.; H. Jiang; D. Li; and A. B. Sim. 2010. "Regulation Change and Volatility Spillovers: Evidence from China's Stock Markets." <i>Emerging Markets Finance & Trade</i> 46, no. 6 (November-December): 140-157.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> Chung, K. H.; J. Elder; and J. Kim. 2010. "Corporate Governance and Liquidity." <i>Journal of Financial and Quantitative Analysis</i> 45, no. 2: 265-291.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> De Jong, F.; T. Nijman; and A. Röell. 1996. "Price Effects of Trading and Components of the Bid-Ask Spread on the Paris Bourse." <i>Journal of Empirical Finance</i> 3, no. 2: 193-213.</BIBTEXT>	</REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Demsetz, H. 1968. "The Cost of Transacting." <i>Quarterly Journal of Economics</i> 82, no. 1: 33-53.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Feng, L., and W. Xu. 2007. "Has the Reform of Nontradable Shares Raised Prices? An Event-Study Analysis." <i>Emerging Markets Finance & Trade</i> 43, no. 2 (March-April): 33-62.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> George, T. J.; G. Kaul; and M. Nimalendran. 1991. 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"Marketplace Organization and Marketability: NASDAQ, the Stock Exchange, and the National Market System." <i>Journal of Finance</i> 33, no. 2: 487-503.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Han, D.; C. Wang; and H. Yue. 2006. "An Analysis of the Components of Bid-ask Spread in Chinese Stock Market—A Case Study of the Order-Driven Market." <i>Journal of Beijing Institute of Technology (Social Sciences Edition)</i> 8, no. 1: 82-85 (in Chinese).</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Hansen, L. P. 1982. "Large Sample Properties of Generalized Method of Moments Estimators." <i>Econometrica</i> 50, no. 4: 1029-1054.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Hasbrouck, J. 1991. "Measuring the Information Content of Stock Trades." <i>Journal of Finance</i> 46, no. 1: 179-207.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Huang, A. G., and H. Fung. 2005. "Floating the Nonfloatables in China's Stock Market: Theory and Design." <i>Emerging Markets Finance & Trade</i> 41, no. 5 (September-October): 6-26.</BIBTEXT>	</REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Huang, R. D., and H. R. Stoll. 1996. "Dealer Versus Auction Markets: A Paired Comparison of Execution Costs on NASDAQ and the NYSE." <i>Journal of Financial Economics</i> 41, no. 3: 313-357.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Huang, R. D., and H. R. Stoll. 1997. "The Components of the Bid-Ask Spread: A General Approach." <i>Review of Financial Studies</i> 10, no. 4: 995-1034.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Lehmann, B. N., and D. M. Modest. 1994. "Trading and Liquidity on the Tokyo Stock Exchange: A Bird's Eye View." <i>Journal of Finance</i> 49, no. 3: 951-984.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Lei, J., and Y. Zeng. 2006. "An Analysis of the Components of the Bid-Ask Spreads in Shanghai Stock Market." <i>Systems Engineering</i> 24, no. 6: 74-80 (in Chinese).</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Lin, J.; G. C. Sanger; and G. G. Booth. 1995. "Trade Size and Components of the Bid-Ask Spread." <i>Review of Financial Studies</i> 8, no. 4: 1153-1183.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> MacKinnon, G., and H. Nemiroff. 1999. "Liquidity and Tick Size: Does Decimalization Matter?" <i>Journal of Financial Research</i> 22, no. 3: 287-299.</BIBTEXT>      </REF>	  <REF>   <BIBL>30</BIBL>	<BIBTEXT> Madhavan, A.; M. Richardson; and M. Roomans. 1997. "Why Do Security Prices Change? A Transaction-Level Analysis of NYSE Stocks." <i>Review of Financial Studies</i> 10, no. 4: 1035-1064.</BIBTEXT>	 </REF>    <REF>	    <BIBL>31</BIBL>	 <BIBTEXT> McInish, T. H., and R. A. Wood. 1992. "An Analysis of Intraday Patterns in Bid/Ask Spreads for NYSE Stocks." <i>Journal of Finance</i> 47, no. 2: 753-764.</BIBTEXT>	  </REF>      <REF>	<BIBL>32</BIBL>	<BIBTEXT> Menyah, K., and K. Paudyal. 2000. "The Components of Bid-Ask Spreads on the London Stock Exchange." <i>Journal of Banking & Finance</i> 24, no. 11: 1767-1785.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>   <BIBTEXT> Mu, Q.; C. Wu; and H. Liu. 2004. "Components of the Bid-Ask Spread in the Shenzhen Stock Exchange." <i>Systems Engineering-Theory Methodology Application</i> 13, no. 3: 239-249 (in Chinese).</BIBTEXT>	 </REF>      <REF>	<BIBL>34</BIBL>    <BIBTEXT> Stoll, H. R. 1978. "The Supply of Dealer Services in Securities Markets." <i>Journal of Finance</i> 33, no. 4: 1133-1151.</BIBTEXT>	</REF>	<REF>	   <BIBL>35</BIBL> <BIBTEXT> Tang, K., and C. Wang. 2011. "Corporate Governance and Firm Liquidity: Evidence from the Chinese Stock Market." <i>Emerging Markets Finance & Trade</i> 47, Supplement 1: 47-60.</BIBTEXT>     </REF>      <REF>	 <BIBL>36</BIBL>   <BIBTEXT> Tiniç, S. M. 1972. "The Economics of Liquidity Services." <i>Quarterly Journal of Economics</i> 86, no. 1: 79-93.</BIBTEXT>      </REF>	<REF>    <BIBL>37</BIBL>	<BIBTEXT> Van Ness, B. F.; R. A. Van Ness; and R. S. Warr. 2001. "How Well Do Adverse Selection Components Measure Adverse Selection?" <i>Financial Management</i> 30, no. 3: 77-98.</BIBTEXT> </REF>     <REF>	    <BIBL>38</BIBL>	  <BIBTEXT> Wang, Z., and P. Chen. 2006. "The Adverse Selection Component of the Bid-Ask Spread in Shenzhen Market: Estimation and Analyses." <i>Securities Market Herald</i> 3, no. 3: 65-70 (in Chinese).</BIBTEXT>	 </REF>     <REF>	    <BIBL>39</BIBL>	  <BIBTEXT> Weston, J. P. 2000. "Competition on the NASDAQ and the Impact of Recent Market Reforms." <i>Journal of Finance</i> 55, no. 6: 2565-2598.</BIBTEXT>	  </REF>      <REF>	<BIBL>40</BIBL>	<BIBTEXT> Wu, W.; Y. Zhu; C. Wu; and O. M. Rui. 2007. "Effect of B Shares' Opening to Domestic Investors on Information Asymmetry—Using Bid-Ask Spread Decomposition Method." <i>Journal of Management Sciences in China</i> 27, no. 6: 57-64 (in Chinese).</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:4:p:30-49




Template-Type: ReDIF-Article 1.0
Author-Name: José Eduardo Gómez-González
Author-X-Name-First: José Eduardo
Author-X-Name-Last: Gómez-González
Author-Name: Carlos Eduardo León Rincón
Author-X-Name-First: Carlos Eduardo
Author-X-Name-Last: León Rincón
Author-Name: Karen Juliet Gómez-González
Author-X-Name-First: Karen Juliet
Author-X-Name-Last: Leiton Rodríguez
Title: Does the Use of Foreign Currency Derivatives Affect Firms' Market Value? Evidence from Colombia
Abstract:
 This study tests the effects of risk management and hedging decisions on firms' market value. Using information on Colombian nonfinancial firms and the locale's most liquid derivatives market, we find that for a panel of eighty-one large Colombian corporations the growth rate of Tobin's <i>q</i> depends significantly on a firm's size and hedging. Our results suggest that an increase in hedging leads to a higher growth in the firms' value.
Journal: Emerging Markets Finance and Trade
Pages: 50-66
Issue: 4
Volume: 48
Year: 2012
Month: 7
Keywords: emerging market, firm value, hedging, Modigliani-Miller, risk management, Tobin's <i>q.</i>
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=P77U235011785112
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Affleck-Graves J.; C. M. Callahan; and N. Chipalkatti. 2002. "Earnings Predictability, Information Asymmetry and Market Liquidity." <i>Journal of Accounting Research</i> 40, no. 3: 561-583.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Allayannis, G., and J. P. Weston. 2001. "The Use of Foreign Currency Derivatives and Firm Market Value." <i>Review of Financial Studies</i> 14, no. 1: 243-276.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Allayannis, G.; U. Lel; and D. Miller. 2007. "Corporate Governance and the Hedging Premium Around the World." Working Paper no. 03-10, Darden School of Business, University of Virginia, Charlottesville.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Arellano, M., and S. Bond. 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations." <i>Review of Economic Studies</i> 58, no. 2: 277-297.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Aretz, K., and S. M. Bartram. 2010. "Corporate Hedging and Shareholder Value." <i>Journal of Financial Research</i> 33, no. 4: 317-371.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Aretz, K.; S. M. Bartram; and G. Dufey. 2007. "Why Hedge? Rationales for Corporate Hedging and Value Implications." <i>Journal of Risk Finance</i> 8, no. 5: 434-449.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Balestra, P., and J. Varadharajan-Krishnakumar. 1987. "Full Information Estimation of a System of Simultaneous Equations with Error Component Structure." <i>Econometric Theory</i> 3, no. 2: 223-246.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Bartram, S. M. 2000. 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"Emerging Derivatives Markets: The Case of Chile." <i>Emerging Markets Finance & Trade</i> 42, no. 2 (March-April): 65-94.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Froot, K. A.; D. S. Scharfstein; and J. C. Stein. 1993. "Risk Management: Coordinating Corporate Investment and Financing Policies." <i>Journal of Finance</i> 48, no. 5: 1629-1658.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Geczy, C.; A. M. Bernardette; and C. Schrand. 1997. "Why Firms Use Currency Derivatives." <i>Journal of Finance</i> 52, no. 4: 1323-1354.</BIBTEXT>	</REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Graham, J. R., and D. A. Rogers. 1999. "Is Corporate Hedging Consistent with Value Maximization? An Empirical Analysis." <i>Journal of Finance</i> 57, no. 2: 815-840.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Greene, W. H. 2003. <i>Econometric Analysis.</i> Upper Saddle River, NJ: Prentice Hall.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Guay, W. R., and S. P. Kothari. 2003. "How Much Do Firms Hedge with Derivatives?" <i>Journal of Financial Economics</i> 70, no. 3: 423-461.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Jin, Y., and P. Jorion. 2006. "Firm Value and Hedging: Evidence from U. S. Oil and Gas Producers." <i>Journal of Finance</i> 61, no. 2: 893-919.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Kamil, H.; A. Maiguashca, and D. Pérez. 2008. "How Do Firms Manage Currency Risk as Derivatives Markets Develop? New Micro Evidence for Colombia: 1998-2006." Banco de la República de Colombia, Bogota.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Kapitsinas, S. 2008. "The Impact of Derivatives Usage on Firm Value: Evidence from Greece." MPRA Paper no. 10947, Munich Personal RePEc Archive, September 30 (available at <a target="_blank" href='http://mpra.ub.uni-muenchen.de/10947/1/MPRA_paper_10947.pdf'>http://mpra.ub.uni-muenchen.de/10947/1/MPRA_paper_10947.pdf</a></BIBTEXT>      </REF>	  <REF>   <BIBL>30</BIBL>	<BIBTEXT> Lewellen, W. G., and S. G. Badrinath. 1997. "On the Measurement of Tobin's <i>Q.</i>" <i>Journal of Financial Economics</i> 44, no. 1: 77-122.</BIBTEXT>	 </REF>    <REF>	    <BIBL>31</BIBL>	 <BIBTEXT> Lien, D., and M. Zhang. 2008. "A Survey of Emerging Derivatives Markets." <i>Emerging Markets Finance & Trade</i> 44, no. 2 (March-April): 39-69.</BIBTEXT>	  </REF>      <REF>	<BIBL>32</BIBL>	<BIBTEXT> Lookman, A. A. 2004. "Does Hedging Increase Firm Value? Evidence from Oil and Gas Producing Firms." Paper presented at the European Finance Association meetings, Maastricht, August 18-21.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>   <BIBTEXT> Modigliani, F., and M. H. Miller. 1958. "The Cost of Capital, Corporation Finance and the Theory of Investment." <i>American Economic Review</i> 48, no. 3: 261-297.</BIBTEXT>	 </REF>      <REF>	<BIBL>34</BIBL>    <BIBTEXT> Muga, L., and R. Santamaría. 2007. "Momentum Effect in Latin American Emerging Markets." <i>Emerging Markets Finance & Trade</i> 43, no. 4: 24-45.</BIBTEXT>	</REF>	<REF>	   <BIBL>35</BIBL> <BIBTEXT> Myers, S. C. 1977. "Determinants of Corporate Borrowing." <i>Journal of Financial Economics</i> 5, no. 2: 147-175.</BIBTEXT>     </REF>      <REF>	 <BIBL>36</BIBL>   <BIBTEXT> Nance, D. R.; C. W. Smith; and C. W. Smithson. 1993. "On the Determinants of Corporate Hedging." <i>Journal of Finance</i> 48, no. 1: 267-284.</BIBTEXT>      </REF>	<REF>    <BIBL>37</BIBL>	<BIBTEXT> Nguyen, H., and R. Faff. 2007. "Are Financial Derivatives Really Value Enhancing? Australian Evidence." Working Paper, Department of Finance, University of South Australia, Adelaide.</BIBTEXT> </REF>     <REF>	    <BIBL>38</BIBL>	  <BIBTEXT> Perfect, S. B., and K. W. Wiles. 1994. "Alternative Constructions of Tobin's <i>q</i>: An Empirical Comparison." <i>Journal of Empirical Finance</i> 1, nos. 3-4: 313-341.</BIBTEXT>	 </REF>     <REF>	    <BIBL>39</BIBL>	  <BIBTEXT> Quiry, P.; M. Dallocchio; Y. Le Fur; and A. Salvi. 2005. <i>Corporate Finance.</i> New York: John Wiley & Sons.</BIBTEXT>	  </REF>      <REF>	<BIBL>40</BIBL>	<BIBTEXT> Rebonato, R. 2007. <i>The Plight of the Fortune Tellers.</i> Princeton: Princeton University Press.</BIBTEXT>	 </REF>    <REF>	    <BIBL>41</BIBL>	  <BIBTEXT> Rossi, J. L., Jr., and J. Laham. 2008. "The Impact of Hedging on Firm Value: Evidence from Brazil." <i>Journal of International Finance and Economics</i> 8, no. 1: 76-91.</BIBTEXT>	  </REF>      <REF>	<BIBL>42</BIBL>	<BIBTEXT> Rossi, J. L., Jr., and M. Moura. 2009. "The Role of Firms, Industry and Macroeconomic Factors in Firms' Hedging Policies." <i>International Journal of Strategic Management</i> 9, no. 2: 86-92.</BIBTEXT>	 </REF>      <REF>	<BIBL>43</BIBL>   <BIBTEXT> Schiozer, R. F., and R. Saito. 2009. "The Determinants of Currency Risk Management in Latin American Nonfinancial Firms." <i>Emerging Markets Finance & Trade</i> 45, no. 1 (January-February): 49-71.</BIBTEXT>	 </REF>      <REF>	<BIBL>44</BIBL>    <BIBTEXT> Smith, C. W., and R. Stulz. 1985. "The Determinants of Firms' Hedging Policies." <i>Journal of Financial and Quantitative Analysis</i> 20, no. 14: 391-405.</BIBTEXT>	</REF>	<REF>	   <BIBL>45</BIBL> <BIBTEXT> Smith, C. W., and R. L. Watts. 1992. "The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies." <i>Journal of Financial Economics</i> 32, no. 3: 263-292.</BIBTEXT>     </REF>      <REF>	 <BIBL>46</BIBL>   <BIBTEXT> Stulz, R. 1984. "Optimal Hedging Policies." <i>Journal of Financial and Quantitative Analysis</i> 19, no. 2: 127-140.</BIBTEXT>      </REF>	<REF>    <BIBL>47</BIBL>	<BIBTEXT> Williamson, O. E. 1970. <i>Corporate Control and Business Behavior: An Inquiry into the Effects of Organizational Form on Enterprise Behavior.</i> Englewood Cliffs, NJ: Prentice Hall.</BIBTEXT> </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:4:p:50-66




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 5
Volume: 48
Year: 2012
Month: 9
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=9707455065633338
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:    
Handle: RePEc:mes:emfitr:v:48:y:2012:i:5:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chang Wang
Author-X-Name-First: Ming-Chang
Author-X-Name-Last: Wang
Author-Name: Yung-Chuan Lee
Author-X-Name-First: Yung-Chuan
Author-X-Name-Last: Lee
Title: The Signaling Effect of Independent Director Appointments
Abstract:
 We examine the value relevance of voluntary versus mandatory independent director appointments based on market reaction. Our analytical model proposes that the market expects voluntary appointments to bring more positive value than mandatory appointments since voluntary appointments signal the integrity of the firm, and this signaling effect is more obvious for firms in which the market recognizes the existence of severe agency problems. Using a unique empirical setting in Taiwan, we find that voluntary appointments are associated with higher abnormal returns from appointment announcements, particularly for firms with severe agency problems, as indicated by the deviation between ownership and control.
Journal: Emerging Markets Finance and Trade
Pages: 25-47
Issue: 5
Volume: 48
Year: 2012
Month: 9
Keywords: agency problem, deviation between ownership and control, independent directors, monitoring effect, signaling effect
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A472341316UP5664
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akerlof, G. 1970. "The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism." <i>Quarterly Journal of Economics</i> 84, no. 3: 488-500.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Anderson, R., and D. M. Reeb. 2003. "Founding Family Ownership and Firm Performance: Evidence from the S&P 500." <i>Journal of Finance</i> 58, no. 3: 1301-1329.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bhattacharya, S. 1979. "Imperfect Information, Dividend Policy, and ‘the Bird in the Hand’ Fallacy." <i>Bell Journal of Economics</i> 10, no. 1: 259-270.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Borokhovich, K. A.; R. Parrino; and T. Trapani. 1996. "Outside Directors and CEO Selection." <i>Journal of Financial and Quantitative Analysis</i>, 31, no. 3: 337-355.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Brennan, M. J., and T. E. Copeland. 1988. 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Lee; and T. Woidtke, 2001. "Family Control and Corporate Governance: Evidence from Taiwan." <i>International Review of Finance</i> 2, nos. 1-2: 21-48.</BIBTEXT>	 </REF> 
Handle: RePEc:mes:emfitr:v:48:y:2012:i:5:p:25-47




Template-Type: ReDIF-Article 1.0
Author-Name: José Eduardo Gómez-González
Author-X-Name-First: José Eduardo
Author-X-Name-Last: Gómez-González
Author-Name: Andrés F. García-Suaza
Author-X-Name-First: Andrés F.
Author-X-Name-Last: García-Suaza
Title: A Simple Test of Momentum in Foreign Exchange Markets
Abstract:
 This study proposes a new method for testing for the presence of momentum in nominal exchange rates, using a probabilistic approach. Using data for eight emerging economies, we show evidence of exchange rate inertia; however, the presence of momentum is asymmetric, being stronger in moments of currency depreciation than in moments of appreciation. This behavior may be associated with central bank intervention.
Journal: Emerging Markets Finance and Trade
Pages: 66-77
Issue: 5
Volume: 48
Year: 2012
Month: 9
Keywords: emerging economies, foreign exchange markets, hazard duration analysis, momentum
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B484LG51111T5445
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Balvers, R., and Y. Wu. 2006. "Momentum and Mean Reversion Across National Equity Markets." <i>Journal of Empirical Finance</i> 13, no. 1: 24-48.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Beine, M.; J. Lahaye; S. Laurent; C. J. Neely; and F. C. Palm. 2006. "Central Bank Intervention and Exchange Rate Volatility, Its Continuous and Jump Components." Working Paper no. 2006-031C, Federal Reserve Bank of St. Louis, St. Louis (available at <a target="_blank" href='http://research.stlouisfed.org/wp/2006/2006-031.pdf'>http://research.stlouisfed.org/wp/2006/2006-031.pdf</a></BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Calvo, G., and C. M. Reinhart. 2002. "Fear of Floating." <i>Quarterly Journal of Economics</i> 117, no. 2: 379-408.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Canales-Kriljenko, J. I. 2003. "Foreign Exchange Intervention in Developing and Transition Economies: Results of a Survey." Working Paper no. 03/95, International Monetary Fund, Washington, DC (available at <a target="_blank" href='http://www.imf.org/external/pubs/cat/longres.cfm?sk=16514.0/'>www.imf.org/external/pubs/cat/longres.cfm?sk=16514.0/</a></BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Chiang, T., and C. Jiang. 1995. "Foreign Exchange Returns over Short and Long Horizons." <i>International Review of Economics and Finance</i> 4, no. 3: 267-282.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Domac, I., and A. Mendoza. 2004. "Is There Room for Foreign Exchange Interventions Under an Inflation Targeting Framework? Evidence from Mexico and Turkey." Policy Research Working Paper no. 3288, World Bank, Washington, DC.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Echavarría, J. J.; D. M. Vásquez; and M. Villamizar. 2009. 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"Dividend Yields and Expected Stock Returns." <i>Journal of Financial Economics</i> 22, no. 1: 3-25.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	  <BIBTEXT> Garcia, L. 2003. "Trading Rule Profits and Foreign Exchange Market Intervention in Emerging Economies." College of Business and Economics, West Virginia University, Morgantown, VA.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Gómez-González, J. E., and I. P. O. Hinojosa. 2010. "Estimation of Conditional Time-Homogeneous Credit Quality Transition Matrices." <i>Economic Modelling</i> 27, no. 1: 89-96.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Gómez-González, J. E.; P. Morales; F. Pineda; and N. Zamudio. 2009. "An Alternative Methodology for Estimating Credit Quality Transition Matrices." <i>Journal of Risk Management in Financial Institutions</i> 2, no. 4: 353-364.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Guimaraes, R., and C. Karacadag. 2004. "The Empirics of Foreign Exchange Intervention in Emerging Market Economies: The Cases of Mexico and Turkey." Working Paper no. 04/123, International Monetary Fund, Washington, DC <a target="_blank" href='http://repec.org/mmfc05/paper68.pdf'>http://repec.org/mmfc05/paper68.pdf</a></BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Jegadeesh, N., and S. Titman. 2001. "Profitability of Momentum Strategies: An Evaluation of Alternative Explanations." <i>Journal of Finance</i> 56, no. 2: 699-720.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Kara, H., and F. Ögünç. 2008. "Inflation Targeting and Exchange Rate Pass-Through: The Turkish Experience." <i>Emerging Markets Finance & Trade</i> 44, no. 6 (November-December): 52-66.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Kocenda, E.; T. Poghosyan; and P. Zemcík. 2008. "Modeling Foreign Exchange Risk Premium in Armenia." <i>Emerging Markets Finance & Trade</i> 44, no. 1 (January-February): 119-136.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> LeBaron, B. 1999. "Technical Trading Rule Profitability and Foreign Exchange Intervention." <i>Journal of International Economics</i> 49, no. 1: 125-214.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Levich, R. 1989. "Is the Foreign Exchange Market Efficient?" <i>Oxford Review of Economic Policy</i> 5, no. 3: 40-60.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Levy-Yeyati, E. L., and F. Sturzenegger. 2007. "Fear of Floating in Reverse: Exchange Rate Policy in the 2000s." Inter-American Development Bank, Washington, DC.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Malkiel, B. G. 2003. "The Efficient Market Hypothesis and Its Critics." <i>Journal of Economic Perspectives</i> 17, no. 1: 59-82.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Marsh, I. W. 2000. "High-Frequency Markov Switching Models in the Foreign Exchange Market." <i>Journal of Forecasting</i> 19, no. 2: 123-134.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Meese, R., and K. Rogoff. 1983. "Empirical Exchange Rate Models of the 70s: Do They Fit out of Sample?" <i>Journal of International Economics</i> 14, nos. 1-2: 3-24.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Michello, F. A., and S. S. H. Chowdhury. 2009. "Momentum Strategies: Evidence from the Indian Stock Market." Department of Economics and Finance, Middle Tennessee State University, Murfreesboro (available at <a target="_blank" href='http://frank.mtsu.edu/~ssc2q/Essay%201.pdf'>http://frank.mtsu.edu/~ssc2q/Essay%201.pdf</a></BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Muga, L. F., and R. Santamaría. 2007. "Momentum Effect in Latin American Emerging Markets." <i>Emerging Markets Finance & Trade</i> 43, no. 4 (July-August): 24-45.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Neely, C. J. 1997. "Technical Analysis in the Foreign Exchange Market: A Layman's Guide." <i>Federal Reserve Bank of St. Louis Review</i> 79, no. 5: 23-38.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Neely, C. J. 2001. "The Practice of Central Bank Intervention: Looking Under the Hood." <i>Federal Reserve Bank of St. Louis Review</i> 83, no. 3, 1-10.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Okunev, J., and D. White. 2003. "Do Momentum-Based Strategies Still Work in Foreign Currency Markets?" <i>Journal of Financial and Quantitative Analysis</i> 38, no. 2: 425-447.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Osler, C. L. 2008. "Foreign Exchange Microstructure: A Survey." In <i>Springer Encyclopedia of Complexity and System Science</i>, ed. R. A. Meyers, pp. 5404-5438. Englewood, NJ: Springer.</BIBTEXT>      </REF>	  <REF>   <BIBL>30</BIBL>	<BIBTEXT> Pavlova, I., and A. M. Parhizgari. 2008. "International Momentum Strategies: A Genetic Algorithm Approach." Department of Business, Florida International University, Miami.</BIBTEXT>	 </REF>    <REF>	    <BIBL>31</BIBL>	  <BIBTEXT> Pontines, V., and R. S. Rajan. 2011. "Foreign Exchange Market Intervention and Reserve Accumulation in Emerging Asia: Is There Evidence of Fear of Appreciation?" <i>Economics Letters</i> 111, no. 3: 252-255.</BIBTEXT>	  </REF>      <REF>	<BIBL>32</BIBL>	<BIBTEXT> Qi, M., and Y. Wu. 2006. "Technical Trading-Rule Profitability, Data Snooping, and Reality Check: Evidence from the Foreign Exchange Market." <i>Journal of Money, Credit and Banking</i> 38, no. 8: 2135-2158.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>   <BIBTEXT> Reinhart, C. M., and K. Rogoff. 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation." <i>Quarterly Journal of Economics</i> 119, no. 1: 1-48.</BIBTEXT>	 </REF>      <REF>	<BIBL>34</BIBL>    <BIBTEXT>Rime, D.; L. Sarno; and E. Sojli. 2010. "Exchange Rate Forecasting, Order Flow and Macroeconomic Information." <i>Journal of International Economics</i> 80, no. 1: 72-88.</BIBTEXT>	</REF>	<REF>	   <BIBL>35</BIBL> <BIBTEXT> Sager, M., and M. P. Taylor. 2008. "Commercially Available Order Flow Data and Exchange Rate Movements: Caveat Emptor." <i>Journal of Money, Credit and Banking</i> 40, no. 4: 583-625.</BIBTEXT>     </REF>      <REF>	 <BIBL>36</BIBL>   <BIBTEXT> Sweeny, R. 1986. "Beating the Foreign Exchange Market." <i>Journal of Finance</i> 41, no. 1: 163-182.</BIBTEXT>      </REF>	<REF>    <BIBL>37</BIBL>	<BIBTEXT> Tapia, M., and A. P. Tokman. 2004. "Effects of Foreign Exchange Intervention Under Public Information: The Chilean Case." <i>Economia</i> 4, no. 2: 1-42.</BIBTEXT> </REF>     <REF>	    <BIBL>38</BIBL>	  <BIBTEXT> Taylor, M. P., and H. Allen. 1992. "The Use of Technical Analysis in the Foreign Exchange Market." <i>Journal of International Money and Finance</i> 11, no. 3: 304-314.</BIBTEXT>	 </REF> 
Handle: RePEc:mes:emfitr:v:48:y:2012:i:5:p:66-77




Template-Type: ReDIF-Article 1.0
Author-Name: Alejandro Arrieta Herrera
Author-X-Name-First: Alejandro Arrieta
Author-X-Name-Last: Herrera
Author-Name: Jorge Guillen Uyen
Author-X-Name-First: Jorge Guillen
Author-X-Name-Last: Uyen
Title: Currency-Induced Credit Risk in a Dollarized Economy
Abstract:
 We analyze the effects of exchange rate fluctuations on corporate credit default in a dollarized economy. The application, before an exogenous exchange rate shock, of a new regulation concerning currency-induced credit risk (CICR) in the Peruvian banking system created natural conditions for a comparison between exposed and unexposed corporate borrowers. We use firm-level data to find that CICR and debt dollarization have opposite effects on credit risk. While CICR increases default, debt dollarization reduces it. Our results suggest that banks transfer exchange risk as a hedging mechanism by lending to such borrowers in dollars only.
Journal: Emerging Markets Finance and Trade
Pages: 105-114
Issue: 5
Volume: 48
Year: 2012
Month: 9
Keywords: credit risk, dollarization, exchange rate fluctuations
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C31312310708G01G
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Belloti, T., and J. Crook. 2007. "Credit Scoring with Macroeconomic Variables Using Survival Analysis." Working Paper no. 0715, Wharton School of Business Financial Institutions Center, Philadelphia.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bleakley, H., and K. Cowan. 2006. "Maturity Mismatch and Financial Crises: Evidence from Emerging Market Corporations." Working Paper no. 4433, Federal Reserve Bank of San Francisco.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Broda, C., and E. Levy-Yeyati. 2003. "Endogenous Deposit Dollarization." Staff Papers no. 160, Federal Reserve Bank of New York.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Carranza, L.; J. Cayo; and J. Galsón-Sanchez. 2003. "Exchange Rate Volatility and Economic Performance in Peru: A Firm Level Analysis." <i>Emerging Markets Review</i> 4, no. 4: 472-496.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Cayazzo, J.; A. Garcia Pascual; E. Gutierrez; and S. Heysen. 2006. "Toward an Effective Supervision of Partially Dollarized Banking Systems." Working Paper no. 0632, Inter-American Development Bank, Washington, DC.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chan, L. C.; C. Nai-Fu; and D. Hsieh. 1985. "An Exploratory Investigation of the Firm Size Effect." <i>Journal of Financial Economics</i> 14, no. 3: 451-471.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Cowan, K.; E. Hansen; and L. Herrera. 2005. "Currency Mismatches, Balance Sheet Effects and Hedging in Chilean Non-Financial Corporations." Working Paper no. 521, Inter-American Development Bank, Washington, DC.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> De Nicolóa, G.; P. Honohanb; and A. Izea. 2005. "Dollarization of Bank Deposits: Causes and Consequences." <i>Journal of Banking & Finance</i> 29, no. 7: 1697-1727.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Ennis, H. 2000. "Banking and the Political Support for Dollarization." Working Paper no. 00-12, Federal Reserve Bank of Richmond.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Feridun, M. 2009. "Determinants of Exchange Market Pressure in Turkey: An Econometric Investigation." <i>Emerging Markets Finance & Trade</i> 45, no. 2 (March-April): 65-81.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	<BIBTEXT> Fuentes, M. 2009. "Dollarization of Debt Contracts: Evidence from Chilean Firms." <i>Developing Economies Journal</i> 47, no. 4: 458-487.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Galindo, A.; U. Paniza; and F. Schiantarelli. 2003. "Debt Composition and Balance Sheet Effects of Currency Depreciation: A Summary of the Micro Evidence." <i>Emerging Markets Review</i> 4, no. 4: 330-339.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Gulde, A. M.; D. S. Hoelscher; A. Ize; D. Marston; and G. De Nicoló. 2004. "Financial Stability in Dollarized Economies." Occasional Paper no. 230, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Ize, A., and A. Powell. 2004. "Prudential Responses to De Facto Dollarization." Working Paper no. 04/66, International Monetary Fund, Washington, DC.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Korhonen, L., and A. Mehrotra. 2010. "Money Demand in Post-Crisis Russia: Dedollarization and Remonetization." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 5-19.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Machicado, C. 2008. "Liquidity Shocks and the Dollarization of a Banking System." <i>Journal of Macroeconomics</i> 30, no. 1: 369-381.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Magud, N. 2009. "Currency Mismatch, Openness and Exchange Rate Regime Choice." <i>Journal of Macroeconomics</i> 32, no. 1: 68-89.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Ozsoz, E. 2009. "Evaluating the Effects of Deposit Dollarization in Financial Intermediation in Transition Economies." <i>Emerging Markets Finance & Trade</i> 47, no. 4 (July-August): 5-24.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Reinhart, C., and G. Kaminsky. 1999. "The Twin Crisis: The Causes of Banking and Balance of Payment Problems." <i>American Economic Review</i> 89, no. 3: 473-500.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Serieux, J. 2009. "Partial Dollarization, Exchange Rates, and Firm Investment in Paraguay." <i>Developing Economies Journal</i> 47, no. 1: 53-80.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Wooldridge, J. 2002. <i>Econometric Analysis of Cross Section and Panel Data.</i> Cambridge: MIT Press.</BIBTEXT>	 </REF> 
Handle: RePEc:mes:emfitr:v:48:y:2012:i:5:p:105-114




Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Chuan Tsai
Author-X-Name-First: Shih-Chuan
Author-X-Name-Last: Tsai
Title: Liquidity and Yield Curve Estimation
Abstract:
 This paper examines the effect of incorporating liquidity into the Nelson-Siegel-Svensson model from the perspective of out-of-sample forecasting ability and trading performance. The liquidity consideration reduces the distortion from concentrated trading activities and significantly increases the forecasting ability of the dynamic curve-fitting model. Taking liquidity into account can improve the risk-adjusted returns of a trading strategy developed from the forecasting error series. The improvement in the forecasting ability and the trading performance is consistent across different sets of parameter values and different bond issues, and it becomes more substantial when the forecasting period expands.
Journal: Emerging Markets Finance and Trade
Pages: 4-24
Issue: 5
Volume: 48
Year: 2012
Month: 9
Keywords: forecast, liquidity, trading strategy, yield curve
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R553877J73253145
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alan, S.; O. Attanasio; and M. Browning. 2009. "Estimating Euler Equations with Noisy Data: Two Exact GMM Estimators." <i>Journal of Applied Econometrics</i> 24, no. 2: 309-324.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Amihud, Y., and H. Mendelson. 1986. "Asset Pricing and the Bid-Ask Spread." <i>Journal of Financial Economics</i> 17, no. 2: 223-249.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Amihud, Y., and H. Mendelson. 1991. "Liquidity, Maturity, and the Yields on U. S. Treasury Securities." <i>Journal of Finance</i> 46, no. 4: 1411-1425.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bliss, R. R. 1997. "Testing Term Structure Estimation Methods." <i>Advances in Futures and Option Research</i> 9, no. 1: 197-232.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Chang, C. Y., and F. S. Shie. 2011. 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"An Investigation on Information Transmission Between Stocks of Far Eastern Countries and Their American Depositary Receipts." <i>Emerging Markets Finance & Trade</i> 44, no. 4 (July-August): 40-61.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Nelson, C. R., and A. F. Siegel. 1987. "Parsimonious Modeling of Yield Curve." <i>Journal of Business</i> 60, no. 4: 473-489.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Silber, W. L. 1991. "Discounts on Restricted Stocks: The Impact of Illiquidity on Price." <i>Financial Analyst Journal</i> 47, no. 4 (July-August): 60-64.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Smallwood, A., and S. C. Norrbin. 2008. "An Encompassing Test of Real Interest Rate Equalization." <i>Review of International Economics</i> 17, no. 1: 114-126.</BIBTEXT>	 </REF>   <REF>	    <BIBL>22</BIBL>	  <BIBTEXT> Subramanian, K. V. 2001. "Term Structure Estimation in Illiquid Government Bond Markets: An Empirical Analysis for India." <i>Journal of Fixed Income</i> 11, no. 1: 77-86.</BIBTEXT>	  </REF>      <REF>	<BIBL>23</BIBL>	<BIBTEXT> Svensson, L. E. O. 1994. "Estimating and Interpreting Forward Interest Rates: Sweden 1992-1994." Working Paper no. 4871, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>   <BIBTEXT> Tang C. Y., and S. X. Chen. 2009. "Parameter Estimation and Bias Correction for Diffusion Processes." <i>Journal of Econometrics</i> 149, no. 1: 65-81.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>    <BIBTEXT> Uribe, M., and V. Yue. 2006. "Country Spreads and Emerging Countries: Who Drives Whom?" <i>Journal of International Economics</i> 69, no. 1: 6-36.</BIBTEXT>	</REF>	<REF>	   <BIBL>26</BIBL> <BIBTEXT> Vayanos, D., and T. Wang. 2007. "Search and Endogenous Concentration of Liquidity in Asset Markets." <i>Journal of Economic Theory</i> 136, no. 1: 66-104.</BIBTEXT>     </REF>      <REF>	 <BIBL>27</BIBL>   <BIBTEXT> Warga, A. 1992. "Bond Returns, Liquidity, and Missing Data." <i>Journal of Financial and Quantitative Analysis</i> 27, no. 4: 605-617.</BIBTEXT>      </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:5:p:4-24




Template-Type: ReDIF-Article 1.0
Author-Name: Ainura Uzagalieva
Author-X-Name-First: Ainura
Author-X-Name-Last: Uzagalieva
Author-Name: Evžen Kocenda
Author-X-Name-First: Evžen
Author-X-Name-Last: Kocenda
Author-Name: Antonio Menezes
Author-X-Name-First: Antonio
Author-X-Name-Last: Menezes
Title: Technological Innovation in New EU Markets
Abstract:
 We analyze the role of innovation in the technological development of four new members of the European Union: the Czech Republic, Hungary, Poland, and Slovakia. For that purpose, we use a novel approach, modeling the empirical relationship between intraindustrial bilateral trade flows, which represent the level of technological progress, and innovation expenditures within the context of a gravity model having a set of appropriate instrumental variables to account for the potential endogeneity of innovation to trade. We show that innovation efforts in high-tech industries exhibit a strong effect on the technological progress of the region and they are closely linked to foreign direct investment and multinationals. As foreign-owned subsidiaries become a part of the innovation systems and industrial structure of the host country, they promote overall technological growth in the region.
Journal: Emerging Markets Finance and Trade
Pages: 48-65
Issue: 5
Volume: 48
Year: 2012
Month: 9
Keywords: European Union, foreign direct investment, imitation, innovation, international trade
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T33833676W511838
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Barro, R., and X. Sala-i-Martin. 1997. "Technological Diffusion, Convergence, and Growth." <i>Journal of Economic Growth</i> 2, no. 1: 1-26.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bernard, B., and B. Jensen. 1999. "Exceptional Exporter Performance: Cause, Effect, or Both?" <i>Journal of International Economics</i> 47, no. 1: 1-25.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bleaney, M., and K. Wakelin. 2002. "Efficiency, Innovation and Exports." <i>Oxford Bulletin of Economic and Statistics</i> 64, no. 1: 3-16.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Borrás, S. 2004. "System of Innovation Theory and the European Union." <i>Science and Public Policy</i> 31, no. 6: 425-433.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bottazzi, L., and G. Peri. 2003. 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Micro-Dynamic Evidence from Colombia, Mexico, and Morocco." <i>Quarterly Journal of Economics</i> 113, no. 3: 903-947.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Costa, I., and S. Filippov. 2008. "Foreign-Owned Subsidiaries: A Neglected Nexus Between Foreign Direct Investment, Industrial and Innovation Policies." <i>Science and Public Policy</i> 35, no. 6: 379-390.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	<BIBTEXT> Devinney, T. M. 1993. "How Well Do Patents Measure New Product Activity?" <i>Economic Letters</i> 41, no. 4: 447-450.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Eaton, J., and S. Kortum. 2002. "Technology, Geography, and Trade." <i>Econometrica</i> 70, no. 5: 1741-1779.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Ernst, H. 2001. "Patent Applications and Subsequent Changes of Performance: Evidence from Time-Series Cross-Section Analyses on the Firm Level." <i>Research Policy</i> 30, no. 2: 105-119.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Estrin, S.; J. Hanousek; E. Kocenda; and J. Svejnar. 2009. "Effects of Privatization and Ownership in Transition Economies." <i>Journal of Economic Literature</i> 47, no. 3: 699-728.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Eurostat. 2004. "Sources and Resources for EU Innovation." Statistics in Focus, Theme 9-5/2004, Brussels.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Eurostat. 2008. "Community Innovation Survey." Database, Brussels (available at <a target="_blank" href='http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database/'>http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database/</a></BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Evenett, S., and W. Keller. 2002. 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"Trade Liberalization and Import Margins." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 4-22.</BIBTEXT>	 </REF>   <REF>	    <BIBL>22</BIBL>	  <BIBTEXT> Griliches, Z. 1998. <i>R&D and Productivity: The Econometric Evidence.</i> Chicago: University of Chicago Press.</BIBTEXT>	  </REF>      <REF>	<BIBL>23</BIBL>	<BIBTEXT> Grossman, G. M., and E. Helpman. 1991. <i>Innovation and Growth in the Global Economy.</i> Cambridge: MIT Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>   <BIBTEXT> Gruber, H., and P. Lloyd. 1975. <i>Intra-Industry Trade.</i> London: Macmillan.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>    <BIBTEXT> Grupp, H. 1998. <i>Foundation of the Economics of Innovation: Theory, Measurement, and Practice.</i> Northampton, MA: Edward Elgar.</BIBTEXT>	</REF>	<REF>	   <BIBL>26</BIBL> <BIBTEXT> Grupp, H., and S. Maital. 2000. "Perceived Innovation of Israel's Largest Firms: An Empirical Study." <i>Technovation</i> 20, no. 1: 129-137.</BIBTEXT>     </REF>      <REF>	 <BIBL>27</BIBL>   <BIBTEXT> Hagedoorn, J., and M. Cloodt. 2003. "Measuring Innovative Performance: Is There an Advantage in Using Multiple Indicators?" <i>Research Policy</i> 32, no. 8: 1365-1379.</BIBTEXT>      </REF>   <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Hanousek, J.; E. Kocenda; and M. Maurel. 2011. "Direct and Indirect Effects of FDI in Emerging European Markets: A Survey and Meta-Analysis." <i>Economic Systems</i> 35, no. 3: 301-322.</BIBTEXT>	  </REF>      <REF>	<BIBL>29</BIBL>	<BIBTEXT> Helpman, E. 1981. "International Trade in the Presence of Product Differentiation, Economies of Scale and Monopolistic Competition: A Chamberlin-Heckscher-Ohlin Approach." <i>Journal of International Economics</i> 11, no. 3: 305-340.</BIBTEXT>	 </REF>      <REF>	<BIBL>30</BIBL>   <BIBTEXT> Hotopp, U.; S. Radosevoc; and K. Bishop. 2005. "Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-Based Learning." <i>Emerging Markets Finance & Trade</i> 41, no. 4 (July-August): 20-37.</BIBTEXT>	 </REF>      <REF>	<BIBL>31</BIBL>    <BIBTEXT> Hung, M. L., and P. L. Chin. 2011. "An AHP Study of Survival Factors for Small-Medium Sized Multinational Firms in Taiwan." <i>African Journal of Business Management</i> 5, no. 6: 2093-2104.</BIBTEXT>	</REF>	<REF>	   <BIBL>32</BIBL> <BIBTEXT> Jaffe, A., and M. Trajtenberg. 2002. <i>Patent, Citations and Innovations: A Window on the Knowledge Economy.</i> Cambridge: MIT Press.</BIBTEXT>     </REF>      <REF>	 <BIBL>33</BIBL>   <BIBTEXT> Jones, C., and C. Williams. 2000. "Too Much of a Good Thing? The Economics of Investment in R&D." <i>Journal of Economic Growth</i> 5, no. 1: 65-85.</BIBTEXT>      </REF>	<REF>    <BIBL>34</BIBL>	<BIBTEXT> Kocenda, E., and J. Valachy. 2006. "Exchange Rate Volatility and Regime Change: Visegrad Comparison." <i>Journal of Comparative Economics</i> 34, no. 4: 727-753.</BIBTEXT> </REF>     <REF>   <BIBL>35</BIBL>	<BIBTEXT> Kocenda, E.; A. M. Kutan; and T. M. Yigit. 2006. "Pilgrims to the Eurozone: How Far, How Fast?" <i>Economic Systems</i> 30, no. 4: 311-327.</BIBTEXT>	</REF>	 <REF>	   <BIBL>36</BIBL>	<BIBTEXT> Kocenda, E.; 2008. "Fiscal Convergence in the European Union." <i>North-American Journal of Economics and Finance</i> 19, no. 3: 319-330.</BIBTEXT>      </REF>	  <REF>   <BIBL>37</BIBL>	<BIBTEXT> Krugman, P. 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income." <i>Journal of Political Economy</i> 87, no. 2: 253-266.</BIBTEXT>	 </REF>    <REF>	    <BIBL>38</BIBL>	<BIBTEXT> Lachenmaier, S., and L. Woessmann. 2004. "Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles Using German Micro Data." Working Paper no. 1178, CEFifo, Munich.</BIBTEXT>	  </REF>      <REF>	<BIBL>39</BIBL>	<BIBTEXT> Landesmann, M., and R. Stehrer. 2007. "Modelling International Economic Integration: Patterns of Catching-Up and Foreign Direct Investment." <i>Economia Politica</i> 23, no. 3: 335-362.</BIBTEXT>	 </REF>      <REF>	<BIBL>40</BIBL>   <BIBTEXT> Lansbury, M.; N. Pain; and K. Smidkova. 1996. "Foreign Direct Investment in Central Europe Since 1990: An Econometric Study." <i>National Institute Economic Review</i> 156, no. 1: 104-114.</BIBTEXT>	 </REF>      <REF>	<BIBL>41</BIBL>    <BIBTEXT> Lefilleur, J., and M. Maurel. 2010. "Inter- and Intra-Industry Linkages as a Determinant of FDI in Central and Eastern Europe." <i>Economic Systems</i> 34, no. 3: 309-330.</BIBTEXT>	</REF>	<REF>	   <BIBL>42</BIBL> <BIBTEXT> Linneman, H. 1966. <i>An Economic Study of International Trade Flows.</i> Amsterdam: North-Holland.</BIBTEXT>     </REF>   <REF>	    <BIBL>43</BIBL>	  <BIBTEXT> Morada-Gonzalez, L., and J. M. Viaene. 2005. "Trade Policy and Quality Leadership in Transition Economies." <i>European Economic Review</i> 49, no. 2: 359-385.</BIBTEXT>	  </REF>      <REF>	<BIBL>44</BIBL>	<BIBTEXT> Moudatsou, A. 2003. "Foreign Direct Investment and Economic Growth in the European Union." <i>Journal of Economic Integration</i> 18, no. 4: 689-707.</BIBTEXT>	 </REF>      <REF>	<BIBL>45</BIBL>   <BIBTEXT> Organization for Economic Cooperation and Development (OECD). 1997a. <i>National Innovation Systems.</i> Paris.</BIBTEXT>	 </REF>      <REF>	<BIBL>46</BIBL>    <BIBTEXT> Organization for Economic Cooperation and Development (OECD). 1997b. <i>Revision of High Technology Sector and Product Classification.</i> Paris.</BIBTEXT>	</REF>	<REF>	   <BIBL>47</BIBL> <BIBTEXT> Organization for Economic Cooperation and Development (OECD). 2008a. "Foreign Direct Investment Statistics." Database, Paris (available at <a target="_blank" href='http://stats.oecd.org'>http://stats.oecd.org</a></BIBTEXT>     </REF>      <REF>	 <BIBL>48</BIBL>   <BIBTEXT> Organization for Economic Cooperation and Development (OECD). 2008b. "Science, Technology and Patents." Database, Paris (available at <a target="_blank" href='http://stats.oecd.org'>http://stats.oecd.org</a></BIBTEXT>      </REF>	<REF>    <BIBL>49</BIBL>	<BIBTEXT> Perez-Sebastian, F. 2007. "Public Support to Innovation and Imitation in a Non-Scale Growth Model." <i>Journal of Economic Dynamics and Control</i> 31, no. 12: 3791-3821.</BIBTEXT> </REF>     <REF>   <BIBL>50</BIBL>	<BIBTEXT> Pianta, M. 2005. "Innovation and Employment." In <i>Handbook of Innovation</i>, ed. J. Fagerberg, D. Mowery, and R. Nelson. Oxford: Oxford University Press.</BIBTEXT>	</REF>	 <REF>	   <BIBL>51</BIBL>	<BIBTEXT> Rivera-Batiz, L., and P. Romer. 1991. "Economic Integration and Endogenous Growth." <i>Quarterly Journal of Economics</i> 106, no. 2: 531-555.</BIBTEXT>      </REF>	  <REF>   <BIBL>52</BIBL>	<BIBTEXT> Segerstrom, P. S. 2000. "The Long-Run Growth Effect of R&D Subsidies." <i>Journal of Economic Growth</i> 5, no. 3: 277-305.</BIBTEXT>	 </REF>    <REF>	    <BIBL>53</BIBL>	<BIBTEXT> Welfens, P. 1999. <i>Globalization of the Economy, Unemployment and Innovation: Structural Change, Schumpeterian Adjustment, and New Policy Challenges.</i> New York: Springer.</BIBTEXT>	  </REF>   <REF>	    <BIBL>54</BIBL>	<BIBTEXT> Worz, J. 2005. "Dynamics of Trade Specialization in Developed and Less Developed Countries." <i>Emerging Markets Finance & Trade</i>, 41, no. 3 (May-June): 92-111.</BIBTEXT>	  </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:5:p:48-65




Template-Type: ReDIF-Article 1.0
Author-Name: Burcu Aydin
Author-X-Name-First: Burcu
Author-X-Name-Last: Aydin
Author-Name: Deniz Igan
Author-X-Name-First: Deniz
Author-X-Name-Last: Igan
Title: Bank Lending in Turkey: Effects of Monetary and Fiscal Policies
Abstract:
 We study the impact of monetary and fiscal policies on credit growth in Turkey using bank-level data from the last quarter of 2002 to the first quarter of 2008. We find evidence that the liquidity-constrained banks have a sharper decline in lending during contractionary monetary policies and that the crowding-out effect diminishes more for banks with a retail banking focus when the government adopts fiscal discipline. However, the results are statistically weak. Hence, the evidence is not strong enough to irrefutably document the bank lending channel and the impact of government finances on loan supply in Turkey even though these effects may be operational.
Journal: Emerging Markets Finance and Trade
Pages: 78-104
Issue: 5
Volume: 48
Year: 2012
Month: 9
Keywords: Credit growth, fiscal policy, monetary policy
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U762438UQ3782632
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akyürek, C. 2006. "The Turkish Crisis of 2001: A Classic?" <i>Emerging Markets Finance & Trade</i> 42, no. 1 (January-February): 5-32.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Arena, M.; F. F. Vázquez; and C. Reinhart. 2007. "The Lending Channel in Emerging Economies: Are Foreign Banks Different?" Working Paper no. 07/48, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bank for International Settlements. 2006. "The Banking System in Emerging Economies: How Much Progress Has Been Made?" BIS Papers, no. 28, Bank for International Settlements, Basel.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bernanke, B. S., and M. Gertler. 1995. "Inside the Black Box: The Credit Channel of Monetary Policy Transmission." <i>Journal of Economic Perspectives</i> 9, no. 4: 27-48.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Brooks, P. K. 2007. "The Bank Lending Channel of Monetary Transmission: Does It Work in Turkey?" Working Paper no. 07/272, International Monetary Fund, Washington, DC.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Çapoglu, G. 2001. "Anatomy of a Failed IMF Program: The 1999 Program in Turkey." <i>Emerging Markets Finance & Trade</i> 40, no. 3 (May-June): 84-100.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Caprio, G., and D. Klingebiel. 1999. "Episodes of Systemic and Borderline Financial Crises." World Bank, Washington, DC.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Degirmen, S. 2007. "Crowding Out, Interest and Exchange Rate Shocks, and Bank Lending: Evidence from Turkey." <i>International Research Journal of Finance and Economics</i> 10 (July): 76-87.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Ersel, H., and F. Özatay. 2008. "Fiscal Dominance and Inflation Targeting: Lessons from Turkey." <i>Emerging Markets Finance & Trade</i> 44, no. 6 (November-December): 38-51.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Freixas, X. 2005. "Deconstructing Relationship Banking." <i>Investigaciones Económicas</i> 29, no. 1: 3-31.</BIBTEXT>	 </REF>    <REF>	<BIBL>11</BIBL>	<BIBTEXT> Hauner, D. 2008. "Credit to Government and Banking Sector Performance." <i>Journal of Banking and Finance</i> 32, no. 8: 1499-1507.</BIBTEXT>	</REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> International Monetary Fund. 2007. "Turkey: Financial System Stability Assessment." Country Report no. 07/361, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Ismihan, M., and K. Metin-Özcan. 2009. "Productivity and Growth in an Unstable Emerging Market Economy: The Case of Turkey, 1960-2004." <i>Emerging Markets Finance & Trade</i> 45, no. 5 (September-October): 4-18.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Kashyap, A. K., and J. C. Stein. 2000. "What Do a Million Observations on Banks Say about the Transmission of Monetary Policy?" <i>American Economic Review</i> 90, no. 3: 407-428.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> McHale, J. 2001. "Turkey." Program on Exchange Rate Crises in Emerging Markets, National Bureau of Economic Research, Cambridge, MA, July 18 (available at <a target="_blank" href='http://www.nber.org/crisis/turkey_report.html'>www.nber.org/crisis/turkey_report.html</a></BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Sengönül, A., and W. Thorbecke. 2005. "The Effect of Monetary Policy on Bank Lending in Turkey." <i>Applied Financial Economics</i> 15, no. 13: 931-934.</BIBTEXT>	  </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:5:p:78-104




Template-Type: ReDIF-Article 1.0
Author-Name: Meng-Wen Wu
Author-X-Name-First: Meng-Wen
Author-X-Name-Last: Wu
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Chin-Hwa Lu
Author-X-Name-First: Chin-Hwa
Author-X-Name-Last: Lu
Author-Name: Chia-Chung Chan
Author-X-Name-First: Chia-Chung
Author-X-Name-Last: Chan
Title: Impact of Foreign Strategic Investors on Earnings Management in Chinese Banks
Abstract:
 Chinese authorities hoped that participation of foreign strategic investors (FSIs) could improve the profitability of Chinese banks both quantitatively and qualitatively. While past studies have typically focused on the effect of FSIs on banks' quantitative performance, this paper investigates the quality of profits through earnings management. We use matching theory to consider the selection bias. Our results demonstrate that banks with FSIs have improved the quality of their financial reports because they conducted less loss-avoidance management of earnings, but they engaged in as much management to avoid earnings growth decreases as non-FSI banks did.
Journal: Emerging Markets Finance and Trade
Pages: 115-133
Issue: 5
Volume: 48
Year: 2012
Month: 9
Keywords: earnings management, foreign strategic investors, matching theory
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V8N76M211R5720H3
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ali, S. M.; N. M. Salleh; and M. S. Hassan. 2008. "Ownership Structure and Earnings Management in Malaysian Listed Companies: The Size Effect." <i>Asian Journal of Business and Accounting</i> 1, no. 2: 89-116.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Ananchotikul, N. 2007. "Does Foreign Direct Investment Really Improve Corporate Governance? Evidence from Thailand." Discussion Paper, Bank of Thailand, Bangkok.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Anderson, C. W.; T. Jandik; and A. K. Makhija. 2001. "Determinants of Foreign Ownership in Newly Privatized Companies in Transition Economies." <i>Financial Review</i> 36, no. 2: 161-175.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bartel, J., and Y. Huang. 2000. "Dealing with the Bad Loans of the Chinese Banks." Discussion Paper no. 13, Asia-Pacific Economic Cooperation (APEC) Study Center, Columbia University, New York.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Beatty, A.; B. Ke; and K. Petroni. 2002. "Earnings Management to Avoid Earnings Declines Across Publicly and Privately Held Banks." <i>Accounting Review</i> 77, no. 3: 547-570.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Berger, A. N.; I. Hasan; and M. M. Zhou. 2009. "Bank Ownership and Efficiency in China: What Lies Ahead in the World's Largest Nation?" <i>Journal of Banking & Finance</i> 33, no. 1: 113-130.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bhattacharya, N.; E. L. Black; T. E. Christensen; and C. R. Larson. 2003. "Assessing the Relative Informativeness and Permanence of Pro Forma Earnings and GAAP Operating Earnings." <i>Journal of Accounting and Economics</i> 36, nos. 1-3: 285-319.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Burgstahler, D., and I. Dichev. 1997. "Earnings Management to Avoid Earnings Decreases and Losses." <i>Journal of Accounting and Economics</i> 24, no. 1: 99-126.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chung, R.; S. Ho; and J. B. Kim. 2004. "Ownership Structure and the Pricing of Discretionary Accruals in Japan." <i>Journal of International Accounting, Auditing and Taxation</i> 13, no. 1: 1-20.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Cornett, M.; J. J. McNutt; and H. Tehranian. 2009. "Earnings Management at Large U. S. Bank Holding Companies." <i>Journal of Corporate Finance</i> 15, no. 4: 412-430.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	<BIBTEXT> Degeorge, F.; J. Patel; and R. J. Zeckhauser. 1999. "Earnings Management to Exceed Thresholds." <i>Journal of Business</i> 72, no. 1: 1-33.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Dehejia, H. R., and S. Wahba. 2002. "Propensity Score Matching Methods for Non-Experimental Causal Studies." <i>Review of Economics and Statistics</i> 84, no. 1: 151-161.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Fabozzi, F. 1978. "Quality of Earnings: A Test of Market Efficiency." <i>Journal of Portfolio Management</i> 4, no. 1: 53-56.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Firth, M.; P. Fung; and O. Rui. 2007. "Ownership, Two-Tier Board Structure, and the Informativeness of Earnings: Evidence from China." <i>Journal of Accounting and Public Policy</i> 26, no. 4: 463-496.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Garner, J. L., and W. Y. Kim. 2011. "Are Foreign Investors Really Beneficial? Evidence from South Korea." Paper presented at the Fourth Annual Conference on Asia-Pacific Financial Markets, Seoul, Korea.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Glick, R.; X. Guo; and M. Hutchison. 2006. "Currency Crises, Capital-Account Liberalization, and Selection Bias." <i>Review of Economics and Statistics</i> 88, no. 4: 698-714.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Hamilton, B. H., and J. A. Nickerson. 2003. "Correcting for Endogeneity in Strategic Management Research." <i>Strategic Organization</i> 1, no. 1: 51-78.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Havrylchyk, O., and E. Jurzyk. 2011. "Inherited or Earned? Performance of Foreign Banks in Central and Eastern Europe." <i>Journal of Banking & Finance</i> 35, no. 5: 1291-1302.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Healy, P. M., and J. M. Wahlen. 1999. "A Review of the Earnings Management Literature and Its Implications for Standard Setting." <i>Accounting Horizons</i> 13, no. 4: 365-383.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Heckman, J. J. 1979. "Sample Selection Bias as a Specification Error." <i>Econometrica</i> 47, no. 1: 153-162.</BIBTEXT>	 </REF>     <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Kim, B. M. 2011. "Do Foreign Investors Encourage Value-Enhancing Corporate Risk Taking?" <i>Emerging Markets Finance & Trade</i> 47, no. 3 (May-June): 88-110.</BIBTEXT>	 </REF>   <REF>	    <BIBL>22</BIBL>	  <BIBTEXT> Kim, I. J.; J. E. Kim; W. S. Kim; and S. J. Byun. 2010. "Foreign Investors and Corporate Governance in Korea." <i>Pacific-Basin Finance Journal</i> 18, no. 4: 390-402.</BIBTEXT>	  </REF>      <REF>	<BIBL>23</BIBL>	<BIBTEXT> Leuz, C.; D. Nanda; and P. D. Wysocki. 2003. "Earnings Management and Investor Protection: An International Comparison." <i>Journal of Financial Economics</i> 69, no. 3: 505-527.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>   <BIBTEXT> Lev, B., and R. Thiagarajan. 1993. "Fundamental Information Analysis." <i>Journal of Accounting Research</i> 31, no. 2: 190-214.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>    <BIBTEXT> Li, K., and N. R. Prabhala. 2007. "Self-Selection Models in Corporate Finance." In <i>Handbook of Corporate Finance I</i>, ed. E. B. Eckbo, pp. 37-86. New York: Elsevier.</BIBTEXT>	</REF>	<REF>	   <BIBL>26</BIBL> <BIBTEXT> Meisel, S. I. 2006. "Incentives for Managing Earnings in Bank Merger Targets." <i>Journal of Performance Management</i> 19, no. 3: 14-24.</BIBTEXT>     </REF>      <REF>	 <BIBL>27</BIBL>   <BIBTEXT> Podpiera, R. 2006. "Progress in China's Banking Sector Reform: Has Bank Behavior Changed?" Working Paper no. WP/06/71, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>   <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Polster, R., and Y. F. Huang. 2000. "The Risk-Analysis of the Banking Sector in China." <i>China Center for Economic Research</i> 1: 9-22.</BIBTEXT>	  </REF>      <REF>	<BIBL>29</BIBL>	<BIBTEXT> Rubin, D. B. 1986. "Statistical Matching Using File Concatenation with Adjusted Weights and Multiple Imputations." <i>Journal of Business and Economic Statistics</i> 4, no. 1: 87-94.</BIBTEXT>	 </REF>      <REF>	<BIBL>30</BIBL>   <BIBTEXT> Schipper, K. 1989. "Commentary on Earnings Management." <i>Accounting Horizons</i> 3, no. 4: 91-102.</BIBTEXT>	 </REF>      <REF>	<BIBL>31</BIBL>    <BIBTEXT> Schipper, K., and L. Vincent. 2003. "Earnings Quality." <i>Accounting Horizons</i> 17, supplement: 97-110.</BIBTEXT>	</REF>	<REF>	   <BIBL>32</BIBL> <BIBTEXT> Shen, C. H., and Y. Chang. 2009. "Ambition Versus Conscience, Does Corporate Social Responsibility Pay Off? The Application of Matching Methods." <i>Journal of Business Ethics</i> 88, no. 1: 133-153.</BIBTEXT>     </REF>      <REF>	 <BIBL>33</BIBL>   <BIBTEXT> Shen, C. H., and H. L. Chih. 2005. "Investor Protection, Prospect Theory, and Earnings Management: An International Comparison of the Banking Industry." <i>Journal of Banking and Finance</i> 29, no. 10: 2675-2697.</BIBTEXT>      </REF>	<REF>    <BIBL>34</BIBL>	<BIBTEXT> Shen, C. H., and C. Y. Lin. 2009. "The Performance of Bank Privatization: The Application of the Matching Theory." <i>Academia Economic Papers</i> 37, no. 3: 369-405.</BIBTEXT> </REF>     <REF>   <BIBL>35</BIBL>	<BIBTEXT> Shen, C. H.; M. W. Wu; C. H. Lu; and Z. W. Wu. 2008. "The Impact of Foreign Strategic Investors on the Performance of Chinese Banks—The Chinese Style." Working Paper no. 01, National Taiwan University, Taipei, Taiwan.</BIBTEXT>	</REF>	 <REF>	   <BIBL>36</BIBL>	<BIBTEXT> Shih, V.; Q. Zhang.; and M. Liu. 2007. "Comparing the Performance of Chinese Banks: A Principal Component Approach." <i>China Economic Review</i> 18, no. 1: 15-34.</BIBTEXT>      </REF>	  <REF>   <BIBL>37</BIBL>	<BIBTEXT> Shleifer, A., and R. W. Vishny. 1986. "Large Shareholders and Corporate Control." <i>Journal of Political Economy</i> 94, no. 3, pt. 1: 461-488.</BIBTEXT>	 </REF>    <REF>	    <BIBL>38</BIBL>	<BIBTEXT> Siegel, J. G. 1982. <i>How to Analyze Businesses, Financial Statements and the Quality of Earnings.</i> Engelwood Cliffs, NJ: Prentice Hall.</BIBTEXT>	  </REF>      <REF>	<BIBL>39</BIBL>	<BIBTEXT> Vega, M., and D. Winkelried. 2005. "How Does Global Disinflation Drag Inflation in Small Open Economies?" Working Paper no. 2005-001, Banco Central de Reserva del Peru, Lima, January.</BIBTEXT>	 </REF>      <REF>	<BIBL>40</BIBL>   <BIBTEXT> Wu, H. L.; C. H. Chen; and M. H. Lin. 2007. "The Effect of Foreign Bank Entry on the Operational Performance of Commercial Banks in the Chinese Transitional Economy." <i>Post-Communist Economies</i> 19, no. 3: 343-357.</BIBTEXT>	 </REF>      <REF>	<BIBL>41</BIBL>    <BIBTEXT> Yasuda, Y.; O. Y. Okuda; and M. Konishi. 2004. "The Relationship Between Bank Risk and Earnings Management: Evidence from Japan." <i>Review of Quantitative Finance and Accounting</i> 22, no. 3: 233-248.</BIBTEXT>	</REF>	<REF>	   <BIBL>42</BIBL> <BIBTEXT> Zheng, M., and K. Feng. 2007. "Presence of Foreign Banks and Change in Chinese Banking Performance and Market Centralization." <i>Finance Forum</i> (in Chinese) 12, no. 4: 18-21.</BIBTEXT>     </REF>   <REF>	    <BIBL>43</BIBL>	  <BIBTEXT> Zhou, K. G., and M. C. S. Wong. 2008. "The Determinants of Net Interest Margins of Commercial Banks in Mainland China." <i>Emerging Markets Finance & Trade</i> 44, no. 5 (September-October): 41-53.</BIBTEXT>	  </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:5:p:115-133




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 6
Volume: 48
Year: 2012
Month: 11
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=504U377178732805
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:6:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Qichun He
Author-X-Name-First: Qichun
Author-X-Name-Last: He
Title: Do Financial Liberalization Policies Promote Exports? Evidence from China's Panel Data
Abstract:
 This paper empirically tests whether a country's financial reform promotes expansion of its exports measured by the constant-price total value of exports. We test the hypothesis on dynamic panel data of China. We use system GMM (generalized method of moments) estimation to deal with the potential endogeneity problem of important explanatory variables, including financial deregulation. We find that the estimated coefficient on financial deregulation in both ordinary least squares and system GMM estimation is positive and insignificant at the 5 percent level after controlling for other factors affecting export expansion and for fixed time and province effects.
Journal: Emerging Markets Finance and Trade
Pages: 95-105
Issue: 6
Volume: 48
Year: 2012
Month: 11
Keywords: dynamic panel data, exports, gradual financial deregulation
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=6U2L203622J2R224
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abu Al-Foul, B. M., and M. Soliman. 2008. "Foreign Direct Investment and LDC Exports: Evidence from the MENA Region." <i>Emerging Markets Finance & Trade</i> 44, no. 2 (March-April): 4-14.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Akimov, A., and B. Dollery. 2008. "Financial System Reform in Kazakhstan from 1993 to 2006 and Its Socioeconomic Effects." <i>Emerging Markets Finance & Trade</i> 44, no. 3 (May-June): 81-97.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Arellano, M., and S. Bond. 1991. "Some Tests of Specifications for Panel Data: Monte Carlo Evidence and an Application to Employment Equations." <i>Review of Economic Studies</i> 58, no. 2: 277-297.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Arellano, M., and O. Bover. 1995. "Another Look at the Instrumental Variables Estimation of Error Components Models." <i>Journal of Econometrics</i> 68, no. 1: 29-51.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Barro, R. 1991. "Economic Growth in a Cross Section of Countries." <i>Quarterly Journal of Economics</i> 106, no. 2: 407-433.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Berman, N., and J. Héricourt. 2010. "Financial Factors and the Margins of Trade: Evidence from Cross-Country Firm-Level Data." <i>Journal of Development Economics</i> 93, no. 2: 206-217.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Blundell, R., and S. Bond. 1998. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models." <i>Journal of Econometrics</i> 87, no. 1: 115-143.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Bond, S., and J. Van Reenen. 2005. "Microeconometric Models of Investment and Employment." In <i>Handbook of Econometrics</i>, vol. 6, ed. J. Heckman and E. Leamer, pp. 4417-4498. Amsterdam: Elsevier.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chaney, T. 2005. "Liquidity Constrained Exporters." Working Paper, Department of Economics, University of Chicago.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> <i>China Statistical Yearbook.</i> Various years. Beijing: China Statistical Press (in Chinese).</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Darrat, A. F.; K. Elkhal; and B. McCallum. 2006. "Finance and Macroeconomic Performance: Some Evidence for Emerging Markets." <i>Emerging Markets Finance & Trade</i> 42, no. 3 (May-June): 5-28.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Demirguc-Kunt, A., and R. Levine. 2001. <i>Financial Structure and Economic Growth: A Cross-Country Comparison of Banks, Markets, and Development.</i> Cambridge: MIT Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Fazzari, S. R.; R. G. Hubbard; and B. Petersen. 1988. "Financing Constraints and Corporate Investment." <i>Brookings Papers on Economic Activity</i> 1: 141-195.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Greenaway, D.; A. Guariglia; and R. Kneller. 2007. "Financial Factors and Exporting Decisions." <i>Journal of International Economics</i> 73, no. 2: 377-395.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> He, Q. 2011. "Does Growth Cause Financial Deregulation in China? An Instrumental Variables Approach." Munich Personal RePEc Archive (MPRA) Paper no. 34449, University Library of Munich, Munich.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> He, Q. 2012. "Financial Deregulation, Credit Allocation Across Sectors, and Economic Growth: Evidence from China." <i>Journal of Economic Policy Reform</i> 15, no. 4: 281-299.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> He, Q., and M. Sun. 2012. "Trade, Financial Deregulation and Economic Growth: Evidence from China." <i>China Economic Quarterly</i> 11, no. 3: 833-852 (in Chinese).</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Hubbard, G. 1998. "Capital Market Imperfections and Investment." <i>Journal of Economic Literature</i> 36, no. 1: 193-225.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Levine, R., and S. Zervos. 1998. "Stock Markets, Banks, and Economic Growth." <i>American Economic Review</i> 88, no. 3: 537-558.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Lutz, S.; O. Talavera; and S. Park. 2008. "Effects of Foreign Presence in a Transition Economy: Regional and Industrywide Investments and Firm-Level Exports in Ukrainian Manufacturing." <i>Emerging Markets Finance & Trade</i> 44, no. 5 (September-October): 82-98.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Mankiw, G.; D. Romer; and D. Weil. 1992. "A Contribution to the Empirics of Economic Growth." <i>Quarterly Journal of Economics</i> 107, no. 2: 407-437.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Melitz, M. 2003. "The Impact of Trade on Aggregate Industry Productivity and Intra-Industry Reallocations." <i>Econometrica</i> 71, no. 6: 1695-1725.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Rizov, M. 2004. "Credit Constraints and Profitability: Evidence from a Transition Economy." <i>Emerging Markets Finance & Trade</i> 40, no. 4 (July-August): 63-83.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Roodman, D. 2006. "How to Do xtabond2: An Introduction to ‘Difference’ and ‘System’ GMM in Stata." Working Paper no. 103, Center for Global Development, Washington, DC.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Stiglitz, J. 1999. "Trade and the Developing World: A New Agenda." <i>Current History</i> 98, no. 631: 387-393.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Young, A. 2003. "Gold into Base Metals: Productivity Growth in the People's Republic of China During the Reform Period." <i>Journal of Political Economy</i> 111, no. 6: 1220-1261.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> <i>Zhongguo gaige kaifang yi lai dashi jiyao</i> (1978-1998) [Big Economic Events Since China's Reform and Opening Up (1978-1998)]. 2000. Beijing: Economic Science Press for the Institute of Economic Research, the China Academy of Social Sciences.</BIBTEXT> </REF>     
Handle: RePEc:mes:emfitr:v:48:y:2012:i:6:p:95-105




Template-Type: ReDIF-Article 1.0
Author-Name: Yanjian Zhu
Author-X-Name-First: Yanjian
Author-X-Name-Last: Zhu
Author-Name: Xiaoneng Zhu
Author-X-Name-First: Xiaoneng
Author-X-Name-Last: Zhu
Title: Impact of the Share Structure Reform on the Role of Operating Related Party Transactions in China
Abstract:
 Prior literature suggests that related party transactions may have a potentially detrimental effect on firm valuation because it undermines the corporate governance benefits a firm offers to minority shareholders. The share structure reform provides a unique opportunity to study to what extent the negative valuation effect of related party transactions interacts with corporate governance. Our empirical analysis confirms that related party transactions are detrimental to firm valuation. More importantly, we show that the negative effect of operating related party transactions on firm valuation declined after the share structure reform, partly due to the fact that the quality of corporate governance improved after the reform.
Journal: Emerging Markets Finance and Trade
Pages: 73-94
Issue: 6
Volume: 48
Year: 2012
Month: 11
Keywords: corporate governance, related party transactions, share structure reform
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E7535367W0103616
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Amit, R., and J. Livnat. 1989. "Efficient Corporate Diversification: Methods and Implications." <i>Management Science</i> 35, no. 7: 879-897.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bai, C. E.; Q. Liu; J. Lu; F. M. Song; and J. Zhang. 2004. "Corporate Governance and Market Valuation in China." <i>Journal of Comparative Economics</i> 32, no. 4: 599-616.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Benston, G. 1985. "The Validity of Profits-Structure Studies with Particular Reference to the FTC's Line-of-Business Data." <i>American Economic Review</i> 75, no. 1: 37-67.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Carleton, W. T.; J. M. Nelson; and M. S. Weisbach. 1998. "The Influence of Institutions on Corporate Governance Through Private Negotiations: Evidence from TIAA-CREF." <i>Journal of Finance</i> 53, no. 4: 1335-1362.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Chen, K. C. W., and J. Lee. 1995. "Accounting Measures of Business Performance and Tobin's <i>q</i> Theory." <i>Journal of Accounting, Auditing and Finance</i> 10, no. 3: 587-607.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chen, K. C. W., and H. Yuan. 2004. "Earnings Management and Capital Resource Allocation: Evidence from China's Accounting-Based Regulation of Rights Issues." <i>Accounting Review</i> 79, no. 3: 645-665.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chen, X., and K. Wang. 2005. "Related Party Transaction, Corporate Governance and State Ownership Reform." <i>Economic Research</i> no. 4: 77-86 (in Chinese).</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Cheung, Y.; P. R. Rau; and A. Stouraitis. 2010. "The Helping Hand or the Grabbing Hand? Central vs. Local Government Shareholders in Publicly Listed Firms in China." <i>Review of Finance</i> 14, no. 4: 669-694.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Cheung, Y.; L. Jing; T. Lu; P. R. Rau; and A. Stouraitis. 2009. "Tunneling and Propping Up: An Analysis of Related Party Transactions by Chinese Listed Companies." <i>Pacific-Basin Finance Journal</i> 17, no. 3: 372-393.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Deng, J.; J. Gan; and J. He. 2011. "Political Constraints, Organizational Forms, and Privatization Performance: Evidence from China." Working Paper, Hong Kong University of Science and Technology.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Gao, L., and S. Song. 2007. "Related Party Transactions and Corporate Governance Attributes." <i>Zhong Nan University of Economics and Law</i> no. 4: 59-65 (in Chinese).</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Gordon, E. A.; E. Henry; and D. Palia. 2004a. "Related Party Transactions and Corporate Governance." In <i>Corporate Governance, Vol. 9: Advances in Financial Economics</i>, ed. M. Hirschey, A. K. Makhija, and K. John, pp. 1-27. Bingley, UK: Emerald Group.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Gordon, E. A.; E. Henry; and D. Palia. 2004b. "Related Party Transactions: Associations with Corporate Governance and Firm Value." Working Paper, Temple University, Philadelphia, August.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Haw, I. M.; D. Qi; D. Wu; and W. Wu. 2005. "Market Consequences of Earnings Management in Response to Security Regulations in China." <i>Contemporary Accounting Research</i> 22, no. 1: 95-140.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Huang, G., and H. G. Fung. 2005. "Floating the Nonfloatables in China's Stock Market: Theory and Design." <i>Emerging Markets Finance & Trade</i> 41, no. 5 (September-October): 6-26.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Jian, M., and T. J. Wong. 2004. "Earnings Management and Tunneling Through Related Party Transactions: Evidence from Chinese Corporate Groups." Working Paper, Hong Kong University of Science and Technology.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Johnson, S.; P. Boone; A. Breach; and E. Friedman. 2000. "Corporate Governance in the Asian Financial Crisis." <i>Journal of Financial Economics</i> 58, nos. 1-2: 141-186.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Khanna, T., and K. Palepu. 2000. "Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups." <i>Journal of Finance</i> 55, no. 2: 867-891.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; and G. Zamarripa. 2003. "Related Lending." <i>Quarterly Journal of Economics</i> 118, no. 1: 231-268.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A. Shleifer; and R. Vishny. 1998. "Law and Finance." <i>Journal of Political Economy</i> 106, no. 6: 1113-1155.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A. Shleifer; and R. Vishny. 2000. "Investor Protection and Corporate Governance." <i>Journal of Financial Economics</i> 58, nos. 1-2: 3-27.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Lang, L. H. P., and R. M. Stulz. 1994. "Tobin's <i>q</i>, Corporate Diversification, and Firm Performance." <i>Journal of Political Economy</i> 102, no. 6: 1248-1280.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Lincoln, J. R.; M. L. Gerlach; and C. L. Ahmadjian. 1996. "Keiretsu Networks and Corporate Performance in Japan." <i>American Sociological Review</i> 61, no. 1: 67-88.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Mitton, T. 2002. "A Cross-Firm Analysis of the Impact of Corporate Governance on the East Asian Financial Crisis." <i>Journal of Financial Economics</i> 64, no. 2: 215-241.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Montgomery, C., and B. Wernerfelt. 1988. "Diversification, Ricardian Rents, and Tobin's <i>q." Rand Journal of Economics</i> 19, no. 4: 623-632.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Parisi, F.; I. Mathur; and L. Nail. 2009. "Minority Shareholders' Protection in a New Corporate Control Law: Market Implications in an Emerging Economy." <i>Emerging Markets Finance & Trade</i> 45, no. 6 (November-December): 4-19.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Selarka, E. 2005. "Ownership Concentration and Firm Value: A Study from the Indian Corporate Sector." <i>Emerging Markets Finance & Trade</i> 41, no. 6 (November-December): 83-108.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Shin, H., and Y. S. Park. 1999. "Financing Constraints and Internal Capital Markets: Evidence from Korean ‘Chaebols.’" <i>Journal of Corporate Finance</i> 5, no. 2: 169-191.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Shleifer, A., and R. Vishny. 1986. "Large Shareholders and Corporate Control." <i>Journal of Political Economy</i> 94, no. 3: 461-488.</BIBTEXT>      </REF>	  <REF>     <BIBL>30</BIBL>	<BIBTEXT> Shleifer, A., and R. Vishny. 1997. "A Survey of Corporate Governance." <i>Journal of Finance</i> 52, no. 2: 737-783.</BIBTEXT>   </REF>     <REF>	 <BIBL>31</BIBL>  <BIBTEXT> Sherman, H. D., and S. D. Young. 2001. "Tread Lightly Through These Accounting Minefields." <i>Harvard Business Review</i> 79, no. 7: 129-135.</BIBTEXT>	</REF>	    <REF>	<BIBL>32</BIBL>       <BIBTEXT> Tang, K., and C. Wang. 2011. "Corporate Governance and Firm Liquidity: Evidence from the Chinese Stock Market." <i>Emerging Markets Finance & Trade</i> 47, supp. 1: 47-60.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>	 <BIBTEXT> Tong, Y., and H. Wang. 2007. "Related Party Transactions, Controlling Benefits and Earnings Quality." <i>Accounting Research</i> no. 4: 75-82 (in Chinese).</BIBTEXT>    </REF>	<REF>	 <BIBL>34</BIBL>	<BIBTEXT> White, H. 1980. "A Heteroscedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroscedasticity." <i>Econometrica</i> 48, no. 4: 817-838.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:6:p:73-94




Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Court
Author-X-Name-First: Eduardo
Author-X-Name-Last: Court
Author-Name: Emre Ozsoz
Author-X-Name-First: Emre
Author-X-Name-Last: Ozsoz
Author-Name: Erick W. Rengifo
Author-X-Name-First: Erick W.
Author-X-Name-Last: Rengifo
Title: The Impact of Deposit Dollarization on Financial Deepening
Abstract:
 Banks in highly dollarized economies face risks that significantly affect their ability to perform their financial intermediation role. In these economies, dollarization plays a dual role: on the one hand, it provides a hedging instrument protecting the value of savings; on the other hand, it generates a currency mismatch on banks' balance sheets and increases default risk. Through these effects deposit dollarization can affect credit extension. This paper investigates the role of deposit dollarization on the financial depth of forty-four emerging market economies. Findings suggest that deposit dollarization has a consistent and negative impact on financial deepening, except in high-inflation economies.
Journal: Emerging Markets Finance and Trade
Pages: 39-52
Issue: 6
Volume: 48
Year: 2012
Month: 11
Keywords: dollarization, financial deepening, financial development
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M7353H36601V5262
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Calvo, G., and C. Vegh. 1997. "From Currency Substitution to Dollarization and Beyond: Analytical and Policy Issues." In <i>Essays on Money, Inflation, and Output</i>, ed. G. Calvo, pp. 153-175. Cambridge: MIT Press.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Darrat, A. F.; K. Elkhal; and B. McCallum. 2006. "Finance and Macroeconomic Performance. Some Evidence for Emerging Markets." <i>Emerging Markets Finance & Trade</i> 42, no. 3 (May-June): 5-28.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Dehesa, M.; P. Druck; and A. Plekhanov. 2007. "Relative Price Stability, Creditor Rights and Financial Deepening." Working Paper 07/139, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> De Nicolo, G.; P. Honohan; and A. Ize. 2005. "Dollarization of Bank Deposits: Causes and Consequences." <i>Journal of Banking and Finance</i> 29, no. 7: 1697-1727.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Djankov, S.; C. McLiesh; and A. Shleifer. 2007. "Private Credit in 129 Countries." <i>Journal of Financial Economics</i> 84, no. 2: 299-329.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Dornbusch, R. 2001. "Fewer Monies, Better Monies." <i>American Economic Review</i> 91, no. 2: 238-242.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Feige, E. L. 2003. "Dynamics of Currency Substitution, Asset Substitution and De Facto Dollarisation and Euroisation in Transition Countries." <i>Comparative Economic Studies</i> 45, no. 3: 358-383.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>  <BIBTEXT> Feridun, M. 2009. "Determinants of Exchange Market Pressure in Turkey: An Econometric Investigation." <i>Emerging Markets Finance & Trade</i> 45, no. 2 (March-April): 65-81.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Galindo, A., and A. Micco. 2005. "Creditor Protection and Credit Volatility." Working Paper 528, Inter-American Development Bank, Washington, DC.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Giovannini, A., and B. Turtelboom. 1994. <i>The Handbook of International Macroeconomics. Currency Substitution.</i> Malden, MA: Blackwell.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Graff, M. 2003. "Financial Development and Economic Growth in Corporatist and Liberal Market Economies." <i>Emerging Markets Finance & Trade</i> 39, no. 2 (March-April): 47-69.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Ize, A., and E. Levy-Yeyati. 2003. "Financial Dollarization." <i>Journal of International Economics</i> 59, no. 2: 323-347.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Kaufmann, D.; A. Kraay; and M. Mastruzzi. 2009. "Governance Matters VIII: Governance Indicators for 1996-2008." Policy Research Paper 4978, World Bank, Washington, DC.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> King, R., and R. Levine. 1993. "Finance and Growth: Schumpeter Might Be Right." <i>Quarterly Journal of Economics</i> 108, no. 3: 717-737.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Kutan, A. M.; E. Ozsoz; and E. W. Rengifo. 2010. "Evaluating the Effects of Deposit Dollarization on Bank Profitability." Department of Economics Discussion Paper no. 2010-07, Fordham University, New York.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Levy-Yeyati, E. 2006. "Financial Dollarization: Evaluating the Consequences." <i>Economic Policy</i> 45, no. 1: 61-118.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Neanidis, K. C., and C. S. Savva. 2009. "Financial Dollarization: Short-Run Determinants in Transition Economies." <i>Journal of Banking & Finance</i> 33, no. 10: 1860-1873.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Ozkan, G. F.; A. Kipici; and M. Ismihan. 2010. "The Banking Sector, Government Bonds, and Financial Intermediation: The Case of Emerging Market Countries." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 55-70.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Ozsoz, E.; E. Rengifo; and D. Salvatore. 2010. "Deposit Dollarization as an Investment Signal in Transition Economies: The Cases of Croatia, the Czech Republic, and Slovakia." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 5-22.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Rose, A. 2000. "One Money, One Market: Estimating the Effect of Common Currencies on Trade." <i>Economic Policy</i> 15, no. 30: 7-46.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Savastano, M. 1996. "Dollarization in Latin America—Recent Evidence and Some Policy Issues." In <i>The Macroeconomics of International Currencies</i>, ed. P. Mizen and E. Pentecost, ch. 12. Cheltenham, UK: Edward Elgar.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Stiglitz, J. E., and A. Weiss. 1981. "Credit Rationing in Markets with Imperfect Information." <i>American Economic Review</i> 71, no. 3: 393-410.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> World Bank. 1998. <i>World Development Report.</i> New York: Oxford University Press.</BIBTEXT>     </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:6:p:39-52




Template-Type: ReDIF-Article 1.0
Author-Name: Sumru Altug
Author-X-Name-First: Sumru
Author-X-Name-Last: Altug
Author-Name: Melike Bildirici
Author-X-Name-First: Melike
Author-X-Name-Last: Bildirici
Title: Business Cycles in Developed and Emerging Economies: Evidence from a Univariate Markov Switching Approach
Abstract:
 This paper characterizes business cycle phenomena in a sample of twenty-seven developed and emerging economies using a univariate Markov regime-switching approach. It examines the efficacy of this approach for detecting business cycle turning points and for identifying distinct economic regimes for each country in question. The paper also presents results on business cycle synchronization for the sample of countries under consideration. The findings of the paper have implications for understanding the commonalities and differences in cyclical phenomena for a diverse set of developed and emerging economies.
Journal: Emerging Markets Finance and Trade
Pages: 4-38
Issue: 6
Volume: 48
Year: 2012
Month: 11
Keywords: business cycles, Markov switching approach, nonparametric modeling, turning point analysis
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M85M6H0741042434
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Altug, S., and M. Bildirici. 2010. "Business Cycles Around the Globe: A Regime-Switching Approach." Discussion Paper 7968/EABCN no. 53/2010, Centre for Economic Policy Research, London.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Arellano, C., and E. Mendoza. 2003. "Credit Frictions and ‘Sudden Stops’ in Small Open Economies: An Equilibrium Business Cycle Framework for Emerging Market Crises." In <i>Dynamic Macroeconomic Analysis: Theory and Policy in General Equilibrium</i>, ed. S. Altug, J. Chadha, and C. Nolan, pp. 335-405. Cambridge: Cambridge University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Arora, A., and A. Gambardella. 2005. From <i>Underdogs to Tigers: The Rise and Growth of the Software Industry in Brazil, China, India, Ireland and Israel.</i> Oxford: Oxford University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Artis, M., and W. Zhang. 1997. "International Business Cycles and the ERM: Is There a European Business Cycle?" <i>International Journal of Finance and Economics</i> 2, no. 1: 1-16.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Artis, M.; H.-M. Krolzig; and J. Toro. 2004. "The European Business Cycle." <i>Oxford Economic Papers</i> 56, no. 1: 1-44.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Balakrishnan, R.; S. Danninger; S. Elekdag; and I. Tytell. 2011. "The Transmission of Financial Stress from Advanced to Emerging Economies." <i>Emerging Markets Finance & Trade</i> 47, supp. 2: 40-68.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Benczur, P., and A. Ratfai. 2010. "Business Cycles Around the Globe." Central European University.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>  <BIBTEXT> Bodman, P., and M. Crosby. 2000. "Phases of the Canadian Business Cycle." <i>Canadian Journal of Economics</i> 33, no. 3: 618-633.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Bry, G., and C. Boschan. 1971. <i>Cyclical Analysis of Time Series: Selected Procedures and Computer Programs.</i> New York: Columbia University Press.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Burns, A., and W. Mitchell. 1946. <i>Measuring Business Cycles.</i> New York: National Bureau of Economic Research.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Canova, F.; M. Ciccarelli; and E. Ortega. 2007. "Similarities and Convergence in G-7 Cycles." <i>Journal of Monetary Economics</i> 54, no. 3: 850-878.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Canova, F.; M. Ciccarelli; and E. Ortega. 2012. "Do Institutional Changes Affect the Business Cycle? Evidence from Europe." <i>Journal of Economic Dynamics and Control</i> 36: 1520-1533.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Chancharoenchai, K., and S. Diboglu. 2006. "Volatility Spillovers and Contagion During the Asian Crisis." <i>Emerging Markets Finance & Trade</i> 42, no. 2 (March-April): 4-17.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Chauvet, M., and J. Piger. 2003. "Identifying Business Cycle Turning Points in Real Time." <i>Federal Reserve Bank of St. Louis Review</i> (March-April): 57-62.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Doornik, J., and D. Hendry. 2009. <i>Econometric Modelling: PCGive 13</i>, vol. 3. London: Timberlake Consultants.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Giannone, D.; M. Lenza; and L. Reichlin. 2010. "Business Cycles in the Euro Area." In <i>Europe and the Euro</i>, ed. A. Alesina and F. Giavazzi, pp. 141-167. Chicago: University of Chicago Press for the National Bureau of Economic Research.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Girardin, E. 2005. "Growth-Cycle Features of the East Asian Countries: Are They Similar?" <i>International Journal of Finance and Economics</i> 10, no. 2: 143-156.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Goodwin, T. H. 1993. "Business-Cycle Analysis with a Markov-Switching Model." <i>Journal of Business and Economic Statistics</i> 11, no. 3: 331-339.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Hamilton, J. 1989. "A New Approach to the Economic Analysis of Nonstationary Time Series and the Business Cycle." <i>Econometrica</i> 57, no. 2: 357-384.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Hamilton, J. 1990. "Analysis of Time Series Subject to Changes in Regimes." <i>Journal of Econometrics</i> 45, no. 1-2: 39-70.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Harding, D., and A. Pagan. 2002a. "A Comparison of Two Business Cycle Dating Methods." <i>Journal of Economic Dynamics and Control</i> 27, no. 9: 1681-1690.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Harding, D., and A. Pagan. 2002b. "Dissecting the Cycle: A Methodological Investigation." <i>Journal of Monetary Economics</i> 49, no. 2: 365-381.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Kim, C., and C. Nelson. 2002. "Common Stochastic Trends, Common Cycles, and Asymmetry in Economic Fluctuations." <i>Journal of Monetary Economics</i> 49, no. 6: 1189-1211.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Köse, A.; C. Otrok; and E. Prasad. 2012. "Global Business Cycles: Convergence or Decoupling?" <i>International Economic Review</i> 53, no. 2: 511-538.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Köse, A.; C. Otrok; and C. Whiteman. 2003. "International Business Cycles: World, Region, and Country-Specific Factors." <i>American Economic Review</i> 93, no. 4: 1216-1239.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Krolzig, H. M., and J. Toro. 2004. "Classical and Modern Business Cycle Measurement: The European Case." <i>Spanish Economic Review</i> 7, no. 1: 1-21.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Kydland, F., and E. Prescott. 1982. "Time-to-Build and Aggregate Fluctuations." <i>Econometrica</i> 50, no. 6: 1345-1370.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Lumsdaine, R., and E. Prasad. 2003. "Identifying the Common Component in International Economic Fluctuations." <i>Economic Journal</i> 113, no. 484: 101-127.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Male, R. 2011. "Developing Country Business Cycles: Characterizing the Cycle." <i>Emerging Markets Finance & Trade</i> 47, supp. 2: 20-39.</BIBTEXT>      </REF>	  <REF>     <BIBL>30</BIBL>	<BIBTEXT> Moolman, E. 2004. "A Markov Switching Regime Model of the South African Business Cycle." <i>Economic Modelling</i> 21, no. 4: 631-646.</BIBTEXT>   </REF>     <REF>	 <BIBL>31</BIBL>  <BIBTEXT> Neftci, S. 1984. "Are Economic Time Series Symmetric over the Business Cycle?" <i>Journal of Political Economy</i> 92, no. 2: 307-328.</BIBTEXT>	</REF>	    <REF>	<BIBL>32</BIBL>       <BIBTEXT> Özatay, F., and G. Sak. 2002. "Financial Liberalization in Turkey: Why Was the Impact on Growth Limited?" <i>Emerging Markets Finance & Trade</i> 38, no. 5 (September-October): 6-22.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>	 <BIBTEXT> Özatay, F., and G. Sak. 2003. "Banking Sector Fragility and Turkey's 2000-01 Financial Crisis." In <i>Brookings Trade Forum 2002</i>, ed. S. M. Collins and D. Rodrik, pp. 121-160. Washington, DC: Brookings Institution Press.</BIBTEXT>    </REF>	<REF>	 <BIBL>34</BIBL>	<BIBTEXT> Rand, J., and F. Tarp. 2002. "Business Cycles in Developing Countries: Are They Different?" <i>World Development</i> 30, no. 12: 2071-2088.</BIBTEXT>	</REF>   <REF>	    <BIBL>35</BIBL>	  <BIBTEXT> Sargent, T., and C. Sims. 1977. "Business Cycle Modeling Without Pretending to Have Too Much A Priori Economic Theory." In <i>New Methods in Business Cycle Research: Proceedings from a Conference</i>, ed. C. Sims, pp. 45-109. Minneapolis: Federal Reserve Bank of Minneapolis.</BIBTEXT>	  </REF>      <REF>	<BIBL>36</BIBL>	<BIBTEXT> Sargent, T., and J. Zeira. 2011. "Israel 1983: A Bout of Unpleasant Monetarist Arithmetic." <i>Review of Economic Dynamics</i> 14, no. 3: 419-431.</BIBTEXT>	 </REF>      <REF>	<BIBL>37</BIBL>   <BIBTEXT> Stock, J., and M. Watson. 2005. "Understanding Changes in International Business Cycle Dynamics." <i>Journal of European Economic Association</i> 3, no. 5: 968-1006.</BIBTEXT>	 </REF>      <REF>	<BIBL>38</BIBL>    <BIBTEXT> Tastan, H., and N. Yildirim. 2008. "Business Cycle Asymmetries in Turkey: An Application of Markov Switching Autoregressions." <i>International Economic Journal</i> 22, no. 3: 315-333.</BIBTEXT>	</REF>	<REF>	   <BIBL>39</BIBL> <BIBTEXT> Taylor, J. 2007. "Lessons of the Financial Crisis on the Design of the New International Financial Architecture." Keynote address delivered at the Conference on the 2002 Uruguayan Crisis and Its Aftermath, Montevideo, May 29.</BIBTEXT>     </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:6:p:4-38




Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Salvador
Author-X-Name-First: Enrique
Author-X-Name-Last: Salvador
Title: The Risk-Return Trade-Off in Emerging Markets
Abstract:
 This paper studies the risk-return trade-off in some of the main emerging stock markets in the world. Although previous studies on emerging markets were not able to show a positive and significant trade-off, favorable evidence can be obtained if a nonlinear framework between return and risk is considered. Using fifteen years of weekly data observations for twenty-five emerging markets Morgan Stanley Capital International indexes in a regime-switching GARCH framework, the author obtains favorable evidence for most of the emerging markets during low volatility periods, but not for periods of financial turmoil or using the traditional linear GARCH-M approach.
Journal: Emerging Markets Finance and Trade
Pages: 106-128
Issue: 6
Volume: 48
Year: 2012
Month: 11
Keywords: emerging markets, risk-return trade-off, state-dependent risk aversion, volatility regimes
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=N25653543628H283
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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"On the Relation Between the Expected Value and the Variance of the Nominal Excess Return on Stocks." <i>Journal of Finance</i> 48, no. 5: 1779-1801.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Goyal, A., and P. Santa-Clara. 2003. "Idiosyncratic Risk Matters!" <i>Journal of Finance</i> 58, no. 3: 975-1008.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Gray, S. F. 1996. "Modelling the Conditional Distribution of Interest Rates as a Regime-Switching Process." <i>Journal of Financial Economics</i> 42, no. 1: 27-62.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Guo, H., and C. J. Neely. 2008. "Investigating the Intertemporal Risk-Return Relation in International Stock Markets with the Component GARCH Model." <i>Economics Letters</i> 99, no. 2: 371-374.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Hamilton, J. D. 1989. "A New Approach to the Economic Analysis of Nonstationary Time Series and the Business Cycle." <i>Econometrica</i> 57, no. 2: 357-384.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Hamilton, J. D., and R. Susmel. 1994. "Autoregressive Conditional Heterokedasticity and Changes in Regime." <i>Journal of Econometrics</i> 64, nos. 1-2: 307-333.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Harrinson, P., and H. Zhang. 1999. "An Investigation of the Risk and Return Relation at Long Horizons." <i>Review of Economics and Statistics</i> 81, no. 3: 1-10.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Karmakar, M. 2007. "Asymmetric Volatility and Risk-Return Relationship in the Indian Stock Market." <i>South Asia Economic Journal</i> 8, no. 1: 99-116.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Kim, S. W., and B. S. Lee. 2008. 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"The Empirical Risk-Return Relation: A Factor Analysis Approach." <i>Journal of Financial Economics</i> 83, no. 1: 171-222.</BIBTEXT>      </REF>	  <REF>     <BIBL>30</BIBL>	<BIBTEXT> Lundblad, C. 2007. "The Risk-Return Trade-Off in the Long Run: 1836-2003." <i>Journal of Financial Economics</i> 85, no. 1: 123-150.</BIBTEXT>   </REF>     <REF>	 <BIBL>31</BIBL>  <BIBTEXT> Marcucci, J. 2005. "Forecasting Stock Market Volatility with Regime-Switching GARCH Models." <i>Studies in Nonlinear Dynamics & Econometrics</i>, 9: article 4.</BIBTEXT>	</REF>	    <REF>	<BIBL>32</BIBL>       <BIBTEXT> Mayfield, S. 2004. "Estimating the Market Risk Premium." <i>Journal of Financial Economics</i> 73, no. 3: 867-887.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>	 <BIBTEXT> Merton, R. C. 1973. "An Intertemporal Asset Pricing Model." <i>Econometrica</i> 41, no. 5: 867-888.</BIBTEXT>    </REF>	<REF>	 <BIBL>34</BIBL>	<BIBTEXT> Nyberg, H. 2012. "Risk-Return Trade-Off in U. S. Stock Returns over the Business Cycle." <i>Journal of Financial and Quantitative Analysis</i> 47, no. 1: 137-158.</BIBTEXT>	</REF>   <REF>	    <BIBL>35</BIBL>	  <BIBTEXT>Shin, J. 2005. "Stock Returns and Volatility in Emerging Stock Markets." <i>International Journal of Business and Economics</i> 4, no. 1: 31-43.</BIBTEXT>	  </REF>      <REF>	<BIBL>36</BIBL>	<BIBTEXT> Whitelaw, R. 1994. "Time Variations and Covariations in the Expectations and Volatility of Stock Market Returns." <i>Journal of Finance</i> 49, no. 2: 515-541.</BIBTEXT>	 </REF>      <REF>	<BIBL>37</BIBL>   <BIBTEXT> Whitelaw, R. 2000. "Stock Market Risk and Return: An Equilibrium Approach." <i>Review of Financial Studies</i> 13, no. 3: 521-547.</BIBTEXT>     </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:6:p:106-128




Template-Type: ReDIF-Article 1.0
Author-Name: Gonzalo Cortazar
Author-X-Name-First: Gonzalo
Author-X-Name-Last: Cortazar
Author-Name: Eduardo S. Schwartz
Author-X-Name-First: Eduardo S.
Author-X-Name-Last: Schwartz
Author-Name: Claudio Tapia
Author-X-Name-First: Claudio
Author-X-Name-Last: Tapia
Title: Credit Spreads in Illiquid Markets: Model and Implementation
Abstract:
 This paper presents a methodology for estimating a family of credit spread term structures in a market with few transactions. The authors propose partitioning the market into risk classes and modeling credit spread term structures for each risk class using a multifactor Vasicek model with some common and some risk class-specific factors. The approach uses information on the cross section and time series of corporate bonds in all the risk classes to estimate the term structure of credit spreads in each risk class. The model is jointly estimated using an extended Kalman filter and implemented using Chilean corporate and government bonds.
Journal: Emerging Markets Finance and Trade
Pages: 53-72
Issue: 6
Volume: 48
Year: 2012
Month: 11
Keywords: bond spreads, emerging markets, Kalman filter
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X16J5M6091H66724
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahn, D. 2004. "Common Factors and Local Factors: Implications for Term Structures and Exchange Rates." <i>Journal of Financial and Quantitative Analysis</i> 39, no. 1: 69-102.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Babbs, S., and K. Nowman. 1999. "Kalman Filtering of Generalized Vasicek Term Structure Models." <i>Journal of Financial and Quantitative Analysis</i> 34, no. 1: 115-130.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bielecki, T., and Rutkowski, M. 2002. <i>Credit Risk: Modeling, Valuation and Hedging.</i> Berlin: Springer.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bhar, R., and N. Handzic. 2011. "A Multifactor Model of Credit Spreads." <i>Asia-Pacific Financial Markets</i> 18, no. 1: 105-127.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Brennan, M., and E. Schwartz. 1979. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:6:p:53-72




Template-Type: ReDIF-Article 1.0
Author-Name: Jen-Sin Lee
Author-X-Name-First: Jen-Sin
Author-X-Name-Last: Lee
Author-Name: Chu-Yun Wei
Author-X-Name-First: Chu-Yun
Author-X-Name-Last: Wei
Title: Types of Shares and Idiosyncratic Risk
Abstract:
 This study seeks to examine whether being listed as a particular type of share (H share, red-chip stock, Taiwan-based stock, or Hong Kong local stock) on the main board of the Hong Kong Exchange will affect the idiosyncratic risks and market risks. The findings are as follows: (1) different political connections mainly affect idiosyncratic risk, (2) the hypothesis of big size with high market risk is supported, (3) the idiosyncratic risks of all the companies in each category taken by category are negatively correlated with expected short-run returns. These results mean that investors should hold the stocks with previous low idiosyncratic risk to earn high expected returns.
Journal: Emerging Markets Finance and Trade
Pages: 68-95
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: H share, idiosyncratic risk, red chips, TGARCH models, types of shares
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=554P1609223G4451
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:68-95




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Chuan Huang
Author-X-Name-First: Yu Chuan
Author-X-Name-Last: Huang
Author-Name: Nai Wen Hou
Author-X-Name-First: Nai Wen
Author-X-Name-Last: Hou
Author-Name: Yao Jen Cheng
Author-X-Name-First: Yao Jen
Author-X-Name-Last: Cheng
Title: Illegal Insider Trading and Corporate Governance: Evidence from Taiwan
Abstract:
 This study examines the relationship between illegal insider trading and corporate governance. We analyze a sample of 156 cases: seventy-eight firms having illegal insider trading episodes and seventy-eight matched firms. We use three main factors—board composition, ownership structure, and financial reporting credibility—as well as other variables to measure corporate governance. The results reveal that CEO duality and domestic investors are significantly and negatively correlated with illegal insider trading. In addition, firms with less financial reporting credibility have a higher probability of illegal insider trading. Our evidence also supports the view that firms with financial troubles are more likely to engage in illegal insider trading.
Journal: Emerging Markets Finance and Trade
Pages: 6-22
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: corporate governance, earnings management, illegal insider trading
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=56G716N423H87846
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:6-22




Template-Type: ReDIF-Article 1.0
Author-Name: Yanjian Zhu
Author-X-Name-First: Yanjian
Author-X-Name-Last: Zhu
Author-Name: Yuexiang Jiang
Author-X-Name-First: Yuexiang
Author-X-Name-Last: Jiang
Title: Are Foreign Institutions More or Less Informed? Evidence from China's Stock Markets
Abstract:
 We compare the trading activities of foreign institutions in China's B-share market to those of domestic institutions in the A-share market before the same private information was released to both markets. Our findings show that both types of institutions were informed about which firms would implement the share structure reform in the next batch of reform. Foreign institutions bought even more shares than domestic ones in the days closely preceding reform announcements. Furthermore, both of them traded aggressively with large trades to profit from their private information. We can calculate the impact of large buy trades initiated by foreign and domestic institutional investors in each day. The impact increased in days before the Share Structure Reform for both foreign and domestic institutional investors. In addition, we find that the impact of large buy trades initiated by foreign institutions on price changes increased in days before the Share Structure Reform more than those initiated by domestic ones in the same days.
Journal: Emerging Markets Finance and Trade
Pages: 175-189
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: informed trading, institutional investors, share structure reform
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8P54L04916015043
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Back, K.; C. H. Cao; and G. A. Willard. 2000. "Imperfect Competition Among Informed Traders." <i>Journal of Finance</i> 55, no. 5: 2117-2155.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bailey, W. 1994. "Risk and Return on China's New Stock Markets: Some Preliminary Evidence." <i>Pacific-Basin Finance Journal</i> 2, nos. 2-3: 243-260.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Barclay, M. J., and J. B. Warner. 1993. "Stealth Trading and Volatility: Which Trades Move Prices?" <i>Journal of Financial Economics</i> 34, no. 3: 281-305.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Brennan, M. J., and H. H. Cao. 1997. "International Portfolio Investment Flows." <i>Journal of Finance</i> 52, no. 5: 1851-1880.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Cai, B. M.; C. X. Cai; and K. Keasey. 2006. "Which Trades Move Prices in Emerging Markets? Evidence from China's Stock Market." <i>Pacific-Basin Finance Journal</i> 14, no. 5: 453-466.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chakravarty, S. 2001. "Stealth-Trading: Which Traders' Trades Move Stock Prices?" <i>Journal of Financial Economics</i> 61, no. 2: 289-307.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chakravarty, S.; A. Sarkar; and L. Wu. 1998. "Information Asymmetry, Market Segmentation and the Pricing of Cross-Listed Shares: Theory and Evidence from Chinese A and B Shares." <i>Journal of International Financial Markets, Institutions and Money</i> 8, nos. 3-4: 325-355.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chan, K.; A. J. Menkveld; and Z. Yang. 2007. "Are Domestic Investors Better Informed than Foreign Investors? Evidence from the Perfectly Segmented Market in China." <i>Journal of Financial Markets</i> 10, no. 4: 391-415.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chan, K.; A. J. Menkveld; and Z. Yang. 2008. "Information Asymmetry and Asset Prices: Evidence from the China Foreign Share Discount." <i>Journal of Finance</i> 63, no. 1: 159-196.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Chang, C. Y., and F. S. Shie. 2011. "The Relation Between Relative Order Imbalance and Intraday Futures Returns: An Application of the Quantile Regression Model to Taiwan." <i>Emerging Markets Finance & Trade</i> 47, no. 3 (May-June): 69-87.</BIBTEXT>	 </REF>    <REF>	    <BIBL>11</BIBL>	<BIBTEXT> Chen, G. M.; B. Lee; and M. O. Rui. 2001. "Foreign Ownership Restrictions and Market Segmentation in China's Stock Markets." <i>Journal of Financial Research</i> 24, no. 1: 133-155.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Choe, H.; B. C. Kho; and R. M. Stulz. 2001. "Do Domestic Investors Have Much More Valuable Information About Individual Stocks Than Foreign Investors?" Working Paper no. 8073, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Chui, A., and C. Kwok. 1998. "Cross-Autocorrelation Between A-Shares and B-Shares in the Chinese Stock Market." <i>Journal of Financial Research</i> 21, no. 3: 333-353.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Cornell, B., and E. Sirri. 1992. "The Reaction of Investors and Stock Prices to Insider Trading." <i>Journal of Finance</i> 47, no. 3: 1031-1059.</BIBTEXT>	</REF>	<REF>	   <BIBL>15</BIBL> <BIBTEXT> Cready, W. M. 1988. "Information Value and Investor Wealth: The Case of Earnings Announcements." <i>Journal of Accounting Research</i> 26, no. 1: 1-27.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Cready, W. M., and P. G. Mynatt. 1991. 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"Earnings News and Small Traders: An Intraday Analysis." <i>Journal of Accounting and Economics</i> 15, nos. 2-3: 265-302.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>    <BIBTEXT> Lee, C. M. C., and B. Radhakrishna. 2000. "Inferring Investor Behavior: Evidence from TORQ Data." <i>Journal of Financial Markets</i> 3, no. 2: 83-111.</BIBTEXT>	</REF>	<REF>	   <BIBL>26</BIBL> <BIBTEXT> Li, K.; T. Wang;, Y. L. Cheung; and P. Jiang. 2011. "Privatization and Risk Sharing: Evidence from the Split Share Structure Reform in China." <i>Review of Financial Studies</i> 24, no. 7: 2499-2525.</BIBTEXT>     </REF>      <REF>	 <BIBL>27</BIBL>   <BIBTEXT> Mei, J.; J. Scheinkman; and W. Xiong. 2009. "Speculative Trading and Stock Prices: Evidence from Chinese A-B Share Premium." <i>Annals of Economics and Finance</i> 10, no. 2: 225-255.</BIBTEXT>      </REF>   <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Meulbroek, L. 1992. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:175-189




Template-Type: ReDIF-Article 1.0
Author-Name: Tzu-Yun Tseng
Author-X-Name-First: Tzu-Yun
Author-X-Name-Last: Tseng
Title: Impact on Agency Problems of China's Reform of the Split-Share Structure
Abstract:
China's unique split-share structure has resulted in serious agency problems. Moreover, the literature has shown that free cash flow and overinvestment problems are common in China's listed firms. This paper investigates the impact of the split-share structure reform on agency problems. The paper finds a decrease in investment-cash flow sensitivity after the reform of the split-share structure, which is evidence for a decrease in agency problems in China's listed firms after this reform. The result implies that the split-share structure reform has eased the agency problems in China's listed firms.
Journal: Emerging Markets Finance and Trade
Pages: 35-44
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: agency problems, corporate governance, investment-cash flow sensitivity, overinvestment, split-share structure reform (SSSR)
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C0N0K573RP341317
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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"Agency Costs of Free Cash Flow, Corporate Finance and Takeover." <i>American Economic Review</i> 76, no. 2: 323-329.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Li, X. 2007. "Over-Investment Behavior, Degree and Mechanism of Chinese Listed Companies." <i>Journal of Shanxi Finance and Economics University</i> 29, no. 6: 107-111 (in Chinese).</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Li, X., and B. Zhang. 2011. "Has Split Share Structure Reform Improved the Efficiency of the Chinese Stock Market?" <i>Applied Economics Letters</i> 18, no. 11: 1061-1064.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Lian, Y. J., and J. Cheng. 2007. "Investment-Cash Flow Sensitivity: Financial Constraints or Agency Costs?" <i>Journal of Finance and Economics</i> 33, no. 2: 37-46 (in Chinese).</BIBTEXT>	 </REF>     <REF>	<BIBL>21</BIBL>	  <BIBTEXT> Liao, L.; H. B. Shen; and J. L. Li. 2008. "An Empirical Study of the Split-Share Structure Reform and Corporate Governance." <i>China Industrial Economics</i> no. 5: 99-108 (in Chinese).</BIBTEXT>	 </REF>   <REF>	    <BIBL>22</BIBL>	  <BIBTEXT> Lin, Y. H.; J. R. Chiou; and Y. R. Chen. 2010. "Ownership Structure and Dividend Preference: Evidence from China's Privatized State-Owned Enterprises." <i>Emerging Markets Finance & Trade</i> 46, no. 1 (January-February): 56-74.</BIBTEXT>	  </REF>      <REF>	<BIBL>23</BIBL>	<BIBTEXT> Liu, C.; K. Uchida; and Y. Yang. 2011. "Controlling Shareholder, Split-Share Structure Reform and Cash Dividend Payments in China." Working Paper, Kyushu University, Fukuoka, Japan.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>   <BIBTEXT> Luo, Q., and L. J. Liu. 2007. "Is Investment-Cash Flow Sensitivity Caused by Financing Constraints or Agency Conflicts? Evidence from China." In <i>Proceeding of the 2007 International Conference on Management Science and Engineering</i>, pp. 1713-1718. Harbin, China: Harbin Institute of Technology Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>    <BIBTEXT> Myers, S. C., and N. S. Majluf. 1984. "Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have." <i>Journal of Financial Economics</i> 13, no. 2: 187-221.</BIBTEXT>	</REF>	<REF>	   <BIBL>26</BIBL> <BIBTEXT> Pan, M., and Y. Jin. 2003. "Information Asymmetry, Equity Structure Design and the Overinvestment of Listed Enterprises." <i>Journal of Financial Research</i> no. 1: 36-45 (in Chinese).</BIBTEXT>     </REF>      <REF>	 <BIBL>27</BIBL>   <BIBTEXT> Rao, Y. L., and Y. Y. Wang. 2006. "Large Shareholders' Effect on Corporate Investment: Evidence from China Listed Companies." <i>Nankai Business Review</i> 9, no. 5: 67-73 (in Chinese).</BIBTEXT>      </REF>   <REF>	    <BIBL>28</BIBL>	  <BIBTEXT> Ren, G., and Y. Zhao, 2009. "Split Share Structure Reform Effect and Empirical Analysis." <i>Frontiers of Business Research in China</i> 4, no. 3: 461-477.</BIBTEXT>	  </REF>      <REF>	<BIBL>29</BIBL>	<BIBTEXT> Tang, X. S.; X. S. Zhou; and R. J. Ma. 2007. "Empirical Research on Over-Investment Behavior and Its Restriction Systems in China's Listed Companies." <i>Accounting Research</i> 7: 44-52 (in Chinese).</BIBTEXT>	 </REF>      <REF>	<BIBL>30</BIBL>   <BIBTEXT> Ti, Y. 2002. "The Implicit Motivations of Listed Companies' Preferences of Equity Financing." Report, Shenyin & Wanguo Securities, Shanghai, China.</BIBTEXT>	 </REF>      <REF>	<BIBL>31</BIBL>    <BIBTEXT> Wang, W. Y., and J. L. Chen. 2006. "Bargaining for Compensation in the Shadow of Regulatory Giving: The Case of Stock Trading Rights Reform in China." <i>Columbia Journal of Asian Law</i> 20, no. 1: 298-353.</BIBTEXT>	</REF>	<REF>	   <BIBL>32</BIBL> <BIBTEXT> Yang, H., and Y. Hu. 2007. "Institutional Environment and Overinvestment of Free Cash Flow." <i>Management World</i> 9: 99-106 (in Chinese).</BIBTEXT>	  </REF>   <REF>	    <BIBL>33</BIBL>	  <BIBTEXT> Yeh, Y. H.; P. G. Shu; T. S. Lee; and Y. H. Su. 2009. "Non-Tradable Share Reform and Corporate Governance in the Chinese Stock Market." <i>Corporate Governance: An International Review</i> 17, no. 4: 457-475.</BIBTEXT>     </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:35-44




Template-Type: ReDIF-Article 1.0
Author-Name: Kaiguo Zhou
Author-X-Name-First: Kaiguo
Author-X-Name-Last: Zhou
Author-Name: Michael C. S. Wong
Author-X-Name-First: Michael C. S.
Author-X-Name-Last: Wong
Title: Timing Ability of China Mutual Fund Investors
Abstract:
This paper considers 250 funds between 2001 Q4 and 2009 Q2. The funds included must have data for at least eight quarters. By comparing dollar-weighted average return and geometric average return of a fund, the paper shows that fund investors always have inferior ability on timing. Their worst performance is related to a fund's larger size, higher subscription fee, better ratings, and higher geometric average returns. Funds of the above characteristics may easily draw the attention of less-informed investors and trigger their timing behavior. As a result, they buy at high prices and sell at low prices.
Journal: Emerging Markets Finance and Trade
Pages: 116-128
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: fund investors, time-weighted average return, timing ability, value-weighted average return
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E562710K71703232
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Barber, B. M.; T. Odean; and L. Zheng. 2000. "The Behavior of Mutual Fund Investors." Working paper, University of California at Davis.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bollen, N. P. B., and J. A. Busse. 2001. "On the Timing Ability of Mutual Fund Managers." <i>Journal of Finance</i> 56, no. 3: 1075-1094.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bollen, N. P. B., and J. A. Busse. 2005. "Short-Term Persistence in Mutual Fund Performance." <i>Review of Financial Studies</i> 18, no. 2: 569-597.</BIBTEXT>	 </REF>    <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bu, Q. 2008. "Do Mutual Funds Exhibit a Smart Money Effect? <i>Quarterly Journal of Finance and Accounting</i> 47, no. 1: 53-58.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Carhart, M. M. 1997. "On Persistence in Mutual Fund Performance." <i>Journal of Finance</i> 52, no. 1: 57-82.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chang, E. C., and W. G. Lewellen. 1984. "Market Timing and Mutual Fund Investment Performance." <i>Journal of Business</i> 57, no. 1: 57-72.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Cumby, R. E., and D. M. Modest. 1987. "Testing for Market Timing Ability: A Framework for Forecast Evaluation." <i>Journal of Financial Economics</i> 19, no. 1: 169-189.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Daniel, K.; M. Grinblatt; S. Titman; and R. Wermers. 1997. "Measuring Mutual Fund Performance with Characteristic-Based Benchmarks." <i>Journal of Finance</i> 52, no. 3: 1035-1058.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Elton, E. J.; M. J. Gruber; and C. R. Blake. 1996a. "Survivor Bias and Mutual Fund Performance." <i>Review of Financial Studies</i> 9, no. 4: 1097-1120.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Elton, E. J.; M. J. Gruber; and C. R. Blake. 1996b. "The Persistence of Risk-Adjusted Mutual Fund Performance." <i>Journal of Business</i> 69, no. 2: 133-157.</BIBTEXT>	 </REF>    <REF>	<BIBL>11</BIBL>	<BIBTEXT> Frazzini, A., and O. A. Lamont. 2008. "Dumb Money: Mutual Fund Flows and the Cross-Section of Stock Returns." <i>Journal of Financial Economics</i> 88, no. 2: 299-322.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Friesen, G. C., and T. R. A. Sapp. 2007. "Mutual Fund Flows and Investor Returns: An Empirical Examination of Fund Investor Timing Ability." <i>Journal of Banking and Finance</i> 31, no. 9: 2796-2816.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Grinblatt, M., and S. Titman. 1989. "Mutual Fund Performance: An Analysis of Quarterly Portfolio Holdings." <i>Journal of Business</i> 62, no. 3: 393-416.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Grinblatt, M., and S. Titman. 1992. "The Persistence of Mutual Fund Performance." <i>Journal of Finance</i> 47, no. 5: 1977-1984.</BIBTEXT>	</REF>	<REF>	<BIBL>15</BIBL> <BIBTEXT> Gruber, M. J. 1996. "Another Puzzle: The Growth in Actively Managed Mutual Funds." <i>Journal of Finance</i> 51, no. 3: 783-810.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Henriksson, R. D. 1984. "Market Timing and Mutual Fund Performance: An Empirical Investigation." <i>Journal of Business</i> 57, no. 1: 73-96.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Henriksson, R. D., and R. C. Merton. 1981. "On Market Timing and Investment Performance. II. Statistical Procedures for Evaluating Forecasting Skills." <i>Journal of Business</i> 54, no. 4: 513-533.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Kon, S. J. 1983. "The Timing Performance of Mutual Fund Managers." <i>Journal of Business</i> 56, no. 3: 323-347.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Lee, C. F., and S. Rahman, 1990. "Market Timing, Selectivity, and Mutual Fund Performance: An Empirical Investigation." <i>Journal of Business</i> 63, no. 2: 261-278.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Merton, R. C. 1981. "On Market Timing and Investment Performance. I. An Equilibrium Theory of Value for Market Forecasts." <i>Journal of Business</i> 54, no. 3: 363-406.</BIBTEXT>	 </REF>     <REF>	<BIBL>21</BIBL>	  <BIBTEXT> O'Neal, E. S. 2004. "Purchase and Redemption Patterns of US Equity Mutual Funds." <i>Financial Management</i> 33, no. 1: 63-90.</BIBTEXT>	 </REF>   <REF>	    <BIBL>22</BIBL>	  <BIBTEXT> Sharpe, W. 1966. "Mutual Fund Performance." <i>Journal of Business</i> 39, no. 1: 119-138.</BIBTEXT>	  </REF>      <REF>	<BIBL>23</BIBL>	<BIBTEXT> Zheng, L. 1999. "Is Money Smart? A Study of Mutual Fund Investors' Fund Selection Ability." <i>Journal of Finance</i> 54, no. 3: 901-933.</BIBTEXT>     </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:116-128




Template-Type: ReDIF-Article 1.0
Author-Name: Hsien-Hung H. Yeh
Author-X-Name-First: Hsien-Hung H.
Author-X-Name-Last: Yeh
Author-Name: Eduardo Roca
Author-X-Name-First: Eduardo
Author-X-Name-Last: Roca
Title: Macroeconomic Conditions and Capital Structure over the Business Cycle: Further Evidence in the Context of Taiwan
Abstract:
The authors examine the effect of macroeconomic conditions on the capital structure of firms in the petrochemical, textile, and electronics industries of Taiwan during the period 1983-2007, which covers six and a half business cycles. Controlling for the effects of economic growth, industry type, and firm-specific factors, we find that macroeconomic conditions have a significant effect on debt ratios during the sample period. Debt ratios of firms in these industries are procyclical during the period before the 1997-98 Asian financial crisis, but countercyclical during the period after the Asian financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 141-156
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: capital structure, macroeconomic conditions, Taiwan
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=F3R80137837X6737
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akimov, A., and B. Dollery. 2008. "Financial System Reform in Kazakhstan from 1993 to 2006 and Its Socioeconomic Effects." <i>Emerging Markets Finance and Trade</i> 44, no. 3: 81-97.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Arellano, M., and S. Bond. 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations." <i>Review of Economic Studies</i> 50, no. 2: 277-297.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Baltagi, B. H. 2008. <i>Econometric Analysis of Panel Data.</i> New York: John Wiley & Sons.</BIBTEXT>	 </REF>    <REF>	<BIBL>4</BIBL>    <BIBTEXT> Boyd, J., and B. Smith. 1996. "The Coevolution of the Real and Financial Sectors in the Growth Process." <i>World Bank Economic Review</i> 10, no. 2: 371-396.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bradley, M.; G. A. Jarrell; and E. H. Kim. 1984. "On the Existence of an Optimal Capital Structure: Theory and Evidence." <i>Journal of Finance</i> 39, no. 3: 857-878.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chang, X., and S. Dasgupta. 2009. "Target Behavior and Financing: How Conclusive Is the Evidence?" <i>Journal of Finance</i> 64, no. 4: 1767-1796.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chen, J. J. 2004. "Determinants of Capital Structure of Chinese-Listed Companies." <i>Journal of Business Research</i> 57, no. 12: 1341-1351.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chu, P. Y.; S. Wu; and S. F. Chiou. 1992. "The Determinants of Corporate Capital Structure Choice: Taiwan Evidence." <i>Journal of Management Science</i> 9, no. 2: 159-177 (in Chinese).</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chu, W. 1994. "Import Substitution and Export-Led Growth: A Study of Taiwan's Petrochemical Industry." <i>World Development</i> 22, no. 5: 781.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Chu, W. 2003. <i>Taiwan's Economy Under Globalization.</i> Taipei: Ton-San (in Chinese).</BIBTEXT>	 </REF>    <REF>	<BIBL>11</BIBL>	<BIBTEXT> Council for Economic Planning and Development (CEPD). 2009. <i>Taiwan Business Indicators.</i> Taipei.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Crnigoj, M., and D. Mramor. 2009. "Determinants of Capital Structure in Emerging European Economies: Evidence from Slovenian Firms." <i>Emerging Markets Finance & Trade</i> 45, no. 1 (January-February): 72-89.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Downs, T. W. 1993. "Corporate Leverage and Nondebt Tax Shields: Evidence on Crowding-Out." <i>Financial Review</i> 28, no. 4: 549-583.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Feidakis, A., and A. Rovolis. 2007. "Capital Structure Choice in European Union: Evidence from the Construction Industry." <i>Applied Financial Economics</i> 17, no. 12: 989-1002.</BIBTEXT>	</REF>	<REF>	<BIBL>15</BIBL> <BIBTEXT> Flannery, M. J., and K. P. Rangan. 2006. "Partial Adjustment Toward Target Capital Structures." <i>Journal of Financial Economics</i> 79, no. 3: 469-506.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Glen, J., and A. Singh. 2004. "Comparing Capital Structures and Rates of Return in Developed and Emerging Markets." <i>Emerging Markets Review</i> 5, no. 2: 161-192.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Hackbarth, D.; J. Miao; and E. Morellec. 2006. "Capital Structure, Credit Risk, and Macroeconomic Conditions." <i>Journal of Financial Economics</i> 82, no. 3: 519-550.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Harris, M., and A. Raviv. 1991. "The Theory of Capital Structure." <i>Journal of Finance</i> 46, no. 1: 297-355.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Hazak, A. 2009. "Companies' Financial Decisions Under the Distributed Profit Taxation Regime of Estonia." <i>Emerging Markets Finance and Trade</i> 45, no. 4: 4-12.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Hovakimian, A., and G. Li. 2011. "In Search of Conclusive Evidence: How to Test for Adjustment to Target Capital Structure." <i>Journal of Corporate Finance</i> 17, no. 1: 33-44.</BIBTEXT>	 </REF>     <REF>	<BIBL>21</BIBL>	  <BIBTEXT> Jensen, M. C. 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers." <i>American Economic Review</i> 76, no. 2: 323-329.</BIBTEXT>	 </REF>   <REF>	    <BIBL>22</BIBL>	  <BIBTEXT> Kim, W. S., and E. H. Sorensen. 1986. "Evidence on the Impact of the Agency Costs of Debt on Corporate Debt Policy." <i>Journal of Financial and Quantitative Analysis</i> 21, no. 2: 131-144.</BIBTEXT>	  </REF>      <REF>	<BIBL>23</BIBL>	<BIBTEXT> Korajczyk, R. A., and A. Levy. 2003. "Capital Structure Choice: Macroeconomic Conditions and Financial Constraints." <i>Journal of Financial Economics</i> 68, no. 1: 75-109.</BIBTEXT>     </REF>   <REF>	    <BIBL>24</BIBL>	  <BIBTEXT> Kuo, H., and L. Wang. 2005. "The Effect of the Degree of Internationalization on Capital Structure for Listed Multinational Corporations in Taiwan During the Asian Financial Crisis." <i>Review of Pacific Basin Financial Markets and Policies</i> 8, no. 3: 447-466.</BIBTEXT>	  </REF>      <REF>	<BIBL>25</BIBL>	<BIBTEXT> Levy, A., and C. Hennessy. 2007. "Why Does Capital Structure Choice Vary with Macroeconomic Conditions?" <i>Journal of Monetary Economics</i> 54, no. 6: 1545-1564.</BIBTEXT>	 </REF>      <REF>	<BIBL>26</BIBL>   <BIBTEXT> Miller, M. H. 1977. "Debt and Taxes." <i>Journal of Finance</i> 32, no. 2: 261-275.</BIBTEXT>	 </REF>    <REF>	<BIBL>27</BIBL>    <BIBTEXT> Modigliani, F., and M. H. Miller. 1958. "The Cost of Capital, Corporation Finance and the Theory of Investment." <i>American Economic Review</i> 48, no. 3: 261-297.</BIBTEXT>	</REF>	<REF>	   <BIBL>28</BIBL> <BIBTEXT> Nieh, C.; H. Yau; and W. Liu. 2008. "Investigation of Target Capital Structure for Electronic Listed Firms in Taiwan." <i>Emerging Markets Finance and Trade</i> 44, no. 4: 75-87.</BIBTEXT>     </REF>      <REF>	 <BIBL>29</BIBL>   <BIBTEXT> Ozkan, A. 2001. "Determinants of Capital Structure and Adjustment to Long Run Target: Evidence from UK Company Panel Data." <i>Journal of Business Finance & Accounting</i> 28, nos. 1-2: 175-198.</BIBTEXT>      </REF>	<REF>    <BIBL>30</BIBL>	<BIBTEXT> Qian, Y.; Y. Tian; and T. S. Wirjanto. 2009. "Do Chinese Publicly Listed Companies Adjust Their Capital Structure Toward a Target Level?" <i>China Economic Review</i> 20, no. 4: 662-676.</BIBTEXT> </REF>     <REF>   <BIBL>31</BIBL>	<BIBTEXT> Stata. 2009. <i>Longitudinal-Data/Panel-Data Reference Manual Release 11.</i> College Station, TX: Stata Press.</BIBTEXT>	</REF>	 <REF>	   <BIBL>32</BIBL>	<BIBTEXT> Titman, S., and R. Wessels. 1988. "The Determinants of Capital Structure Choice." <i>Journal of Finance</i> 43, no. 1: 1-19.</BIBTEXT>      </REF>	  <REF>   <BIBL>33</BIBL>	<BIBTEXT> Wald, J. K. 1999. "How Firm Characteristics Affect Capital Structure: An International Comparison." <i>Journal of Financial Research</i> 22, no. 2: 161-187.</BIBTEXT>	 </REF>   <REF>	    <BIBL>34</BIBL>	  <BIBTEXT> Windmeijer, F. 2005. "A Finite Sample Correction for the Variance of Linear Efficient Two-Step GMM Estimators." <i>Journal of Econometrics</i> 126, no. 1: 25-51.</BIBTEXT>	  </REF>      <REF>	<BIBL>35</BIBL>	<BIBTEXT> Wiwattanakantang, Y. 1999. "An Empirical Study on the Determinants of the Capital Structure of Thai Firms." <i>Pacific-Basin Finance Journal</i> 7, nos. 3-4: 371-403.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:141-156




Template-Type: ReDIF-Article 1.0
Author-Name: Wenchang Fang
Author-X-Name-First: Wenchang
Author-X-Name-Last: Fang
Title: Guest Editor's Introduction: ISFA 2011 and BAI 2011
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4-5
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=KL11075L08606101
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:4-5




Template-Type: ReDIF-Article 1.0
Author-Name: Suechin Yang
Author-X-Name-First: Suechin
Author-X-Name-Last: Yang
Author-Name: Yahui Hsu
Author-X-Name-First: Yahui
Author-X-Name-Last: Hsu
Author-Name: Chiayu Tu
Author-X-Name-First: Chiayu
Author-X-Name-Last: Tu
Title: How Do Traders Influence Investor Confidence and Trading Volume? A Dyad Study in the Futures Market
Abstract:
 This study explains factors that influence trade volume and reexamines the model of investor confidence with regard to the characteristics of traders. Moreover, this research examines how trader demographic characteristics and personality moderate the relationship between investor confidence and trading volume. This research tests hypotheses on the basis of data collected from 206 futures investor-trader dyads. Findings provide support for the theoretical model and have implications for research on investor confidence and behavioral finance. In addition, this paper discusses limitations to this research, future research directions, and theoretical and practical implications.
Journal: Emerging Markets Finance and Trade
Pages: 23-34
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: behavioral finance, futures market, investor confidence
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L5033042T8342364
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Armstrong, J. S., and T. S. Overton. 1977. "Estimating Nonresponse Bias in Mail Surveys." <i>Journal of Marketing Research</i> 14, no. 3: 396-402.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bagozzi, R. P.; Y. Yi; and L. W. Phillips. 1991. "Assessing Construct Validity in Organizational Research." <i>Administrative Science Quarterly</i> 36, no. 1: 421-458.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bolton, R. N., and K. N. Lemon. 1999. "A Dynamic Model of Customer's Usage of Service: Usage as an Antecedent and Consequence of Satisfaction." <i>Journal of Marketing Research</i> 36, no. 2: 171-191.</BIBTEXT>	 </REF>    <REF>	<BIBL>4</BIBL>    <BIBTEXT> Borman, W. C.; D. Dorsey; and L. Ackerman. 1992. "Time-Spent Responses as Time Allocation Strategies: Relations with Sales Performance in a Stockbroker Sample." <i>Personnel Psychology</i> 45, no. 4: 763-777.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Chang, M.; J. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:23-34




Template-Type: ReDIF-Article 1.0
Author-Name: Chao-Lung Lien
Author-X-Name-First: Chao-Lung
Author-X-Name-Last: Lien
Author-Name: Chien-An Wang
Author-X-Name-First: Chien-An
Author-X-Name-Last: Wang
Title: The Bonding Hypothesis in Poor Governance Environments: Empirical Data from an International Firm Level
Abstract:
The bonding hypothesis is based on the controlling shareholder in an environment of host-exchange governance voluntarily restricting its private benefits. The authors examine both the relative merits of the bonding hypothesis in poor governance environments and cross-listing decisions that have a preemptive monitoring aspect. They then examine the corporate governance of firms before and after cross-listing. This is done by collecting data on 1,005 cross-listed firms concerning the period 1995-2009. The main results indicate that environmental constraints are different in the home market and host exchange and that a strict governance environment is positively related to the probability of cross-listing. Furthermore, a firm's corporate governance is related to improving the governance environment.
Journal: Emerging Markets Finance and Trade
Pages: 45-67
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: bonding hypothesis, corporate governance, cross-listing
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=LJ3P54254QM43P84
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:45-67




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Yung Wang
Author-X-Name-First: Chih-Yung
Author-X-Name-Last: Wang
Author-Name: Hsiang-Lin Cheng
Author-X-Name-First: Hsiang-Lin
Author-X-Name-Last: Cheng
Author-Name: Ya-Huei Chang
Author-X-Name-First: Ya-Huei
Author-X-Name-Last: Chang
Title: A Question of Loyalty: Bank-Firm Relationships in Taiwan
Abstract:
This paper explores the benefits and negative elements of the relationship between firms and their primary banking partners. The benefits of this relationship often lead firms to develop a closer relationship with their primary banking partners, while the negative elements often result in firms changing their banking partners. Our results show that larger, older firms in Taiwan are more likely to build close relationships with their banks. In addition, the duration of the relationship between firms and banks is related to the positive likelihood that firms will look for alternative banking partners.
Journal: Emerging Markets Finance and Trade
Pages: 190-201
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: duration of relationship, main bank, switching
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q2K1346X66542G44
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:190-201




Template-Type: ReDIF-Article 1.0
Author-Name: Chueh-Yung Tsao
Author-X-Name-First: Chueh-Yung
Author-X-Name-Last: Tsao
Author-Name: Chao-Ching Liu
Author-X-Name-First: Chao-Ching
Author-X-Name-Last: Liu
Title: Asian Options with Credit Risks: Pricing and Sensitivity Analysis
Abstract:
The 2008 financial crisis forced investors to be more concerned with the risk management of financial instruments, especially derivatives. The main objective of this paper is to study the effect of issuer credit risk on the pricing of options. In particular, we focus on Asian options, which are options traded in the over-the-counter market. The contribution of this study is two-fold. We first derive the approximation formula for the arithmetic Asian option subject to issuer credit risk. We then study how the contract designs and the issuers' characteristics affect the credit discount of Asian options.
Journal: Emerging Markets Finance and Trade
Pages: 96-115
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: arithmetic average, Asian option, credit risk, vulnerable option
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W5PH7T72N7736768
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>    <BIBL>1</BIBL>	  <BIBTEXT> Andreasen, J. 1998. "The Pricing of Discretely Sampled Asian and Lookback Options: A Change of Numeraire Approach." <i>Journal of Computational Finance</i> 2, no. 1 (Fall): 5-23.</BIBTEXT>	</REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Angus, J. E. 1999. "A Note on Pricing Asian Derivatives with Continuous Geometric Averaging." <i>Journal of Futures Markets</i> 19, no. 7: 845-858.</BIBTEXT>   </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bayraktar, E., and H. Xing. 2011. "Pricing Asian Options for Jump Diffusions." <i>Mathematical Finance</i> 21, no. 2: 117-143.</BIBTEXT>	 </REF>    <REF>	<BIBL>4</BIBL>    <BIBTEXT> Black, F., and M. Scholes. 1973. "The Pricing of Options and Corporate Liabilities." <i>Journal of Political Economy</i> 81, no. 3: 637-654.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bouaziz, L.; E. Briys; and M. Crouhy. 1994. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:96-115




Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Wei Wu
Author-X-Name-First: Shih-Wei
Author-X-Name-Last: Wu
Author-Name: Fengyi Lin
Author-X-Name-First: Fengyi
Author-X-Name-Last: Lin
Author-Name: Wenchang Fang
Author-X-Name-First: Wenchang
Author-X-Name-Last: Fang
Title: Earnings Management and Investor's Stock Return
Abstract:
This study investigates the effect of window dressing by Taiwanese firms on investors' stock returns. The second digit of the earnings reported as earnings before interest and tax, earnings after interest and tax, or earnings per share is found to occasionally serve as the reference point. In addition, the manipulation of earnings management shows a negative relationship between earnings management and investor stock returns. Such findings have important implications for investing decisions made by Taiwanese stockholders, who traditionally have concerns about the quality of a firm's financial statements.
Journal: Emerging Markets Finance and Trade
Pages: 129-140
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: earnings management, investors' stock returns, manipulation, window dressing
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XP2R72400525K007
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>    <BIBL>1</BIBL>	  <BIBTEXT> Aboody, D.; J. Hughes; and J. Liu. 2005. "Earnings Quality, Insider Trading, and Cost of Capital." <i>Journal of Accounting Research</i> 43, no. 5: 651-673.</BIBTEXT>	</REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Aerts, W.; G. Van Campenhout; and T. Van Caneghem. 2008. "Clustering in Dividends: Do Managers Rely on Cognitive Reference Points." <i>Journal of Economic Psychology</i> 29, no. 3: 276-284.</BIBTEXT>   </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Anderson, A. 2007. "All Guts, No Glory: Trading and Diversification Among Online Investors." <i>European Financial Management</i> 13, no. 3: 448-471.</BIBTEXT>	 </REF>    <REF>	<BIBL>4</BIBL>    <BIBTEXT> Barber, B. M., and T. Odean. 2000. "Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors." <i>Journal of Finance</i> 55, no. 2: 773-806.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Becht, M.; J. Franks; C. Mayer; and S. Rossi. 2010. 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"Anomalies in Income Numbers: Evidence of Goal Oriented Behavior." <i>Accounting Review</i> 63, no. 2: 321-327.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Chan, K.; L. K. C. Chan; N. Jegadeesh; and J. Lakonishok. 2006. "Earnings Quality and Stock Returns." <i>Journal of Business</i> 79, no. 3: 1041-1082.</BIBTEXT>	 </REF>    <REF>	<BIBL>11</BIBL>	<BIBTEXT> De Ceuster, M. J. K.; G. Dhaene; and T. Schatteman. 1998. "On the Hypothesis of Psychological Barriers in Stock Markets and Benford's Law." <i>Journal of Empirical Finance</i> 5, no. 3: 263-279.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Dechow, P.; W. Ge; and C. Schrand. 2010. "Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences." <i>Journal of Accounting and Economics</i> 50, nos. 2-3: 344-401.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Fama, E. F., and K. R. French. 1993. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:129-140




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Hsing Hung
Author-X-Name-First: Chih-Hsing
Author-X-Name-Last: Hung
Author-Name: Ming-Chi Chen
Author-X-Name-First: Ming-Chi
Author-X-Name-Last: Chen
Author-Name: Shyh-Weir Tzang
Author-X-Name-First: Shyh-Weir
Author-X-Name-Last: Tzang
Title: Modeling Mortgages with Prepayment Penalties
Abstract:
This paper uses a numerical simulation based on the Crank-Nicolson method to estimate the value of a fixed-rate mortgage (FRM) with embedded prepayment and non-defaultable options. We find that the value of the FRM will increase when interest rates decrease, increasing the incentive for borrowers to prepay the mortgage. This paper presents simulated results of prepayment penalties that may help financial institutions enact specific yield maintenance agreements and that may aid financial regulators in providing additional safety for financial lenders and borrowers.
Journal: Emerging Markets Finance and Trade
Pages: 157-174
Issue: S3
Volume: 48
Year: 2012
Month: 9
Keywords: CIR model, Crank-Nicolson method, prepayment penalties, yield maintenance agreement
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y5821756414528G4
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>    <BIBL>1</BIBL>	  <BIBTEXT> Abraham, J. M., and H. S. Theobald. 1997. "A Simple Prepayment Model of Commercial Mortgages." <i>Journal of Housing Economics</i> 6, no. 1: 31-59.</BIBTEXT>	</REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Archer, W. R., and D. C. Ling. 1993. "Pricing Mortgage-Backed Securities: Integrating Optimal Call and Empirical Models of Prepayment." <i>Journal of the American Real Estate and Urban Economics Association</i> 21, no. 4: 373-404.</BIBTEXT>   </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Azevedo-Pereira, J. A.; D. P. Newton; and D. A. Paxson. 2002. "UK Fixed Rate Repayment Mortgage Indemnity Valuation." <i>Journal of Real Estate and Economics</i> 30, no. 2: 185-211.</BIBTEXT>	 </REF>    <REF>	<BIBL>4</BIBL>    <BIBTEXT> Chen, Y.; M. Connolly; W. Tang; and T. Su. 2009. "The Value of Mortgage Prepayment and Default Options." <i>Journal of Futures Markets</i> 29, no. 9: 840-861.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Cox, J. C.; J. E. Ingersoll; and S. A. Ross. 1985. "A Theory of the Term Structure of Interest Rates." <i>Econometrica</i> 53, no. 2: 385-407.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Crank, J., and P. Nicolson. 1947. "A Practical Method for Numerical Evaluation of Solutions of Partial Differential Equations of the Heat Conduction Type." <i>Proceedings of Cambridge Philosophical Society</i> 43, no. 1: 50-67.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Deng, Y. H. 1997. "Mortgage Termination: An Empirical Hazard Model with Stochastic Term Structure." <i>Journal of Real Estate Finance and Economics</i> 14, no. 3: 309-331.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Elliehausen, G.; M. E. Staten; and J. Steinbuks. 2008. "The Effect of Prepayment Penalties on the Pricing of Subprime Mortgages." <i>Journal of Economics and Business</i> 60, nos. 1-2: 33-46.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Follain, J. R.; J. Ondrich; and G. P. Sinha. 1997. "Ruthless Prepayment: Evidence from Multi-family Mortgages." <i>Journal of Urban Economics</i> 41, no. 1: 78-101.</BIBTEXT>      </REF>	  <REF>   <BIBL>10</BIBL>	<BIBTEXT> Follain, J. R.; L. O. Scott; and T. L. Yang. 1992. "Microfoundations of a Mortgage Prepayment Function." <i>Journal of Real Estate Finance and Economics</i> 5, no. 2: 197-217.</BIBTEXT>	 </REF>    <REF>	<BIBL>11</BIBL>	<BIBTEXT> Huang, Y. S.; C. J. Jou; and C. C. Lin. 2003. "Pricing Mortgage-Backed Securities by a Dynamic Prepayment Model," <i>Journal of Housing Studies</i> 12, no. 1: 43-56.</BIBTEXT>	  </REF>      <REF>	<BIBL>12</BIBL>	<BIBTEXT> Kau, J. B.; D. C. Keenan; and T. Kim. 1994. "Default Probabilities for Mortgages." <i>Journal of Urban Economics</i> 35, no. 3: 278-296.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>   <BIBTEXT> Kau, J. B.; D. C. Keenan; W. J. Muller; and J. F. Epperson. 1992. "A Generalized Valuation Model for Fixed-Rate Residential Mortgages." <i>Journal of Money, Credit and Banking</i> 24, no. 3: 279-299.</BIBTEXT>	 </REF>      <REF>	<BIBL>14</BIBL>    <BIBTEXT> Kau, J. B.; D. C. Keenan; W. J. Muller; and J. F. Epperson. 1993. "Option Theory and Floating-Rate Securities with a Comparison of Adjustable and Fixed-Rate Mortgages." <i>Journal of Business</i> 66, no. 4: 1665-1685.</BIBTEXT>	</REF>	<REF>	<BIBL>15</BIBL> <BIBTEXT> Kelly, A., and V. C. Slawson. 2001. "Time-Varying Mortgage Prepayment Penalties." <i>Journal of Real Estate Finance and Economics</i> 23, no. 2: 235-254.</BIBTEXT>     </REF>      <REF>	 <BIBL>16</BIBL>   <BIBTEXT> Mayer, C.; T. Piskorski; and A. Tchistyi. 2010. "The Inefficiency of Refinancing: Why Prepayment Penalties Are Good for Risky Borrowers." Working Paper, Finance and Economics, Columbia Business School, November 28.</BIBTEXT>      </REF>	<REF>    <BIBL>17</BIBL>	<BIBTEXT> Qiang, F.; M. LaCour-Little; and K. D. Vandell. 2003. "Commercial Mortgage Prepayments Under Heterogeneous Prepayment Penalty Structures." <i>Journal of Real Estate Research</i> 25, no. 3: 245-276.</BIBTEXT> </REF>     <REF>   <BIBL>18</BIBL>	<BIBTEXT> Sari, R.; B. T. Ewing; and B. Aydin. 2007. "Macroeconomic Variables and the Housing Market in Turkey." <i>Emerging Markets Finance & Trade</i> 43, no. 5 (September-October): 5-19.</BIBTEXT>	</REF>	 <REF>	   <BIBL>19</BIBL>	<BIBTEXT> Titman, S., and W. Torous. 1989. "Valuing Commercial Mortgages: An Empirical Investigation of the Contingent Claims Approach to Risky Debt." <i>Journal of Finance</i> 44, no. 2: 345-373.</BIBTEXT>      </REF>	  <REF>   <BIBL>20</BIBL>	<BIBTEXT> Tsai, MS.; S. L. Liao; and S. L. Chiang. 2009. "Analyzing Yield, Duration and Convexity of Mortgage Loans Under Prepayment and Default Risks." <i>Journal of Housing Economics</i> 18, no. 2: 92-103.</BIBTEXT>	 </REF>     <REF>	<BIBL>21</BIBL>	  <BIBTEXT> Wilmott, P. 2000. <i>Paul Wilmott on Quantitative Finance.</i> Chichester, UK: John Wiley.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S3:p:157-174




Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Doytch
Author-X-Name-First: Nadia
Author-X-Name-Last: Doytch
Author-Name: Mesut Eren
Author-X-Name-First: Mesut
Author-X-Name-Last: Eren
Title: Institutional Determinants of Sectoral FDI in Eastern European and Central Asian Countries: The Role of Investment Climate and Democracy
Abstract:
 We study the determinants of the sectoral distribution of foreign direct investment (FDI) in Eastern Europe and Central Asia, focusing on the investment climate and state of democracy. Using a dynamic system generalized method of moments estimator, we examine twenty-one countries for the period 1994-2008. We find that when human capital is controlled for, the host country investment profile has a positive effect on agricultural FDI and the host country state of democracy positively affects agricultural and manufacturing FDI. In addition, services FDI is attracted by educated labor, whereas FDI to other sectors is attracted by cheap labor. Moreover, natural resource endowments have a positive impact on FDI in the sectors of agriculture and manufacturing.
Journal: Emerging Markets Finance and Trade
Pages: 14-32
Issue: S4
Volume: 48
Year: 2012
Month: 11
Keywords: democratic accountability, institutional determinants, investment profile, sectoral FDI
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8212G6L848172316
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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"Estimating Trade Flows: Trading Partners and Trading Volumes." <i>Quarterly Journal of Economics</i> 73, no. 2: 441-487.</BIBTEXT>      </REF>     <REF>	<BIBL>38</BIBL>	  <BIBTEXT> Javorcik, B. S., and S. J. Wei. 2009. "Corruption and Cross-Border Investment in Emerging Markets: Firm-Level Evidence." <i>Journal of International Money and Finance</i> 28, no. 4: 605-624.</BIBTEXT>      </REF>	 <REF>	    <BIBL>39</BIBL>	<BIBTEXT> Jensen, N., 2003. "Democratic Governance and Multinational Corporations: The Political Economy of Foreign Direct Investment." <i>International Organization</i> 57, no. 3: 587-616.</BIBTEXT>	</REF>   <REF>	    <BIBL>40</BIBL>	<BIBTEXT> Kaufmann, D; A. Kraay; and M. Mastruzzi. 2005. "Measuring Governance Using Cross-Country Perceptions Data." MPRA Paper no. 8219, World Bank, Washington, DC.</BIBTEXT>	 </REF>    <REF>	    <BIBL>41</BIBL>	  <BIBTEXT> Kaufmann, D.; A. Kraay; and P. Zoido-Lobatón. 1999. "Governance Matters." 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S. by Japanese Electronics Companies." <i>Review of Economics and Statistics</i> 78, no. 2: 221-231.</BIBTEXT>     </REF>      <REF>	 <BIBL>46</BIBL>   <BIBTEXT> Kolstad, I., and L. Tøndel. 2002. "Social Development and Foreign Direct Investments in Developing Countries." CMI Report R2002:11, Chr. Michelsen Institute, Development Studies and Human Rights, Bergen.</BIBTEXT>      </REF>	<REF>    <BIBL>47</BIBL>	<BIBTEXT> Kolstad, I., and E. Villanger. 2008. "Determinants of Foreign Direct Investment in Services." <i>European Journal of Political Economy</i> 24, no. 2: 518-533.</BIBTEXT> </REF>     <REF>   <BIBL>48</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A. Shleifer; and R. W. Vishny. 1998. "Corporate Ownership Around the World." <i>Journal of Finance</i> 54, no. 2: 471-517.</BIBTEXT>	</REF>	 <REF>	<BIBL>49</BIBL>	<BIBTEXT> Levine, R., and D. Renelt. 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions." <i>American Economic Review</i> 82, no. 4: 942-963.</BIBTEXT>	</REF>   <REF>	    <BIBL>50</BIBL>	  <BIBTEXT> Li, Q. 2009. "Outlier, Measurement, and the Democracy-FDI Controversy." <i>Quarterly Journal of Political Science</i> 4, no. 2: 167-181.</BIBTEXT>	  </REF>      <REF>	<BIBL>51</BIBL>	<BIBTEXT> Li, Q., and A. Resnick. 2003. "Reversal of Fortunes: Democracy, Property Rights and Foreign Direct Investment Inflows in Developing Countries." <i>International Organization</i> 57, no. 1: 175-214.</BIBTEXT>	 </REF>      <REF>	<BIBL>52</BIBL>   <BIBTEXT> Lipsey, R. E., and M. Y. Weiss. 1981. "Foreign Production and Exports in Manufacturing Industries." <i>Review of Economics and Statistics</i> 63, no. 4: 488-494.</BIBTEXT>	 </REF>      <REF>	<BIBL>53</BIBL>    <BIBTEXT> Lipsey, R. E., and M. Y. Weiss. 1984. "Foreign Production and Exports of Individual Firms." <i>Review of Economics and Statistics</i> 66, no. 2: 304-311.</BIBTEXT>	</REF>	<REF>	   <BIBL>54</BIBL> <BIBTEXT> Mauro, P. 1998. "Corruption and the Composition of Government Expenditure." <i>Journal of Public Economics</i> 69, no. 2: 263-279.</BIBTEXT>     </REF>      <REF>	 <BIBL>55</BIBL>   <BIBTEXT> Mauro, P. 2002. "The Persistence of Corruption and Slow Economic Growth." Working Paper no. WP/02/213, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	<REF>    <BIBL>56</BIBL>	<BIBTEXT> Méon, P. G., and K. Sekkat. 2004. "Does the Quality of Institutions Limit the MENA's Integration in the World Economy?" <i>World Economy</i> 27, no. 9: 1475-1498.</BIBTEXT> </REF>     <REF>   <BIBL>57</BIBL>	<BIBTEXT> Moskalev, S. A. 2010. "The Effect of Investor Protection on Forms and Ownership of FDI." <i>International Journal of Economics and Business Research</i> 2, no. 6: 525-567.</BIBTEXT>	</REF>	 <REF>	   <BIBL>58</BIBL>	<BIBTEXT> Mutinelli, M., and L. Piscitello. 1997. "Differences in the Strategic Orientation of Italian MNEs in Central and Eastern Europe: The Influence of Firm-Specific Factors." <i>International Business Review</i> 6, no. 2: 185-205.</BIBTEXT>      </REF>	  <REF>     <BIBL>59</BIBL>	<BIBTEXT> North, D. C., and R. B. Weingast. 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England." <i>Journal of Economic History</i> 49, no. 4: 803-832.</BIBTEXT>   </REF>     <REF>	 <BIBL>60</BIBL>  <BIBTEXT> Ok, S. T. 2004. "What Drives Foreign Direct Investment into Emerging Markets? Evidence from Turkey." <i>Emerging Markets Finance & Trade</i> 40, no. 4 (July-August): 101-114.</BIBTEXT>	</REF>	    <REF>	<BIBL>61</BIBL>       <BIBTEXT> Onaran, O., and E. Stockhammer. 2008. "The Effect of FDI and Foreign Trade on Wages in Central and Eastern European Countries in the Post Transition Era: A Sectoral Analysis for the Manufacturing Industry." <i>Structural Change and Economic Dynamics</i> 19, no. 1: 66-80.</BIBTEXT>	 </REF>      <REF>	<BIBL>62</BIBL>	 <BIBTEXT> PRS Group. 2012. <i>International Country Risk Guide.</i> Syracuse, NY.</BIBTEXT>    </REF>	<REF>	 <BIBL>63</BIBL>	<BIBTEXT> Resmini, L. 2000. "The Determinants of Foreign Direct Investments in the CEECs: New Evidence from Sectoral Patterns." <i>Economics of Transition</i> 8, no. 3: 665-689.</BIBTEXT>   </REF>     <REF>	<BIBL>64</BIBL>  <BIBTEXT> Roodman, D. 2006. "How to Do xtabond2: An Introduction to ‘Difference’ and ‘System’ GMM in Stata." Working Paper no. 103, Center for Global Development, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>65</BIBL>  <BIBTEXT> Rutkowski, A. 2006. "Inward FDI and Financial Constraints in Central and East European Countries." <i>Emerging Markets Finance & Trade</i> 42, no. 5 (September-October): 28-60.</BIBTEXT>	</REF>	    <REF>	<BIBL>66</BIBL>   <BIBTEXT> Ruud, P. A. 2000. <i>Classical Econometrics.</i> New York: Oxford University Press.</BIBTEXT>      </REF>     <REF>	<BIBL>67</BIBL>	  <BIBTEXT> Sekkat K., and M. A. Veganzones-Varoudakis. 2007. "Openness, Investment Climate, and FDI in Developing Countries." <i>Review of Development Economics</i> 11, no. 4: 607-620.</BIBTEXT>      </REF>	 <REF>	    <BIBL>68</BIBL>	<BIBTEXT> Shiells, C. R. 2003, "FDI and the Investment Climate in the CIS Countries." Policy Discussion Paper no. PDP/03/05, International Monetary Fund, Washington, DC.</BIBTEXT>	</REF>   <REF>	    <BIBL>69</BIBL>	<BIBTEXT> Shleifer, A., and R. W. Vishny. 1993. "Corruption." <i>Quarterly Journal of Economics</i> 108, no. 3: 599-617.</BIBTEXT>	 </REF>    <REF>	    <BIBL>70</BIBL>	  <BIBTEXT> Singh, H., and K. Jun. 1995. "Some New Evidence on Determinants of Foreign Direct Investment in Developing Countries." Policy Research Paper no. 1531, World Bank, Washington, DC.</BIBTEXT>	  </REF>      <REF>	<BIBL>71</BIBL>	<BIBTEXT> Smarzynska, B. K., and S. J. Wei. 2000. "Corruption and Composition of Foreign Direct Investment: Firm-Level Evidence." Working Paper no. 7969, National Bureau of Economic Research, Cambridge, MA</BIBTEXT>	 </REF>      <REF>	<BIBL>72</BIBL>   <BIBTEXT> Stein, E., and C. Daude. 2001. "Institutions, Integration, and the Location of Foreign Direct Investment." Paper presented at the OECD conference New Horizons and Policy Challenges for Foreign Direct Investment in the 21st Century, Mexico, November.</BIBTEXT>	 </REF>      <REF>	<BIBL>73</BIBL>    <BIBTEXT> Swenson, D. L. 1994. "The Impact of U. S. Tax Reform on Foreign Direct Investment in the United States." <i>Journal of Public Economics</i> 54, no. 2: 243-266.</BIBTEXT>	</REF>	<REF>	   <BIBL>74</BIBL> <BIBTEXT> Tanzi, V., and H. Davoodi, 2000. "Corruption, Growth and Public Finances." Working Paper no. 116, International Monetary Fund, Washington, DC.</BIBTEXT>     </REF>      <REF>	 <BIBL>75</BIBL>   <BIBTEXT> United Nations Conference on Trade and Development (UNCTAD). 2004. <i>The Shift Toward Services.</i> New York.</BIBTEXT>      </REF>	<REF>    <BIBL>76</BIBL>	<BIBTEXT> United Nations Conference on Trade and Development (UNCTAD). 2011. <i>Non-Equity Modes of International Production and Development.</i> New York.</BIBTEXT> </REF>     <REF>   <BIBL>77</BIBL>	<BIBTEXT> Waglé, S. 2011. "Investing Across Borders with Heterogeneous Firms: Do FDI-Specific Regulations Matter?" Policy Research Working Paper no. 5914, World Bank, Washington, DC.</BIBTEXT>	</REF>	 <REF>	   <BIBL>78</BIBL>	<BIBTEXT> Walkenhorst, P. 2004. "Economic Transition and the Sectoral Patterns of Foreign Direct Investment." <i>Emerging Markets Finance & Trade</i> 40, no. 2 (March-April): 5-26.</BIBTEXT>      </REF>	  <REF>     <BIBL>79</BIBL>	<BIBTEXT> Wei, S. J. 2000. "How Taxing Is Corruption on International Investors?" <i>Review of Economics and Statistics</i> 82, no. 1: 1-11.</BIBTEXT>   </REF>     <REF>	 <BIBL>80</BIBL>  <BIBTEXT> Wheeler, D., and A. Mody. 1992. "International Investment Location Decisions: The Case of US Firms." <i>Journal of International Economics</i> 33, no. 2: 57-76.</BIBTEXT>	</REF>	    <REF>	<BIBL>81</BIBL>       <BIBTEXT> Williamson, O. E. 1981. "The Economics of Organization: The Transaction Cost Approach." <i>American Journal of Sociology</i> 87, no. 2: 548-577.</BIBTEXT>	 </REF>      <REF>	<BIBL>82</BIBL>	 <BIBTEXT> World Bank. 2011. <i>The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium.</i> Washington, DC.</BIBTEXT>    </REF>	<REF>	 <BIBL>83</BIBL>	<BIBTEXT> Xu, D., and O. Shenkar. 2002. "Institutional Distance and the Multinational Enterprise." <i>Academy of Management Review</i> 27, no. 4: 608-618.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S4:p:14-32




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Ivrendi
Author-X-Name-First: Mehmet
Author-X-Name-Last: Ivrendi
Author-Name: Bulent Guloglu
Author-X-Name-First: Bulent
Author-X-Name-Last: Guloglu
Title: Changes in Stock Price Volatility and Monetary Policy Regimes: Evidence from Asian Countries
Abstract:
 This paper investigates the interactions between changes in stock prices and monetary policy regimes in four emerging Asian countries—Korea, Malaysia, Singapore, and Thailand—using a Markov regime-switching autoregressive conditional heteroskedasticity (MS-ARCH) model. To connect the stability of monetary policy to stock market volatility, the authors assume that monetary policy and stock price regimes are governed by the same fundamental: the state of the economy. They find that there exists an asymmetric relationship between the volatility of stock prices and the stability of monetary policy regimes. Most of their findings are consistent with real world observations.
Journal: Emerging Markets Finance and Trade
Pages: 54-70
Issue: S4
Volume: 48
Year: 2012
Month: 11
Keywords: MS-ARCH, stability of monetary policy, stock market volatility
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=984258N8K1482370
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahmed, E.; J. B. Rosser; and J. Y. Uppal. 2010. "Emerging Markets and Stock Market Bubbles: Nonlinear Speculation?" <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 23-40.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bernanke, B. S., and M. Gertler. 1999. "Monetary Policy and Asset Price Volatility." <i>Federal Reserve Bank of Kansas City Economic Review</i>, 4th quarter: 17-51.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bernanke, B. S., and M. Gertler. 2000. "Monetary Policy and Asset Price Volatility." Working Paper no. W7559, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bernanke, B. S., and K. N. Kuttner. 2005. "What Explains the Stock Market's Reaction to Federal Reserve Policy." <i>Journal of Finance</i> 60, no. 3: 1221-1257.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bordo, M. D., and D. C. Wheelock. 2004. "Monetary Policy and Asset Prices: A Look Back at Past U. S. Stock Market Booms." <i>Federal Reserve Bank of St. Louis Review:</i> 19-44.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Cai, J. 1994. "A Markov Model of Regime-Switching ARCH." <i>Journal of Business and Economic Statistics</i> 12, no. 3: 309-316.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Cassola, N., and C. Morana. 2004. "Monetary Policy and the Stock Market in the Euro Area." <i>Journal of Policy Modeling</i> 26, no. 3: 387-399.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Cecchetti, S. G.; H. Genberg; J. Lipsky; and S. B. Wadhwani. 2000. <i>Asset Prices and Central Bank Policy: Geneva Report on the World Economy 2.</i> London: Centre for Economic Policy Research.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chen, S. S. 2006. "Revisiting the Interest Rate-Exchange Rate Nexus: A Markov Switching Approach." <i>Journal of Development Economics</i> 79, no. 1: 208-224.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Cornell, B. 1983. "Money Supply Announcements and Interest Rates: Another View." <i>Journal of Business</i> 56, no. 1: 1-24.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Davig, T., and J. Gerlach. 2006. "State-Dependent Stock Market Reactions to Monetary Policy: ‘Bubble’ vs. Fundamental States." <i>International Journal of Central Banking</i> 2: 65-83.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Dupor, B. 2002. "Nominal Price Versus Asset Price Stabilization." Wharton School, University of Pennsylvania, Philadelphia.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Edwards, S., and R. Susmel. 2003. "Interest-Rate Volatility in Emerging Markets." <i>Review of Economics and Statistics</i> 85, no. 2: 328-348.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Friedman, M., and A. J. Schwartz. 1963. "Money and Business Cycles." <i>Review of Economics and Statistics</i> 45, no. 1, part 2: 32-64.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Garcia, R., and P. Perron. 1996. "An Analysis of the Real Interest Rate Under Regime Shifts." <i>Review of Economics and Statistics</i> 78, no. 1: 111-125.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Glosten, L. R.; R. Jagannathan; and D. E. Runkle. 1993. "On the Relation Between the Expected Value and the Volatility of the Nominal Excess Return on Stocks." <i>Journal of Finance</i> 48, no. 5: 1779-1801.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Gray, S. F. 1996. "Modelling the Conditional Distribution of Interest Rates as a Regime-Switching Process." <i>Journal of Financial Economics</i> 42, no. 1: 27-62.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Gurkaynak, R.; B. Sack; and E. Swanson. 2005. "Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements." <i>International Journal of Central Banking</i> 1, no. 1: 55-93.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Hamilton, J. D. 1994. <i>Time Series Analysis.</i> Princeton: Princeton University Press.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Hamilton, J. D. 2005. "What's Real About the Business Cycle?" <i>Federal Reserve Bank of St. Louis Review</i> 87, no. 4: 435-452.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Hamilton, J. D., and G. Lin. 1996. "Stock Market Volatility and the Business Cycle." <i>Journal of Applied Econometrics</i> 11, no. 5: 573-593.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Hamilton, J. D., and R. Susmel. 1994. "Autoregressive Conditional Heteroscedasticity and Changes in Regime." <i>Journal of Econometrics</i> 64, nos. 1-2: 307-333.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Hansen, B. E. 1992. "The Likelihood Ratio Test Under Nonstandard Conditions: Testing the Markov Switching Model of GNP." <i>Journal of Applied Econometrics</i> 7, supp. 1: S61-S82.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Hansen, B. E. 1996. "Erratum: The Likelihood Ratio Test Under Nonstandard Conditions: Testing the Markov Switching Model of GNP." <i>Journal of Applied Econometrics</i> 11, no. 2: 195-198.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Hung, J. H., and Y. P. Chen. 2010. "Equity Undervaluation and Signaling Power of Share Repurchases with Legal Restrictions." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 101-115.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Ivrendi, M. 2007. <i>Analyzing Monetary Policy, Stock Prices and Exchange Rates.</i> Berlin: VDM Verlag Dr. Mueller.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Ivrendi, M., and B. Guloglu. 2007. "Monetary Policy and Stock Market Volatility." In <i>ICBME Third International Conference on Business, Management and Economics, Volume 1: Perspectives on Economics</i>, ed. C. Can and S. Balta, pp. 156-168. Çesme-Izmir: Birlesik Press.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Kearney, A. A., and E. R. Lombra. 2004. "Stock Market Volatility, the News, and Monetary Policy." <i>Journal of Economics and Finance</i> 28, no. 2: 252-259.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Kim, D.; Y.G Lee; and I. Ruiz. 2010. "Common Volatility: An Empirical Investigation of Closed-End Country Funds." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 116-132.</BIBTEXT>      </REF>	  <REF>     <BIBL>30</BIBL>	<BIBTEXT> Lynge, M. 1981. "Money Supply Announcements and Stock Prices." <i>Journal of Portfolio Management</i> 8, no. 1: 40-43.</BIBTEXT>   </REF>     <REF>	 <BIBL>31</BIBL>  <BIBTEXT> Mills, T. C., and P. Wang. 2006. "Modeling Regime Shift Behaviour in Asian Real Interest Rates." <i>Economic Modeling</i> 23, no. 6: 952-966.</BIBTEXT>	</REF>	    <REF>	<BIBL>32</BIBL>       <BIBTEXT> Moore, T., and P. Wang. 2007. "Volatility in Stock Returns for New EU Member States: Markov Regime Switching Model." <i>International Review of Financial Analysis</i> 16, no. 3: 282-292.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>	 <BIBTEXT> Rigobon, R., and B. Sack. 2003. "Measuring the Reaction of Monetary Policy to the Stock Market." <i>Quarterly Journal of Economics</i> 118, no. 2: 639-669.</BIBTEXT>    </REF>	<REF>	 <BIBL>34</BIBL>	<BIBTEXT> Rigobon, R., and B. Sack. 2004. "The Impact of Monetary Policy on Asset Prices." <i>Journal of Monetary Economics</i> 51, no. 8: 1553-1575.</BIBTEXT>   </REF>     <REF>	<BIBL>35</BIBL>  <BIBTEXT> Sellin, P. 2001. "Monetary Policy and the Stock Market: Theory and Empirical Evidence." <i>Journal of Economic Surveys</i> 15, no. 4: 491-541.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>  <BIBTEXT> Sims, C. A., and T. Zha. 2004. "Were There Regime Switches in U. S. Monetary Policy?" Working Paper no. 14, Federal Reserve Bank of Atlanta, Atlanta.</BIBTEXT>	</REF>	    
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S4:p:54-70




Template-Type: ReDIF-Article 1.0
Author-Name: I. Hakan Yetkiner
Author-X-Name-First: I. Hakan
Author-X-Name-Last: Yetkiner
Author-Name: C. Coskun Küçüközmen
Author-X-Name-First: C. Coskun 
Author-X-Name-Last: Küçüközmen
Title: Guest Editors' Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3-6
Issue: S4
Volume: 48
Year: 2012
Month: 11
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=FJ6862R510W5781R
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Hamilton, J. D. 2005. "What's Real About the Business Cycle?" <i>Federal Reserve Bank of St. Louis Review</i> 87, no. 4: 435-452.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Laeven, L., and F. Valencia. 2008. "Systemic Banking Crises: A New Database." Working Paper no. 08/224, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Stoll, H. R. 2000. "Friction." <i>Journal of Finance</i> 55, no. 4: 1479-1514.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> United Nations Conference on Trade and Development (UNCTAD). 2011. <i>Non-Equity Modes of International Production and Development.</i> New York.</BIBTEXT>	</REF>	    
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S4:p:3-6




Template-Type: ReDIF-Article 1.0
Author-Name: William T. Lin
Author-X-Name-First: William T.
Author-X-Name-Last: Lin
Author-Name: David S. Sun
Author-X-Name-First: David S.
Author-X-Name-Last: Sun
Author-Name: Shih-Chuan Tsai
Author-X-Name-First: Shih-Chuan
Author-X-Name-Last: Tsai
Title: Does Trading Remove or Cause Friction?
Abstract:
 This study shows that trading causes friction in the market. However, when the market opens, trading of individuals removes market friction, while that of institutional trading does not. The situation during the rest of the day is just the opposite. The uneven behavior of trading noise across investors and time of day makes it a specific, rather than general, transaction cost, contrary to Stoll's (2000) finding. Intraday trading activity suppresses both order width and depth, as proxies for trading intensity, and therefore creates noise or friction in the market. Our findings support the proposed financial transaction tax in the European Union.
Journal: Emerging Markets Finance and Trade
Pages: 33-53
Issue: S4
Volume: 48
Year: 2012
Month: 11
Keywords: herding, noise, order book, search model, transaction cost
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q672665R3276450J
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Admati, A. R. 1991. "The Informational Role of Prices." <i>Journal of Monetary Economics</i> 28, no. 2: 347-361.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Ahn, H., and Y. Cheung. 1999. "The Intraday Patterns of the Spread and Depth in a Market Without Market Makers: The Stock Exchange of Hong Kong." <i>Pacific-Basin Finance Journal</i> 7, no. 5: 539-556.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Amihud, Y., and H. Mendelson. 1987. "Trading Mechanism and Stock Returns: An Empirical Investigation." <i>Journal of Finance</i> 42, no. 3: 533-553.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Avery, C., and Zemsky, P. 1998. "Multidimensional Uncertainty and Herd Behavior in Financial Markets." <i>American Economic Review</i> 88, no. 4: 724-748.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Banerjee, A. 1992. "A Simple Model of Herd Behavior." <i>Quarterly Journal of Economics</i> 107, no. 3: 797-817.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bikhchandani, S.; D. Hirshleifer; and I. Welch. 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades." <i>Journal of Political Economy</i> 100, no. 5: 992-1026.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Bloomfield, R.; M. O'Hara; and G. Saar. 2005. "The ‘Make or Take’ Decision in an Electronic Market: Evidence on the Evolution of Liquidity." <i>Journal of Financial Economics</i> 75, no. 1: 165-199.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Diamond, D., and R. E. Verrecchia. 1981. "Information Aggregation in a Noisy Rational Expectations Economy." <i>Journal of Financial Economics</i> 9, no. 3: 221-235.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Dorn, D.; G. Huberman; and P. Sengmueller. 2008. "Correlated Trading and Returns." <i>Journal of Finance</i> 58, no. 2: 885-920.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Easley, D., and M. O'Hara. 1992. "Time and the Process of Security Price Adjustment." <i>Journal of Finance</i> 47, no. 2: 577-605.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Easley, D.; N. M. Kiefer; and M. O'Hara. 1997. "One Day in the Life of a Very Common Stock." <i>Review of Financial Studies</i> 10, no. 3: 805-835.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Finucane, T. J. 2000. "A Direct Test of Methods for Inferring Trade Direction from Intra-Day Data." <i>Journal of Financial and Quantitative Analysis</i> 35, no. 4: 553-557.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Foucault, T.; O. Kadam; and E. Kandel. 2005. "Limit Order Book as a Market for Liquidity." <i>Review of Financial Studies</i> 18, no. 4: 1171-1218.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Glosten, L. R., and P. R. Milgrom. 1985. "Bid, Ask and Transaction Prices in a Specialist Market with Heterogeneously Informed Traders." <i>Journal of Financial Economics</i> 14, no. 1: 71-100.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Grossman, S. J., and J. E. Stiglitz. 1980. "On the Impossibility of Informationally Efficient Markets." <i>American Economic Review</i> 70, no. 3: 393-408.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Hu, S. 2006. "A Simple Estimate of Noise and Its Determinant in a Call Auction Market." <i>International Review of Financial Analysis</i> 15, no. 4: 348-362.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Kang, W., and W. Yeo. 2008. "Liquidity Beyond the Best Quote: A Study of the NYSE Limit Order Book." Working Paper, National University of Singapore.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Kyle, A. S. 1985. "Continuous Auctions and Insider Trading." <i>Econometrica</i> 53, no. 6: 1315-1335.</BIBTEXT>      </REF>	 <REF>    <BIBL>19</BIBL>	<BIBTEXT> Lakonishok, J.; A. Shleifer; and R. W. Vishny. 1992. "The Impact of Institutional Trading on Stock Prices." <i>Journal of Financial Economics</i> 32, no. 1: 23-43.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Lee, C. M. C., and J. J. Ready. 1991. "Inferring Trade from Intraday Data." <i>Journal of Finance</i> 46, no. 2: 733-746.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Lin, J.; G. C. Sanger; and G. G. Booth. 1995. "Trade Size and Components of the Bid-Ask Spread." <i>Review of Financial Studies</i> 8, no. 4: 1153-1183.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Lin, W. T.; S. C. Tsai; and D. S. Sun. 2012. "Search Costs and Investor Trading Activity: Evidence from a Limit Order Book." <i>Emerging Markets Finance & Trade</i> 48, no. 3 (May-June): 4-30.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> McKenzie, M. D. 2007. "Technical Trading Rules in Emerging Markets and the 1997 Asian Currency Crises." <i>Emerging Markets Finance & Trade</i> 43, no. 4: 46-73.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Mood, A. 1940. "The Distribution Theory of Runs." <i>Annals of Mathematical Statistics</i> 11, no. 4: 367-392.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Nofsinger, J. R., and R. W. Sias. 1999. "Herding and Feedback Trading by Institutional and Individual Investors." <i>Journal of Finance</i> 54, no. 6: 2263-2295.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Patterson, D., and V. Sharma. 2006. "Do Traders Follow Each Other at the NYSE?" Working Paper, University of Michigan, Dearborn.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Stoll, H. R. 2000. "Friction." <i>Journal of Finance</i> 55, no. 4: 1479-1514.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Stoll, H. R., and R. E. Whaley. 1990. "Stock Market Structure and Volatility." <i>Review of Financial Studies</i> 3, no. 1: 37-71.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Wermers, R. 1999. "Mutual Fund Herding and the Impact on Stock Prices." <i>Journal of Finance</i> 54, no. 2: 581-622.</BIBTEXT>	</REF>	    
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S4:p:33-53




Template-Type: ReDIF-Article 1.0
Author-Name: Senay Agca
Author-X-Name-First: Senay
Author-X-Name-Last: Agca
Author-Name: Oya Celasun
Author-X-Name-First: Oya
Author-X-Name-Last: Celasun
Title: Banking Sector Reforms and Corporate Borrowing Costs in Emerging Markets
Abstract:
 Using a panel data set of syndicated bank loans in emerging markets, we find that banking sector reforms that improve bank competition and facilitate bank privatization lead to lower borrowing costs, suggesting that these reforms improve efficiency in credit markets. Reforms that tighten bank supervision, however, increase loan spreads, consistent with better risk pricing with effective oversight. Bank competition and supervision reforms affect borrowing costs primarily in countries with low corruption and well-functioning legal environment. Bank privatization reforms are effective in countries with better investment profiles. These results suggest that the success of banking reforms depend closely on the quality of institutions.
Journal: Emerging Markets Finance and Trade
Pages: 71-95
Issue: S4
Volume: 48
Year: 2012
Month: 11
Keywords: bank, credit market reforms, credit spreads, loan
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R806M563035283H5
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abiad, A.; E. Detragiache; and T. Tressel. 2010. "A New Database of Financial Reforms." <i>IMF Staff Papers</i> 57, no. 2: 281-302.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Agca, S., and O. Celasun. 2012. "Sovereign Debt and Corporate Borrowing Costs in Emerging Markets." <i>Journal of International Economics</i> 88, no. 1: 198-208.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Akdeniz, L.; A. Altay-Salih; and K. Aydogan. 2000. "A Cross-Section of Expected Returns on Istanbul Stock Exchange." <i>Emerging Markets Finance & Trade</i> 36, no. 5 (September-October): 6-26.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bae, K. H., and V. K. Goyal. 2009. "Creditor Rights, Enforcement, and Bank Loans." <i>Journal of Finance</i> 64, no. 2: 823-960.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bertrand, M.; A. Schoar; and D. Thesmar. 2007. "Banking Deregulation and Industry Structure: Evidence from the French Banking Reforms of 1985." <i>Journal of Finance</i> 62, no. 2: 597-628.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Cameron, C. A.; J. B. Gelbach; and D. L. Miller. 2006. "Robust Inference with Multi-Way Clustering." Technical Working Paper no. 327, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Cetorelli, N., and P. E. Strahan. 2006. "Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U. S. Markets." <i>Journal of Finance</i> 61, no. 1: 437-461.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Demirguc-Kunt, A., and E. Detragiache. 2002. "Does Deposit Insurance Increase Banking System Stability? An Empirical Investigation." <i>Journal of Monetary Economics</i> 49, no. 7: 1373-1406.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Demirguc-Kunt, A.; L. Laeven; and R. Levine. 2004. "Regulations, Market Structure, Institutions, and the Cost of Financial Intermediation." <i>Journal of Money, Credit, and Banking</i> 36, no. 3: 593-622.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Erol, T. 2004. "Strategic Debt with Diverse Maturity in Developing Countries: Industry-Level Evidence from Turkey." <i>Emerging Markets Finance & Trade</i> 40, no. 5 (September-October): 5-24.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Guiso, L.; P. Sapienza; and L. Zingales. 2007. "The Cost of Banking Regulation." Working Paper no. 12501, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Hale, G., and J. Santos. 2009. "Do Banks Price Their Informational Monopoly?" <i>Journal of Financial Economics</i> 93, no. 2: 185-206.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Heckman, J. J. 1979. "Sample Selection Bias as a Specification Error." <i>Econometrica</i> 47, no. 1: 153-161.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Hrncir, M. 1993. "Financial Intermediation and Financial Markets in Transition: The Case of Czechoslovakia." <i>Russian & East European Finance and Trade</i> 29, no. 2 (March-April): 42-48.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Ito, H., and M. Chinn. 2008. "A New Measure of Financial Openness." <i>Journal of Comparative Policy Analysis</i> 10, no. 3: 309-322.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Kaminsky, G. L., and S. Schmukler. 2008. "Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles." <i>Review of Finance</i> 12, no. 1: 253-292.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Laeven, L., and F. Valencia. 2008. "Systemic Banking Crises: A New Database." Working Paper no. 08224, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Qian, J., and P. E. Strahan. 2007. "How Laws and Institutions Shape Financial Contracts: The Case of Bank Loans." <i>Journal of Finance</i> 62, no. 6: 2803-2834.</BIBTEXT>      </REF>	 <REF>    <BIBL>19</BIBL>	<BIBTEXT> Petersen, M. A. 2009. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches." <i>Review of Financial Studies</i> 22, no. 1: 435-480.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Rebelskii, N. 1997. "Antimonopoly Regulation in the Banking Sphere." <i>Russian & East European Finance and Trade</i> 33, no. 2 (March-April): 41-57.</BIBTEXT>	</REF>	    
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S4:p:71-95




Template-Type: ReDIF-Article 1.0
Author-Name: Josef C. Brada
Author-X-Name-First: Josef C.
Author-X-Name-Last: Brada
Author-Name: Trajko Slaveski
Author-X-Name-First: Trajko
Author-X-Name-Last: Slaveski
Title: Transition in a Bubble Economy
Abstract:
 Although there is a large body of literature examining the negative effects of the global financial crisis on transition economies, the global financial bubble that preceded the crisis had a large positive impact on the productive capacity of these countries, both by increasing the pace of capital formation and by accelerating the growth of productivity. At the same time, through different channels, the global bubble also ensured that there was sufficient demand for the goods produced by the new capacity, thus creating a temporary high-output equilibrium. In the future, a new growth model, one based more on domestic resources, will be needed in transition economies, and policymakers should be cautious in judging the ability of their past policies to promote good economic performance.
Journal: Emerging Markets Finance and Trade
Pages: 7-13
Issue: S4
Volume: 48
Year: 2012
Month: 11
Keywords: convergence, economic policy, financial bubbles, foreign direct investment, global financial crisis, productivity, transition
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y74775G34L445V77
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Brezingar-Masten, A.; F. Coricelli; and I. Masten. 2010. "Financial Integration and Financial Development in Transition Economies: What Happens During Financial Crises?" Working Paper no. 10021, Centre d'Economie de la Sorbonne, Paris.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Brixiova, Z.; L. Vartia; and A. Worgotter. 2009. "Capital Inflows, Household Debt and the Boom-Bust Cycle in Estonia." William Davidson Institute Working Paper no. 965, University of Michigan, Ann Arbor.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> European Commission. 2006. "Enlargement, Two Years After: An Economic Evaluation." Occasional Paper no. 24, European Union Bureau of European Policy Advisers and the Directorate-General for Economic and Financial Affairs, Brussels.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Haiss, P.; B. Mahlberg; and M. Molling. 2009. "The Automotive Industry in Central and Eastern Europe—Engine of Growth or Free Rider?" Paper presented at the 2009 Oxford Business and Economics Conference (OBEC), Oxford University, Oxford, UK, June 24.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Hanoušek, J.; E. Kocenda; and M. Maurel. 2010. "Direct and Indirect Effects of FDI in Emerging European Markets: A Survey and Meta-Analysis." Working Paper no. 2010.24, Centre d'Economie de la Sorbonne, Paris.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Mileva, E. 2008. "The Impact of Capital Flows on Domestic Investment in Transition Economies." Working Paper no. 871, European Central Bank, London.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Mišun, J., and V. Tomšík. 2002. "Does Foreign Direct Investment Crowd In or Crowd Out Domestic Investment?" <i>Eastern European Economics</i> 40, no. 2 (March-April): 38-56.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Pirovano, M.; J. Vanneste; and A. Van Poeck. 2009. "Portfolio and Short-Term Capital Inflows to the New and Potential EU Countries: Patterns, Determinants and Policy Responses." Research Paper no. 2009-018, Department of Economics, University of Antwerp, Antwerp.</BIBTEXT>	</REF>	    
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S4:p:7-13




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Faruk Aysan
Author-X-Name-First: Ahmet Faruk
Author-X-Name-Last: Aysan
Title: Guest Editor's Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4-6
Issue: S5
Volume: 48
Year: 2012
Month: 11
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A1U0841576620234
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akin, G. G.; A. F. Aysan; and L. Yildiran. 2008. "Transformation of the Turkish Financial Sector in the Aftermath of the 2001 Crisis." MPRA (Munich Personal RePEc Archive) Paper no. 17803, University Library of Munich, Germany.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Akin, G. G.; A. F. Aysan; G. I. Kara; and L. Yildiran. 2010. "The Failure of Price Competition in the Turkish Credit Card Market." <i>Emerging Markets Finance & Trade</i> 46, supp. 1: 23-35.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Akin, G. G.; A. F. Aysan; G. I. Kara; and L. Yildiran. 2011. "Nonprice Competition in the Turkish Credit Card Market." <i>Contemporary Economic Policy</i> 29, no. 4: 593-604.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Aysan, A. F. 2010. "Country Fact Sheet—Turkey." In <i>The G-20: A "Global Economic Government" in the Making?</i> ed. C. Pohlmann, S. Reichert, and H. R. Schillinger, 57-58. Berlin: Friedrich-Ebert-Stiftung.</BIBTEXT>	</REF>	    
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S5:p:4-6




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Kilinç
Author-X-Name-First: Mustafa
Author-X-Name-Last: Kilinç
Author-Name: Zübeyir Kilinç
Author-X-Name-First: Zübeyir
Author-X-Name-Last: Kilinç
Author-Name: M. Ibrahim Turhan
Author-X-Name-First: M. Ibrahim
Author-X-Name-Last: Turhan
Title: Resilience of the Turkish Economy During the Global Financial Crisis of 2008
Abstract:
 The authors explore the sources of the resilience of the Turkish economy to the global financial crisis of 2008. They first show that financial factors and fundamentals were very strong in Turkey before the crisis, and monetary and fiscal policies responded strongly to the crisis in a countercyclical way. They find that these strong fundamentals and prudent economic policies are reflected in the risk premium movements. Emerging market bond index (EMBI) spreads for Turkey increased slightly during the 2008 crisis and decreased back to the normal levels quickly. This was in large contrast to the crisis in 2001, when spreads increased significantly due to the weak fundamentals and decreased very slowly. Second, the authors quantitatively analyze the effects of risk premium movements during the crisis in a small open economy framework. They find that the risk premium observed in 2008 could not generate large movements in output, validating the point that the Turkish economy was resistant to the financial factors of the crisis.
Journal: Emerging Markets Finance and Trade
Pages: 19-34
Issue: S5
Volume: 48
Year: 2012
Month: 11
Keywords: crises, EMBI spreads, financial factors, fundamentals, risk premium, Turkey
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B4Q076XR3Q3M2488
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alp, H., and S. Elekdag. 2011. "The Role of Monetary Policy in Turkey During the Global Financial Crisis." Working Paper no. 11/10, Central Bank of the Republic of Turkey, Ankara.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Akin, G. G.; A. F. Aysan; and L. Yildiran. 2008. "Transformation of the Turkish Financial Sector in the Aftermath of the 2001 Crisis." MPRA (Munich Personal RePEc Archive) Paper no. 17766, University Library of Munich, Munich.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Aysan, A. F.; G. Pang; and M. A. Veganzones-Varoudakis. 2009. "Uncertainty, Economic Reforms and Private Investment in the Middle East and North Africa." <i>Applied Economics</i> 41, no. 11: 1379-1395.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Basci, E., and M. F. Ekinci. 2005. "Bond Premium in Turkey: Inflation Risk or Default Risk?" <i>Emerging Markets Finance & Trade</i> 41, no. 2 (March-April): 25-40.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Basci, E., and H. Kara. 2011. "Financial Stability and Monetary Policy." <i>Iktisat Isletme ve Finans</i> 26, no. 302: 9-25.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bernanke, B.; M. Gertler; and S. Gilchrist. 1999. "The Financial Accelerator in a Quantitative Business Cycle Framework." In <i>Handbook of Macroeconomics</i>, ed. M. Woodford and J. Taylor, pp. 1341-1393. Amsterdam: North-Holland.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Calvo, G. A. 1983. "Staggered Prices in a Utility Maximizing Framework." <i>Journal of Monetary Economics</i> 12, no. 3: 383-398.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Calvo, G. A., and C. M. Reinhart. 2002. "Fear of Floating." <i>Quarterly Journal of Economics</i> 117, no. 2: 379-408.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Cimenoglu, A., and N. Yenturk. 2005. "Effects of International Capital Inflows on the Turkish Economy." <i>Emerging Markets Finance & Trade</i> 41, no. 1 (January-February): 90-109.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Garcia-Cicco, J.; R. Pancrazi; and M. Uribe. 2010. "Real Business Cycles in Emerging Countries?" <i>American Economic Review</i> 100, no. 5: 2510-2531.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Gertler, M.; S. Gilchrist; and F. M. Natalucci. 2007. "External Constraints on Monetary Policy and the Financial Accelerator." <i>Journal of Money, Credit and Banking</i> 39, nos. 2-3: 295-330.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Gunay, H., and M. Kilinc. 2011. "Credit Market Imperfections and Business Cycle Asymmetries in Turkey." Working Paper no. 11/07, Central Bank of the Republic of Turkey, Ankara.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Karabulut, G.; M. H. Bilgin; and A. C. Danisoglu. 2010. "Determinants of Currency Crises in Turkey." <i>Emerging Markets Finance & Trade</i> 46, supp. 1: 51-58.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Neumeyer, P. A., and F. Perri. 2005. "Business Cycles in Emerging Economies: The Role of Interest Rates." <i>Journal of Monetary Economics</i> 52, no. 2: 345-380.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Ozkan, F. G. 2005. "Currency and Financial Crises in Turkey 2000-2001: Bad Fundamentals or Bad Luck?" <i>World Economy</i> 28, no. 4: 541-572.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Reinhart, C. 2010. "This Time Is Different Chartbook: Country Histories on Debt, Default, and Financial Crises." Working Paper no. 15815, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Reinhart, C., and K. Rogoff. 2009. "The Aftermath of Financial Crises." Working Paper no. 14656, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Schmitt-Grohe, S., and M. Uribe. 2003. "Closing Small Open Economy Models." <i>Journal of International Economics</i> 61, no. 1: 163-185.</BIBTEXT>      </REF>	 <REF>    <BIBL>19</BIBL>	<BIBTEXT> Tiryaki, S. T. 2010. "Interest Rates and Business Cycles in Emerging Markets." Working Paper no. 10/08, Central Bank of the Republic of Turkey, Ankara.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Turhan, M. I. 2008. "Why Did It Work This Time? A Comparative Analysis of Transformation of Turkish Economy After 2002." <i>Asian-African Journal of Economics and Econometrics</i> 8, no. 2: 255-280.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Turhan, M. I., and Z. Kilinc. 2011. "Turkey's Response to the Global Economic Crisis." <i>Insight Turkey</i> 13, no. 1: 37-45.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Uribe, M., and V. Z. Yue. 2006. "Country Spreads and Emerging Countries: Who Drives Whom?" <i>Journal of International Economics</i> 69, no. 1: 6-36.</BIBTEXT>	</REF>	    
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S5:p:19-34




Template-Type: ReDIF-Article 1.0
Author-Name: Burak Saltoglu
Author-X-Name-First: Burak
Author-X-Name-Last: Saltoglu
Author-Name: M. Ege Yazgan
Author-X-Name-First: M. Ege
Author-X-Name-Last: Yazgan
Title: The Role of Regime Shifts in the Term Structure of Interest Rates: Further Evidence from an Emerging Market
Abstract:
 In this paper, we investigate the interrelationships among Turkish interest rates having different maturities by using a regime-switching vector error correction model. We find a relationship of long-run equilibrium among interest rates having various maturities. Furthermore, we conclude that term structure dynamics exhibit significant nonlinearity. A forecasting experiment also reveals that the nonlinear term structure models fare better in forecasting than other linear specifications. However, we cannot conclude that interest rate adjustments are made in an asymmetric way in the long run.
Journal: Emerging Markets Finance and Trade
Pages: 48-63
Issue: S5
Volume: 48
Year: 2012
Month: 11
Keywords: cointegration, forecast evaluation, forecasting, regime switching, term structure of interest rates
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C211668V0L746455
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alper, C. E.; K. Kazimov; and A. Akdemir. 2007. "Forecasting the Term Structure of Interest Rates for Turkey: A Factor Analysis Approach." <i>Applied Financial Economics</i> 17, no. 1: 77-85.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Berument, H., and K. Malatyali. 2001. "Determinants of Interest Rates in Turkey." <i>Russian and East European Finance and Trade</i> 37, no. 1 (January-February): 5-17.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Campbell, J. Y., and R. H. Clarida. 1987. "Household Saving and Permanent Income in Canada and the United Kingdom." Working Paper no. 2223, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Campbell, J. Y., and R. J. Shiller. 1991. "Yield Spreads and Interest Rate Movements: A Bird's Eye View." <i>Review of Economic Studies</i> 58, no. 3: 495-514.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Cheung, Y. W., and K. S. Lai. 1993. "Finite-Sample Sizes of Johansen's Likelihood Ratio Tests for Cointegration." <i>Oxford Bulletin of Economics and Statistics</i> 55, no. 3: 313-328.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Clarida, R. H.; L. Sarno; M. P. Taylor; and G. Valente. 2003. "The Out-of-Sample Success of Term Structure Models as Exchange Rate Predictors: A Step Beyond." <i>Journal of International Economics</i> 60, no. 1: 61-83.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Clarida, R. H.; L. Sarno; M. P. Taylor; and G. Valente. 2006. "The Role of Asymmetries and Regime Shifts in the Term Structure of Interest Rates." <i>Journal of Business</i> 79, no. 3: 1193-1224.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Cuestas, J. C., and B. Harrison. 2010. "Further Evidence on the Real Interest Rate Parity Hypothesis in Central and East European Countries." <i>Emerging Markets Finance & Trade</i> 46, no. 6 (November-December): 5-40.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Diebold, F. X., and C. Li. 2006. "Forecasting the Term Structure of Government Bond Yields." <i>Journal of Econometrics</i> 130, no. 2: 337-364.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Diebold, F. X., and R. S. Mariano. 1995. "Comparing Predictive Accuracy." <i>Journal of Business</i> and Economic Statistics 13, no. 3: 253-263.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Diebold, F. X.; J. Christensen; and G. Rudebusch. 2011. "The Affine Arbitrage-Free Class of Nelson-Siegel Term Structure Models." <i>Journal of Econometrics</i> 164, no. 4: 4-20.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Diebold, F. X.; C. Li; and V. Yue. 2008. "Global Yield Curve Dynamics and Interactions: A Generalized Nelson-Siegel Approach." <i>Journal of Econometrics</i> 146, no. 2: 351-363.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Gabrisch, H., and L. T. Orlowski. 2010. "Interest Rate Convergence in Euro-Candidate Countries: Volatility Dynamics of Sovereign Bond Yields." <i>Emerging Markets Finance & Trade</i> 46, no. 6 (November-December): 56-69.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Guillen, O. T., and B. M. Tabak. 2008. "Characterizing the Brazilian Term Structure of Interest Rates." Working Paper no. 158, Central Bank of Brazil, Sao Paolo.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Hall, A. D.; H. M. Anderson, and C. W. J. Granger. 1992. "A Cointegration Analysis of Treasury Bill Yields." <i>Review of Economics and Statistics</i> 74, no. 1: 116-126.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Hamilton, J. D. 1989. "A New Approach to the Economic Analysis of Nonstationary Time Series and the Business Cycle." <i>Econometrica</i> 57, no. 2: 357-384.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Johansen, S. 1996. <i>Likelihood-Based Inference in Cointegrated Vector Auto-Regressive Models.</i> Oxford: Oxford University Press.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Johansen, S. 2000. "A Bartlett Correction Factor for Tests on the Cointegration Relations." <i>Econometric Theory</i> 16, no. 5: 740-778.</BIBTEXT>      </REF>	 <REF>    <BIBL>19</BIBL>	<BIBTEXT> Johansen, S. 2002. "A Small Sample Correction for the Test of Cointegrating Rank in the Vector Autoregressive Model." <i>Econometrica</i> 70, no. 5: 1929-1961.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Kaya, H., and E. Yazgan. 2011. "Structural Change in the Relationship Between Term Structure of Interest Rate and Inflation Associated with Inflation Targeting: Evidence from Turkey." <i>Applied Financial Economics</i> 21, no. 20: 1539-1547.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Krolzig, H.-M. 1996. "Statistical Analysis of Cointegrated VAR Processes with Markovian Regime Shifts." Oxford Technical Report, Institute of Economics and Statistics, Oxford.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Krolzig, H.-M. 1997. <i>Markov-Switching Vector Autoregressions: Modelling, Statistical Inference and Application to Business Cycle Analysis.</i> Lecture Notes in Economics and Mathematical Systems, vol. 454. Berlin: Springer.</BIBTEXT>	</REF>	    <REF>	    <BIBL>23</BIBL>	  <BIBTEXT> Krolzig, H. M.; M. Marcellino; and G. Mizon. 2002. "A Markov Switching Vector Equilibrium Correction Model of the UK Labour Market." <i>Empirical Economics</i> 27, no. 2: 233-254.</BIBTEXT>	  </REF>      <REF>	<BIBL>24</BIBL>	<BIBTEXT> Nelson, C. R., and A. F. Siegel. 1987. "Parsimonious Modeling of Yield Curves." <i>Journal of Business</i> 60, no. 4: 473-489.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>   <BIBTEXT> Telatar, E.; F. Telatar; and R. A. Ratti. 2003. "On the Predictive Power of the Term Structure of Interest Rates for Future Inflation Changes in the Presence of Political Instability: The Turkish Economy." <i>Journal of Policy Modeling</i> 25, no. 9: 931-946.</BIBTEXT>	 </REF>      <REF>	<BIBL>26</BIBL>    <BIBTEXT> Yilmazkuday, H., and K. Akay. 2008. "An Analysis of Regime Shifts in the Turkish Economy." <i>Economic Modeling</i> 25, no. 5: 885-898.</BIBTEXT>	</REF>	<REF>	   <BIBL>27</BIBL> <BIBTEXT> West, K. D. 1996. "Asymptotic Inference About Predictive Ability." <i>Econometrica</i> 64, no. 5: 1067-1084.</BIBTEXT>     </REF>      <REF>	 <BIBL>28</BIBL>   <BIBTEXT> White, H. 2000. "A Reality Check for Data Snooping." <i>Econometrica</i> 68, no. 5: 1097-1126.</BIBTEXT>      </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S5:p:48-63




Template-Type: ReDIF-Article 1.0
Author-Name: Meryem Duygun Fethi
Author-X-Name-First: Meryem Duygun
Author-X-Name-Last: Fethi
Author-Name: Mohamed Shaban
Author-X-Name-First: Mohamed
Author-X-Name-Last: Shaban
Author-Name: Thomas Weyman-Jones
Author-X-Name-First: Thomas
Author-X-Name-Last: Weyman-Jones
Title: Turkish Banking Recapitalization and the Financial Crisis: An Efficiency and Productivity Analysis
Abstract:
 This paper describes procedures in panel data econometrics for efficiency measurement and productivity decomposition in the banking system of an emerging economy with a special focus on the period following a financial crisis. In the recovery from a banking crisis, policymakers attempt to recapitalize the banking system, but this has the potential to impose significant costs. Turkey has restructured the banking system through recapitalization, and this has directly caused the shadow return on equity to turn negative. This negative shadow return on equity is an offset to total factor productivity change, and there is an important policy lesson that a successful recapitalization has a cost in restricting the banking system's overall productivity growth.
Journal: Emerging Markets Finance and Trade
Pages: 76-90
Issue: S5
Volume: 48
Year: 2012
Month: 11
Keywords: banking, cost function, panel data, stochastic frontier analysis
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=DH635T1885HL82L0
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abbasoglu, O. F.; A. F. Aysan; and A. Gunes. 2007. "Concentration, Competition, Efficiency and Profitability of the Turkish Banking Sector in the Post-Crises Period." MPRA (Munich Personal RePEc Archive) Paper no. 5494, University Library of Munich, Munich.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Akin, G. G.; A. F. Aysan; and L. Yildiran. 2008. "Transformation of the Turkish Financial Sector in the Aftermath of the 2001 Crisis." MPRA (Munich Personal RePEc Archive) Paper no. 17803, University Library of Munich, Munich.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Akin, G.G; A. F. Aysan; G. I. Kara; and L. Yildiran. 2010. "The Failure of Price Competition in the Turkish Credit Card Market." <i>Emerging Markets Finance & Trade</i> 46 (May-June supp.): 23-35.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Akin, G.G; A. F. Aysan; G. I. Kara; and L. Yildiran. 2011. "Nonprice Competition in the Turkish Credit Card Market." <i>Contemporary Economic Policy</i> 29, no. 4: 593-604.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Akyurek, C. 2006. "The Turkish Crisis of 2001." <i>Emerging Markets Finance & Trade</i> 42, no. 1 (January-February): 5-32.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Al, H., and A. F. Aysan. 2006. "Assessing the Preconditions in Establishing an Independent Regulatory and Supervisory Agency in Globalized Financial Markets: The Case of Turkey." <i>International Journal of Applied Business and Economic Research</i> 4, no. 2: 125-146.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Battese, G. E., and T. J. Coelli. 1992. "Frontier Production Functions, Technical Efficiency and Panel Data: With Application to Paddy Farmers in India." <i>Journal of Productivity Analysis</i> 3, no. 1: 153-169.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Battese, G. E., and T. J. Coelli. 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data." <i>Empirical Economics</i> 20, no. 2: 325-332.</BIBTEXT>	</REF>	 <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Bauer, P. W. 1990. "Decomposing TFP Growth in the Presence of Cost Inefficiency, Nonconstant Returns to Scale, and Technological Progress." <i>Journal of Productivity Analysis</i> 1, no. 4: 287-299.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Bikker, J. A., and J. W. B. Bos. 2008. <i>Bank Performance: A Theoretical and Empirical Framework for the Analysis of Profitability, Competition and Efficiency.</i> London: Routledge.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Boucinha, M.; N. Ribeiro; and T. Weyman-Jones. 2009. "An Assessment of Portuguese Banks' Costs and Efficiency." Working Paper no. 22, Bank of Portugal, Lisbon.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Braeutigam, R. R., and A. F. Daughety. 1983. "On The Estimation of Returns to Scale Using Variable Cost Functions." <i>Economics Letters</i> 11, no. 1: 25-31.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Bureau Van Dijk. 2010. "Bankscope Database" (available at <a target="_blank" href='http://www.bvdinfo.com/Home.aspx'>www.bvdinfo.com/Home.aspx</a></BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Caves, D. W.; L. R. Christensen; and W. E. Diewert. 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output and Productivity." <i>Econometrica</i> 50, no. 6: 1393-1414.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Caves, D. W.; L. R. Christensen; and J. Swanson. 1981. "Productivity Growth, Scale Economies, and Capacity Utilization in U. S. Railroads, 1955-74." <i>American Economic Review</i> 75, no. 5: 994-1002.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Cornwell, C.; P. Schmidt; and R. C. Sickles. 1990. "Production Frontiers with Cross-Sectional and Time-Series Variation in Efficiency Levels." <i>Journal of Econometrics</i> 46, no. 1: 185-200.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Diewert, W. E., and T. J. Wales. 1987. "Flexible Functional Forms and Global Curvature Conditions." <i>Econometrica</i> 55, no. 1: 43-68.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> European Commission. 2010. "Annual Macro-Economic Database." Directorate General for Economic and Financial Affairs, Brussels (available at <a target="_blank" href='http://ec.europa.eu/economy_finance/db_indicators/ameco/index_en.htm'>http://ec.europa.eu/economy_finance/db_indicators/ameco/index_en.htm</a></BIBTEXT>      </REF>	 <REF>    <BIBL>19</BIBL>	<BIBTEXT> Fethi, M. D., and F. Pasiouras. 2010. "Assessing Bank Efficiency and Performance with Operational Research and Artificial Intelligence Techniques: A Survey." <i>European Journal of Operational Research</i> 204, no. 2: 189-198.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Hughes, J. P.; L. J. Mester; and C. G. Moon. 2001. "Are Scale Economies in Banking Elusive or Illusive: Evidence Obtained by Incorporating Capital Structure and Risk Taking into Models of Bank Production." <i>Journal of Banking and Finance</i> 25, no. 12: 2169-2208.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> International Monetary Fund (IMF) 2007. <i>Turkey: 2007 Article IV Consultation, Concluding Statement of the IMF Mission.</i> Washington, DC.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> International Monetary Fund (IMF) 2010. <i>Turkey: 2010 Article IV Consultation and Post Program Monitoring, Preliminary Conclusions of the IMF Mission.</i> Washington, DC.</BIBTEXT>	</REF>	    <REF>	    <BIBL>23</BIBL>	  <BIBTEXT> King, M. 2010. "Banking from Bagehot to Basel and Back Again." Speech delivered as the Second Bagehot Lecture, Buttonwood Gathering, New York, October 25.</BIBTEXT>	  </REF>      <REF>	<BIBL>24</BIBL>	<BIBTEXT> Kumbhakar, S., and C. A. K. Lovell. 2000. <i>Stochastic Frontier Analysis.</i> Cambridge: Cambridge University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>   <BIBTEXT> Lovell, C. A. K. 2003. "The Decomposition of Malmquist Productivity Indexes." <i>Journal of Productivity Analysis</i> 20, no. 3: 437-458.</BIBTEXT>	 </REF>      <REF>	<BIBL>26</BIBL>    <BIBTEXT> Orea, L. 2002. "A Generalised Parametric Malmquist Productivity Index." <i>Journal of Productivity Analysis</i> 18, no. 1: 5-22.</BIBTEXT>	</REF>	<REF>	   <BIBL>27</BIBL> <BIBTEXT> Panzar, J., and R. Willig. 1977. "Economies of Scale in Multi-Output Production." <i>Quarterly Journal of Economics</i> 91, no. 3: 48l-493.</BIBTEXT>     </REF>      <REF>	 <BIBL>28</BIBL>   <BIBTEXT> Pitt, M. M., and L. F. Lee. 1981. "Measurement and Sources of Technical Inefficiency in the Indonesian Weaving Industry." <i>Journal of Development Economics</i> 9, no. 1: 43-64.</BIBTEXT>      </REF>    <REF>	    <BIBL>29</BIBL>	  <BIBTEXT> Schmidt, P., and R. C. Sickles. 1984. "Production Frontiers and Panel Data." <i>Journal of Business and Economic Statistics</i> 2, no. 4: 367-374.</BIBTEXT>	  </REF>      <REF>	<BIBL>30</BIBL>	<BIBTEXT> Shen, Z.; H. Liao; and T. Weyman-Jones. 2009. "Cost Efficiency Analysis in Banking Industries of Ten Asian Countries and Regions." <i>Journal of Chinese Economic and Business Studies</i> 7, no. 2: 199-218.</BIBTEXT>	 </REF>      <REF>	<BIBL>31</BIBL>   <BIBTEXT> Sickles, R. C. 2005. "Panel Estimators and the Identification of Firm-Specific Efficiency Levels in Parametric, Semi-Parametric and Nonparametric Settings." <i>Journal of Econometrics</i> 126, no. 2: 305-334.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S5:p:76-90




Template-Type: ReDIF-Article 1.0
Author-Name: G. Gulsun Akin
Author-X-Name-First: G. Gulsun
Author-X-Name-Last: Akin
Author-Name: Ahmet Faruk Aysan
Author-X-Name-First: Ahmet Faruk
Author-X-Name-Last: Aysan
Author-Name: Serap Ozcelik
Author-X-Name-First: Serap
Author-X-Name-Last: Ozcelik
Author-Name: Levent Yildiran
Author-X-Name-First: Levent
Author-X-Name-Last: Yildiran
Title: Credit Card Satisfaction and Financial Literacy: Evidence from an Emerging Market Economy
Abstract:
 Default problems and complaints about credit cards do not seem to diminish with declining credit card rates. Using a nationwide credit card user survey, we try to identify the determinants of customer satisfaction in the Turkish credit card market. Controlling for customer and card characteristics, we find that financial literacy is a major determinant of satisfaction. When people know more about financial matters and use their knowledge in their financial activities, they make more efficient decisions and have fewer financial problems, which in turn leads to higher satisfaction. We also find that people who tend to use their credit cards for unnecessary shopping and who have a history of credit card delinquency are less satisfied.
Journal: Emerging Markets Finance and Trade
Pages: 103-115
Issue: S5
Volume: 48
Year: 2012
Month: 11
Keywords: credit cards, delinquency, financial literacy, regulations
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E220162066443156
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akin, G. G.; A. F. Aysan; and L. Yildiran. 2009. "A Nationwide Survey on Credit Card Usage." Working Paper, Bogaziçi University, Istanbul.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Akin, G. G.; A. F. Aysan; G. I. Kara; and L. Yildiran. 2010. "The Failure of Price Competition in the Turkish Credit Card Market." <i>Emerging Markets Finance & Trade</i> 46, supp. 1: 23-35.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Akin, G. G.; A. F. Aysan; G. I. Kara; and L. Yildiran. 2011. "Non-Price Competition in the Turkish Credit Card Market." <i>Contemporary Economic Policy</i> 29, no. 4: 593-604.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Ausubel, L. M. 1991. "The Failure of Competition in the Credit Card Market." <i>American Economic Review</i> 81, no. 1: 50-81.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Calem, P. S., and L. J. Mester. 1995. "Consumer Behavior and the Stickiness of Credit-Card Interest Rates." <i>American Economic Review</i> 85, no. 5: 1327-1336.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Greene, W. H. 2003. <i>Econometric Analysis</i>, 5th ed. Upper Saddle River, NJ: Prentice Hall.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Interbank Card Center (ICC). 2008. "Kart monitör" [Card Monitor]. Istanbul (available at <a target="_blank" href='http://www.bkm.com.tr/yayinlar.aspx'>www.bkm.com.tr/yayinlar.aspx</a></BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Interbank Card Center (ICC). 2011. "Kart monitör" [Card Monitor]. Istanbul (available at <a target="_blank" href='http://www.bkm.com.tr/yayinlar.aspx'>www.bkm.com.tr/yayinlar.aspx</a></BIBTEXT>	</REF>	 <REF>	  <BIBL>9</BIBL>	<BIBTEXT> J. D. Power and Associates. Various issues. <i>Credit Card Satisfaction Study.</i> New York: McGraw-Hill.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Lusardi, M., and O. S. Mitchell. 2007. "Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education." <i>Business Economics</i> 4, no. 21: 35-44.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Lusardi, M., and O. S. Mitchell. 2008. "Planning and Financial Literacy: How Do Woman Fare?" <i>American Economic Review</i> 98, no. 2: 413-417.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Lusardi, M., and P. Tufano. 2009. "Debt Literacy, Financial Experiences, and Overindebtedness." Working Paper Series no. 14808, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Makela C. J.; T. Punjavat; and G. I. Olson. 1993. "Consumers' Credit Cards and International Students." <i>Journal of Consumer Studies and Home Economics</i> 17, no. 2: 173-186.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Mittal, V.; J. M. Katrichis; and P. Kumar. 2001. "Attribute Performance and Customer Satisfaction over Time." <i>Journal of Services Marketing</i> 15, no. 5: 343-356.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Moore, D. 2003. "Survey of Financial Literacy in Washington State: Knowledge, Behavior, Attitudes, and Experiences." Technical Report 03-39, Social and Economic Sciences Center, Washington State University, Pullman, WA.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Organization of Economic Cooperation and Development (OECD), Department for International Development (DFID), World Bank, and Consultative Group to Assist the Poorest (CGAP). 2009. <i>The Case for Financial Literacy in Developing Countries: Promoting Access to Finance by Empowering Consumers.</i> Washington, DC: International Bank for Reconstruction and Development/World Bank.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S5:p:103-115




Template-Type: ReDIF-Article 1.0
Author-Name: Sadik Ünay
Author-X-Name-First: Sadik
Author-X-Name-Last: Ünay
Title: Domestic Transformation and <i>Raison du Monde:</i> Turkey's Nascent Competition State
Abstract:
 The complex issue of state transformation in the face of global economic integration has constituted the locus of the interdisciplinary globalization literature, attracting a myriad of contributions from the analysts rooted in various <i>weltanschauungs</i> and academic specializations. This study presents a theoretically informed comparative political economy analysis focusing on various manifestations of the competition state with special reference to Turkey. To this end, an overview of the competition state literature is presented in order to convey the main dynamics of political globalization under pressures for increased economic integration. Analytically, four crucial policy shifts propounded by the competition state theorists are taken on board. These include the transition from inflationary expansionism to neoliberal monetarism; the shift from macroeconomic to microeconomic governance; the shift from extensive interventionism to strategic targeting; and the shift from maximization of social welfare to promotion of innovation, profitability, and entrepreneurship in public and private sectors. An external dimension is added to these shifts in the form of the transition from a geopolitically determined national security mentality to the dominance of economic diplomacy and the quest for increased competitiveness. Following a vigilant analysis of Turkey's first and second generation neoliberal transformation experiments in light of these five profound policy shifts, the author concludes that the Turkish state could at best be described as a "nascent competition state" with varying levels of advancement in each of the studied dimensions.
Journal: Emerging Markets Finance and Trade
Pages: 7-18
Issue: S5
Volume: 48
Year: 2012
Month: 11
Keywords: competition state, neoliberalism, structural transformation, Turkey's political economy
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T6005R5635337U0R
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akyüz, Y., and K. Boratav. 2002. "The Making of the Turkish Financial Crisis." Paper presented at the Conference on "Financialization of the Global Economy." University of Massachusetts-Amherst, December 7-9.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Alper, E., and Z. Önis. 2003. "Financial Globalization, the Democratic Deficit and Recurrent Crises in Emerging Markets: The Turkish Experience in the Aftermath of Capital Account Liberalization." <i>Emerging Markets Finance & Trade</i> 39, no. 3 (May-June): 5-26.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Aricanli, T., and D. Rodrik. 1990. <i>The Political Economy of Turkey: Debt, Adjustment and Sustainability.</i> London: Macmillan.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Aydin, M. 2003. "Twenty Years Before, Twenty Years After: Turkish Foreign Policy at the Threshold of the 21st Century." 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S5:p:7-18




Template-Type: ReDIF-Article 1.0
Author-Name: Ismail H. Genc
Author-X-Name-First: Ismail H.
Author-X-Name-Last: Genc
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Title: Effectiveness of Inflation Targeting in Turkey
Abstract:
 Inflation rate targeting (IT) has recently become a popular monetary policy tool to fight inflation, in advanced as well as emerging market economies, by curtailing inflationary expectations. The evidence of IT's role in anchoring expectations is mixed. In this paper, the authors quantitatively examine IT's effectiveness in reducing Turkish inflation by comparing forecasted inflation to actual inflation. Furthermore, the possibility of a structural change following IT is examined. The authors show that observed levels of inflation would not have been any different from the forecasted ones if IT had not been adopted. They also fail to find a structural break in inflation at the time of the adoption of IT and conjecture that this might be due to the public's earlier belief that the central bank's policy would not be inflationary.
Journal: Emerging Markets Finance and Trade
Pages: 35-47
Issue: S5
Volume: 48
Year: 2012
Month: 11
Keywords: ARMA, emerging markets, inflation stabilization, inflation targeting, structural break
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U7T6028312236376
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S5:p:35-47




Template-Type: ReDIF-Article 1.0
Author-Name: Ozan Hatipoglu
Author-X-Name-First: Ozan
Author-X-Name-Last: Hatipoglu
Author-Name: Onur Uyar
Author-X-Name-First: Onur
Author-X-Name-Last: Uyar
Title: Do Bubbles Spill Over? Estimating Financial Bubbles in Emerging Markets
Abstract:
 The close correlation among the stock price indices of a relatively large number of developed and emerging markets indicates that bubbles might spill over from one country to another. To test for such spillover effects, we estimate the bubble component of price changes using a nonlinear, structural, state-space model with time-variable parameters. We apply directionality tests to bubbles formed in the United States and Turkey. We find that bubbles originating in the United States lead to bubbles in Turkey. We provide empirical evidence on bubbles formed during the major financial crises of the past two decades in Turkey and the past century in the United States. Despite the improvement in fundamentals and overall economic performance, we find the Turkish asset market is still subject to volatile financial bubbles that might stem from abroad.
Journal: Emerging Markets Finance and Trade
Pages: 64-75
Issue: S5
Volume: 48
Year: 2012
Month: 11
Keywords: emerging markets, financial bubbles, sigma-point Kalman filter
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=VXT457U7K9565610
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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"On Testing for Self-Fulfilling Speculative Price Bubbles." <i>International Economic Review</i>, 27, no. 4: 545-552.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Hamilton, J. D., and C. H. Whiteman. 1985. "The Observable Implications of Self-Fulfilling Prophecies." <i>Journal of Monetary Economics</i> 16, no. 3: 353-373.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Julier, S., and J. Uhlmann. 2004. "Unscented Kalman Filtering and Nonlinear Estimation." <i>Proceedings of the IEEE</i> 92, no. 3: 401-422.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Koustas, Z., and A. Serletis. 2005. "Rational Bubbles or Persistent Deviations from Market Fundamentals?" <i>Journal of Banking and Finance</i> 29, no. 10: 2523-2539.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Lau, E. L.; G. K. R. Tan; and S. Rahman. 2005. "Assessing Pre-Crisis Fundamentals in Selected Asian Stock Markets." <i>Singapore Economic Review</i> 50, no. 2: 175-196.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> LeRoy, S. F., and R. D. Porter. 1981. "The Present-Value Relation: Tests Based on Implied Variance Bounds." <i>Econometrica</i> 49, no. 3: 555-577.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> McQueen, G. R., and S. Thorley. 1994. "Bubbles, Stock Returns, and Duration Dependence." <i>Journal of Financial and Quantitative Analysis</i> 29, no. 3: 379-401.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Nasseh, A., and J. Strauss. 2004. "Stock Prices and the Dividend Discount Model: Did Their Relationship Break Down in the 1990s?" <i>Quarterly Review of Economics and Finance</i> 44, no. 2: 191-207.</BIBTEXT>      </REF>	  <REF>     <BIBL>30</BIBL>	<BIBTEXT> Rappoport, P., and E. N. White. 1993. "Was There a Bubble in the 1929 Stock Market?" <i>Journal of Economic History</i> 53, no. 3: 549-574.</BIBTEXT>   </REF>     <REF>	 <BIBL>31</BIBL>  <BIBTEXT> Santos, M. S., and M. Woodford. 1997. "Rational Asset Pricing Bubbles." <i>Econometrica</i> 65, no. 1: 19-58.</BIBTEXT>	</REF>	    <REF>	<BIBL>32</BIBL>       <BIBTEXT> Scheicher, M. 2001. "The Co-Movements of Stock Markets in Hungary, Poland and the Czech Republic." <i>International Journal of Finance and Economics</i> 6, no. 1: 27-39.</BIBTEXT>	 </REF>      <REF>	<BIBL>33</BIBL>	 <BIBTEXT> Shiller, R. J. 1981. "Do Stock Prices Move Too Much to Be Justified by Subsequent Changes in Dividends?" <i>American Economic Review</i> 71, no. 3: 421-436.</BIBTEXT>    </REF>	<REF>	 <BIBL>34</BIBL>	<BIBTEXT> Shiller, R. J. 1989. "Comovements in Stock Prices and Comovements in Dividends." <i>Journal of Finance</i> 44, no. 3: 719-729.</BIBTEXT>   </REF>     <REF>	<BIBL>35</BIBL>  <BIBTEXT> Shiller, R. J. 2000. <i>Irrational Exuberance.</i> Princeton: Princeton University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>  <BIBTEXT> Timmermann, A. 1995. "Co-Integration Tests of Present Value Models with a Time Varying Discount Factor." <i>Journal of Applied Econometrics</i> 10, no. 1: 17-31.</BIBTEXT>	</REF>	    <REF>	<BIBL>37</BIBL>   <BIBTEXT> Van Norden, S., and H. Schaller, 2002. "Fads or Bubbles?" <i>Empirical Economics</i> 27, no. 2: 335-362.</BIBTEXT>      </REF>     <REF>	<BIBL>38</BIBL>	  <BIBTEXT> Van Norden, S., and R. Vigfusson, 1998. "Avoiding the Pitfalls: Can Regime-Switching Tests Reliably Detect Bubbles?" <i>Studies in Nonlinear Dynamics and Econometrics</i> 3, no. 1: 1-22.</BIBTEXT>      </REF>	 <REF>	    <BIBL>39</BIBL>	<BIBTEXT> West, K. D. 1987. "A Specification Test for Speculative Bubbles." <i>Quarterly Journal of Economics</i> 102, no. 3: 553-580.</BIBTEXT>	</REF>   <REF>	    <BIBL>40</BIBL>	<BIBTEXT> Wu, Y. 1995. "Are There Rational Bubbles in Foreign Exchange Markets? Evidence from an Alternative Test." <i>Journal of International Money and Finance</i> 14, no. 1: 27-46.</BIBTEXT>	 </REF>    <REF>	    <BIBL>41</BIBL>	  <BIBTEXT> Wu, Y. 1997. "Rational Bubbles in the Stock Market: Accounting for the U. S. Stock-Price Volatility." <i>Economic Inquiry</i> 35, no. 2: 309-319.</BIBTEXT>      </REF>
Handle: RePEc:mes:emfitr:v:48:y:2012:i:S5:p:64-75




Template-Type: ReDIF-Article 1.0
Author-Name: E. Nur Ozkan Gunay
Author-X-Name-First: E. Nur Ozkan
Author-X-Name-Last: Gunay
Title: Risk Incorporation and Efficiency in Emerging Market Banks During the Global Crisis: Evidence from Turkey, 2002-2009
Abstract:
 This study focuses on the efficiency measures of deposit banks operating in Turkey following the twin crises of 2000 and 2001 and applies a new approach in bank efficiency analysis by incorporating credit risk as an undesirable by-product in a multi-output model. Data envelopment analysis is used to assess the long-term performance trend in the context of balance sheet and revenue approaches. Empirical results indicate that the efficiency of deposit banks improve significantly in the restructuring period. The global crisis does not seem to have had a significant impact on managerial efficiency in the deposit banks operating in Turkey. The most striking finding is that the efficiency scores are much lower when nonperforming loans are incorporated as an undesirable output in the model. This shows that all efficiency studies in the literature that ignore undesirable output overestimate efficiency scores.
Journal: Emerging Markets Finance and Trade
Pages: 91-102
Issue: S5
Volume: 48
Year: 2012
Month: 11
Keywords: bank efficiency, DEA, emerging country, nonperforming loans, Turkey
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W724777662862459
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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"Excess Credit Risk and Bank's Default Risk: An Application of Default Prediction's Models to Banks from Emerging Market Economies." Working Paper, LaRGE Research Center, University of Strasbourg, EM Strasbourg Business School, April.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Halkos, G. E., and D. S. Salamouris. 2004. "Efficiency Measurement of the Greek Commercial Banks with the Use of Financial Ratios: A Data Envelopment Analysis Approach." <i>Management Accounting Research</i> 15, no. 2: 201-224.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Hu, J. L., and S. C. Wang. 2009. "Total-Factor Energy Efficiency of Regions in China." <i>Energy Policy</i> 34, no. 17: 3206-3217.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Hu, J. L.; W. K. Chu; X. Hu; and C. Y. Lee. 2009. 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"Foreign Bank Entry and Bank Performance in Poland: Testing the Global Advantage Hypothesis." <i>Journal of Money, Investment and Banking</i> 10: 56-77.</BIBTEXT>    </REF>	<REF>	 <BIBL>34</BIBL>	<BIBTEXT> Mukherjee, K.; S. Ray; and S. Miller. 2001. "Productivity Growth in Large U. S. Commercial Banks: The Initial Post-Deregulation Experience." <i>Journal of Banking and Finance</i> 25, no. 5: 913-939.</BIBTEXT>   </REF>     <REF>	<BIBL>35</BIBL>  <BIBTEXT> Park, K. H., and W. L. Weber. 2006. "A Note on Efficiency and Productivity Growth in the Korean Banking Industry, 1992-2002." <i>Journal of Banking and Finance</i> 30, no. 8: 2371-2386.</BIBTEXT>	 </REF>      <REF>	<BIBL>36</BIBL>  <BIBTEXT> Scheel, H. 2001. "Undesirable Outputs in Efficiency Valuations." <i>European Journal of Operational Research</i> 132, no. 2: 400-410.</BIBTEXT>	</REF>	    <REF>	<BIBL>37</BIBL>   <BIBTEXT> Seiford, L., and J. Zhu. 2002. 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Handle: RePEc:mes:emfitr:v:48:y:2012:i:S5:p:91-102




Template-Type: ReDIF-Article 1.0
Author-Name: Orhan Akisik
Author-X-Name-First: Orhan
Author-X-Name-Last: Akisik
Title: Accounting Regulation, Financial Development, and Economic Growth
Abstract:
 This paper examines the relationship between accounting regulation, financial development, and economic growth in fifty-one developed and emerging market economies over the period 1997-2009. Accounting regulation has been the center of long-lasting debates in the accounting profession. The debates came to the forefront after several spectacular financial reporting frauds and scandals in the early 2000s damaged public confidence in capital markets. Using generalized method of moments estimation techniques, this study provides evidence that accounting regulation has a strong effect on economic growth even after controlling for a number of macroeconomic and socioeconomic variables.
Journal: Emerging Markets Finance and Trade
Pages: 33-67
Issue: 1
Volume: 49
Year: 2013
Month: 1
Keywords: accounting regulation, accounting standards, economic growth, financial development
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=EQ81056727416771
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Corley. 1980. <i>The Accounting Professional: Ethics, Responsibility and Liability.</i> Upper Saddle River, NJ: Prentice Hall.</BIBTEXT>	</REF>	    <REF>	<BIBL>110</BIBL>       <BIBTEXT> Winston, C. 2006. <i>Government Failure Versus Market Failure: Microeconomics Policy Research and Government Performance.</i> Washington, DC: AEI-Brookings Joint Center for Regulatory Studies.</BIBTEXT>	 </REF>      <REF>	<BIBL>111</BIBL>	 <BIBTEXT> World Bank. 2010a. <i>World Development Indicators.</i> Washington, DC.</BIBTEXT>    </REF>	<REF>	 <BIBL>112</BIBL>	<BIBTEXT> World Bank. 2010b. <i>Worldwide Governance Indicators.</i> Washington, DC.</BIBTEXT>   </REF>     <REF>	<BIBL>113</BIBL>  <BIBTEXT> Zhang, W.-G., and D.-M. Lu. 2007. "Convergence of Chinese Accounting Standards with International Standards: Process, Achievements and Prospects." In <i>Globalisation of Accounting Standards</i>, ed. J. M. Godfrey and K. Chalmers, pp. 193-217. Cheltenham, UK: Edward Elgar.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:49:y:2013:i:1:p:33-67




Template-Type: ReDIF-Article 1.0
Author-Name: Seungyeon Won
Author-X-Name-First: Seungyeon
Author-X-Name-Last: Won
Author-Name: Young Sup Yun
Author-X-Name-First: Young Sup
Author-X-Name-Last: Yun
Author-Name: Byoung Joon Kim
Author-X-Name-First: Byoung Joon
Author-X-Name-Last: Kim
Title: Emerging Bond Market Volatility and Country Spreads
Abstract:
 Using JPMorgan's emerging market bond index, this paper analyzes how increases in country credit spreads can persist in emerging bond markets. The results of T-GARCH regressions show that, during financial crisis periods, emerging countries' credit spreads may increase persistently as a result of interaction between changes in spreads and volatilities, making emerging bond markets more turbulent. The results suggest that emerging countries should endeavor to develop a stabilization mechanism by enhancing information efficiency in bond markets. In particular, because Asian countries have experienced persistent, overreactive volatility, this paper implies that Asian countries should work together more closely during financial crisis periods.
Journal: Emerging Markets Finance and Trade
Pages: 82-100
Issue: 1
Volume: 49
Year: 2013
Month: 1
Keywords: country spread, sovereign bonds, T-GARCH model, volatility
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=F082762950262212
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Al-Deehani, T., and I. A. Moosa. 2006. "Volatility Spillover in Regional Emerging Stock Markets: A Structural Time-Series Approach." <i>Emerging Markets Finance & Trade</i> 42, no. 4 (July-August): 78-89.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Baek, I. M.; A. Bandopadhyaya; and D. Chan. 2005. "Determinants of Market Assessed Sovereign Risk: Economic Fundamentals or Market Risk Appetite?" <i>Journal of International Money and Finance</i> 24, no. 4: 533-548.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Balakrishnan, R.; S. Danninger; S. Elekdag; and I. Tytell. 2011. "The Transmission of Financial Stress from Advanced to Emerging Economies." <i>Emerging Markets Finance & Trade</i> 47, supp. 2: 40-68.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bollerslev, T., and J. M. Wooldridge. 1992. "Quasi-Maximum Likelihood Estimation and Inference in Dynamic Models with Time-Varying Covariances." <i>Econometric Reviews</i> 11, no. 2: 143-172.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bollerslev, T., and H. Zhou. 2006. "Volatility Puzzle: a Simple Framework for Gauging Return-Volatility Regressions." <i>Journal of Econometrics</i> 131, nos. 1-2: 123-150.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bunda, I.; A. Hamann; and S. Lall. 2009. "Correlations in Emerging Market Bonds: The Role of Local and Global Factors." <i>Emerging Markets Review</i> 10, no. 2: 67-96.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Campbell, J. Y., and H. Hentschel. 1992. "No News Is Good News: An Asymmetric Model of Changing Volatility in Stock Returns." <i>Journal of Financial Economics</i> 31, no. 3: 281-318.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chancharoenchai, K., and S. Dibooglu. 2006. "Volatility Spillovers and Contagion During the Asian Crisis: Evidence from Six Southeast Asian Stock Markets." <i>Emerging Markets Finance & Trade</i>, vol. 42, no. 2 (March-April): 4-17.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chinn, M. D., and H. Ito. 2006. "What Matters for Financial Development? Capital Control, Institutions, and Interactions." <i>Journal of Development Economics</i> 81, no. 1: 163-192.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Ciarlone, A.; P. Piselli; and G. Trebeschi. 2009. "Emerging Markets Spreads and Global Financial Conditions." <i>Journal of International Financial Markets, Institutions and Money</i> 19, no. 2: 222-239.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> De Long, J. B.; A. Shleifer; L. H. Summers; and R. Waldmann. 1990a. "Noise Trader Risk in Financial Market." <i>Journal of Political Economy</i> 98, no. 4: 703-738.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> De Long, J. B.; A. Shleifer; L. H. Summers; and R. Waldmann. 1990b. "Positive Feedback Investment Strategies and Destabilizing Rational Speculation." <i>Journal of Finance</i> 45, no. 2: 379-395.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Dennis, P.; S. Mayhew; and C. Stivers. 2006. "Stock Returns, Implied Volatility Innovations, and the Asymmetric Volatility Phenomenon." <i>Journal of Financial and Quantitative Analysis</i> 41, no. 2: 381-406.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Diaz-Weigel, D., and G. Gemmill. 2006. "What Drives Credit Risk in Emerging Markets? The Role of Country Fundamentals and Market Co-Movement." <i>Journal of International Money and Finance</i> 25, no. 3: 476-502.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Dooley, M., and M. Hutchison. 2009. "Transmission of U. S. Subprime Crisis to Emerging Markets: Evidence on the Decoupling-Recoupling Hypothesis." <i>Journal of International Money and Finance</i> 28, no. 8: 1331-1349.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Dungey, M.; R. Fry; B. Gonzalez-Hermosillo; and V. Martin. 2006. "Contagion in International Bond Markets During the Russian and the LTCM Crises." <i>Journal of Financial Stability</i> 2, no. 1: 1-27.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Eichengreen, B., and A. Mody. 1998. "What Explains Changing Spreads on Emerging-Market Debt: Fundamentals or Market Sentiment?" Working Paper no. 6408, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Eichengreen, B.; M. Ashoka; M. Nedeljkovic; and L. Sarno. 2009. "How the Subprime Crisis Went Global: Evidence from Bank Credit Default Swap Spreads." Working Paper no. 14904, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Gabrisch, H., and L. T. Orlowski. 2010. "Interest Rate Convergence in Euro-Candidate Countries: Volatility Dynamics of Sovereign Bond Yields." <i>Emerging Markets Finance & Trade</i> 46, no. 6 (November-December): 69-85.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Glosten L. R.; R. Jagannathan; and D. Runkle. 1993. "On the Relation Between the Expected Value and the Volatility of the Nominal Excess Return on Stocks." <i>Journal of Finance</i> 48, no. 5: 1779-1801.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Hibbert, A. M.; R. Daigler; and B. Dupoyet. 2008. "A Behavioral Explanation for the Negative Asymmetric Return-Volatility Relation." <i>Journal of Banking and Finance</i> 32, no. 10: 2254-2266.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Jaque, F. 2004. "Emerging Market Economies: The Aftermath of Volatility Contagion in a Selection of Three Financial Crises." Working Paper no. 305, Central Bank of Chile, Santiago.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Kamin, S. B., and K. Von Kleist. 1999. "The Evolution and Determinants of Emerging Market Credit Spreads in the 1990s." Working Paper no. 68, Bank for International Settlements, Basel.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Longstaff, F. A.; J. Pan; L. Pedersen; and K. Singleton. 2007. "How Sovereign Is Sovereign Credit Risk?" Working Paper no. 13658, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> McGuire, P., and M. Schrijvers. 2003. "Common Factors in Emerging Market Spreads." <i>BIS Quarterly Review</i> (December): 65-78.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Poterba J. M., and L. Summers. 1986. "The Persistence of Volatility and Stock Market Fluctuations." <i>American Economic Review</i> 76, no. 5: 1142-1151.</BIBTEXT>      </REF>	<REF>    <BIBL>27</BIBL>	<BIBTEXT> Remolona, E.; M. Scatign; and E. Wu. 2008. "The Dynamic Pricing of Sovereign Risk in Emerging Markets: Fundamentals and Risk Aversion." <i>Journal of Fixed Income</i> 17, no. 14: 57-71.</BIBTEXT> </REF>     <REF>   <BIBL>28</BIBL>	<BIBTEXT> Schwert, G. W. 1989. "Why Does Stock Market Volatility Change over Time?" <i>Journal of Finance</i> 44, no. 5: 1115-1153.</BIBTEXT>	</REF>	 <REF>	   <BIBL>29</BIBL>	<BIBTEXT> Tokat, E., and H. A. Tokat. 2010. "Shock and Volatility Transmission in the Future and Spot Markets: Evidence from Turkish Markets." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 92-104.</BIBTEXT>      </REF>	  
Handle: RePEc:mes:emfitr:v:49:y:2013:i:1:p:82-100




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 1
Volume: 49
Year: 2013
Month: 1
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K70331LP113M6564
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:1:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Ramazan Sari
Author-X-Name-First: Ramazan
Author-X-Name-Last: Sari
Author-Name: Mehmet Uzunkaya
Author-X-Name-First: Mehmet
Author-X-Name-Last: Uzunkaya
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: The Relationship Between Disaggregated Country Risk Ratings and Stock Market Movements: An ARDL Approach
Abstract:
 We examine the relationships between disaggregated country risk ratings and stock market movements in Turkey, using the autoregressive distributed lag approach. The long- and short-run relationships between stock market movements and political risk, financial risk, and economic risk components of country risk ratings are investigated. The presence of a long-run relationship between Turkey's risk ratings and stock market movements is confirmed. In the long run, Turkey's three economic, financial, and political risk rating components are the forcing variables of stock market movements. However, in the short run only the reduced political and financial risk rating components have positive and significant impact on market movements. Policy implications are also discussed.
Journal: Emerging Markets Finance and Trade
Pages: 4-16
Issue: 1
Volume: 49
Year: 2013
Month: 1
Keywords: ARDL, economic risk, financial risk, political risk, risk ratings, stock market
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L1084KM417522043
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Brooks, R.; R. B. Faff; D. Hillier; and J. Hillier. 2004. "The National Market Impact of Sovereign Rating Changes." <i>Journal of Banking & Finance</i> 28, no. 1: 233-250.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Cantor, R. M., and F. Packer. 1996. "Determinants and Impact of Sovereign Credit Ratings." <i>Economic Policy Review</i> 2, no. 2: 37-53.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Chen, N.; F. R. Roll; and S. A. Ross 1986. "Economic Forces and the Stock Market." <i>Journal of Business</i> 59, no. 3: 383-403.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Clare, G., and I. N. Gang. 2010. "Exchange Rate and Political Risks, Again." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 46-58.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Diamonte, R. L.; J. M. Liew; and S. L. Ross. 1996. "Political Risk in Emerging and Developing Countries." <i>Financial Analyst Journal</i> 52, no. 3: 71-76.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Erb, C. B.; C. R. Harvey; and T.E Viskanta. 1995. "Country Risk and Global Equity Selection." <i>Journal of Portfolio Management</i> 22 (Winter): 74-83.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Erb, C. B.; C. R. Harvey; and T.E Viskanta. 1996a. "Expected Returns and Volatility in 135 Countries." <i>Journal of Portfolio Management</i> 22 (Spring): 46-58.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Erb, C. B.; C. R. Harvey; and T.E Viskanta. 1996b. "The Influence of Political, Economic and Financial Risk on Fixed Income Returns." <i>Journal of Fixed Income</i> 6, no. 1: 7-30.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Ferreira, M., and P. Gama. 2007. "Does Sovereign Debt Ratings News Spill over to International Stock Markets?" <i>Journal of Banking and Finance</i> 31, no. 10: 3162-3182.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Gande, A., and D. Parsley. 2005. "News Spillovers in the Sovereign Debt Market." <i>Journal of Financial Economics</i> 75, no. 3: 691-734.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Hail, L., and C. Leuz. 2006. "International Differences in the Cost of Equity Capital: Do Legal Institutions and Securities Regulation Matter?" <i>Journal of Accounting Research</i> 44, no. 3: 485-531.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Hammoudeh, S.; R. Sari; and M. Uzunkaya. 2013. "The Dynamics of BRICS's Country Risk Ratings and Domestic Stock Markets, U. S. Stock Market and Oil Price." <i>Mathematics and Computers in Simulation</i> (forthcoming).</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Hoti, S. 2003. "Rating Risk Rating Systems." Working Paper, Department of Economics, University of Western Australia, Perth (available at <a target="_blank" href='http://www.mssanz.org.au/MODSIM03/Volume_03/B09/01_Hoti_Rating.pdf'>www.mssanz.org.au/MODSIM03/Volume_03/B09/01_Hoti_Rating.pdf</a></BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Jiménez, A. 2011. "Political Risk as a Determinant of Southern European FDI in Neighboring Developing Countries." <i>Emerging Markets Finance & Trade</i> 47, no. 4 (July-August): 59-74.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Kaminsky, G., and S. Schmukler. 2001. "Emerging Markets Instability: Do Sovereign Ratings Affect Country Risk and Stock Returns?" Policy Research Working Paper Series no. 2678, World Bank, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Li, H.; B. Jeon; S. Cho; and C. Chiang. 2008. "The Impact of Sovereign Rating Changes and Financial Contagion on Stock Market Returns: Evidence from Five Asian Countries." <i>Global Finance Journal</i> 19, no. 1: 46-55.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Mironov, M., and M. Opp. 2004. "Political Influence and Economic Development: Empirical Evidence from Emerging Countries." IE Business School, Madrid (available at <a target="_blank" href='http://www.mironov.fm/research/PoliticalInfluence.pdf'>www.mironov.fm/research/PoliticalInfluence.pdf</a></BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> O'Neill, J. 2001. "Building Better Global Economic BRICs." Global Economics Paper no. 66, Goldman Sachs, New York, November 30 (available at <a target="_blank" href='http://www.goldmansachs.com/our-thinking/topics/brics/brics-reports-pdfs/build-better-brics.pdf'>www.goldmansachs.com/our-thinking/topics/brics/brics-reports-pdfs/build-better-brics.pdf</a></BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Perotti, E., and P. van Oijen. 2001. "Privatization, Political Risk and Stock Market Development in Emerging Economies." <i>Journal of International Money and Finance</i> 20, no. 1: 43-69.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Pesaran, M. H., and B. Pesaran. 2009. <i>Time Series Econometrics Using Microfit 5.0.</i> New York: Oxford University Press.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Pesaran, M. H.; Y. Shin; and R. J. Smith. 2001. "Bounds Testing Approaches to the Analysis of Level Relationships." <i>Journal of Applied Econometrics 16</i>, no. 3: 289-326.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Reisen, H., and J. Maltzan. 1999. "Boom and Bust and Sovereign Ratings." <i>International Finance</i> 2, no. 2: 273-293.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Subasi, F.Ö. 2008. "The Effect of Sovereign Rating Changes on Stock Returns and Exchange Rates." <i>International Research Journal of Finance and Economics</i> no. 20: 46-54.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Sy, A. N. R. 2002. "Emerging Market Bond Spreads and Sovereign Credit Ratings: Reconciling Market Views with Economic Fundamentals." <i>Emerging Markets Review</i> 3, no. 4: 380-408.</BIBTEXT>      </REF>	  
Handle: RePEc:mes:emfitr:v:49:y:2013:i:1:p:4-16




Template-Type: ReDIF-Article 1.0
Author-Name: Conghui Hu
Author-X-Name-First: Conghui
Author-X-Name-Last: Hu
Author-Name: Shasha Liu
Author-X-Name-First: Shasha
Author-X-Name-Last: Liu
Title: The Implications of Low <i>R</i><sup>2</sup>: Evidence from China
Abstract:
 Motivated by the recent debate on the implications of low <i>R</i><sup>2</sup> in the U.S. market, we conjecture that lower <i>R</i><sup>2</sup> is more likely to be associated with noise and low pricing efficiency because stock price tracks its fundamentals more loosely in a less efficient stock market such as China. We conclude that, first, there is no significant difference in information content among stocks with high and low <i>R</i><sup>2</sup>. Second, both accruals anomaly and price momentum are much stronger among firms with lower <i>R</i><sup>2</sup>. Moreover, the price momentum effect is much stronger among stocks with higher <i>DIS</i>, a new proxy constructed to provide a direct description of noise in stock price.
Journal: Emerging Markets Finance and Trade
Pages: 17-32
Issue: 1
Volume: 49
Year: 2013
Month: 1
Keywords: China, information efficiency, momentum, noise, stock market
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W500368N96246138
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ashbaugh-Skaife, H.; J. Gassen; and R. Lafond. 2006. "Does Stock Price Synchronicity Represent Firm-Specific Information? The International Evidence." Working paper, University of Wisconsin-Madison, Humboldt University, Berlin, and Massachusetts Institute of Technology, Cambridge.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Barber, B., and T. Odean. 2000. "Trading Is Hazardous to Your Wealth: The Commonstock Investment Performance of Individual Investors." <i>Journal of Finance</i> 55, no. 2: 773-806.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Barberis, N.; A. Shleifer; and R. Vishny. 1998. "A Model of Investor Sentiment." <i>Journal of Financial Economics</i> 49, no. 3: 307-343.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Brandt, M.; A. Brav; and J. R. Graham. 2005. "The Idiosyncratic Volatility Puzzle: Time Trend or Speculative Episodes?" Working paper, Duke University, Durham.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Canbas, S., and S. Y. Kandir. 2009. "Investor Sentiment and Stock Returns: Evidence from Turkey." <i>Emerging Markets Finance & Trade</i> 45, no. 4 (July-August): 36-52.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chan, K., and A. Hameed, A. 2006. "Stock Price Synchronicity and Analyst Coverage in Emerging Markets." <i>Journal of Financial Economics</i> 80, no. 1: 115-147.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Chang, E. C., and R. Yan Luo. 2010. "R-Square, Noise, and Stock Returns." Working paper, University of Hong Kong.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chen, K. C. W., and H. Yuan. 2004. "Earnings Management and Capital Resource Allocation: Evidence from China's Accounting-Based Regulation of Rights Issues." <i>Accounting Review</i> 79, no. 3: 645-665.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chen, X.; K. A. Kim; T. Yao; and T. 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Handle: RePEc:mes:emfitr:v:49:y:2013:i:1:p:17-32




Template-Type: ReDIF-Article 1.0
Author-Name: Feng-Li Lin
Author-X-Name-First: Feng-Li
Author-X-Name-Last: Lin
Author-Name: Hai-Ling Lin
Author-X-Name-First: Hai-Ling
Author-X-Name-Last: Lin
Title: Ultimate Controller Ownership and Firm Value in Taiwan
Abstract:
 Using a panel of 242 Taiwanese listed firms during a ten-year period (1997-2006), this study tests whether there is an optimal ratio of ownership ultimate control that maximizes firm value. This work adopts Tobin's <i>q</i> as the proxy for firm value and finds that cash flow rights less than 27.8 percent and control rights between 32.34 percent and 34.03 percent are an optimal level of ownership ultimate control to maximize firm value. This distribution of financing sources propels the nonlinear relationship uncovered in this study and sheds light on legal aspects of Taiwan's system of ownership structure.
Journal: Emerging Markets Finance and Trade
Pages: 68-81
Issue: 1
Volume: 49
Year: 2013
Month: 1
Keywords: cash flow rights, control rights, entrenchment, ownership, panel threshold effects, Tobin's <i>q</i>
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X7M5864L2R350R73
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Anderson, R. C., and D. M. Reeb. 2003. "Founding-Family Ownership and Firm Performance: Evidence from the S&P500." <i>Journal of Finance</i> 58, no. 3: 1301-1328.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bektas, E., and T. Kaymak. 2009. "Governance Mechanisms and Ownership in an Emerging Market: The Case of Turkish Banks." <i>Emerging Markets Finance & Trade</i> 45, no. 6 (November-December): 20-32.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Chan, K.; S. Y. Hu; and Y. Z. Wang. 2003. "When Will the Controlling Shareholder Expropriate Investors?" <i>Academia Economic Papers</i> 31, no. 3: 301-331.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Chen, Z.; Y. L. Cheung; A. Stouraitis; and A. W. S. Wong. 2005. "Ownership Concentration, Firm Performance, and Dividend Policy in Hong Kong." <i>Pacific-Basin Finance Journal</i> 13, no. 4: 431-449.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Claessens, S.; S. Djankov; J. Fan; and L. H. P. Lang. 2000. "Expropriation of Minority Shareholders in East Asia." Working Paper Series no. 2000-4, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University, Japan.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Claessens, S.; S. Djankov; J. Fan; and L. H. P. Lang. 2002. "Disentangling the Incentive and Entrenchment Effects of Large Shareholders." <i>Journal of Finance</i> 57, no. 6: 2741-2771.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Cronqvist, H., and M. Nilsson. 2003. "Agency Costs of Controlling Minority Shareholders." <i>Journal of Financial and Quantitative Analysis</i> 34, no. 4: 695-719.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Dushnitsky, G., and M. J. Lenox. 2006. "When Does Corporate Venture Capital Investment Create Firm Value?" <i>Journal of Business Venturing</i> 21, no. 6: 753-772.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Filatotchev, I.; Y. C. Lien; and J. Piesse. 2005. "Corporate Governance and Performance in Publicly Listed, Family-Controlled Firms: Evidence from Taiwan." <i>Asia Pacific Journal of Management</i> 22, no. 3: 257-283.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Filatotchev, I.; N. Isachenkova; and T. Mickiewicz. 2007. "Corporate Governance, Managers' Independence, Exporting, and Performance of Firms in Transition Economies." <i>Emerging Markets Finance & Trade</i> 43, no. 5 (September-October): 62-77.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Hansen, B. E. 1999. "Threshold Effects in Non-Dynamic Panels: Estimation, Testing and Inference." <i>Journal of Econometrics</i> 93, no. 2: 345-368.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Joh, S. W. 2003. "Corporate Governance and Firm Profitability: Evidence from Korea Before the Economic Crisis." <i>Journal of Financial Economics</i> 68, no. 2: 287-322.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; and A. Shleifer. 1999. "Corporate Ownership Around the World." <i>Journal of Finance</i> 54, no. 2: 471-518.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A. Shleifer; and R. Vishny. 2002. "Investor Protection and Corporate Valuation." <i>Journal of Finance</i> 57, no. 3: 1147-1170.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Lemmon, M. L., and K. V. Lins. 2003. "Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis." <i>Journal of Finance</i> 58, no. 4: 1445-1468.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Lindenberg, E., and S. Ross. 1981. "Tobin's Q Ratio and Industrial Organization." <i>Journal of Business</i> 54, no. 1: 1-32.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> López Iturriaga, F. J., and V. L. Crisóstomo. 2010. "Do Leverage, Dividend Payout, and Ownership Concentration Influence Firms' Value Creation? An Analysis of Brazilian Firms." <i>Emerging Markets Finance & Trade</i> 46, no. 3 (May-June): 80-94.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Maury, B. 2006. "Family Ownership and Firm Performance: Empirical Evidence from Western European Corporations." <i>Journal of Corporate Finance</i> 12, no. 2: 321-341.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Maury, B., and A. Pajuste. 2005. "Multiple Large Shareholders and Firm Value." <i>Journal of Banking & Finance</i> 29, no. 7: 1813-1834.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> McConnell, J. J., and H. Sercaes. 1990. "Additional Evidence on Equity Ownership and Corporate Value." <i>Journal of Financial Economics</i> 27, no. 2: 595-612.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Minguez-Vera, A., and J. F. Martin-Ugedo. 2007. "Does Ownership Structure Affect Value? A Panel Data Analysis for the Spanish Market." <i>International Review of Financial Analysis</i> 16, no. 1: 81-98.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Selarka, E. 2005. "Ownership Concentration and Firm Value: A Study from the Indian Corporate Sector." <i>Emerging Markets Finance & Trade</i> 41, no. 6 (November-December): 83-108.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Villalonga, B., and R. Amit. 2006. "How Do Family Ownership, Control and Management Affect Firm Value?" <i>Journal of Financial Economics</i> 80, no. 2: 385-417.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Wiwattanakantang, Y. 2001. "Controlling Shareholders and Corporate Value: Evidence from Thailand." <i>Pacific-Basin Finance Journal</i> 9, no. 4: 323-362.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Yeh, Y. H., and T. Woidtke. 2005. "Commitment or Entrenchment? Controlling Shareholders and Board Composition." <i>Journal of Banking & Finance</i> 29, no. 7: 1857-1885.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Yeh, Y. H.; C. E. Ko; and Y. H. Su. 2003. "Ultimate Control and Expropriation of Minority Shareholders: New Evidence from Taiwan." <i>Academia Economic Papers</i> 31, no. 3: 263-299.</BIBTEXT>     </REF>      
Handle: RePEc:mes:emfitr:v:49:y:2013:i:1:p:68-81




Template-Type: ReDIF-Article 1.0
Author-Name: Che-Min Chen
Author-X-Name-First: Che-Min
Author-X-Name-Last: Chen
Author-Name: Han-Hsing Lee
Author-X-Name-First: Han-Hsing
Author-X-Name-Last: Lee
Title: Default Risk, Liquidity Risk, and Equity Returns: Evidence from the Taiwan Market
Abstract:
 The authors' empirical results indicate that default risk has some power to explain equity returns on the Taiwanese stock market, but it does not contain other important price information uncorrelated with the prevailing three or four risk factor models. Furthermore, compared to the U.S. market, the timing of distress returns is different. The short-term return reversal in the first month is less pronounced for the return differential between portfolios having high and low default risk, but the reversal lingers for a longer period of time. Overall, the book-to-market ratio, rather than the liquidity effect, plays a crucial role in explaining the default risk in equity returns.
Journal: Emerging Markets Finance and Trade
Pages: 101-129
Issue: 1
Volume: 49
Year: 2013
Month: 1
Keywords: book-to-market effect, default risk, liquidity, Merton model, return reversal
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y6230PP3Q863N523
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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"Just How Much Do Individual Investors Lose by Trading?" <i>Review of Financial Studies</i> 22, no. 2: 609-632.</BIBTEXT>     </REF>      <REF>	<BIBL>6</BIBL>   <BIBTEXT> Bharath, S. T., and Shumway, T. 2008. "Forecasting Default with the Merton Distance to Default Model." <i>Review of Financial Studies</i> 21, no. 3: 1339-1369.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Campbell, J. Y.; J. Hilscher; and J. Szilagyi. 2008. "In Search of Distress Risk." <i>Journal of Finance</i> 63, no. 6, 2899-2939.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Carhart, M. 1997. "On Persistence of Mutual Fund Performance." <i>Journal of Finance</i> 52, no. 1: 57-82.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chava, S., and A. Purnanandam. 2010. "Is Default Risk Negatively Related to Stock Returns?" <i>Review of Financial Studies</i> 23, no. 6: 2523-2559.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Chiao, C.; K. Hung; and C. F. Lee. 2004. "The Price Adjustment and Lead-Lag Relations Between Stock Returns: Microstructure Evidence from the Taiwan Stock Market." <i>Journal of Empirical Finance</i> 11, no. 5: 709-731.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Chiao, C.; W. Hung; and C. F. Lee. 2008. "Mispricing of Research and Development Investments in a Rapidly Emerging and Electronics-Dominated Market." <i>Emerging Markets Finance & Trade</i> 44, no. 1 (January-February): 95-116.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Da, Z., and P. Gao. 2010. "Clientele Change, Liquidity Shock, and the Return on Financially Distressed Stocks." <i>Journal of Financial and Quantitative Analysis</i> 45, no. 1: 27-48.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Dichev, I. D. 1998. "Is the Risk of Bankruptcy a Systematic Risk?" <i>Journal of Finance</i> 53, no. 1: 1131-1148.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Duffie, D.; L. Saita; and K. Wang. 2007. "Multi-Period Corporate Default Prediction with Stochastic Covariates." <i>Journal of Financial Economics</i> 83, no. 3: 635-665.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Fama, E. F., and K. R. French. 1992. "The Cross-Section of Expected Stock Returns." <i>Journal of Finance</i> 47, no. 2: 427-465.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Fama, E. F., and K. R. French. 1993. "Common Risk Factors in the Returns on Bonds and Stocks." <i>Journal of Financial Economics</i> 33, no. 1: 3-56.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Frazzini, A. 2006. "The Disposition Effect and Underreaction to News." <i>Journal of Finance</i> 61, no. 4: 2017-2046.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Garlappi, L.; T. Shu; and H. Yan. 2008. "Default Risk, Shareholder Advantage, and Stock Returns." <i>Review of Financial Studies</i> 21, no. 6: 2743-2778.</BIBTEXT>      </REF>	 <REF>	    <BIBL>19</BIBL>	<BIBTEXT> Goo, Y. J.; D. H. Chen; S. H. Chang; and C. F. Yeh. 2010. "A Study of the Disposition Effect for Individual Investors in the Taiwan Stock Market." <i>Emerging Markets Finance & Trade</i> 46, no. 1 (January-February): 108-119.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Griffin, J. M., and M. L. Lemmon. 2002. "Book-to-Market Equity, Distress Risk and Stock Returns." <i>Journal of Finance</i> 57, no. 5: 2317-2336.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Griffin, J. M.; F. Nardari; and R. M. Stulz. 2004. "Are Daily Cross-Border Equity Flows Pushed or Pulled?" <i>Review of Economics and Statistics</i> 86, no. 3: 641-657.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Grinblatt, M., and B. Han. 2002. "The Disposition Effect and Momentum." Working paper, Anderson School, University of California-Los Angeles.</BIBTEXT>	 </REF>      <REF>	<BIBL>23</BIBL>   <BIBTEXT> Hung, J. H., and Y. P. Chen. 2010. "Equity Undervaluation and Signaling Power of Share Repurchases with Legal Restrictions." <i>Emerging Markets Finance & Trade</i> 46, no. 2 (March-April): 101-115.</BIBTEXT>	 </REF>      <REF>	<BIBL>24</BIBL>    <BIBTEXT> Lai H. W.; C. W. Chen; and C. S. Huang. 2010. "Technical Analysis, Investment Psychology, and Liquidity Provision: Evidence from the Taiwan Stock Market." <i>Emerging Markets Finance & Trade</i> 46, no. 5 (September-October): 18-38.</BIBTEXT>	</REF>	<REF>	   <BIBL>25</BIBL> <BIBTEXT> Merton, R. C. 1974. "On the Pricing of Corporate Debt: The Risk Structure of Interest Rates." <i>Journal of Finance</i> 29, no. 2: 449-470.</BIBTEXT>     </REF>      <REF>	 <BIBL>26</BIBL>   <BIBTEXT> Ohlson, J. A. 1980. "Financial Ratios and the Probabilistic Prediction of Bankruptcy." <i>Journal of Accounting Research</i> 18, no. 1: 109-131.</BIBTEXT>     </REF>      <REF>	    <BIBL>27</BIBL>	  <BIBTEXT> Pastor, L., and R. F. Stambaugh. 2003. "Liquidity Risk and Expected Stock Returns." <i>Journal of Political Economy</i> 111, no.3: 642-685.</BIBTEXT>	  </REF>      <REF>	<BIBL>28</BIBL>	<BIBTEXT> Richards, A. 2005. "Big Fish in Small Ponds: The Trading Behavior and Price Impact of Foreign Investors in Asian Emerging Equity Markets." <i>Journal of Financial and Quantitative Analysis</i> 40, no. 1: 1-27.</BIBTEXT>	 </REF>      <REF>	<BIBL>29</BIBL>   <BIBTEXT> Shiu, Y. M.; G. G. Pan; S. H. Lin; and T. C. Wu. 2010. "Impact of Net Buying Pressure on Changes in Implied Volatility: Before and After the Onset of the Subprime Crisis." <i>Journal of Derivatives</i> 17, no. 4: 54-66.</BIBTEXT>	 </REF>      <REF>	<BIBL>30</BIBL>    <BIBTEXT> Shu, P. G.; Y. H. Yeh; S. B. Chiu; and H. C. Chen. 2005. "Are Taiwanese Individual Investors Reluctant to Realize Their Losses?" <i>Pacific-Basin Finance Journal</i> 13, no. 2: 201-223.</BIBTEXT>	</REF>	<REF>	   <BIBL>31</BIBL> <BIBTEXT> Vassalou, M., and Y. Xing. 2004. "Default Risk in Equity Returns." <i>Journal of Finance</i> 59, no. 2: 831-868.</BIBTEXT>     </REF>      <REF>	<BIBL>32</BIBL>   <BIBTEXT> Vassalou, M.; J. Chen; and L. Zhou. 2005. "The Relation Between Liquidity Risk and Default Risk in Equity Returns." Working Paper no. 8734, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT> </REF>
Handle: RePEc:mes:emfitr:v:49:y:2013:i:1:p:101-129




Template-Type: ReDIF-Article 1.0
Author-Name: Ender Demir
Author-X-Name-First: Ender
Author-X-Name-Last: Demir
Author-Name: Hakan Danis
Author-X-Name-First: Hakan
Author-X-Name-Last: Danis
Title: Guest Editors' Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3-4
Issue: S1
Volume: 49
Year: 2013
Month: 1
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=844GJ4J852K71705
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S1:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Turhan
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Turhan
Author-Name: Erk Hacihasanoglu
Author-X-Name-First: Erk
Author-X-Name-Last: Hacihasanoglu
Author-Name: Ugur Soytas
Author-X-Name-First: Ugur
Author-X-Name-Last: Soytas
Title: Oil Prices and Emerging Market Exchange Rates
Abstract:
 This paper investigates the role of oil prices in explaining the dynamics of selected emerging countries' exchange rates. Using daily data series, the study concludes that a rise in oil prices leads to significant appreciation of emerging economies' currencies against the U.S. dollar. The authors divide daily returns from January 3, 2003, to June 2, 2010, into three subsamples and test the impact of changes in oil prices on exchange rate movements, generalizing impulse response functions to track the dynamic response of each exchange rate in three different time periods. Their findings suggest that oil price dynamics changed significantly in the sample period and the relationship between oil prices and exchange rates became more obvious after the 2008 financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 21-36
Issue: S1
Volume: 49
Year: 2013
Month: 1
Keywords: emerging market exchange rates, financial crisis, oil prices
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=933817651K933577
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Amano, R., and S. Norden. 1998. "Oil Prices and the Rise and Fall of the U. S. Real Exchange Rate." <i>Journal of International Money and Finance</i> 17, no. 2: 299-316.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Arezki, R., and F. Hasanov. 2009. "Global Imbalances and Petrodollars." Working Paper no. WP/09/89, International Monetary Fund, Washington, DC.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Bank for International Settlements. 2005. "International Banking and Financial Market Developments." <i>BIS Quarterly Review</i>, December (available at <a target="_blank" href='http://www.bis.org/publ/qtrpdf/r_qt0512.pdf'>www.bis.org/publ/qtrpdf/r_qt0512.pdf</a></BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Basher, S.; A. Haug; and P. Sadorsky. 2012. "Oil Prices, Exchange Rates and Emerging Stock Markets." <i>Energy Economics</i> 34, no. 1: 227-240.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Chaudhuri, K., and B. Daniel. 1998. "Long-Run Equilibrium Real Exchange Rates and Oil Prices." <i>Economics Letters</i> 58, no. 2: 231-238.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Chen, S., and H. Chen. 2007. "Oil Prices and Real Exchange Rates." <i>Energy Economics</i> 29, no. 3: 390-404.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Elliott, G.; T. J. Rothenberg; and J. H. Stock. 1996. "Efficient Tests for an Autoregressive Unit Root." <i>Econometrica</i> 64, no. 4: 813-836.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Farrell, D.; S. Lund; E. Gerlemann; and P. Seeburger. 2007. "The New Power Brokers: How Oil, Asia, Hedge Funds, and Private Equity Are Shaping Global Capital Markets." McKinsey Global Institute, McKinsey & Company, San Francisco, October.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Golub, S. 1983. "Oil Prices and Exchange Rates." <i>Economic Journal</i> 93, no. 371: 576-593.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Komijani, A., and H. Tavakolian. 2011. "The Composition of Foreign Reserves of the Central Banks of Selected Countries: Will the Euro Replace the Dollar?" <i>Eurasian Economic Review</i> 1, no. 2: 143-156.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Koop, G.; M. H. Pesaran; and S. M. Potter. 1996. "Impulse Response Analysis in Nonlinear Multivariate Models." <i>Journal of Econometrics</i> 74, no. 1: 119-147.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Krugman, P. 1980. "Oil and the Dollar." Working Paper Series no. 554, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Lizardo, R., and A. Mollick. 2010. "Oil Price Fluctuations and U. S. Dollar Exchange Rates." <i>Energy Economics</i> 32, no. 2: 399-408.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Maddala, G. S., and I. Kim. 1998. <i>Unit Roots, Cointegration, and Structural Change.</i> Cambridge: Cambridge University Press.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Miller, J., and Ratti, R. 2009. "Crude Oil and Stock Markets: Stability, Instability, and Bubbles." <i>Energy Economics</i> 31, no. 4: 559-568.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Narayan, K.; S. Narayan; and A. Prasad. 2008. "Understanding the Oil Price-Exchange Rate Nexus for the Fiji Islands." <i>Energy Economics</i> 30, no. 5: 2686-2696.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Newey, W. K., and K. West. 1987. "A Simple Positive Semi-Definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix." <i>Econometrica</i> 55, no. 3: 703-708.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Ng, S., and P. Perron. 2001. "Lag Length Selection and the Construction of Unit Root Tests with Good Size and Power." <i>Econometrica</i> 69, no. 6: 1519-1554.</BIBTEXT>      </REF>	 <REF>    <BIBL>19</BIBL>	<BIBTEXT> Pesaran, M. H., and Y. Shin. 1998. "Generalized Impulse Response Analysis in Linear Multivariate Models." <i>Economics Letters</i> 58, no. 1: 17-29.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Suttle, P.; F. Huefner; R. Koepke; and A. Tailor. 2012. "Capital Flows to Emerging Market Economies." Research Note, Institute of International Finance, Washington, DC.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> White, H. 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity." <i>Econometrica</i> 48, no. 4: 817-838.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Wiegand, J. 2008. "Bank Recycling of Petro Dollars to Emerging Market Economies During the Current Oil Price Boom." Working Paper no. WP/08/180, International Monetary Fund, Washington, DC.</BIBTEXT>	</REF>	    
Handle: RePEc:mes:emfitr:v:49:y:2013:i:S1:p:21-36




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Reis Mourao
Author-X-Name-First: Paulo Reis
Author-X-Name-Last: Mourao
Title: Women Out, Children Out: The Effect of Female Labor on Portuguese Preschool Enrollment Rates
Abstract:
 This paper tests whether Portuguese female employment rates have increased preschool enrollment rates. Particularly during the past 20 years, Portuguese women have assumed new roles in the marketplace and have become active workers outside of the home environment. This change has encouraged more sensible decisions with respect to preschool enrollment. Using cointegration techniques, the author finds that increases in female employment rates and real income per capita caused a long-term increase in preschool enrollment rates. Although the percentage of agricultural gross value added to the gross domestic product and the number of preschool institutes were also found to be significant in the estimated vector error correction model, their causal relationship with preschool enrollment was only short term.
Journal: Emerging Markets Finance and Trade
Pages: 49-62
Issue: S1
Volume: 49
Year: 2013
Month: 1
Keywords: labor, Portugal, preschool enrollment rates
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=AX11238757057212
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Almeida, M. 2002. "As mulheres e a doença num concelho rural alentejano: Avis, 1847-1956" [Women and Lack of Health in Rural Municipality of Alentejo: Avis, 1847-1956]. Paper presented at the twenty-second meeting of the Associação Portuguesa de História Económica e Social, Aveiro, November 15-16.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Alves, J. 2001. "Terra de Esperanças—O Brasil na emigração portuguesa" [Land for Hope: Brazil in Portuguese Emigration]. In <i>Portugal e Brasil—Encontros, desencontros, reencontros</i> [Portugal and Brazil—Matchings, Farewells, and Re-Matching], ed., Camara Municipal de Cascais, pp. 113-128. Cascais: Câmara Municipal, VII Cursos Internacionais.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Barreto, A., and C. Preto. 1996. <i>Portugal 1960/1995: Indicadores sociais</i> [Portugal 1960/1995: Social Indicators]. Lisbon: Instituto de Ciencias Sociais/Püblico.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bellaumi, M. 2009. "Energy Consumption and GDP in Tunisia: Cointegration and Causality Analysis." <i>Energy Policy</i> 37, no. 7: 2745-2753.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Berlinski, S., and S. Galiani. 2007. "The Effect of a Large Expansion of Pre-Primary School Facilities on Preschool Attendance and Maternal Employment." <i>Labour Economics</i> 14, no. 3: 665-680.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Blackstone, T. 1970. <i>Pre-School Education in Europe.</i> Strasbourg: Council for Cultural Cooperation.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Carrasco, C., and A. Recio. 2001. "Time, Work and Gender in Spain." <i>Time Society</i> 10, no. 23: 277-301.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Chevalier, A., and T. Viltanen. 2002. "The Causality Between Female Labour Force Participation and the Availability of Childcare." <i>Applied Economics Letters</i> 9, no. 14: 915-918.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Connelly, R. 1992. "The Effect of Child Care Costs on Married Women's Labor Force Participation." <i>Review of Economics and Statistics</i> 74, no. 1: 83-90.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Detang-Dessendre, C.; F. Goffette-Nagot; and V. Piguet. 2008. "Life Cycle and Migration to Urban and Rural Areas: Estimation of a Mixed Logit Model on French Data." <i>Journal of Regional Science</i> 48, no. 4: 789-824.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Dreman, S. 1997. <i>The Family on the Threshold of the 21st Century: Trends and Implications.</i> Mahwah, NJ: Lawrence Erlbaum.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Du Prel, X.; U. Kramer; H. Behrendt; J. Ring; H. Oppermann; T. Schikowski; and U. Randt. 2006. "Preschool Children's Health and Its Association with Parental Education and Individual Living Conditions in East and West Germany." <i>Public Health</i> 6: 312-325.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Ellis, F., and H. Freeman. 2004. <i>Rural Livelihoods and Poverty Reduction Policies.</i> New York: Routledge.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Formosinho, J. 1995. <i>Parecer 2/95: A expansão da educação pré-escolar: análise de um projecto de decreto-lei do Ministério da Educação</i> [Statement 2/95: The Expansion of Preschool Education: Analysis on a Project of Decree-Law of the Ministry of Education]. Lisbon: Conselho Nacional da Educação.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Hamilton, J. 1994. <i>Time Series Analysis.</i> Princeton: Princeton University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Hudeckova, H. 2005. 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"A eficiencia do ramo da educação pré-escolar no norte de Portugal—uma análise da ültima década" [The Efficiency of the Preschool Education in the North of Portugal—An Analysis for the Last Decade]. <i>Revista Portuguesa de Estudos Regionais</i> 23: 43-58.</BIBTEXT>	 </REF>      <REF>	<BIBL>26</BIBL>    <BIBTEXT> Naldini, N. 2003. <i>The Family in the Mediterranean Welfare States.</i> London: Frank Cass.</BIBTEXT>	</REF>	<REF>	   <BIBL>27</BIBL> <BIBTEXT> Nien, N. 2001. "The Determinants of Preschool Enrollment: Global Trends and a Case Study of Hong Kong, China." Ph.D. dissertation, Columbia University, New York.</BIBTEXT>     </REF>      <REF>	 <BIBL>28</BIBL>   <BIBTEXT> Oxley, L., and M. McAleer. 1999. <i>Practical Issues in Cointegration Analysis.</i> Oxford: Blackwell.</BIBTEXT>      </REF>	<REF>    <BIBL>29</BIBL>	<BIBTEXT> Pendleton, A. 1986. "Preschool Enrollment: Trends and Implications." Issue Paper no. CESIP ED284658, Center for Education Statistics, Washington, DC.</BIBTEXT> </REF>     <REF>   <BIBL>30</BIBL>	<BIBTEXT> Plan Bleu. 2009. "Populations agricoles totales dans les pays méditerranéens: rétrospective et scénario à 2025" [Total Agricultural Populations in the Mediterranean Countries: Retrospective and Scenario to 2025]. Valbonne (available at <a target="_blank" href='http://www.planbleu.org/themes/espaceRural.html'>www.planbleu.org/themes/espaceRural.html</a></BIBTEXT>	</REF>	 <REF>	   <BIBL>31</BIBL>	<BIBTEXT> Scheiwe, K., and H. Willekens. 2009. <i>Childcare and Preschool Development in Europe.</i> Hampshire, UK: Palgrave Macmillan.</BIBTEXT>      </REF>	  <REF>     <BIBL>32</BIBL>	<BIBTEXT> Sonalkar, W. 1975. "Problems of Working Women in Urban Areas." <i>Social Scientist</i> 4, no. 5: 124-133.</BIBTEXT>   </REF>     <REF>	 <BIBL>33</BIBL>  <BIBTEXT> Tamm, K., and H. Kaldaru. 2008. "Sectoral Structure and Socio-Economic Development: Searching for the Relationship." <i>Ekonomika ir vadyba: aktualijos ir perspektyvos</i> 3, no. 12: 358-369.</BIBTEXT>	</REF>	    <REF>	<BIBL>34</BIBL>       <BIBTEXT> Vasconcelos, T. 2000. "Educação de infância em Portugal: perspectivas de desenvolvimento num quadro de posmodernidade" [Children Education in Portugal: Perspectives for Development in a Post-Modernity Framework]. <i>Revista Iberoamericana de Educácion</i> 22: 1-14.</BIBTEXT>	 </REF>      <REF>	<BIBL>35</BIBL>	 <BIBTEXT> Viazzo, P. 2003. "What's So Special About the Mediterranean? Thirty Years of Research on Household and Family in Italy." <i>Continuity and Change</i> 18, no. 1: 111-137.</BIBTEXT>    </REF>	<REF>	 <BIBL>36</BIBL>	<BIBTEXT> World Bank. 2009. <i>World Development Indicators.</i> Washington, DC.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:49:y:2013:i:S1:p:49-62




Template-Type: ReDIF-Article 1.0
Author-Name: Marco Tronzano
Author-X-Name-First: Marco
Author-X-Name-Last: Tronzano
Title: The Sustainability of Indian Fiscal Policy: A Reassessment of the Empirical Evidence
Abstract:
 This paper reassesses the sustainability of fiscal policy in India from 1950 to 2010. Overall, the evidence broadly supports the hypothesis that the fiscal policy is "weakly" sustainable and documents a higher speed of adjustment to the intertemporal budget constraint than earlier papers do. Notwithstanding this improvement in the fiscal outlook, the author suggests that India should pursue a policy of fiscal consolidation in the years ahead, both because the ratio of public debt to the gross domestic product is still high compared to other emerging market countries and because "weak" fiscal solvency implies potential adverse consequences on the management of public debt.
Journal: Emerging Markets Finance and Trade
Pages: 63-76
Issue: S1
Volume: 49
Year: 2013
Month: 1
Keywords: fiscal sustainability, India, sustainability tests
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=BL5234142X881668
File-Format: text/html
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baharumshah, A. Z., and E. Lau. 2007. "Regime Changes and the Sustainability of Fiscal Imbalance in East Asian Countries." <i>Economic Modelling</i> 24, no. 6: 878-894.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>	<BIBTEXT> Bank of India. 2010. "Handbook of Statistics on Indian Economy, Part 1." Public Finances, New Delhi.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Blanchard, O. J. 1990. "Suggestions for a New Set of Fiscal Indicators." Working Paper no. 79, Economic Department, Organization of Economic Cooperation and Development, Paris.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bohn, H. 1995. "The Sustainability of Budget Deficits in a Stochastic Economy." <i>Journal of Money, Credit, and Banking</i> 27, no. 1: 257-271.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Bohn, H. 1998. "The Behavior of U. S. Public Debt and Deficits." <i>Quarterly Journal of Economics</i> 113, no. 3: 949-963.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Bohn, H. 2007. "Are Stationarity and Cointegration Restrictions Really Necessary for the Intertemporal Budget Constraint?" <i>Journal of Monetary Economics</i> 54, no. 7: 1837-1847.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Buiter, W. H., and U. R. Patel. 2006. "India's Public Finances: Excessive Budget Deficits, A Government-Abused Financial System and Fiscal Rules." Discussion Paper no. 5502, Centre for Economic Policy Research, London.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Buiter, W. H.; G. Corsetti; and N. Roubini. 1993. "Excessive Deficits: Sense and Nonsense in the Treaty of Maastricht." <i>Economic Policy</i> 8, no. 16: 57-100.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Corsetti, G., and N. Roubini. 1991. "Deficits, Public Debt and Government Solvency: Evidence from OECD Countries." <i>Journal of Japanese and International Economics</i> 5, no. 4: 354-380.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> De Paula, L. F. 2008. "Financial Liberalization, Exchange Rate Regime and Economic Performance in BRICs Countries." In <i>Financial Liberalization and Economic Performance in Emerging Countries</i>, ed. P. Arestis and L. F. De Paula, pp. 52-94. New York: Palgrave Macmillan.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Dickey, D. A., and W. A. Fuller. 1979. "Distribution of the Estimators for Autoregressive Time Series with a Unit Root." <i>Journal of the American Statistical Association</i> 74, no. 366a: 427-431.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Elliott, G.; T. J. Rothenberg; and J. H. Stock. 1996. "Efficient Tests for an Autoregressive Unit Root." <i>Econometrica</i> 64, no. 4: 813-836.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Engle, R. F., and C. W. J. Granger. 1987. "Co-Integration and Error Correction: Representation, Estimation, and Testing." <i>Econometrica</i> 55, no. 2: 251-276.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Engsted, T., and N. Haldrup. 1999. "Multicointegration in Stock-Flow Models." <i>Oxford Bulletin of Economics and Statistics</i> 61, no. 2: 237-254.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Formenti, M. 2008. "Gli indicatori e i tests di sostenibilitá della politica fiscale: Il caso italiano" [Indicators and Tests of Fiscal Policy Sustainability: The Italian Case]. <i>Rivista di Politica Economica</i> (November-December): 133-175.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Goyal, R.; J. K. Khundrakpam; and P. Ray. 2004. "Is India's Public Finance Sustainable? Or, Are the Claims Exaggerated?" <i>Journal of Policy Modeling</i> 26, no. 3: 401-420.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Granger, C. W. J., and T. H. Lee. 1989. "Investigation of Production, Sales and Inventory Relationships Using Multicointegration and Non-Symmetric Error Correction Models." <i>Journal of Applied Econometrics</i> 4, no. 4S1: S145-S159.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Granger, C. W. J., and T. H. Lee. 1990. "Multicointegration." In <i>Advances in Econometrics</i>, vol. 8, ed. G. F. Rhodes and T. B. Fomby, pp. 71-84. New York: JAI Press.</BIBTEXT>      </REF>	 <REF>    <BIBL>19</BIBL>	<BIBTEXT> Gregory, A. W., and B. E. Hansen. 1996. "Residual-Based Tests for Cointegration in Models with Regime Shifts." <i>Journal of Econometrics</i> 70, no. 1: 99-126.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Hakkio, C. S., and M. Rush. 1991a. "Cointegration: How Short Is the Long Run?" <i>Journal of International Money and Finance</i> 10, no. 4: 571-581.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Hakkio, C. S., and M. Rush. 1991b. "Is the Budget Deficit ‘Too Large’?" <i>Economic Inquiry</i> 29, no. 3: 429-445.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Hamilton, J., and M. Flavin. 1986. "On the Limitations of Government Borrowing: A Framework for Empirical Testing." <i>American Economic Review</i> 76, no. 4: 808-819.</BIBTEXT>	</REF>	    <REF>	    <BIBL>23</BIBL>	  <BIBTEXT> Jha, R., and A. Sharma. 2004. "Structural Breaks, Unit Roots, and Cointegration: A Further Test of the Sustainability of the Indian Fiscal Deficit." <i>Public Finance Review</i> 32, no. 2: 196-219.</BIBTEXT>	  </REF>      <REF>	<BIBL>24</BIBL>	<BIBTEXT> Johansen, S. 1995. <i>Likelihood-Based Inference in Cointegrating Vector Autoregressive Models.</i> New York: Oxford University Press.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>   <BIBTEXT> Kochhar, K. 2004. "Macroeconomic Implications of the Fiscal Imbalances." Paper presented at the National Institute of Public Finance and Policy/International Monetary Fund Conference on Fiscal Policy, New Delhi, India, January 16-17.</BIBTEXT>	 </REF>      <REF>	<BIBL>26</BIBL>    <BIBTEXT> Kochhar, K.; U. Kumar; R. Rajan; A. Subramanian; and I. Tokatlidis. 2006. "India's Pattern of Development: What Happened, What Follows." Working Paper no. 12023, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	</REF>	<REF>	   <BIBL>27</BIBL> <BIBTEXT> Kwiatkowski, D.; P. C. Phillips; P. Schmidt; and Y. Shin. 1992. "Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root." <i>Journal of Econometrics</i> 54, nos. 1-3: 159-178.</BIBTEXT>     </REF>      <REF>	 <BIBL>28</BIBL>   <BIBTEXT> MacKinnon, J. 1991. "Critical Values for Cointegration Tests." In <i>Long-Run Economic Relationships</i>, ed. R. F. Engle and C. W. J. Granger, pp. 267-276. New York: Oxford University Press.</BIBTEXT>      </REF>	<REF>    <BIBL>29</BIBL>	<BIBTEXT> Organization for Economic Cooperation and Development. 2010. "Developments in Selected Non-Member Countries—India." <i>Economic Outlook</i> 1, no. 87: 200-203.</BIBTEXT> </REF>     <REF>   <BIBL>30</BIBL>	<BIBTEXT> Payne, J. E.; H. Mohammadi; and M. Cak. 2008. "Turkish Budget Deficit Sustainability and the Revenue-Expenditure Nexus." <i>Applied Economics</i> 40, nos. 7-9: 823-830.</BIBTEXT>	</REF>	 <REF>	   <BIBL>31</BIBL>	<BIBTEXT> Perron, P. 1990. "Testing for a Unit Root in a Time Series with a Changing Mean." <i>Journal of Business</i> & <i>Economic Statistics</i> 8, no. 2: 153-162.</BIBTEXT>      </REF>	  <REF>     <BIBL>32</BIBL>	<BIBTEXT> Pesaran, M. H.; Y. Shin; and R. Smith. 2001. "Bounds Testing Approaches to the Analysis of Level Relationships." <i>Journal of Applied Econometrics</i> 16, no. 3: 289-326.</BIBTEXT>   </REF>     <REF>	 <BIBL>33</BIBL>  <BIBTEXT> Phillips, P. C. 1987. "Time Series Regression with a Unit Root." <i>Econometrica</i> 55, no. 2: 277-301.</BIBTEXT>	</REF>	    <REF>	<BIBL>34</BIBL>       <BIBTEXT> Phillips, P. C., and P. Perron. 1988. "Testing for a Unit Root in Time Series Regression." <i>Biometrika</i> 75, no. 2: 335-346.</BIBTEXT>	 </REF>      <REF>	<BIBL>35</BIBL>	 <BIBTEXT> Quintos, C. E. 1995. "Sustainability of the Deficit Process with Structural Shifts." <i>Journal of Business and Economic Statistics</i> 13, no. 4: 409-417.</BIBTEXT>    </REF>	<REF>	 <BIBL>36</BIBL>	<BIBTEXT> Ramsey, J. B. 1969. "Test for Specification Errors in Classical Linear Least Squares Regression Analysis." <i>Journal of the Royal Statistical Society B</i> 31, no. 2: 350-371.</BIBTEXT>	</REF>      <REF>	    <BIBL>37</BIBL>	  <BIBTEXT> Rodrik, D., and A. Subramanian. 2004. "From ‘Hindu Growth’ to Productivity Surge: The Mystery of the Indian Growth Transition." Discussion Paper no. 4371, Centre for Economic Policy Research, London.</BIBTEXT>	  </REF>      <REF>	<BIBL>38</BIBL>	<BIBTEXT> Singh, N., and T. N. Srinivasan. 2004. "Fiscal Policy in India: Lessons and Priorities." Paper presented at the National Institute of Public Finance and Policy/International Monetary Fund Conference on Fiscal Policy, New Delhi, India, January 16-17.</BIBTEXT>	 </REF>      <REF>	<BIBL>39</BIBL>   <BIBTEXT> Stock, J. H., and M. W. Watson. 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems." <i>Econometrica</i> 61, no. 4: 783-820.</BIBTEXT>	 </REF>      <REF>	<BIBL>40</BIBL>    <BIBTEXT> Topalova, P., and D. Nyberg. 2010. "What Level of Public Debt Could India Target?" Working Paper no. 10/7, International Monetary Fund, Washington, DC.</BIBTEXT>	</REF>	<REF>	   <BIBL>41</BIBL> <BIBTEXT> Trehan, B., and C. Walsh. 1988. "Common Trends, the Government Budget Constraint, and Revenue Smoothing." <i>Journal of Economic Dynamics and Control</i> 12, no. 2: 425-444.</BIBTEXT>     </REF>      <REF>	 <BIBL>42</BIBL>   <BIBTEXT> Trehan, B., and C. Walsh. 1991. "Testing Intertemporal Budget Constraints: Theory and Applications to U. S. Federal Budget and Current Account Deficits." <i>Journal of Money, Credit, and Banking</i> 23, no. 2: 206-223.</BIBTEXT>      </REF>	<REF>    <BIBL>43</BIBL>	<BIBTEXT> Wilcox, D. W. 1989. "The Sustainability of Government Deficits: Implications of the Present-Value Borrowing Constraint." <i>Journal of Money, Credit, and Banking</i> 21, no. 3: 291-306.</BIBTEXT> </REF>     <REF>   <BIBL>44</BIBL>	<BIBTEXT> Zivot, E., and D. Andrews. 1992. "Further Evidence on the Great Crash, the Oil Price Shock, and the Unit-Root Hypothesis." <i>Journal of Business and Economic Statistics</i> 10, no. 3: 251-270.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:49:y:2013:i:S1:p:63-76




Template-Type: ReDIF-Article 1.0
Author-Name: Sagi Akron
Author-X-Name-First: Sagi
Author-X-Name-Last: Akron
Title: Market Reaction Implications of the Composition of SEO Packages on the Tel Aviv Stock Exchange
Abstract:
 In this paper, the author examines the implications of the composition of the Tel Aviv Stock Exchange's different seasoned equity offering (SEO) packages on the market reaction to the SEO announcements. The 2000-2010 analysis demonstrates the significant impact of the SEO package's composition on the reaction to SEO announcements. It appears that the most negative impact of stock options in the package is alleviated by inclusion of a rights issue. The author concludes that package composition conveys an important signal to investors. Because they are perceived as a diminished threat to the existing ownership's balance of power, rights issues may alleviate asymmetric information agencies.
Journal: Emerging Markets Finance and Trade
Pages: 77-93
Issue: S1
Volume: 49
Year: 2013
Month: 1
Keywords: offering package composition, seasoned equity offerings
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C56H827576160J55
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akron, S. 2011. "Market Reactions to Dividend Announcements Under Different Business Cycles." <i>Emerging Markets Finance & Trade</i> 47, supp. 5: 72-85.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>  <BIBTEXT> Asquith, P., and D. W. Mullins. 1986. "Equity Issues and Offering Dilution." <i>Journal of Financial Economics</i> 15, nos. 1-2: 61-89.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Barclay, M. J., and R. H. Litzenberger. 1988. "Announcement Effects of New Equity Issues and the Use of Intraday Price Data." <i>Journal of Financial Economics</i> 21, no. 1: 71-99.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Bou Ysás, S., and M. Caýon Costa. 2011. "Fishing in Troubled Waters: The Lull Before the Storm." <i>Eurasian Economic Review</i> 1, no. 1: 51-65.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Brav, A.; C. Geczy; and P. A. Gompers. 2000. "Is the Abnormal Return Following Equity Issuances Anomalous?" <i>Journal of Financial Economics</i> 56, no. 2: 209-249.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Brous, P. A.; V. Datar; and O. Kini. 2001. "Is the Market Optimistic About the Future Earnings of Seasoned Equity Offering Firms?" <i>Journal of Financial and Quantitative Analysis</i> 36, no. 2: 141-168.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Brown, S. J., and J. B. Warner. 1980. "Measuring Securities Price Performance." <i>Journal of Financial Economics</i> 8, no. 3: 205-258.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Byoun, S. 2004. "Stock Performance Following Seasoned Stock-Warrant Unit Offerings." <i>Journal of Business</i> 77, no. 1: 75-100.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Chopra, N.; J. Lakonishok; and J. R. Ritter. 1992. "Measuring Abnormal Performance: Do Stocks Overreact?" <i>Journal of Financial Economics</i> 31, no. 2: 235-268.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Dasgupta, S.; B. Laplante; and N. Mamingi. 1998. "Capital Market Responses to Environmental Performance in Developing Countries." World Bank Policy Research Working Paper no. 1909, Washington, DC.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Eckbo, B. E., and R. W. Masulis. 1995. "Seasoned Equity Offerings: A Survey." In <i>Handbooks in Operations Research and Management Science</i>, ed. R. A. Jarrow, V. Maksimovic, and W. Ziemba, pp. 1017-1072. Amsterdam: Elsevier.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Fama, E. F. 1998. "Market Efficiency, Long-Term Returns, and Behavioral Finance." <i>Journal of Financial Economics</i> 49, no. 3: 283-306.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Fama, E. F., and K. R. French. 1993. "Common Risk Factors in the Returns on Stocks and Bonds." <i>Journal of Financial Economics</i> 33, no. 1: 3-56.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Ghosh, S. 2005. "Underpricing of Initial Public Offerings: The Indian Experience." <i>Emerging Markets Finance & Trade</i> 41, no. 6 (November-December): 45-57.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Kang, J. K.; Y. C. Kim.; and R. M. Stulz. 1999. "The Underreaction Hypothesis and the New Issue Puzzle: Evidence from Japan." <i>Review of Financial Studies</i> 12, no. 3: 519-534.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Levis, M. 1995. "Seasoned Equity Offerings and the Short- and Long-Run Performance of Initial Public Offerings in the UK." <i>European Financial Management</i> 1, no. 2: 125-146.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Loughran, T., and J. R. Ritter. 1995. "The New Issues Puzzle." <i>Journal of Finance</i> 50, no. 1: 23-51.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Loughran, T., and J. R. Ritter. 1997. "The Operating Performance of Firms Conducting Seasoned Equity Offerings." <i>Journal of Finance</i> 52, no. 5: 1823-1850.</BIBTEXT>      </REF>	 <REF>    <BIBL>19</BIBL>	<BIBTEXT> MacKinlay, C. 1997. "Event Studies in Economics and Finance." <i>Journal of Economic Literature</i> 35, no. 1: 13-39.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Myers, S. C., and N. S. Majluf. 1984. "Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have." <i>Journal of Financial Economics</i> 13, no. 2: 187-221.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	  <BIBTEXT> Nakamura, E. 2011. "Does Environmental Investment Really Contribute to Firm Performance? An Empirical Analysis Using Japanese Firms." <i>Eurasian Business Review</i> 1, no. 2: 91-111.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Ramasastry, A.; J. Kose; and J. Williams. 1987. "Efficient Signaling with Dividends and Investments." <i>Journal of Finance</i> 31, no. 2: 235-268.</BIBTEXT>	</REF>	    <REF>	    <BIBL>23</BIBL>	  <BIBTEXT> Ritter, J. R. 1991. "The Long-Run Performance of Initial Public Offerings." <i>Journal of Finance</i> 46, no. 1: 3-27.</BIBTEXT>	  </REF>      <REF>	<BIBL>24</BIBL>	<BIBTEXT> Spiess, D. K., and J. Affleck-Graves. 1995. "Underperformance in Long-Run Stock Returns Following Seasoned Equity Offerings." <i>Journal of Financial Economics</i> 38, no. 3: 243-267.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>   <BIBTEXT> Sun, H. L. 1994. "The Relationship Between the Valuation Effect of Equity Financing and Firm-Specific Characteristics." <i>Journal of Economics and Finance</i> 18, no. 1: 55-66.</BIBTEXT>	</REF>
Handle: RePEc:mes:emfitr:v:49:y:2013:i:S1:p:77-93




Template-Type: ReDIF-Article 1.0
Author-Name: Eldin Mehic
Author-X-Name-First: Eldin
Author-X-Name-Last: Mehic
Author-Name: Sabina Silajdzic
Author-X-Name-First: Sabina
Author-X-Name-Last: Silajdzic
Author-Name: Vesna Babic-Hodovic
Author-X-Name-First: Vesna
Author-X-Name-Last: Babic-Hodovic
Title: The Impact of FDI on Economic Growth: Some Evidence from Southeast Europe
Abstract:
 The aim of this paper is to investigate the impact of foreign direct investment (FDI) on economic growth in the transition countries of southeast Europe. The empirical analysis embraces seven southeast European countries in the period 1998-2007. The authors use Prais-Winsten regression with panel-corrected standard errors for the preferred estimation model. The main research result is the positive and statistically significant effect of FDI on economic growth. The impact of FDI is statistically significant and robust when including data on domestic investments. The results are robust to considering endogeneity issues (i.e., inverse causality).
Journal: Emerging Markets Finance and Trade
Pages: 5-20
Issue: S1
Volume: 49
Year: 2013
Month: 1
Keywords: economic growth, foreign direct investment, southeastern Europe
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q4RL6P2154J5Q125
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alfaro, L. C.; S. A. Kalemli-Ozcan; and S. Sayek. 2004. "FDI and Economic Growth: The Role of Local Financial Markets." <i>Journal of International Economics</i> 64, no. 1: 89-112.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>  <BIBTEXT> Anderson, T., and C. Hsiao. 1982. "Formulation and Estimation of Dynamic Models Using Panel Data." <i>Journal of Econometrics</i> 18, no. 1: 47-82.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Arellano, M., and S. R. Bond. 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations." <i>Review of Economic Studies</i> 58, no. 2: 277-297.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Balasubramanyam, V. N.; M. A. Salisu; and D. Sapsford. 1996. "Foreign Direct Investment and Growth in EP and IS Countries." <i>Economic Journal</i> 106, no. 434: 92-105.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Baltagi, B. H. 1995. <i>Econometric Analysis of Panel Data.</i> New York: Wiley.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Barro, R., and X. Sala-i-Martin. 1995. <i>Economic Growth.</i> New York: McGraw-Hill.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Barro, R., and X. Sala-i-Martin. 2004. <i>Economic Growth.</i> Cambridge: MIT Press.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Bassanini, A.; S. Scarpetta; and P. Memmings. 2001. "Economic Growth: The Role of Policies and Institutions: Panel Data Evidence from OECD Countries." Working Paper no. 283, Organization for Economic Cooperation and Development, Paris.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Beck, N., and J. N. Katz. 1995. "What to Do (and Not to Do) with Time-Series Cross-Section Data." <i>American Political Journal Review</i> 89, no. 3: 634-647.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Bijsterbosch, M., and M. Kolasa. 2009. "FDI and Productivity Convergence in Central and Eastern Europe: An Industry-Level Investigation." <i>Review of World Economics</i> 145, no. 4: 689-712.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Blomström, M.; R. E. Lipsey; and M. Zejan. 1992. "What Explains Developing Country Growth?" Working Paper no. 4132, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Blonigen, B. A., and M. Wang. 2004. "Inappropriate Pooling of Wealthy and Poor Countries in Empirical FDI Studies." Working Paper no. 10378, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Borenzstein, E.; J. De Gregorio; and J. W. Lee. 1998. "How Does Foreign Direct Investment Affect Economic Growth?" <i>Journal of International Economics</i> 45, no. 1: 115-135.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Bruno, G. S. F. 2005. "Approximating the Bias of the LSDV Estimator for Dynamic Unbalanced Panel Data Models." <i>Economic Letters</i> 87, no. 3: 361-366.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Bruno, M., and W. Easterly. 1998. "Inflation Crises and Long-Run Growth." <i>Journal of Monetary Economics</i> 41, no. 1: 3-26.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Campos, N. F., and Y. Kinoshita. 2002. "Foreign Direct Investment as Technology Transferred: Some Panel Evidence from the Transition Economies." Working Paper no. 438, William Davidson Institute, Ann Arbor, MI.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Carkovic, M., and R. Levine. 2002. "Does Foreign Direct Investment Accelerate Economic Growth?" Working Paper, Department of Business Finance, University of Minnesota, Twin Cities.</BIBTEXT>      </REF>     <REF>	<BIBL>18</BIBL>	  <BIBTEXT> Chang, S. C. 2010. "Estimating Relationships Among FDI Inflow, Domestic Capital, and Economic Growth Using the Threshold Error Correction Approach." <i>Emerging Markets Finance & Trade</i> 46, no. 1 (January-February): 6-15.</BIBTEXT>      </REF>	 <REF>    <BIBL>19</BIBL>	<BIBTEXT> Damijan, J.; A. Jaklic; and M. Rojec. 2005. "Do External Knowledge Spillovers Induce Firms' Innovations: Evidence from Slovenia." Discussion Paper no. 156, LICOS Centre for Transition Economics, Katholieke Universiteit, Leuven.</BIBTEXT>	</REF>   <REF>	    <BIBL>20</BIBL>	<BIBTEXT> Damijan, P.; M. Rojec.; B. Majcen; and M. Knell. 2008. "Impact of Firm Heterogeneity on Direct and Spillover Effects of FDI: Micro Evidence from Ten Transition Countries." Working Paper no. 40, Institute for Economic Research, Ljubljana.</BIBTEXT>	 </REF>    <REF>	    <BIBL>21</BIBL>	 <BIBTEXT> de Mello, L. R. 1999. "Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data." <i>Oxford Economic Papers</i> 51, no. 1: 133-151.</BIBTEXT>	  </REF>      <REF>	<BIBL>22</BIBL>	<BIBTEXT> Dicken, P. 2003. <i>Global Shift: Reshaping the Global Economic Map in the 21st Century.</i> Thousand Oaks, CA: Sage.</BIBTEXT>	</REF>	    <REF>	    <BIBL>23</BIBL>	  <BIBTEXT> European Bank for Reconstruction and Development (EBRD). 2001. <i>Transition Report 2001: Energy in Transition.</i> London.</BIBTEXT>	  </REF>      <REF>	<BIBL>24</BIBL>	<BIBTEXT> European Bank for Reconstruction and Development (EBRD). 2003. <i>Transition Report 2003: Integration and Regional Cooperation.</i> London.</BIBTEXT>	 </REF>      <REF>	<BIBL>25</BIBL>   <BIBTEXT> European Bank for Reconstruction and Development (EBRD). 2007. <i>Transition Report 2007: People in Transition.</i> London.</BIBTEXT>	</REF>     <REF>	    <BIBL>26</BIBL>	  <BIBTEXT> European Bank for Reconstruction and Development (EBRD). 2008. <i>Transition Report 2008: Growth in Transition.</i> London.</BIBTEXT>	  </REF>      <REF>	<BIBL>27</BIBL>  <BIBTEXT> Fortanier, F. 2007. 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In <i>The New Palgrave: A Dictionary of Economics</i>, ed. J. Eatwell, M. Milgate, and P. Newman, p. 49. London: Palgrave Macmillan.</BIBTEXT>      </REF>	<REF>    <BIBL>32</BIBL>	<BIBTEXT> Green, H. W. 2003. <i>Econometric Analysis</i>, 5th ed. Upper Saddle River, NJ: Prentice Hall.</BIBTEXT> </REF>     <REF>   <BIBL>33</BIBL>	<BIBTEXT> Grossman, G. M., and E. Helpman. 1991. <i>Innovation and Growth in the Global Economy.</i> Cambridge: MIT Press.</BIBTEXT>	</REF>	 <REF>	   <BIBL>34</BIBL>	<BIBTEXT> Guloglu, B., and R. B. Tekin. 2012. "A Panel Causality Analysis of the Relationship Among Research and Development, Innovation, and Economic Growth in High-Income OECD Countries." <i>Eurasian Economic Review</i> 2, no. 1: 32-47.</BIBTEXT>      </REF>	  <REF>     <BIBL>35</BIBL>	<BIBTEXT> Hicks, A. 1994. "Introduction to Pooling." In <i>The Comparative Political Economy of the Welfare State</i>, ed. T. Janoski and A. Hicks, pp. 189-217. Cambridge: Cambridge University Press.</BIBTEXT>   </REF>     <REF>	 <BIBL>36</BIBL>  <BIBTEXT> Hirschey, M. 1982. "Intangible Capital Aspects of Advertising and R&D Expenditures." <i>Journal of Industrial Economics</i> 30, no. 4: 375-390.</BIBTEXT>	</REF>	    <REF>	<BIBL>37</BIBL>       <BIBTEXT> Johnson, A. 2006. "The Effects of FDI Inflows on Host Country Economic Growth." Working Paper no. 58, Centre of Excellence for Science and Innovation Studies, Stockholm.</BIBTEXT>	 </REF>      <REF>	<BIBL>38</BIBL>	 <BIBTEXT> Jones, G. 2005. <i>Multinationals and Global Capitalism: From the Nineteenth to the Twenty-First Century.</i> Oxford: Oxford University Press.</BIBTEXT>    </REF>	<REF>	 <BIBL>39</BIBL>	<BIBTEXT> Judson, R. A., and A. L. Owen. 1999. "Estimating Dynamic Panel Data Models: A Guide for Macroeconomists. <i>Economics Letters</i> 65, no. 1: 9-15.</BIBTEXT>   </REF>     <REF>	<BIBL>40</BIBL>  <BIBTEXT> Kiviet, J. 1995. "On Bias, Inconsistency, and Efficiency of Various Estimators in Dynamic Relationships." <i>Review of Economic Studies</i> 53, no. 2: 241-261.</BIBTEXT>	 </REF>      <REF>	<BIBL>41</BIBL>  <BIBTEXT> Kmenta, J. 1986. <i>Elements of Econometrics</i>, 2d ed. London: Collier Macmillan.</BIBTEXT>	</REF>	    <REF>	<BIBL>42</BIBL>   <BIBTEXT> Lall, S. 1995. "Employment and Foreign Investment: Policy Options for Developing Countries." <i>International Labour Review</i> 134, nos. 4-5: 521-540.</BIBTEXT>      </REF>     <REF>	<BIBL>43</BIBL>	  <BIBTEXT> Lim, E. G. 2001. "Determinants of, and the Relation Between, Foreign Direct Investment and Growth: A Summary of the Recent Literature." Working Paper no. 01/175, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	 <REF>    <BIBL>44</BIBL>	<BIBTEXT> Mencinger, J. 2003. "Does Foreign Direct Investment Always Enhance Economic Growth?" <i>Kyklos</i> 56, no. 4: 491-508.</BIBTEXT>	</REF>   <REF>  <BIBL>45</BIBL>	<BIBTEXT> Nair-Reichert, U., and D. Weinhold. 2001. "Causality Tests for Cross-Country Panels: A New Look at FDI and Economic Growth in Developing Countries." <i>Oxford Bulletin of Economics and Statistics</i> 63, no. 2: 153-171.</BIBTEXT>	 </REF>    <REF>	    <BIBL>46</BIBL>	  <BIBTEXT> Neto, P.; A. Brandao; and A. Cerqueira. 2008. "The Impact of FDI, Cross-Border Mergers and Acquisitions, and Greenfield Investments on Economic Growth." Working Paper no. 291, Faculdade de Economia da Universidade do Porto, Porto.</BIBTEXT>	  </REF>      <REF>	<BIBL>47</BIBL>	<BIBTEXT> Neuhaus, M. 2006. <i>The Impact of FDI on Economic Growth, An Analysis for the Transition Countries of Central and Eastern Europe.</i> Heidelberg: Physica.</BIBTEXT>	</REF>	    <REF>	    <BIBL>48</BIBL>	  <BIBTEXT> Parks, R. W. 1966. "Efficient Estimation of a System of Regression Equation When Disturbances Are Both Serially and Contemporaneously Correlated." <i>Journal of the American Statistical Association</i> 62, no. 318: 500-509.</BIBTEXT>	  </REF>      <REF>	<BIBL>49</BIBL>	<BIBTEXT> Podesta, F. 2002. "Recent Developments in Quantitative Comparative Methodology: The Case of Pooled Time Series Cross-Section Analysis." DSS Paper SOC no. 3-02, Universita degli Studi di Brescia (available at <a target="_blank" href='http://www.unibs.it/sites/default/files/ricerca/allegati/1233pode202.pdf'>www.unibs.it/sites/default/files/ricerca/allegati/1233pode202.pdf</a></BIBTEXT>	 </REF>      <REF>	<BIBL>50</BIBL>   <BIBTEXT> Prais, S. J., and C. B. Winsten. 1954. "Trend Estimators and Serial Correlation." Cowles Commission Discussion Paper no. 383, Chicago.</BIBTEXT>	</REF>        <REF>	    <BIBL>51</BIBL>	  <BIBTEXT> Radosevic, S. 1999. "Transformation of Science and Technology Systems into Systems of Innovation in Central and Eastern Europe: The Emerging Patterns and Determinants." <i>Structural Change and Economic Dynamics</i> 10, nos. 3-4: 277-320.</BIBTEXT>	  </REF>      <REF>	<BIBL>52</BIBL>  <BIBTEXT> Romer, P. M. 1986. "Increasing Returns and Long-Run Growth." <i>Journal of Political Economy</i> 94, no. 5: 1002-1037.</BIBTEXT>	 </REF>      <REF>	<BIBL>53</BIBL>   <BIBTEXT> Romer, P. M. 1990. "Endogenous Technological Change." <i>Journal of Political Economy</i> 98, no. 5, part 2: 71-102.</BIBTEXT>	 </REF>      <REF>	<BIBL>54</BIBL>    <BIBTEXT> Saltz, I. 1992. "The Negative Correlation Between Foreign Direct Investment and Economic Growth in the Third World: Theory and Evidence." <i>Rivista Internazionale di Scienze Economiche e Commerciali</i> 39, no. 7: 617-633.</BIBTEXT>	</REF>	<REF>	   <BIBL>55</BIBL> <BIBTEXT> Schwartz, A. 2006. <i>The Politics of Greed: How Privatization Structured Politics in Central and Eastern Europe (World Social Change</i>). Lanham, MD: Rowman & Littlefield.</BIBTEXT>     </REF>      <REF>	 <BIBL>56</BIBL>   <BIBTEXT> Smarzynska, B. K. 2003. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages." Working Paper no. 548, William Davidson Institute, University of Michigan Business School, Ann Arbor.</BIBTEXT>      </REF>	<REF>    <BIBL>57</BIBL>	<BIBTEXT> Solow, R. 1956. "A Contribution to the Theory of Economic Growth." <i>Quarterly Journal of Economics</i> 70: 155-173.</BIBTEXT> </REF>     <REF>   <BIBL>58</BIBL>	<BIBTEXT> Temple, J. 1999. The New Growth Evidence." <i>Journal of Economic Literature</i> 37, no. 1: 112-156.</BIBTEXT>	</REF>	 <REF>	   <BIBL>59</BIBL>	<BIBTEXT> Vienna Institute for International Economic Studies (WIIW). 2007. <i>Database on FDI in Central, Eastern and Southeast Europe.</i> Vienna.</BIBTEXT>      </REF>	  <REF>     <BIBL>60</BIBL>	<BIBTEXT> Vienna Institute for International Economic Studies (WIIW). 2008a. <i>Database on FDI in Central, East and Southeast Europe.</i> Vienna.</BIBTEXT>   </REF>     <REF>	 <BIBL>61</BIBL>  <BIBTEXT> Vienna Institute for International Economic Studies (WIIW). 2008b. <i>Handbook of Statistics: Central, East and Southeast Europe.</i> Vienna.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:49:y:2013:i:S1:p:5-20




Template-Type: ReDIF-Article 1.0
Author-Name: Chi Keung Marco Lau
Author-X-Name-First: Chi Keung Marco
Author-X-Name-Last: Lau
Author-Name: Mehmet Huseyin Bilgin
Author-X-Name-First: Mehmet Huseyin
Author-X-Name-Last: Bilgin
Title: Hedging with Chinese Aluminum Futures: International Evidence with Return and Volatility Spillover Indices Under Structural Breaks
Abstract:
 This paper examines the hedging performance of the Shanghai futures market, with the London futures market acting as the channel for volatility spillover. Taking into consideration structural change, basis effects, and return and volatility spillover effects, the authors find that the estimated hedging performance is not improved. Their findings suggest that the effectiveness of the hedging performance of aluminum futures contracts in China is not affected by the magnitude or direction of return and volatility spillovers. Therefore, even when the magnitude and direction of volatility spillover from other markets can be correctly predicted, the hedging performance of a futures contract cannot be significantly improved. This paper uses precise measures of return spillovers and volatility spillovers based directly on the framework of vector autoregressive variance decompositions. The study also includes an analysis of both crisis and noncrisis episodes, with modeling on bursts in spillovers.
Journal: Emerging Markets Finance and Trade
Pages: 37-48
Issue: S1
Volume: 49
Year: 2013
Month: 1
Keywords: asymmetric basis effect, dynamic hedging strategy, futures markets, return and volatility spillover indices, structural changes
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Al-Deehani, T., and I. A. Moosa. 2006. "Volatility Spillover in Regional Emerging Spot Markets: A Structural Time Series Approach." <i>Emerging Markets Finance & Trade</i> 42, no. 4 (July-August): 78-89.</BIBTEXT>	  </REF>      <REF>	<BIBL>2</BIBL>  <BIBTEXT> Baillie, R. T., and R. J. Myers. 1991. "Bivariate GARCH Estimation of the Optimal Commodity Futures Hedge." <i>Journal of Applied Econometrics</i> 6, no. 2: 109-124.</BIBTEXT>	 </REF>      <REF>	<BIBL>3</BIBL>   <BIBTEXT> Chakraborty, A., and T. J. Barkoulas. 1999. "Dynamic Futures Hedging in Currency Markets." <i>European Journal of Finance</i> 5, no. 4: 299-314.</BIBTEXT>	 </REF>      <REF>	<BIBL>4</BIBL>    <BIBTEXT> Diebold, F. X., and K. Yilmaz. 2009. "Measuring Financial Asset Return and Volatility Spillovers, with Application to Global Equity Markets." <i>Economic Journal</i> 119, no. 534: 158-171.</BIBTEXT>	</REF>	<REF>	   <BIBL>5</BIBL> <BIBTEXT> Hansen, B. E. 1997. "Inference in TAR Models." <i>Studies in Nonlinear Dynamics and Econometrics</i> 2, no. 1: 1-14.</BIBTEXT>     </REF>      <REF>	 <BIBL>6</BIBL>   <BIBTEXT> Inci, A. C. 2011. "Capital, Investment Earnings, and Annual Stock Returns: Causality Relationships in China." <i>Eurasian Economic Review</i> 1, no. 2: 95-125.</BIBTEXT>      </REF>	<REF>    <BIBL>7</BIBL>	<BIBTEXT> Inclan, C., and G. C. Tiao. 1994. "Use of Cumulative Sums of Squares for Retrospective Detection of Changes in Variance." <i>Journal of the American Statistic Association</i> 89, no. 427: 913-923.</BIBTEXT> </REF>     <REF>   <BIBL>8</BIBL>	<BIBTEXT> Lian, Y.; M. Sepehri; and M. Foley. 2011. "Corporate Cash Holdings and Financial Crisis: An Empirical Study of Chinese Companies." <i>Eurasia Business Review</i> 1, no. 1: 112-124.</BIBTEXT>	</REF>	 <REF>	   <BIBL>9</BIBL>	<BIBTEXT> Lien, D. 2012. "A Note on the Performance of Regime Switching Hedge Strategy." <i>Journal of Futures Markets</i> 32, no. 4: 389-396.</BIBTEXT>      </REF>	  <REF>     <BIBL>10</BIBL>	<BIBTEXT> Lien, D., and L. Yang. 2006. "Spot-Futures Spread, Time-Varying Correlation and Hedging with Currency Futures." <i>Journal of Futures Markets</i> 26, no. 10: 1019-1038.</BIBTEXT>   </REF>     <REF>	 <BIBL>11</BIBL>  <BIBTEXT> Lien, D., and L. Yang. 2008. "Asymmetric Effects of Basis on Dynamic Futures Hedging: Empirical Evidence from Commodity Markets." <i>Journal of Banking and Finance</i> 32, no. 2: 187-198.</BIBTEXT>	</REF>	    <REF>	<BIBL>12</BIBL>       <BIBTEXT> Lien, D., and L. Yang. 2010. "The Effects of Structural Breaks and Long Memory on Currency Hedging." <i>Journal of Futures Markets</i> 30, no. 7: 607-632.</BIBTEXT>	 </REF>      <REF>	<BIBL>13</BIBL>	 <BIBTEXT> Michael, P.; A. R. Nobay; and D. A. Peel. 1997. "Transaction Costs and Nonlinear Adjustment in Real Exchange Rates: An Empirical Investigation." <i>Journal of Political Economy</i> 105, no. 4: 862-879.</BIBTEXT>    </REF>	<REF>	 <BIBL>14</BIBL>	<BIBTEXT> Rapach, D. E., and J. K. Strauss. 2008. "Structural Breaks and GARCH Models of Exchange Rate Volatility." <i>Journal of Applied Econometrics</i> 23, no. 1: 65-90.</BIBTEXT>   </REF>     <REF>	<BIBL>15</BIBL>  <BIBTEXT> Su, Y. Y.; C. K. M. Lau; and M. H. Bilgin. 2011. "Do Structural Breaks in Exchange Rate Volatility Matter? Evidence from Asia-Pacific Currencies." <i>Iktisat Isletme ve Finans</i> 26, no. 304: 57-78.</BIBTEXT>	 </REF>      <REF>	<BIBL>16</BIBL>  <BIBTEXT> Tokat, E., and H. A. Tokat. 2010. "Shock and Volatility Transmission in the Futures and Spot Markets: Evidence from Turkish Markets." <i>Emerging Markets Finance & Trade</i> 46, no. 4 (July-August): 92-104.</BIBTEXT>	</REF>	    <REF>	<BIBL>17</BIBL>   <BIBTEXT> Tse, Y. K., and A. K. C. Tsui. 2002. "A Multivariate Generalized Autoregressive Conditional Heteroscedasticity Model with Time-Varying Correlations." <i>Journal of Business and Economic Statistics</i> 20, no. 3: 351-362.</BIBTEXT>	 </REF>
Handle: RePEc:mes:emfitr:v:49:y:2013:i:S1:p:37-48




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 2
Volume: 49
Year: 2013
Month: 3
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=81G1T343772V0407
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:2:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Iftekhar Hasan
Author-X-Name-First: Iftekhar
Author-X-Name-Last: Hasan
Author-Name: Ru Xie
Author-X-Name-First: Ru
Author-X-Name-Last: Xie
Title: Foreign Bank Entry and Bank Corporate Governance in China
Abstract:
 China employs a unique foreign bank entry model. Instead of allowing full foreign control of domestic banks, foreign investors are only permitted to be involved in the local banks as minority shareholders. At the same time, foreign strategic investors are expected to commit to bank corporate governance improvement and new technology support. In this context, this paper examines the effect of foreign strategic investors on Chinese bank performance. Based on a unique data set of bank ownership, performance, corporate governance, and stock returns from 1997 to 2010, our regression and event study analysis results suggest that active involvement of foreign strategic investors in bank management has improved the corporate governance model of Chinese banks from a control-based model to a market-oriented model, and accordingly has promoted bank performance.
Journal: Emerging Markets Finance and Trade
Pages: 4-18
Issue: 2
Volume: 49
Year: 2013
Month: 3
Keywords: China, corporate governance, foreign market entry
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q7X324J501428588
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:2:p:4-18




Template-Type: ReDIF-Article 1.0
Author-Name: M. Hakan Berument
Author-X-Name-First: M. Hakan
Author-X-Name-Last: Berument
Author-Name: Nildag Basak Ceylan
Author-X-Name-First: Nildag Basak
Author-X-Name-Last: Ceylan
Author-Name: Bahar Onar
Author-X-Name-First: Bahar
Author-X-Name-Last: Onar
Title: Football and the Risk-Return Relationship for a Stock Market: Borsa Istanbul
Abstract:
 We hypothesize that results of football (soccer) teams affect the risk perception of people. People choose riskier investments after a win and less risky investments after a loss; this leads to higher (lower) returns in the stock market. These hypotheses are tested for the international matches of Turkey's three most popular teams (Beşiktaş, Fenerbahçe, and Galatasaray). The empirical findings suggests that the teams' wins led to higher asset returns and lower risk aversion on the following business day of the Borsa Istanbul and lower returns and higher risk aversion after a loss or a tie.
Journal: Emerging Markets Finance and Trade
Pages: 19-30
Issue: 2
Volume: 49
Year: 2013
Month: 3
Keywords: behavioral finance, football, psychology, stock market returns
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=97M729J31P0U55K0
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:2:p:19-30




Template-Type: ReDIF-Article 1.0
Author-Name: Yavuz Arslan
Author-X-Name-First: Yavuz
Author-X-Name-Last: Arslan
Author-Name: Evren Ceritoğlu
Author-X-Name-First: Evren
Author-X-Name-Last: Ceritoğlu
Title: Quality Growth Versus Inflation in Turkey
Abstract:
 We estimate average quality growth and upward inflation bias for a set of fifty-one goods in Turkey by using seven waves of the annual Household Budget Survey and TURKSTAT prices from 2003 to 2009. We employ the instrumental variables approach introduced by Bils and Klenow (2001). We find that average quality growth in Turkey is 3.93 percent. Of this 3.93 percent, 2.28 percent is not netted out by TURKSTAT. Consequently, for the set of goods that we study, the estimated inflation bias is 2.28 percentage points.
Journal: Emerging Markets Finance and Trade
Pages: 31-43
Issue: 2
Volume: 49
Year: 2013
Month: 3
Keywords: inflation rates, quality bias
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R270128377553661
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:2:p:31-43




Template-Type: ReDIF-Article 1.0
Author-Name: Meng-Horng Lee
Author-X-Name-First: Meng-Horng
Author-X-Name-Last: Lee
Author-Name: Chee-Wooi Hooy
Author-X-Name-First: Chee-Wooi
Author-X-Name-Last: Hooy
Title: Country Versus Industry Diversification in ASEAN-5
Abstract:
 This paper examines the role of common, country, and industry effects on international diversification potential in ASEAN (Association of Southeast Asian Nations) stock markets. Following a decomposition approach, we extract these effects from stock returns and further examine the determinants of country effects using <i>International Country Risk Guide</i> indexes. Our results indicate that country effects dominate industry effects despite the increasing integration of economic and financial markets. However, a diminishing trend of country effects domination coupled with improving fundamentals in ASEAN-5 was observed during the recent subprime crisis in 2008, together with the presence of strong integration of stock markets in ASEAN-5 (Indonesia, Malaysia, the Philippines, Singapore, and Thailand). Last, political risk is found to be one of the main driving forces behind the dominance of country effects.
Journal: Emerging Markets Finance and Trade
Pages: 44-63
Issue: 2
Volume: 49
Year: 2013
Month: 3
Keywords: ASEAN, country effects, country risk, determinants, international diversification
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Template-Type: ReDIF-Article 1.0
Author-Name: Sean J. Gossel
Author-X-Name-First: Sean J.
Author-X-Name-Last: Gossel
Author-Name: Nicholas Biekpe
Author-X-Name-First: Nicholas
Author-X-Name-Last: Biekpe
Title: The Cyclical Relationships Between South Africa's Net Capital Inflows and Fiscal and Monetary Policies
Abstract:
 This paper investigates the cyclical relationships between South Africa's post-liberalization net capital inflows and fiscal and monetary policies. Correlation analysis shows that the bulk of South Africa's capital inflows do not have a significant cyclical relationship with fiscal policy but have a procyclical and reactive cyclical relationship with monetary policy. Furthermore, causality analysis finds that fiscal policy reacts to monetary policy and capital flows, whereas capital flows react to monetary policy. Hence, these results suggest that South Africa's policymakers are in a better position to control the country's capital inflows using monetary policy than using fiscal policy.
Journal: Emerging Markets Finance and Trade
Pages: 64-83
Issue: 2
Volume: 49
Year: 2013
Month: 3
Keywords: capital flows, cyclicality, fiscal and monetary policies
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:2:p:64-83




Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandra Parteka
Author-X-Name-First: Aleksandra
Author-X-Name-Last: Parteka
Author-Name: Joanna Wolszczak-Derlacz
Author-X-Name-First: Joanna
Author-X-Name-Last: Wolszczak-Derlacz
Title: The Impact of Trade Integration with the European Union on Productivity in a Posttransition Economy: The Case of Polish Manufacturing Sectors
Abstract:
 This paper addresses the relationship between productivity growth in Polish manufacturing sectors and forces stemming from trade integration with the European Union. Empirical analysis (1995-2006) is based on sector-level bilateral data concerning both domestic (Polish) and foreign (partner countries from the enlarged European Union) markets' characteristics and their degree of openness. The main results indicate that, both in the short run and the long run, an increase in domestic sectors' openness exerts a positive effect on productivity growth in Poland (the opposite effect is exhibited by foreign sectors' openness). In addition, expansion in relative size of Polish sectors versus foreign ones boosts domestic labor productivity growth.
Journal: Emerging Markets Finance and Trade
Pages: 84-104
Issue: 2
Volume: 49
Year: 2013
Month: 3
Keywords: integration, labor productivity, trade
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:2:p:84-104




Template-Type: ReDIF-Article 1.0
Author-Name: Adnan Kasman
Author-X-Name-First: Adnan
Author-X-Name-Last: Kasman
Author-Name: Oscar Carvallo
Author-X-Name-First: Oscar
Author-X-Name-Last: Carvallo
Title: Efficiency and Risk in Latin American Banking: Explaining Resilience
Abstract:
 Using an unbalanced panel of 272 commercial banks, we estimate cost and revenue efficiency scores for fifteen Latin American and Caribbean countries over the period 2001-8. Using Granger causality techniques, we find evidence that in the face of increased risk and lowered capital, banks have tended to improve cost efficiency. The results also indicate that cost efficiency is negatively related with revenue efficiency, both dynamically and across countries. Market concentration is related to greater revenue efficiency. In the absence of developed capital markets, competitive forces and strengthened regulation seem to be forcing cost-efficiency improvements. Banks with market power, however, seem to be able to pass on to customers the cost of raising capital buffers and provisioning for risk.
Journal: Emerging Markets Finance and Trade
Pages: 105-130
Issue: 2
Volume: 49
Year: 2013
Month: 3
Keywords: capital, efficiency, Latin American banking, risk
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:2:p:105-130




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4-5
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y23875W302641N4L
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Template-Type: ReDIF-Article 1.0
Author-Name: Qichun He
Author-X-Name-First: Qichun
Author-X-Name-Last: He
Author-Name: Meng Sun
Author-X-Name-First: Meng
Author-X-Name-Last: Sun
Title: Does Financial Liberalization Change the Sectoral Allocation of Investments? Macro Evidence from Chinese Provinces
Abstract:
 Does financial liberalization affect how investment funds are allocated to competing sectors? We address this question using macro-level panel data for the period of reforms in the Chinese provinces, measuring the sectoral allocation of investments as the ratios of short-term bank loans allocated to agriculture, industry, and commerce, respectively, to total short-term loans. Both least square dummy variables (LSDV) and system estimations using the generalized method of moments (GMM) suggest that financial reform has a significant positive effect on the share of short-term loans allocated to agriculture and a significant negative effect on the share of short-term loans allocated to industry.
Journal: Emerging Markets Finance and Trade
Pages: 6-22
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: efficiency, financial liberalization, investment
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S2:p:6-22




Template-Type: ReDIF-Article 1.0
Author-Name: Xindan Li
Author-X-Name-First: Xindan
Author-X-Name-Last: Li
Author-Name: Bing Zhang
Author-X-Name-First: Bing
Author-X-Name-Last: Zhang
Title: Spillover and Cojumps Between the U.S. and Chinese Stock Markets
Abstract:
 There is an urgent need to understand the spillover and cojump effects between the U.S. and Chinese stock markets. The paper finds that since July 2005, the U.S. stock market has caused short-run spillover effects on returns on the Chinese stock market. More specifically, price changes in the United States can be used to predict both closing-to-opening and closing-to-closing returns on the Chinese stock market on the next day. However, there is no significant volatility spillover between the two markets. Both markets have shown stronger cojump behavior since the subprime crisis. The return relationships between the two stock markets are robust.
Journal: Emerging Markets Finance and Trade
Pages: 23-42
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: Chinese stock market, cojump, return spillover, U.S. stock market, volatility spillover
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S2:p:23-42




Template-Type: ReDIF-Article 1.0
Author-Name: Bi-Huei Tsai
Author-X-Name-First: Bi-Huei
Author-X-Name-Last: Tsai
Title: An Early Warning System of Financial Distress Using Multinomial Logit Models and a Bootstrapping Approach
Abstract:
 This study adopts multinomial logit models to separately measure the extent to which financial ratios and corporate governance signal the likelihood of "slight distress events" and "reorganization and bankruptcy." The results show that corporate governance variables are closely related to the occurrence of "slight distress events." The estimated misclassification costs of the 1,000 resamples generated through bootstrapping procedures are statistically lower for a model that makes use of corporate governance (CG model) than one without corporate governance (non-CG model) at all cutoff points in 2009, and cutoff points from 0.11 to 0.27 in 2008. Since corporate governance is incrementally useful in predicting financial distress, the CG model's predictive ability improves as two corporate governance factors are considered: ownership ratio of insiders and pledge-ownership ratio of insiders.
Journal: Emerging Markets Finance and Trade
Pages: 43-69
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: bootstrapping, corporate governance, emerging market, multinomial logit model, probability density function
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Hou
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Hou
Author-Name: Kuoping Chang
Author-X-Name-First: Kuoping
Author-X-Name-Last: Chang
Author-Name: Qing Wang
Author-X-Name-First: Qing
Author-X-Name-Last: Wang
Author-Name: Cheng Li
Author-X-Name-First: Cheng
Author-X-Name-Last: Li
Title: State Ownership, Foreign Minority Shareholders, and the Efficiency of Chinese Commercial Banks
Abstract:
 In this paper, we estimate the technical and allocative efficiency of Chinese commercial banks using both the stochastic frontier analysis primal system, a parametric method, and minimum convex input requirement set, a nonparametric approach. The effects of state ownership and the introduction of foreign minority shareholders (IFMS) on these two types of efficiency measures are also studied. Under both sets of efficiency estimations, the empirical results consistently show that state ownership has no significant effect on the allocative efficiency of Chinese commercial banks, and no significant negative influence on the technical efficiency of these banks. IFMS helps Chinese commercial banks to eliminate the constraints from some ossified institutions and optimize input combinations. These effects significantly enhance allocative efficiency, but exert no considerable influence on technical efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 70-90
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: bank efficiency, introduction of foreign minority shareholders, MCIRS approach, SFA primal system, state ownership
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Template-Type: ReDIF-Article 1.0
Author-Name: Lihong Cao
Author-X-Name-First: Lihong
Author-X-Name-Last: Cao
Author-Name: Xinping Xia
Author-X-Name-First: Xinping
Author-X-Name-Last: Xia
Author-Name: Yixia Wang
Author-X-Name-First: Yixia
Author-X-Name-Last: Wang
Title: Market Timing with Security Offering Regulations: Evidence from Private Placements of Chinese Listed Firms
Abstract:
 In the context of China's strict security-offering regulations, we examine market timing by linking firms' decisions to withdraw private placement (PP) proposals to changes in market condition during the approval process. We reveal that timing based on the strictness of the security-offering regulations is as important a dimension of market timing as timing based on the issuers' market valuations is. A firm's probability of withdrawing its PP proposal is negatively related to changes in its market-to-book ratio and changes in the strictness of regulations, measured by changes in the issue market (hot/cold) occurring between proposal announcement and outcome day. PPs for investment financing have more pronounced timing effects than PPs for asset restructuring.
Journal: Emerging Markets Finance and Trade
Pages: 91-106
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: market timing, private placements, security-offering regulations, withdrawal
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S2:p:91-106




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Ting Huang
Author-X-Name-First: Yi-Ting
Author-X-Name-Last: Huang
Author-Name: Ming-Cheng Wu
Author-X-Name-First: Ming-Cheng
Author-X-Name-Last: Wu
Author-Name: Szu-Lang Liao
Author-X-Name-First: Szu-Lang
Author-X-Name-Last: Liao
Title: The Relationship Between Equity-Based Compensation and Managerial Risk Taking: Evidence from China
Abstract:
 The authors analyze the impact of equity-based compensation on managerial risk-taking behavior in Chinese listed firms from January 2006 to July 2011. They find that greater risk-taking incentives lead executives to invest more in research and development (R&D) projects and less in capital expenditures. Greater managerial risk-taking incentive increases firm focus. Managerial risk-taking incentives have positive effects on firms' leverage. Overall, increasing the sensitivity of chief executive officers' portfolio value to stock return volatility helps incentivize executives to work harder, as sharing gains and losses with shareholders aligns the interests of executives and shareholders. In addition, the results indicate that state control of firms has a negative effect on R&D investment, and this suggests that state-controlled firms should take more initiative to innovate.
Journal: Emerging Markets Finance and Trade
Pages: 107-125
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: CEO incentive, managerial risk taking, R&D investment, stock options
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S2:p:107-125




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Hai Yang
Author-X-Name-First: Chih-Hai
Author-X-Name-Last: Yang
Author-Name: Ming-Huan Liou
Author-X-Name-First: Ming-Huan
Author-X-Name-Last: Liou
Title: Intra-Industry Trade and Labor Market Adjustment in Taiwan
Abstract:
 This paper investigates the relationship between intra-industry trade (IIT) expansion and labor market adjustment in Taiwan. We adopt a panel data set containing detailed employment information and utilize various measures of labor market adjustment to conduct empirical estimations. After controlling for industry-specific effects and occupational composition, the empirical results demonstrate that IIT expansion does have a smoothing effect on labor market adjustment. Moreover, industries with abundant skilled workers experience lower employment adjustment costs.
Journal: Emerging Markets Finance and Trade
Pages: 126-144
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: intra-industry trade, labor adjustment, occupational composition
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S2:p:126-144




Template-Type: ReDIF-Article 1.0
Author-Name: Joanna Olbrys
Author-X-Name-First: Joanna
Author-X-Name-Last: Olbrys
Title: Price and Volatility Spillovers in the Case of Stock Markets Located in Different Time Zones
Abstract:
 This paper investigates the interdependence of price volatility across the U.S. stock market and two emerging markets: Poland and Hungary. Using daily data for countries located in different time zones, we point out the problems caused by the presence of nonsynchronous trading effects. To address this problem we use open-to-close logarithmic returns of major stock market indexes. The asymmetric impact of good and bad news is described by a multivariate exponential general autoregressive conditional heteroskedastic model. We investigate the sample from May 2004 to December 2011. The evidence is that the U.S. prices spill over to other markets. Our results show no pronounced volatility spillovers among the three examined markets. Moreover, we observe the presence of negative asymmetry in the case of all markets.
Journal: Emerging Markets Finance and Trade
Pages: 145-157
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: asymmetry effect, market friction, multivariate EGARCH model. nonsynchronous trading, price and volatility spillovers
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S2:p:145-157




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoqin Zhao
Author-X-Name-First: Xiaoqin
Author-X-Name-Last: Zhao
Author-Name: Difang Wan
Author-X-Name-First: Difang
Author-X-Name-Last: Wan
Author-Name: Hao Xu
Author-X-Name-First: Hao
Author-X-Name-Last: Xu
Title: Political Connections and the Efficiency of Capital Allocation Through Bond Financing in Chinese Listed Companies
Abstract:
 Using a database of firms issuing short-term financing bonds and mid-term notes in China from 2007 to 2011, we uncover whether and how political connections influence the companies' capital allocation efficiency. The authors show that politically connected firms have significantly lower capital allocation efficiency, especially in the case of overinvestment subsamples. In addition, different types of political connections have different effects on firms' inefficient investments. Compared with firms connected to members of the people's congresses and the Chinese People's Political Consultative Conference (MPCP firms), firms connected to government officials (GOF) overinvest more and underinvest less. One year after bond financing, GOF politically connected firms decreased overinvestment, while underinvestment undergoes an upward trend in the MPCP firms.
Journal: Emerging Markets Finance and Trade
Pages: 158-170
Issue: S2
Volume: 49
Year: 2013
Month: 3
Keywords: bond financing, capital allocation efficiency, overinvestment, political connections, underinvestment
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S2:p:158-170




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Orhan
Author-X-Name-First: Mehmet
Author-X-Name-Last: Orhan
Author-Name: Ali Coşkun
Author-X-Name-First: Ali
Author-X-Name-Last: Coşkun
Title: Guest Editors' Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3-5
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H3R9872552681260
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:3-5




Template-Type: ReDIF-Article 1.0
Author-Name: Kurmaş Akdoğan
Author-X-Name-First: Kurmaş
Author-X-Name-Last: Akdoğan
Author-Name: Meltem Gülenay Chadwick
Author-X-Name-First: Meltem Gülenay
Author-X-Name-Last: Chadwick
Title: Nonlinearities in CDS-Bond Basis
Abstract:
 Theoretically, the risk premium captured by credit default swap (CDS) and bond yield spreads should be equal. However, data reveals a significant difference between the two spreads. The authors explore the presence of mean-reverting behavior in this difference (CDS-bond basis) in selected emerging markets, employing alternative threshold models (TAR, TAR-GARCH, and ESTAR). Their results indicate a positive relationship between the speed of adjustment and the trading frequency of sovereign CDSs and bonds.
Journal: Emerging Markets Finance and Trade
Pages: 6-19
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: CDS-bond basis, nonlinear adjustment
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Template-Type: ReDIF-Article 1.0
Author-Name: Bülent Köksal
Author-X-Name-First: Bülent
Author-X-Name-Last: Köksal
Author-Name: Mehmet Orhan
Author-X-Name-First: Mehmet
Author-X-Name-Last: Orhan
Title: Market Risk of Developed and Emerging Countries During the Global Financial Crisis
Abstract:
 This study compares the performance of the widely used risk measure, value at risk (VaR), across a large sample of developed and emerging countries. The performance of VaR is assessed using both the unconditional and conditional tests of Kupiec and Christoffersen, respectively, as well as the quadratic loss function. The results indicate that VaR performs much more poorly when measuring the risk of developed countries than of emerging ones. One possible reason might be the deeper initial impact of the global financial crisis on developed countries. The results also provide evidence of the decoupling of the market risk of emerging and developed countries during the global financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 20-34
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: ARCH/GARCH estimation, Christoffersen test, developed countries, emerging markets, Kupiec test, quadratic loss function, value at risk (VaR)
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:20-34




Template-Type: ReDIF-Article 1.0
Author-Name: Bahar Şen Doğan
Author-X-Name-First: Bahar Şen
Author-X-Name-Last: Doğan
Title: Asymmetric Behavior of the Exchange Rate Pass-Through to Manufacturing Prices in Turkey
Abstract:
 This study investigates the presence of asymmetry in the exchange rate pass-through (ERPT) to manufacturing industry prices in Turkey. Employing threshold regression models, the author examines whether the reaction of prices to the exchange rate vary depending on the demand conditions, size of exchange rate changes, exchange rate volatility, and inflation level. The results indicate that pass-through is affected positively by the aggregate demand conditions. In particular, when the economy is growing, exchange rate changes are transmitted to prices to a larger extent than otherwise. The author finds no evidence of asymmetry in ERPT regarding the size of exchange rate changes, volatility of exchange rate, or inflation level.
Journal: Emerging Markets Finance and Trade
Pages: 35-47
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: exchange rate pass-through, inflation, threshold regression models
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Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Akin
Author-X-Name-First: Ahmet
Author-X-Name-Last: Akin
Author-Name: Nizamettin Bayyurt
Author-X-Name-First: Nizamettin
Author-X-Name-Last: Bayyurt
Author-Name: Selim Zaim
Author-X-Name-First: Selim
Author-X-Name-Last: Zaim
Title: Managerial and Technical Inefficiencies of Foreign and Domestic Banks in Turkey During the 2008 Global Crisis
Abstract:
 This study analyses the differences between the group efficiency of foreign and domestic banks in Turkey from 2007 to 2010. The efficiencies of bank groups are compared after managerial inefficiencies are eliminated. In the process, the underlying factors of group efficiencies are identified. The results reveal that bank efficiencies are highly affected by their association with the bank groups. The efficiencies of foreign banks are higher than those of domestic banks both before and after managerial inefficiencies are eliminated. Surprisingly, foreign banks are found to have been highly or fully efficient during the global financial crisis, once the managerial inefficiencies are removed.
Journal: Emerging Markets Finance and Trade
Pages: 48-63
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: bank efficiency, bootstrap, DEA, foreign ownership, group efficiency, Turkey
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:48-63




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 64
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=RW347664LMG0UKVJ
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:64




Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Title: Downside Risk in Emerging Markets
Abstract:
 This paper investigates the relation between downside risk and expected returns on the aggregate stock market in an international context. Nonparametric and parametric value at risk are used as measures of downside risk to determine the existence of a risk-return trade-off. For emerging markets, fixed effects panel data regressions provide evidence for a significantly positive relationship between monthly expected market returns and downside risk. This result is robust after controlling for aggregate dividend yield and price-to-fundamental ratios. The relationship between expected returns and downside risk is weaker for developed markets and vanishes when control variables are included in the specification.
Journal: Emerging Markets Finance and Trade
Pages: 65-83
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: downside risk, emerging markets, risk-return relationship, value at risk
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Template-Type: ReDIF-Article 1.0
Author-Name: Iljoong Kim
Author-X-Name-First: Iljoong
Author-X-Name-Last: Kim
Author-Name: Inbae Kim
Author-X-Name-First: Inbae
Author-X-Name-Last: Kim
Title: Central Bank's Retained Profits and Discount Windows: A Bureaucratic Organization's Discretion-Seeking Hypothesis
Abstract:
 A recent study using data on seventy-one countries revealed that the central bank's retained profits serve as financial leverage for its discretion to choose the discount window, which tends to confer more benefits to bureaucrats than other monetary instruments. As an extension, we investigate the case of Korea. The Bank of Korea introduced the Profits-Retaining Clause (PRC) in 1962, elucidating two purposes: to reduce the monetary base and to secure credibility. Upon showing that these claims are not quite convincing, we confirm that the PRC probably served bureaucratic interests. In particular, this paper, using time-series data, supports the aforementioned cross-country study.
Journal: Emerging Markets Finance and Trade
Pages: 84-102
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: bureaucracy, central bank, discount window, discretion seeking, retained profits
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:84-102




Template-Type: ReDIF-Article 1.0
Author-Name: Shaoyu Li
Author-X-Name-First: Shaoyu
Author-X-Name-Last: Li
Author-Name: Li-Chuan Tsai
Author-X-Name-First: Li-Chuan
Author-X-Name-Last: Tsai
Title: Would a Relaxation of the Exchange Rate Regime Increase the Independence of Chinese Monetary Policy? Evidence from China
Abstract:
 Some policymakers and academic researchers suggest that relaxing the exchange rate regime will increase the independence of Chinese monetary policy. To test this argument, we estimate spot interest rate models with dummy variable sets and derive an economic interpretation. The empirical results suggest that a relaxation of the exchange rate regime increases the independence of market-based monetary policy; however, it weakens the independence of monetary policy for forecasting future normal events, and it also imposes an ambiguous impact on the independence of monetary policy for forecasting future rare events.
Journal: Emerging Markets Finance and Trade
Pages: 103-123
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: exchange rate regime, hot money, initial public offerings, market-based monetary policy, speculative arbitrage
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:103-123




Template-Type: ReDIF-Article 1.0
Author-Name: Nilufer Ozdemir
Author-X-Name-First: Nilufer
Author-X-Name-Last: Ozdemir
Title: Effects of Monetary Policy Coordination on Small Open Economies
Abstract:
 This paper proposes an innovative approach for analyzing the influence of external shocks on small open economies. This approach incorporates the role of large-country monetary policy coordination in influencing shocks and provides an empirical tool to analyze them. In the face of recent fluctuations in commodity prices, this new tool makes it possible to evaluate the influence on small countries of large-country policy coordination in response to these shocks. Based on an analysis of data from Mexico, such policies are found to provide better results for Mexico when Mexico's trade partners coordinated their responses.
Journal: Emerging Markets Finance and Trade
Pages: 124-136
Issue: 3
Volume: 49
Year: 2013
Month: 5
Keywords: external shocks, monetary policy coordination, small open economies
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:3:p:124-136




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 4
Volume: 49
Year: 2013
Month: 7
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D3710124705824K7
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:4:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Javad Abedini
Author-X-Name-First: Javad
Author-X-Name-Last: Abedini
Title: Heterogeneity of Trade Patterns in High-Tech Goods Across Established and Emerging Exporters: A Panel Data Analysis
Abstract:
 This study aims to identify underlying fundamental factors behind high-tech exports by the established and emerging countries, separately. The author also examines whether the two export patterns converge over time. Based on the gravity approach, a generalized method of moments panel estimator is applied to rigorously address the endogeneity problem in both static and dynamic versions of the model. In addition, the nonstationary and cointegrating features of variables are discussed. The author finds that high-tech exports from the emerging countries are mainly based on foreign direct investment inflows and participation in the international production chain, as well as a high degree of export concentration, while high-tech exports from the established exporters are mainly linked to industrial infrastructures, research and development, and export diversification. Nevertheless, the two export patterns converge over time.
Journal: Emerging Markets Finance and Trade
Pages: 4-21
Issue: 4
Volume: 49
Year: 2013
Month: 7
Keywords: emerging economies, GMM panel estimator, gravity model, high-tech exports, structural convergence
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Template-Type: ReDIF-Article 1.0
Author-Name: Oliver Gloede
Author-X-Name-First: Oliver
Author-X-Name-Last: Gloede
Author-Name: Ornsiri Rungruxsirivorn
Author-X-Name-First: Ornsiri
Author-X-Name-Last: Rungruxsirivorn
Title: Local Financial Development and Household Welfare: Microevidence from Thai Households
Abstract:
 The authors provide new microevidence on the relationship between financial development and welfare. Relying on the concept of local financial development, their analysis focuses on two dimensions of household welfare: investment and consumption. The results show that financial development is associated with a larger volume of productive investments and is also able to improve the financing of consumption; however, the effect of financial development on credit as an instrument to minimize consumption risk is not supported. This finding implies that consumption smoothing is only weakly improved by greater financial development.
Journal: Emerging Markets Finance and Trade
Pages: 22-45
Issue: 4
Volume: 49
Year: 2013
Month: 7
Keywords: credit rationing, consumption, consumption smoothing, growth, investment
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:4:p:22-45




Template-Type: ReDIF-Article 1.0
Author-Name: Mahir Binici
Author-X-Name-First: Mahir
Author-X-Name-Last: Binici
Author-Name: Bülent Köksal
Author-X-Name-First: Bülent
Author-X-Name-Last: Köksal
Title: Do Bank Stockholders Share the Burden of Required Reserve Tax? Evidence from Turkey
Abstract:
 This study examines whether bank shareholders bear the burden of required reserves tax by analyzing the reaction of banks' stock returns to the changes in the required reserve ratio. Results show that increases in reserve requirements significantly lower bank returns, implying that shareholders share a portion of the required reserve tax. Required reserves changes are partially predicted by investors, and increases and decreases in required reserve rates have an asymmetric effect on stock returns. In addition, the remuneration of reserves has important implications for the tax burden. Finally, some heterogeneity across banks exists as reflected by differences in signs and magnitudes of the estimated coefficients.
Journal: Emerging Markets Finance and Trade
Pages: 46-73
Issue: 4
Volume: 49
Year: 2013
Month: 7
Keywords: Istanbul Stock Exchange, monetary policy, required reserves tax, stock returns, tax incidence, Turkey
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:4:p:46-73




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Bojeşteanu Bobeica
Author-X-Name-First: Elena Bojeşteanu
Author-X-Name-Last: Bobeica
Author-Name: Ana Simona Manu
Author-X-Name-First: Ana Simona
Author-X-Name-Last: Manu
Title: Empirical Analysis of Business Cycle Synchronization and Shock Similarity Between Romania and the Eurozone
Abstract:
 The paper aims to evaluate the degree of business cycle synchronization and the similarity of production structures between Romania and the eurozone, drawing a comparison with other new member states. Although there has been significant progress, business cycle correlation with the eurozone is still lower in Romania than in other regional peers. Moreover, the empirical evidence regarding the similarity of production structures reveals a widening gap vis-à-vis the eurozone during the transition period. The results suggest that it is less advisable for Romania to join the eurozone than for other countries in Central and Eastern Europe.
Journal: Emerging Markets Finance and Trade
Pages: 74-97
Issue: 4
Volume: 49
Year: 2013
Month: 7
Keywords: business cycle, convergence, optimum currency areas, structural shock
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:4:p:74-97




Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Pino
Author-X-Name-First: Gabriel
Author-X-Name-Last: Pino
Author-Name: Iván Araya
Author-X-Name-First: Iván
Author-X-Name-Last: Araya
Title: Impact of the Heterogeneity in Market Power on the Relationship Between Risk Taking and Competition: Case of the Chilean Banking Sector
Abstract:
 Until the end of the 1990s, the existence of a negative relationship between banking competition and stability was generally accepted in the economic literature. Since then, a new point of view has emerged questioning this relationship and instead argues about the existence of a positive relationship between these two variables. This paper studies the impact of the heterogeneity in market power on this relationship through the case of the Chilean banking sector. The results indicate that this kind of heterogeneity can play an important role in the relationship between risk taking and competition.
Journal: Emerging Markets Finance and Trade
Pages: 98-112
Issue: 4
Volume: 49
Year: 2013
Month: 7
Keywords: bank, competition, heterogeneity, stability
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:4:p:98-112




Template-Type: ReDIF-Article 1.0
Author-Name: John M. Luiz
Author-X-Name-First: John M.
Author-X-Name-Last: Luiz
Author-Name: Meshal Ruplal
Author-X-Name-First: Meshal
Author-X-Name-Last: Ruplal
Title: Foreign Direct Investment, Institutional Voids, and the Internationalization of Mining Companies into Africa
Abstract:
 The paper investigates the factors influencing the internationalization of mining firms into Africa and the strategies employed. We find that the three most important factors identified by mining houses as influencing their decisions to invest are all related to institutional voids particular to developing countries—security of tenure, political stability and poor infrastructure. South African firms have shown themselves to be adept to doing business in volatile political and institutional environments because of their experience within their home base with relatively weaker institutions. They have therefore developed advantages over multinational enterprises from industrialized countries to doing business in these new frontiers.
Journal: Emerging Markets Finance and Trade
Pages: 113-129
Issue: 4
Volume: 49
Year: 2013
Month: 7
Keywords: Africa, institutional voids, mining, theory of FDI and the MNE
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:4:p:113-129




Template-Type: ReDIF-Article 1.0
Author-Name: Min-Teh Yu
Author-X-Name-First: Min-Teh
Author-X-Name-Last: Yu
Title: Guest Editor's Introduction: Institutional Characteristics and Trading Mechanisms of Financial Markets in East Asia
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3-4
Issue: S3
Volume: 49
Year: 2013
Month: 7
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q8130JX64066M280
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Template-Type: ReDIF-Article 1.0
Author-Name: Tze-Yu Yen
Author-X-Name-First: Tze-Yu
Author-X-Name-Last: Yen
Author-Name: Shuching Chou
Author-X-Name-First: Shuching
Author-X-Name-Last: Chou
Author-Name: Paul André
Author-X-Name-First: Paul
Author-X-Name-Last: André
Title: Operating Performance of Emerging Market Acquirers: Corporate Governance Issues
Abstract:
 This study examines whether from the late fifth to the peak of the recent sixth acquisition wave, acquiring firms in emerging economies created operating performance following transactions. The authors analyze whether the degree of threat from corporate governance and the legal environment influences value creation. Based on ninety-eight merger and acquisition deals from 1998 to 2006, this paper concludes that emerging market acquirers typically have good operating performance before transactions occur, but that the average adjusted operating performance over a three-year period following a merger transaction shows little improvement. In addition, the square relationship that exists between postacquisition performance and the level of ownership concentration provides evidence to support both the incentive and the tunneling effects of large shareholders. Furthermore, there is no significant difference in performance improvement related to the legal framework of the acquirers' home countries, but the legal quality of target nations does have an impact on acquisition performance. Finally, our results on firm-specific governance mechanisms complicate the usefulness of audit committees on company boards but support the crucial role of independent directors. The results for country-specific legal systems confirm that a secure legal environment can help curb the practice of using ownership to extract private benefits and lead to better performance by emerging market acquirers, although legal enforcement from public institutions that is too strong reduces value.
Journal: Emerging Markets Finance and Trade
Pages: 5-19
Issue: S3
Volume: 49
Year: 2013
Month: 7
Keywords: corporate governance, emerging markets, legal institutions, mergers and acquisitions, operating performance, ownership structure
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Template-Type: ReDIF-Article 1.0
Author-Name: Tsai-Ling Liao
Author-X-Name-First: Tsai-Ling
Author-X-Name-Last: Liao
Author-Name: Min-Teh Yu
Author-X-Name-First: Min-Teh
Author-X-Name-Last: Yu
Title: Price and Liquidity Effects of Switching Exchange Listings
Abstract:
 By examining the price and liquidity effects around announcements of switching exchanges by firms within structurally similar markets in Taiwan, the authors uncover that while switching firms experience only a trivial effect around the application announcement days, there is a pronounced price rise during the prelisting period. Subsequently, they find only a partial reversal of this prelisting increase over the listing days and the postlisting period. However, they observe that stock liquidity improves following the application announcements, peaks around the listing days, and remains at high levels after listing. Further results suggest that firms' announcements that they are switching exchanges are not followed by improved earnings relative to performance-matched control firms. Collectively, these results reveal that transfer stocks in Taiwan convey information about permanent improvements in liquidity rather than better earnings prospects, which is consistent with the stock marketability implications of managerial exchange-switching decisions.
Journal: Emerging Markets Finance and Trade
Pages: 20-34
Issue: S3
Volume: 49
Year: 2013
Month: 7
Keywords: exchange listing, liquidity effect, price effect
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S3:p:20-34




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Hsien Chen
Author-X-Name-First: Ming-Hsien
Author-X-Name-Last: Chen
Author-Name: Yin-Feng Gau
Author-X-Name-First: Yin-Feng
Author-X-Name-Last: Gau
Author-Name: Vivian W. Tai
Author-X-Name-First: Vivian W.
Author-X-Name-Last: Tai
Title: Issuer Credit Ratings and Warrant-Pricing Errors
Abstract:
 This paper examines how issuer credit relates to the level of warrant-pricing errors in Taiwan. The results demonstrate that the premia of warrants with high credit ratings have fewer pricing errors, implying that warrants with higher credit ratings are more fairly priced in terms of the Black-Scholes model. Using more parameters than in traditional option-pricing models, this study contributes to the literature by demonstrating that the credit ratings of warrant issuers have a critical impact on the prices of covered warrants.
Journal: Emerging Markets Finance and Trade
Pages: 35-46
Issue: S3
Volume: 49
Year: 2013
Month: 7
Keywords: covered warrants, credit ratings, pricing errors
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A04027U0U311712T
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S3:p:35-46




Template-Type: ReDIF-Article 1.0
Author-Name: David S. Sun
Author-X-Name-First: David S.
Author-X-Name-Last: Sun
Author-Name: Shih-Chuan Tsai
Author-X-Name-First: Shih-Chuan
Author-X-Name-Last: Tsai
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Title: Behavioral Investment Strategy Matters: A Statistical Arbitrage Approach
Abstract:
 In this study, we employ a statistical arbitrage approach to demonstrate that momentum strategies work only in longer formation and holding periods, a result more conclusive than standard parametric tests can offer. Disposition and overconfidence effects are important factors contributing to the phenomenon. The overconfidence effect seems to dominate the disposition effect, especially in an up market. Moreover, the overconfidence investment behavior of institutional investors is the main cause for significant momentum returns observed in an up market. In a down market, the institutional investors tend to adopt a contrarian strategy while the individuals are still maintaining momentum behavior within shorter periods.
Journal: Emerging Markets Finance and Trade
Pages: 47-61
Issue: S3
Volume: 49
Year: 2013
Month: 7
Keywords: disposition effect, market state, momentum strategy, statistical arbitrage
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhijuan Chen
Author-X-Name-First: Zhijuan
Author-X-Name-Last: Chen
Author-Name: William T. Lin
Author-X-Name-First: William T.
Author-X-Name-Last: Lin
Author-Name: Changfeng Ma
Author-X-Name-First: Changfeng
Author-X-Name-Last: Ma
Author-Name: Zhenlong Zheng
Author-X-Name-First: Zhenlong
Author-X-Name-Last: Zheng
Title: The Impact of Individual Investor Trading on Stock Returns
Abstract:
 In this paper, we study the impact of the trading of individual investors on short-horizon stock returns from 2005 to 2006 using a unique data set provided by the Taiwan Stock Exchange. We examine the predictability of stock returns based on net individual trading by using the portfolio-sorting approach and the Fama-MacBeth regression method. Contrary to previously offered conclusions, we find that the imbalance in individual trading negatively predicts future stock returns on a stock-by-stock basis, which indicates that individual investors can be viewed as noise traders to some extent. At the same time, using the principal component analysis, we find that the noise trading of individuals is not systematic.
Journal: Emerging Markets Finance and Trade
Pages: 62-69
Issue: S3
Volume: 49
Year: 2013
Month: 7
Keywords: individual investors, noise traders, stock returns, systematic
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S3:p:62-69




Template-Type: ReDIF-Article 1.0
Author-Name: Matthew C. Chang
Author-X-Name-First: Matthew C.
Author-X-Name-Last: Chang
Author-Name: Rebecca Chung-Fern Wu
Author-X-Name-First: Rebecca Chung-Fern
Author-X-Name-Last: Wu
Title: Informativeness and Influence of Limit Order Books on Order Submissions in Electronic Continuous Auction Markets
Abstract:
 In this study, the authors investigate the relationship between price movement and the depth of limit order books, as well as the relationship between order submission/ cancellation and depth for institutional and individual investors, respectively. They find that the relationship between the best bid/ask depth on limit order books and price movement is positive. However, the relationship is less significant for the sum of the second to fifth depths resulting from the corresponding bid/ask prices, especially in the groups having the lowest trading volume and the lowest market capitalization. They conjecture that the difference in informational content between the best depth and minor depth is due to the continuous auction-trading mechanism on the Taiwan Stock Exchange (TWSE). In addition, the authors find that individual and institutional investors submit and cancel orders differently depending on the depth of the limit order books. In particular, individual investors are more stable in providing liquidity on the buy side than on the sell side. The authors contribute to better understanding of the informative role limit order books play and the influence of limit order books on order submissions and cancellations.
Journal: Emerging Markets Finance and Trade
Pages: 70-97
Issue: S3
Volume: 49
Year: 2013
Month: 7
Keywords: depth of limit order books, individual investors, institutional investors, liquidity, TWSE
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S3:p:70-97




Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Lung Chang
Author-X-Name-First: Hui-Lung
Author-X-Name-Last: Chang
Author-Name: Sou-Shan Wu
Author-X-Name-First: Sou-Shan
Author-X-Name-Last: Wu
Author-Name: Szu-Lang Liao
Author-X-Name-First: Szu-Lang
Author-X-Name-Last: Liao
Title: An Analysis of Strategic Equity Stakes Acquisition of Chinese Banks by Foreign Financial Institutions
Abstract:
 This paper applies a contingent claim model to examine the risk of and returns to foreign financial institutions after they acquire equity stakes in a Chinese bank. The model considers dynamic factors such as individual asset value and exchange rates in maximizing shareholder value. In addition to analyzing the asset value and factors associated with risk after participation, this paper evaluates the optimal acquisition equity stake ratio using numerical analyses under regulatory capital control. For the Chinese banking sector, we discover that the portfolio risk of foreign financial institution will decrease after acquiring equity stakes when its asset increases, the debt ratio decreases, and the required risk-weighted asset increases. Overall, these foreign financial institutions have well-diversified currency portfolios and enjoy better asset quality and surplus earnings; therefore, they will likely increase their optimal acquisition equity stake ratio if the Chinese banks in which they invest have with good quality assets and are focused on local business.
Journal: Emerging Markets Finance and Trade
Pages: 98-109
Issue: S3
Volume: 49
Year: 2013
Month: 7
Keywords: capital control, contingent claim, optimal acquisition equity stake ratio, risk-weighted asset
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C8382383G0064T1Q
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S3:p:98-109




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Lung Chen
Author-X-Name-First: Yu-Lung
Author-X-Name-Last: Chen
Author-Name: Etzer S. Emile
Author-X-Name-First: Etzer S.
Author-X-Name-Last: Emile
Title: Trade Openness and Finance: Effects of Foreign Trade with China on Latin American Financial Development
Abstract:
 Using annual data from seventeen Latin American economies observed over the period 1982-2009 and a heterogeneous panel regression based on the pooled mean group approach of Pesaran et al. (1999), this study provides evidence to support the following findings: (1) the existing trade connection between China and Latin America has had a positive and significant effect on Latin American countries' financial development since the 1990s, (2) trade openness plays a positive role in Latin American economies' financial development, and (3) the economic development of Latin American countries has a positive influence on their financial development in the long run, but have a negative effect in the short run.
Journal: Emerging Markets Finance and Trade
Pages: 110-122
Issue: S3
Volume: 49
Year: 2013
Month: 7
Keywords: China-Latin America, financial development, foreign trade, pooled mean group estimator, trade openness
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S3:p:110-122




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 5
Volume: 49
Year: 2013
Month: 9
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G6Q6304644221535
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:5:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Viviana Fernandez
Author-X-Name-First: Viviana
Author-X-Name-Last: Fernandez
Title: Profitability of Chile's Defined-Contribution-Based Pension System During the Multifund Era
Abstract:
 This paper analyzes the profitability of Chile's retirement multifund system—funds A, B, C, D, and E—since its launch in 2002. The analysis shows that the rates of return on the funds are highly correlated across pension fund administrators (PFAs) and that risk-adjusted returns on these funds may not exceed those on domestic fixed- or variable-income indices. The paper also explores the existence of herding. Specifically, Granger causality tests show that leaders may significantly influence the benchmark in fund C, whereas PFAs' asset allocations in funds A and E are more likely to reflect past changes in the benchmark.
Journal: Emerging Markets Finance and Trade
Pages: 4-25
Issue: 5
Volume: 49
Year: 2013
Month: 9
Keywords: herding, pension funds, portfolio allocation
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Template-Type: ReDIF-Article 1.0
Author-Name: Marjan Petreski
Author-X-Name-First: Marjan
Author-X-Name-Last: Petreski
Title: Southeastern European Trade Analysis: A Role for Endogenous CEFTA-2006?
Abstract:
 The objective of this paper is to analyze the impact the Central European Free Trade Agreement of 2006 (CEFTA-2006) has had on trade and provide quantitative comparison with the original CEFTA and with trade liberalization under the EU integration process. The paper belongs to the strand of literature analyzing a free trade agreement in a gravity framework but treating the agreement as being potentially endogenous. The empirical evidence suggests that CEFTA-2006 exerted a positive, significant, and large effect on trade in Southeast Europe. This finding can be largely attributed to the distracted trade flows in the region over the 1990s. The effect of CEFTA-2006 has been estimated to be larger than the effect of the stabilization and association agreements. This counteracts the concern that the EU and the Southeastern European countries formed a "hub-and-spoke" structure in terms of trade.
Journal: Emerging Markets Finance and Trade
Pages: 26-44
Issue: 5
Volume: 49
Year: 2013
Month: 9
Keywords: CEFTA-2006, stabilization and association agreements, trade agreements' endogeneity
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Template-Type: ReDIF-Article 1.0
Author-Name: Selim Elekdag
Author-X-Name-First: Selim
Author-X-Name-Last: Elekdag
Author-Name: Yiqun Wu
Author-X-Name-First: Yiqun
Author-X-Name-Last: Wu
Title: Rapid Credit Growth in Emerging Markets: Boon or Boom-Bust?
Abstract:
 Episodes of rapid credit growth, especially credit booms, tend to end abruptly, typically in the form of financial crises. This paper presents the findings of a comprehensive event study focusing on sixty credit booms across emerging markets. The build-up of credit booms across emerging markets seems to be characterized by loose monetary policy stances, with domestic policy rates below trend during the prepeak phase of credit booms. While credit booms are associated with episodes of large capital inflows, international interest rates (a proxy for global liquidity) are virtually flat during these periods. Therefore, although external factors such as global liquidity conditions matter, and possibly increasingly so over time, domestic factors (especially monetary policy) also appear to be tightly associated with real credit growth across emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 45-62
Issue: 5
Volume: 49
Year: 2013
Month: 9
Keywords: boom-bust cycles, credit, credit booms, emerging markets, financial crises
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Template-Type: ReDIF-Article 1.0
Author-Name: Isabel Abinzano
Author-X-Name-First: Isabel
Author-X-Name-Last: Abinzano
Author-Name: Luis Muga
Author-X-Name-First: Luis
Author-X-Name-Last: Muga
Author-Name: Rafael Santamaría
Author-X-Name-First: Rafael
Author-X-Name-Last: Santamaría
Title: Does Default Probability Matter in Latin American Emerging Markets?
Abstract:
 We analyze the impact of default probability in four leading Latin American stock markets: Argentina, Brazil, Chile, and Mexico. We find no positive default-risk premium except in the case of Brazil, and in fact we find a negative risk premium for Argentina and Mexico. The latter effect tends to fade when the analysis accounts for size and book-to-market variables. Although we find no size effect in any of the markets considered, the book-to-market effect is very strong in all of them, and our results reveal a consistent relationship, analogous to that found in more developed markets, between default probability and the size and book-to-market variables.
Journal: Emerging Markets Finance and Trade
Pages: 63-81
Issue: 5
Volume: 49
Year: 2013
Month: 9
Keywords: book to market, default probability, emerging markets, size
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:5:p:63-81




Template-Type: ReDIF-Article 1.0
Author-Name: Chengsi Zhang
Author-X-Name-First: Chengsi
Author-X-Name-Last: Zhang
Title: Inflation Dynamics and an Extended New Keynesian Phillips Curve for China
Abstract:
 This paper shows that the error term in the stylized New Keynesian Phillips curve (NKPC) model for China is significantly serially correlated. We propose an extended NKPC model for China, which can be easily rationalized in terms of sticky-price setting of backward-looking firms. Empirical results show that further lags of inflation are needed in the hybrid specification of the NKPC in order to rule out serial correlation; forward-looking behavior has a relatively larger impact on inflation dynamics than backward-looking behavior; and conventional output measures remain valid inflation forces in the extended model. Open economy augmentations, nevertheless, indicate that neither exchange rate nor import prices exert a significant impact on inflation in China.
Journal: Emerging Markets Finance and Trade
Pages: 82-98
Issue: 5
Volume: 49
Year: 2013
Month: 9
Keywords: inflation dynamics, new Keynesian Phillips curve, serial correlation
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:5:p:82-98




Template-Type: ReDIF-Article 1.0
Author-Name: Nusret Cakici
Author-X-Name-First: Nusret
Author-X-Name-Last: Cakici
Author-Name: Kudret Topyan
Author-X-Name-First: Kudret
Author-X-Name-Last: Topyan
Title: Return Predictability of Turkish Stocks: An Empirical Investigation
Abstract:
 Employing the portfolio method and cross-sectional regressions, this paper provides a comprehensive analysis of stock return predictability in Turkey from January 1997 to July 2011. In the risk-related predictors, we found predictive power for beta, total volatility, and idiosyncratic volatility. The "cheapness" variable, book-to-market ratio, is the most important return predictor for the stocks traded on the Istanbul Stock Exchange (now part of the Borsa Istanbul). Grouping the stocks as small and large according to the median value of the market capitalization of the stocks adds important insights to the analysis. Our results show the set of large stocks on the Istanbul Stock Exchange to be the least predictable set of stocks.
Journal: Emerging Markets Finance and Trade
Pages: 99-119
Issue: 5
Volume: 49
Year: 2013
Month: 9
Keywords: book-to-market ratio, Istanbul Stock Exchange, momentum, stock cheapness, stock return predictors
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:5:p:99-119




Template-Type: ReDIF-Article 1.0
Author-Name: Alice Y. Ouyang
Author-X-Name-First: Alice Y. 
Author-X-Name-Last: Ouyang
Author-Name: Jie Li
Author-X-Name-First: Jie
Author-X-Name-Last: Li
Title: Too Big to Change: The Stabilizing Force of Reserve Currency Preferences in the International Monetary System
Abstract:
 We empirically investigate whether reserve currency preferences have been a source of stability for the international monetary system. Our findings suggest that reserve-hoarding countries, especially the emerging/developing countries, tend to adopt a stabilizing diversification strategy in their reserve portfolio allocation, buying (selling) assets denominated in depreciated (appreciated) currency. The result is robust to both International Monetary Fund and Bank for International Settlements measures of quantity changes of reserve shares. The stabilizing diversification strategy reveals the fact that reserve-hoarding countries may fall into a "dollar trap," and escaping from it may cause more valuation loss of their existing reserve portfolios.
Journal: Emerging Markets Finance and Trade
Pages: 120-133
Issue: 5
Volume: 49
Year: 2013
Month: 9
Keywords: active diversification, exchange rates, foreign reserves, portfolio strategy, stabilizing diversification
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Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: 
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Template-Type: ReDIF-Article 1.0
Author-Name: Chyi-Lun Chiou
Author-X-Name-First: Chyi-Lun
Author-X-Name-Last: Chiou
Author-Name: Mao-Wei Hung
Author-X-Name-First: Mao-Wei
Author-X-Name-Last: Hung
Author-Name: Pei-Gi Shu
Author-X-Name-First: Pei-Gi
Author-X-Name-Last: Shu
Title: Foreign Direct Investment in Emerging Markets: Bondholders' Perspective
Abstract:
 This study investigates the influence of Taiwan outward foreign direct investment (FDI) and location choices on yield spread. Evidence shows the amount of FDI located in developed economies is curvilinearly correlated with yield spread, consistent with the upstream-downstream argument. However, owing to cultural similarity and geographic proximity, the negative relationship between FDI and yield spread is found to be stronger in FDI in China than in FDI in the developed economies. Referring to information asymmetry we explore the impact of the choice to locate FDI in China on yield spread. Companies investing more in less-developed regions have higher yield spreads; however, this relationship is less pronounced for transparent companies.
Journal: Emerging Markets Finance and Trade
Pages: 5-16
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: at-issue yield spread, foreign direct investment (FDI), information asymmetry, location choice
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Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Chieh Wang
Author-X-Name-First: Ming-Chieh
Author-X-Name-Last: Wang
Author-Name: Ming Fang
Author-X-Name-First: Ming
Author-X-Name-Last: Fang
Author-Name: Jin-Kui Ye
Author-X-Name-First: Jin-Kui
Author-X-Name-Last: Ye
Title: Financial Integration of Large- and Small-Cap Stocks in Emerging Markets
Abstract:
 This study examines the financial integration of large- and small-cap stocks in twenty-three emerging markets to determine their degree of market integration with the world market. The international asset pricing model cannot be rejected for most large-cap stock portfolios, but it is rejected for small-cap stock portfolios. The findings also demonstrate that super-large-cap stocks have the fewest pricing errors and their global financial integration has increased in recent years. In sum, the empirical results indicate that global market integration is primarily associated with the super-large-cap stocks of large emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 17-31
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: asset pricing, emerging markets, financial integration
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Template-Type: ReDIF-Article 1.0
Author-Name: Hsia Hua Sheng
Author-X-Name-First: Hsia Hua
Author-X-Name-Last: Sheng
Author-Name: Adriana Bruscato Bortoluzzo
Author-X-Name-First: Adriana Bruscato
Author-X-Name-Last: Bortoluzzo
Author-Name: Gisler André Pereira dos Santos
Author-X-Name-First: Gisler André Pereira
Author-X-Name-Last: dos Santos
Title: Impact of Trade Credit on Firm Inventory Investment During Financial Crises: Evidence from Latin America
Abstract:
 This paper studies whether trade credit is used as a substitute for bank credit in crisis periods in Latin America. The sample is composed of firms listed on the Argentine, Brazilian, and Mexican stock exchanges from 1994 to 2009. For the small firms, the substitution hypothesis was not rejected. However, this hypothesis was not confirmed homogeneously for all the firms during the crises. Unlike Brazilian and Argentine firms, Mexican firms use more cash reserves than trade credit. The big firms tend to use other financing sources. A pattern of trade credit use by sector has not yet been found.
Journal: Emerging Markets Finance and Trade
Pages: 32-52
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: corporate financing, Latin America, trade credit, working-capital management
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Template-Type: ReDIF-Article 1.0
Author-Name: Chiu-Lan Chang
Author-X-Name-First: Chiu-Lan
Author-X-Name-Last: Chang
Author-Name: Paul L. Hsueh
Author-X-Name-First: Paul L.
Author-X-Name-Last: Hsueh
Title: An Investigation of the Flight-to-Quality Effect: Evidence from Asia-Pacific Countries
Abstract:
 Flight to quality has long been a feature of international financial markets when there are extreme variations in the negative relationship between returns on stocks and sovereign bond indices. This study analyzes the existence of a flight-to-quality effect from stocks to long-term government bonds in five Asia-Pacific countries by modeling a dependency structure from a copula-based perspective. The authors employ various copula functions to examine the degrees of dependence on symmetric and asymmetric structures in these countries. They find a negative relationship between stock and bond returns, that there is a flight to quality in the Asia-Pacific region, and that it intensified during the financial crisis period, indicating that investors considered government bonds to be safer financial instruments than stocks during this period. Furthermore, the authors show that the level of economic freedom in a country affects the tendency toward flight to quality.
Journal: Emerging Markets Finance and Trade
Pages: 53-69
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: copula, dependence structure, flight to quality, sovereign bond
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Template-Type: ReDIF-Article 1.0
Author-Name: Chulwoo Han
Author-X-Name-First: Chulwoo
Author-X-Name-Last: Han
Author-Name: Inhyung Lee
Author-X-Name-First: Inhyung
Author-X-Name-Last: Lee
Author-Name: Chae Woo Nam
Author-X-Name-First: Chae Woo
Author-X-Name-Last: Nam
Title: Characteristic Factors and Fund Evaluation in Korea
Abstract:
 Factors that govern common variations in equity returns in Korea are identified and the authors examine whether they are priced. Size and the ratio of book value to price turn out to be the determinants of common variations, and these variations appear to be priced. The momentum factor shows mixed results depending on the samples, while macroeconomic factors consistently fail to group stocks in any meaningful manner. These factors are utilized to assess the performance of the retail equity funds. Characteristic-based performance analysis reveals that high risk-adjusted excess returns are accompanied by high selection and timing abilities of fund managers. Risk-adjusted returns are more persistent than unadjusted returns.
Journal: Emerging Markets Finance and Trade
Pages: 70-80
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: attribution analysis, characteristic factors, Korean retail equity fund, performance evaluation
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Template-Type: ReDIF-Article 1.0
Author-Name: Hyeyoen Kim
Author-X-Name-First: Hyeyoen
Author-X-Name-Last: Kim
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: Forecasting Exchange Rate from Combination Taylor Rule Fundamental
Abstract:
 This study examines the forecasting performance of the Taylor rule on the exchange rate when there is uncertainty in the structural breaks in a small open economy. Using the combination window method, which considers the uncertainty of the size of the estimation window, we find that the out-of-sample forecasting performance of our approach is better than that of other benchmark models in the U.S. dollar-Korean won exchange rate. This finding indicates that the expected exchange rate is influenced by the capital mobility between small and large open economies, which is driven by the dynamic interactions of monetary policies between the two countries, and that the forecasting outcome is sensitive to the estimation window size and to whether or not the window reflects changes in the policy regime.
Journal: Emerging Markets Finance and Trade
Pages: 81-92
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: combination window, exchange rates, out-of-sample forecasting, Taylor rules
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:81-92




Template-Type: ReDIF-Article 1.0
Author-Name: Chanyoung Eom
Author-X-Name-First: Chanyoung
Author-X-Name-Last: Eom
Author-Name: Hyoung-Goo Kang
Author-X-Name-First: Hyoung-Goo
Author-X-Name-Last: Kang
Author-Name: Soo-Hyun Kim
Author-X-Name-First: Soo-Hyun
Author-X-Name-Last: Kim
Title: Tactical Asset Allocation and Stock Issuance in the Korean Stock Market
Abstract:
 Stock issuance predicts future stock returns in the Korean market. This creates profitable trading opportunities. Abnormal returns exist in the zero-cost portfolio that short the firms issuing large numbers of shares and longs those issuing small numbers of shares. Their average abnormal return is 12 percent per annum, which is highly significant even after controlling for market, size, value, and momentum factors as well as transaction costs. The authors suggest the possibility of fixed costs in equity market timing. Only the sizable benefit from market timing over fixed costs motivates firms to increase net equity shares.
Journal: Emerging Markets Finance and Trade
Pages: 93-103
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: abnormal return, market timing, misvaluation, stock issuance
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:93-103




Template-Type: ReDIF-Article 1.0
Author-Name: Sang Koo Kang
Author-X-Name-First: Sang Koo
Author-X-Name-Last: Kang
Author-Name: Haksoon Kim
Author-X-Name-First: Haksoon
Author-X-Name-Last: Kim
Title: <i>R</i>-Squared and Dividend Payout: Evidence from the Korean Market
Abstract:
 The authors investigate <i>R</i><sup>2</sup> and its relationship with dividend payouts in the Korean stock market. <i>R</i><sup>2</sup> is derived from the market model regression. Their results are consistent with the previous literature on corporate governance and dividend payouts: they find that <i>R</i><sup>2</sup> is higher for business group <i>(chaebol)</i> firms and that there is a negative relationship between <i>R</i><sup>2</sup> and dividend payout. However, the relationship is not stronger for the business group firms than for the non-business group firms. The findings elucidate the relationship between <i>R</i><sup>2</sup> and dividend payout policy in the United States.
Journal: Emerging Markets Finance and Trade
Pages: 104-118
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: corporate governance, dividend payout, <i>R</i><sup>2</sup>
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:104-118




Template-Type: ReDIF-Article 1.0
Author-Name: Chengsi Zhang
Author-X-Name-First: Chengsi
Author-X-Name-Last: Zhang
Author-Name: Butan Zhang
Author-X-Name-First: Butan
Author-X-Name-Last: Zhang
Author-Name: Zhe Lu
Author-X-Name-First: Zhe
Author-X-Name-Last: Lu
Author-Name: Yasutomo Murasawa
Author-X-Name-First: Yasutomo
Author-X-Name-Last: Murasawa
Title: Output Gap Estimation and Monetary Policy in China
Abstract:
 Using the Bayesian multivariate Beveridge-Nelson decomposition method, this paper estimates China's output gap based on a multivariate dynamic model featuring distinct interactions among real output, inflation, money, and the exchange rate in China during the period 1980-2010. The authors compare the statistical nature and potential forecasting effects of the resulting multivariate gap measure on monetary policy with those of the output gap measures based on univariate models. The empirical results show that only the measure based on the multivariate system significantly predicts monetary policy, which indicates that the output gap estimated by the multivariate system contains more information than the traditional measures for macroeconomic policy adjustments do.
Journal: Emerging Markets Finance and Trade
Pages: 119-131
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: Bayesian estimator, monetary policy, output gap
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:119-131




Template-Type: ReDIF-Article 1.0
Author-Name: Tung-Hao Lee
Author-X-Name-First: Tung-Hao
Author-X-Name-Last: Lee
Author-Name: Shu-Hwa Chih
Author-X-Name-First: Shu-Hwa
Author-X-Name-Last: Chih
Title: Does Financial Regulation Enhance or Impede the Efficiency of China's Listed Commercial Banks? A Dynamic Perspective
Abstract:
 Unlike studies investigating only the characteristics of bank regulation that affect the concurrent static efficiency of banks, this paper uses a dynamic, slacks-based measure to study the persistent and intertemporal effects on the dynamic efficiency of banks in the long run. The authors find the following main results. First, the cost-to-income ratio has a significant negative effect on bank efficiency. Second, banks having higher loan-to-deposit and current ratios are more efficient than those with lower ratios. Third, the capital adequacy, provision coverage, and loan-loss provision ratios do not significantly affect bank efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 132-149
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: China listed commercial banks, data envelopment analysis, financial regulation, static and dynamic efficiency
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:132-149




Template-Type: ReDIF-Article 1.0
Author-Name: Shiqing Xie
Author-X-Name-First: Shiqing
Author-X-Name-Last: Xie
Author-Name: Xichen Huang
Author-X-Name-First: Xichen
Author-X-Name-Last: Huang
Title: An Empirical Analysis of the Volatility in the Open-End Fund Market: Evidence from China
Abstract:
 This paper applies a set of GARCH models to investigate the three characteristics, including time persistence, leverage effect, and risk premium, of the volatilities of the four China Securities Index (CSI) fund indices. This study made the following four findings: (1) a strong ARCH effect exists in the returns; (2) time persistence is significant in all the CSI fund indices, namely, "stock index," "hybrid index," and "bond index" in descending order of significance; (3) the leverage effect is not statistically significant, yet there may be a positive leverage effect on the bond funds; (4) a risk premium effect exists in the open-end fund market, especially in the bond fund market.
Journal: Emerging Markets Finance and Trade
Pages: 150-162
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: leverage effect, open-end fund, persistence, risk premium, volatility
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:150-162




Template-Type: ReDIF-Article 1.0
Author-Name: Yih Jeng
Author-X-Name-First: Yih
Author-X-Name-Last: Jeng
Author-Name: Chen-Ju Lee
Author-X-Name-First: Chen-Ju
Author-X-Name-Last: Lee
Author-Name: Shyh-Weir Tzang
Author-X-Name-First: Shyh-Weir
Author-X-Name-Last: Tzang
Title: Application of a Multifactor Model in Enhanced Index Fund: Performance Analysis in China
Abstract:
 The paper aims to explore the potential for outperformance of the enhanced index fund constructed using a multifactor model that has been widely used by practitioners. By presenting an empirical implementation of the factor model to construct the enhanced index fund based on the component stocks of the Shanghai Stock Exchange 50 (SSE50) index, the paper also identifies significant factors to explain excess return on securities in the Chinese market. By introducing an ad hoc weight-allocating approach, the paper constructs the enhanced index fund that can deliver a higher active return and information ratio and lower tracking error through an optimal mix of the benchmark weight and renewal rate obtained from backtesting results.
Journal: Emerging Markets Finance and Trade
Pages: 163-183
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: enhanced index fund, factor model, information ratio, principal component
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:163-183




Template-Type: ReDIF-Article 1.0
Author-Name: Huey-Ling Shiau
Author-X-Name-First: Huey-Ling
Author-X-Name-Last: Shiau
Author-Name: Chen-Jui Huang
Author-X-Name-First: Chen-Jui
Author-X-Name-Last: Huang
Author-Name: Fong-Chyi Chen
Author-X-Name-First: Fong-Chyi
Author-X-Name-Last: Chen
Title: International Involvement, Target Market Selection, and Consolidated Performance: A Firm-Level Analysis of Taiwan's FDI in China
Abstract:
 This paper assesses the sensitivity of consolidated corporate performance to two aspects of foreign direct investment (FDI): international involvement and target market selection. Empirical evidence from China-bound FDI by Taiwan's listed companies between 2000 and 2010 is summarized as follows. First, under the internalization of FDI, performance tends to rise with intensity of FDI activity. Second, profitability appears higher as FDI targets the export market outside China. Third, synergetic performance is created mainly through improved efficiency in resource management rather than increased sales, which indicates effective cost control is crucial for successful FDI in emerging markets such as China.
Journal: Emerging Markets Finance and Trade
Pages: 184-196
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: China, FDI, internationalization, performance, Taiwan, target market
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:184-196




Template-Type: ReDIF-Article 1.0
Author-Name: Biao Guo
Author-X-Name-First: Biao
Author-X-Name-Last: Guo
Author-Name: Qian Han
Author-X-Name-First: Qian
Author-X-Name-Last: Han
Author-Name: Maonan Liu
Author-X-Name-First: Maonan
Author-X-Name-Last: Liu
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: A Tale of Two Index Futures: The Intraday Price Discovery and Volatility Transmission Processes Between the China Financial Futures Exchange and the Singapore Exchange
Abstract:
 This is the first study to examine the intraday price discovery and volatility transmission processes between the Singapore Exchange and the China Financial Futures Exchange. Using one- and five-minute high-frequency data from May to November 2011, the authors find that the Chinese Securities Index 300 index futures dominate Singapore's A50 index futures in both intraday price discovery and intraday volatility transmission. However, A50 futures contracts also make a substantial contribution (26-37 percent) to the price discovery process. These results have important implications for both traders and policymakers.
Journal: Emerging Markets Finance and Trade
Pages: 197-212
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: A50, CSI300, futures market, information share, price discovery, volatility transmission
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=BR5412H11R960073
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:197-212




Template-Type: ReDIF-Article 1.0
Author-Name: Syouching Lai
Author-X-Name-First: Syouching
Author-X-Name-Last: Lai
Author-Name: Teng Yuan Cheng
Author-X-Name-First: Teng Yuan
Author-X-Name-Last: Cheng
Author-Name: Hung Chih Li
Author-X-Name-First: Hung Chih
Author-X-Name-Last: Li
Author-Name: Sheng-Peng Chien
Author-X-Name-First: Sheng-Peng
Author-X-Name-Last: Chien
Title: Dynamic Interactions Among Macroeconomic Variables and Stock Indexes in Taiwan, Hong Kong, and China
Abstract:
 This study analyzes dynamic interactions among macroeconomic variables and the stock markets of Taiwan, Hong Kong, and China by incorporating the long-term and short-term comovements, which can shed some light on the long-term and short-term market efficiency/inefficiency in the region. The number of common cycles is investigated in these markets and each stock index series is decomposed into its trend and cyclical components. The authors observe that foreign stock markets have greater influence on the domestic market than domestic macroeconomic variables do. This implies that policymakers need to consider not only macroeconomic variables but also the effects of markets on one another when markets are integrated.
Journal: Emerging Markets Finance and Trade
Pages: 213-235
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: common cycle, comovement, cyclical, dynamic interactions, macroeconomic variables, trend
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:213-235




Template-Type: ReDIF-Article 1.0
Author-Name: Chao Chen
Author-X-Name-First: Chao
Author-X-Name-Last: Chen
Author-Name: Song Zhu
Author-X-Name-First: Song
Author-X-Name-Last: Zhu
Title: Financial Reporting Quality, Debt Maturity, and the Cost of Debt: Evidence from China
Abstract:
 This paper investigates the influence of different financing channels—bond issuance or bank loans—as well as debt maturity and the quality of financial reporting on the cost of debt in China. The authors find that conservative accounting is an important characteristic of high-quality financial reporting that can reduce the cost of longer maturity debt such as bank loans and bonds. Even state-owned enterprises, which have fewer financial constraints than non-state-owned enterprises, benefit from accounting conservatism's ability to reduce financial costs. Moreover, the findings indicate that bond investors are concerned about the issuer's fundamentals, while banks are more likely to focus on the operation and bankruptcy risk of borrowers.
Journal: Emerging Markets Finance and Trade
Pages: 236-253
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: conservative accounting, debt maturity, financing channel, financing cost
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:236-253




Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Chung Yen
Author-X-Name-First: Shih-Chung
Author-X-Name-Last: Yen
Title: What Causes Fraudulent Financial Reporting? Evidence Based on H Shares
Abstract:
 This paper investigates fraudulent financial reporting (FFR) in the China-based companies listed on the Hong Kong Stock Exchange (called H shares) in which Chinese government officials have a high degree of involvement and heavy impact on audit quality and corporate governance. It intends to find out the causes of FFR, the opportunities that make such reporting possible, and whether the presence of politically connected executives creates an environment that is conducive to FFR. The results show that the corporate environment most likely to lead to FFR is characterized by earnings management accounting practices.
Journal: Emerging Markets Finance and Trade
Pages: 254-266
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: audit quality, corporate governance, earnings management, fraudulent reporting, political connections
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L5N5777841K57T22
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:254-266




Template-Type: ReDIF-Article 1.0
Author-Name: Li-Yu Chen
Author-X-Name-First: Li-Yu
Author-X-Name-Last: Chen
Author-Name: Chi-Feng Wang
Author-X-Name-First: Chi-Feng
Author-X-Name-Last: Wang
Title: The Impact of Corporate Diversification on the Long-Term Stock Return of R&D Increase Announcements
Abstract:
 Prior studies have tested the long-term performance of research and development (R&D) spending, but the results are inconclusive. This study extends this line of research and explores the impact of corporate diversification on the long-term stock returns on R&D increase announcements. After controlling for the important variables in explaining the performance of R&D increases, a significantly negative association is found between the degree of corporate diversification and the long-run stock returns on R&D increase announcements. This result suggests that the costs of corporate diversification dominate the benefits regarding corporate diversification, and highlight the important effect a firm's diversification strategy has on the market valuation of R&D innovation.
Journal: Emerging Markets Finance and Trade
Pages: 267-279
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: corporate diversification, innovation, long-term stock returns, R&D increase announcement
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:267-279




Template-Type: ReDIF-Article 1.0
Author-Name: Lihuei Lan
Author-X-Name-First: Lihuei
Author-X-Name-Last: Lan
Author-Name: Luke Lin
Author-X-Name-First: Luke
Author-X-Name-Last: Lin
Author-Name: Wenyuan Lin
Author-X-Name-First: Wenyuan
Author-X-Name-Last: Lin
Author-Name: Shuangshii Chuang
Author-X-Name-First: Shuangshii
Author-X-Name-Last: Chuang
Title: Theoretical and Empirical Evidence for the Impact of Cross-Border Production Sharing on Exchange Rate Pass-Through
Abstract:
 This paper uses the theoretical model created by Ghosh (2009) to analyze the extent of exchange rate pass-through (ERPT) for traditional trade and different production sharing cases. Comparing the differences among these scenarios reveals that production sharing could be a reason for the continual decline in ERPT. Furthermore, empirical evidence from Taiwan indicates that under production sharing, the pricing-to-market for intermediate goods exporters and the currency fluctuation in the home country of end products exporters will further influence the magnitude of the decline in ERPT.
Journal: Emerging Markets Finance and Trade
Pages: 280-300
Issue: S4
Volume: 49
Year: 2013
Month: 9
Keywords: exchange rate pass-through, pricing to market, production sharing
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S4:p:280-300




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 3
Issue: 6
Volume: 49
Year: 2013
Month: 11
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=N250824G7210003H
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:6:p:3




Template-Type: ReDIF-Article 1.0
Author-Name: Eleonora Cavallaro
Author-X-Name-First: Eleonora
Author-X-Name-Last: Cavallaro
Author-Name: Piero Esposito
Author-X-Name-First: Piero
Author-X-Name-Last: Esposito
Author-Name: Alessia Matano
Author-X-Name-First: Alessia
Author-X-Name-Last: Matano
Author-Name: Marcella Mulino
Author-X-Name-First: Marcella
Author-X-Name-Last: Mulino
Title: Technological Catching Up, Quality of Exports, and Competitiveness: A Sectoral Perspective
Abstract:
 We analyze the relationship between Central and Eastern European countries (CEEC) industry-level competitiveness and technological catching up induced by economic integration with European Union (EU) economies. A theoretical dynamic setup is developed in which high-skill firms gain market share in "quality dominated" markets, whereas low-skill firms face price competition for their exports. We run econometric estimations for bilateral trade between CEEC and EU economies over 2000-2007. We first test the assumption that the unit value ratio is a good proxy for quality in trade and then use the fitted unit value ratio to estimate the role of preference for quality in CEEC market share changes. Estimations support the results of the theoretical model.
Journal: Emerging Markets Finance and Trade
Pages: 4-21
Issue: 6
Volume: 49
Year: 2013
Month: 11
Keywords: international competitiveness, knowledge spillovers, product quality, vertical innovation
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:6:p:4-21




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Murat Fis
Author-X-Name-First: Ahmet Murat
Author-X-Name-Last: Fis
Author-Name: Dilek Çetindamar
Author-X-Name-First: Dilek
Author-X-Name-Last: Çetindamar
Title: Start-Up Information Search Practices: The Case of Turkey
Abstract:
 Information search may be especially crucial in an emerging economy context where gaps in knowledge are magnified due to the limited availability, accessibility, and quality of sources. Under the framework of social embeddedness, we observe the role of previous entrepreneurial experience in information search conducted during start-up. The impact of information search on future growth is also explored. Based on an empirical study of 172 Turkish entrepreneurs, the results indicate that (1) first-time entrepreneurs search more intensely, (2) first-time entrepreneurs utilize a greater number of formal resources, and (3) the intensity of information search is positively related with future growth.
Journal: Emerging Markets Finance and Trade
Pages: 22-36
Issue: 6
Volume: 49
Year: 2013
Month: 11
Keywords: emerging economy, entrepreneurial experience, information search, start-up, Turkey
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:6:p:22-36




Template-Type: ReDIF-Article 1.0
Author-Name: Dayong Zhang
Author-X-Name-First: Dayong
Author-X-Name-Last: Zhang
Author-Name: Hong Cao
Author-X-Name-First: Hong
Author-X-Name-Last: Cao
Title: Sectoral Responses of the Chinese Stock Market to International Oil Shocks
Abstract:
 We investigate the relationship between international oil shocks and the sectoral dynamics of the Chinese stock market. Our empirical results show that the behavior and response to international oil shocks by the Chinese stock market differ significantly from the behavior and responses of the European stock market as documented in the literature. In China, only the mining industry has a strong and consistent link with international oil shocks when systematic risk factors are controlled. There is no clear evidence of asymmetries in China's sectoral stock-oil relationship.
Journal: Emerging Markets Finance and Trade
Pages: 37-51
Issue: 6
Volume: 49
Year: 2013
Month: 11
Keywords: asymmetric response, Granger causality, oil price, sectoral stock returns, three-factor model
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:6:p:37-51




Template-Type: ReDIF-Article 1.0
Author-Name: Song Jun
Author-X-Name-First: Song
Author-X-Name-Last: Jun
Author-Name: Luo Rui
Author-X-Name-First: Luo
Author-X-Name-Last: Rui
Title: Manipulation Prevention and Hedging Effectiveness: Optimal Settlement Window Design for CSI 300 Stock Index Futures
Abstract:
 We empirically evaluate the current 120-minute settlement window for China Securities Index 300 Stock Index Futures. We assume that an exchange chooses the optimal settlement window to maximize its profit by increasing its revenue from trading volume and by curtailing its surveillance expenditure via designing contract specifications. Given that a longer settlement window may reduce the hedging effectiveness but result in cost savings, we find that the optimal settlement window is located between zero and forty minutes under varied unit investigation costs and suggest that it may be more appropriate to set a shorter settlement window.
Journal: Emerging Markets Finance and Trade
Pages: 52-66
Issue: 6
Volume: 49
Year: 2013
Month: 11
Keywords: hedging effectiveness, manipulation risk, optimal settlement window
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:6:p:52-66




Template-Type: ReDIF-Article 1.0
Author-Name: Lirong Liu
Author-X-Name-First: Lirong
Author-X-Name-Last: Liu
Author-Name: Hiranya K. Nath
Author-X-Name-First: Hiranya K.
Author-X-Name-Last: Nath
Title: Information and Communications Technology and Trade in Emerging Market Economies
Abstract:
 We examine the effects of information and communications technology (ICT) on international trade in emerging markets. Using panel data for forty emerging market economies (EMEs) from 1995 to 2010, we estimate fixed effects models of exports and imports with ICT as the main explanatory variable of interest. The empirical results overwhelmingly suggest that Internet subscriptions and Internet hosts have significant positive effects on both exports and imports in EMEs. Thus, the trade-enhancing effect of ICT does not depend on ICT infrastructure or ICT capability per se but on its use. This result is robust to a number of sensitivity checks.
Journal: Emerging Markets Finance and Trade
Pages: 67-87
Issue: 6
Volume: 49
Year: 2013
Month: 11
Keywords: emerging market economy (EME), exports, imports, information and communications technology (ICT), Internet bandwidth, Internet hosts, Internet subscriptions, telecom investment
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:6:p:67-87




Template-Type: ReDIF-Article 1.0
Author-Name: Jounghyeon Kim
Author-X-Name-First: Jounghyeon
Author-X-Name-Last: Kim
Title: Remittances and Currency Crisis: The Case of Developing and Emerging Countries
Abstract:
 Employing the first-generation currency crisis model of Flood and Garber (1984), I explore the financial effects of migrants' remittances on the economies of developing and emerging countries in a currency crisis. The model implies that remittances can contribute to a reduction in the likelihood of a currency crisis and appreciation in foreign exchange rates via the promotion of foreign exchange reserves. Panel estimation with twelve developing and emerging countries that previously experienced financial crises confirms the implications, suggesting that migrants' remittances can play a significant role in mitigating financial constraints and thus contribute to financial stability.
Journal: Emerging Markets Finance and Trade
Pages: 88-111
Issue: 6
Volume: 49
Year: 2013
Month: 11
Keywords: currency crisis, foreign exchange rate and reserves, migrants' remittances
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:6:p:88-111




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Imam
Author-X-Name-First: Patrick
Author-X-Name-Last: Imam
Author-Name: Kangni Kpodar
Author-X-Name-First: Kangni
Author-X-Name-Last: Kpodar
Title: Islamic Banking: How Has It Expanded?
Abstract:
 We investigate the determinants of the pattern of Islamic bank expansion around the world using country-level data for 1992-2006. The analysis illustrates that income per capita, share of Muslims in the population, and economic integration with Middle Eastern countries are linked to the development of Islamic banking. Interest rates have a negative impact, while the quality of institutions is not found to be significant. The September 11, 2001, attacks were not a major factor in the expansion of Islamic banking, but they coincided with rising oil prices. Islamic banks also appear to be complements to, rather than substitutes for, conventional banks.
Journal: Emerging Markets Finance and Trade
Pages: 112-137
Issue: 6
Volume: 49
Year: 2013
Month: 11
Keywords: Islamic banking, Middle East, Poisson regression, Tobit model
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=22V27KJ1V167Q734
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:6:p:112-137




Template-Type: ReDIF-Article 1.0
Author-Name: Gökhan Özertan
Author-X-Name-First: Gökhan
Author-X-Name-Last: Özertan
Title: Guest Editor's Introduction
Abstract:
Journal: Emerging Markets Finance and Trade
Pages: 4-6
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T057814037783874
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:4-6




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Faruk Aysan
Author-X-Name-First: Ahmet Faruk
Author-X-Name-Last: Aysan
Author-Name: Mustafa Disli
Author-X-Name-First: Mustafa
Author-X-Name-Last: Disli
Author-Name: Koen Schoors
Author-X-Name-First: Koen
Author-X-Name-Last: Schoors
Title: Bank Competition and Outreach: Evidence from Turkey
Abstract:
 In light of the importance of banking sector outreach and given concerns that competition may adversely affect it, this study explores the empirical linkage between banking structure and outreach in Turkey for the period 1988-2010. Bank-, province-, and bank-province-level estimation results indicate that competition is in general conducive to the outreach of banks. We do not find evidence for collusive behavior among banks when they have multimarket contact. At the province level, the presence of foreign-owned banks is associated with higher outreach, while at the bank-province level, we observe that outreach of domestic banks exceeds that of foreign banks. Together, these results suggest that there are procompetitive spillover effects from foreign banks to their domestic counterparts.
Journal: Emerging Markets Finance and Trade
Pages: 7-30
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: bank competition, bank outreach, multimarket contact
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:7-30




Template-Type: ReDIF-Article 1.0
Author-Name: Resul Aydemir
Author-X-Name-First: Resul
Author-X-Name-Last: Aydemir
Title: Competition and Collusion in the Turkish Banking Industry
Abstract:
 I consider the Turkish banking industry, which is dominated by a few large banks, and taking up a conjectural variation approach, I estimate a structural model to examine the market conduct of the largest banks for the period 1988-2009. The estimation results suggest that Turkish banks colluded in the loan market during the sample period. This evidence demonstrates that there is a conflict between market concentration and competition in the Turkish banking industry. Thus, in order to protect competition, regulatory agencies should be cautious of efforts that may increase concentration in the banking industry.
Journal: Emerging Markets Finance and Trade
Pages: 31-40
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: competition, conjectural variation, market structure, Turkish banking
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:31-40




Template-Type: ReDIF-Article 1.0
Author-Name: G. Gulsun Akin
Author-X-Name-First: G. Gulsun
Author-X-Name-Last: Akin
Author-Name: Ahmet Faruk Aysan
Author-X-Name-First: Ahmet Faruk
Author-X-Name-Last: Aysan
Author-Name: Sebnem Ileri
Author-X-Name-First: Sebnem
Author-X-Name-Last: Ileri
Author-Name: Levent Yildiran
Author-X-Name-First: Levent
Author-X-Name-Last: Yildiran
Title: Demand and Competition Analysis in the Turkish Deposit and Credit Markets
Abstract:
 By estimating discrete choice multinomial logit demand models, we unveil consumer preferences in the Turkish deposit and credit markets in the 2002-9 period. We find that consumers prefer banks with larger networks and more efficient technologies in both markets. Borrowers are very responsive to interest rates, but depositors are not. We conclude that monopolistic competition prevails in both markets. However, banks' market power in the credit market is much lower than in the deposit market. Moreover, the comparison of demand elasticities in these two markets shows that credits will respond more than deposits to the taxes imposed on them, suggesting that loan provisions can be more effective than reserve requirements as a macroprudential policy tool to restrict credit growth.
Journal: Emerging Markets Finance and Trade
Pages: 41-58
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: discrete choice utility, elasticity, loan provisions, monopolistic competition, price competition, reserve requirements
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:41-58




Template-Type: ReDIF-Article 1.0
Author-Name: Orhan Erdem
Author-X-Name-First: Orhan
Author-X-Name-Last: Erdem
Author-Name: Ali Coşkun
Author-X-Name-First: Ali
Author-X-Name-Last: Coşkun
Author-Name: Hande Oruç
Author-X-Name-First: Hande
Author-X-Name-Last: Oruç
Title: A Survey-Based Analysis of the Housing Market in an Emerging Economy: The Turkish Case
Abstract:
 The authors analyze the dynamics of the housing market in Turkey from both the supply and the demand sides using cointegration analysis. Using a monthly survey, a "buying index" was created to measure housing demand. Construction permit data are used to measure the housing supply. Other variables include nominal interest rates, home prices, income, and construction costs. A vector error correction analysis reveals that shocks to any of the aforementioned variables have a predictable and permanent impact on the housing market and that interest rates play the most important role. The financial results presented here have important implications for the active intervention policies of the Central Bank of Turkey. To the best of the authors' knowledge, this is the first survey-based paper to simultaneously analyze both the demand and the supply sides of the housing market in Turkey.
Journal: Emerging Markets Finance and Trade
Pages: 59-79
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: cointegration, emerging markets, housing demand/supply, Turkey
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:59-79




Template-Type: ReDIF-Article 1.0
Author-Name: E. Nur Özkan-Günay
Author-X-Name-First: E. Nur
Author-X-Name-Last: Özkan-Günay
Author-Name: Zeynep N. Günay
Author-X-Name-First: Zeynep N.
Author-X-Name-Last: Günay
Author-Name: Gökhan Günay
Author-X-Name-First: Gökhan
Author-X-Name-Last: Günay
Title: The Impact of Regulatory Policies on Risk Taking and Scale Efficiency of Commercial Banks in an Emerging Banking Sector
Abstract:
 The recent global crisis has highlighted the role of prudent supervision and regulation in the financial system on both a national and a global scale. As an emerging market, the Turkish banking sector experienced the banking reform process almost a decade ago. The legal and institutional structure of the Turkish banking sector changed tremendously after the twin crises of 2000 and 2001. The aim of this study is to assess the impact of the regulatory policies on the efficiency of different-sized commercial banks in the Turkish banking sector during the period 2002-10. We implement a new approach in data envelopment analysis (DEA) that integrates lending quality and apply it to bank efficiency analysis. DEA is used to assess the long-term performance trend in the context of balance sheet and revenue approaches. Empirical results indicate that regulatory policies have a positive effect on the efficiency of banks. Large- and medium-size banks outperform medium-large and small banks. The notable finding is that the efficiency scores are much lower, and the global crisis more apparent, when nonperforming loans are integrated into the DEA Model.
Journal: Emerging Markets Finance and Trade
Pages: 80-98
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: DEA, emerging country, regulation, restructuring banking, scale efficiency, Turkey
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Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Faruk Aysan
Author-X-Name-First: Ahmet Faruk
Author-X-Name-Last: Aysan
Author-Name: Muhammed Habib Dolgun
Author-X-Name-First: Muhammed Habib
Author-X-Name-Last: Dolgun
Author-Name: M. Ibrahim Turhan
Author-X-Name-First: M. Ibrahim
Author-X-Name-Last: Turhan
Title: Assessment of the Participation Banks and Their Role in Financial Inclusion in Turkey
Abstract:
 We evaluate the performance of participation banks (PBs) and analytically discuss the participation banking industry in Turkey. First, we examine establishment and deregulation of PBs. We also evaluate the performance and governance structure of the four full-fledged participation banks currently operating in the Turkish banking system. Participation banks expand the scope for financial inclusion for those who stay away from conventional banking due to religious sensitivity. The PBs play a pivotal role in channeling the idle capital into more productive sectors. In this sense, new sovereign sukuk issuances and their importance for the PBs' liquidity management are also discussed. We also examine the changing approaches for the supervision and regulation of PBs in different periods in Turkey. Finally, we discuss some critical views of and challenges for the PBs while providing a critical perspective for the development of the sector in the future.
Journal: Emerging Markets Finance and Trade
Pages: 99-111
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: financial inclusion, financial institutions, Islamic finance, participation banking
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W71P7G43169V64T1
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:99-111




Template-Type: ReDIF-Article 1.0
Author-Name: Nurullah Gur
Author-X-Name-First: Nurullah
Author-X-Name-Last: Gur
Title: Does Financial Integration Increase Exports? Evidence from International Industry-Level Data
Abstract:
 In this paper, I examine whether financially integrated countries export relatively more in industries that depend heavily on external finance. I consider three different components of financial integration: international portfolio equity investments, foreign direct investments, and external debt. The results show that, of these three components, international portfolio equity investments have the strongest and most robust effect on the sectoral composition of export flows. International portfolio equity investments increase exports relatively more in industries that depend heavily on external sources of finance. I also find that this positive effect on exports disappears when the quality of institutions is low.
Journal: Emerging Markets Finance and Trade
Pages: 112-129
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: external debt, exports, FDI, financial constraints, international portfolio equity investments
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E786984HX8567367
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:112-129




Template-Type: ReDIF-Article 1.0
Author-Name: Fuat Erdal
Author-X-Name-First: Fuat
Author-X-Name-Last: Erdal
Author-Name: Asli Yenipazarli
Author-X-Name-First: Asli
Author-X-Name-Last: Yenipazarli
Title: Which Economic Freedoms Contribute Income per Capita? Are Results Sensitive to the Indicators and the Estimation Methods?
Abstract:
 This study investigates the roles of indicators, time-series analysis, and estimation techniques in economic freedom-growth relationship. We construct a new freedom index using annual data from Turkey between 1970 and 2006. The index consists of six components: government size, market intervention, soundness of the money and banking system, freedom of capital markets, freedom to trade, and institutional structure. The empirical results indicate that the relationship between economic freedom and per capita income is sensitive to indicators and estimation techniques. We also summarize the emerging process of a market economy and its accompanying growth performance.
Journal: Emerging Markets Finance and Trade
Pages: 130-147
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: ARDL models, economic freedom, income per capita
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:130-147




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Fatih Aysan
Author-X-Name-First: Mehmet Fatih
Author-X-Name-Last: Aysan
Title: Reforms and Challenges: The Turkish Pension Regime Revisited
Abstract:
 The financial crisis of 2008 and the ongoing economic turmoil in Southern European countries pose significant challenges to many welfare regimes and their pension systems. This paper analyzes the Turkish pension system and pension reforms in relation to welfare regime discussions in the literature. Via the application of the hierarchical cluster analysis to the Organization for Economic Cooperation and Development data, this study shows that, supporting previous comparative studies, the Turkish pension regime can be characterized as a part of the Southern European welfare regime, and the 2006 pension reforms were implemented mainly to achieve a recalibration of the Turkish pension system. This paper asserts that although important improvements have been made toward achieving a sustainable and fair pension system, the Turkish pension system still has some structural problems with respect to intergenerational equity.
Journal: Emerging Markets Finance and Trade
Pages: 148-162
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: intergenerational equity, pension regime, reform, Turkey, welfare state
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=FL77775533223752
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:148-162




Template-Type: ReDIF-Article 1.0
Author-Name: Ganesh K. Seshan
Author-X-Name-First: Ganesh K.
Author-X-Name-Last: Seshan
Title: Public-Private-Sector Employment Decisions and Wage Differentials in Peninsular Malaysia
Abstract:
 This paper examines whether there is a wage premium for public-sector workers in Peninsular Malaysia and whether there is wage discrimination based on gender. Public- and private-sector wages are estimated using individual-level data from 1995 and 2007 while accounting for sectoral choice by men and women. I find that public-sector employees earn a wage premium, independent of their human capital endowments and personal attributes. This wage premium has increased over the twelve-year period. There is little evidence of a gender wage gap in the public sector; a gender wage gap is more evident in the private sector.
Journal: Emerging Markets Finance and Trade
Pages: 163-179
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: gender gap, Malaysia, public-private wage differential
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Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Safa Öz
Author-X-Name-First: Mustafa Safa
Author-X-Name-Last: Öz
Author-Name: Gökhan Özertan
Author-X-Name-First: Gökhan
Author-X-Name-Last: Özertan
Title: Dynamics Between Turkish and International Cotton Prices
Abstract:
 This study examines cotton prices in Turkey and how they relate to international prices. Given that Turkey imports 60 percent of its cotton from the United States, we use time-series techniques to investigate both short-run and long-run relationships between the Turkish (Ege), Memphis, and Liverpool A-index price series. We find, first, that the law of one price holds for both Ege-Memphis and Ege-Liverpool A-index comparisons. Second, there is no indication of price asymmetry between the Ege and international prices. Third, there is evidence for a bidirectional Granger causality relationship for both Ege-Memphis and Ege-A-index. The results are important for determining whether commodity markets are well integrated and adjust rapidly to price shifts, how prices in different countries adjust to shocks, how information flow patterns can be characterized among different markets, and how Turkey adjusts its prices in response to deviations in exporting countries, especially the United States.
Journal: Emerging Markets Finance and Trade
Pages: 180-193
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: cointegration, cotton, price transmission, Turkey
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=84878Q5430467834
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Template-Type: ReDIF-Article 1.0
Author-Name: Huseyin Ozturk
Author-X-Name-First: Huseyin
Author-X-Name-Last: Ozturk
Author-Name: Luis Felipe V. N. Pereira
Author-X-Name-First: Luis Felipe V. N.
Author-X-Name-Last: Pereira
Title: Yield Curve as a Predictor of Recessions: Evidence from Panel Data
Abstract:
 In this study, we test empirically whether the slope of the yield curve—yield spread—is a good predictor of recessions. Although the convention in the literature is to use time series, we adopt an unbalanced panel data framework for thirty-two countries in the Organization for Economic Cooperation and Development from 1990 to 2011. This modification allows us to apply this model for countries with short time series. Furthermore, we include four-quarter lagged gross domestic product (GDP) in the model to assure that yield spread is a good predictor of recessions, even when controlling for GDP changes. The results show that with a type I error of 25 percent, the models deliver a power of roughly 63 percent and can be used as an effective instrument to predict recessions one year ahead.
Journal: Emerging Markets Finance and Trade
Pages: 194-212
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: panel logit, panel probit, recession, term structure
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=QT72X31742144844
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Template-Type: ReDIF-Article 1.0
Author-Name: Gokhan Karabulut
Author-X-Name-First: Gokhan
Author-X-Name-Last: Karabulut
Author-Name: Mehmet Huseyin Bilgin
Author-X-Name-First: Mehmet Huseyin
Author-X-Name-Last: Bilgin
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Title: Purchasing Power Parity Hypothesis: Mixed Evidence from Eastern Europe Emerging Markets
Abstract:
 This paper investigates whether the purchasing power parity (PPP) hypothesis holds in the Czech Republic, Hungary, and Poland by considering currencies of their five largest trading partners. We employ eight panel unit root tests that can be arranged in groups by cross-section independence or dependence. Empirical findings show that the stochastic behavior of real exchange rates in the Czech Republic and Poland is not a mean reversion, and the PPP condition does not hold for them. However, we obtain mixed empirical evidence in Hungary. Limited evidence is found for validity of the PPP hypothesis among currencies of Hungary's largest trading partners.
Journal: Emerging Markets Finance and Trade
Pages: 213-227
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: Central and Eastern Europe, emerging markets, floating exchange rates, panel unit root tests, purchasing power parity hypothesis, trading partners
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=917291K07835L564
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Handle: RePEc:mes:emfitr:v:49:y:2013:i:S5:p:213-227




Template-Type: ReDIF-Article 1.0
Author-Name: Hasan Murat Ertugrul
Author-X-Name-First: Hasan Murat
Author-X-Name-Last: Ertugrul
Author-Name: Huseyin Ozturk
Author-X-Name-First: Huseyin
Author-X-Name-Last: Ozturk
Title: The Drivers of Credit Default Swap Prices: Evidence from Selected Emerging Market Countries
Abstract:
 In this study, we empirically investigate the relationship between credit default swap (CDS) spreads and financial market indicators belonging to bond, equity, and foreign exchange markets for the selected emerging market countries. This study has several findings. The empirical results suggest that the CDS spreads have a cointegrating relationship with the remaining financial market indicators for the whole sample. Another finding that deserves particular attention is that in the long run, the CDS spread is negatively related with the CDS market uncertainties. We argue that this negative relationship indicates low liquidity in the elevated uncertainty, which decreases CDS prices. The time-varying effects of each variable on the CDS spread are in line with the results obtained from the cointegration analyses. These findings have several implications for investors and policymakers in emerging market countries.
Journal: Emerging Markets Finance and Trade
Pages: 228-249
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: ARDL, bounds test, CDS price volatility, Kalman filter, SWARCH
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=RR6052V760W28420
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Template-Type: ReDIF-Article 1.0
Author-Name: Caner Taslaman
Author-X-Name-First: Caner
Author-X-Name-Last: Taslaman
Author-Name: Fazıl Kayıkçı
Author-X-Name-First: Fazıl
Author-X-Name-Last: Kayıkçı
Title: Capital Mobility in Emerging Europe
Abstract:
 Panel cointegration methods are used to analyze the saving and investment relationships of the EU member countries; the degree of capital mobility is investigated by pooled mean group estimation. Results demonstrate that although saving and investment move together in the long run, there is also a moderate level of capital mobility in the short run, suggesting that the Feldstein-Horioka puzzle is not valid for these countries in the 1980-2012 period. Results differ in the subsamples of the European Union as the degree of capital mobility is higher in the eurozone countries and early members of the European Union.
Journal: Emerging Markets Finance and Trade
Pages: 250-258
Issue: S5
Volume: 49
Year: 2013
Month: 11
Keywords: capital mobility, cointegration, investment, saving
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A0283167L7762574
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Template-Type: ReDIF-Article 1.0
Author-Name: Laivi Laidroo
Author-X-Name-First: Laivi
Author-X-Name-Last: Laidroo
Author-Name: Joonas Joost
Author-X-Name-First: Joonas
Author-X-Name-Last: Joost
Title: Earnings Announcement Lags and Market Responses—Does the Tone of the News and the Market Sentiment Matter?
Abstract: 
 We investigate earnings announcement lags (period from the end of the reporting period until the announcement date) for the good and the bad quarterly earnings news across different market sentiment periods as well as market reactions thereto. Companies listed on Baltic stock exchanges exhibit clear signs of strategic timing of earnings announcements. Earnings announcement lags for the bad news tend to be longer than those for the good news. This difference is more pronounced during low market sentiment periods. If the release of the bad news is postponed, abnormal return responses remain lower, as expected.
Journal: Emerging Markets Finance and Trade
Pages: 1885-1906
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2017.1326028
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1326028
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:8:p:1885-1906




Template-Type: ReDIF-Article 1.0
Author-Name: Sung-Hoon Lim
Author-X-Name-First: Sung-Hoon
Author-X-Name-Last: Lim
Title: Determinants of the Performance of Investment Promotion Agencies: Evidence from a Mix of Emerging Economies
Abstract: 
 This article argues whether and how investment promotion agencies (IPAs) efficiently influence investment promotion in the cases of the following selected variables: resources (experience, total staff, and overseas staff), service functions (combined promotion service of inward investment and trade, and inward and outward investment), and organizational structure (autonomous status of private/upper ministry-level IPAs). The results reveal a positive relationship between IPA’s performance and longer experience, larger staff, larger overseas IPA staff members, autonomous private agency types, and upper ministry-level IPAs. However, an IPA’s performance was negatively associated with the combined promotional service of inward investment and trade, and inward and outward investment. The results suggest that an IPA’s performance can be enhanced by adjusting the service functions and restructuring the governance and structure in addition to improving the IPA’s resources and the country’s investment climate.
Journal: Emerging Markets Finance and Trade
Pages: 1907-1923
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2017.1334144
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1334144
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:8:p:1907-1923




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Author-Name: Sudharshan Reddy Paramati
Author-X-Name-First: Sudharshan Reddy
Author-X-Name-Last: Paramati
Author-Name: Mallesh Ummalla
Author-X-Name-First: Mallesh
Author-X-Name-Last: Ummalla
Author-Name: Abdulrasheed Zakari
Author-X-Name-First: Abdulrasheed
Author-X-Name-Last: Zakari
Title: Financing Renewable Energy Projects in Major Emerging Market Economies: Evidence in the Perspective of Sustainable Economic Development
Abstract: 
 This research paper aims to explore the role of FDI inflows and stock market development on the promotion of renewable energy consumption. Furthermore, study investigates the effect of renewable energy consumption on CO2 emissions and economic output across a panel of Brazil, China, India, and South Africa. Study utilizes annual data from 1990 to 2012 and employs various robust panel econometric techniques. The findings confirm that both FDI inflows and stock market development play an important role in promoting renewable energy consumption. The results also reveal that renewable energy consumption helps to mitigate the growth of CO2 emissions and promotes economic development.
Journal: Emerging Markets Finance and Trade
Pages: 1761-1777
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2017.1363036
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1363036
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:8:p:1761-1777




Template-Type: ReDIF-Article 1.0
Author-Name: A. Can Inci
Author-X-Name-First: A. Can
Author-X-Name-Last: Inci
Author-Name: H. Nejat Seyhun
Author-X-Name-First: H. Nejat
Author-X-Name-Last: Seyhun
Title: Degree of Integration Between Brent Oil Spot and Futures Markets: Intraday Evidence
Abstract: 
 We investigate the integration of oil spot and futures markets using matched, intraday data to avoid nonsynchronous trading issues. Our evidence indicates highly integrated spot and futures markets. Economic shocks that arise in spot markets are quickly transmitted to the futures markets approximately one-for-one. Most of the reaction occurs within minutes. Similarly, economic shocks arriving in futures markets are transmitted to spot markets one-for-one, once again, within minutes consistent with market efficiency. In general, our findings indicate well-functioning, well-integrated spot and futures oil markets that are informationally efficient and that perform the functions of both price discovery and risk transfer. To the best of our knowledge, this is the first article to work with precisely matched customized data in futures markets, specifically oil futures markets.
Journal: Emerging Markets Finance and Trade
Pages: 1808-1826
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2017.1376644
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1376644
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:8:p:1808-1826




Template-Type: ReDIF-Article 1.0
Author-Name: Bradley T. Ewing
Author-X-Name-First: Bradley T.
Author-X-Name-Last: Ewing
Author-Name: Alper Gormus
Author-X-Name-First: Alper
Author-X-Name-Last: Gormus
Author-Name: Ugur Soytas
Author-X-Name-First: Ugur
Author-X-Name-Last: Soytas
Title: Risk Transmission from Oil and Natural Gas Futures to Emerging Market Mutual Funds
Abstract: 
 This study evaluates the impacts of energy markets on emerging market mutual funds (EMMFs). In particular, we investigate the volatility transmission between these funds and the oil and natural gas prices. The findings suggest significant risk spillover from the energy markets to EMMFs. Furthermore, we find a large number of EMMFs’ risk transmitting to oil prices and almost all of the EMMFs’ risk transmitting to natural gas prices. By dividing the sample into two (before and after 2008), we find the EMMFs’ influence on the oil market decreasing after this turbulent period. Our results have important implications for mutual fund managers and investors.
Journal: Emerging Markets Finance and Trade
Pages: 1827-1836
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2017.1400965
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1400965
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:8:p:1827-1836




Template-Type: ReDIF-Article 1.0
Author-Name: Chunyan Hu
Author-X-Name-First: Chunyan
Author-X-Name-Last: Hu
Author-Name: Xinheng Liu
Author-X-Name-First: Xinheng
Author-X-Name-Last: Liu
Author-Name: Bin Pan
Author-X-Name-First: Bin
Author-X-Name-Last: Pan
Author-Name: Bin Chen
Author-X-Name-First: Bin
Author-X-Name-Last: Chen
Author-Name: Xiaohua Xia
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Xia
Title: Asymmetric Impact of Oil Price Shock on Stock Market in China: A Combination Analysis Based on SVAR Model and NARDL Model
Abstract: 
 This article integrates the SVAR model and nonlinear ARDL (NARDL) model to analyze the long-run and short-run asymmetric effect of structural oil price shocks on the Chinese stock market. We reveal that the demand-side shocks of oil price have a significant impact on the Chinese stock market in both short and long run, but the supply shock is an exception. In terms of asymmetric nature, there is no evidence of asymmetric impact when it refers to the supply shock and the oil-specific demand shock on stock market, and only the aggregate demand shock has asymmetric effect in short run.
Journal: Emerging Markets Finance and Trade
Pages: 1693-1705
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2017.1412303
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1412303
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:8:p:1693-1705




Template-Type: ReDIF-Article 1.0
Author-Name: Umut Ugurlu
Author-X-Name-First: Umut
Author-X-Name-Last: Ugurlu
Author-Name: Oktay Tas
Author-X-Name-First: Oktay
Author-X-Name-Last: Tas
Author-Name: Umut Gunduz
Author-X-Name-First: Umut
Author-X-Name-Last: Gunduz
Title: Performance of Electricity Price Forecasting Models: Evidence from Turkey
Abstract: 
 In this article, hourly prices of the Turkish Day Ahead Electricity Market are forecasted by using various univariate electricity price models, then the out-of-sample forecasts are compared with each other and the benchmarks. This article has two main contributions to the literature: Firstly, it provides a factorial Analysis of Variance (ANOVA) as a pre-whitening method of the price series and allows one to work with the stationary residuals series. Secondly, it is the first work, which compares the performances of all important statistical univariate forecast models in the Turkish electricity market. Results indicate the importance of the factorial ANOVA application and the SARIMA model’s success under the given conditions.
Journal: Emerging Markets Finance and Trade
Pages: 1720-1739
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2017.1419955
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1419955
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:8:p:1720-1739




Template-Type: ReDIF-Article 1.0
Author-Name: Lei Hu
Author-X-Name-First: Lei
Author-X-Name-Last: Hu
Author-Name: Junying Han
Author-X-Name-First: Junying
Author-X-Name-Last: Han
Author-Name: Qiang Zhang
Author-X-Name-First: Qiang
Author-X-Name-Last: Zhang
Title: The Impact of Monetary and Fiscal Policy Shocks on Stock Markets: Evidence from China
Abstract: 
 We study the impact of Chinese monetary and fiscal policy shocks and the interaction of the two policies on stock markets. We find that, first, when we focus on the contemporaneous correlation, Chinese fiscal policy has significant, negative contemporaneous relationships with stock market performance, while monetary policy’s impact on stock market performance varies, depending on the fiscal policy. Second, with respect to the lagged variables, Chinese monetary and fiscal policy both have a significant and direct positive effect on stock market performance. Meanwhile, interaction between the two policies plays an extremely important role in explaining the development of stock markets.
Journal: Emerging Markets Finance and Trade
Pages: 1856-1871
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2018.1425610
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1425610
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:8:p:1856-1871




Template-Type: ReDIF-Article 1.0
Author-Name: Durmuş Çağrı Yıldırım
Author-X-Name-First: Durmuş Çağrı
Author-X-Name-Last: Yıldırım
Author-Name: Seyfettin Erdoğan
Author-X-Name-First: Seyfettin
Author-X-Name-Last: Erdoğan
Author-Name: Emrah İsmail Çevik
Author-X-Name-First: Emrah İsmail
Author-X-Name-Last: Çevik
Title: Regime-Dependent Effect of Crude Oil Price on BRICS Stock Markets
Abstract: 
 In this study, the dynamic relation between global crude oil prices and stock prices is investigated in terms of crude oil-exporting and -importing countries. The relationship between crude oil prices and stock prices is examined for BRICS countries (Brazil, Russia, India, China, and South Africa) for the periods of January 1995 to December 2016 by means of the Markov Switching Vector Autoregression (MS-VAR) model. The impulse-response analysis results suggest that the responses of the stock market to an oil price shock vary over the regimes for all countries. Specifically, we find that the responses of the stock market to an unexpected oil price shock are positive and statistically significant in the high-volatility regime in all countries except for China, and these results suggest that the increase in oil prices may be evaluated by demand-side shock in these countries.
Journal: Emerging Markets Finance and Trade
Pages: 1706-1719
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2018.1427062
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1427062
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Template-Type: ReDIF-Article 1.0
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Author-Name: Li Liu
Author-X-Name-First: Li
Author-X-Name-Last: Liu
Title: Stand by or Follow? Responsibility Diffusion Effects and Green Credit
Abstract: 
 Understanding the behavior of private capital holders in green investment is a key to the success of green finance policies such as green credit policies. In current literature, there still remain unsettled controversies on the behaviors of private capital holders. The responsibility diffusion theory indicates that private capital holders do not follow commercial banks that issue green credit. However, the signal transmission theory implies that private capital holders may follow. Stand by or follow? We apply the two-way fixed-effects model to analyze the behavior pattern of private capital holders in green investment, using the panel data of 443 listed companies in China. The results show that the private capital holders’ behavior is affected by responsibility diffusion effect.
Journal: Emerging Markets Finance and Trade
Pages: 1740-1760
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2018.1430566
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1430566
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Template-Type: ReDIF-Article 1.0
Author-Name: Serdar Celik
Author-X-Name-First: Serdar
Author-X-Name-Last: Celik
Author-Name: Ayla Ogus Binatli
Author-X-Name-First: Ayla
Author-X-Name-Last: Ogus Binatli
Title: Energy Savings and Economic Impact of Green Roofs: A Pilot Study
Abstract: 
 This study focuses on the energy savings and economic impact of green roof systems applied to Central Bodrum, a district in southwestern Turkey. Energy savings of the buildings were evaluated based on the added thermal resistance on the roofs and corresponding heat transmission through the roofs. Four different scenarios, two without green financing and two with green consumer loans for retrofitting financed by the central government via the state-owned banks, were studied. The economic impact of this activity on the economy is estimated based on sectoral employment multipliers for a period of 10 years. Based on the scenario analysis and the priorities of the Turkish economy, given the employment benefits and energy savings which would reduce the energy demand in the area in the peak season, we propose that the government implements green consumer loans for retrofitting through the state-owned banks.
Journal: Emerging Markets Finance and Trade
Pages: 1778-1792
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2018.1434620
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1434620
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:8:p:1778-1792




Template-Type: ReDIF-Article 1.0
Author-Name: Xi Chen
Author-X-Name-First: Xi
Author-X-Name-Last: Chen
Author-Name: Jing He
Author-X-Name-First: Jing
Author-X-Name-Last: He
Author-Name: Ming-Hsiang Chen
Author-X-Name-First: Ming-Hsiang
Author-X-Name-Last: Chen
Title: What Drives Internet Industrial Competitiveness in China? The Evolvement of Cultivation Factors Index
Abstract: 
 The rapid and continuous growth of the Internet industry is highly important to China’s economy. Based on Porter’s diamond model and using data from 2002 to 2016, we construct a cultivation factor index of China’s Internet industrial competitiveness and its four composite indicators. We study the evolvement of the indexes over 15 years and analyze events that were key to the growth of cultivation factors of China’s Internet industrial competitiveness. The findings are as follows: (1) the cultivation factor index of Internet industrial competitiveness grows fast in waves, with alternating periods of steady growth and leap growth; (2) innovation in technology application, not technology itself, promotes the rapid increase of index; and (3) the influence of environmental opportunities and governments polices is demonstrated in evolvement of the index.
Journal: Emerging Markets Finance and Trade
Pages: 1872-1884
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2018.1435414
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1435414
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Template-Type: ReDIF-Article 1.0
Author-Name: Erik Haugom
Author-X-Name-First: Erik
Author-X-Name-Last: Haugom
Author-Name: Guttorm A. Hoff
Author-X-Name-First: Guttorm A.
Author-X-Name-Last: Hoff
Author-Name: Peter Molnár
Author-X-Name-First: Peter
Author-X-Name-Last: Molnár
Author-Name: Maria Mortensen
Author-X-Name-First: Maria
Author-X-Name-Last: Mortensen
Author-Name: Sjur Westgaard
Author-X-Name-First: Sjur
Author-X-Name-Last: Westgaard
Title: The Forward Premium in the Nord Pool Power Market
Abstract: 
 This article investigates the forward premium of futures contracts in the Nordic power market for the time period from January 2004 to December 2013. We find that futures prices are biased predictors of the subsequent spot prices and that there is a significant forward premium in the Nord Pool market, particularly during the winter and autumn. We analyze the impact from several factors on the forward premium. The spot price, and the deviation of water inflow from its usual level, positively affect the forward premium. The variance of the spot price also has a positive effect on the forward premium, but only for the contract closest to delivery.
Journal: Emerging Markets Finance and Trade
Pages: 1793-1807
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2018.1441021
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1441021
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Template-Type: ReDIF-Article 1.0
Author-Name: Dayong Zhang
Author-X-Name-First: Dayong
Author-X-Name-Last: Zhang
Title: Energy Finance: Background, Concept, and Recent Developments
Journal: Emerging Markets Finance and Trade
Pages: 1687-1692
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2018.1466524
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1466524
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Template-Type: ReDIF-Article 1.0
Author-Name: Wasim Ahmad
Author-X-Name-First: Wasim
Author-X-Name-Last: Ahmad
Author-Name: Shirin Rais
Author-X-Name-First: Shirin
Author-X-Name-Last: Rais
Title: Time-Varying Spillover and the Portfolio Diversification Implications of Clean Energy Equity with Commodities and Financial Assets
Abstract: 
 This article examines the time-varying spillover and its implications on hedging and portfolio diversification for clean energy equities (WilderHill New Energy Global Innovation Index (NEX)) with technology stocks (PSE), four energy sub-indices of Standard &amp; Poor Goldman Sachs Commodity Index (S&amp;P-GSCI) viz., Crude oil, Brent crude oil, Gasoline and Heating oil and three major global equities indices represented by the USA, Europe, World, Dow-Jones Islamic Market Index (DJIMI) along with USD-Euro exchange rate. We find that in a mixed portfolio set-up, the inclusion of NEX in energy portfolio provides better diversification and risk reduction benefits for hedgers and portfolio managers.
Journal: Emerging Markets Finance and Trade
Pages: 1837-1855
Issue: 8
Volume: 54
Year: 2018
Month: 6
X-DOI: 10.1080/1540496X.2018.1467314
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1467314
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Template-Type: ReDIF-Article 1.0
Author-Name: Viviana Fernandez
Author-X-Name-First: Viviana
Author-X-Name-Last: Fernandez
Title: Guest Editor’s Introduction
Journal: Emerging Markets Finance and Trade
Pages: 4-5
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S500
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S500
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Template-Type: ReDIF-Article 1.0
Author-Name: José Luis Ruiz
Author-X-Name-First: José Luis
Author-X-Name-Last: Ruiz
Title: Annuity Choices in Chile: A Dynamic Approach
Abstract: 
 This study utilizes a variable derived from the Annuity Equivalent Wealth dynamic programming model developed by Brown (2001) and Mitchell et al. (1999). The model captures the benefits of having access to the annuity market. Using a unique data set of retirees from the Chilean labor market to analyze the empirical determinants of annuity choice, the study finds that sales agent contact, good health status, knowledge about the pension system, and greater education are associated with an increase in the probability of annuitization.
Journal: Emerging Markets Finance and Trade
Pages: 6-21
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S501
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S501
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Template-Type: ReDIF-Article 1.0
Author-Name: Khamis Hamed Al-Yahyaee
Author-X-Name-First: Khamis Hamed
Author-X-Name-Last: Al-Yahyaee
Title: Why Do Stock Prices Drop by Less Than the Amount of the Dividend? Evidence from a Unique Environment
Abstract: 
 This paper investigates the effect of a lack of an automated limit order adjustment mechanism on ex-dividend day stock price behavior in a unique environment in which there are no taxes on dividends and capital gains. It finds that the overnight drop in the ask price is smaller than the overnight drop in the bid price. In addition, the study finds that average price drops are smaller than the dividend amount for all dividend sizes. I also find no evidence of a sawtooth-shaped relationship between the dividend amount and the ex-day price drop. These results are generally consistent with the lack of an automated limit order adjustment mechanism.
Journal: Emerging Markets Finance and Trade
Pages: 22-34
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S502
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S502
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Template-Type: ReDIF-Article 1.0
Author-Name: Marco Morales
Author-X-Name-First: Marco
Author-X-Name-Last: Morales
Author-Name: Carola Moreno
Author-X-Name-First: Carola
Author-X-Name-Last: Moreno
Author-Name: Camilo Vio
Author-X-Name-First: Camilo
Author-X-Name-Last: Vio
Title: Foreign Shocks on Chilean Financial Markets: Spillovers and Comovements Between Bond and Equity Markets
Abstract: 
 The domestic impact of external shocks will depend on the degree of coupling of domestic assets to foreign markets, but also on the spillovers among assets. The covariance between different types of assets could be affected by new information. Changes in the covariance, for example, could come from a stronger rebalancing between stocks and bonds. Therefore, we will analyze four different assets-government bonds, corporate bonds, money market instruments, and equities-and study the conditional correlation between them. We find that the corporate bond market tends to increase coupling in turbulent times, while the money market decreases coupling. We propose to test international spillovers taking into account a methodology for estimating the conditional mean, variance, and covariance on domestic bond and equity markets, while considering that shocks may have asymmetric effects depending on whether the news is good or bad.
Journal: Emerging Markets Finance and Trade
Pages: 35-50
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S503
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S503
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:35-50




Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Goulart Serra
Author-X-Name-First: Ricardo Goulart
Author-X-Name-Last: Serra
Author-Name: Roy Martelanc
Author-X-Name-First: Roy
Author-X-Name-Last: Martelanc
Title: Hierarchical Determinants of Brazilian Stock Returns During the 2008 Financial Crisis
Abstract: 
 We analyze the influence of firm- and industry-level determinants on stock returns during the 2008 financial crisis, using a hierarchical linear model to analyze the returns of 135 Brazilian firms. The impact of these determinants on stock returns has not received sufficient attention in periods of severe market decline. The following determinants were significant: (1) industry-level determinants (unlevered beta, historical sales growth, and regulated tariff), and (2) firm-level determinants (size, illiquidity, and book-to-market ratio). We also identified an indirect influence of unlevered beta over book-to-market that reflects a behavior that we call the “misconfidence effect.”
Journal: Emerging Markets Finance and Trade
Pages: 51-67
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S504
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S504
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Template-Type: ReDIF-Article 1.0
Author-Name: Lu Zong
Author-X-Name-First: Lu
Author-X-Name-Last: Zong
Author-Name: Manuela Ender
Author-X-Name-First: Manuela
Author-X-Name-Last: Ender
Title: Model Comparison for Temperature-Based Weather Derivatives in Mainland China
Abstract: 
 In this paper, we provide a comparison of two models of temperature-based weather derivatives. The Alaton et al. model (2002) and the continuous-time autoregressive (CAR) model of Benth et al. (2007) are applied to temperature data from twelve cities in China. The objective is to determine which is the better model for temperature derivative modeling in Chinese cities. We found the CAR model to be more accurate in terms of normality of residuals and smaller relative errors. However, the shortcomings of both the Alaton et al. model and the CAR model are revealed in this study as well.
Journal: Emerging Markets Finance and Trade
Pages: 68-86
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S505
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S505
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Template-Type: ReDIF-Article 1.0
Author-Name: Viviana Fernandez
Author-X-Name-First: Viviana
Author-X-Name-Last: Fernandez
Title: Commodities and Macroeconomic Factors: Unconditional Volatility Measures
Abstract: 
 This study focuses on the measurement of spillover effects from macroeconomic factors to commodity volatility. It argues that such measurement is sensitive to volatility computation and to causality testing. To this end, I analyze two commodity data sets-gold and the Continuous Commodity Index (1969-2011), and twenty-four Dow Jones futures indexes (1991-2011)-and various macroeconomic indicators. I conclude that the macroeconomic factors that influence volatility generally depend on the commodity under consideration. I also explore whether commodities of the same class experience volatility shifts around the same dates, and find that this is not the case except for energy commodities.
Journal: Emerging Markets Finance and Trade
Pages: 87-109
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S506
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S506
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:87-109




Template-Type: ReDIF-Article 1.0
Author-Name: Jaime F. Lavin
Author-X-Name-First: Jaime F.
Author-X-Name-Last: Lavin
Author-Name: Nicolás S. Magner
Author-X-Name-First: Nicolás S.
Author-X-Name-Last: Magner
Title: Reversing the Question: On What Does the Turnover of Mutual Funds Depend? Evidence from Equity Mutual Funds in Chile
Abstract: 
 The purpose of this research is to study the factors that influence portfolio turnover in equity mutual funds in Chile. The main result of this research indicates that turnover is related to a combination of variables associated with efficiency, and with behavioral and agency problem hypotheses. In addition, negative effects of turnover are observed on the returns from the funds; positive effects are observed on portfolio liquidity. This study should be of interest to policymakers who regulate and monitor the delegated portfolio management industry in developing countries, as well as individual and institutionalinvestors concerned about the efficiency and performance of their investments.
Journal: Emerging Markets Finance and Trade
Pages: 110-129
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S507
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S507
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:110-129




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Special Section Introduction: Globalization, Financial Integration and Investment in Emerging Economies
Journal: Emerging Markets Finance and Trade
Pages: 130-130
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S508
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S508
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:130-130




Template-Type: ReDIF-Article 1.0
Author-Name: Jangkoo Kang
Author-X-Name-First: Jangkoo
Author-X-Name-Last: Kang
Author-Name: Kyungyoon Kwon
Author-X-Name-First: Kyungyoon
Author-X-Name-Last: Kwon
Author-Name: Hyoung-jin Park
Author-X-Name-First: Hyoung-jin
Author-X-Name-Last: Park
Title: Momentum and Foreign Investors: Evidence from the Korean Stock Market
Abstract: 
 We examine whether the price impact of foreign investors on the Korean stock market from December 2000 to February 2007 generated a momentum phenomenon. In our empirical results, foreigners seem to have exerted a significantly positive impact on prices in “up” markets (periods of positive stock returns), but have had little impact on prices in “down” markets (periods of negative returns). We document that the impact of foreigners’ trades is concentrated in large companies. Most importantly, when the market is in the up state, the returns of stocks of large companies that were positively affected by foreign investors in the previous six-month period continue to increase in the subsequent six-month period. As a result, the subsequent six-month return on a past “winner” stock portfolio is significantly higher than that on a past “loser” stock portfolio. This brings to mind a momentum phenomenon that has been reported not to exist in the Korean stock market.
Journal: Emerging Markets Finance and Trade
Pages: 131-147
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S509
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S509
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:131-147




Template-Type: ReDIF-Article 1.0
Author-Name: Hail Park
Author-X-Name-First: Hail
Author-X-Name-Last: Park
Title: The Comovements of Capital Inflows in the Frequency Domain: Evidence from Emerging Countries
Abstract: 
 This paper analyzes the correlations between capital inflows and business cycles in emerging countries, and also investigates the comovements of capital inflows, by capital types, within and across regions (Asia, Latin America, and Europe) in the frequency domain. In general, bank loans show positive correlations with business cycles at all frequencies across emerging countries. In addition, I find that the dynamic correlations between capital types are high at low frequencies and become lower at the higher frequency domains. The cohesion (comovements within a region) and cross-cohesion (comovements across regions) differ in accordance with the capital types and frequency domains.
Journal: Emerging Markets Finance and Trade
Pages: 148-158
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S510
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S510
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:148-158




Template-Type: ReDIF-Article 1.0
Author-Name: Yong Ma
Author-X-Name-First: Yong
Author-X-Name-Last: Ma
Author-Name: Weiguo Zhang
Author-X-Name-First: Weiguo
Author-X-Name-Last: Zhang
Author-Name: Zhengjun Zhang
Author-X-Name-First: Zhengjun
Author-X-Name-Last: Zhang
Author-Name: Weidong Xu
Author-X-Name-First: Weidong
Author-X-Name-Last: Xu
Title: Stock Market Interactions Driven by Large Declines
Abstract: 
 This paper seeks to explore the relationship among the large declines in China’s stock market and stock markets in the United States, the United Kingdom, Japan, and Hong Kong, and to forecast future large declines in China’s stock market. We apply mutually exciting marked Hawkes processes—where the occurrences of large declines are regarded as events whose magnitudes follow generalized Pareto distributions—to study the interaction between the different stock markets. We find that these interactions are asymmetric. The occurrences of large declines in the Chinese stock market will stimulate declines in the United States and the United Kingdom, and especially in Japan’s and Hong Kong’s stock markets. However, only large declines in Hong Kong’s market have a substantial influence on the occurrence of big declines in China’s market. Finally, we try to predict the time of occurrence of the next major decline in China’s stock market using information from our empirical results.
Journal: Emerging Markets Finance and Trade
Pages: 159-171
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S511
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S511
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:159-171




Template-Type: ReDIF-Article 1.0
Author-Name: Changkyu Choi
Author-X-Name-First: Changkyu
Author-X-Name-Last: Choi
Author-Name: Kyungsun Park
Author-X-Name-First: Kyungsun
Author-X-Name-Last: Park
Title: The Euro Bias of Bank Assets in the Eurozone
Abstract: 
 The integration of eurozone financial markets since the advent of the euro in 1999 has been the center of attention in policy debates and academic research. We analyze the bank assets of monetary financial institutions in Germany vis-à-vis nonresidents. The financial institutions of the eurozone countries have tended to invest in assets of other eurozone countries substantially more since the introduction of the euro. The euro effect is especially stronger in the weaker eurozone economies than in the stronger eurozone economies. Furthermore, the impact of the euro has been even greater in securities than in loans. In this paper, we use Bundesbank balance-of-payment statistics to analyze the euro’s effects on the asset portfolios of German banks vis-à-vis nonresidents.
Journal: Emerging Markets Finance and Trade
Pages: 172-185
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S512
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S512
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:172-185




Template-Type: ReDIF-Article 1.0
Author-Name: Hsin-Hung Chen
Author-X-Name-First: Hsin-Hung
Author-X-Name-Last: Chen
Author-Name: Hsien-Yi Lee
Author-X-Name-First: Hsien-Yi
Author-X-Name-Last: Lee
Author-Name: Hsiu-Yu Lee
Author-X-Name-First: Hsiu-Yu
Author-X-Name-Last: Lee
Title: The Empirical Relationship Between Earnings Information and Stock Returns
Abstract: 
 The objective of this study was to examine, using a vector autoregressive model, whether the difference in earnings growth rates caused different reaction speeds in stock prices. Monthly returns of stocks listed in the Taiwan stock market from May 2003 to April 2013 were used as empirical data in this study. The analytical results showed that the returns of portfolios with higher earnings growth rates significantly led those portfolios with lower earnings growth rates when size, trading volume, institutional ownership ratio, and revenue factors were controlled, respectively. This paper finds that the earnings growth rate is a significant determinant of the lead-lag patterns observed in monthly stock returns.
Journal: Emerging Markets Finance and Trade
Pages: 186-196
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S513
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S513
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:186-196




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Cheng Wu
Author-X-Name-First: Ming-Cheng
Author-X-Name-Last: Wu
Author-Name: I-Cheng Lin
Author-X-Name-First: I-Cheng
Author-X-Name-Last: Lin
Author-Name: Meng-Fang Chen
Author-X-Name-First: Meng-Fang
Author-X-Name-Last: Chen
Title: Option-Based Compensation, Corporate Investment Policy, and Stock Repurchases
Abstract: 
 Taking account of the business life cycle, this paper investigates the impact of the proceeds associated with stock option exercises on investment expenditures and stock repurchases. The results reveal that the proceeds associated with option exercises could add internal funds to firms and contribute to investment in research and development and capital expenditures, especially in the growth stage of a firm’s life cycle. This paper also shows the positive relationship between option proceeds and stock repurchases in the stagnant stage of that cycle. The empirical results further suggest that stock repurchases may substitute for dividends. In summary, the paper empirically demonstrates that stock options not only encourage employees to work harder, but also create more funds for the firm.
Journal: Emerging Markets Finance and Trade
Pages: 197-213
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S514
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S514
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:197-213




Template-Type: ReDIF-Article 1.0
Author-Name: Ting-Yi Wu
Author-X-Name-First: Ting-Yi
Author-X-Name-Last: Wu
Title: Combining the Effects of OLS and Spread on Futures Hedging: Evidence from the Taiwan Stock Index
Abstract: 
 This study proposes a dynamic hedge ratio, the combined ordinary least squares spread (COLSS), which combines the hedge ratio of ordinary least squares and the value of spread. Using this dynamic ratio for hedging with futures contracts, one can replace spot risk with spread risk. The COLSS captures not only the long-run equilibrium between spot and futures returns, but also the short-run deviation from equilibrium. The spread is forecast by one-period lagged stock market factors and high-order moments that are estimated by an options model. In the in-sample and out-of-sample tests, the COLSS strategy achieves significant risk reduction and outperforms the alternative models by a large utility improvement.
Journal: Emerging Markets Finance and Trade
Pages: 214-228
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S515
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S515
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:214-228




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Zhang
Author-X-Name-First: Hong
Author-X-Name-Last: Zhang
Author-Name: Fei Yang
Author-X-Name-First: Fei
Author-X-Name-Last: Yang
Author-Name: Fenjie Long
Author-X-Name-First: Fenjie
Author-X-Name-Last: Long
Title: Credit Crunch and Target Capital Structure: Empirical Studies Based on Natural Experimentin China
Abstract: 
 Data from China’s credit crunch, which started in 2007, is utilized to establish a natural experiment to investigate the impact of the credit crunch on target capital structures. The sample consists of 1,128 listed companies in China during the period 2000–2011. The interest-bearing debt to total assets ratio is used as a representative indicator for capital structures. The results indicate that the credit crunch was associated with a decrease in the target debt ratios for all listed companies. Small firms, privately owned enterprises, and firms with weak mortgage capabilities responded more sensitively to the credit crunch by showing a substantial decrease in target debt ratios.
Journal: Emerging Markets Finance and Trade
Pages: 229-244
Issue: S5
Volume: 50
Year: 2014
Month: 9
X-DOI: 10.2753/REE1540-496X5005S516
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5005S516
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S5:p:229-244




Template-Type: ReDIF-Article 1.0
Author-Name: Tingfeng Jiang
Author-X-Name-First: Tingfeng
Author-X-Name-Last: Jiang
Author-Name: Qiuling Hua
Author-X-Name-First: Qiuling
Author-X-Name-Last: Hua
Title: Option Pricing for TGARCH-M with GED Based on Improved EEMD
Abstract: 
 Although option pricing plays an important role in risk management and investments, accurately pricing options remains challenging because of the increasingly complicated fluctuations in asset price processes. This article proposes a new option pricing model, the threshold GARCH with generalized error distribution (TGARCH-M with GED), based on an improved EEMD. By considering three key factors in the option pricing framework: different frequency risks, information asymmetry and non-normality, we show this novel model can capture more volatility features. Furthermore, the empirical results indicate we obtain better parameter estimation results and fewer pricing errors through comparative analysis. Our research provides meaningful guidance and new insights in the fields of risk management and investment.
Journal: Emerging Markets Finance and Trade
Pages: 2929-2948
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2018.1561365
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1561365
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhi Su
Author-X-Name-First: Zhi
Author-X-Name-Last: Su
Author-Name: Man Lu
Author-X-Name-First: Man
Author-X-Name-Last: Lu
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: Chinese Stock Returns and the Role of News-Based Uncertainty
Abstract: 
 Academic research relies extensively on fundamentals to forecast stock returns, with relatively little attention paid to the news channel. To fill this gap, we use the NVIX as a proxy for news-based uncertainty, to investigate its predictive power for Chinese stock returns wavelet analysis and prediction framework. We find that the long-term NVIX statistically and economically predicts Chinese stock returns in an in-sample and out-of-sample analysis, while the short-term NVIX almost has no predictability. In addition, we confirm the links between the long-term NVIX and the US and Chinese real economy, which might be why the long-term NVIX has good predictability for Chinese stock returns.
Journal: Emerging Markets Finance and Trade
Pages: 2949-2969
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2018.1562898
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562898
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:2949-2969




Template-Type: ReDIF-Article 1.0
Author-Name: Ping Li
Author-X-Name-First: Ping
Author-X-Name-Last: Li
Author-Name: Hui Meng
Author-X-Name-First: Hui
Author-X-Name-Last: Meng
Author-Name: Zengpeng Li
Author-X-Name-First: Zengpeng
Author-X-Name-Last: Li
Title: An Empirical Analysis of the Impact of Credit Risk Mitigation Warrants on Bonds: Evidence in Chinese Markets
Abstract: 
 Credit risk mitigation warrants (CRMW), sometimes called Chinese credit default swaps (CDS), are created by institutions other than the issuer of an underlying bond to provide credit risk protection for the holder of the warrant on the underlying debt. In this paper, we investigate the impact of CRMW on the Chinese bond market by examining whether trading in them is beneficial for the underlying secondary corporate bond market. We employ period-partitioned regressions to analyze all the observations in our dataset in the absence of continuous daily trading, because bonds often trade discretely. We find that after CRMW trading was introduced, the efficiency of the bond market improved, but not bond pricing and liquidity.
Journal: Emerging Markets Finance and Trade
Pages: 2970-2981
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2019.1588107
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1588107
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Template-Type: ReDIF-Article 1.0
Author-Name: Jing Hao
Author-X-Name-First: Jing
Author-X-Name-Last: Hao
Author-Name: Xiong Xiong
Author-X-Name-First: Xiong
Author-X-Name-Last: Xiong
Author-Name: Feng He
Author-X-Name-First: Feng
Author-X-Name-Last: He
Author-Name: Feng Ma
Author-X-Name-First: Feng
Author-X-Name-Last: Ma
Title: Price Discovery in the Chinese Stock Index Futures Market
Abstract: 
 We investigate China’s three stock index futures, and their underlying index in Chinese financial markets, to test their long- and short-run price discovery ability. Additionally, we analyze the regulation change of September 7, 2015, which greatly affected the futures market by imposing restrictions on trading volumes. The results suggest that the futures market tends to dominate price discovery compared with the corresponding stock indices, and that this effect became stronger in the post-regulation period. However, CSI 500 index futures initiate price discovery in the futures market, whereas the SSE50 lead spot market indices before the September 2015 regulation. A crash in CSI 500 futures would easily result in a market-wide crisis, as we conclude from analysis of monthly price discovery dynamics. This suggests one possible explanation for the market crash of 2015. Our results provide the first description of whole futures market price discovery characteristics in the Chinese stock market.
Journal: Emerging Markets Finance and Trade
Pages: 2982-2996
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2019.1598368
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1598368
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:2982-2996




Template-Type: ReDIF-Article 1.0
Author-Name: Yukun Shi
Author-X-Name-First: Yukun
Author-X-Name-Last: Shi
Author-Name: Hao Zhang
Author-X-Name-First: Hao
Author-X-Name-Last: Zhang
Author-Name: Yaofei Xu
Author-X-Name-First: Yaofei
Author-X-Name-Last: Xu
Author-Name: Yang Zhao
Author-X-Name-First: Yang
Author-X-Name-Last: Zhao
Title: The Term Structure of Option-Implied Volatility and Future Realized Volatility
Abstract: 
 We extract the short-, medium-, and long-term factors from the term structure of the option-implied volatility (OIV) of the S&P 500, the FTSE 100, and the Chinese 50 Exchange-Traded Funds (ETF), using an extension of the Nelson-Siegel (N-S) model and use estimated factors to predict future realized volatility (FRV) in the US, UK, and Chinese markets. Several interesting findings emerged from our study. First, we confirmed that the VIX is more informative than historical realized volatility (HRV) in predicting FRV. Second, we find that the volatility term structure contains some additional information compared with the VIX and HRV. Third, we verify that the three factors extracted from the N-S model are strongly cointegrated, related to volatilities. Moreover, based on the normalized error term of the cointegrated pairs, we construct straddles and delta-hedging option trading strategies. Without taking transaction costs into account, the straddle call trading strategy achieves a mean return of 37.59% monthly, and, at the same time, the exponential cumulative returns for the straddle call strategies are 4.2411 at a threshold of 1.1 in the S&P 500. As the threshold increases, the volume of transactions declines, leading to a fall in cumulative mean returns.
Journal: Emerging Markets Finance and Trade
Pages: 2997-3022
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2019.1612360
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1612360
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:2997-3022




Template-Type: ReDIF-Article 1.0
Author-Name: Huaping Zhang
Author-X-Name-First: Huaping
Author-X-Name-Last: Zhang
Author-Name: Jianhua Ye
Author-X-Name-First: Jianhua
Author-X-Name-Last: Ye
Author-Name: Feifei Wei
Author-X-Name-First: Feifei
Author-X-Name-Last: Wei
Author-Name: Rafique Kashif
Author-X-Name-First: Rafique
Author-X-Name-Last: Kashif
Author-Name: Ceyuan Cao
Author-X-Name-First: Ceyuan
Author-X-Name-Last: Cao
Title: Monetary Policy Adjustment, Corporate Investment, and Stock Liquidity—Empirical Evidence from Chinese Stock Market
Abstract: 
 With the tightening monetary policy gradually exiting and the increasing attention to market value management, stock liquidity has become a research focus. Based on the actual situation of China’s capital market, this article empirically studies the impacts of corporate investment on stock liquidity and the underlying influencing mechanism. The study found that (1) the investment of A-share listed companies significantly reduced the market risk level of the corporate stocks and enhanced the stock liquidity; (2) corporate market risk has partial mediating effect on the relationship between corporate investment and stock liquidity; (3) during the tightening monetary policy period and in firms with high financial constraints, corporate investment has more positive effect on stock liquidity, and the mediating effect of corporate market risk is more obvious. This study clarifies the influencing mechanism of micro corporate investment and macro monetary policies on stock liquidity, and enriches the research on determinants of stock liquidity. Finally, based on the conclusions, this article puts forward policy recommendations on the credit resource allocation structure, investor education, corporate investment evaluation, and corporate market value management.
Journal: Emerging Markets Finance and Trade
Pages: 3023-3038
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2019.1612363
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1612363
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:3023-3038




Template-Type: ReDIF-Article 1.0
Author-Name: Ning Zhang
Author-X-Name-First: Ning
Author-X-Name-Last: Zhang
Author-Name: Wuyu Wang
Author-X-Name-First: Wuyu
Author-X-Name-Last: Wang
Title: Research on Balance Strategy of Supervision and Incentive of P2P Lending Platform
Abstract: 
 In recent years, numerous risk events of P2P online lending platforms in China have highlighted the importance of government supervision. From the perspective of government dual-objective optimization, two strategies “First regulate and then motivate” and “First motivate and then regulate” are presented, respectively. The timing strategy choice of supervision and incentive of P2P platform is analyzed through game theory modeling and numerical simulation. The results show that the government should first motivate and then regulate the P2P lending platforms; moreover, in the parallel stage of regulatory and incentive mechanism, the government should pay more attention to the economic benefits brought by the P2P lending industry so as to achieve the dual-objective optimization and utility maximization. This paper not only enriches the theoretical literature on management of P2P lending platforms but also provides practical guidance for the government on the supervision of P2P lending industry or other emerging industries.
Journal: Emerging Markets Finance and Trade
Pages: 3039-3057
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2019.1624523
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1624523
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:3039-3057




Template-Type: ReDIF-Article 1.0
Author-Name: Hyunchul Lee
Author-X-Name-First: Hyunchul
Author-X-Name-Last: Lee
Author-Name: Kyungtag Lee
Author-X-Name-First: Kyungtag
Author-X-Name-Last: Lee
Author-Name: Xinrong Zhang
Author-X-Name-First: Xinrong
Author-X-Name-Last: Zhang
Title: Time-Varying Comovement of Chinese Stock and Government Bond Markets: Flight to Safe Haven
Abstract: 
 This article examines the impact of financial market uncertainty on comovement between Chinese government bond and stock markets proxied by realized correlations of the asset returns over the whole sample period 2003Q.2–2016Q.4. We find evidence that a future financial market uncertainty has a negative effect on the comovement between the two markets. This suggests that the flight to safe haven phenomenon remains valid for interdependence of Chinese stock and government bond markets. Our main finding is crucial for joint pricing for stock and bond assets in their portfolios and for stabilizing the financial markets.
Journal: Emerging Markets Finance and Trade
Pages: 3058-3068
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2018.1543583
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1543583
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:3058-3068




Template-Type: ReDIF-Article 1.0
Author-Name: Shaofang Li
Author-X-Name-First: Shaofang
Author-X-Name-Last: Li
Title: Banking Sector Reform, Competition, and Bank Stability: An Empirical Analysis of Transition Countries
Abstract: 
 This study tests the impact of banking sector reform and competition on bank stability based on unbalanced data from 22 transition countries from 1998 to 2016. The initial results not only highlight the positive relationship between market power and bank fragility but also confirm the positive relationship between bank reform and stability. Our findings also show that both higher activity restrictions and more explicit guidelines for asset diversification increase bank stability, but this positive effect significantly weakens for banks with higher market power. More stringent capital requirements in combination with higher market power increase the risk of bank insolvency.
Journal: Emerging Markets Finance and Trade
Pages: 3069-3093
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2018.1540349
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1540349
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:3069-3093




Template-Type: ReDIF-Article 1.0
Author-Name: Karol Szafranek
Author-X-Name-First: Karol
Author-X-Name-Last: Szafranek
Author-Name: Aleksandra Hałka
Author-X-Name-First: Aleksandra
Author-X-Name-Last: Hałka
Title: Determinants of Low Inflation in an Emerging, Small Open Economy through the Lens of Aggregated and Disaggregated Approach
Abstract: 
 We analyze the sources of the protracted period of exceptionally low inflation in the emerging, small open economy of Poland using a structural Bayesian Vector Autoregression (BVAR) identified with a mixture of zero and sign restrictions. We find that excessive disinflation has been caused by deteriorating domestic conditions whilst deflation has resulted from the convolution of waning global demand and plummeting oil prices. Disaggregated analysis corroborates the conclusion from the aggregated approach but reveals considerable heterogeneities in the sensitivity of inflation components to the identified shocks. We conclude that the structural analysis on the disaggregated price indices unveils additional information for the monetary policy conduct.
Journal: Emerging Markets Finance and Trade
Pages: 3094-3111
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2018.1541793
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1541793
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:3094-3111




Template-Type: ReDIF-Article 1.0
Author-Name: Fiza Qureshi
Author-X-Name-First: Fiza
Author-X-Name-Last: Qureshi
Author-Name: Habib Hussain Khan
Author-X-Name-First: Habib Hussain
Author-X-Name-Last: Khan
Author-Name: Ijaz ur Rehman
Author-X-Name-First: Ijaz ur
Author-X-Name-Last: Rehman
Author-Name: Saba Qureshi
Author-X-Name-First: Saba
Author-X-Name-Last: Qureshi
Author-Name: Abdul Ghafoor
Author-X-Name-First: Abdul
Author-X-Name-Last: Ghafoor
Title: The Effect of Monetary and Fiscal Policy on Bond Mutual Funds and Stock Market: An International Comparison
Abstract: 
 This study examines the relationship between bond fund flows, stock market returns and financial policies in developed and developing economies. The findings suggest a bidirectional (negative) relationship between bond flows and market returns in the presence of fiscal and monetary policy for developed countries. However, in the case of developing countries, bond flows follow the previous performance of market returns. Moreover, an expansionary monetary stance has a negative impact on bond flows while an expansionary fiscal policy exerts a positive influence on them. In addition, bond funds flourish in times of low economic activity in both developed and developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 3112-3130
Issue: 13
Volume: 55
Year: 2019
Month: 10
X-DOI: 10.1080/1540496X.2018.1535432
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1535432
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:3112-3130




Template-Type: ReDIF-Article 1.0
Author-Name: Firat Demir
Author-X-Name-First: Firat
Author-X-Name-Last: Demir
Author-Name: Li Su
Author-X-Name-First: Li
Author-X-Name-Last: Su
Title: Total Factor Productivity, Foreign Direct Investment, and Entry Barriers in the Chinese Automotive Industry
Abstract: 
 We explore three questions on foreign direct investment (FDI): (1) What are the differences in entry barriers for foreign, public, and private investors? (2) What are the effects of past productivity levels on future foreign direct investment (FDI) decisions? (3) What is the effect of equity structure on future total factor productivity (TFP) levels? The empirical results based on a monopolistic competition model and using a firm-level data set from the Chinese automobile industry suggest that foreign investors face higher entry barriers and react stronger to past TFP levels. FDI is also found to improve future TFP more than other forms of investment. Finally, World Trade Organization (WTO) accession is found to reduce entry barriers for foreign and domestic private investors while increasing entry barriers for public investors.
Journal: Emerging Markets Finance and Trade
Pages: 302-321
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2015.1011519
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011519
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:302-321




Template-Type: ReDIF-Article 1.0
Author-Name: Fatih Özatay
Author-X-Name-First: Fatih
Author-X-Name-Last: Özatay
Title: Turkey’s Distressing Dance With Capital Flows
Abstract: 
 In the aftermath of the 2001 crisis, Turkey took important steps toward achieving macroeconomic and financial stability. Together with favorable international financial conditions, this helped to achieve a high per capita GDP growth. The high-growth period failed to be sustainable, however. From 2008 to 2013, Turkey had a volatile and low growth. In this article, I aim to analyze the underlying reasons of high volatility of growth and discuss short-term economic policy alternatives to mitigate such undesired fluctuations.
Journal: Emerging Markets Finance and Trade
Pages: 336-350
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2015.1011539
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011539
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:336-350




Template-Type: ReDIF-Article 1.0
Author-Name: Goran Vukšić
Author-X-Name-First: Goran
Author-X-Name-Last: Vukšić
Title: Effects of Private Ownership, Trade, and Foreign Direct Investment on Labor Productivity Growth in Transition Economies: Evidence from the Croatian Manufacturing Industry
Abstract: 
 In this study, we investigate the determinants of labor productivity dynamics in transition economies using data from Croatian manufacturing industries. Capital intensity growth and human capital accumulation have been significant contributors to stronger productivity gains. Private-sector development has positively affected productivity growth—but mostly through the increasing role of new private companies. Still, unfinished privatization represents a significant obstacle to stronger productivity gains. The effect of increasing trade openness is significant but negative, most likely owing to weak export competitiveness of Croatian companies. Neither greenfield nor (predominant) brownfield foreign direct investment inflows have contributed to higher labor productivity growth. Further privatization and structural reforms seem to be the most promising policy measures that need to be undertaken in order to achieve higher productivity gains.
Journal: Emerging Markets Finance and Trade
Pages: 322-335
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2015.1011540
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011540
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:322-335




Template-Type: ReDIF-Article 1.0
Author-Name: Xingwang Qian
Author-X-Name-First: Xingwang
Author-X-Name-Last: Qian
Author-Name: Jesus Sandoval-Hernandez
Author-X-Name-First: Jesus
Author-X-Name-Last: Sandoval-Hernandez
Title: Corruption Distance and Foreign Direct Investment
Abstract: 
 We study the effects of “corruption distance,” defined as the difference in corruption levels between country pairs on bilateral foreign direct investment (FDI). Using a “gravity” model and the Heckman (1979) two-stage framework on a data set of forty-five countries from 1997 to 2007, we find that corruption distance adversely influences both the likelihood of FDI and the volume of FDI. A novel finding in this study is that we identify the asymmetric effect of corruption distance and find that the positive corruption distance, defined as the corruption distance from a high corruption source to a low corruption host country, is the prominent one that affects the behavior of bilateral FDI.
Journal: Emerging Markets Finance and Trade
Pages: 400-419
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2015.1047301
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1047301
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:400-419




Template-Type: ReDIF-Article 1.0
Author-Name: Lu Yang
Author-X-Name-First: Lu
Author-X-Name-Last: Yang
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: Hot Money and Business Cycle Volatility: Evidence from Selected ASEAN Countries
Abstract: 
 This study investigates the linkage between speculative capital and business cycles in Malaysia, Thailand, and Singapore from 1981:Q1 to 2012:Q4. We use the multivariate Markov-switching intercept autoregressive heteroskedasticity vector autoregressive (MSIAH-VAR) model and observe that while speculative shocks during the tranquil period temporarily promoted Malaysia’s economic growth, they temporarily damaged economic growth in Thailand and Singapore. Moreover, speculative capital flows from abroad exacerbated economic volatility and damaged economic growth prospects for all these countries during the crisis period. Thus, it may be important for policymakers to take appropriate actions against the potential risk of economic instability and market volatility from speculative capital.
Journal: Emerging Markets Finance and Trade
Pages: 351-363
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2015.1047302
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1047302
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:351-363




Template-Type: ReDIF-Article 1.0
Author-Name: Laivi Laidroo
Author-X-Name-First: Laivi
Author-X-Name-Last: Laidroo
Title: Bank Ownership and Lending: Does Bank Ownership Matter?
Abstract: 
 Using the Central and Eastern European (CEE) bank-level data covering 2004–12, this article examines the differences in foreign-owned banks’ loan growth and its determinants in comparison with privately-owned domestic banks. The results indicate the greatest differences in the context of bank capital and liquidity. Bank capital remains an important loan growth determinant only for domestic private banks during the non-crisis periods and bank liquidity is of greater importance to domestic private banks during the crisis periods. This highlights local regulatory authorities’ limited ability to harness loan growth and excessive risk-taking during the non-crisis periods and points at the benefits of multinational banking groups’ internal capital markets during the crisis periods.
Journal: Emerging Markets Finance and Trade
Pages: 285-301
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2015.1095032
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1095032
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:285-301




Template-Type: ReDIF-Article 1.0
Author-Name: Carmen M. Reinhart
Author-X-Name-First: Carmen M.
Author-X-Name-Last: Reinhart
Author-Name: Miguel Angel Santos
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Santos
Title: From Financial Repression to External Distress: The Case of Venezuela
Abstract: 
 Recent work suggests a connection between domestic debt and external default. We examine potential linkages for Venezuela, where the evidence reveals a nexus among domestic debt, financial repression, and external vulnerability. The financial repression tax (as a share of GDP) is similar to OECD economies, in spite of higher debt ratios in the latter. The financial repression “tax rate” is higher in years of exchange controls and legislated interest rate ceilings. We document a link between domestic disequilibrium and a weakening of the net foreign asset position via private capital flight. We suggest these findings are not unique to Venezuela.
Journal: Emerging Markets Finance and Trade
Pages: 255-284
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2015.1105614
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1105614
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:255-284




Template-Type: ReDIF-Article 1.0
Author-Name: Liu Hai Yue
Author-X-Name-First: Liu Hai
Author-X-Name-Last: Yue
Author-Name: Jiang Qiang
Author-X-Name-First: Jiang
Author-X-Name-Last: Qiang
Author-Name: Tang Ying Kai
Author-X-Name-First: Tang Ying
Author-X-Name-Last: Kai
Title: Determination of Renminbi Equilibrium Exchange Rate, Misalignment, and Official Intervention
Abstract: 
 We use an equilibrium real exchange rates (ERER) model to estimate the equilibrium exchange rate (EER) and hence the misalignment between the EER and actual renminbi (RMB) exchange rate with quarterly data from 1994 to 2012. The effect of various policy changes on this misalignment with a focus on official intervention is then examined. We find that the RMB EER rose 45 percent from 1994 to 2012, mainly due to trade policy and relative technological progress. The central bank’s (the People’s Bank of China) official intervention had quick effect on the misalignment, especially after 2005.
Journal: Emerging Markets Finance and Trade
Pages: 420-433
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2016.1110448
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1110448
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:420-433




Template-Type: ReDIF-Article 1.0
Author-Name: Liang Chang
Author-X-Name-First: Liang
Author-X-Name-Last: Chang
Author-Name: Kebin Deng
Author-X-Name-First: Kebin
Author-X-Name-Last: Deng
Author-Name: Xuan Wang
Author-X-Name-First: Xuan
Author-X-Name-Last: Wang
Title: The Dynamic Speed of Cash-Holding Adjustment in a Transition Economy: A New Approach and Evidence
Abstract: 
 Using a new approach, we estimate the speed of cash-holding adjustment for a typical transitional economy by using Chinese listed firms’ samples over 1999–2011. First, we use model-averaging techniques to identify reliably important cash-holding determinants. Second, we conduct Monte Carlo simulation using the real finance data to evaluate appropriateness of the empirical estimator from a variety of dynamic estimation methods and suggest an optimized system of generalized method of moments (OPT-GMM) as an appropriate econometric approach for speed estimation. Finally, we get the speed of 46 percent, which is significantly lower than the contemporary speed in the United Kingdom and the United States.
Journal: Emerging Markets Finance and Trade
Pages: 434-448
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2016.1110460
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1110460
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:434-448




Template-Type: ReDIF-Article 1.0
Author-Name: Weixian Cai
Author-X-Name-First: Weixian
Author-X-Name-Last: Cai
Author-Name: Jian Chen
Author-X-Name-First: Jian
Author-X-Name-Last: Chen
Author-Name: Hui Ding
Author-X-Name-First: Hui
Author-X-Name-Last: Ding
Title: Medical Insurance Effects on Household Durable Goods Consumption: Evidence from China
Abstract: 
 In this article, we employ the China Health and Nutrition Survey (CHNS) data to investigate the effect of medical insurance on household durable goods consumption, which is closely related to China’s future rapid economic growth. We apply a logit regression model and find that medical insurance significantly promotes household durable goods consumption. Moreover, urban and rural households have different consumption choices when they are covered by medical insurance. To be more specific, urban households with medical insurance augment their consumption of refrigerators, washing machines, and air conditioners; rural households with medical insurance increase their purchases of color TVs, refrigerators, washing machines, air conditioners, and computers.
Journal: Emerging Markets Finance and Trade
Pages: 449-460
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2016.1110461
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1110461
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:449-460




Template-Type: ReDIF-Article 1.0
Author-Name: Ye Guo
Author-X-Name-First: Ye
Author-X-Name-Last: Guo
Author-Name: Wenbin Xu
Author-X-Name-First: Wenbin
Author-X-Name-Last: Xu
Author-Name: Zhiyuan Zhang
Author-X-Name-First: Zhiyuan
Author-X-Name-Last: Zhang
Title: Leverage, Consumer Finance, and Housing Prices in China
Abstract: 
 In this article, we focus on the effect of household borrowing behavior on housing prices in China, under the background of rapid growth of consumer finance during the past decade. We build a micromodel to deduce the relationship between consumers’ leverage, housing enterprises’ leverage, and housing prices and use a dynamic panel model and panel error correction model to do the empirical work. The results show that the first- and second-tier cities of China are greatly influenced by leverages, the second-tier cities also by local growth, and the third-tier cities are weakly affected by leverages but greatly affected by the land prices. Further explanations and discussions of the empirical results are given accordingly.
Journal: Emerging Markets Finance and Trade
Pages: 461-474
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2016.1110462
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1110462
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Template-Type: ReDIF-Article 1.0
Author-Name: Guangning Tian
Author-X-Name-First: Guangning
Author-X-Name-Last: Tian
Author-Name: Jianjun Li
Author-X-Name-First: Jianjun
Author-X-Name-Last: Li
Author-Name: Ying Xue
Author-X-Name-First: Ying
Author-X-Name-Last: Xue
Author-Name: Sara Hsu
Author-X-Name-First: Sara
Author-X-Name-Last: Hsu
Title: Systemic Risk in the Chinese Shadow Banking System: A Sector-Level Perspective
Abstract: 
 We propose to measure the systemic risk in the shadow banking sector. Instead of testing how many institutions will fail due to the initial breakdown of one institution as extant network models do, we associate the systemic risk of one shadow banking sector with the total amount of unexpected losses it might generate both directly and indirectly. Our model focuses on balance sheet contagion and applies a loop algorithm to risk transfer. The result shows that trust companies were the main culprit of financial instability and commercial banks assumed the main risks over 2007–12 in the Chinese shadow banking system.
Journal: Emerging Markets Finance and Trade
Pages: 475-486
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2016.1110465
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1110465
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:475-486




Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Che Tsai
Author-X-Name-First: Wei-Che
Author-X-Name-Last: Tsai
Author-Name: Wei-Yuan Wang
Author-X-Name-First: Wei-Yuan
Author-X-Name-Last: Wang
Author-Name: Po-Hsin Ho
Author-X-Name-First: Po-Hsin
Author-X-Name-Last: Ho
Author-Name: Chih-Yung Lin
Author-X-Name-First: Chih-Yung
Author-X-Name-Last: Lin
Title: Bank Loan Supply in the Financial Crisis: Evidence from the Role of Political Connection
Abstract: 
 We investigate the changes in bank loan supply during the 2007–2008 financial crisis, with particular focus on the influence of political connections. We demonstrate that although political connections can help firms obtain lower loan rates during the precrisis period, such benefits disappear in the postcrisis period. Moreover, the loan acceptance ratio for politically connected firms is enhanced in the postcrisis period, especially for the politically connected firms with high risks. Evidence reveals that the focus of the benefits for politically connected firms is more likely to shift from the loan rate to the loan acceptance ratio during the postcrisis period.
Journal: Emerging Markets Finance and Trade
Pages: 487-497
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2016.1110466
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1110466
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:487-497




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Hee Kim
Author-X-Name-First: Jong-Hee
Author-X-Name-Last: Kim
Title: A Study on the Effect of Financial Inclusion on the Relationship Between Income Inequality and Economic Growth
Abstract: 
 In this article, we attempt to estimate whether financial inclusion, expressed as financial accessibility, has a positive effect on reducing income inequality. Furthermore, we estimate the effect of such financial inclusion on economic growth by reducing income inequality. From the results of our empirical analysis, we can draw the following three conclusions. First, income inequality has a very negative effect on GDP growth. The negative relationship between income inequality and GDP growth is strong in low-income countries. In addition, income inequality has a stronger effect on reducing economic growth in high-fragility countries. Second, progressivity is not a major factor in reducing income inequality in low-income countries or in high-fragility countries. Finally, financial inclusion improves the relationship between income inequality and economic growth. The reduction in income inequality through financial inclusion changes the negative relationship between income inequality and economic growth into a positive relationship. This trend is stronger in high-fragility countries than in low-fragility countries.
Journal: Emerging Markets Finance and Trade
Pages: 498-512
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2016.1110467
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1110467
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:498-512




Template-Type: ReDIF-Article 1.0
Author-Name: Yanping Huang
Author-X-Name-First: Yanping
Author-X-Name-Last: Huang
Author-Name: Yu Liu
Author-X-Name-First: Yu
Author-X-Name-Last: Liu
Author-Name: Huakun Wu
Author-X-Name-First: Huakun
Author-X-Name-Last: Wu
Title: The Finance–Growth Nexus and Poverty Reduction in Western China
Abstract: 
 In this article, we study the effect of financial development (FD) on economic growth in western China. Special attention is paid to the western region because of the large-scale development strategy in West China. We specify the regression models based on the endogenous growth theory. The empirical results show that (1) FD can promote economic growth mainly through improving TFP; (2) FD is more important than human capital in promoting GDP growth; (3) The effect of FD on TFP growth is significant statistically in all regions, but it is the most significant economically in the western region of China.
Journal: Emerging Markets Finance and Trade
Pages: 513-521
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2016.1110469
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1110469
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:513-521




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Lin Bu
Author-X-Name-First: Lin
Author-X-Name-Last: Bu
Author-Name: Kun-Li Lin
Author-X-Name-First: Kun-Li
Author-X-Name-Last: Lin
Author-Name: Meng-Wen Wu
Author-X-Name-First: Meng-Wen
Author-X-Name-Last: Wu
Title: Twin Booms: The Lead–Lag Relation Between Credit and Housing Booms
Abstract: 
 In this study, we examine the causal relation between credit (proxied by credit-to-GDP ratio) and house markets (proxied by house price index) using data of using thirty-six countries for the period 1996–2012. We find a bidirectional causal relation between the two markets using the whole sample. Then, we find that during the non–twin boom period, the results are the same as those using the whole sample. During the twin boom periods, the two markets are not linked using the boom definition of deviation from the trend, and the housing market leads the credit market using the boom definition of the growth rate exceeding a certain 15 percent.
Journal: Emerging Markets Finance and Trade
Pages: 522-537
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2016.1110470
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1110470
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:522-537




Template-Type: ReDIF-Article 1.0
Author-Name:  Lestano
Author-X-Name-First: 
Author-X-Name-Last: Lestano
Author-Name: Gerard H. Kuper
Author-X-Name-First: Gerard H.
Author-X-Name-Last: Kuper
Title: Correlation Dynamics in East Asian Financial Markets
Abstract: 
 We examine the dynamic relationship between stock returns and exchange rate changes using daily data from January 1994 to September 2013 for six East Asian countries. We use the multivariate GARCH-DCC model in order to disclose the relationship between stock markets and foreign exchange markets which is important for understanding financial stability. The estimation results reveal time varying correlations in the pre- and post-Asian crisis and the Global Financial Crisis periods for all countries. The correlations are stronger when the crisis intensifies. The degree of interdependence between both markets reflects a mutual markets response to shocks and changes in policy.
Journal: Emerging Markets Finance and Trade
Pages: 382-399
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2014.998560
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998560
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:382-399




Template-Type: ReDIF-Article 1.0
Author-Name: Andrew J. Filardo
Author-X-Name-First: Andrew J.
Author-X-Name-Last: Filardo
Author-Name: Pierre L. Siklos
Author-X-Name-First: Pierre L.
Author-X-Name-Last: Siklos
Title: Prolonged Reserves Accumulation, Credit Booms, Asset Prices and Monetary Policy in Asia
Abstract: 
 This article examines past evidence of prolonged periods of foreign exchange reserves accumulation in the Asia-Pacific region. Several proxies for this unobserved variable are considered, including a newly proposed one based on a factor model. We focus on identifying periods of prolonged interventions and identify its key macro-financial determinants. Two broad conclusions emerge from the stylized facts and the econometric evidence. First, the best protection against costly reserves accumulation is a more flexible exchange rate. Second, the necessity to accumulate reserves as a bulwark against goods price inflation is misplaced. Instead, there is a strong link between asset price movements and the likelihood of accumulating foreign exchange reserves that are costly. Policy implications are also drawn.
Journal: Emerging Markets Finance and Trade
Pages: 364-381
Issue: 2
Volume: 52
Year: 2016
Month: 2
X-DOI: 10.1080/1540496X.2014.998562
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998562
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:2:p:364-381




Template-Type: ReDIF-Article 1.0
Author-Name: Jinyang Wang
Author-X-Name-First: Jinyang
Author-X-Name-Last: Wang
Author-Name: Xiliang Liu
Author-X-Name-First: Xiliang
Author-X-Name-Last: Liu
Author-Name: Xuelian Li
Author-X-Name-First: Xuelian
Author-X-Name-Last: Li
Author-Name: Xiang Deng
Author-X-Name-First: Xiang
Author-X-Name-Last: Deng
Title: Is Monetary Cooperation Among the Four Regions Across the Taiwan Strait Feasible?
Abstract: 
 Drawing on the optimum currency area (OCA) and exchange rate theories, we use an extended OCA index approach to assess the feasibility of regional monetary cooperation in the four regions across the Taiwan Strait (FRTS). In addition to more common variables, such as differences in economic structure, inflation rates, and interest rates, we find that the asymmetric shock in money supply is an important factor affecting the comprehensive cost of regional monetary cooperation among the FRTS. We conclude that regional monetary cooperation among the FRTS is feasible according to empirical analysis of OCA indexes between the FRTS and a comparison of the OCA indexes between the FRTS and the European Union (EU).
Journal: Emerging Markets Finance and Trade
Pages: 1-11
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2015.1127018
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1127018
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:1-11




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoping He
Author-X-Name-First: Xiaoping
Author-X-Name-Last: He
Author-Name: Xin Yao
Author-X-Name-First: Xin
Author-X-Name-Last: Yao
Title: Foreign Direct Investments and the Environmental Kuznets Curve: New Evidence from Chinese Provinces
Abstract: 
 By employing a panel smooth transition regression (PSTR), this article analyzes the impacts of economic growth and foreign direct investment (FDI) on air pollutant emissions. The results reveal the regime-switching effects in the income-pollution relationship as well. Specifically, an inverted-U shape is found in the relationship between per capita income and two air pollutant emissions, soot and dust, which confirms the environmental Kuznets curve (EKC) hypothesis. Significant influence of FDI on EKC relationships is found, which provides the evidence that the pollution haven hypothesis holds to some extent.
Journal: Emerging Markets Finance and Trade
Pages: 12-25
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1138813
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1138813
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Template-Type: ReDIF-Article 1.0
Author-Name: Augusto Castillo
Author-X-Name-First: Augusto
Author-X-Name-Last: Castillo
Author-Name: Jorge Niño
Author-X-Name-First: Jorge
Author-X-Name-Last: Niño
Author-Name: Salvador Zurita
Author-X-Name-First: Salvador
Author-X-Name-Last: Zurita
Title: Debt Tax Shields Around the OECD World
Abstract: 
 Taxes affect a company’s optimal capital structure, value, and cost of capital, but their impact depends on the tax regime of the country where the company operates. The OECD classifies the tax regimes of its member countries in seven groups. In this paper we offer a general model that encompasses those seven groups. We show that tax benefits of debt vary significantly across tax systems, and that using either Modigliani and Miller’s (1963) or Miller’s (1977) formulas in other tax regimes can lead to quantitatively important mistakes. We also find a significantly positive relationship between average leverage in OECD countries and our indicator of tax shields.
Journal: Emerging Markets Finance and Trade
Pages: 26-43
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1145112
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1145112
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:26-43




Template-Type: ReDIF-Article 1.0
Author-Name: Fang Wang
Author-X-Name-First: Fang
Author-X-Name-Last: Wang
Title: Which Part of the Chinese Art Market Is More Worth Investing In? Applying the Quantile Regression to Analyze Chinese Oil Paintings 2000–2014
Abstract: 
 This article uses a quantile regression approach to analyze the structure of the hedonic characteristics of 12,701 Chinese oil paintings sold at auctions in China and Hong Kong during the period 2000–2014. A hedonic model for both the full sample and the 0.20, 0.40, 0.60, 0.80, and 0.95 quantiles of the price distribution is estimated. The result indicates that noticeable differences exist in painting characteristics across different price ranges. The empirical evidence also suggests that highly priced Chinese oil paintings have both higher expected returns and less risk than those that are priced lower, which appear to be favorable assets to invest in.
Journal: Emerging Markets Finance and Trade
Pages: 44-53
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1145113
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1145113
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Template-Type: ReDIF-Article 1.0
Author-Name: Sasan Mehrani
Author-X-Name-First: Sasan
Author-X-Name-Last: Mehrani
Author-Name: Mohammad Moradi
Author-X-Name-First: Mohammad
Author-X-Name-Last: Moradi
Author-Name: Hoda Eskandar
Author-X-Name-First: Hoda
Author-X-Name-Last: Eskandar
Title: Institutional Ownership Type and Earnings Quality: Evidence from Iran
Abstract: 
 Institutional ownership is an important factor in corporate governance. Institutional investors play important roles in firms because of their substantial shareholdings and their capability to monitor managers. However, the question is whether they are capable of monitoring the managers. The literature has provided different evidence for the monitoring role of institutional investors. This study attempts to provide insights into the monitoring roles of institutional investors by examining the relationship between institutional ownership and earnings quality on the Tehran Stock Exchange. Institutional investors are classified into two groups, namely active institutional investors and passive institutional investors, based on their monitoring power in Iran. A multidimensional method is used to measure the various aspects of earnings quality, such as earnings response coefficient, predictive value of earnings, discretionary accruals, conservatism, and real earnings management. The results show that institutional ownership has a positive effect on earnings quality. Similar to total institutional ownership, active institutional ownership has positive effects on proxies of earnings quality. Nonetheless, passive institutional ownership does not have any power to affect earnings quality. Moreover, lead-lag tests of the direction of causality suggest that institutional ownership leads to more earnings quality and not the reverse.
Journal: Emerging Markets Finance and Trade
Pages: 54-73
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1145114
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1145114
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:54-73




Template-Type: ReDIF-Article 1.0
Author-Name: Jože Damijan
Author-X-Name-First: Jože
Author-X-Name-Last: Damijan
Author-Name: Črt Kostevc
Author-X-Name-First: Črt
Author-X-Name-Last: Kostevc
Author-Name: Matija Rojec
Author-X-Name-First: Matija
Author-X-Name-Last: Rojec
Title: Not Every Kind of Outward FDI Increases Parent Firm Performance: The Case of New EU Member States
Abstract: 
 Using a large firm-level dataset we investigate what kind of firms from new EU member states from Central and Eastern Europe (CEECs) tend to invest abroad (testing of self-selection hypothesis), and what is the impact of outward FDI on their productivity (testing of learning-by-investing hypothesis). We find that the best firms tend to self-select into outward FDI. There is also a positive effect of outward FDI on productivity growth of investing firms from CEECs, the strongest being in the case of Estonia, Romania, Czech Republic, and Slovakia. The positive impact of becoming a first-time foreign investor is relatively long lasting, but comes into effect only in investments in Western European or other CEECs and in the case of manufacturing subsidiaries.
Journal: Emerging Markets Finance and Trade
Pages: 74-97
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1149059
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1149059
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:74-97




Template-Type: ReDIF-Article 1.0
Author-Name: Kuo-Jung Lee
Author-X-Name-First: Kuo-Jung
Author-X-Name-Last: Lee
Title: The Real Options Component and Market Value of Taiwan Technological Companies
Abstract: 
 Real options valuation has been applied in real investment extensively. However the empirical researches of real options components’ value are seldom studied. This study uses the panel data model to test whether the stock prices of Taiwan listed companies reflect investor’s expectations regarding the value of real options. This article demonstrates that investors cannot ignore the real options components when evaluating stock market value. The results also confirm that the proportion of a firm’s market value not due to assets-in-place is significantly and positively related to the variables of stock beta, skewness of stock returns, size, capital stock, and research and development. In addition, firms with lower firm life cycle have a higher real options value.
Journal: Emerging Markets Finance and Trade
Pages: 98-108
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1149060
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1149060
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Template-Type: ReDIF-Article 1.0
Author-Name: Jung-Wook Kim
Author-X-Name-First: Jung-Wook
Author-X-Name-Last: Kim
Author-Name: Seungyeon Won
Author-X-Name-First: Seungyeon
Author-X-Name-Last: Won
Author-Name: Jung-In Kim
Author-X-Name-First: Jung-In
Author-X-Name-Last: Kim
Title: Additional Credit for Liquidity-Constrained Individuals: High-Interest Consumer Credit in Korea
Abstract: 
 We find that the delinquency probability on formal sector debts of private loan borrowers in Korea increases from 2.4% to 20% in the first year after the borrowing and to 32% in the second year. This increase happens despite private loan borrowers trying to rebuild their financial health by reducing formal sector debts, credit card cash service balances, and credit card purchases during the post-borrowing period. This limits the possibility of moral hazard driving the results. Private loan amounts are positively associated with the delinquency probability after controlling other commonly used variables, suggesting that they contain additional information on the worsening financial situation of an individual.
Journal: Emerging Markets Finance and Trade
Pages: 109-127
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1150835
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1150835
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:109-127




Template-Type: ReDIF-Article 1.0
Author-Name: Sumru Altug
Author-X-Name-First: Sumru
Author-X-Name-Last: Altug
Author-Name: Serdar Kabaca
Author-X-Name-First: Serdar
Author-X-Name-Last: Kabaca
Title: Search Frictions, Financial Frictions, and Labor Market Fluctuations in Emerging Markets
Abstract: 
 This article examines the role of the extensive and intensive margins of labor input in the context of a business cycle model with a financial friction. We document significant variation in the hours worked per worker for many emerging-market economies using manufacturing data. Both employment and hours worked per worker are positively correlated with each other and with output. We show that a search-theoretic context in a small open-economy model requires a small wealth effect to explain these regularities at the expense of a smaller wage response. On the other hand, introducing a financial friction in the form of a working capital requirement can explain the observed movements of labor market variables such as employment and hours worked per worker, as well as other distinguishable business cycle characteristics of emerging economies. These include highly volatile and cyclical real wages, labor share, and consumption.
Journal: Emerging Markets Finance and Trade
Pages: 128-149
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1153466
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1153466
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Template-Type: ReDIF-Article 1.0
Author-Name: Jesús C. Peña-Vinces
Author-X-Name-First: Jesús C.
Author-X-Name-Last: Peña-Vinces
Author-Name: Lourdes Casanova
Author-X-Name-First: Lourdes
Author-X-Name-Last: Casanova
Author-Name: Jorge Guillen
Author-X-Name-First: Jorge
Author-X-Name-Last: Guillen
Author-Name: David Urbano
Author-X-Name-First: David
Author-X-Name-Last: Urbano
Title: International Competitiveness of Small and Medium-Sized Enterprises: Peru, a Latin-American Emerging Market
Abstract: 
 Our research studies the international competitiveness of small- and medium-sized enterprises (SMEs) in an emerging Latin-American country. Using a sample of 100 SMEs in Peru, we find that firms compete abroad with standardized products, which are conditioned by the host-country markets, human capital, and industry cooperation. However, the results show that the age and size of the firm are not determining factors in competing overseas. Our findings open a new agenda for policymakers when interpreting how they should promote and support Latin-American SMEs.
Journal: Emerging Markets Finance and Trade
Pages: 150-169
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1156525
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1156525
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:150-169




Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Tanha
Author-X-Name-First: Hassan
Author-X-Name-Last: Tanha
Author-Name: Michael Dempsey
Author-X-Name-First: Michael
Author-X-Name-Last: Dempsey
Title: Derivatives Usage in Emerging Markets Following the GFC: Evidence from the GCC Countries
Abstract: 
 In this article, we avail of International Accounting Standards IFRS 7 to investigate the usage and motivation of hedging by firms in the Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates). The results of our panel and cross-sectional data logistic regressions indicate a focus on foreign exchange exposure, interest rates risk, and commodity risk in this region. We find that the use of hedging instruments in this region is also influenced positively by the firm’s size and, to a lesser degree, positively by the firm’s gearing ratio and negatively by its propensity to growth. The level of activity, nevertheless, remains lower than is the case for firms globally.
Journal: Emerging Markets Finance and Trade
Pages: 170-179
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1157467
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1157467
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:170-179




Template-Type: ReDIF-Article 1.0
Author-Name: Hishamuddin Abdul Wahab
Author-X-Name-First: Hishamuddin
Author-X-Name-Last: Abdul Wahab
Author-Name: Buerhan Saiti
Author-X-Name-First: Buerhan
Author-X-Name-Last: Saiti
Author-Name: Saiful Azhar Rosly
Author-X-Name-First: Saiful Azhar
Author-X-Name-Last: Rosly
Author-Name: Abul Mansur Mohammed Masih
Author-X-Name-First: Abul Mansur Mohammed
Author-X-Name-Last: Masih
Title: Risk-Taking Behavior and Capital Adequacy in a Mixed Banking System: New Evidence from Malaysia Using Dynamic OLS and Two-Step Dynamic System GMM Estimators
Abstract: 
 This study is the first attempt to investigate the relationship between the level of risky assets and capital level in a mixed Malaysian banking system covering 83 months starting December 2006. The results of dynamic ordinary least squares indicate positive relationship between capital ratio (CAR) and risk-weighted asset ratio (RWA) in the long run. Furthermore, the causality analysis based on panel vector error correction model (VECM) and two-step dynamic system generalized method of moments indicates unidirectional causality from CAR to RWA. Our results further suggest that higher capital growth and capital buffer provide an extra cushion for the Malaysian banks to pursue relatively riskier financial activities, and the nature of risk-taking behavior of Islamic banks follows that of the conventional banks.
Journal: Emerging Markets Finance and Trade
Pages: 180-198
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1162151
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1162151
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:180-198




Template-Type: ReDIF-Article 1.0
Author-Name: Jinghua Wang
Author-X-Name-First: Jinghua
Author-X-Name-Last: Wang
Author-Name: John Bilson
Author-X-Name-First: John
Author-X-Name-Last: Bilson
Title: An Empirical Investigation of Eastern European Bond Markets
Abstract: 
 We examine the value of Eastern European emerging bond markets to global fixed income managers. In an environment where bonds from traditional developed markets are offering modest yields, emerging market bonds with attractive yields are becoming more popular with institutional managers. Furthermore, the returns on these bonds exhibit low correlations with traditional fixed income investments and thus offer opportunities for portfolio diversification. We develop a multifactor forecasting model and estimate its parameters using a dynamic Kalman filter procedure. The forecasts are then used to construct optimal mean–variance portfolios with and without emerging market bonds. We find that the portfolios that include emerging market bonds have significantly higher Sharpe ratios.
Journal: Emerging Markets Finance and Trade
Pages: 199-212
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1172207
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1172207
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:199-212




Template-Type: ReDIF-Article 1.0
Author-Name: Saint Kuttu
Author-X-Name-First: Saint
Author-X-Name-Last: Kuttu
Author-Name: Godfred A. Bokpin
Author-X-Name-First: Godfred A.
Author-X-Name-Last: Bokpin
Title: Feedback Trading and Autocorrelation Patterns in Sub-Saharan African Equity Markets
Abstract: 
 This article examines feedback trading and autocorrelation pattern of stock returns in the equity markets of Ghana, Kenya, Nigeria, and South Africa. We find evidence that positive feedback trading induces negative autocorrelation in the stock returns of Ghana, Kenya, Nigeria, and South Africa. The negative autocorrelation occurs during periods of increasing volatility, and all the four equity markets exhibit volatility asymmetry. We also find that Ghana, Nigeria, and South Africa were influenced by the 2008–2009 global financial crisis, and South Africa experienced the largest impact. These findings may have implications for risk management and price discovery in these equity exchanges.
Journal: Emerging Markets Finance and Trade
Pages: 213-225
Issue: 1
Volume: 53
Year: 2017
Month: 1
X-DOI: 10.1080/1540496X.2016.1178111
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1178111
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:1:p:213-225




Template-Type: ReDIF-Article 1.0
Author-Name: Taoxiong Liu
Author-X-Name-First: Taoxiong
Author-X-Name-Last: Liu
Author-Name: Xiaofei Xu
Author-X-Name-First: Xiaofei
Author-X-Name-Last: Xu
Author-Name: Fangda Fan
Author-X-Name-First: Fangda
Author-X-Name-Last: Fan
Title: Forecasting Chinese GDP Using Online Data
Abstract: 
 Because big data are widely used today, whether and how to use big data in macroeconomic forecasting has become a new field of economic research. In macroeconomic analyses, two types of data can be applied, namely, structured data and unstructured information. Statistical government data are well-structured, whereas Internet search behavior information, which is representative of online data, is unstructured. This article explores whether Internet search behavior information can facilitate the forecasting of macroeconomic aggregates and components and analyzes the use of feasible methods of structured data and unstructured information. This study is based on the macroeconomic forecasting model and verifies the effect of the two-step method. We find that Internet search behavior information can help forecast the macro economy, and we determine that the best method for variable selection using structured and unstructured data is the two-step method. First, only statistical government data are used, and temporary optimal models are selected. Second, Internet search behavior information are added to these models, and the optimal model is then determined.
Journal: Emerging Markets Finance and Trade
Pages: 733-746
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2016.1216841
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216841
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:733-746




Template-Type: ReDIF-Article 1.0
Author-Name: Yukun Ma
Author-X-Name-First: Yukun
Author-X-Name-Last: Ma
Author-Name: Bin Xu
Author-X-Name-First: Bin
Author-X-Name-Last: Xu
Author-Name: Xiaofei Xu
Author-X-Name-First: Xiaofei
Author-X-Name-Last: Xu
Title: Real Estate Confidence Index Based on Real Estate News
Abstract: 
 A real estate confidence index (RECI) is used to evaluate real estate industry development, and it has become an effective and powerful measure in China’s real estate market (REM). RECI research based on big data is the new trend in finance and economics. In this article, we apply some methods of text classification to research on the construction of RECI. First, the Naïve Bayes algorithm is used to evaluate data and to classify the extent to which this measure describes confidence in the REM. Second, experiments on different perspectives are performed to probe the relationship between variables and the accuracy of the classifier. Third, we use the classifier to predict the weekly news. Ultimately, construction of the RECI based on financial and economic news is achieved by applying the classifier to the time and existence of major financial and economic news.
Journal: Emerging Markets Finance and Trade
Pages: 747-760
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2016.1232193
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1232193
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:747-760




Template-Type: ReDIF-Article 1.0
Author-Name: Xia Zhang
Author-X-Name-First: Xia
Author-X-Name-Last: Zhang
Author-Name: Cong Wu
Author-X-Name-First: Cong
Author-X-Name-Last: Wu
Title: Continuous Cash Flow Payment: Theories and Practice Framework
Abstract: 
 Continuous cash flow payment is the key element to complete the payment framework. While discrete cash flow payment matches the event of exchange of goods, continuous cash flow payment can closely match the process of exchange of services. We discovered that by embedding continuous cash flow models into a settlement system, continuous cash flow payment is doable under recent FinTech environment. This article constructs this novel continuous cash flow payment framework and theorizes payment practices into a unified framework.
Journal: Emerging Markets Finance and Trade
Pages: 774-782
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2016.1241706
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1241706
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:774-782




Template-Type: ReDIF-Article 1.0
Author-Name: Yongwei Chen
Author-X-Name-First: Yongwei
Author-X-Name-Last: Chen
Author-Name: Jiawei Pang
Author-X-Name-First: Jiawei
Author-X-Name-Last: Pang
Author-Name: Weiying Zhang
Author-X-Name-First: Weiying
Author-X-Name-Last: Zhang
Title: A Study of Volatility and Externality Compensative Return of Internet Financial Products in the Case of Yuebao
Abstract: 
 We use the data of 10 thousand accrual of Zenglibao monetary fund of Celestica Fund and two indicators of the monetary fund market, WIND index of monetary fund and CSI money fund index, to analyze the volatility and compensative rate of return of Yuebao. Based on the time-variant capital asset pricing model (CAPM), we quantitatively show that the volatility of return of Yuebao is less than that of the market, and the correlation between the Yuebao and the market is relatively low. These two conditions make the beta coefficient lower than that in traditional financial products. In this article, we define the gap between return of Yuebao and the estimated return by CAPM as the externality compensative rate of return, which is the main explanation of the high-return property of Yuebao.
Journal: Emerging Markets Finance and Trade
Pages: 761-773
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2016.1248554
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1248554
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:761-773




Template-Type: ReDIF-Article 1.0
Author-Name: Ginanjar Dewandaru
Author-X-Name-First: Ginanjar
Author-X-Name-Last: Dewandaru
Author-Name: Rumi Masih
Author-X-Name-First: Rumi
Author-X-Name-Last: Masih
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Unraveling the Financial Contagion in European Stock Markets During Financial Crises: Multi-Timescale Analysis
Abstract: 
 The article investigates the evidence of financial contagion and market integration in selected European equity markets during nine major crises across regions. The focus is to identify whether (i) contagion evidence is pure or fundamental and (ii) dynamic evolution of integration is in the short run or long run. Wavelet decomposition in both its discrete and continuous forms is used. The findings reveal the following: (i) prior to the subprime crisis, contagion effects generated short-term shocks. The most recent US subprime crisis, however, reveals the evidence of fundamental based contagion. (ii) We find increasing short-run and long-run stock market integration, driven by several stages of the establishment of Economic and Monetary Union (EMU), questioning the ultimate benefits of formal entry into EMU membership.
Journal: Emerging Markets Finance and Trade
Pages: 859-880
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2016.1266614
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1266614
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:859-880




Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Haluk Güler
Author-X-Name-First: Mustafa Haluk
Author-X-Name-Last: Güler
Author-Name: Tandoğan Polat
Author-X-Name-First: Tandoğan
Author-X-Name-Last: Polat
Title: New Measures for Inflation Uncertainty and Disagreement from Treasury Auctions: Alternative to Surveys
Abstract: 
 In this article, we propose a novel methodology to construct new uncertainty and disagreement measures for the long-term inflation rate with the use of micro data of Treasury auctions. We employ individual bids submitted in Treasury auctions for nominal and inflation indexed bonds. We argue that these newly formed indicators do not have the problems associated with the survey and market-based uncertainty and disagreement measures. We also focus on the interactions of our proposed measures for inflation rate by comparing the measures commonly used in the literature. The findings of this article are believed to enhance the effectiveness of policy-making by introducing new proxies for crucial economic variables and also by providing the opportunity for other emerging economies with inadequate surveys to construct historical uncertainty and disagreement measures for inflation rates.
Journal: Emerging Markets Finance and Trade
Pages: 881-900
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2016.1268527
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1268527
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:881-900




Template-Type: ReDIF-Article 1.0
Author-Name: Minshik Shin
Author-X-Name-First: Minshik
Author-X-Name-Last: Shin
Author-Name: Sooeun Kim
Author-X-Name-First: Sooeun
Author-X-Name-Last: Kim
Author-Name: Jongho Shin
Author-X-Name-First: Jongho
Author-X-Name-Last: Shin
Author-Name: Jaeik Lee
Author-X-Name-First: Jaeik
Author-X-Name-Last: Lee
Title: Earnings Quality Effect on Corporate Excess Cash Holdings and Their Marginal Value
Abstract: 
 By using panel data from Korea’s listed firms, we find that firms with poor earnings quality are more likely to accumulate excess cash holdings, perhaps in an attempt to buffer themselves from information asymmetry problems. We also find that firms with poor earnings quality are more likely to discount the marginal value of their excess cash holdings because their shareholders appear to question the reason for such cash policy changes from the agency theory perspective. Overall, our results suggest that information asymmetry and agency problems are likely to co-exist in firms with poor earnings quality.
Journal: Emerging Markets Finance and Trade
Pages: 901-920
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2016.1273767
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1273767
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:901-920




Template-Type: ReDIF-Article 1.0
Author-Name: Lanjun Lao
Author-X-Name-First: Lanjun
Author-X-Name-Last: Lao
Author-Name: Shu Tian
Author-X-Name-First: Shu
Author-X-Name-Last: Tian
Author-Name: Qidan Zhao
Author-X-Name-First: Qidan
Author-X-Name-Last: Zhao
Title: Will Order Imbalances Predict Stock Returns in Extreme Market Situations? Evidence from China
Abstract: 
 This article examines the relation between order imbalances and stock returns in China during the extreme market situations in 2007 and 2008. We find that order imbalances are positively and significantly related to contemporaneous stock returns but have limited predictability for subsequent returns in extreme market situations. Moreover, order imbalances significantly predict returns in normal market environment, especially for small stocks. This may be attributed to the investor structure in the Chinese market. A trading strategy utilizing the relation between order imbalances and stock returns generates positive returns. Overall, the information contents of order imbalances vary with the market environment.
Journal: Emerging Markets Finance and Trade
Pages: 921-934
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2016.1278364
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1278364
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:921-934




Template-Type: ReDIF-Article 1.0
Author-Name: Dong Yang
Author-X-Name-First: Dong
Author-X-Name-Last: Yang
Author-Name: Pu Chen
Author-X-Name-First: Pu
Author-X-Name-Last: Chen
Author-Name: Fuyuan Shi
Author-X-Name-First: Fuyuan
Author-X-Name-Last: Shi
Author-Name: Chenggong Wen
Author-X-Name-First: Chenggong
Author-X-Name-Last: Wen
Title: Internet Finance: Its Uncertain Legal Foundations and the Role of Big Data in Its Development
Abstract: 
 Internet finance has made significant progress in China. At the same time, it also suffers from legal gaps and inconsistencies. Traditionally, legislation regulates the emerging internet financial market by distinguishing between legal and illegal activities. Users of internet finance engage in regulatory arbitrage and pursue short-term profits, which distort the market. Regulations over internet finance should conform to market logic and utilize informational mechanisms and big data to reduce fraudulent information and market friction, ensuring market transparency, competition, and fair pricing.
Journal: Emerging Markets Finance and Trade
Pages: 721-732
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2016.1278528
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1278528
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:721-732




Template-Type: ReDIF-Article 1.0
Author-Name: Da Huo
Author-X-Name-First: Da
Author-X-Name-Last: Huo
Author-Name: Rihui Ouyang
Author-X-Name-First: Rihui
Author-X-Name-Last: Ouyang
Title: Internationalization Strategy of Chinese E-Business Companies
Abstract: 
 The e-business market has experienced a speeding development at emerging market. This research aims to identify the corporate-level factors that influence decisions of pursuing an internationalization strategy at e-business companies from emerging market, based on the study of Chinese e-business companies. The Probit model and General Estimation Equation (GEE) estimation are performed to analyze the effect of corporate-level factors on the decisions of internationalization strategy, and the Heckman selection model is further performed to analyze the sample selection of Chinese e-business companies in their strategic decisions. This research will be helpful to managers and administrators of e-business companies from emerging market.
Journal: Emerging Markets Finance and Trade
Pages: 801-810
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2017.1283488
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1283488
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:801-810




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Zhang
Author-X-Name-First: Yu
Author-X-Name-Last: Zhang
Author-Name: Feng Yu
Author-X-Name-First: Feng
Author-X-Name-Last: Yu
Title: Which Socio-Economic Indicators Influence Collective Morality? Big Data Analysis on Online Chinese Social Media
Abstract: 
 The relationship between Socio-economic factors and morality remains controversial. Previous research has found that wealth makes people unethical, while other research suggests that poverty is a good predictor of unethical behavior. The relationship between other social factors is also ambiguous. In the current study, the relationship between socio-economic indicators reported by the National Bureau of Statistics of the People’s Republic of China and moral motivation revealed from online social networking, Sina Weibo was constructed. Using data from the whole year of 2013 Sina Weibo microblogs, we found that the poor and rich areas were more willing to behave immorally, and the relation between GDP and collective moral motivation was curved. Also, normal people were less ethical when prices increased than when incomes decreased. Ecological construction and the value added by industries which used more farmers and off-farm workers were both correlated with morality. We also found a dark side to science and technological innovation, which harmed collective morality when areas grew richer. But all the results we found were correlational, more casual lab experiments were needed in future research.
Journal: Emerging Markets Finance and Trade
Pages: 792-800
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2017.1321984
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1321984
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:792-800




Template-Type: ReDIF-Article 1.0
Author-Name: Barry Eichengreen
Author-X-Name-First: Barry
Author-X-Name-Last: Eichengreen
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Kwanho Shin
Author-X-Name-First: Kwanho
Author-X-Name-Last: Shin
Title: The Landscape of Economic Growth: Do Middle-Income Countries Differ?
Abstract: 
 We review the growth experience of middle-income countries. Economic factors associated with growth appear to differ between middle-income and other countries. The efficiency of the financial system is importantly related to the growth rate in low- and middle-income countries, but appears to matter less as one moves up the income scale. Demographic variables also matter importantly in low-income countries. In middle-income countries, in contrast, measures of the financial system no longer appear to matter as importantly, as if inefficiencies in banking and financial systems are no longer as binding a constraint as at earlier stages of financial development; nor are demographic variables as important as before. At this point, other variables gain a growing role: these include whether the country experiences a banking or currency crisis, the extent of non-foreign direct investment capital inflows, and government debt as a share of gross domestic product.
Journal: Emerging Markets Finance and Trade
Pages: 836-858
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2017.1419427
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1419427
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Template-Type: ReDIF-Article 1.0
Author-Name: Chaker Aloui
Author-X-Name-First: Chaker
Author-X-Name-Last: Aloui
Author-Name: Besma Hkiri
Author-X-Name-First: Besma
Author-X-Name-Last: Hkiri
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Muhammad Shahbaz
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shahbaz
Title: A Multiple and Partial Wavelet Analysis of the Oil Price, Inflation, Exchange Rate, and Economic Growth Nexus in Saudi Arabia
Abstract: 
 This article provides a fresh insight into the dynamic nexus between oil prices, the Saudi/US dollar exchange rate, inflation, and output growth rate in Saudi Arabia’ economy, using novel Morlet’ wavelet methods. Specifically, it implements various tools of methodology: the continuous wavelet power spectrum, the cross-wavelet power spectrum, the wavelet coherency, the multiple and the partial wavelet coherence to the annual sample period 1969–2014. Our results unveil that the relationships among the variables evolve through time and frequency. From the time-domain view, we show strong but non-homogenous linkages between the four variables. From the frequency-domain view, we uncover significant wavelet coherences and strong lead-lag relationships. From an economic view, the wavelet analysis shows that Saudi economy is still exposed to several global risk factors, which are mainly related to the oil market volatility, and the pegging of the local currency to the US dollar. Such risk factors strongly and negatively affect the real economic growth, exert more pressure on inflation, and substantially limit the freedom to pursue an independent monetary policy.
Journal: Emerging Markets Finance and Trade
Pages: 935-956
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2017.1423469
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1423469
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Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Zamore
Author-X-Name-First: Stephen
Author-X-Name-Last: Zamore
Author-Name: Kwame Ohene Djan
Author-X-Name-First: Kwame
Author-X-Name-Last: Ohene Djan
Author-Name: Ilan Alon
Author-X-Name-First: Ilan
Author-X-Name-Last: Alon
Author-Name: Bersant Hobdari
Author-X-Name-First: Bersant
Author-X-Name-Last: Hobdari
Title: Credit Risk Research: Review and Agenda
Abstract: 
 This article provides a comprehensive review of scholarly research on credit risk measurement during the last 57 years applying bibliometric citation analysis and elaborates an agenda for future research. The bibliography is compiled using the Institute for Scientific Information (ISI) Web of Science (WOS) database and includes all articles with citations over the period 1960–2016. Specifically, the review is carried out using 1695 articles across 72 countries published in 442 journals by 2928 authors. The findings suggest that credit risk research is multifaceted and can be classified into six streams: (1) defaultable security pricing, (2) default intensity modeling, (3) comparative analysis of credit models, (4) comparative analysis of credit markets, (5) credit default swap (CDS) pricing, and (6) loan loss provisions. The article contributes through synthesizing and identifying existing as well as emerging research streams.
Journal: Emerging Markets Finance and Trade
Pages: 811-835
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2018.1433658
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1433658
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:811-835




Template-Type: ReDIF-Article 1.0
Author-Name: Hang Liu
Author-X-Name-First: Hang
Author-X-Name-Last: Liu
Author-Name: Yong Wang
Author-X-Name-First: Yong
Author-X-Name-Last: Wang
Title: The Value of Crowdfunding: An Explanation Based on Demand Uncertainty and Comparison with Venture Capital
Abstract: 
 This article notes that an advantage of crowdfunding is in its ability to help start-up firms acquire more accurate market demand information regarding new products when compared with venture capital (VC). The whole market of a given product can be conceptualized as being segmented into several, small local markets. VC has a comprehensive knowledge of local markets in general but is prone to noisy aggregate demand information as a result. While crowdfunding investors have intimate knowledge regarding local demand information in their respective locales, they lack knowledge in other local markets. We show that under certain conditions, crowdfunding can provide more accurate demand information and therefore can generate better incentives to entrepreneurs while improving product quality and helping entrepreneurs make correct decisions on whether or not to launch a new product. Therefore, the wisdom of the crowd can be more valuable than the wisdom of the expert.
Journal: Emerging Markets Finance and Trade
Pages: 783-791
Issue: 4
Volume: 54
Year: 2018
Month: 3
X-DOI: 10.1080/1540496X.2018.1434619
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1434619
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:4:p:783-791




Template-Type: ReDIF-Article 1.0
Author-Name: Hüseyin Akkoyun
Author-X-Name-First: Hüseyin
Author-X-Name-Last: Akkoyun
Author-Name: Bahar Şen-Doğan
Author-X-Name-First: Bahar
Author-X-Name-Last: Şen-Doğan
Author-Name: Mahmut Günay
Author-X-Name-First: Mahmut
Author-X-Name-Last: Günay
Title: Business Cycle Synchronization of Turkey with the Eurozone and the United States: What Has Changed Since 2001?
Abstract: 
 Using wavelet methodology, we make a detailed spectral analysis of the business cycle synchronization of the Turkish economy with the eurozone and the United States. We take into account the dramatic change in the main economic indicators in the Turkish economy after the 2001 financial crisis. We find that the correlation of Turkish cycles with the cycles of the eurozone and the United States increased substantially after 2001. Moreover, the correlation of the Turkish cycles with the U.S. cycles is not lower than that with the euro cycles after 2001. Accordingly, analyzing the effect of international developments should not be confined to the trade channel. We submit that capital flows offer a reasonable explanation for the high correlation with the United States.
Journal: Emerging Markets Finance and Trade
Pages: 26-41
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500402
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500402
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:26-41




Template-Type: ReDIF-Article 1.0
Author-Name: Jaan Masso
Author-X-Name-First: Jaan
Author-X-Name-Last: Masso
Author-Name: Priit Vahter
Author-X-Name-First: Priit
Author-X-Name-Last: Vahter
Title: The Role of Product-Level Dynamics in Export Growth and Productivity: Evidence from Estonia
Abstract: 
 Recent empirical studies of international trade have stressed that firm-level decisions about the number of export products or markets are an important margin of adjustment in response to globalization and changes in economic conditions. We investigate how decisions about the export product mix are associated with aggregate export dynamics and productivity of firms. We use detailed data on product and export market levels for the full population of Estonia's firms. Decomposition analysis of trade flows shows that both the relative importance of firms' beginning to export products and the role of product-level churning (firms' adding and dropping of products) in total Estonian export growth increases significantly after accession to the European Union in 2004. We show that concentration on core competence products has a rather different association with productivity of firms in different-size groups. Large firms with a large number of different types of export products gain, on average, in terms of productivity from concentrating their export sales on their core export products. There is no such general regularity in the case of small firms.
Journal: Emerging Markets Finance and Trade
Pages: 42-60
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500403
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500403
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:42-60




Template-Type: ReDIF-Article 1.0
Author-Name: Byoung Kim
Author-X-Name-First: Byoung
Author-X-Name-Last: Kim
Author-Name: Young Yun
Author-X-Name-First: Young
Author-X-Name-Last: Yun
Author-Name: Beom Cin
Author-X-Name-First: Beom
Author-X-Name-Last: Cin
Author-Name: YoungJun Kim
Author-X-Name-First: YoungJun
Author-X-Name-Last: Kim
Title: Home Bias in Emerging Bond and Stock Markets
Abstract: 
 In this paper, we empirically examine sizes and sources of home bias in both bond and equity markets for twenty emerging countries and twenty-two developed countries over the 2001-11 sample period. The average size of home bias in both bond and stock markets is found to be much larger in emerging countries than in developed countries. Using the explanatory variables in two categories of economic development and market performance, we employ dynamic panel data regression models to analyze major sources of home bias. The main results are the following: First, market performance factors generally affect home bias more strongly than do economic development factors. Second, market factors including market return, volatility, and liquidity support various hypotheses under informational asymmetries, such as return chasing, risk aversion, and flight to quality. Third, among macroeconomic factors, it is shown that real gross domestic product growth has negative effects and country leverage has positive effects on a specific home bias, backing up the size-bias and the flight-to-quality hypotheses, respectively. Finally, and perhaps most important in this paper, the effect of bond market performance on equity home bias is found to be significantly stronger than the effect of equity market performance on bond home bias from the market interaction model estimation, suggesting that a policy design needs to begin with increasing bond market efficiency to reduce equity market home bias.
Journal: Emerging Markets Finance and Trade
Pages: 95-124
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500406
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500406
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:95-124




Template-Type: ReDIF-Article 1.0
Author-Name: Meng Sun
Author-X-Name-First: Meng
Author-X-Name-Last: Sun
Author-Name: Qichun He
Author-X-Name-First: Qichun
Author-X-Name-Last: He
Title: Does Foreign Direct Investment Promote Human Capital Accumulation? The Role of Gradual Financial Liberalization
Abstract: 
 We argue that the effect of inward foreign direct investment (FDI) on domestic human capital (HC) accumulation depends on the degree of financial deregulation. Using 383 observations from provincial yearly panel data of the reform period in China, we find the following: FDI has a positive and significant interaction effect with financial deregulation on HC in both least squares dummy variable and system generalized method of moments estimations that address the endogeneity of all important explanatory variables including FDI, financial deregulation, and their interaction term. That is, a higher level of financial deregulation increases the marginal effect of inward FDI on domestic HC.
Journal: Emerging Markets Finance and Trade
Pages: 163-175
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500410
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500410
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:163-175




Template-Type: ReDIF-Article 1.0
Author-Name: Zeynep Önder
Author-X-Name-First: Zeynep
Author-X-Name-Last: Önder
Author-Name: Süheyla Özyıldırım
Author-X-Name-First: Süheyla
Author-X-Name-Last: Özyıldırım
Title: Bank Quality, Loan Demand, and Market Discipline
Abstract: 
 In this paper, we examine the disciplinary role of borrowers, who are one of the key stakeholders in Turkish banks and are heavily affected when their banks experience difficulty. In the theoretical model, we show that borrowers prefer to have a relationship with less risky banks although it increases their cost of getting funds. Empirically, we examine the relationship between quality of a bank and its loan demand and find that as riskiness of a bank decreases, its loan demand increases significantly, suggesting the disciplinary role of borrowers in Turkey.
Journal: Emerging Markets Finance and Trade
Pages: 61-72
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500404
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500404
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:61-72




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Kutan
Author-X-Name-First: Ali
Author-X-Name-Last: Kutan
Title: Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 4-4
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500400
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500400
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:4-4




Template-Type: ReDIF-Article 1.0
Author-Name: Wassim Dbouk
Author-X-Name-First: Wassim
Author-X-Name-Last: Dbouk
Author-Name: Ibrahim Jamali
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Jamali
Author-Name: Khaled Soufani
Author-X-Name-First: Khaled
Author-X-Name-Last: Soufani
Title: The Effectiveness of Technical Trading for Arab Stocks
Abstract: 
 In this paper, we examine the profitability of technical analysis for a cross section of individual Arab stocks. Our analysis, undertaken from the perspective of an Islamic investor, reveals that technical trading rules do not yield economically or statistically significant returns. While our results uncover some scant statistical evidence of technical trading rule profitability, risk adjusting the returns weakens the evidence in favor of predictability. Furthermore, break-even transaction costs do not exceed estimated transaction costs or bid-ask spreads in the markets examined.
Journal: Emerging Markets Finance and Trade
Pages: 5-25
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500401
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500401
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Template-Type: ReDIF-Article 1.0
Author-Name: Ata Özkaya
Author-X-Name-First: Ata
Author-X-Name-Last: Özkaya
Title: Hidden Overhang of Domestic Debt and Its Role in the This-Time-Is-Different Syndrome: An Empirical Contingent Liabilities Model
Abstract: 
 The recent studies in public finance literature open an exciting research area on hidden overhang of domestic public debt and creative accounting. In this study, I identify hidden public debts in Turkey. I then develop a dynamical model that takes as given the stock of contingent liabilities generated by lending/borrowing relationships among public entities and looks for the debt (in)tolerance of government to liquidate it in finite periods. Last, I introduce a general empirical methodology to analyze the role of overborrowing in the this-time-is-different syndrome and test model outcome against data for hidden debts in Turkey's postliberalization period (1989-2010).
Journal: Emerging Markets Finance and Trade
Pages: 73-94
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500405
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500405
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:73-94




Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Jalil
Author-X-Name-First: Abdul
Author-X-Name-Last: Jalil
Author-Name: Mete Feridun
Author-X-Name-First: Mete
Author-X-Name-Last: Feridun
Author-Name: Bansi Sawhney
Author-X-Name-First: Bansi
Author-X-Name-Last: Sawhney
Title: Growth Effects of Fiscal Decentralization: Empirical Evidence from China's Provinces
Abstract: 
 In this paper, we revisit the fiscal decentralization-economic growth nexus in the case of China's provinces using autoregressive distributed lag bounds tests and pooled mean group estimators with time series data from the period 1979-2009. Using principal component analysis, we build a novel composite fiscal decentralization indicator consisting of five different fiscal decentralization measures and use it in the models in addition to conventional fiscal decentralization variables. The results suggest that there is a strong, positive, and statistically significant relationship between fiscal decentralization and economic growth in most provinces in China in both the short run and the long run.
Journal: Emerging Markets Finance and Trade
Pages: 176-195
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500411
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500411
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:176-195




Template-Type: ReDIF-Article 1.0
Author-Name: Bilin Neyapti
Author-X-Name-First: Bilin
Author-X-Name-Last: Neyapti
Title: Guest Editor's Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 125-127
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500407
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500407
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:125-127




Template-Type: ReDIF-Article 1.0
Author-Name: Ceyhun Elgin
Author-X-Name-First: Ceyhun
Author-X-Name-Last: Elgin
Author-Name: Oguz Oztunali
Author-X-Name-First: Oguz
Author-X-Name-Last: Oztunali
Title: Institutions, Informal Economy, and Economic Development
Abstract: 
 Using cross-national panel data, we examine the evolution of the informal economy through the course of economic development. Borrowing from previously published informal economy estimates for 141 countries over the period 1984-2009 and using panel data estimation techniques, we investigate the relationship between informal economy and the level of economic development, proxied by gross domestic product (GDP) per capita. Our findings suggest that institutional quality strongly interacts with this relationship. Specifically, we find that a higher GDP per capita is associated with a larger informal sector size in countries where the institutional quality is low. The opposite is true in countries with good institutions. These results are also in line with a two-sector dynamic general equilibrium model.
Journal: Emerging Markets Finance and Trade
Pages: 145-162
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500409
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500409
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:145-162




Template-Type: ReDIF-Article 1.0
Author-Name: Sophia Franke
Author-X-Name-First: Sophia
Author-X-Name-Last: Franke
Author-Name: Marc Quintyn
Author-X-Name-First: Marc
Author-X-Name-Last: Quintyn
Title: Doorsteps Toward Political and Economic Openness: Testing the North-Wallis-Weingast Transition Framework
Abstract: 
 In this paper, we test the theoretical framework developed by North, Wallis, and Weingast (2009), who posit that limited-access societies need to meet three doorstep conditions before they can transit into open-access societies: (1) establishment of rule of law among elites, (2) adoption of perpetually existing organizations, and (3) political control of the military. We identify indicators reflecting these doorsteps and econometrically test their relationships with specific political and economic variables. We broadly confirm the logic behind the doorsteps as necessary conditions in the transition to open-access societies. The doorsteps influence economic and political processes, as well as each other, with varying intensities.
Journal: Emerging Markets Finance and Trade
Pages: 212-236
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500413
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500413
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:212-236




Template-Type: ReDIF-Article 1.0
Author-Name: Andrzej Baniak
Author-X-Name-First: Andrzej
Author-X-Name-Last: Baniak
Author-Name: Peter Grajzl
Author-X-Name-First: Peter
Author-X-Name-Last: Grajzl
Title: When Do Times of Increasing Uncertainty Call for Centralized Harmonization in International Policy Coordination?
Abstract: 
 Under what conditions do times of increasing uncertainty, such as the ongoing global turmoil, call for international policy harmonization? We shed light on this question by developing a model of interjurisdictional policy coordination taking place under incomplete information and featuring uncertainty about jurisdictions' politico-economic fundamentals. We show how the effect of an increase in uncertainty on the desirability of policy harmonization varies with the pattern of asymmetries in jurisdictions' scale, mutual influence, and magnitude of the increase in uncertainty. Our analysis suggests that the case for policy harmonization as a governance response to growing uncertainty is not compelling.
Journal: Emerging Markets Finance and Trade
Pages: 128-144
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500408
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500408
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:128-144




Template-Type: ReDIF-Article 1.0
Author-Name: Serdar Ozkan
Author-X-Name-First: Serdar
Author-X-Name-Last: Ozkan
Author-Name: Cagnur Balsari
Author-X-Name-First: Cagnur
Author-X-Name-Last: Balsari
Author-Name: Secil Varan
Author-X-Name-First: Secil
Author-X-Name-Last: Varan
Title: Effect of Banking Regulation on Performance: Evidence from Turkey
Abstract: 
 In this study, we investigate the effect of regulation on banking sector performance in an emerging country context. Consecutive crises in the early 2000s led to three waves of reformist banking regulations in Turkey: (1) the banking sector restructuring program in 2002, (2) limitation of the full deposit insurance system in 2004, and (3) a corporate governance-related banking law in 2005. Results show that these actions had a positive effect on bank lending, asset quality, and profitability. Findings also support the view that the sequence and timing of banking reforms in Turkey acted as a shield against the global financial crisis of 2008.
Journal: Emerging Markets Finance and Trade
Pages: 196-211
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500412
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500412
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:196-211




Template-Type: ReDIF-Article 1.0
Author-Name: Yaying Yeh
Author-X-Name-First: Yaying
Author-X-Name-Last: Yeh
Author-Name: Hui-Wen Chen
Author-X-Name-First: Hui-Wen
Author-X-Name-Last: Chen
Author-Name: Mei-Ching Wu
Author-X-Name-First: Mei-Ching
Author-X-Name-Last: Wu
Title: Can Information Transparency Improve Earnings Quality Attributes? Evidence from an Enhanced Disclosure Regime in Taiwan
Abstract: 
 Investors demand timely and accurate corporate disclosures in order to comprehend the governance and performance of a firm; they also rely on quality earnings information to assess the intrinsic value of a company. This study links the two using a Taiwan sample because the government of Taiwan has just performed a market-wide corporate-transparency rating. We find significant improvement on four accounting-based earnings-quality attributes, including accrual quality, earnings persistence, predictability, and smoothness. Further, there is a statistically reliable association between the level of information transparency and each of these earnings attributes, implying that a disclosure mechanism design can enhance management accountability in financial reporting.
Journal: Emerging Markets Finance and Trade
Pages: 237-253
Issue: 4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X500414
File-URL: http://hdl.handle.net/10.2753/REE1540-496X500414
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:4:p:237-253




Template-Type: ReDIF-Article 1.0
Author-Name: Da Huo
Author-X-Name-First: Da
Author-X-Name-Last: Huo
Author-Name: Rihui Ouyang
Author-X-Name-First: Rihui
Author-X-Name-Last: Ouyang
Author-Name: Ken Hung
Author-X-Name-First: Ken
Author-X-Name-Last: Hung
Author-Name: Baowen Sun
Author-X-Name-First: Baowen
Author-X-Name-Last: Sun
Title: Effect of Cross-Border E-Business Policy on the Export Trade of an Emerging Market: A Dynamic Study of Institutional Support to Cross-Border E-Business at Chinese Pilot Cities
Abstract: 
 Policies to offer institutional support to cross-border E-business are processed in the development of export at emerging markets. This research estimates the effect of institutional support to cross-border E-business on export trade in an emerging market by a difference-in-difference model. It is found that the institutional support to cross-border E-business at the pilot cities had a positive effect on export trade. Further, a decision tree of predictions to export is developed, based on the cross-border E-business policy and regional economic factors shown to have effect on export, and the complex network of interconnections across the cities in different conditions is revealed. The estimation of probability for export increase based on the effect of cross-border E-business policy is further performed by Bayesian model. This research can be helpful to policy makers and business administrators in understanding the effect of cross-border E-business policies on export at emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 3153-3167
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2017.1303375
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1303375
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Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Aziz Buriev
Author-X-Name-First: Abdul Aziz
Author-X-Name-Last: Buriev
Author-Name: Ginanjar Dewandaru
Author-X-Name-First: Ginanjar
Author-X-Name-Last: Dewandaru
Author-Name: Mohd-Pisal Zainal
Author-X-Name-First: Mohd-Pisal
Author-X-Name-Last: Zainal
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Portfolio Diversification Benefits at Different Investment Horizons During the Arab Uprisings: Turkish Perspectives Based on MGARCH–DCC and Wavelet Approaches
Abstract: 
 This study is an initial attempt at investigating the extent to which portfolio diversification benefits at different investment horizons are available to a Turkish investor from investment in MENA countries exposed to the Arab spring based on MGARCH-DCC and Wavelet techniques on daily data spanning from 2005 to 2015. The findings tend to suggest that the Turkish investors may not benefit from investment in Egypt for almost all investment horizons but may have moderate benefits from Lebanon up to the investment horizons of 32–64 days and longer. However, Turkish investors may benefit from Oman excepting the longer investment horizons. In the long run, all stock holding periods exceeding 32 days have minimal benefits for portfolio diversification.
Journal: Emerging Markets Finance and Trade
Pages: 3272-3293
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2017.1362555
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1362555
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:14:p:3272-3293




Template-Type: ReDIF-Article 1.0
Author-Name: Timothy A. Krause
Author-X-Name-First: Timothy A.
Author-X-Name-Last: Krause
Author-Name: Yiuman Tse
Author-X-Name-First: Yiuman
Author-X-Name-Last: Tse
Title: International Equity Index and Currency Futures: Commodity Currencies or Emerging Versus Developed Markets?
Abstract: 
 Equity index futures in both emerging and developing markets that are net commodity exporters are strongly linked to their respective currency futures markets. Unconditional correlations among equity and currency futures are the highest for these net basic materials producers in both emerging and developed markets. Granger causality tests also indicate that stock market returns are more strongly related to currency futures returns for commodity-exporting countries. Additionally, conditional correlations among currency and equity futures returns are the strongest for commodity-producing countries in both emerging and developed economies. Volatility spillover analysis provides consistent results. The overall results indicate that the status of a country as a net importer or exporter of raw materials is more important to the relationship between equity and currency futures than whether it is an emerging or developed economy.
Journal: Emerging Markets Finance and Trade
Pages: 3294-3311
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2017.1377608
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1377608
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:14:p:3294-3311




Template-Type: ReDIF-Article 1.0
Author-Name: Qi Miao
Author-X-Name-First: Qi
Author-X-Name-Last: Miao
Author-Name: Danxia Xie
Author-X-Name-First: Danxia
Author-X-Name-Last: Xie
Author-Name: Weiqiang Zhong
Author-X-Name-First: Weiqiang
Author-X-Name-Last: Zhong
Title: Platform Externality, Asymmetric Information, and Counterfeit Deterrence in E-Commerce
Abstract: 
 The fight against online sales of counterfeit goods has received much attention. To the best of our knowledge, existing literature on online counterfeiting lacks a theoretical framework. To fill this gap, this article proposes a two-period model with sellers, buyers, and a platform. We focus on the relationship among platform structure (characterized by the ratio of buyers to sellers), asymmetric information, deterrence strength, and the ratio of counterfeits. Cross-network externalities of platform make platform managers worry about potential exodus of buyers and sellers due to counterfeits. This externality provides platform with strong incentives to fight counterfeits by itself, even without external regulatory requirement. We further show that the higher the ratio of buyers to sellers, the lower the ratio of counterfeits. Moreover, a lower degree of information asymmetry or a higher degree of punishment can reduce the ratio of counterfeits. We suggest that governments and e-commerce platforms work together in the fight against counterfeiting.
Journal: Emerging Markets Finance and Trade
Pages: 3209-3234
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2017.1378639
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1378639
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Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Saona
Author-X-Name-First: Paolo
Author-X-Name-Last: Saona
Author-Name: Pablo San Martín
Author-X-Name-First: Pablo
Author-X-Name-Last: San Martín
Author-Name: Mauricio Jara
Author-X-Name-First: Mauricio
Author-X-Name-Last: Jara
Title: Group Affiliation and Ownership Concentration as Determinants of Capital Structure Decisions: Contextualizing the Facts for an Emerging Economy
Abstract: 
 This study considers the firm’s affiliation with business groups and the ownership structure as determinants of leverage decisions in Chilean firms. The major findings show that group-affiliated firms take advantage of internal capital markets and transactions with related parties (e.g., low transference price or loans at competitive interest rates) that reduces the demand for external debt. Majority shareholders in affiliated firms behave as controllers of managers, on the one hand, and avoid the supervisory role of debt, on the other hand. In stand-alone firms, supervision led by majority shareholders is complemented by the monitoring role of debt through higher levels of leverage. We conclude that further developments in capital structure theories adjusted to the particularities of the different institutional contexts are needed.
Journal: Emerging Markets Finance and Trade
Pages: 3312-3329
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2017.1392850
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1392850
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Template-Type: ReDIF-Article 1.0
Author-Name: Begumhan Ozdincer
Author-X-Name-First: Begumhan
Author-X-Name-Last: Ozdincer
Author-Name: Ayse Yuce
Author-X-Name-First: Ayse
Author-X-Name-Last: Yuce
Title: Stakeholder Returns of Islamic Banks Versus Conventional Banks
Abstract: 
 Sharia principle shaping the Islamic banking model is most determinant on collection and deployment of funds with its ban on interest. This study aims to look at the results of funded activities in isolation for a healthier comparison between Islamic and conventional deposit banks with respect to their financial stakeholders. The differences are reflected as lower asset returns and lower returns for depositors of Islamic banks. These differences sustain throughout normal and crisis periods. Our findings show that despite differences in asset structures and returns, Islamic banks retain similar returns for shareholders to position themselves close to and in competition with their conventional counterparts.
Journal: Emerging Markets Finance and Trade
Pages: 3330-3350
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2017.1393746
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1393746
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Template-Type: ReDIF-Article 1.0
Author-Name: Liyan Han
Author-X-Name-First: Liyan
Author-X-Name-Last: Han
Author-Name: Ziying Li
Author-X-Name-First: Ziying
Author-X-Name-Last: Li
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: Investor Attention and Stock Returns: International Evidence
Abstract: 
 This article examines the asymmetric/discriminative effects of investor attention on expected stock returns among 15 markets through economic expansions and recessions. The predictive power of attention tends to be short-lived and weakens the autocorrelation within returns. Accounting for business cycles not only confirms that the predictability of attention endures with volatility but also explicates the asymmetric effects that underlying pessimism functions better. International evidence contributes to the literature on investor attention and reveals the discrepant effects of attention with three levels of market efficiency: semi-strong, stronger than semi-strong, and weak.
Journal: Emerging Markets Finance and Trade
Pages: 3168-3188
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2017.1413980
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1413980
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiaqi Chen
Author-X-Name-First: Jiaqi
Author-X-Name-Last: Chen
Title: Online Search Frequency, Retail Investor Overreaction, and the Cross-Section of Stock Returns: Evidence from the Chinese Stock Market
Abstract: 
 I find a strong negative relation between online search frequency and future returns on the Chinese stock market. I suggest that this effect captures retail investor overreaction to unexpected signals, because online search frequency reflects the efforts made by investors to obtain firm-specific knowledge. The effect is particularly strong in stocks with high information uncertainty (high analyst dispersion, big past earnings surprises, low analyst coverage, and large trading volume), whose intrinsic values are difficult or costly for investors to estimate. Online search frequency as a direct indicator of retail investors’ reaction to signals also sheds light on the idiosyncratic volatility (IVOL) puzzle. I find that this puzzle is more pronounced in high-search-frequency subsamples and disappears in low-search-frequency subsamples. Further evidence shows that high search frequency strengthens the negative IVOL effect in stocks with positive signals but weakens this effect in stocks with negative signals. I suggest that the IVOL puzzle in the Chinese market can be partially explained as a reversal following overreaction to positive signals by retail investors.
Journal: Emerging Markets Finance and Trade
Pages: 3189-3208
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2017.1417832
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1417832
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Template-Type: ReDIF-Article 1.0
Author-Name: Qi Zhong
Author-X-Name-First: Qi
Author-X-Name-Last: Zhong
Author-Name: Tang Tang
Author-X-Name-First: Tang
Author-X-Name-Last: Tang
Title: Impact of Government Intervention on Industrial Cluster Innovation Network in Developing Countries
Abstract: 
 This article aims to disclose the exact relationship between government intervention and the evolution of industrial cluster innovation network in developing countries. Therefore, this article examines the role of government intervention in the evolution of the network from the perspective of network structure. After reviewing the structure of the innovation network, the author set up an evolution model of industrial cluster innovation network based on weighted scale-free network. Through computer simulations, it is learned that government intervention has a great impact on the evolution of industrial cluster innovation network. In the network formation stage, the impact of government intervention on the average shortest path exhibits as a U-shaped trend. In this stage, the government should intervene moderately to keep a short distance and close contact between the subjects. In the network stabilization stage, the effect of government intervention on the average shortest path is in the shape of an inverted U. In this case, the government should reduce the intervention, encourage enterprise innovation, and reduce the innovation risk of the whole network. The findings provide valuable reference for research in relevant fields.
Journal: Emerging Markets Finance and Trade
Pages: 3351-3365
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2018.1434504
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1434504
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:14:p:3351-3365




Template-Type: ReDIF-Article 1.0
Author-Name: Qizhi Tao
Author-X-Name-First: Qizhi
Author-X-Name-Last: Tao
Author-Name: Zhao Zhao
Author-X-Name-First: Zhao
Author-X-Name-Last: Zhao
Author-Name: Mingming Zhang
Author-X-Name-First: Mingming
Author-X-Name-Last: Zhang
Author-Name: Xueman Xiang
Author-X-Name-First: Xueman
Author-X-Name-Last: Xiang
Title: Managerial Placement and Entrenchment
Abstract: 
 Using data on companies that have implemented private placements in China from 2011 to 2016, we examine the discount on private placements, short-term stock returns, and long-term performance after the placements. Our goal is to determine whether the prevailing certification and entrenchment hypotheses can explain managerial placements. We find that the participation of managerial investors has a significant and negative impact on short-term stock returns. Such a negative effect can also be found on issuing companies’ long-term profitability. Moreover, managerial placements have a higher discount than nonmanagerial placements. Our findings suggest that managerial placement is consistent with the entrenchment hypothesis but not the certification hypothesis.
Journal: Emerging Markets Finance and Trade
Pages: 3366-3383
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2018.1474739
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1474739
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Template-Type: ReDIF-Article 1.0
Author-Name: Dong Yang
Author-X-Name-First: Dong
Author-X-Name-Last: Yang
Author-Name: Min Li
Author-X-Name-First: Min
Author-X-Name-Last: Li
Title: Evolutionary Approaches and the Construction of Technology-Driven Regulations
Abstract: 
 Innovation technologies have substantially changed commerce and society. A new financial industry in the form of financial technology (fintech) initiated the era of the digital economy. At the same time, inherent risks in technology-driven financial innovations, such as technical risks, information asymmetry, and even potential systemic risks, necessitate regulatory responses. However, insufficient regulatory techniques, outdated financial laws, and conservative regulatory concepts make it difficult for traditional regulations based on financial intermediaries to adapt to the current environment of decentralized financial transactions. Technology-driven regulations focused on data monitoring could be a remedy for the inefficiency and ineffectiveness of traditional financial regulations and enhance effective protection of financial consumers’ rights and interests. This new regulatory model aims to build a system that integrates equal access to information on blockchain transactions by both parties to it (i.e., the regulators and the financial institutions they regulate) for the purpose of oversight, intelligent real-time oversight, and an experimental sandbox for developing regulatory technology. This dynamic and flexible financial regulatory system could effectively address fintech risks.
Journal: Emerging Markets Finance and Trade
Pages: 3256-3271
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2018.1496422
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496422
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Template-Type: ReDIF-Article 1.0
Author-Name: Yong Wang
Author-X-Name-First: Yong
Author-X-Name-Last: Wang
Author-Name: Hanzhong Deng
Author-X-Name-First: Hanzhong
Author-X-Name-Last: Deng
Title: Expectations, Behavior, and Stock Market Volatility
Abstract: 
 Stock market volatility is caused by investors’ expectations and behavior. To study the implication relationship, on the one hand, we present an investor’s expectation-forming and decision-making model to summarize the key features of individual behavior. We think the individual expectation is determined mainly by the number of differences between positive signals and negative signals in the information flow. The behavior is determined by both the expectations of investors around him (her) and the expected returns from a potential action. On the other hand, we simulate an investor community to verify if the model is able to replicate the related stylized facts. Mainly, three conclusions are drawn from the simulation: (1) A relationship of asymmetrical conditional dependence exists between expectation consistency and behavior consistency. (2) Market volatility is caused mainly by the difference between expectation consistency and behavior consistency. As the density of connections in the investor community network increases, the difference between them grows. (3) Influential investors have profound impacts on the formation of normal investors’ expectations and behavior. Thus influential investors play an important role in determining the degree of market volatility.
Journal: Emerging Markets Finance and Trade
Pages: 3235-3255
Issue: 14
Volume: 54
Year: 2018
Month: 11
X-DOI: 10.1080/1540496X.2018.1498331
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1498331
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:14:p:3235-3255




Template-Type: ReDIF-Article 1.0
Author-Name: Alin Andrieş
Author-X-Name-First: Alin
Author-X-Name-Last: Andrieş
Author-Name: Bogdan Căpraru
Author-X-Name-First: Bogdan
Author-X-Name-Last: Căpraru
Title: Convergence of Bank Efficiency in Emerging Markets: The Experience of Central and Eastern European Countries
Abstract: 
 In this study, we investigate the effect of the European Union integration process on banks' efficiency and the convergence of cost efficiency across banking systems from Central and Eastern European countries for the period 2004-10. We observe large differences in the levels of cost efficiency among national banking systems, and we notice an increase in banking efficiency for all banking systems until 2008. However, starting with 2009, the evolution of the average scores of cost efficiency declines. The results provide evidence of β-convergence and σ-convergence in terms of cost efficiency among the banking systems, especially during the period 2009-10.
Journal: Emerging Markets Finance and Trade
Pages: 9-30
Issue: S4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5004S401
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5004S401
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Template-Type: ReDIF-Article 1.0
Author-Name: Carmen Pintilescu
Author-X-Name-First: Carmen
Author-X-Name-Last: Pintilescu
Author-Name: Dănuţ-Vasile Jemna
Author-X-Name-First: Dănuţ-Vasile
Author-X-Name-Last: Jemna
Author-Name: Elena-Daniela Viorică
Author-X-Name-First: Elena-Daniela
Author-X-Name-Last: Viorică
Author-Name: Mircea Asandului
Author-X-Name-First: Mircea
Author-X-Name-Last: Asandului
Title: Inflation, Output Growth, and Their Uncertainties: Empirical Evidence for a Causal Relationship from European Emerging Economies
Abstract: 
 In this paper, we analyze the causality among inflation, output growth, and their uncertainties in all European countries with emerging economies. For these countries, high uncertainty regarding economic growth during the current economic and financial crisis that started in 2008 caused their governments to increase their efforts to sustain growth, and to maintain a low level of inflation. Of the twelve possible hypotheses regarding the causal relationships among inflation, output growth, and their uncertainties, we consider five relationships for which we find strong theoretical arguments and empirical evidence in the literature. The empirical evidence strongly supports the Friedman-Ball hypothesis that inflation Granger-causes inflation uncertainty. For the other four tested hypotheses, fewer significant causal relationships are obtained.
Journal: Emerging Markets Finance and Trade
Pages: 78-94
Issue: S4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5004S405
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5004S405
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Template-Type: ReDIF-Article 1.0
Author-Name: Vasile Işan
Author-X-Name-First: Vasile
Author-X-Name-Last: Işan
Author-Name: Dinu Airinei
Author-X-Name-First: Dinu
Author-X-Name-Last: Airinei
Title: Guest Editors' Introduction: Economic Challenges and Policy Issues in Emerging European Economies
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 4-8
Issue: S4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5004S400
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5004S400
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Template-Type: ReDIF-Article 1.0
Author-Name: Ovidiu Stoica
Author-X-Name-First: Ovidiu
Author-X-Name-Last: Stoica
Author-Name: Anca Nucu
Author-X-Name-First: Anca
Author-X-Name-Last: Nucu
Author-Name: Delia-Elena Diaconasu
Author-X-Name-First: Delia-Elena
Author-X-Name-Last: Diaconasu
Title: Interest Rates and Stock Prices: Evidence from Central and Eastern European Markets
Abstract: 
 We provide empirical evidence regarding the responses of Central and Eastern European capital markets to monetary policy via domestic and international short-term interest rate shocks. The analysis is conducted using a four-variable structural vector error correction model identified by means of permanent-transitory restrictions. The results indicate a noticeable effect of the international interest rate on stock market indexes in the cases of the Czech Republic, Hungary, Poland, and Romania. Since no monetary policy autonomy exists in Bulgaria, Latvia, and Lithuania, we find support only for the inverse relationship between foreign interest rate and stock index prices.
Journal: Emerging Markets Finance and Trade
Pages: 47-62
Issue: S4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5004S403
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5004S403
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Template-Type: ReDIF-Article 1.0
Author-Name: Livia Baciu
Author-X-Name-First: Livia
Author-X-Name-Last: Baciu
Author-Name: Alina Botezat
Author-X-Name-First: Alina
Author-X-Name-Last: Botezat
Title: A Comparative Analysis of the Public Spending Efficiency of the New EU Member States: A DEA Approach
Abstract: 
 This paper provides an analysis of the performance and efficiency of the public sector in the European Union (EU). Using composite indicators and data envelopment analysis, we focus on the new EU member countries, which were involved over the past decade in the accession and integration process. Results of the analysis indicate that, unlike "old" EU members, which invested more in sectors such as education or health, countries in Central and Eastern Europe, the "new" EU member states, have directed public resources mainly toward the performance of the government sectors. However, greater efficiency has been achieved precisely in those areas where they have invested less.
Journal: Emerging Markets Finance and Trade
Pages: 31-46
Issue: S4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5004S402
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5004S402
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Template-Type: ReDIF-Article 1.0
Author-Name: Constantin-Marius Apostoaie
Author-X-Name-First: Constantin-Marius
Author-X-Name-Last: Apostoaie
Author-Name: Stanislav Percic
Author-X-Name-First: Stanislav
Author-X-Name-Last: Percic
Author-Name: Vasile Cocriş
Author-X-Name-First: Vasile
Author-X-Name-Last: Cocriş
Author-Name: Dan Chirleşan
Author-X-Name-First: Dan
Author-X-Name-Last: Chirleşan
Title: Research on the Credit Cycle and Business Cycle with a Focus on Ten States from Central, Eastern, and Southeastern Europe
Abstract: 
 By performing an econometric analysis of the credit cycle and business cycle from an individual as well as a comparative perspective, with a focus on ten relevant economies from the areas of Central, Eastern, and Southeastern Europe, this research offers a fresh view regarding the importance of banks in promoting long-term economic growth through their lending capacity. The purpose is to better understand the behavior (the short- and medium-term dynamics) of the credit cycle and business cycle and the effects of the interactions between them. The results of this study offer valuable insights for both academics and policymakers and provide a warning to regulators not to overregulate or put too much pressure on banking activity.
Journal: Emerging Markets Finance and Trade
Pages: 63-77
Issue: S4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5004S404
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5004S404
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Template-Type: ReDIF-Article 1.0
Author-Name: Claudiu Boţoc
Author-X-Name-First: Claudiu
Author-X-Name-Last: Boţoc
Author-Name: Marilen Pirtea
Author-X-Name-First: Marilen
Author-X-Name-Last: Pirtea
Title: Dividend Payout-Policy Drivers: Evidence from Emerging Countries
Abstract: 
 We investigate the drivers of dividend payout policy by analyzing the behavior of 2,636 companies from sixteen emerging countries. Using the generalized method of moments system technique, the results principally support residual cash flow theory as well as the substitution model, agency costs, and signaling, and stand in contrast to the life-cycle theory. The results from sensitivity analysis lead us to conclude that when investor protection is high, cash needs is more important in explaining dividend payout; when investor protection is poor, liquidity seems to be more important.
Journal: Emerging Markets Finance and Trade
Pages: 95-112
Issue: S4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5004S407
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5004S407
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Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Lazăr
Author-X-Name-First: Sebastian
Author-X-Name-Last: Lazăr
Title: Determinants of the Variability of Corporate Effective Tax Rates: Evidence from Romanian Listed Companies
Abstract: 
 In this paper, I investigate the determinants of firm-specific corporate tax rates for nonfinancial companies listed on the Bucharest Stock Exchange over a twelve-year period (2000-2011). Using a fixed effects panel data estimation model to account for individual firm heterogeneity, I find that capital intensity, leverage, and loss carry-forward provisions negatively affect corporate effective tax rates; company size and labor intensity have no effect; and profitability has a positive effect. Going beyond the deterministic investigation, the paper cannot provide evidence of tax-planning activities for the companies considered. Moreover, legal differences between financial and tax accounting related to provisions are found to have a positive effect on firm-specific effective tax rates.
Journal: Emerging Markets Finance and Trade
Pages: 113-131
Issue: S4
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5004S4007
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5004S4007
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Template-Type: ReDIF-Article 1.0
Author-Name: Raju Huidrom
Author-X-Name-First: Raju
Author-X-Name-Last: Huidrom
Author-Name: M. Ayhan Kose
Author-X-Name-First: M. Ayhan
Author-X-Name-Last: Kose
Author-Name: Franziska L. Ohnsorge
Author-X-Name-First: Franziska L.
Author-X-Name-Last: Ohnsorge
Title: Challenges of Fiscal Policy in Emerging and Developing Economies
Abstract: 
 This article presents a systematic analysis of the availability and use of fiscal space in emerging and developing economies. We report two major results. First, emerging and developing economies built fiscal space in the run-up to the Great Recession of 2008–2009, which was then used for stimulus. Since then, fiscal space has shrunk and remains narrow as these economies have taken advantage of historically low interest rates. Second, fiscal policy in emerging and developing economies has become countercyclical (or less procyclical), i.e., “graduated,” since the 1980s, as most clearly demonstrated during the Great Recession. The move towards graduation is most pronounced for those economies with greater fiscal space, which suggests that fiscal space matters for a government’s ability to implement countercyclical fiscal policy.
Journal: Emerging Markets Finance and Trade
Pages: 1927-1945
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1328354
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1328354
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:1927-1945




Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Goulart Serra
Author-X-Name-First: Ricardo Goulart
Author-X-Name-Last: Serra
Author-Name: Luiz Paulo Lopes Fávero
Author-X-Name-First: Luiz Paulo Lopes
Author-X-Name-Last: Fávero
Title: Multiples’ Valuation: The Selection of Cross-Border Comparable Firms
Abstract: 
 We studied whether mean industry multiples are similar in Brazil and in the United States. Using multilevel models (hierarchical linear model and additive crossed random-effects model), we concluded that there exists significant variability within firms from the same industry and significant variability between countries (Brazil and United States). The same tests were applied to firms grouped in clusters by similarity of economic fundamentals and we concluded that part of the variability shifts from (a) the variability within firms from the same industry and the variability between countries to (b) the variability between clusters, which is desirable in multiples’ valuation.
Journal: Emerging Markets Finance and Trade
Pages: 1973-1992
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1336084
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1336084
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:1973-1992




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaojun Shi
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Shi
Author-Name: Rong Ma
Author-X-Name-First: Rong
Author-X-Name-Last: Ma
Author-Name: Xing Liu
Author-X-Name-First: Xing
Author-X-Name-Last: Liu
Title: Price- vs. Quantity-Based Monetary Policies and Credit Substitution Asymmetry
Abstract: 
 The literature on the informal credit channels of the transmission of monetary policy overlooks the distinction between price- and quantity-based policies. This article contributes to filling this gap by investigating the asymmetric effects of the two types of policies on trade-credit substitution for bank credit using data from the largest emerging economy, China. China presents an ideal experimental context, as the country has implemented both types of monetary policies in the past decades. We find strong evidence that quantity-based monetary policy has stronger effects on credit substitution in China. This evidence is robust under both static and dynamic specifications, which remains intact after the disentanglement of the interdependency of the two types of policies. By subgrouping, we find that large and state-controlled firms play the central role in creating the substitution asymmetry. Furthermore, international evidence indicates that India also witnesses substitution asymmetry skewed to quantity-based policies. The findings suggest the need for further reform of China’s financial system toward a market-based system to enhance the effectiveness of the proposed monetary policies.
Journal: Emerging Markets Finance and Trade
Pages: 1993-2020
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1336618
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1336618
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:1993-2020




Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Shameem Jawed
Author-X-Name-First: Mohammad Shameem
Author-X-Name-Last: Jawed
Author-Name: Prasenjit Chakrabarti
Author-X-Name-First: Prasenjit
Author-X-Name-Last: Chakrabarti
Title: Role of Algorithmic and Co-Location Trading on the Speed of Information Adjustments: Evidence from India
Abstract: 
 We investigate whether increased Algorithmic Trading (AT) intensity caused by the introduction of Co-location trading (CLT) facilities improve the productive efficiency of the Indian stock indices. We measure the change in the speed of information adjustment and change of persistence before and after the introduction of CLT for Indian Indices. We report an improvement in the overall productive efficiency of the leading Indian Indices, Midcap and Smallcap indices being the prominent beneficiaries. Our work contributes to the empirical literature on the ongoing debate on the benefits of AT and its role in improving market efficiency, especially in the emerging markets context.
Journal: Emerging Markets Finance and Trade
Pages: 2021-2039
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1342243
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1342243
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:2021-2039




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Yin
Author-X-Name-First: Wei
Author-X-Name-Last: Yin
Author-Name: Kent Matthews
Author-X-Name-First: Kent
Author-X-Name-Last: Matthews
Title: Why Do Firms Switch Banks? Evidence from China
Abstract: 
 This article uses a sample of matched firms-banks data in China over the period 1999–2012 to determine the drivers of firms switching behavior from one bank relationship to another. The results show that the principal driver of a switching action is the credit needs of the firm. The binding force of the Communist Party in state-owned banks and enterprises would suggest that switching should be a rare phenomenon in Chinese commercial relations. But switching occurs. The findings support the extant literature that transparent firms are able to switch more readily than opaque firms. The results also suggest that banks that develop their fee income services are more effective in locking-in their borrowers and that firms tend to switch from state-owned banks to smaller non-state owned banks. However, in other areas switching does not conform with the mainstream explanations.
Journal: Emerging Markets Finance and Trade
Pages: 2040-2052
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1343141
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1343141
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:2040-2052




Template-Type: ReDIF-Article 1.0
Author-Name: M. M. Fonseka
Author-X-Name-First: M. M.
Author-X-Name-Last: Fonseka
Author-Name: Omar Al Farooque
Author-X-Name-First: Omar Al
Author-X-Name-Last: Farooque
Author-Name: R. L. Theja N. Rajapakse
Author-X-Name-First: R. L. Theja N.
Author-X-Name-Last: Rajapakse
Author-Name: Gao-Liang Tian
Author-X-Name-First: Gao-Liang
Author-X-Name-Last: Tian
Title: Political and Interlocking Connections in the Boardroom on Private Equity Placements
Abstract: 
 This study examines the influence of directors who are politically connected and/or have boardroom interlocking on private equity placements (PEPs) in Chinese listed firms. We document that interlocked directors can significantly influence the propensity to apply for PEPs and approval of PEPs and reduce the cost of PEPs while providing greater access to proceeds from PEPs through lowering information asymmetry and information cost. Although politically connected directors have a significant role in the approval of PEPs, they are more likely to reduce the monitoring effects and increase agency problems, which lead to increased cost of PEPs and reduced proceeds from PEPs. The results also reveal that political connection diminishes the benefits of interlocking directors for firms having directors with both interlocking and political ties.
Journal: Emerging Markets Finance and Trade
Pages: 2053-2077
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1355300
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1355300
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:2053-2077




Template-Type: ReDIF-Article 1.0
Author-Name: Olayinka Moses
Author-X-Name-First: Olayinka
Author-X-Name-Last: Moses
Author-Name: Dimu Ehalaiye
Author-X-Name-First: Dimu
Author-X-Name-Last: Ehalaiye
Author-Name: Sebastian Maimako
Author-X-Name-First: Sebastian
Author-X-Name-Last: Maimako
Author-Name: Kayode Fasua
Author-X-Name-First: Kayode
Author-X-Name-Last: Fasua
Title: Consequences of the Treasury Single Account Policy on the Wealth of Nigerian Commercial Banks’ Shareholders
Abstract: 
 We examine the impact of the Nigerian government’s Treasury Single Account (TSA) policy to withdraw the funds of Ministries, Departments and Agencies from commercial banks. Following the economic policy uncertainty theory, we use an event study methodology to measure the impact of the TSA policy on the shareholders’ wealth. Our results reveal that the announcements and subsequent final implementation of the TSA policy caused negative abnormal returns and losses on the wealth of the commercial banks’ shareholders. This article contributes to the literature on stock market reaction to policy announcements and the unintended consequences government policy can have in an emerging economy.
Journal: Emerging Markets Finance and Trade
Pages: 2078-2092
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1356715
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1356715
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:2078-2092




Template-Type: ReDIF-Article 1.0
Author-Name: Semih Emre Çekin
Author-X-Name-First: Semih Emre
Author-X-Name-Last: Çekin
Title: Inflation Targeting, Fiscal Policy, and the Exchange Rate Regime
Abstract: 
 Until recently, Turkey’s economy was characterized by high inflation, undisciplined public finance management, and a fragile banking system and experienced multiple economic crises. After the economy was hit by another crisis in 2001, the central bank became independent, adopted inflation targeting as the monetary policy framework, and implemented reforms to adopt a more stringent fiscal policy. Inflation rates decreased to single-digit levels within 3 years after the independence of the central bank. This article analyzes the end of the high inflation period in the context of monetary and fiscal policy interactions within a Markov-Switching Dynamic Stochastic General Equilibrium model in which monetary and fiscal policies are allowed to switch between different regimes.
Journal: Emerging Markets Finance and Trade
Pages: 2093-2116
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1358162
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1358162
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:2093-2116




Template-Type: ReDIF-Article 1.0
Author-Name: Hatice Gökçe Karasoy Can
Author-X-Name-First: Hatice Gökçe
Author-X-Name-Last: Karasoy Can
Author-Name: Çağlar Yüncüler
Author-X-Name-First: Çağlar
Author-X-Name-Last: Yüncüler
Title: The Explanatory Power and the Forecast Performance of Consumer Confidence Indices for Private Consumption Growth in Turkey
Abstract: 
 In this study, we assess empirically whether consumer confidence indices contain information about future private consumption growth in Turkey. To this end, we estimate models for quarterly total, durable, and nondurable consumption growth with and without sentiment indicators. We evaluate in-sample forecasts and one-step-ahead out-of-sample forecasts from recursive ordinary least squares (OLS) estimates. We also test permanent income and precautionary savings hypotheses with our results. We use overall indices of CNBC-e and Turkstat-CBRT Surveys, and Consumer Expectations Index (CEI) and Propensity to Consume Index (PCI) from the CNBC-e Survey as sentiment measures. We show that the lagged values of consumer sentiment have explanatory power on consumption growth. However, when used in conjunction with other economic variables such as real labor income, real stock price, real interest rate, and exchange rate, only CNBC-e for total consumption, and CBRT and PCI for nondurable consumption provide independent information about future consumption growth. Similarly, the gains in out-of-sample forecasts are observed under the absence of other variables and disappear in almost all cases following their inclusion to the estimations. Finally, we find no clear evidence for either precautionary savings motive or permanent income hypothesis on the link between consumer sentiment and future total consumption changes.
Journal: Emerging Markets Finance and Trade
Pages: 2136-2152
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1358608
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1358608
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:2136-2152




Template-Type: ReDIF-Article 1.0
Author-Name: Julide Yildirim
Author-X-Name-First: Julide
Author-X-Name-Last: Yildirim
Author-Name: M. Akif Bakır
Author-X-Name-First: M. Akif
Author-X-Name-Last: Bakır
Author-Name: Ayse Savas
Author-X-Name-First: Ayse
Author-X-Name-Last: Savas
Title: State Dependence in Poverty: The Case of Turkey
Abstract: 
 Despite poverty alleviation efforts, almost a quarter of households live below the poverty line in Turkey. This article aims to examine the dynamics of poverty focusing on poverty persistence in Turkey, utilizing Income and Living Conditions panel data belonging to 2010–2013. A random effects dynamic panel probit model has been employed. In order to tackle the initial values problem Heckman’s reduced form approximation is utilized. Empirical results indicate that gender, educational attainment, employment type, and household structure have statistically significant impact on the probability of being poor. Besides, experiencing poverty has a positive impact on future poverty likelihood, signalling state dependence.
Journal: Emerging Markets Finance and Trade
Pages: 1963-1972
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1386097
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1386097
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:1963-1972




Template-Type: ReDIF-Article 1.0
Author-Name: Seza Danışoğlu
Author-X-Name-First: Seza
Author-X-Name-Last: Danışoğlu
Author-Name: Z. Nuray Güner
Author-X-Name-First: Z. Nuray
Author-X-Name-Last: Güner
Author-Name: Hande Ayaydın Hacıömeroğlu
Author-X-Name-First: Hande
Author-X-Name-Last: Ayaydın Hacıömeroğlu
Title: International Evidence on Risk Taking by Banks Around the Global Financial Crisis
Abstract: 
 This study models the risks of commercial banks from the United States and developed, emerging, and frontier countries while controlling for bank- and country-specific variables within a panel framework. Bank risk is measured by both the traditional Z-score and a composite bank risk index proposed by the authors. The findings suggest that even though the riskiness of all banks from different country groups increased following the financial crisis, the magnitude of the change is not the same across groups. During the post-crisis period, banks in developed, emerging, and frontier countries experienced a smaller increase in their risk compared to their counterparts in the United States. This article provides support for the claim that banks in emerging and frontier countries have experienced the effects of the financial crisis to a lesser extent compared to those in the United States.
Journal: Emerging Markets Finance and Trade
Pages: 1946-1962
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1388779
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1388779
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:1946-1962




Template-Type: ReDIF-Article 1.0
Author-Name: Kidambi Sridharan Sriram
Author-X-Name-First: Kidambi Sridharan
Author-X-Name-Last: Sriram
Author-Name: Arun Kumar Gopalaswamy
Author-X-Name-First: Arun Kumar
Author-X-Name-Last: Gopalaswamy
Title: Trade Size Preference of Informed Traders in Indian Equity Markets
Abstract: 
 This study utilized high frequency transactions data to analyze the trade size preference of informed traders in Indian equity markets. It is observed that informed traders at an aggregate level adopt stealth trading strategy, wherein they prefer medium sized trades over large sized trades in order to camouflage their private information. However, the stealth trading behavior varies across stocks, wherein informed traders prefer more large sized trades on firms that are part of an index compared to non-index firms. Trading behavior also varies across other market conditions. It has been noted that informed traders prefer large sized trades during periods of high market thickness, negative returns, and low volatility. This study also provides a rationale for such varied behavior of informed traders.
Journal: Emerging Markets Finance and Trade
Pages: 2153-2168
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1392851
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1392851
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:2153-2168




Template-Type: ReDIF-Article 1.0
Author-Name: Qizhi Tao
Author-X-Name-First: Qizhi
Author-X-Name-Last: Tao
Author-Name: Fei Shen
Author-X-Name-First: Fei
Author-X-Name-Last: Shen
Author-Name: Yingying Shao
Author-X-Name-First: Yingying
Author-X-Name-Last: Shao
Author-Name: Guowei Li
Author-X-Name-First: Guowei
Author-X-Name-Last: Li
Title: Steward Effects of Target Founder-CEO in Takeovers
Abstract: 
 Built upon the agency theory and the stewardship theory, this study examines the mergers and acquisitions (M&amp;A) activities among Chinese publicly listed firms. Using a founder-CEO indicator, we separate steward effects from agency effects, and find that Chinese firms’ M&amp;A activities are significantly influenced by the steward factors after controlling for the agency factors. Firms, of which CEO is a founder, enjoy relatively higher premium during M&amp;A. Further investigation reveals that the steward effects vary in the power of CEO. The results show that steward effect is reinforced when founder-CEO is more powerful.
Journal: Emerging Markets Finance and Trade
Pages: 2117-2135
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2017.1418657
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1418657
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:2117-2135




Template-Type: ReDIF-Article 1.0
Author-Name: Manuel Duarte Rocha
Author-X-Name-First: Manuel Duarte
Author-X-Name-Last: Rocha
Title: Challenges in the Recent Experience of Emerging Market Economies
Journal: Emerging Markets Finance and Trade
Pages: 1925-1926
Issue: 9
Volume: 54
Year: 2018
Month: 7
X-DOI: 10.1080/1540496X.2018.1478506
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1478506
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:9:p:1925-1926




Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Ji
Author-X-Name-First: Qiang
Author-X-Name-Last: Ji
Author-Name: Jianping Li
Author-X-Name-First: Jianping
Author-X-Name-Last: Li
Author-Name: Xiaolei Sun
Author-X-Name-First: Xiaolei
Author-X-Name-Last: Sun
Title: New Challenge and Research Development in Global Energy Financialization
Journal: Emerging Markets Finance and Trade
Pages: 2669-2672
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1636588
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1636588
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2669-2672




Template-Type: ReDIF-Article 1.0
Author-Name: Jiahai Yuan
Author-X-Name-First: Jiahai
Author-X-Name-Last: Yuan
Author-Name: Xiaoxuan Guo
Author-X-Name-First: Xiaoxuan
Author-X-Name-Last: Guo
Author-Name: Weirong Zhang
Author-X-Name-First: Weirong
Author-X-Name-Last: Zhang
Author-Name: Jinghong Zhou
Author-X-Name-First: Jinghong
Author-X-Name-Last: Zhou
Author-Name: Chengju Qin
Author-X-Name-First: Chengju
Author-X-Name-Last: Qin
Title: Stranded Coal Power Assets in China: A Case Study of Jilin Province
Abstract: 
 This article conducts the first provincial case study on the effect of environment-related risks on coal-fired power plants in Jilin, China, which creates “stranded assets”. Using power capacity expansion model and project evaluation model, the article first quantifies the rational coal power capacity during 2016–2020. Then, we calculate the value of stranded assets. The estimated scale of excess coal power capacity by 2020 ranges from 8,190 MW to 18,480 MW. The total value of stranded assets will decline over time under the different scenarios. Finally, policy implications for policymakers on power market reforms are proposed.
Journal: Emerging Markets Finance and Trade
Pages: 2673-2688
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1541134
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1541134
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2673-2688




Template-Type: ReDIF-Article 1.0
Author-Name: Zhengquan Guo
Author-X-Name-First: Zhengquan
Author-X-Name-Last: Guo
Author-Name: Xingping Zhang
Author-X-Name-First: Xingping
Author-X-Name-Last: Zhang
Author-Name: Daojuan Wang
Author-X-Name-First: Daojuan
Author-X-Name-Last: Wang
Author-Name: Xiaonan Zhao
Author-X-Name-First: Xiaonan
Author-X-Name-Last: Zhao
Title: The Impacts of an Energy Price Decline Associated with a Carbon Tax on the Energy-Economy-Environment System in China
Abstract: 
 This article conducts a computable general equilibrium model to analyze the impact of energy price decline associated with a carbon tax policy in China. The findings show that the fossil energy price decline will significantly increase fossil energy demand and carbon emissions, while carbon tax can offset the impacts, which is an alternative policy to mitigate the carbon emissions. Since the carbon tax policy will lead to relatively small negative impacts on real GDP when fossil energy price is in decline, during which it is a good opportunity for China to introduce carbon tax policy.
Journal: Emerging Markets Finance and Trade
Pages: 2689-2702
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1562899
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562899
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2689-2702




Template-Type: ReDIF-Article 1.0
Author-Name: Xiuwen Chen
Author-X-Name-First: Xiuwen
Author-X-Name-Last: Chen
Author-Name: Xiaolei Sun
Author-X-Name-First: Xiaolei
Author-X-Name-Last: Sun
Author-Name: Jun Wang
Author-X-Name-First: Jun
Author-X-Name-Last: Wang
Title: Dynamic Spillover Effect Between Oil Prices and Economic Policy Uncertainty in BRIC Countries: A Wavelet-Based Approach
Abstract: 
 In recent years, researchers have increasingly studied the interaction between the crude oil market and economic policy uncertainty (EPU). To have a deeper knowledge, this article examines the spillover effects between them from a multiscale perspective with a wavelet-based BEKK-GARCH method. The results show that the spillover effects between the Brent crude oil market and EPU in the BRIC countries are time-varying across different wavelet scales in terms of direction and strength. The mean spillover relationship between oil prices and EPU is weak in the short term but gradually strengthened toward the long term. Moreover, there are strong volatility spillover effects between oil prices and EPU in Brazil and Russia in the short and medium term.
Journal: Emerging Markets Finance and Trade
Pages: 2703-2717
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1564904
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1564904
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2703-2717




Template-Type: ReDIF-Article 1.0
Author-Name: Keyi Ju
Author-X-Name-First: Keyi
Author-X-Name-Last: Ju
Author-Name: Qunwei Wang
Author-X-Name-First: Qunwei
Author-X-Name-Last: Wang
Author-Name: Lifan Liu
Author-X-Name-First: Lifan
Author-X-Name-Last: Liu
Author-Name: Dequn Zhou
Author-X-Name-First: Dequn
Author-X-Name-Last: Zhou
Title: Measurement of the Price Distortion Degree for Exhaustible Energy Resources in China: A Discount Rate Perspective
Abstract: 
 This paper uses the marginal opportunity cost (MOC) pricing method to calculate theoretical prices of energy resources (namely coal, crude oil, and natural gas). The theoretical price encompasses the marginal production cost (MPC) for exploitation, marginal user cost (MUC) for the scarcity of the exhaustible resources, and the marginal external cost (MEC) for environmental impacts. Compared with the existing compensation mechanism, this study estimates the degree of energy price distortions under different discount rates. The results show that each resource price presents different degrees of distortion with varying causes for the distortions. The crude oil price had the highest distortion degree, followed by coal and natural gas, and the lower the discount rate, the more serious is the energy price distortion.
Journal: Emerging Markets Finance and Trade
Pages: 2718-2737
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1587708
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1587708
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2718-2737




Template-Type: ReDIF-Article 1.0
Author-Name: Xian Xi
Author-X-Name-First: Xian
Author-X-Name-Last: Xi
Author-Name: Xiangyun Gao
Author-X-Name-First: Xiangyun
Author-X-Name-Last: Gao
Author-Name: Qing Guan
Author-X-Name-First: Qing
Author-X-Name-Last: Guan
Author-Name: Nairong Liu
Author-X-Name-First: Nairong
Author-X-Name-Last: Liu
Author-Name: Sida Feng
Author-X-Name-First: Sida
Author-X-Name-Last: Feng
Author-Name: Xueyong Liu
Author-X-Name-First: Xueyong
Author-X-Name-Last: Liu
Author-Name: Pengli An
Author-X-Name-First: Pengli
Author-X-Name-Last: An
Title: Inferring Energy Stock Returns Based on Financial Indicators from the Network Perspective
Abstract: 
 The return on the energy stocks has become a hot research topic. The investment value of an energy stock should consider both the stock price and its intrinsic value, which is comprehensively reflected by the financial indicators of a listed energy company. However, few studies have studied the nature of the relation between financial indicators from a network perspective. Therefore, we construct relational networks of listed companies based on six types of financial indicators. We also build regression models based on econometric theory. We find that the network structural parameters in different networks have different significant impacts on current and future energy stock returns.
Journal: Emerging Markets Finance and Trade
Pages: 2738-2755
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1610875
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1610875
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhifang He
Author-X-Name-First: Zhifang
Author-X-Name-Last: He
Author-Name: Fangzhao Zhou
Author-X-Name-First: Fangzhao
Author-X-Name-Last: Zhou
Author-Name: Xiaohua Xia
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Xia
Author-Name: Fenghua Wen
Author-X-Name-First: Fenghua
Author-X-Name-Last: Wen
Author-Name: Yiyuan Huang
Author-X-Name-First: Yiyuan
Author-X-Name-Last: Huang
Title: Interaction between Oil Price and Investor Sentiment: Nonlinear Causality, Time- Varying Influence, and Asymmetric Effect
Abstract: 
 This paper investigates the interaction between crude oil prices and individual investor sentiment with the Hiemstra and Jones (HJ) test, the Diks and Panchenko (DP) test, the time-varying parameter structural vector autoregression (TVP-SVAR) model, and the nonlinear autoregressive distributed lags (NARDL) model. Results reveal a bidirectional nonlinear Granger causality, rather than a linear Granger causality, between crude oil prices and individual investor sentiment. Meanwhile, the interactions between the two variables are time-varying, and oil prices negatively affect individual investor sentiment in general. However, the effect of individual sentiment on oil prices is more complicated. It has more significant impacts on oil prices after 2000, and shows a positive influence before the global financial crisis, a minor influence during the crisis, and even a negative influence after the crisis. In addition, the oil price has significant long-run and short-run asymmetric effects on individual investor sentiment, whereas individual investor sentiment has no asymmetric effect on oil prices.
Journal: Emerging Markets Finance and Trade
Pages: 2756-2773
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1635450
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1635450
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2756-2773




Template-Type: ReDIF-Article 1.0
Author-Name: Jaan Masso
Author-X-Name-First: Jaan
Author-X-Name-Last: Masso
Author-Name: Priit Vahter
Author-X-Name-First: Priit
Author-X-Name-Last: Vahter
Title: Knowledge Transfer from Multinationals through Labour Mobility: Are There Effects on Productivity, Product Sophistication and Exporting?
Abstract: 
 We investigate whether labour mobility from foreign-owned firms to local firms in the host economy is associated with an increase in productivity, export product complexity and other export indicators of domestic firms. Based on employer-employee level data from Estonia, we confirm that hiring employees with experience from foreign-owned firms is associated with an increase in the total factor productivity (TFP) of the firm and the higher export propensity and breadth of export markets or products. However, on average, these within-firm effects on TFP appear to be not working through increases in the level of the complexity of the export product portfolio of domestically owned firms. One implication of this result is that other channels of upgrading than changes in the Hausmann-Hidalgo export product complexity measure may be more important in this context; for example, such as upgrading the tasks or activities in the global value chain of a product.
Journal: Emerging Markets Finance and Trade
Pages: 2774-2795
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1530653
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530653
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2774-2795




Template-Type: ReDIF-Article 1.0
Author-Name: Yeseul Kim
Author-X-Name-First: Yeseul
Author-X-Name-Last: Kim
Author-Name: Dong-Eun Rhee
Author-X-Name-First: Dong-Eun
Author-X-Name-Last: Rhee
Title: Do Stringent Environmental Regulations Attract Foreign Direct Investment in Developing Countries? Evidence on the “Race to the Top” from Cross-Country Panel Data
Abstract: 
 It is widely believed that environmental regulations in a developing country increase abatement costs for firms and, in turn, make the country a less attractive investment avenue for multinational firms from advanced economies. Using panel data of 120 developing countries from 2000 to 2014, this study empirically investigates whether stringent environmental regulations deter foreign direct investment (FDI) in developing countries. The empirical results are the exact opposite of the pollution haven effect, namely, stringent environmental regulations significantly attract FDI, a circumstance that causes a “race to the top.” The results are robust when tested against various specifications.
Journal: Emerging Markets Finance and Trade
Pages: 2796-2808
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1531240
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1531240
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2796-2808




Template-Type: ReDIF-Article 1.0
Author-Name: Paulina Roszkowska
Author-X-Name-First: Paulina
Author-X-Name-Last: Roszkowska
Author-Name: Lukasz K. Langer
Author-X-Name-First: Lukasz K.
Author-X-Name-Last: Langer
Title: (Ab)Normal Returns in an Emerging Stock Market: International Investor Perspective
Abstract: 
 This article studies the comparative attractiveness of public equity investments in the Polish (emerging) and in the U.S. (advanced) stock markets in the years 2000–2013. Through an original implementation strategy based on several one- and multifactor asset pricing models (APMs), we find that the potential for “beating the market” in the form of abnormal profits is higher in the Polish stock market, specifically related to size and profitability anomalies. The Fama–French five-factor model fares best in an international setting and yields additional monthly abnormal returns of 0.19 pp. An international investor should apply local, rather than global, risk factors to properly assess relative abnormal investment opportunities between markets.
Journal: Emerging Markets Finance and Trade
Pages: 2809-2833
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1531241
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1531241
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Template-Type: ReDIF-Article 1.0
Author-Name: Kwang Hwa Jeong
Author-X-Name-First: Kwang Hwa
Author-X-Name-Last: Jeong
Author-Name: Seung Uk Choi
Author-X-Name-First: Seung Uk
Author-X-Name-Last: Choi
Title: Does Real Activities Management Influence Earnings Quality and Stock Returns in Emerging Markets? Evidence from Korea
Abstract: 
 We explore the association between real earnings management and the persistence of earnings and cash flows, respectively. Further, we investigate the effect of real earnings management on the relation between current stock returns and future earnings. Using 15,826 firm-year observations listed in the Korean stock market from 2000 to 2015, we find that real earnings management is negatively associated with the persistence of earnings. We also find that real earnings management restricts the persistence of cash flows. Lastly, we find that real earnings management prevents the market from assessing firms’ future earnings reflected in the current stock prices.
Journal: Emerging Markets Finance and Trade
Pages: 2834-2850
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1535970
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1535970
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Template-Type: ReDIF-Article 1.0
Author-Name: Yao Li
Author-X-Name-First: Yao
Author-X-Name-Last: Li
Author-Name: Mike Wright
Author-X-Name-First: Mike
Author-X-Name-Last: Wright
Author-Name: Louise Scholes
Author-X-Name-First: Louise
Author-X-Name-Last: Scholes
Author-Name: Ziwei Zhang
Author-X-Name-First: Ziwei
Author-X-Name-Last: Zhang
Title: The Role of Private Equity When Portfolio Firms Go Public: Evidence from ChiNext Board
Abstract: 
 We probe into the question of why entrepreneurial firms choose to obtain private equity finance (PE) shortly before going public on the ChiNext Board (the Chinese alternative stock market for smaller firms, part of the Shenzhen Stock Exchange, SZSE). Using unique hand-collected data we find that, compared with non–PE-backed firms, firms with PE equity stakes introduced shortly before the IPO did not reduce IPO underpricing or decrease the offering cost. However PE investors increased the probability of approval when the firms applied to the China Securities Regulatory Commission (CSRC) for listing. We suggest the stock issuance rules for the ChiNext should be reformed to lower entrepreneurial firms’ financing cost and to encourage PE firms to undertake more value-adding activities.
Journal: Emerging Markets Finance and Trade
Pages: 2851-2870
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1536607
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1536607
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2851-2870




Template-Type: ReDIF-Article 1.0
Author-Name: Şule L. Aker
Author-X-Name-First: Şule L.
Author-X-Name-Last: Aker
Author-Name: Iman Aghaei
Author-X-Name-First: Iman
Author-X-Name-Last: Aghaei
Title: Comparison of Business Environments in Oil-Rich MENA Countries: A Clustering Analysis of Economic Diversification and Performance
Abstract: 
 The purpose of present research is to cluster 11 oil-richest MENA countries; Algeria, Egypt, Iran, Iraq, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Sudan, and the United Arab Emirates regarding economic diversification and performance during 2010–2016 using K-means algorithm which is a versatile data mining technique. The major finding is that higher export diversity in addition to better economic performance can influence competitiveness of business environment of the countries positively and vice versa. The studied nations are partitioned into four clusters. Qatar and UAE with highest economic diversity and performance have the most favorable business environments in the region.
Journal: Emerging Markets Finance and Trade
Pages: 2871-2885
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1537185
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1537185
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2871-2885




Template-Type: ReDIF-Article 1.0
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Author-Name: Jianlei Yang
Author-X-Name-First: Jianlei
Author-X-Name-Last: Yang
Title: Individual Stock Cash Inflow–Outflow Imbalance, Individual Stock Investor Sentiment and Excess Returns
Abstract: 
 Behavioral finance research presents evidence of the importance of “anomaly factors” in the stock market. In this article, we develop an individual stock cash inflow–outflow imbalance index based on individual stock cash inflow and cash outflow and further examine the combined effects of individual stock cash inflow–outflow imbalance and individual stock investor sentiment on excess returns. Our results show that the combined effect of individual stock cash inflow–outflow imbalance and individual stock investor sentiment on excess returns is stronger positive relation. Furthermore, we find that increasing individual stock cash inflow will increase excess returns; on the contrary, increasing individual stock cash outflow will decrease excess returns. Overall, our results highlight the importance of individual stock cash inflow, cash out flow, and cash inflow–outflow imbalance on asset pricing.
Journal: Emerging Markets Finance and Trade
Pages: 2886-2903
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1539838
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1539838
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:12:p:2886-2903




Template-Type: ReDIF-Article 1.0
Author-Name: Ammara Yasmin
Author-X-Name-First: Ammara
Author-X-Name-Last: Yasmin
Author-Name: Abdul Rashid
Author-X-Name-First: Abdul
Author-X-Name-Last: Rashid
Title: On the Mystery of Financial Conservatism: Insights from Pakistan
Abstract: 
 This article empirically explores the prevalence and determinants of financial conservatism at Pakistani nonfinancial firms during the period 1998–2014. Along with several firm-specific variables as predictors of the most prominent theories, the effects of macroeconomic conditions and business group affiliation are also investigated. The results of the study show that approximately 14% of the firm-year observations are financially conservative. The ratio of financial conservatism almost doubled over that period, from 11.25% in 1999 to 20.76% in 2014. We find that financially conservative firms are more profitable, less risky, and pay higher dividends than their non-conservative counterparts. The results of the logistic regression reveal that the financial hierarchy and financial flexibility are the most powerful motives for avoiding debt financing. Finally, we show that macroeconomic conditions and business group affiliation also play a significant role in determining the likelihood of financial conservatism.
Journal: Emerging Markets Finance and Trade
Pages: 2904-2927
Issue: 12
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1553158
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1553158
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Template-Type: ReDIF-Article 1.0
Author-Name: Ning Zhu
Author-X-Name-First: Ning
Author-X-Name-Last: Zhu
Author-Name: Bing Wang
Author-X-Name-First: Bing
Author-X-Name-Last: Wang
Author-Name: Zhiqian Yu
Author-X-Name-First: Zhiqian
Author-X-Name-Last: Yu
Author-Name: Yanrui Wu
Author-X-Name-First: Yanrui
Author-X-Name-Last: Wu
Title: Technical Efficiency Measurement Incorporating Risk Preferences: An Empirical Analysis of Chinese Commercial Banks
Abstract: 
 By adjusting direction vectors, we are able to measure technical efficiency incorporating risk preference of individual banks using non-parametric and parametric approaches. Furthermore, we explore categories of commercial banks by comparing their risk preferences to the risk preference that optimizes technical efficiency. Three results emerged. First, technical efficiency scores of joint stock and city commercial banks surpassed those of state-owned commercial banks under the optimal risk preference, and technical efficiency generally improved over time. Second, the preference for risk balance was optimal for achieving technical efficiency. Third, a larger proportion of state-owned and joint stock commercial banks fall into the preference for risk neutral category than city commercial banks.
Journal: Emerging Markets Finance and Trade
Pages: 610-624
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2015.1008889
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1008889
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:610-624




Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Title: Risk-Adjusted Performances of World Equity Indices
Abstract: 
 This article investigates whether equity indices of twenty-four emerging and twenty-eight developed markets compensate their investors equally after adjusting for total or downside risk, and examines the predictive power of reward-to-risk ratios for expected market returns. We find that when all fifty-two markets are ranked based on their alternative reward-to-risk ratios, almost all of the countries in the top (bottom) quartile are emerging (developed) markets. The pooled means of the reward-to-risk ratios are also significantly higher for emerging markets. Both portfolio and regressions analysis reveal that there is a significantly positive relation between various reward-to-risk metrics and expected market returns.
Journal: Emerging Markets Finance and Trade
Pages: 706-721
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2015.1011558
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011558
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:706-721




Template-Type: ReDIF-Article 1.0
Author-Name: Zafer Akin
Author-X-Name-First: Zafer
Author-X-Name-Last: Akin
Author-Name: Zeynep B. Bulut-Cevik
Author-X-Name-First: Zeynep B.
Author-X-Name-Last: Bulut-Cevik
Author-Name: Bilin Neyapti
Author-X-Name-First: Bilin
Author-X-Name-Last: Neyapti
Title: Does Fiscal Decentralization Promote Fiscal Discipline?
Abstract: 
 We investigate the efficiency and equity implications of a redistributive rule that takes into account both local tax collection efforts and deviation of local incomes from respective targets under alternative fiscal mechanisms. We show that, if the general budget constraint is binding, the proposed transfer rule leads to higher fiscal discipline under fiscal decentralization (FD) than under centralized redistribution. Although the centralized decision yields better income distribution than FD, FD also improves income distribution unambiguously when equalization across regions is targeted explicitly. When localities act strategically, the private sector’s utility weight enhances the disciplinary effect of decentralization.
Journal: Emerging Markets Finance and Trade
Pages: 690-705
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2015.1012920
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1012920
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:690-705




Template-Type: ReDIF-Article 1.0
Author-Name: Ekin Ayşe Özşuca
Author-X-Name-First: Ekin Ayşe
Author-X-Name-Last: Özşuca
Author-Name: Elif Akbostancı
Author-X-Name-First: Elif
Author-X-Name-Last: Akbostancı
Title: An Empirical Analysis of the Risk-Taking Channel of Monetary Policy in Turkey
Abstract: 
 This article investigates the bank-specific characteristics of risk-taking behavior of the Turkish banking sector as well as the existence of risk-taking channel of monetary policy in Turkey. Using bank-level quarterly data over the period 2002–2012 a dynamic panel model is estimated. We find evidence that low short-term interest rates reduce the risk of outstanding loans; however short-term interest rates below a theoretical benchmark increase risk-taking of banks. This result holds for macroeconomic controls and external factors as well. Furthermore, in terms of bank-specific characteristics, our analysis suggests that large, liquid, and well-capitalized banks are less prone to risk-taking.
Journal: Emerging Markets Finance and Trade
Pages: 589-609
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2015.1047300
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1047300
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:589-609




Template-Type: ReDIF-Article 1.0
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Kwanho Shin
Author-X-Name-First: Kwanho
Author-X-Name-Last: Shin
Title: Financial Integration in Asset and Liability Holdings in East Asia
Abstract: 
 In this article, we examine the evolution of intra-East Asian financial integration from 2001 to 2013. Most existing studies on this topic look primarily at asset holdings; we examine liability holdings as well. Using the International Monetary Fund’s Coordinated Portfolio Investment Survey data for equities, long-term debt, and short-term debt, our analysis generally supports the conventional wisdom that East Asian countries are more financially integrated with global financial centers than they are with each other. This is true for both asset holdings and liabilities and is confirmed by an econometric analysis based on financial gravity equations. However, the gap between global integration and regional integration has narrowed for asset holdings over time but not for liability holdings. The results of additional econometric analysis indicate that diversification of liability holdings can mitigate financial instability due to global financial shocks. More precisely, diversification was associated with smaller exchange rate depreciation during the quantitative easing taper tantrum of 2013. These results point to a possible benefit from strengthening regional financial integration. Deeper regional integration would reduce dependence on global financial markets for funding and hence vulnerability to global shocks.
Journal: Emerging Markets Finance and Trade
Pages: 539-556
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2015.1103134
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103134
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:539-556




Template-Type: ReDIF-Article 1.0
Author-Name: Annari De Waal
Author-X-Name-First: Annari
Author-X-Name-Last: De Waal
Author-Name: Reneé van Eyden
Author-X-Name-First: Reneé
Author-X-Name-Last: van Eyden
Title: The Impact of Economic Shocks in the Rest of the World on South Africa: Evidence from a Global VAR
Abstract: 
 The substantial change in South Africa’s trade patterns over the past two decades has affected the impact of economic shocks in major world economies on South Africa. To investigate the effect, we use a global vector autoregression (GVAR) model with time-varying trade weights to account for changing international trade linkages. We show that the long-term impact of a shock to Chinese GDP on South African GDP is much stronger in 2009 than in 1995, due to the substantial increase in South Africa’s trade with China since the mid-1990s. At the same time, the importance of the U.S. economy to South Africa diminished considerably. The results indicate one of the possible reasons why the recent global crisis did not affect South Africa as much as it affected developed economies. It also stresses the increased risk, to the South African and other economies, should China experience slower GDP growth.
Journal: Emerging Markets Finance and Trade
Pages: 557-573
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2015.1103141
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103141
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:557-573




Template-Type: ReDIF-Article 1.0
Author-Name: Takeshi Inoue
Author-X-Name-First: Takeshi
Author-X-Name-Last: Inoue
Author-Name: Takuji Kinkyo
Author-X-Name-First: Takuji
Author-X-Name-Last: Kinkyo
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: Revisiting the Roles of Financial Access and Deepening for Growth and Reducing Inequality
Journal: Emerging Markets Finance and Trade
Pages: 722-723
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2016.1116266
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1116266
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:722-723




Template-Type: ReDIF-Article 1.0
Author-Name: Haifeng Xu
Author-X-Name-First: Haifeng
Author-X-Name-Last: Xu
Title: Financial Intermediation and Economic Growth in China: New Evidence from Panel Data
Abstract: 
 In this article, we investigate the relationship between financial intermediation and economic growth in China by employing system Generalized Method of Moments (GMM) estimators for dynamic panel data from twenty-eight Chinese provinces over the period 1978–2008. Our empirical results show that various measures of financial development are generally associated with economic growth. More specifically, the size and depth of the financial sector significantly influence economic growth. However, household saving is found to have a negative, but insignificant, effect on economic growth. Finally, we find that although several control variables show the expected signs, they are not always statistically significant. Human capital, openness to trade, and inflation positively influence economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 724-732
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2016.1116278
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1116278
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:724-732




Template-Type: ReDIF-Article 1.0
Author-Name: Wang Chen
Author-X-Name-First: Wang
Author-X-Name-Last: Chen
Author-Name: Takuji Kinkyo
Author-X-Name-First: Takuji
Author-X-Name-Last: Kinkyo
Title: Financial Development and Income Inequality: Long-Run Relationship and Short-Run Heterogeneity
Abstract: 
 This article examines the dynamic relationship between financial development and income inequality using the PMG. We find that financial development will reduce inequality in the long run, while it can increase inequality in the short run. Using the estimates of country-specific short-run coefficients, we also find that adverse short-run effects of financial development are associated with the vulnerabilities of countries in terms of their greater susceptibility to crises and poor quality of governance. Good governance seems to be important for achieving inclusive growth though financial development.
Journal: Emerging Markets Finance and Trade
Pages: 733-742
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2016.1116281
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1116281
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:733-742




Template-Type: ReDIF-Article 1.0
Author-Name: Takeshi Inoue
Author-X-Name-First: Takeshi
Author-X-Name-Last: Inoue
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: Financial Access and Economic Growth: Evidence from Sub-Saharan Africa
Abstract: 
 This study empirically analyzes the effects of financial access on economic growth in Sub-Saharan Africa. By estimating panel data on thirty-seven countries from Sub-Saharan Africa between 2004 and 2012, we examine whether improved access to financial services has contributed to economic growth in this region. The empirical results clearly indicate that financial access has a statistically significant and robust effect on increasing economic growth in Sub-Saharan Africa.
Journal: Emerging Markets Finance and Trade
Pages: 743-753
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2016.1116282
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1116282
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:743-753




Template-Type: ReDIF-Article 1.0
Author-Name: Guifu Chen
Author-X-Name-First: Guifu
Author-X-Name-Last: Chen
Author-Name: Sizhuo Chen
Author-X-Name-First: Sizhuo
Author-X-Name-Last: Chen
Title: Financial Development, Labor Participation, and Employment in Urban China
Abstract: 
 This article focuses on the effect of financial development on labor participation and employment ratios in China. First, we find that the impacts of financial deepening degree on labor participation are different across regions. The coefficient for financial efficiency degree is statistically significant only in the western region. Second, we find that the coefficient for financial deepening degree is statistically significant only in the western region. Increasing financial efficiency degree decreases employment probability, with the effect being relatively less marked in the central region. However, this probability increases with financial efficiency degree increasing in the western region.
Journal: Emerging Markets Finance and Trade
Pages: 754-764
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2016.1116285
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1116285
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:754-764




Template-Type: ReDIF-Article 1.0
Author-Name: Takeshi Inoue
Author-X-Name-First: Takeshi
Author-X-Name-Last: Inoue
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Title: Do Workers’ Remittances Promote Access to Finance? Evidence from Asia-Pacific Developing Countries
Abstract: 
 This study empirically analyzes the impact of remittance inflows on access to formal financial services using panel data on thirty-eight developing countries in Asia and Oceania between 2001 and 2012. Our results indicate that remittances help to enlarge the national branch network of commercial banks. These findings are robust to changes in the dependent variable, namely, the number of commercial bank branches per person or per area, as well as the estimation method. With regard to control variables, we find that income level and economic openness have positive impacts on the number of bank branches, whereas the inflation rate has a negative impact.
Journal: Emerging Markets Finance and Trade
Pages: 765-774
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2016.1116287
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1116287
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:765-774




Template-Type: ReDIF-Article 1.0
Author-Name: Inci Gumus
Author-X-Name-First: Inci
Author-X-Name-Last: Gumus
Title: The Relationship Between Sovereign Spreads and International Reserves: Does the Exchange Rate Regime Matter?
Abstract: 
 International reserves have been put forward as an important factor affecting sovereign spreads in the literature. This article empirically analyzes whether the relationship between international reserves and sovereign spreads depends on exchange rate policy in emerging markets. The analysis is carried out using exchange rate classifications based on both the officially declared regimes and the actual exchange rate behavior. The results show that international reserves reduce sovereign spreads for all levels of exchange rate flexibility using both classifications. Reserves have a similar effect on spreads for all exchange rate categories, except for hard pegs, under which the effect is larger.
Journal: Emerging Markets Finance and Trade
Pages: 658-673
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2014.998534
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998534
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:658-673




Template-Type: ReDIF-Article 1.0
Author-Name: Hatice Gaye Gencer
Author-X-Name-First: Hatice
Author-X-Name-Last: Gaye Gencer
Author-Name: Sercan Demiralay
Author-X-Name-First: Sercan
Author-X-Name-Last: Demiralay
Title: Volatility Modeling and Value-at-Risk (VaR) Forecasting of Emerging Stock Markets in the Presence of Long Memory, Asymmetry, and Skewed Heavy Tails
Abstract: 
 In this article, we elaborate some empirical stylized facts of eight emerging stock markets for estimating one-day- and one-week-ahead Value-at-Risk (VaR) in the case of both short- and long-trading positions. We model the emerging equity market returns via APARCH, FIGARCH, and FIAPARCH models under Student-t and skewed Student-t innovations. The FIAPARCH models under skewed Student-t distribution provide the best fit for all the equity market returns. Furthermore, we model the daily and one-week-ahead market risks with the conditional volatilities generated from the FIAPARCH models and document that the skewed Student-t distribution yields the best results in predicting one-day-ahead VaR forecasts for all the stock markets. The results also reveal that the prediction power of the models deteriorate for longer forecasting horizons.
Journal: Emerging Markets Finance and Trade
Pages: 639-657
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2014.998557
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998557
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:639-657




Template-Type: ReDIF-Article 1.0
Author-Name: Alin Marius Andrieş
Author-X-Name-First: Alin Marius
Author-X-Name-Last: Andrieş
Author-Name: Iulian Ihnatov
Author-X-Name-First: Iulian
Author-X-Name-Last: Ihnatov
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Title: Comovement of Exchange Rates: A Wavelet Analysis
Abstract: 
 In this article we investigate the behavior of exchange rates in Central and Eastern European countries. The results strongly indicate that interactions between exchange rates have different characteristics at different timescales. Our results show that CEE exchange rates are nearly perfectly integrated in the short and medium run, since the returns obtained in any of the CEE foreign exchange market can almost be explained by the overall performance in the other CEE markets. The discrepancies between CEE exchange rates are small, but increase within three to six months and that means in the long run the integration of foreign exchange markets is weak.
Journal: Emerging Markets Finance and Trade
Pages: 574-588
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2014.998563
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998563
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:574-588




Template-Type: ReDIF-Article 1.0
Author-Name: Xiao-lin Li
Author-X-Name-First: Xiao-lin
Author-X-Name-Last: Li
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Tsangyao Chang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Chang
Title: The Causal Relationship Between Economic Policy Uncertainty and Stock Returns in China and India: Evidence from a Bootstrap Rolling Window Approach
Abstract: 
 This article applies a bootstrap rolling-window causality test to assess the causal relationship between economic policy uncertainty (EPU) and stock returns in China and India. Empirical literature examining causality between two time series may suffer from inaccurate results when the underlying full-sample time series have structural changes. However, the bootstrap rolling-window approach enables us to identify possible time-varying causalities between time series based on sub-sample data. Using a twenty-four-months rolling window over the period 1995:02 to 2013:02 in China and 2003:02–2013:02 in India, we do find that there are bidirectional causal relationships between EPU and stock returns in several sub-periods rather than in the whole sample period. However, the association between EPU and stock returns is, in general, weak for these two emerging countries. Our findings have important implications for policy makers and investors.
Journal: Emerging Markets Finance and Trade
Pages: 674-689
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2014.998564
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998564
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:674-689




Template-Type: ReDIF-Article 1.0
Author-Name: Chengsi Zhang
Author-X-Name-First: Chengsi
Author-X-Name-Last: Zhang
Author-Name: Huidong He
Author-X-Name-First: Huidong
Author-X-Name-Last: He
Title: Globalization and Changing Inflation Dynamics in China
Abstract: 
 This article investigates the changing impact of economic globalization on inflation in China over the post-reform era. We construct an inflation dynamics model with globalization factors from microeconomic foundations. Empirical results with quarterly data spanning from 1984 to 2012 show that in 1994 there was a significant structural change in the inflation dynamics model, after which China’s inflation responded more significantly to foreign economic slack while the slope of the inflation-domestic slack relation reduced substantively.
Journal: Emerging Markets Finance and Trade
Pages: 625-638
Issue: 3
Volume: 52
Year: 2016
Month: 3
X-DOI: 10.1080/1540496X.2014.998565
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998565
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:3:p:625-638




Template-Type: ReDIF-Article 1.0
Author-Name: Güzin Bayar
Author-X-Name-First: Güzin
Author-X-Name-Last: Bayar
Author-Name: Metehan Ünal
Author-X-Name-First: Metehan
Author-X-Name-Last: Ünal
Author-Name: Selman Tokpunar
Author-X-Name-First: Selman
Author-X-Name-Last: Tokpunar
Title: Determinants of Turkish Exports to European Union Countries: A Sectoral Panel Data Analysis
Abstract: 
 In this study, the structure of Turkish exports to ten EU countries (Belgium, France, Germany, Greece, Hungary, Italy, Poland, Romania, Spain, and the United Kingdom) and the European Union total are examined and compared. For each country, the cross-sectional dimension is manufacturing industry sectors, and the time dimension is between 2003Q1 and 2012Q2. The estimation methodology is augmented mean group. In the regressions, the statistically significant variables affecting Turkey’s exports to various EU countries are Turkey’s industrial production index and sectoral export unit price index, partner country’s sectoral imports from the World, and partner country’s import prices. Seasonal dummies are added to account for seasonalities in the data, and a crises dummy is added to see the effects of recent crises. This study enables us to analyse Turkey’s exports to EU countries across time, sector, and country dimensions and make policy suggestions.
Journal: Emerging Markets Finance and Trade
Pages: 1307-1325
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1011506
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011506
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1307-1325




Template-Type: ReDIF-Article 1.0
Author-Name: Jorg Bley
Author-X-Name-First: Jorg
Author-X-Name-Last: Bley
Author-Name: Mohsen Saad
Author-X-Name-First: Mohsen
Author-X-Name-Last: Saad
Title: Idiosyncratic Volatility Forecasting in the Stock Market of Saudi Arabia
Abstract: 
 We test the forecasting ability of two sets of models, one containing historical volatility–based models and the other conditional volatility–based models, on estimates of idiosyncratic risk of individual Saudi Arabian stocks. While the rankings of forecasts are sensitive to the choice of error statistics, historical volatility–based models appear to be superior, unless the model employed to generate the underlying idiosyncratic return series incorporates higher moments. Exponential smoothing models, with a seasonal component in particular, display superior forecasting performance regardless of whether the idiosyncratic volatility estimates are generated at the local (Saudi Arabian) level or the regional (Gulf Cooperation Council [GCC]) level. The results are of particular interest to investors that are not mean variance optimizers.
Journal: Emerging Markets Finance and Trade
Pages: 1342-1357
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1011512
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011512
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1342-1357




Template-Type: ReDIF-Article 1.0
Author-Name: Michaël Bonnal
Author-X-Name-First: Michaël
Author-X-Name-Last: Bonnal
Author-Name: Mehmet E. Yaya
Author-X-Name-First: Mehmet E.
Author-X-Name-Last: Yaya
Title: Political Institutions, Trade Openness, and Economic Growth: New Evidence
Abstract: 
 We present new evidence on the relationship between political institutions, trade openness, and economic growth using a panel of over 200 countries and eight nonoverlapping five-year average observations for 1975–2010. We explore (1) whether political institutions lead to lower economic growth rates and (2) whether income per capita and trade openness curb the persistence of these institutions. The panel data estimation results suggest that most of our political institution proxies do not hinder economic growth. However, increases in per capita income, trade openness, and education curtail the persistence of these political institutions.
Journal: Emerging Markets Finance and Trade
Pages: 1276-1291
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1011514
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011514
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1276-1291




Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Klomp
Author-X-Name-First: Jeroen
Author-X-Name-Last: Klomp
Title: Sovereign Risk and Natural Disasters in Emerging Markets
Abstract: 
 In this article, we explore the effect of large-scale natural disasters on sovereign default risk. We use a heterogeneous dynamic panel model including a set of more than 380 large-scale natural disasters for about forty emerging market countries in the period 1999–2010. After testing for the sensitivity of the results, our main findings suggest that natural disasters significantly increase the sovereign default premium paid by bond holders. That is, investors perceive natural disasters as an adverse shock that makes the government debt less sustainable and eventually triggers a sovereign default. In particular, it turns out that geophysical and meteorological disasters increase the credit default premium in both the long run as well as in the short run, while hydrological disasters have only a temporary effect.
Journal: Emerging Markets Finance and Trade
Pages: 1326-1341
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1011530
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011530
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1326-1341




Template-Type: ReDIF-Article 1.0
Author-Name: Emel Yücel
Author-X-Name-First: Emel
Author-X-Name-Last: Yücel
Author-Name: Yıldırım Beyazıt Önal
Author-X-Name-First: Yıldırım Beyazıt
Author-X-Name-Last: Önal
Title: Industrial Diversification and Risk in an Emerging Market: Evidence from Turkey
Abstract: 
 In this study, we analyze the relationship between industrial diversification and risk among the Turkish firms listed in the Borsa Istanbul using data from 2005 to 2012. These analyses make use of static and dynamic panel data models. The study indicates that diversification is negatively related to firm-specific risk and total risk in industrially diversified firms. Furthermore, the study demonstrates that the firm-specific risk and total risk of industrially diversified firms are lower than those of single-business firms.
Journal: Emerging Markets Finance and Trade
Pages: 1292-1306
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1011544
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011544
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1292-1306




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Deryugina
Author-X-Name-First: Elena
Author-X-Name-Last: Deryugina
Author-Name: Alexey Ponomarenko
Author-X-Name-First: Alexey
Author-X-Name-Last: Ponomarenko
Title: Accounting for Post-Crisis Macroeconomic Developments in Russia: A Large Bayesian Vector Autoregression Model Approach
Abstract: 
 We apply an econometric approach developed specifically to address the “curse of dimensionality” in Russian data and estimate a Bayesian vector autoregression model comprising sixteen major macroeconomic indicators. We conduct several types of exercises to validate our model: impulse response analysis, recursive forecasting and counterfactual simulations. We also show that real sector developments in Russia in 2010–13 could be accurately forecasted if conditioned on oil price and EU GDP (but not if conditioned on oil price alone). Real growth rates were notably lower than projected in 2014, presumably due to increased economic uncertainty.
Journal: Emerging Markets Finance and Trade
Pages: 1261-1275
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1069125
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1069125
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1261-1275




Template-Type: ReDIF-Article 1.0
Author-Name: Georgeta Vintilă
Author-X-Name-First: Georgeta
Author-X-Name-Last: Vintilă
Author-Name: Mihaela Onofrei
Author-X-Name-First: Mihaela
Author-X-Name-Last: Onofrei
Author-Name: Ştefan Cristian Gherghina
Author-X-Name-First: Ştefan Cristian
Author-X-Name-Last: Gherghina
Title: The Effects of Corporate Board and CEO Characteristics on Firm Value: Empirical Evidence from Listed Companies on the Bucharest Stock Exchange
Abstract: 
 This article investigates the influence of characteristics of the corporate board and chief executive officer (CEO) on firm value, using a sample of companies listed on the Bucharest Stock Exchange from 2007 to 2011. We consider board independence, committees, size, and diversity as board characteristics, as well as CEO characteristics such as CEO age, tenure, dual roles of CEO and chairman, country of residence, and gender. We employ the Tobin’s Q ratio as a proxy for firm value. We find evidence that board size negatively influences firm value, whereas curvilinear relationships are found among board independence, diversity, and firm value. Also, CEO tenure positively influences firm value, whereas the other governance variables are not statistically significant.
Journal: Emerging Markets Finance and Trade
Pages: 1244-1260
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1073518
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1073518
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1244-1260




Template-Type: ReDIF-Article 1.0
Author-Name: Dayong Zhang
Author-X-Name-First: Dayong
Author-X-Name-Last: Zhang
Title: Politics, Finance, and Economic Fluctuations in China
Journal: Emerging Markets Finance and Trade
Pages: 1071-1073
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080488
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080488
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1071-1073




Template-Type: ReDIF-Article 1.0
Author-Name: Puyang Sun
Author-X-Name-First: Puyang
Author-X-Name-Last: Sun
Author-Name: Wei Jiang
Author-X-Name-First: Wei
Author-X-Name-Last: Jiang
Title: The Squeezed Middle: Political Affiliation and Financial Constraints in China
Abstract: 
 We examine the heterogeneous effects of political affiliation with the different levels of government on private Chinese firms’ financial constraints between 1998 and 2007 with Euler’s equation. Our results provide limited support for the positive effect of political affiliation on the firms’ external finance. Furthermore, we find that affiliating with the below-province-level governments might harden the external finance constraints of private firms when compared to the firms with no political affiliation. Moreover, political affiliation would not ease the private firms’ financial constraints in either capital- or labor-intensive industries.
Journal: Emerging Markets Finance and Trade
Pages: 1074-1083
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080493
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080493
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1074-1083




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Wu
Author-X-Name-First: Yu
Author-X-Name-Last: Wu
Author-Name: Fang Qin
Author-X-Name-First: Fang
Author-X-Name-Last: Qin
Title: Do We Need to Recover  + 0 Trading? Evidence from the Chinese Stock Market
Abstract: 
 In this study, we examine the effects of a change in the day trading rule from T + 0 to T + 1 for B-shares in Chinese stock market. We remove the influence of adjusting stamp taxes, which happened around the change in the day trading rule. We also apply the difference-in-difference method to remove the effects of other factors that may influence the market quality during the same period. The results show that a change in the day trading rule from T + 0 to T + 1 will increase price volatility, raise bid-ask spread, reduce the trading activity, and lower the price efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 1084-1098
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080495
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080495
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1084-1098




Template-Type: ReDIF-Article 1.0
Author-Name: Guoying Deng
Author-X-Name-First: Guoying
Author-X-Name-Last: Deng
Author-Name: Shaoyang Zhao
Author-X-Name-First: Shaoyang
Author-X-Name-Last: Zhao
Author-Name: Nanmiao Zhu
Author-X-Name-First: Nanmiao
Author-X-Name-Last: Zhu
Title: Does Refinancing Incentive Affect Cash Dividends Policy? Evidence from the Semimandatory Dividend Policy in China
Abstract: 
 We analyze the effect of a new regulation on the cash dividend policy of listed companies in China. Using data from China’s listed companies between 1999 and 2009, our empirical analysis shows that the relationship between the refinancing incentive and the cash dividend is not significant before 2001, and since the China Securities Regulatory Commission (CSRC) introduced a semimandatory dividend policy that directly related refinancing qualifications to companies’ cash dividend payments in 2001, companies with higher refinancing needs are more likely to pay or pay much more cash dividends. We also find that numerous listed companies pay dividends strategically to meet the requirement of regulation, which limited the effectiveness of the semimandatory dividend policy.
Journal: Emerging Markets Finance and Trade
Pages: 1099-1116
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080499
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080499
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1099-1116




Template-Type: ReDIF-Article 1.0
Author-Name: Lin Huang
Author-X-Name-First: Lin
Author-X-Name-Last: Huang
Author-Name: Dayong Zhang
Author-X-Name-First: Dayong
Author-X-Name-Last: Zhang
Title: Hedging or Speculation: What Can We Learn from the Volume-Return Relationship?
Abstract: 
 We investigate the volume-return relationship using data from the Chinese stock market. Drawing on a recent theoretical model on the volume-return relationship, we test empirically whether investors in China are hedging oriented or motivated by speculation. A two-state Markov-switching model is used to augment the basic model. Allowing the underlying model to switch between two regimes reveals further information that investors’ motivation in the Chinese stock market is sensitive to the general market conditions.
Journal: Emerging Markets Finance and Trade
Pages: 1117-1128
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080501
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080501
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1117-1128




Template-Type: ReDIF-Article 1.0
Author-Name: Qiang Ji
Author-X-Name-First: Qiang
Author-X-Name-Last: Ji
Author-Name: Ming-Lei Liu
Author-X-Name-First: Ming-Lei
Author-X-Name-Last: Liu
Author-Name: Ying Fan
Author-X-Name-First: Ying
Author-X-Name-Last: Fan
Title: Effects of Structural Oil Shocks on Output, Exchange Rate, and Inflation in the BRICS Countries: A Structural Vector Autoregression Approach
Abstract: 
 In this study, we apply a structural vector autoregression (SVAR) model, combining the global crude oil market with each emerging economy, to investigate the effects of different types of oil shocks on industrial outputs, real exchange rates, and consumer price levels in each of the BRICS countries. The empirical results show that an oil supply shock has significant effects on Russia, while other countries are mainly influenced by an aggregate demand shock. Moreover, an oil-specific demand shock caused by expectation shifts or speculative activities is likely to induce a stagflation risk for China and India. However, these harmful effects are relatively delayed due to oil subsidies or price regulation measures.
Journal: Emerging Markets Finance and Trade
Pages: 1129-1140
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080505
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080505
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1129-1140




Template-Type: ReDIF-Article 1.0
Author-Name: M. Ege Yazgan
Author-X-Name-First: M. Ege
Author-X-Name-Last: Yazgan
Title: MENA Economies: Reforms, Risk, and Development
Journal: Emerging Markets Finance and Trade
Pages: 1141-1143
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080508
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080508
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1141-1143




Template-Type: ReDIF-Article 1.0
Author-Name: Djavad Salehi-Isfahani
Author-X-Name-First: Djavad
Author-X-Name-Last: Salehi-Isfahani
Author-Name: Bryce Wilson Stucki
Author-X-Name-First: Bryce
Author-X-Name-Last: Wilson Stucki
Author-Name: Joshua Deutschmann
Author-X-Name-First: Joshua
Author-X-Name-Last: Deutschmann
Title: The Reform of Energy Subsidies in Iran: The Role of Cash Transfers
Abstract: 
 We study Iran’s energy subsidy reform program of 2010 and argue that the key to its success was a cash transfer intended to compensate households for price increases. We use survey data from the first three months of the program, before other economic shocks confounded the picture, to study the program’s effect on the incomes and expenditures of households. We find that rural families that had less access to banks actually participated in greater numbers; that the poorest and richest income deciles participated least; and that, at least in its early phase, the program’s net effect was pro-poor. We argue this last fact explains the program’s smooth start.
Journal: Emerging Markets Finance and Trade
Pages: 1144-1162
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080512
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080512
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1144-1162




Template-Type: ReDIF-Article 1.0
Author-Name: Serda Selin Öztürk
Author-X-Name-First: Serda Selin
Author-X-Name-Last: Öztürk
Author-Name: Engin Volkan
Author-X-Name-First: Engin
Author-X-Name-Last: Volkan
Title: Intraindustry Volatility Spillovers in the MENA Region
Abstract: 
 The 2007 global financial crisis had repercussions not only in mature capital markets but also in emerging markets, including that of the Middle East and North Africa (MENA) region. An accurate characterization of volatility spillover in the MENA region will have direct implications for financial hedging, portfolio management, and asset allocation, and, most important, in designing policies to mitigate the effects of possible contagion. In this article, we examine inter-MENA and from-the-world-to-MENA return volatility spillovers, at both the market and sectoral levels, for the period January 2008–December 2012.
Journal: Emerging Markets Finance and Trade
Pages: 1163-1174
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080514
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080514
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1163-1174




Template-Type: ReDIF-Article 1.0
Author-Name: George S. Naufal
Author-X-Name-First: George S.
Author-X-Name-Last: Naufal
Author-Name: Ismail H. Genc
Author-X-Name-First: Ismail H.
Author-X-Name-Last: Genc
Title: Structural Change in MENA Remittance Flows
Abstract: 
 After independence, the Gulf Cooperation Council (GCC) countries relied heavily on foreign workers from fellow Arab countries. Thus, remittances flowed from the GCC to other countries in Middle East and North Africa (MENA). In the 1980s and 1990s, the labor source switched to South Asia, which we econometrically verify. This deprived several MENA labor exporters of large sums of foreign exchange, adding significant economic, social, and political hardships on non-GCC MENA countries.
Journal: Emerging Markets Finance and Trade
Pages: 1175-1178
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080515
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080515
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1175-1178




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Pinar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Pinar
Author-Name: Thanasis Stengos
Author-X-Name-First: Thanasis
Author-X-Name-Last: Stengos
Author-Name: M. Ege Yazgan
Author-X-Name-First: M. Ege
Author-X-Name-Last: Yazgan
Title: Measuring Human Development in the MENA Region
Abstract: 
 We aim to assess welfare improvements in the Middle East and North Africa (MENA) region using the Human Development Index (HDI). We obtain weighting schemes that yield the best- and worst-case scenarios for measured human development, relying on consistent tests for stochastic dominance efficiency (SDE), with the official equally weighted HDI taken as a benchmark. In the best-case scenario index, life expectancy and GDP indexes receive the highest weights for the 1975–2005 period, while the education index is the dominant contributor to the worst-case scenario in the same period. In addition, we observe a relative change in the best- and worst-case scenarios between two fifteen-year periods. The GDP index is the main contributor to the best-case scenario between 1975 and 1990, whereas the education index is the main contributor to the worst-case scenario during that period. Life expectancy is the main contributor to the best-case scenario in the 1990–2005 period, while the GDP and education indexes are the primary contributors to the worst-case scenario during that period.
Journal: Emerging Markets Finance and Trade
Pages: 1179-1192
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080517
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080517
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1179-1192




Template-Type: ReDIF-Article 1.0
Author-Name: Dilip Kumar
Author-X-Name-First: Dilip
Author-X-Name-Last: Kumar
Title: Risk Spillover Between the GIPSI Economies and Egypt, Saudi Arabia, and Turkey
Abstract: 
 In this article, we examine the upside and downside risk spillover effects between the GIPSI economies (Greece, Ireland, Portugal, Spain, and Italy) and Egypt, Saudi Arabia, and Turkey using a kernel-based test as proposed by Hong et al. (2009). The results reveal that there exists a two-way as well as one-way downside risk spillover for most of the pairs between the GIPSI economies and Egypt, Saudi Arabia, and Turkey. However, we find significant two-way upside risk spillover effects between Egypt and Ireland, Italy, and Spain. The one-way upside risk spillover is significant only from Ireland, Italy, and Spain to Egypt.
Journal: Emerging Markets Finance and Trade
Pages: 1193-1208
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080520
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080520
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1193-1208




Template-Type: ReDIF-Article 1.0
Author-Name: İzak Atiyas
Author-X-Name-First: İzak
Author-X-Name-Last: Atiyas
Author-Name: Ozan Bakis
Author-X-Name-First: Ozan
Author-X-Name-Last: Bakis
Title: Structural Change and Industrial Policy in Turkey
Abstract: 
 We present evidence on structural change in Turkey and provide an overview of the evolution of industrial policy in the past three decades Turkey has experienced substantial growth in labor productivity in the past decade. About two-thirds of the increase in aggregate labor productivity arises from reallocation of employment from low- to high-productivity sectors and one-third from productivity increases within sectors. Decomposition of productivity growth using microdata also reveals an important contribution from reallocation. We also document substantial change in the composition of exports. We argue that structural change was not a direct result of selective industrial policy simply because the incentive system displayed little sectoral selectivity during the period when major structural change took place.
Journal: Emerging Markets Finance and Trade
Pages: 1209-1229
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080523
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080523
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Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Bravo
Author-X-Name-First: Francisco
Author-X-Name-Last: Bravo
Author-Name: José Luis Ruiz
Author-X-Name-First: José Luis
Author-X-Name-Last: Ruiz
Title: Herding Behavior and Default in Funded Pension Schemes: The Chilean Case
Abstract: 
 In 1981, Chile replaced the former pay-as-you-go system with a new system based on individual capitalization, private administration of assets, free choice of fund managers, and state oversight of the normal functioning of the companies. The state imposes a minimum guaranteed return for investments and requires that companies hold assets as reserves to cover that guarantee. This requirement generates a herding behavior among companies. We simulate scenarios for pension fund administrators that deviate from the norm in their investment strategies. We find that the reserve requirement is overfunded under the actual conditions.
Journal: Emerging Markets Finance and Trade
Pages: 1230-1243
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080526
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080526
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:6:p:1230-1243




Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board EOV
Journal: Emerging Markets Finance and Trade
Pages: ebi-ebi
Issue: 6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1100418
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1100418
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuan Chang
Author-X-Name-First: Yuan
Author-X-Name-Last: Chang
Author-Name: Ting-Hsuan Chen
Author-X-Name-First: Ting-Hsuan
Author-X-Name-Last: Chen
Author-Name: Min-Cheng Shu
Author-X-Name-First: Min-Cheng
Author-X-Name-Last: Shu
Title: Corporate Social Responsibility, Corporate Performance, and Pay-Performance Sensitivity—Evidence from Shanghai Stock Exchange Social Responsibility Index
Abstract: 
 Based on annual data of listed companies on Shanghai Stock Exchange (SSE) through 2009–2013, this article examines three hypotheses: first, whether a firm’s taking corporate social responsibility (CSR) affects corporate performance; second, whether corporate governance and a firm’s age positively moderate the relationship between CSR and performance; and third, whether CSR positively moderates the magnitude/direction of linkage between a firm’s performance and top management/director compensation (pay-performance sensitivity, PPS). Three proxies for CSR engagement are constructed by a firm’s inclusion in the SSE Social Responsibility Index. Empirical evidence generally shows that firms engaging in CSR tend to obtain superior performance in terms of higher profitability. However, firm’s age and sound corporate governance have little additional benefit on the effect of a firm engaging in CSR on performance. Finally, greater CSR engagement is associated with larger PPS. Principal outcome does not shift under two-stage estimation and propensity score matching (PSM) to correct for sample self-selection of CSR engagement.
Journal: Emerging Markets Finance and Trade
Pages: 1183-1203
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2016.1273768
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1273768
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:1183-1203




Template-Type: ReDIF-Article 1.0
Author-Name: Sharon Poczter
Author-X-Name-First: Sharon
Author-X-Name-Last: Poczter
Title: Business Groups in Emerging Markets: A Survey and Analysis
Abstract: 
 Research in the economics, finance, and management literature has sought to describe the predominance of business groups using an economic lens for decades. Yet, theory still falls short of explaining the role of business groups as a substitute for external markets as their influence only increases as countries develop. This article synthesizes the literature and posits that three main problems hinder its explanatory power; the difficulty of defining and identifying business groups, the focus on social welfare implications, and that the embeddedness of the central theories in a decidedly Anglo-American, developed economy perspective. Finally, suggestions for addressing these issues, along with accompanying hypotheses, are presented to further future research.
Journal: Emerging Markets Finance and Trade
Pages: 1150-1182
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2017.1286587
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1286587
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:1150-1182




Template-Type: ReDIF-Article 1.0
Author-Name: Hail Park
Author-X-Name-First: Hail
Author-X-Name-Last: Park
Author-Name: Yongcheol Shin
Author-X-Name-First: Yongcheol
Author-X-Name-Last: Shin
Title: The Effects of Oil Price on the Korean Economy: A Global VAR Approach
Abstract: 
 This article empirically explores the effects of oil price on the Korean economy using a Global VAR model. First, we evaluate the average connectedness of oil price with the Korean domestic variables over the precrisis period. We then investigate the time-varying contribution of oil price to the Korean financial and real sectors during and after the global financial crisis through recursive estimation. It is found that the contribution of oil price becomes very large in the case of real exports, equity prices, and real output, but plays a much less prevalent role in the remaining cases. In the meantime, the time-varying contribution of oil price to the Korean economy has not changed during and after the global financial crisis. Interestingly, we find that the Korean economy is affected mostly by overseas financial conditions in the short-term but it becomes more susceptible to oil price fluctuations in the long run, suggesting that Korea’s reliance on energy imports leaves the economy exposed to volatility in energy prices.
Journal: Emerging Markets Finance and Trade
Pages: 981-991
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2017.1410473
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1410473
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:981-991




Template-Type: ReDIF-Article 1.0
Author-Name: Hua Shang
Author-X-Name-First: Hua
Author-X-Name-Last: Shang
Author-Name: Teng Zhang
Author-X-Name-First: Teng
Author-X-Name-Last: Zhang
Author-Name: Puman Ouyang
Author-X-Name-First: Puman
Author-X-Name-Last: Ouyang
Title: Credit Allocation and Firm Productivity Under Financial Imperfection: Evidence from Chinese Manufacturing Firms
Abstract: 
 The role of the financial system, especially the credit market, in productivity enhancement has interested many researchers. However, how credit allocation affects firms’ productivity in emerging economies remains unanswered. Using data from the Annual Survey of Industrial Firms (ASIF) during 1999–2007, this article examines whether credit allocation impacts Chinese firms’ productivity under financial imperfection. Our results show that the size of credit market has no influence on Chinese firms’ total factor productivity (TFP), while allocating more credit to non-SOEs significantly promotes firm TFP. Our further analysis shows that firms which are less subsidized, smaller, more external financially dependent, and more labor intensive are affected more by credit allocation. As China is the largest emerging economy, our analysis also sheds light on the development of firms in emerging economies.
Journal: Emerging Markets Finance and Trade
Pages: 992-1010
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2017.1410474
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1410474
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:992-1010




Template-Type: ReDIF-Article 1.0
Author-Name: Min Zhang
Author-X-Name-First: Min
Author-X-Name-Last: Zhang
Author-Name: Guangming Gong
Author-X-Name-First: Guangming
Author-X-Name-Last: Gong
Author-Name: Si Xu
Author-X-Name-First: Si
Author-X-Name-Last: Xu
Author-Name: Xun Gong
Author-X-Name-First: Xun
Author-X-Name-Last: Gong
Title: Corporate Fraud and Corporate Bond Costs: Evidence from China
Abstract: 
 This study investigates the relationship between corporate fraud and four typical components of costs associated with corporate bonds. Based on data from a booming corporate bond market in China, we confirm that fraudulent issuers have higher corporate bond costs. Specifically, they are more likely to push upward price revisions, pay higher issue fees and coupon spreads, and encounter larger underpricing after issuance. Moreover, we demonstrate that severe corporate fraud is also significantly related to the costs of corporate bonds. Furthermore, we find that investors pay more attention to fraud in accounting information and disclosure. These results remain robust to a strand of endogeneity and through the robustness tests. In additional research, we find that bonds issued by fraudulent firms tend to receive lower ratings and show inferior performance after issuance. We also demonstrate that the effects of corporate fraud on bond costs erode as time passes, although the mitigation speed is slow. Finally, we find that hiring reputable financial intermediaries can partially mitigate the negative effects of corporate fraud.
Journal: Emerging Markets Finance and Trade
Pages: 1011-1046
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2017.1411256
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1411256
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Template-Type: ReDIF-Article 1.0
Author-Name: Yanbin Chen
Author-X-Name-First: Yanbin
Author-X-Name-Last: Chen
Author-Name: Kai Liu
Author-X-Name-First: Kai
Author-X-Name-Last: Liu
Author-Name: Zhexi Liu
Author-X-Name-First: Zhexi
Author-X-Name-Last: Liu
Title: U.S. Money Supply and China’s Business Cycles
Abstract: 
 This article models the U.S. dollar as a world currency in a global DSGE framework, and investigates the spillover effects of the U.S. money supply shock on China’s economy. Exchange rate targeting and capital controls in the context of dollar hegemony are investigated. Given a positive U.S. money supply shock, both the inflation and real GDP of China will be below their steady-state levels in the medium term; while for the U.S. there is no inflation pressure. The spillover of liquidity effect exists. Cost-push effects and relative price effects are employed to discuss the transmission mechanism. Under the U.S. money supply shock, a fully liberalizing reform with no capital controls and a floating exchange rate of Renminbi is not the best reform for China.
Journal: Emerging Markets Finance and Trade
Pages: 957-980
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2017.1417833
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1417833
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:957-980




Template-Type: ReDIF-Article 1.0
Author-Name: Nahla Samargandi
Author-X-Name-First: Nahla
Author-X-Name-Last: Samargandi
Title: Determinants of Labor Productivity in MENA Countries
Abstract: 
 This article scrutinizes the role of various determinants (compensation, human capital, oil rent, trade, financial development, innovation, and industrialization) in labor productivity in the context of Middle East and North Africa (MENA) countries. Dynamic-OLS and fully modified-OLS were applied to analyze panel time series data over the period 1980 to 2014. It was found that size of employment and compensation are negatively associated with labor productivity, while human capital and capital stock are positively associated with it; and that oil rent, financial development, trade openness, and industrial value addition play significant roles in promoting labor productivity. Finally, innovation was found to be an important factor in accelerating labor productivity. These findings are important for labor policy making in MENA economies.
Journal: Emerging Markets Finance and Trade
Pages: 1063-1081
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2017.1418658
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1418658
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:1063-1081




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Aizenman
Author-X-Name-First: Joshua
Author-X-Name-Last: Aizenman
Author-Name: Yothin Jinjarak
Author-X-Name-First: Yothin
Author-X-Name-Last: Jinjarak
Author-Name: Gemma Estrada
Author-X-Name-First: Gemma
Author-X-Name-Last: Estrada
Author-Name: Shu Tian
Author-X-Name-First: Shu
Author-X-Name-Last: Tian
Title: Flexibility of Adjustment to Shocks: Economic Growth and Volatility of Middle-Income Countries Before and After the Global Financial Crisis of 2008
Abstract: 
 Our analysis shows that the associations of growth level, growth volatility, shocks, institutions, and macroeconomic fundamentals have changed in important ways after the 2008 global financial crisis. Economic growth across countries has become more dependent on external factors, including global growth, global oil prices, and global financial volatility. After accounting for the effects global shocks, we find that several factors facilitate adjustment to shocks in middle-income countries. Educational attainment, share of manufacturing output in gross domestic product, and exchange rate stability increase the level of economic growth; although, exchange rate flexibility, education attainment, and lack of political polarization reduce the volatility of economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 1112-1131
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2017.1422430
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1422430
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:1112-1131




Template-Type: ReDIF-Article 1.0
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Guanglu Zhang
Author-X-Name-First: Guanglu
Author-X-Name-Last: Zhang
Title: Can Industrial Restructuring Significantly Reduce Energy Consumption? Evidence from China
Abstract: 
 This article uses China’s input–output (I-O) tables in 2002, 2007, and 2012 to estimate the real energy consumption of each sector after the I-O adjustment. The relationship between the sectors is further analyzed using the utility analysis method based on ecological network analysis. The empirical results show that although the traditional energy-intensive industries are the major energy-consuming sectors from a direct energy consumption perspective, large energy consumption by energy-intensive industries is transferred to downstream industries through intermediate products after the I-O adjustment. Specifically, the building industry and service sector are the sectors with the highest real energy consumption. With the upgrading and optimization of the industrial structure, the proportion of energy-intensive sectors in China is declining. However, the development of the service sector and infrastructure construction still requires large intermediate inputs. Thus, industrial restructuring cannot significantly reduce China’s total energy consumption.
Journal: Emerging Markets Finance and Trade
Pages: 1082-1095
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2018.1425836
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1425836
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:1082-1095




Template-Type: ReDIF-Article 1.0
Author-Name: Antai Li
Author-X-Name-First: Antai
Author-X-Name-Last: Li
Author-Name: Xinping Xia
Author-X-Name-First: Xinping
Author-X-Name-Last: Xia
Title: Are Controlling Shareholders Influencing the Relationship Between CSR and Earnings Quality? Evidence from Chinese Listed Companies
Abstract: 
 This article examines how controlling shareholders may affect the relationship between the level of corporate social responsibility (CSR) and earnings quality. We find that controlling shareholders have a significant impact on the relationship between the level of CSR and earnings quality; the relationship between the level of CSR and earnings quality is significantly positive in privately owned enterprises but not state-owned enterprises; and, among state-owned enterprises, the relationship is weaker at enterprises controlled by the central government than at those controlled by local governments. Our article highlights the differential impacts of controlling shareholders on the relationship between CSR and earnings quality.
Journal: Emerging Markets Finance and Trade
Pages: 1047-1062
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2018.1434070
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1434070
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:1047-1062




Template-Type: ReDIF-Article 1.0
Author-Name: Tan Li
Author-X-Name-First: Tan
Author-X-Name-Last: Li
Author-Name: Ying Xue
Author-X-Name-First: Ying
Author-X-Name-Last: Xue
Author-Name: Jian Lu
Author-X-Name-First: Jian
Author-X-Name-Last: Lu
Author-Name: Ang Li
Author-X-Name-First: Ang
Author-X-Name-Last: Li
Title: Cross-Border Mergers and Acquisitions and the Role of Free Trade Agreements
Abstract: 
 This article investigates the impact of the formation of free trade agreements (FTAs) on cross-border mergers and acquisitions (M&amp;As). Using the comprehensive M&amp;As dataset of Securities Data Company, we find that FTA relationship is associated with more bilateral cross-border M&amp;As. Second, the cross-border M&amp;As activities between a FTA country-pair do not increase faster than the acquiring country’s total foreign acquisitions, suggesting no evidence of investment diversion effect of FTA. Third, we find that existing FTA relationship with other countries positively affect cross-border M&amp;As between a FTA country-pair. But these third-country FTA effects differ for acquiring country and target country when we look at the ratio of a country-pair’s FTA relative to the acquiring country’s total foreign M&amp;As. Moreover, by exploring the detailed information on acquiring and target firms, we reveal that the effect of FTA differs for horizontal, vertical and conglomerate cross-border M&amp;As. Our results are robust to various measures of M&amp;As activities and econometric methods used.
Journal: Emerging Markets Finance and Trade
Pages: 1096-1111
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2018.1436437
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1436437
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:1096-1111




Template-Type: ReDIF-Article 1.0
Author-Name: Yunieta Anny Nainggolan
Author-X-Name-First: Yunieta Anny
Author-X-Name-Last: Nainggolan
Author-Name: Irwan Trinugroho
Author-X-Name-First: Irwan
Author-X-Name-Last: Trinugroho
Title: The Disclosure Practices of Islamic Equity Funds
Abstract: 
 We investigate the disclosure practices of screening and compliance information of Islamic equity funds around the world. Disclosures on Sharia advisors and screening information are quite high, but they are lower for compliance information such as Sharia advisory report (SAR) and holdings data. The results show that younger funds with better Sharia advisory board (SAB) governance which are domiciled in countries belonging to an Islamic international standard-setter body have the highest disclosure levels. However, funds domiciled in countries with a central SAB and following common law disclose less Sharia-related information. These findings are important for the effectiveness of disclosure framework.
Journal: Emerging Markets Finance and Trade
Pages: 1132-1149
Issue: 5
Volume: 54
Year: 2018
Month: 4
X-DOI: 10.1080/1540496X.2018.1436438
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1436438
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Template-Type: ReDIF-Article 1.0
Author-Name: Luiz Alberto D´Ávila de Araújo
Author-X-Name-First: Luiz Alberto D´Ávila
Author-X-Name-Last: de Araújo
Author-Name: Joaquim Pinto de Andrade
Author-X-Name-First: Joaquim Pinto
Author-X-Name-Last: de Andrade
Title: Nonlinearities in the Brazilian Yield Curve
Abstract: 
 The article indicates the yield curve can be modeled using a continuous estimator as smooth transition regression, instead of traditional switch models, because bonds are traded continuously in the financial market. The results indicate that nonlinearity in the yield curve explains the pitfalls of monetary policy. The positive correlation between inflation and spread is consistent with a rise on uncertainty due to inflation risk or seems to indicate Brazilian Central Bank’s monetary policy credibility in the sample period. Therefore, if dependence on international capital exists, the Brazilian economic policy makers must monitor the movements in yield and analyze its feedback frequently in order to guide their plans and decisions.
Journal: Emerging Markets Finance and Trade
Pages: S3-S13
Issue: S6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080552
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080552
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S6:p:S3-S13




Template-Type: ReDIF-Article 1.0
Author-Name: Livia F. Pimentel
Author-X-Name-First: Livia F.
Author-X-Name-Last: Pimentel
Author-Name: Leonardo P. Santiago
Author-X-Name-First: Leonardo P.
Author-X-Name-Last: Santiago
Title: Modeling a Dynamic Portfolio for Pension Plans in Emerging Markets With Myopic and Nonmyopic Behavior
Abstract: 
 We introduce a dynamic formulation for the problem of portfolio selection of pension funds in the absence of a risk-free asset. In emerging markets, a risk-free asset might be unavailable, and the approaches commonly used may no longer be suitable. We use a parametric approach to combine dynamic programming and Monte Carlo simulation to gain additional flexibility. This approach is general in the sense that optimal asset allocation is tractable for all HARA utility functions in the absence of a risk-free asset. The traditional case composed of several risky assets and one risk-free asset is compared to a case in which the risk-free asset is unavailable.
Journal: Emerging Markets Finance and Trade
Pages: S14-S26
Issue: S6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080553
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080553
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Template-Type: ReDIF-Article 1.0
Author-Name: Vanessa Hoffmann De Quadros
Author-X-Name-First: Vanessa
Author-X-Name-Last: Hoffmann De Quadros
Author-Name: Juan Carlos González-Avella
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: González-Avella
Author-Name: José Roberto Iglesias
Author-X-Name-First: José Roberto
Author-X-Name-Last: Iglesias
Title: Credit Risk in Interbank Networks
Abstract: 
 One of the most striking characteristics of modern financial systems is their complex interdependence, comprising a network of bilateral exposures in the interbank market, in which institutions with surplus liquidity can lend to those with a liquidity shortage. Empirical studies reveal that some interbank networks have features of scale-free networks. We explore the characteristics of financial contagion in networks whose distribution of links approaches a power law, using a model that defines banks’ balance sheets from information on network connectivity. By varying the parameters for the creation of the network, several interbank networks are built, in which the concentration of debt and credit comes from the distribution of links. The results suggest that networks that are more connected and have a high concentration of credit are more resilient to contagion than other types of networks analyzed.
Journal: Emerging Markets Finance and Trade
Pages: S27-S41
Issue: S6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080554
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080554
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Template-Type: ReDIF-Article 1.0
Author-Name: Ales S. Berk
Author-X-Name-First: Ales S.
Author-X-Name-Last: Berk
Author-Name: Polona Peterle
Author-X-Name-First: Polona
Author-X-Name-Last: Peterle
Title: Initial and Long-Run IPO Returns in Central and Eastern Europe
Abstract: 
 This article provides original evidence on IPO underpricing and long-run underperformance in Central and Eastern Europe (CEE) and compares results to the European Union’s developed capital markets from 2000 to 2009. Using both index-adjusted and CAPM-adjusted returns, we find significant underpricing that is significantly higher than underpricing of comparable IPOs in the European Union’s developed capital markets. We show that the CEE’s initial IPO returns also exhibit significantly higher volatility. In line with the asymmetric information theory, we indicate that smaller IPOs in the CEE region have greater underpricing than the larger IPOs. Contrary to the literature, we unambiguously confirm long-run underperformance toward the benchmarks. In some model specifications, we also find that IPO long-run underperformance in the CEE region is less present than in the European Union’s developed capital markets.
Journal: Emerging Markets Finance and Trade
Pages: S42-S60
Issue: S6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080555
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080555
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S6:p:S42-S60




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Pereira Macera
Author-X-Name-First: Andrea Pereira
Author-X-Name-Last: Macera
Author-Name: Jose Angelo Divino
Author-X-Name-First: Jose Angelo
Author-X-Name-Last: Divino
Title: Import Tariff and Exchange Rate Transmission in a Small Open Economy
Abstract: 
 We present a small open economy DSGE model with internal and external sticky prices in an incomplete exchange rate pass-through environment. Import tariff is included as another variable that affects the law of one price. The model is calibrated for the Brazilian economy, and the responses of endogenous variables to shocks in import tariff, aggregate supply, monetary policy, and foreign interest are analyzed. The long-run effect of the first shock is deterioration in the terms of trade because the exchange rate appreciation following this shock offsets the initial effect of the increase in import tariff.
Journal: Emerging Markets Finance and Trade
Pages: S61-S79
Issue: S6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080556
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080556
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S6:p:S61-S79




Template-Type: ReDIF-Article 1.0
Author-Name: Tjeerd M. Boonman
Author-X-Name-First: Tjeerd M.
Author-X-Name-Last: Boonman
Author-Name: Jan P.A.M. Jacobs
Author-X-Name-First: Jan P.A.M.
Author-X-Name-Last: Jacobs
Author-Name: Gerard H. Kuper
Author-X-Name-First: Gerard H.
Author-X-Name-Last: Kuper
Title: Sovereign Debt Crises in Latin America: A Market Pressure Approach
Abstract: 
 We construct a continuous sovereign debt crisis index for four large Latin American countries for the period 1870−2012. To obtain the optimal set of indicators and the optimal value of the threshold for dating crises we apply the receiver operating characteristic (ROC) curve. Our sovereign debt crisis index is a weighted average of three indicators: the debt-to-GDP ratio, the external interest rate spread, and the exports-to-imports ratio. The continuous index allows a more advanced analysis of sovereign debt crises as illustrated with an investigation of the relationship between sovereign debt crises and business cycles in Latin America.
Journal: Emerging Markets Finance and Trade
Pages: S80-S93
Issue: S6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080558
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080558
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S6:p:S80-S93




Template-Type: ReDIF-Article 1.0
Author-Name: Raheel Gohar
Author-X-Name-First: Raheel
Author-X-Name-Last: Gohar
Author-Name: Amna Batool
Author-X-Name-First: Amna
Author-X-Name-Last: Batool
Title: Effect of Corporate Governance on Performance of Microfinance Institutions: A Case from Pakistan
Abstract: 
 We aim to assess the effect of corporate governance on the financial, economic, and social performance of microfinance institutions (MFIs) in Pakistan. The sample comprises twenty-five MFIs and covers their performance over five years, 2005–09. The results of the study indicate that governance variables do have an influence on the performance (economic and social) and productivity of the MFIs in Pakistan. Larger boards inversely affect the economic performance but have a positive effect on outreach and productivity. Presence of female directors does not play any role in improving economic performance but positively affects outreach. Duality of chair with CEO is a negative contributor to performance, outreach, and productivity. Firm size, experience, regulation of MFIs, and nonprofit activities in lending have positive effects on performance outreach and productivity.
Journal: Emerging Markets Finance and Trade
Pages: S94-S106
Issue: S6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1080559
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1080559
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S6:p:S94-S106




Template-Type: ReDIF-Article 1.0
Author-Name: Jose Angelo Divino
Author-X-Name-First: Jose Angelo
Author-X-Name-Last: Divino
Author-Name: Wilfredo Maldonado
Author-X-Name-First: Wilfredo
Author-X-Name-Last: Maldonado
Author-Name: Rogerio Mazali
Author-X-Name-First: Rogerio
Author-X-Name-Last: Mazali
Author-Name: Benjamin Miranda Tabak
Author-X-Name-First: Benjamin Miranda
Author-X-Name-Last: Tabak
Title: Finance, Banking, and Regulation in Emerging Economies: An Overview
Journal: Emerging Markets Finance and Trade
Pages: S1-S2
Issue: S6
Volume: 51
Year: 2015
Month: 11
X-DOI: 10.1080/1540496X.2015.1083735
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1083735
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiang Yushi
Author-X-Name-First: Jiang
Author-X-Name-Last: Yushi
Author-Name: Muhammad Hasnain Abbas Naqvi
Author-X-Name-First: Muhammad Hasnain Abbas
Author-X-Name-Last: Naqvi
Author-Name: Mishal Hasnain Naqvi
Author-X-Name-First: Mishal Hasnain
Author-X-Name-Last: Naqvi
Title: Using Social Influence Processes and Psychological Factors to Measure Pervasive Adoption of Social Networking Sites: Evidence from Pakistan
Abstract: 
 Social networking sites (SNS) have emerged as a popular and convenient tool for connecting with different groups of people on a specific platform. This study examines the effect of social influence processes and psychological factors on the behavior of students’ pervasive adoption of SNS. Data were collected through a survey questionnaire. Partial least square was used for data analysis. Findings reveal that privacy, identification, and internalization ensure significant association with the intention to use SNS, ultimately has a positive effect on the pervasive adoption of SNS and so does gender. However, men were found to be less aware of privacy issues.
Journal: Emerging Markets Finance and Trade
Pages: 3485-3499
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2017.1417834
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1417834
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Template-Type: ReDIF-Article 1.0
Author-Name: Christina Christou
Author-X-Name-First: Christina
Author-X-Name-Last: Christou
Author-Name: Ruthira Naraidoo
Author-X-Name-First: Ruthira
Author-X-Name-Last: Naraidoo
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Won Joong Kim
Author-X-Name-First: Won Joong
Author-X-Name-Last: Kim
Title: Monetary Policy Reaction Functions of the TICKs: A Quantile Regression Approach
Abstract: 
 This study investigates how Taiwan, India, China, and Korea (TICKs) set interest rates in the context of policy reaction functions using a quantile-based approach. Our results indicate the tendency of a milder response to inflation at low interest rates and greater response at higher quantiles of interest rates, where inflation is presumably higher than desired for China and South Korea. While the response to inflation over the quantiles is significant for India, yet the Taylor principle is less likely to hold. For Taiwan, the results imply that another instrument is employed to deal with its official managed floating currency.
Journal: Emerging Markets Finance and Trade
Pages: 3552-3565
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2017.1422429
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1422429
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:15:p:3552-3565




Template-Type: ReDIF-Article 1.0
Author-Name: Qizhi Tao
Author-X-Name-First: Qizhi
Author-X-Name-Last: Tao
Author-Name: Ming Liu
Author-X-Name-First: Ming
Author-X-Name-Last: Liu
Author-Name: Qingchen Feng
Author-X-Name-First: Qingchen
Author-X-Name-Last: Feng
Author-Name: Yingjun Zhu
Author-X-Name-First: Yingjun
Author-X-Name-Last: Zhu
Title: How Do Institutional Investors Affect Corporate Performance? Evidence from Private Placements in China
Abstract: 
 Using data on private placements in China from 2007 to 2014, we show that abnormal returns of issuing companies’ stocks are significantly positive on the announcement day, but they become significantly negative during the event window [−20, +20]. Participation by institutional investors has a significant and negative impact on the short-term stock returns. This negative effect is also present in issuing companies’ long-term stock returns and profitability. Furthermore, we find that participation by institutional investors reduces dividend payments after private placements. Overall, our findings do not support the monitoring hypothesis of institutional investors’ role in corporate finance but are consistent with the management entrenchment hypothesis and shareholder pessimism hypothesis.
Journal: Emerging Markets Finance and Trade
Pages: 3454-3469
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1426456
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1426456
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Template-Type: ReDIF-Article 1.0
Author-Name: Thach Ngoc Pham
Author-X-Name-First: Thach Ngoc
Author-X-Name-Last: Pham
Author-Name: Vuong Minh Nguyen
Author-X-Name-First: Vuong Minh
Author-X-Name-Last: Nguyen
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc Hong
Author-X-Name-Last: Vo
Title: The Cross-Section of Expected Stock Returns: New Evidence from an Emerging Market
Abstract: 
 Over 300 factors have been found to explain the cross-section of expected stock returns. Empirical studies also show that findings from multifactor asset-pricing models have not been consistent in an emerging market. Using DuPont analysis and a residual income valuation model for 284 nonfinancial companies on Ho Chi Minh Stock Exchange during the period 2008–2014, findings suggest that the return on equity and its change are informative for stock returns in Vietnam. In addition, the level of capital turnover, financial cost ratio (FCR), and changes in capital and in the FCR contain incremental explanatory power for stock returns.
Journal: Emerging Markets Finance and Trade
Pages: 3566-3576
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1433031
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1433031
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Template-Type: ReDIF-Article 1.0
Author-Name: Chunhua Chen
Author-X-Name-First: Chunhua
Author-X-Name-Last: Chen
Author-Name: Tianze Li
Author-X-Name-First: Tianze
Author-X-Name-Last: Li
Author-Name: Yingqi Li
Author-X-Name-First: Yingqi
Author-X-Name-Last: Li
Author-Name: Steven Xiaofan Zheng
Author-X-Name-First: Steven Xiaofan
Author-X-Name-Last: Zheng
Title: Insider Selling and IPO Price Premium
Abstract: 
 We examine insider selling for initial public offering (IPO) firms using a sample of 1868 IPOs between 1988 and 2012. We find that overvalued IPOs have higher probability of offering secondary shares, higher proportion of secondary shares offered, and more upward revision in the total number of shares offered. They also have higher probability of insider sale in the open market both before and after lockup expiration. The size of insider sale in the open market also increases with the degree of overvaluation. The results are consistent with the hypothesis that IPO insiders try to sell their shares opportunistically into overvalued markets.
Journal: Emerging Markets Finance and Trade
Pages: 3500-3518
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1435416
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1435416
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Template-Type: ReDIF-Article 1.0
Author-Name: Binlei Gong
Author-X-Name-First: Binlei
Author-X-Name-Last: Gong
Title: The Impact of Public Expenditure and International Trade on Agricultural Productivity in China
Abstract: 
 The “industry nurturing agriculture” reforms and World Trade Organization accession led to dramatic growth in public expenditure and international trade in China’s agricultural sector. This article aims to estimate the effects of public expenditure and trade on agricultural productivity in China for 2004–2015. A semi-parametric production function with shape constraints is introduced to derive more accurate productivity before the productivity determinants are analyzed with an emphasis on public expenditure and trade. The empirical result shows that public expenditure and exports can effectively improve agricultural productivity, while imports have no significant effects. Policy implications are discussed in the context of supply-side reforms.
Journal: Emerging Markets Finance and Trade
Pages: 3438-3453
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1437542
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1437542
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Template-Type: ReDIF-Article 1.0
Author-Name:  Abdullah
Author-X-Name-First: 
Author-X-Name-Last: Abdullah
Author-Name: Jia’nan Zhou
Author-X-Name-First: Jia’nan
Author-X-Name-Last: Zhou
Author-Name: Muhammad Hashim Shah
Author-X-Name-First: Muhammad Hashim
Author-X-Name-Last: Shah
Title: Performance of Cross Listed Dual-Class Firms: Evidence from Chinese Firms Cross Listed on US Exchanges
Abstract: 
 We compare operating and market performance of Chinese single- and dual-class firms cross listed on US exchanges. We find evidence in line with researchers who argue that a dual-class structure allows insiders to invest in long-term value-enhancing projects. We find that dual-class firms underperform prior to their initial public offering (IPO) and then improve and have better operating performance than single-class firms in the second year after IPO. We find that dual-class firms also have better market performance than single-class firms beginning in the initial year, which is contrary to the finding in most other studies. The reason for this might be that firms that list on US exchanges show a credible commitment to shareholder rights.
Journal: Emerging Markets Finance and Trade
Pages: 3411-3425
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1442717
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1442717
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Template-Type: ReDIF-Article 1.0
Author-Name: Jing Zhou
Author-X-Name-First: Jing
Author-X-Name-Last: Zhou
Author-Name: Tianhua Xiao
Author-X-Name-First: Tianhua
Author-X-Name-Last: Xiao
Title: Analyzing Determinants of Household Financial Decision-Making: Household Stock Investment in China
Abstract: 
 This article studies the effects of factors such as income gaps within couples on their division of financial decision-making. Using unique data obtained from the China Household Finance Survey (CHFS), we find that family financial decision-making is dominated by husbands, if they work in financial industries. Moreover, the larger the gap between his income and his wife’s, the more likely the husband is to make decisions on household financial matters. Lastly, our result rejects Hypothesis 2, suggesting that Chinese men tend to hold decision-making power initially, while their wives tend to hold this power as they age.
Journal: Emerging Markets Finance and Trade
Pages: 3385-3400
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1474736
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1474736
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:15:p:3385-3400




Template-Type: ReDIF-Article 1.0
Author-Name: Yushi Jiang
Author-X-Name-First: Yushi
Author-X-Name-Last: Jiang
Author-Name: Luo Xiao
Author-X-Name-First: Luo
Author-X-Name-Last: Xiao
Author-Name: Tariq Jalees
Author-X-Name-First: Tariq
Author-X-Name-Last: Jalees
Author-Name: Mishal Hasnain Naqvi
Author-X-Name-First: Mishal Hasnain
Author-X-Name-Last: Naqvi
Author-Name: Syed Imran Zaman
Author-X-Name-First: Syed Imran
Author-X-Name-Last: Zaman
Title: Moral and Ethical Antecedents of Attitude Toward Counterfeit Luxury Products: Evidence from Pakistan
Abstract: 
 Counterfeiting a universal problem is influencing marketers and consumers across the world. Despite its severity, earlier researchers have not paid much attention to it especially in the perspective of moral and ethical aspects. Researchers generally have established the influence of ethical/moral aspects along with social-personal factors on attitude toward counterfeiting luxury products (CLPs). They have not entirely explored the influence of moral aspects on CLPs. Thus, the aim of this study is to ascertain the influence of ethical issues on attitude toward CLPs in the context of theory of planned behavior and theory of reasoned action.
Journal: Emerging Markets Finance and Trade
Pages: 3519-3538
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1480365
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1480365
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Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Ali Chandio
Author-X-Name-First: Abbas Ali
Author-X-Name-Last: Chandio
Author-Name: Yuansheng Jiang
Author-X-Name-First: Yuansheng
Author-X-Name-Last: Jiang
Title: Determinants of Credit Constraints: Evidence from Sindh, Pakistan
Abstract: 
 This article investigates the determinants of credit constraints: evidence from Sindh, Pakistan. Cross-sectional farm-level data is collected during November and December 2016. A sample of 180 farm households is selected for interviews by using a multistage, random sampling technique. This study employed a probit regression model, frequency counts, and percentages to analyze the data. Access to formal agricultural credit is relatively low in Sindh province of Pakistan, the findings of the study show that the major constraints comprise distance to the formal credit sources, lending procedure, time lag, and interest rate whereas land ownership has a negative association and reduces the constraints to access formal credit. The findings of this study also show that for efficient allocation of resources, institutional sources of credit preferred to disburse agricultural credits toward educated and young age farmers as they are more inclined to adopt new farm technology for better farm production.
Journal: Emerging Markets Finance and Trade
Pages: 3401-3410
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1481743
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1481743
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuhuang Shang
Author-X-Name-First: Yuhuang
Author-X-Name-Last: Shang
Author-Name: Chunhui Zhu
Author-X-Name-First: Chunhui
Author-X-Name-Last: Zhu
Author-Name: Shaoyu Li
Author-X-Name-First: Shaoyu
Author-X-Name-Last: Li
Title: Estimation and Explanation of Time-Varying Weights in Chinese CPI
Abstract: 
 The time-varying weights in the Chinese consumer price index (CPI) are estimated using a time-varying coefficient model, which is shown to be useful for testing the CPI’s “weighting biases” and adjustment problem. The empirical results show that China’s CPI has “weighting biases,” in which the time-varying intercept reveals negative adjustment of the CPI. This means that people pay less for food and more for medical care, education, and housing. By comparing the weights between urban CPI and rural CPI, the extended examination suggests a widening income gap between urban and rural households.
Journal: Emerging Markets Finance and Trade
Pages: 3426-3437
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1485095
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1485095
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:15:p:3426-3437




Template-Type: ReDIF-Article 1.0
Author-Name: Haiyue Liu
Author-X-Name-First: Haiyue
Author-X-Name-Last: Liu
Author-Name: Xiaolan Chen
Author-X-Name-First: Xiaolan
Author-X-Name-Last: Chen
Author-Name: Ying Wu
Author-X-Name-First: Ying
Author-X-Name-Last: Wu
Title: Political Environment and Chinese OFDI Under RMB Appreciation: A Panel Data Analysis
Abstract: 
 We examine the role of political environment (PE) in determining Chinese multinational corporations’ (MNCs) investment decisions considering the RenMinBi (RMB) exchange rate (ER) movement. System generalized method of moments, feasible generalized least squares, and fixed effect estimations are employed to conduct a panel data analysis of 92 countries for the period of 2003–2015. Our empirical results reveal that Chinese outward foreign direct investment (OFDI) responds negatively to ER risk and political risks individually. After introducing the joint effect of PE and ER movement, the results suggest that Chinese OFDI’s risk preference to PE is reversed when RMB is appreciating. We argue that Chinese firms are still risk-avert when considering investing abroad. The empirical result shed light on better understating of Chinese OFDI patterns and motivations.
Journal: Emerging Markets Finance and Trade
Pages: 3470-3484
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1504208
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1504208
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenhao Tan
Author-X-Name-First: Wenhao
Author-X-Name-Last: Tan
Author-Name: Shuangli Yu
Author-X-Name-First: Shuangli
Author-X-Name-Last: Yu
Author-Name: Zhenpeng Ma
Author-X-Name-First: Zhenpeng
Author-X-Name-Last: Ma
Title: The Impact of Business Groups on Investment Efficiency: Does Capital Allocation Matter?
Abstract: 
 Using data on internal capital markets in China, this paper examines the influence of internal capital markets on investment efficiency in business groups. The empirical results show that using internal capital markets can alleviate over invests within business groups. In addition, it can alleviate deficiencies in R&amp;D investment in business groups effectively. The impact of internal capital markets on investment efficiency varies between state-owned enterprises and private enterprises. At private enterprises, internal capital market operations significantly alleviate overinvestment and promote R&amp;D investment. However, at state-owned enterprises, internal capital market operations increase overinvestment and reduce investment in R&amp;D.
Journal: Emerging Markets Finance and Trade
Pages: 3539-3551
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1509791
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1509791
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board EOV
Journal: Emerging Markets Finance and Trade
Pages: 3577-3577
Issue: 15
Volume: 54
Year: 2018
Month: 12
X-DOI: 10.1080/1540496X.2018.1516127
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1516127
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Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Ferreira Frascaroli
Author-X-Name-First: Bruno Ferreira
Author-X-Name-Last: Frascaroli
Author-Name: Wellington Charles Lacerda Nobrega
Author-X-Name-First: Wellington Charles Lacerda
Author-X-Name-Last: Nobrega
Title: Inflation Targeting and Inflation Risk in Latin America
Abstract: 
 We analyzed the effects of inflation targeting (IT) implementation and functioning through the reaction function of monetary authorities from Latin American (LA) inflation targeters (ITers), e.g. Brazil, Chile, Colombia, Mexico, and Peru. We adapted the Value-at-Risk (VaR) and CoVaR to the Inflation-at-Risk ($$IaR$$IaR) and Co-Inflation-at-Risk ($$CoIaR$$CoIaR), respectively, to estimate the inflation at the extremes of its probability density functions. The results suggested that the IT was able to reduce inflation risk for all ITers. Chile and Peru are further ahead in terms of inflationary control, whereas in Brazil, it is more difficult. We propose the IaR and CoIaR as additional risk-management tools.
Journal: Emerging Markets Finance and Trade
Pages: 2389-2408
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1514297
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1514297
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Template-Type: ReDIF-Article 1.0
Author-Name: Yanjian Zhu
Author-X-Name-First: Yanjian
Author-X-Name-Last: Zhu
Title: Banks’ Governance and Innovation: Evidence from the Listed Firms in China
Abstract: 
 The article investigates the relationship between banks, agency costs, and innovation ability of listed firms. The role of banks in affecting innovation is a very important topic especially in China where banks play more important roles than equity markets. We find that banks providing short-term funds to listed non-high-tech firms dampen their innovation ability significantly. However, the relationship between short-term loans and innovation ability in high-tech firms is insignificant. The effects of short-term loans on innovation ability are significantly different between high-tech and non-high-tech firms. Further examination shows that high-tech firms with more short-term bank loans have significantly less abnormal management expenses than non-high-tech firms in the next year. The reduced abnormal management expenses in the next year significantly enhance the innovation ability in the year after next.
Journal: Emerging Markets Finance and Trade
Pages: 2409-2424
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1483229
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1483229
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Template-Type: ReDIF-Article 1.0
Author-Name: Zongrun Wang
Author-X-Name-First: Zongrun
Author-X-Name-Last: Wang
Author-Name: Nan Xie
Author-X-Name-First: Nan
Author-X-Name-Last: Xie
Author-Name: Yanbo Jin
Author-X-Name-First: Yanbo
Author-X-Name-Last: Jin
Title: Do Loan Loss Provisions Affect the Credit Fluctuations in China’s Banking System?
Abstract: 
 The global financial crisis of 2008 sparked new ideas on pro-cyclical transmission in the financial system. The accounting treatment method of loan loss provisions differs between the accounting standards that banks use and the supervisory rules of banks. This fundamental difference has attracted wide attention from academics and regulators. This article studies whether bank loan loss provisions affect credit fluctuation in China’s banking system. We divide loan loss provisions into discretionary and non-discretionary loan loss provisions. We find that non-discretionary loan loss provisions result in greater credit fluctuation, whereas discretionary loan loss provisions have no significant impact on credit fluctuation. Further evidence shows that the relation between non-discretionary loan loss provisions and credit fluctuations does not vary among different types of banks. Overall, our study shows that non-discretionary loan loss provisions can increase credit fluctuation and therefore strengthen banks’ pro-cyclical behavior.
Journal: Emerging Markets Finance and Trade
Pages: 2425-2436
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1553159
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1553159
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Template-Type: ReDIF-Article 1.0
Author-Name: Feiyan Wang
Author-X-Name-First: Feiyan
Author-X-Name-Last: Wang
Author-Name: Guanghe Ran
Author-X-Name-First: Guanghe
Author-X-Name-Last: Ran
Title: Excessive Financial Support, Real Estate Development and Macroeconomic Growth: Evidence from China
Abstract: 
 Using monthly panel data for China’s 30 provinces from 2007 to 2017, this article analyzes how level of financial support affects the interplay between real estate development and macroeconomic growth. Based on a threshold model, the results suggest that housing price increases substantially impede economic growth, but there is no significant threshold effect for the sample as a whole. On investigating regional cross-sectional variations, we found that local economic situation clearly impacts on this effect, with significant threshold effects detected in subsamples. While housing price may have positive influences on economic growth in the mid-west subgroup with appropriate financial support, more developed regions returned contrary results.
Journal: Emerging Markets Finance and Trade
Pages: 2437-2447
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1555463
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1555463
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Template-Type: ReDIF-Article 1.0
Author-Name: Chih-shun Hsu
Author-X-Name-First: Chih-shun
Author-X-Name-Last: Hsu
Author-Name: Wei-hung Lai
Author-X-Name-First: Wei-hung
Author-X-Name-Last: Lai
Author-Name: Sin-hui Yen
Author-X-Name-First: Sin-hui
Author-X-Name-Last: Yen
Title: Boardroom Diversity and Operating Performance: The Moderating Effect of Strategic Change
Abstract: 
 This study aims to investigate the effect of boardroom diversity on Chinese listed firms’ operating performance. Incorporating gender, age, tenure, and professional background of board member’s attributes into a composite diversity index, the results show that boardroom diversity positively affects operating performance. However, when taking strategic change into consideration, the results indicate that the firms with larger strategic change tend to have a negative correlation between boardroom diversity and operating performance, whereas the correlation is positive if firms with smaller strategic. This study expects to fill the literature gap by extending the understanding of boardroom-diversity-performance relationship in the emerging context.
Journal: Emerging Markets Finance and Trade
Pages: 2448-2472
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1519414
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1519414
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:11:p:2448-2472




Template-Type: ReDIF-Article 1.0
Author-Name: Mahmoud Arayssi
Author-X-Name-First: Mahmoud
Author-X-Name-Last: Arayssi
Author-Name: Ali Fakih
Author-X-Name-First: Ali
Author-X-Name-Last: Fakih
Author-Name: Mohamad Kassem
Author-X-Name-First: Mohamad
Author-X-Name-Last: Kassem
Title: Government and Financial Institutional Determinants of Development in MENA Countries
Abstract: 
 This article aims to examine the causal impact of the Arab Spring (AS) and government institutions on the finance–growth nexus. The empirical analysis is implemented for extensive firm-level panel data combined with national data covering macroeconomic and institutional factors for the period 2005–2014, starting 6 years before and continuing after the AS. Using Difference-in-Difference method, we analyze the effect of the AS. Evidence points to financial development as a strong positive contributor to growth. The analysis also indicates that the AS dampens growth. These results seem to suggest that political instability adversely affects growth; nevertheless, a well-functioning financial system is a necessary but not a sufficient condition to enhance growth. Therefore, policies aiming at improving the efficiency and the operation of institutions such as a country’s legal system, citizen’s participation in selecting government, freedom of expression, and the stage of financial development should persist over an extended period of time, in order to bear fruition and achieve a significant success in boosting economic growth and reducing poverty.
Journal: Emerging Markets Finance and Trade
Pages: 2473-2496
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1507907
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1507907
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Template-Type: ReDIF-Article 1.0
Author-Name: Bo Zhu
Author-X-Name-First: Bo
Author-X-Name-Last: Zhu
Author-Name: Li Li
Author-X-Name-First: Li
Author-X-Name-Last: Li
Author-Name: Yao Zhou
Author-X-Name-First: Yao
Author-X-Name-Last: Zhou
Author-Name: Wenhua Yang
Author-X-Name-First: Wenhua
Author-X-Name-Last: Yang
Title: How Does Information Disclosure Affect Bank Systemic Risk in the Presence of a Deposit Insurance System?
Abstract: 
 This article establishes a dynamic game with incomplete information to theoretically analyze the influence mechanism of information disclosure on systemic risk in the presence of a deposit insurance system. To verify the mechanism, we use panel data on 247 global banks in 41 countries during the period 2006 to 2015 in an empirical analysis. Our article finds that a high degree of information disclosure can reduce deposit insurance premiums and weaken the negative incentive from a bailout by regulatory authorities. Moreover, the effect of deposit insurance on financial stability is not apparent, but the synergistic effect of deposit insurance and information disclosure reduces bank systemic risk. Furthermore, different deposit insurance designs affect bank behavior, so it is crucial for bank supervisors to create proper deposit insurance systems, which are helpful in strengthening market discipline and preventing moral hazard thus contributing to a stable financial environment. Therefore, under the deposit insurance system, regulatory authorities should strive to improve the standard of information disclosure to ensure systemic stability.
Journal: Emerging Markets Finance and Trade
Pages: 2497-2522
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1570127
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1570127
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Template-Type: ReDIF-Article 1.0
Author-Name: Nana Chai
Author-X-Name-First: Nana
Author-X-Name-Last: Chai
Author-Name: Bi Wu
Author-X-Name-First: Bi
Author-X-Name-Last: Wu
Author-Name: Weiwei Yang
Author-X-Name-First: Weiwei
Author-X-Name-Last: Yang
Author-Name: Baofeng Shi
Author-X-Name-First: Baofeng
Author-X-Name-Last: Shi
Title: A Multicriteria Approach for Modeling Small Enterprise Credit Rating: Evidence from China
Abstract: 
 As the engine of China’s economy, small enterprises have been the central to the country’s economic development. However, given the characteristics of the small enterprises loan (i.e., short borrowing period, large volume, small amount and incomplete information), it is extremely challenging for financial institutions to assess their creditworthiness. Thus, it seriously delays and restricts the financing access for small enterprises. In an attempt to relieve the financing difficulty of small enterprises, this article makes use of 687 small wholesale and retail enterprises in a regional commercial bank in China, to establish a credit rating indicator system composed of 17 indicators by using both partial correlation analysis and probit regression. It then utilizes TOPSIS together with fuzzy C-means to score the credit ratings of our sample of small enterprises. With the dual test of default discrimination and ROC curve, the prediction accuracy of the established indicator system has reached 80.10% and 0.917, respectively, indicating the robustness and validity of our credit rating system.
Journal: Emerging Markets Finance and Trade
Pages: 2523-2543
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1577237
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1577237
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Template-Type: ReDIF-Article 1.0
Author-Name: Saleh Shahriar
Author-X-Name-First: Saleh
Author-X-Name-Last: Shahriar
Author-Name: Lu Qian
Author-X-Name-First: Lu
Author-X-Name-Last: Qian
Author-Name: Sokvibol Kea
Author-X-Name-First: Sokvibol
Author-X-Name-Last: Kea
Title: Determinants of Exports in China’s Meat Industry: A Gravity Model Analysis
Abstract: 
 What are the major determinants of China’s meat exports flows? In addressing this question, we propose a commodity-specific gravity model. This study has employed a unique dataset of 20 years (1997–2016) for China’s pork exports flows to its 31 regular trading partners to estimate the commodity-specific gravity model. The PPML and Heckman selection models are simultaneously estimated to confirm the robustness of the findings. The results reveal that GDP, exchange rate, common language, and country land area are the significant factors affecting the Chinese pork exports flows. Moreover, China’s WTO membership, the ‘Belt & Road’ Initiative, and the common borders have a positive significant impact on its exports of pork.
Journal: Emerging Markets Finance and Trade
Pages: 2544-2565
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1578647
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1578647
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobo Shen
Author-X-Name-First: Xiaobo
Author-X-Name-Last: Shen
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Wei Wu
Author-X-Name-First: Wei
Author-X-Name-Last: Wu
Title: R&D Efforts, Total Factor Productivity, and the Energy Intensity in China
Abstract: 
 This paper first measures the levels and growths of regional TFP in China using a panel dataset of China’s 30 provinces from 1978–2014. It then estimates the effects of R&D on regional TFP and its growth further explores the impact of TFP on China’s energy intensity. We find no evidence that R&D has innovation and spillover effects on TFP and its growth in China’s provinces. Nevertheless, R&D can promote growth in regional TFP by helping to absorb new technologies embodied in FDI and foreign trade. The results indicate that TFP plays a significant role in the decline of China’s energy intensity.
Journal: Emerging Markets Finance and Trade
Pages: 2566-2588
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1579709
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1579709
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobing Huang
Author-X-Name-First: Xiaobing
Author-X-Name-Last: Huang
Author-Name: Xiaolian Liu
Author-X-Name-First: Xiaolian
Author-X-Name-Last: Liu
Title: The Impact of Environmental Regulation on Productivity and Exports: A Firm-Level Evidence from China
Abstract: 
 This paper investigates the influence of environmental regulation on firm performance, as captured by firm productivity and firm exports. We first construct a Melitz-style model investigating the causal effects of environmental regulation on firm productivity and firm exports, and then test the theoretical predictions using firm-level data over the period 2005–2009. The theoretical and empirical investigation suggests that environmental regulation promotes firm productivity slightly with a lagged effect, has a harmful impact on firm exports, and has a U-shaped relationship with firm exports. China is to the far left of the inflection point, but this U-shaped relationship is not present at firms in clean industries and clean regions.
Journal: Emerging Markets Finance and Trade
Pages: 2589-2608
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1584556
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1584556
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Template-Type: ReDIF-Article 1.0
Author-Name: Jin Sun
Author-X-Name-First: Jin
Author-X-Name-Last: Sun
Author-Name: Jack W. Hou
Author-X-Name-First: Jack W.
Author-X-Name-Last: Hou
Title: Monetary and Financial Cooperation Between China and the One Belt One Road Countries
Abstract: 
 Based on the theory of optimal currency area (OCA), we calculate the OCA index between China and the OBOR partners with the expressed objective of identifying which partners exhibit monetary and financial compatibilities, and hence present the best potential in terms of cost and benefits. Our findings suggest that among South East Asia region, Malaysia exhibits the highest compatibility and profit potential, followed by Thailand and Vietnam. For the East European area, Poland and Croatia show the best potential in terms of monetary and financial cooperation; with the Czech Republic as close third. Based on our computation, currently Central Asia and the Middle East do not possess the condition or potential for beneficial financial and monetary collaboration.
Journal: Emerging Markets Finance and Trade
Pages: 2609-2627
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1540976
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1540976
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Template-Type: ReDIF-Article 1.0
Author-Name: Dongyang Zhang
Author-X-Name-First: Dongyang
Author-X-Name-Last: Zhang
Author-Name: Gang Xu
Author-X-Name-First: Gang
Author-X-Name-Last: Xu
Title: Does Government Subsidy Affect Firm Survival? Evidence from Chinese Manufacturing Firms
Abstract: 
 This article applies a matching approach to deal with the selection bias and use the complementary log-log model to analyze the impacts of subsidy on Chinese manufacturing firms’ survival from 1998 to 2007. Our empirical results show that government subsidies significantly decrease the likelihood of firm exit. However, the effect decreases as the level of subsidies increases for private and foreign firms, but displays a nonlinear relationship across subsidy levels for SOEs. We also show the effects vary across the levels of institutional quality measured by the prevalence of rent seeking and government intervention. Further results suggest that the potential channels include increased investment in intangible and fixed assets as well as enhanced profitability.
Journal: Emerging Markets Finance and Trade
Pages: 2628-2651
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2018.1530655
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530655
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Template-Type: ReDIF-Article 1.0
Author-Name: Yang Wang
Author-X-Name-First: Yang
Author-X-Name-Last: Wang
Author-Name: Qunxi Kong
Author-X-Name-First: Qunxi
Author-X-Name-Last: Kong
Title: Financial Constraints, Institutions, and Firm Productivity: Evidence from China
Abstract: 
 This paper investigates whether Chinese firms utilize trade credit as an alternative financial intermediation to alleviate financial constraints, and whether trade credit matters for firm productivity. The results show that trade credit significantly affects firm productivity in private and foreign-owned firms but not state-owned enterprises, indicating that trade credit is an efficient financial intermediation for non-state firms. Second, trade credit better helps firms that have severe financial constraints grow. Third, the mechanism of trade credit and TFP is by the substitution effect of cash flow, the smoothing effect of working capital and the drive of innovation. Finally, the impact of trade credit on productivity is driven by the regions under a more institutionally developed environment.
Journal: Emerging Markets Finance and Trade
Pages: 2652-2667
Issue: 11
Volume: 55
Year: 2019
Month: 9
X-DOI: 10.1080/1540496X.2019.1577236
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1577236
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:11:p:2652-2667




Template-Type: ReDIF-Article 1.0
Author-Name: Deniz Baglan
Author-X-Name-First: Deniz
Author-X-Name-Last: Baglan
Author-Name: Hakan Yilmazkuday
Author-X-Name-First: Hakan
Author-X-Name-Last: Yilmazkuday
Title: Financial Health and the Intensive Margin of Trade
Abstract: 
 Using data on 2380 firms from nine emerging countries, this paper shows that there is a positive and significant relationship between financial health and the intensive margin of trade. The magnitude of this positive relationship is shown to depend on several firm characteristics, where the effects of financial health on firm-level exports are larger for firms with higher levels of export, bigger size (measured by assets), higher productivity (measured by value added per worker), and moderate levels of financial health (measured by cash flow over total assets). The results are robust to the consideration of foreign ownership and country characteristics as well as industry and time fixed effects.
Journal: Emerging Markets Finance and Trade
Pages: 1304-1319
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2016.1274258
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1274258
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Template-Type: ReDIF-Article 1.0
Author-Name: Yusuf Jaffar
Author-X-Name-First: Yusuf
Author-X-Name-Last: Jaffar
Author-Name: Ginanjar Dewandaru
Author-X-Name-First: Ginanjar
Author-X-Name-Last: Dewandaru
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Exploring Portfolio Diversification Opportunities Through Venture Capital Financing: Evidence from MGARCH-DCC, Markov Switching, and Wavelet Approaches
Abstract: 
 Islamic financial institutions are being pressurized by critics to offer profit and loss sharing (PLS) financing, such as venture capital (VC) financing, for the purpose of entrepreneurial development aligned to the principle of equity risk sharing. Our study aims to link PLS investments with portfolio optimization opportunities for the Islamic asset managers. Using portfolio analysis with dynamic conditional correlation, Markov switching, and maximal overlap discrete wavelet transformation, our findings tend to indicate that there is indeed a portfolio optimization opportunity in investment universe for the fund managers who invested in PLS investments in the context of VC asset class over the long run.
Journal: Emerging Markets Finance and Trade
Pages: 1320-1336
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2016.1277420
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1277420
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Template-Type: ReDIF-Article 1.0
Author-Name: Tatiana Danilenko
Author-X-Name-First: Tatiana
Author-X-Name-Last: Danilenko
Author-Name: Olga Demidova
Author-X-Name-First: Olga
Author-X-Name-Last: Demidova
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: Unemployment Clubs in Russian Regions
Abstract: 
 In this article, we empirically investigate regional unemployment in Russia. We first detect the existence of two unemployment clubs, that is, regions with high (low) unemployment surrounded by regions with high (low) unemployment, and a group that comprises the remaining regions. We then apply a specially designed class of spatial-econometric models to regional data 2005–2012, using difference GMM, and we obtain partial confirmation of our two main hypotheses: (i) spatial effects for the high-high and low-low clubs regions differ significantly; and (ii) the determinants of unemployment of the two clubs significantly differ with respect to those of the remaining regions. Our results have key implications for the national- and regional-level policies.
Journal: Emerging Markets Finance and Trade
Pages: 1337-1357
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1281799
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1281799
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Template-Type: ReDIF-Article 1.0
Author-Name: Yang Shi
Author-X-Name-First: Yang
Author-X-Name-Last: Shi
Author-Name: Paul Conroy
Author-X-Name-First: Paul
Author-X-Name-Last: Conroy
Author-Name: Mancang Wang
Author-X-Name-First: Mancang
Author-X-Name-Last: Wang
Author-Name: Chenlu Dang
Author-X-Name-First: Chenlu
Author-X-Name-Last: Dang
Title: The Investment Performance of Art in Mainland China
Abstract: 
 This article investigates price determinants and investment performance for paintings from mainland China using hedonic regression analysis applied to a new dataset from over 190,000 auction transactions. The price index obtained indicates that from 2000 to 2015, the average annual appreciation in value of Chinese art was 8.42% in real USD. Compared with American artwork, global artwork, and traditional financial assets, Chinese art possesses a comparatively better risk and return profile and a low correlation with other assets. Finally, regarding the masterpiece effect, the conclusion is that highly priced Chinese art does not underperform the market.
Journal: Emerging Markets Finance and Trade
Pages: 1358-1374
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1281800
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1281800
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:6:p:1358-1374




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Otero González
Author-X-Name-First: Luis
Author-X-Name-Last: Otero González
Author-Name: Sami Othman Ashour
Author-X-Name-First: Sami Othman
Author-X-Name-Last: Ashour
Author-Name: Jose Antonio Redondo-López
Author-X-Name-First: Jose Antonio
Author-X-Name-Last: Redondo-López
Author-Name: Luis Ignacio Rodríguez Gil
Author-X-Name-First: Luis Ignacio
Author-X-Name-Last: Rodríguez Gil
Title: Country Risk, Regulation, and Liquidity Transformation in Palestine and Neighboring Countries
Abstract: 
 This study analyzes the impact of economic, financial, and political instability on the liquidity transformation of banks operating in unstable environments. Our main goal is to assess the relationship between overall risk in a country and liquidity transformation. With this goal in mind, we use a sample of five Middle Eastern countries during the period 2005–2010. Our results showed that the high-risk environment has a significant and negative impact on both liquidity transformation and the extension of credit. In addition, we conclude that high capital requirements may reduce further lending, while imposing liquidity requirements seems to be a better strategy for enhancing liquidity transformation.
Journal: Emerging Markets Finance and Trade
Pages: 1375-1390
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1285224
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1285224
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:6:p:1375-1390




Template-Type: ReDIF-Article 1.0
Author-Name: Minshik Shin
Author-X-Name-First: Minshik
Author-X-Name-Last: Shin
Author-Name: Sooeun Kim
Author-X-Name-First: Sooeun
Author-X-Name-Last: Kim
Author-Name: Jongho Shin
Author-X-Name-First: Jongho
Author-X-Name-Last: Shin
Author-Name: Jaeik Lee
Author-X-Name-First: Jaeik
Author-X-Name-Last: Lee
Title: Labor Union Effect on Corporate Cash Holdings and Their Marginal Value
Abstract: 
 By using panel data from Korean listed firms, we find that unionized firms strategically hold less cash to enhance their bargaining power against labor unions. We also find that unionized firms are likely to reduce the marginal value of their cash holdings, thereby decreasing shareholder value from the agency theory perspective. This finding complements the agency theory argument that managers tend to waste corporate resources by hoarding cash, particularly when faced with increased information asymmetry and financial constraints. Overall, our results suggest that information-related financial constraints and agency problems are likely to co-exist in unionized firms.
Journal: Emerging Markets Finance and Trade
Pages: 1391-1413
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1289085
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1289085
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:6:p:1391-1413




Template-Type: ReDIF-Article 1.0
Author-Name: Young Bin Ahn
Author-X-Name-First: Young Bin
Author-X-Name-Last: Ahn
Title: Directional Accuracy of Urban Consumers’ Inflation Forecasts in China
Abstract: 
 We evaluate the directional accuracy of inflation forecasts based on the survey data of urban savings account holders in China. By using a new market-timing test, we show that the urban consumers’ expectations of inflation are not a useful predictor of the overall consumer price index (CPI) and the urban household CPI (U-CPI) in China. However, after our in-depth analysis using the inflation rate of each category in the U-CPI basket, we find that the consumers’ forecasts are useful in predicting the movement of the residence component in the U-CPI basket since the third quarter of 2009.
Journal: Emerging Markets Finance and Trade
Pages: 1414-1424
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1297933
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1297933
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Template-Type: ReDIF-Article 1.0
Author-Name: Puritud Inya
Author-X-Name-First: Puritud
Author-X-Name-Last: Inya
Author-Name: Jim Psaros
Author-X-Name-First: Jim
Author-X-Name-Last: Psaros
Author-Name: Michael Seamer
Author-X-Name-First: Michael
Author-X-Name-Last: Seamer
Title: The Relevance of Western Corporate Governance in Mitigating Management Misconduct in Thailand
Abstract: 
 This article provides empirical evidence on the relevance of structures central to Western models of corporate governance in mitigating management misconduct in Thailand. We find no evidence supporting the effectiveness of Western-based corporate governance structures such as board independence, audit committee effectiveness, and separating the roles of CEO and Board Chair in limiting management misconduct. However, we do find evidence supportive of independent directors with more experience and longer tenure, the presence of institutional ownership, and concentrated controlling ownership in limiting management misconduct. This provides some support for the validity of resource dependency theory in an emerging economy setting.
Journal: Emerging Markets Finance and Trade
Pages: 1425-1441
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1307102
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1307102
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Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Amirhossein Mohammadian
Author-X-Name-First: Amirhossein
Author-X-Name-Last: Mohammadian
Title: Asymmetry Effects of Exchange Rate Changes on Domestic Production in Emerging Countries
Abstract: 
 Previous studies that tried to assess the impact of exchange rate changes on domestic production of emerging economies assumed that the effects are symmetric and used a linear model to provide mixed results. In this article, we try to determine whether exchange rate changes could have asymmetric effects which amounts to using a nonlinear model. We find that the nonlinear model performs much better than the linear model and yields results that support asymmetry effects of exchange rate changes on domestic production in many of the countries in our sample, both in the short run and in the long run.
Journal: Emerging Markets Finance and Trade
Pages: 1442-1459
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1307730
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1307730
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Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Abiad
Author-X-Name-First: Abdul
Author-X-Name-Last: Abiad
Author-Name: Margarita Debuque-Gonzales
Author-X-Name-First: Margarita
Author-X-Name-Last: Debuque-Gonzales
Author-Name: Andrea Loren Sy
Author-X-Name-First: Andrea Loren
Author-X-Name-Last: Sy
Title: The Evolution and Impact of Infrastructure in Middle-Income Countries: Anything Special?
Abstract: 
 We examine the evolution of infrastructure, and the impact of infrastructure investment, in middle-income countries (MICs). We document how different types of infrastructure stocks, as well as infrastructure investment, vary with the level of development and growth performance. We then use the two-stage approach of Corsetti, Meier, and Müller (2012) to identify exogenous public investment shocks and investigate the macroeconomic impact of these shocks. We find that the provision of infrastructure varies across development stages; there is a focus on basic infrastructure, such as transport, water, and sanitation, during early stages, and an emphasis on “advanced” infrastructure, such as power and especially information and communication technology, in later stages. Better-performing MICs tend to invest more on infrastructure. They also have more information and communication technology infrastructure. Finally, we find a more significant and sustained impact of exogenous public investment shocks on output in MICs than in low-income countries.
Journal: Emerging Markets Finance and Trade
Pages: 1239-1263
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1421535
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1421535
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Template-Type: ReDIF-Article 1.0
Author-Name: Gemma Estrada
Author-X-Name-First: Gemma
Author-X-Name-Last: Estrada
Author-Name: Xuehui Han
Author-X-Name-First: Xuehui
Author-X-Name-Last: Han
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Shu Tian
Author-X-Name-First: Shu
Author-X-Name-Last: Tian
Title: Asia’s Middle-Income Challenge: An Overview
Abstract: 
 Developing Asia has undergone a dramatic shift over the past five decades from a region of mainly low-income economies toward one that is largely middle income. The region faces the challenge of moving further to high income particularly because, as this study shows, it takes longer for economies to move from upper middle to high income than shifting from lower middle to upper middle income. The study finds that developing Asian economies transformed more quickly than the rest of the world, whether the transition is from lower middle to upper middle income or from upper middle to high income.
Journal: Emerging Markets Finance and Trade
Pages: 1208-1224
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1421939
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1421939
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Template-Type: ReDIF-Article 1.0
Author-Name: Jungsuk Kim
Author-X-Name-First: Jungsuk
Author-X-Name-Last: Kim
Author-Name: Jungsoo Park
Author-X-Name-First: Jungsoo
Author-X-Name-Last: Park
Title: The Role of Total Factor Productivity Growth in Middle-Income Countries
Abstract: 
 We examine the importance of total factor productivity (TFP) growth in middle-income countries (MICs) based on cross-country panel data for the period of 1975–2014. We find that TFP growth contributed significantly to a country’s upward transition from middle-income to high-income country group. The TFP growth model reveals that the catch-up effect, human capital, smaller population, weak currency, and research and development growth are significant sources of TFP growth. We do not find a systematic difference in the TFP growth models for MICs. In analyzing the role of factors influencing TFP growth at different income stages, strengthening innovative activities and building innovative capacities are important in overcoming the challenges that MICs face when transitioning to the high-income group. Governments of upper MICs need to initiate reform to motivate innovation by optimizing national R&amp;D systems, and redesigning the educational system to target promoting innovation.
Journal: Emerging Markets Finance and Trade
Pages: 1264-1284
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1422244
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1422244
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Template-Type: ReDIF-Article 1.0
Author-Name: Michael R.M. Abrigo
Author-X-Name-First: Michael R.M.
Author-X-Name-Last: Abrigo
Author-Name: Sang-Hyop Lee
Author-X-Name-First: Sang-Hyop
Author-X-Name-Last: Lee
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Title: Human Capital Spending, Inequality, and Growth in Middle-Income Asia
Abstract: 
 Asia’s rapid population aging fortifies the case for strengthening human capital investments. Further, the experience of the newly industrialized economies suggests that human capital investments will be a vital ingredient of the transition from middle income to high income. Those investments can also affect equity and public finances. In this article, we use data from the National Transfer Accounts to empirically analyze the effect of human capital investment in Asian countries on economic growth, inequality, and fiscal balance. Our empirical evidence suggests that human capital investments have a positive effect on labor productivity and, hence, output. The positive effect is stronger for poorer households and, hence, beneficial for equity. We also find that such investments can generate sufficient tax revenues to improve the fiscal balance. Overall, our evidence points to a positive effect of human capital on growth, equity, and fiscal balance in Asia.
Journal: Emerging Markets Finance and Trade
Pages: 1285-1303
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1422721
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1422721
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:6:p:1285-1303




Template-Type: ReDIF-Article 1.0
Author-Name: Joonkyung Ha
Author-X-Name-First: Joonkyung
Author-X-Name-Last: Ha
Author-Name: Sang-Hyop Lee
Author-X-Name-First: Sang-Hyop
Author-X-Name-Last: Lee
Title: Population Aging and the Possibility of a Middle-Income Trap in Asia
Abstract: 
 We present three conditions for a demography-driven middle-income trap and show that many economies in East, South, and Southeast Asia satisfy all of them. The conditions involve (1) the support ratio of workers to consumers has an impact on economic growth, (2) economic development accompanies more investment in human capital and lower fertility due to the quantity–quality trade-off, and (3) a current low level of fertility corresponds to very low support ratios for keeping up with frontier economies in the long run. Panel analysis for 178 countries shows that (1) and (2) are satisfied for Asia with higher elasticity than others. As for (3), we set up a dynamic model for simulations, showing that approximately two-third of Asia’s developing countries have an unsustainable level of support ratios, implying possibility of a middle-income trap due to future demographic headwinds.
Journal: Emerging Markets Finance and Trade
Pages: 1225-1238
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2018.1429263
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1429263
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Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Aizenman
Author-X-Name-First: Joshua
Author-X-Name-Last: Aizenman
Author-Name: Barry Eichengreen
Author-X-Name-First: Barry
Author-X-Name-Last: Eichengreen
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Title: Overcoming the Middle-Income Challenge
Journal: Emerging Markets Finance and Trade
Pages: 1205-1207
Issue: 6
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2018.1451052
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1451052
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Template-Type: ReDIF-Article 1.0
Author-Name: Chengsi Zhang
Author-X-Name-First: Chengsi
Author-X-Name-Last: Zhang
Title: The Effect of Globalization on Inflation in New Emerging Markets
Abstract: 
 We investigate the effect of economic globalization on domestic inflation in twenty-one new emerging economies over the period 1990–2009. The empirical analysis using dynamic panel data models shows that the effect of domestic and global economic slacks on domestic inflation in the new emerging economies has changed significantly since the end of the 1990s. Before the end of the 1990s, the domestic economic slack played a predominant role in driving domestic inflation. After the year 2000, however, the global economic slack played a significant and more important role in affecting domestic inflation. This finding implies that the prescription that central banks should specifically react to developments in global output is justified for the new emerging economies over the most recent decade.
Journal: Emerging Markets Finance and Trade
Pages: 1021-1033
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1039894
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039894
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Template-Type: ReDIF-Article 1.0
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Jianglong Li
Author-X-Name-First: Jianglong
Author-X-Name-Last: Li
Title: The Determinants of Endogenous Oil Price: Considering the Influence from China
Abstract: 
 China’s oil imports have increased significantly and will play a bigger role in the future. We incorporate the “China factor” into oil price. The main findings are (1) long-run trends of oil price are determined by oil supply and demand; emergencies would cause oil price volatility in the short run; (2) macroeconomic effects of oil price increases depend on the underlying factors that drive oil price; (3) China’s oil import, which can only explain 4.6 percent of oil price change, has a relatively small influence on oil price volatility; but (4) China affects the long-run trends of oil price by changing the fundamentals of the oil market, especially after financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 1034-1050
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1041844
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1041844
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Template-Type: ReDIF-Article 1.0
Author-Name: Jaanika Meriküll
Author-X-Name-First: Jaanika
Author-X-Name-Last: Meriküll
Title: Household Borrowing During a Creditless Recovery
Abstract: 
 We investigate the factors behind the borrowing of households during a creditless recovery. We use data from a typical creditless recovery case—Estonia during the aftermath of the global financial crisis. Cross-sectional data on households’ assets, liabilities, income, expectations, and intention to use credit in 2001–10 and 2012 are employed. The results indicate that two-thirds of the sluggish recovery in credit demand can be explained by changes in household endowments such as income reduction and lower income expectations, while one-third remains unexplained and is ascribed to changes in behavioral relations. It is noted that the share of credit-constrained households was very high during the creditless recovery period.
Journal: Emerging Markets Finance and Trade
Pages: 1051-1068
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1048154
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1048154
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Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Introduction: Emerging Stock and Bond Markets: Performance and Volatility
Journal: Emerging Markets Finance and Trade
Pages: 857-858
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061376
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061376
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Template-Type: ReDIF-Article 1.0
Author-Name: Kannan S. Thuraisamy
Author-X-Name-First: Kannan S.
Author-X-Name-Last: Thuraisamy
Title: Volatility Dynamics in the Term Structure of Latin American Sovereign International Bonds
Abstract: 
 We examine the nature of volatility dynamics in the term structure of sovereign bonds issued in international markets by major Latin American countries. Focusing only on the U.S. dollar–denominated sovereign international bonds, this study shows the heterogeneous nature of volatility effects that affect the term structure of individual countries in Latin America. Considering the significance of the Argentine credit event in the region, we also account for any change in dynamics following the Argentine default in 2001 by subsampling the pre- and postdefault windows. We also find some evidence of liquidity-driven volatility interaction in the term structure.
Journal: Emerging Markets Finance and Trade
Pages: 859-866
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061377
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061377
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:5:p:859-866




Template-Type: ReDIF-Article 1.0
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Title: Are Asian Stock Market Returns Predictable?
Abstract: 
 We conduct predictability tests for selected Asian stock markets using monthly data from the period March 2001–April 2012. Asian market bears and returns are predicted using the U.S. stock market bears and returns. A two-state Markov-switching model is employed to distinguish between the bull and bear regimes in the U.S. and Asian stock markets. The in-sample predictability analysis suggests that the U.S. market returns and bears are important predictors of Asian market returns and some Asian bears. The out-of-sample predictability exercise is not able to reinforce the in-sample results, which is in large part due to the small forecasting sample size.
Journal: Emerging Markets Finance and Trade
Pages: 867-878
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061379
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061379
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Template-Type: ReDIF-Article 1.0
Author-Name: Ankita Mishra
Author-X-Name-First: Ankita
Author-X-Name-Last: Mishra
Author-Name: Vinod Mishra
Author-X-Name-First: Vinod
Author-X-Name-Last: Mishra
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Title: The Random-Walk Hypothesis on the Indian Stock Market
Abstract: 
 We test the random-walk hypothesis for the Indian stock market by applying three unit root tests with two structural breaks. We find that unit root tests that allow for two structural breaks alone are not able to reject the unit root null; however, a recently developed unit root test that simultaneously accounts for heteroskedasticity and structural breaks finds that the stock indexes are mean reverting. Our results point to the importance of addressing heteroskedasticity when testing for a random walk with high-frequency financial data.
Journal: Emerging Markets Finance and Trade
Pages: 879-892
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061380
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061380
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:5:p:879-892




Template-Type: ReDIF-Article 1.0
Author-Name: Sagarika Mishra
Author-X-Name-First: Sagarika
Author-X-Name-Last: Mishra
Author-Name: Sandip Dhole
Author-X-Name-First: Sandip
Author-X-Name-Last: Dhole
Title: Stock Price Comovement: Evidence from India
Abstract: 
 We examine the extent to which stock prices comove in an emerging economy, India. We first document that stocks listed on the National Stock Exchange (NSE) comove. Further, we find that synchronicity is positively associated with growth and earnings volatility and negatively associated with business group affiliation and leverage.
Journal: Emerging Markets Finance and Trade
Pages: 893-903
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061381
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061381
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:5:p:893-903




Template-Type: ReDIF-Article 1.0
Author-Name: Kumari Ranjeeni
Author-X-Name-First: Kumari
Author-X-Name-Last: Ranjeeni
Author-Name: Susan Sunila Sharma
Author-X-Name-First: Susan Sunila
Author-X-Name-Last: Sharma
Title: The Effect of the Lehman Brothers’ Bankruptcy on the Performance of Chinese Sectors
Abstract: 
 We investigate the effect of the news announcement of the Lehman Brothers’ (LBs) bankruptcy on the performance of Shanghai Stock Exchange (SSE) sectors. Unlike the assumption in the literature that firms are homogenous, we address the unknown issue: Does LBs’ bankruptcy have a heterogeneous effect on stock returns of sectors listed on SSE? We find statistically insignificant effect of LBs’ bankruptcy on the performance of energy and financial sectors while most of the other sectors suffered significantly. Thus, our results highlight the heterogeneous effect of LBs’ bankruptcy on different sectors and at different time intervals surrounding the event.
Journal: Emerging Markets Finance and Trade
Pages: 904-914
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061383
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061383
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Template-Type: ReDIF-Article 1.0
Author-Name: YoungJun Kim
Author-X-Name-First: YoungJun
Author-X-Name-Last: Kim
Author-Name: Beom Cheol Cin
Author-X-Name-First: Beom Cheol
Author-X-Name-Last: Cin
Author-Name: Kwanghee Cho
Author-X-Name-First: Kwanghee
Author-X-Name-Last: Cho
Author-Name: Junesuh Yi
Author-X-Name-First: Junesuh
Author-X-Name-Last: Yi
Title: Introduction: Technology, Finance, and Trade in Emerging Markets
Journal: Emerging Markets Finance and Trade
Pages: 945-946
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061385
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061385
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Template-Type: ReDIF-Article 1.0
Author-Name: Yun-Seop Hwang
Author-X-Name-First: Yun-Seop
Author-X-Name-Last: Hwang
Author-Name: Mun-Ho Hwang
Author-X-Name-First: Mun-Ho
Author-X-Name-Last: Hwang
Author-Name: Xiaoxu Dong
Author-X-Name-First: Xiaoxu
Author-X-Name-Last: Dong
Title: The Relationships Among Firm Size, Innovation Type, and Export Performance With Regard to Time Spans
Abstract: 
 We use the Korean Innovation Survey (KIS) data from 2005, 2008, and 2010 to estimate the relationship between firm size, innovation type, and export performance with different time spans. Following a review of the literature, we hypothesize that the effect of innovation activities on export performance would be revealed over long spans for large enterprises (LEs) and would be more likely to appear over short spans for small and medium enterprises (SMEs). We also assume that firms could improve their export performance if they carried out both product and process innovations simultaneously. Four Tobit regression models are assessed, respectively, for LEs and SMEs at different time spans. The empirical results statistically support our hypotheses.
Journal: Emerging Markets Finance and Trade
Pages: 947-962
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061386
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061386
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Template-Type: ReDIF-Article 1.0
Author-Name: Sunghae Jun
Author-X-Name-First: Sunghae
Author-X-Name-Last: Jun
Author-Name: Sangsung Park
Author-X-Name-First: Sangsung
Author-X-Name-Last: Park
Author-Name: Dongsik Jang
Author-X-Name-First: Dongsik
Author-X-Name-Last: Jang
Title: A Technology Valuation Model Using Quantitative Patent Analysis: A Case Study of Technology Transfer in Big Data Marketing
Abstract: 
 Technology valuation (TV) is an important issue in management of technology (MOT). We use TV results for technology transfer, research and development (R&amp;D) planning, and technology marketing. Diverse TV studies have been applied to MOT. Most of them were dependent on domain experts’ knowledge, so their TV results could be subjective and unstable. To solve this problem, we propose an objective TV model using quantitative patent analysis. In this article, we consider text mining, social network analysis, technology clustering, and descriptive statistics in constructing our TV model. To verify the performance of our model, we perform a case study of technology transfer in big data marketing.
Journal: Emerging Markets Finance and Trade
Pages: 963-974
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061387
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061387
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:5:p:963-974




Template-Type: ReDIF-Article 1.0
Author-Name: Yong-Pyo Hong
Author-X-Name-First: Yong-Pyo
Author-X-Name-Last: Hong
Author-Name: YoungJun Kim
Author-X-Name-First: YoungJun
Author-X-Name-Last: Kim
Author-Name: Beon Cheol Cin
Author-X-Name-First: Beon Cheol
Author-X-Name-Last: Cin
Title: Product-Service System and Firm Performance: The Mediating Role of Product and Process Technological Innovation
Abstract: 
 In this study, we examine the effects of product-service system (PSS) practices on firm performance with the help of unique survey data obtained from one of the leading emerging countries. In particular, we explore the mechanisms that explain the link between PSS and firm performance. We propose that a firm’s introduction of PSS is positively associated with the performance of that company in terms of product and process technological innovation. The findings show that PSS influences a firm’s performance through process technological innovation at the company, not through product technological innovation. The results suggest that firms should focus more on developing a new business process or business system in order to leverage the power of PSS.
Journal: Emerging Markets Finance and Trade
Pages: 975-984
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061388
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061388
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Template-Type: ReDIF-Article 1.0
Author-Name: Junesuh Yi
Author-X-Name-First: Junesuh
Author-X-Name-Last: Yi
Author-Name: Kwanghee Cho
Author-X-Name-First: Kwanghee
Author-X-Name-Last: Cho
Title: Performance of Technology Sector Hedge Funds in Emerging Markets
Abstract: 
 We examine the performance of technology sector hedge funds with a special focus on emerging markets. We analyze risk-adjusted returns, alpha determinants, and various provisions of the hedge funds. We find that technology hedge funds show positive risk-adjusted returns on average and that the emerging market tech funds outperform the nonemerging market funds in general. Classified geographically, Eastern Europe funds exhibit the greatest performance and the highest ratio of funds with significant alpha. We also observe that the abnormal returns of emerging market funds are positively associated with their past performance, flow, and incentive fee, but negatively related with size.
Journal: Emerging Markets Finance and Trade
Pages: 985-1000
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061389
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061389
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Template-Type: ReDIF-Article 1.0
Author-Name: Noolee Kim
Author-X-Name-First: Noolee
Author-X-Name-Last: Kim
Author-Name: Kyoung-Min Kwon
Author-X-Name-First: Kyoung-Min
Author-X-Name-Last: Kwon
Title: Certification Benefits in High-Tech Industry: Evidence from Supply Contracts in the Korean Market
Abstract: 
 We examine the certification benefits of supply contracts in the Korean market, with special attention to high-tech and KOSDAQ supplier firms by analyzing the influences of supply contract announcements on supplier firms’ valuation and operating performances. We find that the announcement of supply contracts have a significantly positive effect on the supplier firm value. This positive effect is greater for the suppliers in the high-tech industry especially in the KOSDAQ market. We also find that the enhancements of operating performances are greater for high-tech firms traded in KOSDAQ. These results indicate stronger certification benefits of supply contracts by high-tech suppliers.
Journal: Emerging Markets Finance and Trade
Pages: 1001-1020
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061390
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061390
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:5:p:1001-1020




Template-Type: ReDIF-Article 1.0
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Author-Name: Zhichao Zhang
Author-X-Name-First: Zhichao
Author-X-Name-Last: Zhang
Author-Name: Xinwei Zheng
Author-X-Name-First: Xinwei
Author-X-Name-Last: Zheng
Title: Some Hypotheses on Commonality in Liquidity: New Evidence from the Chinese Stock Market
Abstract: 
 In this article, we examine four specific hypotheses relating to commonality in liquidity on the Chinese stock markets. These hypotheses are (1) that market-wide liquidity determines liquidity of individual stocks; (2) that liquidity varies with firm size; (3) that sectoral-based liquidity affects individual stock liquidities differently; and (4) that commonality in liquidity has an asymmetric effect. Drawing on a two-year data set on the Shanghai and Shenzhen stock exchanges comprising over 34 million and 48 million transactions, respectively, we find strong support for commonality in liquidity and a greater influence of industry-wide liquidity in explaining liquidity of individual stocks. Moreover, our results suggest that of the three main sectors—financial, industrial, and resources—the industrial sector’s liquidity is most important in explaining individual stock liquidities. Finally, we do not find any evidence of size effects and document an asymmetric effect of market-wide liquidity on liquidity of individual stocks.
Journal: Emerging Markets Finance and Trade
Pages: 915-944
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1061799
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1061799
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Errata
Journal: Emerging Markets Finance and Trade
Pages: 1069-1069
Issue: 5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1074486
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1074486
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:5:p:1069-1069




Template-Type: ReDIF-Article 1.0
Author-Name: Zihan Zhang
Author-X-Name-First: Zihan
Author-X-Name-Last: Zhang
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Title: Energy Conservation and Emission Reduction of Chinese Cement Industry: From a Perspective of Factor Substitutions
Abstract: 
 Cement is an essential basic and resource, which has a significant impact on the Chinese national economy. However, at present, cement is still an unsustainable basic building material, and as such cannot be reused. During the production process, cement consumes a great deal of coal, electricity, and other energy resources. In this way, cement belongs to the category of traditional industries with a high-energy consumption and environmental impact, including the emission of serious levels of air pollutants such as dust. With increasingly serious problems relating to resources and the environment in China, the problem of energy saving and emission reduction in the cement industry is becoming more and more important. We use the translog cost function to investigate inter-factor and inter-fuel substitution in China&#x2019;s cement industry over the period from 1994 to 2014. The results revealed that capital is in an absolute core position, so energy or the labor force has no obvious substitution effect on capital, which leads to more and more reliance on the capital input of the cement industry. In addition, the substitution elasticity of coal and oil in the cement industry is very high. Therefore, in the process of cement production, it is possible to promote the use of natural gas.
Journal: Emerging Markets Finance and Trade
Pages: 967-979
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1516638
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1516638
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Template-Type: ReDIF-Article 1.0
Author-Name: Bao Zhu
Author-X-Name-First: Bao
Author-X-Name-Last: Zhu
Author-Name: Jing He
Author-X-Name-First: Jing
Author-X-Name-Last: He
Author-Name: Shiting Zhai
Author-X-Name-First: Shiting
Author-X-Name-Last: Zhai
Title: Does Financial Inclusion Create a Spatial Spillover Effect Between Regions? Evidence from China
Abstract: 
 Promoting China&#x2019;s development of financial inclusion requires understanding whether there is a spatial spillover effect between regions. First, this study applies improved Hotelling model to derive necessary conditions for spatial spillover effects to occur between regions as a result of financial inclusion. Results show that the difference in the service cost and unit distance cost which is also defined as flowing cost of financial inclusion determines the spatial spillover effects between regions. Second, constructing a financial inclusion index, we find the development of financial inclusion is better in the eastern region than in the central and western regions, but the gap gradually decreases from east to west. Third, we conduct an empirical analysis using a dynamic shift-share spatial model. The results show that the development of financial inclusion in the eastern and western regions has a structural disadvantage. In other words, eastern and western regions have negative spatial spillover effects on the central region. But the central region has not been completely affected and does well with respect to the availability and usage dimensions of financial inclusion. In the future, reducing costs of financial inclusion services and promoting positive spatial spillover effects can improve overall development of China&#x2019;s financial inclusion.
Journal: Emerging Markets Finance and Trade
Pages: 980-997
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1518779
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1518779
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Template-Type: ReDIF-Article 1.0
Author-Name: Jinmian Han
Author-X-Name-First: Jinmian
Author-X-Name-Last: Han
Author-Name: Jiaqi Wang
Author-X-Name-First: Jiaqi
Author-X-Name-Last: Wang
Author-Name: Xiaoqiang Ma
Author-X-Name-First: Xiaoqiang
Author-X-Name-Last: Ma
Title: Effects of Farmers&#x2019; Participation in Inclusive Finance on Their Vulnerability to Poverty: Evidence from Qinba Poverty-Stricken Area in China
Abstract: 
 China&#x2019;s new poverty alleviation strategy has been focusing on the 14 undeveloped poverty-stricken areas including Qinba, which faces frequent natural disasters, fragile ecological environment, and high incidence of poverty. With the government initiation, farmers in Qinba have participated in inclusive financial services. Based on 587 rural household field survey data in Qinba area, this article examines farmers&#x2019; participation level in inclusive finance. It uses the VEP model to measure the vulnerability to poverty. Then it empirically analyzes the effects of farmers&#x2019; participation in inclusive finance on their vulnerability to poverty. The study finds that: first, inclusive finance impacts farmers&#x2019; risk coping ability, thus affecting the vulnerability to poverty. Second, farmers&#x2019; participation level of savings, micro-credit, and commercial insurance is 48.55%, 17.89%, and 12.44%, respectively. Third, farmers&#x2019; participation in savings and commercial insurance reduces their vulnerability by 0.05 and 0.126, while micro-credit does a not have a significantly positive impact. Last, it puts forward the policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 998-1013
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1523789
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1523789
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Template-Type: ReDIF-Article 1.0
Author-Name: Yingyi Hu
Author-X-Name-First: Yingyi
Author-X-Name-Last: Hu
Author-Name: Tiao Zhao
Author-X-Name-First: Tiao
Author-X-Name-Last: Zhao
Author-Name: Lin Zhang
Author-X-Name-First: Lin
Author-X-Name-Last: Zhang
Title: Does Low Price Synchronicity Mean More Informativeness in Stock Prices? Empirical Evidence on Information Integration Speed in the Chinese Stock Market
Abstract: 
 We investigate whether low price synchronicity means a better information environment and more price informativeness in terms of the integration speed for firm-specific information and market-wide information. The results show that, for different time intervals, low price synchronicity may not be related to a better information environment and more price informativeness. Stocks with low price synchronicity consistently underperform in terms of the integration speed of market-wide information and possess characteristics related to a poor information environment over short horizons. Variations in information asymmetry and noise trading could be the reason for the different integration speed for firm-specific information and market-wide information over different horizons.
Journal: Emerging Markets Finance and Trade
Pages: 1014-1033
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1528973
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1528973
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:5:p:1014-1033




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaojun Chu
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Chu
Author-Name: Jianying Qiu
Author-X-Name-First: Jianying
Author-X-Name-Last: Qiu
Title: Forecasting Volatility with Price Limit Hits&#x2014;Evidence from Chinese Stock Market
Abstract: 
 In this article, we discuss whether price limit hits (PLH) contain information for volatility forecasting. Using Chinese stock market as sample, we find that PLH display significant forecasting power for future volatilities. Furthermore, the predictive effects on volatility are asymmetric between upper price limit hits (UPLH) and lower price limit hits (LPLH), with more pronounced effect for LPLH. These results are robust after controlling for jump, leverage effect, and volume in HAR-RV models, and they hold in crisis sub-sample and other measures of PLH. Finally, we provide a possible explanation for the predictive ability of PLH and suggest that the number of PLH can be used as a proxy for investor sentiment.
Journal: Emerging Markets Finance and Trade
Pages: 1034-1050
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1532888
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1532888
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiaqi Liu
Author-X-Name-First: Jiaqi
Author-X-Name-Last: Liu
Author-Name: Mingzhi Hu
Author-X-Name-First: Mingzhi
Author-X-Name-Last: Hu
Author-Name: Huan Zhang
Author-X-Name-First: Huan
Author-X-Name-Last: Zhang
Author-Name: Jon Carrick
Author-X-Name-First: Jon
Author-X-Name-Last: Carrick
Title: Corruption and Entrepreneurship in Emerging Markets
Abstract: 
 We applied an institutional perspective lens to examining the relationship between corruption and entrepreneurship. Our results suggest that corruption plays an informal but legitimate institutional channel in facilitating entrepreneurship in sub-national regions with underdeveloped formal institutions. However, we also find the positive relationship between corruption and entrepreneurship is limited, and that high levels of corruption have a negative effect on entrepreneurship. Examining a longitudinal nationwide individual-level survey from China, we find an inverted U relationship between corruption and entrepreneurship; i.e., sub-national corruption at low levels is positively associated with focal regions&#x2019; prevalence of entrepreneurship, but prevalence of entrepreneurship is negatively correlated with high levels of corruption. Additionally, we find that sub-national regions with stronger marketization level (e.g., pro-market resource allocation and lower market entry barriers) can offset the diminishing positive effect of corruption. This study theoretically advances the puzzle of mixed findings on the corruption&#x2013;entrepreneurship relationship by considering the sub-national region differences. We also enrich the understanding of the role of informal institutions on entrepreneurship activities in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 1051-1068
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1531242
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1531242
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Template-Type: ReDIF-Article 1.0
Author-Name: Jaemin Lim
Author-X-Name-First: Jaemin
Author-X-Name-Last: Lim
Author-Name: Sang Cheol Lee
Author-X-Name-First: Sang Cheol
Author-X-Name-Last: Lee
Title: Relationship Between the Characteristics of CEOs and Excess Cash Holdings of Firms
Abstract: 
 This study investigates the relationship between excess cash holdings of firms and CEO characteristics, such as ownership type, presence of stock options, inclusion in a chaebol, and CEO tenure. Based on a sample of non-financial listed Korean companies for 2000&#x2013;2014, we find first, that professional CEOs have higher excess cash holdings than owner-managers have. Second, longer CEO tenure lowers excess cash holdings but decreases the marginal impact of CEO tenure on excess cash holdings. Third, the effect of CEO affiliation to a chaebol on excess cash holdings was greater before the global financial crisis of 2008&#x2013;2009 than after it. Excess cash holdings arise from agency problems and the CEO horizon problem but agency problems between minority and dominant shareholders have eased in Korea since the crisis.
Journal: Emerging Markets Finance and Trade
Pages: 1069-1090
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1518778
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1518778
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:5:p:1069-1090




Template-Type: ReDIF-Article 1.0
Author-Name: Qianhua Lei
Author-X-Name-First: Qianhua
Author-X-Name-Last: Lei
Author-Name: Huili Chen
Author-X-Name-First: Huili
Author-X-Name-Last: Chen
Title: Corporate Governance Boundary, Debt Constraint, and Investment Efficiency
Abstract: 
 This article examines how the corporate governance boundary affects corporate investment efficiency. The empirical results based on Chinese listed companies suggest that the expansion of the corporate governance boundary can significantly improve investment efficiency. We also investigate the role of debt constraint. Debt constraint can enhance the positive effects of the corporate governance boundary on investment efficiency. This study contributes to the theory of corporate groups and has policy implications on corporate governance.
Journal: Emerging Markets Finance and Trade
Pages: 1091-1108
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1526078
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1526078
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Template-Type: ReDIF-Article 1.0
Author-Name: Yi Zhang
Author-X-Name-First: Yi
Author-X-Name-Last: Zhang
Title: Institutions, Firm Characteristics, and FDI Spillovers
Abstract: 
 This article investigates the effects of institutions on FDI spillovers considering firm heterogeneity and various spillover mechanisms. We test our hypotheses using data on Chinese manufacturing firms from 1998 to 2013. We find that intellectual property rights protection lowers the positive demonstration effect of FDI on local productivity, while such negative effect is smaller for local firms with higher technological competence. Government interference reduces the negative competition effect of FDI on the productivity of local firms and this effect is even stronger for state-owned firms. For firms with high relationship-specificity, vertical spillovers through the backward and forward linkages are larger in regions with better rule of law.
Journal: Emerging Markets Finance and Trade
Pages: 1109-1136
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1523057
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1523057
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Template-Type: ReDIF-Article 1.0
Author-Name: So Yeon Kim
Author-X-Name-First: So Yeon
Author-X-Name-Last: Kim
Author-Name: Hyun-Han Shin
Author-X-Name-First: Hyun-Han
Author-X-Name-Last: Shin
Author-Name: Seungwon Yu
Author-X-Name-First: Seungwon
Author-X-Name-Last: Yu
Title: Do State-Owned Enterprises Cooperate with Suppliers? Performance Analysis in the Korean Case
Abstract: 
 In this paper, using performance analysis, we examine cooperation between state-owned enterprises (SOEs) and their suppliers. We use hand-collected Korean SOE customer&#x2013;supplier relationship data. Considering the ambivalent characteristics of SOEs that pursue both financial performance goals and public performance goals, we analyze financial statements and the results of Korean government performance evaluations (GPE). We find that the higher the gross margin or sales growth in an SOE, the lower the supplier&#x2019;s gross margin. We also find that the higher the GPE results in an SOE, the lower the supplier&#x2019;s financial performance (gross margin, operating margin, profit margin, return on assets, and return on equity). Additionally, no evidence of improved financial performance of suppliers was found after they began supplying SOEs. It is therefore unlikely that the customer&#x2013;supplier relationship between SOEs&#x2019; customers and their suppliers contributes to the growth of the suppliers.
Journal: Emerging Markets Finance and Trade
Pages: 1137-1152
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1540977
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1540977
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:5:p:1137-1152




Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Wei Chao
Author-X-Name-First: Shih-Wei
Author-X-Name-Last: Chao
Title: The Role of US Variables in Long-Run and Short-Run Taiwan Stock Volatility
Abstract: 
 This article uses the GARCH-MIDAS model to decompose Taiwan stock volatility and studies the role of US economic variables in each component. The full-sample results indicate that the additional explanatory information of US variables is contributed mostly by stock market measures, and the link between short-run Taiwan and US stock volatility is particularly evident. The out-of-sample results suggest that the in-sample significant US variables lead to slightly smaller forecast errors for both volatility components, but the improvements are very limited. The analysis also extends to Electronics and Non-Electronics subindices, a range-based volatility estimator and a different volatility decomposition method. Despite these alternatives, the main conclusions do not change.
Journal: Emerging Markets Finance and Trade
Pages: 1153-1170
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1464908
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1464908
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Template-Type: ReDIF-Article 1.0
Author-Name: Ghulam Sarwar
Author-X-Name-First: Ghulam
Author-X-Name-Last: Sarwar
Title: Transmission of Risk Between U.S. and Emerging Equity Markets
Abstract: 
 This study examines the transmission of risk between VIX and VIX-like measures of the Chinese, Brazilian, and overall emerging stock markets (EM) in an integrated system that allows multi-directional risk interactions through the first and second moments of volatility processes. Our VARMAX-DCC-QGARCH model reveals significant interactions in the covariance terms of VIX and EM volatility changes which show persistence and facilitate risk transmission. Our results show that VIX and EM volatility changes have predictive ability for each other. Further, VIX shocks contribute 51&#x2013;71% to the prediction error of EM volatility shocks, but EM volatilities do not contribute to the VIX&#x2019;s prediction errors. Our results highlight the potential weakness of risk transmission models that ignore interactions through the multivariate variance&#x2013;covariance matrix and have important implications for volatility trades, portfolio diversification, and hedging the cross-market risks.
Journal: Emerging Markets Finance and Trade
Pages: 1171-1183
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1468248
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1468248
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhengyang Qu
Author-X-Name-First: Zhengyang
Author-X-Name-Last: Qu
Author-Name: Xiaotian Liu
Author-X-Name-First: Xiaotian
Author-X-Name-Last: Liu
Author-Name: Shi He
Author-X-Name-First: Shi
Author-X-Name-Last: He
Title: Abnormal Returns and Idiosyncratic Volatility Puzzle: Evidence from the Chinese Stock Market
Abstract: 
 The well-documented idiosyncratic volatility anomaly indicates the stocks with higher idiosyncratic volatility tend to have lower returns. Using different models to estimate abnormal return (i.e. alpha), we show that in the Chinese stock market, the IVOL-return relation is negative among stocks with negative abnormal returns but positive among stocks with positive abnormal returns. A possible explanation is that when we take the expected return as the reference point, different signs of abnormal returns can be viewed as gains and losses. Under prospect theory, distinct risk attitudes in the domain of gains and losses lead to different IVOL-return relations.
Journal: Emerging Markets Finance and Trade
Pages: 1184-1198
Issue: 5
Volume: 55
Year: 2019
Month: 4
X-DOI: 10.1080/1540496X.2018.1468249
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1468249
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:5:p:1184-1198




Template-Type: ReDIF-Article 1.0
Author-Name: Chao Wan
Author-X-Name-First: Chao
Author-X-Name-Last: Wan
Author-Name: Yuying Jin
Author-X-Name-First: Yuying
Author-X-Name-Last: Jin
Title: Output Recovery after Financial Crises: An Empirical Study
Abstract: 
 In this paper, we provide a characterization of output recovery after financial crises. Using data from eighty-one countries (regions) from 1975 to 2008, we first identify 182 currency crises by a modified EMP method and recognize 131 banking crises using the results from literature. With quantitative U-shaped and V-shaped recovery specified, we depict output recovery over the dimensions of output loss and duration and find that emerging markets tend to experience severe crises with speedy recoveries. Finally, we apply survival analysis to study the duration of recovery. The results indicate that certain factors, such as control of private sector credit, the degree of financial openness, and adjustment of the current account deficit, contribute to a speedy recovery after financial crises.
Journal: Emerging Markets Finance and Trade
Pages: 209-228
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1011936
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1011936
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:209-228




Template-Type: ReDIF-Article 1.0
Author-Name: Iljoong Kim
Author-X-Name-First: Iljoong
Author-X-Name-Last: Kim
Author-Name: Inbae Kim
Author-X-Name-First: Inbae
Author-X-Name-Last: Kim
Title: Guest Editors’ Introduction: Financial Supervision and Regulation with Emphasis on Korea and Emerging Market Economies
Journal: Emerging Markets Finance and Trade
Pages: 1-4
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2015.101939
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.101939
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:1-4




Template-Type: ReDIF-Article 1.0
Author-Name: Yasin Akcelik
Author-X-Name-First: Yasin
Author-X-Name-Last: Akcelik
Author-Name: Orcan Cortuk
Author-X-Name-First: Orcan
Author-X-Name-Last: Cortuk
Author-Name: Ibrahim Turhan
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Turhan
Title: Mitigating Turkey’s Trilemma Tradeoffs
Abstract: 
 We study the trilemma configuration of the Turkish economy for the period 2002–11. This includes calculating the trilemma indices and regressing them on a constant following Aizenman et al. (2008). Yet we extend this approach by applying a Kalman filter to the classical linear regression to capture the time-varying importance of policy decisions. Next, we reveal the role of central bank foreign reserves and required reserves in mitigating trilemma tradeoffs through their relation with trilemma residuals in a vector autoregression (VAR) framework—we show that the foreign reserves to GDP ratio and the required reserve ratio have a positive significant impact on the residuals, thus making the policy tradeoffs smaller.
Journal: Emerging Markets Finance and Trade
Pages: 102-118
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013862
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013862
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:102-118




Template-Type: ReDIF-Article 1.0
Author-Name: Shujian Zhang
Author-X-Name-First: Shujian
Author-X-Name-Last: Zhang
Author-Name: Shiyi Chen
Author-X-Name-First: Shiyi
Author-X-Name-Last: Chen
Title: Local Governance Performance in China: A Fiscal Perspective
Abstract: 
 In this paper, we attempt to take undesirable fiscal outcomes into account and adopt the directional distance function method to calculate the efficiency scores of local governments in China. The measures indicate that the eastern provinces have higher governance performance than other regions, and, overall, governance efficiency is slightly decreasing over the period of fiscal decentralization reform. This is statistically confirmed by the following determinants analysis of governance efficiency at the second stage. The most important way to improve local governance performance is to substantially enhance the transparency of governmental fiscal behaviors by putting them under the complete budget and supervision of local legislature.
Journal: Emerging Markets Finance and Trade
Pages: 119-136
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013863
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013863
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:119-136




Template-Type: ReDIF-Article 1.0
Author-Name: M. Nihat Solakoglu
Author-X-Name-First: M.
Author-X-Name-Last: Nihat Solakoglu
Author-Name: Nazmi Demir
Author-X-Name-First: Nazmi
Author-X-Name-Last: Demir
Title: The Effect of News on Return Volatility and Volatility Persistence: The Turkish Economy during Crisis
Abstract: 
 In this study, we investigate the effect of public information arrival on return volatility for Borsa Istanbul. New information arrival is measured by the number of daily news headlines for Turkey, the United States, and a sample of European countries with close trading ties with Turkey. We classify news headlines by country and type of news. Our findings indicate that, during a recessionary period, new information arrival causes return volatility mostly to decline. Moreover, both economic news and European news cause a significant decline in volatility persistence. However, when news is classified based on origin and type, a larger decline in persistence is observed.
Journal: Emerging Markets Finance and Trade
Pages: 249-263
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013864
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013864
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:249-263




Template-Type: ReDIF-Article 1.0
Author-Name: Jesús C. Peña-Vinces
Author-X-Name-First: Jesús C.
Author-X-Name-Last: Peña-Vinces
Author-Name: David Urbano
Author-X-Name-First: David
Author-X-Name-Last: Urbano
Title: The Influence of Domestic Economic Agents on the International Competitiveness of Latin American Firms: Evidence from Peruvian Small and Medium Multinational Enterprises
Abstract: 
 We evaluate how home-country economic agents (government, universities and research centers, and industry) affect the international competitiveness of small and medium multinational enterprises (SMNEs) of developing countries in Latin America. Drawing on a sample of 100 SMNEs of Peru, the main findings reveal that for Peruvian SMNEs, the government is a core economic agent. Competitiveness of SMNEs also depends on the relationships they have with companies operating in the same industry. Universities and research centers do not have a positive effect on the international competitiveness of SMNEs. The study both advances theory and offers practical advice
Journal: Emerging Markets Finance and Trade
Pages: 229-248
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013865
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013865
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:229-248




Template-Type: ReDIF-Article 1.0
Author-Name: Felix Rioja
Author-X-Name-First: Felix
Author-X-Name-Last: Rioja
Author-Name: Fernando Rios-Avila
Author-X-Name-First: Fernando
Author-X-Name-Last: Rios-Avila
Author-Name: Neven Valev
Author-X-Name-First: Neven
Author-X-Name-Last: Valev
Title: Serial Banking Crises and Capital Investment
Abstract: 
 We find that banking crises have a sizable, multiyear cumulative negative effect on investment in capital. Moreover, in countries that have experienced several banking crises over the years, each additional crisis lowers the ratio of investment to gross domestic product by more than the previous crisis. In addition, the recovery of investment following a banking crisis is conditional on earlier crises in the same country. The recovery is slower in countries that have experienced crises in the past. The results are obtained using data for seventy-five countries for the period 1976–2005.
Journal: Emerging Markets Finance and Trade
Pages: 193-208
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013866
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013866
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:193-208




Template-Type: ReDIF-Article 1.0
Author-Name: Victoria Geyfman
Author-X-Name-First: Victoria
Author-X-Name-Last: Geyfman
Title: The Effect of Economic and Financial System Development on Banks’ Listing Decisions: Evidence from Transition Economies
Abstract: 
 In this study, I examine the relationship between banks’ decisions to go public and various macroeconomic, financial development, bank-level, and regulatory control variables in transition economies (TEs). Using a sample of 208 large banks in twenty TE markets, I find that the levels of development and maturity of capital markets has a positive effect on the probability of a bank being listed. While some researchers find positive effects of foreign banks in emerging markets, this study shows that foreign subsidiaries in host countries are less likely to go public, which has implications for market discipline and the development and growth of capital markets in transition economies.
Journal: Emerging Markets Finance and Trade
Pages: 174-192
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013867
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013867
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:174-192




Template-Type: ReDIF-Article 1.0
Author-Name: Katja Zajc Kejžar
Author-X-Name-First: Katja Zajc
Author-X-Name-Last: Kejžar
Author-Name: Nina Ponikvar
Author-X-Name-First: Nina
Author-X-Name-Last: Ponikvar
Title: Job Destruction and Productivity Gains in Heterogeneous Incumbent Firms: Comparing the Effects of Imports and Inward Foreign Direct Investment
Abstract: 
 Using a ten-year panel of firm-level data for the Slovenian manufacturing sector, we find that as a result of investment liberalization, the least-efficient incumbent firms are experiencing job destruction, and the most-efficient are experiencing productivity gains; firms from the middle part of the total factor productivity (TFP) distribution are faced with both effects. Further, local firms from the lower and middle parts of the TFP distribution also experience a competition effect from imports in terms of both reduced employment and TFP growth. Our results imply that policy measures affecting foreign firm entry would have a relatively uniform effect on the employment growth of local firms, while their TFP growth would adjust significantly differently across the TFP distribution.
Journal: Emerging Markets Finance and Trade
Pages: 154-173
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013869
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013869
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:154-173




Template-Type: ReDIF-Article 1.0
Author-Name: Andrés Elberg
Author-X-Name-First: Andrés
Author-X-Name-Last: Elberg
Title: Heterogeneous Price Dynamics, Synchronization, and Retail Chains: Evidence from Scanner Data
Abstract: 
 Using a novel scanner data set, I study price-setting decisions of major retailers in an emerging market economy. Pricing dynamics are heterogeneous across retail chains. Heterogeneity is especially pronounced in the case of posted (as opposed to reference) prices. Furthermore, retail chains appear to set prices in a centralized fashion: most barcode/store-level prices coincide with the intrachain modal price. The relationship between reference and chain-wide prices reveals that deviations from reference prices cannot be solely attributed to shocks to local market conditions. I find strong evidence of synchronization of price changes across stores within chains but weaker evidence of synchronization across retail chains.
Journal: Emerging Markets Finance and Trade
Pages: 137-153
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013870
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013870
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:137-153




Template-Type: ReDIF-Article 1.0
Author-Name: Sungbin Cho
Author-X-Name-First: Sungbin
Author-X-Name-Last: Cho
Author-Name: Joon-Ho Hahm
Author-X-Name-First: Joon-Ho
Author-X-Name-Last: Hahm
Title: Foreign Currency Noncore Bank Liabilities and Macroprudential Levy in Korea
Abstract: 
 Using bank-level data in Korea, we examine empirical properties of foreign currency noncore bank liabilities and assess policy effectiveness of the macroprudential levy introduced in postcrisis Korea. Our panel regression and VAR analyses indicate that the foreign currency noncore bank liability ratio yields significant information on the vulnerability of banks, and the macroprudential levy has exerted nontrivial effects on the noncore funding of banks, leading to the mitigation of foreign currency liquidity risks of Korea’s banks. Our findings strengthen the rationale for using appropriate macroprudential policies as a guard against financial vulnerability in open emerging economies.
Journal: Emerging Markets Finance and Trade
Pages: 5-18
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013871
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013871
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:5-18




Template-Type: ReDIF-Article 1.0
Author-Name: Kang Baek
Author-X-Name-First: Kang
Author-X-Name-Last: Baek
Author-Name: Young S. Park
Author-X-Name-First: Young S.
Author-X-Name-Last: Park
Title: Vertical Relations and Procompetitive Policy Effects in the Fund Industry: Evidence from Korea
Abstract: 
 This study indicates, through the first two moments (mean and variance) of distribution fees and market shares, that competition in Korea’s equity fund industry has intensified since the enforcement of procompetitive policies. However, the results demonstrate that the policy effects are impeded by vertical relations among financial companies. Therefore, along with horizontal anticompetitive behaviors, fund distributors’ excessive sales concentration in the affiliated funds needs to be controlled to heighten the policy effects under oligopolistic market structures. This regulation can strengthen investor protection and promote the growth of the fund industry in an emerging financial market.
Journal: Emerging Markets Finance and Trade
Pages: 41-55
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013872
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013872
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:41-55




Template-Type: ReDIF-Article 1.0
Author-Name: Hyunchul Kim
Author-X-Name-First: Hyunchul
Author-X-Name-Last: Kim
Author-Name: Minsoo Park
Author-X-Name-First: Minsoo
Author-X-Name-Last: Park
Author-Name: Hyunduk Suh
Author-X-Name-First: Hyunduk
Author-X-Name-Last: Suh
Title: What Forms and Reforms Banking Regulations? A Cross-National Study
Abstract: 
 We examine the determinants of regulatory frameworks in the banking sector using an extensive data set of regulations of more than 180 countries. In contrast with previous studies, we analyze multiple aspects of regulations independently in terms of their objects and functions, controlling for political and economic conditions that might affect regulatory structures. We find that each dimension of regulations is determined by different factors, and the incentives for the formulation of regulations differ between emerging and developed economies. Emerging economies regulate banking activities, entry, and foreign bank operations more tightly than do developed economies; however, emerging economies impose fewer restrictions on private monitoring requirements.
Journal: Emerging Markets Finance and Trade
Pages: 72-89
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013873
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013873
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:72-89




Template-Type: ReDIF-Article 1.0
Author-Name: Jeroen Klomp
Author-X-Name-First: Jeroen
Author-X-Name-Last: Klomp
Author-Name: Jakob de Haan
Author-X-Name-First: Jakob
Author-X-Name-Last: de Haan
Title: Bank Regulation, the Quality of Institutions, and Banking Risk in Emerging and Developing Countries: An Empirical Analysis
Abstract: 
 Using data for 371 banks from nonindustrial countries for the period 2002–8, we examine the effect of bank regulation and supervision on banking risk. Our main findings suggest that stricter regulation and supervision reduces banking risk. Notably, capital regulations and supervisory control reduce bank riskiness. Liquidity regulation and activities restrictions also restrain banking risk but only when there is a high level of institutional quality. Finally, we find that the effect of regulation and supervision also depends on the level of development.
Journal: Emerging Markets Finance and Trade
Pages: 19-40
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013874
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013874
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:19-40




Template-Type: ReDIF-Article 1.0
Author-Name: Iljoong Kim
Author-X-Name-First: Iljoong
Author-X-Name-Last: Kim
Author-Name: Inbae Kim
Author-X-Name-First: Inbae
Author-X-Name-Last: Kim
Author-Name: Yoonseon Han
Author-X-Name-First: Yoonseon
Author-X-Name-Last: Han
Title: Deposit Insurance, Banks’ Moral Hazard, and Regulation: Evidence from the ASEAN Countries and Korea
Abstract: 
 In this paper, we analyze the effect of deposit insurance (DI) on banks’ risk-taking for the ASEAN (Association of Southeast Asian Nations) countries and Korea. Previous studies focus primarily on developed countries or use mixed samples. The utilization of a panel data set consisting of 406 banks across our sample countries reveals that banks engage more actively in risk-taking in the presence of DI, that the adverse effect of DI is aggravated with extensive coverage, and that DI-related moral hazard is curbed through better regulatory quality. Particularly, risk-taking is relatively higher in Korea, but no difference is detected in the stabilizing effect of the regulatory quality. Relevant policy implications are offered.
Journal: Emerging Markets Finance and Trade
Pages: 56-71
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013875
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013875
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:56-71




Template-Type: ReDIF-Article 1.0
Author-Name: Wook Sohn
Author-X-Name-First: Wook
Author-X-Name-Last: Sohn
Author-Name: Eun Sup Sim
Author-X-Name-First: Eun Sup
Author-X-Name-Last: Sim
Title: Factors Driving the Prompt Corrective Action of Supervisory Authorities: Evidence from Korea’s Savings Banks
Abstract: 
 Korea’s savings banks that expanded their number of high-risk loans experienced defaults after the 2008 global financial crisis. We consider the prompt corrective action (PCA) to analyze factors that drive savings banks to failure given that an order for PCA by a supervisory authority normally leads to default. We conduct discrete choice models to estimate the probability of PCA using 2005–11 data on 103 Korea savings banks. We find that the postexamination actions taken by supervisory authorities and a rapid increase in loans increase the possibility of PCA. These results suggest that depositors and the market can reduce the costs incurred from defaults by identifying information that predicts PCA.
Journal: Emerging Markets Finance and Trade
Pages: 90-101
Issue: 6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013876
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013876
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:90-101




Template-Type: ReDIF-Article 1.0
Author-Name: Yugang Yin
Author-X-Name-First: Yugang
Author-X-Name-Last: Yin
Author-Name: Rongfu Tian
Author-X-Name-First: Rongfu
Author-X-Name-Last: Tian
Title: Investor Sentiment, Financial Report Quality and Stock Price Crash Risk: Role of Short-Sales Constraints
Abstract: 
 We use firm-year observations of Chinese firms between 2003 and 2013 and empirically investigate the association between investor sentiment and stock crash risk with respect to short-sales constraint conditions. In addition, we also evaluate the incremental effect of financial reporting quality on this association and the existence of such an association under market conditions. We find that investor sentiment is positively associated with future stock price crash risk and poorer financial report quality and short-sale constraint will strengthen this association. In consideration of the firm-level fundamental information in stock prices and different market states, we find that lower fundamental information in stock price and bull market state will strengthen the positive association between investor sentiment and future stock price crash risk. Our findings are robust with several robustness checks.
Journal: Emerging Markets Finance and Trade
Pages: 493-510
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1093844
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1093844
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:3:p:493-510




Template-Type: ReDIF-Article 1.0
Author-Name: Hsin-Hung Chen
Author-X-Name-First: Hsin-Hung
Author-X-Name-Last: Chen
Author-Name: Long-Hui Chen
Author-X-Name-First: Long-Hui
Author-X-Name-Last: Chen
Title: An Analysis of the Investment Concentration of Equity Mutual Funds in China
Abstract: 
 This study examines the relationship between the investment concentration and performance of equity mutual funds in China. The analysis of stock-picking abilities indicates that the industry concentration levels and the risk levels have significant positive effects on the stock picking abilities of Chinese mutual funds. The analysis of market-timing abilities reveals that the risk levels have significant positive effects on the market timing abilities of Chinese mutual funds. The test results of the performance persistence of Chinese mutual funds show that the positive performance persistence of concentrated equity is generally higher than that of diversified equity funds.
Journal: Emerging Markets Finance and Trade
Pages: 511-520
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1093846
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1093846
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:3:p:511-520




Template-Type: ReDIF-Article 1.0
Author-Name: Weixian Cai
Author-X-Name-First: Weixian
Author-X-Name-Last: Cai
Author-Name: Jian Chen
Author-X-Name-First: Jian
Author-X-Name-Last: Chen
Author-Name: Jimin Hong
Author-X-Name-First: Jimin
Author-X-Name-Last: Hong
Author-Name: Fuwei Jiang
Author-X-Name-First: Fuwei
Author-X-Name-Last: Jiang
Title: Forecasting Chinese Stock Market Volatility With Economic Variables
Abstract: 
 This article investigates the forecasting power of economic variables for the Chinese stock market volatility. We find that several economic variables strongly forecast the future monthly volatilities for the aggregate Chinese stock market and a number of industry portfolios. The forecasting power of economic variables remains strong in out-of-sample setting. The predictability of Chinese stock market volatility can be further improved when combining information in all economic variables together.
Journal: Emerging Markets Finance and Trade
Pages: 521-533
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1093878
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1093878
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Template-Type: ReDIF-Article 1.0
Author-Name: Young-Jin Ro
Author-X-Name-First: Young-Jin
Author-X-Name-Last: Ro
Author-Name: In-Chul Kim
Author-X-Name-First: In-Chul
Author-X-Name-Last: Kim
Author-Name: Jin Woong Kim
Author-X-Name-First: Jin Woong
Author-X-Name-Last: Kim
Title: Financial Development and Investment in Korea
Abstract: 
 In this study, we investigate whether financial development could have a positive effect on the real economy in Korea through the investment channel. After deriving an investment function in which a firm’s investment is subject to financial restriction, we analyze whether financial development has reduced a firm’s financial restriction and analyze whether financial development has reduced a firm’s financial restriction by expanding available external financing that the firm faces. Using firm-level data in Korea from 1994 to 2011, we find that financial development affects a firm’s investment by reducing the firm’s financial restrictions. However, the effects of financial development on a firm’s financial restrictions are varied by industry or firm size. We also find that the financial crisis could deteriorate the effect of financial development on corporate investment.
Journal: Emerging Markets Finance and Trade
Pages: 534-543
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1095562
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1095562
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Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Fan You
Author-X-Name-First: Chun-Fan
Author-X-Name-Last: You
Author-Name: Chin-Sheng Huang
Author-X-Name-First: Chin-Sheng
Author-X-Name-Last: Huang
Author-Name: Jiang-Chuan Huang
Author-X-Name-First: Jiang-Chuan
Author-X-Name-Last: Huang
Title: Abnormal Dividend-Yield Returns and Investment Strategy
Abstract: 
 Using the Fama-French three-factor model, we set out in this study to verify the existence of abnormal dividend-yield returns in the Taiwan stock markets. The results of our tracking of the sources of abnormal returns indicate that (1) investors are strongly in favor of high-dividend-yield stocks during the first half of the year; and (2) the information effect of dividend announcements may be the major source of abnormal returns. Our forecasts based on dividend-yield forecasts indeed capture most of the abnormal returns. Finally, our results are found to be robust to a wide variety of portfolio formation settings.
Journal: Emerging Markets Finance and Trade
Pages: 544-553
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1095563
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1095563
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Template-Type: ReDIF-Article 1.0
Author-Name: Wen-Ching Chang
Author-X-Name-First: Wen-Ching
Author-X-Name-Last: Chang
Author-Name: Yahn-Shir Chen
Author-X-Name-First: Yahn-Shir
Author-X-Name-Last: Chen
Title: Shopping for Accounting Accruals and Restatements
Abstract: 
 We examine whether companies change their auditor to shop for accounting accruals and whether these shopped accruals are related to financial restatements. The results show that the negative discretionary accruals audited by successor auditors (1) are significantly higher than those audited by predecessor auditors and (2) increase the likelihood of income-decreasing restatements, suggesting understatements for these shopped negative discretionary accruals. These results are salient in companies switching from a Big 4 to a non-Big 4 auditor. Overall, companies shop for accounting accruals successfully, especially from a Big 4 to a non-Big 4 auditor, and consequently restate downward their reported earnings.
Journal: Emerging Markets Finance and Trade
Pages: 554-562
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1095564
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1095564
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Template-Type: ReDIF-Article 1.0
Author-Name: Nengsheng Fang
Author-X-Name-First: Nengsheng
Author-X-Name-Last: Fang
Author-Name: Wen Jiang
Author-X-Name-First: Wen
Author-X-Name-Last: Jiang
Author-Name: Ronghua Luo
Author-X-Name-First: Ronghua
Author-X-Name-Last: Luo
Title: Realized Semivariances and the Variation of Signed Jumps in China’s Stock Market
Abstract: 
 In this article, we explore the asymmetric predictability of realized semivariances and the difference of signed jump variations in China’s stock market with high frequency data from 2006 to 2013. Our empirical results show that (1) future volatilities are more (less) related to historical realized semivariances computed by negative returns than that calculated by positive returns in the short (long) run; (2) short-sale restriction might be one of the significant factors causing asymmetric effects in China’s stock market; and (3) realized semivariances and the difference of signed jump variations significantly overpass high-order realized moments in predicting the index returns.
Journal: Emerging Markets Finance and Trade
Pages: 563-586
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1095566
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1095566
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:3:p:563-586




Template-Type: ReDIF-Article 1.0
Author-Name: Guangming Gong
Author-X-Name-First: Guangming
Author-X-Name-Last: Gong
Author-Name: Si Xu
Author-X-Name-First: Si
Author-X-Name-Last: Xu
Author-Name: Xun Gong
Author-X-Name-First: Xun
Author-X-Name-Last: Gong
Title: Bond Covenants and the Cost of Debt: Evidence from China
Abstract: 
 We examine how the use of covenants in the bond contract affects the cost of debt by using a sample of Chinese firms. We find that (1) the use of financing-related and asset-sale covenants is negatively associated with the cost of debt; (2) the negative relations between financing-related and asset-sale covenants and the cost of debt are more pronounced when a firm’s agency conflict is severe or accounting quality is high; (3) the negative relations between financing-related and asset-sale covenants and the cost of debt are significantly intensified if the issuer is a state-owned enterprise (SOE).
Journal: Emerging Markets Finance and Trade
Pages: 587-610
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1095568
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1095568
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:3:p:587-610




Template-Type: ReDIF-Article 1.0
Author-Name: Zengji Song
Author-X-Name-First: Zengji
Author-X-Name-Last: Song
Author-Name: Abraham Y. Nahm
Author-X-Name-First: Abraham Y.
Author-X-Name-Last: Nahm
Author-Name: Zongyi Zhang
Author-X-Name-First: Zongyi
Author-X-Name-Last: Zhang
Title: Partial State Ownership, Political Connection, and Financing: Evidence from Chinese Publicly Listed Private Sector Enterprises
Abstract: 
 The government of China plays an important role in the external environment of private sector enterprises (PSEs), having a significant effect on their survival and development. Therefore, managing their relationship with the government becomes a key aspect of strategic decision-making and operating actions of PSEs. We extend the evidence of this by introducing a new dimension of political connection: partial state ownership of PSEs. Using a data set of 262 publically listed PSEs in China, we empirically investigate the effects of partial state ownership of PSEs on the access to bank loans.
Journal: Emerging Markets Finance and Trade
Pages: 611-628
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1097920
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1097920
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:3:p:611-628




Template-Type: ReDIF-Article 1.0
Author-Name: Liuyong Yang
Author-X-Name-First: Liuyong
Author-X-Name-Last: Yang
Author-Name: Weidi Liu
Author-X-Name-First: Weidi
Author-X-Name-Last: Liu
Title: Luck Versus Skill: Can Chinese Funds Beat the Market?
Abstract: 
 In this article, we examine luck versus skill in Chinese mutual fund performance. A bootstrap approach has been applied to 773 open-end equity funds over the period 2002–13. Both the analyses with a returns-based measure and a holdings-based measure suggest the same result: no fund in China can outperform the market. We also find that more growth funds have positive alphas, but the result is not statistically significant. For sub-periods, we find that compared with the period 2008–13 there are fewer unskilled managers than during the period 2002–7. The analyses with different bootstrap rules and different minimum data requirements suggest the same result.
Journal: Emerging Markets Finance and Trade
Pages: 629-643
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1097951
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1097951
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Template-Type: ReDIF-Article 1.0
Author-Name: Suduan Chen
Author-X-Name-First: Suduan
Author-X-Name-Last: Chen
Title: Seasoned Equity Offerings or Capital Deductions? The Reaction of Stock Prices: Evidence from Taiwan
Abstract: 
 This study explores the influence of the announcement of seasoned equity offerings (SEOs) and capital deductions on stock prices by listed and OTC companies on the Taiwan Stock Market. It applies the event study to examine stock price fluctuations and estimates the regression coefficient of the market model with generalized autoregressive conditional heteroscedasticity (GARCH) models. The empirical results show that despite different implications of SEOs and capital deductions, there is a positive and significant influence on average abnormal returns rate and average cumulative abnormal returns rate on stock prices during the short term, medium term, and the long term.
Journal: Emerging Markets Finance and Trade
Pages: 644-660
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1097991
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1097991
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:3:p:644-660




Template-Type: ReDIF-Article 1.0
Author-Name: Ming Fang
Author-X-Name-First: Ming
Author-X-Name-Last: Fang
Author-Name: Ming-Chieh Wang
Author-X-Name-First: Ming-Chieh
Author-X-Name-Last: Wang
Author-Name: Chiu-Lan Chang
Author-X-Name-First: Chiu-Lan
Author-X-Name-Last: Chang
Title: An Investigation of the Cross-Strait Economic Integration and Dependence of Stock Markets
Abstract: 
 In this article, the authors intend to investigate the cross-strait economic integration and the dependence of stock markets between Mainland China and Taiwan. The authors first identify a sequence of important events that have loosened policy restrictions on transportation, commerce, and communication between mainland China and Taiwan. The authors employ various dependence functions to examine the degrees of dependence with symmetric and asymmetric structures to estimate the effects of economic integration on the tail dependence for the major industries. The authors find the market and industrial dependence has significantly increased as well as the market index due to the tendency of the cross-strait economic integration.
Journal: Emerging Markets Finance and Trade
Pages: 661-669
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2015.1103124
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103124
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Template-Type: ReDIF-Article 1.0
Author-Name: Ching-Ping Wang
Author-X-Name-First: Ching-Ping
Author-X-Name-Last: Wang
Author-Name: Hung-Hsi Huang
Author-X-Name-First: Hung-Hsi
Author-X-Name-Last: Huang
Author-Name: Jin-Sheng Hu
Author-X-Name-First: Jin-Sheng
Author-X-Name-Last: Hu
Title: Reverse-Engineering and Real Options–Adjusted CAPM in the Taiwan Stock Market
Abstract: 
 Previous studies have addressed many anomalies that violate the capital asset pricing model (CAPM). However, recent studies have employed either the reverse-engineering (RE) approach or the options-adjusted approach to verify the validity of CAPM on the developed stock markets. This study simultaneously employs the two approaches on the Taiwan’s stock market and obtains a consistent result with those on the developed stock markets. Additionally, this study compares the predicting stock return ability among various regression models and anomaly variables. For completeness, the betas of CAPM and Fama–French three factors are adopted from the historical, Vasicek-adjusted, and time-varying conditional betas.
Journal: Emerging Markets Finance and Trade
Pages: 670-687
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2016.1193484
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1193484
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:3:p:670-687




Template-Type: ReDIF-Article 1.0
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Hongyan Geng
Author-X-Name-First: Hongyan
Author-X-Name-Last: Geng
Author-Name: Yu Gao
Author-X-Name-First: Yu
Author-X-Name-Last: Gao
Author-Name: Jerry W. Lin
Author-X-Name-First: Jerry W.
Author-X-Name-Last: Lin
Title: The Effects of Foreign Strategic Investors on Bank Prudential Behavior: Evidence from China
Abstract: 
 Using China’s data between 1995 and 2014, we employ the propensity score matching and difference in differences approaches to investigate the effects of foreign strategic investors (FSIs) on bank prudential behavior, and find the following results. First, lending behavior and reserve behavior become prudential after introducing FSIs. Second, FSIs assigning directors or managers could improve the bank’s prudence. Third, the effects of FSIs on bank prudence are weaker in state-owned banks than in non-state-owned banks. Finally, further analyses show that FSIs may reduce bank risk through improving prudential behavior, that is, prudential behavior is a mediator between FSIs and bank risk.
Journal: Emerging Markets Finance and Trade
Pages: 688-709
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2016.1254022
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1254022
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:3:p:688-709




Template-Type: ReDIF-Article 1.0
Author-Name: Teng Zhang
Author-X-Name-First: Teng
Author-X-Name-Last: Zhang
Author-Name: Yunong Li
Author-X-Name-First: Yunong
Author-X-Name-Last: Li
Title: Incomplete Exchange Rate Pass-Through: Evidence from Exchange Rate Reform in China
Abstract: 
 Exchange rate disconnect is one of the central puzzles in international macroeconomics. Recently there is a growing literature that studies the microeconomic foundations or mechanisms for incomplete exchange rate pass-through. However, the estimations of the exchange rate pass-through vary widely in the existing literature. Our article proposes the use of a policy-based instrumental variable for exchange rate, exploiting the exchange rate reform in China, and finds that 67% of the exchange rate pass-through into the f.o.b. export price of Chinese exports. This is in contrast with the almost full exchange rate pass-through using ordinary least squares (OLS) estimation. We further find that the export price of homogeneous goods, low-technology goods and goods supplied by domestic non-state-owned enterprises (non-SOEs) is more sensitive to exchange rate changes.
Journal: Emerging Markets Finance and Trade
Pages: 710-726
Issue: 3
Volume: 53
Year: 2017
Month: 3
X-DOI: 10.1080/1540496X.2016.1254066
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1254066
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:3:p:710-726




Template-Type: ReDIF-Article 1.0
Author-Name: May Hu
Author-X-Name-First: May
Author-X-Name-Last: Hu
Author-Name: Xiao Jun
Author-X-Name-First: Xiao
Author-X-Name-Last: Jun
Author-Name: Jingjing Yang
Author-X-Name-First: Jingjing
Author-X-Name-Last: Yang
Title: Management Trading in Chinese Entrepreneurial Firms on the ChiNext
Abstract: 
 We examine management trading in Chinese entrepreneurial firms on the ChiNext. We find that management shareholdings are considerably high, and executives tend to sell their shares after the IPOs on the ChiNext. The propensity for executives to sell shares is negatively correlated with the firms’ corporate governance and current operating cash flows, but the amount they sell is only positively correlated with the level of management holdings. Both the management selling decision and percentage of selling do not associate with firms’ earnings and sales growth. This suggests that managers are profit makers rather than informed traders in their selling activities on the ChiNext. We also find that the market reaction to management selling is substantially negative, which implies a herding effect of investors following executives to sell shares.
Journal: Emerging Markets Finance and Trade
Pages: S33-S45
Issue: S5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1026739
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026739
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S5:p:S33-S45




Template-Type: ReDIF-Article 1.0
Author-Name: Minhyuk Kim
Author-X-Name-First: Minhyuk
Author-X-Name-Last: Kim
Author-Name: Jinwoo Park
Author-X-Name-First: Jinwoo
Author-X-Name-Last: Park
Title: Individual Investor Sentiment and Stock Returns: Evidence from the Korean Stock Market
Abstract: 
 We investigate the dynamic relationship between individual investor sentiment and stock returns in the Korean stock market. The evidence indicates that individual investor sentiment has no significant explanatory power for cross-sectional stock returns. However, individual investors’ trades can move stock prices in certain stocks by their contrarian behavior, which leads them to implicitly provide liquidity to other market participants. In addition, individual investors earn a small market-adjusted excess return in the short-horizon future as compensation for liquidity provision. Our findings show that short-horizon return predictability of individual investors does not come from their private information.
Journal: Emerging Markets Finance and Trade
Pages: S1-S20
Issue: S5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1062305
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1062305
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S5:p:S1-S20




Template-Type: ReDIF-Article 1.0
Author-Name: Hong Zhang
Author-X-Name-First: Hong
Author-X-Name-Last: Zhang
Author-Name: Shuai Gao
Author-X-Name-First: Shuai
Author-X-Name-Last: Gao
Author-Name: Michael J. Seiler
Author-X-Name-First: Michael J.
Author-X-Name-Last: Seiler
Author-Name: Yang Zhang
Author-X-Name-First: Yang
Author-X-Name-Last: Zhang
Title: The Effect of Credit Crunches and Equity Financing Restrictions on the Capital Structure Adjustments of Chinese Listed Real Estate Companies
Abstract: 
 We construct a natural experiment framework based on a partial adjustment model to analyze the effect of credit crunches and equity financing regulations on capital structure adjustments made by Chinese listed real estate companies in the period 2001–12. The results indicate that when a credit crunch occurs, upward capital structure adjustment speeds significantly slow, while the speed of downward adjustments does not significantly change. Moreover, equity financing regulation has little effect on downward capital structure adjustment speeds but has a significant effect on upward capital structure adjustment speeds.
Journal: Emerging Markets Finance and Trade
Pages: S21-S32
Issue: S5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1062306
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1062306
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S5:p:S21-S32




Template-Type: ReDIF-Article 1.0
Author-Name: Daecheon Yang
Author-X-Name-First: Daecheon
Author-X-Name-Last: Yang
Title: Mergers, CEO Hubris, and Cost Stickiness
Abstract: 
 Hubris theory documents that bidder CEOs are overconfident about deal synergies without fearing the winner’s curse. We examine the role of bidder CEOs’ hubris over merger synergies on cost stickiness in the rapidly growing Korean market. Bidder CEOs who overestimate the merged firm’s growth retain more underutilized-capacity when sales decrease than do CEOs of stand-alone firms. Optimistic bidder CEOs induce greater cost stickiness through strong and irrational self-beliefs than do optimistic nonbidder CEOs. Given the learning and self-attribution effect, optimistic bidder CEOs who experience more successful operating synergies induce stickier costs than less successful CEOs with simply optimistic views. Implications for possible overslack and cost locking from bidder CEOs’ hubris are also discussed.
Journal: Emerging Markets Finance and Trade
Pages: S46-S63
Issue: S5
Volume: 51
Year: 2015
Month: 9
X-DOI: 10.1080/1540496X.2015.1062313
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1062313
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S5:p:S46-S63




Template-Type: ReDIF-Article 1.0
Author-Name: Iván Kataryniuk
Author-X-Name-First: Iván
Author-X-Name-Last: Kataryniuk
Author-Name: Jaime Martínez-Martín
Author-X-Name-First: Jaime
Author-X-Name-Last: Martínez-Martín
Title: TFP Growth and Commodity Prices in Emerging Economies
Abstract: 
 In this article we aim at empirically testing cross-country impacts of commodity prices shocks to aggregate Total Factor Productivity (TFP) growth for a sample of emerging economies. Under a growth accounting framework, we estimate country-specific TFP growth (1992–2014) and select their robust determinants by means of a Bayesian Model Averaging approach. To identify the effects of structural shocks, we propose a panel Bayesian VAR and compute cyclically-adjusted TFP growth net of demand shocks (i.e., output gap) and commodity prices. Our results suggest that: (i) the relationship of commodity prices and TFP growth has been very high in small commodity-exporting economies (i.e., an increase of 10% commodity prices is associated with a sizable expansion of TFP growth in a year for an average commodity exporter); (ii) albeit our evidence is not sufficient to empirically distinguish among theoretical explanations, our results favor an interpretation that weights short-term effects of commodity prices on productivity, either through transitional dynamics to the manufacturing sector or through mismeasurement of TFP; and (iii) cyclically adjusted TFP growth highlights the importance of negative supply shocks in commodity-exporting countries. All in all, much of the increase in TFP growth in the last decade was related to a favorable cyclical environment, a result that may raise significant policy implications for commodity-dependent economies.
Journal: Emerging Markets Finance and Trade
Pages: 2211-2229
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1520089
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1520089
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Template-Type: ReDIF-Article 1.0
Author-Name: Shuzhong Ma
Author-X-Name-First: Shuzhong
Author-X-Name-Last: Ma
Author-Name: Yinfeng Liang
Author-X-Name-First: Yinfeng
Author-X-Name-Last: Liang
Author-Name: Hongsheng Zhang
Author-X-Name-First: Hongsheng
Author-X-Name-Last: Zhang
Title: The Employment Effects of Global Value Chains
Abstract: 
 Due to advances of information, communication, and technology and reductions in trade barriers, countries are increasingly deeply engaged in global value chains (GVCs). In the article, we theoretically and empirically show that a country’s position in GVCs has significantly positive effects on its employment level and structure. Countries located in a higher position in GVCs induce a larger demand for high-skilled labors and a more perfect employment structure. Empirical results further reveal that the position in GVCs will help improve employment structure in both developed countries and developing countries, and the employment effects of GVCs are statistically larger for capital-intensive industries than for labor-intensive industries. Moreover, by distinguishing international and domestic division of labor, we find that the employment effects of domestic value chains are larger than foreign value chains.
Journal: Emerging Markets Finance and Trade
Pages: 2230-2253
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1520698
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1520698
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2230-2253




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoqian Wen
Author-X-Name-First: Xiaoqian
Author-X-Name-Last: Wen
Author-Name: Elie Bouri
Author-X-Name-First: Elie
Author-X-Name-Last: Bouri
Author-Name: Hua Cheng
Author-X-Name-First: Hua
Author-X-Name-Last: Cheng
Title: The Crude Oil–Stock Market Dependence and Its Determinants: Evidence from Emerging Economies
Abstract: 
 This article uses dependence-switching copulas and time-varying single copulas to characterize the world oil–stock market dependence in a broad range of emerging economies, and it then conducts a regression analysis to explore the determinants of the market dependence patterns. Our results support a positive crude oil-emerging stock market link overall. The regression results show that oil return volatility, country-specific variables (i.e., stock market volatility, petroleum production growth), and US economic policy uncertainty have positive effects on the oil–stock dependence. However, a strong US economy tends to decrease the oil–stock dependence. The robustness of these findings is confirmed.
Journal: Emerging Markets Finance and Trade
Pages: 2254-2274
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1522247
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1522247
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2254-2274




Template-Type: ReDIF-Article 1.0
Author-Name: Abu S. Amin
Author-X-Name-First: Abu S.
Author-X-Name-Last: Amin
Author-Name: Mahmood Osman Imam
Author-X-Name-First: Mahmood Osman
Author-X-Name-Last: Imam
Author-Name: Mahfuja Malik
Author-X-Name-First: Mahfuja
Author-X-Name-Last: Malik
Title: Regulations, Governance, and Resolution of Non-Performing Loan: Evidence from an Emerging Economy
Abstract: 
 How do banks resolve a severe bad loan problem in a capital-constrained, low-income economy when a government bailout is not an option? We address this question by examining new evidence from a sharp decline in bad loan ratios in a panel of conventional commercial banks in Bangladesh. On the aggregate level, the bad loan ratio in this market has dropped from 41% in 1999 to only 10% in 2012. We find that at a micro level, this dramatic improvement is associated with bank management quality and internal governance that were substantially enhanced during a decade of large-scale regulatory reforms. The bank-level findings persist even after controlling for market monitoring, bank- and industry-level factors, and macroeconomic variables. Both economic growth and financial development paved the way for banks operating in this macroeconomic environment to reduce non-performing loans over time.
Journal: Emerging Markets Finance and Trade
Pages: 2275-2297
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1523788
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1523788
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2275-2297




Template-Type: ReDIF-Article 1.0
Author-Name: Tamara V. Teplova
Author-X-Name-First: Tamara V.
Author-X-Name-Last: Teplova
Author-Name: Tatiana V. Sokolova
Author-X-Name-First: Tatiana V.
Author-X-Name-Last: Sokolova
Title: Building the Index of Efficiency of FDI Transformation: Economic Development and Intellectual Capital
Abstract: 
 We propose an original approach to constructing an index of efficiency of FDI transformation into steady economic and innovation growth. As factors of efficient transformation we consider many institutional indicators. We rank countries on the sample of 31 developed and developing economies. The results of bivariate and multivariate Granger tests show that FDI causes economic development and intellectual capital in a number of indicators. With nonparametric DEA method and Malmquist Index we identify countries at the efficiency frontier by the quality of FDI management. Change in efficiency over time along the IC growth path is highly influenced by government effectiveness.
Journal: Emerging Markets Finance and Trade
Pages: 2164-2184
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1525356
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1525356
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2164-2184




Template-Type: ReDIF-Article 1.0
Author-Name: Kiridaran Kanagaretnam
Author-X-Name-First: Kiridaran
Author-X-Name-Last: Kanagaretnam
Author-Name: Zongfeng Xiu
Author-X-Name-First: Zongfeng
Author-X-Name-Last: Xiu
Author-Name: Zejiang Zhou
Author-X-Name-First: Zejiang
Author-X-Name-Last: Zhou
Title: Does Culture Matter for Corporate Philanthropic Giving?
Abstract: 
 This article explores cultural influence on corporate philanthropic giving, employing the case of merchant guilds culture in China and it further investigates the moderating effect of the types of corporate ownership. Our evidence suggests that merchant guilds culture can facilitate the extent and likelihood of corporate philanthropic giving, which is in accordance with the intuition that merchant guilds culture, which is rooted in Confucianism culture of China, has generally been associated with altruism. Consistent with our second prediction, we find that the relationship between merchant guilds culture and corporate philanthropic giving is more pronounced for privately owned firms than state-owned firms. These results are robust to several sensitivity checks, including using alternate variables to proxy for merchant guilds culture and corporate charitable giving, controlling for media coverage, and checking for potential endogeneity issues. This article provides a new perspective on the domestic culture through an empirical model that responds to a strong concern placed on merchant guilds culture and corporate philanthropic giving.
Journal: Emerging Markets Finance and Trade
Pages: 2365-2387
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1526077
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1526077
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2365-2387




Template-Type: ReDIF-Article 1.0
Author-Name: Haixin Zhang
Author-X-Name-First: Haixin
Author-X-Name-Last: Zhang
Author-Name: Donghong Ding
Author-X-Name-First: Donghong
Author-X-Name-Last: Ding
Author-Name: Lili Ke
Author-X-Name-First: Lili
Author-X-Name-Last: Ke
Title: The Effect of R&D Input and Financial Agglomeration on the Growth Private Enterprises: Evidence from Chinese Manufacturing Industry
Abstract: 
 Technological innovation is an important factor in the growth of private enterprises, and technological innovation requires strong financial support. How to use financial tools to promote research and development (R&D) input at private enterprises has become an urgent issue. This article analyzes the influence of provincial and prefectural financial agglomeration and R&D input on the growth of private enterprises, using panel data on Chinese private enterprises in manufacturing from 2007 to 2015. We reached the following conclusions. First, the promotion of financial agglomeration and R&D input have a positive impact on the growth of private enterprises. Second, the impact of financial agglomeration on private enterprises is inversely related to the scale of private enterprises—that is, the larger the scale of enterprises, the smaller the impact of financial agglomeration on the growth of private enterprises. Third, financial agglomeration did not promote growth at private enterprises by increasing R&D input. Financial agglomeration can increase the absolute amount of R&D input; however, it will reduce the intensity of R&D input. Financial agglomeration, R&D input, and the growth of enterprises do not create their own virtuous circle, and they fail to provide financial support for technological innovation.
Journal: Emerging Markets Finance and Trade
Pages: 2298-2313
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1526668
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1526668
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2298-2313




Template-Type: ReDIF-Article 1.0
Author-Name: Juyoung Cheong
Author-X-Name-First: Juyoung
Author-X-Name-Last: Cheong
Author-Name: Woochan Kim
Author-X-Name-First: Woochan
Author-X-Name-Last: Kim
Title: Family Pay Premium in Large Business Group Firms
Abstract: 
 In this study, we empirically test the predictions that the family pay discount documented in the literature for U.S. firms does not hold in a business group setting and that this is attributable to the lack of monitoring by other family members. We find evidence consistent with these predictions using Korean data. First, family executives receive higher compensation than non-family executives (i.e., the family pay premium) in business group firms (chaebols). Second, we find that the pay offered to family executives tends to be high when the proportion of shares held by other family members is low, which is typically the case in business group firms.
Journal: Emerging Markets Finance and Trade
Pages: 2314-2333
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1528544
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1528544
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2314-2333




Template-Type: ReDIF-Article 1.0
Author-Name: Shaofang Li
Author-X-Name-First: Shaofang
Author-X-Name-Last: Li
Title: The Impact of Bank Regulation and Supervision on Competition: Evidence from Emerging Economies
Abstract: 
 This article empirically investigates the influence of bank regulation and supervision on the competitive landscape in banking systems. Using the information on 23 emerging economies from 1996 to 2016, we confirm that banking systems with fewer activity restrictions and (foreign) bank entry barriers are more competitive. Greater capital strictness and official supervision enhance competition in the banking industry. Our findings also highlight that greater explicit guidelines on asset diversification and deposit insurance coverage and lower private-sector monitoring are associated with more intensive bank competition. A further examination reveals that, during a bank crisis, the relationship between activity restrictions, entry barriers, diversification guidelines, and competition become more pronounced, and the positive effect of foreign bank limitations, capital strictness, official supervision, and private monitoring on competitive conditions become less effective. Finally, we divide our sample into foreign banks and domestic banks and find that foreign banks are more sensitive to official supervision and private monitoring, and less sensitive to activity restrictions, foreign bank limitations, and diversification guidelines.
Journal: Emerging Markets Finance and Trade
Pages: 2334-2364
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1547191
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1547191
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2334-2364




Template-Type: ReDIF-Article 1.0
Author-Name: Maria Semenova
Author-X-Name-First: Maria
Author-X-Name-Last: Semenova
Author-Name: Andrey Shapkin
Author-X-Name-First: Andrey
Author-X-Name-Last: Shapkin
Title: Currency Shifts as a Market Discipline Device: The Case of the Russian Market for Personal Deposits
Abstract: 
 In developing economies, which rely considerably on the dollar and euro, changes in the currency structure of bank deposits may be strategic and may work as an additional market discipline mechanism. This study sheds light on this currency shifts mechanism in the Russian market for personal deposits. Using data on 900 banks for 2005–2015, we show that less risky banks demonstrate higher growth in the share of deposits denominated in foreign currency (FX), even when the exchange rate volatility component is extracted. The shifts are supported by the quantity-based mechanism as more reliable banks enjoy higher FX deposit growth.
Journal: Emerging Markets Finance and Trade
Pages: 2149-2163
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1562890
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562890
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2149-2163




Template-Type: ReDIF-Article 1.0
Author-Name: Bojan Shimbov
Author-X-Name-First: Bojan
Author-X-Name-Last: Shimbov
Author-Name: Maite Alguacil
Author-X-Name-First: Maite
Author-X-Name-Last: Alguacil
Author-Name: Celestino Suárez
Author-X-Name-First: Celestino
Author-X-Name-Last: Suárez
Title: Export Structure Upgrading and Economic Growth in the Western Balkan Countries
Abstract: 
 In this paper, we seek to analyze the impact that the ability to produce more sophisticated goods has on the economic performance of the Western Balkan region and to determine the factors fostering this process. To do so, we elaborate an export sophistication index, à la Hausmann. The outcomes obtained show that export sophistication has a positive and significant effect on growth in these economies. Additionally, we found that this process is driven more by the sophistication in medium-skill and technology-intensive manufactures goods rather than through sophistication in high-skill goods. Our findings also confirm that a greater participation in international production networks and a better institutional environment stimulates the upgrading of exports, and the subsequent economic growth of these economies.
Journal: Emerging Markets Finance and Trade
Pages: 2185-2210
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2018.1563538
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1563538
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2185-2210




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: Guest Editors’ Introduction: Structural Transformation, Foreign Direct Investment, and Institutional Development
Journal: Emerging Markets Finance and Trade
Pages: 2147-2148
Issue: 10
Volume: 55
Year: 2019
Month: 8
X-DOI: 10.1080/1540496X.2019.1583486
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1583486
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2147-2148




Template-Type: ReDIF-Article 1.0
Author-Name: Jinghai Zheng
Author-X-Name-First: Jinghai
Author-X-Name-Last: Zheng
Author-Name: Liming Wang
Author-X-Name-First: Liming
Author-X-Name-Last: Wang
Author-Name: Ke Tang
Author-X-Name-First: Ke
Author-X-Name-Last: Tang
Title: Guest Editors’ Introduction: Chinese Exploration and World Economic Order
Journal: Emerging Markets Finance and Trade
Pages: 1-3
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013837
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013837
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Template-Type: ReDIF-Article 1.0
Author-Name: Jinghai Zheng
Author-X-Name-First: Jinghai
Author-X-Name-Last: Zheng
Author-Name: Liming Wang
Author-X-Name-First: Liming
Author-X-Name-Last: Wang
Title: Institutions and Development: The Case of China in Comparative Perspectives
Abstract: 
 The limited explanatory power of conventional wisdom in understanding the “China miracle“ calls for theories with more universal appeal. The theories might have been considerably enriched if sufficient credit had been given to China’s contribution to the evolution of the modern state in human history. Using conventional wisdom as a benchmark, we demonstrate that an analytical framework might be developed to accommodate characteristics of Chinese society with its unique history and cultural values. Our preliminary results indicate that it was perhaps the set of values emphasizing personal development and rights to property that have enabled the China miracle experienced over the past three decades. Long-standing issues such as excessive reliance on the state for the provision of public goods and omnipresent government control of resource industries are largely consistent with China’s record of civilization state development during various ancient dynasties.
Journal: Emerging Markets Finance and Trade
Pages: 4-20
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013840
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013840
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Template-Type: ReDIF-Article 1.0
Author-Name: Judith Clifton
Author-X-Name-First: Judith
Author-X-Name-Last: Clifton
Author-Name: Daniel Díaz-Fuentes
Author-X-Name-First: Daniel
Author-X-Name-Last: Díaz-Fuentes
Title: Is the Organisation for Economic Co-operation and Development Ready for China?
Abstract: 
 The re-emergence of China as a global economic power has intensified calls for the urgent reform of Western-dominated international organizations. We evaluate efforts by the Organisation for Economic Co-operation and Development (OECD) to adapt to the challenge of China. From the first decade of the 2000s, the OECD has undertaken reforms to boost its significance as a key policy actor in the global economy. Part of this effort involves bringing China closer to the organization. To date, only limited progress has been made. We set out three bold policy reforms the OECD could implement that would deepen the OECD’s relationship with China as well as with other emerging economies.
Journal: Emerging Markets Finance and Trade
Pages: 21-36
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013842
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013842
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Template-Type: ReDIF-Article 1.0
Author-Name: Wei Tan
Author-X-Name-First: Wei
Author-X-Name-Last: Tan
Author-Name: Su Sun
Author-X-Name-First: Su
Author-X-Name-Last: Sun
Author-Name: Sebastien Evrard
Author-X-Name-First: Sebastien
Author-X-Name-Last: Evrard
Title: China’s Antitrust Policy: Recent Developments and Decision Patterns
Abstract: 
 In this paper, we review recent antitrust policy developments in China. First, we use a sample of all merger cases reviewed by the Ministry of Commerce (MOFCOM) from August 2008 to September 2012 to provide an econometric analysis of merger review patterns. We find that MOFCOM tends to impose restrictions on mergers involving large corporations and does not distinguish between horizontal mergers and vertical and conglomerate mergers. In addition, European firms and U.S. firms face higher chances of restrictions than do firms from other countries. Finally, we provide a qualitative analysis of the investigations against price agreements.
Journal: Emerging Markets Finance and Trade
Pages: 37-50
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013847
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013847
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S6:p:37-50




Template-Type: ReDIF-Article 1.0
Author-Name: Hans Hanpu Tung
Author-X-Name-First: Hans
Author-X-Name-Last: Hanpu Tung
Title: Dynamic Career Incentive Versus Policy Rent-Seeking in Institutionalized Authoritarian Regimes: Testing a Long-Run Model of Trade Policy Determination in China
Abstract: 
 In this paper, I study the effect of political elites’ career incentives on China’s trade policy formation. I propose a theoretical dynamic view in which China’s authoritarian leaders can preempt protectionist actions of their selectorate (bureaucrats) by offering them future promotion opportunities within the authoritarian hierarchy as long as the leaders can credibly commit to these political promises. Drawing on a database of China’s sectors for 1999–2007, the empirical results support the dynamic perspective that while political organization still matters for China’s trade policy outcomes, it is less likely for a sector with a higher promotion expectation score to get politically organized.
Journal: Emerging Markets Finance and Trade
Pages: 51-68
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013848
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013848
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S6:p:51-68




Template-Type: ReDIF-Article 1.0
Author-Name: Fuxiu Jiang
Author-X-Name-First: Fuxiu
Author-X-Name-Last: Jiang
Author-Name: Min Zhang
Author-X-Name-First: Min
Author-X-Name-Last: Zhang
Author-Name: Wen Zhang
Author-X-Name-First: Wen
Author-X-Name-Last: Zhang
Author-Name: Xiaoqiang Zhi
Author-X-Name-First: Xiaoqiang
Author-X-Name-Last: Zhi
Title: Regional Unemployment and the Restructuring of Distressed State-owned Enterprises: Evidence from China
Abstract: 
 Using Chinese listed companies as the sample, we investigate the effects and corresponding consequences of regional unemployment rates on the restructuring behavior of distressed state-owned enterprises (SOEs). We find that layoffs and asset downsizing of local SOEs will be limited greatly when the unemployment rates of the areas where SOEs are located are high, even though these firms are already in distress. Additional evidence shows that this kind of limitation causes these firms to show a long-term decline in performance. The CEOs of these firms, however, are not easily dismissed after the distress. These results provide empirical support for the “grabbing hand“ theory.
Journal: Emerging Markets Finance and Trade
Pages: 69-86
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013850
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013850
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S6:p:69-86




Template-Type: ReDIF-Article 1.0
Author-Name: Xiangbo Liu
Author-X-Name-First: Xiangbo
Author-X-Name-Last: Liu
Author-Name: Yu Luo
Author-X-Name-First: Yu
Author-X-Name-Last: Luo
Author-Name: Zhigang Qiu
Author-X-Name-First: Zhigang
Author-X-Name-Last: Qiu
Author-Name: Ru Zhang
Author-X-Name-First: Ru
Author-X-Name-Last: Zhang
Title: FDI and Economic Development: Evidence from China’s Regional Growth
Abstract: 
 Using China’s provincial data for 1978–2011, we examine the channels through which foreign direct investment (FDI) affects China’s regional growth and inequality. We find that FDI facilitates growth by enhancing physical and human capital accumulation. FDI also has a negative effect on output growth by crowding out domestic investment, reducing local government revenue, and increasing the opportunity cost of technology innovations. The imbalance of FDI inflows among regions widens the interregional growth gap through its effect on physical capital accumulation and technology progress while it narrows the growth gap by affecting the level of higher education, industrial structure, government revenue, degree of openness, and trade surplus.
Journal: Emerging Markets Finance and Trade
Pages: 87-106
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013852
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013852
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S6:p:87-106




Template-Type: ReDIF-Article 1.0
Author-Name: Hau Chyi
Author-X-Name-First: Hau
Author-X-Name-Last: Chyi
Author-Name: Bo Zhou
Author-X-Name-First: Bo
Author-X-Name-Last: Zhou
Author-Name: Shenyi Jiang
Author-X-Name-First: Shenyi
Author-X-Name-Last: Jiang
Author-Name: Wei Sun
Author-X-Name-First: Wei
Author-X-Name-Last: Sun
Title: An Estimation of the Intergenerational Income Elasticity of China
Abstract: 
 Using 1989–2006 waves of the China Health and Nutrition Survey data, we estimate the intergenerational income elasticity (IIE) of China. We find that the lower bound of the IIE is 0.491 using the son’s latest observed income and his father’s income averaged over three periods. We use the father’s number of years of education as an instrumental variable for his permanent income to derive the upper bound of the IIE, which is 0.556. We find that the intergenerational income mobility of rural China is higher than that in urban areas.
Journal: Emerging Markets Finance and Trade
Pages: 122-136
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013853
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013853
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S6:p:122-136




Template-Type: ReDIF-Article 1.0
Author-Name: Taeyoon Sung
Author-X-Name-First: Taeyoon
Author-X-Name-Last: Sung
Author-Name: Danbee Park
Author-X-Name-First: Danbee
Author-X-Name-Last: Park
Author-Name: Ki Young Park
Author-X-Name-First: Ki Young
Author-X-Name-Last: Park
Title: Short-Term External Debt and Foreign Exchange Rate Volatility in Emerging Economies: Evidence from the Korea Market
Abstract: 
 We empirically analyze the main determinants of foreign exchange rate (FX) volatility in emerging market economies using the data of Korea corporations and financial institutions. We find that short-term external debt is more important than trading volume of foreign investors in explaining FX volatility. Our results suggest that short-term debt-controlling measures, such as a tax levy on short-term borrowing, can be more effective in moderating FX volatility than can the measures affecting the trading volume, such as a Tobin tax.
Journal: Emerging Markets Finance and Trade
Pages: 138-157
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013854
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013854
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S6:p:138-157




Template-Type: ReDIF-Article 1.0
Author-Name: Zhuwei Li
Author-X-Name-First: Zhuwei
Author-X-Name-Last: Li
Author-Name: Yongdong Shi
Author-X-Name-First: Yongdong
Author-X-Name-Last: Shi
Author-Name: Wei Chen
Author-X-Name-First: Wei
Author-X-Name-Last: Chen
Author-Name: Mohamed Kargbo
Author-X-Name-First: Mohamed
Author-X-Name-Last: Kargbo
Title: Do Attention-Grabbing Stocks Attract All Investors? Evidence from China
Abstract: 
 Using a unique and comprehensive data set of China’s Shenzhen Stock Exchange, we test whether all investors adopt attention-grabbing stocks. Only the less-wealthy individuals, the Small Group, are found to have the tendency to pursue attention-grabbing stocks, such as abnormal-volume stocks, extreme-return stocks, and initial public offering stocks. By contrast, wealthy individuals, such as the Middle and Large Groups, are the sellers of attention-grabbing stocks and prefer non-attention-grabbing stocks, thereby exhibiting a behavior resembling that of institutional investors. The wealth levels of individual investors may account for such heterogeneous trading behavior. Heterogeneous trading behavior may address one reason why only the less-wealthy individuals do poorly in China’s stock market. Accordingly, we suggest that the Small Group manage the stock selection problem through consultancy with investment institutions.
Journal: Emerging Markets Finance and Trade
Pages: 158-183
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013856
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013856
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S6:p:158-183




Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Ping Cheng
Author-X-Name-First: Cheng-Ping
Author-X-Name-Last: Cheng
Author-Name: Lien-Wen Liang
Author-X-Name-First: Lien-Wen
Author-X-Name-Last: Liang
Author-Name: Chen-Ta Huang
Author-X-Name-First: Chen-Ta
Author-X-Name-Last: Huang
Title: Effect of Internationalization on the Cost Efficiency of Taiwan’s Banks
Abstract: 
 We focus on the effect of internationalization on the cost efficiency of banks by studying Taiwan as a sample for developing countries. We find that (1) increasing overseas businesses and foreign exchange deposits increases cost efficiency; (2) expanding offshore banking units increases bank efficiency; and (3) the profitability of a bank’s overseas branch is not a critical factor behind the differences in cost efficiency across both financial holding company (FHC) banks and non-financial holding company (non-FHC) banks. Finally, our metafrontier empirical results illustrate that FHC banks in Taiwan show better technical performance in cost control than non-FHC banks.
Journal: Emerging Markets Finance and Trade
Pages: 204-228
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013857
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013857
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Template-Type: ReDIF-Article 1.0
Author-Name: Yan-Leung Cheung
Author-X-Name-First: Yan-Leung
Author-X-Name-Last: Cheung
Author-Name: Xuandong Luo
Author-X-Name-First: Xuandong
Author-X-Name-Last: Luo
Author-Name: Weiqiang Tan
Author-X-Name-First: Weiqiang
Author-X-Name-Last: Tan
Author-Name: Tusheng Xiao
Author-X-Name-First: Tusheng
Author-X-Name-Last: Xiao
Title: Management Earnings Forecasts, Earnings Announcements, and Institutional Trading in China
Abstract: 
 In this study, we investigate the trading behavior of institutional investors in China according to management earnings forecasts (MEFs) and earnings announcements (EAs). MEFs are mandatory under the stringent regulatory framework in China. We find evidence that both MEFs and EAs have an effect on the market. However, MEFs have a bigger effect on the market than do EAs. According to a sample of semiannual observations of firms from 2003 to 2008, we find that changes in the stock ownership of institutions are positively associated with EAs but not significantly associated with MEFs. When we further examine the relations between institutional characteristics and trading strategies, we find that growth funds exploit the arbitrage opportunity of MEFs.
Journal: Emerging Markets Finance and Trade
Pages: 184-203
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013858
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013858
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Template-Type: ReDIF-Article 1.0
Author-Name: Yanqing Jiang
Author-X-Name-First: Yanqing
Author-X-Name-Last: Jiang
Title: Potential Spatial Labor and Human Capital Mobility in China: Evidence from College Admissions Under the National College Entrance Examination System
Abstract: 
 Higher education in China plays an important role in promoting labor and human capital mobility. In this paper, I empirically address the issue of regional disparities, college admissions under the National College Entrance Examination (CEE) system, and potential interregional labor and human capital mobility in China. The results show that examinees from western provinces have a strong preference for coastal universities, compared with examinees from central provinces. College admissions in China then seem to have a stronger effect on potential labor and human capital movement from the western to the coastal regions than from the central to the coastal regions.
Journal: Emerging Markets Finance and Trade
Pages: 107-121
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1013861
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013861
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Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Special Section Introduction: Market Volatility, Trading Behavior, and Bank Efficiency in Asian Markets
Journal: Emerging Markets Finance and Trade
Pages: 137-137
Issue: S6
Volume: 50
Year: 2014
Month: 11
X-DOI: 10.1080/1540496X.2014.1021645
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1021645
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobo Wu
Author-X-Name-First: Xiaobo
Author-X-Name-Last: Wu
Author-Name: Ziyi Zhao
Author-X-Name-First: Ziyi
Author-X-Name-Last: Zhao
Author-Name: Banghao Zhou
Author-X-Name-First: Banghao
Author-X-Name-Last: Zhou
Title: Legitimacy in Adaptive Business Model Innovation: An Investigation of Academic Ebook Platforms in China
Abstract: 
 The purpose of this research is to investigate the importance and influence of seeking legitimacy from the value network for adaptive business model innovation in emerging markets. Drawing on institutional theory, it is believed that legitimacy can mitigate environmental uncertainties and risks, and help firms to survive and prosper. However, little is known about the role played by legitimacy in firms&#x2019; business model innovation. This article introduces the concept of legitimacy to examine how adaptive business model innovation responding to exogenous threats in emerging markets. By using the framework of value network, we employ comparative case studies of three foreign academic ebook platforms in China and investigate two types of adaptive business model innovation driven by legitimacy needs. Furthermore, we elucidate regulative, normative, and cognitive legitimacy in business model innovation and trace its origins, including regulatory authorities, partners, customers, and, in some cases, parent companies. Finally, we relate legitimacy seeking to adaptive business model innovation and elaborate on the process of how legitimacy needs motivate adaptive business model innovation, which would defend firms&#x2019; survival and growth in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 719-742
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1429261
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1429261
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Template-Type: ReDIF-Article 1.0
Author-Name: Jian Du
Author-X-Name-First: Jian
Author-X-Name-Last: Du
Author-Name: Xiaoran Chang
Author-X-Name-First: Xiaoran
Author-X-Name-Last: Chang
Author-Name: Xiaobo Wu
Author-X-Name-First: Xiaobo
Author-X-Name-Last: Wu
Title: The Strategic Fit of International Expansion Between Temporal and Spatial Dimensions: Evidence from Chinese MNEs
Abstract: 
 From the perspective of strategic fit, integrating time compression diseconomies with knowledge-based view, and adopting multi-stage design, this article explores the U-shaped moderating effect of geographic diversity of international expansion on the relationship between speed and MNE&#x2019;s performance. Using a longitudinal study of 234 Chinese listed firms from 2008 to 2014, this study finds that the negative effect of speed on MNE&#x2019;s performance is weakest when the spatial distribution is employed moderately. Therefore, the strategic fit between temporal and spatial of international expansion is important for increasing MNE&#x2019;s performance.
Journal: Emerging Markets Finance and Trade
Pages: 743-758
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1471682
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1471682
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Template-Type: ReDIF-Article 1.0
Author-Name: Delin Yang
Author-X-Name-First: Delin
Author-X-Name-Last: Yang
Author-Name: Xiao Hu
Author-X-Name-First: Xiao
Author-X-Name-Last: Hu
Author-Name: Banggang Wu
Author-X-Name-First: Banggang
Author-X-Name-Last: Wu
Author-Name: Zhenzhen Xie
Author-X-Name-First: Zhenzhen
Author-X-Name-Last: Xie
Title: Do Better-Networked Venture Capital Firms Always Enjoy Higher Investment Performance? The Contingent Role of China&#x2019;s Institutional Changes
Abstract: 
 By combining the two perspectives of social networks and institutional theory, this article explores the influence of venture capital (VC) networks on investment performance against the background of China's institutional changes. This article uses the dynamic network analysis approach to conduct empirical research on 6498 investment events in China from 2008 to 2014. Although our results support previous studies regarding the higher investment performance of better-networked VCs, we further find that China&#x2019;s institutional changes have significant moderating effects on the above relationship. Specifically, in the early periods of change with high levels of voids in institutional environments, the reduction of institutional voids brought by institutional improvement decrease the likelihood of better-networked VCs achieving higher investment performance. However, when better institutions with fewer voids are built, the positive influence of VC networks will begin to increase as institutional voids are further reduced. The results are robust across different samples, econometric models, and measures of dependent variables and explanatory variables.
Journal: Emerging Markets Finance and Trade
Pages: 759-780
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1485096
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1485096
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuli Zhang
Author-X-Name-First: Yuli
Author-X-Name-Last: Zhang
Author-Name: Lianguang Cui
Author-X-Name-First: Lianguang
Author-X-Name-Last: Cui
Author-Name: Guangqi Zhang
Author-X-Name-First: Guangqi
Author-X-Name-Last: Zhang
Author-Name: Saras Sarasvathy
Author-X-Name-First: Saras
Author-X-Name-Last: Sarasvathy
Author-Name: Ramesh Anusha
Author-X-Name-First: Ramesh
Author-X-Name-Last: Anusha
Title: An Exploratory Study of Antecedents of Entrepreneurial Decision-Making Logics: The Role of Self-Efficacy, Optimism, and Perspective Taking
Abstract: 
 This study explores the impacts of psychological factors on entrepreneurs&#x2019; preferences for causal and effectual decision-making logics. Data were collected in the USA and China. The research findings suggest that self-efficacy was positively related to the control decision-making logic and the prediction decision-making logic both in the USA and China. Optimism was negatively related to the prediction decision-making logic in the USA while there was no significant relationship between optimism and the prediction decision-making logic in China. We also found that perspective taking was positively related to the prediction decision-making logic both in the USA and China. Meanwhile, perspective taking was positively related to the control decision-making logic in China. Our findings indicate that psychological factors have impacts on entrepreneurs&#x2019; preferences for causal and effectual decision-making logics. Our research contributes to extend effectuation by exploring psychological antecedents and demonstrating that effectual logics can also stem from an increase in psychological factors.
Journal: Emerging Markets Finance and Trade
Pages: 781-794
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1478283
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1478283
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Template-Type: ReDIF-Article 1.0
Author-Name: Junguang Gao
Author-X-Name-First: Junguang
Author-X-Name-Last: Gao
Author-Name: Thomas Sch&#xF8;tt
Author-X-Name-First: Thomas
Author-X-Name-Last: Sch&#xF8;tt
Author-Name: Xuewei Sun
Author-X-Name-First: Xuewei
Author-X-Name-Last: Sun
Author-Name: Ye Liu
Author-X-Name-First: Ye
Author-X-Name-Last: Liu
Title: Heterogeneous Effects of Business Collaboration on Innovation in Small Enterprises: China Compared to Brazil, Indonesia, Nigeria, and Thailand
Abstract: 
 The question is whether the benefits of collaboration for innovation for small enterprises in China are comparable to or different from other developing countries&#x2014;Brazil, Indonesia, Thailand, and Nigeria&#x2014;that have been surveyed by the Global Entrepreneurship Monitor (GEM). When it comes to innovation, the benefits of collaboration for small firms in China, as in Brazil and Indonesia, are found to be negligible, whereas the benefits are substantial in Thailand and Nigeria. The benefits are measured in terms of innovation. The findings contribute to understanding collaboration as a systemic property that benefits innovation in small firms that are embedded in institutions that moderate that benefit.
Journal: Emerging Markets Finance and Trade
Pages: 795-808
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1510310
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1510310
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Template-Type: ReDIF-Article 1.0
Author-Name: Delin Yang
Author-X-Name-First: Delin
Author-X-Name-Last: Yang
Author-Name: Jiapeng Li
Author-X-Name-First: Jiapeng
Author-X-Name-Last: Li
Author-Name: Rui Wu
Author-X-Name-First: Rui
Author-X-Name-Last: Wu
Title: Impact of the Core Founder&#x2019;s Functional Experience Diversity on New Venture Performance and Moderating Effects of Environmental Dynamism
Abstract: 
 Prior research on the association between functional experience diversity (FED) and firm performance has focused primarily on top management teams (TMTs). In this study, we shift the focus of research from teams to key individuals and consider the moderating effects of environmental dynamism. Specifically, we argue that the core founder&#x2019;s functional experience diversity (CFFED) helps not only to enhance the absorptive capacity of new ventures but also to improve the quality of decision-making and promote its implementation, thereby enhancing new venture performance. Experience inertia occurs after repeated use of functional experience and it can save time and effort in a stable environment; however, it can lead to wrong decisions and worsen the new venture performance in a dynamic environment. Using data about entrepreneur alumni of a Chinese university, we validate the above hypotheses. In addition, we find that environmental dynamism has the opposite moderating effect for CFFED compared to the TMTs case.
Journal: Emerging Markets Finance and Trade
Pages: 809-826
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1474345
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1474345
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Template-Type: ReDIF-Article 1.0
Author-Name: Jia Zhou
Author-X-Name-First: Jia
Author-X-Name-Last: Zhou
Author-Name: Liang Mei
Author-X-Name-First: Liang
Author-X-Name-Last: Mei
Author-Name: Jin Chen
Author-X-Name-First: Jin
Author-X-Name-Last: Chen
Title: Leveraging University Competitiveness: Evidence from Alliance Portfolio Practices at Zhejiang University
Abstract: 
 In the context of an emerging economy, how does a university choose an appropriate model for its relations with industry and maintain effective collaboration for the purpose of innovation? We provide a strategic analysis of the various organizational alliances and the construction of alliance portfolio, from the integration of resource-based view and institution-based view. Our study focuses on the case of alliance portfolio practices of Zhejiang University&#x2014;involving the Zijin Innovation Town, the Collaborative Innovative Center, and the Transnational Alliance&#x2014;and discusses the implications of engaging in an alliance portfolio to leverage university competitiveness, with the evidence learned from its alliance portfolio practice which highlights the coordination of resources and institutions of universities.
Journal: Emerging Markets Finance and Trade
Pages: 827-842
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1504290
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1504290
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Template-Type: ReDIF-Article 1.0
Author-Name: Haixia Huang
Author-X-Name-First: Haixia
Author-X-Name-Last: Huang
Author-Name: Jin Chen
Author-X-Name-First: Jin
Author-X-Name-Last: Chen
Author-Name: Fei Yu
Author-X-Name-First: Fei
Author-X-Name-Last: Yu
Author-Name: Ziqin Zhu
Author-X-Name-First: Ziqin
Author-X-Name-Last: Zhu
Title: Establishing the Enterprises&#x2019; Innovation Ecosystem Based on Dynamics Core Competence&#x2014;The Case of China&#x2019;s High-Speed Railway
Abstract: 
 The model of building core competence was proposed on the basis of establishment of innovation ecosystem. To exhibit the effectiveness of this model, the developing experience of China&#x2019;s high-speed railway industry was taken as an example. Based on an exploratory case study on the innovation ecosystem of China&#x2019;s high-speed railway industry, we identified three ecosystem stages, namely, the technology accumulation period, technology introduction period and independent innovation period. Through the three stages, China managed to achieve technology innovation and develop core technologies in this industry by firstly building an innovation ecosystem of the core competence of innovation stakeholders. In addition, theoretical and managerial implications were provided for building and managing innovation ecosystems in developing countries&#xFF0C;dedicating a strong policy implication and guidance for developing countries to catch up and make independent innovations by following China&#x2019;s path.
Journal: Emerging Markets Finance and Trade
Pages: 843-862
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1518216
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1518216
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Template-Type: ReDIF-Article 1.0
Author-Name: Yu Shi
Author-X-Name-First: Yu
Author-X-Name-Last: Shi
Author-Name: Lei Gong
Author-X-Name-First: Lei
Author-X-Name-Last: Gong
Author-Name: Jin Chen
Author-X-Name-First: Jin
Author-X-Name-Last: Chen
Title: The Effect of Financing on Firm Innovation: Multiple Case Studies on Chinese Manufacturing Enterprises
Abstract: 
 This article investigates the effects of financing on innovation through multiple case studies of Chinese manufacturers: M&amp;G, Haier, SAIC Motor, and Sifang. Although financing enables firms to access more capital and nonfinancial resources that can fuel innovation in technology, management, cultural, and business models, it also forces firms to adhere to stricter disclosure requirements and some myopic incentives that may constrain innovation. We find a complex and dynamic relationship between financing and innovation. As for technology innovation, the quality of internal innovation declines after financing, and firms experience a drop in both the patent growth rate and the R&amp;D/asset ratio. However, firms acquire external innovation with their additional money in hand, so the quantity of inventions increases. The impact of financing on management, cultural, and business model innovation is positive. Our analysis reveals that financing changes firm strategies in pursuing innovation.
Journal: Emerging Markets Finance and Trade
Pages: 863-888
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1478284
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1478284
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Template-Type: ReDIF-Article 1.0
Author-Name: Shuang (Sara) Ma
Author-X-Name-First: Shuang (Sara)
Author-X-Name-Last: Ma
Author-Name: Yonggui Wang
Author-X-Name-First: Yonggui
Author-X-Name-Last: Wang
Author-Name: Dahui Li
Author-X-Name-First: Dahui
Author-X-Name-Last: Li
Title: The Influence of Product Modularity on Customer Perceived Customization: The Moderating Effects Based on Resource Dependence Theory
Abstract: 
 In order to satisfy the specific needs of customers, customization becomes increasingly important to a firm. Once firms adopt product modularity strategy, they may not always have enough motivation to implement customization strategy since more effort and resources are needed in doing so. Based on resource dependence theory, we tested our hypothesis using dyadic survey data from both customer and supplier sides, combined with the objective data. It is found that product modularity is negatively related to customer perceived customization (CPC), which in turn increases customer satisfaction and project cost. Shared vision attenuates the negative effect of product modularity, while supplier mobilization capability intensifies the negative effect of product modularity.
Journal: Emerging Markets Finance and Trade
Pages: 889-901
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1506328
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1506328
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Template-Type: ReDIF-Article 1.0
Author-Name: Leinan Zhang
Author-X-Name-First: Leinan
Author-X-Name-Last: Zhang
Author-Name: Yonggui Wang
Author-X-Name-First: Yonggui
Author-X-Name-Last: Wang
Author-Name: Zelong Wei
Author-X-Name-First: Zelong
Author-X-Name-Last: Wei
Title: How Do Managerial Ties Leverage Innovation Ambidexterity for Firm Growth?
Abstract: 
 Despite the potential of managerial ties to ease resource competition, caused by innovation ambidexterity and social capital theory, they differ in results depending on which type of managerial ties generates these benefits. To address this inconsistency, this study unpacks managerial ties into intra-industry and extra-industry ties and finds they give separate effects of innovation ambidexterity on firm growth. Based on social capital theory and innovation ambidexterity literature, we develop and examine three hypotheses with data from 207 firms. Intra-industry ties reduce, whereas extra-industry ties end up enhancing the positive effects of innovation ambidexterity on firm growth. This research contributes to both innovation ambidexterity literature and social capital theory.
Journal: Emerging Markets Finance and Trade
Pages: 902-914
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1526075
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1526075
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Template-Type: ReDIF-Article 1.0
Author-Name: Kiryoung Lee
Author-X-Name-First: Kiryoung
Author-X-Name-Last: Lee
Author-Name: Minki Kim
Author-X-Name-First: Minki
Author-X-Name-Last: Kim
Title: Investor Sentiment and Bond Risk Premia: Evidence from China
Abstract: 
 This article shows the statistical signi&#xFB01;cance of a set of variables related to market sentiment and uses them to predict the risk premium embedded in China&#x2019;s sovereign bonds. We construct a composite index of market-wide investor sentiment as a linear combination of proxies for a degree of market participation and risk appetite of investors. Further, we show that these sentiment-related factors can be summarized in a single-return forecasting factor, similar in a spirit of Cochrane and Piazzesi (2005). Our empirical results show that this sentiment factor has predictive power beyond that contained in the yield curve and macroeconomic variables, and this predictability is robust for out-of-sample testing. In addition, the predictive power of the sentiment factor shows relevance during the 2008 global financial crisis, indicating that the forecasting ability of investor sentiment is mainly derived by a sentiment-induced &#x201C;flight-to-quality.&#x201D;
Journal: Emerging Markets Finance and Trade
Pages: 915-933
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1466276
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1466276
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Template-Type: ReDIF-Article 1.0
Author-Name: Woong Lee
Author-X-Name-First: Woong
Author-X-Name-Last: Lee
Title: The Role of Labor Market Flexibility in the Job Matching Process in India: An Analysis of the Matching Function Using State-Level Panel Data
Abstract: 
 Using state-level panel data in India from 1999 to 2011, I estimate the matching functions to investigate the effect of labor market flexibility on new job matches. Next, I categorize the regions by the labor market flexibility and estimate the matching functions in the respective regions. This is the first original work that uses state-level data to estimate the matching function in India. The results show that there is no direct link between labor market flexibility and new hires, and this implies that overall effect of stringent employment protection legislation on efficiency of the job matching process is limited. However, the findings are consistent with the prediction of the search-matching model. The evidence shows that in a region with inflexible labor market, the job matching process is entirely vacancy-driven, implying a lack of labor demand. For such regions, it is recommended that policies aimed at boosting labor demand, such as employment subsidies, are appropriate for creating more employment.
Journal: Emerging Markets Finance and Trade
Pages: 934-949
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2017.1294982
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1294982
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Template-Type: ReDIF-Article 1.0
Author-Name: Carmen D&#xED;az-Mora
Author-X-Name-First: Carmen
Author-X-Name-Last: D&#xED;az-Mora
Author-Name: Erena Garc&#xED;a L&#xF3;pez
Author-X-Name-First: Erena
Author-X-Name-Last: Garc&#xED;a L&#xF3;pez
Title: Product Complexity in International Production Networks: Comparing EU Core and Old and New EU Periphery
Abstract: 
 This paper focuses on analyzing the complexity level of the basket of parts and components exported by EU countries and how it is related to trade linked to international production networks. Three blocks of EU countries, which enjoy different available comparative advantages, are distinguished (Core, New Periphery, and Old Periphery). Our analysis shows that more than one third of exports of P&amp;Cs are of very high complexity in the three blocks of countries. By estimating a panel data gravity model, we find that the higher the product complexity, the higher the volume of trade linked to international production networks, with the impact larger for EU Core countries that exhibit a wider set of high capabilities.
Journal: Emerging Markets Finance and Trade
Pages: 950-966
Issue: 4
Volume: 55
Year: 2019
Month: 3
X-DOI: 10.1080/1540496X.2018.1443073
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1443073
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Template-Type: ReDIF-Article 1.0
Author-Name: TAUFIQ CHOUDHRY 
Author-X-Name-First: TAUFIQ 
Author-X-Name-Last: CHOUDHRY 
Title:         International Transmission of Stock Returns and Volatility : Empirical Comparison Between Friends and Foes       
Abstract:
       This paper investigates stock market mean returns and volatility
 spillover between stock markets of political and friendly countries. The
 potential foes and friends are selected according to the political
 situations in the past ten years. The three pairs of foes tested are
 Israel-Jordan, India-Pakistan, and Greece-Turkey. The United States has
 been historically and traditionally friendly toward these six countries.
 Spillover between the United States and these countries is also
 investigated. The empirical tests are conducted by means of a nonlinear
 GARCH-t model. Results indicate bidirectional mean and volatility
 spillover between two countries not on friendly terms. Results also
 provide ample evidence that mean and volatility spillover takes place from
 a larger distant friendly country (the United States) to these smaller
 emerging markets, but not much the other way around.	 
Journal: Emerging Markets Finance and Trade 
Pages: 33-52 
Issue: 4 
Volume: 40 
Year: 2004 
Month: 7 
Keywords: GARCH-t, meteor shower, spillover, volatility, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=NFDC1GYWH9NPVP4F 
File-Format: text/html
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abhyankar, A. 1995.
 "Trading Round-the-Clock: Return, Volatility and Volume Spillovers in the
 Eurodollar Futures Markets." Pacific-Basin Finance Journal 3, no. 1:
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 1984. "An Investigation of Risk and Return in Forward Foreign Exchange."
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 Auctions and Insider Trading." Econometrica 53, no. 6:
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 <BIBTEXT>Lin, W.; R. Engle; and T. Ito. 1994. "Do Bulls and Bears Move
 Across Borders? International Transmission of Stock Returns and
 Volatility." Review of Financial Studies 7, no. 3: 507-538.</BIBTEXT>	   
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 1963. "The Variation of Certain Speculative Prices." Journal of Business
 36, no. 4 (October): 394-419.</BIBTEXT>      </REF>	  <REF>       
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 Examination of the Behaviour of Pacific-Basin Stock Market Volatility." In
 Pacific-Basin Capital Markets Research, ed. R. Ghon and R. Chang, pp.
 245-260. Amsterdam: Elsevier Science.</BIBTEXT>      </REF>	  <REF>    
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 "Alternative Models for Conditional Stock Volatility." Journal of
 Econometrics 45, nos. 1-2 (July-August): 267-290.</BIBTEXT>	  </REF>   
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 Volatility, International Market Links, and Their Implications for
 Regulatory Policies." Journal of Finance Services Research 3, no. 3:
 113-246.</BIBTEXT>	 </REF>      <REF>	  <BIBL>39</BIBL>	
 <BIBTEXT>Said, S., and D. Dickey. 1984. "Testing for Unit Roots in
 Autoregressive-Moving Average Models of Unknown Order." Biometrika 71:
 599-607.</BIBTEXT>	 </REF>      <REF>	  <BIBL>40</BIBL>	
 <BIBTEXT>Scholes, M., and J. Williams. 1977. "Estimating Betas from
 Nonsynchronous Data." Journal of Financial Economics 5, no. 3 (December):
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 <BIBTEXT>Susmel, R., and R.F. Engle. 1994. "Hourly Volatility Spillovers
 Between International Equity Markets." Journal of International Money and
 Finance 13, no. 1 (February): 3-25.</BIBTEXT>	    </REF>	<REF>	   
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 and Volatility Spillovers Across Major National Stock Markets: Further
 Empirical Evidence." Journal of Financial Research 16, no. 5:
 337-350.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:4:p:33-52




Template-Type: ReDIF-Article 1.0
Author-Name: Ayse Y. Evrensel 
Author-X-Name-First: Ayse Y. 
Author-X-Name-Last: Evrensel 
Title:         Conditionality and Effectiveness of IMF Programs in Emerging Economies       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-9 
Issue: 3 
Volume: 40 
Year: 2004 
Month: 5 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=BY5H24T5HQRPTDCW 
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Handle: RePEc:mes:emfitr:v:40:y:2004:i:3:p:3-9




Template-Type: ReDIF-Article 1.0
Author-Name: PETER WALKENHORST 
Author-X-Name-First: PETER 
Author-X-Name-Last: WALKENHORST 
Title:         Economic Transition and the Sectoral Patterns of Foreign Direct Investment       
Abstract:
       The paper investigates the factors that influence the distribution
 of foreign direct investment (FDI) across countries of investor-origin and
 manufacturing industries in Poland. The results confirm the general
 appropriateness of the basic gravity model formulation for FDI analysis in
 transition countries, as well as important links between FDI, trade, and
 labor costs. However, considerable diversity across manufacturing
 industries is found with respect to the extent to which factors such as
 capital costs and industry competitiveness influence foreign investment
 activities. Hence, generalizing claims regarding the determinants of FDI
 flows should be treated with care.    
Journal: Emerging Markets Finance and Trade 
Pages: 5-26 
Issue: 2 
Volume: 40 
Year: 2004 
Month: 3 
Keywords: Central and Eastern Europe, foreign direct investment, manufacturing, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=3FBRHFJ93KNP2BT7 
File-Format: text/html
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Aturupane, C.; S.
 Djankov; and B. Hoekman. 1999. "Horizontal and Vertical Intra-Industry
 Trade Between Eastern Europe and the European Union." Weltwirtschaftliches
 Archiv 135, no. 1: 62-81.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT>Barrell, R., and D. Holland. 2000. "Foreign
 Direct Investment and Enterprise Restructuring in Central Europe."
 Economics of Transition 8, no. 2: 477-504.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>Bedi, A.S., and A. Cieslik.
 2002. "Wages and Wage Growth in Poland: The Role of Foreign Direct
 Investment." Economics of Transition 10, no. 1: 1-27.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT>Blonigen, B.A.
 2001. "In Search of Substitution Between Foreign Production and Exports."
 Journal of International Economics 53, no. 1: 81-104.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT>Brainard, S.L.
 1997. "An Empirical Assessment of the Proximity-Concentration Trade-Off
 Between Sales and Trade." American Economic Review 87, no. 4:
 520-544.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT>Brenton, P.F.; F. Di Mauro; and M. Lücke. 1999. "Economic
 Integration and FDI: An Empirical Analysis of Foreign Direct Investment in
 the EU and in Central and Eastern Europe." Empirica 26, no. 2:
 95-121.</BIBTEXT>	</REF>	    <REF>	 <BIBL>7</BIBL>       
 <BIBTEXT>Dunning, J. 1981. International Production and the Multinational
 Enterprise. London: George Allen and Unwin.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT>Egger, P. 2000. "Economic
 Integration in Trade and Foreign Direct Investment: Dynamic Considerations
 of Potential and Adjustment." Journal of International Relations and
 Development 3, no. 2: 173-183.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>9</BIBL>        <BIBTEXT>Evenett, S.J., and W. Keller. 2002. "On
 Theories Explaining the Success of the Gravity Equation." Journal of
 Political Economy 110, no. 2: 281-316.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>10</BIBL>	    <BIBTEXT>Floyd, D. 1996. "Foreign Direct
 Investment in Poland: Is Low Cost Labour Really the Sole Determinant?"
 Economic Issues 1, no. 2: 29-39.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>11</BIBL>	<BIBTEXT>Graham, E.M. 1996. "The (Not Wholly
 Satisfactory) State of the Theory of Foreign Direct Investment and
 Multinational Enterprise." Economic Systems 20, no. 2-3:
 183-206.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT>Greene, W.H. 1993. Econometric Analysis. New York:
 Macmillan.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT>GUS (Glowny Urzad Statystyczny). 2000. Rocznik Statystyczny
 [StatisticalYearbook]. Warsaw: GUS Publishing.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT>Jensen, C. 2002. "Foreign
 Direct Investment, Industrial Restructuring and the Upgrading of Polish
 Exports." Applied Economics 34, no. 2: 207-217.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT>Lankes, H.-P., and A.-J.
 Venables. 1996. "Foreign Direct Investment in Economic Transition: The
 Changing Pattern of Investments." Economics of Transition 4, no. 2:
 331-347.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT>Maddala, G.S. 1983. Limited-Dependent and Qualitative Variables
 in Econometrics. New York: Cambridge University Press.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT>Markusen, J.R.
 1995. "The Boundaries of Multinational Enterprises and the Theory of
 International Trade." Journal of Economic Perspectives 9, no. 2:
 169-189.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT>------. 1998. "Multinational Firms, Location and Trade." World
 Economy 21, no. 6: 733-756.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>19</BIBL>	<BIBTEXT>McCorriston, S. 1999. "Foreign Direct
 Investment and Trade: Future Directions for Research." Paper presented at
 the International Agricultural Trade Research Consortium (IATRC)
 Conference, New Orleans, December.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>20</BIBL>	<BIBTEXT>Meyer, K.E., and C. Pind. 1999. "The Slow
 Growth of Foreign Direct Investment in the Soviet Union Successor States."
 Economics of Transition 7, no. 1: 201-214.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT>Mundell, R.A. 1957.
 "International Trade and Factor Mobility." American Economic Review 9, no.
 3: 321-335.</BIBTEXT>	    </REF>	<REF>	     <BIBL>22</BIBL>	   
 <BIBTEXT>PAIZ (Panstwowa Agencja Inwestycji Zagranicznych). Various
 issues. "The List of Major Foreign Investors in Poland." Warsaw.</BIBTEXT>
      </REF>	  <REF>        <BIBL>23</BIBL>	      <BIBTEXT>Portes, R.,
 and H. Rey. 1998. "The Euro and International Equity Flows." Journal of
 the Japanese and International Economies 12, no. 4: 406-423.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>24</BIBL>	  <BIBTEXT>Resmini, L.
 2000. "The Determinants of Foreign Direct Investment in the CEECs: New
 Evidence from Sectoral Patterns." Economics of Transition 8, no. 3:
 665-689.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT>UNCTAD (United Nations Conference on Trade and Development).
 2000. World Investment Report. Geneva: United Nations.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT>Walkenhorst, P.
 2001. "The Geography of Foreign Direct Investment in Poland's Food
 Industry." Journal of Agricultural Economics 52, no. 3: 46-61.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>27</BIBL>	    <BIBTEXT>Wang, Z.Q.,
 and N.J. Swain. 1995. "The Determinants of Foreign Direct Investment in
 Transforming Economies: Empirical Evidence from Hungary and China."
 Weltwirtschaftliches Archiv 131, no. 2: 359-382.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>28</BIBL>	      <BIBTEXT>Wong, K. 1986. "Are
 International Trade and Factor Mobility Substitutes?" Journal of
 International Economics 21, no. 1-2: 25-44.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:2:p:5-26




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 4 
Volume: 43 
Year: 2007 
Month: 8 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G6WX223546X15T45 
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Handle: RePEc:mes:emfitr:v:43:y:2007:i:4:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Guzin Erlat 
Author-X-Name-First: Guzin 
Author-X-Name-Last: Erlat 
Title:         Guest Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 2 
Volume: 39 
Year: 2003 
Month: 3 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=PB96GXBG69UKV8GH 
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:39:y:2003:i:2:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Manish  Agarwal 
Author-X-Name-First: Manish  
Author-X-Name-Last: Agarwal 
Author-Name: Aditya  Bhattacharjea 
Author-X-Name-First: Aditya  
Author-X-Name-Last: Bhattacharjea 
Title: Mergers in India. A Response to Regulatory Shocks 
Abstract:
 Recent empirical research shows that industry and regulatory shocks play a
 key role in determining merger activity in developed countries. We use
 this framework to analyze merger activity in India, using a comprehensive
 database spanning a thirty-year period, from 1973-74 to 2002-3. At the
 industry level, we identify clustering of merger activity in India,
 indicating that mergers may be a response to industry and regulatory
 shocks. At the firm level, the 1991 amendments to the Monopolies and
 Restrictive Trade Practices (MRTP) Act, which removed premerger scrutiny,
 are found to have a positive and significant effect on merger behavior of
 firms that had been under its purview. After the 1991 amendments, firms
 underwent mergers that would have been scrutinized by the MRTP Act
 otherwise. These mergers were undertaken for expansionary reasons.
Journal: Emerging Markets Finance and Trade 
Pages: 46-65 
Issue: 3 
Volume: 42 
Year: 2006 
Month: 5 
Keywords: clustering, deregulation, industry shock, merger, MRTP Act, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H3U69377244573P3 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alexander, G.S. 2005.
 "India, Inc. is Asia's M& A Hotspot in '05." >i>Economic Times>/i>
 (December 28) (available at
 http://economictimes.indiatimes.com/articleshow/1348955.cms).</BIBTEXT>   
   </REF>      <REF>	    <BIBL>2</BIBL>	  <BIBTEXT> Andrade, G.,
 and E. Stafford. 2004. "Investigating the Economic Role of Mergers."
 >i>Journal of Corporate Finance>/i>>b>10>/b>, no. 1: 1-36.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Andrade, G.; M.
 Mitchell; and E. Stafford. 2001. "New Evidence and Perspectives on
 Mergers." >i>Journal of Economic Perspectives>/i>>b>15>/b>, no. 2:
 103-120.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Baltagi, B.H. 1995. >i>Econometric Analysis of Panel Data>/i>.
 Hoboken, NJ: John Wiley & Sons.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>5</BIBL>        <BIBTEXT> Basant, R. 2000. "Corporate Response to
 Economic Reforms." >i>Economic and Political Weekly>/i>>b>35>/b>, no. 10
 (March 4): 813-822.</BIBTEXT>	    </REF>	<REF>	     <BIBL>6</BIBL>
	<BIBTEXT> Beena, P.L. 1998. "Mergers and Amalgamations: An Analysis
 in the Changing Structure of Indian Oligopoly." Ph.D. dissertation, Centre
 for Economic Studies and Planning, Jawaharlal Nehru University, New
 Delhi.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	     
 <BIBTEXT> Bhagwati, J., and P. Desai. 1970. >i>India: Planning for
 Industrialisation>/i>. Paris: Organization for Economic Cooperation and
 Development.</BIBTEXT>      </REF>	 <REF>	      <BIBL>8</BIBL>	   
 <BIBTEXT> Bhattacharjea, A. 2003. "Trade, Investment and Competition
 Policy: An Indian Perspective." In >i>India and the WTO>/i>, ed. A. Mattoo
 and R. Stern, pp. 197-234. New York: Oxford University Press.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>9</BIBL>	  <BIBTEXT> Chandhok, H.L.,
 and the Policy Group. 1990. >i>India Database: The Economy>/i>. New Delhi:
 Living Media India.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>10</BIBL>	<BIBTEXT> Das, N. 2000. "A Study of the Corporate
 Restructuring of Indian Industries in the Post-New Industrial Policy
 Regime-The Issue of Amalgamations/Mergers." Ph.D. dissertation, University
 of Calcutta.</BIBTEXT>      </REF>	 <REF>	      <BIBL>11</BIBL>	   
  <BIBTEXT> Dasgupta, P. 2004. "Establishing an Effective Competition
 Policy System: The Challenges Facing India in Implementing Its New
 Competition Law." Paper presented at the WTO/UNESCO/ASCI Regional Seminar
 for Asia and Pacific Economies on Competition Policy, Development and the
 Multilateral Trading System, Hyderabad, India, October 6-8.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Government of
 India. Various issues. "Annual Survey of Industries (ASI)." Ministry of
 Statistics and Programme Implementation, New Delhi (available at >a
 target="_blank"
 href='http://mospi.nic.in/mospi_asi.htm'>http://mospi.nic.in/mospi_asi.htm
 >/a></BIBTEXT>      </REF>	 <REF>	      <BIBL>13</BIBL>	    
 <BIBTEXT> Government of India. 2003. "The Competition Act, 2002." Ministry
 of Law and Justice (Legislative Department). >i>Gazette of India, Part II,
 Section I>/i>, no. >b>12>/b> (January 14): 1-28.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>14</BIBL>	      <BIBTEXT> Government of India.
 Various issues. >i>Economic Survey>/i>. New Delhi: Ministry of
 Finance.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Government of India. Various issues. >i>Handbook of Industrial
 Policy and Statistics>/i>. New Delhi: Department of Industrial Policy and
 Promotion, Ministry of Commerce and Industry.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Government of India. Various
 issues. >i>Statistical Abstract India>/i>. New Delhi: Ministry of
 Statistics and Programme Implementation.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>17</BIBL>	      <BIBTEXT> Jensen, M.C. 1986. "Agency Costs of
 Free Cash Flow, Corporate Finance and Takeovers." >i>American Economic
 Review>/i>>b>76>/b>, no. 2: 323-329.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>18</BIBL>	  <BIBTEXT> Johnston, J. 1984. >i>Econometric
 Methods>/i>, 3rd ed. New York: McGraw-Hill.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Kaplan, S.N. ed. 2000.
 >i>Mergers and Productivity>/i>. Chicago: University of Chicago
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>20</BIBL>       
 <BIBTEXT> McGowan, J.J. 1971. "International Comparisons of Merger
 Activity." >i>Journal of Law and Economics>/i>>b>14>/b>, no. 1:
 233-250.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Mitchell, M.L., and J.H. Mulherin. 1996. "The Impact of Industry
 Shocks on Takeover and Restructuring Activity." >i>Journal of Financial
 Economics>/i>>b>41>/b>, no. 2: 193-229.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>22</BIBL>	     <BIBTEXT> Reserve Bank of India (RBI). Various
 issues. >i>Handbook of Statistics on India>/i>. Mumbai: RBI.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>23</BIBL>	  <BIBTEXT> Saple, V. 2000.
 "Diversification, Merger and Their Effect on Firm Performance: A Study of
 the Indian Corporate Sector." Ph.D. dissertation, Indira Gandhi Institute
 of Development Research, Mumbai, 2000.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:42:y:2006:i:3:p:46-65




Template-Type: ReDIF-Article 1.0
Author-Name: AYSE Y. EVRENSEL 
Author-X-Name-First: AYSE Y. 
Author-X-Name-Last: EVRENSEL 
Title:         IMF Programs and Financial Liberalization in Turkey       
Abstract:
       By examining the Fund's views about macroeconomic stability, the
 effectiveness of IMF-supported stabilization programs, and Turkey's
 macroeconomic policies, this paper demonstrates that both the IMF and
 Turkey share the responsibility for the outcome of stabilization programs.
 The main conclusion of the paper is that the primary targets of
 stabilization programs are not implemented during the program years. Even
 though program years are associated with improvements in balance of
 payments and reserves, such improvements disappear during the post-program
 years. The fact that Turkey has received subsequent programs from the IMF
 despite the overall lack of implementation of the Fund's conditionality
 may be consistent with the existence of moral hazard. In fact, the results
 suggest that, on average, Turkey enters the next program in worse
 macroeconomic condition than the previous program.    
Journal: Emerging Markets Finance and Trade 
Pages: 5-19 
Issue: 4 
Volume: 40 
Year: 2004 
Month: 7 
Keywords: IMF, moral hazard, stabilization program, Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=9KG7TERVYVBXU9UC 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Calvo, G.A. 1987.
 "Balance of Payments Crises in a Cash-in-Advance Economy." Journal of
 Money, Credit, and Banking 19, no. 1: 19-32.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Evrensel, A.Y. 2002.
 "Effectiveness of IMF-Supported Stabilization Programs in Developing
 Countries." Journal of International Money and Finance 21, no. 5:
 565-587.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>IMF. Various dates. Annual Reports. Washington, DC: International
 Monetary Fund.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	   
   <BIBTEXT>Krueger, A.O. 1974. Foreign Trade Regimes and Economic
 Development: Turkey. New York: National Bureau of Economic
 Research.</BIBTEXT>	  </REF>      <REF>	   <BIBL>5</BIBL>	
 <BIBTEXT>Obstfeld, M., and K. Rogoff. 1995. "The Mirage of Fixed Exchange
 Rates." Journal of Economic Perspectives 9, no. 4: 73-96.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Sarno, L., and
 M.P. Taylor. 1999. "Moral Hazard, Asset Price Bubbles, Capital Flows, and
 the East Asian Crisis: The First Tests." Journal of International Money
 and Finance 18, no. 4: 637-657.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT>Vaubel, R. 1983. "The Moral Hazard of IMF
 Lending." In International Lending and the International Monetary Fund,
 ed. A.H. Meltzer, pp. 65-79. Washington, DC: Heritage
 Foundation.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:4:p:5-19




Template-Type: ReDIF-Article 1.0
Author-Name: ERDEM BAS&Ccedil;I 
Author-X-Name-First: ERDEM 
Author-X-Name-Last: BAS&Ccedil;I 
Author-Name: MEHMET FATIH EKINCI 
Author-X-Name-First: MEHMET FATIH 
Author-X-Name-Last: EKINCI 
Title:         Bond Premium in Turkey : Inflation Risk or Default Risk?       
Abstract:
       In this paper we examine the difference between T-bill returns and
 common stock returns in Turkey. We observe that there is a bond premium in
 Turkey unlike the equity premia in developed countries. As an attempt to
 explain this surprising observation, we incorporate inflation risk and
 default risk to the Mehra and Presscott (1985) dynamic asset-pricing
 model. Calibration with reasonable parameter values indicates that the
 inflation risk alone is not sufficient to explain the observed bond
 premium. However, by allowing for the presence of a perceived default
 probability, we can explain the observed bond premium on Turkish T-bills
 over Turkish common stocks.	
Journal: Emerging Markets Finance and Trade 
Pages: 25-40 
Issue: 2 
Volume: 41 
Year: 2005 
Month: 3 
Keywords: asset pricing, bond premium, default risk, equity-premium puzzle, inflation risk, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=GTAMWDV1HVXAA2MV 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Aiyagari, S.R., and M.
 Gertler. 1991. "Asset Returns with Transaction Costs and Uninsured
 Individual Risk." Journal of Monetary Economics 27, no. 3:
 311-331.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT>Ang, A.; G. Bekaert; and J. Liu. 2000. "Why Stocks May
 Disappoint." Working Paper no. w7783, National Bureau of Economic
 Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>3</BIBL>        <BIBTEXT>Benartzi, S., and R. Thaler. 1995. "Myopic
 Loss Aversion and the Equity Premium Puzzle." Quarterly Journal of
 Economics 110: 73-92.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>4</BIBL>        <BIBTEXT>Campbell, J.Y. 1999. "Asset Prices,
 Consumption and the Business Cycle." In Handbook of Macroeconomics, vol.
 IC, ed. J.B. Taylor and M. Woodford, pp. 1231-1303. Amsterdam:
 North-Holland.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	   
   <BIBTEXT>Campbell, J.Y., and J.H. Cochrane. 1999. "By Force of Habit: A
 Consumption-Based Explanation of Aggregate Stock Market Behaviour."
 Journal of Political Economy 107, no. 2: 205-251.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>6</BIBL>	      <BIBTEXT>Drudi, F., and R. Giordano.
 2000. "Default Risk and Optimal Debt Management." Journal of Banking and
 Finance 24, no. 6: 861-891.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>7</BIBL>        <BIBTEXT>Eichengreen, B., and R. Portes. 1986. "Debt
 and Default in the 1930s: Causes and Consequences." European Economic
 Review 30 (June): 599-640.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>8</BIBL>        <BIBTEXT>Fischer, S.J. 1994. "Asset Trading,
 Transaction Costs and the Equity Premium." Journal of Applied Econometrics
 9 (Special Issue): 71-94.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>9</BIBL>        <BIBTEXT>Gallagher, L.A., and M.P. Taylor. 2002.
 "The Stock Return-Inflation Puzzle Revisited." Economics Letters 75, no.
 2: 147-156.</BIBTEXT>	    </REF>	<REF>	     <BIBL>10</BIBL>	   
 <BIBTEXT>Gül, F. 1991. "A Theory of Disappointment Aversion." Econometrica
 59, no. 3: 667-686.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>11</BIBL>	<BIBTEXT>Hernandez-Trillo, F. 1995. "A Model-Based
 Estimation of the Probability of Default in Sovereign Credit Markets."
 Journal of Development Economics 46, no. 1: 163-179.</BIBTEXT>      </REF>
      <REF>	   <BIBL>12</BIBL>	  <BIBTEXT>Kenc, T.; W. Perraudin;
 and P. Vitale. 2001. "Inflation and Sovereign Default." IMF Staff Papers
 47, no. 3: 366-386.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>13</BIBL>	<BIBTEXT>Kocherlakota, N. 1996. "The Equity
 Premium: It Is Still a Puzzle." Journal of Economic Literature 47, no. 3:
 42-71.</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>       
 <BIBTEXT>Labadie, P. 1989. "Stochastic Inflation and the Equity Premium."
 Journal of Monetary Economics 24, no. 2: 277-298.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>15</BIBL>        <BIBTEXT>McGrattan, E.R., and E.C.
 Presscott. 2001. "Taxes, Regulations, and Asset Prices." Working Paper no.
 610, Federal Reserve Bank of Minneapolis, MN.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT>Mehra, R. 2001. "The Equity
 Premium Puzzle." University of California, Santa Barbara (available at
 www.econ.ucsb.edu/~mehra).</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>17</BIBL>	<BIBTEXT>Mehra, R., and E.C. Presscott. 1985. "The
 Equity Premium: A Puzzle." Journal of Monetary Economics 15 (March):
 145-161.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT>Merrick, J.J., Jr. 2001. "Crisis Dynamics of Implied Default
 Recovery Ratios: Evidence from Russia and Argentina." Journal of Banking
 and Finance 25, no. 9: 1921-1939.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>19</BIBL>	<BIBTEXT>Siegel, J. 1998. Stocks for the Long Run,
 2d edition. New York: Irwin.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>20</BIBL>	<BIBTEXT>State Institute of Statistics. 1987.
 "Urban Places Consumer Price Index (1987 = 100)." Prime Ministry of the
 Republic of Turkey, Ankara.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>21</BIBL>	<BIBTEXT>Sylla, R., and J.J. Wallis. 1998. "The
 Anatomy of Sovereign Debt Crises: Lessons from the American State Defaults
 of the 1840s." Japan and the World Economy 10, no. 3: 267-293.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>22</BIBL>	    <BIBTEXT>Tanner, E.
 1994. "Balancing the Budget with Implicit Domestic Default: The Case of
 Brazil in the 1980s." World Development 22, no. 1: 85-98.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT>------. 1995.
 "Intertemporal Solvency and Indexed Debt: Evidence from Brazi1, 1976-
 1991." Journal of International Money and Finance 14, no. 4:
 549-573.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT>Telmer, C. 1993. "Asset-Pricing Puzzles and Incomplete Markets."
 Journal of Finance 48, no. 5: 1803-1832.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>25</BIBL>	      <BIBTEXT>Vassalou, M., and Y. Xing. 2004.
 "Default Risk and Equity Returns." Journal of Finance 59, no. 2:
 831-868.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:2:p:25-40




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 5 
Volume: 42 
Year: 2006 
Month: 10 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T24143947U758801 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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Handle: RePEc:mes:emfitr:v:42:y:2006:i:5:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: TURAN EROL 
Author-X-Name-First: TURAN 
Author-X-Name-Last: EROL 
Title:         Strategic Debt with Diverse Maturity in Developing Countries: Industry-Level Evidence from Turkey       
Abstract:
       A joint hypothesis of the strategic debt theory is that leverage
 decisions are the extensions of output market strategies and that debt, in
 return, has consequences for industry competition. It is, however, highly
 controversial as to how these consequences depend on the maturity
 structure; the role of maturity has not been directly tested. We test this
 joint hypothesis of strategic debt separately for short-term and long-term
 debt in Turkish manufacturing. A distinction according to maturity is
 critical, because corporate debt in advanced countries is predominantly
 long term, while it is predominantly short term in developing countries,
 including Turkey. The panel estimations at the two-digit industry level
 point to significant behavioral differences attributable to the maturity
 structure. The use of short-term debt is found to characterize price
 (Bertrand) competition, whereas the use of long-term debt is found to
 characterize quantity (Cournot) competition. These findings raise the
 maturity structure as a critical element in the strategic debt theory as
 has it long been so in general finance theory.    
Journal: Emerging Markets Finance and Trade 
Pages: 5-24 
Issue: 5 
Volume: 40 
Year: 2004 
Month: 9 
Keywords: developing countries, industry competition, maturity structure, strategic debt, Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q8MPLQ6U80UQFCBM 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Amir, R., and J.Y. Jin.
 2001. "Cournot and Bertrand Equilibria Compared: Substitutability,
 Complementarity and Concavity." International Journal of Industrial
 Organization 19, nos. 3-4: 303-317.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>2</BIBL>	<BIBTEXT>Barclay, M.J., and C.W. Smith, Jr. 1995.
 "The Maturity Structure of Corporate Debt." Journal of Finance 50, no. 2:
 609-631.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Barclay, M.J.; L.M. Marx; and C.W. Smith, Jr. 2001. "The Joint
 Determination of Leverage and Maturity." Carnegie-Rochester Conference
 Series on Public Policy, 53: 205-232.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>4</BIBL>	  <BIBTEXT>Booth, L.; V. Aivazian; A.
 Demirgüç-Kunt; and V. Maksimovic. 2001. "Capital Structures in Developing
 Countries." Journal of Finance 66, no. 1: 87-129.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>5</BIBL>	      <BIBTEXT>Brander, J.A., and T.R.
 Lewis. 1986. "Oligopoly and Financial Structure: Limited Liability
 Effect." American Economic Review 76, no. 5: 956-970.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>CBRT. Various
 dates. "Sectoral Balance Sheets (SBSs) and Their Annexes (Analyses)" (in
 Turkish). Central Bank of the Republic of Turkey, Ankara.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT>Chevalier, J.A.,
 and D.S. Scharfstein. 1996. "Capital Market Imperfections and
 Countercyclical Markups: Theory and Evidence." American Economic Review
 86, no. 3: 703-725.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>
	<BIBTEXT>Damania, D. 1997. "Debt as a Collusive Device in an
 Oligopoly Supergame." Journal of Economics (Zeltschrift für
 Nationalokonomie) 66, no. 3: 249-269.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>9</BIBL>	  <BIBTEXT>Dasgupta, S., and S. Titman. 1998.
 "Pricing Strategy and Financial Policy." Review of Financial Studies 11,
 no. 4: 705-737.</BIBTEXT>	</REF>	    <REF>	 <BIBL>10</BIBL>   
     <BIBTEXT>Demirgüç-Kunt, A., and V. Maksimovic. 1999. "Institutions,
 Financial Markets, and Firm Debt Maturity." Journal of Financial Economics
 54, no. 2: 295-336.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>11</BIBL>	<BIBTEXT>Emery, G.W. 2001. "Cyclical Demand and the
 Choice of Debt Maturity." Journal of Business 74, no. 2:
 557-590.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT>Erol, T. 2003. "Capital Structure and Output Pricing in a
 Developing Country." Economics Letters 78, no. 1: 109-115.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT>Gertler, M., and
 S. Gilchrist. 1994. "Monetary Policy, Business Cycles, and the Behavior of
 Small Manufacturing Firms." Quarterly Journal of Economics 109, no. 2:
 309-340.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT>Glazer, J. 1994. "The Strategic Effects of Long-Term Debt in
 Imperfect Competition." Journal of Economic Theory 62, no. 2:
 428-443.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT>Hendel, I. 1996. "Competition Under Financial Distress." Journal
 of Industrial Economics 64, no. 2: 309-324.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT>Hsiao, C. 1986. Analysis of
 Panel Data. Cambridge: Cambridge University Press.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>17</BIBL>	<BIBTEXT>Klemperer, P., and M.
 Meyer. 1986. "Price Competition vs. Quantity Competition: The Role of
 Uncertainty." RAND Journal of Economics 17, no. 618-638.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT>Maksimovic, V.
 1988. "Capital Structure in Repeated Oligopolies." RAND Journal of
 Economics 19, no. 3: 389-407.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>19</BIBL>	<BIBTEXT>------. 1990. "Product Market
 Imperfections and Loan Commitments." Journal of Finance 55, no. 5:
 1641-1653.</BIBTEXT>	   </REF>      <REF>	    <BIBL>20</BIBL>	  
 <BIBTEXT>Morris, R.J. 1976. "On Corporate Debt Maturity Strategies."
 Journal of Finance 31, no. 1: 29-37.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>21</BIBL>	  <BIBTEXT>Nickell, S., and D. Nicolitsas. 1999.
 "How Does Financial Pressure Affect Firms?" European Economic Review 43,
 no. 8: 1435-1456.</BIBTEXT>	  </REF>      <REF>	   <BIBL>22</BIBL> 
       <BIBTEXT>Opler, T., and S. Titman. 1994. "Financial Distress and
 Corporate Performance." Journal of Finance 49, no. 3: 1015-1040.</BIBTEXT>
      </REF>	  <REF>        <BIBL>23</BIBL>	      <BIBTEXT>Phillips,
 G.M. 1995. "Increased Debt and Industry Product Markets: An Empirical
 Analysis." Journal of Financial Economics 37, no. 2: 189-238.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>24</BIBL>	   <BIBTEXT>Qin, C.-Z., and
 C. Stuart. 1997. "Bertrand Versus Cournot Revisited." Economic Theory 10,
 no. 3: 497-507.</BIBTEXT>	</REF>	    <REF>	 <BIBL>25</BIBL>   
     <BIBTEXT>Rajan, R., and L. Zingales. 1995. "What Do We Know About
 Capital Structure? Some Evidence from International Data." Journal of
 Finance 50, no. 5: 1421-1460.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>26</BIBL>	<BIBTEXT>Showalter, D.M. 1995. "Oligopoly and
 Financial Structure: A Comment." American Economic Review 85, no. 3:
 647-653.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT>------. 1999. "Strategic Debt: Evidence in Manufacturing."
 International Journal of Industrial Organization 17, no. 3:
 319-333.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT>Singh, A.; J. Hamid; B. Salimi; and Y. Nakano. 1992. "Corporate
 Financial Structures in Developing Countries." Technical Paper No. 1,
 International Finance Corporation, Washington, DC.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>29</BIBL>	<BIBTEXT>Stohs, M.H., and D. Mauer.
 1996. "The Determination of Corporate Debt Maturity Structure." Journal of
 Business 69, no. 3: 279-312.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:5:p:5-24




Template-Type: ReDIF-Article 1.0
Author-Name: SERDAR SAYAN 
Author-X-Name-First: SERDAR 
Author-X-Name-Last: SAYAN 
Author-Name: M. AYHAN KOSE 
Author-X-Name-First: M. AYHAN 
Author-X-Name-Last: KOSE 
Title:         Guest Editors' Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-6 
Issue: 6 
Volume: 40 
Year: 2004 
Month: 11 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R0BJ8C243NFH66LP 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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Handle: RePEc:mes:emfitr:v:40:y:2004:i:6:p:3-6




Template-Type: ReDIF-Article 1.0
Author-Name: Hsu-Huei  Huang 
Author-X-Name-First: Hsu-Huei  
Author-X-Name-Last: Huang 
Author-Name: Paochung  Hsu 
Author-X-Name-First: Paochung  
Author-X-Name-Last: Hsu 
Author-Name: Haider A. Khan 
Author-X-Name-First: Haider A. 
Author-X-Name-Last: Khan 
Author-Name: Yun-Lin  Yu 
Author-X-Name-First: Yun-Lin  
Author-X-Name-Last: Yu 
Title: Does the Appointment of an Outside Director Increase Firm Value? Evidence from Taiwan 
Abstract:
 We examine stock market reactions to the announcement of outside director
 appointments in Taiwan. Our empirical findings indicate significantly
 positive reactions to such announcements, as cumulative abnormal returns
 reach 4.776 percent. We also find that abnormal returns are positive and
 higher when a firm has each of the following characteristics: poorer prior
 corporate performance, the chief executive officer as chairman of the
 board, larger free cash flow, and a higher degree of information
 asymmetry. The announcement effect decreases as the number of outside
 directors increases. Our findings differ from existing literature mainly
 because outside director appointment is not mandatory in Taiwan. This
 suggests that the announcement effects could be different across
 countries. The appointment appears to be more beneficial for a country
 with poor corporate governance mechanisms.
Journal: Emerging Markets Finance and Trade 
Pages: 66-80 
Issue: 3 
Volume: 44 
Year: 2008 
Month: 5 
Keywords: agency problem, corporate governance, information asymmetry, outside director, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q00552118602121H 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Anderson, R. C.; S. A.
 Mansi; and D. M. Reeb. 2004. "Board Characteristics, Accounting Report
 Integrity, and the Cost of Debt." >i>Journal of Accounting and
 Economics>/i> 37, no. 3: 315-342.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Datta, S.; M. I. Datta; and A. Patel.
 2000. "Some Evidence on the Uniqueness of Initial Public Debt Offerings."
 >i>Journal of Finance>/i> 55, no. 2: 715-743.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Eisenberg, M. A. 1975. "Legal
 Model of Management Structure in the Modern Corporation, Officers,
 Directors, and Accountants." >i>California Law Review>/i> 63, no. 2:
 375.</BIBTEXT>      </REF>	 <REF>	      <BIBL>4</BIBL>	   
 <BIBTEXT> Fama, E. 1980. "Agency Problems and the Theory of the Firm."
 >i>Journal of Political Economy>/i> 88, no. 2: 288-307.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Fama, E., and K.
 R. French. 1992. "The Cross-Section of Expected Stock Returns." >i>Journal
 of Finance>/i> 47, no. 2: 427-465.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>6</BIBL>        <BIBTEXT> Huson, M. R.; R. Parrino; and L. T.
 Starks. 2001. "Internal Monitoring Mechanisms and CEO Turnover: A
 Long-Term Perspective." >i>Journal of Finance>/i> 61, no. 6:
 2265-2297.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> Jensen, M. C. 1986. "Agency Costs of Free Cash Flow, Corporate
 Finance, and Takeovers." >i>American Economic Review>/i> 76, no. 2:
 323-329.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Jensen, M. C. 1993. "The Modern Industrial Revolution, Exit, and
 the Failure of Internal Control Systems." >i>Journal of Finance>/i> 48,
 no. 3: 831-880.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT> Khan, H. A. 1999. "Corporate Governance of Family Businesses
 in Asia: What's Right and What's Wrong?" Asian Development Bank Institute,
 Working Paper no. 3, Tokyo.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>10</BIBL>	<BIBTEXT> Khan, H. A. 2005. "Corporate Governance
 of Family Businesses in Asia: Which Road to Take?" >i>ICFAI Journal 1>/i>,
 no. 1 (February): 11-31.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>11</BIBL>	<BIBTEXT> Klein, A. 2002. "Audit Committee, Board
 of Director Characteristics, and Earnings Management." >i>Journal of
 Accounting and Economics>/i> 33, no. 3: 375-400.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>12</BIBL>	      <BIBTEXT> Lehn, K., and A. Poulsen.
 1989. "Free Cash Flow and Stockholder Gains in Going Private
 Transactions." >i>Journal of Finance>/i> 44, no. 3: 771-787.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>13</BIBL>	  <BIBTEXT> Lin, S.; P. F.
 Pope; and S. Young. 2003. "Stock Market Reaction to the Appointment of
 Outside Directors." >i>Journal of Business & Accounting>/i> 30, no. 3:
 351-380.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Perry, T., and A. Shivdasani. 2001. "Do Boards Affect
 Performance? Evidence from Corporate Restructuring." Working Paper,
 University of North Carolina, Chapel Hill.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Pound, J. 1988. "Proxy
 Contests and the Efficiency of Shareholder Oversight." >i>Journal of
 Financial Economics>/i> 20, no. 1: 237-265.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Rosenstein, S., and J. G.
 Wyatt. 1990. "Outside Directors, Board Independence, and Shareholder
 Wealth." >i>Journal of Financial Economics>/i> 26, no. 2:
 175-191.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Rosenstein, S., and J. G. Wyatt. 1997. "Inside Directors, Board
 Effectiveness, and Shareholder Wealth." >i>Journal of Financial
 Economics>/i> 44, no. 2: 229-250.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>18</BIBL>	<BIBTEXT> Uzun, H.; S. H. Szewczyk; and R. Varma.
 2004. "Board Composition and Corporate Fraud." >i>Financial Analysts
 Journal>/i> 60, no. 3: 33-43.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>19</BIBL>	<BIBTEXT> Weisbach, M. S. 1988. "Outside Directors
 and CEO Turnover." >i>Journal of Financial Economics>/i> 20, no. 1:
 431-460.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:3:p:66-80




Template-Type: ReDIF-Article 1.0
Author-Name: HAKAN BERUMENT 
Author-X-Name-First: HAKAN 
Author-X-Name-Last: BERUMENT 
Author-Name: N. NERGIZ DINCER 
Author-X-Name-First: N. NERGIZ 
Author-X-Name-Last: DINCER 
Title:         Do Capital Flows Improve Macroeconomic Performance in Emerging Markets? : The Turkish Experience       
Abstract:
       This study examines the effects of capital inflows on the
 macroeconomic performance in an emerging, small open economy--Turkey.
 Using monthly data from 1992:01 to 2001:06 and a recursive vector
 autoregression model, we find that positive innovations in capital inflows
 appreciate the domestic currency, and increase output and money supply,
 but decrease interest rates and prices in the short run. We also find that
 the exchange rate regime does not influence the effects of capital flows
 on macroeconomic performance. Implications of the findings for
 policymakers are analyzed.    
Journal: Emerging Markets Finance and Trade 
Pages: 20-32 
Issue: 4 
Volume: 40 
Year: 2004 
Month: 7 
Keywords: capital flows, Turkey, vector autoregression, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=FYW3A4GCE6B692KR 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Agosin, R.M. 1994.
 "Saving and Investment in Latin America." UNCTAD Discussion Paper No. 90,
 Geneva.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>       
 <BIBTEXT>Akcay, C., and U. Zenginobuz. 2001. "Vulnerability to Purely
 Contagious Balance-of-Payment Crises in Emerging Economies: An Application
 to the Cases of Russia, Turkey, and Brazil." Russian and East European
 Finance and Trade 37, no. 5 (September- October): 5-21.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>Akcoraoglu, A.
 2000. "International Capital Movements, External Imbalances and Economic
 Growth: The Case of Turkey," Yapé Kredi Economic Review 11, no. 2:
 21-36.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT>Alper, C.E. 2002. "Business Cycles, Excess Volatility and Capital
 Flows: Evidence from Mexico and Turkey." Russian and East European Finance
 and Trade 38, no. 4 (July- August): 22-54.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT>Alper, C.E., and I. Saglam.
 2001. "The Transmission of a Sudden Capital Outflow: Evidence from
 Turkey." Eastern European Economics 39, no. 2: 29-48.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Antzoulatus, A.A.
 1996. "Capital Flows and Current Account Deficits in the 1990s: Why Did
 Latin American and East Asian Countries Respond Differently?" Federal
 Reserve Bank of New York Research Paper No. 9610, New York.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT>Bekaert, G., and
 C. Harvey. 1998. "Market Integration and Investment Barriers in Emerging
 Market Equity Returns." NBER Working Paper No. 6669, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>	  
 <BIBTEXT>Berksoy, T., and B. Saltoglu. 1998. "Türkiye Ekonomisinde Sermaye
 Hareketleri" [Capital Flows in Turkey]. Istanbul Chamber of Commerce
 Publication No. 58, Istanbul.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>9</BIBL>        <BIBTEXT>Blöndal, S., and H. Christiansen. 1999.
 "The Recent Experience with Capital Flows to Emerging Market Economies."
 OECD Economics Department Working Paper No. 211, Paris.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT>Calvo, G.A.; L.
 Leiderman; and C.M. Reinhart. 1994. "The Capital Inflow Problem: Concept
 and Issues." Contemporary Economic Policy 12, no. 3: 54-66.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT>Cavusoglu, T.;
 N.D. Gungor; and H. Olgun. 1997. "The Characteristics of Capital Inflows
 in Turkey: An Econometric Investigation." Middle East Technical University
 Working Paper No. 97/18, Ankara.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>12</BIBL>	<BIBTEXT>Celasun, O.; C. Denizer; and D. He. 1999.
 "Capital Flows, Macroeconomic Management, and the Financial System: The
 Turkish Case, 1989-97." World Bank Working Paper, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>13</BIBL>	   
 <BIBTEXT>Corbo, V., and L. Hernandez. 1994. "Macroeconomic Adjustment to
 Capital Flows." World Bank Policy Research Paper No. 1337, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>14</BIBL>	   
 <BIBTEXT>Durham, J.B. 2000. "Econometrics of the Real Effects of
 Cross-Border Capital Flows in Emerging Markets." Queen Elizabeth House
 Working Paper No. 52, Oxford.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>15</BIBL>	<BIBTEXT>Ekinci, N. 1996. "Financial Liberalization
 Under External Debt Constraints: The Case of Turkey." Middle East
 Technical University Economic Research Center Working Paper No. 96/05,
 Ankara.</BIBTEXT>	</REF>	    <REF>	 <BIBL>16</BIBL>       
 <BIBTEXT>Fernandez-Arias, E., and P.J. Montiel. 1995. "The Surge in
 Capital Inflows to Developing Countries: Prospects and Policy Response."
 World Bank Policy Research Working Paper No. 1473, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>17</BIBL>	   
 <BIBTEXT>FitzGerald, E.V.K. 1998. "Short-Term Capital Flows, The Real
 Economy and Income Distribution in Developing Countries." Queen Elizabeth
 House Working Paper No. 8, London.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>18</BIBL>	<BIBTEXT>Ffrench-Davis, R.; D. Titelman; and A.
 Uthoff. 1994. "International Competitiveness and the Macroeconomics of
 Capital Account Opening." ECLAC Working Paper No. 29, Santiago.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT>Frenkel, R.;
 J.M. Fanelli; and G. Rozenvurcel. 1993. "Growth and Structural Reforms in
 Latin America: Where We Stand." UNCTAD Discussion Paper No. 62,
 Geneva.</BIBTEXT>	</REF>	    <REF>	 <BIBL>20</BIBL>       
 <BIBTEXT>Helpman, E. 1985. "An Exploration in the Theory of Exchange Rate
 Regimes." Journal of Political Economy 89, no. 5: 865-890.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>Kamin, S., and P.
 Wood. 1997. "Capital Inflows, Financial Intermediation, and Aggregate
 Demand: Empirical Evidence from Mexico and Other Pacific Basin Countries."
 Board of Governors of the Federal Reserve System International Finance
 Discussion Papers No. 583, Washington, DC.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT>Keyder, N. 2001. "The
 Aftermath of the Exchange Rate-Based Program and the November 2000
 Financial Crisis in Turkey." Russian and East European Finance and Trade
 37, no. 5 (September-October): 22-44.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>23</BIBL>	   <BIBTEXT>Khan, M., and C. Reinhart. 1995.
 "Capital Inflows in the APEC Region." IMF Occasional Paper No. 122,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>24</BIBL>   
     <BIBTEXT>Kirmanoglu, H., and O. Ozcicek. 1999. "The Effect of
 Short-Term Capital Inflow on the Turkish Economy." Yapé Kredi Economic
 Review 10, no. 1: 27-34.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>25</BIBL>	<BIBTEXT>Rodrik, D. 1998. "Who Needs
 Capital-Account Convertibility?" In Should the IMF Pursue Capital-Account
 Convertibility? Essays in International Finance No. 207, ed. S. Fischer.
 Princeton: Princeton University Press.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>26</BIBL>	    <BIBTEXT>Sims, C.A. 1980. "Macroeconomics and
 Reality." Econometrica 48, no. 1: 1-48.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>27</BIBL>	     <BIBTEXT>Yuksel, A. 2002. "The Performance of
 the Istanbul Stock Exchange During the Russian Crises." Emerging Markets
 Finance and Trade 38, no. 6 (November-December): 78-99.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:4:p:20-32




Template-Type: ReDIF-Article 1.0
Author-Name: GÖKHAN ÇAPOG¬LU 
Author-X-Name-First: GÖKHAN  
Author-X-Name-Last: ÇAPOG¬LU 
Title:         Anatomy of a Failed IMF Program : The 1999 Program in Turkey       
Abstract:
       This paper analyzes the failed IMF program in Turkey that was
 initiated in December 1999. The 1999 Turkish exchange rate-based
 stabilization program was presented as an improved version of earlier
 programs implemented in Latin American countries. The inclusion of an exit
 strategy was considered as an innovative element of the Turkish program.
 However, the program crashed fourteen months after its initiation. This
 paper argues that the Turkish program underestimated the possible negative
 impact of unfavorable initial conditions, especially conditions of an
 institutional nature, which turned out to be a fatal mistake. Among the
 conditions that were ignored by the 1999 program were the absence of an
 independent and effective regulatory agency in the banking sector and the
 circumstances under which the Treasury carried out its borrowing.    
Journal: Emerging Markets Finance and Trade 
Pages: 84-100 
Issue: 3 
Volume: 40 
Year: 2004 
Month: 5 
Keywords: exchange rate-based stabilization, financial crisis, IMF programs, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=W7E17YXRT97DR9NG 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Alper, C.E., and Z.
 &Ouml;nis*. 2002. "Emerging Markets Crises and the IMF: Rethinking the
 Role of the IMF in the Light of Turkey's 2000-2001 Financial Crises."
 Paper presented at the METU International Conference VI, Ankara, September
 11-14.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT>Amann, E., and W. Baer. 2000. "The Illusion of Stability: The
 Brazilian Economy Under Cardoso." World Development 28, no. 10:
 1805-1819.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL>	 
 <BIBTEXT>Banks Association of Turkey. 2002. "Quarterly Statistics by
 Groups." Istanbul, September.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>4</BIBL>        <BIBTEXT>Calvo, G., and C. Vegh. 1999. "Inflation
 Stabilization and BOP Crises in Developing Countries." In Handbook of
 Macroeconomics, ed. J. Taylor and M. Woodford, pp. 1531- 1614. Amsterdam:
 North-Holland.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	   
   <BIBTEXT>Celasun, O.; R.G. Gelos; and A. Prati. 2003. "Would Cold Turkey
 Work in Turkey?" IMF Working Paper 49, Washington, DC.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Central Bank of
 Turkey. 1999. "Disinflation Program for 2000: Exchange Rate and Monetary
 Policies." Ankara, December.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>7</BIBL>        <BIBTEXT>------. 2000. "Monthly Economic Bulletin."
 Ankara, December.</BIBTEXT>	  </REF>      <REF>	   <BIBL>8</BIBL>  
      <BIBTEXT>------. 2001. "Quarterly Bulletin." Ankara,
 January-March.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	   
   <BIBTEXT>------. 2002. "Quarterly Bulletin." Ankara,
 January-March.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>    
    <BIBTEXT>Dornbusch, R. 1997. "Brazil's Incomplete Stabilization and
 Reform." Brookings Papers on Economic Activity 1: 367-404.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT>------. 2001. "A
 Primer on Emerging Market Crises." MIT, Boston, January (available at
 web.mit.edu/rudi/www/media/PDFs/crisesprimer.pdf).</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>12</BIBL>	<BIBTEXT>Dornbusch, R., and A.
 Werner. 1994. "Mexico: Stabilization, Reform, and No Growth." Brookings
 Papers on Economic Activity 1: 253-309.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>13</BIBL>	     <BIBTEXT>Edwards, S. 2000. "Exchange Rate
 Regimes, Capital Flows and Crisis Prevention." Paper presented at the NBER
 Conference on Economic and Financial Crises in Emerging Market Economies,
 Woodstock, VT, October 19-21.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>14</BIBL>	<BIBTEXT>Evrensel, A. 2002. "Effectiveness of IMF
 Supported Stabilization Programs in Developing Countries." Journal of
 International Money and Finance 21, no. 5 (October): 565-587.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>15</BIBL>	   <BIBTEXT>------. 2004.
 "IMF Programs and Financial Liberalization in Turkey." Emerging Markets
 Finance and Trade 40, no. 4 (July-August, forthcoming).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>Hamann, A.J.
 1999. "Exchange-Rate-Based Stabilization: A Critical Look at the Stylized
 Facts." IMF Working Paper No. 132, Washington, DC.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>17</BIBL>	<BIBTEXT>IMF. 2000a. "IMF Concludes
 Article IV Consultation with Turkey." Public Information Notice No. 00/1,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>18</BIBL>   
     <BIBTEXT>------. 2000b. "Turkey: Selected Issues and Statistical
 Appendix." IMF Staff Country Report No. 00/14, Washington, DC.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>19</BIBL>	    <BIBTEXT>------. 2001a.
 "Brazil: Selected Issues and Statistical Appendix." IMF Country Report No.
 01/10, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>20</BIBL>	<BIBTEXT>------. 2001b. "Turkey: Sixth and Seventh
 Reviews Under the Stand-By Arrangement: Staff Supplement." IMF Country
 Report No. 01/89, Washington, DC.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>21</BIBL>	<BIBTEXT>------. 2001c. "Turkey: Eighth Review
 Under the Stand-By Arrangement: Staff Supplement." IMF Country Report No.
 01/137, Washington, DC.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>22</BIBL>	<BIBTEXT>------. 2002. "IMF Concludes Article IV
 Consultation with Turkey." Public Information Notice No. 02/46,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>23</BIBL>   
     <BIBTEXT>Kibritçiog&not;lu, A.; L. Rittenberg; and F. Selçuk. 2001.
 Inflation and Disinflation in Turkey. Aldershot, UK: Ashgate.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>24</BIBL>	   <BIBTEXT>Leigh, D., and
 M. Rossi. 2002. "Leading Indicators of Growth and Inflation in Turkey."
 IMF Working Paper No. 231, Washington, DC.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT>NBER. 2001. "Turkey: NBER
 Program on Exchange Rate Crises in Emerging Markets." Conference Report,
 National Bureau of Economic Research, Cambridge, MA (available at
 www.nber.org/crisis/turkey_report.html).</BIBTEXT>	 </REF>      <REF> 
       <BIBL>26</BIBL>	      <BIBTEXT>&Ouml;zatay, F., and G. Sak. 2002.
 "The 2000-2001 Financial Crisis in Turkey." Paper prepared for the
 Brookings Trade Forum 2002, Washington, DC, May 2.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>27</BIBL>	<BIBTEXT>Sachs, J.; A. Tornell; and
 A. Velasco. 1996. "The Collapse of the Mexican Peso: What Have We
 Learned?" Economic Policy 11, no. 22: 15-63.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>28</BIBL>	     <BIBTEXT>Sobolev, Y.V. 2000.
 "Exchange-Rate-Based Stabilization: A Model of Financial Fragility." IMF
 Working Paper No. 122, Washington, DC.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>29</BIBL>	    <BIBTEXT>Stiglitz, J.E. 2002. Globalization and
 Its Discontents. New York: W.W. Norton.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>30</BIBL>	     <BIBTEXT>Undersecretary of Treasury. 2001.
 "Strengthening the Turkish Economy: Turkey's Transition Program." Ankara,
 May.</BIBTEXT>      </REF>	 <REF>	      <BIBL>31</BIBL>	    
 <BIBTEXT>------. 2003. "Economic Indicators." Ankara (available at
 www.treasury.gov.tr/stat/ egosterge).</BIBTEXT>      </REF>	  <REF>    
    <BIBL>32</BIBL>	   <BIBTEXT>Yeldan, E. 2001. "On the IMF-Directed
 Disinflation Program in Turkey: A Program for Stabilization and Austerity
 or a Recipe for Impoverishment and Financial Chaos?" Working Paper,
 Economics Department, Bilkent University, Ankara.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:3:p:84-100




Template-Type: ReDIF-Article 1.0
Author-Name: Diego  Quer 
Author-X-Name-First: Diego  
Author-X-Name-Last: Quer 
Author-Name: Enrique  Claver 
Author-X-Name-First: Enrique  
Author-X-Name-Last: Claver 
Title: Determinants of Spanish Foreign Direct Investment in Morocco 
Abstract:
 Despite its cultural distance, Morocco is becoming an interesting target
 country for foreign direct investment (FDI) from Spanish firms. Several
 factors facilitate this process: Morocco's geographical proximity,
 strategic location, emerging market, political stability, and workforce,
 as well as the know-how the country needs to complete its economic
 development. Based on traditional theories about FDI and the
 resource-based view of the firm, this paper analyzes the influence that
 various firm-specific factors may have exerted on the ownership structure
 of investments in Morocco. Our results suggest that Spanish firms that
 have chosen full ownership investments without the support of a partner
 have more than one investment in Morocco, and accumulate more experience
 in using that investing strategy in other countries.
Journal: Emerging Markets Finance and Trade 
Pages: 19-32 
Issue: 2 
Volume: 43 
Year: 2007 
Month: 4 
Keywords: foreign direct investment, Morocco, ownership structure, Spanish firms, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U6140K3T01268473 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agarwal, S., and S.N.
 Ramaswami. 1992. "Choice of Foreign Market Entry Mode: Impact of
 Ownership, Location and Internalization Factors." >i>Journal of
 International Business Studies>/i>23, no. 1: 1-27.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>2</BIBL>        <BIBTEXT> Barney, J.B. 1991. "Firm
 Resources and Sustained Competitive Advantage." >i>Journal of
 Management>/i>17, no. 1: 99-120.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>3</BIBL>        <BIBTEXT> Bhaumik, S.K., and S. Gelb. 2005.
 "Determinants of Entry Mode Choice of MNCs in Emerging Markets: Evidence
 from South Africa and Egypt." >i>Emerging Markets Finance and Trade>/i>41,
 no. 2 (March-April): 5-24.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>4</BIBL>        <BIBTEXT> Brouthers, K.D. 2002. "Institutional,
 Cultural and Transaction Cost Influences on Entry Mode Choice and
 Performance." >i>Journal of International Business Studies>/i>33, no. 2:
 203-221.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Brouthers, K.D., and L.E. Brouthers. 2003. "Why Service and
 Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost
 Factors, Risk and Trust." >i>Journal of Management Studies>/i>40, no. 5:
 1179-1204.</BIBTEXT>	   </REF>      <REF>	    <BIBL>6</BIBL>	 
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Handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:19-32




Template-Type: ReDIF-Article 1.0
Author-Name: Subhayu  Bandyopadhyay 
Author-X-Name-First: Subhayu  
Author-X-Name-Last: Bandyopadhyay 
Author-Name: Sudeshna C. Bandyopadhyay 
Author-X-Name-First: Sudeshna C. 
Author-X-Name-Last: Bandyopadhyay 
Title: Trade and Child Labor: A General Equilibrium Analysis 
Abstract:
 This paper augments the existing literature on trade and child labor by
 exploring the effects of terms-of-trade changes in the context of a
 three-good general equilibrium model, in which one of the goods is a
 nontraded good. We find that, under quasi-linear preferences, the effect
 of the terms of trade on child labor depends critically on the pattern of
 substitutability (or complementarity) in the excess demand functions
 between the export good and the nontraded good. We extend the analysis to
 the case in which factors move freely between the three goods, as in a
 Heckscher-Ohlin-type framework. Finally, we show that a balanced budget
 policy of taxing the education of skilled families to subsidize the
 education of unskilled families must reduce child labor without any effect
 on aggregate welfare.
Journal: Emerging Markets Finance and Trade 
Pages: 5-18 
Issue: 1 
Volume: 45 
Year: 2009 
Month: 1 
Keywords: child labor, nontraded goods, terms of trade, trade sanctions, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=P742Q787463U2003 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baland, J., and J.A.
 Robinson. 2000. "Is Child Labor Inefficient?" >i>Journal of Political
 Economy>/i> 8, no. 4: 663-679.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>2</BIBL>        <BIBTEXT> Bandyopadhyay, S., and S.C. Bandyopadhyay.
 2006. "Trade and Child Labor." Working Paper, Department of Economics,
 West Virginia University, Morgantown, WV.</BIBTEXT>	  </REF>      <REF>
	<BIBL>3</BIBL>	      <BIBTEXT> Basu, K., and P.H. Van. 1998. "The
 Economics of Child Labor." >i>American Economic Review>/i> 88, no. 3:
 412-427.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Basu, A.K., and N.H. Chau. 2004. "Exploitation of Child Labor
 and the Dynamics of Debt Bondage." >i>Journal of Economic Growth>/i> 9,
 no. 2: 209-238.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>    
    <BIBTEXT> Basu, A.K.; N.H. Chau; and U. Grote. 2006. "Guaranteed
 Manufactured Without Child Labor: The Economics of Consumer Boycotts,
 Trade Sanctions, and Social Labeling." >i>Review of Development
 Economics>/i> 10, no. 3: 466-491.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>6</BIBL>        <BIBTEXT> Cigno, A.; F.C. Rosati; and L. Guarcello.
 2002. "Does Globalization Increase Child Labor?" >i>World Development>/i>
 30, no. 9: 1579-1589.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>7</BIBL>        <BIBTEXT> Drenovsky, C.K. 1992. "Children's Labor
 Force Participation in the World System." >i>Journal of Comparative Family
 Studies>/i> 23, no. 2: 183-195.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>8</BIBL>        <BIBTEXT> Edmonds, E., and N. Pavcnik. 2005. "The
 Effect of Trade Liberalization on Child Labor." >i>Journal of
 International Economics>/i> 65, no. 2: 401-419.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Edmonds, E., and N. Pavcnik.
 2006. "International Trade and Child Labor: Cross-Country Evidence."
 >i>Journal of International Economics>/i> 68, no. 1: 115-140.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>10</BIBL>	   <BIBTEXT> Ethier, W.J.
 1984. "Higher Dimensional Issues in Trade Theory." In >i>Handbook of
 International Economics>/i>, vol. 1, ed. R.W. Jones and P.B. Kenen, pp.
 131-184. Amsterdam: North-Holland.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>11</BIBL>	<BIBTEXT> Hilowitz, J. 1998. >i>Labeling Child
 Labor Products: A Preliminary Study.>/i> Geneva: ILO-IPEC.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> International
 Labor Organization (ILO). 1973. Convention 138: "Minimum Age."
 Geneva.</BIBTEXT>	</REF>	    <REF>	 <BIBL>13</BIBL>       
 <BIBTEXT> International Labor Organization (ILO). 1999. Convention 182:
 "Convention Concerning the Prohibition and Immediate Action for the
 Elimination of the Worst Forms of Child Labor." Geneva.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> International
 Labor Organization (ILO). 2002. "A Future Without Child Labor: Global
 Report Under the Follow-up to the ILO Declaration on Fundamental
 Principles and Rights at Work." International Labor Conference, 90th
 Session, Report I(B), Geneva, June 3-20.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>15</BIBL>	      <BIBTEXT> Jafarey, S., and S. Lahiri. 2002.
 "Will Trade Sanctions Reduce Child Labor? The Role of Credit Markets."
 >i>Journal of Development Economics>/i> 68, no. 1: 137-156.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Ranjan, P. 2001.
 "Credit Constraints and the Phenomenon of Child Labor." >i>Journal of
 Development Economics>/i> 64, no. 1: 81-102.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Shelburne, R.C. 2001. "An
 Explanation of the International Variation in the Prevalence of Child
 Labor." >i>World Economy>/i> 24, no. 3: 359-378.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>18</BIBL>	      <BIBTEXT> Srivastava, J. 2003. "Child
 Labor in South Asia: Are Trade Sanctions the Answer?" CUTS Centre for
 International Trade, Economics and Environment, Jaipur, India.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>19</BIBL>	    <BIBTEXT> United
 Nations Children's Fund (UNICEF) and International Labor Organization
 (ILO). 2004. "Addressing Child Labor in the Bangladesh Garment Industry,
 1995-2001." New York and Geneva: UNICEF.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:1:p:5-18




Template-Type: ReDIF-Article 1.0
Author-Name: Y. SUBBA REDDY 
Author-X-Name-First: Y. SUBBA 
Author-X-Name-Last: REDDY 
Author-Name: SUBHRENDU RATH 
Author-X-Name-First: SUBHRENDU 
Author-X-Name-Last: RATH 
Title:         Disappearing Dividends in Emerging Markets?: Evidence from India       
Abstract:
       This study examines the dividend behavior of Indian corporate firms
 in an emerging market (India), identifying characteristics of dividend
 payers and nonpayers from 1991 to 2001. Dividend trends for a large sample
 of stocks traded on Indian markets indicate that the percentage of
 companies paying dividends declined, from over 57 percent in 1991 to 32
 percent in 2001, and that only a few firms paid regular dividends. Even
 though regular payers consistently paid higher dividends than did other
 firms, on average, Indian firms became less likely to pay dividends by the
 close of the century. Dividend-paying companies were likely to be larger
 and more profitable than nonpaying companies, though growth opportunities
 do not seem to have significantly influenced the dividend policies of
 Indian firms.	  
Journal: Emerging Markets Finance and Trade 
Pages: 58-82 
Issue: 6 
Volume: 41 
Year: 2005 
Month: 11 
Keywords: dividends, India, payout policy, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=77MTMG5YFW8DPJCV 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Adaoglu, C. 2000.
 "Instability in the Dividend Policy of the Istanbul Stock Exchange (ISE)
 Corporations: Evidence from an Emerging Market." Emerging Markets Review
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 2002. "Impact of Agency Cost on Leverage and Dividend Policies." ICFAI
 Journal of Applied Finance 8, no. 2: 16-25.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>23</BIBL>	     <BIBTEXT>Ramcharran, H. 2001. "An
 Empirical Model of Dividend Policy in Emerging Equity Mar-kets." Emerging
 Markets Quarterly 5 (Spring): 39-49.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>24</BIBL>	  <BIBTEXT>Sahu, C. 2002. "An Empirical Test of
 Stable Dividend Hypothesis." Finance India 16, no. 2: 613-626.</BIBTEXT>  
    </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:6:p:58-82




Template-Type: ReDIF-Article 1.0
Author-Name: SUMON KUMAR BHAUMIK 
Author-X-Name-First: SUMON KUMAR 
Author-X-Name-Last: BHAUMIK 
Title:         Guest Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-6 
Issue: 6 
Volume: 41 
Year: 2005 
Month: 11 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=FNWBRV14VFX2TKPN 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:41:y:2005:i:6:p:3-6




Template-Type: ReDIF-Article 1.0
Author-Name: Deniz  Atasoy 
Author-X-Name-First: Deniz  
Author-X-Name-Last: Atasoy 
Author-Name: Sweta C. Saxena 
Author-X-Name-First: Sweta C. 
Author-X-Name-Last: Saxena 
Title: Misaligned? Overvalued?. The Untold Story of the Turkish Lira 
Abstract:
 Scholars agree that overvalued exchange rates result in currency crises.
 This paper estimates the equilibrium real exchange rate for Turkey,
 finding that the lira was indeed overvalued before the crises in 1994 and
 2001. However, the actual real exchange rate is at present close to the
 equilibrium level, exposing the myth propagated by Turkish exporters that
 the lira's overvaluation is responsible for Turkey's uncompetitive
 exports. The paper also highlights the role for fiscal adjustment in
 macroeconomic stability.
Journal: Emerging Markets Finance and Trade 
Pages: 29-45 
Issue: 3 
Volume: 42 
Year: 2006 
Month: 5 
Keywords: equilibrium real exchange rate, misalignment, overvaluation, Turkish lira, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R135G500817H4723 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agenor, P.-R.; C.J.
 McDermott; and E.M. Ucer. 1997. "Fiscal Imbalance, Capital Inflows and the
 Real Exchange Rate: The Case of Turkey." International Monetary Fund
 Working Paper 97/1, Washington, DC.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>2</BIBL>	<BIBTEXT> Airaudo, M. 2004. "Can Turkey Move to
 Explicit Inflation Targeting? Some Lessons from a Simple Model of Policy
 Design with Imperfect Credibility." Center for European Policy Studies,
 Brussels, Belgium.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL> 
       <BIBTEXT> Alberola, E.; S. Cervero; J. Humberto Lopez; and A. Ubide.
 1999. "Global Equilibrium Exchange Rates: Euro, Dollar, 'Ins,' 'Outs,' and
 Other Major Currencies in a Panel Cointegration Framework." International
 Monetary Fund Working Paper 99/175, Washington, DC.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Alper, C.E., and I.
 Saglam. 2000. "The Equilibrium Real Exchange Rate: Evidence from Turkey."
 >i>Topics in Middle Eastern and North African Economies>/i>>b>2>/b>
 (September) (available at www.sba.luc.edu/orgs/meea/).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Asikoglu, Y., and
 M. Uctum. 1992. "A Critical Evaluation of Exchange Rate Policy in Turkey."
 >i>World Development>/i>>b>20>/b>, no. 10: 1501-1514.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Calvo, G., and C.
 Vegh. 1999. "Inflation Stabilization and BOP Crises in Developing
 Countries." In >i>Handbook of Macroeconomics>/i>, vol. 1c, ed. J. Taylor
 and M. Woodford, pp. 1531-1614. Amsterdam: Elsevier.</BIBTEXT>      </REF>
      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT> Cerra, V., and S.C.
 Saxena. 2002. "What Caused the 1991 Currency Crisis in India?" >i>IMF
 Staff Papers>/i>>b>49>/b>, no. 3: 395-425.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Dordoodian, K.; C. Jung; and
 A. Yucel. 2002. "Estimating the Equilibrium Real Exchange Rate: the Case
 of Turkey." >i>Applied Economics>/i>>b>34>/b>, no. 14 (September):
 1807-1812.</BIBTEXT>	   </REF>      <REF>	    <BIBL>9</BIBL>	 
 <BIBTEXT> Edwards, S. 1989. >i>Real Exchange Rates, Devaluations and
 Adjustments.>/i> Cambridge, MA: MIT Press.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Edwards, S. 1994. "Real and
 Monetary Determinants of Real Exchange Rate Behavior: Theory and Evidence
 from Developing Countries." In >i>Estimating Equilibrium Exchange
 Rates>/i>, ed. J. Williamson, pp. 61-91. Washington, DC: Institute for
 International Economics.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>11</BIBL>	<BIBTEXT> Elbadawi, I.A. 1994. "Estimating Long-Run
 Equilibrium Real Exchange Rates." In >i>Estimating Equilibrium Exchange
 Rates>/i>, ed. J. Williamson, pp. 93-131. Washington, DC: Institute for
 International Economics.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>12</BIBL>	<BIBTEXT> Erlat, H., and G. Erlat. 1998. "Permanent
 and Temporary Shocks on Real and Nominal Exchange Rates in Turkey During
 the Post-1980 Period." >i>Atlantic Economic Journal>/i>>b>26>/b>, no. 4:
 379-396.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Erol, T., and S. van Wijnbergen. 1997. "Real Exchange Rate
 Targeting and Inflation in Turkey: An Empirical Analysis with Policy
 Credibility." >i>World Development>/i>>b>25>/b>, no. 10:
 1717-1730.</BIBTEXT>	   </REF>      <REF>	    <BIBL>14</BIBL>	  
 <BIBTEXT> Europa. 2004a. "Turkey: Presidency Conclusions." European
 Commission, Brussels (available at >a target="_blank"
 href='europa.eu.int/comm/enlargement/turkey/pdf/presidency_conclusions16_1
 7_12_04.pdf).'>europa.eu.int/comm/enlargement/turkey/pdf/presidency_conclu
 sions16_17_12_04.pdf).>/a></BIBTEXT>	   </REF>      <REF>	   
 <BIBL>15</BIBL>	<BIBTEXT> Europa. 2004b. "Turkey: The Commission
 Recommends Opening Accession Negotiations." European Commission, Brussels
 (available at >a target="_blank"
 href='www.europa.eu.int/scadplus/leg/en/lvb/e50015.htm'>www.europa.eu.int/
 scadplus/leg/en/lvb/e50015.htm>/a></BIBTEXT>	   </REF>      <REF>	   
 <BIBL>16</BIBL>	<BIBTEXT> Ghosh, A.R. 2002. "The Rise of the
 Sterling Real Exchange Rate." United Kingdom: Selected Issues,
 International Monetary Fund Country Report 02/46, International Monetary
 Fund, Washington, DC.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>17</BIBL>	<BIBTEXT> Gokkent, G.; C. Moslares; and R.
 Amiel-Saenz. 2003. "Failure of an Exchange-Rate-Based Stabilization Plan
 in Turkey." >i>Eastern European Economics>/i>>b>41>/b>, no. 1:
 35-67.</BIBTEXT>      </REF>	   <REF>	<BIBL>18</BIBL>       
 <BIBTEXT> Gonzalo, J., and C. Granger. 1995. "Estimation of Common
 Long-Memory Components in Cointegrated Systems." >i>Journal of Business
 and Economic Statistics>/i>>b>13>/b>, no. 1: 27-35.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Guncavdi, O., and B.Z.
 Orbay. 2001. "Exchange Rates, Relative Domestic Prices, and Disinflation
 Program in Turkey." >i>Russian and East European Finance and
 Trade>/i>>b>37>/b>, no. 4 (July-August): 39-49.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Johansen, S. 1991.
 "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian
 Vector Autoregressive Models." >i>Econometrica>/i>>b>59>/b>, no. 6:
 1551-1580.</BIBTEXT>	   </REF>      <REF>	    <BIBL>21</BIBL>	  
 <BIBTEXT> Kale, P. 2001. "Turkey's Trade Balance in the Short and the Long
 Run: Error Correction Modeling and Cointegration." >i>International Trade
 Journal>/i>>b>15>/b>, no. 1: 27-56.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>22</BIBL>	 <BIBTEXT> Kalkan, M. 2002. "Capital Flows and
 Exchange Rates in Turkey: The Effects of Liberalization and
 Stabilization." American University, Department of Economics, Washington,
 DC, November 14.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>  
      <BIBTEXT> Kaminsky, G.; S. Lizondo; and C. Reinhart. 1998. "Leading
 Indicators of Currency Crises." >i>IMF Staff Papers>/i>>b>45>/b>, no. 1:
 1-48.</BIBTEXT>      </REF>	  <REF>        <BIBL>24</BIBL>	     
 <BIBTEXT> Keyder, N. 2001. "The Aftermath of the Exchange Rate-Based
 Program and the November 2000 Financial Crisis in Turkey." >i>Russian and
 East European Finance and Trade>/i>>b>37>/b>, no. 5 (September-October):
 22-44.</BIBTEXT>      </REF>	   <REF>	<BIBL>25</BIBL>       
 <BIBTEXT> Kipici, A.N. 1996. "Terms of Trade and Economic Fluctuations."
 Central Bank of Turkey Discussion Paper 9615, Ankara, Turkey.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>26</BIBL>	   <BIBTEXT> Mackinnon,
 J.G. 1994. "Approximate Asymptotic Distribution Functions for Unit-Root
 and Cointegration Tests." >i>Journal of Business & Economic Statistics,
 American Statistical Association>/i>>b>12>/b>, no. 2: 167-176.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>27</BIBL>	    <BIBTEXT> Montiel, P.
 1997. "The Theory of the Long-Run Equilibrium Exchange Rate." Williams
 College, Department of Economics, Williamstown, MA.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>28</BIBL>	 <BIBTEXT> Ozlale, U., and E.
 Yeldan. 2002. "Measuring Exchange Rate Misalignment in Turkey." Bilkent
 University, Department of Economics, Ankara.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>29</BIBL>	     <BIBTEXT> Sarno, L. 2000. "Real
 Exchange Rate Behavior in High Inflation Countries: Empirical Evidence
 from Turkey, 1980-97." >i>Applied Economics Letters>/i>>b>7>/b>, no. 5
 (May): 285-291.</BIBTEXT>	</REF>	    <REF>	 <BIBL>30</BIBL>   
     <BIBTEXT> Saxena, S.C. 2000. "Essays in Exchange Rate Dynamics and
 Currency Crises in Asia." Ph.D. dissertation, University of
 Washington.</BIBTEXT>	    </REF>	<REF>	     <BIBL>31</BIBL>	   
 <BIBTEXT> Saxena, S.C. 2002. "Exchange Rate Dynamics in Indonesia:
 1980-98." >i>Journal of Asian Economics>/i>>b>13>/b>, no. 4:
 545-563.</BIBTEXT>	 </REF>      <REF>	  <BIBL>32</BIBL>	
 <BIBTEXT> Taylor, J. 2000. "Low Inflation, Pass-Through, and the Pricing
 Power of Firms." >i>European Economic Review>/i>>b>44>/b>, no. 7 (June):
 1389-1408.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:3:p:29-45




Template-Type: ReDIF-Article 1.0
Author-Name: Janusz  Brzeszczynski 
Author-X-Name-First: Janusz  
Author-X-Name-Last: Brzeszczynski 
Author-Name: Aleksander  Welfe 
Author-X-Name-First: Aleksander  
Author-X-Name-Last: Welfe 
Title: Are There Benefits from Trading Strategy Based on the Returns Spillovers to the Emerging Stock Markets?: Evidence from Poland 
Abstract:
 This study investigates benefits from a trading strategy based on the
 spillovers from international stock markets to the Polish emerging stock
 market. The analysis is conducted within the framework of factor and
 predictive generalized autoregressive conditional heteroskedasticity
 (GARCH) models of the Warsaw Stock Exchange main index, WIG. We apply an
 approach in which the mean equation of the GARCH model includes a
 deterministic part incorporating cross-markets linkages. Both in-sample
 and out-of-sample forecasts from the estimated models are calculated. The
 trading strategy is based on signals from the out-of-sample predictions.
 The models' performance and benefits from adopting such a strategy are
 evaluated using direction quality measures. Our results suggest that
 predictive models using cross-market linkages can produce superior
 out-of-sample forecasts compared to benchmarks.
Journal: Emerging Markets Finance and Trade 
Pages: 74-92 
Issue: 4 
Volume: 43 
Year: 2007 
Month: 8 
Keywords: direction quality measures, emerging market, factor GARCH, in-sample versus out-of-sample forecasts, predictive GARCH, stock market, trading strategy, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=R12K115500202134 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Andersen, T., and T.
 Bollerslev. 1998. "Answering the Skeptics: Yes, Standard Volatility Models
 Do Provide Accurate Forecasts." >i>International Economic Review>/i> 39,
 no. 4: 885-905.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>    
    <BIBTEXT> Bekaert, G., and C.R. Harvey. 1997. "Emerging Equity Market
 Volatility." >i>Journal of Financial Economics>/i> 43, no. 1:
 29-77.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> Bekaert, G., and C.R. Harvey. 2000. "Foreign Speculators and
 Emerging Equity Markets." >i>Journal of Finance>/i> 55, no. 2:
 565-613.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Bekaert, G.; C.R. Harvey; and A. Ng. 2005. "Market Integration
 and Contagion." >i>Journal of Business>/i> 78, no. 1: 39-69.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT> Blume, L.; D.
 Easley; and M. O'Hara. 1994. "Market Statistics and Technical Analysis:
 The Role of Volume." >i>Journal of Finance>/i> 49, no. 1:
 153-181.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Bohl, M., and H. Henke. 2003. "Trading Volume and Stock Market
 Volatility: The Polish Case." >i>International Review of Financial
 Analysis>/i> 12, no. 5: 513-525.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>7</BIBL>        <BIBTEXT> Bollerslev, T. 1986. "Generalized
 Autoregressive Conditional Heteroskedasticity." >i>Journal of
 Econometrics>/i> 31, no. 3: 307-327.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>8</BIBL>	 <BIBTEXT> Bollerslev, T.; R.Y. Chou; and K.F.
 Kroner. 1992. "ARCH Modeling in Finance." >i>Journal of Econometrics>/i>
 52, nos. 1-2: 5-59.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>
	<BIBTEXT> Bollerslev, T.; R.F. Engle; and D. Nelson. 1994. "ARCH
 Models." In >i>Handbook of Econometrics>/i>, Vol. IV., ed. R.F. Engle and
 D.L. McFadden, pp. 2959-3038. Amsterdam: Elsevier Science.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Campbell, J.Y.;
 S.J. Grossman; and J. Wang. 1993. "Trading Volume and Serial Correlation
 in Stock Returns." >i>Quarterly Journal of Economics>/i> 108, no. 4:
 905-939.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Cheung, Y.-W., and L.K. Ng. 1996. "A Causality-in-Variance Test
 and Its Application to Financial Market Prices." >i>Journal of
 Econometrics>/i> 72, nos. 1-2: 33-48.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>12</BIBL>	   <BIBTEXT> Climent, F.J., and V. Meneu. 2003.
 "Has 1997 Asian Crisis Increased Information Flows Between International
 Markets?" >i>International Review of Economics and Finance>/i> 12, no. 1:
 111-143.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Dacorogna, M.M.; R. GenÃ§ay; U.A. MÃ¼ller; R.B. Olsen; and O.V.
 Pictet. 2001. >i>An Introduction to High-Frequency Finance.>/i> San Diego:
 Academic Press.</BIBTEXT>	</REF>	    <REF>	 <BIBL>14</BIBL>   
     <BIBTEXT> Dacorogna, M.M.; U.A. MÃ¼ller; R.B. Olsen; and O.V. Pictet.
 1998. "Modeling Short-Term Volatility with GARCH and HARCH Models." In
 >i>Nonlinear Modeling of High Frequency Financial Time Series>/i>, ed. C.
 Dunis and B. Zhou, pp. 161-176. Chichester, UK: John Wiley.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Engle, R.F.
 1982. "Autoregressive Conditional Heteroskedasticity with Estimates of the
 Variance of United Kingdom Inflation." >i>Econometrica>/i> 50, no. 4:
 987-1007.</BIBTEXT>	  </REF>      <REF>	   <BIBL>16</BIBL>	 
 <BIBTEXT> Eun, C.S., and S. Shim. 1989. "International Transmission of
 Stock Market Movements." >i>Journal of Financial and Quantitative
 Analysis>/i> 24, no. 2: 241-256.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>17</BIBL>	<BIBTEXT> Forbes, K.J., and R. Rigobon. 2002. "No
 Contagion, Only Interdependence: Measuring Stock Market Co-Movements."
 >i>Journal of Finance>/i> 57, no. 5: 2223-2261.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> Hamao, Y.; R. Masulis; and
 V. Ng. 1990. "Correlations in Price Changes and Volatility Across
 International Stock Markets." >i>Review of Financial Studies>/i> 3, no. 2:
 281-307.</BIBTEXT>	 </REF>      <REF>	  <BIBL>19</BIBL>	
 <BIBTEXT> Hsu, C. 1998. >i>Volume and Nonlinear Dynamics of Stock
 Returns.>/i> Berlin: Springer-Verlag.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>20</BIBL>	   <BIBTEXT> Karpoff, J.M. 1987. "The Relation
 Between Price Changes and Trading Volume: A Survey." >i>Journal of
 Financial and Quantitative Analysis>/i> 22, no. 1: 109-126.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>
 Kasch-Haroutounian, M., and S. Price. 2001. "Volatility in the Transition
 Markets of Central Europe." >i>Applied Financial Economics>/i> 11, no. 1:
 93-105.</BIBTEXT>	</REF>	    <REF>	 <BIBL>22</BIBL>       
 <BIBTEXT> King, M.A., and S. Wadhwani. 1990. "Transmission of Volatility
 Between Stock Markets." >i>Review of Financial Studies>/i> 3, no. 1:
 5-33.</BIBTEXT>      </REF>	  <REF>        <BIBL>23</BIBL>	     
 <BIBTEXT> Lin, W.-L.; R.F. Engle; and T. Ito. 1994. "Do Bulls and Bears
 Move Across Borders? International Transmission of Stock Returns and
 Volatility as the World Turns." >i>Review of Financial Studies>/i> 7, no.
 3: 507-538.</BIBTEXT>	    </REF>	<REF>	     <BIBL>24</BIBL>	   
 <BIBTEXT> Longin, F., and B. Solnik. 2001. "Extreme Correlation of
 International Equity Markets." >i>Journal of Finance>/i> 56, no. 2:
 649-676.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> Masih, A.M.M., and R. Masih. 2001. "Long and Short-Term Dynamic
 Causal Transmission Amongst International Stock Markets." >i>Journal of
 International Money and Finance>/i> 20, no. 4: 563-587.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT> Meese, R.A., and
 K. Rogoff. 1983. "Empirical Exchange Rate Models of the Seventies: Do They
 Fit Out of Sample?" >i>Journal of International Economics>/i> 14, no. 1:
 3-24.</BIBTEXT>      </REF>	  <REF>        <BIBL>27</BIBL>	     
 <BIBTEXT> Ng, A. 2000. "Volatility Spillover Effects from Japan and the
 U.S. to the Pacific Basin." >i>Journal of International Money and
 Finance>/i> 19, no. 2: 207-233.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>28</BIBL>	<BIBTEXT> Peiro, A.; J. Quesada; and E. Uriel.
 1998. "Transmission of Movements in Stock Markets." >i>European Journal of
 Finance>/i> 4, no. 4: 331-343.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>29</BIBL>	<BIBTEXT> Pesaran, M.H., and A. Timmermann. 1992.
 "A Simple Nonparametric Test of Predictive Performance." >i>Journal of
 Business and Economic Statistics>/i> 10, no. 4: 461-465.</BIBTEXT>	
 </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:4:p:74-92




Template-Type: ReDIF-Article 1.0
Author-Name: MARIAN RIZOV 
Author-X-Name-First: MARIAN 
Author-X-Name-Last: RIZOV 
Title:         Credit Constraints and Profitability : Evidence from a Transition Economy       
Abstract:
       A conceptual framework for analyzing credit rationing and the link
 between credit access and profitability is developed. The empirical
 analysis using data from manufacturing firms in Bulgaria, an economy with
 dramatically changing credit constraints during transition, provides
 direct estimates of credit rationing and its impact on profitability and
 reform policy outcomes. The results from switching regressions show that
 the presence of credit market imperfections does impinge on profitability
 of firms and hinders industry restructuring. Policies fostering sound
 financial intermediation are suggested and discussed.	  
Journal: Emerging Markets Finance and Trade 
Pages: 63-83 
Issue: 4 
Volume: 40 
Year: 2004 
Month: 7 
Keywords: Bulgaria, credit rationing, financial intermediation, profitability, soft budget constraints, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M90PW6DVWKRCU0XD 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abel, A., and O.
 Blanchard. 1986. "The Present Value of Profits and Cyclical Movement in
 Investment." Econometrica 54, no. 1: 249-273.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Barham, B.; S. Boucher; and M.
 Carter. 1996. "Credit Constraints, Credit Unions, and Small-Scale
 Producers in Guatemala." World Development 24, no. 5: 793-806.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>3</BIBL>	   <BIBTEXT>Barisitz, S.
 2001. "The Development of the Romanian and Bulgarian Banking Sectors Since
 1990." Oesterreichische Nationalbank Focus on Transition 1:
 79-118.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>       
 <BIBTEXT>Berglof, E., and G. Roland. 1997. "Soft Budget Constraints and
 Credit Crunches in Financial Transition." European Economic Review 41,
 nos. 3-5: 807-817.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL> 
       <BIBTEXT>BNB. Various dates. Monetary Survey. Sofia: Bulgarian
 National Bank.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	   
   <BIBTEXT>Bratkowski, A.; I. Grosfeld; and J. Rostowski. 2000.
 "Investment and Finance in de Novo Private Firms." Economics of Transition
 8, no. 1: 101-116.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL> 
       <BIBTEXT>Broadman, H.; J. Anderson; C. Claessens; R. Ryterman; S.
 Slavona; M. Vagliasindi; and G. Vincelette. 2004. Building Market
 Institutions in South Eastern Europe: Comparative Prospects for Investment
 and Private Sector Development." Washington, DC: World Bank.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>8</BIBL>	 <BIBTEXT>Budina, N.; H.
 Garretsen; and E. de Jong. 2000. "Liquidity Constraints and Investment in
 Transition Economies: The Case of Bulgaria." Economics of Transition 8,
 no. 2: 453-475.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT>Calvo, G., and F. Coricelli. 1994. "Capital Market
 Imperfections and Output Response in Previously Centrally Planned
 Economies." In Building Sound Finance in Emerging Market Economies, ed. G.
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 Markets." Quarterly Journal of Economics 103, no. 1: 101-129.</BIBTEXT>   
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 Aftermath of Banking Crisis." IMF Staff Papers 44, no. 2:
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 1995. "What Do We Know About Capital Structure? Some Evidence from
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 <BIBTEXT>Rizov, M. 2001. "Capital Structure Theory and Its Practical
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 Five Central and Eastern European Countries: An Overview."
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 1995. "Financial Constraints and Investment: A Critical Review of
 Methodological Issues and International Evidence." In Is Bank Lending
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Handle: RePEc:mes:emfitr:v:40:y:2004:i:4:p:63-83




Template-Type: ReDIF-Article 1.0
Author-Name: Andre  Carvalhal 
Author-X-Name-First: Andre  
Author-X-Name-Last: Carvalhal 
Author-Name: Beatriz Vaz de Melo Mendes 
Author-X-Name-First: Beatriz Vaz 
Author-X-Name-Last: de Melo Mendes 
Title: Evaluating the Forecast Accuracy of Emerging Market Stock Returns 
Abstract:
 This paper analyzes the forecast performance of emerging market stock
 returns using standard autoregressive moving average (ARMA) and more
 elaborated autoregressive conditional heteroskedasticity (ARCH) models.
 Our results indicate that the ARMA and ARCH specifications generally
 outperform random walk models. Models that allow for asymmetric shocks to
 volatility are better for in-sample estimation (threshold autoregressive
 conditional heteroskedasticity for daily returns and exponential
 generalized autoregressive conditional heteroskedasticity for longer
 periods), and ARMA models are better for out-of-sample forecasts. The
 results are valid using both U. S. dollar and domestic currencies.
 Overall, the forecast errors of each Latin American market can be
 explained by the forecasts of other Latin American markets and Asian
 markets. The forecast errors of each Asian market can be explained by the
 forecasts of other Asian markets, but not by Latin American markets. Our
 predictability results are economically significant and may be useful for
 portfolio managers to enter or leave the market.
Journal: Emerging Markets Finance and Trade 
Pages: 21-40 
Issue: 1 
Volume: 44 
Year: 2008 
Month: 1 
Keywords: asymmetric shocks, emerging markets, forecasts, generalized autoregressive conditional heteroskedasticity (GARCH) models, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L3U0W431413585H5 
File-Format: text/html
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R.; C.
 Inclan; and R. Leal. 1999. "Volatility in Emerging Markets." >i>Journal of
 Financial and Quantitative Analysis>/i> 34, no. 1: 33-55.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Aiolfi, M., and
 C. Favero. 2005. "Model Uncertainty, Thick Modeling and the Predictability
 of Stock Returns." >i>Journal of Forecasting>/i> 24, no. 4:
 233-254.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Baillie, R.; T. Bollerslev; and H. Mikkelsen. 1996.
 "Fractionally Integrated Generalized Autoregressive Conditional
 Heteroskedasticity." >i>Journal of Econometrics>/i> 74, no. 1:
 3-30.</BIBTEXT>      </REF>	  <REF>        <BIBL>4</BIBL>	    
 <BIBTEXT> Bekaert, G., and C. Harvey. 1995. "Time-Varying World Market
 Integration." >i>Journal of Finance>/i> 50, no. 2: 403-444.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Bollerslev, T.
 1986. "Generalized Autoregressive Conditional Heteroskedasticity."
 >i>Journal of Econometrics>/i> 31, no. 3: 307-327.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>6</BIBL>        <BIBTEXT> Bollerslev, T.; R. Chou;
 and K. Kroner. 1992. "ARCH Modeling in Finance: A Review of the Theory and
 Empirical Evidence." >i>Journal of Econometrics>/i> 52, no. 1:
 5-59.</BIBTEXT>      </REF>	  <REF>        <BIBL>7</BIBL>	    
 <BIBTEXT> Campbell, J. 1987. "Stock Returns and the Term Structure."
 >i>Journal of Financial Economics>/i> 18, no. 2: 373-399.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Campbell, J., and
 B. Shiller. 1988. "The Dividend-Price Ratio and Expectations of Future
 Dividends and Discount Factors." >i>Review of Financial Studies>/i> 1, no.
 3: 195-228.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>	  
 <BIBTEXT> Campbell, J., and S. Thompson. 2005. "Predicting the Equity
 Premium Out-of-Sample: Can Anything Beat the Historical Average?" National
 Bureau of Economic Research Working Paper 11468, Cambridge, MA.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Chong, Y.,
 and D. Hendry. 1986. "Econometric Evaluation of Linear Macroeconomic
 Models." >i>Review of Economic Studies>/i> 53, no. 4: 671-690.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>11</BIBL>	    <BIBTEXT> Diebold, F.,
 and R. Mariano. 1995. "Comparing Predictive Accuracy." >i>Journal of
 Business and Economic Statistics>/i> 13, no. 3: 153-163.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Donaldson, R.,
 and M. Kamstra. 1996. "A New Dividend Forecast Procedure That Rejects
 Bubbles in Asset Prices." >i>Review of Financial Studies>/i> 9, no. 2:
 333-383.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Donaldson, R., and M. Kamstra. 1997. "An Artificial Neural
 Network-GARCH Model for International Stock Return Volatility." >i>Journal
 of Empirical Finance>/i> 4, no. 1: 17-46.</BIBTEXT>	  </REF>      <REF>
	<BIBL>14</BIBL>        <BIBTEXT> Engle, R. 1982. "Autoregressive
 Conditional Heteroskedasticity with Estimates of the Variance of United
 Kingdom Inflation." >i>Econometrica>/i> 50, no. 4: 391-407.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Errunza, V.; K.
 Hogan Jr.; O. Kini; and P. Padmanabhan. 1994. "Conditional
 Heteroskedasticity and Global Stock Returns Distribution." >i>Financial
 Review>/i> 29, no. 3: 293-317.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>16</BIBL>	<BIBTEXT> Fama, E., and K. French. 1989. "Business
 Conditions and Expected Returns on Stocks and Bonds." >i>Journal of
 Financial Economics>/i> 25, no. 1: 23-49.</BIBTEXT>	  </REF>      <REF>
	<BIBL>17</BIBL>        <BIBTEXT> Fan, W. 2003. "An Empirical Study
 of Cointegration and Causality in the Asia-Pacific Stock Markets."
 Department of Economics, Yale University, New Haven (available at >a
 target="_blank"
 href='http://ssrn.com/abstract=360160'>http://ssrn.com/abstract=360160>/a>
 </BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT>
 Fang, Y. 2003. "Forecasting Combination and Encompassing Tests."
 >i>International Journal of Forecasting>/i> 19, no. 1: 87-94.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>19</BIBL>	   <BIBTEXT> Ghosh, A.; R.
 Saidi; and K. Johnson. 1999. "Who Moves the Asia-Pacific Stock Markets: U.
 S. or Japan? Empirical Evidence Based on the Theory of Cointegration."
 >i>Financial Review>/i> 34, no. 1: 159-170.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Goyal, A., and I. Welch.
 2003. "Predicting the Equity Premium with Dividend Ratios." >i>Management
 Science>/i> 49, no. 5, 639-654.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>21</BIBL>	<BIBTEXT> Goyal, A., and I. Welch. 2007. "A
 Comprehensive Look at the Empirical Performance of Equity Premium
 Prediction." >i>Review of Financial Studies>/i> (forthcoming).</BIBTEXT>  
    </REF>	<REF>	     <BIBL>22</BIBL>	    <BIBTEXT> Hamilton, J.,
 and R. Susmel. 1994. "Auto-Regressive Conditional Heteroskedasticity and
 Changes in Regime." >i>Journal of Econometrics>/i> 64, no. 2:
 307-333.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT> Hansen, P., and A. Lunde. 2005. "A Forecast Comparison of
 Volatility Models: Does Anything Beat a GARCH (1,1)?" >i>Journal of
 Applied Econometrics>/i> 20, no. 7: 873-889.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>24</BIBL>	     <BIBTEXT> Kupiec, P. 1995. "Techniques
 for Verifying the Accuracy of Risk Measurement Models." >i>Journal of
 Derivatives>/i> 3, no. 2: 73-84.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>25</BIBL>	<BIBTEXT> Lettau, M., and S. Nieuwerburgh. 2007.
 "Reconciling the Return Predictability Evidence." >i>Review of Financial
 Studies>/i> (forthcoming).</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>26</BIBL>	<BIBTEXT> Lewellen, J. 2004. "Predicting Returns
 with Financial Ratios." >i>Journal of Financial Economics>/i> 74, no. 2:
 209-235.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT> Lunde, A., and A. Timmermann. 2005. "Completion Time Structures
 of Stock Price Movements." >i>Annals of Finance>/i> 1, no. 3:
 293-326.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT> Valle, R. 1998. "A Cointegration Analysis of Latin American
 Stock Markets and the U. S." University of Exeter, Mexico City (available
 at >a target="_blank"
 href='http://ssrn.com/abstract=86604'>http://ssrn.com/abstract=86604>/a></
 BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:44:y:2008:i:1:p:21-40




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 3 
Volume: 43 
Year: 2007 
Month: 6 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=2748361531JP7U26 
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:43:y:2007:i:3:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Ãzge  ÃeÅmeci 
Author-X-Name-First: Ãzge  
Author-X-Name-Last: ÃeÅmeci 
Author-Name: A. Ãzlem Ãnder 
Author-X-Name-First: A. Ãzlem 
Author-X-Name-Last: Ãnder 
Title: Determinants of Currency Crises in Emerging Markets: The Case of Turkey 
Abstract:
 This paper investigates possible determinants of currency crises in
 Turkey. We use three different techniquesânamely, the signaling
 approach, structural model, and Markov switching model with monthly data
 for the period 1992-2004. The results show that money market pressure
 index, real-sector confidence index, and public-sector variables are
 significant in explaining currency crises. Hence, one can say that banking
 crises lead to currency crises. Central banks' real-sector confidence
 index may be a good leading indicator for currency crises.
Journal: Emerging Markets Finance and Trade 
Pages: 54-67 
Issue: 5 
Volume: 44 
Year: 2008 
Month: 9 
Keywords: currency crises, exchange rate pressure index, Markov switching model, money market pressure index, signal approach, structural model, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=03883V7X2747686U 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abiad, A. 2003. "Early
 Warning System: A Survey and a Regime-Switching Approach." Working Paper
 32, International Monetary Fund, Washington DC.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> AkyÃ¼rek, C. 2006. "The
 Turkish Crisis of 2001: A Classic?" >i>Emerging Markets Finance and
 Trade>/i> 42, no. 1 (January-February): 5-32.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> AkyÃ¼z, Y., and K. Boratav.
 2003. "The Making of the Turkish Financial Crisis." >i>World
 Development>/i> 31, no. 9: 1549-1566.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>4</BIBL>	  <BIBTEXT> Alper, C. E. 2001. "The Turkish
 Liquidity Crisis of 2000:What Went Wrong?" >i>Russian and East European
 Finance and Trade>/i> 37, no. 6: 58-80.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>5</BIBL>	    <BIBTEXT> Alper, C. E., and Z. Onis. 2003.
 "Financial Globalization, the Democratic Deficit, and Recurrent Crises in
 Emerging Markets: The Turkish Experience in the Aftermath of Capital
 Account Liberalization." >i>Emerging Markets Finance and Trade>/i> 39, no.
 3 (May-June): 5-26.</BIBTEXT>	    </REF>	<REF>	     <BIBL>6</BIBL>
	<BIBTEXT> Berg, A., and C. Pattilo. 1999. "Are Currency Crises
 Predictable? A Test." >i>IMF Staff Papers>/i> 46, no. 2:
 107-121.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> BrÃ¼ggemann, A., and T. Linne. 2002. "Are the Central and
 Eastern European Transition Countries Still Vulnerable to a Financial
 Crisis? Results from the Signals Approach." Bank of Finland's Institute
 for Economies in Transition (BOFIT) Discussion Paper 5/2002, Bank of
 Finland, Helsinki.</BIBTEXT>	   </REF>      <REF>	    <BIBL>8</BIBL> 
       <BIBTEXT> ÃeÅmeci, Ã. 2005. "TÃ¼rkiye'de Finansal Krizlerin
 Nedenleri" [The Determinants of Financial Crises in Turkey]. M. A. thesis,
 Department of Economics, Ege University, Izmir.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Chui, M. 2002. "Leading
 Indicators of Balance-of-Payments Crises: A Partial Review." Working Paper
 171, Bank of England, London.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Davies, R. B. 1987. "Hypothesis Testing
 when a Nuisance Parameter Is Present Only Under the Alternative."
 >i>Biometrika>/i> 74, no. 1: 33-43.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>11</BIBL>	 <BIBTEXT> Eichengreen, B.; A. Rose; and C.
 Wyplosz. 1995. "Exchange Market Mayhem: The Antecedents and Aftermath of
 Speculative Attacks." >i>Economic Policy>/i> 10, no. 21:
 249-312.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Evrensel, A. Y. 2004. "IMF Programs and Financial Liberalization
 in Turkey." >i>Emerging Markets Finance and Trade>/i> 40, no. 4
 (July-August): 5-19.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>13</BIBL>	<BIBTEXT> Frankel, J. A., and A. K. Rose. 1996.
 "Currency Crashes in Emerging Markets: An Empirical Treatment."
 International Finance Discussion Paper 534, Board of Governors of the
 Federal Reserve System, Washington, DC.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>14</BIBL>	     <BIBTEXT> Garcia, R., and P. Perron. 1996. "An
 Analysis of the Real Interest Rate Under Regime Shifts." >i>Review of
 Economics and Statistics>/i> 78, no. 1: 111-125.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>15</BIBL>	      <BIBTEXT> Glick, R., and M.
 Hutchison. 1999. "Banking and Currency Crisis: How Common are Twins?"
 Economic Policy Research Unit (EPRU) Working Paper Series 99-20,
 Department of Economics, University of Copenhagen.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>16</BIBL>	<BIBTEXT> Glick, R., and A. Rose.
 1998. "Contagion and Trade: Why Are Currency Crises Regional?" Working
 Paper Series 6806, National Bureau of Economic Research, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>17</BIBL>	   
 <BIBTEXT> Goldstein, M.; G. Kamisky; and C. Reinhart. 2000. >i>Assessing
 Financial Vulnerability: An Early Warning System for Emerging Markets.>/i>
 Washington, DC: Institute for International Economics.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Hamilton, J. D.
 1989. "A New Approach to Economic Analysis of Nonstationary Time Series
 and the Business Cycle." >i>Econometrica>/i> 57, no. 2: 357-384.</BIBTEXT>
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 F. 1995. >i>Dynamic Econometrics.>/i> Oxford: Oxford University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>20</BIBL>       
 <BIBTEXT> Jeanne, O., and P. Masson. 2000. "Currency Crises, Sunspots, and
 Markov-Switching Regimes." >i>Journal of International Economics>/i> 50,
 no. 2: 327-350.</BIBTEXT>	</REF>	    <REF>	 <BIBL>21</BIBL>   
     <BIBTEXT> Kaminsky, G. L., and C. M. Reinhart. 1998. "Leading
 Indicators of Currency Crises." >i>IMF Staff Papers>/i> 45, no. 1:
 1-45.</BIBTEXT>      </REF>	  <REF>        <BIBL>22</BIBL>	     
 <BIBTEXT> Kaminsky, G. L., and C. M. Reinhart. 1999. "The Twin Crises: The
 Causes of Banking and Balance-of-Payments Problems." >i>American Economic
 Review>/i> 89, no. 3: 473-485.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>23</BIBL>	<BIBTEXT> KibritÂ¸ioÄlu, B.; B. KÃ¶se; and G.
 UÄur. 2001. "A Leading Indicators Approach to the Predictability of
 Currency Crises: The Case of Turkey." Working Paper, EconWPA no. 0108001,
 Ankara (available at >a target="_blank"
 href='http://129.3.20.41/eps/if/papers/0108/0108001.pdf'>http://129.3.20.4
 1/eps/if/papers/0108/0108001.pdf)>/a></BIBTEXT>      </REF>	  <REF>    
    <BIBL>24</BIBL>	   <BIBTEXT> Kim, C.-J., and C. Nelson. 1999.
 >i>State Space Models with Regime Switching.>/i> Cambridge, MA: MIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>25</BIBL>       
 <BIBTEXT> Komulainen, T., and J. Lukkarila. 2003. "What Derives Financial
 Crises in Emerging Markets?" Discussion Papers 5, Bank of Finland's
 Institute for Economies in Transition (BOFIT), Helsinki.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT> Krolzig, H.-M.
 1997. >i>Markov Switching Vector Autoregressions: Modeling, Statistical
 Inference, and Application to Business Cycle Analysis>/i>, vol. 454.
 Berlin: Springer-Verlag.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>27</BIBL>	<BIBTEXT> Krznar, I. 2004. "Currency Crisis: Theory
 and Practice with Application to Croatia." Working Paper W-12, Croation
 National Bank, Zagreb.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>28</BIBL>	<BIBTEXT> Kumar, M.; U. Moorthy; and W. Perraudin.
 2002. "Predicting Emerging Market Currency Crashes." Working Paper 02/7,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>29</BIBL>	     <BIBTEXT> Mariano, R. S.; B. N.
 Gultekin; S. Ozmucur; T. Shabbir; and E. Alper. 2004. "Prediction of
 Currency Crises: Case of Turkey." >i>Review of Middle East Economics and
 Finance>/i> 2, no. 2: 87-107.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>30</BIBL>	<BIBTEXT> Nag, A., and A. Mitra. 1999. "Neural
 Networks and Early Warning Indicators of Currency Crisis." >i>Reserve Bank
 of India Occasional Papers>/i> 20, no. 2: 183-222.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>31</BIBL>	<BIBTEXT> Peltonen, T. 2002. "Are
 Currency Crises Predictable? An Application of Panel Estimation Methods
 and Artificial Neural Networks." Department of Economics, European
 University Institute, Florence.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>32</BIBL>	<BIBTEXT> Sachs, J.; A. Tornell; and A. Velasco.
 1996. "Financial Crises in Emerging Markets: The Lessons from 1995."
 >i>Brooking Papers on Economic Activity>/i> 1: 147-198.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>33</BIBL>	 <BIBTEXT> Tosuner, A.
 2005. "Finansal Krizler ve KÄ±rÄ±lganlÄ±k: TÃ¼rkiye Ä°Â¸in Bir Erken
 UyarÄ± Sistemi Denemesi" [Financial Crises and Fragility: An Early Warning
 System for the Turkish Economy]. >i>Ä°ktisat, Ä°sletme ve Finans>/i> 20,
 no. 235: 42-61.</BIBTEXT>	</REF>	    <REF>	 <BIBL>34</BIBL>   
     <BIBTEXT> ÃÂ¸er, M.; C. Rijckeghem; and R. Yolalan. 1998. "Leading
 Indicators of Currency Crises: A Brief Literature Survey and an
 Application to Turkey," >i>YapÄ± Kredi Economic Review>/i> 9, no. 2:
 3-25.</BIBTEXT>      </REF>	  <REF>        <BIBL>35</BIBL>	     
 <BIBTEXT> Von Hagen, J., and T.-K. Ho. 2004. "Money Market Pressure and
 Determinants of Banking Crises." Working Paper 20, Zentrum fÃ¼r
 EuropÃ¤ische Integrationsforschung,
 Rheinische-Friedrich-Wilhelms-UniversitÃ¤t Bonn.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:5:p:54-67




Template-Type: ReDIF-Article 1.0
Author-Name: Arijit  Ghosh 
Author-X-Name-First: Arijit  
Author-X-Name-Last: Ghosh 
Title: Determination of Executive Compensation in an Emerging Economy. Evidence from India 
Abstract:
 Most studies of the determination of executive compensation are based on
 the experience of developed countries, and mainly focus on Chief Executive
 Officer (CEO) compensation. Determination of board compensation is
 relatively ignored in the literature. This paper examines the effect of
 corporate governance, firm performance, and corporate diversification on
 the board, as well as CEO compensation and its components, in the context
 of an emerging economy-India-where a managerial market has yet to develop.
 Data for 462 firms for 1997-2002 in the Indian manufacturing sector have
 been used. This paper finds that board compensation largely depends on
 current- and past-year performance and diversification of the firm,
 whereas CEO compensation depends on current-year firm performance only.
 Among the personal attributes of the CEO, only in-firm experience has
 significant influence on CEO compensation. This finding contradicts the
 existing studies, where current- and past-year firm performance, as well
 as age, experience, and education of the CEO are important factors in
 determining CEO compensation.
Journal: Emerging Markets Finance and Trade 
Pages: 66-90 
Issue: 3 
Volume: 42 
Year: 2006 
Month: 5 
Keywords: board compensation, CEO compensation, firm diversification, firm performance, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A48646527L8L2RQ8 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R.K., and
 A.A. Samwick. 2003. "Why Do Managers Diversify Their Firms? Agency
 Reconsidered." >i>Journal of Finance>/i>>b>58>/b>, no. 1:
 71-118.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>       
 <BIBTEXT> Brick, I.E.; O. Palmon; and J.K. Wald. 2002. "CEO Compensation,
 Director Compensation, and Firm Performance: Evidence of Cronyism." Social
 Science Research Network Working Paper Series, New York.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Brickley, J.A.;
 J.L. Coles; and G. Jarrell. 1997. "Leadership Structure: Separating the
 CEO and Chairman of the Board." >i>Journal of Corporate Finance:
 Contracting, Governance and Organization>/i>>b>3>/b>, no. 3:
 189-222.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Cadbury, A. 1992. >i>The Cadbury Committee Report: Financial
 Aspects of Corporate Governance>/i>. Basingstoke, UK: Burgess Science
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT> Cheng, S. 2002. "R&D Expenditures and CEO Compensation." Social
 Science Research Network Working Paper Series, New York.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Core, J.E.; R.W.
 Holthausen; and D.F. Larcker. 1999. "Corporate Governance, Chief Executive
 Officer Compensation, and Firm Performance." >i>Journal of Financial
 Economics>/i>>b>51>/b>, no. 3: 371-406.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>7</BIBL>	    <BIBTEXT> Crystal, G. 1991. >i>In Search of
 Excess: The Overcompensation of American Executives>/i>. New York: W.W.
 Norton.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>       
 <BIBTEXT> Duru, A.I., and D.M. Reeb. 2002. "Geographic and Industrial
 Corporate Diversification: The Level and Structure of Executive
 Compensation." >i>Journal of Accounting, Auditing and
 Finance>/i>>b>17>/b>, no. 1: 1-24.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>9</BIBL>        <BIBTEXT> Fama, E.F., and M.C. Jensen. 1983. "Agency
 Problems and Residual Claims." >i>Journal of Law and
 Economics>/i>>b>26>/b>, no. 2: 327-349.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>10</BIBL>	     <BIBTEXT> Finkelstein, S., and D.C. Hambrick.
 1989. "Chief Executive Compensation: A Study of the Intersection of
 Markets and Political Processes." >i>Strategic Management
 Journal>/i>>b>10>/b>, no. 2: 121-134.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>11</BIBL>	   <BIBTEXT> Goyal, V.K., and C.W. Park. 2002.
 "Board Leadership Structure and CEO Turnover." >i>Journal of Corporate
 Finance: Contracting, Governance and Organization>/i>>b>8>/b>, no. 1:
 49-66.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>       
 <BIBTEXT> Jensen, M.C. 1986. "Agency Costs of Free Cash Flow, Corporate
 Finance, and Takeovers." >i>American Economic Review>/i>>b>76>/b>, no. 2:
 323-329.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Jensen, M.C. 1993. "The Modern Industrial Revolution, Exit, and
 the Failure of Internal Control Systems." >i>Journal of
 Finance>/i>>b>48>/b>, no. 3: 831-880.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>14</BIBL>	   <BIBTEXT> Jensen, M.C., and K.J. Murphy. 1990.
 "Performance Pay and Top-Management Incentives." >i>Journal of Political
 Economy>/i>>b>98>/b>, no. 2: 225-264.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>15</BIBL>	   <BIBTEXT> Holderness, C.G., and D.P. Sheehan.
 1998. "Constraints on Large-Block Shareholders." National Bureau of
 Economic Research Working Paper 6765, Cambridge, MA, October.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>16</BIBL>	   <BIBTEXT> Huson, M.R.;
 R. Parrino; and L.T. Starks. 2001. "Internal Monitoring Mechanisms and CEO
 Turnover: A Long-Term Perspective." >i>Journal of Finance>/i>>b>56>/b>,
 no. 6: 2265-2297.</BIBTEXT>	  </REF>      <REF>	   <BIBL>17</BIBL> 
       <BIBTEXT> Khanna, T., and K. Palepu. 1999. "Emerging Market Business
 Groups, Foreign Investors, and Corporate Governance." National Bureau of
 Economic Research Working Paper 6955, Cambridge, MA, February.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>18</BIBL>	    <BIBTEXT> King
 Committee on Corporate Governance. 2002. >i>King Report on Corporate
 Governance for South Africa-2002>/i>. Johannesburg: Institute of Directors
 in Southern Africa.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>19</BIBL>	<BIBTEXT> Kumar Mangalam Birla Committee. 1999.
 >i>Report of the Kumar Mangalam Birla Committee on Corporate
 Governance>/i>. Mumbai: Security and Exchange Board of India.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>20</BIBL>	   <BIBTEXT> Main, B.G.M.;
 C.A. O'Reilly III; and J. Wade. 1995. "The CEO, the Board of Directors and
 Executive Compensation: Economic and Psychological Perspectives."
 >i>Industrial and Corporate Change>/i>>b>4>/b>, no. 2: 293-332.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT> Palia, D.
 2001. "The Endogeneity of Managerial Compensation in Firm Valuation: A
 Solution." >i>Review of Financial Studies>/i>>b>14>/b>, no. 3:
 735-764.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Rose, N.L., and A. Shepard. 1997. "Firm Diversification and CEO
 Compensation: Managerial Ability or Executive Entrenchment?" >i>RAND
 Journal of Economics>/i>>b>28>/b>, no. 3: 489-514.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>23</BIBL>	<BIBTEXT> Ryan, H.E., Jr., and R.A.
 Wiggins III. 2001. "The Influence of Firm- and Manager-Specific
 Characteristics on the Structure of Executive Compensation." >i>Journal of
 Corporate Finance: Contracting, Governance and Organization>/i>>b>7>/b>,
 no. 2: 101-123.</BIBTEXT>	</REF>	    <REF>	 <BIBL>24</BIBL>   
     <BIBTEXT> Saha, B., and S. Sarkar. 1999. "Schooling, Informal
 Experience, and Formal Sector Earnings: A Study of Indian Workers."
 >i>Review of Development Economics>/i>>b>3>/b>, no. 2: 187-199.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT> Sarkar, J.,
 and S. Sarkar. 2000. "Large Shareholder Activism in Developing Countries:
 Evidence from India." >i>International Review of Finance>/i>>b>1>/b>, no.
 3: 161-194.</BIBTEXT>	    </REF>	<REF>	     <BIBL>26</BIBL>	   
 <BIBTEXT> Shleifer, A., and R.W. Vishny. 1990. "Equilibrium Short Horizons
 of Investors and Firms." >i>American Economic Review>/i>>b>80>/b>, no. 2:
 148-153.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:3:p:66-90




Template-Type: ReDIF-Article 1.0
Author-Name: BERND SÜSSMUTH 
Author-X-Name-First: BERND 
Author-X-Name-Last: SÜSSMUTH 
Author-Name: ULRICH WOITEK 
Author-X-Name-First: ULRICH 
Author-X-Name-Last: WOITEK 
Title:         Business Cycles and Comovement in Mediterranean Economies : A National and Areawide Perspective       
Abstract:
       This paper analyzes business cycle characteristics for a sample of
 eleven European, Middle East, and North African (MENA) economies in the
 Mediterranean region. Our frequency domain approach allows for the
 estimation of time-dependent spectral measures for different ranges of
 potential cycle length. To address the issue of synchronization, we
 decompose the variance for different frequency bands into an explained and
 an unexplained part and distinguish between in-phase and out-of-phase
 movements. By plotting our measures against time, we analyze changes in
 the similarity of the business cycle structure, as well as changes in
 comovement. We find (1) differences of business cycles across, and (2)
 changes of comovement over, the observation period between the European
 economies, on one hand, and the MENA economies, on the other.	  
Journal: Emerging Markets Finance and Trade 
Pages: 7-27 
Issue: 6 
Volume: 40 
Year: 2004 
Month: 11 
Keywords: business cycles, comovement, stylized facts, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=VPY7YJB0B6GTYY5N 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>A'Hearn, B., and U.
 Woitek. 2001. "More International Evidence on the Historical Properties of
 Business Cycles." Journal of Monetary Economics 47, no. 2:
 299-319.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT>Ahmed, S.; A. Levin; and B.A. Wilson. 2002. "Recent U.S.
 Macroeconomic Stability: Good Policies, Good Practice, or Good Luck?"
 International Finance Division Discussion Paper No. 730, Board of
 Governors of the Federal Reserve System, Washington, DC.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>Anderson, H.M.,
 and J.B. Ramsey. 2002. "U.S. and Canadian Industrial Production Indices as
 Coupled Oscillators." Journal of Economic Dynamics and Control 26, no. 1:
 33-67.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT>Artis, M.J., and W. Zhang. 1999. "Further Evidence on the
 International Business Cycle and the ERM: Is There a European Business
 Cycle?" Oxford Economic Papers 51, no. 1 (January): 120-132.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT>Baxter, M., and
 R.G. King. 1999. "Measuring Business Cycles. Approximate Band-Pass Filters
 for Economic Time Series." Review of Economics and Statistics 81, no. 4
 (November): 575-593.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>6</BIBL>        <BIBTEXT>Brockwell, P.J., and R.A. Davis. 1991. Time
 Series: Theory and Methods, 2d ed. Berlin: Springer-Verlag.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT>Christiano, L.J.
 1988. "Why Does Inventory Investment Fluctuate So Much?" Journal of
 Monetary Economics 21, nos. 2-3: 247-280.</BIBTEXT>	  </REF>      <REF>
	<BIBL>8</BIBL>	      <BIBTEXT>Christiano, L.J., and T. Fitzgerald.
 1999. "The Band Pass Filter." National Bureau of Economic Research Working
 Paper No. 7257, Cambridge, MA.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>9</BIBL>        <BIBTEXT>Croux, C.; M. Forni; and L. Reichlin. 2001.
 "A Measure of Comovement for Economic Variables: Theory and Empirics."
 Review of Economics and Statistics 83, no. 2 (May): 232-241.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>10</BIBL>	  <BIBTEXT>De Haan, J.; R.
 Inklaar; and O. Sleijpen. 2002. "Have Business Cycles Become More
 Synchronized?" Journal of Common Market Studies 40, no. 1:
 23-42.</BIBTEXT>      </REF>	   <REF>	<BIBL>11</BIBL>       
 <BIBTEXT>Den Haan, W.J., and S. Sumner. 2001. "The Comovements Between
 Real Activity and Prices in the G7." National Bureau of Economic Research
 Working Paper No. 8195, Cambridge, MA.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>12</BIBL>	    <BIBTEXT>Duecker, M., and K. Wesche. 1999.
 "European Business Cycles: New Indices and Analysis of Their
 Synchronization." Federal Reserve Bank of St. Louis Working Paper No. 99-
 019, St. Louis, MO.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>13</BIBL>	<BIBTEXT>Fitzgerald, T.J. 1997. "Inventories and
 the Business Cycle: An Overview." Economic Review of the Federal Reserve
 Bank of Cleveland 33 (third quarter): 11-22.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT>Frankel, J.A., and A.K. Rose.
 1998. "The Endogeneity of the Optimum Currency Area." Economic Journal
 108, no. 449 (July): 1009-1025.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>15</BIBL>	<BIBTEXT>Harvey, A.C. 1992. Time Series Models, 2d
 ed. New York: Harvester Wheatsheaf.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>16</BIBL>	 <BIBTEXT>Hodrick, R., and E. Prescott. 1997.
 "Postwar U.S. Business Cycles: An Empirical Investigation." Journal of
 Money, Credit and Banking 29, no. 1 (February): 1-16.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT>Inklaar, R., and
 J. De Haan. 2001. "Is There Really an European Business Cycle? A Comment."
 Oxford Economic Papers 53, no. 2 (April): 215-220.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>18</BIBL>	<BIBTEXT>Koopmans, L.H. 1974. The
 Spectral Analysis of Time Series. New York: Academic Press.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT>Kydland, F.E.,
 and E.C. Prescott. 1990. "Business Cycles: Real Facts and a Monetary
 Myth." Federal Reserve Bank of Minneapolis, Quarterly Review 14 (Spring):
 3-18.</BIBTEXT>      </REF>	  <REF>        <BIBL>20</BIBL>	     
 <BIBTEXT>Maddison, A. 2001. The World Economy: A Millenial Perspective.
 Paris: Organization for Economic Cooperation and Development.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>21</BIBL>	   <BIBTEXT>McKenzie, M.D.
 1999. "The Impact of Exchange Rate Volatility on International Trade
 Flows." Journal of Economic Surveys 13, no. 1: 71-106.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT>Newey, W.K., and
 K.D. West. 1987. "A Simple Positive Semi-Definite, Heteroskedasticity and
 Autocorrelation Consistent Covariance Matrix." Econometrica 55, no. 3
 (May): 703-708.</BIBTEXT>	</REF>	    <REF>	 <BIBL>23</BIBL>   
     <BIBTEXT>Petri, P.A. 1997. "Trade Strategies for the Southern
 Mediterranean." Organization for Economic Cooperation and Development
 Center Technical Paper No. 127, Paris.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>24</BIBL>	    <BIBTEXT>Ravn, M.O., and H. Uhlig. 2002. "On
 Adjusting the Hodrick-Prescott Filter for the Frequency of Observations."
 Review of Economics and Statistics 84, no. 2 (May): 371-376.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>25</BIBL>	  <BIBTEXT>Selover, D.D.,
 and R.V. Jensen. 1999. "'Mode-Locking' and International Business Cycle
 Transmission." Journal of Economic Dynamics and Control 23, no. 4:
 591-618.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT>Stock, J.H., and M.W. Watson. 2002. "Has the Business Cycle
 Changed and Why?" National Bureau for Economic Research Working Paper No.
 9127, Cambridge, MA.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>27</BIBL>	<BIBTEXT>Süssmuth, B. 2002. "National and
 Supranational Business Cycles (1960-2000): A Multivariate Description of
 Central G7 and EUR015 NIPA Aggregates." ifo Studien 48, no. 3:
 481-511.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT>Turhan-Sayan, G., and S. Sayan. 2002. "Use of Time-Frequency
 Representations in the Analysis of Stock Market Data." In Computational
 Methods in Decision-Making, Economics and Finance, Applied Optimization
 Series, ed. E. Kontoghiorghes, B. Rustem, and S. Siokos, pp. 429-452.
 Dordrecht: Kluwer Academic Publishers.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>29</BIBL>	    <BIBTEXT>Woitek, U. 1996. "The G7-Countries: A
 Multivariate Description of Business Cycle Stylized Facts." In Dynamic
 Disequilibrium Modelling: Theory and Applications, ed. W. Barnett, G.
 Gandolfo, and C. Hillinger, pp. 283-309. Cambridge: Cambridge University
 Press.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:40:y:2004:i:6:p:7-27




Template-Type: ReDIF-Article 1.0
Author-Name: ELIF AKBOSTANCI 
Author-X-Name-First: ELIF 
Author-X-Name-Last: AKBOSTANCI 
Title:         Dynamics of the Trade Balance: The Turkish J-Curve       
Abstract:
       The J-curve hypothesis suggests a specific pattern for the response
 of the trade balance to real exchange rate changes; a real depreciation
 initially worsens the trade balance, but through time the trade balance
 improves, and thus the response of the trade balance over time generates a
 tilted J-shape. This study investigates the existence of a J-curve in the
 Turkish data in the 1987-2000 period by using quarterly data. First, an
 error correction model is estimated to differentiate between the long-run
 equilibrium and short-run dynamics. Then the response of trade balance to
 real exchange rate shocks is investigated by using the generalized impulse
 response methodology. Even though the suggested long-run pattern, which is
 the improvement of the trade balance in response to a real depreciation
 emerges, our results do not exactly support the J-curve hypothesis in the
 short run.    
Journal: Emerging Markets Finance and Trade 
Pages: 57-73 
Issue: 5 
Volume: 40 
Year: 2004 
Month: 9 
Keywords: cointegration, impulse response analysis, J-curve, Marshall&#150, Lerner condition, trade balance, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=CNYCJQ360UT6GC3W 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Appleyard, D.R., and
 A.J. Field. 1998. International Economics. Boston:
 Irwin/McGraw-Hill.</BIBTEXT>	   </REF>      <REF>	    <BIBL>2</BIBL> 
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Handle: RePEc:mes:emfitr:v:40:y:2004:i:5:p:57-73




Template-Type: ReDIF-Article 1.0
Author-Name: Hideaki  Hirata 
Author-X-Name-First: Hideaki  
Author-X-Name-Last: Hirata 
Author-Name: Sunghyun Henry Kim 
Author-X-Name-First: Sunghyun Henry 
Author-X-Name-Last: Kim 
Author-Name: M. Ayhan Kose 
Author-X-Name-First: M. Ayhan 
Author-X-Name-Last: Kose 
Title: Sources of Fluctuations: The Case of MENA 
Abstract:
 We analyze the sources of macroeconomic fluctuations in the emerging
 countries in the Middle East and North Africa (MENA) region using a
 dynamic stochastic general equilibrium model. The model economy captures
 some important structural characteristics of the MENA countries and can
 replicate the main properties of their business cycles. The results
 suggest that a substantial fraction of cyclical fluctuations in the MENA
 countries is explained by terms of trade shocks, which account for more
 than 60 percent of the variation in aggregate output. They also explain
 the bulk of cyclical fluctuations in aggregate consumption. Domestic
 productivity shocks explain close to 40 percent of business cycle
 variation in aggregate output. Government spending shocks and world
 interest shocks are also important in accounting for the volatility of
 business cycles in certain macroeconomic variables, but their overall
 effect on the dynamics of aggregate output appears to be relatively small.
Journal: Emerging Markets Finance and Trade 
Pages: 5-34 
Issue: 1 
Volume: 43 
Year: 2007 
Month: 2 
Keywords: business cycles, emerging markets, globalization, macroeconomic fluctuations, MENA, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=1M77465434685423 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:43:y:2007:i:1:p:5-34




Template-Type: ReDIF-Article 1.0
Author-Name: Talla  Al-Deehani 
Author-X-Name-First: Talla  
Author-X-Name-Last: Al-Deehani 
Author-Name: Imad A. Moosa 
Author-X-Name-First: Imad A. 
Author-X-Name-Last: Moosa 
Title: Volatility Spillover in Regional Emerging Stock Markets: A Structural Time-Series Approach 
Abstract:
 Volatility spillovers among the stock markets of Bahrain, Kuwait, and
 Saudi Arabia are investigated using the concept of stochastic volatility
 and structural time-series modeling. The results reveal volatility
 spillovers, in which the Kuwait market plays the major role. It is also
 found that volatility in one market cannot be explained fully in terms of
 volatility in the other two markets, but that, out of the three markets,
 the Kuwait market seems to be the most influential. Some explanations are
 put forward for why this is the case.
Journal: Emerging Markets Finance and Trade 
Pages: 78-89 
Issue: 4 
Volume: 42 
Year: 2006 
Month: 7 
Keywords: emerging markets, stochastic volatility, structural time-series modeling, volatility spillover, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=P238222N87X77016 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 Pescetto; and A. Violaris. 2003. "Modelling International Price
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 V. Subrahmanyam. 1990. "Interdependencies Among the Nordic and U.S. Stock
 Markets." >i>Scandinavian Journal of Economics>/i> 92, no. 4:
 587-597.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Shephard, N. 1996. "Statistical Aspects of ARCH and Stochastic
 Volatility." In >i>Time Series Models in Econometrics, Finance and Other
 Fields>/i>, ed. D.R. Cox, D.V. Hinkley, and O.E. Barndorff-Nielson, pp.
 1-67. London: Chapman & Hall.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>15</BIBL>	<BIBTEXT> Susmel, R., and R.F. Engle. 1994. "Hourly
 Volatility Spillovers Between International Equity Markets." >i>Journal of
 International Money and Finance>/i> 13, no. 1: 3-25.</BIBTEXT>      </REF>
      <REF>	   <BIBL>16</BIBL>	  <BIBTEXT> Taylor, M.P., and I.
 Tonks. 1989. "The Internationalisation of Stock Markets and the Abolition
 of UK Exchange Control." >i>Review of Economics and Statistics>/i> 71, no.
 2: 332-336.</BIBTEXT>	    </REF>	<REF>	     <BIBL>17</BIBL>	   
 <BIBTEXT> Theodossiou, P., and U. Lee. 1993. "Mean and Volatility
 Spillovers Across Major National Markets: Further Empirical Evidence."
 >i>Journal of Financial Research>/i> 16, no. 4: 337-350.</BIBTEXT>	
 </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:4:p:78-89




Template-Type: ReDIF-Article 1.0
Author-Name: JACK DIAMOND 
Author-X-Name-First: JACK 
Author-X-Name-Last: DIAMOND 
Title:         Budget System Reform in Transitional Economies : The Experience of Russia       
Abstract:
       This paper stresses the role of budget system reform in economies in
 transition as an essential basis for the implementation of effective
 fiscal policies. However, introducing such structural reforms in often
 unstable economic environments has not proved easy. Using Russia as a case
 study, the magnitude of the problems faced is documented and the strategy
 of reform eventually adopted is critically reviewed. In conclusion, some
 lessons are drawn for other transitional countries undertaking similar
 reforms and the future agenda for completing these reforms in Russia is
 indicated.    
Journal: Emerging Markets Finance and Trade 
Pages: 8-23 
Issue: 1 
Volume: 39 
Year: 2003 
Month: 1 
Keywords: budget system reform, Russia, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=PF9HTDVQT7CCVGC9 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Alesina, A., and L.H.
 Summers. 1993. "Central Bank Independence and Macroeconomic Performance:
 Some Comparative Evidence." Journal of Money, Credit and Banking 25, no. 2
 (May): 151-162.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>    
    <BIBTEXT>Cukierman, A.; Z. Hercowitz; and L. Leiderman. 1992. Political
 Economy, Growth and Business Cycles. Cambridge, MA: MIT Press.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>3</BIBL>	   <BIBTEXT>Diamond, J.
 2001. "The New Russian Budget System: An Assessment and Future Reform
 Agenda." International Monetary Fund, Washington, DC.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT>------. 2002a.
 "Budget System Reform in Transitional Economies: The Experience of
 Russia." IMF Working Paper WP/02/022, Washington, DC.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT>------. 2002b.
 "The Micro Basis of Budget System Reform: The Case of Transitional
 Economies." IMF Working Paper WP/02/105, Washington, DC.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Fischer, S. 1999.
 "What Went Wrong in Russia." IMF Press Report No. 99/13, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>7</BIBL>	  
 <BIBTEXT>Grilli, V.; D. Masciandro; and G. Tabellino. 1991. "Political and
 Monetary Institutions and Public Financial Policies in the Industrial
 Countries." Economic Policy: A European Forum 6, no. 2 (October):
 341-392.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT>Holtham, G., and J. Kay. 1995. "The Assessment: Institutions of
 Policy." Oxford Review of Economic Policy 10, no. 3: 1-16.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT>Lavrov, A.; J.M.
 Litwick; and D. Sutherland. 2002. "Reforming Fiscal Federalist Relations
 in Russia." In Issues in Fiscal Decentralization, ed. E. Ahmad and V.
 Tanzi, pp. 186- 204. London and New York: Routledge.</BIBTEXT>      </REF>
      <REF>	   <BIBL>10</BIBL>	  <BIBTEXT>Lopez-Claros, A., and
 S.V. Alexashenko. 1998. Fiscal Policy Issues During the Transition in
 Russia. IMF Occasional Paper No. 155, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>11</BIBL>   
     <BIBTEXT>Mazarov, A. 1999. "Issues in Public Expenditure Policy."
 Paper presented at the Post Election Strategy Conference, World Bank,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>12</BIBL>   
     <BIBTEXT>OECD. 2000. Economic Survey: The Russian Federation. Paris:
 Organization for Economic Cooperation and Development.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT>Poterba, J.M.
 1996. "Budget Institutions and Fiscal Policy in the U.S. States." NBER
 Working Paper no. 5449, Cambridge, MA.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>14</BIBL>	    <BIBTEXT>Potter, B.H., and J. Diamond. 2000.
 "Setting Up Treasuries in the Baltics, Russia, and Other Countries of the
 Former Soviet Union." IMF Occasional Paper No. 198, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>15</BIBL>	   
 <BIBTEXT>Ter-Minassian, T., and J. Craig. 1997. "Control of Subnational
 Borrowing." In Fiscal Federalism in Theory and Practice, ed. T.
 Ter-Minassian, pp. 156-173. Washington, DC: International Monetary
 Fund.</BIBTEXT>      </REF>	  <REF>        <BIBL>16</BIBL>	     
 <BIBTEXT>von Hagen, J., and I. Horden. 1996. "Budget Processes and
 Commitment to Fiscal Discipline." IMF Working Paper no. 96/78, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>17</BIBL>	   
 <BIBTEXT>Wallich, C. ed. 1994. Russia and the Challenge of Fiscal
 Federalism. Washington, DC: World Bank.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>18</BIBL>	     <BIBTEXT>Williamson, O.E. 1993. "The Economic
 Analysis of Institutions and Organizations." Economics Working Paper no.
 133, OECD, Paris, 1993.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:39:y:2003:i:1:p:8-23




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan  Yilmazkuday 
Author-X-Name-First: Hakan  
Author-X-Name-Last: Yilmazkuday 
Title: The Effects of Currency Crises in Emerging Markets on the Industrial Sector: An Alternative Regime-Shifting Approach 
Abstract:
 We analyze the effects of currency crises on the industrial sectors of
 Korea, Turkey, and the Czech Republic. We find that the interval for the
 effect of the currency crisis on the industrial sector to disappear is
 around four years for Korea after the 1997 currency crisis; around five
 and seven years for Turkey following the 1994 and 2001 currency crises,
 respectively; and around five years for the Czech Republic following the
 1997 currency crisis. For all three countries, the effects of the currency
 crises on the industrial sector disappear in a longer interval than does
 the effect of any other economic issue.
Journal: Emerging Markets Finance and Trade 
Pages: 31-48 
Issue: 1 
Volume: 45 
Year: 2009 
Month: 1 
Keywords: currency crisis, Czech Republic, industrial production cycles, Korea, regime shifts, Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=1N847RQ2332V0643 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akay, K., and H.
 Yilmazkuday. 2008. "An Analysis of Regime Shifts in the Turkish Economy."
 >i>Economic Modeling>/i> 25, no. 5: 885-898.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Albert, J.H., and S. Chib.
 1993. "Bayes Inference via Gibbs Sampling of Autoregressive Time Series
 Subject to Markov Mean and Variance Shifts." >i>Journal of Business and
 Economic Statistics>/i> 11, no. 1: 1-15.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>3</BIBL>	     <BIBTEXT> Benes, J., and D. Vavra. 2005.
 "Eigenvalue Filtering in VAR Models with Application to the Czech Business
 Cycle." European Central Bank Working Paper no. 549, Frankfurt.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Berg, A., and
 C. Pattillo. 1999. "Are Currency Crises Predictable? A Test." >i>IMF Staff
 Papers>/i> 46, no. 2: 107-138.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>5</BIBL>        <BIBTEXT> Burkart, O., and V. Coudert. 2002.
 "Leading Indicators of Currency Crises for Emerging Markets." >i>Emerging
 Markets Review>/i> 3, no. 2: 107-133.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>6</BIBL>	  <BIBTEXT> Carter, C.K., and P. Kohn. 1994. "On
 Gibbs Sampling for State Space Models." >i>Biometrica>/i> 81, no. 3:
 541-553.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Casella, G., and E.I. George. 1993. "Explaining the Gibbs
 Sampler." >i>American Statistician>/i> 46, no. 3: 167-174.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Chauvet, M., and
 F. Dong. 2004. "Leading Indicators of Country Risk and Currency Crises:
 The Asian Experience." Federal Reserve Bank of Atlanta >i>Economic
 Review>/i> 89, no. 1: 26-37.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>9</BIBL>        <BIBTEXT> Corsetti, G.; P. Pesenti; and N. Roubini.
 1998a. "What Caused the Asian Currency and Financial Crisis? Part I: A
 Macroeconomic Overview." National Bureau of Economic Research Working
 Paper no. 6833, Cambridge, MA.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Corsetti, G.; P. Pesenti; and N. Roubini.
 1998b. "What Caused the Asian Currency and Financial Crisis? Part II: The
 Policy Debate." National Bureau of Economic Research Working Paper no.
 6834, Cambridge, MA.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>11</BIBL>	<BIBTEXT> Corsetti, G.; P. Pesenti; and N. Roubini.
 1999. "The Asian Crisis: An Overview of the Empirical Evidence and Policy
 Debate." In >i>The Asian Financial Crisis, Causes, Contagion, and
 Consequences>/i>, ed. P. Agenor, M. Miller, D. Vines, and A. Weber, pp.
 127-161. Cambridge: Cambridge University Press.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT> Czesany, S. 2004. "Trends
 and Factors of the Business Cycle Developments in the Czech Republic."
 Czech Statistical Office, Prague.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>13</BIBL>	<BIBTEXT> Frankel, J.A., and A.K. Rose. 1996.
 "Currency Crashes in Emerging Markets: An Empirical Treatment." >i>Journal
 of International Economics>/i> 41, nos. 3-4: 351-366.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Gelfand, A.E.;
 S.E. Hills; A. Racine-Poon; and A.F.M. Smith. 1990. "Illustration of
 Bayesian Inference in Normal Data Models Using Gibbs Sampling." >i>Journal
 of the American Statistical Association>/i> 85, no. 412:
 972-985.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Gelfand, A.E., and A.F.M. Smith. 1990. "Sampling-Based
 Approaches to Calculating Marginal Densities." >i>Journal of the American
 Statistical Association>/i> 85, no. 410: 398-409.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>16</BIBL>        <BIBTEXT> Geman, S., and D. Geman.
 1984. "Stochastic Relaxation, Gibbs Distribution, and the Bayesian
 Restoration of Images." >i>IEEE Transactions on Pattern Analysis and
 Machine Intelligence>/i> 6, no. 6: 721-741.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Hamilton, J.D. 1988.
 "Rational Expectations Econometric Analysis of Changes in Regime: An
 Investigation of the Term Structure and Interest Rates." >i>Journal of
 Economic Dynamics and Control>/i> 12, nos. 2-3: 385-423.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Hlousek, M.
 2006. "Czech Business Cycle Stylized Facts." Research Center for the
 Competitiveness of the Czech Economy Working Paper no. 10, Brno, Czech
 Republic.</BIBTEXT>	  </REF>      <REF>	   <BIBL>19</BIBL>	 
 <BIBTEXT> Kaminsky, G.; S. Lizondo; and C. Reinhart. 1998. "Leading
 Indicators of Currency Crises." >i>IMF Staff Papers>/i> 45, no. 11:
 1-48.</BIBTEXT>      </REF>	  <REF>        <BIBL>20</BIBL>	     
 <BIBTEXT> Kaminsky, G., and C.M. Reinhart. 1999. "The Twin Crises: The
 Causes of Banking and Balance of Payment Problems." >i>American Economic
 Review>/i> 89, no. 3: 473-500.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>21</BIBL>	<BIBTEXT> Kim, C.J., and C.R. Nelson. 1998.
 "Testing for Mean Reversion in Heteroskedastic Data Based on
 Gibbs-Sampling-Augmented Randomization." >i>Journal of Empirical
 Finance>/i> 5, no. 2: 131-154.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>22</BIBL>	<BIBTEXT> Kim, C.J., and C.R. Nelson. 1999.
 >i>State-Space Models with Regime Switching.>/i> Cambridge, MA: MIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>23</BIBL>       
 <BIBTEXT> Lee, J.S., 2004, "Identifying Business Cycle Turning Points in
 Korea with a New Index of Aggregate Economic Activity." >i>Bank of Korea
 Economic Papers>/i> 7, no. 1: 35-58.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>24</BIBL>	  <BIBTEXT> Podpiera, J. 2004. "Consumers, Consumer
 Prices, and the Czech Business Cycle Identification." Czech National Bank
 Working Paper no. 4, Prague.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>25</BIBL>	<BIBTEXT> Radelet, S., and J. Sachs. 2000. "The
 Onset of the East Asian Financial Crisis." In >i>Currency Crisis>/i>, ed.
 P. Krugman, pp. 105-162. Chicago: University of Chicago Press.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>26</BIBL>	    <BIBTEXT> Saltoglu, B.;
 Z. Senyuz; and E. Yoldas. 2003. "Modeling Business Cycles with Markov
 Switching VAR Model: An Application on Turkish Business Cycles." Paper
 presented at the METU Conference in Economics VII, Ankara, Turkey,
 September 6-9.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:45:y:2009:i:1:p:31-48




Template-Type: ReDIF-Article 1.0
Author-Name: Paramita  Mukherjee 
Author-X-Name-First: Paramita  
Author-X-Name-Last: Mukherjee 
Author-Name: Suchismita  Bose 
Author-X-Name-First: Suchismita  
Author-X-Name-Last: Bose 
Title: Does the Stock Market in India Move with Asia?: A Multivariate Cointegration-Vector Autoregression Approach 
Abstract:
 This paper examines if the Indian stock market moves with other markets in
 Asia and the United States in an era of capital market reforms and the
 sustained interest of foreign investors in that market. By using
 techniques of cointegration, vector autoregression, vector
 error-correction models, and Granger causality, we find that, though there
 is definite information leadership from the U. S. market to all Asian
 markets, the U. S. indexes do not uniquely influence the integration of
 Asian markets, while Japan is found to play a unique role in the
 integration of Asian markets. The U. S. market is seen not only to
 influence, but also to be influenced by information from most of the major
 Asian markets. The Indian stock return in recent times is definitely led
 by major stock index returns in the United States, Japan, as well as other
 Asian markets, such as Hong Kong, South Korea, and Singapore. More
 important, returns on the Indian market are also seen to exert
 considerable influence on stock returns in major Asian markets.
Journal: Emerging Markets Finance and Trade 
Pages: 5-22 
Issue: 5 
Volume: 44 
Year: 2008 
Month: 9 
Keywords: cointegration, comovement, Indian equity market, integration of Asian markets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=72297335302172U7 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Arshanapalli, B.; J.
 Doukas; and L. Lang. 1995. "Pre- and Post-October 1987 Stock Market
 Linkages Between U. S. and Asian Markets." >i>Pacific-Basin Finance
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 Lumsdaine. 1998. "Dating the Integration of World Equity Markets." Working
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 and R. S. Rajan. 2000. "Restraining International Capital Movements: What
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 pers.ssrn.com/sol3/papers.cfm?abstract_id=231207>/a></BIBTEXT>      </REF>
      <REF>	   <BIBL>4</BIBL>	 <BIBTEXT> Bombay Stock Exchange
 (BSE). 2001. >i>Annual Capital Market Review 2000-01.>/i>
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 <BIBTEXT> Bose, S., and D. Coondoo. 2004. "The Impact of FII Regulations
 in India: A Time-Series Intervention Analysis of Equity Flows." >i>Money
 and Finance>/i> 2, nos. 18-19: 54-83.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>6</BIBL>	  <BIBTEXT> Brooks, R., and L. Catao. 2000. "The
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 <BIBL>7</BIBL>        <BIBTEXT> Choudhry, T. 2004. "International
 Transmission of Stock Returns and Volatility: Empirical Comparison Between
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 <BIBL>8</BIBL>        <BIBTEXT> Choudhry, T., and L. Lin. 2004. "Common
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 <BIBTEXT> Coondoo, D., and P. Mukherjee. 2004b. "Volatility of FII in
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 <BIBTEXT> Engle, R. F., and C. W. J. Granger. 1987. "Cointegration and
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 "International Transmission of Stock Market Movements." >i>Journal
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 and P. Ray. 2002. "Stock Market Integration and Dually Listed Stocks:
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 Asia-Pacific Stock Markets: Return, Volatility and Volume Information
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 <BIBTEXT> Manning, N. 2002. "Common Trends and Convergences? South East
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 Finance>/i> 2, nos. 9-10 (April-September): 21-51.</BIBTEXT>	   </REF>  
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 Patel. 2003. "Global Equity Markets: A Study of Cointegration." >i>Journal
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 Osterwald-Lenum, M. 1992. "A Note with Quantiles of the Asymptotic
 Distribution of the Maximum Likelihood Cointegration Rank Test
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 <BIBTEXT> Phylaktis, K., and F. Ravazzolo. 2002. "Stock Market Linkages in
 Emerging Markets: Implications for International Portfolio
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 Business School, City University, London.</BIBTEXT>	  </REF>      <REF>
	<BIBL>29</BIBL>        <BIBTEXT> Siklos, P. L., and P. Ng. 2001.
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Handle: RePEc:mes:emfitr:v:44:y:2008:i:5:p:5-22




Template-Type: ReDIF-Article 1.0
Author-Name: Kuen-Hung  Tsai 
Author-X-Name-First: Kuen-Hung  
Author-X-Name-Last: Tsai 
Author-Name: Hui-Chen  Chang 
Author-X-Name-First: Hui-Chen  
Author-X-Name-Last: Chang 
Title: The Contingent Value of Inward Technology Licensing on the Performance of Small High-Technology Firms 
Abstract:
 As competition intensifies and the pace of technological change
 accelerates, many firms often adopt inward technology licensing (ITL) to
 improve performance. However, previous studies investigating the effect of
 ITL on firm performance have not focused their samples on small
 high-technology firms. Furthermore, whereas past research has emphasized
 the moderating effect of internal research and development (R&D) on the
 use of external technology, relatively little research has examined such
 an effect. This study examines the effect of ITL on the performance of
 small high-technology firms, exploring the moderating role of internal R&D
 on the relationship between ITL and firm performance. In total, 138 small
 electronics manufacturing firms in Taiwan were sampled during the period
 of 1998 to 2005. Using a two-way fixed effects model, the analyses suggest
 that whether ITL has a positive effect on firm performance depends on the
 level of sustained internal R&D investment. This finding reveals why firms
 may vary in their ability to improve performance through adopting ITL.
Journal: Emerging Markets Finance and Trade 
Pages: 88-98 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: inward technology licensing, R&D, technology acquisition, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X86466248Q634125 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahuja, G., and R.
 Katila. 2001. "Technological Acquisitions and the Innovation Performance
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 154-166.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:88-98




Template-Type: ReDIF-Article 1.0
Author-Name: SULEYMAN TULUG OK 
Author-X-Name-First: SULEYMAN TULUG 
Author-X-Name-Last: OK 
Title:         What Drives Foreign Direct Investment into Emerging Markets? : Evidence from Turkey       
Abstract:
       The total volume of foreign direct investment (FDI) has increased
 immensely over the past decade and has become an important impetus behind
 the economic growth in developing countries. This paper examines the
 driving factors of FDI in Turkey. The data were collected through a survey
 of managers and expatriates of firms with foreign capital operating in
 Turkey and analyzed using nonparametric and parametrical statistical
 tests. The results show that foreign investors in Turkey regard economic
 and political instability as the most important barrier and an
 overwhelming majority of the respondents recommend the establishment of
 political stability in the country.	
Journal: Emerging Markets Finance and Trade 
Pages: 101-114 
Issue: 4 
Volume: 40 
Year: 2004 
Month: 7 
Keywords: foreign capital, FDI, foreign direct investment, foreign investment, FDI in emerging markets, FDI in Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=DPR51YRU4MFCHU3V 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Foreign Direct
 Investment Report 2001. 2002. Ankara: General Directorate of Foreign
 Investment.</BIBTEXT>	    </REF>	<REF>	     <BIBL>2</BIBL>	  
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 System for Factor Analysis and Structural Equation Modelling. Cary, NC:
 SAS Institute.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	   
   <BIBTEXT>Maxim, P.S. 1999. Quantitative Research Methods in the Social
 Sciences. New York and Oxford: Oxford University Press.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT>McPherson, G.
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 <BIBTEXT>Oktay, M. 1996. Turkish Business Life via the Eyes of Foreign
 Businessmen. Istanbul: Istanbul Chamber of Industry, Customs Union
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	<BIBTEXT>Onaner, M. 1998. Investment in Turkey. Ankara:
 Undersecretariat of the Treasury.</BIBTEXT>	  </REF>      <REF>	  
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 Capital" [in Turkish]. Dunya Newspaper-- Foreign Investors Supporting the
 Turkish Economy Special Supplement, May 23.</BIBTEXT>	    </REF>     
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 Investment Report 2002: Transnational Corporations and Export
 Competitiveness. New York: United Nations.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:4:p:101-114




Template-Type: ReDIF-Article 1.0
Author-Name: John S. Liu 
Author-X-Name-First: John S. 
Author-X-Name-Last: Liu 
Author-Name: Chyan  Yang 
Author-X-Name-First: Chyan  
Author-X-Name-Last: Yang 
Title: Herding of Corporate Directors in Taiwan 
Abstract:
 Corporate directors can be said to herd when they sit together on not only
 one, but several company boards. Such herding is commonly called "multiple
 interlock" in the literature. This study analyzes the factors involved in
 director herding using a binary logistics regression model. Statistical
 analysis indicates that directors who control a large amount of effective
 assets in the corporate world, own a high percentage of equity in a
 company, or hold an inside management position are more likely to be
 involved in multiple firm interlocks. In other words, controlling
 shareholders and their associates are the main individuals involved in
 such interlocks. Finally, company financial performance is negatively
 related to multiple interlocks.
Journal: Emerging Markets Finance and Trade 
Pages: 109-123 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: corporate governance, herding of directors, interlocking directorates, multiple interlocks, Taiwan, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=PW7U56464P74L2J1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Barnes, R. C., and E.
 R. Ritter. 2001. "Networks of Corporate Interlocking: 1962-1995."
 >i>Critical Sociology>/i> 27, no. 2: 192-220.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Battiston, S. 2004. "Inner
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 107-112.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Battiston, S.; E. Bonabeau; and G. Weisbuch. 2003. "Decision
 Making Dynamics in Corporate Boards." >i>Physica A>/i> 332 (May):
 567-582.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Caldarelli, G., and M. Catanzaro. 2004. "The Corporate Boards
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    <REF>	 <BIBL>5</BIBL>        <BIBTEXT> Canna, L. M.; N. Brennan;
 and E. O'Higgins. 1999. "National Networks of Corporate Power: An Irish
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 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Fich, E. M., and
 L. J. White. 2005. "Why Do CEOs Reciprocally Sit on Each Other's Boards?"
 >i>Journal of Corporate Finance>/i> 11, nos. 1-2: 175-195.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Heemskerk, E. M.
 2007. >i>Decline of the Corporate Community: Network Dynamics of the Dutch
 Business Elite.>/i> Amsterdam: Amsterdam University Press.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Kao, L.; J. R.
 Chiou; and A. Chen. 2004. "The Agency Problems, Firm Performance, and
 Monitoring Mechanisms: The Evidence from Collateralized Shares in Taiwan."
 >i>Corporate Governance>/i> 12, no. 3: 389-402.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> La Porta, R.; F.
 Lopez-de-Silanes; and A. Shleifer. 1999. "Corporate Ownership Around the
 World." >i>Journal of Finance>/i> 54, no. 2: 471-517.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Lee, T. S., and
 Y. H. Yeh. 2004. "Corporate Governance and Financial Distress: Evidence
 from Taiwan." >i>Corporate Governance>/i> 12, no. 3: 378-388.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>12</BIBL>	   <BIBTEXT> Liu, J. S.,
 and C. Yang. 2008. "Corporate Governance Reform in Taiwan: Could the
 Independent Director System Be an Effective Remedy?" >i>Asian Survey>/i>,
 forthcoming.</BIBTEXT>      </REF>	 <REF>	      <BIBL>13</BIBL>	   
  <BIBTEXT> Loderer, C., and U. Peyer. 2002. "Board Overlap, Seat
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 >i>Annual Review of Sociology>/i> 22: 271-298.</BIBTEXT>      </REF>	  
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 Mathematical Organization Theory>/i> 10, no. 1: 69-94.</BIBTEXT>     
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 C. Y. Yang. 2005. "Insider Ownership Structure and Firm Performance: A
 Productivity Perspective Study in Taiwan's Electronics Industry."
 >i>Corporate Governance>/i> 13, no. 2: 326-337.</BIBTEXT>	</REF>	   
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 Wasseur. 1985. "National Networks in 1976: A Structural Comparison." In
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 Countries>/i>, ed. F. N. Stokman, R. Ziegler, and J. Scott, ch. 2.
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 2001. "Family Control and Corporate Governance: Evidence from Taiwan."
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 87-108.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:109-123




Template-Type: ReDIF-Article 1.0
Author-Name: Jin-Shuei  Luo 
Author-X-Name-First: Jin-Shuei  
Author-X-Name-Last: Luo 
Author-Name: Chun-An  Li 
Author-X-Name-First: Chun-An  
Author-X-Name-Last: Li 
Title: Futures Market Sentiment and Institutional Investor Behavior in the Spot Market: The Emerging Market in Taiwan 
Abstract:
 This paper investigates whether and how futures market sentiment and stock
 market returns heterogeneously affect the trading activities of
 institutional investors in the spot market in Taiwan. Our empirical
 results suggest that foreign investors are net sellers whenever futures
 market sentiment is bullish and net buyers when investor sentiment is
 bearish. The two types of domestic institutional investors have poor
 sentiment timing abilities and the price-pressure effect may account for
 the behavioral differences among institutional investors. In addition, all
 three institutional investors are momentum traders. Nevertheless, the
 momentum trading of foreigners is consistent with an information-based
 model and that of two local institutional investors, as behavior-based
 models suggest. This indicates that the same trading momentum strategy can
 lead to different outcomes for different investors, and both information-
 and behavior-based momentum trading can exist contemporaneously in the
 Taiwanese stock market.
Journal: Emerging Markets Finance and Trade 
Pages: 70-86 
Issue: 2 
Volume: 44 
Year: 2008 
Month: 3 
Keywords: institutional investors, investor sentiment, quantile regression, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D81W626426271645 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Badrinath, S.G., and S.
 Wahal 2002. "Momentum Trading by Institutions." >i>Journal of Finance>/i>
 57, no. 6 (December): 2449-2478.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>2</BIBL>        <BIBTEXT> Baker, M., and J. Wurgler 2006. "Investor
 Sentiment and the Cross-Section of Stock Returns." >i>Journal of
 Finance>/i> 61, no. 4 (August): 1645-1680.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Barberis, N.; A. Shleifer;
 and R.W. Vishny 1998. "A Model of Investor Sentiment." >i>Journal of
 Financial Economics>/i> 49, no. 3 (September): 307-343.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Chen, A., and L.
 Kao 2006. "The Benefit of Excluding Institutional Investors from
 Fixed-Price IPOs: Evidence from Taiwan." >i>Emerging Markets Finance and
 Trade>/i> 42, no. 6 (November-December): 5-24.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Cheng, M.H., and H.H. Kang
 2007. "Price-Formation Process of an Emerging Futures Market-Call Auction
 Versus Continuous Auction." >i>Emerging Markets Finance and Trade>/i> 43,
 no. 1 (January-February): 74-97.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>6</BIBL>        <BIBTEXT> Chou, H.C.; W.N. Chen; and D.H. Chen
 2006a. "The Expiration Effects of Stock-Index Derivatives: Empirical
 Evidence from the Taiwan Futures Exchange." >i>Emerging Markets Finance
 and Trade>/i> 42, no. 5 (September-October): 81-102.</BIBTEXT>      </REF>
      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT> Chou, P.H.; M.C. Lin;
 and M.T. Yu 2006b. "Margins and Price Limits in Taiwan's Stock Index
 Futures Market." >i>Emerging Markets Finance and Trade>/i> 42, no. 1
 (January-February): 62-88.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>8</BIBL>        <BIBTEXT> De Long, J.B.; A. Shleifer; L.H. Summers;
 and R. Waldmann 1990. "Noise Trader Risk in Financial Markets." >i>Journal
 of Political Economy>/i> 98, no. 4 (August): 703-738.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Grinblatt, M.,
 and M. Keloharju 2000. "The Investment Behavior and Performance of Various
 Investor Types: A Study of Finland's Unique Data Set." >i>Journal of
 Financial Economics>/i> 55, no. 1 (January): 43-67.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Kamesaka, A.; J.R.
 Nofsinger; and H. Kawakita 2003. "Investment Patterns and Performance of
 Investor Groups in Japan." >i>Pacific-Basin Finance Journal>/i> 11, no. 1.
 (January): 1-22.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>  
      <BIBTEXT> Koenker, R., and G. Bassett 1978. "Regression Quantile."
 >i>Econometrica>/i> 46, no. 1 (January): 33-50.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT> Kuan, C.M. 2004. "An
 Introduction to Quantile Regression." Working Paper, Institute of
 Economics Academia Sinica, Taiwan.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>13</BIBL>	<BIBTEXT> Kumar, A., and C.M.C. Lee 2006. "Retail
 Investor Sentiment and Return Comovements." >i>Journal of Finance>/i> 61,
 no. 5 (October): 2451-2486.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>14</BIBL>	<BIBTEXT> Lee, W.Y.; C.X. Jiang; and D.C. Indro
 2002. "Stock Market Volatility, Excess Returns, and the Role of Investor
 Sentiment." >i>Journal of Banking and Finance>/i> 26, no. 12 (December):
 2277-2299.</BIBTEXT>	   </REF>      <REF>	    <BIBL>15</BIBL>	  
 <BIBTEXT> Nofsinger, J., and R. Sias 1999. "Herding and Feedback Trading
 by Institutional and Individual Investors." >i>Journal of Finance>/i> 54,
 no. 6 (December): 2263-2295.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>16</BIBL>	<BIBTEXT> Simon, D.P., and R.A. Wiggins 2001. "S&P
 Futures Returns and Contrary Sentiment Indicators." >i>Journal of Futures
 Markets>/i> 21, no. 5 (May): 447-462.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>17</BIBL>	   <BIBTEXT> Wang, Y.H.; A. Keswani; and S.J.
 Taylor 2006. "The Relationships Between Sentiment, Returns, and
 Volatility." >i>International Journal of Forecasting>/i> 22, no. 1
 (January-March): 109-123.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>18</BIBL>	<BIBTEXT> Yang, J.J.W. 2001. "The
 Interrelationships Among Returns, Institutional Investors' Buy-Sell
 Difference, and Strategy in Taiwan's OTC Market." >i>Journal of Financial
 Studies>/i> 9, no. 1 (April): 63-85.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>19</BIBL>	  <BIBTEXT> Yang, J.J.W. 2002. "The Information
 Spillover Between Stock Returns and Institutional Investors' Trading
 Behavior in Taiwan." >i>International Review of Financial Analysis>/i> 11,
 no. 4: 533-547.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:44:y:2008:i:2:p:70-86




Template-Type: ReDIF-Article 1.0
Author-Name: Liming  Guan 
Author-X-Name-First: Liming  
Author-X-Name-Last: Guan 
Author-Name: Fengyi  Lin 
Author-X-Name-First: Fengyi  
Author-X-Name-Last: Lin 
Author-Name: Wenchang  Fang 
Author-X-Name-First: Wenchang  
Author-X-Name-Last: Fang 
Title: Goal-Oriented Earnings Management: Evidence from Taiwanese Firms 
Abstract:
 Using Benford's (1938) law, this study documents pervasive evidence that
 managers of publicly listed Taiwanese firms tend to engage in earnings
 manipulative activities, rounding earnings numbers to achieve key
 reference points. Consistent with prior studies on rounding behavior in
 other countries and regions, we find that the management of Taiwanese
 firms often emphasizes the first digit of earnings numbers. We also find
 that key reference points are not limited to the first digit; the second,
 third, or even fourth digits are sometimes used as the reference points of
 rounding earnings behavior. Finally, our empirical results show that the
 incentives to round earnings numbers are negatively associated with the
 distance of prerounded earnings to the next reference point. In other
 words, the closer the prerounded earnings are to the reference point, the
 more likely managers are to round earnings. The findings of the study have
 important implications for banks in implementing lending policies and for
 external auditors in designing audit procedures.
Journal: Emerging Markets Finance and Trade 
Pages: 19-32 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: Benford's law, earnings management, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=4914752473682763 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Beaver, W. 1998.
 >i>Financial Reporting: An Accounting Revolution>/i>, 3d ed. Upper Saddle
 River, NJ: Prentice Hall.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Benford, F. 1938. "The Law of Anomalous
 Numbers." >i>Proceedings of the American Philosophical Society>/i> 78
 (March): 551-572.</BIBTEXT>	  </REF>      <REF>	   <BIBL>3</BIBL>  
      <BIBTEXT> Brenner, G. A., and R. Brenner. 1982. "Memory and Markets,
 or Why Are You Paying $2.99 for a Widget?" >i>Journal of Business>/i> 55,
 no. 1: 147-158.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>    
    <BIBTEXT> Burgstahler, D., and I. Dichev. 1997. "Earnings Management to
 Avoid Earnings Decreases and Losses." >i>Journal of Accounting and
 Economics>/i> 24, no. 1: 99-126.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>5</BIBL>        <BIBTEXT> Carslaw, C. 1988. "Anomalies in Income
 Numbers: Evidence of Goal Oriented Behavior." >i>Accounting Review>/i> 63,
 no. 2: 321-327.</BIBTEXT>	</REF>	    <REF>	 <BIBL>6</BIBL>    
    <BIBTEXT> Dechow, P.; R. Sloan; and A. Sweeney. 1996. "Causes and
 Consequences of Earnings Manipulation: An Analysis of Firms Subject to
 Enforcement Actions by the SEC." >i>Contemporary Accounting Research>/i>
 13, no. 1: 1-36.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>   
     <BIBTEXT> Francis, J.; P. Olsson; and D. Oswald. 2000. "Comparing the
 Accuracy and Explainability of Dividend, Free Cash Flow, and Abnormal
 Earnings Equity Value Estimates." >i>Journal of Accounting Research>/i>
 38, no. 1: 45-70.</BIBTEXT>	  </REF>      <REF>	   <BIBL>8</BIBL>  
      <BIBTEXT> Healy, P., and J. Wahlen. 1999. "A Review of the Earnings
 Management Literature and Its Implications for Standard Setting."
 >i>Accounting Horizons>/i> 13, no. 4: 365-383.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Jackson, S., and M. Pitman.
 2001. "Auditors and Earnings Management." >i>CPA Journal>/i> 71, no. 7:
 39-44.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>       
 <BIBTEXT> Kinnunen, J., and M. Koskela. 2003. "Who Is Miss World in
 Cosmetic Earnings Management? A Cross-National Comparison of Small Upward
 Rounding of Net Income Numbers Among Eighteen Countries." >i>Journal of
 International Accounting Research>/i> 2, no. 1: 39-68.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Leemis, L.; B.
 Schmeiser; and D. Evans. 2000. "Survival Distributions Satisfying
 Benford's Law." >i>American Statistician>/i> 54, no. 4: 236-244.</BIBTEXT>
      </REF>	  <REF>        <BIBL>12</BIBL>	      <BIBTEXT> Murphy, K.,
 and J. Zimmerman. 1993. "Financial Performance Surrounding CEO Turnover."
 >i>Journal of Accounting and Economics>/i> 18, nos. 1-3:
 273-315.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Nigrini, M. 1994. "Using Digital Frequencies to Detect Fraud."
 >i>Fraud MagazineâThe White Paper>/i> 8, no. 2: 3-6.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Nigrini, M.
 1996. "A Taxpayer Compliance Application of Benford's Law." >i>Journal of
 the American Taxation Association>/i> 18, no. 1: 72-91.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Nigrini, M., and
 L. Mittermaier. 1997. "The Use of Benford's Law as an Aid in Analytical
 Procedures." >i>Auditing: A Journal of Practice and Theory>/i> 16, no. 2:
 52-67.</BIBTEXT>      </REF>	   <REF>	<BIBL>16</BIBL>       
 <BIBTEXT> Penman, S. 1998. "A Synthesis of Equity Valuation Techniques and
 the Terminal Value Calculation for the Dividend Discount Model." >i>Review
 of Accounting Studies>/i> 2, no. 4: 303-323.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Penman, S., and T.
 Sougiannis. 1998. "A Comparison of Dividend, Cash Flow, and Earnings
 Approaches to Equity Valuation." >i>Contemporary Accounting Research>/i>
 15, no. 3: 343-383.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>18</BIBL>	<BIBTEXT> Schipper, K., and L. Vincent. 2003.
 "Earnings Quality." >i>Accounting Horizons>/i> 18 (Supplement):
 97-110.</BIBTEXT>	</REF>	    <REF>	 <BIBL>19</BIBL>       
 <BIBTEXT> Skousen, C.; L. Guan; and T. Wetzel. 2004. "Anomalies and
 Unusual Patterns in Reported Earnings: Japanese Managers Round Earnings."
 >i>Journal of International Financial Management and Accounting>/i> 15,
 no. 3: 212-234.</BIBTEXT>	</REF>	    <REF>	 <BIBL>20</BIBL>   
     <BIBTEXT> Sweeney, A. 1994. "Debt-Covenant Violations and Managers'
 Accounting Responses." >i>Journal of Accounting and Economics>/i> 17, no.
 3: 281-308.</BIBTEXT>	    </REF>	<REF>	     <BIBL>21</BIBL>	   
 <BIBTEXT> Thomas, J. 1989. "Unusual Patterns in Reported Earnings."
 >i>Accounting Review>/i> 64, no. 4: 773-787.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:19-32




Template-Type: ReDIF-Article 1.0
Author-Name: ASLIHAN ATABEK 
Author-X-Name-First: ASLIHAN 
Author-X-Name-Last: ATABEK 
Author-Name: EVREN ERDOGAN COSAR 
Author-X-Name-First: EVREN ERDOGAN 
Author-X-Name-Last: COSAR 
Author-Name: SAYGIN SAHIN&Ouml;Z 
Author-X-Name-First: SAYGIN 
Author-X-Name-Last: SAHIN&Ouml;Z 
Title:         A New Composite Leading Indicator for Turkish Economic Activity       
Abstract:
       The aim of this paper is to construct a composite leading indicator
 (CLI) for Turkish economic activity that would crucially provide earlier
 signals of turning points between economic expansions and slowdowns.
 First, for this analysis, the index of industrial production is selected
 as an indicator for economic activity. Second, a group of variables that
 perform well both in forecasting and in tracking cyclical developments of
 economic activity is selected from a broad set of economic indicators
 related to industrial production. While constructing the CLI, a growth
 cycle approach is used. The resulting cyclical patterns of the series are
 obtained by eliminating seasonal, irregular, and trend components via
 TRAMO/SEATS programs and Hodrick-Prescott filter. The selection of the
 component series is based on theoretical economic significance and their
 leading performance at cyclical turning points. From the selected series,
 different CLIs are constructed, and that with the best performance is
 chosen as the CLI for Turkish economic activity.    
Journal: Emerging Markets Finance and Trade 
Pages: 45-64 
Issue: 1 
Volume: 41 
Year: 2005 
Month: 1 
Keywords: detrending, industrial production index, leading indicators, seasonal adjustment, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=MBX0KV7YD5C3BNQL 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Agenor, P.R.; C.J.
 Mcdermott; and E. Prasad. 1999. "Macroeconomic Fluctuations in Developing
 Countries: Some Stylized Facts." International Monetary Fund Working Paper
 no. 99/35, Washington, DC.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>2</BIBL>        <BIBTEXT>Alper, E. 2000. "Business Cycles, Excess
 Volatility and Capital Flows: Evidence from Mexico and Turkey." Department
 of Economics Discussion Papers no. 11, Bogazici University.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>Altay, S.; A.
 Arékan; H. Bakér; and A. Tatar. 1991. "Leading Indicators: The Turkish
 Experience." Paper presented at the Twentieth CIRET Conference, Budapest,
 October.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>Brunet, O. 2000. "Calculation of Composite Leading Indicators: A
 Comparison of Two Different Methods." Paper presented at the Twenty-Fifth
 CIRET Conference, Paris, October.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>5</BIBL>        <BIBTEXT>Bruno, G., and M. Malgarini. 2002. "An
 Indicator of Economic Sentiment for the Italian Economy." Paper presented
 at the Twenty-Sixth CIRET Conference, Taiwan, October.</BIBTEXT>     
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 Boschan. 1971. "Cyclical Analysis of Time Series; Selected Procedures and
 Computer Programs." Technical Paper no. 20, NBER, Columbia University
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 <BIBTEXT>Burns, A.F., and W.C. Mitchell. 1946. Measuring Business Cycles.
 New York: National Bureau of Economic Research.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT>Canova, F. 1998. "Detrending
 and Business Cycle Facts." Journal of Monetary Economics 41, no. 3:
 475-512.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT>Del Rio, A., and A. Maravall. 2001. "Time Aggregation and the
 Hodrick-Prescott Filter." Bank of Spain Working Paper no. 0108.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT>Gersh, W.,
 and G. Kitagawa. 1983. "The Prediction of Time Series with Trends and
 Seasonalities." Journal of Business and Economic Statistics 1:
 253-264.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT>Gomez, V., and A. Maravall. 1998. "Seasonal Adjustment and Signal
 Extraction in Economic Time Series." Bank of Spain Working Paper no.
 9809.</BIBTEXT>      </REF>	  <REF>        <BIBL>12</BIBL>	     
 <BIBTEXT>Granger, C.W.J. 1969. "Investigating Causal Relationships by
 Econometric Models and Cross Spectral Methods." Econometrica 37:
 424-438.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT>Harvey, A.C., and P.H.J. Todd. 1983. "Forecasting Economic Time
 Series with Structural and Box-Jenkins Models: A Case Study." Journal of
 Business and Economic Statistics 1, no. 4: 299-306.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>14</BIBL>	 <BIBTEXT>Hodrick, R., and E.
 Prescott. 1980. "Post-War U.S. Business Cycles: An Empirical
 Investigation." Discussion Paper no. 451, Carnegie Mellon
 University.</BIBTEXT>	    </REF>	<REF>	     <BIBL>15</BIBL>	   
 <BIBTEXT>Holmes, A.R., and A.F.M. Shamsuddin. 1993. "Evaluation of
 Alternative Leading Indicators of British Columbia Industrial Employment."
 International Journal of Forecasting 9, no. 1: 77-83.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>Kaiser, R., and
 A. Maravall. 1999. "Estimation of the Business Cycle: A Modified Hodrick-
 Prescott Filter." Spanish Economic Review 1: 175-206.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT>------. 2000.
 "Measuring Business Cycles in Economic Time Series." Lecture Notes in
 Statistics. New York: Springer-Verlag.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>18</BIBL>	    <BIBTEXT>Kholodilin, K.A. 2000. "RATS Program
 for Finding Turning Points (Peaks and Troughs) of the (Detrended) Time
 Series." UAB 2000, University of Barcelona.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT>Kim, Y.W. 1996. "Are Prices
 Countercyclical? Evidence from East Asian Countries." Federal Reserve Bank
 of St. Louis Review 78, no. 5: 69-82.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>20</BIBL>	   <BIBTEXT>Kucukciftci, S., and U. Senesen. 1998.
 "A Composite Leading Indicator Index for Turkey." Discussion Paper in
 Management Engineering 98/3, Istanbul Technical University.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>Lahiri, K., and
 G.H. Moore. 1991. Leading Economic Indicators: New Approaches and
 Forecasting Records. Cambridge: Cambridge University Press.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT>Melnick, R., and
 Y. Golan. 1991. "Measurement of Business Fluctuations in Israel." Bank of
 Israel Economic Review 67: 1-20.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>23</BIBL>	<BIBTEXT>Murutoglu, A. 1999. "Leading Indicators
 Approach for Business Cycle Forecasting and a Study on Developing a
 Leading Economic Indicators Index for the Turkish Economy." ISE Review 3,
 no. 9 (January-March): 21-40.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>24</BIBL>	<BIBTEXT>Neftci, N., and S. &Ouml;zmucur. 1991.
 "TÜSIAD Leading Indicator Index for the Turkish Economy," TUSIAD (Turkish
 Industrialist's and Business's Association).</BIBTEXT>      </REF>	
 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT>Nilsson, R. 2000. "OECD
 System of Leading Indicators." Paper presented at the Workshop on Key
 Economic Indicators, Bangkok.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>26</BIBL>	<BIBTEXT>------. 2003. "OECD System of Leading
 Indicators Practices and Tools." Paper presented at the OECD/ESCAP
 Workshop on Composite Leading Indicators and Business Tendency Surveys,
 Bangkok.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT>OECD. 1987. OECD Leading Indicators and Business Cycles in Member
 Countries 1960- 1985. Paris: Organization for Economic Cooperation and
 Development.</BIBTEXT>      </REF>	 <REF>	      <BIBL>28</BIBL>	   
  <BIBTEXT>Ozatay, F. 1986. "Cyclical Movements in Turkish Economy." Ph.D.
 dissertation, Ankara University.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>29</BIBL>	<BIBTEXT>Quinn, T., and A. Mawdsley. 1996.
 "Forecasting Irish Inflation: A Composite Leading Indicator." Central Bank
 of Ireland Technical Paper 4/RT/96.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>30</BIBL>	 <BIBTEXT>Selcuk, F. 1994. "TUSIAD Leading
 Indicator Index." Economy Symposium, Hacettepe University; Ankara, May
 5-6.</BIBTEXT>      </REF>	 <REF>	      <BIBL>31</BIBL>	    
 <BIBTEXT>Stock, J.H., and M.W. Watson. 1988. "Variable Trends in Economic
 Time Series." Journal of Economic Perspectives 2: 147-174.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>32</BIBL>	 <BIBTEXT>------. 1989.
 "New Indices of Coincident and Leading Economic Indicators." Macro
 Economics Annual, 4.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>33</BIBL>	<BIBTEXT>Ucer, M.; C. Van Rijckeghem; and R.
 Yolalan. 1998. "Leading Indicator of Currency Crises." Yapi Kredi Economic
 Review 9, no. 2: 3-23.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:41:y:2005:i:1:p:45-64




Template-Type: ReDIF-Article 1.0
Author-Name: KANOKWAN CHANCHAROENCHAI 
Author-X-Name-First: KANOKWAN 
Author-X-Name-Last: CHANCHAROENCHAI 
Author-Name: SEL DIBOOG&not;LU 
Author-X-Name-First: SEL 
Author-X-Name-Last: DIBOOG&not;LU 
Author-Name: IKE MATHUR 
Author-X-Name-First: IKE 
Author-X-Name-Last: MATHUR 
Title:         Stock Returns and the Macroeconomic Environment Prior to the Asian Crisis in Selected Southeast Asian Countries       
Abstract:
       This paper investigates the relationship between domestic
 macroeconomic variables and stock excess returns to evaluate the effects
 of macroeconomic variables on excess returns and assess market efficiency
 in the Southeast Asian economies prior to the 1997 Asian crisis. Based on
 various tests, monthly stock excess returns are best specified by
 autoregressive conditional heteroskedasticity-type models. The null
 hypothesis of a martingale process is rejected, and some macroeconomic
 variables are identified that seem to have a certain predictive power for
 excess returns. Moreover, it appears that Asian monetary authorities seem
 to have had a credibility problem in keeping inflation within a target
 range. The lack of credibility and transparency may have contributed to
 the 1997 crisis.    
Journal: Emerging Markets Finance and Trade 
Pages: 38-56 
Issue: 4 
Volume: 41 
Year: 2005 
Month: 8 
Keywords: Asian crisis, emerging markets, macroeconomic factors, stock returns, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=86XM4N3TFG4KL0P0 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abdullah, D.A., and S.C.
 Hayworth. 1993. "Macroeconomics of Stock Price Fluctuations." Quarterly
 Journal of Business and Economics 32, no. 1 (Winter): 50-67.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>2</BIBL>	 <BIBTEXT>Adrangi, B.; A.
 Chatrath; and T.M. Shank. 1999. "Inflation, Output and Stock Prices:
 Evidence from Latin America." Managerial and Decision Economics 20, no. 2
 (March): 63-74.</BIBTEXT>	</REF>	    <REF>	 <BIBL>3</BIBL>    
    <BIBTEXT>Balduzzi, P. 1995. "Stock Returns, Inflation, and the 'Proxy
 Hypothesis': A New Look at Data." Economic Letters 48, no. 1 (April):
 47-53.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT>Bollerslev, T. 1986. "Generalized Autoregressive Conditional
 Heteroskedasticity." Journal of Econometrics 31, no. 3 (April):
 307-327.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT>Charumilind, C.; R. Kali; and Y. Wiwattanakantang. 2006.
 "Connected Lending: Thailand Before the Financial Crisis." Journal of
 Business 79, no. 1 (January): forthcoming.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT>Cooper, M.J.; W.E. Jackson
 III; and G.A. Patterson. 2003. "Evidence of Predictability in the
 Cross-Section of Bank Stock Returns." Journal of Banking and Finance 27,
 no. 5 (May): 817-850.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>7</BIBL>        <BIBTEXT>Engle, R.F. 1982. "Autoregressive
 Conditional Heteroskedasticity with Estimates of the Variance of U.K.
 Inflation." Econometrica 50, no. 4 (July): 987-1008.</BIBTEXT>      </REF>
      <REF>	   <BIBL>8</BIBL>	 <BIBTEXT>Engle, R.F.; D. Lilien;
 and R. Robins. 1987. "Estimating Time Varying Risk Premia in the Term
 Structure: The ARCH-M Model." Econometrica 55, no. 2 (March):
 391-407.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT>Fama, E.F. 1981. "Stock Returns, Real Activity, Inflation, and
 Money." American Economic Review 71, no. 4 (September): 545-565.</BIBTEXT>
      </REF>	  <REF>        <BIBL>10</BIBL>	      <BIBTEXT>Financial
 Statistics of Taiwan, Annual Report. Various issues. The Republic of
 China, Economic Research Department, Central Bank of China.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT>Jeon, B.N., and
 B. Seo. 2003. "The Impact of the Asian Financial Crisis on Foreign
 Exchange Market Efficiency: The Case of East Asian Countries."
 Pacific-Basin Finance Journal 11, no. 4 (September): 509-525.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>12</BIBL>	   <BIBTEXT>Mukherjee,
 T.K., and A. Naka. 1995. "Dynamic Relations Between Macroeconomic
 Variables and the Japanese Stock Market: An Application of a Vector Error
 Correction Model." Journal of Financial Research 18, no. 2 (Summer):
 223-237.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT>Nagayasu, J. 2001. "Currency Crisis and Contagion: Evidence from
 Exchange Rates and Sectoral Stock Indices of the Philippines and
 Thailand." Journal of Asian Economics 12, no. 4 (Winter):
 529-546.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT>Shen, P. 1998. "How Important Is the Inflation Risk Premium?"
 Economic Review, Federal Reserve Bank of Kansas City (fourth quarter):
 35-47.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>       
 <BIBTEXT>Wang, C.J.; C.H. Lee; and B.N. Huang. 2003. "An Analysis of
 Industry and Country Effects in Global Stock Returns: Evidence from Asian
 Countries and the U.S." Quarterly Review of Economics and Finance 43, no.
 3 (Autumn): 560-577.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>16</BIBL>	<BIBTEXT>World Stock Exchange Fact Book: Historical
 Securities Data for the International Investor. 2000. Austin, TX: Meridian
 Securities.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:4:p:38-56




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 4 
Volume: 41 
Year: 2005 
Month: 8 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=3PL0A38514779RGH 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:41:y:2005:i:4:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Keng-Hsin  Lo 
Author-X-Name-First: Keng-Hsin  
Author-X-Name-Last: Lo 
Author-Name: Kehluh  Wang 
Author-X-Name-First: Kehluh  
Author-X-Name-Last: Wang 
Author-Name: Chun-Tsen  Yeh 
Author-X-Name-First: Chun-Tsen  
Author-X-Name-Last: Yeh 
Title: Stock Repurchase and Agency Problems: New Evidence in Taiwan's Stock Market 
Abstract:
 This paper explores stock repurchase and agency issues in an emerging
 market with special regulations. Using match samples, agency-related
 variables are investigated for pre- and postannouncement periods. Our
 empirical evidence demonstrates that stock repurchase is related to agency
 cost mitigation. Agency problems are also significantly related to the
 preannouncement undervaluation of stock repurchase, after controlling for
 the effects of growth opportunity and asymmetric information. Finally, a
 company with a higher ratio of expected repurchase or higher agency costs
 normally enjoys better market response upon announcement.
Journal: Emerging Markets Finance and Trade 
Pages: 84-94 
Issue: 1 
Volume: 44 
Year: 2008 
Month: 1 
Keywords: agency cost, agency problem, free cash flow, managerial ownership, stock repurchase, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=MG74145210T3H5X5 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ang, James S.; R. A.
 Cole; and James W. Lin. 2000. "Agency Costs and Ownership Structure."
 >i>Journal of Finance>/i> 55, no. 1: 81-106.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Barth, M. E., and R. Kasznik.
 1999. "Share Repurchases and Intangible Assets." >i>Journal of Accounting
 and Economics>/i> 28, no. 2: 211-241.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>3</BIBL>	  <BIBTEXT> Bathala, C. T.; K. P. Moon; and R. P.
 Rao. 1994. "Managerial Ownership, Debt Policy, and the Impact of
 Institutional Holdings: An Agency Perspective." >i>Financial
 Management>/i> 23, no. 3: 38-50.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>4</BIBL>        <BIBTEXT> Bhattacharya, S. 1979. "Imperfect
 Information, Dividend Policy, and âThe Bird in the Handâ Fallacy."
 >i>Bell Journal of Economics>/i> 10, no. 1: 259-270.</BIBTEXT>      </REF>
      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT> Brockman, P., and D. Y.
 Chung. 2001. "Managerial Timing and Corporate Liquidity: Evidence from
 Actual Share Repurchases." >i>Journal of Financial Economics>/i> 61, no.
 3: 417-448.</BIBTEXT>	    </REF>	<REF>	     <BIBL>6</BIBL>	  
 <BIBTEXT> Comment, R., and G. A. Jarrell. 1991. "The Relative Signaling
 Power of Dutch-Auction and Fixed-Price Self-Tender Offers and Open-Market
 Share Repurchases." >i>Journal of Finance>/i> 46, no. 4:
 1243-1271.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> Davidson, W. N., III, and S. H. Garrison. 1989. "The Stock
 Market Reaction to Significant Tender Offer Repurchases of Stock: Size and
 Purpose Perspective." >i>Financial Review>/i> 24, no. 1: 93-107.</BIBTEXT>
      </REF>	  <REF>        <BIBL>8</BIBL>	     <BIBTEXT> Easterbrook,
 F. H. 1984. "Two Agency-Cost Explanations of Dividends." >i>American
 Economic Review>/i> 74, no. 4: 650-659.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>9</BIBL>	    <BIBTEXT> Grullon, G., and R. Michaely. 2002.
 "Dividends, Share Repurchases, and the Substitution Hypothesis."
 >i>Journal of Finance>/i> 57, no. 4: 1649-1684.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Grullon, G., and R.
 Michaely. 2004. "The Information Content of Share Repurchase Programs."
 >i>Journal of Finance>/i> 59, no. 2: 651-680.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Guffey, D. M., and D. K.
 Schneider. 2004. "Financial Characteristics of Firms Announcing Share
 Repurchases." >i>Journal of Business and Economic Studies>/i> 10, no. 2:
 13-27.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>       
 <BIBTEXT> Hovakimian, A. G.; T. C. Opler; and S. Titman. 2001. "The
 Debt-Equity Choice." >i>Journal of Financial and Quantitative Analysis>/i>
 36, no. 1: 1-24.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>  
      <BIBTEXT> Howe, K. M.; J. He; and G. W. Kao. 1992. "One-Time Cash
 Flow Announcements and Free Cash-Flow Theory: Share Repurchases and
 Special Dividends." >i>Journal of Finance>/i> 47, no. 5:
 1963-1975.</BIBTEXT>	   </REF>      <REF>	    <BIBL>14</BIBL>	  
 <BIBTEXT> Ikenberry, D.; J. Lakonishok; and T. Vermaelen. 1995. "Market
 Underreaction to Open Market Share Repurchases." >i>Journal of Financial
 Economics>/i> 39, no. 2-3: 181-208.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>15</BIBL>	 <BIBTEXT> Jensen, M. C. 1986. "Agency Costs of
 Free Cash Flow, Corporate Finance, and Takeovers." >i>American Economic
 Review>/i> 76, no. 2: 323-329.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>16</BIBL>	<BIBTEXT> Jensen, M. C., and W. H. Meckling. 1976.
 "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership
 Structure." >i>Journal of Financial Economics>/i> 3, no. 4:
 305-360.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Lie, Erik. 2000. "Excess Funds and Agency Problems: An Empirical
 Study of Incremental Cash Disbursements." >i>Review of Financial
 Studies>/i> 13, no. 1: 219-247.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>18</BIBL>	<BIBTEXT> Maxwell, W. F., and C. P. Stephens. 2003.
 "The Wealth Effects of Repurchases on Bondholders." >i>Journal of
 Finance>/i> 58, no. 2: 895-920.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>19</BIBL>	<BIBTEXT> Medury, P. V.; L. E. Bowyer; and V.
 Srinivasan. 1992. "Stock Repurchases: A Multivariate Analysis of
 Repurchasing Firms." >i>Quarterly Journal of Business and Economics>/i>
 31, no. 1: 21-44.</BIBTEXT>	  </REF>      <REF>	   <BIBL>20</BIBL> 
       <BIBTEXT> Miller, M. H., and F. Modigliani. 1961. "Dividend Policy,
 Growth, and the Valuation of Shares." >i>Journal of Business>/i> 34, no.
 4: 411-433.</BIBTEXT>	    </REF>	<REF>	     <BIBL>21</BIBL>	   
 <BIBTEXT> Miller, M. H., and K. Rock. 1985. "Dividend Policy Under
 Asymmetric Information." >i>Journal of Finance>/i> 40, no. 4:
 1031-1051.</BIBTEXT>	   </REF>      <REF>	    <BIBL>22</BIBL>	  
 <BIBTEXT> Oviatt, B. M. 1988. "Agency and Transaction Cost Perspectives on
 the Manager-Shareholder Relationship: Incentives for Congruent Interests."
 >i>Academy of Management Review>/i> 13, no. 2: 214-225.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT> Park, Y., and K.
 Jung. 2005. "Stock Repurchase in Korea: Market Reactions and Operating
 Performance." >i>Review of Pacific Basin Financial Markets and
 Policies>/i> 8, no. 1: 81-112.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>24</BIBL>	<BIBTEXT> Rozeff, M. S. 1982. "Growth, Beta, and
 Agency Costs as Determinants of Dividend Payout Ratios." >i>Journal of
 Financial Research>/i> 5, no. 3: 249-259.</BIBTEXT>	  </REF>      <REF>
	<BIBL>25</BIBL>        <BIBTEXT> Smith, Jr., C., and R. L. Watts.
 1992. "The Investment Opportunity Set and Corporate Financing, Dividend,
 and Compensation Policies." >i>Journal of Financial Economics>/i> 32, no.
 3: 263-292.</BIBTEXT>	    </REF>	<REF>	     <BIBL>26</BIBL>	   
 <BIBTEXT> Stephens, C. P., and M. S. Weisbach. 1998. "Actual Share
 Reacquisition in Open-Market Repurchase Programs." >i>Journal of
 Finance>/i> 53, no. 1: 313-333.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>27</BIBL>	<BIBTEXT> Wansley, J. W., and E. Fayez. 1986.
 "Stock Repurchases and Securityholder Returns: A Case Study of Teledyne."
 >i>Journal of Financial Research>/i> 9, no. 2: 179-191.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:1:p:84-94




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 2 
Volume: 43 
Year: 2007 
Month: 4 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T56584H22015J219 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: SOTIRIS K. STAIKOURAS 
Author-X-Name-First: SOTIRIS K. 
Author-X-Name-Last: STAIKOURAS 
Title:         Multinational Banks, Credit Risk, and Financial Crises : A Qualitative Response Analysis       
Abstract:
       The global financial unrest over the last decade has shifted the
 attention of banking regulators (Basel II, 2001) in estimating default
 probabilities for a variety of borrowers. Within a binary choice panel
 data framework, the current study analyzes various models and
 cross-examines their performance in identifying financial crises in
 emerging markets. Using financial ratios, macroeconomic variables, and
 international factors, the paper identifies a set of warning indicators
 and discriminates among the three estimators employed. The most important
 determinants of commercial/official arrears and reschedulings are the
 debt-to-GDP ratio, inflation, trade liberalization, and the variability of
 GNP per capita growth. In addition to that, changes in financial flows
 from foreign investors do affect default frequencies, while external
 developments are found to be insignificant. Cross-modeling comparison
 indicates the presence of different exogenous risk factors, depending on
 the approach employed. Further analysis indicates the presence of
 heterogeneity, but pertinent estimators fail to perform well. Unlike the
 fixed- and random-effects estimators, the pooled-logit model yields the
 minimum number of misclassifications. When past credit performance is
 taken into account, the significance of some signals is reduced, but the
 model's misclassification performance is markedly enhanced.	
Journal: Emerging Markets Finance and Trade 
Pages: 82-106 
Issue: 2 
Volume: 41 
Year: 2005 
Month: 3 
Keywords: credit risk, international lending, panel data estimation, sovereign default, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XHAGP6HBEBA7ADMA 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abassi, B., and R.J.
 Taffler. 1984. "Country Risk: A Model for Predicting Debt-Servicing
 Problems in Developing Countries." Journal of the Royal Statistical
 Society, Series A, 147: 541-568.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>2</BIBL>        <BIBTEXT>Avramovic, D. 1958. Debt Servicing Capacity
 and Post-War Growth in International Indebtedness. Baltimore, MD: Johns
 Hopkins Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	   
   <BIBTEXT>------. 1964. Economic Growth and External Debt. Baltimore, MD:
 Johns Hopkins Press.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>4</BIBL>        <BIBTEXT>Aylward, L., and R. Thorne. 1998.
 "Countries' Repayment Performance Vis-à-Vis the IMF." IMF Staff Papers 45,
 no. 4: 595-619.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>    
    <BIBTEXT>Basel Committee on Banking Supervision. 2001. The New Basel
 Capital Accord, BIS, January.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>6</BIBL>        <BIBTEXT>Catao, L., and B. Sutton. 2002. "Sovereign
 Defaults: The Role of Volatility." Working Paper 149, International
 Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>7</BIBL>        <BIBTEXT>Chang, R., and A. Velasco. 2000. "Banks,
 Debt Maturity and Financial Crises." Journal of International Economics
 51, no. 1: 169-194.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>
	<BIBTEXT>Detragiache, E., and A. Spilimbergo. 2001. "Crises and
 Liquidity: Evidence and Interpretation." Working Paper no. 01/2,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT>Eaton, J., and M. Gersovitz.
 1981. "Debt with Potential Repudiation: Theoretical and Empirical
 Analysis." Review of Economic Studies 48: 289-309.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>10</BIBL>	<BIBTEXT>Eaton, J., M. Gersovitz,
 and J.E. Stiglitz. 1986. "The Pure Theory of Country Risk." European
 Economic Review 30, no. 3: 481-513.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>11</BIBL>	 <BIBTEXT>Edwards, S. 1995. "Public-Sector Deficits
 and Macroeconomic Stability in Developing Economies." In Budget Deficits
 and Debt: Issues and Options, pp. 307-374. Kansas City: Federal Reserve
 Bank of Kansas City.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>12</BIBL>	<BIBTEXT>Elmore, C., and G. McKenzie. 1992.
 "Predicting LDC Debt Arrears." University of Southampton, UK.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>13</BIBL>	   <BIBTEXT>Feder, G., and
 R.E. Just. 1977. "A Study of Debt-Servicing Capacity Applying Logit
 Analysis." Journal of Development Economics 4, no. 1: 25-38.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>14</BIBL>	  <BIBTEXT>Feder, G.; R.E.
 Just; and K. Ross. 1981. "Projecting Debt-Servicing Capacity of Developing
 Countries." Journal of Financial and Quantitative Analysis 16, no. 4
 (March): 651- 669.</BIBTEXT>	   </REF>      <REF>	    <BIBL>15</BIBL>
	<BIBTEXT>Frank, C.R., and W.R. Cline. 1971. "Measurement of
 Debt-Servicing Capacity of Developing Countries: An Application of
 Discriminant Analysis." Journal of International Economics 41:
 327-344.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT>Frankel, J.A., and A.K. Rose. 1996. "Currency Crashes in Emerging
 Markets: An Empirical Treatment." Journal of International Economics 41,
 nos. 3-4: 351-366.</BIBTEXT>	   </REF>      <REF>	    <BIBL>17</BIBL>
	<BIBTEXT>Fuertes, A., and E. Kalotychou. 2004. "Modeling Sovereign
 Debt Using Panel Models: A Comparative Study." Paper presented at the
 Nineteenth Conference of the Econometric Society European Meeting (ESEM),
 Madrid, August 20-24.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>18</BIBL>	<BIBTEXT>Goldstein, M., and P. Turner. 1996.
 "Banking Crises in Emerging Economies: Origins and Policy Options." Bank
 for International Settlements Papers, no. 46: 1-67.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>19</BIBL>	 <BIBTEXT>Grammatikos, T., and A.
 Saunders. 1990. "Additions to Bank Loan Loss Reserves." Journal of
 Monetary Economics 25, no. 2: 289-304.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>20</BIBL>	    <BIBTEXT>Greene, W.H. 1997. Econometric
 Analysis. Upper Saddle River, NJ: Prentice Hall.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>21</BIBL>	      <BIBTEXT>Hajivassiliou, V. 1987. "The
 External Debt Repayment Problems of LDSs: An Econometric Model Based on
 Panel Data." Journal of Econometrics 36: 205-230.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>22</BIBL>        <BIBTEXT>------. 1989. "Do the
 Secondary Markets Believe in Life After Debt?" In Dealing with Debt
 Crisis, ed. I. Diwan and I. Hussain. Washington DC: World Bank.</BIBTEXT> 
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 "A Simulation Estimation Analysis of the External Debt Crises of
 Developing Countries." Journal of Applied Econometrics 9, no. 2:
 109-113.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT>Haque, N.U.; M.S. Kumar; N. Mark; and D.J. Mathieson. 1996. "The
 Economic Content of Indicators of Developing Country Creditworthiness."
 IMF Staff Papers 43, no. 4: 688-724.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>25</BIBL>	  <BIBTEXT>Harvey, A.C. 1989. Forecasting
 Structural Time Series Models and the Kalman Filter. Cambridge: Cambridge
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>26</BIBL> 
       <BIBTEXT>Heffernan, S.A. 1984. Sovereign Risk Analysis. London:
 Unwin Hyman.</BIBTEXT>      </REF>	 <REF>	      <BIBL>27</BIBL>	   
  <BIBTEXT>------. 1985. "Country Risk Analysis: The Demand and Supply of
 Sovereign Loans." Journal of International Money and Finance 4:
 389-413.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT>------. 2004. Modern Banking. London: Wiley.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>29</BIBL>	 <BIBTEXT>Hodrick, R.J.,
 and E.C. Prescott. 1997. "Post-War U.S. Business Cycles: An Empirical
 Investigation." Journal of Money, Credit and Banking 29, no. 1 (February):
 1-16.</BIBTEXT>      </REF>	  <REF>        <BIBL>30</BIBL>	     
 <BIBTEXT>Honore, B.E., and E. Kyriazidou. 2000. "Panel Data Discrete
 Choice Models with Lagged Dependent Variables." Econometrica 68, no. 4:
 839-874.</BIBTEXT>	 </REF>      <REF>	  <BIBL>31</BIBL>	
 <BIBTEXT>Johnston, J., and J. Dinardo. 1997. Econometric Methods. New
 York: McGraw-Hill.</BIBTEXT>	   </REF>      <REF>	    <BIBL>32</BIBL>
	<BIBTEXT>Kalotychou, E. 2004. "Emerging Markets and Sovereign Risk
 Analysis." Ph.D. dissertation, Cass Business School, City University,
 London.</BIBTEXT>	</REF>	    <REF>	 <BIBL>33</BIBL>       
 <BIBTEXT>Kalotychou, E., and S.K. Staikouras. 2004a. "The Banking Exposure
 to International Lending: Empirical Evidence and Economic Signals." Paper
 presented at the Multinational Finance Society Conference, Istanbul, July
 3-8.</BIBTEXT>      </REF>	 <REF>	      <BIBL>34</BIBL>	    
 <BIBTEXT>------. 2004b. "Credit Exposure and Sovereign Risk Analysis: The
 Case of South America." Frontiers in Finance and Economics 1:
 46-56.</BIBTEXT>      </REF>	   <REF>	<BIBL>35</BIBL>       
 <BIBTEXT>Kaminsky, G., and C.M. Reinhart. 1999. "The Twin Crises: The
 Cause of Banking and Balance of Payments Problems." American Economic
 Review 3: 473-500.</BIBTEXT>	   </REF>      <REF>	    <BIBL>36</BIBL>
	<BIBTEXT>Kumar, M.; U. Moorthy; and W. Perraudin. 2003. "Predicting
 Emerging Market Currency Crashes." Journal of Empirical Finance 10, no. 1:
 427-454.</BIBTEXT>	 </REF>      <REF>	  <BIBL>37</BIBL>	
 <BIBTEXT>Lee, S.H. 1991. "Ability and Willingness to Service Debt as
 Explanation for Commercial and Official Rescheduling Cases." Journal of
 Banking and Finance 15, no. 1: 5-27.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>38</BIBL>	  <BIBTEXT>Maddala, G.S. 1983. Limited-Dependent
 and Qualitative Variables in Econometrics. Cambridge: Cambridge University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>39</BIBL>       
 <BIBTEXT>Martinson, M.G., and J.V. Houpt. 1989. "Transfer Risk in U.S.
 Banks." Federal Reserve Bulletin 75 (April): 255-258.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>40</BIBL>	 <BIBTEXT>McFadden, D.; R.
 Eckaus; G. Feder; V. Hajivassiliou; and S. O'Connell. 1985. "Is There Life
 After Debt? An Econometric Analysis of the Creditworthiness of Developing
 Countries." In International Debt and the Developing Countries, ed. G.
 Smith and J. Cuddington, pp. 179-209. Washington DC: World Bank.</BIBTEXT>
      </REF>	  <REF>        <BIBL>41</BIBL>	      <BIBTEXT>Moghadam,
 M.R., and H. Samavati. 1991. "Predicting Debt Rescheduling by
 Less-Developed Countries: A Probit Model Approach." Quarterly Review of
 Economics and Business 31: 3-14.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>42</BIBL>	<BIBTEXT>Saini, K., and P. Bates. 1984. "A Survey
 of the Quantitative Approaches to Country Risk Analysis." Journal of
 Banking and Finance 8 (June): 341-356.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>43</BIBL>	    <BIBTEXT>Saunders, A., and M.M. Cornett. 2003.
 Financial Institutions Management: A Risk Management Approach. New York:
 McGraw-Hill.</BIBTEXT>      </REF>	 <REF>	      <BIBL>44</BIBL>	   
  <BIBTEXT>Somerville, R.A., and R.J. Taffler. 1995. "Banker Judgment
 Versus Formal Forecasting Models: The Case of Country Risk Assessment."
 Journal of Banking and Finance 19: 281-297.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>45</BIBL>	     <BIBTEXT>Staikouras, S.K. 2005. "A
 Chronicle of the Banking and Currency Crises." Applied Economics Letters
 11, no. 14: 873-878.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>46</BIBL>	<BIBTEXT>Stiglitz, J., and A. Weiss. 1981. "Credit
 Rationing in Markets with Imperfect Information." American Economic Review
 71, no. 3: 393-410.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:2:p:82-106




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 4 
Volume: 42 
Year: 2006 
Month: 7 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=NV675G8Q7114W884 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:42:y:2006:i:4:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: PANAGIOTIS T. KONSTANTINOU 
Author-X-Name-First: PANAGIOTIS T. 
Author-X-Name-Last: KONSTANTINOU 
Title:         The Expectations Hypothesis of the Term Structure : A Look at the Polish Interbank Market       
Abstract:
       This paper tests the expectations hypothesis (EH) for the short end
 of the Polish interbank term structure. Employing daily data, the
 hypothesis that the actual yield spread is an unbiased predictor of the
 perfect foresight spread is tested. Additionally, Johansen's FIML
 procedure is used in order to explore the dynamic comovement of yields
 across the term structure and also test the parameter restrictions imposed
 by the EH. The empirical findings provide some evidence in favor of the
 EH. In particular, there is evidence that all yields share a common
 stochastic trend. Furthermore, at the margin, the EH restrictions imposed
 on the cointegration space are not rejected. On balance, one might
 conclude that the EH is not grossly at variance with the data.    
Journal: Emerging Markets Finance and Trade 
Pages: 70-91 
Issue: 3 
Volume: 41 
Year: 2005 
Month: 5 
Keywords: expectations hypothesis, interbank market, term structure of interest rates, yield spread, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B6HA7JLNDGGH7RJJ 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Bernanke, B., and A.
 Blinder. 1992. "The Federal Funds Rate and the Channels of Monetary
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 Unit Root." Journal of Econometrics 54, no. 2: 159-178.</BIBTEXT>     
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 and A. Speight. 1991. "The Term Structure of Interest Rates Under Rational
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 Some Further Results." Journal of Applied Econometrics 3, no. 4:
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 Policy." American Economic Review 56, no. 2: 178-197.</BIBTEXT>     
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 West. 1987. "A Simple, Positive Semi-Definite, Heteroscedasticity and
 Autocorrelation Consistent Covariance Matrix." Econometrica 55, no. 3
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     <BIBTEXT>Orlowski, L.T. 1999. "The Development of Financial Markets in
 Poland." Center for Social and Economic Research and the Central European
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 "Testing for a Unit Root in Time Series Regressions." Biometrica 75:
 335-346.</BIBTEXT>	 </REF>      <REF>	  <BIBL>34</BIBL>	
 <BIBTEXT>Reinsel, G., and S. Ahn. 1992. "Vector Autoregressive Models with
 Unit Roots and Reduced Rank Structure: Estimation, Likelihood Ratio Tests,
 and Forecasting." Journal of Time Series Analysis 13: 353-375.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>35</BIBL>	    <BIBTEXT>Richardson,
 M.; P. Richardson; and T. Smith. 1992. "The Monotonicity of the Term
 Premium: Another Look." Journal of Financial Economics 31 (February):
 97-106.</BIBTEXT>	</REF>	    <REF>	 <BIBL>36</BIBL>       
 <BIBTEXT>Shea, G. 1992. "Benchmarking the Expectations Hypothesis of the
 Interest Rate Term Structure: An Analysis of Cointegration Vectors."
 Journal of Business and Economic Statistics 10, no. 3: 347-366.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>37</BIBL>	     <BIBTEXT>Shiller, R.
 1990. "The Term Structure of Interest Rates." In Handbook of Monetary
 Economics, vol. 1, ed. B. Friedman and F. Hahn, pp. 629-722. Amsterdam:
 North-Holland.</BIBTEXT>      </REF>	   <REF>	<BIBL>38</BIBL>    
    <BIBTEXT>Stock, J., and M. Watson. 1988. "Testing for Common Trends."
 Journal of the American Statistical Association 83: 1097-1107.</BIBTEXT>  
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 and M.R. Wickens. 1997. "Explaining the Failures of the Term Spread Models
 of the Rational Expectations Hypothesis of the Term Structure." Journal of
 Money, Credit and Banking 29, no. 3: 364-380.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>40</BIBL>	     <BIBTEXT>------. 1998. "A
 Re-examination of the Rational Expectations Hypothesis of the Term
 Structure: Reconciling the Evidence from Long-Run and Short-Run Tests."
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 <BIBTEXT>White, H. 1980. "A Heteroscedasticity-Consistent Covariance
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Handle: RePEc:mes:emfitr:v:41:y:2005:i:3:p:70-91




Template-Type: ReDIF-Article 1.0
Author-Name: MARK J. HOLMES 
Author-X-Name-First: MARK J. 
Author-X-Name-Last: HOLMES 
Title:         Do Latin American Countries Have an Incentive to Default on Their External Debts?: A Perspective Based on Long-Run Current Account Behavior       
Abstract:
       It is argued that the sustainability of external debts depends on
 the stationarity of the current account balance. This study tests for the
 stationarity of current account deficits for a sample of sixteen Latin
 American countries, employing a new test, advocated by Breuer et al.
 (2002), that allows one to test for unit roots in heterogeneous panel data
 sets. This version of the augmented Dickey-Fuller (ADF) test involves
 estimating ADF regressions within a seemingly unrelated regression
 (SURADF) framework. The benefits of creating a panel to overcome low test
 power are well known, but this particular test also offers key advantages
 over existing alternative panel data unit root tests. Unlike previous
 tests, this one identifies which members from within the panel are
 responsible for rejecting the null hypothesis of joint nonstationarity. In
 addition, the SURADF test does not presume disturbances that are
 independently and identically distributed. Using annual data covering the
 period 1979-2001, this study finds strong evidence in favor of current
 account mean-reversion for at least twelve Latin American countries.	 
Journal: Emerging Markets Finance and Trade 
Pages: 33-49 
Issue: 1 
Volume: 42 
Year: 2006 
Month: 2 
Keywords: current account, LDC, panel data, unit root, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=BC4LED33RB66GBU5 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abuaf, N., and P.
 Jorion. 1990. "Purchasing Power Parity in the Long Run." Journal of
 Finance 45, no. 1 (March): 157-174.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>2</BIBL>	<BIBTEXT>Beck, N., and J. Katz. 1995. "What to Do
 (and Not to Do) with Time-Series Cross-Section Data." American Political
 Science Review 89, no. 3 (September): 634-647.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>Breuer, J.B.; R. McNown; and
 M. Wallace. 2002. "Series-Specific Unit Root Tests with Panel Data."
 Oxford Bulletin of Economics and Statistics 64, no. 5 (December):
 527-546.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>Chortareas, G.; G. Kapetanois; and M. Uctum. 2004. "An
 Investigation of Current Account Solvency in Latin America Using
 Non-Linear Stationarity Tests." Studies in Nonlinear Dynamics and
 Econometrics 8, no. 4: 1-21.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>5</BIBL>        <BIBTEXT>Coakley, J., and F. Kulasi. 1997. "The
 Cointegration of Long Span Saving and In-vestment." Economics Letters 54,
 no. 1 (January): 1-6.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>6</BIBL>        <BIBTEXT>Coakley, J.; F. Hasan; and R. Smith. 1999.
 "Saving, Investment and Capital Mobility in LDCs." Review of International
 Economics 7, no. 4 (November): 632-640.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>7</BIBL>	    <BIBTEXT>Elliot, G.; T. Rothenberg; and J.
 Stock. 1996. "Efficient Tests for an Autoregressive Unit Root."
 Econometrica 64, no. 2 (July): 813-836.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>8</BIBL>	    <BIBTEXT>Gundlach, E., and S. Sinn. 1992. "Unit
 Root Tests of the Current Account: Implications for International Capital
 Mobility." Applied Economics 24, no. 3 (June): 617-620.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT>Hakkio, C., and M.
 Rush. 1991. "Is the Budget Deficit Too Large?" Economic Inquiry 29, no. 3
 (July): 429-445.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>  
      <BIBTEXT>Husted, S. 1992. "The Emerging US Current Account Deficit in
 the 1980s: A Cointegration Analysis." Review of Economics and Statistics
 74, no. 1 (February): 159-166.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>11</BIBL>	<BIBTEXT>Im, K.; M.H. Pesaran; and Y. Shin. 2003.
 "Testing for Unit Roots in Heterogeneous Panels." Journal of Econometrics
 115, no. 1 (January): 53-74.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>12</BIBL>	<BIBTEXT>Keating, M., and B. Keating. 2003.
 "Measuring the Sustainability of Latin American External Debt." Applied
 Economics Letters 10, no. 5 (May): 359-362.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT>Levin, A., and C. Lin. 1993.
 "Unit Root Tests in Panel Data: Asymptotic and Finite Sample Properties."
 Economics Working Paper Series No. 93-56, University of California at San
 Diego.</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>       
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 Solvency in Industrialized Countries: Evidence and Implications." Southern
 Economic Journal 62, no. 1 (January): 739-749.</BIBTEXT>      </REF>	  
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 69, no. 4 (November): 1519-1554.</BIBTEXT>	 </REF>      <REF>	 
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 Purchasing Power Parity." Journal of International Economics 44, no. 1
 (February): 1-19.</BIBTEXT>	  </REF>      <REF>	   <BIBL>18</BIBL> 
       <BIBTEXT>Otto, G. 1992. "Testing a Present-Value Model of the
 Current Account: Evidence from U.S. and Canadian Time Series." Journal of
 International Money and Finance 11, no. 5 (October): 414-430.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>19</BIBL>	   <BIBTEXT>Papell, D.
 1997. "Searching for Stationarity: Purchasing Power Parity Under the
 Current Float." Journal of International Economics 43, no. 6 (November):
 313-332.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT>Pattichis, C., and M. Kanaan. 2001. "Is Lebanon's Trade Deficit
 Sustainable? A Cointegration Analysis." Economia Internazionale 54, no. 1
 (March): 49-56.</BIBTEXT>	</REF>	    <REF>	 <BIBL>21</BIBL>   
     <BIBTEXT>Sarno, L., and M. Taylor. 1998. "Real Exchange Rates Under
 the Recent Float: Unequivocal Evidence of Mean Reversion." Economics
 Letters 60, no. 8 (August): 131-137.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>22</BIBL>	  <BIBTEXT>Todaro, M., and S. Smith. 2003. Economic
 Development, 8th ed. Boston: Addison-Wesley.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>23</BIBL>	     <BIBTEXT>Trehan, B., and C. Walsh.
 1988. "Common Trends, the Government Budget Constraint and Revenue
 Smoothing." Journal of Economic Dynamics and Control 12, no. 5 (October):
 425-444.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT>------. 1991. "Testing Intertemporal Budget Constraints: Theory
 and Applications to US Federal Budget Deficits and CurrentAccount
 Deficits." Journal of Money, Credit and Banking 23, no. 2 (May):
 423-441.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT>Wickens, M., and M. Uctum. 1993. "The Sustainability of Current
 Account Deficits: A Test of the U.S. Intertemporal Budget Constraint."
 Journal of Economic Dynamics and Control 17, no. 3 (May):
 423-441.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT>World Bank. Various dates. World Economic Indicators. Washington,
 DC: World Bank (available at www.worldbank.org).</BIBTEXT>	 </REF>    
  <REF>        <BIBL>27</BIBL>	      <BIBTEXT>Wu, J.-L. 2000. "Mean
 Reversion of the Current Account: Evidence from the Panel Data Unit Root
 Test." Economics Letters 66, no. 2 (February): 215-222.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>28</BIBL>	 <BIBTEXT>Wu, J.-L.; S.-L.
 Chen; and H.-Y. Lee. 2001. "Are Current Account Deficits Sustain-able?
 Evidence from Panel Cointegration." Economics Letters 72, no. 8 (August):
 219-224.</BIBTEXT>	 </REF>      <REF>	  <BIBL>29</BIBL>	
 <BIBTEXT>Wu, S., and J.-L. Wu. 1998. "Purchasing Power Parity Under the
 Current Float: New Evidence from Panel Data Unit Root Tests." State
 University of New York at Buffalo.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:1:p:33-49




Template-Type: ReDIF-Article 1.0
Author-Name: Stefan  Lutz 
Author-X-Name-First: Stefan  
Author-X-Name-Last: Lutz 
Author-Name: Oleksandr  Talavera 
Author-X-Name-First: Oleksandr  
Author-X-Name-Last: Talavera 
Author-Name: Sang-Min  Park 
Author-X-Name-First: Sang-Min  
Author-X-Name-Last: Park 
Title: Effects of Foreign Presence in a Transition Economy: Regional and Industrywide Investments and Firm-Level Exports in Ukrainian Manufacturing 
Abstract:
 We investigate the effects of regional and industrywide foreign presence
 and foreign direct investment (FDI) on the export volumes of Ukrainian
 manufacturing firms using unpublished panel data from 1996-2000. Foreign
 presence through FDI may have negative competition effects on domestic
 firms' performance; at the same time, domestic firms' productivity may be
 increased by technology transfer or training and demonstration effects.
 From a Cournot competition model that includes negative competition and
 positive technology spillover effects, we hypothesize that foreign
 presence and FDI might positively affect domestic firms' output and
 exports. Our estimation results support these hypotheses, suggesting in
 particular that large firms and durable goods producers benefit most from
 foreign presence and investments.
Journal: Emerging Markets Finance and Trade 
Pages: 82-98 
Issue: 5 
Volume: 44 
Year: 2008 
Month: 9 
Keywords: firm performance, foreign direct investment, spillovers, transition, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=1122H9264L13528W 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aitken, B. J., and A.
 E. Harrison. 1999. "Do Foreign Firms Benefit from Direct Foreign
 Investment? Evidence from Venezuela." >i>American Economic Review>/i> 89,
 no. 3: 605-618.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>    
    <BIBTEXT> Aitken, B. J.; G. H. Hanson; and A. E. Harrison. 1997.
 "Spillovers, Foreign Investment, and Export Behavior." >i>Journal of
 International Economics>/i> 43, no. 1/2: 103-132.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>3</BIBL>	      <BIBTEXT> Aleksynska, M.; J.
 Gaisford; and W. Kerr. 2003. "Foreign Direct Investment and Growth in
 Transition Economies." Paper presented at Colloquium on Ukraine's Nation
 Building: Opportunities for Collaboration, University of Saskatchewan,
 Saskatoon, October 17-18.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>4</BIBL>        <BIBTEXT> Altomonte, C., and E. Pennings. 2005.
 "Testing for Marginal Spillovers from Foreign Direct Investment."
 Discussion Paper TI 2005-101/4, Tinbergen Institute, Amsterdam and
 Rotterdam.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL>	 
 <BIBTEXT> Arellano, M., and S. Bond. 1991. "Some Tests of Specification
 for Panel Data: Monte Carlo Evidence and an Application to Employment
 Equations." >i>Review of Economic Studies>/i> 58, no. 2:
 277-297.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Arellano, M., and O. Bover. 1995. "Another Look at the
 Instrumental Variable Estimation of Error-Components Models." >i>Journal
 of Econometrics>/i> 68, no. 1: 29-51.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>7</BIBL>	  <BIBTEXT> Baum, C. F.; M. Caglayan; N. Ozkan; and
 O. Talavera. 2003. "The Impact of Macroeconomic Uncertainty on Cash
 Holdings for Non-Financial Firms." >i>Review of Financial Economics>/i>
 15, no. 4: 289-304.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>
	<BIBTEXT> Bernard, A. B., and J. B. Jensen. 1999. "Exceptional
 Exporter Performance: Cause, Effect, or Both?" >i>Journal of International
 Economics>/i> 47, no. 1: 1-25.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>9</BIBL>        <BIBTEXT> Bitzer, J., and H. GÃ¶rg. 2005. "The
 Impact of FDI on Industry Performance." GEP Research Paper 2005/09,
 University of Nottingham.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>10</BIBL>	<BIBTEXT> BlomstrÃ¶m, M. 1989. >i>Foreign
 Investment and Spillovers.>/i> Oxford: Routledge.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>11</BIBL>        <BIBTEXT> BlomstrÃ¶m, M., and A.
 Kokko. 1998. "Multinational Corporations and Spillovers." >i>Journal of
 Economic Surveys>/i> 12, no. 2: 1-31.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>12</BIBL>	   <BIBTEXT> BlomstrÃ¶m, M., and A. Kokko. 2003.
 "The Economics of Foreign Direct Investment Incentives." Working Paper
 9489, National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Bond, S. 2002.
 "Dynamic Panel Data Models: A Guide to Micro Data Methods and Practice."
 Centre for Microdata Methods and Practice (CEMMAP) Working Paper CWP09/02,
 Institute for Fiscal Studies, London.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>14</BIBL>	   <BIBTEXT> Brown, C. J. 2002. "Foreign Direct
 Investment and Small Firm Employment in Northern Mexico: 1987-1996."
 >i>Entrepreneurship and Regional Development>/i> 14, no. 2:
 175-191.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Caves, R. E. 1974. "Multinational Firms, Competition, and
 Productivity in Host-Country Markets." >i>Economica>/i> 41, no. 162:
 176-193.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT> Cho, K. 1990. "Foreign Banking Presence and Banking Market
 Concentration: The Case of Indonesia." >i>Journal of Development
 Studies>/i> 27, no. 1: 98-110.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>17</BIBL>	<BIBTEXT> Clerides, S. K.; S. Lach; and J. R.
 Tybout. 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence
 from Colombia, Mexico, and Morocco." >i>Quarterly Journal of Economics>/i>
 113, no. 3: 903-947.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>18</BIBL>	<BIBTEXT> De Backer, K., and L. Sleuwagen. 2003.
 "Does Foreign Direct Investment Crowd Out Domestic Entrepreneurship?"
 >i>Review of Industrial Organization>/i> 22, no. 1: 67-84.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Dyker, D. A.
 1999. >i>Foreign Direct Investment and Technology Transfer in the Former
 Soviet Union.>/i> Cheltenham, UK: Edward Elgar.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Hardy, J. 1998. "Cathedrals
 in the Desert? Transnationals, Corporate Strategy, and Locality in
 Wroclaw." >i>Regional Studies>/i> 32, no. 7: 639-652.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Javorcik, B.
 2004. "Does Foreign Direct Investment Increase the Productivity of
 Domestic Firms? In Search of Spillovers Through Backward Linkages."
 >i>American Economic Review>/i> 94, no. 3: 605-627.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>22</BIBL>	 <BIBTEXT> Javorcik, B.; S. Kamal;
 and M. Spatareanu. 2004. "Does It Matter Where You Come From? Vertical
 Spillovers from Foreign Direct Investment and the Nationality of
 Investors." Policy Research Working Paper 3449, World Bank, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>23</BIBL>	   
 <BIBTEXT> Kinoshita, Y. 1998. "Technology Transfer Through Foreign Direct
 Investments." Mimeograph, Center for Economic Research and Graduate
 Education of Charles University-Economics Institute of the Academy of
 Sciences of the Czech Republic (CERGE-EI), Prague.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>24</BIBL>	<BIBTEXT> Kinoshita, Y. 2000.
 "Research and Technology Spillovers via FDI: Innovation and Absorptive
 Capacity." Center for Economic Research and Graduate Education of Charles
 University-Economics Institute of the Academy of Sciences of the Czech
 Republic (CERGE-EI), Prague.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>25</BIBL>	<BIBTEXT> Kirchner, P. 2000. "The German-Owned
 Manufacturing Sector in the North-East of England." >i>European Planning
 Studies>/i> 8, no. 5: 601-617.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>26</BIBL>	<BIBTEXT> Konings, J. 2001. "The Effects of Foreign
 Direct Investment on Domestic Firms: Evidence from Firm-Level Panel Data
 in Emerging Economies." >i>Economics of Transition>/i> 9, no. 3:
 619-633.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT> Lee, C. H. 1994. "Korea's Direct Foreign Investment in Southeast
 Asia." >i>ASEAN Economic Bulletin>/i> 10, no. 3: 280-296.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>28</BIBL>	 <BIBTEXT> Lutz, S., and O.
 Talavera. 2004. "Do Ukrainian Firms Benefit from FDI?" >i>Economics of
 Planning>/i> 37, no. 2: 77-98.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>29</BIBL>	<BIBTEXT> Markusen, J. R. 2002. >i>Multinational
 Firms and the Theory of International Trade.>/i> Cambridge, MA: MIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>30</BIBL>       
 <BIBTEXT> Moran, T. H. 1998. >i>Foreign Direct Investment and
 Development.>/i> Washington, DC: Institute for International
 Economics.</BIBTEXT>	   </REF>      <REF>	    <BIBL>31</BIBL>	  
 <BIBTEXT> Noorbakhsh, F.; A. Paloni; and A. Youssef. 2001. "Human Capital
 and FDI Inflows to Developing Countries: New Empirical Evidence." >i>World
 Development>/i> 29, no. 9: 1593-1610.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>32</BIBL>	   <BIBTEXT> Ponomareva, N. 2000. "Are There
 Positive or Negative Spillovers from Foreign-Owned to Domestic Firms?"
 Working Paper BSP/00/042, New Economic School, Moscow.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>33</BIBL>	 <BIBTEXT> Sharpe, S. 1994.
 "Financial Market Imperfections, Firm Leverage, and the Cyclicality of
 Employment." >i>American Economic Review>/i> 84, no. 4:
 1060-1074.</BIBTEXT>	   </REF>      <REF>	    <BIBL>34</BIBL>	  
 <BIBTEXT> Sinani, E., and K. Meyer. 2002. "Identifying Spillovers of
 Technology Transfer from FDI: The Case of Estonia." Center for East
 European Studies at Copenhagen Business School (CEES) Working Paper 47,
 Denmark.</BIBTEXT>	 </REF>      <REF>	  <BIBL>35</BIBL>	
 <BIBTEXT> SjÃ¶holm, F. 1999. "Technology Gap, Competition, and Spillovers
 from Foreign Direct Investment: Evidence from Establishment Data."
 >i>Journal of Development Studies>/i> 36, no. 1: 53-73.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>36</BIBL>	 <BIBTEXT> UNCTAD. 2000.
 >i>World Investment Report: Cross-Border Mergers and Acquisitions and
 Development.>/i> New York and Geneva: United Nations.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>37</BIBL>	 <BIBTEXT> Yudaeva, K.; K.
 Kozlov; N. Melentieva; and N. Ponomareva. 2001. "Does Foreign Ownership
 Matter? Russian Experience." >i>Economics of Transition>/i> 11, no. 3:
 384-409.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:5:p:82-98




Template-Type: ReDIF-Article 1.0
Author-Name: H. Evren Damar 
Author-X-Name-First: H. Evren 
Author-X-Name-Last: Damar 
Title: The Effect of the Iraq War on Foreign Bank Lending to the MENA Region 
Abstract:
 This paper examines whether a large geopolitical event, such as the war in
 Iraq, can affect foreign bank lending from developed countries to emerging
 markets. Using country-level data, the paper analyzes the effects of
 economic shocks and the Iraq war on the availability of foreign bank
 credit to five countries in the Middle East and North Africa. The war has
 had a nonuniform effect on foreign banks: Although the war has led to
 higher U.S. lending, it has also discouraged British and Italian banks
 from lending to the region. Implications concerning the stability and
 reliability of foreign bank credit in the face of increased geopolitical
 risks are identified and discussed.
Journal: Emerging Markets Finance and Trade 
Pages: 20-36 
Issue: 5 
Volume: 43 
Year: 2007 
Month: 10 
Keywords: credit, foreign banks, Middle East and North Africa, war, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=05W6817002104723 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bank for International
 Settlements. 2003. "Guide to the International Financial Statistics." BIS
 Paper no. 14, Basel, Switzerland.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Calvo, G.A. 1998. "Capital Flows and
 Capital-Market Crises: The Simple Economics of Sudden Stops." >i>Journal
 of Applied Economics>/i> 1, no. 1: 35-54.</BIBTEXT>	  </REF>      <REF>
	<BIBL>3</BIBL>	      <BIBTEXT> Calvo, G.A., and E.G. Mendoza.
 2000. "Rational Contagion and the Globalization of Securities Markets."
 >i>Journal of International Economics>/i> 51, no. 1: 79-113.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>4</BIBL>	 <BIBTEXT> Dages, B.G.; L.
 Goldberg; and D. Kinney. 2000. "Foreign and Domestic Bank Participation in
 Emerging Markets: Lessons from Mexico and Argentina." >i>Federal Reserve
 Bank of New York Economic Policy Review>/i> 6, no. 3: 17-36.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT>
 >i>Economist.>/i> "Trouble on the Doorstep." (March 31, 2003) (available
 at >a target="_blank"
 href='http://www.economist.com/agenda/displayStory.cfm?story_id=1678842'>w
 ww.economist.com/agenda/displayStory.cfm?story_id=1678842>/a></BIBTEXT>   
   </REF>      <REF>	    <BIBL>6</BIBL>	  <BIBTEXT> Economist
 Intelligence Unit (EIU). Various issues. >i>ViewsWire: Country Risk
 Ratings.>/i></BIBTEXT>      </REF>	 <REF>	      <BIBL>7</BIBL>	   
 <BIBTEXT> Goldberg, L.S. 2001. "When Is U.S. Bank Lending to Emerging
 Markets Volatile?" National Bureau of Economic Research Working Paper no.
 8209, Cambridge, MA.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>8</BIBL>        <BIBTEXT> Grais, W., and Z. Kantur. 2003. "The
 Changing Financial Landscape: Opportunities and Challenges for the Middle
 East and North Africa." World Bank Policy Research Working Paper no. 3050,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT> Haliburton, J. 2003. "Turkey Boosted by Reforms and US Aid."
 >i>Financial Times>/i> (March 27, 2003), 45.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Jeanneau, S., and M. Micu.
 2002. "Determinants of International Bank Lending to Emerging Market
 Countries." BIS Working Paper no. 112, Basel, Switzerland.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Leigh, A.; J.
 Wolfers; and E. Zitzewitz. 2003. "What Do Financial Markets Think of War
 in Iraq?" National Bureau of Economic Research Working Paper no. 9587,
 Cambridge, MA.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>    
    <BIBTEXT> Meon, P.G., and K. Sekkat. 2004. "Does the Quality of
 Institutions Limit the MENA's Integration in the World Economy?" >i>World
 Economy>/i> 27, no. 9: 1475-1497.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>13</BIBL>	<BIBTEXT> Peria, M.S.M.; A. Powell; and I.V.
 Hollar. 2002. "Banking on Foreigners: The Behavior of International Bank
 Lending to Latin America, 1985-2000." World Bank Policy Research Working
 Paper no. 2893, Washington, DC.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>14</BIBL>	<BIBTEXT> Rigobon, R., and B. Sack. 2005. "The
 Effects of War Risk on U.S. Financial Markets." >i>Journal of Banking and
 Finance>/i> 29, no. 7: 1769-1789.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:5:p:20-36




Template-Type: ReDIF-Article 1.0
Author-Name: &Ouml;ZLEM ONARAN 
Author-X-Name-First: &Ouml;ZLEM 
Author-X-Name-Last: ONARAN 
Author-Name: ENGELBERT STOCKHAMMER 
Author-X-Name-First: ENGELBERT 
Author-X-Name-Last: STOCKHAMMER 
Title:         Two Different Export-Oriented Growth Strategies: Accumulation and Distribution in Turkey and South Korea       
Abstract:
       The aim of the paper is to compare the relationship between
 distribution, growth, accumulation, and employment in Turkey and in South
 Korea. These countries represent two different cases of export-oriented
 growth. The results of the structural adjustment experiences of both
 countries are in striking contrast to orthodox theory; however, they also
 present counterexamples to each other in terms of policies of economic
 integration. The paper tests whether accumulation and employment are
 profit-led in these two countries by means of a post-Keynesian open
 economy model, which includes a demand-driven labor market and a reserve
 army effect in the Marxian sense. The model is estimated in a structural
 vector autoregression (SVAR) form in order to capture the complex
 simultaneous interaction between distribution, accumulation, growth, and
 employment within a systems approach. This model, and the method of
 estimation, are the two innovations of this paper in addressing the
 crucial policy issues related with structural adjustment problems in
 developing countries. The results show that decreasing the wage share does
 not stimulate accumulation, growth, and employment. Interestingly, the
 relation between wage share, investment, growth, and employment is similar
 in both Turkey and South Korea; however, the former experienced low and
 the latter high growth rates due to different export-oriented growth
 strategies. The explanation for this difference is found in the field of
 institutions, power structures, and state policies.	
Journal: Emerging Markets Finance and Trade 
Pages: 65-89 
Issue: 1 
Volume: 41 
Year: 2005 
Month: 1 
Keywords: accumulation, distribution, export-oriented growth, post-Keynesian economics, structural adjustment, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H6WBW2DX4X1KM5EC 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Adelman, I., and E.
 Yeldan. 2000. "The Minimal Conditions for a Financial Crisis: A
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 <BIBTEXT>------. 1989. Asia's Next Giant: South Korea and Late
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 Wage: The Economic Basis for Contesting Political Ideologies." Cambridge
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       <BIBL>10</BIBL>	      <BIBTEXT>Bhaskar, V., and A. Glyn. 1995.
 "Investment and profitability: the evidence from the advanced countries."
 In Macroeconomic Policy After the Conservative Era: Studies In investment,
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 <BIBL>11</BIBL>	<BIBTEXT>Blecker, R. 1989. "International
 Competition, Income Distribution and Economic Growth." Cambridge Journal
 of Economics 13, no. 3: 395-412.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>12</BIBL>	<BIBTEXT>------. 1999. "Kaleckian Macromodels for
 Open Economies." In Foundations of International Economics: Post Keynesian
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Handle: RePEc:mes:emfitr:v:41:y:2005:i:1:p:65-89




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas  Lagoarde-Segot 
Author-X-Name-First: Thomas  
Author-X-Name-Last: Lagoarde-Segot 
Author-Name: Brian M. Lucey 
Author-X-Name-First: Brian M. 
Author-X-Name-Last: Lucey 
Title: Capital Market Integration in the Middle East and North Africa 
Abstract:
 This paper studies capital market integration in Middle Eastern and North
 African (MENA) countries and its implications for international portfolio
 investment allocation. Starting with four cointegration methodologies, we
 significantly reject the hypothesis of a stable, long-run bivariate
 relationship between each of these markets and the European Monetary Union
 (EMU), the United States, and a regional benchmark. This indicates the
 existence of significant diversification opportunities for three
 categories of investors (EMU, world, and regional investors). A recursive
 analysis based on Barari (2004) suggests that recently, the MENA markets
 have started to move toward international financial integration.
 Investigating the effect of selected financial, economic, and political
 events on such a process, we extend the methodology and find that the
 markets react heterogeneously to the different categories of shocks. They
 should therefore not be treated as a bloc for global allocation purposes.
 Finally, after adjusting the integration levels by relative market
 capitalization, Israel and Turkey are the most promising markets in the
 region, followed by Egypt, Jordan, and Morocco. Tunisia and Lebanon seem
 to be lagging behind.
Journal: Emerging Markets Finance and Trade 
Pages: 34-57 
Issue: 3 
Volume: 43 
Year: 2007 
Month: 6 
Keywords: MENA markets, portfolio diversification, stock market integration, time-varying methods, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B3441855U285305U 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akdogan, H. 1995.
 >i>The Integration of International Capital Markets: Theory and Empirical
 Evidence>/i>. Cheltenham, UK: Edward Elgar.</BIBTEXT>	    </REF>     
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 "International Security Selection Under Segmentation: Theory and
 Application." >i>Journal of Portfolio Management>/i> (Fall):
 82-92.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> Alper, C.E., and K. Yilmaz. 2004. "Volatility and Contagion:
 Evidence from the Istanbul Stock Exchange." >i>Economic Systems>/i> 28,
 no. 4: 353-367.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>    
    <BIBTEXT> American Investment Market Research. 2005. >i>Investing in
 Emerging Markets>/i>. Charlottesville, VA: CFA Publications.</BIBTEXT>    
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 1993. "Tests for Parameter Instability and Structural Change with Unknown
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 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Barari, M. 2004.
 "Equity Market Integration in Latin America: A Time Varying Integration
 Scores Analysis." >i>International Review of Financial Analysis>/i> 13,
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    <BIBTEXT> Bekaert, G., and C.R. Harvey. 1995. "Time-Varying World
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       <BIBTEXT> Corsetti, G.; M. Pericoli; and M. Sbracia. 2005. "Some
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 /~lokma/p_gbata.pdf>/a></BIBTEXT>	</REF>	    <REF>	
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 with Regime Shifts." >i>Journal of Econometrics>/i> 70, no. 1:
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 <BIBTEXT> Gunduz, L., and M. Omran. 2001. "Stochastic Trends and Stock
 Prices in Emerging Markets: The Case of the Middle East and North Africa
 Region." >i>ISE Review>/i> 5, no. 17: 1-23.</BIBTEXT>	    </REF>     
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 S. Leybourne. 2002. "Stochastic Cointegration: Estimation and Inference."
 >i>Journal of Econometrics>/i> 111, no. 2: 363-384.</BIBTEXT>	    </REF> 
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 Maroney, H. Monir El-Sadi, and A. Telfah. 2003. "Country Risk and Stock
 Market Volatility, Predictability, and Diversification in the Middle East
 and Africa." >i>Economic Systems>/i> 27, no. 1: 63-82.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT> Jensen, M.C.
 1969. "Risk: The Pricing of Capital and the Evaluation of Investment
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 MENA Stock Markets." Paper presented at the 9th Economic Research Forum
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Handle: RePEc:mes:emfitr:v:43:y:2007:i:3:p:34-57




Template-Type: ReDIF-Article 1.0
Author-Name: TomÃ¡Å¡  Holub 
Author-X-Name-First: TomÃ¡Å¡  
Author-X-Name-Last: Holub 
Author-Name: JaromÃ­r  HurnÃ­k 
Author-X-Name-First: JaromÃ­r  
Author-X-Name-Last: HurnÃ­k 
Title: Ten Years of Czech Inflation Targeting: Missed Targets and Anchored Expectations 
Abstract:
 This paper focuses on the Czech Republic's first ten years of experience
 with its inflation-targeting regime. Under this regime, the Czech Republic
 has successfully achieved disinflation. However, there were two periods of
 substantial inflation target undershooting and economic slack, related to
 two episodes of sharp exchange rate appreciation. Dealing with exchange
 rate volatility has been a key challenge for inflation targeting in the
 Czech Republic. Despite the missed targets, though, the regime has been
 successful at anchoring the inflation expectations of analysts and firms
 close to the announced targets, suggesting that it has worked well as a
 nominal anchor for the economy.
Journal: Emerging Markets Finance and Trade 
Pages: 67-86 
Issue: 6 
Volume: 44 
Year: 2008 
Month: 11 
Keywords: expectations surveys, inflation expectations, inflation targeting, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=0545L5875722632J 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Babetskaia, O. 2006.
 "Transmission of Exchange Rate Shocks into Domestic Inflation: The Case of
 the Czech Republic." Czech National Bank, Prague.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>2</BIBL>	      <BIBTEXT> Batini, N.; K. Kuttner; and
 D. Laxton. 2005. Does Inflation Targeting Work in Emerging Markets? In
 >i>World Economic Outlook>/i>, chapter 4. Washington, DC: International
 Monetary Fund.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	   
   <BIBTEXT> BeneÅ¡, J., and P. N'Diaye. 2003. "A Multivariate Filter for
 Measuring Output and the NAIRU." In >i>The Czech National Bank's
 Forecasting and Policy Analysis System>/i>, ed. W. Coats, D. Laxton, and
 D. Rose, pp. 99-118. Prague: Czech National Bank.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>4</BIBL>	      <BIBTEXT> BulÃ­Å, A. 1993.
 "ÄeskoslovenskÃ¡ monetÃ¡rnÃ­ politika po roce 1989" [Czechoslovak
 Monetary Policy After the Year 1989]. >i>Finance a ÃºvÄr>/i>>b>43>/b>,
 no. 5: 181-200.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>    
    <BIBTEXT> Christiano, L.; M. Eichenbaum; and C. Evans. 1999. "Monetary
 Policy Shocks: What Have We Learned and to What End?" In >i>Handbook of
 Macroeconomics>/i>, ed. J. Taylor and M. Woodford, pp. 65-148. Amsterdam:
 North-Holland.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	   
   <BIBTEXT> ÄihÃ¡k, M., and T. Holub. 1998. "Inflation Targeting in the
 Czech Republic: Old Wine in New Bottles." >i>Eastern European
 Economics>/i>>b>36>/b>, no. 3 (May-June): 49-67.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>7</BIBL>	     <BIBTEXT> Coats, W.; D. Laxton; and D.
 Rose, eds. 2003. >i>The Czech National Bank's Forecasting and Policy
 Analysis System.>/i> Prague: Czech National Bank.</BIBTEXT>	  </REF>   
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 otÅes '97" [The Currency Shakeup in 1997]. Working Paper 15/2000, Czech
 National Bank, Prague.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>9</BIBL>        <BIBTEXT> Enders, W. 2004. >i>Applied Econometric
 Time Series.>/i> Chichester, UK: Wiley.</BIBTEXT>	</REF>	    <REF>  
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 >i>Contemporary Economic Policy>/i>>b>24>/b>, no. 4 (October):
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 NavrÃ¡til. 2003. "Inflation Targeting as a Stabilization Tool: Its Design
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 nos. 5-6: 220-242.</BIBTEXT>	   </REF>      <REF>	    <BIBL>15</BIBL>
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 and Development>/i>>b>39>/b>, no. 3: 30-33.</BIBTEXT>	    </REF>     
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Handle: RePEc:mes:emfitr:v:44:y:2008:i:6:p:67-86




Template-Type: ReDIF-Article 1.0
Author-Name: Urbi  Garay 
Author-X-Name-First: Urbi  
Author-X-Name-Last: Garay 
Author-Name: Maximiliano  GonzÃ¡lez 
Author-X-Name-First: Maximiliano  
Author-X-Name-Last: GonzÃ¡lez 
Author-Name: Carlos A. Molina 
Author-X-Name-First: Carlos A. 
Author-X-Name-Last: Molina 
Title: Firm Performance and CEO Reputation Costs: New Evidence from the Venezuelan Banking Crisis 
Abstract:
 When searching for outside directors, the performance of the candidate as
 a manager of other firms is important. Using a sample of Venezuelan banks
 during a systemic crisis, we find that the outside directorships of chief
 executive officers (CEOs) are negatively affected by banks' performances,
 measured by their default risk. Our results suggest that a CEOs' personal
 monitoring talents are what is being purchased when CEOs are appointed as
 outside directors. In addition, the negative effect of firms' performances
 on their CEOs' reputations is significantly stronger in an emerging
 market, suggesting that CEO reputation helps to control for managerial
 agency costs when other governance mechanisms are absent. The size of the
 bank has a positive effect on CEO reputation, which partially offsets the
 negative reputation effect of the bank risk.
Journal: Emerging Markets Finance and Trade 
Pages: 16-33 
Issue: 3 
Volume: 43 
Year: 2007 
Month: 6 
Keywords: banking crisis, CEO reputation, performance, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K656J810283K1607 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Altman, E.I.; J.
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 >i>Econometrica>/i> 48, no. 4: 817-838.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:43:y:2007:i:3:p:16-33




Template-Type: ReDIF-Article 1.0
Author-Name: ERTUGRUL DELIKTAS 
Author-X-Name-First: ERTUGRUL 
Author-X-Name-Last: DELIKTAS 
Author-Name: MEHMET BALCILAR 
Author-X-Name-First: MEHMET 
Author-X-Name-Last: BALCILAR 
Title:         A Comparative Analysis of Productivity Growth, Catch-Up, and Convergence in Transition Economies       
Abstract:
       The paper examines the macroeconomic performance of 25 transition
 economies using a comparable data set. In order to see whether transition
 to a market-based economy increased economic efficiency, technical
 progress, and total factor productivity (TFP), we estimate efficiency
 measures for Eastern European and Baltic countries and the republics of
 the former Soviet Union using stochastic frontier analysis (SFA) and data
 envelopment analysis as a confirmatory analysis. According to the SFA
 estimates, the average annual efficiency level for the 25 transition
 economies is 0.548, and the average annual rate of growth in technical
 efficiency is 1.8 percent for the 1991-2000 period. The average annual
 technical change in transition economies is -4.3 percent for the period
 examined. That is, there is no technological progress, but over the period
 there has been a technological regress. The sum of the rate of change in
 technical efficiency and technical change implies a 2.5 percent decline in
 the average annual TFP. These results suggest that, on average, change in
 technical efficiency is outweighed by the technical regress.	 
Journal: Emerging Markets Finance and Trade 
Pages: 6-28 
Issue: 1 
Volume: 41 
Year: 2005 
Month: 1 
Keywords: convergence, data envelopment analysis, stochastic production frontiers, technical efficiency, total factor productivity, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=T5JDXWEN2DMGGEVL 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 Lovell; and P. Schmidt. 1977. "Formulation and Estimation of Stochastic
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Handle: RePEc:mes:emfitr:v:41:y:2005:i:1:p:6-28




Template-Type: ReDIF-Article 1.0
Author-Name: CATRIONA PURFIELD 
Author-X-Name-First: CATRIONA 
Author-X-Name-Last: PURFIELD 
Title:         Fiscal Adjustment in Transition : Evidence from the 1990s       
Abstract:
       In the 1990s, transition countries underwent large fiscal
 adjustments to address the fiscal imbalances that existed at the start of
 the transition process. This paper examines whether the factors identified
 in the empirical literature on advanced economies, namely the size and
 composition of fiscal adjustments are also important in determining the
 success of fiscal adjustment in transition economies. The main findings
 are that larger consolidations were more successful in addressing the
 fiscal imbalances on a durable basis. There is evidence that policies that
 focused on expenditure were more successful in addressing the imbalances
 than those that relied on revenue increases. The paper finds little
 evidence of expansionary fiscal contractions, but fiscal contractions were
 not associated with a significantly negative impact on growth either. For
 those that attempted fiscal stimulus in the 1990s, few succeeded in
 boosting growth significantly above the average country-specific growth
 rate for the 1990s.	
Journal: Emerging Markets Finance and Trade 
Pages: 43-62 
Issue: 1 
Volume: 39 
Year: 2003 
Month: 1 
Keywords: fiscal adjustment, fiscal policy, logit regression, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H3KYG4T95CFN1KK7 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:39:y:2003:i:1:p:43-62




Template-Type: ReDIF-Article 1.0
Author-Name: Frederic S. Mishkin 
Author-X-Name-First: Frederic S. 
Author-X-Name-Last: Mishkin 
Title: Challenges for Inflation Targeting in Emerging Market Countries 
Abstract:
 In the past decade, numerous emerging market countries have adopted
 inflation targeting as their basic monetary policy strategy. The
 institutional framework in many emerging market countries that affects
 monetary policy outcomes has generally differed from that in advanced
 countries. This paper first outlines what traditionally has made emerging
 market and other developing economies different from advanced countries
 and what challenges these differences have presented to those that adopted
 inflation targeting. The paper then examines whether, given these
 challenges, inflation targeting has been a success in emerging market
 countries.
Journal: Emerging Markets Finance and Trade 
Pages: 5-16 
Issue: 6 
Volume: 44 
Year: 2008 
Month: 11 
Keywords: emerging market countries, inflation targeting, institutions, monetary policy, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=0834134K0J644J37 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:44:y:2008:i:6:p:5-16




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua  Abor 
Author-X-Name-First: Joshua  
Author-X-Name-Last: Abor 
Author-Name: Nicholas  Biekpe 
Author-X-Name-First: Nicholas  
Author-X-Name-Last: Biekpe 
Title: Small Business Reliance on Bank Financing in Ghana 
Abstract:
 Financing has been identified as a dominant constraint to Ghanaian small
 and medium-sized enterprises (SMEs). This study explores the determinants
 of bank financing and debt among Ghanaian SMEs. A panel regression model
 estimates the relation between the determinants and the bank-debt ratio.
 The results reveal that bank loans account for less than a quarter of
 SMEs' total debt financing, and show that the age and size of the firm,
 along with asset tangibility, have significantly positive associations
 with the bank-debt ratio. Profitability is significantly and negatively
 related to the bank-debt ratio. These findings have significant
 implications both at the firm level and for the support of policies aimed
 at improving SME financing in Ghana.
Journal: Emerging Markets Finance and Trade 
Pages: 93-102 
Issue: 4 
Volume: 43 
Year: 2007 
Month: 8 
Keywords: bank loans, debts, financing, Ghana, SMEs, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=2541066173424618 
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abor, J. 2004.
 "Internationalisation and Financing Options of Ghanaian SMEs." >i>Acta
 Commercii>/i> 4, no. 1: 60-72.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>2</BIBL>        <BIBTEXT> Ang, J.S.; J. Wuh Lin; and F. Tyler. 1995.
 "Evidence on the Lack of Separation Between Business and Personal Risks
 Among Small Businesses." >i>Journal of Small Business Finance>/i> 4, no.
 2/3: 197-210.</BIBTEXT>      </REF>	  <REF>        <BIBL>3</BIBL>	   
  <BIBTEXT> Aryeetey, E. 1998. "Informal Finance for Private Sector
 Development in Africa." Economic Research Papers no. 41, African
 Development Bank, Abidjan.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>4</BIBL>        <BIBTEXT> Aryeetey, E.; A. Baah-Nuakoh; T. Duggleby;
 H. Hettige; and W.F. Steel. 1994. "Supply and Demand for Finance of Small
 Scale Enterprises in Ghana." Discussion Paper no. 251, World Bank,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>    
    <BIBTEXT> August, J.D.; M.R. Grupe; C. Luckett; and S.M. Slowinski.
 1997. "Survey of Finance Companies, 1996." >i>Federal Reserve Bulletin>/i>
 1997 (July): 543-556.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>6</BIBL>        <BIBTEXT> Berger, A.N., and G.F. Udell. 1995.
 "Relationship Lending and Lines of Credit in Small Firm Finance."
 >i>Journal of Business>/i> 68, no. 3: 351-381.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> Berger, A.N., and G.F. Udell.
 1998. "The Economics of Small Business Finance: The Roles of Private
 Equity and Debt Markets in the Financial Growth Cycle." >i>Journal of
 Banking and Finance>/i> 22, no. 1: 613-673.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Biekpe, N. 2004. "Financing
 Small Business in Sub-Saharan Africa: Review of Some Key Credit Lending
 Models and Impact of Venture Capital." >i>Journal of African Business>/i>
 5, no. 1: 29-44.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>   
     <BIBTEXT> Bigsten, A.; P. Collier; S. Dercon; M. Fafchamps; B.
 Guthier; J.W. Gunning; M. Soderbom; A. Oduro; R. Oostendorp; C. Patillo;
 F. Teal; and A. Zeufack. 2000. "Credit Constraints in Manufacturing
 Enterprises in Africa." Working Paper WPS/2000, Centre for the Study of
 African Economies, Oxford University, Oxford.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Binks, M.R.; C.T. Ennew; and
 G.V. Reed. 1992. "Information Asymmetries and the Provision of Finance to
 Small Firms." >i>International Small Business Journal>/i> 11, no. 1:
 35-46.</BIBTEXT>      </REF>	   <REF>	<BIBL>11</BIBL>       
 <BIBTEXT> Boot, A.W.A.; A.V. Thakor; and G.F. Udell. 1991. "Secured
 Lending and Default Risk: Equilibrium Analysis, Policy Implications and
 Empirical Results." >i>Economic Journal>/i> 10, no. 1 (May):
 458-472.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Buatsi, S.N. 2002. "Financing Non-Traditional Exporters in
 Ghana." >i>Journal of Business and Industrial Marketing>/i> 17, no. 6:
 501-522.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Cassar, G., and S. Holmes. 2003. "Capital Structure and
 Financing of SMEs: Australian Evidence." >i>Journal of Accounting and
 Finance>/i> 43, no. 1: 123-147.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>14</BIBL>	<BIBTEXT> Cole, R.A., and J.D. Wolken. 1995.
 "Financial Services Used by Small Businesses: Evidence from the 1993
 National Survey of Small Business Finances." >i>Federal Reserve
 Bulletin>/i> 1995 (July): 629-666.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>15</BIBL>	<BIBTEXT> DemirgÃ¼c-Kunt, A., and V. Maksimovic.
 1999. "Institutions, Financial Markets and Firm Debt Maturity." >i>Journal
 of Finance>/i> 54, no. 3: 295-336.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>16</BIBL>	<BIBTEXT> Diamond, D.W. 1989. "Reputation
 Acquisition in Debt Markets." >i>Journal of Political Economy>/i> 97
 (August): 828-862.</BIBTEXT>	   </REF>      <REF>	    <BIBL>17</BIBL>
	<BIBTEXT> Diamond, D.W. 1991. "Monitoring and Reputation: The
 Choice Between Bank Loans and Directly Placed Debts." >i>Journal of
 Political Economy>/i> 99, no. 4: 689-721.</BIBTEXT>	  </REF>      <REF>
	<BIBL>18</BIBL>        <BIBTEXT> Ennew, C.T., and M. Binks. 1995.
 "The Provision of Finance to Small Businesses: Does the Banking
 Relationship Constrain Performance?" >i>Journal of Small Business
 Finance>/i> 4, no. 1: 57-73.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>19</BIBL>	<BIBTEXT> Fisher, E., and R. Reuber. 2000.
 "Industrial Clusters and SME Promotion in Developing Countries,
 Commonwealth Trade and Enterprise." Paper no. 3, Commonwealth Secretariat,
 London.</BIBTEXT>	</REF>	    <REF>	 <BIBL>20</BIBL>       
 <BIBTEXT> Ooi, J. 1999. "The Determinant of Capital Structure: Evidence on
 U.K. Property Companies." >i>Journal of Property Investment and
 Finance>/i> 17, no. 5: 464-480.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>21</BIBL>	<BIBTEXT> Ooi, J. 2000. "Corporate Reliance on Bank
 Loans: An Empirical Analysis of U.K. Property Companies." >i>Journal of
 Property Investment and Finance>/i> 18, no. 1: 103-120.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT> Orser, B.; A.
 Riding; and C. Swift. 1994. "Banking Experiences of Canadian
 Micro-Businesses." >i>Journal of Enterprising Culture>/i> 1, no. 3:
 321-345.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT> Petersen, M.A., and R.G. Rajan. 1994. "The Benefits of Lending
 Relationships: Evidence from Small Business Data." >i>Journal of
 Finance>/i> 49, no. 1: 3-38.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>24</BIBL>	<BIBTEXT> Peterson, R., and R. Schulman. 1987.
 "Entrepreneurs and Banking in Canada." >i>Journal of Small Business and
 Entrepreneurship>/i> 5, no. 1: 41-45.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>25</BIBL>	   <BIBTEXT> Rajan, R.G. 1992. "Insiders and
 Outsiders: The Choice Between Informed and Arm's-Length Debt." >i>Journal
 of Finance>/i> 47, no. 4: 1367-1406.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>26</BIBL>	  <BIBTEXT> Scherr, F.C.; T.F. Sugrue; and J.B.
 Ward. 1993. "Financing the Small Firm Start-Up: Determinants of Debt Use."
 >i>Journal of Small Business Finance>/i> 1, no. 1: 17-36.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>27</BIBL>	 <BIBTEXT> Sowa, N.K.; A.
 Baah-Nuakoh; K.A. Tutu; and B. Osei. 1992. "Small Enterprise and
 Adjustment: The Impact of Ghana's Economic Recovery Programme on
 Small-Scale Industrial Enterprises." Overseas Development Institute
 Research Reports, London.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>28</BIBL>	<BIBTEXT> Storey, D.J. 1994. "The Role of Legal
 Status in Influencing Bank Financing and New Firm Growth." >i>Applied
 Economics>/i> 26, no. 2: 129-136.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>29</BIBL>	<BIBTEXT> Tagoe, N.; E. Nyarko; and E. Anuwa-Amarh.
 2005. "Financial Challenges Facing Urban SMEs Under Financial Sector
 Liberalization in Ghana." >i>Journal of Small Business Management>/i> 43,
 no. 3: 331-343.</BIBTEXT>	</REF>	    <REF>	 <BIBL>30</BIBL>   
     <BIBTEXT> Timmons, J.A. 1994. >i>New Venture Creation.>/i> Chicago:
 Irwin.</BIBTEXT>      </REF>	   <REF>	<BIBL>31</BIBL>       
 <BIBTEXT> Weinberg, J.A. 1994. "Firm Size, Finance, and Investment."
 >i>Federal Reserve Bank of Richmond Economic Quarterly>/i> 80, no. 1:
 19-40.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:43:y:2007:i:4:p:93-102




Template-Type: ReDIF-Article 1.0
Author-Name: VALERIE MERCER-BLACKMAN 
Author-X-Name-First: VALERIE 
Author-X-Name-Last: MERCER-BLACKMAN 
Author-Name: ANNA UNIGOVSKAYA 
Author-X-Name-First: ANNA 
Author-X-Name-Last: UNIGOVSKAYA 
Title:         Compliance with IMF Program Indicators and Growth in Transition Economies       
Abstract:
       This paper makes use of the International Monetary Fund's (IMF)
 Database for Monitoring Fund Arrangements (MONA) to investigate whether
 transition countries that more successfully implement the conditionality
 of IMF programs in the early transition years show a better performance in
 recovery and growth. The results indicate that the level of compliance
 with structural benchmarks in IMF programs does not explain growth in
 program countries. However, the paper finds a definite, positive
 relationship between the index of compliance with quantitative performance
 criteria and growth, even after controlling for the extent of initial
 stabilization in transition countries.    
Journal: Emerging Markets Finance and Trade 
Pages: 55-83 
Issue: 3 
Volume: 40 
Year: 2004 
Month: 5 
Keywords: IMF program evaluation, initial conditions, performance criteria, structural benchmark, transition and growth, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XPJPKEPQ0TNY9WGE 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Conway, P. 1994. "IMF
 Lending Programs: Participation and Impact." Journal of Development
 Economics 45, no. 2 (December): 365-391.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>2</BIBL>	     <BIBTEXT>------. 1998. "Evaluating Fund
 Programs: Methodology and Empirical Estimates." Department of Economics,
 University of North Carolina at Chapel Hill, May.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>3</BIBL>	      <BIBTEXT>De Melo, M.; C. Denizer; and
 A. Gelb. 1996. "Patterns of Transition from Plan to Market." World Bank
 Economic Review 10, no. 3: 397-424.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>4</BIBL>	<BIBTEXT>De Melo, M.; C. Denizer; A. Gelb; and S.
 Tenev. 2001. "Circumstance and Choice: the Role of Initial Conditions and
 Policies in Transition Economies." World Bank Economic Review 15, no. 1:
 1-31.</BIBTEXT>      </REF>	  <REF>        <BIBL>5</BIBL>	    
 <BIBTEXT>EBRD. Various issues from 1994-97. "Transition Report." European
 Bank for Reconstruction and Development, London.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>6</BIBL>	     <BIBTEXT>Goldstein, M., and P.
 Montiel. 1986. "Evaluating Fund Stabilization Programs with Multicountry
 Data: Some Methodological Pitfalls." IMF Staff Papers 33, no. 2:
 304-344.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT>Havrylyshyn, O.; I. Izvorski; and R. van Rooden. 1998. "Recovery
 and Growth in Transition Economies 1990-97: A Stylized Regression
 Analysis." IMF Working Paper No. 141, Washington, DC.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT>Havrylyshyn, O.;
 T. Wolf; J. Berengaut; M. Castello-Branco; R. van Rooden; and V.
 Mercer-Blackman. 2000. "Growth Experience in Transition Economies, 90-98."
 IMF Occasional Paper No. 184, Washington, DC.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT>IMF. 1997 "The ESAF at Ten
 Years: Economic Adjustment and Reform in Low-Income Countries." IMF
 Occasional Paper No. 156, Washington, DC.</BIBTEXT>	  </REF>      <REF>
	<BIBL>10</BIBL>        <BIBTEXT>Khan, M. 1990. "The Macroeconomic
 Effects of Fund-Supported Programs." IMF Staff Papers 37, no. 2 (June):
 195-231.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT>Killick, T.; M. Malik; and M. Manuel. 1995. "What Can We Know
 about the Effects of IMF Programmes?" World Economy 15, no. 5 (September):
 575-597.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT>Mecagni, M. 1999. "The Causes of Program Interruptions." In
 Economic Adjustment and Reform in Low-Income Countries: Studies by the
 Staff of the IMF, ed. H. Bredenkamp and S. Schadler, pp. 215-276.
 Washington, DC: International Monetary Fund.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT>Pastor, M. 1987. "The Effects
 of IMF Programs in the Third World: Debate and Evidence from Latin
 America." World Development 15, no. 2 (February): 249-262.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT>Polak, J. 1991.
 "The Changing Nature of IMF Conditionality." OECD Technical Paper No. 41,
 Paris.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>       
 <BIBTEXT>Schadler, S.; F. Rozwadowski; S. Tiwari; and D. Robinson. 1993.
 "Economic Adjustment in Low-Income Countries: Experience under the
 Enhanced Structural Adjustment Facility." IMF Occasional Paper No. 106,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>16</BIBL>   
     <BIBTEXT>Taube, G., and J. Zettelmeyer. 1998. "Output Decline and
 Recovery in Uzbekistan--Past Performance and Future Prospects." IMF
 Working Paper No. 132, Washington, DC.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>17</BIBL>	    <BIBTEXT>Ul Haque, N., and M. Khan. 1998. "Do
 IMF-Supported Programs Work? A Survey of the Cross-Country Empirical
 Evidence." IMF Working Paper No. 169, Washington, DC.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:3:p:55-83




Template-Type: ReDIF-Article 1.0
Author-Name: YeÅ¡im  KuÅ¡tepeli 
Author-X-Name-First: YeÅ¡im  
Author-X-Name-Last: KuÅ¡tepeli 
Title: Income Inequality, Growth, and the Enlargement of the European Union 
Abstract:
 This study investigates the relation between income inequality and
 economic growth, namely, the Kuznets curve, in the context of EU
 enlargement. The results have implications regarding how the latest
 enlargement of the European Union affects the relationship between income
 inequality and growth, for both EU member countries and the European Union
 as a region. Estimation results show that there is no evidence of a
 significant original or reverse Kuznets curve for any of the groups of
 countries in this study. Therefore, empirical results suggest that the
 latest enlargement, and a possible future accession of the candidates, may
 not change the fact that a Kuznets curve does not exist for the European
 Union.
Journal: Emerging Markets Finance and Trade 
Pages: 77-88 
Issue: 6 
Volume: 42 
Year: 2006 
Month: 12 
Keywords: enlargement of the European Union, European Union, growth, income inequality, Kuznets curve, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V55545T604Q04036 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adams, R.H., Jr., and
 J. Page. 2003. "Poverty, Inequality, and Growth in Selected Middle East
 and North Africa Countries: 1980-2000." >i>World Development>/i> 31, no.
 12: 2027-2048.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	   
   <BIBTEXT> Anand, S., and S.M.R. Kanbur. 1993. "Inequality and
 Development: A Critique." >i>Journal of Development Economics>/i> 41, no.
 1: 19-43.</BIBTEXT>	  </REF>      <REF>	   <BIBL>3</BIBL>	
 <BIBTEXT> Barrios, S., and E. Strobl. 2005. "The Dynamics of Regional
 Inequalities." European Economy Economic Papers 229, European Commission
 Directorate-General for Economic and Financial Affairs,
 Brussels.</BIBTEXT>	  </REF>      <REF>	   <BIBL>4</BIBL>	
 <BIBTEXT> Bleaney, M., and A. Nishiyama. 2004. "Income Inequality and
 GrowthâDoes the Relationship Vary with the Income Level?" >i>Economics
 Letters>/i> 84, no. 3: 349-355.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>5</BIBL>        <BIBTEXT> Campano, F., and D. Salvatore. 1988.
 "Economic Development, Income Inequality and Kuznets' U-Shaped
 Hypothesis." >i>Journal of Policy Modeling>/i> 10, no. 2:
 265-280.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Chen, B. 2003. "An Inverted-U Relationship Between Inequality
 and Long Run Growth." >i>Economics Letters>/i> 78, no. 5:
 205-212.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Deininger, K., and L. Squire. 1998. "New Ways of Looking at Old
 Issues: Inequality and Growth." >i>Journal of Development Economics>/i>
 57, no. 2: 259-287.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>
	<BIBTEXT> Epstein, G.S., and U. Spiegel. 2001. "Natural Inequality,
 Production, and Economic Growth." >i>Labour Economics>/i> 8, no. 4:
 463-473.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> European Commission Directorate-General for Economic and
 Financial Affairs. 2004. "The EU Economy: 2004 Review." >i>European
 Economy>/i> 6, no. 2: 95-107.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Eusufzai, Z. 1997. "The Kuznets
 Hypothesis: An Indirect Test." >i>Economics Letters>/i> 54, no. 1:
 81-85.</BIBTEXT>      </REF>	   <REF>	<BIBL>11</BIBL>       
 <BIBTEXT> Gallet, C.A., and R.M. Gallet. 2004. "U.S. Growth and Income
 Inequality: Evidence of Racial Differences." >i>Social Science Journal>/i>
 41, no. 1: 43-51.</BIBTEXT>	  </REF>      <REF>	   <BIBL>12</BIBL> 
       <BIBTEXT> Gianetti, M. 2002. "The Effects of Integration of Regional
 Disparities: Convergence, Divergence, or Both?" >i>European Economic
 Review>/i> 46, no. 3: 539-567.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>13</BIBL>	<BIBTEXT> Glomm, G. 1997. "Whatever Happened to the
 Kuznets Curve? Is it Really Upside Down?" >i>Journal of Income
 Distribution>/i> 7, no. 1: 63-87.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>14</BIBL>	<BIBTEXT> Krongkaew, M., and N. Kakwani. 2003. "The
 Growth-Equity Trade-Off in Modern Economic Development: The Case of
 Thailand." >i>Journal of Asian Economics>/i> 14, no. 5: 735-757.</BIBTEXT>
      </REF>	  <REF>        <BIBL>15</BIBL>	      <BIBTEXT> Kuznets, S.
 1955. "Economic Growth and Income Inequality." >i>American Economic
 Review>/i> 45, no. 1: 1-28.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>16</BIBL>	<BIBTEXT> List, J.A., and C.A. Gallet. 1999. "The
 Kuznets Curve: What Happens After the Inverted-U?" >i>Review of
 Development Economics>/i> 3, no. 2: 200-206.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Oshima, H.T. 1994. "The
 Impact of Technological Transformation on Historical Trends in Economic
 Distribution of Asia and the West." >i>Developing Economies>/i> 32, no. 3:
 237-255.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT> Papanek, G., and O. Kyn. 1986. "The Effect on Income
 Distribution of Development, the Growth Rate, and Economic Strategy."
 >i>Journal of Development Economics>/i> 23, no. 1: 55-65.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> Petrakos, G.; A.
 RodrÃ­guez-Pose; and A. Rovolis. 2003. "Growth, Integration, and Regional
 Inequality in Europe." European Regional Science Association Conference
 Papers no. ersa03p46 (available at >a target="_blank"
 href='http://www.ersa.org/ersaconfs/ersa03/cdrom/papers/46.pdf'>www.ersa.o
 rg/ersaconfs/ersa03/cdrom/papers/46.pdf).>/a></BIBTEXT>      </REF>	 
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Savvides, A., and T.
 Stengos. 2000. "Income Inequality and Economic Development: Evidence from
 the Threshold Regression Model." >i>Economics Letters>/i> 69, no. 2:
 201-212.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Tribble, R., Jr. 1999. "A Restatement of the S-Curve
 Hypothesis." >i>Review of Development Economics>/i> 3, no. 2:
 207-214.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:6:p:77-88




Template-Type: ReDIF-Article 1.0
Author-Name: SERDAR SAYAN 
Author-X-Name-First: SERDAR 
Author-X-Name-Last: SAYAN 
Title:         Guest Workers' Remittances and Output Fluctuations in Host and Home Countries : The Case of Remittances from Turkish Workers in Germany       
Abstract:
       Over the past decades, different Mediterranean countries have sent
 considerable numbers of workers to the EU area, generating sizable amounts
 of foreign exchange receipts through the remittances these guest workers
 have transferred back home. In some instances, however, the share of
 remittances in foreign exchange receipts has risen so high as to cause
 concern for policymakers, as they imply potentially serious effects on
 macroeconomic balances following sudden drops or jumps in remittances.
 Despite the importance of implications of the volatility of remittance
 receipts, the current literature severely lacks thorough investigations
 into the sources of this volatility. This paper aims to help fill this gap
 in the literature by documenting some key business cycle properties of
 workers' remittances received by the Turkish economy. More specifically,
 the paper investigates whether there is a relationship between the amount
 of remittances sent to Turkey by the large number of Turkish workers
 living and working in Germany, and up- and downswings that Turkish and
 German economies experience. For this purpose, regularities between
 fluctuations in the national outputs of respective economies and
 remittance flows to Turkey are analyzed by using time series data, and
 implications of results for the Turkish economy are discussed.    
Journal: Emerging Markets Finance and Trade 
Pages: 68-81 
Issue: 6 
Volume: 40 
Year: 2004 
Month: 11 
Keywords: business cycles, Germany, Turkey, workers&#146, remittances, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=NNUWJJET23A2BHY4 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Alper, E. 2002.
 "Business Cycles, Excess Volatility, and Capital Flows: Evidence from
 Mexico and Turkey." Emerging Markets Finance and Trade 38, no. 4
 (July-August): 25-58.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>2</BIBL>        <BIBTEXT>Aydas, O.T. 2002. "Determinants of Workers'
 Remittances: Evidence from Turkey." Master's thesis, Bilkent University,
 Ankara.</BIBTEXT>	</REF>	    <REF>	 <BIBL>3</BIBL>       
 <BIBTEXT>Buch, C.M.; A. Kuckulenz; and M. Le Manchec. 2002. "Worker
 Remittances and Capital Flows." Kiel Institute for World Economics,
 Discussion Paper No. 1130, Kiel, Germany.</BIBTEXT>	  </REF>      <REF>
	<BIBL>4</BIBL>	      <BIBTEXT>Chami, R.; C. Fullenkamp; and S.
 Jahjah. 2003. "Are Immigrant Remittance Flows a Source of Capital for
 Development?" International Monetary Fund, Working Paper No. WP/03/ 189,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>    
    <BIBTEXT>Collinson, S. 1993. Europe and International Migration.
 London: Royal Institute of International Affairs.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>6</BIBL>	      <BIBTEXT>El-Sakka, M.I.T., and R.
 Mcnabb. 1999. "The Macroeconomic Determinants of Emigrant Remittances."
 World Development 27, no. 8: 1493-1502.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>7</BIBL>	    <BIBTEXT>Faini, R. 1994. "Workers' Remittances
 and the Real Exchange Rate: A Quantitative Framework." Journal of
 Population Economics 7, no. 2: 235-245.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>8</BIBL>	    <BIBTEXT>Giubilaro, D. 1997. Migration from the
 Maghreb and Migration Pressures: Current Situation and Future Prospects.
 Geneva: International Labour Office.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>9</BIBL>	 <BIBTEXT>Glytsos, N.P. 1993. "Measuring the Income
 Effect of Migrant Remittances: A Methodological Approach Applied to
 Greece." Economic Development and Cultural Change 42, no. 1:
 131-168.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT>------. 2002. "The Role of Migrant Remittances in Development:
 Evidence from Mediterranean Countries." International Migration 40, no. 1:
 5-26.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	     
 <BIBTEXT>Hodrick, R.J.; and E.C. Prescott. 1980. "Postwar U.S. Business
 Cycles: An Empirical Investigation." Discussion Paper No. 451, Carnegie
 Mellon University, Pittsburgh.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>12</BIBL>	<BIBTEXT>Kydland, F.E., and E. Prescott. 1990.
 "Business Cycles: Real Facts and a Monetary Myth." Federal Reserve Bank of
 Minneapolis Quarterly Review 14, no. 2: 3-18.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT>Lianos, T.P. 1997. "Factors
 Determining Migrant Remittances: The Case of Greece." International
 Migration Review 31, no. 1: 72-87.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT>Lucas, R.E. 1977. "Understanding Business
 Cycles." In Stabilization of the Domestic and International Economy, ed.
 K. Brunner and A.H. Meltzer, pp. 7-29. Amsterdam: North-Holland.</BIBTEXT>
      </REF>	  <REF>        <BIBL>15</BIBL>	      <BIBTEXT>Neyapti, B.
 2004. "Trends in Workers' Remittances: A Worldwide Overview." Emerging
 Markets Finance and Trade 40, no. 2 (March-April): 83-90.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>Pallage, S., and
 M.A. Robe. 2001. "Foreign Aid and the Business Cycle." Review of
 International Economics 9, no. 4: 641-672.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT>Ratha, D. 2003. "Workers'
 Remittances: An Important and Stable Source of External Development
 Finance." In Global Development Finance: Striving for Stability in
 Development Finance, pp. 157-175. Washington, DC: World Bank.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>18</BIBL>	   <BIBTEXT>Sayan, S. 2002.
 "Cyclicality of Remittance Flows and Business Cycle Characteristics in
 Host and Home Countries of Migrant Workers: The Case of Remittances of
 Turkish Workers in Germany." Paper presented at the eighth annual meeting
 of the Economic Research Forum, Cairo, January 15-17.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT>Straubhaar, T.
 1985. "Der Zahlungsbilanzeffect der Devisentransfers ausgewanderter
 Aebeitskrafte fur ihre Herkunftslander" [The Balance of Payments Effect
 for Their Home Country of Migrant Workers' Remittances]. Jahrbucher fur
 Nationalokonomie und Statistik 200, no. 3: 280-297.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>20</BIBL>	 <BIBTEXT>------. 1986. "The
 Determinants of Workers' Remittances: The Case of Turkey."
 Weltwirtschaftliches Archiv 122, no. 4: 728-740.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>21</BIBL>	      <BIBTEXT>Swamy, G. 1981.
 "International Migrant Workers' Remittances: Issues and Prospects." World
 Bank, Staff Working Paper No. 481, Washington, DC.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>22</BIBL>	<BIBTEXT>Wahba, S. 1991. "What
 Determines Workers' Remittances." Finance and Development 28, no. 4:
 41-44.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:40:y:2004:i:6:p:68-81




Template-Type: ReDIF-Article 1.0
Author-Name: GONZALO PASTOR 
Author-X-Name-First: GONZALO 
Author-X-Name-Last: PASTOR 
Author-Name: TATIANA DAMJANOVIC 
Author-X-Name-First: TATIANA 
Author-X-Name-Last: DAMJANOVIC 
Title:         The Russian Financial Crisis and Its Consequences for Central Asia       
Abstract:
       This paper reviews the economic conditions in central Asia at the
 time of the Russian financial crisis of August 1998, the channels by which
 the crisis was transmitted to the central Asian region, and the policy
 responses. The paper concludes that, although real exchange rates of
 central Asian national currencies vis-à-vis the Russian ruble have
 returned to their precrisis levels following the nominal devaluations that
 ensued, other indicators of external competitiveness, such as unit labor
 cost indices, suggest the need for further surveillance in this area.
 Also, it is not yet clear if full exchange rate flexibility has been
 established in central Asia despite the protracted and costly exits from
 the nominal exchange rates in place at the time of the crisis. Finally,
 the ratio of debt to GDP in central Asia, which grew rapidly between 1998
 and 1999 in the context of large exchange rate adjustments, remain a
 challenge for the Tajik and Kyrgyz authorities, in particular.    
Journal: Emerging Markets Finance and Trade 
Pages: 79-104 
Issue: 3 
Volume: 39 
Year: 2003 
Month: 5 
Keywords: exchange rate policy, external debt issues, Russian financial crisis, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J319LNVF693N0N7W 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>De Grauwe, P. 1996.
 International Money, 2d ed. Oxford: Oxford University Press.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>2</BIBL>	 <BIBTEXT>EBRD. Various
 dates. Transition Report. European Bank for Reconstruction and
 Development, London.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>3</BIBL>        <BIBTEXT>Economist Intelligence Unit. 1998. Various
 country reports.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>   
     <BIBTEXT>Eichengreen, B., and P. Masson. 1998. Exit Strategies: Policy
 Options for Countries Seeking Greater Exchange Rate Flexibility.
 International Monetary Fund, Occasional Paper 168, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>	  
 <BIBTEXT>Fidler, S., et al. 1998. "Meltdown." Financial Times, August
 28.</BIBTEXT>	    </REF>	<REF>	     <BIBL>6</BIBL>	  
 <BIBTEXT>Fitch IBCA. Various dates. Various rating reports. New York
 (available at www.fitchratings .com).</BIBTEXT>      </REF>	  <REF>    
    <BIBL>7</BIBL>	  <BIBTEXT>IMF. 1997. World Economic Outlook,
 October 1997: A Survey by the Staff of the International Monetary Fund.
 Washington, DC: IMF.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>8</BIBL>        <BIBTEXT>------. 1998. "Annual Report on Exchange
 Arrangements and Exchange Restrictions." Washington, DC.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT>------. 2001a.
 "Armenia, Kyrgyz Republic, Moldova, and Tajikistan: External Debt and
 Fiscal Sustainability." Paper prepared by the European II Department of
 the IMF and the Europe and Central Asia Region of the World Bank,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>10</BIBL>   
     <BIBTEXT>------. 2001b. "Republic of Armenia, Georgia, Kyrgyz
 Republic, Republic of Moldova, and the Republic of Tajikistan--External
 Debt and Fiscal Sustainability--Background Paper." Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>11</BIBL>	   
 <BIBTEXT>Islamov, B. 1999. "Central Asian States: On the Way from
 Autarchic Dependence to Regional and Global Interdependence." Hitotsubashi
 Journal of Economics 40, no. 2 (December): 75-96.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>12</BIBL>        <BIBTEXT>Kaser, M. 1999. "Escape
 Routes from Post Soviet Inflation and Recession." Finance and Development
 36, no. 2 (June): 24-27.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>13</BIBL>	<BIBTEXT>Levy-Yeyati, E., and F. Sturzenegger.
 2000. "Exchange Rate Regimes and Economic Performance." Paper presented at
 the First Annual IMF Research Conference (available at
 www.imf.org).</BIBTEXT>      </REF>	  <REF>        <BIBL>14</BIBL>	   
   <BIBTEXT>Owen, D. 1999. "The Impact of the Russian Crisis on the Foreign
 Exchange Markets of BRO Countries." International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>15</BIBL>   
     <BIBTEXT>Pastor, G., and T. Damjanovic. 2001. "The Russian Financial
 Crisis and Its Consequences for Central Asia." IMF Working Paper
 WP/01/169, Washington, DC.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>16</BIBL>	<BIBTEXT>Perekhodsev, D. 1999. "The Impact of the
 Russian Ruble Devaluation on Trade and Currencies of the CIS Countries."
 Master's thesis, New Economic School, Moscow.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT>PlanEcon. 1998 and 1999.
 Review and Outlook: For the Former Soviet Republics. Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>18</BIBL>	   
 <BIBTEXT>Poirson, H. 2001. "How Do Countries Choose Their Exchange Rate
 Regime." IMF Working Paper WP/01/46, Washington, DC.</BIBTEXT>      </REF>
      <REF>	   <BIBL>19</BIBL>	  <BIBTEXT>Tamirisa, N.T. 1999.
 "Exchange and Capital Controls as Barriers to Trade." IMF Staff Papers 46,
 no. 1 (March): 69-88.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>20</BIBL>	<BIBTEXT>Westin, P. 1999. "The Domino Effect of the
 Russian Crisis." Russian Economic Trends 8, no. 4: 46-54.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>Yunusova, E.
 1998. "The Impact of the Russian Financial Crisis on Tajikistan." BISNIS
 Bulletin, U.S. Department of Commerce, October 23 (available at
 www.bisnis.doc.gov/ bisnis/).</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:39:y:2003:i:3:p:79-104




Template-Type: ReDIF-Article 1.0
Author-Name: ALAN GUOMING HUANG 
Author-X-Name-First: ALAN GUOMING 
Author-X-Name-Last: HUANG 
Author-Name: HUNG-GAY FUNG 
Author-X-Name-First: HUNG-GAY 
Author-X-Name-Last: FUNG 
Title:         Floating the Nonfloatables in China's Stock Market: Theory and Design       
Abstract:
       This study explains the conflict of interest between the majority
 stockholders, who have nonfloatable shares, and the minority stockholders,
 who have floatable shares in China's stock market. The growth of the
 Chinese financial markets is seriously constrained given the market
 segmentation of the two classes of stocks. This study provides a dynamic
 valuation model that motivates controlling stockholders to convert their
 nonfloatable shares to floatable shares and illustrates how a security
 design is able to float these shares. Issues on how to improve future
 corporate governance in China are also discussed.    
Journal: Emerging Markets Finance and Trade 
Pages: 6-26 
Issue: 5 
Volume: 41 
Year: 2005 
Month: 10 
Keywords: Chinese stock markets, float, nonfloatable shares, security design, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=47G5N77YMMVPRAMV 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Allen, F.; J. Qian; and
 M. Qian. 2003. "Comparing China's Financial System." Working Paper,
 Wharton School, University of Pennsylvania.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Campbell, J.Y.; A. Lo; and A.
 Mackinlay. 1996. The Econometrics of Financial Markets. Princeton:
 Princeton University Press</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>3</BIBL>        <BIBTEXT>Clarke, D.C. 2003. "Corporate Governance in
 China: An Overview." Working Paper, School of Law, University of
 Washington, Seattle.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>4</BIBL>        <BIBTEXT>Fung, H.G., and W.K. Leung. 2002. "The A-
 and B-Share Chinese Equity Market: Segmentation or Integration." In
 Financial Markets and Foreign Direct Investment in Greater China, ed. H.G.
 Fung and Kevin H. Zhang, pp. 99-114. Armonk, NY: M.E. Sharpe.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>5</BIBL>	  <BIBTEXT>Hu, T.C., and O.
 Yang. 2004. "An Investigation on Allocation and Efficiency of Control
 Rights on Listed Companies." Working Report, Guangdong Securities Co.
 Ltd., Guangdong, China.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>6</BIBL>        <BIBTEXT>Huang, A.H., and H.G. Fung. 2004. "Stock
 Ownership Segmentation, Floatability, and Constraints on Investment
 Banking in China." China and World Economy 12, no. 2: 66-78.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT>Li, K.; X. Yang;
 X. Yang; W. Li; Z. Zhu; J. Song; W. Wu; and G. Zhang. 2002. "The Welfare
 Analysis and Policy Research in Rights Issuing and SEOs." Working Paper,
 Jinxin Securities Co. Ltd., Shanghai, China.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT>Nie, R., and X. Tian. 2002.
 "Statistical Analysis of the National 'Shell' Deals in 2001." Working
 Paper, Changjiang Securities Co. Ltd., Wuhan, China.</BIBTEXT>      </REF>
      <REF>	   <BIBL>9</BIBL>	 <BIBTEXT>Ritter, J. 2003.
 "Investment Banking and Securities Issuance." In Handbook of Economics and
 Finance, ed. G.M. Constantinides, M. Harris, and R. Stulz, pp. 253- 304.
 Amsterdam: Elsevier North-Holland.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>10</BIBL>	<BIBTEXT>Ti, L. 2003. "Investment Without Risk: An
 Empirical Investigation of IPO Underpricing in China." Working Paper,
 China Project, Royal Institute of International Affairs and Center of
 International Studies, Cambridge University.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT>Ti, Y. 2002. "The Implicit
 Motivations of Listed Companies' Preferences of Equity Financing." Working
 Paper, ShenyinWanguo Securities Co. Ltd., Shanghai, China.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT>Wang, W.G.; X.Y.
 Tan; and B. Wang. 2003. "Application of Floating Rights Valuation Theories
 and Evaluation of Full-Floatability Proposals." Working Paper, Guotai
 Jun'an Securities Co. Ltd., Shanghai, China.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT>Watanabe, M. 2002. "Holding
 Company Risk in China: A Final Step of State-Owned Enterprises Reforms and
 an Emerging Problem of Corporate Governance." China Economic Review 13,
 no. 4: 373-381.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:41:y:2005:i:5:p:6-26




Template-Type: ReDIF-Article 1.0
Author-Name: FUNDA TELATAR 
Author-X-Name-First: FUNDA 
Author-X-Name-Last: TELATAR 
Title:         Political Business Cycles in the Parliamentary Systems : Evidence from Turkey       
Abstract:
       This paper empirically investigates the existence of political
 business cycles in Turkey for the 1986-97 period. Turkey presents an
 interesting case, with high and chronic inflation problems continuing
 since the mid-1970s. Political surfing and manipulative hypotheses about
 the behavior of the governments in a parliamentary system are tested by
 using probit and logit estimation procedures that include the election
 timing as an endogenous variable. We found that the governments
 manipulated the economy to increase their chances to be reelected through
 money supply and government expenditures during the sample period, causing
 the stabilization programs to loose their credibility and thus the
 inflation problem to continue.    
Journal: Emerging Markets Finance and Trade 
Pages: 24-39 
Issue: 4 
Volume: 39 
Year: 2003 
Month: 7 
Keywords: credibility, inflation, political business cycles, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=NE2MJFJ7RNKCAUMT 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Alesina, A. 1987.
 "Macroeconomic Policy in a Two Party System as a Repeated Game." Quarterly
 Journal of Economics 102, no. 3: 651-678.</BIBTEXT>	  </REF>      <REF>
	<BIBL>2</BIBL>	      <BIBTEXT>------. 1988. "Credibility and
 Policy Convergence in a Two-Party System with Rational Voters." American
 Economic Review 78, no. 4: 796-806.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>3</BIBL>	<BIBTEXT>Alesina, A., and J. Sachs. 1988.
 "Political Parties and Business Cycle in the United States, 1948-84."
 Journal of Money, Credit and Banking 20, no. 1: 63-82.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT>Alt, J.E., and
 K.A. Chrystal. 1983. Political Economics. Berkeley: University of
 California Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>5</BIBL>  
      <BIBTEXT>Barro, R.J., and D. Gordon. 1983a. "A Positive Theory of
 Monetary Policy in a Natural Rate Model." Journal of Political Economy 91,
 no. 4: 589-610.</BIBTEXT>	</REF>	    <REF>	 <BIBL>6</BIBL>    
    <BIBTEXT>------. 1983b. "Rules, Discretion, and Reputation in a Model
 of Monetary Policy." Journal of Monetary Economics 12, no. 1:
 101-122.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT>Cargill, T.F., and M.M. Hutchison. 1991. "Political Business
 Cycles with Endogenous Election Timing: Evidence from Japan." Review of
 Economics and Statistics 73, no. 4: 733-739.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT>Chappell, D., and D.A. Peel.
 1979. "On the Political Theory of the Business Cycle." Economics Letters
 2, no. 4: 327-332.</BIBTEXT>	   </REF>      <REF>	    <BIBL>9</BIBL> 
       <BIBTEXT>Chowdhury, A.R. 1993. "Political Surfing Over Economic
 Waves: Parliamentary Election Timing in India." American Journal of
 Political Science 37, no. 4: 1100-1118.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>10</BIBL>	     <BIBTEXT>Cogley, T., and J. Nason. 1995.
 "Effects of the Hodrick-Prescott Filter on Trend and Difference Stationary
 Time Series: Implications for Business Cycle Research." Journal of
 Economic Dynamics and Control 19, nos. 1-2: 253-278.</BIBTEXT>      </REF>
      <REF>	   <BIBL>11</BIBL>	  <BIBTEXT>Downs, A. 1957. An
 Economic Theory of Democracy. New York: Harper and Row.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT>Drazen, A. 2000.
 "The Political Business Cycle After 25 Years." University of Maryland,
 College Park.</BIBTEXT>      </REF>	  <REF>        <BIBL>13</BIBL>	   
   <BIBTEXT>Enders, W. 1995. Applied Econometric Time Series. New York:
 John Wiley & Sons.</BIBTEXT>	   </REF>      <REF>	    <BIBL>14</BIBL>
	<BIBTEXT>Heckelman, J.C. 2001. "Partisan Business Cycles Under
 Variable Election Dates." Journal of Macroeconomics 23, no. 2:
 261-275.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT>Heckelman, J.C., and H. Berument. 1998. "Political Business
 Cycles and Endogenous Elections." Southern Economic Journal 64, no. 4:
 987-1000.</BIBTEXT>	  </REF>      <REF>	   <BIBL>16</BIBL>	 
 <BIBTEXT>Inoguchi, T. 1980. "Economic Conditions and Mass Support in
 Japan, 1960-1976." In Models of Political Economy, ed. P. Whiteley, pp.
 121-151. Beverly Hills, CA: Sage.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>17</BIBL>	<BIBTEXT>------. 1981. "Explaining and Predicting
 Japanese General Elections, 1960-1980." Journal of Japanese Studies 7, no.
 2: 255-318.</BIBTEXT>	    </REF>	<REF>	     <BIBL>18</BIBL>	   
 <BIBTEXT>Ito, T. 1990. "The Timing of Elections and Political Business
 Cycles in Japan." Journal of Asian Economics 1, no. 1: 135-156.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT>------. 1991.
 "International Impacts on Domestic Political Economy: A Case of Japanese
 Elections." Journal of International Money and Finance 10, March:
 73-89.</BIBTEXT>      </REF>	   <REF>	<BIBL>20</BIBL>       
 <BIBTEXT>Ito, T., and J.H. Park. 1988. "Political Business Cycles in the
 Parliamentary System." Economics Letters 27, no. 3: 233-238.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>21</BIBL>	  <BIBTEXT>Kalecki, M.
 1943. "Political Aspects of Full Employment." Political Quarterly 4:
 322-331.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT>Kohno, M., and Y. Nishizawa. 1990. "A Study of the Electoral
 Business Cycle in Japan: Elections and Government Spending on Public
 Construction." Comparative Politics 22, no. 2: 151-166.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT>Kydland, F., and
 E. Prescott. 1977. "Rules Rather than Discretion: The Inconsistency of
 Optimal Plans." Journal of Political Economy 85, no. 3: 473-491.</BIBTEXT>
      </REF>	  <REF>        <BIBL>24</BIBL>	      <BIBTEXT>Lächler, U.
 1982. "On Political Business Cycles with Endogenous Election Dates."
 Journal of Public Economics 17, no. 1: 111-117.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT>Lewis-Beck, M.S. 1988.
 Economics and Elections: The Major Western Democracies. Ann Arbor:
 University of Michigan Press.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>26</BIBL>	<BIBTEXT>Nannestad, P., and M. Paldam. 1994. "The
 VP-Function: A Survey of the Literature on Vote and Popularity Functions
 After 25 Years." Public Choice 79, no. 3-4: 213-245.</BIBTEXT>      </REF>
      <REF>	   <BIBL>27</BIBL>	  <BIBTEXT>Nordhaus, W.A. 1975.
 "The Political Business Cycle." Review of Economic Studies 42, no. 2:
 169-190.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT>Persson, T., and G. Tabellini. 1990. Macroeconomic Policy,
 Credibility, and Politics. Chur, Switzerland: Harwood Academic
 Publishers.</BIBTEXT>	    </REF>	<REF>	     <BIBL>29</BIBL>	   
 <BIBTEXT>Rogoff, K., and A. Sibert. 1988. "Elections and Macroeconomic
 Policy Cycles." Review of Economic Studies 55, no. 1: 1-16.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>30</BIBL>	 <BIBTEXT>Schumpeter, J.
 1939. Business Cycles: A Theoretical, Historical, and Statistical Analysis
 of the Capitalist Process. New York: McGraw-Hill.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:4:p:24-39




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 3 
Volume: 44 
Year: 2008 
Month: 5 
Keywords: 
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Handle: RePEc:mes:emfitr:v:44:y:2008:i:3:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Anlin  Chen 
Author-X-Name-First: Anlin  
Author-X-Name-Last: Chen 
Author-Name: Lanfeng  Kao 
Author-X-Name-First: Lanfeng  
Author-X-Name-Last: Kao 
Title: The Benefit of Excluding Institutional Investors from Fixed-Price IPOs: Evidence from Taiwan 
Abstract:
 A simple way to mitigate the winner's curse in initial public offerings
 (IPOs) is to reduce the number of informed investors in IPO markets. In
 Taiwan, institutional investors are not permitted to subscribe to
 fixed-price IPOs. Excluding institutional investors raises uninformed
 investors' allocation rates. We show that the winner's curse is still
 present in Taiwan's fixed-price IPO markets even without the participation
 of institutional investors, but that IPO underpricing is reduced by at
 least 4 percent due to alleviating the winner's curse, as institutional
 investors are excluded from the fixed-price offerings.
Journal: Emerging Markets Finance and Trade 
Pages: 5-24 
Issue: 6 
Volume: 42 
Year: 2006 
Month: 12 
Keywords: auctioned offerings, fixed-price offerings, initial public offerings, institutional investors, winner's curse, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=CNR2428V81W27670 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R.; N.R.
 Prabhala; and M. Puri. 2002. "Institutional Allocation in Initial Public
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 1421-1442.</BIBTEXT>	   </REF>      <REF>	    <BIBL>2</BIBL>	 
 <BIBTEXT> Allen, F., and G.R. Faulhaber. 1989. "Signalling by Underpricing
 in the IPO Market." >i>Journal of Financial Economics>/i> 23, no. 2:
 303-323.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Amihud, Y.; S. Hauser; and A. Kirsh. 2003. "Allocations, Adverse
 Selection, and Cascades in IPOs: Evidence from the Tel Aviv Stock
 Exchange." >i>Journal of Financial Economics>/i> 68, no. 1:
 137-158.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Benveniste, L.M., and P.A. Spindt. 1989. "How Investment Bankers
 Determine the Offer Price and Allocation of New Issues." >i>Journal of
 Financial Economics>/i> 24, no. 2: 343-361.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Benveniste, L.M., and W.J.
 Wilhelm. 1990. "A Comparative Analysis of IPO Proceeds Under Alternative
 Regulatory Environments." >i>Journal of Financial Economics>/i> 28, nos.
 1-2: 173-207.</BIBTEXT>      </REF>	  <REF>        <BIBL>6</BIBL>	   
  <BIBTEXT> Chan, K.; J. Wang; and J. Wei. 2004. "Underpricing and
 Long-Term Performance of IPOs in China." >i>Journal of Corporate
 Finance>/i> 10, no. 3: 409-430.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT> Cox, D.R. 1970. >i>The Analysis of
 Binomial Data.>/i> London: Methuen.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>8</BIBL>	<BIBTEXT> Eckbo, B.E., and O. Norli. 2005.
 "Liquidity Risk, Leverage and Long-Run IPO Returns." >i>Journal of
 Corporate Finance>/i> 11, nos. 1-2: 1-35.</BIBTEXT>	  </REF>      <REF>
	<BIBL>9</BIBL>	      <BIBTEXT> Fung, J.; L. Cheng; and K.C. Chan.
 2004. "The Impact of the Costs of Subscription on Measured IPO Returns:
 The Case of Asia." >i>Journal of Corporate Finance>/i> 10, no. 3:
 459-465.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Habib, M., and A. Ljungqvist. 2001. "Underpricing and
 Entrepreneurial Wealth Losses in IPOs: Theory and Evidence." >i>Review of
 Financial Studies>/i> 14, no. 2: 433-458.</BIBTEXT>	  </REF>      <REF>
	<BIBL>11</BIBL>        <BIBTEXT> Hanley, K.W. 1993. "The
 Underpricing of Initial Public Offerings and the Partial Adjustment
 Phenomenon." >i>Journal of Financial Economics>/i> 34, no. 2:
 231-250.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Hanley, K.W., and W.J. Wilhelm. 1995. "Evidence on the Strategic
 Allocation of Initial Public Offerings." >i>Journal of Financial
 Economics>/i> 37, no. 2: 239-257.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>13</BIBL>	<BIBTEXT> Hughes, P.J., and A.V. Thakor. 1992.
 "Litigation Risk, Intermediation, and the Underpricing of Initial Public
 Offerings." >i>Review of Financial Studies>/i> 5, no. 4:
 709-742.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Ibbotson, R.G., and J.R. Ritter. 1995. "Initial Public
 Offerings." In >i>Handbooks of Operations Research and Management
 Science>/i>, ed. R.A. Jarrow, V. Maksimovic, and W.T. Ziemba, pp.
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  <BIBL>15</BIBL>	 <BIBTEXT> Jenkinson, T., and A. Ljungqvist. 2001.
 >i>Going Public.>/i> Oxford: Oxford University Press.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Keloharju, M.
 1993. "The Winner's Curse, Legal Liability, and the Long-Term Price
 Performance of Initial Public Offerings in Finland." >i>Journal of
 Financial Economics>/i> 34, no. 2: 251-277.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Kim, K.A.; P. Kitsabunnarat;
 and J.R. Nofsinger. 2004. "Ownership and Operating Performance in an
 Emerging Market: Evidence from Thai IPO Firms." >i>Journal of Corporate
 Finance>/i> 10, no. 3: 355-381.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>18</BIBL>	<BIBTEXT> Koh, F., and T. Walter. 1989. "A Direct
 Test of Rock's Model of the Pricing of Unseasoned Issues." >i>Journal of
 Financial Economics>/i> 23, no. 2: 251-272.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Levis, M. 1990. "The
 Winner's Curse Problem, Interest Cost and the Underpricing of Initial
 Public Offerings." >i>Economic Journal>/i> 100, no. 399: 76-89.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Lin, J.C.;
 Y. Lee; and Y. Liu. 2003. "What Is IPO Auctions' Weakness?" Working Paper,
 Department of Finance, Louisiana State University, Baton Rouge,
 September.</BIBTEXT>	   </REF>      <REF>	    <BIBL>21</BIBL>	  
 <BIBTEXT> Ljungqvist, A.P., and W.J. Wilhelm. 2002. "IPO Allocations:
 Discriminatory or Discretionary?" >i>Journal of Financial Economics>/i>
 65, no. 2: 167-201.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>22</BIBL>	<BIBTEXT> Loughran, T., and J.R. Ritter. 1995. "The
 New Issue Puzzle." >i>Journal of Finance>/i> 50, no. 1: 23-51.</BIBTEXT>  
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 "Why Don't Issuers Get Upset About Leaving Money on the Table in IPOs?"
 >i>Review of Financial Studies>/i> 15, no. 2: 413-443.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>24</BIBL>	 <BIBTEXT> Loughran, T.; J.
 Ritter; and K. Rydqvist. 1994. "Initial Public Offerings: International
 Insights." >i>Pacific-Basin Finance Journal>/i> 2, nos. 2-3:
 165-199.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> Ritter, J.R. 1987. "The Costs of Going Public." >i>Journal of
 Financial Economics>/i> 19, no. 2: 269-281.</BIBTEXT>	    </REF>     
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  <BIBTEXT> Ritter, J.R., and I. Welch. 2002. "A Review of IPO Activity,
 Pricing, and Allocations." >i>Journal of Finance>/i> 57, no. 4:
 1795-1828.</BIBTEXT>	   </REF>      <REF>	    <BIBL>28</BIBL>	  
 <BIBTEXT> Rock, K. 1986. "Why New Issues Are Underpriced." >i>Journal of
 Financial Economics>/i> 15, nos. 1-2: 187-212.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>29</BIBL>	     <BIBTEXT> Sherman, A.E. 2002. "Global
 Trends in IPO Methods: Bookbuilding vs. Auction." Working Paper,
 Department of Finance and Business Economics, University of Notre Dame,
 South Bend, IN, March.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>30</BIBL>	<BIBTEXT> Spatt, C.S., and S. Srivastava. 1991.
 "Prepaid Communication, Participation, Restrictions, and Efficiency in
 Initial Public Offerings." >i>Review of Financial Studies>/i> 4, no. 4:
 709-726.</BIBTEXT>	 </REF>      <REF>	  <BIBL>31</BIBL>	
 <BIBTEXT> Tinic, S.M. 1988. "Anatomy of Initial Public Offerings of Common
 Stock." >i>Journal of Finance>/i> 43, no. 4: 789-822.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>32</BIBL>	 <BIBTEXT> Welch, I. 1989.
 "Seasoned Offerings, Imitation Costs, and the Underpricing of Initial
 Public Offerings." >i>Journal of Finance>/i> 44, no. 2: 421-449.</BIBTEXT>
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 no. 2: 695-732.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:42:y:2006:i:6:p:5-24




Template-Type: ReDIF-Article 1.0
Author-Name: Chaoshin  Chiao 
Author-X-Name-First: Chaoshin  
Author-X-Name-Last: Chiao 
Author-Name: Weifeng  Hung 
Author-X-Name-First: Weifeng  
Author-X-Name-Last: Hung 
Author-Name: Cheng F. Lee 
Author-X-Name-First: Cheng F. 
Author-X-Name-Last: Lee 
Title: Mispricing of Research and Development Investments in a Rapidly Emerging and Electronics-Dominated Market 
Abstract:
 This paper documents prevailing mispricing of research and development
 (R&D) investments in the Taiwan stock market, a rapidly emerging and
 electronics-dominated market. Applying stock return data from July 1988 to
 June 2005, we observe that R&D-intensive stocks tend to outperform stocks
 with little or no R&D. The R&D-intensity effect cannot be attributed fully
 to firm size and seasonal effects. The R&D-associated anomaly not only
 exists but also persists for up to three years. The market apparently
 undervalues R&D-intensive firms and overvalues non-R&D-intensive firms.
 Finally, the R&D anomaly is clearer for firms in the electronics industry
 after 1996.
Journal: Emerging Markets Finance and Trade 
Pages: 95-116 
Issue: 1 
Volume: 44 
Year: 2008 
Month: 1 
Keywords: mispricing, R&D intensity, stock returns, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=60687R4417764148 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aboody, D., and B. Lev.
 2000. "Information Asymmetry R&D and Insider Gains." >i>Journal of
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      </REF>	
Handle: RePEc:mes:emfitr:v:44:y:2008:i:1:p:95-116




Template-Type: ReDIF-Article 1.0
Author-Name: VUSLAT US 
Author-X-Name-First: VUSLAT 
Author-X-Name-Last: US 
Title:         Analyzing the Persistence of Currency Substitution Using a Ratchet Variable : The Turkish Case       
Abstract:
       Although previous studies on currency substitution in Turkey confirm
 the existence of currency substitution, these works ignore whether this
 process reached an irreversible stage or not. This paper analyzes the
 persistence of currency substitution in Turkey through inclusion of a
 ratchet variable, the past peak value of the currency substitution.
 Results using an autoregressive distributed lag (ARDL) approach suggest
 that currency substitution during 1990-93 is not persistent enough to be
 irreversible. During 1995-99, even though currency substitution in the
 narrow sense is persistent, currency substitution in the broader sense is
 not irreversible. Therefore, there is still room for effective monetary
 policy.    
Journal: Emerging Markets Finance and Trade 
Pages: 58-81 
Issue: 4 
Volume: 39 
Year: 2003 
Month: 7 
Keywords: ARDL approach, cointegration, dollarization, hysteresis, ratchet effect, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=LH8ANCGH3GCJ3EVX 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Aarle, B., van, and N.
 Budina. 1995. "Currency Substitution in Eastern Europe." Center for
 Economic Research Discussion Paper No. 2, Tilburg University,
 Netherlands.</BIBTEXT>      </REF>	 <REF>	      <BIBL>2</BIBL>	   
 <BIBTEXT>Akçay, C.; C.E. Alper; and M. Karasulu. 1997. "Currency
 Substitution and Exchange Rate Instability: The Turkish Case." European
 Economic Review 41, nos. 3-5: 827-835.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>3</BIBL>	   <BIBTEXT>Dornbusch, R., and A. Reynoso. 1989.
 "Financial Factors in Economic Development." NBER Working Paper No. 2889,
 Cambridge, MA.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	   
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Handle: RePEc:mes:emfitr:v:39:y:2003:i:4:p:58-81




Template-Type: ReDIF-Article 1.0
Author-Name: NITYANDA SARKAR 
Author-X-Name-First: NITYANDA 
Author-X-Name-Last: SARKAR 
Author-Name: DEBABRATA MUKHOPADHYAY 
Author-X-Name-First: DEBABRATA 
Author-X-Name-Last: MUKHOPADHYAY 
Title:         Testing Predictability and Nonlinear Dependence in the Indian Stock Market       
Abstract:
       This paper suggests a systematic approach to studying predictability
 and nonlinear dependence in the context of the Indian stock market, one of
 the most important emerging stock markets in the world. The proposed
 approach considers nonlinear dependence in returns and envisages
 appropriate specification of both the conditional first- and second-order
 moments, so that final conclusions are free from any probable statistical
 consequences of misspecification. To this end, a number of rigorous tests
 are applied on the returns, based on four major daily indices of the
 Indian stock market. It is found that the Indian stock market is
 predictable, and this observed lack of efficiency is due to serial
 correlation, nonlinear dependence, day-of-the week effects, parameter
 instability, conditional heteroskedasticity (GARCH), daily-level
 seasonality in volatility, the short-term interest rate (in some
 subperiods of some indices), and some dynamics in the higher-order
 moments.    
Journal: Emerging Markets Finance and Trade 
Pages: 7-44 
Issue: 6 
Volume: 41 
Year: 2005 
Month: 11 
Keywords: Andrews&#146s test, automatic variance ratio test, BDS test, market efficiency, misspecification, nonlinear dependence, predictability, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=5TXQUDQLCYCHPKLU 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 29-55.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:41:y:2005:i:6:p:7-44




Template-Type: ReDIF-Article 1.0
Author-Name: GÜZIN ERLAT 
Author-X-Name-First: GÜZIN 
Author-X-Name-Last: ERLAT 
Author-Name: HALUK ERLAT 
Author-X-Name-First: HALUK 
Author-X-Name-Last: ERLAT 
Title:         Measuring Intra-Industry and Marginal Intra-Industry Trade : The Case for Turkey       
Abstract:
       Works on whether Turkey's trade structure is predominantly
 interindustry or intra-industry and whether there has been a shift toward
 intra-industry trade (IIT) after 1980 are of a limited number. The present
 study attempts to shed some light on these questions, stressing, in
 particular, changes in IIT. We consider Turkey's trade with the world for
 the 1969-99 period. We first use the Grubel-Lloyd (GL) index and find that
 there is a definite difference in the pattern of the weighted average of
 the three-digit (SITC, Rev. 3) sectoral GL indices, between the pre- and
 post-1980 periods. Even though the rate of IIT is greater in the post-1980
 period, the distribution of the three-digit sectors according to their GL
 index values shows that Turkey's international trade is predominantly
 interindustry (IT). We next use Brülhart's (1994) A, B, and C indices of
 marginal IIT (MIIT) to investigate changes in IIT over time. Both the A
 and B indices indicate that there has been a significant change in MIIT
 between the pre- and post-1980 periods. We couple the C index, which gives
 us changes in the level of IIT for matched changes in trade, with Menon
 and Dixon's (1997) UMCIT index for unmatched changes, to assess the extent
 of adjustment required due to an increase in IIT. We find that, after
 1980, gains in adjustment cost due to changes in IIT given by C are larger
 than the increase in such costs due to changes in IT, as given by UMCIT.   
Journal: Emerging Markets Finance and Trade 
Pages: 5-38 
Issue: 6 
Volume: 39 
Year: 2003 
Month: 11 
Keywords: intra-industry trade, marginal intra-industry trade, market adjustment, Turkish foreign trade, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U63YVTU10D0LPWTB 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abd-el-Rahman, K. 1991.
 "Firms' Competitive and National Comparative Advantages as Joint
 Determinants of Trade Composition." Weltwirtschaftliches Archiv 127, no.
 1: 83-97.</BIBTEXT>	  </REF>      <REF>	   <BIBL>2</BIBL>	
 <BIBTEXT>Azhar, A.K.M.; R.J.R. Elliott; and R.C. Milner. 1998. "Static and
 Dynamic Measurement of Intra-Industry Trade and Adjustment: A Geometric
 Reappraisal." Weltwirtschaftliches Archiv 134, no. 3: 404-422.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>3</BIBL>	   <BIBTEXT>Brülhart, M.
 1994. "Marginal Intra-Industry Trade: Measurement and Relevance for the
 Pattern of Industrial Adjustment." Weltwirtschaftliches Archiv 130, no. 3:
 600-613.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>------. 1999. "Marginal Intra-Industry Trade and Trade-Induced
 Adjustment: A Survey." In Intra-Industry Trade and Adjustment: The
 European Experience, ed. M. Brülhart and R.C. Hine, pp. 36-69. London:
 Macmillan.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL>	 
 <BIBTEXT>------. 2000. "Dynamics of Intraindustry Trade and Labor Market
 Adjustment." Review of International Economics 8, no. 3:
 420-435.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT>Brülhart, M., and M. Thorpe. 2000. "Intra-Industry Trade and
 Adjustment in Malaysia: Puzzling Evidence." Applied Economics Letters 7,
 no. 11: 729-733.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>   
     <BIBTEXT>Dixon, P.B., and J. Menon. 1997. "Measures of Intra-Industry
 Trade as Indicators of Factor Market Disruption." Economic Record 73, no.
 222: 233-247.</BIBTEXT>      </REF>	  <REF>        <BIBL>8</BIBL>	   
  <BIBTEXT>Dog&not;aner-Gönel, F. 2001. "How Important Is Intra-Industry
 Trade Between Turkey and Its Trading Partners?" Russian and East European
 Finance and Trade 37, no. 4 (July- August): 61-76.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>9</BIBL>        <BIBTEXT>Erk, N., and Y. Tekgül.
 2001. "Ekonomik Entegrasyon ve Endüstri-&Oslash;çi Ticaret: Türkiye-AB
 ülkeleri Araséndaki Endüstri-&Oslash;çi Ticaretin &Ouml;lçülmesi ve
 Ticaret Tipinin Belirlenmesi" [Economic Integration and Intra-Industry
 Trade: Measuring Intra-Industry Trade Between Turkey and the EU Countries
 and Determining Its Nature]. Paper presented at the METU Conference on
 Economics V, Ankara, Turkey, September 10-13.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT>Erlat, G. 1999. "Türk Dés*
 Ticaretinde &Ccedil;es*itlenme" [Diversification in Turkish Foreign
 Trade]. Fikret Görün'e Armag&not;an. METU Studies in Development 26, no.
 3-4: 281-298.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	   
   <BIBTEXT>Erlat, G., and O. Akyüz. 2001. "Country Concentration of
 Turkish Exports and Imports over Time." Paper presented at the
 Twenty-First Annual Conference of the Middle East Economic Association,
 New Orleans, January 5-7, 2001.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>12</BIBL>	<BIBTEXT>Erlat, G., and F. Arslaner. 1997.
 "Measuring Annual Real Exchange Rate Series for Turkey." Yapi Kredi
 Economic Review 8, no. 2: 35-61.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>13</BIBL>	<BIBTEXT>Erlat, G., and H. Erlat. 2003a.
 "Intra-Industry Trade and Labor Market Adjustment in Turkey." Paper
 presented at the Twenty-Third Annual Conference of the Middle East
 Economic Association, Washington, DC, January 3-5.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>14</BIBL>	<BIBTEXT>------. 2003b. "The
 Performance of Turkish Exports at the Sectoral Level, 1990-2000." Working
 paper, Department of Economics, Middle East Technical University,
 Ankara.</BIBTEXT>	</REF>	    <REF>	 <BIBL>15</BIBL>       
 <BIBTEXT>Erlat, G., and B. Sahin. 1998. "Export Diversification in Turkey
 over Time." METU Studies in Development 25, no. 1: 47-60.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>Erzan, R., and S.
 Laird. 1984. "Intra-Industry Trade of Developing Countries and Some Policy
 Issues." Seminar Paper No. 289, Institute for International Economic
 Studies, University of Stockholm.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>17</BIBL>	<BIBTEXT>Greenaway, D., and C. Milner. 1983. "On
 the Measurement of Intra-Industry Trade." Economic Journal 93 (December):
 900-908.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT>Greenaway, D.; R. Hine; and C. Milner. 1994. "Country Specific
 Factors and the Pattern of Horizontal and Vertical Intra-Industry Trade in
 the UK." Weltwirtschaftliches Archiv 130, no. 1: 77-100.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT>Greenaway, D.;
 R.C. Hine; C. Milner; and R. Elliott. 1994. "Adjustment and the
 Measurement of Marginal Intra-Industry Trade." Weltwirtschaftliches Archiv
 130, no. 2: 418-427.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>20</BIBL>	<BIBTEXT>Grubel, H.G., and P.J. Lloyd. 1971. "The
 Empirical Measurement of Intra-Industry Trade." Economic Record 47
 (December): 494-517.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>21</BIBL>	<BIBTEXT>Hamilton, C., and P. Kniest. 1991. "Trade
 Liberalization, Structural Adjustment and Intra-Industry Trade."
 Weltwirtschaftliches Archiv 127, no. 2: 356-367.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>22</BIBL>	      <BIBTEXT>Havrylyshyn, O., and E.
 Civan. 1985. "Intra-Industry Trade Among Developing Countries." Journal of
 Development Economics 18, no. 2-3: 253-271.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>23</BIBL>	     <BIBTEXT>Kol, J., and L.B.M. Mennes.
 1983. "Corrections for Trade Imbalance--A Survey." Weltwirtschaftliches
 Archiv 119, no. 4: 703-717.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>24</BIBL>	<BIBTEXT>Lohrmann, A.M. 2002. "A Dynamic Analysis
 of Turkey's Trade with the European Union in the 1990s." Russian and East
 European Finance and Trade 39, no. 2 (March-April): 44-58.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT>Lovely, M.E., and
 D.R. Nelson. 2000. "Marginal Intra-Industry Trade and Labor Adjustment."
 Review of International Economics 8, no. 3: 436-477.</BIBTEXT>      </REF>
      <REF>	   <BIBL>26</BIBL>	  <BIBTEXT>Menon, J., and P. Dixon.
 1997. "Intra-Industry Versus Inter-Industry Trade: Relevance for
 Adjustment Costs." Weltwirtschaftliches Archiv 133, no. 1:
 164-169.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT>Oliveras, J., and I. Terra. 1997. "Marginal Intra-Industry Trade
 Index: The Period and Aggregation Choice." Weltwirtschaftliches Archiv
 133, no. 1: 171-179.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>28</BIBL>	<BIBTEXT>Schüler, M.K. 1995. "The Path of
 Intra-Industry Trade Expansion: The Cases of Spain and Turkey." METU
 Studies in Development 22, no. 1: 79-99.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>29</BIBL>	      <BIBTEXT>Shelburne, R.C. 1993. "Changing
 Trade Patterns and the Intra-Industry Trade Index: A Note."
 Weltwirtschaftliches Archiv 129, no. 4: 829-833.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>30</BIBL>	      <BIBTEXT>Thom, R., and M. McDowell.
 1999. "Measuring Marginal Intra-Industry Trade." Weltwirtschaftliches
 Archiv 135, no. 1: 48-61.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>31</BIBL>	<BIBTEXT>Togan, S. 1994. Foreign Trade Regime and
 Trade Liberalization in Turkey During the 1980s. Aldershot, UK:
 Avebury.</BIBTEXT>	 </REF>      <REF>	  <BIBL>32</BIBL>	
 <BIBTEXT>Torstenssen, J. 1991. "Quality Differentiation and Factor
 Proportions in International Trade: An Empirical Test of the Swedish
 Case." Weltwirtschaftliches Archiv 127, no. 1: 183-194.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>33</BIBL>	 <BIBTEXT>Vona, S. 1991.
 "On the Measurement of Intra-Industry Trade: Some Further Thoughts."
 Weltwirtschaftliches Archiv 127, no. 3: 678-699.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>34</BIBL>	      <BIBTEXT>Yilmaz, B. 2002. "The Role
 of Trade Strategies for Economic Development. A Comparison of Foreign
 Trade Between Turkey and South Korea." Russian and East European Finance
 and Trade 38, no. 2 (March-April): 59-78.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:6:p:5-38




Template-Type: ReDIF-Article 1.0
Author-Name: Erdem  Basci 
Author-X-Name-First: Erdem  
Author-X-Name-Last: Basci 
Author-Name: M. Fatih Ekinci 
Author-X-Name-First: M. Fatih 
Author-X-Name-Last: Ekinci 
Author-Name: Murat  Yulek 
Author-X-Name-First: Murat  
Author-X-Name-Last: Yulek 
Title: On Fixed and Variable Fiscal Surplus Rules 
Abstract:
 Both emerging and developed economies increasingly use fiscal rules. This
 paper analyzes the effects of two alternative fiscal rules on debt
 sustainability. The fixed surplus rule fixes the ratio of primary surplus
 to gross domestic product (GDP), and the variable surplus rule sets the
 primary surplus as a linear function of the debt-to-GDP ratio. A simple
 debt dynamics equation is constructed that incorporates real shocks, and
 the probability of exceeding the critical debt level is simulated using
 Monte Carlo techniques. The results show that the variable surplus rule
 performs better than does the simple fixed surplus rule by reducing debt
 sustainability concerns and the necessary medium-term primary surplus.
 This result hinges on government ability to commit credibly to the
 variable surplus rule in the medium run.
Journal: Emerging Markets Finance and Trade 
Pages: 5-15 
Issue: 3 
Volume: 43 
Year: 2007 
Month: 6 
Keywords: debt dynamics, debt sustainability, fiscal policy rules, Monte Carlo simulation, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A3U200L2437X1338 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Cantor, R., and F.
 Packer. 1996. "Determinants and Impact of Sovereign Credit Ratings."
 >i>FRBNY Economic Policy Review>/i> 2, no. 2 (October): 37-54.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>2</BIBL>	   <BIBTEXT> Catao, L., and
 S. Kapur. 2004. "Missing Link: Volatility and the Debt Intolerance
 Paradox." Working Paper 04/51, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>	  
 <BIBTEXT> DabÃ¡n SÃ¡nchez, T.; E. Detragiache; C.G. Di Bella; G.M.
 Milesi-Ferretti; and S. Symansky. 2003. "Rules-Based Fiscal Policy in
 France, Germany, Italy, and Spain." Occasional Paper 225, International
 Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>4</BIBL>        <BIBTEXT> Hausmann, R. 2004. "Good Credit Ratios,
 Bad Credit Ratings: The Role of Debt Structure." In >i>Rules-Based Fiscal
 Policy in Emerging Market Economies: Background, Analysis and
 Prospects>/i>, ed. G. Kopits. New York: Palgrave Macmillan.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Hu, Y.; R.
 Kiesel; and W. Perraudin. 2001. "The Estimation of Transition Matrices for
 Sovereign Credit Ratings." >i>Journal of Banking and Finance>/i> 26, no.
 7: 1353-1406.</BIBTEXT>      </REF>	  <REF>        <BIBL>6</BIBL>	   
  <BIBTEXT> Kopits, G. 2001. "Fiscal Rules: Useful Policy Framework or
 Unnecessary Ornament." Working Paper 01/145, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>7</BIBL>    
    <BIBTEXT> Wyplosz, C. 2002. "Fiscal Policy: Rules or Institutions?"
 Discussion Paper 3238, Center for Economic Policy Research,
 London.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:43:y:2007:i:3:p:5-15




Template-Type: ReDIF-Article 1.0
Author-Name: Per-Ola  ManeschiÃ¶ld 
Author-X-Name-First: Per-Ola  
Author-X-Name-Last: ManeschiÃ¶ld 
Title: Integration Between the Baltic and International Stock Markets 
Abstract:
 Using cointegration tests, this paper analyzes the existence of long-run
 relationships among Baltic stock markets and major international stock
 markets, including the United States, Japan, Germany, the United Kingdom,
 and France. Bivariate and multivariate cointegration tests indicate a
 common trend linking Latvia to European markets. Evidence indicates that
 the German market dominates this long-run relationship. In general,
 short-term Granger causality indicates causality running from the European
 markets to the Baltic markets, as well as among the Baltic states,
 excepting Latvian and Lithuanian short-term effects on the Estonian
 market. Overall, the results suggest that international investors can
 obtain diversification benefits given a long-term investment horizon
 because of the low degree of integration between the Baltic and
 international capital markets.
Journal: Emerging Markets Finance and Trade 
Pages: 25-45 
Issue: 6 
Volume: 42 
Year: 2006 
Month: 12 
Keywords: Baltic states, cointegration, stock markets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=436N80X21G9630H5 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Baharumshah, A.Z.; T.
 Sarmidi; and H.B. Tan. 2003. "Dynamic Linkages of Asian Stock Markets: An
 Analysis of Pre-Liberalization and Post-Liberalization Eras." >i>Journal
 of the Asian Pacific Economy>/i> 8, no. 2 (June): 180-209.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Bekaert, G., and
 G.B. Harvey. 1995. "Time-Varying World Market Integration." >i>Journal of
 Finance>/i> 50, no. 2 (June): 403-444.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>3</BIBL>	   <BIBTEXT> Bhang, S. 2003. "The Response of the
 Indian Stock Market to the Movement of Asia's Emerging Markets: From
 Isolation Toward Integration." >i>Global Economic Review>/i> 32, no. 2
 (June): 43-58.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	   
   <BIBTEXT> Darrat, A.F.; K. Elkhal; and S.R. Hakim. 2000. On the
 Integration of Emerging Stock Markets in the Middle East." >i>Journal of
 Economic Development>/i> 25, no. 2 (December): 119-129.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> >i>Estonian
 Securities Markets Yearbook.>/i> 1998. Tallinn: Tallinn Stock
 Exchange.</BIBTEXT>	  </REF>      <REF>	   <BIBL>6</BIBL>	
 <BIBTEXT> Feinberg, M., and D. Tokic. 2003. "Long-Run Diversification
 Potential in Latin American Stock Markets: Lessons from Argentina."
 >i>Journal of Emerging Markets>/i> 8, no. 2 (Summer): 16-23.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT> Gilmore, C.G.,
 and G.M. McManus. 2002. "International Portfolio Diversification: U.S. and
 Central European Equity Markets." >i>Emerging Markets Review>/i> 3, no. 1
 (March): 69-83.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>    
    <BIBTEXT> Goldberg, C.S., and F.A. Delgado. 2001. "Financial
 Integration of Emerging Markets: An Analysis of Latin America Versus South
 Asia Using Individual Stocks." >i>Multinational Finance Journal>/i> 5, no.
 4 (December): 259-301.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>9</BIBL>        <BIBTEXT> Granger, C.W.J. 1969. "Investigating
 Causal Relations by Econometric Models and Cross-Spectral Methods."
 >i>Econometrica>/i> 37, no. 3 (August): 424-438.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>10</BIBL>	      <BIBTEXT> Hatemi, J.A.; P.-O.
 ManeschiÃ¶ld; and E. Rocca. 2005. "Is the Swedish Stock Market Becoming
 More Integrated with Those of Germany and France?" Working Paper,
 University of SkÃ¶vde, Sweden.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>11</BIBL>	<BIBTEXT> Johansen, S. 1988. "Statistical Analysis
 of Cointegrating Vectors." >i>Journal of Economic Dynamics and Control>/i>
 12, nos. 2-3 (June-September): 231-254.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>12</BIBL>	     <BIBTEXT> Korajczyk, R.A. 1996. "A Measure of
 Stock Market Integration for Developed and Emerging Markets." >i>World
 Bank Economic Review>/i> 10, no. 2 (May): 267-289.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>13</BIBL>	<BIBTEXT> ManeschiÃ¶ld, P.-O. 2005.
 "International Diversification Benefits Between U.S., Turkish, and
 Egyptian Stock Markets." >i>Review of Middle East Economics and
 Finance>/i> 3, no. 2 (August): 115-133.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>14</BIBL>	     <BIBTEXT> Osterwald-Lenum, M. 1992. "A Note
 with Quantils of the Asymptotic Distribution of the Maximum Likelihood
 Cointegration Rank Test Statistics." >i>Oxford Bulletin of Economics and
 Statistics>/i> 54, no. 3 (August): 461-471.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Phylaktis, K., and F.
 Ravazzolo. 2002. "Measuring Financial and Economic Integration with Equity
 Prices in Emerging Markets." >i>Journal of International Money and
 Finance>/i> 21, no. 6 (November): 879-903.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> >i>RSE Annual Report.>/i>
 1998. Riga: Riga Stock Exchange.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>17</BIBL>	<BIBTEXT> Seabra, F. 2001. "A Cointegration
 Analysis Between Mercosur and International Stock Markets." >i>Applied
 Economics Letters>/i> 8, no. 7 (July): 475-478.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> >i>Ten Years in
 Business.>/i> 2003. Vilnius: National Stock Exchange of
 Lithuania.</BIBTEXT>	   </REF>      <REF>	    <BIBL>19</BIBL>	  
 <BIBTEXT> Wang, Z.; J. Yang; and D.A. Bessler. 2003. "Financial Crisis and
 African Stock Market Integration." >i>Applied Economics Letters>/i> 10,
 no. 9 (July): 527-533.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>20</BIBL>	<BIBTEXT> World Bank. 2004. >i>World Development
 Indicators.>/i> Washington, DC.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>21</BIBL>	<BIBTEXT> Yang, J.; M.M. Khan; and L. Pointer.
 2003a. "Increasing Integration Between the United States and Other
 International Stock Markets? A Recursive Cointegration Analysis."
 >i>Emerging Markets Finance and Trade>/i> 39, no. 6 (November-December):
 39-53.</BIBTEXT>      </REF>	   <REF>	<BIBL>22</BIBL>       
 <BIBTEXT> Yang, J.; J.W. Kolari; and I. Min. 2003b. "Stock Market
 Integration and Financial Crises: The Case of Asia." >i>Applied Financial
 Economics>/i> 13, no. 7 (July): 477-486.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:6:p:25-45




Template-Type: ReDIF-Article 1.0
Author-Name: Kaiguo  Zhou 
Author-X-Name-First: Kaiguo  
Author-X-Name-Last: Zhou 
Author-Name: Michael C. S. Wong 
Author-X-Name-First: Michael C. S. 
Author-X-Name-Last: Wong 
Title: The Determinants of Net Interest Margins of Commercial Banks in Mainland China 
Abstract:
 This paper studies empirically the determinants of Chinese commercial
 banks' net interest margins from 1996 to 2003. It applies an extension to
 the Ho and Saunders (1981) model to identify the elements affecting net
 interest margins. The results indicate that the determinants of net
 interest margins in the Chinese market include market competition
 structure, average operating costs, degree of risk aversion, transaction
 size, implicit interest payments, opportunity cost of reserve, and
 management efficiency.
Journal: Emerging Markets Finance and Trade 
Pages: 41-53 
Issue: 5 
Volume: 44 
Year: 2008 
Month: 9 
Keywords: commercial banks, determinants, net interest margin, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y7107516485RNG05 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abreu, M., and V.
 Mendes. 2002. "Commercial Bank Interest Margins and Profitability:
 Evidence from EU Countries." Porto Working Paper Series, CISEP,
 Portugal.</BIBTEXT>	  </REF>      <REF>	   <BIBL>2</BIBL>	
 <BIBTEXT> Afanasieff T.; P. Lhacer; and M. Nakane. 2002. "The Determinants
 of Bank Interest Spreads in Brazil." Working paper, Banco Central do
 Brazil, Brasilia.</BIBTEXT>	  </REF>      <REF>	   <BIBL>3</BIBL>  
      <BIBTEXT> Allen, L. 1988. "The Determinants of Bank Interest Margins:
 A Note." >i>Journal of Financial and Quantitative Analysis>/i> 23, no. 20:
 231-235.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Angbazo, L. 1997. "Commercial Bank Net Interest Margins, Default
 Risk, Interest-Rate Risk and Off-Balance Sheet Banking." >i>Journal of
 Banking and Finance>/i> 21, no. 1: 55-87.</BIBTEXT>	  </REF>      <REF>
	<BIBL>5</BIBL>	      <BIBTEXT> DemerguÂ¸-Kunt, A., and H.
 Huizinga. 1999. "Determinants of Commercial Bank Interest Margins and
 Profitability: Some International Evidence." >i>World Bank Economic
 Review>/i> 13, no. 2: 379-408.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>6</BIBL>        <BIBTEXT> Ho, T., and A. Saunders. 1981. "The
 Determinants of Banks Interest Margins: Theory and Empirical Evidence."
 >i>Journal of Financial and Quantitative Analysis>/i> 16, no. 4:
 581-600.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Martinez Peria, M. S., and A. Mody. 2004. "How Foreign
 Participation and Market Concentration Impact Bank Spreads: Evidence from
 Latin America." >i>Journal of Money, Credit, and Banking>/i> 36, no. 3:
 511-537.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Maudos, J., and J. F. Guevara. 2004. "Factors Explaining the
 Interest Margin in the Banking Sectors of the European Union." >i>Journal
 of Banking and Finance>/i> 28, no. 9: 2259-2281.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>9</BIBL>	     <BIBTEXT> McShane, R. W., and I. G.
 Sharpe. 1985. "A Time Series/Cross Section Analysis of the Determinants of
 Australian Trading Bank Loan/Deposit Interest Margins: 1962-1981."
 >i>Journal of Banking and Finance>/i> 9, no. 1: 115-136.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Molyneux, P.,
 and J. Thornton. 1992. "Determinants of European Bank Profitability: A
 Note." >i>Journal of Banking and Finance>/i> 16, no. 6:
 1173-1178.</BIBTEXT>	   </REF>      <REF>	    <BIBL>11</BIBL>	  
 <BIBTEXT> Saunders, A., and L. Schumacher. 2000. "The Determinants of Bank
 Interest Rate Margins: An International Study." >i>Journal of
 International Money and Finance>/i> 19, no. 6: 813-832.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:5:p:41-53




Template-Type: ReDIF-Article 1.0
Author-Name: Halit  Gonenc 
Author-X-Name-First: Halit  
Author-X-Name-Last: Gonenc 
Author-Name: Ozgur B. Kan 
Author-X-Name-First: Ozgur B. 
Author-X-Name-Last: Kan 
Author-Name: Ece C. Karadagli 
Author-X-Name-First: Ece C. 
Author-X-Name-Last: Karadagli 
Title: Business Groups and Internal Capital Markets 
Abstract:
 We compare the performance of firms affiliated with diversified business
 groups with the performance of unaffiliated firms in Turkey, an emerging
 market. We address the question of whether group-affiliated firms create
 internal capital markets or control large cash flows. Our findings
 indicate that group affiliation improves a firm's accounting performance,
 but not stock market performance. Deviation of cash-flow rights from
 voting rights has a negative but insignificant effect on accounting
 performance, but a significant effect on market performance. We also find
 that a firm's accounting, but not stock market, performance increases with
 the level of group diversification. Our results show that internal capital
 markets play an important role for the existence of business groups in an
 emerging market context.
Journal: Emerging Markets Finance and Trade 
Pages: 63-81 
Issue: 2 
Volume: 43 
Year: 2007 
Month: 4 
Keywords: business groups, emerging market, internal capital markets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K3778355588832W1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Almeida, H., and D.
 Wolfenzon. 2005. "A Theory of Pyramidal Ownership and Family Business
 Groups." Working Paper, Stern School of Business, New York University, New
 York.</BIBTEXT>      </REF>	  <REF>        <BIBL>2</BIBL>	    
 <BIBTEXT> Aoki, M. 1984. "The Contingent Governance of Teams: Analysis of
 Institutional Complementarity." >i>International Economic Review>/i>35,
 no. 3: 657-676.</BIBTEXT>	</REF>	    <REF>	 <BIBL>3</BIBL>    
    <BIBTEXT> Aoki, M. 1990. "Toward an Economic Model of the Japanese
 Firm." >i>Journal of Economic Literature>/i>28, no. 1: 1-27.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>4</BIBL>	 <BIBTEXT> Berger, P., and
 E. Ofek. 1995. "Diversification's Effect on Firm Value." >i>Journal of
 Financial Economics>/i>37, no. 1: 39-66.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>5</BIBL>	     <BIBTEXT> Dyck, A., and L. Zingales. 2004.
 "Private Benefits of Control: An International Comparison." >i>Journal of
 Finance>/i>59, no. 2: 537-600.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>6</BIBL>        <BIBTEXT> Fauver, L.; J. Houston; and A. Naranjo.
 2003. "Capital Market Development, Legal Systems and the Value of
 Corporate Diversification: A Cross-Country Analysis." >i>Journal of
 Financial & Quantitative Analysis>/i>38, no. 1: 135-157.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Grant, G.M. 1995.
 >i>Contemporary Strategy Analysis: Concepts, Techniques, Applications.>/i>
 Cambridge, MA: Blackwell.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT> Houston, J.; C. James; and D. Marcus.
 1997. "Capital Market Frictions and the Role of Internal Capital Markets
 in Banking." >i>Journal of Financial Economics>/i>46, no. 2:
 135-164.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Hyland, D.C., and J.D. Diltz. 2002. "Why Firms Diversify: An
 Empirical Examination." >i>Financial Management>/i>31, no. 1 (Spring):
 51-81.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>       
 <BIBTEXT> Keister, L. 1998. "Engineering Growth: Business Group Structure
 and Firm Performance in China's Transition Economy." >i>American Journal
 of Sociology>/i>10, no. 2: 404-440.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>11</BIBL>	 <BIBTEXT> Khanna, T., and K. Palepu. 1997. "Why
 Focused Strategies May Be Wrong for Emerging Markets." >i>Harvard Business
 Review>/i>77, no. 4 (July-August): 41-51.</BIBTEXT>	  </REF>      <REF>
	<BIBL>12</BIBL>        <BIBTEXT> Khanna, T., and K. Palepu. 1999a.
 "The Right Way to Restructure Conglomerates in Emerging Markets."
 >i>Harvard Business Review>/i>77, no. 4 (July-August): 125-134.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT> Khanna, T.,
 and K. Palepu. 1999b. "Policy Shocks, Market Intermediaries, and Corporate
 Strategy: Evidence from Chile and India." >i>Journal of Economics and
 Management Strategy>/i>2, no. 1: 271-310.</BIBTEXT>	  </REF>      <REF>
	<BIBL>14</BIBL>        <BIBTEXT> Khanna, T., and K. Palepu. 2000a.
 "Is Group Affiliation Profitable in Emerging Markets? An Analysis of
 Diversified Indian Business Groups." >i>Journal of Finance>/i>55, no. 2:
 867-891.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Khanna, T., and K. Palepu. 2000b. "The Future of Business Groups
 in Emerging Markets: Long Run Evidence from Chile." >i>Academy of
 Management Journal>/i>43, no. 3: 268-285.</BIBTEXT>	  </REF>      <REF>
	<BIBL>16</BIBL>        <BIBTEXT> Khanna, T., and J.W. Rivkin. 2001.
 "Estimating the Performance Effects of Business Groups in Emerging
 Markets." >i>Strategic Management Journal>/i>22, no. 1: 45-74.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>17</BIBL>	    <BIBTEXT> Lamont, O.A.
 1997. "Cash Flows and Investment: Evidence from Internal Capital Markets."
 >i>Journal of Finance>/i>52, no. 1: 83-109.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> Lang, L., and R.M. Stulz.
 1994. "Tobin's >i>Q>/i>, Corporate Diversification and Firm Performance."
 >i>Journal of Political Economy>/i>102, no. 6: 1248-1280.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT> La Porta, R.; F.
 Lopez-de-Silanes; and A. Shleifer. 1999. "Corporate Ownership Around the
 World." >i>Journal of Finance>/i>54, no. 2: 471-517.</BIBTEXT>      </REF>
      <REF>	   <BIBL>20</BIBL>	  <BIBTEXT> La Porta, R.; F.
 Lopez-de-Silanes; A. Shleifer; and R.W. Vishny. 1998. "Law and Finance."
 >i>Journal of Political Economy>/i>106, no. 6: 1113-1155.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Lemmon, M.L.,
 and K.V. Lins. 2003. "Ownership Structure, Corporate Governance, and Firm
 Value: Evidence from the East Asian Financial Crisis." >i>Journal of
 Finance>/i>58, no. 4: 1445-1468.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>22</BIBL>	<BIBTEXT> Lins, K., and H. Servaes. 1999.
 "International Evidence on the Value of Corporate Diversification."
 >i>Journal of Finance>/i>54, no. 6: 2215-2239.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>23</BIBL>	     <BIBTEXT> Lins, K., and H. Servaes.
 2002. "Is Corporate Diversification Beneficial in Emerging Markets?"
 >i>Financial Management>/i>31, no. 2 (Summer): 5-31.</BIBTEXT>      </REF>
      <REF>	   <BIBL>24</BIBL>	  <BIBTEXT> Maksimovic, V., and G.
 Phillips. 2002. "Do Conglomerate Firms Allocate Resources Inefficiently?
 Theory and Evidence." >i>Journal of Finance>/i>57, no. 2:
 721-767.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> Morck, R. 2004. "How to Eliminate Pyramidal Business
 GroupsâThe Double Taxation of Inter-Corporate Dividends and Other
 Incisive Uses of Tax Policy." Working Paper 10944, National Bureau of
 Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>26</BIBL>	<BIBTEXT> Myers, S.C., and N. Majluf. 1984.
 "Corporate Financing and Investment Decisions When Firms Have Information
 That Investors Do Not Have." >i>Journal of Financial Economics>/i>13, no.
 2: 187-221.</BIBTEXT>	    </REF>	<REF>	     <BIBL>27</BIBL>	   
 <BIBTEXT> Rajan, R.; H. Servaes; and L. Zingales. 2000. "The Cost of
 Diversity: The Diversification Discount and Inefficient Investment."
 >i>Journal of Finance>/i>55, no. 1: 35-60.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>28</BIBL>	     <BIBTEXT> Scharfstein D.S. 1998. "The
 Dark Side of Internal Capital Markets II: Evidence from Diversified
 Conglomerates." Working Paper, Sloan School of Management, Massachusetts
 Institute of Technology, Cambridge, MA.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>29</BIBL>	     <BIBTEXT> Servaes, H. 1996. "The Value of
 Diversification During the Conglomerate Merger Wave." >i>Journal of
 Finance>/i>51, no. 4: 1201-1225.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>30</BIBL>	<BIBTEXT> Shin, H., and R.M. Stulz. 1998. "Are
 Capital Markets Efficient?" >i>Quarterly Journal of Economics>/i>113, no.
 2: 531-553.</BIBTEXT>	    </REF>	<REF>	     <BIBL>31</BIBL>	   
 <BIBTEXT> Spulber, D.F. 1996. "Market Microstructure and Intermediation."
 >i>Journal of Economic Perspective>/i>10, no. 3: 135-152.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>32</BIBL>	 <BIBTEXT> Stein, J. 1997.
 "Internal Capital Markets and the Competition for Corporate Resources."
 >i>Journal of Finance>/i>52, no. 1: 111-134.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>33</BIBL>	     <BIBTEXT> Villalonga, B. 2004.
 "Diversification Discount or Premium? New Evidence from Business
 Information Tracking Series." >i>Journal of Finance>/i>59, no. 2:
 479-506.</BIBTEXT>	 </REF>      <REF>	  <BIBL>34</BIBL>	
 <BIBTEXT> Whited, T. 2001. "Is It Inefficient Investment That Causes the
 Diversification Discount?" >i>Journal of Finance>/i>56, no. 5:
 1667-1692.</BIBTEXT>	   </REF>      <REF>	    <BIBL>35</BIBL>	  
 <BIBTEXT> Yurtoglu, B.B. 2000. "Ownership, Control and Firm Performance of
 Turkish Listed Firms." >i>Empirica>/i>27, no. 2: 193-222.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>36</BIBL>	 <BIBTEXT> Yurtoglu, B.B.
 2006. "Firm-Level Profitability, Liquidity, and Investment in the Turkish
 Economy." In >i>The Real Economy, Corporate Governance, and Reform>/i> ed.
 S. Altug and A. Filiztekin, pp. 172-198. London: RoutledgeCurzon Studies
 on Middle Eastern Economics.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:63-81




Template-Type: ReDIF-Article 1.0
Author-Name: YINGQIU LIU 
Author-X-Name-First: YINGQIU 
Author-X-Name-Last: LIU 
Author-Name: HUNG-GAY FUNG 
Author-X-Name-First: HUNG-GAY 
Author-X-Name-Last: FUNG 
Author-Name: ZIJUN WANG 
Author-X-Name-First: ZIJUN 
Author-X-Name-Last: WANG 
Title:         Fiscal Deficit and Debt Conditions for China       
Abstract:
       This study examines the government fiscal deficit and debt rates in
 China. We utilize a theoretical framework to develop the government budget
 identity and the public deficit-debt models. This approach gives a
 theoretical basis to analyze the fiscal deficit and debt rates in China.
 Using a vector autoregressive analysis, the study empirically investigates
 the relationship between deficit and debt rates and sheds light on their
 future values for the Chinese economy.    
Journal: Emerging Markets Finance and Trade 
Pages: 56-74 
Issue: 5 
Volume: 41 
Year: 2005 
Month: 10 
Keywords: debt rate, deficit&#150debt identity, fiscal deficit, forecasting, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=6WBKKTDVJY8TPRK1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Buiter, W.; G. Corsetti;
 and N. Roubini. 1993. "Excessive Deficits: Sense and Nonsense in the
 Treaty of Maastricht." Economic Policy 8 (April): 56-100.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT>Council of the
 European Union. 1998. "The Broad Economic Guidelines." Working Paper,
 Brussels, July.</BIBTEXT>	</REF>	    <REF>	 <BIBL>3</BIBL>    
    <BIBTEXT>European Union. Office for Official Publications, ed. 1992.
 Treaty on the European Union. Brussels.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>4</BIBL>	    <BIBTEXT>Finance Yearbook of China. 1995.
 Beijing: Chinese Finance Journal Publisher.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT>Fung, H.G. 2002. "The
 Three-Way Economic Relationships Among U.S., Taiwan, and China."
 International Journal of Business 7, no. 3: 3-18.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>6</BIBL>	      <BIBTEXT>Huang, Y. 2002. "Is Meltdown
 of the Chinese Banks Inevitable?" China Economic Review 13, no. 4
 (December): 382-387.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>7</BIBL>        <BIBTEXT>Jia, K., and Q. Zhao. 2000. "The Real Scale
 and Its Appropriate Scale of Government Debt in China." Economic Research
 Journal 10: 3-20.</BIBTEXT>	  </REF>      <REF>	   <BIBL>8</BIBL>  
      <BIBTEXT>Kime, K.M. 1998. "Seigniorage, Domestic Debt, and Financial
 Reform in China." Contemporary Economic Policy 6 (January):
 12-21.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	     
 <BIBTEXT>Liu, Y. 1999. "The Period of Reduced Growth in the Chinese
 National Economy." Social Sciences in China 4: 87-101.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT>Lou, J. 2000. New
 China Fifty Year's Government Finance Statistics. Beijing: Economic
 Science Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>11</BIBL>    
    <BIBTEXT>Lutkepohl, H. 1993. Introduction to Multiple Time Series. New
 York: Springer.</BIBTEXT>	</REF>	    <REF>	 <BIBL>12</BIBL>   
     <BIBTEXT>Maddala, G.S., and I.M. Kim. 1998. Unit Roots, Cointegration,
 and Structural Change. Cambridge: Cambridge University Press.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>13</BIBL>	   <BIBTEXT>State
 Statistical Bureau. Various issues. Yearbook of Chinese Statistics.
 Beijing: China Statistics Publishing House.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT>Statistics Department of the
 People's Bank of China. 1997. China Finance Statistics 1952-1996. Beijing:
 Chinese Finance and Economy Publishing House.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT>------. Various issues.
 People's Bank of China Quarterly Statistical Bulletin.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>von Hagen, J.,
 and B. Eichengreen. 1996. "Federalism, Fiscal Restraints, and European
 Monetary Union." American Economic Review 86, no. 2 (May 6):
 134-138.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT>Xiang, H. Various issues. "Reports on the Implementation of
 Central and Local Budgets for 2000 and on the Draft Central and Local
 Budgets for 2001." Economic Daily, March 19, 2001; March 15, 2002; March
 20, 2003.</BIBTEXT>	  </REF>      <REF>	   <BIBL>18</BIBL>	 
 <BIBTEXT>Yu, Y. 2001. "A Review of China's Macroeconomic Development and
 Policies in the 1990s." China and World Economy 9, no. 1: 3-12.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT>Zhu, Z. ed.,
 2000. Yearbook of International Statistics 2000. Beijing: Chinese
 Statistics Publishing House.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:5:p:56-74




Template-Type: ReDIF-Article 1.0
Author-Name: Alexis  Derviz 
Author-X-Name-First: Alexis  
Author-X-Name-Last: Derviz 
Author-Name: JiÅÃ­  Podpiera 
Author-X-Name-First: JiÅÃ­  
Author-X-Name-Last: Podpiera 
Title: Predicting Bank CAMELS and S&P Ratings: The Case of the Czech Republic 
Abstract:
 This paper investigates the determinants of the movements in the
 capital-assets-management-earnings-liquidity-sensitivity to market risk
 (CAMELS) and the longterm Standard & Poors (S&P) bank ratings in the Czech
 Republic during the periods when the three largest banks, representing
 approximately 60 percent of the Czech banking sector's total assets, were
 first privatized (1998-2001) and then had sufficient time to operate under
 new owners (2002-2005). The same list of explanatory variables employed by
 the Czech National Bank's banking sector regulators, corresponding to the
 inputs of the CAMELS rating, are examined for both ratings to select their
 significant predictors. We employ an ordered-response logit model to
 analyze the long-run S&P rating and a standard panel data framework for
 the CAMELS rating. We find significant explanatory power for capital
 adequacy, funding spread, the ratio of total loans to total assets, the
 value-at-risk for total assets, and leverage.
Journal: Emerging Markets Finance and Trade 
Pages: 117-130 
Issue: 1 
Volume: 44 
Year: 2008 
Month: 1 
Keywords: bank rating, CAMELS, ordered logit, panel data, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=E80UN7M44WU3K2J1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Back, B.; T. Laitinen;
 K. Sere; and M. van Wezel. 1996. "Choosing Bankruptcy Predictors Using
 Discriminant Analysis, Logit Analysis, and Genetic Algorithms." Turku
 Centre for Computer Science, Technical Report No. 40, Turku,
 Finland.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Cole, R. A., and J. W. Gunther. 1998. "Predicting Bank Failures:
 A Comparison of On- and Off-Site Monitoring Systems." >i>Journal of
 Financial Services Research>/i> 13, no. 2: 103-117.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Czech National Bank.
 2001. >i>Banking Supervision Report.>/i> Prague: Czech National Bank,
 November.</BIBTEXT>	  </REF>      <REF>	   <BIBL>4</BIBL>	
 <BIBTEXT> Derviz, A., and N. KadlÄÃ¡kovÃ¡. 2001. "Methodological Problems
 of Quantitative Credit Risk Modeling in the Czech Economy." Czech National
 Bank Working Paper Series no. 39, Prague.</BIBTEXT>	  </REF>      <REF>
	<BIBL>5</BIBL>	      <BIBTEXT> Estrella, A.; S. Park; and S.
 Perisitiani. 2001. >i>Economic Policy Review>/i> 6, no. 2:
 33-52.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT> Gilbert, R. A. 1993. "Implications of Annual Examinations for
 the Bank Insurance Fund." >i>Federal Reserve Bank of St. Louis Review>/i>
 75, no. 1: 35-52.</BIBTEXT>	  </REF>      <REF>	   <BIBL>7</BIBL>  
      <BIBTEXT> Gilbert, R. A.; A. P. Meyer; and M. D. Vaughan. 2000. "The
 Role of a CAMEL Downgrade Model in Bank Surveillance." Federal Reserve
 Bank of St. Louis Working Paper Series 2000-021A, St. Louis.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>8</BIBL>	 <BIBTEXT> Gropp, R.; J.
 Vesala; and G. Vulpes. 2006. "Equity and Bond Market Signals as Leading
 Indicators of Bank Fragility." >i>Journal of Money, Credit and Banking>/i>
 38, no. 2: 399-428.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>
	<BIBTEXT> Hanousek, J., and G. Roland. 2001. "Banking Passivity and
 Regulatory Failure in Emerging Markets: Theory and Evidence from the Czech
 Republic." Center for Economic Research and Graduate Education (CERGE)
 Working Papers Series 192, Prague.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>10</BIBL>	<BIBTEXT> Henebry, K. L. 1997. "A Test of the
 Temporal Stability of Proportional Hazard Models for Predicting Bank
 Failure." >i>Journal of Financial and Strategic Decisions>/i> 10, no. 3:
 1-11.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	     
 <BIBTEXT> KMV Corporation. 2003. >i>Modeling Risk.>/i> San Francisco: KMV
 Corporation.</BIBTEXT>      </REF>	 <REF>	      <BIBL>12</BIBL>	   
  <BIBTEXT> MÃ¤nnasoo, K., and D. Mayes. 2005. "Investigating the Early
 Signals of Banking Sector Vulnerabilities in Central and East European
 Emerging Markets." Bank of Estonia Working Paper no. 8, Tallinn,
 August.</BIBTEXT>	</REF>	    <REF>	 <BIBL>13</BIBL>       
 <BIBTEXT> O'Keefe, J.; V. Olin; and C. Richardson. 2003. "Bank
 Loan-Underwriting Practices: Can Examiners' Risk Assessments Contribute to
 Early-Warning Systems?" Federal Deposit Insurance Corporation Working
 Paper 2003-06 (November), Washington, DC.</BIBTEXT>	  </REF>      <REF>
	<BIBL>14</BIBL>        <BIBTEXT> Rojas-SuÃ¡rez, L. 2001. "Rating
 Banks in Emerging Markets: What Credit Rating Agencies Should Learn from
 Financial Indicators." Institute for International Economics Working Paper
 01-6 (May) Washington, DC.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>15</BIBL>	<BIBTEXT> Shumway, T. 2001. "Forecasting Bankruptcy
 More Accurately: A Simple Hazard Model." >i>Journal of Business>/i> 74,
 no. 1: 101-124.</BIBTEXT>	</REF>	    <REF>	 <BIBL>16</BIBL>   
     <BIBTEXT> Standard & Poors. 2007. "Standard & Poors Ratings
 Definitions." New York (available at >a target="_blank"
 href='http://www2.standardandpoors.com/portal/site/sp/en/us/page.article/2
 ,1,4,0,1148449204344.html'>www2.standardandpoors.com/portal/site/sp/en/us/
 page.article/2,1,4,0,1148449204344.html>/a></BIBTEXT>	    </REF>     
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Wooldridge, J. M. 2002.
 >i>Econometrics Analysis of Cross Section and Panel Data.>/i> Cambridge,
 MA: MIT Press.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:44:y:2008:i:1:p:117-130




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan  Yilmazkuday 
Author-X-Name-First: Hakan  
Author-X-Name-Last: Yilmazkuday 
Title: Structural Breaks in Monetary Policy Rules: Evidence from Transition Countries 
Abstract:
 This paper investigates the relation between the important announced
 turning points in the monetary policies and the estimated structural break
 dates in the Taylor rules of three transition countriesâthe Czech
 Republic, Hungary, and Poland. Although the important announced turning
 points starting in the late 1990s, especially the introduction of an
 inflation-targeting regime, can be observed in the estimated Taylor rules
 of the Czech Republic and Poland with some implied lags due to the
 monetary transmission mechanism, the same conclusion cannot be reached for
 Hungary. Several robustness analyses are in support of these results.
Journal: Emerging Markets Finance and Trade 
Pages: 87-97 
Issue: 6 
Volume: 44 
Year: 2008 
Month: 11 
Keywords: Czech Republic, Hungary, monetary policy, Poland, structural breaks, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=0808N9165UN33815 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adam, C.; D. Cobham;
 and E. Girardin. 2005. "Monetary Frameworks and Institutional Constraints:
 UK Monetary Policy Reaction Functions, 1985-2003." >i>Oxford Bulletin of
 Economics and Statistics>/i>>b>67>/b>, no. 4: 497-516.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Bai, J., and P.
 Perron. 1998. "Estimating and Testing Linear Models with Multiple
 Structural Changes." >i>Econometrica>/i>>b>66>/b>, no. 1: 47-78.</BIBTEXT>
      </REF>	  <REF>        <BIBL>3</BIBL>	     <BIBTEXT> Bai, J., and
 P. Perron. 2003. "Computation and Analysis of Multiple Structural Change
 Models." >i>Journal of Applied Econometrics>/i>>b>18>/b>, no. 1:
 1-22.</BIBTEXT>      </REF>	  <REF>        <BIBL>4</BIBL>	    
 <BIBTEXT> Bai, J., and P. Perron. 2004. "Multiple Structural Change
 Models: A Simulation Analysis." In >i>Econometric Essays>/i>, ed. D.
 Corbea, S. Durlauf, and B. E. Hansen, pp. 212-237. Cambridge: Cambridge
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>5</BIBL>  
      <BIBTEXT> Clarida, R.; J. Gali; and M. Gertler. 2000. "Monetary
 Policy Rules and Macroeconomic Stability: Evidence and Some Theory."
 >i>Quarterly Journal of Economics>/i>>b>115>/b>, no. 1: 147-180.</BIBTEXT>
      </REF>	  <REF>        <BIBL>6</BIBL>	     <BIBTEXT> Jonas, J.,
 and F. S. Mishkin. 2005. "Inflation Targeting in Transition Countries:
 Experience and Prospects." In >i>The Inflation-Targeting Debate>/i>, ed.
 B. S. Bernanke and M. Woodford, pp. 353-413. Chicago: University of
 Chicago Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	   
   <BIBTEXT> Judd, J. P., and G. D. Rudebusch. 1998. "Taylor's Rule and the
 Fed: 1970-1997." >i>Federal Reserve Board of San Francisco Economic
 Review>/i>>b>3>/b>: 3-16.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT> Kokoszczynski, R. 2002. "Poland Before the
 Euro." >i>Journal of Public Policy>/i>>b>22>/b>, no. 2: 199-215.</BIBTEXT>
      </REF>	  <REF>        <BIBL>9</BIBL>	     <BIBTEXT> Liu, J.; S.
 Wu; and J. V. Zidek. 1997. "On Segmented Multivariate Regressions."
 >i>Statica Sinica>/i>>b>7>/b>: 497-525.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>10</BIBL>	     <BIBTEXT> Maria-Dolores, R. 2005. "Monetary
 Policy Rules in Accession Countries to EU: Is the Taylor Rule a Pattern?"
 >i>Economic Bulletin>/i>>b>5>/b>, no. 5: 1-16.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Orlowski, L. T. 2005.
 "Monetary Convergence of the EU Accession Countries to the Eurozone: A
 Theoretical Framework and Policy Implications." >i>Journal of Banking and
 Finance>/i>>b>29>/b>, no. 1: 203-225.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>12</BIBL>	   <BIBTEXT> Orphanides, A. 2007. "Taylor Rules."
 In >i>The New Palgrave: A Dictionary of Economics>/i>, 2d ed., ed. S. N.
 Durlauf and L. E. Blume. London: Palgrave Macmillan.</BIBTEXT>      </REF>
      <REF>	   <BIBL>13</BIBL>	  <BIBTEXT> Paez-Farrell, J. 2007.
 "Understanding Monetary Policy in Central European Countries Using
 Taylor-Type Rules: The Case of the Visegrad Four." >i>Economics
 Bulletin>/i>>b>5>/b>, no. 3: 1-11.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT> Roger, S., and M. Stone. 2005. "On
 Target? The International Experience with Achieving Inflation Targets."
 Working Paper no. WP/05/163, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>15</BIBL>	   
 <BIBTEXT> Taylor, J. 1993. "Discretion Versus Policy Rules in Practice."
 >i>Carnegie-Rochester Conference Series on Public Policy>/i>>b>39>/b>, no.
 1: 195-214.</BIBTEXT>	    </REF>	<REF>	     <BIBL>16</BIBL>	   
 <BIBTEXT> Yao, Y.-C. 1988. "Estimating the Number of Change-Points via
 Schwarz Criterion." >i>Statistics and Probability Letters>/i>>b>6>/b>, no.
 3: 181-189.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:6:p:87-97




Template-Type: ReDIF-Article 1.0
Author-Name: Aleksander  Rutkowski 
Author-X-Name-First: Aleksander  
Author-X-Name-Last: Rutkowski 
Title: Inward FDI and Financial Constraints in Central and East European Countries 
Abstract:
 This study examines whether domestically owned firms in Central and
 Eastern European countries (CEECs) confronted higher financial constraints
 in their investments than did foreign-owned enterprises, and whether the
 domestic enterprises' financial constraints were caused by incoming
 foreign direct investment (FDI). In theory, foreign investment may be
 needed to bring in capital only initially; the subsequent investment can
 be financed locally. On the other hand, foreign-owned companies may be
 more attractive borrowers, crowding out domestic firms from imperfect
 host-country capital markets. Both hypotheses, however, are rejected, as
 the results are not consistent across different dependent variables and
 verification methods. There is some evidence that FDI reduced foreign
 subsidiaries' constraints without increasing the constraints suffered by
 the domestic enterprises. Tests are performed with regressions based on
 two alternative firm-level models, a direct one using perception-based
 assessment of the constraints, and an indirect one with financial
 indicators.
Journal: Emerging Markets Finance and Trade 
Pages: 28-60 
Issue: 5 
Volume: 42 
Year: 2006 
Month: 10 
Keywords: Business Environment and Enterprise Performance Survey, financial constraints, foreign direct investment, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B4M205404G23161K 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Acemoglu, D. 2001.
 "Credit Market Imperfections and Persistent Unemployment." >i>European
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 /econo/beeps02.dta>/a></BIBTEXT>      </REF>	   <REF>       
 <BIBL>5</BIBL>        <BIBTEXT> BEEPS II Gateway. 2005. "The BEEPS II
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 2004a. "Credit Constraints and Profitability: Evidence from a Transition
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 Transition." >i>Economics of Transition>/i> 12, no. 4: 721-746.</BIBTEXT> 
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 </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:5:p:28-60




Template-Type: ReDIF-Article 1.0
Author-Name: OSMAN TUNCAY AYDAS 
Author-X-Name-First: OSMAN TUNCAY 
Author-X-Name-Last: AYDAS 
Author-Name: KIVILCIM METIN-OZCAN 
Author-X-Name-First: KIVILCIM 
Author-X-Name-Last: METIN-OZCAN 
Author-Name: BILIN NEYAPTI 
Author-X-Name-First: BILIN 
Author-X-Name-Last: NEYAPTI 
Title:         Determinants of Workers' Remittances : The Case of Turkey       
Abstract:
       Workers' remittance flows to Turkey have dramatically increased
 since the 1960s, constituting a significant proportion of imports. The
 empirical evidence in this paper indicates that black market premium,
 interest rate differential, inflation rate, growth, home and host country
 income levels, and periods of military administration in Turkey have
 significantly affected these flows. Among them, the negatively significant
 effects of the black market premium, inflation, and a dummy for periods of
 military administration point at the importance of sound exchange rate
 policies and economic and political stability in attracting remittance
 flows. In addition, both investment and consumption-smoothing motives are
 observed, though the former of which appears more prevalent after the
 1980s.    
Journal: Emerging Markets Finance and Trade 
Pages: 53-69 
Issue: 3 
Volume: 41 
Year: 2005 
Month: 5 
Keywords: remittances, Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=ARARTQBD1PKETNB4 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abadan-Unat, N. 1976.
 Turkish Workers in Europe 1960-1975: A Socio-Economic Reappraisal. Leiden:
 E.J. Brill.</BIBTEXT>	    </REF>	<REF>	     <BIBL>2</BIBL>	  
 <BIBTEXT>Adler, S. 1981. "A Turkish Conundrum: Emigration, Politics and
 Development, 1961- 1980." World Employment Programme Research Working
 Paper, International Labour Organisation, Geneva.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>3</BIBL>	      <BIBTEXT>Aydas, O.T. 2002.
 "Determinants of Workers Remittances: The Case of Turkey." Master's
 thesis, Bilkent University, Ankara.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>4</BIBL>	<BIBTEXT>Cetin, B. 2004. "Kredi Mektuplu Doviz
 Tevdiat Hesabi Sistemi ve Yeniden Yapilandirilmasi" [The System of Foreign
 Currency Accounts with Credit Letter and Its Reform]. Central Bank of the
 Turkish Republic, Ankara.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>5</BIBL>        <BIBTEXT>Chandavarkar, A.G. 1980. "Use of Migrants
 Remittances in Labor-Exporting Countries." Finance and Development 17
 (June): 36-39.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	   
   <BIBTEXT>Djajic, S. 1989. "Migrants in a Guest-Worker System." Journal
 of Development Economics 31 (August): 327-339.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT>Djajic, S., and R. Milbourne.
 1988. "A General Equilibrium Model of Guest-Worker Migration: The Source
 Country Perspective." Journal of International Economics 25, no. 11
 (November): 335-351.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>8</BIBL>        <BIBTEXT>Elbadawi, I.A., and R. Rocha. 1992.
 "Determinants of Expatriate Workers' Remittances in North Africa and
 Europe." World Bank Policy Research Working Paper 1038, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>	  
 <BIBTEXT>El-Sakka, M.I.T., and Robert McNabb. 1999. "The Macroeconomic
 Determinants of Emigrant Remittances." World Development 27, no. 8:
 1493-1502.</BIBTEXT>	   </REF>      <REF>	    <BIBL>10</BIBL>	  
 <BIBTEXT>Etzinger, H. 1978. "Return Migration from West European to
 Mediterranean Countries." International Labor Office, Working Paper 23,
 Geneva.</BIBTEXT>	</REF>	    <REF>	 <BIBL>11</BIBL>       
 <BIBTEXT>Glytsos, N. 1988. "Remittances in Temporary Migration: A
 Theoretical Mode and Its Testing with the Greek-German Experience."
 Weltwirtschafliches Archiv 124, no. 3: 524-548.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT>Gokdere, A.Y. 1978. "Yabanci
 Ulkerlere Isgucu Akimi ve Turk Ekonomisi Uzerine Etkileri" [Labor
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Handle: RePEc:mes:emfitr:v:41:y:2005:i:3:p:53-69




Template-Type: ReDIF-Article 1.0
Author-Name: Sophie H. Tsou 
Author-X-Name-First: Sophie H. 
Author-X-Name-Last: Tsou 
Author-Name: Whitney H. Wang 
Author-X-Name-First: Whitney H. 
Author-X-Name-Last: Wang 
Title: Public Satisfaction and the Capability, Integrity, and Accountability of Financial Regulators 
Abstract:
 Strengthening the accountability of government officials to achieve public
 satisfaction in democratic countries has been a crucial issue. We study
 the issue empirically using the concept of national governance based on a
 case study of the key Taiwanese financial regulator, namely, the Financial
 Supervisory Commission (FSC). This paper integrates theories of
 resource-based views, trust, and corporate governance to motivate the
 empirical analysis. The findings show that accountability is positively
 related to public satisfaction. Capability and integrity have a positive
 relation to the accountability of the regulator, suggesting that one of
 the most effective ways to get public satisfaction is to recruit staff
 with capability and integrity.
Journal: Emerging Markets Finance and Trade 
Pages: 99-108 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: accountability, capability, integrity, national governance, public satisfaction, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=7056048731760255 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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	<BIBTEXT> Barney, J. B., and M. H. Hansen. 1994. "Trustworthiness
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 (available at >a target="_blank"
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 d/44/11/2408954.pdf)>/a></BIBTEXT>	 </REF>      <REF>	 
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	<BIBTEXT> Organization for Economic Cooperation and Development
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 Corporation." >i>Harvard Business Review>/i> 68 (May-June):
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 <BIBTEXT> Rehbein, K. 2006. "Power Plays: Can Power Dynamics Explain
 Changes in Corporate Governance Practices?" >i>Academy of Management
 Perspectives>/i> 20, no. 2: 74-77.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>26</BIBL>	<BIBTEXT> Richter, F.-J., and P. C. M. Mar. Mar.
 2003. >i>Asia's New Crisis: Renewal Through Total Ethical Management.>/i>
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 "Building Results-Based Management Capacity in Nonprofit Organizations."
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 <BIBTEXT> Rumelt, R. 1974. >i>Strategy Structure and Economic
 Performance.>/i> Cambridge: Harvard University Press.</BIBTEXT>     
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 Competency and Government Competitiveness: A Strategic Human Resources
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 <BIBTEXT> Sitkin, S. B., and N. L. Roth. 1993. "The Road to Hell: The
 Dynamics of Distrust in an Era of Quality." In >i>Trust in Organizations:
 Frontiers of Theory and Research>/i>, ed. R. M. Kramer and T. R. Tyler,
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    <BIBL>32</BIBL>	   <BIBTEXT> Witherell, W. 2002. "Corporate
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 Commissions (IOSCO), Panel 5, Istanbul, May 24.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:99-108




Template-Type: ReDIF-Article 1.0
Author-Name: KAMIL SERTOGLU 
Author-X-Name-First: KAMIL 
Author-X-Name-Last: SERTOGLU 
Author-Name: ILHAN OZTURK 
Author-X-Name-First: ILHAN 
Author-X-Name-Last: OZTURK 
Title:         Application of Cyprus to the European Union and the Cyprus Problem       
Abstract:
       The Cyprus problem became a subject that not only threatens the
 acceptance of Cyprus to the European Union but the whole enlargement
 process as well. Greece strongly supports the acceptance of Cyprus to the
 Union even without a solution to the Cyprus problem. On the other hand,
 other EU members and Turkey firmly reject this proposal. The study
 evaluates the application of South Cyprus to the European Union and the
 reasons for application. Although there are various possible economic
 gains for South Cyprus from EU membership, political gains go far beyond
 them and acceptance of Cyprus to the Union before a solution is reached
 for the Cyprus problem would bring many political benefits for South
 Cyprus in respect to its relations with Turkey.    
Journal: Emerging Markets Finance and Trade 
Pages: 54-70 
Issue: 6 
Volume: 39 
Year: 2003 
Month: 11 
Keywords: Cyprus, Cyprus problem, EU enlargement, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=VR7K6FKXHPCRQCF0 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Agenda 2000. 2000. "For
 a Stronger and Wider Union." DOC/97/6, Office for Official Publications of
 the European Union, Luxembourg.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>2</BIBL>        <BIBTEXT>Anouil, G., and C. Karides, ed. 1996. The
 European Union and Cyprus. Nicosia: Delegation of the European Community
 to Cyprus.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL>	 
 <BIBTEXT>------. 1999. The European Union and Cyprus, 2d ed. Nicosia:
 Delegation of the European Community to Cyprus.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT>Ayers, R. 1996. "European
 Integration: The Case of Cyprus." Cyprus Review 8, no. 1: 39-62.</BIBTEXT>
      </REF>	  <REF>        <BIBL>5</BIBL>	     <BIBTEXT>Bicak, H.A.
 1996. "Recent Developments in Cyprus-EU Relations." In Proceedings of the
 First International Congress on Cyprus Studies, ed. E. Dogramaci, pp.
 245-261. Famagusta, North Cyprus: EMU Press.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT>Confederation Proposal. 1998.
 "President Denktash Proposes Confederation to the Greek Cypriots." Turkish
 Cypriot Public and Information Office, Nicosia (available at
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    <BIBL>7</BIBL>	  <BIBTEXT>"Cyprus-EU Relations." 2000. European
 Delegation for Cyprus, Nicosia (available at
 www.cyprus-eu.org.cy/en/brief-history.htm).</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT>Denktas, R.R. 1999. "The Crux
 of the Cyprus Problem." Perceptions 4, no. 3 (September- November):
 5-22.</BIBTEXT>      </REF>	  <REF>        <BIBL>9</BIBL>	    
 <BIBTEXT>Egeli, S. 1991. 1960 Kébrés Cumhuriyeti Nasél Yékéldé [How Did
 the 1960 Republic of Cyprus Collapse?]. Kas*tar, Istanbul: Tarihi
 Aras*térmalar Dizisi.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>10</BIBL>	<BIBTEXT>El-Agraa, A. 2001. The European Union:
 Economics & Policies, 6th ed. London: Pearson Education-Prentice
 Hall.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	     
 <BIBTEXT>Eminer, C. 1998. "Rumlar Neden AB'ye Girmek &Oslash;stiyor?" [Why
 Do the Greek Cypriots Want EU Membership?]. Egemenlik AB ve Kébrés,
 Dés*is*leri ve Savunma Bakanlég&not;é, Tanétma Dairesi, Nicosia, North
 Cyprus.</BIBTEXT>	</REF>	    <REF>	 <BIBL>12</BIBL>       
 <BIBTEXT>Ertegun, N.M. 1984. The Cyprus Dispute, 2d ed. Nicosia: K. Rustem
 & Brothers.</BIBTEXT>	    </REF>	<REF>	     <BIBL>13</BIBL>	   
 <BIBTEXT>------. 1996. "The Recent History of the Cyprus Question Since
 the Independence in 1960." In First International Congress on Cypriot
 Studies, ed. E. Dogramaci, pp. 51- 71. Famagusta, North Cyprus: Eastern
 Mediterranean University Press.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>14</BIBL>	<BIBTEXT>Europa. 1999. "The Association Agreement."
 Luxembourg (available at www.europa.eu.int/
 comm/enlargement/cyprus/rep_10_99/ab.htm).</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT>------. 2000. "Enlargement:
 Relations with Cyprus." Luxembourg (available at
 www.europa.eu.int/comm/enlargement/cyprus/index.htm).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>European
 Commission. 1993. "The Challenge of Enlargement: Commission Opinion on the
 Application by the Republic of Cyprus for Membership." Bulletin of the
 European Communities, Supplement 5/93, Luxembourg.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>17</BIBL>	<BIBTEXT>------. 1998. "Regular
 Report from the European Commission on Progress Towards Accession of
 Cyprus." Luxembourg (available at www.europea.eu.int/comm/enlargement/
 cyprus/rep-11-98/index.htm).</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>18</BIBL>	<BIBTEXT>------. 1999. "Regular Report from the
 Commission on Progress Towards Accession by Each of the Candidate
 Countries." Luxembourg (available at www.europa.eu.int/comm/
 enlargement/report_10_99/).</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>19</BIBL>	<BIBTEXT>Evran, M. 1998. "Türkiye--Avrupa
 ilis*kileri çerçevesinde Kébrés'én AB'ye üyelig&not;i" [Membership of
 Cyprus to the EU Within the Context of Turkey-EU Relations]. Egemenlik AB
 ve Kébrés, Dés*is*leri ve savunma Bakanlég&not;é, Tanétma Dairesi,
 Nicosia, Cyprus.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>  
      <BIBTEXT>Forysinski, W.; H. Béçak; and T. Kotodziej. 1999. "EU
 Membership of Cyprus: Prospects for the First Group of Enlargement." In
 Second International Congress for Cyprus Studies, vol. 1B, ed. E.
 Dogramaci, pp. 420-433. Famagusta, North Cyprus: EMU Press.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>Ismail, S. 1992.
 Kébrés Cumhuriyeti'nin Dog&not;us*u-&Ccedil;öküs*ü ve Unutulan Yéllar
 (1964-1974) [Evolution and Collapse of the Republic of Cyprus and
 Forgotten Years (1964-1974)]. KKTC Milli Eg&not;itim Ve Kültür
 Bakanég&not;é, Kültür Dizisi, Kitap.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>22</BIBL>	  <BIBTEXT>Joseph, J.S. 1990. "International
 Dimensions of the Cyprus Problem." Cyprus Review 2, no. 2 (fall):
 15-39.</BIBTEXT>      </REF>	   <REF>	<BIBL>23</BIBL>       
 <BIBTEXT>Kibris. 1997. "No Membership Without Solution." March 13, pp.
 1-3.</BIBTEXT>      </REF>	 <REF>	      <BIBL>24</BIBL>	    
 <BIBTEXT>Manisali, E. 1998. "KKTC'nin Geleceg&not;i, Güney Kébrés Rum
 Yönetiminin AB üyelig&not;i ve Federasyon Konusu" [Future of TRNC and
 Application of South Cyprus to the EU]. Egemenlik AB ve Kébrés,
 Dés*is*leri ve Savunma Bakanlég&not;é, Tanétma Dairesi, Nicosia, North
 Cyprus.</BIBTEXT>	</REF>	    <REF>	 <BIBL>25</BIBL>       
 <BIBTEXT>Milliyet. 1997. "Impossible for Cyprus to Be a Member with the
 Status Quo." September 9, pp. 3-5.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>26</BIBL>	<BIBTEXT>Ministry of Finance. 1998. "Cyprus in
 Figures." Nicosia, South Cyprus.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>27</BIBL>	<BIBTEXT>Nugent, N. 2000. "EU Enlargement and the
 Cyprus Problem." Journal of Common Market Studies 38, no. 1:
 131-150.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT>Olgun, A. 1991. "Kébrés Gerçeg&not;i" [The Truth of Cyprus].
 Demirciog&not;lu Matbaacélék, Ankara.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>29</BIBL>	   <BIBTEXT>"Ottoman Rule." 1991. In Cyprus: A
 Country Study. Library of Congress, Washington, DC (available at
 lcweb2.loc.gov/cgibin/query/r?frd/cstdy:@field(DOCID+cy0017)).</BIBTEXT>  
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 1999. "The Role of EU: The Cause of Permanent Division of Cyprus of the
 Solution." University of Toronto, Canada.</BIBTEXT>	  </REF>      <REF>
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 <BIBTEXT>Stephens, R. 1966. Cyprus: A Place of Arms. London: Pall Mall
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 1984. "The EC-Cyprus Association Agreement: Ten Years of a Troubled
 Relationship, 1973-1983." Journal of Common Market Studies, 22, no. 4:
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 44, no. 111: A12.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:6:p:54-70




Template-Type: ReDIF-Article 1.0
Author-Name: JIAN YANG 
Author-X-Name-First: JIAN 
Author-X-Name-Last: YANG 
Author-Name: MOOSA M. KHAN 
Author-X-Name-First: MOOSA M. 
Author-X-Name-Last: KHAN 
Author-Name: LUCILLE POINTER 
Author-X-Name-First: LUCILLE 
Author-X-Name-Last: POINTER 
Title:         Increasing Integration Between the United States and Other International Stock Markets? : A Recursive Cointegration Analysis       
Abstract:
       This paper examines whether long-run integration between the United
 States and many international stock markets has strengthened over time,
 with special attention paid to the impact of the abolition of capital
 control in these markets and the 1987 international stock market crash.
 The results show that during most of the thirty-two-year sample period
 (January 1970-December 2001), there exists no long-run relationship
 between most of these markets and the United States. However, there is
 evidence of recent increasing integration between many smaller markets and
 the United States while no such pattern emerges for larger markets
 including Japan, the United Kingdom, and Germany, which suggests long-run
 benefits to U.S. investors of diversifying into these larger markets.
 Moreover, there is no marked change in the degree of integration between
 any of these stock markets and the United States that can be apparently
 associated with the abolition of capital control or the 1987 international
 stock market crash.	
Journal: Emerging Markets Finance and Trade 
Pages: 39-53 
Issue: 6 
Volume: 39 
Year: 2003 
Month: 11 
Keywords: capital control, international stock markets, 1987 crash, recursive cointegration analysis, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=WBEUE57D37PY5BYU 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Arshanapalli, B., and J.
 Doukas. 1993. "International Stock Market Linkages: Evidence from the Pre-
 and Post-October 1987 Period." Journal of Banking and Finance 17, no. 1:
 193-208.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT>Bekaert, G., and C.R. Harvey. 2000. "Foreign Speculators and
 Emerging Equity Markets." Journal of Finance 55, no. 2: 565-613.</BIBTEXT>
      </REF>	  <REF>        <BIBL>3</BIBL>	     <BIBTEXT>Bessler,
 D.A., and J. Yang. 2003. "Structure of Interdependence in International
 Stock Markets." Journal of International Money and Finance 22, no. 2:
 261-287.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>Bookstaber, R. 1997. "Global Risk Management: Are We Missing the
 Point?" Journal of Portfolio Management 23, no. 3: 209-214.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT>Chan, K.C.; B.E.
 Gup; and M. Pan. 1997. "International Stock Market Efficiency and
 Integration: A Study of Eighteen Nations." Journal of Business Finance and
 Accounting 24, no. 6: 803-813.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>6</BIBL>        <BIBTEXT>Chay, J., and V. Eleswarapu. 2001.
 "Deregulation and Capital Market Integration: A Study of the New Zealand
 Stock Market." Pacific-Basin Finance Journal 9, no. 1: 29-46.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>7</BIBL>	  <BIBTEXT>Chelley-Steeley,
 P.; J. Steeley; and E. Pentecost. 1998. "Exchange Controls and European
 Stock Market Integration." Applied Economics 30, no. 2: 263-267.</BIBTEXT>
      </REF>	  <REF>        <BIBL>8</BIBL>	     <BIBTEXT>Elyasiani,
 E., and A.E. Kocagil. 2001. "Interdependence and Dynamics in Currency
 Futures Markets: A Multivariate Analysis of Intraday Data." Journal of
 Banking and Finance 25, no. 6: 1161-1186.</BIBTEXT>	  </REF>      <REF>
	<BIBL>9</BIBL>	      <BIBTEXT>Francis, B., and L. Leachman. 1998.
 "Superexogeneity and the Dynamic Linkages Among International Equity
 Markets." Journal of International Money and Finance 17, no. 3:
 475-492.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT>Gual, J. 1999. "Deregulation, Integration, and Market Structure
 in European Banking." Journal of Japanese and International Economies 13,
 no. 4: 372-396.</BIBTEXT>	</REF>	    <REF>	 <BIBL>11</BIBL>   
     <BIBTEXT>Gultekin, M.; N. Gultekin; and A. Penati. 1989. "Capital
 Controls and International Capital Market Segmentation: The Evidence from
 the Japanese and American Stock Markets." Journal of Finance 44, no. 4:
 849-869.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT>Hansen, H., and S. Johansen. 1993. "Recursive Estimation in
 Cointegrated VAR Models." Discussion Paper, Institute of Mathematical
 Statistics, University of Copenhagen.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>13</BIBL>	   <BIBTEXT>------. 1999. "Some Tests for Parameter
 Constancy in Cointegrated VAR Models." Econometrics Journal 2, no. 2:
 306-333.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT>Johansen, S. 1991. "Estimation and Hypothesis Testing of
 Cointegration Vectors in Gaussian Vector Autoregressive Models."
 Econometrica 59, no. 6: 1551-1580.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>15</BIBL>	<BIBTEXT>Jorion, P., and E. Schwartz. 1986.
 "Integration vs. Segmentation in the Canadian Stock Market." Journal of
 Finance 41, no. 3: 603-614.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>16</BIBL>	<BIBTEXT>Kamin, S. 1999. "The Current International
 Financial Crisis: How Much Is New?" Journal of International Money and
 Finance 18, no. 4: 501-514.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>17</BIBL>	<BIBTEXT>Kasa, K. 1992. "Common Stochastic Trends
 in International Stock Markets." Journal of Monetary Economics 29, no. 1:
 95-124.</BIBTEXT>	</REF>	    <REF>	 <BIBL>18</BIBL>       
 <BIBTEXT>Masih, A.M.M., and R. Masih. 1997. "Dynamic Linkages and the
 Propagation Mechanism Driving Major International Stock Markets: An
 Analysis of the Pre-and Post-Crash Eras." Quarterly Review of Economics
 and Finance 37, no. 4: 859-885.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>19</BIBL>	<BIBTEXT>Meric, I., and G. Meric. 1989. "Potential
 Gains from International Portfolio Diversification and Inter-Temporal
 Stability and Seasonality in International Stock Market Relationships."
 Journal of Banking and Finance 13, nos. 4-5: 627-640.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT>Metin, K., and G.
 Muradoglu. 2001. "Forecasting Integrated Stock Markets Using International
 Co-Movements." Russian and East European Finance and Trade 37, no. 5
 (September-October): 45-63.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>21</BIBL>	<BIBTEXT>Mittoo, U. 1992. "Additional Evidence on
 Integration in the Canadian Stock Market." Journal of Finance 47, no. 5:
 2035-2054.</BIBTEXT>	   </REF>      <REF>	    <BIBL>22</BIBL>	  
 <BIBTEXT>Ozatay, F., and G. Sak. 2002. "Financial Liberalization in
 Turkey--Why Was the Impact on Growth Limited?" Emerging Markets Finance
 and Trade 38, no. 5: 6-22.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>23</BIBL>	<BIBTEXT>Ragunathan, V. 1999. "Financial
 Deregulation and Integration: An Australian Perspective." Journal of
 Economics and Business 51, no. 6: 505-514.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>24</BIBL>	     <BIBTEXT>Taylor, M., and I. Tonks.
 1989. "The Internationalization of Stock Markets and the Abolition of U.K.
 Exchange Control." Review of Economics and Statistics 71, no. 2: 332-
 336.</BIBTEXT>      </REF>	 <REF>	      <BIBL>25</BIBL>	    
 <BIBTEXT>Yang, J.; J. Kolari; and I. Min. 2003. "Stock Market Integration
 and Financial Crises: The Case of Asia." Applied Financial Economics 13,
 no. 7: 477-486.</BIBTEXT>	</REF>	    <REF>	 <BIBL>26</BIBL>   
     <BIBTEXT>Yang, J.; I. Min; and Q. Li. 2003. "European Stock Market
 Integration: Does EMU Matter?" Journal of Business Finance and Accounting
 30, no. 9-10: 1253-1276.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:6:p:39-53




Template-Type: ReDIF-Article 1.0
Author-Name: Ali F. Darrat 
Author-X-Name-First: Ali F. 
Author-X-Name-Last: Darrat 
Author-Name: Khaled  Elkhal 
Author-X-Name-First: Khaled  
Author-X-Name-Last: Elkhal 
Author-Name: Brent  McCallum 
Author-X-Name-First: Brent  
Author-X-Name-Last: McCallum 
Title: Finance and Macroeconomic Performance. Some Evidence for Emerging Markets 
Abstract:
 This paper examines whether financial-sector development in several
 emerging markets affects their real economic activity. Results from
 cointegration and error correction models suggest that financial deepening
 (alternatively measured) exerts a robust longterm stimulating effect on
 real economic activity (both overall and sectoral) in all countries
 examined. However, short-term effects of financial deepening prove
 generally nonexistent, or tenuous at best. The results suggest that
 improving the structure and operation of the financial sector in emerging
 markets does stimulate real growth, but only if such improvement persists
 over a prolonged period of time.
Journal: Emerging Markets Finance and Trade 
Pages: 5-28 
Issue: 3 
Volume: 42 
Year: 2006 
Month: 5 
Keywords: cointegration, emerging markets, error correction models, financial deepening, real economic growth, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=98312102R8G56361 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Beck, T.; R. Levine;
 and N. Loayza. 2000. "Finance and the Sources of Growth." Journal of
 Financial Economics >b>58>/b>, no. 1: 261-300.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Bencivenga, V.R., and B.D.
 Smith. 1991. "Financial Intermediation and Endogenous Growth." >i>Review
 of Economic Studies>/i>>b>58>/b>, no. 2: 195-209.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>3</BIBL>	      <BIBTEXT> Cheung, Y.W., and K.S. Lai.
 1993. "Finite Sample Sizes of Johansen's Likelihood Ratio Tests for
 Cointegration." >i>Oxford Bulletin of Economics and
 Statistics>/i>>b>55>/b>, no. 3: 313-328.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>4</BIBL>	     <BIBTEXT> Chow, G.C. 1960. "Tests of Equality
 Between Sets of Coefficients in Two Linear Regressions."
 >i>Econometrica>/i>>b>28>/b>, no. 3: 591-605.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Darrat, A.F. 1999. "Are
 Financial Deepening and Economic Growth Causally Related? Another Look at
 the Evidence." >i>International Economic Journal>/i>>b>13>/b>, no. 3:
 19-35.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT> De Gregorio, J., and P.E. Guidotti. 1995. "Financial Development
 and Economic Growth." >i>World Development>/i>>b>23>/b>, no. 3:
 433-448.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Denizer, C.; M.F. Iyigun; and A.L. Owen. 2002. "Finance and
 Macroeconomic Volatility." >i>Contributions to Macroeconomics>/i>>b>2>/b>,
 no. 1: 1-30.</BIBTEXT>      </REF>	 <REF>	      <BIBL>8</BIBL>	   
 <BIBTEXT> Dickey, D.A.; D.W. Jansen; and D.L. Thornton. 1991. "A Primer on
 Cointegration with an Application to Money and Income." >i>Federal Reserve
 Bank of St. Louis Review>/i>>b>73>/b> (March): 58-78.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Driscoll, M.J.,
 and A.K. Lahiri. 1983. "Income-Velocity of Money in Agricultural
 Developing Economies." >i>Review of Economics and Statistics>/i>>b>65>/b>,
 no. 3: 393-401.</BIBTEXT>	</REF>	    <REF>	 <BIBL>10</BIBL>   
     <BIBTEXT> Engle, R.F., and C.W.J. Granger. 1987. "Co-integration and
 Error-Correction: Representation, Estimation, and Testing."
 >i>Econometrica>/i>>b>55>/b>, no. 2: 251-276.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Gonzalo, J. 1994. "Five
 Alternative Methods of Estimating Long-Run Equilibrium Relationships."
 >i>Journal of Econometrics>/i>>b>60>/b>, nos. 1-2: 203-233.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Granger, C.W.J.
 1986. "Developments in the Study of Cointegrated Economic Variables."
 >i>Oxford Bulletin of Economics and Statistics>/i>>b>48>/b>, no. 3:
 213-228.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Granger, C.W.J., and J. Lin. 1995. "Causality in the Long Run."
 >i>Econometric Theory>/i>>b>11>/b>, no. 3: 530-536.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Granger, C.W.J., and P.
 Newbold. 1974. "Spurious Regressions in Econometrics." >i>Journal of
 Econometrics>/i>>b>2>/b>, no. 2: 111-120.</BIBTEXT>	  </REF>      <REF>
	<BIBL>15</BIBL>        <BIBTEXT> Greenwood, J., and B. Jovanovic.
 1990. "Financial Development, Growth, and the Distribution of Income."
 >i>Journal of Political Economy>/i>>b>98>/b>, no. 5: 1076-1107.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Gurley,
 J.G., and E.S. Shaw. 1960. >i>Money in a Theory of Finance.>/i>
 Washington, DC: Brookings Institution Press.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Hakkio, C.S., and M. Rush.
 1991. "Cointegration: How Short Is the Long Run?" >i>Journal of
 International Money and Finance>/i>>b>10>/b>, no. 4: 571-581.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>18</BIBL>	   <BIBTEXT> Johansen, S.
 1988. "Statistical Analysis of Cointegrated Vectors." >i>Journal of
 Economic Dynamics and Control>/i>>b>2>/b>, nos. 2-3: 231-254.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>19</BIBL>	   <BIBTEXT> Johansen, S.
 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in
 Gaussian Vector Autoregressive Models." >i>Econometrica>/i>>b>59>/b>, no.
 6: 1551-1580.</BIBTEXT>      </REF>	  <REF>        <BIBL>20</BIBL>	   
   <BIBTEXT> Jones, J.D., and D. Joulfaian. 1991. "Federal Government
 Expenditures and Revenues in the Early Years of the American Republic:
 Evidence from 1792 to 1860." >i>Journal of Macroeconomics>/i>>b>13>/b>,
 no. 1: 133-155.</BIBTEXT>	</REF>	    <REF>	 <BIBL>21</BIBL>   
     <BIBTEXT> King, R.G., and R. Levine. 1993a. "Finance and Growth:
 Schumpeter Might Be Right." >i>Quarterly Journal of
 Economics>/i>>b>108>/b>, no. 3: 717-737.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>22</BIBL>	      <BIBTEXT> King, R.G., and R. Levine. 1993b.
 "Finance, Entrepreneurship, and Growth: Theory and Evidence." >i>Journal
 of Monetary Economics>/i>>b>32>/b>, no. 3: 513-542.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>23</BIBL>	 <BIBTEXT> Levine, R. 1997.
 "Financial Development and Economic Growth: Views and Agenda." >i>Journal
 of Economic Literature>/i>>b>35>/b>, no. 2: 688-726.</BIBTEXT>      </REF>
      <REF>	   <BIBL>24</BIBL>	  <BIBTEXT> Loayza, N., and R.
 Ranciere. 2001. "Financial Development, Financial Fragility, and Growth."
 Working Paper no. WP/05/170, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>25</BIBL>	   
 <BIBTEXT> Lutkepohl, H. 1982. "Non-Causality Due to Omitted Variables."
 >i>Journal of Econometrics>/i>>b>19>/b>, nos. 2-3: 367-378.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT> McKinnon, R.
 1973. >i>Money and Capital in Economic Development.>/i> Washington, DC:
 Brookings Institution Press.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>27</BIBL>	<BIBTEXT> Miller, S.M. 1991. "Monetary Dynamics: An
 Application of Cointegration and Error Correction Modeling." >i>Journal of
 Money, Credit and Banking>/i>>b>23>/b>, no. 2: 139-154.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>28</BIBL>	 <BIBTEXT> Phillips, P.C.B.
 1986. "Understanding Spurious Regressions in Econometrics." >i>Journal of
 Econometrics>/i>>b>33>/b>, no. 3: 311-340.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>29</BIBL>	     <BIBTEXT> Rajan, R.G., and L.
 Zingales. 1998. "Financial Dependence and Growth." >i>American Economic
 Review>/i>>b>88>/b>, no. 3: 559-586.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>30</BIBL>	  <BIBTEXT> Reimers, H.E. 1992. "Comparisons of
 Tests for Multivariate Cointegration." >i>Statistical Papers>/i>>b>33>/b>,
 no. 3: 335-359.</BIBTEXT>	</REF>	    <REF>	 <BIBL>31</BIBL>   
     <BIBTEXT> Roubini, N., and X. Sala-i-Martin. 1992. "Financial
 Repression and Economic Growth." >i>Journal of Development
 Economics>/i>>b>39>/b>, no. 1: 5-30.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>32</BIBL>	  <BIBTEXT> Shaw, E.S. 1973. Financial Deepening in
 Economic Development. New York: Oxford University Press.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>33</BIBL>	 <BIBTEXT> Stock, J.H., and
 M.W. Watson. 1989. "Interpreting the Evidence on Money-Income Causality."
 >i>Journal of Econometrics>/i>>b>40>/b>, no. 1: 161-182.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>34</BIBL>	 <BIBTEXT> Vogel, R., and
 S. Buser. 1976. "Inflation, Financial Repression, and Capital Formation in
 Latin America." In >i>Money and Finance in Economic Growth and
 Development>/i>, ed. R. McKinnon, pp. 35-70. New York: Marcel
 Dekker.</BIBTEXT>	</REF>	    <REF>	 <BIBL>35</BIBL>       
 <BIBTEXT> World Bank. 1989. >i>World Development Report.>/i> New York:
 Oxford Unversity Press.</BIBTEXT>	</REF>	    <REF>	
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 Volatility and Financial Volatility." International Monetary Fund Working
 Paper no. WP/01/60, Washington, DC.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:3:p:5-28




Template-Type: ReDIF-Article 1.0
Author-Name: Anchor Y. Lin 
Author-X-Name-First: Anchor Y. 
Author-X-Name-Last: Lin 
Author-Name: Lin-Shang  Huang 
Author-X-Name-First: Lin-Shang  
Author-X-Name-Last: Huang 
Author-Name: Mei-Yuan  Chen 
Author-X-Name-First: Mei-Yuan  
Author-X-Name-Last: Chen 
Title: Price Comovement and Institutional Performance Following Large Market Movements 
Abstract:
 This paper investigates the price comovement of stocks actively traded by
 institutions and the investment performance of foreign and domestic
 institutional investors in Taiwan's stock markets during periods of large
 market movements. Stocks of small size, high share turnover, and high
 return volatility tend to move together with the market when markets rise
 sharply. In short-term holdings, foreign investors and domestic mutual
 funds can outperform the market by trading small-size, high-turnover, and
 high-volatility stocks.
Journal: Emerging Markets Finance and Trade 
Pages: 37-61 
Issue: 5 
Volume: 43 
Year: 2007 
Month: 10 
Keywords: institutional investor, investment performance, large market movement, price comovement, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=88M85H74183U5347 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aitken, B. 1998. "Have
 Institutional Investors Destabilized Emerging Markets?" >i>Contemporary
 Economic Policy>/i> 16, no. 2: 173-184.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>2</BIBL>	    <BIBTEXT> Bekaert, G.; C.R. Harvey; and R.L.
 Lumsdaine. 2002. "Dating the Integration of World Equity Markets."
 >i>Journal of Financial Economics>/i> 65, no. 2 (August):
 203-247.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Bikhchandani, S.; D. Hirshleifer; and I. Welch. 1992. "A Theory
 of Fads, Fashion, Custom, and Cultural Change as Information Cascades."
 >i>Journal of Political Economy>/i> 100, no. 51: 992-1026.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Brennan, M.J.;
 H.H. Cao; N. Strong; and X. Xu. 2005. "The Dynamics of International
 Equity Market Expectations." >i>Journal of Financial Economics>/i> 77, no.
 2 (August): 257-288.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>5</BIBL>        <BIBTEXT> Chang, E.C.; J.W. Cheng; and A. Khorana.
 2000. "An Examination of Herd Behavior in Equity Markets: An International
 Perspective." >i>Journal of Banking and Finance>/i> 24, no. 10 (October):
 1651-1679.</BIBTEXT>	   </REF>      <REF>	    <BIBL>6</BIBL>	 
 <BIBTEXT> Chiyachantana, C.N.; P.K. Jain; C. Jiang; and R.A. Wood. 2004.
 "International Evidence on Institutional Trading Behavior and Price
 Impact." >i>Journal of Finance>/i> 59, no. 2 (April): 869-898.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>7</BIBL>	   <BIBTEXT> Choe, H.; B.
 Kho; and R.M. Stulz. 1999. "Do Foreign Investors Destabilize Stock
 Markets? The Korean Experience in 1997." >i>Journal of Financial
 Economics>/i> 54, no. 2 (October): 227-264.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Christie, W.G., and R.D.
 Huang. 1995. "Following the Pied Piper: Do Individual Returns Herd Around
 the Market?" >i>Financial Analysts Journal>/i> 51, no. 4: 31-37.</BIBTEXT>
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Handle: RePEc:mes:emfitr:v:43:y:2007:i:5:p:37-61




Template-Type: ReDIF-Article 1.0
Author-Name: EKTA SELARKA 
Author-X-Name-First: EKTA 
Author-X-Name-Last: SELARKA 
Title:         Ownership Concentration and Firm Value: A Study from the Indian Corporate Sector       
Abstract:
       This paper contributes to understanding corporate governance issues
 in emerging economies by examining how blockholders influence firm value.
 Using a much disaggregated and uniform database from the Indian corporate
 sector for the year 2001, we examine the interaction between ownership
 structure and firm value in the following ways. Unlike most existing
 research, which studies the aggregate level of ownership, we include a
 wider set of mechanisms, such as identity and ownership concentration of
 outside blockholders controlling at least 5 percent of total equity of the
 firm. We analyze the role played by these shareholders with substantial
 voting power in situations when equity holding is less compared to the
 more concentrated holdings of promoters. We also attempt to see if these
 investors coordinate among themselves to constrain insiders from
 expropriating corporate resources. We find a significant curvilinear
 relationship between firm value and the fraction of voting rights owned by
 insiders. The curve slopes downward until insider ownership reaches
 approximately between 45 percent and 63 percent, then slopes upward.
 Empirical results on ownership concentration by minority blockholders do
 not support the monitoring hypothesis of these investors. Furthermore, the
 coordinated behavior of the largest two minority blockholders has an
 increasing (decreasing) impact on firm value when the collective control
 is located in the lower (higher) range. The coordination problem worsens
 if the largest two are private corporate bodies.    
Journal: Emerging Markets Finance and Trade 
Pages: 83-108 
Issue: 6 
Volume: 41 
Year: 2005 
Month: 11 
Keywords: blockholders, corporate governance, India, ownership structure, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=BJ43BVRRKTFRR2M7 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Barca, F., and M. Becht.
 2001. The Control of Corporate Europe. New York: Oxford University
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 <BIBTEXT>McConnell, J., and H. Servaes. 1990. "Additional Evidence on
 Equity Ownership and Corporate Value." Journal of Financial Economics 27,
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 Governance and Performance in Publicly Listed, Family-Controlled Firms:
 Evidence from Taiwan." Research Paper 018, King's College, London
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Handle: RePEc:mes:emfitr:v:41:y:2005:i:6:p:83-108




Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Hsiang  Chen 
Author-X-Name-First: Ming-Hsiang  
Author-X-Name-Last: Chen 
Author-Name: Su-Jane  Chen 
Author-X-Name-First: Su-Jane  
Author-X-Name-Last: Chen 
Author-Name: Chao-Ning  Liao 
Author-X-Name-First: Chao-Ning  
Author-X-Name-Last: Liao 
Author-Name: Chun-Ming  Lin 
Author-X-Name-First: Chun-Ming  
Author-X-Name-Last: Lin 
Title: Taiwanese Mutual Fund Performance Under Different Central Bank of China Monetary Policy Environments 
Abstract:
 This study examines the performance of mutual funds under different
 Central Bank of China monetary policy environments in the emerging Taiwan
 market. To measure monetary policy changes effectively, we exploit changes
 in the discount rate and further categorize the monetary environment as
 either restrictive or expansive. We consider a restrictive monetary
 environment to be a period in which the discount rate rises, whereas an
 expansive monetary condition is a period in which the discount rate drops.
 It is found that all mutual funds, both domestic and international funds,
 exhibit a higher mean return, lower risk, and higher Sharpe and Treynor
 ratios under expansive monetary policy environments. Regression results
 show that domestic mutual fund returns are related significantly to local
 monetary policy. Furthermore, after controlling for the possible effect of
 macro factors on the association between the monetary policy dummy
 variable and mutual fund returns, the significant influence of monetary
 policy on domestic mutual fund returns remains robust. In contrast,
 changes in U.S. monetary policy stringency, in general, do not affect the
 performance of either domestic or international mutual funds in Taiwan.
Journal: Emerging Markets Finance and Trade 
Pages: 100-116 
Issue: 2 
Volume: 44 
Year: 2008 
Month: 3 
Keywords: discount rate, monetary policy, mutual fund returns, Taiwan, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=662Q5242521617K4 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 Business>/i> 39, no. 1: 119-138.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>24</BIBL>	<BIBTEXT> Shu, P.G.; Y.H. Yeh; and T. Yamada 2002.
 "The Behavior of Taiwan Mutual Fund Investors: Performance and Fund
 Flows." >i>Pacific-Basin Finance Journal>/i> 10, no. 5: 583-600.</BIBTEXT>
      </REF>	  <REF>        <BIBL>25</BIBL>	      <BIBTEXT> Smirlock,
 M.J., and J.B. Yawitz 1985. "Asset Returns, Discount Rate Changes, and
 Market Efficiency." >i>Journal of Finance>/i> 40, no. 4:
 1141-1158.</BIBTEXT>	   </REF>      <REF>	    <BIBL>26</BIBL>	  
 <BIBTEXT> Swanson, P.E., and P.J. Tsai 2005. "Closed-End Country Funds and
 the Role of Exchange Rates in Pricing and in Determination of Premiums and
 Discounts." >i>Journal of Economics and Business>/i> 57, no. 5:
 388-410.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT> Thorbecke, W. 1997. "On Stock Market Returns and Monetary
 Policy." >i>Journal of Finance>/i> 52, no. 2: 635-654.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>28</BIBL>	 <BIBTEXT> Treynor, J.L.
 1965. "How to Rate Management Investment Funds." >i>Harvard Business
 Review>/i> 43 (January-February): 63-75.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:2:p:100-116




Template-Type: ReDIF-Article 1.0
Author-Name: GONZALO PASTOR 
Author-X-Name-First: GONZALO 
Author-X-Name-Last: PASTOR 
Author-Name: RON VAN ROODEN 
Author-X-Name-First: RON VAN 
Author-X-Name-Last: ROODEN 
Title:         Turkmenistan The Burden of Current Agricultural Policies       
Abstract:
       The paper analyzes the opportunity costs of current agricultural
 policies in Turkmenistan. It argues that the opportunity costs of
 continuing with these policies is very high for the budget, the average
 farmer, and the economy as a whole. The paper calls for the development of
 nontraditional agricultural crops, which are more profitable than wheat
 and cotton in the international commodity markets, and a comprehensive and
 sustained strategy for the agricultural sector.    
Journal: Emerging Markets Finance and Trade 
Pages: 35-58 
Issue: 1 
Volume: 40 
Year: 2004 
Month: 1 
Keywords: agricultural policies, cost of protection, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=2K2FDR039QK8QRGT 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Bruno, M. 1962.
 "Interdependence, Resource Cost, and Structural Change in Israel." Bank of
 Israel, Research Department, Jerusalem.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>2</BIBL>	    <BIBTEXT>FAO (Food and Agricultural
 Organization). 1977. "Crop Water Requirements." FAO Irrigation and
 Drainage Paper No. 24, United Nations, Rome.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>------. 1998. "Crop
 Evapotranspiration: Guidelines for Computing Crop Water Require-ments."
 FAO Irrigation and Drainage Paper No. 56, United Nations, Rome.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT>Krueger, A.
 1966. "Some Economic Costs of Exchange Control: The Turkish Case." Journal
 of Political Economy, (August): 466-480.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>5</BIBL>	     <BIBTEXT>Lerman, Z.; J. Garcia-Garcia; and D.
 Wichelns. 1996. "Land and Water Policies in Uzbekistan." Post-Soviet
 Geography 37, no. 3: 145-174.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>6</BIBL>        <BIBTEXT>Michaely, M.; D. Papageorgiou, A.M. Choksi;
 and M. Michaely. 1991. Liberalizing Foreign Trade, Lessons of Experience
 in the Developing World, vol. 7. London: Basil Blackwell.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT>Nogues, J., and S.
 Gulati. 1994. "Economic Policies and Performance Under Alternative Trade
 Regimes: Latin America During the 1980s." World Economy 17 (July):
 467-496.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT>Rosenberg, C.B., and T. Saavalainen. 1998. "How to Deal with
 Azerbaijan's Oil Boom? Policy Strategies in a Resource-Rich Transition
 Economy." Working Paper WP/98/6, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>	  
 <BIBTEXT>Spoor, M. 1998. "The Aral Sea Basin Crisis: Transition and
 Environment in Former Soviet Central Asia." Development and Change 29
 (July): 409-435.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>  
      <BIBTEXT>World Bank. 1982. "Turkey, Industrialization and Trade
 Strategy." World Bank Country Study, World Bank, Washington DC.</BIBTEXT> 
     </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:1:p:35-58




Template-Type: ReDIF-Article 1.0
Author-Name: Mei-Hsing  Cheng 
Author-X-Name-First: Mei-Hsing  
Author-X-Name-Last: Cheng 
Author-Name: Hsin-Hong  Kang 
Author-X-Name-First: Hsin-Hong  
Author-X-Name-Last: Kang 
Title: Price-Formation Process of an Emerging Futures Market: Call Auction Versus Continuous Auction 
Abstract:
 This study assesses the market qualities of alternative price-formation
 processes for an emerging futures marketâthe Taiwan futures market. In
 2002, the price formation process in the market changed during the period
 of trade between call auction and continuous auction. The performances of
 call auction and continuous auction are compared using intraday data.
 Empirical results show that the market is more liquid, and volatility is
 slightly lower, under continuous auction than under call auction. Also,
 there is robust evidence that continuous auction improves informative
 efficiency. The study suggests that for an emerging futures market like
 that of Taiwan, continuous auction offers a better trading environment for
 futures trading. In addition to demonstrating the virtue of continuous
 auction, this study also finds that the asymmetry in volatility is related
 to the price formation process. The asymmetry effect exists under
 continuous auction, but not under call auction.
Journal: Emerging Markets Finance and Trade 
Pages: 74-97 
Issue: 1 
Volume: 43 
Year: 2007 
Month: 2 
Keywords: asymmetry, call auction, continuous auction, emerging market, futures market, price-formation process, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H730501328515663 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Amihud, Y., and H.
 Mendelson. 1986. "Asset Pricing and the Bid-Ask Spread." >i>Journal of
 Financial Economics>/i>17, no. 2: 223-249.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Amihud, Y., and H. Mendelson.
 1987. "Trading Mechanisms and Stock Returns: An Empirical Investigation."
 >i>Journal of Finance>/i>42, no. 3: 533-553.</BIBTEXT>      </REF>	
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 1988. "Liquidity, Volatility, and Exchange Automation." >i>Journal of
 Accounting, Auditing and Finance>/i>3, no. 4: 369-395.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Amihud, Y., and
 H. Mendelson. 1991. "Volatility, Efficiency, and Trading: Evidence from
 the Japanese Stock Market." >i>Journal of Finance>/i>46, no. 5:
 1765-1789.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL>	 
 <BIBTEXT> Amihud, Y.; H. Mendelson; and B. Lauterbach. 1997. "Market
 Microstructure and Securities Values: Evidence from the Tel Aviv Stock
 Exchange." >i>Journal of Financial Economics>/i>45, no. 3:
 365-390.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Andersen, T.G., and T. Bollerslev. 1997. "Intraday Periodicity
 and Volatility Persistence in Financial Markets." >i>Journal of Empirical
 Finance>/i>4, nos. 2-3: 115-158.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>7</BIBL>        <BIBTEXT> Andersen, T.G., and T. Bollerslev. 1998.
 "DM-Dollar Volatility: Intraday Activity Patterns, Macroeconomic
 Announcements and Longer Run Dependencies." >i>Journal of Finance>/i>53,
 no. 1: 219-265.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>    
    <BIBTEXT> Antoniou, A., and P. Holmes. 1995. "Futures Trading,
 Information and Spot Price Volatility: Evidence for the FTSE-100 Stock
 Index Futures Contract Using GARCH." >i>Journal of Banking and
 Finance>/i>19, no. 1: 117-129.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>9</BIBL>        <BIBTEXT> Bollerslev, T., and E. Ghysels. 1996.
 "Periodic Autoregressive Conditional Heteroscedasticity." >i>Journal of
 Business and Economic Statistics>/i>14, no. 2: 139-151.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Chang, R.P.;
 S.T. Hsu; N.K. Huang; and S.G. Rhee. 1999. "The Effects of Trading Methods
 on Volatility and Liquidity: Evidence from the Taiwan Stock Exchange."
 >i>Journal of Business Finance and Accounting>/i>26, nos. 1-2:
 137-170.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Chang, R.P.; S.G. Rhee; and S. Soedigno. 1995. "Price Volatility
 of Indonesian Stocks." >i>Pacific-Basin Finance Journal>/i>3, nos. 2-3:
 337-355.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Cheung, Y.L.; R.Y.K. Ho; P. Pope; and P. Draper. 1994. "Intraday
 Stock Return Volatility: The Hong Kong Evidence." >i>Pacific-Basin Finance
 Journal>/i>2, nos. 2-3: 261-276.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>13</BIBL>	<BIBTEXT> Choe, H., and H.S. Shin. 1993. "An
 Analysis of Interday and Intraday Return Volatility: Evidence from the
 Korea Stock Exchange." >i>Pacific-Basin Finance Journal>/i>1, no. 2:
 175-188.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Clements, M.P., and N. Taylor. 2003. "Evaluating Interval
 Forecasts of High-Frequency Financial Data." >i>Journal of Applied
 Econometrics>/i>18, no. 4: 445-456.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>15</BIBL>	 <BIBTEXT> Gau, Y.F., and M. Hau. 2004. "Public
 Information, Private Information, Inventory Control, and Volatility of
 Intraday NTD/USD Exchange Rates." >i>Applied Economics Letters>/i>11, no.
 4: 263-266.</BIBTEXT>	    </REF>	<REF>	     <BIBL>16</BIBL>	   
 <BIBTEXT> Gerety, M.S., and J.H. Mulherin. 1994. "Price Formation on Stock
 Exchanges: The Evolution of Trading Within the Day." >i>Review of
 Financial Studies>/i>7, no. 3: 609-629.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>17</BIBL>	     <BIBTEXT> Hasbrouck, J., and R.A. Schwartz.
 1988. "Liquidity and Execution Costs in Equity Markets." >i>Journal of
 Portfolio Management>/i>14, no. 3: 10-16.</BIBTEXT>	  </REF>      <REF>
	<BIBL>18</BIBL>        <BIBTEXT> Hauser, S., and A. Levy. 1998.
 "Efficiency of Price Discovery in Thinly Traded Stocks: Evidence from Dual
 Listings in Tel Aviv and the OTC." >i>Multinational Finance Journal>/i>2,
 no. 2: 133-149.</BIBTEXT>	</REF>	    <REF>	 <BIBL>19</BIBL>   
     <BIBTEXT> Huang, Y.S.; D.Y. Liu; and T.W. Fu. 2000. "Stock Price
 Behavior over Trading and Non-Trading Periods: Evidence from the Taiwan
 Stock Exchange." >i>Journal of Business Finance and Accounting>/i>27, nos.
 5-6: 575-602.</BIBTEXT>      </REF>	  <REF>        <BIBL>20</BIBL>	   
   <BIBTEXT> Kairys, J.P.; R. Kruza; and R. Kumpins. 2000. "Winners and
 Losers from the Introduction of Continuous Variable Price Trading:
 Evidence from the Riga Stock Exchange." >i>Journal of Banking and
 Finance>/i>24, no. 4: 603-624.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>21</BIBL>	<BIBTEXT> Kalay, A.; L. Wei; and A. Wohl. 2002.
 "Continuous Trading or Call Auctions: Revealed Preferences of Investors at
 the Tel Aviv Stock Exchange." >i>Journal of Finance>/i>57, no. 1:
 523-542.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT> Khan, A.W., and H.K. Baker. 1993. "Unlisted Trading Privileges,
 Liquidity, and Stock Returns." >i>Journal of Financial Research>/i>16, no.
 3: 221-236.</BIBTEXT>	    </REF>	<REF>	     <BIBL>23</BIBL>	   
 <BIBTEXT> Kyle, A.S. 1985. "Continuous Auctions and Insider Trading."
 >i>Econometrica>/i>53, no. 6: 1315-1335.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>24</BIBL>	      <BIBTEXT> Lang, L.H.P., and Y.T. Lee. 1999.
 "Performance of Various Transaction Frequencies Under Call Markets: The
 Case of Taiwan." >i>Pacific-Basin Finance Journal>/i>7, no. 1:
 23-39.</BIBTEXT>      </REF>	   <REF>	<BIBL>25</BIBL>       
 <BIBTEXT> Lauterbach, B. 2001. "A Note on Trading Mechanism and
 Securities' Value: The Analysis of Rejects from Continuous Trade."
 >i>Journal of Banking and Finance>/i>25, no. 2: 419-430.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT> Martens, M.;
 Y.C. Chang; and S.J. Taylor. 2002. "A Comparison of Seasonal Adjustment
 Methods When Forecasting Intraday Volatility." >i>Journal of Financial
 Research>/i>25, no. 2: 283-299.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>27</BIBL>	<BIBTEXT> McMillan, D.G., and A.E.H. Speight. 2004.
 "Intraday Periodicity, Temporal Aggregation and Time-to-Maturity in
 FTSE-100 Index Futures Volatility." >i>Applied Financial Economics>/i>14,
 no. 4: 253-263.</BIBTEXT>	</REF>	    <REF>	 <BIBL>28</BIBL>   
     <BIBTEXT> Mendelson, H. 1982. "Market Behavior in a Clearing House."
 >i>Econometrica>/i>50, no. 6: 1505-1524.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>29</BIBL>	      <BIBTEXT> Mian, G.M., and C.M. Adam. 2001.
 "Volatility Dynamics in High Frequency Financial Data: An Empirical
 Investigation of the Australian Equity Returns." >i>Applied Financial
 Economics>/i>11, no. 3: 341-352.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>30</BIBL>	<BIBTEXT> Muscarella, C.J., and M.S. Piwowar. 2001.
 "Market Microstructure and Securities Values: Evidence from the Paris
 Bourse." >i>Journal of Financial Markets>/i>4, no. 3: 209-229.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>31</BIBL>	    <BIBTEXT> Shastri,
 K.A.; K. Shastri; and K. Sirodom. 1995. "Trading Mechanisms and Return
 Volatility: An Empirical Analysis of the Stock Exchange of Thailand."
 >i>Pacific-Basin Finance Journal>/i>3, nos. 2-3: 357-370.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>32</BIBL>	 <BIBTEXT> Stoll, H.R.
 1992. "Principles of Trading Market Structure." >i>Journal of Financial
 Services Research>/i>6, no. 1: 75-107.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>33</BIBL>	    <BIBTEXT> Stoll, H.R., and R.E. Whaley. 1990.
 "Stock Market Structure and Volatility." >i>Review of Financial
 Studies>/i>3, no. 1: 37-71.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>34</BIBL>	<BIBTEXT> Taylor, N. 2004. "Modeling Discontinuous
 Periodic Conditional Volatility: Evidence from the Commodity Futures
 Market." >i>Journal of Futures Markets>/i>24, no. 9: 805-834.</BIBTEXT>   
   </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:1:p:74-97




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 6 
Volume: 42 
Year: 2006 
Month: 12 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=UM85XU482682178R 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:42:y:2006:i:6:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Alexandr  Akimov 
Author-X-Name-First: Alexandr  
Author-X-Name-Last: Akimov 
Author-Name: Brian  Dollery 
Author-X-Name-First: Brian  
Author-X-Name-Last: Dollery 
Title: Financial System Reform in Kazakhstan from 1993 to 2006 and Its Socioeconomic Effects 
Abstract:
 Voluminous theoretical and empirical literature examines the relation
 between financial-sector development and economic growth. However,
 previous studies have largely ignored progress in former Soviet Central
 Asian republics engaged in transition from socialist command economies to
 market economies. This paper seeks to fill this gap in the literature by
 considering Kazakhstan's experience with financial-sector liberalization
 and the socioeconomic effects of these reforms. We summarize the prereform
 economic circumstances prevailing in Kazakhstan, outline the major
 characteristics of its postcommunist financial system, and provide a
 detailed chronicle of financial-sector reform measures from 1993 to 2006.
 The paper focuses on the evolution of Kazakhstan's banking structure,
 policies adopted by the National Bank of Kazakhstan, and the approach
 taken to the privatization of state banks, as well as the steps taken to
 improve bank accounting standards and banking supervision. The development
 path of nonbank financial institutions and capital markets is also
 examined. We consider the outcomes of financial-sector reforms and their
 effects on the economy as a whole.
Journal: Emerging Markets Finance and Trade 
Pages: 81-97 
Issue: 3 
Volume: 44 
Year: 2008 
Month: 5 
Keywords: economic growth, financial development, Kazakhstan, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=9704MU0376JK4L61 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Akimov, A., and B.
 Dollery. 2006. "Uzbekistan's Financial System: Evaluation of Twelve Years
 Of Transition." >i>Problems of Economic Transition>/i> 48, no. 12:
 6-31.</BIBTEXT>      </REF>	  <REF>        <BIBL>2</BIBL>	    
 <BIBTEXT> Akimov, A.; A. Wijeweera; and B. Dollery. 2006. "Finance-Growth
 Nexus: Evidence from Transition Economies." Economics Working Paper
 Series, no. 2006-5, UNE, Armidale (available at >a target="_blank"
 href='http://www.une.edu.au/economics/publications/ecowps.php'>www.une.edu
 .au/economics/publications/ecowps.php>/a></BIBTEXT>	  </REF>      <REF>
	<BIBL>3</BIBL>	      <BIBTEXT> Bagehot, W. 1991. >i>Lombard
 Street: A Description of the Money Market.>/i> Philadelphia: Orion
 Editions. [Originally published in 1873.]</BIBTEXT>	  </REF>      <REF>
	<BIBL>4</BIBL>	      <BIBTEXT> Barisitz, S. 2000. "The Development
 of the Banking Sectors in Russian, Ukraine, Belarus and Kazakhstan Since
 Independence." Focus on Transition no. 1/2000, Austrian National Bank,
 Vienna.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>       
 <BIBTEXT> Benhabib, J., and M. Spiegel. 2000. "The Role of Financial
 Development in Growth and Investment." >i>Journal of Economic Growth>/i>
 5, no. 4: 341-360.</BIBTEXT>	   </REF>      <REF>	    <BIBL>6</BIBL> 
       <BIBTEXT> Bhatt, V. 1989. "Financial Innovation and Credit Market
 Development." World Bank Policy, Planning and Research Working Papers no.
 52, Washington, DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>7</BIBL>
	<BIBTEXT> Calderon, C., and L. Liu. 2003. "The Direction of
 Causality Between Financial Development and Economic Growth." >i>Journal
 of Development Economics>/i> 72, no. 1: 321-334.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>8</BIBL>	     <BIBTEXT> Capasso, S. 2003. "Modeling
 Growth and Financial Intermediation Through Information Frictions: A
 Critical Survey." In >i>The Theory of Economic Growth: A "Classical"
 Perspective>/i>, ed. H. Kurz and N. Salvadori, pp. 342-357. Northampton,
 MA: Edward Elgar.</BIBTEXT>	  </REF>      <REF>	   <BIBL>9</BIBL>  
      <BIBTEXT> Dawson, P. 2003. "Financial Development and Growth in
 Economies in Transition." >i>Applied Economic Letters>/i> 10, no. 13:
 833-836.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> European Bank for Reconstruction and Development. Various years.
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 <BIBL>11</BIBL>	<BIBTEXT> European Bank for Reconstruction and
 Development. 2005. >i>Strategy for Kazakhstan.>/i> London.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Financial
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 sh231386_2510.pdf>/a></BIBTEXT>      </REF>	  <REF>       
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 <BIBTEXT> Goldsmith, R. 1969. >i>Financial Structure and Development.>/i>
 New Haven: Yale University Press.</BIBTEXT>	  </REF>      <REF>	  
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 eritage.org/research/features/index/countries.cfm>/a></BIBTEXT>     
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Handle: RePEc:mes:emfitr:v:44:y:2008:i:3:p:81-97




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 1 
Volume: 43 
Year: 2007 
Month: 2 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G674543527432N84 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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Handle: RePEc:mes:emfitr:v:43:y:2007:i:1:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: MatjaÅ¾  Ärnigoj 
Author-X-Name-First: MatjaÅ¾  
Author-X-Name-Last: Ärnigoj 
Author-Name: DuÅ¡an  Mramor 
Author-X-Name-First: DuÅ¡an  
Author-X-Name-Last: Mramor 
Title: Determinants of Capital Structure in Emerging European Economies: Evidence from Slovenian Firms 
Abstract:
 Although empirical research has shown that some capital structure
 differences can be explained by modern capital structure theory in mature
 market economies, the forces behind capital structure decisions in
 emerging European economies remain a puzzle. We assume that, in these
 countries, the change in economic system, and therefore corporate
 governance, has been only gradual; other forces must be at work when firms
 decide on their capital structures compared to those of mature market
 economies. After identifying possible relevant factors in Slovenian firms,
 we show that throughout the period from 1999 to 2006, these factors
 explained the greatest part of capital structure differences. However, the
 explanatory power of the proposed factors is changing, which implies
 changing corporate governance and financial behavior of Slovenian firms
 during transition.
Journal: Emerging Markets Finance and Trade 
Pages: 72-89 
Issue: 1 
Volume: 45 
Year: 2009 
Month: 1 
Keywords: capital structure, emerging European economies, employee-governed firms, leverage, management-governed firms, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=207376407028J27X 
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Handle: RePEc:mes:emfitr:v:45:y:2009:i:1:p:72-89




Template-Type: ReDIF-Article 1.0
Author-Name: Hasan  Ersel 
Author-X-Name-First: Hasan  
Author-X-Name-Last: Ersel 
Author-Name: Fatih  Ãzatay 
Author-X-Name-First: Fatih  
Author-X-Name-Last: Ãzatay 
Title: Fiscal Dominance and Inflation Targeting: Lessons from Turkey 
Abstract:
 In the aftermath of the 2000-2001 crisis in Turkey, the banking sector was
 in turbulence, requiring immediate action. The rescue operation
 significantly increased the public debt ratio with respect to gross
 domestic product. At the beginning of 2002, the central bank of Turkey
 announced that it was going to implement an implicit inflation-targeting
 regime. The fiscal dominance caused by the high debt ratio severely
 constrained the conduct of monetary policy. Other obstacles to the conduct
 of monetary policy included a high level of exchange rate pass-through,
 inflation inertia, and a weak banking sector. This paper offers an account
 of the monetary policy experience of Turkey in the postcrisis period and
 provides lessons for policymakers in other emerging markets.
Journal: Emerging Markets Finance and Trade 
Pages: 38-51 
Issue: 6 
Volume: 44 
Year: 2008 
Month: 11 
Keywords: fiscal dominance, financial sector, exchange rate pass-through, inflation inertia, inflation targeting, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=0426M52433X34365 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> AkÄ±ncÄ±, Ã.; Y. B.
 Ãzer; and B. Usta. 2005. "TÃ¼rkiye'de Dolarizasyon Ä°ndeksine Ä°liÅkin
 GÃ¶stergeler" [Indicators for the Dollarization Process in Turkey].
 Working Paper 05/17, Central Bank of Turkey, Ankara.</BIBTEXT>      </REF>
      <REF>	   <BIBL>2</BIBL>	 <BIBTEXT> AktaÅ, Z.; N. Kaya; and
 Ã. Ãzlale. 2005. "The Price Puzzle in Emerging Markets: Evidence from
 the Turkish Economy Using âModel-Basedâ Risk Premium Derived from
 Domestic Fundamentals." Working Paper 05/02, Central Bank of Turkey,
 Ankara.</BIBTEXT>	</REF>	    <REF>	 <BIBL>3</BIBL>       
 <BIBTEXT> Blanchard, O. 2005. "Fiscal Dominance and Inflation Targeting:
 Lessons from Brazil." In >i>Inflation Targeting, Debt, and the Brazilian
 Experience, 1999 to 2003>/i>, ed. G. Giavazzi, I. Goldfajn, and S.
 Herrera, pp. 49-80. Cambridge, MA: MIT Press.</BIBTEXT>      </REF>	 
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 Markets Finance and Trade>/i>>b>38>/b>, no. 1 (January-February):
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 Challenges Ahead>/i>, ed. N. Tocci and A. Evin, pp. 47-66. Florence:
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 S. Herrera Cambridge, pp. 85-108. Cambridge, MA: MIT Press.</BIBTEXT>	   
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 "Inflation Targeting and Exchange Rate Pass-Through: The Turkish
 Experience." >i>Emerging Markets Finance and Trade>/i>>b>44>/b>, no. 6
 (November-December): 52-66.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>13</BIBL>	<BIBTEXT> Kara, H.; Ã. Ãzlale; B. TuÄer; H. K.
 TuÄer; and E. YÃ¼cel. 2007. "Exchange Rate Regimes and Pass-Through:
 Evidence from the Turkish Economy." >i>Contemporary Economic
 Policy>/i>>b>25>/b>, no. 2: 206-225.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>14</BIBL>	  <BIBTEXT> Ãzatay, F. 2007. "Expansionary Fiscal
 Consolidations: New Evidence from Turkey." TOBB University of Economics
 and Technology, Ankara.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>15</BIBL>	<BIBTEXT> Ãzatay, F., and G. Sak. 2002. "Banking
 Sector Fragility and Turkey's 2000-2001 Financial Crisis." In >i>Brookings
 Trade Forum 2002>/i>, ed. S. M. Collins and D. Rodrik, pp. 121-160.
 Washington, DC: Brookings Institution Press.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> PazarbaÅÄ±oÄlu, C. 2005.
 "Accession to the European Union: Potential Impacts on the Turkish Banking
 Sector." In >i>Turkey: Economic Reforms and Accession to the European
 Union>/i>, ed. B. M. Hoekman and S. Togan, pp. 161-186. Washington, DC:
 IBRD/World Bank.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>  
      <BIBTEXT> Sargent, T. J., and N. Wallace. 1981. "Some Unpleasant
 Monetarist Arithmetic." >i>Federal Reserve Bank of Minneapolis Quarterly
 Review>/i>>b>5>/b>: 1-17.</BIBTEXT>	  </REF>      <REF>	  
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 >i>Towards a New Paradigm in Monetary Economics.>/i> Cambridge: Cambridge
 University Press.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:6:p:38-51




Template-Type: ReDIF-Article 1.0
Author-Name: MARCO GALLEGATI 
Author-X-Name-First: MARCO 
Author-X-Name-Last: GALLEGATI 
Author-Name: MAURO GALLEGATI 
Author-X-Name-First: MAURO 
Author-X-Name-Last: GALLEGATI 
Author-Name: WOLFGANG POLASEK 
Author-X-Name-First: WOLFGANG 
Author-X-Name-Last: POLASEK 
Title:         Business Cycle Fluctuations in Mediterranean Countries (1960-2000)       
Abstract:
       This paper examines business cycle characteristics of Mediterranean
 countries using a set of macroeconomic aggregates (GDP and demand
 components, money, and prices) for fifteen Mediterranean countries over
 the 1960-2000 period. We analyze the main properties of business cycle
 fluctuations (persistence, volatility, asymmetry, and synchronization) and
 suggest that there are various regularities in the characteristics of
 business cycles of countries that are similar in their stage of
 development and/or geographical contiguity. Moreover, we investigate if
 comovements in aggregate time series are robust; that is, if they are
 common to various countries belonging to different economic levels of
 development, but that are geographically contiguous and with economic and
 historical linkages. We find similarities in terms of comovements and
 periodicity with respect to the GDP for consumption and investment among
 the aggregate demand components and, to a lesser degree, the price level
 and the inflation rate. On the other hand, differences among developed and
 developing countries of the Mediterranean region emerge, as both trade
 balance and policy variables are procyclical in many developing countries.
 Such findings may reflect the characteristics of policy making in
 developing countries and those countries' dependence on world demand in
 international trade.	 
Journal: Emerging Markets Finance and Trade 
Pages: 28-47 
Issue: 6 
Volume: 40 
Year: 2004 
Month: 11 
Keywords: business cycle indicators, comovements, Mediterranean countries, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=JG8VFP0VQPUG3XFN 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Agenor, P.-R.; C.J.
 McDermott; and E.S. Prasad. 1999. "Macroeconomic Fluctuations in
 Developing Countries: Some Stylized Facts." International Monetary Fund
 WP/99/35, Washington, DC.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT>Alper, C.E. 2000. "Stylized Facts of
 Business Cycles, Excess Volatility and Capital Flows: Evidence from Mexico
 and Turkey." Working Paper No. ISS/EC-00-07, Bogazici University Center
 for Economics and Econometrics, Istanbul.</BIBTEXT>	  </REF>      <REF>
	<BIBL>3</BIBL>	      <BIBTEXT>Backus, D.K., and P.J. Kehoe. 1992.
 "International Evidence on the Historical Properties of Business Cycles."
 American Economic Review 82, no. 4 (September): 864-888.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT>Basu, S., and A.M.
 Taylor. 1999. "Business Cycles in International Historical Perspective."
 National Bureau of Economic Research, Working Paper No. 4698, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>	  
 <BIBTEXT>Baxter, M., and R.G. King. 1999. "Measuring Business Cycles:
 Approximate Band-Pass Filters for Economic Time Series." Review of
 Economic and Statistics 81, no. 4 (November): 575-593.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Bergman, U.M.;
 M.D. Bordo; and L. Jonung. 1998. "Historical Evidence on Business Cycles:
 The International Experience." In Beyond Shocks: What Causes Business
 Cycles? ed. J.C. Fuhrer and S. Schuh, pp. 65-113. Boston: Federal Reserve
 Bank of Boston.</BIBTEXT>	</REF>	    <REF>	 <BIBL>7</BIBL>    
    <BIBTEXT>Canova, F. 1994. "Detrending and Turning Points." European
 Economic Review 38, no. 3 (April): 614-623.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT>Chadha, B., and E.S. Prasad.
 1994. "Are Prices Countercyclical? Evidence from the G7." Journal of
 Monetary Economics 34, no. 2 (October): 239-257.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>9</BIBL>	     <BIBTEXT>Christiano, L.J., and T.J.
 Fitzgerald. 2003. "The Band-Pass Filter." International Economic Review
 44, no. 2 (May): 435-465.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>10</BIBL>	<BIBTEXT>Christodoulakis, N.; S.P. Dimelis; and T.
 Kollintzas. 1995. "Comparisons of Business Cycles in the EC:
 Idiosyncracies and Regularities." Economica 62, no. 245 (February):
 1-27.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	     
 <BIBTEXT>Fiorito, R., and T. Kollintzas. 1992. "Stylized Facts of Business
 Cycles in the G7 from a Real Business Cycles Perspective." Centre for
 Economic Policy Research Discussion Paper 681, London.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT>Gallegati, M.,
 and M. Gallegati. 2001. "European Business Cycles." Quaderni del
 Dipartimento di Economia No. 149, Università di Ancona, Italy.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>13</BIBL>	    <BIBTEXT>------. 2003.
 "A Cycle-Specific Approach to the Business Cycle: Empirical Evidence from
 the G7." Investigación Económica 62, no. 246 (October-December):
 47-88.</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>       
 <BIBTEXT>Kose, M.A., and R. Riezman. 1998. "External Shocks and Economic
 Dynamics: The Case of African Countries." Journal of African Finance and
 Economic Development 3, no. 1: 1-42.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>15</BIBL>	  <BIBTEXT>------. 2001. "Trade Shocks and
 Macroeconomic Fluctuations in Africa." Journal of Development Economics
 65, no. 1 (June): 55-80.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>16</BIBL>	<BIBTEXT>Kydland, F.E., and E.C. Prescott. 1990.
 "Business Cycles: Real Facts and a Monetary Myth." Federal Reserve Bank of
 Minneapolis Quarterly Review 14 (Spring): 3-18.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT>Maddison, A. 1982. Phases of
 Capitalistic Development. Oxford: Oxford University Press.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT>Mendoza, E.G.
 1995. "The Terms of Trade, the Real Exchange Rate, and Economic
 Fluctuations." International Economic Review 36, no. 1 (February):
 101-137.</BIBTEXT>	 </REF>      <REF>	  <BIBL>19</BIBL>	
 <BIBTEXT>Metin-Ozcan, K.; E. Voyvoda; and E. Yeldan. 2001. "Dynamic of
 Macroeconomic Adjustment in a Globalized Developing Economy: Growth,
 Accumulation and Distribution, Turkey 1969-1998." Revue Canadienne
 d'Etudes du Developpement 22, no. 1: 219-253.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT>Pakko, M.R. 2000. "The
 Cyclical Relationship Between Output and Prices: An Analysis in the
 Frequency Domain." Journal of Money Credit and Banking 32, no. 3 (August):
 382-399.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT>Sichel, D.E. 1993. "Business Cycle Asymmetry: A Deeper Look."
 Economic Inquiry 31, no. 2 (April): 224-236.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT>Stock, J.H., and M.W. Watson.
 1998. "Business Cycle Fluctuations in U.S. Macroeconomic Time Series."
 National Bureau of Economic Research, Working Paper No. 6528, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>23</BIBL>	   
 <BIBTEXT>Turhan-Sayan, G., and S. Sayan. 2002. "Use of Time-Frequency
 Representations in the Analysis of Stock Market Data." In Computational
 Methods in Decision-Making, Economics and Finance, ed. E. Kontoghiorghes,
 B. Rustem, and S. Siokos, pp. 429-452. Dordrecht: Kluwer
 Academic.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:6:p:28-47




Template-Type: ReDIF-Article 1.0
Author-Name: Michael D. McKenzie 
Author-X-Name-First: Michael D. 
Author-X-Name-Last: McKenzie 
Title: Technical Trading Rules in Emerging Markets and the 1997 Asian Currency Crises 
Abstract:
 The ability of simple technical trading rules to forecast future stock
 market movements is considered for seventeen emerging markets, sampled
 from January 1986 to September 2003. Some of the trading rules considered
 generated significant returns; this information could be exploited
 profitably on occasion. Market conditions and trading volume are found to
 be important to determining the usefulness of technical trading rules.
Journal: Emerging Markets Finance and Trade 
Pages: 46-73 
Issue: 4 
Volume: 43 
Year: 2007 
Month: 8 
Keywords: emerging markets, stock market predictability, technical trading strategies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=968M853Q32868K77 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ahmed, P.; K. Beck; and
 E. Goldreyer. 2000. "Can Moving Average Technical Trading Strategies Help
 in Volatile and Declining Markets? A Study of Some Emerging Asian
 Markets." >i>Managerial Finance>/i> 26, no. 6: 49-53.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Ahmed, P.; K.
 Beck; and E. Goldreyer. 2005. "Moving Average Technical Trading Strategies
 for Currencies of Emerging Economies." >i>Managerial Finance>/i> 31, no.
 5: 14-28.</BIBTEXT>	  </REF>      <REF>	   <BIBL>3</BIBL>	
 <BIBTEXT> Bessembinder, H., and K. Chan. 1995. "The Profitability of
 Technical Trading Rules in the Asian Stock Markets." >i>Pacific-Basin
 Finance Journal>/i> 3, no. 2 (July): 257-284.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Bessembinder, H., and K.
 Chan. 1998. "Market Efficiency and the Returns to Technical Analysis."
 >i>Financial Management>/i> 27, no. 2 (Summer): 5-17.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Brock, W.; J.
 Lakonishok; and B. LeBaron. 1992. "Simple Technical Trading Rules and the
 Stochastic Properties of Stock Returns." >i>Journal of Finance>/i> 47, no.
 5 (December): 1731-1764.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>6</BIBL>        <BIBTEXT> Campbell, J.; S. Grossman; and J. Wang.
 1993. "Trading Volume and Serial Correlation in Stock Returns."
 >i>Quarterly Journal of Economics>/i> 108, no. 4 (November):
 905-939.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Chakravarty, S.; C.N. Chiyachantana; and C. Jiang. 2004. "The
 Choice of Trading Venue and Relative Price Impact of Institutional
 Trading: ADRs Versus the Underlying Securities in their Local Markets."
 Paper no. 1172, Krannert Graduate School of Management, Institute for
 Research in the Behavioral, Economic and Management Sciences, West
 Lafayette, IN.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	   
   <BIBTEXT> Chan, K.; A. Hameed; and W. Tong. 2000. "Profitability of
 Momentum Strategies in the International Equity Markets." >i>Journal of
 Financial and Quantitative Analysis>/i> 35, no. 2 (June):
 153-172.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Chang, E.J.; E.J.A. Lima; and B.M. Tabak. 2004. "Testing for
 Predictability in Emerging Equity Markets." >i>Emerging Markets Review>/i>
 5, no. 3: 295-316.</BIBTEXT>	   </REF>      <REF>	    <BIBL>10</BIBL>
	<BIBTEXT> Domowitz, I.; J. Glen; and A. Mahavan. 2001. "Liquidity,
 Volatility and Equity Trading Costs Across Countries and Over Time."
 >i>International Finance>/i> 4, no. 2 (Summer): 221-255.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT>
 Fernandez-Rodriguez, F.; C. Gonzalez-Martel; and S. Sosvilla-Rivero. 2000.
 "On the Profitability of Technical Trading Rules Based on Artificial
 Neural Networks: Evidence from the Madrid Stock Market." >i>Economics
 Letters>/i> 69, no. 1: 89-94.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>12</BIBL>	<BIBTEXT> Ferson, W.E. 1995. "Theory and Empirical
 Testing of Asset Pricing Models." In >i>Handbook of Operations Research
 and Management Science>/i>, vol. 9, ed. R. Jarrow, V. Maksimovic, and W.T.
 Ziemba, pp. 145-191. Amsterdam: North-Holland.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT> Gencay, R.; M. Dacorogna; R.
 Olsen; and O. Pictet. 2003. "Foreign Exchange Trading Models and Market
 Behavior." >i>Journal of Economic Dynamics and Control>/i> 27, no. 6
 (April): 909-935.</BIBTEXT>	  </REF>      <REF>	   <BIBL>14</BIBL> 
       <BIBTEXT> Gunasekarage, A., and D.M. Power. 2001. "The Profitability
 of Moving Average Trading Rules in South Asian Stock Markets." >i>Emerging
 Markets Review>/i> 2, no. 1 (March): 17-33.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Hameed, A., and Y. Kusnadi.
 2002. "Momentum Strategies: Evidence from the Pacific Basin Stock
 Markets." >i>Journal of Financial Research>/i> 25, no. 3 (Fall):
 383-397.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT> Hameed, A., and S. Ting. 2000. "Trading Volume and Short Horizon
 Contrarian Profits: Evidence from the Malaysian Market." >i>Pacific-Basin
 Finance Journal>/i> 8, no. 1 (March): 67-84.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT> Harvey, C.R. 1995.
 "Predictable Risk and Returns in Emerging Markets." >i>Review of Financial
 Studies>/i> 8, no. 3: 773-816.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>18</BIBL>	<BIBTEXT> Ito, A. 1999. "Profits on Technical
 Trading Rules and Time-Varying Expected Returns: Evidence from
 Pacific-Basin Equity Markets." >i>Pacific-Basin Finance Journal>/i> 7, no.
 3 (August): 283-330.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>19</BIBL>	<BIBTEXT> Kang, J.; M.-H. Liu; and S.X. Ni. 2002.
 "Contrarian and Momentum Strategies in the China Stock Market: 1993-2000."
 >i>Pacific-Basin Finance Journal>/i> 10, no. 3 (June): 243-265.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Kwon, K.-Y.,
 and R.J. Kish. 2002a. "A Comparative Study of Technical Trading Strategies
 and Return Predictability: An Extension of Brock, Lakonishok, and LeBaron
 (1992) Using NYSE and NASDAQ Indices." >i>Quarterly Review of Economics
 and Finance>/i> 42, no. 3: 611-631.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>21</BIBL>	 <BIBTEXT> Kwon, K.-Y., and R.J. Kish. 2002b.
 "Technical Trading Strategies and Return Predictability: NYSE." >i>Applied
 Financial Economics>/i> 12, no. 9: 639-653.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT> Lai, M.-M.; K.G.
 Balachandher; and F.M. Nor. 2003. "An Examination of the Random Walk Model
 and Technical Trading Rules in the Malaysian Stock Market." >i>Quarterly
 Journal of Business and Economics>/i> 41, nos. 1-2 (Winter-Spring):
 81-97.</BIBTEXT>      </REF>	   <REF>	<BIBL>23</BIBL>       
 <BIBTEXT> Lo, A.W., and A.C. MacKinlay. 1990. "An Econometric Analysis of
 Nonsynchronous Trading." >i>Journal of Econometrics>/i> 45, nos. 1-2:
 181-211.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT> McKenzie, M.D., and R.W. Faff. 2005. "Modeling Conditional
 Return Autocorrelation." >i>International Review of Financial Analysis>/i>
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       <BIBTEXT> Mills, T.C. 1997. "Technical Analysis and the London Stock
 Exchange: Testing Trading Rules Using the FT30." >i>International Journal
 of Finance and Economics>/i> 2, no. 4 (October): 319-331.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT> Nam, K.; K.M.
 Washer; and Q.C. Chu. 2005. "Asymmetric Return Dynamics and Technical
 Trading Strategies." >i>Journal of Banking and Finance>/i> 29, no. 2
 (February): 391-418.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>27</BIBL>	<BIBTEXT> Neely, C.J. 2003. "Risk-Adjusted,
 Ex-Ante, Optimal Technical Trading Rules in Equity Markets."
 >i>International Review of Economics and Finance>/i> 12, no. 1:
 69-87.</BIBTEXT>      </REF>	   <REF>	<BIBL>28</BIBL>       
 <BIBTEXT> Neely, C.J., and P.A. Weller. 2003. "Intraday Technical Trading
 in the Foreign Exchange Market." >i>Journal of International Money and
 Finance>/i> 22, no. 2 (April): 223-237.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>29</BIBL>	     <BIBTEXT> Parisi, F., and A. Vasquez. 2000.
 "Simple Technical Trading Rules of Stock Returns: Evidence from 1987 to
 1998 in Chile." >i>Emerging Markets Review>/i> 1, no. 2 (September):
 152-164.</BIBTEXT>	 </REF>      <REF>	  <BIBL>30</BIBL>	
 <BIBTEXT> Ratner, M., and R.P.C. Leal. 1999. "Tests of Technical Trading
 Strategies in the Emerging Equity Markets of Latin America and Asia."
 >i>Journal of Banking and Finance>/i> 23, no. 12 (December):
 1887-1905.</BIBTEXT>	   </REF>      <REF>	    <BIBL>31</BIBL>	  
 <BIBTEXT> Ready, H.J. 2002. "Profits from Technical Trading Rules."
 >i>Financial Management>/i> 31, no. 3 (Fall): 43-61.</BIBTEXT>      </REF>
      <REF>	   <BIBL>32</BIBL>	  <BIBTEXT> Reilly, F.K., and K.C.
 Brown. 1994. >i>Investment Analysis and Portfolio Management.>/i> Orlando,
 FL: Dryden Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>33</BIBL> 
       <BIBTEXT> Ruiz, E., and L. Pascual. 2002. "Bootstrapping Financial
 Time Series." >i>Journal of Economic Surveys>/i> 16, no. 3 (July):
 271-300.</BIBTEXT>	 </REF>      <REF>	  <BIBL>34</BIBL>	
 <BIBTEXT> Sosvilla-Rivero, S.; J. Andrada-Felix; and F.
 Fernandez-Rodriguez. 2002. "Further Evidence on Technical Trade
 Profitability and Foreign Exchange Intervention." >i>Applied Economics
 Letters>/i> 9, no. 12: 827-832.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>35</BIBL>	<BIBTEXT> Sullivan, R.; A. Timmermann; and H.
 White. 1999. "Data-Snooping, Technical Trading Rule Performance, and the
 Bootstrap." >i>Journal of Finance>/i> 54, no. 5: 1647-1691.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>36</BIBL>	 <BIBTEXT> Swan, P.L., and
 J. Westerholm. 2003. "The Impact of Market Architectural and Institutional
 Features on World Equity Market Performance." Social Science Research
 Network (available at >a target="_blank"
 href='http://ssrn.com/abstract=410193'>http://ssrn.com/abstract=410193)>/a
 ></BIBTEXT>	  </REF>      <REF>	   <BIBL>37</BIBL>	  <BIBTEXT>
 Swan, P.L., and J. Westerholm. 2005. "Transparency Generally Beats
 Opacity: How Transparency Choice Impacts Global Equity Market
 Performance." Social Science Research Network (available at >a
 target="_blank"
 href='http://ssrn.com/abstract=756024'>http://ssrn.com/abstract=756024)>/a
 ></BIBTEXT>	  </REF>      <REF>	   <BIBL>38</BIBL>	  <BIBTEXT>
 Tian, G.G.; G.H. Wan; and M. Guo. 2002. "Market Efficiency and the Returns
 to Simple Technical Trading Rules: New Evidence from U.S. Equity Market
 and Chinese Equity Markets." >i>Asia-Pacific Financial Markets>/i> 9, nos.
 3-4: 241-258.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:43:y:2007:i:4:p:46-73




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas  Lagoarde-Segot 
Author-X-Name-First: Thomas  
Author-X-Name-Last: Lagoarde-Segot 
Author-Name: Brian M. Lucey 
Author-X-Name-First: Brian M. 
Author-X-Name-Last: Lucey 
Title: The Capital Markets of the Middle East and North African Region: Situation and Characteristics 
Abstract:
 This paper compares market emergence in the Middle and East and North
 African (MENA) region with other emerging markets. We first consider the
 main components of market emergence, including the size, depth, activity,
 and transparency of the market, and proceed to a descriptive analysis.
 Aggregating these observations into four bootstrapped indexes, we analyze
 the factors leading to market emergence with a probit model. We find that
 market size and activity seem to affect market emergence, whereas pricing
 and transparency do not. Finally, decomposing country-level probabilities
 and implementing a cluster analysis suggest that the average process of
 market emergence is more pronounced in the MENA region than it is in other
 emerging areas, such as Latin America and Eastern Europe. Overall, the
 results suggest that the MENA capital markets may attract more capital
 flows in the future. However, the markets are still heterogeneous: Whereas
 Turkey, Israel, Jordan, and Egypt are moving closer to the standards of
 developed countries, Lebanon, Tunisia, and Morocco can still be viewed as
 frontier markets.
Journal: Emerging Markets Finance and Trade 
Pages: 68-81 
Issue: 5 
Volume: 44 
Year: 2008 
Month: 9 
Keywords: emerging markets, Middle East and North Africa, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q2192VP7622110J8 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> American Institute for
 Market Research (AIMR). 2005. >i>Investing in Emerging Markets.>/i>
 Charlottesville, VA: CFA Publications.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>2</BIBL>	   <BIBTEXT> Calinski, T., and J. Harabasz. 1974.
 "A Dendrite Method for Cluster Analysis." >i>Communications in
 Statistics>/i> 3, no. 1: 1-27.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>3</BIBL>        <BIBTEXT> Chordia, T.; R. Roll; and A. Subrahmanyam.
 2005. "Evidence on the Speed of Convergence to Market Efficiency."
 >i>Journal of Financial Economics>/i> 76, no. 2: 271-292.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Choudhry, T.
 2004. "International Transmission of Stock Returns and Volatility:
 Empirical Comparison Between Friends and Foes." >i>Emerging Markets
 Finance and Trade>/i> 40, no. 4 (July-August): 33-52.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Djankov, S.; R.
 LaPorta; F. Lopez-de-Silanes; and A. Shleifer. 2005. "The Law and
 Economics of Self-Dealing." Working Paper 11883, National Bureau of
 Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>6</BIBL>        <BIBTEXT> FÃ¼ss, R. 2002. "The Financial
 Characteristics Between Emerging and Developed Equity Markets." Paper
 presented at the Policy Modelling International Conference, EcoMod
 Network, Brussels, July 4-6.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>7</BIBL>        <BIBTEXT> Henry, C., and R. Springborg. 2004.
 >i>Globalization and the Politics of Development in the Middle-East.>/i>
 Cambridge: Cambridge University Press.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>8</BIBL>	   <BIBTEXT> Hirata, H.; S. H. Kim; and M. A. Kose.
 2004. "Integration and Fluctuations: The Case of MENA." >i>Emerging
 Markets Finance and Trade>/i> 40, no. 6 (November-December):
 48-67.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	     
 <BIBTEXT> Hirata, H.; S. H. Kim; and M. A. Kose. 2007. "Sources of
 Fluctuations: The Case of the MENA." >i>Emerging Markets Finance and
 Trade>/i> 43, no. 1 (January-February): 5-34.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Kumar, P. C., and G. P.
 Tsetsekos. 1999. "The Differentiation of âEmergingâ Equity Markets."
 >i>Applied Financial Economics>/i> 9, no. 5: 443-453.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Lagoarde-Segot,
 T., and B. Lucey. 2007. "Capital Market Integration in the MENA Region."
 >i>Emerging Markets Finance and Trade>/i> 43, no. 3 (May-June):
 34-57.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>       
 <BIBTEXT> Reiffers, J. L., and H. Handoussa. 2001. >i>Rapport du FEMISE
 sur le processus de transition Ã©conomique et la mise en oeuvre du
 partenariat euro-mÃ©diterranÃ©en>/i> [FEMISE Report on the Economic
 Transition Process and the Implementation of the Euro-Mediterranean
 Partnership]. Marseilles: FEMISE.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>13</BIBL>	<BIBTEXT> Ward, J. H. 1963. "Hierarchical Grouping
 to Optimize an Objective Function." >i>Journal of the American Statistical
 Association>/i> 58, no. 301: 236-244.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:44:y:2008:i:5:p:68-81




Template-Type: ReDIF-Article 1.0
Author-Name: KANOKWAN  CHANCHAROENCHAI 
Author-X-Name-First: KANOKWAN  
Author-X-Name-Last: CHANCHAROENCHAI 
Author-Name: SEL  DIBOOGLU 
Author-X-Name-First: SEL  
Author-X-Name-Last: DIBOOGLU 
Title: Volatility Spillovers and Contagion During the Asian Crisis: Evidence from Six Southeast Asian Stock Markets 
Abstract:
 Using a multivariate generalized autoregressive conditional
 heteroskedasticity (GARCH-M) model, we investigate volatility spillovers
 in six Southeast Asian stock markets around the time of the 1997 Asian
 crisis. We focus on interactions with the U.S. market as a world financial
 market, and with the Japanese market as a regional financial market. We
 also use bivariate GARCH-M models to examine the behavior of individual
 markets and their interactions with other markets in the region. All
 models lend support to the idea of the "Asian contagion," which started in
 Thailand and rapidly spread to other markets.
Journal: Emerging Markets Finance and Trade 
Pages: 4-17 
Issue: 2 
Volume: 42 
Year: 2006 
Month: 4 
Keywords: Asian financial crisis, contagion, stock markets, time series models, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=13NRC8NY7QDXUJND 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Baba, Y.; R.F. Engle;
 D.F. Kraft; and K.F. Kroner. 1989. "Multivariate Simultaneous Generalized
 ARCH." Working Paper, University of California, San Diego.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT>Charumilind, C.;
 R. Kali; and Y. Wiwattanakantang. 2006. "Connected Lending: Thailand
 Before the Financial Crisis." Journal of Business 79, no. 1 (January):
 181-218.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Bollerslev, T.; R.F. Engle; and J.M. Wooldridge. 1988. "A Capital
 Asset Pricing Model with Time-Varying Covariance." Journal of Political
 Economy 96, no. 1 (February): 116- 131.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>4</BIBL>	    <BIBTEXT>Chan, K.C.; G.A. Karolyi; and R.M.
 Stulz. 1992. "Global Financial Markets and the Risk Premium on U.S.
 Equity." Journal of Financial Economics 32, no. 2 (October):
 137-167.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT>Kim, M.; A. Szakmary; and I. Mathur. 2000. "Price Transmission
 Dynamics Between ADRs and Their Underlying Foreign Securities." Journal of
 Banking and Finance 24, no. 8 (August): 1359-1382.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>6</BIBL>        <BIBTEXT>Nagayasu, J. 2001.
 "Currency Crisis and Contagion: Evidence from Exchange Rates and Sectoral
 Stock Indices of the Philippines and Thailand." Journal of Asian Economics
 12, no. 4 (Winter): 529-546.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>7</BIBL>        <BIBTEXT>French, K.; W. Schwert; and R. Stambaugh.
 1987. "Expected Returns and Volatility." Journal of Financial Economics
 19, no. 1 (September): 3-30.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>8</BIBL>        <BIBTEXT>Hamao, Y.; R.W. Masulis; and V. Ng. 1990.
 "Correlations in Price Changes and Volatility Across International Stock
 Markets." Review of Financial Studies 3, no. 2 (Summer):
 281-307.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT>Jeon, B.N., and B. Seo. 2003. "The Impact of the Asian Financial
 Crisis on Foreign Exchange Market Efficiency: The Case of East Asian
 Countries." Pacific-Basin Finance Journal 11, no. 4 (September):
 509-525.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT>Scholes, M., and J. Williams. 1977. "Estimating Betas from
 Nonsynchronous Data." Journal of Financial Economics 5, no. 3 (December):
 309-327.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT>Yang, T., and J.J. Lim. 2004. "Crisis, Contagion, and East Asian
 Stock Markets." Review of Pacific Basin Financial Markets and Policies 7,
 no. 1 (March): 119-151.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>12</BIBL>	<BIBTEXT>Cohen, K.; G. Hawawini; S. Maier; R.
 Schwartz; and D. Whitcomb. 1986. The Microstructure of Security Markets.
 Englewood Cliffs, NJ: Prentice Hall.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>13</BIBL>	  <BIBTEXT>Wei, K.C.J.; Y.-J. Liu; C.-C. Yang; and
 G.-S. Chaung. 1995. "Volatility and Price Change Spillover Effects Across
 the Developed and Emerging Markets." Pacific-Basin Finance Journal 3, no.
 1 (May): 113-136.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:2:p:4-17




Template-Type: ReDIF-Article 1.0
Author-Name: Chuang Yuang Lin 
Author-X-Name-First: Chuang Yuang 
Author-X-Name-Last: Lin 
Author-Name: Hung Ta Lee 
Author-X-Name-First: Hung Ta 
Author-X-Name-Last: Lee 
Author-Name: Chun Lin Lee 
Author-X-Name-First: Chun Lin 
Author-X-Name-Last: Lee 
Title: One More Step, Some More Performance? An Empirical Study on Initial Public Offerings in the Taiwan Emerging Stock Market 
Abstract:
 This paper investigates the performance effects of initial public offering
 policies in Taiwan's stock market from 1997 to 2006. We divide the listing
 channels into six models and test performance differences under each
 model, using nonparameter tests. We find that indirect listing methods
 perform better than do direct methods. The results suggest that the longer
 the processes take for corporations to terminate one market and move to
 the target final market, the better the firm performance. The results have
 important policy implications for the ability of a newly established
 emerging stock market initiative to channel capital into financial
 markets.
Journal: Emerging Markets Finance and Trade 
Pages: 6-18 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: emerging stock markets, initial public offering, nonparameter tests, stock returns, Taiwan, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=4V2281PU86512347 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abhyankar, A.; H. C.
 Chen; and K. Y. Ho. 2006. "The Long-Run Performance of Initial Public
 Offerings: Stochastic Dominance Criteria." >i>Quarterly Review of
 Economics and Finance>/i> 46, no. 4 (September): 620-637.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Akhigbe, A.; J.
 Johnston; and J. Madura. 2006. "Long-Term Industry Performance Following
 IPOs." >i>Quarterly Review of Economics and Finance>/i> 46, no. 4
 (September): 638-651.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>3</BIBL>        <BIBTEXT> Benveniste, L. M.; W. Y. Busaba; and W.
 Wilhelm. 2002. "Information Externalities in Primary Equity Markets."
 >i>Journal of Financial Intermediation>/i> 11, no. 1 (January):
 61-87.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT> Brav, A.; C. Geczy; and P. A. Gompers. 2000. "Is the Abnormal
 Return Following Equity Issuances Anomalous?" >i>Journal of Financial
 Economics>/i> 56, no. 2 (May): 209-249.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>5</BIBL>	    <BIBTEXT> Bruner, R.; S. Chaplinsky; and L.
 Ramchand. 2006. "Coming to America: IPOs from Emerging Market Issuers."
 >i>Emerging Markets Review>/i> 7, no. 3 (September): 191-212.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>6</BIBL>	  <BIBTEXT> Eckbo, B. E.,
 and O. Norli. 2005. "Liquidity Risk, Leverage, and Long-Run IPO Returns."
 >i>Journal of Corporate Finance>/i> 11, no. 1 (March): 1-35.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT> Lowry, M., and
 G. W. Schwert. 2002. "IPO Market Cycles: Bubbles or Sequential Learning."
 >i>Journal of Finance>/i> 57, no. 3 (June): 1171-1201.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Lowry, M., and G.
 W. Schwert. 2004. "Is the IPO Pricing Process Efficient?" >i>Journal of
 Financial Economics>/i> 71, no. 1 (January): 3-26.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>9</BIBL>        <BIBTEXT> Ritter, J. 1991. "The
 Long-Run Performance of Initial Public Offerings." >i>Journal of
 Finance>/i> 46, no. 1 (March): 3-27.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:6-18




Template-Type: ReDIF-Article 1.0
Author-Name: Luis  Muga 
Author-X-Name-First: Luis  
Author-X-Name-Last: Muga 
Author-Name: Rafael  SantamarÃ­a 
Author-X-Name-First: Rafael  
Author-X-Name-Last: SantamarÃ­a 
Title: The Momentum Effect in Latin American Emerging Markets 
Abstract:
 We find that momentum strategies yield profits in Latin American emerging
 markets. Both stock type and country play a major role in explaining the
 momentum effect in these markets, but stock type is much more important.
 For risk-averse investors, winner portfolios stochastically dominate loser
 portfolios in these markets, implying that there are no asset-pricing
 models consistent with risk-averse investors that can rationalize the
 momentum effect. The results obtained via the bootstrap procedure without
 replacement also uphold this conclusion.
Journal: Emerging Markets Finance and Trade 
Pages: 24-45 
Issue: 4 
Volume: 43 
Year: 2007 
Month: 8 
Keywords: bootstrap tests, emerging markets, momentum, stochastic dominance, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H138327TRT0J1278 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ang, A.; J. Chen; and
 Y. Xing. 2002. "Downside Risk and the Momentum Effect." National Bureau of
 Economics Research Working Paper no. W8643, Cambridge, MA (available at >a
 target="_blank"
 href='http://ssrn.com/abstract=294082'>http://ssrn.com/abstract=294082)xa>
 /a></BIBTEXT>	    </REF>	<REF>	     <BIBL>2</BIBL>	  
 <BIBTEXT> Avramov, D., and T. Chordia. 2006. "Asset Pricing Models and
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 1001-1040.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL>	 
 <BIBTEXT> Barberis, N.; A. Shleifer; R. Vishny. 1998. "A Model of Investor
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 <BIBTEXT> Barrett, G., and S. Donald. 2003. "Consistent Test for
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   </REF>      <REF>	    <BIBL>5</BIBL>	  <BIBTEXT> Bekaert, G.,
 and M.S. Urias. 1999. "Is There a Free Lunch in Emerging Markets Equities?
 In Some Markets, but Investors Need to Be More Selective Going Forward."
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 "On Persistence in Mutual Fund Performance." >i>Journal of Finance>/i> 52,
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  <BIBTEXT> Chan, K.; A. Hameed; W. Tong. 2000. "Profitability of Momentum
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 <BIBTEXT> De Bondt, W.F.M., and R.H. Thaler. 1985. "Does the Stock Market
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 Spanish Stock Market." >i>Investigaciones EconÃ³micas>/i> 31, no. 2:
 323-340.</BIBTEXT>	 </REF>      <REF>	  <BIBL>42</BIBL>	
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 and Momentum: Some Evidence for the Spanish Stock Market During the
 1990s." >i>Applied Financial Economics>/i> 17, no. 6: 521-540.</BIBTEXT>  
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 L. Swinkels; and M. Verbeek. 2004. "Do Countries or Industries Explain
 Momentum in Europe?" >i>Journal of Empirical Finance>/i> 11, no. 4:
 461-481.</BIBTEXT>	 </REF>      <REF>	  <BIBL>44</BIBL>	
 <BIBTEXT> Richards, A.J. 1997. "Winner-Loser Reversals in National Stock
 Market Indices: Can They Be Explained?" >i>Journal of Finance>/i> 52, no.
 5: 2129-2144.</BIBTEXT>      </REF>	  <REF>        <BIBL>45</BIBL>	   
   <BIBTEXT> Rouwenhorst, K.G. 1998. "International Momentum Strategies."
 >i>Journal of Finance>/i> 53, no. 1: 267-284.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>46</BIBL>	     <BIBTEXT> Rouwenhorst, K.G. 1999.
 "Local Return Factors and Turnover in Emerging Stocks Markets." >i>Journal
 of Finance>/i> 54, no. 4: 1439-1464.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>47</BIBL>	  <BIBTEXT> Shalit, H., and S. Yitzhaki. 1994.
 "Marginal Conditional Stochastic Dominance." >i>Management Science>/i> 40,
 no. 5: 670-684.</BIBTEXT>	</REF>	    <REF>	 <BIBL>48</BIBL>   
     <BIBTEXT> Shen, Q.; A.C. Szakmary; and S.C. Sharma. 2005. "Momentum
 and Contrarian Strategies in International Stock Markets. Further
 Evidence." >i>Journal of Multinational Financial Management>/i> 15, no. 3:
 235-255.</BIBTEXT>	 </REF>      <REF>	  <BIBL>49</BIBL>	
 <BIBTEXT> Van der Hart, J.; E. Slagter; and D. Van Dijk. 2003. "Stock
 Selection Strategies in Emerging Markets." >i>Journal of Empirical
 Finance>/i> 10, no. 1: 105-132.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:43:y:2007:i:4:p:24-45




Template-Type: ReDIF-Article 1.0
Author-Name: BERND LUCKE 
Author-X-Name-First: BERND 
Author-X-Name-Last: LUCKE 
Title:         Real Interest Rates and Productivity Shocks : Why Are Business Cycles Negatively Correlated Between the European Union and Jordan?       
Abstract:
       Why is there a negative correlation between business cycles in
 Jordan and the EU15? This paper explores the hypothesis that total factor
 productivity (TFP) increases in Europe spill over to Jordan only if
 embodied in foreign direct investment, but that European TFP growth
 negatively affects the Jordanian economy through higher world interest
 rates. This unambiguously lowers Tobin's q and has a negative income
 effect if net foreign asset holdings are negative. A dynamic stochastic
 equilibrium business cycle model is used to quantify the importance of
 this transmission channel. Simulations with observed exogenous impulses
 suggest a reasonably good performance of the model economy, but real
 interest rate shocks alone are too weak to account for the negative
 correlation. However, in conjunction with oil price-related shocks to
 transfers and the government share, the puzzle may be resolved.    
Journal: Emerging Markets Finance and Trade 
Pages: 82-94 
Issue: 6 
Volume: 40 
Year: 2004 
Month: 11 
Keywords: business cycle transmission, DSGE, Euro-Mediterranean partnership, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XKRTUVDG9GDU0JL8 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abel, A., and O.
 Blanchard. 1983. "An Intertemporal Equilibrium Model of Savings and
 Investment." Econometrica 51, no. 3: 675-692.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Artis, M.J., and W. Zhang.
 1995. "International Business Cycles and the ERM: Is There a European
 Business Cycle?" European University Institute, Florence.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>Backus, D.K., and
 P.J. Kehoe. 1992. "International Evidence on the Historical Properties of
 Business Cycles." American Economic Review 82 (September):
 864-888.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>Backus, D.K.; P.J. Kehoe; and F.E. Kydland. 1992. "International
 Real Business Cycles." Journal of Political Economy 100 (August):
 745-775.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT>Baxter, M., and M. Crucini. 1993. "Explaining Saving/Investment
 Correlations." American Economic Review 83 (June): 416-436.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Blankenau, W.;
 M.A. Kose; and K.-M. Yi. 2001. "Can World Real Interest Rates Explain
 Business Cycles in a Small Open Economy?" Journal of Economic Dynamics and
 Control 25 (June): 867-889.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>7</BIBL>        <BIBTEXT>Correia, I.; J.C. Neves; and S.T. Rebelo.
 1995. "Business Cycles in a Small Open Economy." European Economic Review
 39 (June): 1089-1113.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>8</BIBL>        <BIBTEXT>Department of Statistics. 2000.
 StatisticalYearbook. Amman, Jordan: Department of Statistics.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>9</BIBL>	  <BIBTEXT>Greenwood, J.;
 Z. Hercowitz; and G.W. Huffman. 1988. "Investment, Capacity Utilization
 and the Real Business Cycle." American Economic Review 78 (June):
 402-417.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT>Mendoza, E.G. 1991. "Real Business Cycles in a Small Open
 Economy." American Economic Review 81 (September): 797-818.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT>Schmitt-Grohé, S.
 1998. "The International Transmission of Economic Fluctuations: Effects of
 U.S. Business Cycles on the Canadian Economy." Journal of International
 Economics 44 (April): 257-287.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>12</BIBL>	<BIBTEXT>Uhlig, H. 1999. "A Toolkit for Analysing
 Nonlinear Dynamic Stochastic Models Easily." In Computational Methods for
 the Study of Dynamic Economies, ed. R. Marimon and A. Scott, pp. 30-61.
 Oxford: Oxford University Press.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>13</BIBL>	<BIBTEXT>Zimmermann, C. 1997. "International Real
 Business Cycles Among Heterogenous Countries." European Economic Review
 41, no. 2: 319-356.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:6:p:82-94




Template-Type: ReDIF-Article 1.0
Author-Name: Hongbo  Pan 
Author-X-Name-First: Hongbo  
Author-X-Name-Last: Pan 
Author-Name: Xinping  Xia 
Author-X-Name-First: Xinping  
Author-X-Name-Last: Xia 
Author-Name: Minggui  Yu 
Author-X-Name-First: Minggui  
Author-X-Name-Last: Yu 
Title: Expropriation: Evidence from Rights Issues in China 
Abstract:
 This paper examines the expropriation of tradable shareholders in
 rightsissuing firms with the split share structure in China. Using a
 sample of 444 rights issues from 1999 to 2004, we find that the change in
 wealth of tradable shareholders is negatively correlated with the change
 in wealth of nontradable shareholders, consistent with an expropriation
 effect. Additional evidence indicates that the expropriation effect in
 rights issues is exacerbated when the firm is not ultimately controlled by
 the government, the nontradable shareholders do not subscribe the shares
 of rights issues, or the firm has a large second-largest shareholder.
Journal: Emerging Markets Finance and Trade 
Pages: 5-20 
Issue: 1 
Volume: 44 
Year: 2008 
Month: 1 
Keywords: China rights issues, corporate governance, expropriation, split share structure, state-owned enterprise, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C5T4L212R4247U67 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bae, K. H.; J. K. Kang;
 and J. M. Kim. 2002. "Tunneling or Value Added? Evidence from Mergers by
 Korean Business Groups." >i>Journal of Finance>/i> 57, no. 6:
 2695-2740.</BIBTEXT>	   </REF>      <REF>	    <BIBL>2</BIBL>	 
 <BIBTEXT> Boubaker, S. 2005. "Ownership-Control Discrepancy and Firm
 Value: Evidence from France." Working paper, Paris XII
 University.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>	  
 <BIBTEXT> Brown, S. J., and J. B. Warner. 1985. "Using Daily Stock
 Returns: The Case of Event Studies." >i>Journal of Financial Economics>/i>
 14, no. 1: 3-31.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>   
     <BIBTEXT> Buysschaert, A.; M. Deloof; and M. Jegers. 2004. "Equity
 Sales in Belgian Corporate Groups: Expropriation of Minority Shareholders?
 A Clinical Study." >i>Journal of Corporate Finance>/i> 10, no. 1:
 81-103.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>       
 <BIBTEXT> Cheung, Y. L.; P. R. Rau; and A. Stouraitis. 2006a. "Tunneling,
 Propping, and Expropriation: Evidence from Connected Party Transactions in
 Hong Kong." >i>Journal of Financial Economics>/i> 82, no. 2:
 343-386.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Cheung, Y. L.; P. R. Rau; and A. Stouraitis. 2006b. "How Does
 the Grabbing Hand Grab? Tunneling Assets from Chinese Listed Companies to
 the State." Working Paper, City University of Hong Kong.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Claessens, S.; S.
 Djankov; J. P.H. Fan; and L. H.P. Lang. 2002. "Disentangling the Incentive
 and Entrenchment Effects of Large Shareholdings." >i>Journal of
 Finance>/i> 57, no. 6: 2741-2771.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT> Cull, R., and L. C. Xu. 2005.
 "Institutions, Ownership and Finance: The Determinants of Profit
 Reinvestment Among Chinese Firms." >i>Journal of Financial Economics>/i>
 77, no. 1: 117-146.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>
	<BIBTEXT> Dyck, A., and L. Zingales. 2004. "Private Benefits of
 Control: An International Comparison." >i>Journal of Finance>/i> 59, no.
 2: 537-600.</BIBTEXT>	    </REF>	<REF>	     <BIBL>10</BIBL>	   
 <BIBTEXT> Eckbo, E., and R. Masulis. 1992. "Adverse Selection and the
 Rights Offer Paradox." >i>Journal of Financial Economics>/i> 32, no. 3:
 293-332.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Faccio, M.; L. H.P. Lang; and L. Young. 2001. "Dividends and
 Expropriation." >i>American Economic Review>/i> 91, no. 1:
 54-78.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>       
 <BIBTEXT> Fisman, R. 2001. "Estimating the Value of Political
 Connections." >i>American Economic Review>/i> 91, no. 4:
 1095-1102.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT> Heinkel, R., and E. S. Schwartz. 1986. "Rights Versus
 Underwritten Offerings: An Asymmetric Information Approach." >i>Journal of
 Finance>/i> 41, no. 1: 1-18.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>14</BIBL>	<BIBTEXT> Hovey, M.; L. Li; and T. Naughton. 2003.
 "The Relationship Between Valuation and Ownership of Listed Firms in
 China." >i>Corporate Governance: An International Review>/i> 11, no. 2:
 112-122.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Johnson, S., and T. Mitton. 2003. "Cronyism and Capital
 Controls: Evidence from Malaysia." >i>Journal of Financial Economics>/i>
 67, no. 2: 351-382.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>16</BIBL>	<BIBTEXT> Kabir, R., and P. Roosenboom. 2003. "Can
 the Stock Market Anticipate Future Operating Performance? Evidence from
 Equity Rights Issue." >i>Journal of Corporate Finance>/i> 9, no. 1:
 93-113.</BIBTEXT>	</REF>	    <REF>	 <BIBL>17</BIBL>       
 <BIBTEXT> La Porta, R.; F. Lopez-de-Silanes; A. Shleifer; and R. W.
 Vishny. 2000. "Agency problems and dividend policies around the world."
 >i>Journal of Finance>/i> 55, no. 1: 1-33.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> La Porta, R.; F.
 Lopez-de-Silanes; A. Shleifer; and R. W. Vishny. 2002. "Investor
 Protection and Corporate Valuation." >i>Journal of Finance>/i> 57, no. 3:
 1147-1170.</BIBTEXT>	   </REF>      <REF>	    <BIBL>19</BIBL>	  
 <BIBTEXT> Lee, C. W., and X. Xiao. 2004. "Cash Dividends in China:
 Earnings Management, Liquidating, and Tunneling." Working paper, Tulane
 University, New Orleans.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>20</BIBL>	<BIBTEXT> Malatesta, P. 1983. "The Wealth Effect of
 Merger Activity and the Objective Function of Merging Firms." >i>Journal
 of Financial Economics>/i> 11, nos. 1-4: 155-182.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>21</BIBL>        <BIBTEXT> Mikkelson, W. H., and M.
 M. Partch. 1986. "Valuation Effects of Security Offerings and the Issuance
 Process." >i>Journal of Financial Economics>/i> 15, nos. 1-2:
 31-60.</BIBTEXT>      </REF>	   <REF>	<BIBL>22</BIBL>       
 <BIBTEXT> Nenova, T. 2002. "The Value of Corporate Votes and Control
 Benefits: A Cross-Country Analysis." >i>Journal of Financial Economics>/i>
 68, no. 3: 325-352.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>23</BIBL>	<BIBTEXT> Roberts, B. E. 1990. "A Dead Senator
 Tells No Lies: Seniority and the Distribution of Federal Benefits."
 >i>American Journal of Political Science>/i> 34, no. 1: 31-58.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>24</BIBL>	    <BIBTEXT> Spiess, D.,
 and J. Affleck-Graves. 1995. "Underperformance in Long-Run Stock Returns
 Following Seasoned Equity Offerings." >i>Journal of Financial
 Economics>/i> 38, no. 3: 243-267.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>25</BIBL>	<BIBTEXT> Su, D. W. 2005. "Corporate Finance and
 State Enterprise Reform in China." >i>China Economic Review>/i> 16, no. 2:
 118-148.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT> Tenev, S.; C. Zhang; and L. Brefort. 2002. "Corporate Governance
 and Enterprise Reform in China: Building the Institutions of Modern
 Markets." World Bank and the International Finance Corporation,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>27</BIBL>   
     <BIBTEXT> Tsangarakis, N. 1996. "Shareholder Wealth Effects of Equity
 Issues in Emerging Markets: Evidence from Rights Offerings in Greece."
 >i>Financial Management>/i> 25, no. 3: 21-32.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:44:y:2008:i:1:p:5-20




Template-Type: ReDIF-Article 1.0
Author-Name: ENDER  SU 
Author-X-Name-First: ENDER  
Author-X-Name-Last: SU 
Author-Name: THOMAS W.  KNOWLES 
Author-X-Name-First: THOMAS W.  
Author-X-Name-Last: KNOWLES 
Title: Asian Pacific Stock Market Volatility Modeling and Value at Risk Analysis 
Abstract:
 The potential for stock market growth in Asian Pacific countries has
 attracted foreign investors. However, higher growth rates come with higher
 risk. We apply value at risk (VaR) analysis to measure and analyze stock
 market index risks in Asian Pacific countries, exposing and detailing both
 the unique risks and system risks embedded in those markets. To implement
 the VaR measure, it is necessary to perform "volatility modeling" by
 mixture switch, exponentially weighted moving average (EWMA), or
 generalized autoregressive conditional heteroskedasticity (GARCH) models.
 After estimating the volatility parameters, we can calibrate the VaR
 values of individual and system risks. Empirically, we find that, on
 average, Indonesia and Korea exhibit the highest VaRs and VaR sensitivity,
 and currently, Australia exhibits relatively low values. Taiwan is liable
 to be in high-state volatility. In addition, the Kupiec test indicates
 that the mixture switch VaR is superior to delta normal VaR; the quadratic
 probability score (QPS) shows that the EWMA is inclined to underestimate
 the VaR for a single series, and GARCH shows no difference from GARCH t
 and GARCH generalized error distribution (GED) for a multivariate VaR
 estimate with more assets.
Journal: Emerging Markets Finance and Trade 
Pages: 18-62 
Issue: 2 
Volume: 42 
Year: 2006 
Month: 4 
Keywords: Asian Pacific countries, EWMA, GARCH, Kupiec test, Markov switch, quadratic probability score, VaR sensitivity analysis, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8FA1WETRCAKTVR6D 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Baillie, R.T., and T.
 Bollerslev. 1990. "A Multivariate Generalized ARCH Approach to Modelling
 Risk Premia in Forward Foreign Exchange Rate Markets." Journal of
 International Money and Finance 9, no. 3: 309-324.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>2</BIBL>        <BIBTEXT>Apergis, N., and S.
 Eleptheriou. 2001. "Stock Returns and Volatility: Evidence from the Athens
 Stock Market Index." Journal of Economics and Finance 25, no. 1:
 50-61.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT>Bali, Turan G. 2003. "An Extreme Value Approach to Estimating
 Volatility and Value at Risk." Journal of Business 76, no. 1:
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 <BIBTEXT>Blattberg, R., and N. Gonedes. 1974. "A Comparison of Stable and
 Student Distributions as Statistical Models for Stock Prices." Journal of
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     <BIBL>8</BIBL>	   <BIBTEXT>Chiang, T.C., and S.-C. Doong. 2001.
 "Empirical Analysis of Stock Returns and Volatility: Evidence from Seven
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 "Conditional Variance and the Risk Premium in the Foreign Exchange
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 and J. Pan. 1997. "An Overview of Value at Risk." Journal of Derivatives
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     <BIBTEXT>Engle, R.F. 1982. "Autoregressive Conditional
 Heteroscedasticity with Estimates of the Variance of United Kingdom
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 and Testing in Time-Series Regression Models with Heteroscedastic
 Disturbances." Journal of Econometrics 20, no. 1: 135-157. Diebold, F.X.
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 "Endogenous Risk in a Portfolio Balance Rational Expectations Model of the
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 <BIBTEXT>Golub, B.W., and L.M. Tilman. 1997. "Measuring Yield Curve Risk
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 Non-Normality a Problem? The Case of 15 Times Series from Emerging
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 "Risk2: Measuring the Risk in Value at Risk." Financial Analysts Journal
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       <BIBTEXT>Fama, E. 1965. "The Behaviour of Stock Market Prices."
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 1091-1120.</BIBTEXT>	   </REF>      <REF>	    <BIBL>34</BIBL>	  
 <BIBTEXT>Garman, M.B. 1996. "Improving on VaR." RISK 9, no. 5:
 61-63.</BIBTEXT>      </REF>	   <REF>	<BIBL>35</BIBL>       
 <BIBTEXT>------. 1997a. "Ending the Search for Component VaR." Working
 Paper, Financial Engineering Associates (available at
 www.fea.com/resources/articles.asp).</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>36</BIBL>	  <BIBTEXT>------. 1997b. "Taking VAR to Pieces."
 RISK 10, no. 10: 70-71.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>37</BIBL>	<BIBTEXT>Giovannini, A., and P. Jorion. 1987. "The
 Time-Variation of Risk and Returns in the Foreign Exchange and Stock
 Markets." Journal of Finance 44, no. 2: 307-325.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>38</BIBL>	      <BIBTEXT>------. 1994. Time Series
 Analysis. Princeton, NJ: Princeton University Press.</BIBTEXT>      </REF>
      <REF>	   <BIBL>39</BIBL>	  <BIBTEXT>Hopper, G.P. 1996.
 "Value at Risk: A New Methodology for Measuring Portfolio Risk." Business
 Review: Federal Reserve Bank of Philadelphia (July-August):
 19-31.</BIBTEXT>      </REF>	   <REF>	<BIBL>40</BIBL>       
 <BIBTEXT>Hull, J., and A. White. 1998. "Value at Risk When Daily Changes
 in Market Variables Are Not Normal Distributed." Journal of Derivatives 5,
 no. 3: 9-19.</BIBTEXT>      </REF>	 <REF>	      <BIBL>41</BIBL>	   
  <BIBTEXT>Illueca, M., and J.A. Lafuente. 2002. "International Stock
 Market Linkages: A Factor Analysis Approach." Journal of Asset Management
 3, no. 3: 253-265.</BIBTEXT>	   </REF>      <REF>	    <BIBL>42</BIBL>
	<BIBTEXT>Hamilton, J.D. 1991. "A Quasi-Bayesian Approach to
 Estimating Parameters for Mixtures of Normal Distributions." Journal of
 Business and Economic Statistics 9, no. 1: 27-39.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>43</BIBL>        <BIBTEXT>Jordan, J.V., and R.J.
 Mackay. 1995. "Assessing Value at Risk for Equity Portfolios: Implementing
 Alternative Techniques." Working Paper, George Washington University,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>44</BIBL>   
     <BIBTEXT>Engle, R.; D. Lilien; and R. Robins. 1987. "Estimating
 Time-Varying Risk Premia in the Term Structure: The ARCH-M Model."
 Econometrica 55, no. 2: 391-407.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:2:p:18-62




Template-Type: ReDIF-Article 1.0
Author-Name: Albert  Jaeger 
Author-X-Name-First: Albert  
Author-X-Name-Last: Jaeger 
Author-Name: Ludger  Schuknecht 
Author-X-Name-First: Ludger  
Author-X-Name-Last: Schuknecht 
Title: Boom-Bust Phases in Asset Prices and Fiscal Policy Behavior 
Abstract:
 Boom and bust phases in asset prices have become a pervasive feature of
 macroeconomic developments in many advanced economies. This paper studies
 fiscal policy during boom-bust phases in asset prices and draws several
 conclusions. First, expansions and contractions in economic activity
 during such boom-bust phases tend to be highly persistent, cyclical
 turning points are harder to forecast, and the margins of error for output
 gap estimates can be large. Second, conventional estimates of revenue
 elasticities seem not to allow an accurate assessment of fiscal stance or
 the strength of underlying fiscal positions during boom-bust phases.
 Third, boom-bust phases tend to exacerbate already existing procyclical
 policy biases, as well as political-economy biases, toward higher spending
 and public-debt ratios.
Journal: Emerging Markets Finance and Trade 
Pages: 45-66 
Issue: 6 
Volume: 43 
Year: 2007 
Month: 11 
Keywords: asset prices, boom-bust cycles, cyclical adjustment, deficit bias, fiscal policy, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=4G3157151610405L 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bernanke, B.; M.
 Gertler; and S. Gilchrist. 1999. "The Financial Accelerator in a
 Quantitative Business Cycle Framework." In >i>Handbook of
 Macroeconomics>/i>, vol. 1, ed. J.B.Taylor and M. Woodford, pp. 1341-1393.
 Amsterdam: North Holland.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Bordo, M., and O. Jeanne. 2002.
 "Boom-Busts in Asset Prices, Economic Instability, and Monetary Policy."
 Working Paper 8966, National Bureau of Economic Research, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>	  
 <BIBTEXT> Borio, C., and P. Lowe. 2002. "Asset Prices, Financial and
 Monetary Stability: Exploring the Nexus," Working Paper no. 114, Bank for
 International Settlements, Basel.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>4</BIBL>        <BIBTEXT> Borio, C.E.V.; N. Kennedy; and S.D.
 Prowse. 1994. "Exploring Aggregate Asset Price Fluctuations Across
 Countries: Measurement, Determinants, and Monetary Policy Implications."
 BIS Economic Paper no. 40, Basel.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>5</BIBL>        <BIBTEXT> Bouthevillain, C.; P. Cour-Thimann; G. van
 den Dool; P.H. De Cos; G. Langenus; M. Mohr; S. Momigliano; and M. Tujula.
 2001. "Cyclically Adjusted Budget Balances: An Alternative Approach."
 Working Paper 77, European Central Bank, Frankfurt.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Briotti, G. 2004. "Fiscal
 Adjustment Between 1991 and 2002: Stylized Facts and Policy Implications."
 ECB Occasional Paper no. 9, European Central Bank, Frankfurt,
 February.</BIBTEXT>	  </REF>      <REF>	   <BIBL>7</BIBL>	
 <BIBTEXT> Detken, C., and F. Smets. 2004. "Asset Price Booms and Monetary
 Policy." ECB Working Paper 364, European Central Bank, Frankfurt. [Also
 published in >i>Macroeconomic Policies in the World Economy>/i>, ed. H.
 Siebert, pp. 228-232. Berlin: Springer.]</BIBTEXT>	 </REF>      <REF> 
       <BIBL>8</BIBL>	     <BIBTEXT> Eschenbach, F., and L. Schuknecht.
 2002. "The Fiscal Costs of Financial Stability Revisited." Working Paper
 191, European Central Bank, Frankfurt.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>9</BIBL>	   <BIBTEXT> Eschenbach, F., and L. Schuknecht.
 2004. "Budgetary Risks from Real Estate and Stock Markets." >i>Economic
 Policy>/i> 19, no. 39: 313-346.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>10</BIBL>	<BIBTEXT> Gali, J., and R. Perotti. 2003. "Fiscal
 Policy and Monetary Integration in Europe." Working Paper 9773, National
 Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Harding, D., and A. Pagan.
 2002. "Dissecting the Cycle: A Methodological Investigation." >i>Journal
 of Monetary Economics>/i> 49 (March): 365-381.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT> International Monetary Fund.
 2000. >i>World Economic Outlook.>/i> Washington, DC.</BIBTEXT>      </REF>
      <REF>	   <BIBL>13</BIBL>	  <BIBTEXT> International Monetary
 Fund. 2003a. "Deflation: Determinants, Risks, and Policy Options, Findings
 of an Inter-departmental Task Force." Occasional paper, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>14</BIBL>	   
 <BIBTEXT> International Monetary Fund. 2003b. >i>World Economic
 Outlook.>/i> Washington, DC.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>15</BIBL>	<BIBTEXT> Jonung, L.; M. Tujula; and L. Schuknecht.
 2005. "The Boom-Bust Cycle in Finland and Sweden 1984-1995 in an
 International Perspective." European Commission Economic Paper 237, DG
 ECFIN, Brussels, Belgium.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>16</BIBL>	<BIBTEXT> Organization for Economic Cooperation and
 Development (OECD). 2003. "Re-Assessing Cyclically-Adjusted Balances." In
 >i>Economic Outlook>/i> no. 73, pp. 24-25. Paris.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>17</BIBL>        <BIBTEXT> Van den Noord, P. 2000.
 "The Size and Role of Automatic Fiscal Stabilizers in the 1990s and
 Beyond." OECD Economics Department Working Paper No. 230, Organization for
 Economic Cooperation and Development, Paris.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> Van den Noord, P. 2003. "Tax
 Incentives and House Price Volatility in the Euro Area: Theory and
 Evidence." OECD Economics Department Working Paper no. 356, Organization
 for Economic Cooperation and Development, Paris.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>19</BIBL>	      <BIBTEXT> Wolswijk, G. 2006.
 "Determinants of Mortgage Debt Growth in EU Countries." >i>European
 Journal of Housing Policy>/i> 6, no. 2 (August): 131-149.</BIBTEXT>	 
 </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:6:p:45-66




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 2 
Volume: 40 
Year: 2004 
Month: 3 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=TD0AP5P072CBTX2P 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:40:y:2004:i:2:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Da  Chen 
Author-X-Name-First: Chun-Da  
Author-X-Name-Last: Chen 
Author-Name: Wan-Wei  Tang 
Author-X-Name-First: Wan-Wei  
Author-X-Name-Last: Tang 
Title: Are They Hedgers or Speculators? Evidence from South Korea's Political Elections 
Abstract:
 This study uses a simultaneous equation model based on a three-stage least
 squares estimation to offer new empirical evidence that investors are
 hedgers or speculators during South Korea's elections. Major investor
 groups include individuals, securities companies, and foreigners in the
 Korea Composite Stock Price Index (KOSPI 200) market. The results show
 that cash market volatility and futures market activity have lead
 behaviors with one another. However, the contemporaneous variables of cash
 market volatility and options market activity have only unidirectional
 causality. Most investors will trade futures and options contracts for
 speculating within the entire sample period. During political election
 periods, investors prefer to trade options contracts for hedging rather
 than futures contracts.
Journal: Emerging Markets Finance and Trade 
Pages: 19-30 
Issue: 1 
Volume: 45 
Year: 2009 
Month: 1 
Keywords: hedgers, political election, South Korea financial market, speculators, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G370X11826611223 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alesina, A., and J.
 Sachs. 1988. "Political Parties and the Business Cycle in the United
 States, 1948-1984." >i>Journal of Money, Credit and Banking>/i> 20, no. 1:
 63-82.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT> Allen, S.D. 1986. "The Federal Reserve and the Electoral Cycle:
 A Note." >i>Journal of Money, Credit and Banking>/i> 18, no. 1:
 88-94.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> Allivine, F.C., and D.E. O'Neill. 1980. "Stock Market Returns
 and the Presidential Election Cycle: Implications for Market Efficiency."
 >i>Financial Analysts Journal>/i> 36, no. 5: 49-56.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Bachman, D. 1992. "The
 Effect of Political Risk on the Forward Exchange Bias: The Case of
 Elections." >i>Journal of International Money and Finance>/i> 11, no. 2:
 208-219.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Bessembinder, H.; K. Chan; and P. J. Seguin. 1996. "An Empirical
 Examination of Information, Differences of Opinion, and Trading Activity."
 >i>Journal of Financial Economics>/i> 40, no. 1: 105-134.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Bessembinder, H.,
 and P.J. Seguin. 1992. "Futures Trading Activity and Stock Price
 volatility." >i>Journal of Finance>/i> 47, no. 5: 2015-2034.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT> Bessembinder,
 H., and P.J. Seguin. 1993. "Price volatility, Trading volume, and Market
 Depth: Evidence from Futures Markets." >i>Journal of Financial and
 Quantitative Analysis>/i> 28, no. 21: 21-39.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Black, F. 1975. "Fact and
 Fantasy in the Use of Options." >i>Financial Analysts Journal>/i> 31, no.
 4: 36-41; 61-72.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>   
     <BIBTEXT> Chang, E.; R.Y. Chou; and E.F. Nelling. 2000. "Market
 volatility and the Demand for Hedging in Stock Index Futures." >i>Journal
 of Futures Markets>/i> 20, no. 2: 105-125.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Chen, N.; C.J. Cuny; and
 R.A. Haugen. 1995. "Stock volatility and the Levels of the Basis and Open
 Interest in Futures Contracts." >i>Journal of Finance>/i> 50, no. 1:
 281-300.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Chiu, C.-L.; C.-D. Chen; and W.-W. Tang. 2005. "Political
 Elections and Foreign Investor Trading in South Korea's Financial Market."
 >i>Applied Economics Letters>/i> 12, no. 11: 673-677.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Foerster, S.R.
 1994. "Stock Market Performance and Elections: Made-in-Canada Effects?"
 >i>Canadian Investment Review>/i> (Summer): 39-42.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>13</BIBL>	<BIBTEXT> Foerster, S.R., and J.J.
 Schmitz. 1997. "The Transmission of U.S. Election Cycles to International
 Stock Returns." >i>Journal of International Business Studies>/i> 28, no.
 1: 1-27.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Garman, M.B., and M.J. Klass. 1980. "On the Estimation of
 Security Price volatilities from Historical Data." >i>Journal of
 Business>/i> 53, no. 1: 67-78.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>15</BIBL>	<BIBTEXT> Hagelin, N. 2000. "Index Option Market
 Activity and Cash Market volatility Under Different Market Conditions: An
 Empirical Study from Sweden." >i>Applied Financial Economics>/i> 10, no.
 6: 597-613.</BIBTEXT>	    </REF>	<REF>	     <BIBL>16</BIBL>	   
 <BIBTEXT> Herbst, A.F., and C.W. Slinkman. 1984. "Political-Economic
 Cycles in the U.S. Stock Market." >i>Financial Analysts Journal>/i> 40,
 no. 2: 38-45.</BIBTEXT>      </REF>	  <REF>        <BIBL>17</BIBL>	   
   <BIBTEXT> Hong, H. 2000. "A Model of Returns and Trading in Futures
 Markets." >i>Journal of Finance>/i> 55, no. 2: 959-988.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Huang, R.D.
 1985. "Common Stock Returns and Presidential Elections." >i>Financial
 Analysts Journal>/i> 41, no. 2: 58-62.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>19</BIBL>	    <BIBTEXT> Jayaraman, N.; M.B. Frye; and S.
 Sabherwal. 2001. "Informed Trading Around Merger Announcements: An
 Empirical Test Using Transaction volume and Open Interest in the Options
 Market." >i>Financial Review>/i> 36, no. 2: 45-74.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>20</BIBL>	<BIBTEXT> Kamara, A. 1993.
 "Production Flexibility, Stochastic Separation, Hedging, and Futures
 Prices." >i>Review of Financial Studies>/i> 6, no. 4: 935-957.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>21</BIBL>	    <BIBTEXT> Kim, M.; G.R.
 Kim; and M. Kim. 2004. "Stock Market volatility and Trading Activities in
 the KOSPI 200 Derivatives Markets." >i>Applied Economics Letters>/i> 11,
 no. 1: 49-53.</BIBTEXT>      </REF>	  <REF>        <BIBL>22</BIBL>	   
   <BIBTEXT> Lamb, R.P.; K.C. Ma; R.D. Pace; and W.F. Kennedy. 1997. "The
 Congressional Calendar and Stock Market Performance." >i>Financial Service
 Review>/i> 6, no. 1: 19-25.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>23</BIBL>	<BIBTEXT> Lee, M., and C.-D. Chen. 2005. "The
 Intraday Behaviors and Relationships with Its Underlying Assets: Evidence
 on Option Market in Taiwan." >i>International Review of Financial
 Analysis>/i> 14, no. 5: 587-603.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>24</BIBL>	<BIBTEXT> Niederhofer, V. 1971. "The Analysis of
 World Events and Stock Prices." >i>Journal of Business>/i> 44, no. 2:
 193-219.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> Niederhofer, V.; S. Gibbs; and J. Bullock. 1970. "Presidential
 Elections and the Stock Market." >i>Financial Analysts Journal>/i> 26, no.
 2: 111-113.</BIBTEXT>	    </REF>	<REF>	     <BIBL>26</BIBL>	   
 <BIBTEXT> Nippani, S., and W.B. Medlin. 2002. "The 2000 Presidential
 Election and the Stock Market." >i>Journal of Economics and Finance>/i>
 26, no. 2: 162-169.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>27</BIBL>	<BIBTEXT> Ãnder, Z., and C. Simga-Mugan. 2006.
 "How Does Political and Economic News Affect Emerging Markets? Evidence
 from Argentina and Turkey." >i>Emerging Markets Finance and Trade>/i> 42,
 no. 4: 55-77.</BIBTEXT>      </REF>	  <REF>        <BIBL>28</BIBL>	   
   <BIBTEXT> Pan, M.S.; Y. Liu; and H. Roth. 2003. "volatility and Trading
 Demands in Stock Index Futures." >i>Journal of Futures Markets>/i> 23, no.
 4: 399-414.</BIBTEXT>	    </REF>	<REF>	     <BIBL>29</BIBL>	   
 <BIBTEXT> Pantzalis, C.; D.A. Stangeland; and H.J. Turtle. 2000.
 "Political Elections and the Resolution of Uncertainty: The International
 Evidence." >i>Journal of Banking and Finance>/i> 24, no. 10:
 1575-1604.</BIBTEXT>	   </REF>      <REF>	    <BIBL>30</BIBL>	  
 <BIBTEXT> Puttonen, V. 1993. "Short Sales Restrictions and the Temporal
 Relationship Between Stock Index Cash and Derivatives Markets." >i>Journal
 of Futures Market>/i> 13, no. 6: 645-664.</BIBTEXT>	  </REF>      <REF>
	<BIBL>31</BIBL>        <BIBTEXT> Santa-Clara, P., and R. Valkanov.
 2003. "The Presidential Puzzle: Political Cycles and the Stock Market."
 >i>Journal of Finance>/i> 58, no. 5: 1841-1872.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>32</BIBL>	     <BIBTEXT> Su, E., and T.W. Knowles.
 2006. "Asian Pacific Stock Market volatility Modeling and Value at Risk
 Analysis." >i>Emerging Markets Finance and Trade>/i> 42, no. 2
 (March-April): 18-62.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>33</BIBL>	<BIBTEXT> Watanabe, T. 2001. "Price volatility,
 Trading volume, and Market Depth: Evidence from the Japanese Stock Index
 Futures Market." >i>Applied Financial Economics>/i> 11, no. 6:
 651-658.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:1:p:19-30




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 5 
Volume: 44 
Year: 2008 
Month: 9 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XJ81335522715442 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:44:y:2008:i:5:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Nathan  Porter 
Author-X-Name-First: Nathan  
Author-X-Name-Last: Porter 
Title: Revenue Volatility and Fiscal Risks: An Application of Value-at-Risk Techniques to Hong Kong's Fiscal Policy 
Abstract:
 Revenue volatility poses challenges for fiscal policy makers. It can
 create risks to service provision, require borrowing, or entail sudden tax
 changes. This paper investigates the use of value-at-risk techniques to
 measure the fiscal risks caused by volatility as well as the sensitivity
 of measured risks to policies that may limit volatility. The revenue of
 Hong Kong's Special Administrative Region (SAR) is among the most volatile
 in Asia, and thus is a natural case for applying these techniques.
 Reflecting its revenue volatility, Hong Kong's SAR has traditionally held
 high fiscal savings (reserves), and the value of the self-insurance these
 savings provide is also discussed.
Journal: Emerging Markets Finance and Trade 
Pages: 6-24 
Issue: 6 
Volume: 43 
Year: 2007 
Month: 11 
Keywords: fiscal policy, revenue volatility, value at risk, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=AX5J66Q064X5093H 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> AdroguÃ©, R. 2005.
 "Fiscal Sustainability: A Value at Risk Approach." In >i>Central America:
 Global Integration and Regional Cooperation.>/i> IMF Occasional Paper no.
 243, ed. M. Rodlauer and A. Schipke, pp. 59-68. Washington: International
 Monetary Fund.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	   
   <BIBTEXT> Aiyagari, S.R.; A. Marcet; T.J. Sargent; and J. SeppÃ¤lÃ¤.
 2002. "Optimal Taxation Without State-Contingent Debt." >i>Journal of
 Political Economy>/i> 110, no. 6: 1220-1254.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Barnhill, T.M., and G.
 Kopits. 2003. "Assessing Fiscal Sustainability Under Uncertainty." IMF
 Working Paper 03/79, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>	  
 <BIBTEXT> Baylor, M. 2005. "Ranking Tax Distortions in Dynamic Equilibrium
 Models: A Survey." Working Paper 2005-06, Department of Finance,
 Ottawa.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>       
 <BIBTEXT> Chari, V.V.; L.J. Christiano; and P.J. Kehoe. 1994. "Optimal
 Fiscal Policy in a Business Cycle Model." >i>Journal of Political
 Economy>/i> 102, no. 4: 617-652.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>6</BIBL>        <BIBTEXT> Gruenwald, P. 2005. "Hong Kong SAR: A Note
 on the Sustainability of Volatile Revenue Items." People's Republic of
 ChinaâHong Kong Special Administrative Region, Selected Issues Paper,
 IMF Country Report no. 06/51, International Monetary Fund, Washington, DC,
 pp. 29-33.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> Hull, J. 2000. >i>Options, Futures and Other Derivatives.>/i>
 Upper Saddle River, NJ: Prentice Hall.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>8</BIBL>	   <BIBTEXT> Jorion, P. 2001. >i>Value at Risk: The
 New Benchmark for Managing Financial Risk>/i>, 2d ed. New York:
 McGraw-Hill.</BIBTEXT>      </REF>	 <REF>	      <BIBL>9</BIBL>	   
 <BIBTEXT> Lee, J. 2004. "Insurance Value of International Reserves: An
 Option Pricing Approach." Working Paper 04/175, International Monetary
 Fund, Washington, DC.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Leigh, L. 2006. "Hong Kong Special
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Handle: RePEc:mes:emfitr:v:43:y:2007:i:6:p:6-24




Template-Type: ReDIF-Article 1.0
Author-Name: MEHMET BALCILAR 
Author-X-Name-First: MEHMET 
Author-X-Name-Last: BALCILAR 
Title:         Multifractality of the Istanbul and Moscow Stock Market Returns       
Abstract:
       There is a growing awareness among financial researchers that the
 traditional models of asset returns cannot capture essential time series
 properties of the current stock return data. We examine commonly used
 models, such as the autoregressive integrated moving average (ARIMA) and
 the autoregressive conditional heteroskedasticity (ARCH) family, and show
 that these models cannot account for the essential characteristics of the
 real Istanbul Stock Exchange and Moscow Stock Exchange returns. These
 models often fail, and when they succeed, they do at the cost of an
 increasing number of parameters and structural equations. The measures of
 risk obtained from these models do not reflect the true risk to traders,
 since they cannot capture all key features of the data. In this paper, we
 offer an alternative framework of analysis based on multifractal models.
 Compared to the traditional models, the multifractal models we use are
 very parsimonious and replicate all key features of the data with only
 three universal parameters. The multifractal models have superior risk
 evaluation performance. They also produce better forecasts at all scales.
 The paper also offers a justification of the multifractal models for
 financial modeling.	
Journal: Emerging Markets Finance and Trade 
Pages: 5-46 
Issue: 2 
Volume: 39 
Year: 2003 
Month: 3 
Keywords: Key words: fractal Brownian motion, H&#246, lder exponent, multifractal market hypothesis, multifractal spectrum, scaling phenomena, statistical self-similarity, Wavelet transform, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y44Q0JBX6JRAPBP2 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:39:y:2003:i:2:p:5-46




Template-Type: ReDIF-Article 1.0
Author-Name: SEZA DANISOG&not;LU RHOADES 
Author-X-Name-First: SEZA DANISOG&not;LU 
Author-X-Name-Last: RHOADES 
Author-Name: Z. NURAY GÜNER 
Author-X-Name-First: Z. NURAY 
Author-X-Name-Last: GÜNER 
Title:         Economic Uncertainty and Credit Crunch : Evidence from an Emerging Market       
Abstract:
       Using both univariate and multivariate analyses, this paper attempts
 to determine whether a credit crunch occurred in the Turkish economy
 during the 1990s. It also addresses the question of whether this credit
 crunch was a supply-side- or a demand-side-originated phenomenon. Economic
 uncertainty is proxied by unanticipated inflation. The analyses are
 carried out by controlling for political uncertainty as well. The results
 indicate that economic uncertainty has a significantly negative impact on
 the supply of, and the demand for, loans. Also, there is evidence that a
 supply-side-originated credit crunch occurred in the Turkish economy.	  
Journal: Emerging Markets Finance and Trade 
Pages: 5-23 
Issue: 4 
Volume: 39 
Year: 2003 
Month: 7 
Keywords: bank loans, credit crunch, economic uncertainty, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=UHKFPVEKUBJ27XPU 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Bacon, K.H., and F.R.
 Bleakley. 1991. "Bush Moves to Relieve 'Credit Crunch.'" Wall Street
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 Risk-Based Capital Allocate Bank Credit and Cause a 'Credit Crunch' in the
 United States?" Journal of Money, Credit, and Banking, Part 2, 26, no. 3
 (August): 585-628.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL> 
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 24, no. 3: 319-327.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>
	<BIBTEXT>Bollerslev, T. 1986. "Generalized Autoregressive
 Conditional Heteroscedasticity." Journal of Econometrics 31, no. 2:
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 <BIBTEXT>Breeden, R.C., and W.M. Isaac. 1992. "Thank Basel for Credit
 Crunch." Wall Street Journal, November 4, A14.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT>Brinkman, E.J., and P.M.
 Horvitz. 1995. "Risk-Based Capital Standards and the Credit Crunch."
 Journal of Money, Credit, and Banking 27, no. 3 (August):
 848-863.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT>Cantor, R., and J. Wenninger. 1993. "Perspective on the Credit
 Slowdown." Federal Reserve Bank of New York Quarterly Review 18, no. 1
 (Spring): 3-36.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT>Furlong, F.T. 1992. "Capital Regulation and Bank Lending."
 Federal Reserve Bank of San Francisco Economic Review, no. 3:
 23-33.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>       
 <BIBTEXT>Gorton, G., and R. Rosen. 1992. "Corporate Control, Portfolio
 Choice, and the Decline of Banking." National Bureau of Economic Research
 (NBER) Working Paper No. 4247, Cambridge, MA.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT>Greene, W.H. 1993.
 Econometric Analysis. New York: Macmillan.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT>Hancock, D., and J.A. Wilcox.
 1998. "The 'Credit Crunch' and the Availability of Credit to Small
 Business." Journal of Banking and Finance 22, nos. 6-8:
 983-1014.</BIBTEXT>	  </REF>      <REF>	   <BIBL>13</BIBL>	 
 <BIBTEXT>Hancock, D.; A.J. Laing; and J.A. Wilcox. 1995. "Bank Capital
 Shocks: Dynamic Effects on Securities, Loans, and Capital." Journal of
 Banking and Finance 19, nos. 3-4: 661-677.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT>Haubrich, J.G., and P.
 Wachtel. 1993. "Capital Requirements and Shifts in Commercial Bank
 Portfolios." Federal Reserve Bank of Cleveland Economic Review Quarter 3,
 29, September: 2-15.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>15</BIBL>	<BIBTEXT>Koch, T., and S.S. MacDonald. 2000. Bank
 Management, 4th ed. Dallas/Ft. Worth: Dryden Press.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>Peek, J., and E.
 Rosengren. 1992. "The Capital Crunch in New England." Federal Reserve Bank
 of Boston New England Economic Review (May-June): 21-31.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT>------. 1995a.
 "Bank Regulation and Credit Crunch." Journal of Banking and Finance 19,
 nos. 3-4: 679-692.</BIBTEXT>	   </REF>      <REF>	    <BIBL>18</BIBL>
	<BIBTEXT>------. 1995b. "The Capital Crunch: Neither a Borrower Nor
 a Lender Be." Journal of Money, Credit and Banking 27, no. 3 (August):
 625-638.</BIBTEXT>	 </REF>      <REF>	  <BIBL>19</BIBL>	
 <BIBTEXT>Syron, R.F. 1991. "Are We Experiencing a Credit Crunch?" Federal
 Reserve Bank of Boston New England Economic Review (July-August):
 3-10.</BIBTEXT>      </REF>	  <REF>        <BIBL>20</BIBL>	     
 <BIBTEXT>Syron, R.F., and R.E. Randall. 1992. "The Procyclical Application
 of Bank Capital Requirements." Federal Reserve Bank of Boston 1991 Annual
 Report.</BIBTEXT>	</REF>	    <REF>	 <BIBL>21</BIBL>       
 <BIBTEXT>Wall, L.D., and D.R. Peterson. 1995. "Bank Holding Company
 Capital Targets in the Early 1990s: The Regulators Versus the Markets."
 Journal of Banking and Finance 19, nos. 3- 4: 563-574.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT>Wojnilower, A.
 1992. "Credit Crunch." In The New Palgrave Dictionary of Money and
 Finance, ed. P. Newman, M. Milgate, and J. Eatwell, pp. 525-527. London:
 Macmillan.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:4:p:5-23




Template-Type: ReDIF-Article 1.0
Author-Name: Andrea  Mantovani 
Author-X-Name-First: Andrea  
Author-X-Name-Last: Mantovani 
Author-Name: Mark  Vancauteren 
Author-X-Name-First: Mark  
Author-X-Name-Last: Vancauteren 
Title: Environmental Policy and Trade of Manufacturing Goods in the Central and Eastern Enlargement of the European Union 
Abstract:
 We investigate empirically the link between environmental policy and trade
 with particular reference to the single market and enlargement.
 Incorporating the methodology of endogenous protection, we question if
 countries should wish to weaken their environmental policies in response
 to more trade integration; in particular, we look at the effect of
 harmonizing product regulations and the level of imports. The empirical
 answer suggests that harmonizing product regulations leads to more trade;
 domestic environmental regulations have a larger negative effect on trade
 when they are treated as endogenous; and EU countries relax domestic
 environmental regulations due to the harmonization of regulations, whereas
 the Central and Eastern European countries that joined or will join the
 European Union set more stringent environmental regulations.
Journal: Emerging Markets Finance and Trade 
Pages: 34-47 
Issue: 3 
Volume: 44 
Year: 2008 
Month: 5 
Keywords: enlargement, environmental regulations, European integration, gravity model, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G8P0342321K53135 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Belsey, D.; E. Kuh; and
 R. Welsh. 1980. >i>Regression Diagnostics.>/i> New York: Wiley.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Brock, W.,
 and S. Taylor. 2004. "The Green Solow Model." National Bureau of Economic
 Research Working Paper 10557, Cambridge, MA.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Commission of the European
 Communities. 1998. >i>Technical Barriers to Trade, Dismantling of Barriers
 of the Single Market.>/i> Luxembourg: Office for Official
 Publication.</BIBTEXT>      </REF>	 <REF>	      <BIBL>4</BIBL>	   
 <BIBTEXT> Commission of the European Communities. 1999. "Single Market and
 the Environment." Report, Brussels.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>5</BIBL>	<BIBTEXT> Commission of the European Communities.
 2000. "Accession Strategies for Environment: Meeting the Challenge of
 Enlargement with the Candidate Countries in Central and Eastern Europe."
 Communication, Brussels.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>6</BIBL>        <BIBTEXT> Copeland, B., and S. Taylor. 2004. "Trade,
 Growth and the Environment." >i>Journal of Economic Literature>/i>42, no.
 1: 7-71.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Ederington, J., and J. Minier. 2003. "Is Environmental Policy a
 Secondary Trade Barrier? An Empirical Analysis." >i>Canadian Journal of
 Economics>/i> 36, no. 1: 137-154.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT> Gawande, K. 1999. "Trade Barriers as
 Outcomes from Two-Stage Games: Evidence." >i>Canadian Journal of
 Economics>/i> 32, no. 4: 1028-1056.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>9</BIBL>	<BIBTEXT> Harris, M.; L. KÃ³nya; and L. MÃ¡tyÃ¡s.
 2000. "Modeling the Impact of Environmental Regulations on Bilateral Trade
 Flows: OECD, 1990-1996." >i>World Economy>/i> 25, no. 3:
 387-404.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT> Jug, J., and D. Mirza. 2004. "Environmental Regulations in
 Gravity Equations: Evidence from Europe." Paper presented at the Sixth
 Annual Conference of the European Trade and Study Group, Nottingham
 University, September 9-11.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>11</BIBL>	<BIBTEXT> Levinson, A., and J. Taylor. 2004.
 "Unmasking the Pollution Haven Effect." National Bureau of Economic
 Research Working Paper Series no. 10629, Cambridge, MA.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Mulatu, A.; R.
 Florax; and C. Withagen. 2004. "Environmental Regulation and International
 Trade: Empirical Results for Germany, the Netherlands and the U. S.,
 1977-1992." >i>Contribution to Economic Analysis & Policy>/i> 3, no. 2:
 1-28.</BIBTEXT>      </REF>	  <REF>        <BIBL>13</BIBL>	     
 <BIBTEXT> Robison, D. 1988. "Industrial Pollution Abatement: The Impact on
 Balance of Trade." >i>Canadian Journal of Economics>/i> 21, no. 1:
 187-199.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT> Trefler, D. 1993. "Trade Liberalization and the Theory of
 Endogenous Protection: An Econometric Study of US Import Policy."
 >i>Journal of Political Economy>/i> 101, no. 1: 138-160.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Van Beers, C.,
 and J. van den Bergh. 1997. '"An Empirical Multi-Country Analysis of the
 Impact of Environmental Regulations on Trade Flows." >i>Kyklos>/i> 50, no.
 1: 29-46.</BIBTEXT>	  </REF>      <REF>	   <BIBL>16</BIBL>	 
 <BIBTEXT> Xu, X. 2000. "International Trade and Environmental Regulations:
 Time Series Evidence and Cross Section Tests." >i>Environmental and
 Resource Economics>/i> 17, no. 2: 233-257.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:3:p:34-47




Template-Type: ReDIF-Article 1.0
Author-Name: Rupa  Duttagupta 
Author-X-Name-First: Rupa  
Author-X-Name-Last: Duttagupta 
Author-Name: Guillermo  Tolosa 
Author-X-Name-First: Guillermo  
Author-X-Name-Last: Tolosa 
Title: Fiscal Discipline and Exchange Rate Arrangements: Evidence from the Caribbean 
Abstract:
 This paper assesses the nature of fiscal discipline under alternative
 exchange rate regimes. First, it shows that fiscal agencies under a
 currency union with a fixed exchange rate can have a larger incentive to
 overspend or "free ride" than those under other exchange rate regimes,
 owing to the agencies' ability to spread the costs of overspending in
 inflation tax across both time, given the fixed exchange rate, and space,
 given the currency union. In contrast, such free-riding behavior does not
 arise under flexible regimes owing to the immediate inflationary impact of
 spending. Next, empirically, fiscal stances in countries with fixed pegs
 and currency union regimes demonstrate greater free-riding behavior than
 do countries with more flexible regimes in fifteen Caribbean countries
 from 1983 to 2004.
Journal: Emerging Markets Finance and Trade 
Pages: 87-112 
Issue: 6 
Volume: 43 
Year: 2007 
Month: 11 
Keywords: currency unions, exchange rates, fiscal policy, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L70681VR3V3VP836 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Abiad, A., and T. Baig.
 2005. "Underlying Factors Driving Fiscal Effort in Emerging Market
 Economies." Working Paper 05/106, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>2</BIBL>	  
 <BIBTEXT> Alberola, E., and L. Molina. 2004. "What Does Really Discipline
 Fiscal Policy in Emerging Markets? The Role and Dynamics of Exchange Rate
 Regimes." Banco de EspaÃ±a Working Paper no. 0402, Madrid,
 Spain.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> Alesina, A.; R. Hausmann; R. Hommes; and E. Stein. 1999. "Budget
 Institutions and Fiscal Performance in Latin America." >i>Journal of
 Development Economics>/i> 59, no. 2: 253-273.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Beetsma, R.M.W.J., and A.L.
 Bovenberg. 1999. "Does Monetary Unification Lead to Excessive Debt
 Accumulation?" >i>Journal of Public Economics>/i> 74, no. 3:
 299-325.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Berger, H.; G. Kopits; and I.P. Szekely. 2004. "Fiscal
 Indulgence in Central Europe: Loss of the External Anchor." Working Paper
 04/62, International Monetary Fund, Washington, DC.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Bergin, P. 2000. "Fiscal
 Solvency and Price Level Determination in a Monetary Union." >i>Journal of
 Monetary Economics>/i> 45, no. 1: 37-53.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>7</BIBL>	     <BIBTEXT> Calvo, G.A., and F.S. Mishkin. 2003.
 "The Mirage of Exchange Rate Regimes for Emerging Market Countries."
 Working Paper no. 9808, National Bureau of Economic Research, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>	  
 <BIBTEXT> Chari, V.V., and P. Kehoe. 2004. "On the Need for Fiscal
 Constraints in a Monetary Union." Working Paper no. 10232, National Bureau
 of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>9</BIBL>	 <BIBTEXT> Da Rocha, J.M.; E.L. Gimenez; and F.X.
 Lores. 2002. "Devaluation Beliefs and the Argentinean Debt Crisis."
 Universidade de Vigo, Vigo, Spain.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>10</BIBL>	<BIBTEXT> Debrun, X. 2000. "Fiscal Rules in a
 Monetary Union: A Short Run Analysis." >i>Open Economies Review>/i> 11,
 no. 4 (October): 323-358.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>11</BIBL>	<BIBTEXT> Duttagupta, R., and G. Tolosa. 2005.
 "Fiscal Policy in a Regional Currency Union." Eastern Caribbean Currency
 Union: Selected Issues, Country Report no. 05/305, International Monetary
 Fund, Washington, DC: 51-72.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>12</BIBL>	<BIBTEXT> Fatas, A., and A. Rose. 2001. "Do
 Monetary Handcuffs Restrain Leviathan? Fiscal Policies in Extreme Exchange
 Rate Regimes." >i>IMF Staff Papers>/i> 47 (Special Issue):
 40-61.</BIBTEXT>      </REF>	   <REF>	<BIBL>13</BIBL>       
 <BIBTEXT> Frenkel, J.; M. Goldstein; and P. Masson. 1991. "Characteristics
 of a Successful Exchange Rate System." IMF Occasional Paper no. 82,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT> Giavazzi, F., and M. Pagano.
 1988. "The Advantage of Tying One's Hands: EMS Discipline and Central Bank
 Credibility." >i>European Economic Review>/i> 32, no. 5 (June):
 1055-1075.</BIBTEXT>	   </REF>      <REF>	    <BIBL>15</BIBL>	  
 <BIBTEXT> Krugman, P. 1979. "A Model of Balance of Payments Crisis."
 >i>Journal of Money, Credit and Banking>/i> 11, no. 3 (August):
 311-325.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT> Kufa, P.; A.J. Pellechio; and S. Rizavi. 2003. "Fiscal
 Sustainability and Policy Issues in the Eastern Caribbean Currency Union."
 Working Paper 03/162, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>17</BIBL>	   
 <BIBTEXT> Manasse, P.; N. Roubini; and A. Schimmelpfennig. 2003.
 "Predicting Sovereign Debt Crisis." Working Paper 03/221, International
 Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>18</BIBL>	<BIBTEXT> Rasmussen, T. 2004. "Macroeconomic
 Implications of Natural Disasters in the Caribbean." Working Paper 04/224,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Reinhart, C. 2002. "Default,
 Currency Crises and Sovereign Credit Ratings." >i>World Bank Economic
 Review>/i> 16, no. 2: 151-170.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>20</BIBL>	<BIBTEXT> Reinhart, C.; K. Rogoff; and M.
 Savastano. 2003. "Debt Intolerance." Working Paper no. 9908, National
 Bureau of Economic Research, Cambridge, MA.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT> Sahay, R. 2005.
 "Stabilization, Debt and Fiscal Policy in the Caribbean." Working Paper
 05/26, International Monetary Fund, Washington, DC.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>22</BIBL>	 <BIBTEXT> Sargent, T., and N.
 Wallace. 1981. "Some Unpleasant Monetarist Arithmetic." >i>Federal Reserve
 Bank of Minnesota Quarterly Review>/i> 5, no. 3: 1-17.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>23</BIBL>	 <BIBTEXT> Schuknecht, L.
 1999. "Fiscal Policy Cycles and Exchange Rate Regime in Developing
 Countries." >i>European Journal of Political Economy>/i> 15, no. 3:
 569-580.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT> Sun, Y. 2003. "Do Fixed Exchange Rates Induce More Fiscal
 Discipline?" Working Paper 03/78, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>25</BIBL>	   
 <BIBTEXT> Tornell, A., and A. Velasco. 1995. "Fixed or Flexible Exchange
 Rates: Which Provides More Fiscal Discipline?" Working Paper no. 5108,
 National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>
      <REF>	   <BIBL>26</BIBL>	  <BIBTEXT> Tornell, A., and A.
 Velasco. 2000. "Fixed or Flexible Exchange Rates: Which Provides More
 Fiscal Discipline?" >i>Journal of Monetary Economics>/i> 45, no. 2:
 399-436.</BIBTEXT>	 </REF>      <REF>	  <BIBL>27</BIBL>	
 <BIBTEXT> von Hagen, J., and I. Harden. 1996. "Budget Processes and
 Commitment to Fiscal Discipline." Working Paper 96/78, International
 Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>28</BIBL>	<BIBTEXT> Wildasin, D.E. 1997. "Externalities and
 Bailouts: Hard and Soft Budget Constraints in Intergovernmental Fiscal
 Relations. World Bank Policy Research Working paper series no.
 1843.</BIBTEXT>      </REF>	  <REF>        <BIBL>29</BIBL>	     
 <BIBTEXT> Williams, O.; T. Polius; and S. Hazel. 2005. "Reserve Pooling in
 the ECCU and the CFA Franc Zone: A Comparative Analysis." >i>Savings and
 Development>/i> 29, no. 1: 39-60.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>30</BIBL>	<BIBTEXT> Woo, J. 2003. "Economic, Political, and
 Institutional Determinants of Public Deficits." >i>Journal of Public
 Economics>/i> 87, nos. 3-4 (March): 387-426.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>31</BIBL>	     <BIBTEXT> Woodford, M. 1998. "Control
 of the Public Debt: A Requirement for Price Stability?" In >i>The Debt
 Burden and Its Consequences for Monetary Policy>/i>, ed. G. Calvo and M.
 King, pp. 117-154. New York: St. Martin's Press.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:6:p:87-112




Template-Type: ReDIF-Article 1.0
Author-Name: Bernd  Lucke 
Author-X-Name-First: Bernd  
Author-X-Name-Last: Lucke 
Author-Name: Beatriz Gaitan Soto 
Author-X-Name-First: Beatriz Gaitan 
Author-X-Name-Last: Soto 
Author-Name: Jacopo  Zotti 
Author-X-Name-First: Jacopo  
Author-X-Name-Last: Zotti 
Title: Assessing Economic and Fiscal Reforms in Lebanon: A Dynamic CGE Analysis with Debt Constraints 
Abstract:
 Since the early 1990s, Lebanon has undertaken a number of economic
 reforms, covering international trade and internal fiscal policy issues in
 particular. Simultaneously, debt has been skyrocketing, partially
 justified by reconstruction needs after the end of the civil war.
 Fostering economic growth seems to be the only way out of the debt trap,
 but reforms intended to stimulate growth may well have adverse short-run
 effects on public and external deficits. We construct a dynamic
 open-economy computable general equilibrium (CGE) model with debt
 constraints in the sense that external debt requires physical capital as
 collateral. The CGE model allows us to study the effects of a number of
 important economic policy issues, such as fiscal policy reform, World
 Trade Organization (WTO) membership, and foreign direct investment, in a
 multisectoral dynamic setting under the realistic assumption that debt
 constraints relax when the economy starts growing. Included in the results
 are reports on scenarios of trade liberalization and political
 stabilization.
Journal: Emerging Markets Finance and Trade 
Pages: 35-63 
Issue: 1 
Volume: 43 
Year: 2007 
Month: 2 
Keywords: dynamic CGE, foreign direct investment, Lebanon, political stability, trade liberalization, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=QK78L74761451016 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Armington, P.S. 1969.
 "A Theory of Demand for Products Distinguished by Place of Production."
 >i>IMF Staff Papers>/i>16, no. 1: 159-176.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Barro, R.J., and X.
 Sala-i-Martin. 2004. >i>Economic Growth.>/i> Cambridge, MA: MIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> Barro, R.J.; G. Mankiw; and X. Sala-i-Martin. 1995. "Capital
 Mobility in Neoclassical Models of Growth." >i>American Economic
 Review>/i>85, no. 1 (March): 103-115.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>4</BIBL>	  <BIBTEXT> Brunner, M., and H. Strulik. 2002.
 "Solution of Perfect Foresight Saddlepoint Problems: A Simple Method and
 Applications." >i>Journal of Economic Dynamics and Control>/i>26, no. 5:
 737-753.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Cohen, D., and J. Sachs. 1986. "Growth and External Debt Under
 Risk of Repudiation." >i>European Economic Review>/i>30, no. 3 (June):
 526-560.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Dessus, S., and J. Ghaleb. 2004. "LebanonâBetween Market
 Liberalization and Fiscal Consolidation: A General Equilibrium Analysis
 with Imperfect Competition." Presentation at the International Conference
 on Policy Modeling, Ecomod2004, University of Paris I Pantheon-Sorbonne,
 June 30-July 2, Paris.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>7</BIBL>        <BIBTEXT> Devarajan, S., and D.S. Go. 1998. "The
 Simplest Dynamic General-Equilibrium Model of an Open Economy." >i>Journal
 of Policy Modelling>/i>20, no. 6: 677-714.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Devarajan, S.; D.S. Go; and
 H. Li. 1999. "Quantifying the Fiscal Effects of Trade Reform: A General
 Equilibrium Model Estimated for 60 Countries." Policy Research Working
 Paper 2162, World Bank, Washington, DC.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>9</BIBL>	    <BIBTEXT> Diao, X.; E. Yeldan; and T. Roe.
 1999. "How Fiscal Mismanagement May Impede Trade Reform: Lessons from an
 Intertemporal, Multi-Sector General Equilibrium Model for Turkey."
 >i>Developing Economies>/i>37, no. 1 (March): 59-88.</BIBTEXT>      </REF>
      <REF>	   <BIBL>10</BIBL>	  <BIBTEXT> Diao, X.; J. RattsÃ¸;
 and H. Ekroll-Stokke. 2005. "International Spillovers, Productivity Growth
 and Openness in Thailand: An Intertemporal General Equilibrium Analysis."
 >i>Journal of Development Economics>/i>76, no. 2: 429-450.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Dissou, Y. 2002.
 "Dynamic Effects in Senegal of Regional Trade Agreement Among UEMOA
 Countries." >i>Review of International Economics>/i>10, no. 1:
 177-199.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> European Union. 2002. "Council Decision 2002/761/EC of 22 July
 2002 Concerning the Conclusion of the Interim Agreement on Trade and
 Trade-Related Matters Between the European Community, of the One Part, and
 the Republic of Lebanon, of the Other Part." >i>Official Journal of the
 European Communities>/i>L262, September 30, 1-183.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>13</BIBL>	<BIBTEXT> Go, D.S. 1994. "External
 Shocks, Adjustment Policies and Investment in a Developing Economy:
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 >i>Journal of Development Economics>/i>44, no. 2: 229-261.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Haddad, M. 2004.
 >i>Managing Global Integration in Lebanon.>/i> Beirut: ESCWA.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>15</BIBL>	   <BIBTEXT> Hamoudeh, M.
 2002. "The Aghadir Process." Presentation at the Mediterranean Academy of
 Diplomatic Studies, University of Malta, Malta, May 4-6, 2002.</BIBTEXT>  
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 G.W.; T.F. Rutherford; and D.G. Tarr. 1997. "Opciones de politica
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   <BIBTEXT> Keuschnigg, C., and W. Kohler. 1994. "Modeling Intertemporal
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 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> Martin, W. 1996.
 >i>Assessing the Implications for Lebanon of Free Trade with the European
 Union.>/i> Washington, DC: World Bank.</BIBTEXT>      </REF>	   <REF>   
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 for Arab Countries>/i> ed. B. Hoekman and J. Zarroouk, pp. 103-144. Ann
 Arbor: University of Michigan Press.</BIBTEXT>      </REF>	 <REF>	   
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 /dataquery.html>/a></BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:1:p:35-63




Template-Type: ReDIF-Article 1.0
Author-Name: Teresa Ter-Minassian 
Author-X-Name-First: Teresa 
Author-X-Name-Last: Ter-Minassian 
Title:         Guest Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-7 
Issue: 1 
Volume: 39 
Year: 2003 
Month: 1 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XY7CXJ6P4M4GBXCE 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Newbery, D.M.G. (ed.).
 1995. Tax and Benefit Reform in Central and Eastern Europe. London: Centre
 for Economic Policy Research.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>2</BIBL>        <BIBTEXT>Tanzi, V. (ed.). 1992. Fiscal Policies in
 Economies in Transition. Washington DC: International Monetary
 Fund</BIBTEXT>      </REF>	 <REF>	      <BIBL>3</BIBL>	   
 <BIBTEXT>------. 1993. Transition to Market--Studies in Fiscal Reform.
 Washington DC: International Monetary Fund.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:1:p:3-7




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chung  Nieh 
Author-X-Name-First: Chien-Chung  
Author-X-Name-Last: Nieh 
Author-Name: Hwey-Yun  Yau 
Author-X-Name-First: Hwey-Yun  
Author-X-Name-Last: Yau 
Author-Name: Wen-Chien  Liu 
Author-X-Name-First: Wen-Chien  
Author-X-Name-Last: Liu 
Title: Investigation of Target Capital Structure for Electronic Listed Firms in Taiwan 
Abstract:
 This paper investigates the existence of an optimal debt ratio for the
 electronic listed firms in Taiwan, using balanced panel data for a sample
 of 143 selected electronics companies listed in the Taiwan Stock Exchange
 (TSE) from the first quarter of 1999 to the third quarter of 2004. The
 result shows that there is a single threshold effect of debt ratio on firm
 value when return on equity (ROE) is used to proxy firm value.
 Furthermore, based on our combined findings of ROE and earnings per share
 (EPS) triple threshold estimations, we find that the appropriate debt
 ratio range for the electronic listed firms in Taiwan should not be over
 51.57 percent or below 12.37 percent. To ensure and enhance the firm's
 value, the optimal range of debt ratio should be within 12.37 percent and
 28.70 percent. The implications of the findings for financial managers and
 shareholders' welfare are discussed.
Journal: Emerging Markets Finance and Trade 
Pages: 75-87 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: capital structure, debt-to-assets ratio, firm value, panel threshold effect, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=62L50574674R1112 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:75-87




Template-Type: ReDIF-Article 1.0
Author-Name: HALUK ERLAT 
Author-X-Name-First: HALUK 
Author-X-Name-Last: ERLAT 
Title:         The Nature of Persistence in Turkish Real Exchange Rates       
Abstract:
       The objective of this paper is to investigate the persistence in
 Turkish real exchange rates (RER) using unit root tests and autoregressive
 fractionally integrated moving average (ARFIMA) models. We consider two
 RERs, one in terms of the German DM and the other, in terms of the US$.
 The plots of these RERs (based on both wholesale price indices and
 consumer price indices) for the period 1984.01-2000.09 reveal that they
 contain multiple shifts in their deterministic terms, one of which may
 need to be treated as an outlier for some of the series. Hence, when this
 aspect is taken into account in both the unit root tests and the ARFIMA
 models, we find strong evidence of stationarity in almost all series,
 together with significant long-memory components. These findings, then,
 support the validity of the absolute version of the "quasi" purchasing
 power parity hypothesis for Turkey.	
Journal: Emerging Markets Finance and Trade 
Pages: 70-97 
Issue: 2 
Volume: 39 
Year: 2003 
Month: 3 
Keywords: ARFIMA models, long-memory, outliers, real exchange rates, structural shifts, unit root tests, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=WGBWJDGVFG1YBP75 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Aggarwal, R.; A.
 Montanes; and M. Ponz. 2000. "Evidence of Long-Run Purchasing Power
 Parity: Analysis of Real Asian Exchange Rates in Terms of the Japanese
 Yen." Japan and the World Economy 12, no. 4: 351-361.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT>Bahmani-Oskooee,
 M. 1998. "Do Exchange Rates Follow a Random Walk Process in Middle Eastern
 Countries?" Economics Letters 58, no. 3: 339-344.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>3</BIBL>	      <BIBTEXT>Balcilar, M. 1999. "Point
 Optimal Invariant Tests of a Unit Root in Models with Structural Change."
 Working Paper, Department of Econometrics, Cukurova University, Adana,
 Turkey.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>       
 <BIBTEXT>Banerjee, A.; R.L. Lumsdaine; and J.H. Stock. 1992. "Recursive
 and Sequential Tests of the Unit-Root and Trend-Break Hypotheses: Theory
 and International Evidence." Journal of Business and Economic Statistics
 10, no. 3: 271-287.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>
	<BIBTEXT>Baum, C.F.; J.T. Barkoulas; and M. Caglayan. 1999. "Long
 Memory or Structural Breaks: Can Either Explain Nonstationary Real
 Exchange Rates Under the Current Float?" Journal of International
 Financial Markets, Institutions and Money 9, no. 4: 359-376.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>6</BIBL>	 <BIBTEXT>------. 2001.
 "Nonlinear Adjustment to Purchasing Power Parity in the Post-Bretton Woods
 Era." Journal of International Money and Finance 20, no. 3:
 379-399.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT>Bos, C.S.; P.H. Franses; and M. Ooms. 1999. "Long Memory and
 Level Shifts: Reanalysing Inflation Rates." Empirical Economics 24, no. 3:
 427-449.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT>Busetti, F., and A. Harvey. 2001. "Testing for the Presence of a
 Random Walk in Series with Structural Breaks." Journal of Time Series
 Analysis 22, no. 2: 127-150.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>9</BIBL>        <BIBTEXT>Chen, S.L., and J.L. Wu. 2000. "A
 Re-Examination of Purchasing Power Parity in Japan and Taiwan." Journal of
 Macroeconomics 22, no. 2: 271-284.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>10</BIBL>	<BIBTEXT>Cheung, Y.W., and K.S. Lai. 1993. "A
 Fractional Cointegration Analysis of Purchasing Power Parity." Journal of
 Business and Economic Statistics 11, no. 1: 103-112.</BIBTEXT>      </REF>
      <REF>	   <BIBL>11</BIBL>	  <BIBTEXT>------. 1995. "Lag Order
 and Critical Values of the Augmented Dickey-Fuller Test." Journal of
 Business and Economic Statistics 13, no. 3: 277-280.</BIBTEXT>      </REF>
      <REF>	   <BIBL>12</BIBL>	  <BIBTEXT>------. 1998a. "Economic
 Growth and Stationarity of Real Exchange Rates: Evidence from Some
 Fast-Growing Asian Countries." Pacific Basin Finance Journal 6, no. 1-2:
 61-76.</BIBTEXT>      </REF>	   <REF>	<BIBL>13</BIBL>       
 <BIBTEXT>------. 1998b. "Parity Reversion in Real Exchange Rates During
 the Post-Bretton Woods Period." Journal of International Money and Finance
 17, no. 4: 597-614.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>14</BIBL>	<BIBTEXT>------. 2000. "On Cross-Country
 Differences in the Persistence of Real Exchange Rates." Journal of
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 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT>------. 2001. "Long Memory
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 Journal of International Money and Finance 20, no. 1: 115-132.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>16</BIBL>	    <BIBTEXT>Clemente, J.;
 A. Montanes; and M. Reyes. 1998. "Testing for a Unit Root in Variables
 with a Double Change in the Mean." Economics Letters 59, no. 2:
 175-182.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT>Corbae, D., and S. Ouliaris. 1988. "Cointegration and Tests of
 Purchasing Power Parity." Review of Economics and Statistics 70, no. 3:
 508-511.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT>------. 1990. "A Test of Long-Run Purchasing Power Parity
 Allowing for Structural Breaks." Economic Record 67, no. 107:
 26-33.</BIBTEXT>      </REF>	   <REF>	<BIBL>19</BIBL>       
 <BIBTEXT>Costa, A.A., and N. Crato. 2001. "Long-Run Versus Short-Run
 Behaviour of the Real Exchange Rates." Applied Economics 33, no. 5:
 683-688.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
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 I(2)." Review of International Economics 4, no. 2: 234-246.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>Culver, S.E., and
 D.H. Papell. 1995. "Real Exchange Rates Under the Gold Standard: Can They
 Be Explained by the Trend Break Model?" Journal of International Money and
 Finance 14, no. 4: 539-548.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>22</BIBL>	<BIBTEXT>------. 1999. "Long-Run Purchasing Power
 Parity with Short-Run Data: Evidence with a Null Hypothesis of
 Stationarity." Journal of International Money and Finance 18, no. 5:
 751-768.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT>Diebold, F.X.; S. Husted; and M. Rush. 1991. "Real Exchange Rates
 Under the Gold Standard." Journal of Political Economy 99, no. 6:
 1252-1271.</BIBTEXT>	   </REF>      <REF>	    <BIBL>24</BIBL>	  
 <BIBTEXT>Doornik, J.A., and H. Hansen. 1994. "An Omnibus Test for
 Univariate and Multivariate Normality." Working Paper, Nuffield College,
 University of Oxford.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>25</BIBL>	<BIBTEXT>Doornik, J.A., and M. Ooms. 1999. "A
 Package for Estimating, Forecasting and Simulating Arfima Models: Arfima
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 <BIBTEXT>Dornbusch, R., and T. Vogelsang. 1991. "Real Exchange Rates and
 Purchasing Power Parity." In Trade Theory and Economic Reform: North,
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 209-219.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT>Elliot, G. 1999. "Efficient Tests for a Unit Root When the
 Initial Observation Is Drawn from the Unconditional Distribution."
 International Economic Review 40, no. 3: 767-783.</BIBTEXT>	  </REF>   
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 Rothenberg; and J.H. Stock. 1996. "Efficient Tests for an Autoregressive
 Unit Root." Econometrica 64, no. 4: 813-836.</BIBTEXT>      </REF>	
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 in Turkish Inflation Rates." In Inflation and Disinflation in Turkey, ed.,
 A. Kibritcioglu, L. Rittenberg, and F. Selcuk, pp. 97-122. Brookfield, VT:
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 </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:2:p:70-97




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Jen  Huang 
Author-X-Name-First: Chih-Jen  
Author-X-Name-Last: Huang 
Author-Name: Chung-Gee  Lin 
Author-X-Name-First: Chung-Gee  
Author-X-Name-Last: Lin 
Title: Earnings Management in IPO Lockup and Insider Trading: Evidence from Taiwan 
Abstract:
 This paper examines the hypothesis that the timing of lockup expiration is
 crucial to earnings management (EM) behavior in the period after an
 initial public offering (IPO). Taiwan's unique two-stage lockup
 regulations make the Taiwanese sample an excellent candidate for examining
 this hypothesis. Three main results are reached. First, we find positive
 discretionary accruals (DAs) from the IPO quarter to the quarter after the
 expiration of the first-stage lockup. The DA in the quarter of the
 second-stage lockup expiration is significantly positive. The evidence
 shows that the lockup provision is key in the findings of significant EM
 in the IPO year and the following year. We also find a positive
 association between DAs in first-stage lockups and subsequent insider
 selling activity, indicating that insiders' selling after lockup
 expiration accounts for EM in the lockup period. Third, the extent of EM
 in first-stage lockup is negatively related to that around the IPO,
 consistent with the reversal nature of DAs.
Journal: Emerging Markets Finance and Trade 
Pages: 78-91 
Issue: 5 
Volume: 43 
Year: 2007 
Month: 10 
Keywords: discretionary accruals, earnings management, insider trading, lockup, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Q711Q758331G3531 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R.K.; L.
 Krigman; and K.L. Womack. 2002. "Strategic IPO Underpricing, Information
 Momentum, and Lockup Expiration Selling." >i>Journal of Financial
 Economics>/i> 66, no. 1: 105-137.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Bartov, E. 1993. "Timing of Asset Sales
 and Earnings Manipulations." >i>Accounting Review>/i> 68, no. 4:
 840-855.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Bradley, D.; B. Jordan; I. Roten; and H. Yi. 2001. "Venture
 Capital and IPO Lock-Up Expiration: An Empirical Analysis." >i>Journal of
 Financial Research>/i> 24, no. 4: 465-492.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Brav, A., and P.A. Gompers.
 2003. "The Role of Lock-Ups in Initial Public Offerings." >i>Review of
 Financial Studies>/i> 16, no 1: 1-29.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>5</BIBL>	  <BIBTEXT> Field, L.C., and G. Hanka. 2001. "The
 Expiration of IPO Share Lockups." >i>Journal of Finance>/i> 56, no. 2:
 471-500.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Friedlan, J.M. 1994. "Accounting Choices of Issuers of Initial
 Public Offerings." >i>Contemporary Accounting Research>/i> 11, no. 1:
 1-31.</BIBTEXT>      </REF>	  <REF>        <BIBL>7</BIBL>	    
 <BIBTEXT> Hepworth, S.R. 1953. "Smoothing Periodic Income." >i>Accounting
 Review>/i> 28, no. 1: 32-39.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>8</BIBL>        <BIBTEXT> Hsu, Y.S. 2002. "The Effect of IPO Lockup
 on Stock Prices: The Case of Taiwan." National Science Council Research
 Report, Taiwan.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT> Huang, H.J. 1995. "Incentives for Earnings Management and
 Operating Performance of Newly Listed Firms." Working Paper, National
 Taiwan University.</BIBTEXT>	   </REF>      <REF>	    <BIBL>10</BIBL>
	<BIBTEXT> Kasznik, R. 1999. "On the Association Between Voluntary
 Disclosure and Earnings Management." >i>Journal of Accounting Research>/i>
 37, no. 1: 57-81.</BIBTEXT>	  </REF>      <REF>	   <BIBL>11</BIBL> 
       <BIBTEXT> Kothari, S.; A. Leone; and C. Wasley. 2005. "Performance
 Matched Discretionary Accrual Measures." >i>Journal of Accounting and
 Economics>/i> 39, no. 1: 163-197.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>12</BIBL>	<BIBTEXT> Lian, J.X. 1993. "The Earnings Management
 of Initial Public Offering Firms." Working Paper, Taiwan: National
 Chengchi University.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>13</BIBL>	<BIBTEXT> McNichols, M.; P. Wilson; and L.
 DeAngelo. 1988. "Evidence of Earnings Management from the Provision for
 Bad Debts." >i>Journal of Accounting Research>/i> 26 (Supplement):
 1-40.</BIBTEXT>      </REF>	  <REF>        <BIBL>14</BIBL>	     
 <BIBTEXT> Teoh, S.H.; T.J. Wong; and G.R. Rao. 1998. "Are Accruals During
 Initial Public Offerings Opportunistic?" >i>Review of Accounting
 Studies>/i> 3, nos. 1-2: 175-208.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>15</BIBL>	<BIBTEXT> Welch, I. 1989. "Seasoned Offerings,
 Imitation Cost, and the Underpricing of Initial Public Offerings."
 >i>Journal of Finance>/i> 44, no. 2: 421-449.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> White, H. 1980. "A
 Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct
 Test for Heteroskedasticity." >i>Econometrica>/i> 48, no. 1:
 817-838.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:5:p:78-91




Template-Type: ReDIF-Article 1.0
Author-Name: LOKMAN GÜNDÜZ 
Author-X-Name-First: LOKMAN 
Author-X-Name-Last: GÜNDÜZ 
Author-Name: ABDULNASSER HATEMI-J 
Author-X-Name-First: ABDULNASSER 
Author-X-Name-Last: HATEMI-J 
Title:         Stock Price and Volume Relation in Emerging Markets       
Abstract:
       This paper explores the causal relationship between stock prices and
 volume figures for stock markets in the Czech Republic, Hungary, Poland,
 Russia, and Turkey. Prior to running causality tests, the time series
 properties of the data are carefully investigated and special attention is
 given to the choice of optimal lag order. Granger causality tests, based
 on the Toda-Yamamoto (1995) procedure, reveal that there is no causal
 relationship between the variables in the Czech Republic. In Hungary,
 there is a bidirectional causality irrespective of volume or market
 turnover tested. In Poland, while there is bidirectional causality between
 stock prices and volume, there exists a unidirectional causality running
 from market turnover to stock prices. The stock prices unidirectionally
 cause both volume and market turnover without any feedback in the case of
 Russia and Turkey. These results have important implications regarding
 market efficiency and the effects of different market characteristics on
 the stock price/volume relation.    
Journal: Emerging Markets Finance and Trade 
Pages: 29-44 
Issue: 1 
Volume: 41 
Year: 2005 
Month: 1 
Keywords: Eastern Europe, Granger noncausality test, market turnover, stock prices, Toda&#150, Yamamoto procedure, Turkey, volume, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=TREFKTE9GJ9JLR1U 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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       <BIBTEXT>Saatcioglu, K., and L.T. Starks. 1998. "The Stock
 Price-Volume Relationship in Emerging Stock Markets: The Case of Latin
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Handle: RePEc:mes:emfitr:v:41:y:2005:i:1:p:29-44




Template-Type: ReDIF-Article 1.0
Author-Name: PETER BACK&Eacute; 
Author-X-Name-First: PETER 
Author-X-Name-Last: BACK&Eacute; 
Author-Name: JARKO FIDRMUC 
Author-X-Name-First: JARKO 
Author-X-Name-Last: FIDRMUC 
Author-Name: THOMAS REININGER 
Author-X-Name-First: THOMAS 
Author-X-Name-Last: REININGER 
Author-Name: FRANZ SCHARDAX 
Author-X-Name-First: FRANZ 
Author-X-Name-Last: SCHARDAX 
Title:         Price Dynamics in Central and Eastern European EU Accession Countries       
Abstract:
       This paper reviews price dynamics in the Central and Eastern
 European accession countries between 1990 and 2001. The paper starts with
 an analysis of the short-term and long-term (dis)inflation developments.
 This is complemented by an appraisal of price level convergence. The major
 driving forces of price formation in the accession countries are found to
 be related to price liberalization during the transition to a market
 economy, to the prospective EU accession, and to the catching-up process
 (Balassa-Samuelson effect). Finally, the paper draws conclusions about
 future monetary and exchange rate policy options in the run-up to EU
 accession and beyond.	  
Journal: Emerging Markets Finance and Trade 
Pages: 42-78 
Issue: 3 
Volume: 39 
Year: 2003 
Month: 5 
Keywords: Balassa-Samuelson effect, core inflation, EU enlargement, price liberalization, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=P2DRB8C9U0VPDV3V 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Baldwin, R.E.; J.F.
 Francois; and R. Portes. 1997. "The Costs and Benefits of Eastern
 Enlargement: The Impact on the EU and Central Europe." Economic Policy,
 24, April, 127-176.</BIBTEXT>	    </REF>	<REF>	     <BIBL>2</BIBL>
	<BIBTEXT>Barro, R. 1991. "Economic Growth in a Cross-Section of
 Countries." Quarterly Journal of Economics 106, no. 2 (May):
 407-444.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Brada, J.C., and A.M. Kutan. 1999. "The End of Moderate Inflation
 in Three Transition Economies?" Working Paper B21-1999, Center for
 European Integration Studies, Bonn.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>4</BIBL>	<BIBTEXT>------. 2001. "The Convergence of Monetary
 Policy Between Candidate Countries and the European Union." Economic
 Systems 25, no. 3: 215-231.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>5</BIBL>        <BIBTEXT>Breuss, F. 2001. "Macroeconomic Effects of
 EU Enlargement for Old and New Members." Working Paper No. 143. WIFO,
 Vienna.</BIBTEXT>	</REF>	    <REF>	 <BIBL>6</BIBL>       
 <BIBTEXT>Bryan, M.F., and S.C. Cecchetti. 1993. "Measuring Core
 Inflation." NBER Working Paper No. 4303, Cambridge, MA.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT>Canzoneri, M.B.;
 B. Diba; and G. Eudey. 1996. "Trends in European Productivity and Real
 Exchange Rates: Implications for the Maastricht Convergence Criteria and
 for Inflation Targets After EMU." CEPR Discussion Paper No. 1417,
 London.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>       
 <BIBTEXT>Chiang, A.C. 1984. Fundamental Methods of Mathematical Economics.
 London: McGraw-Hill.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>9</BIBL>        <BIBTEXT>Christoffersen, P.F., and R.F. Wescott.
 1999. "Is Poland Ready for Inflation Targeting?" IMF Working Paper
 WP/99/41, Washington, DC.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>10</BIBL>	<BIBTEXT>Cincibuch, M., and D. Vavra. 2000.
 "Towards the EMU: A Need for Exchange Rate Flexibility." Czech National
 Bank, Prague.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	   
   <BIBTEXT>Coorey, S.; M. Mecagni; and E. Offerdal. 1998. "Disinflation in
 Transition Economies: The Role of Relative Price Adjustment." Finance and
 Development 35, no. 1: 30-33.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>12</BIBL>	<BIBTEXT>Coricelli, F., and B. Jazbec. 2001. "Real
 Exchange Rate Dynamics in Transition Economies." CEPR Discussion Paper
 2869, London.</BIBTEXT>      </REF>	  <REF>        <BIBL>13</BIBL>	   
   <BIBTEXT>Cottarelli, C.; M. Griffith; and R. Moghadam. 1998. "The
 Nonmonetary Determinants of Inflation: A Panel Data Study." IMF Working
 Paper WP/98/23, Washington, DC.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>14</BIBL>	<BIBTEXT>De Broeck, M., and T. Sløk. 2001.
 "Interpreting Real Exchange Rate Movements in Transition Countries." IMF
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       <BIBL>15</BIBL>	      <BIBTEXT>Deutsche Bundesbank. 2001. "Monetary
 Aspects of the Enlargement of the EU." Monthly Report 10, October,
 15-30.</BIBTEXT>      </REF>	   <REF>	<BIBL>16</BIBL>       
 <BIBTEXT>EBRD. 2000. Transition Report 2000. London: European Bank for
 Reconstruction and Development.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>17</BIBL>	<BIBTEXT>Eckstein, O. 1981. Core Inflation. Upper
 Saddle River, NJ: Prentice Hall.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>18</BIBL>	<BIBTEXT>European Central Bank. 1999. "Inflation
 Differentials in a Monetary Union." ECB Monthly Bulletin 1, no. 10
 (October), 35-44.</BIBTEXT>	  </REF>      <REF>	   <BIBL>19</BIBL> 
       <BIBTEXT>European Commission. 1997. "Agenda 2000, Volume I,
 Communication: For a Stronger and Wider Union." Brussels.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT>------. 2000.
 "2000 Regular Reports." Brussels (available at
 europa.eu.int/comm/enlargement/report_11_00/index.htm).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>------. 2001a.
 "The Economic Impact of Enlargement." Enlargement Paper No. 4, Directorate
 General for Economic and Financial Affairs, Brussels.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT>------. 2001b.
 "2001 Regular Reports." Brussels (available at
 europa.eu.int/comm/enlargement/report2001/index.htm#Regular
 Reports/).</BIBTEXT>	   </REF>      <REF>	    <BIBL>23</BIBL>	  
 <BIBTEXT>Ferenczi, B.; S. Valkovsky, and J. Vincze. 2001. "What Are
 Consumer Price Statistics Good For?" Working Paper 5, Hungarian National
 Bank, Budapest.</BIBTEXT>	</REF>	    <REF>	 <BIBL>24</BIBL>   
     <BIBTEXT>Fidrmuc, J., and T. Nowotny. 2000. "The Effects of the EU's
 Eastern European Enlargement on Austria." Focus on Transition,
 Oesterreichische Nationalbank 5, no. 1: 100-131.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>25</BIBL>	      <BIBTEXT>Fidrmuc, J., and F.
 Schardax. 2000. "Increasing Integration of Applicant Countries into
 International Financial Markets: Implications for Monetary and Financial
 Stability." In International Financial Markets and the Implications for
 Monetary and Financial Stability. Bank for International Settlements
 Conference Papers No. 8, Basel, pp. 92-109.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>26</BIBL>	     <BIBTEXT>Gottschalk, J., and D. Moore.
 2001. "Implementing Inflation Targeting Regimes: The Case of Poland."
 Journal of Comparative Economics 29, no. 1: 24-39.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>27</BIBL>	<BIBTEXT>Halpern, L., and C.
 Wyplosz. 2001. "Economic Transformation and Real Exchange Rates in the
 2000s: The Balassa-Samuelson Connection." Economic Survey of Europe, 1:
 227- 239 (available at www.unece.org/ead/ead_h.htm).</BIBTEXT>      </REF>
      <REF>	   <BIBL>28</BIBL>	  <BIBTEXT>Harvey, A.C., and A.
 Jaeger. 1993. "Detrending, Stylized Facts and the Business Cycle." Journal
 of Applied Econometrics 8, no. 3: 231-247.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>29</BIBL>	     <BIBTEXT>Hodrick, R.J., and E.C.
 Prescott. 1980. "Postwar U.S. Business Cycles: An Empirical
 Investigation." Discussion Paper No. 451, Carnegie Mellon University,
 Pittsburgh. [Published in 1997, Journal of Money, Credit and Banking 29,
 no. 1: 1-16].</BIBTEXT>      </REF>	  <REF>        <BIBL>30</BIBL>	   
   <BIBTEXT>Hosek, J. 2000. "Price Dynamics in the Czech Republic." Czech
 National Bank, Prague.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>31</BIBL>	<BIBTEXT>IMF. 2000. World Economic Outlook.
 Washington, DC: International Monetary Fund.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>32</BIBL>	     <BIBTEXT>Keuschnigg, C., and W.
 Kohler. 2001. "An Incumbent View on Eastern Enlargement of the EU. Part
 II: The Austrian Case." Empirica 28, no. 2: 159-185.</BIBTEXT>      </REF>
      <REF>	   <BIBL>33</BIBL>	  <BIBTEXT>Losoncz, M. 2001. "A
 Gazdasági és Monetáris Unió és Magyarország nemzetközi versenyképessége"
 [Economic and Monetary Union and Hungary's International Competitiveness].
 Európai Tükör 6, no. 4: 65-87.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>34</BIBL>	<BIBTEXT>Moore, D. 2001. "Inflation in
 Romania--Developments and Determinants. Romania--Selected Issues." IMF
 Staff Paper, Washington, DC.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>35</BIBL>	<BIBTEXT>OECD. 2001. "PPP for OECD Countries
 1970-2000." Paris (available at www.oecd.org/
 oecd/pages/home/displaygeneral/0,3380,EN-links_abstract-513-15-no-no-323-0
 ,FF.html).</BIBTEXT>	   </REF>      <REF>	    <BIBL>36</BIBL>	  
 <BIBTEXT>Orlowski, L. 2000. "Monetary Policy Regimes and Real Exchange
 Rates in Central Europe's Transition Economies." Economic Systems 24, no.
 2: 145-166.</BIBTEXT>	    </REF>	<REF>	     <BIBL>37</BIBL>	   
 <BIBTEXT>Pelkmans, J.; D. Gros; and J.N. Ferrer. 2000. "Long-Run Economic
 Aspects of the European Union's Eastern Enlargement." WRR Working Document
 W 109, The Hague.</BIBTEXT>	  </REF>      <REF>	   <BIBL>38</BIBL> 
       <BIBTEXT>Pujol, T., and M. Griffith. 1998. "Moderate Inflation in
 Poland: A Real Story." In Moderate Inflation: The Experience of Transition
 Economies, ed. C. Cottarelli and G. Szapáry, pp. 197-229. Washington, DC:
 International Monetary Fund.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>39</BIBL>	<BIBTEXT>Ravn, M.O., and H. Uhlig. 2001. "On
 Adjusting the HP-Filter for the Frequency of Observations." Working Paper
 No. 479, CESifo, Munich.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>40</BIBL>	<BIBTEXT>Reininger, T. 2000. "An International
 Comparison of Energy Prices in Selected Accession Countries."
 Oesterreichische Nationalbank, Vienna.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>41</BIBL>	    <BIBTEXT>Reininger, T., and F. Schardax. 2001.
 "The Financial Sector in Five Central and Eastern European Countries: An
 Overview." Focus on Transition, Oesterreichische Nationalbank 6, no. 1:
 30-64.</BIBTEXT>      </REF>	   <REF>	<BIBL>42</BIBL>       
 <BIBTEXT>Riboud, M.; C. Silva-Jauregui; and C. Sánchez-Páramo. 2001. "Does
 Eurosclerosis Matter? Institutional Reform and Labor Market Performance in
 Central and Eastern European Countries in the 1990s." World Bank,
 Washington, DC, June.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>43</BIBL>	<BIBTEXT>Rother, P.C. 2000. "The Impact of
 Productivity Differentials on Inflation and the Real Exchange Rate: An
 Estimation of the Balassa-Samuelson Effect in Slovenia." Republic of
 Slovenia: Staff Report for the 1999 Article IV Consultation and Selected
 Issues, International Monetary Fund, Washington, DC, pp. 26-38.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>44</BIBL>	     <BIBTEXT>Rybinski, K.
 2000. "Monetary Policy Impact upon Disinflation Process in Poland" [in
 Polish, English summary]. Bank i Kredyt 31, no. 7-8: 56-77, 162.</BIBTEXT>
      </REF>	  <REF>        <BIBL>45</BIBL>	      <BIBTEXT>Schardax, F.
 2001. "Real Convergence, Real Exchange Rates and Inflation in the CEECs."
 Paper presented at the conference "The Polish Way to the Euro," National
 Bank of Poland, Warsaw, October 22-23.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>46</BIBL>	    <BIBTEXT>Simon, A., and M.A. Kovacs. 1998.
 "Components of the Real Exchange Rate in Hungary." Working Paper 3,
 National Bank of Hungary, Budapest.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>47</BIBL>	 <BIBTEXT>Skreb, M. 1998. "A Note on Inflation." In
 Moderate Inflation: The Experience of Transition Economies, ed. C.
 Cottarelli and G. Szapáry, pp. 179-184. Washington, DC: International
 Monetary Fund.</BIBTEXT>      </REF>	   <REF>	<BIBL>48</BIBL>    
    <BIBTEXT>Szapáry, G. 2000. "Maastricht and the Choice of the Exchange
 Rate Regime in Transition Countries During the Run-Up to EMU." National
 Bank for Hungary, Working Paper 7/2000, Budapest.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>49</BIBL>        <BIBTEXT>------. 2001. "Comments on
 the Balassa-Samuelson Effect in the EU Candidate Countries." Statement at
 the Béla Balassa Memorial Conference, Budapest, October 17-18.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>50</BIBL>	    <BIBTEXT>Tzanninis, D.
 2001. "Modeling Inflation in the Czech Republic: Short-Run and Long-Run
 Dynamics, Czech Republic--Selected Issues." IMF Staff Paper, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>51</BIBL>	   
 <BIBTEXT>Van Elkan, R. 1996. "Inflation Inertia in Hungary,
 Hungary--Selected Issues." IMF Staff Paper, Washington, DC.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>52</BIBL>	 <BIBTEXT>WIIW (Vienna
 Institute for International Economic Studies). 2001. "Transition Countries
 in 2001: Robust Domestic Demand, Concerns About External Fragility
 Reappear." Research Report No. 277, Vienna.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>53</BIBL>	     <BIBTEXT>Wozniak, P. 1998. "Relative
 Prices and Inflation in Poland, 1989-1997: The Special Role of
 Administered Price Increases." World Bank Working Paper 1879, Washington,
 DC.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:3:p:42-78




Template-Type: ReDIF-Article 1.0
Author-Name: BILIN NEYAPTI 
Author-X-Name-First: BILIN 
Author-X-Name-Last: NEYAPTI 
Title:         Trends in Workers' Remittances : A Worldwide Overview       
Abstract:
       Increasing economic integration around the world bestows workers'
 remittances a growing potential importance as a source of financing
 foreign transactions. This paper investigates trends in workers'
 remittances in developed and less developed countries since the 1980s.
 Both the magnitude of workers' remittance flows, in comparison to some
 other major aggregates, such as gross domestic product and foreign direct
 investment flows, and the relative stability of workers' remittances
 reveal that policies to attract workers' remittances bear great importance
 for especially less developed economies.    
Journal: Emerging Markets Finance and Trade 
Pages: 83-90 
Issue: 2 
Volume: 40 
Year: 2004 
Month: 3 
Keywords: financing current account, worker remittances, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K1NNJKJFV69DCXA9 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Aydas, O.T.; B. Neyapti;
 and K. Metin-Ozcan. 2003. "Determinants of Workers Remittances: The Case
 of Turkey." Bilkent University, Ankara.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>2</BIBL>	    <BIBTEXT>Lucas, R.E.B., and O. Stark. 1985.
 "Motivations to Remit: Evidence from Botswana." Journal of Political
 Economy, 93, no. 51: 901-918.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>3</BIBL>        <BIBTEXT>McCormick, B., and J. Wabha. 2000.
 "Overseas Employment and Remittances to a Dual Economy." Economic Journal,
 110, no. 463: 509-534.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>4</BIBL>        <BIBTEXT>Poirine, B. 1997. "A Theory of Remittances
 as an Implicit Family Loan Agreement." World Development 25, no. 4:
 589-611.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT>Rodriguez, E.G. 1996. "International Migrant's Remittances in the
 Philippines." Canadian Journal of Economics 29, special issue part 2:
 S427-S432.</BIBTEXT>	   </REF>      <REF>	    <BIBL>6</BIBL>	 
 <BIBTEXT>Russell, S.S. 1986. "Remittances from International Migration."
 World Development 14, no. 6: 677-696.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>7</BIBL>	  <BIBTEXT>Swamy, G. 1981. "International Migrant
 Worker's Remittances: Issues and Prospects." Working Paper No. 481, World
 Bank, Washington, DC.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>8</BIBL>        <BIBTEXT>World Bank. 2003. "Global Development
 Finance." Washington, DC.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:2:p:83-90




Template-Type: ReDIF-Article 1.0
Author-Name: AKTHAM MAGHYEREH 
Author-X-Name-First: AKTHAM 
Author-X-Name-Last: MAGHYEREH 
Title:         Electronic Trading and Market Efficiency in an Emerging Market: The Case of the Jordanian Capital Market       
Abstract:
       Realizing the benefits of stock markets in real economies, the
 Jordanian capital market--the Amman Stock Exchange (ASE)--was established
 in 1978. After more than two decades, the manual trading system of the
 market was replaced by a computerized trading mechanism on March 27, 2000.
 The primary objective of the new system is to offer investors more
 protection and transparency. This paper examines the efficiency of the ASE
 vis-à-vis the date of its automation. Based on a multifactor model with
 time-varying coefficients, the results show that the moved to electronic
 trading system had no significant impact on the ASE's efficiency. For
 volatility, however, we found evidence that suggests there was an increase
 in volatility after the introduction of automated trading.    
Journal: Emerging Markets Finance and Trade 
Pages: 5-19 
Issue: 4 
Volume: 41 
Year: 2005 
Month: 8 
Keywords: Amman Stock Exchange, electronic trading system, evolving market efficiency, Kalman filter, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=6TPFC9EHK9B3T81V 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 "Fitting Autoregressive Models for Prediction." Annals of the Institute of
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 Lauterbach. 1997. "Market Microstructure and Securities Values: Evidence
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 Specialist Markets Before and After Automation." Financial Review 35, no.
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	<BIBTEXT>Green, C.; R. Manos; V. Murinde; and J. Suppakitjarak.
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 UK.</BIBTEXT>	    </REF>	<REF>	     <BIBL>15</BIBL>	   
 <BIBTEXT>Green, C.; P. Maggioni; and V. Murinde. 2000. "Regulatory Lessons
 from Emerging Stock Markets from a Century of Evidence on Transaction
 Costs and Share Price Volatility in the London Stock Exchange." Journal of
 Banking and Finance 24, no. 4, 577-601.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>16</BIBL>	     <BIBTEXT>Green, W.H. 2003. Econometric
 Analysis, 5th ed. Upper Saddle River, NJ: Prentice Hall.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT>Kim, E., and V.
 Singal. 2000. "Stock Market Openings: Experience of Emerging Econo-mies."
 Journal of Business 73, no. 1 (January): 25-66.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT>Massimb, M.N., and B.D.
 Phelps. 1994. "Electronic Trading, Market Structure and Liquid-ity."
 Financial Analysts Journal 50, no. 1: 39-50.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT>Naidu, G.N., and M.S. Rozeff.
 1994. "Volume, Volatility, Liquidity and Efficiency on the Singapore Stock
 Exchange Before and After Automation." Pacific-Basin Financial Journal 2,
 no. 1 (January): 23-42.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>20</BIBL>	<BIBTEXT>Ngugi, R.; V. Murinde; and C. Green. 2003.
 "How Have the Emerging Stock Exchange in Africa Responded to Market
 Reforms?" Journal of African Business 4, no. 2: 89-97.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>Ramsey, J. 1969.
 "Tests for Specification Errors in Classical Least-Squares Regression
 Analysis." Journal of the Royal Statistical Society Series B, 31 (no. 2):
 350-371.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT>Schwarz, G. 1978. "Estimating the Dimension of a Model." Annals
 of Statistics 6, no. 2: 461-464.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>23</BIBL>	<BIBTEXT>Sioud, O., and D. Hmaeid. 2000. "The
 Impact of Automation on Liquidity, Volatility, Stock Returns and
 Efficiency: Evidence from the Tunisian Stock Market." Working Paper,
 Institut des Hautes Etudes Commerciales de Tunis, Tunisia.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>24</BIBL>	 <BIBTEXT>Stoll, H. 1999.
 Microstructure: The Organization of Trading and Short-Term Price Behavior,
 vols. 1 and 2. Cheltenham, UK: Edward Elgar.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT>Taylor, N.; D. Van Dijk; P.H.
 Franses; and A. Lucas. 2000. "SETS, Arbitrage Activity and Stock Price
 Dynamics." Journal of Banking and Finance 24, no. 8: 1289-1306.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>26</BIBL>	    
 <BIBTEXT>Zalewska-Mitura, A., and Hall, S. 1999. "Examining the First
 Stages of Market Performance: A Test for Evolving Market Efficiency."
 Economics Letters 64, no. 1: 1-12.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:4:p:5-19




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 5 
Volume: 43 
Year: 2007 
Month: 10 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=P3P3GL670R497477 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:43:y:2007:i:5:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: JULIA W&Ouml;RZ 
Author-X-Name-First: JULIA 
Author-X-Name-Last: W&Ouml;RZ 
Title:         Dynamics of Trade Specialization in Developed and Less Developed Countries       
Abstract:
       The comparison of revealed comparative advantages for six regions
 (Organization for Economic Cooperation and Development [OECD] north and
 south, South and East Asia, Latin America, Central and Eastern Europe) and
 four skill types (from low- to high-skill-intensive industries) over the
 years 1981 to 1997 draws a clear picture of differentiation in industrial
 trade patterns, which has changed quantitatively but not qualitatively
 over time. There is a clear distinction between the trade patterns of
 advanced OECD countries and all other regions in the sample with respect
 to skill intensity of export industries. Two related trends dominate the
 picture: a trend toward convergence and a trend toward despecialization.
 Although similar to what has been previously observed for relatively
 homogenous groups of countries, it is surprising to also find these trends
 in this larger and more heterogeneous sample.	  
Journal: Emerging Markets Finance and Trade 
Pages: 92-111 
Issue: 3 
Volume: 41 
Year: 2005 
Month: 5 
Keywords: dynamics of revealed comparative advantage, structural change, trade specialization, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=7C1GC0YE5UYHDNVT 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Aiginger, K. 1999. "Do
 Industrial Structures Converge? A Survey of the Empirical Literature on
 Specialisation and Concentration of Industries." Austrian Institute of
 Economic Research (WIFO), Working Paper 116, Vienna.</BIBTEXT>      </REF>
      <REF>	   <BIBL>2</BIBL>	 <BIBTEXT>Balassa, B. 1965. "Trade
 Liberalization and 'Revealed' Comparative Advantage." Manchester School of
 Economic and Social Studies 33, no. 2: 99-123.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>------. 1967. Trade
 Liberalization Among Industrial Countries: Objectives and Alternatives.
 New York: McGraw-Hill.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>4</BIBL>        <BIBTEXT>Dulleck, U.; N. Foster; R. Stehrer; and J.
 Wörz. 2005. "Dimensions of Quality Upgrading in CEECs." Economics of
 Transition 13, no. 1: 51-76.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>5</BIBL>        <BIBTEXT>Landesmann, M., and R. Stehrer. 2002.
 "Trade Structures, Quality Differentiation and Technical Barriers in
 CEE-EU Trade." The Vienna Institute for International Economic Studies
 (WIIW), Research Report no. 282, Vienna.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>6</BIBL>	     <BIBTEXT>Laursen, K. 1998. "Revealed
 Comparative Advantage and the Alternatives as Measures of International
 Specialisation." Danish Research Unit for Industrial Dynamics (DRUID),
 Working Paper no. 1998-30, Frederiksberg.</BIBTEXT>	  </REF>      <REF>
	<BIBL>7</BIBL>	      <BIBTEXT>------. 2000. Trade Specialisation,
 Technology and Economic Growth: Theory and Evidence from Advanced
 Countries. Cheltenham, UK: Edward Elgar.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>8</BIBL>	     <BIBTEXT>Midelfart-Knarvik, K.H.; H.G.
 Overman; S.J. Redding; and A.J. Venables. 2000. "The Location of European
 Industry." European Economy Economic Paper no. 142, European Commission,
 Brussels.</BIBTEXT>	  </REF>      <REF>	   <BIBL>9</BIBL>	
 <BIBTEXT>Peneder, M. 1999. "Intangible Investment and Human Resources: The
 New WIFO Taxonomy of Manufacturing Industries." Austrian Institute of
 Economic Research (WIFO), Working Paper no. 114, Vienna.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT>Pigato, M.; C.
 Farah; K. Itakura; K. Jun; W. Martin; K. Murrell; and T.G. Srinivasa.
 1997. South Asia's Integration into the World Economy. Washington, DC:
 World Bank.</BIBTEXT>	    </REF>	<REF>	     <BIBL>11</BIBL>	   
 <BIBTEXT>Timmer, M. 2000. The Dynamics of Asian Manufacturing; A
 Comparative Perspective in the Late Twentieth Century. Cheltenham, UK:
 Edward Elgar.</BIBTEXT>      </REF>	  <REF>        <BIBL>12</BIBL>	   
   <BIBTEXT>Vollrath, T.L. 1991. "A Theoretical Evaluation of Alternative
 Trade Intensity Measures of Revealed Comparative Advantage."
 Weltwirtschaftliches Archiv 127: 265-280.</BIBTEXT>	  </REF>      <REF>
	<BIBL>13</BIBL>        <BIBTEXT>Wörz, J. 2003. "Skill upgrading in
 Central and Eastern European Manufacturing Trade." Empirical Economics
 Letters 2, no. 6: 247-256.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT>------. 2004. "Specialization Patterns in
 CEEC Manufacturing Output." Vienna Institute Monthly Report (February):
 5-10.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:41:y:2005:i:3:p:92-111




Template-Type: ReDIF-Article 1.0
Author-Name: Vuslat  Us 
Author-X-Name-First: Vuslat  
Author-X-Name-Last: Us 
Title: Alternative Monetary Policy Rules in the Turkish Economy Under an Inflation-Targeting Framework 
Abstract:
 This study analyzes alternative monetary-policy rules in Turkey under
 inflation targeting (IT) using a small-scale structural macroeconomic
 model. The alternatives are the Taylor rule, the monetary conditions index
 (MCI) rule under strict IT, and the MCI rule under flexible IT. Using the
 MCI rule under strict IT produces slightly better results than under
 flexible IT and, thus, is preferable. The results also indicate that the
 economy stabilizes much more quickly, and shows significantly less
 volatility, in the second alternative. Following the Taylor rule should
 definitely be avoided. However, in open economies, ignoring exchange rates
 when setting inflation targets is certainly not an optimal solution.
Journal: Emerging Markets Finance and Trade 
Pages: 82-101 
Issue: 2 
Volume: 43 
Year: 2007 
Month: 4 
Keywords: inflation targeting, macroeconomic model, MCI rule, monetary-policy rule, Taylor rule, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J015458LV3320RG1 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ball, L.M. 1999a.
 "Policy Rules for Open Economies." In >i>Monetary Policy Rules>/i> ed.
 J.B. Taylor, pp. 127-144. Chicago: University of Chicago Press.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Ball, L.M.
 1999b. "Efficient Rules for Monetary Policy." >i>International
 Finance>/i>2, no. 1: 63-83.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>3</BIBL>        <BIBTEXT> Ball, L.M. 2000. "Policy Rules and
 External Shocks." Working Paper No. W7910, National Bureau of Economic
 Research, Cambridge, MA.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>4</BIBL>        <BIBTEXT> Berument, H., and M. Pasaogullari. 2003.
 "Effects of the Real Exchange Rate on Output and Inflation: Evidence from
 Turkey." >i>Developing Economies>/i>41, no. 4: 401-435.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Berument, H.;A.
 Inamlik; and H. Olgun. 2004. "Inflation and Growth: Positive or Negative
 Relationship." Department of Economics, Bilkent University, Ankara,
 Turkey.</BIBTEXT>	</REF>	    <REF>	 <BIBL>6</BIBL>       
 <BIBTEXT> Calvo, G.A. 1999. "Fixed Versus Flexible Exchange Rates:
 Preliminaries of a Turn-of-Millennium Rematch." Economics Department,
 University of Maryland, College Park, MD, May 16.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>7</BIBL>	      <BIBTEXT> Eichengreen, B. 2005. "Can
 Emerging Markets Float? Should They Inflation Target?" In >i>Exchange
 Rates, Capital Flows and Policy>/i> ed. R.L. Driver, P.J.N. Sinclair, and
 C. Thoenissen, pp. 10-38. London: Routledge.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> ÅahinbeyogËlu, G. 2004.
 "Monetary Transmission Mechanism: A View from a High Inflationary
 Environment." In >i>How Monetary Policy Works>/i> ed. L. Mahadeva and P.
 Sinclair, pp. 231-254. Abingdon: Routledge.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Svensson, L.E.O. 1997.
 "Inflation Forecast Targeting: Implementing and Monitoring Inflation
 Targets." >i>European Economic Review>/i>41, no. 6: 1111-1146.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>10</BIBL>	    <BIBTEXT> Svensson,
 L.E.O. 1999. "Inflation Targeting as a Monetary Policy Rule." >i>Journal
 of Monetary Economics>/i>43, no. 3: 607-654.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Taylor, J.B. 1993.
 "Discretion Versus Policy Rules in Practice." >i>Carnegie-Rochester
 Conference Series on Public Policy>/i>39 (December): 195-214.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>12</BIBL>	   <BIBTEXT> Us, V. 2004.
 "Monetary Transmission Mechanism in Turkey Under the Monetary Conditions
 Index: An Alternative Policy Rule." >i>Applied Economics>/i>36, no. 9:
 967-976.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:82-101




Template-Type: ReDIF-Article 1.0
Author-Name: PAULO DRUMMOND 
Author-X-Name-First: PAULO 
Author-X-Name-Last: DRUMMOND 
Author-Name: ALI MANSOOR 
Author-X-Name-First: ALI 
Author-X-Name-Last: MANSOOR 
Title:         Macroeconomic Management and the Devolution of Fiscal Powers       
Abstract:
       Several of the transition economies are devolving fiscal authority
 to subnational governments at a time when it is also important to
 consolidate fiscal policy. This can be problematic because, without
 appropriate care, the central government's ability to determine the level
 and structure of revenues, public spending, and borrowing may well
 diminish as fiscal policy is devolved. This paper focuses on how the
 center can maintain its ability to conduct fiscal policy while devolving
 revenue, spending, and borrowing powers to lower levels of government.
 Empirical evidence shows that countries with good governance have
 maintained fiscal control despite a high degree of fiscal devolution. And
 decentralization is associated with better fiscal outcomes for
 middle-income countries with strong governance. Fiscal management issues
 are explored in four key areas: budget coordination mechanisms at the
 macro level, tax-effort incentives and revenue-sharing mechanisms,
 expenditure control and hard-budget constraints, and criteria and rules
 for borrowing.    
Journal: Emerging Markets Finance and Trade 
Pages: 63-85 
Issue: 1 
Volume: 39 
Year: 2003 
Month: 1 
Keywords: fiscal policies, intergovernmental relations, state and local government, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=HCF34QCNJ71N4G6X 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Ahmad, E.; D. Hewitt;
 and E. Ruggiero. 1997. "Assigning Expenditure Responsibilities." In Fiscal
 Federalism in Theory and Practice, ed. T. Ter-Minassian, pp. 25-48.
 Washington, DC: International Monetary Fund.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Burki, S.J.; G.E. Perry; and
 W.R. Dillinger. 1999. "Beyond the Center: Decentralizing the State." World
 Bank Latin American and Caribbean Studies, Washington, DC (www
 .worldbank.org/html/extdr/offrep/lac/pubs/beyondcenter.pdf).</BIBTEXT>    
  </REF>      <REF>	   <BIBL>3</BIBL>	 <BIBTEXT>Cordoba, J.P.,
 and L. de Mello. Forthcoming. "Fiscal Decentralization and Subnational
 Indebtedness: Experiences from Latin America." IMF Working Paper,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>    
    <BIBTEXT>de Losada, S. 1998. "Bolivia." In Democracy, Decentralization
 and Deficits in Latin America, ed. K. Fukasaku and R. Hausmann, pp.
 201-203. Paris: OECD Development Center.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>5</BIBL>	     <BIBTEXT>Drummond, P., and A. Mansoor. 2002.
 "Macroeconomic Management and the Devolution of Fiscal Powers." IMF
 Working Paper WP/02/76, Washington, DC.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>6</BIBL>	    <BIBTEXT>Fukasaku, K., and L.R. de Mello. 1999.
 "Fiscal Decentralization in Emerging Economies: Governance Issues." Paris:
 Inter-American Bank/OECD Development Center.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT>Hommes, R. 1995. "Conflicts
 and Dilemmas of Decentralization." Paper presented at the Annual Bank
 Conference on Development Economics, World Bank, Washington, DC.</BIBTEXT>
      </REF>	  <REF>        <BIBL>8</BIBL>	     <BIBTEXT>Kaufmann, D.;
 A. Kraay; and P. Zoido-Lobatón. 1999. "Aggregating Governance Indicators."
 World Bank Discussion Paper Series no. 2195, Washington, DC.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>9</BIBL>	 <BIBTEXT>------. 2000.
 "Governance Matters: From Measurement to Action." Finance & Development
 37, no. 2 (June): 10-13
 (www.imf.org/external/pubs/ft/fandd/2000/06/index.htm).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT>Kitunzi, A. n.d.
 "Fiscal Decentralization in Developing Countries: An Overview." World
 Bank, Washington, DC (wbln0018.worldbank.org/network/prem/premdoclib.nsf/
 58292ab451257bb9852566b4006ea0c8/8aa17d08e94022da852567e10009805c/).</BIBT
 EXT>	   </REF>      <REF>	    <BIBL>11</BIBL>	   <BIBTEXT>Oates,
 W.E. 1972. Fiscal Federalism. New York: Harcourt Brace
 Jovanovich.</BIBTEXT>	    </REF>	<REF>	     <BIBL>12</BIBL>	   
 <BIBTEXT>OECD. 1999a. "Taxing Powers of State and Local Government." OECD
 Tax Policy Studies, Paris.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>13</BIBL>	<BIBTEXT>------. 1999b. "Survey on Fiscal Design
 Across Levels of Government." Summary Note, Directorate for Financial,
 Fiscal and Enterprise Affairs, Organization for Economic Cooperation and
 Development, Paris.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>14</BIBL>	<BIBTEXT>Ostrom, E.; L. Schroeder; and S. Wynne.
 1993. Institutional Incentives and Sustainable Development: Infrastructure
 Policies in Perspective. Boulder, CO: Westview Press.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT>Shah, A. 1999.
 "Indonesia and Pakistan: Fiscal Decentralization--An Elusive Goal?" In
 Fiscal Decentralization in Developing Countries, ed. R.M. Bird and F.
 Vaillancourt, pp. 115-151. New York: Cambridge University Press.</BIBTEXT>
      </REF>	  <REF>        <BIBL>16</BIBL>	     
 <BIBTEXT>Ter-Minassian, T. 1997. "Decentralizing Government." Finance &
 Development 34 (September): 36-39
 (www.worldbank.org/fandd/english/0997/articles/050997.htm).</BIBTEXT>	   
 </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:1:p:63-85




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 3 
Volume: 39 
Year: 2003 
Month: 5 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U4B16XJR78W8RB0C 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:39:y:2003:i:3:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Heng Chih Chou 
Author-X-Name-First: Heng Chih 
Author-X-Name-Last: Chou 
Author-Name: Wei Ning Chen 
Author-X-Name-First: Wei Ning 
Author-X-Name-Last: Chen 
Author-Name: Dar Hsin Chen 
Author-X-Name-First: Dar Hsin 
Author-X-Name-Last: Chen 
Title: The Expiration Effects of Stock-Index Derivatives: Empirical Evidence from the Taiwan Futures Exchange 
Abstract:
 Five index derivatives with the same expiration days, settlement days, and
 settlement systems have been consecutively traded on the Taiwan Futures
 Exchange (TAIFEX) since 1998. This paper examines the expiration effects
 of TAIFEX index derivatives on the underlying stock market between 1998
 and 2002. Our empirical findings show no significant expiration effects on
 the expiration day, but evidence demonstrates that expiration effects have
 strengthened as more relative index derivatives are listed on the TAIFEX.
 Meanwhile, the expiration effects seem to shift to the opening of the
 settlement day. In general, the expiration effects in Taiwan are not as
 significant as those in U.S. markets but are stronger than those in the
 Hong Kong market. The special settlement procedures adopted by the TAIFEX
 may account for the difference.
Journal: Emerging Markets Finance and Trade 
Pages: 81-102 
Issue: 5 
Volume: 42 
Year: 2006 
Month: 10 
Keywords: abnormal volume effect, expiration effect, price effect, price reversal, volatility effect, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U620555H33108121 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Chamberlain, T.W.; C.S.
 Cheung; and C.C.Y. Kwan. 1989. "Expiration Effects of Index Futures and
 Options: Some Canadian Evidence." >i>Financial Analysts Journal>/i> 45,
 no. 1: 67-71.</BIBTEXT>      </REF>	  <REF>        <BIBL>2</BIBL>	   
  <BIBTEXT> Chen, C., and J. Williams. 1994. "Triple-Witching Hour, the
 Change in Expiration Timing, and Stock Market Reaction." >i>Journal of
 Futures Markets>/i> 14, no. 3: 275-292.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>3</BIBL>	    <BIBTEXT> Chow, Y.F.; H.H.M. Yung; and H.
 Zhang. 2003. "Expiration Effects: The Case of Hong Kong." >i>Journal of
 Futures Markets>/i> 23, no. 1: 67-86.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>4</BIBL>	  <BIBTEXT> Corredor, P.; P. Lechon; and Y.R.
 Santamaria. 2001. "Option Expiration Effects in Small Markets: The Spanish
 Stock Exchange." >i>Journal of Futures Markets>/i> 21, no. 10:
 905-928.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT> Hancock, G.D. 1993. "Whatever Happened to the Triple Witching
 Hour?" >i>Financial Analysts Journal>/i> 49, no. 3: 66-72.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Karolyi, A.G.
 1996. "Stock Market Volatility Around Expiration Days in Japan."
 >i>Journal of Derivatives>/i> 4, no. 1: 23-43.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> Masulis, R.W. 1980. "The
 Effects of Capital Structure Change on Security Prices." >i>Journal of
 Financial Economics>/i> 8, no. 1: 139-178.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Pope, P.F., and P.K. Yadav.
 1992. "The Impact of Expiration on Underlying Stocks: The UK Evidence."
 >i>Journal of Business Finance and Accounting>/i> 19, no. 3:
 329-344.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Schlag, C. 1996. "Expiration Effects of Stock Index Derivatives
 in Germany." >i>European Financial Management>/i> 1, no. 1:
 69-95.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>       
 <BIBTEXT> Stoll, H.R., and R.E. Whaley. 1986. "Expiration Effects of Index
 Options and Futures." Monograph Series in Finance and Economics, Monograph
 1986-3, Graduate School of Business Administration, New York
 University.</BIBTEXT>	    </REF>	<REF>	     <BIBL>11</BIBL>	   
 <BIBTEXT> Stoll, H.R., and R.E. Whaley. 1987. "Program Trading and
 Expiration Effects." >i>Financial Analysts Journal>/i> 43, no. 1:
 16-28.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>       
 <BIBTEXT> Stoll, H.R., and R.E. Whaley. 1990. "Program Trading and
 Individual Stock Returns: Ingredients of the Triple-Witching Brew."
 >i>Journal of Business>/i> 63, no. 1: 165-192.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT> Stoll, H.R., and R.E.
 Whaley. 1991. "Expiration Effects: What Has Changed?" >i>Financial
 Analysts Journal>/i> 41, no. 1: 58-72.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>14</BIBL>	    <BIBTEXT> Stoll, H.R., and R.E. Whaley. 1997.
 "Expiration Effects of the All Ordinaries Share Price Index Futures:
 Empirical Evidence and Alternative Settlement Procedures." >i>Australian
 Journal of Management>/i> 22, no. 2: 139-167.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Swidler, S.; L. Schwartz;
 and R. Kristiansen. 1994. "Option Expiration Effects in Small Markets:
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 Engineering>/i> 3, no. 2: 177-195.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:5:p:81-102




Template-Type: ReDIF-Article 1.0
Author-Name: Christophe J. Godlewski 
Author-X-Name-First: Christophe J. 
Author-X-Name-Last: Godlewski 
Title: Are Ratings Consistent with Default Probabilities?: Empirical Evidence on Banks in Emerging Market Economies 
Abstract:
 The role of agency ratings as a market-disciplining device, through the
 production of information on default risk, should grow within Pillar 3 of
 the Basel II reform. For the role to be efficient, the rating must be
 effectively consistent with the counterpart's default probability,
 particularly for emerging markets, where less-developed financial markets,
 banking-sector accrued opacity, and an inadequate regulatory,
 institutional, and legal environment affect banks' risk-taking behavior
 and therefore default risk. This paper uses scoring and mapping methods to
 study the consistency of bank ratings with their default probabilities in
 emerging market economies. Results show a correct quantification of agency
 rating grades, and thus, their consistency. However, mapping results also
 show that the rating tends to aggregate banks' default risk information
 into intermediate-low rating grades.
Journal: Emerging Markets Finance and Trade 
Pages: 5-23 
Issue: 4 
Volume: 43 
Year: 2007 
Month: 8 
Keywords: bank rating, default probability, emerging market economies, market discipline, scoring and mapping methods, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=113660760T203146 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Allen, F., and D. Gale.
 2000. >i>Comparing Financial Systems>/i>. Cambridge, MA: MIT
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 <BIBTEXT> Blochwitz, S., and S. Holh. 2001. "Reconciling Ratings." >i>Risk
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      <BIBTEXT> Carey, M., and M. Hrycay. 2001. "Parametrizing Credit Risk
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 Credit, and Banking>/i> 33, no. 4: 900-925.</BIBTEXT>	    </REF>     
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 Yawitz; and B.E. Roberts. 1987. "The Informational Content of Bond
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 the Rate Spread of Corporate Bonds." >i>Journal of Finance>/i> 56, no. 1:
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 Role of Rating Agencies: Evidence from the East Asian Crisis." >i>Economic
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 <BIBL>17</BIBL>	<BIBTEXT> Godlewski, C.J. 2006. "Regulatory and
 Institutional Determinants of Credit Risk-Taking and Banks' Default in
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 Market Finance>/i> 5, no. 2: 183-206.</BIBTEXT>      </REF>	  <REF>    
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 Approach to Rate the Raters." Working Paper, Center for Financial Studies,
 University of Frankfurt, Germany.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>19</BIBL>	<BIBTEXT> Hamilton, D.T.; P. Varma; S. Ou; and R.
 Cantor. 2004. "Default and Recovery Rates of Corporate Bond Issuers: A
 Statistical Review of Moody's Ratings Performance, 1920-2003, Special
 Comment." Moody's Investors Service, Global Credit Research, Center for
 Financial Studies, New York.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>20</BIBL>	<BIBTEXT> Hand, J.R.; R.W. Holthausen; and R.W.
 Leftwich. 1992. "The Effects of Bond-Rating Agency Announcements on Bond
 and Stock Prices." >i>Journal of Finance>/i> 47, no. 2: 733-752.</BIBTEXT>
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 J., and C.M. Turner. 1999. "The Slope of the Credit Yield Curve for
 Speculative-Grade Issuers." >i>Journal of Finance>/i> 54, no. 5:
 1869-1884.</BIBTEXT>	   </REF>      <REF>	    <BIBL>22</BIBL>	  
 <BIBTEXT> Hull, J.; M. Predescu; and A. White. 2004. "The Relationship
 Between Credit Default Swap Spreads, Bond Yields, and Credit Rating
 Announcements." >i>Journal of Banking and Finance>/i> 28, no. 11:
 2789-2811.</BIBTEXT>	   </REF>      <REF>	    <BIBL>23</BIBL>	  
 <BIBTEXT> Jafry, Y., and T. Schuermann. 2004. "Measurement, Estimation,
 and Comparison of Credit Migration Matrices." >i>Journal of Banking and
 Finance>/i> 28, no. 11: 2603-2639.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>24</BIBL>	<BIBTEXT> Jewell, J., and M. Livingston. 1999. "A
 Comparison of Bond Ratings from Moody's, S&P and Fitch IBCA." >i>Financial
 Markets, Institutions and Instruments>/i> 8, no. 4: 1-45.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>25</BIBL>	 <BIBTEXT> Kaplan, J., and
 J.A. Lopez. 2004. "Incorporating Equity Market Information into
 Supervisory Monitoring Models." >i>Journal of Money, Credit and
 Banking>/i> 36, no. 6: 1043-1067.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>26</BIBL>	<BIBTEXT> Kaplan, R.S., and G. Urwitz. 1979.
 "Statistical Models of Bond Ratings: A Methodological Inquiry." >i>Journal
 of Business>/i> 52, no. 2 (April): 231-261.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>27</BIBL>	     <BIBTEXT> KrÃ¤mer, W., and A.
 GÃ¼ttler. 2003. "Comparing the Accuracy of Default Prediction in the
 Rating Industry: The Case of Moody's vs. S&P." Working paper, Department
 of Finance, University of Dortmund, Germany.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>28</BIBL>	     <BIBTEXT> KrÃ¤ussl, R. 2005. "Do
 Credit Rating Agencies Add to the Dynamics of Emerging Market Crises?"
 >i>Journal of Financial Stability>/i> 1, no. 3: 355-385.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>29</BIBL>	 <BIBTEXT> Lando, D., and
 T.M. Skodeberg. 2002. "Analyzing Rating Transitions and Rating Drift with
 Continuous Observations." >i>Journal of Banking and Finance>/i> 26, nos.
 2-3: 423-444.</BIBTEXT>      </REF>	  <REF>        <BIBL>30</BIBL>	   
   <BIBTEXT> LÃ¶ffler, G. 2005. "Avoiding the Rating Bounce: Why Rating
 Agencies Are Slow to React to New Information." >i>Journal of Economic
 Behavior and Organization>/i> 56, no. 3: 365-381.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>31</BIBL>        <BIBTEXT> Lucas, A., and P.
 Klaassen. 2006. "Discrete Versus Continuous State Switching Models for
 Portfolio Credit Risk." >i>Journal of Banking and Finance>/i> 30, no. 1:
 25-35.</BIBTEXT>      </REF>	   <REF>	<BIBL>32</BIBL>       
 <BIBTEXT> Machauer, A., and M. Weber. 1998. "Bank Behavior Based on
 Internal Credit Ratings of Borrowers." >i>Journal of Banking and
 Finance>/i> 22, nos. 10-11: 1355-1383.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>33</BIBL>	    <BIBTEXT> Maddala, G.S. 1983. "Limited
 Dependent and Qualitative Variables in Econometrics." Cambridge: Cambridge
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>34</BIBL> 
       <BIBTEXT> Morgan, D.P. 2002. "Rating Banks: Risk and Uncertainty in
 an Opaque Industry." >i>American Economic Review>/i> 92, no. 4:
 874-888.</BIBTEXT>	 </REF>      <REF>	  <BIBL>35</BIBL>	
 <BIBTEXT> Nickell, P.; W. Perraudin; and S. Varotto. 2000. "Stability of
 Rating Transitions." >i>Journal of Banking and Finance>/i> 24, nos. 1-2:
 203-227.</BIBTEXT>	 </REF>      <REF>	  <BIBL>36</BIBL>	
 <BIBTEXT> Poon, W.P.H.; M. Firth; and H.G. Fung. 1999. "A Multivariate
 Analysis of the Determinants of Moody's Bank Financial Strength Ratings."
 >i>Journal of International Financial Markets, Institutions and Money>/i>
 9, no. 3: 267-283.</BIBTEXT>	   </REF>      <REF>	    <BIBL>37</BIBL>
	<BIBTEXT> Posch, P.N. 2006. "Time to Change: Rating Changes and
 Policy Implications." Working Paper, Institute of Finance, University of
 Ulm, Germany.</BIBTEXT>      </REF>	  <REF>        <BIBL>38</BIBL>	   
   <BIBTEXT> Reiter, S.A., and D.A. Zeibert. 1991. "Bond Yields, Ratings
 and Financial Information: Evidence from Public Utility Issues."
 >i>Financial Review>/i> 26, no. 1: 45-73.</BIBTEXT>	  </REF>      <REF>
	<BIBL>39</BIBL>        <BIBTEXT> Rojas-Suarez, L. 2000. "Can
 International Standards Strengthen Banks in Emerging Markets?" Working
 paper, Institute for International Economics, Washington, DC.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>40</BIBL>	   <BIBTEXT> Rojas-Suarez,
 L. 2001. "Rating Banks in Emerging Markets: What Credit Rating Agencies
 Should Learn from Financial Indicators." Working paper, Institute for
 International Economics, Washington, DC.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>41</BIBL>	      <BIBTEXT> Shin, Y.S., and W.T. Moore. 2003.
 "Explaining Credit Rating Differences Between Japanese and U.S. Agencies."
 >i>Review of Financial Economics>/i> 12, no. 4: 237-344.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>42</BIBL>	 <BIBTEXT> Staikouras, S.K.
 2005. "Multinational Banks, Credit Risk, and Financial Crises: A
 Qualitative Response Analysis." >i>Emerging Markets Finance and Trade>/i>
 41, no. 2 (March-April): 82-106.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>43</BIBL>	<BIBTEXT> Treacy, W.F., and M. Carey. 2000. "Credit
 Risk Rating Systems at Large U.S. Banks." >i>Journal of Banking and
 Finance>/i> 24, nos. 1-2: 167-201.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:4:p:5-23




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Lun  Huang 
Author-X-Name-First: Chih-Lun  
Author-X-Name-Last: Huang 
Author-Name: Yeong-Jia  Goo 
Author-X-Name-First: Yeong-Jia  
Author-X-Name-Last: Goo 
Title: Are Happy Investors Likely to Be Overconfident? 
Abstract:
 This study investigates the relationship of investors' happy sentiment and
 overconfidence effect. Sunshine, temperature, former returns, and margin
 loan change rate are used as proxies for happy sentiment. Using data from
 Taiwan Stock Exchange and principal component analysis, the happy
 sentiment index is divided into two categories: "natural environment
 happiness" and "investment atmosphere happiness." The results suggest that
 when natural environment happiness is stronger, investors are less likely
 to have overconfidence. On the contrary, when investment atmosphere
 happiness is stronger, investors are more likely to have overconfidence.
Journal: Emerging Markets Finance and Trade 
Pages: 33-39 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: behavioral finance, investor sentiment, overconfidence, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V15202701L7J7640 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Barber, B., and T.
 Odean. 2000. "Trading Is Hazardous to Your Wealth: The Common Stock
 Investment Performance of Individual Investors." >i>Journal of Finance>/i>
 55, no. 2: 773-806.</BIBTEXT>	    </REF>	<REF>	     <BIBL>2</BIBL>
	<BIBTEXT> Bollerslev, T. 1986. "Generalized Autoregressive
 Conditional Heteroskedasticity." >i>Journal of Econometrics>/i> 31, no. 3:
 307-327.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT> Bower, G. H. 1992. "How Might Emotions Affect Learning?" In
 >i>Handbook of Emotion and Memory>/i>, ed. S. A. Christianson, pp. 3-31.
 Hillsdale, NJ: Lawrence Erlbaum.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>4</BIBL>        <BIBTEXT> Brown, G. W., and M. T. Cliff. 2004.
 "Investor Sentiment and the Near-Term Stock Market." >i>Journal of
 Empirical Finance>/i> 11, no. 1: 1-27.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>5</BIBL>	   <BIBTEXT> Hirshleifer, D., and T. Shumway. 2003.
 "Good Day Sunshine: Stock Returns and the Weather." >i>Journal of
 Finance>/i> 58, no. 3: 1009-1063.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>6</BIBL>        <BIBTEXT> Izard, C. E. 1977. >i>Human Emotions.>/i>
 New York: Plenum.</BIBTEXT>	  </REF>      <REF>	   <BIBL>7</BIBL>  
      <BIBTEXT> Kuo, M. H., and C. Lee. 2005. "Does Sunshine Influence
 Investor Sentiment? A Study of the Taiwan Stock Market." >i>Taiwan Banking
 and Finance Quarterly>/i> 6, no. 2: 35-51.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Odean, T. 1998. "Volume,
 Volatility, Price, and Profit When All Traders Are Above Average."
 >i>Journal of Finance>/i> 53, no. 6: 1887-1934.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Shefrin, H. 2000. >i>Beyond
 Greed and Fear: Understanding Behavioral Finance and the Psychology of
 Investing.>/i> Boston: Harvard Business School Press.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Thaler, R. H.,
 and E. J. Johnson. 1990. "Gambling with the House Money and Trying to
 Break Even: The Effects of Prior Outcomes on Risky Choice." >i>Management
 Science>/i> 36 no. 6: 643-660.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:33-39




Template-Type: ReDIF-Article 1.0
Author-Name: ARISTIDIS BITZENIS 
Author-X-Name-First: ARISTIDIS 
Author-X-Name-Last: BITZENIS 
Title:         What Was Behind the Delay in the Bulgarian Privatization Process? : Determining Incentives and Barriers of Privatization as a Way of Foreign Entry       
Abstract:
       It is conventionally thought that to develop competition in a
 transition economy, privatization, restructuring, and creation of new
 firms should take place first. Bulgaria's experience raises the question
 of whether its chosen methods of privatization reform, and the pace of
 this reform, are sufficient to promote competition in such a market. To
 answer this question, we explore the barriers and the incentives, that
 foreign multinational enterprises (MNEs) have faced during their
 participation in the Bulgarian privatization programs. This paper
 investigates those questions on the basis of survey data. It was
 determined that Bulgarian privatization deals have been accelerated since
 1997. On the other hand, Bulgaria still lacks transparency and abolishment
 of monopolies; at the same time, its bureaucratic procedures and small
 progress are in the transition process.    
Journal: Emerging Markets Finance and Trade 
Pages: 58-82 
Issue: 5 
Volume: 39 
Year: 2003 
Month: 9 
Keywords: Bulgaria, foreign direct investment (FDI), planned economy, privatization, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=KJ57QENUEWTP2CHJ 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>&Aring;slund, A. 1991.
 "Principles of Privatisation." In Systemic Change and Stabilization in
 Eastern Europe, ed. L. Csaba, pp. 17-33. Aldershot, UK: Edward
 Elgar.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT>Bartlett, W. 1993. "A Comparison of the Development of Small
 Firms in Bulgaria and Hungary." MOCT-MOST, 2: 73-95.</BIBTEXT>      </REF>
      <REF>	   <BIBL>3</BIBL>	 <BIBTEXT>Bartlett, W., and P.
 Hoggett. 1996. "Small Firms in South East Europe: The Importance of
 Initial Conditions." In The Economic Impact of New Firms in Post-Socialist
 Countries, ed. H. Brezinski and M. Fritsch, pp. 151-175. Cheltenham, UK:
 Edward Elgar.</BIBTEXT>      </REF>	  <REF>        <BIBL>4</BIBL>	   
  <BIBTEXT>Bartlett, W., and R. Rangelova. 1996. "Small Firms and New
 Technologies: The Case of Bulgaria." In New Technology-Based Firms in the
 1990s, vol. 2, ed. R. Oakey, pp. 66- 79. London: Paul Chapman.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>5</BIBL>	   <BIBTEXT>Bitzenis, A.
 2001a. "The Determinants of FDI in Transition Countries; Incentives and
 Barriers Based on a Questionnaire Research: the Case of Bulgaria,
 1989-2000." In International and Monetary Aspects of Transition in
 Southeastern Europe, ed. D. Chionis and G. Petrakos, pp. 89-144. Volos:
 University of Thessaly.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>6</BIBL>        <BIBTEXT>------. 2001b. "Examining Risk as a Barrier
 for a Multinational Which Considers an FDI Project: Questionnaire Analysis
 for the Case of Bulgaria." Student's Studypack, City College,
 Thessaloniki, Greece, November.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT>------. 2002a. "Economic Policies and
 Sequential Path for a Transition from Communism to Democracy and from a
 Planned to a Market Economy: The Case of Bulgaria (1989- 2001): Shock
 Therapy or Gradualism?" Student's Studypack, City College, Thessaloniki,
 Greece, December.</BIBTEXT>	  </REF>      <REF>	   <BIBL>8</BIBL>  
      <BIBTEXT>------. 2002b. "Foreign Direct Investment During the
 Transition from a Planned to a Market Economy: The Case of Bulgaria
 1989-2001." Ph.D. Dissertation, University of Glasgow, UK.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT>------. 2003a.
 "The Determination of FDI Inflows Based on a Questionnaire Survey: The
 Case of Bulgaria." City Liberal Studies, University of Sheffield,
 UK.</BIBTEXT>	    </REF>	<REF>	     <BIBL>10</BIBL>	   
 <BIBTEXT>------. 2003b. "Did Financial Incentives Affect Foreign Direct
 Investment (FDI) Inflows in Bulgaria?" South East European Journal of
 Economics (forthcoming).</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>11</BIBL>	<BIBTEXT>------. 2003c. "Universal Model of
 Theories Determining FDI: Is There Any Dominate Theory? Are the FDI
 Inflows in CEE Countries and Especially in Bulgaria a Myth?" European
 Business Review 15, no. 2: 94-104.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>12</BIBL>	<BIBTEXT>------. 2004. "Why Foreign Banks Enter in
 Transition Economies: The Case of Bulgaria." Global Business & Economics
 Review June (forthcoming).</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>13</BIBL>	<BIBTEXT>Brada, C.J. 1996. "Privatisation Is
 Transition--Or Is It?" Journal of Economic Perspectives, 10, no. 2
 (Spring): 67-86.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>  
      <BIBTEXT>Dalkalachev, C. 1993. "Privatisation in Bulgaria." In
 Privatisation: A Global Perspective, ed. V.V. Ramanadham, pp. 174-175.
 London: Routledge.</BIBTEXT>	   </REF>      <REF>	    <BIBL>15</BIBL>
	<BIBTEXT>Dimitrov, M. 1996. "Privatisation: Its Goal, Progress to
 Date and Prospects." In Bulgaria in a Time of Change: Economic and
 Political Dimensions, ed. I. Zloch-Christy, ch. 5. Aldershot, UK:
 Ashgate.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT>Due, M.J., and S.C. Schmidt. 1995. "Progress on Privatisation in
 Bulgaria." Comparative Economic Studies, 37, no. 1: 55-77.</BIBTEXT>	  
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 "Ownership, Governance and Restructuring." In Transition Report:
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 Bank of Reconstruction and Development.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>18</BIBL>	     <BIBTEXT>Estrin, S. 1994. "Economic Transition
 and Privatisation: The Issues." In Privatization in Central and Eastern
 Europe, ed. S. Estrin, pp. 3-30. London: Longman Group.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT>------. 1995.
 Privatisation in Central and Eastern Europe. CERT Discussion Paper No.
 96/5, Heriot-Watt University, Edinburgh, UK.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT>Fischer, S. 1992.
 "Privatisation in East European Transformation." In The Emergence of
 Market Economies in Eastern Europe, ed. C. Clague and G.C. Rausser, pp.
 227-243. Cambridge: Blackwell.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>21</BIBL>	<BIBTEXT>Fischer, S., and R. Sahay. 2000. "The
 Transition Economies After Ten Years." IMF Working Paper WP/00/30,
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     <BIBTEXT>Frydman, R., and A. Rapaczynski. 1992. The New Palgrave
 Dictionary of Money and Finance. London: Macmillan.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>23</BIBL>	 <BIBTEXT>Frydman, R.; A.
 Rapaczynski; and J.S. Earle. 1993. The Privatisation Process in Central
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 </REF>      <REF>	  <BIBL>24</BIBL>	 <BIBTEXT>Hare, P. 1994.
 "Privatisation in Comparative Perspective: An Overview of the Emerging
 Issues." In Privatisation in Central and Eastern Europe, ed. S. Estrin,
 pp. 31-53. London: Longman.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>25</BIBL>	<BIBTEXT>Hare, P., and A. Canning. 1994. "The
 Privatisation Process--Economic and Political Aspects of the Hungarian
 Approach." In Privatisation in Central and Eastern Europe, ed. S. Estrin,
 pp. 176-217. London: Longman.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>26</BIBL>	<BIBTEXT>Houbenova-Delissivkova, T., and P. Puchev.
 1996. "The Small Private Firms in Bulgaria and the Impact of the Economic
 Reform on Their Growth and Future." In The Economic Impact of New Firms in
 Post-Socialist Countries, ed. H. Bresinski and M. Fritsch, pp. 116-150.
 Cheltenham, UK: Edward Elgar.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>27</BIBL>	<BIBTEXT>Hunya, G. 1997. "Large Privatisation,
 Restructuring and Foreign Direct Investment." In Lessons from the Economic
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 <BIBTEXT>Klaus, E.M. 2000. "Political and Economic Transition." Copenhagen
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 <BIBL>30</BIBL>	<BIBTEXT>Kornai, J. 1995. "The Principles of
 Privatisation in Eastern Europe." In The Evolutionary Transition to
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 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>31</BIBL>       
 <BIBTEXT>Koves, A. 1992. "Dilemmas of Privatisation." In Central and East
 European Economies in Transition: The International Dimension, ed. A.
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    <BIBL>32</BIBL>	   <BIBTEXT>Lavigne, M. 1995. "Privatisation and
 Structural Reforms." In The Economics of Transition: From Socialist
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 <BIBTEXT>Lipton, D., and J. Sachs. 1991. "Privatization in Eastern Europe:
 The Case of Poland." In Reforming Central and Eastern European Economies:
 Initial Results and Challenges, London and Washington, DC: IBRD and World
 Bank. [Also published in Brookings Papers on Economic Activity, vol. 2,
 pp. 293-341. Washington, DC: Brookings Institution.]</BIBTEXT>      </REF>
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 Marinova. 1997. Privatisation and Foreign Direct Investment in Bulgaria:
 Present Characteristics and Future Trends. Communist Economies and
 Economic Transformation 9, no. 1 (March): 101-116.</BIBTEXT>	   </REF>  
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 Angresano. 1997. "Privatisation in Bulgaria." East European Quarterly, 30,
 no. 4 (January): pp. 495-516.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>36</BIBL>	<BIBTEXT>Rayome, D. and J.A. Stocker. 1995.
 "Bulgaria: Privatisation, Risk and Reality." Managerial Finance, 21, no.
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 <BIBTEXT>Rock, C. 1994. "Employment and Privatisation in Bulgaria's
 Reform." Occasional Paper 24, International Labour Organization,
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 <BIBTEXT>Tchipev, P. 1996. "Financial Institutions' Role in Bulgarian
 Privatisation." Communist Economies & Economic Transformation, 8, no 1:
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 <BIBTEXT>UN. 1992. "The Motives and Objectives of Privatisation." In
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Handle: RePEc:mes:emfitr:v:39:y:2003:i:5:p:58-82




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan  Kara 
Author-X-Name-First: Hakan  
Author-X-Name-Last: Kara 
Author-Name: Fethi  ÃÄÃ¼nÃ§ 
Author-X-Name-First: Fethi  
Author-X-Name-Last: ÃÄÃ¼nÃ§ 
Title: Inflation Targeting and Exchange Rate Pass-Through: The Turkish Experience 
Abstract:
 Using a vector autoregression model, we show that the pass-through from
 imported inflation to domestic inflation has weakened substantially and
 slowed after the adoption of inflation targeting in Turkey. We argue that
 this finding is due mainly to several featuresâsuch as enhanced
 credibility of the central bank, changing behavior of the exchange rate,
 and a shift in expectation formationâpossibly acquired by the
 implementation of a successful inflation-targeting regime. These
 observations suggest that adopting an inflation-targeting regime in itself
 may help to reduce exchange rate pass-through.
Journal: Emerging Markets Finance and Trade 
Pages: 52-66 
Issue: 6 
Volume: 44 
Year: 2008 
Month: 11 
Keywords: exchange rate pass-through, expectations, inflation targeting, Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=025350417294X658 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alper, K. 2003.
 "Exchange Rate Pass-Through to Domestic Prices in the Turkish Economy."
 Master's thesis, Department of Economics, Middle East Technical
 University, Ankara.</BIBTEXT>	    </REF>	<REF>	     <BIBL>2</BIBL>
	<BIBTEXT> Anaya, J. A. G. 2000. "Exchange Rate Pass-Through and
 Partial Dollarization: Is There a Link?" Center for Research on Economic
 Developments and Policy Reform Working Paper 81, Stanford
 University.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>	  
 <BIBTEXT> Arat, K. 2003. "TÃ¼rkiye'de Optimum DÃ¶viz Kuru Rejimi SeÃ§imi
 ve DÃ¶viz Kurlarindan Fiyatlara GeÃ§iÅ Etkisinin Ä°ncelenmesi" [Choice of
 Optimum Exchange Rate Regime in Turkey and an Analysis of Exchange Rate
 Pass-Through]. Expert Report, Central Bank of the Republic of Turkey,
 Ankara.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>       
 <BIBTEXT> ArbatlÄ±, E. 2003. "Exchange Rate Pass-Through in Turkey:
 Looking for Asymmetries." >i>Central Bank Review>/i>>b>3>/b>, no. 2:
 85-124.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>       
 <BIBTEXT> Bank for International Settlements (BIS). 2006. >i>Exchange Rate
 Pass-Through in Emerging Market Economies: What Has Changed and Why?>/i>
 Basel.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT> Bevilaqua, A. S.; M. Mesquita; and A. Minella. 2007. "Brazil:
 Taming Inflation Expectations." Working Paper Series 129, Banco Central do
 Brasil, Brasilia, Brasil.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>7</BIBL>        <BIBTEXT> Blume, Lawrence, and Steven Durlauf
 (eds.). >i>The New Palgrave Dictionary of Economics>/i>, 2d ed. Hampshire,
 UK: Palgrave Macmillan, 2008.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Choudhri, E., and D. Hakura. 2001.
 "Exchange Rate Pass-Through to Domestic Prices: Does the Inflationary
 Environment Matter?" Working Paper 01/194, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT> Devereux, M. B., and J. Yetman. 2003. "Price-Setting and
 Exchange Rate Pass-Through: Theory and Evidence." Paper presented at the
 Price Adjustments and Monetary Policy Conference, Bank of Canada, Ottawa,
 Ontario, November.</BIBTEXT>	   </REF>      <REF>	    <BIBL>10</BIBL>
	<BIBTEXT> Fernandez, R. B. 1981. "A Methodological Note on the
 Estimation of Time Series." >i>Review of Economics and
 Statistics>/i>>b>63>/b>, no. 3: 471-476.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>11</BIBL>	      <BIBTEXT> Honohan, P., and A. Shi. 2002.
 "Deposit Dollarization and the Financial Sector in Emerging Economies."
 Policy Research Discussion Paper 2748, World Bank, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>12</BIBL>	   
 <BIBTEXT> Ize, A., and E. Parrado. 2002. "Dollarization, Monetary Policy,
 and the Pass-Through." Working Paper 02/188, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>13</BIBL>   
     <BIBTEXT> Kara, H. 2006. "Turkish Experience with Implicit Inflation
 Targeting." Research and Monetary Policy Department Working Paper 06/03,
 Central Bank of the Republic of Turkey, Ankara.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT> Kara, H.; F. ÃÄÃ¼nÃ§; Ã.
 Ãzlale; and Ã. SarÄ±kaya. 2007a. "Estimating the Output Gap in a
 Changing Economy." >i>Southern Economic Journal>/i>>b>74>/b>, no. 1:
 269-289.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Kara, H.; H. KÃ¼Ã§Ã¼k-TuÄer; Ã. Ãzlale; B. TuÄer; and E. M.
 YÃ¼cel. 2007b. "Exchange Rate Regimes and Pass-Through: Evidence from the
 Turkish Economy." >i>Contemporary Economic Policy>/i>>b>25>/b>, no. 2:
 206-225.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT> Leigh, D., and M. Rossi. 2002. "Exchange Rate Pass-Through in
 Turkey." Working Paper 02/204, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>17</BIBL>	   
 <BIBTEXT> McCarthy, J. 1999. "Pass-Through of Exchange Rates and Import
 Prices to Domestic Inflation in Some Industrialized Economies." Working
 Paper 79, Bank for International Settlements, Basel.</BIBTEXT>      </REF>
      <REF>	   <BIBL>18</BIBL>	  <BIBTEXT> Nogueira, R. P., Jr.
 2006. "Inflation Targeting and the Role of Exchange Rate Pass-Through."
 University of Kent Discussion Paper 0602, Kent.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Rabanal, P., and G.
 Schwartz. 2001. "Exchange Rate Changes and Consumer Price Inflation: 20
 Months After the Floating of the Real." In >i>IMF Country Report: Selected
 Issues and Statistical Appendix (Section V)>/i>, p. 100. Washington, DC:
 International Monetary Fund.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>20</BIBL>	<BIBTEXT> Roger, S., and M. Stone. 2005. "On
 Target? The International Experience with Achieving Inflation Targets."
 Working Paper 05/163, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>21</BIBL>	   
 <BIBTEXT> Saiki, A. 2004. "The Change in Inflation Persistence and
 Exchange Rate Pass-Through for Inflation Targeting Countries." Ph.D.
 dissertation, International Business School, Brandeis University, Waltham,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>22</BIBL>	   
 <BIBTEXT> Steel, D., and A. King. 2004. "Exchange Rate Pass-Through: The
 Role of Regime Changes." >i>International Review of Applied
 Economics>/i>>b>18>/b>, no. 3: 301-322.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>23</BIBL>	     <BIBTEXT> Taylor, J. B. 2000. "Low Inflation,
 Pass-Through, and the Pricing Power of Firms." >i>European Economic
 Review>/i>>b>44>/b>, no. 7: 1389-1408.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:44:y:2008:i:6:p:52-66




Template-Type: ReDIF-Article 1.0
Author-Name: Bassam M. AbuAl-Foul 
Author-X-Name-First: Bassam M. 
Author-X-Name-Last: AbuAl-Foul 
Author-Name: Mohamed  Soliman 
Author-X-Name-First: Mohamed  
Author-X-Name-Last: Soliman 
Title: Foreign Direct Investment and LDC Exports: Evidence from the MENA Region 
Abstract:
 This paper examines the effect of foreign direct investment (FDI) on
 manufacturing exports in four Middle Eastern and North African (MENA)
 countries. The sensitivity of merchandise exports, manufacturing exports,
 and the share of manufacturing exports in total merchandise exports to two
 measures of FDI activity is tested using panel data spanning 1975-2003.
 The findings suggest that FDI activity positively affects the host
 country's merchandise and manufacturing exports. Nevertheless, FDI
 activity is still short of generating any increase in the share of
 manufacturing exports in merchandise exports.
Journal: Emerging Markets Finance and Trade 
Pages: 4-14 
Issue: 2 
Volume: 44 
Year: 2008 
Month: 3 
Keywords: developing countries, exports, foreign direct investment., 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V121635K62868512 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aitken, B.; G.H.
 Hanson; and A.E. Harrison 1997. "Spillovers, Foreign Investment, and
 Export Behavior." >i>Journal of International Economics>/i> 43, nos. 1-2
 (August): 103-132.</BIBTEXT>	   </REF>      <REF>	    <BIBL>2</BIBL> 
       <BIBTEXT> Altomonte, C., and C. Guagliano 2003. "Comparative Study
 of FDI in Central and Eastern Europe and the Mediterranean." >i>Economic
 Systems>/i> 27, no. 2 (June): 223-246.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>3</BIBL>	   <BIBTEXT> Andreff, W. 2002. "The New
 Multinational Corporations from Transition Countries." >i>Economic
 Systems>/i> 26, no. 4 (December): 371-379.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Balasubramanyam, V.; M.
 Salisu; and D. Sapsford 1996. "Foreign Direct Investment and Growth in PE
 Countries." >i>Economic Journal>/i> 106, no. 434 (January):
 92-105.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>       
 <BIBTEXT> Baliamoune-Lutz, M. 2004. "Does FDI Contribute to Economic
 Growth?" >i>Business Economics>/i> 39, no. 2 (April): 49-56.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>6</BIBL>	 <BIBTEXT> Bhagwati, J.N.
 1973. "The Theory of Immiserizing Growth: Further Applications." In
 >i>International Trade and Money>/i>, ed. M.B. Connolly and A.K. Swoboda,
 pp. 45-54. London: George Allen & Unwin.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>7</BIBL>	     <BIBTEXT> Bhaumik, S.K., and S. Gelb 2005.
 "Determinants of Entry Mode Choice of MNCs in Emerging Markets: Evidence
 from South Africa and Egypt." >i>Emerging Markets Finance and Trade>/i>
 41, no. 2 (March-April): 5-24.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Borensztein, E.; J. De Gregorio; and J.W.
 Lee 1998. "How Does Foreign Direct Investment Affect Growth." >i>Journal
 of International Economics>/i> 45, no. 1: 115-135.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>9</BIBL>        <BIBTEXT> Brainard, S. 1997. "An
 Empirical Assessment of the Proximity-Concentration Trade-Off Between
 Multinational Sales and Trade." >i>American Economic Review>/i> 87, no. 4
 (September): 520-544.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Carr, D.; J. Markusen; and K. Maskus
 2001. "Estimating the Knowledge-Capital Model of the Multinational
 Enterprise." >i>American Economic Review>/i> 91, no. 3 (June):
 693-708.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Damijan, J.; M. Knell; B. Majcen; and M. Rojec 2003. "The Role
 of FDI, R&D Accumulation, and Trade in Transferring Technology to
 Transition Countries: Evidence from Firm Panel Data for Eight Transition
 Countries." >i>Economic Systems>/i> 27, no. 2 (June): 189-204.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>12</BIBL>	    <BIBTEXT> Frenkel, M.;
 K. Funke; and G. Stadtmann 2004. "A Panel Analysis of Bilateral FDI Flows
 to Emerging Economies." >i>Economic Systems>/i> 28, no. 3 (September):
 281-300.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Fry, M. 1996. "How Foreign Direct Investment in Pacific Asia
 Improves the Current Account." >i>Journal of Asian Economies>/i> 7, no. 3
 (Fall): 459-486.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>  
      <BIBTEXT> Galego, A.; C. Vieira; and I. Vieira 2004. "The CEEC as FDI
 Attractors: A Menace to the EU Periphery?" >i>Emerging Markets Finance and
 Trade>/i> 40, no. 5 (September-October): 74-91.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Gallegati, M.; M. Gallegati;
 and W. Polasek 2004. "Business Cycle Fluctuations in Mediterranean
 Countries (1960-2000)." >i>Emerging Markets Finance and Trade>/i> 40, no.
 6 (November-December): 28-47.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>16</BIBL>	<BIBTEXT> Grogan, L., and L. Moers 2001. "Growth
 Empirics with Institutional Measures for Transition Countries."
 >i>Economic Systems>/i> 25, no. 4 (December): 323-344.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT> Grubert, H., and
 J. Mutti 1991. "Taxes, Tariffs, and Transfer Pricing in Multinational
 Corporate Decision Making." >i>Review of Economics and Statistics>/i> 73,
 no. 2 (May): 285-293.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>18</BIBL>	<BIBTEXT> Haddad, M., and A.E. Harrison 1993. "Are
 There Positive Spillovers from Direct Foreign Investment? Evidence from
 Panel Data for Morocco." >i>Journal of Development Economics>/i> 42, no. 1
 (October): 51-74.</BIBTEXT>	  </REF>      <REF>	   <BIBL>19</BIBL> 
       <BIBTEXT> Hirata, H.; S.H. Kim; and M.A. Kose 2004. "Integration and
 Fluctuations: The Case of MENA." >i>Emerging Markets Finance and Trade>/i>
 40, no. 6 (November-December): 48-67.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>20</BIBL>	   <BIBTEXT> Hirata, H.; S.H. Kim; and M.A. Kose
 2007. "Sources of Fluctuations: The Case of MENA." >i>Emerging Markets
 Finance and Trade>/i> 43, no. 1 (January-February): 5-34.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT> Li, X.; X. Liu;
 and D. Parker 2001. "Foreign Direct Investment and Productivity Spillovers
 in the Chinese Manufacturing Sector." >i>Economic Systems>/i> 25, no. 4
 (December): 305-321.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>22</BIBL>	<BIBTEXT> Makki, S., and A. Somwaru 2004. "Impact
 of Foreign Direct Investment and Trade on Economic Growth: Evidence from
 Developing Countries." >i>American Journal of Agricultural Economics>/i>
 86, no. 3 (August): 795-801.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>23</BIBL>	<BIBTEXT> Nair-Reichert, U., and D. Weinhold 2001.
 "Causality Tests for Cross-Country Panels: A New Look at FDI and Economic
 Growth in Developing Countries." >i>Oxford Bulletin of Economics and
 Statistics>/i> 63, no. 2: 153-171.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>24</BIBL>	<BIBTEXT> Ok, S.T. 2004. "What Drives Foreign
 Direct Investment into Emerging Markets? Evidence from Turkey."
 >i>Emerging Markets Finance and Trade>/i> 40, no. 4 (July-August):
 101-114.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> Rutkowski, A. 2006. "Inward FDI and Financial Constraints in
 Central and East European Countries." >i>Emerging Markets Finance and
 Trade>/i> 42, no. 5 (September-October): 28-60.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>26</BIBL>	     <BIBTEXT> Sohinger, J., and G.W.
 Harrison 2004. "The Implication of Foreign Direct Investment for
 Development in Transition Countries." >i>Eastern European Economics>/i>
 42, no. 1 (January-February): 56-74.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>27</BIBL>	  <BIBTEXT> SÃ¼ssmuth, B., and U. Woitek 2004.
 "Business Cycles and Comovement in Mediterranean Economies: A National and
 Areawide Perspective." >i>Emerging Markets Finance and Trade>/i> 40, no. 6
 (November-December): 7-27.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>28</BIBL>	<BIBTEXT> United Nations Conference on Trade and
 Development (UNCTAD). "FDI Database." Geneva, Switzerland (available at >a
 target="_blank"
 href='http://www.unctad.org/fdi/'>www.unctad.org/fdi/>/a></BIBTEXT>	 
 </REF>      <REF>	  <BIBL>29</BIBL>	 <BIBTEXT> Walkenhorst, P.
 2004. "Economic Transition and the Sectoral Patterns of Foreign Direct
 Investment." >i>Emerging Markets Finance and Trade>/i> 40, no. 2
 (March-April): 5-26.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>30</BIBL>	<BIBTEXT> World Bank. 2005. "World Development
 Indicators." Washington, DC (available at >a target="_blank"
 href='http://devdata.worldbank.org/dataonline'>http://devdata.worldbank.or
 g/dataonline>/a></BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:2:p:4-14




Template-Type: ReDIF-Article 1.0
Author-Name: C. EMRE ALPER 
Author-X-Name-First: C. EMRE 
Author-X-Name-Last: ALPER 
Author-Name: ZIYA ONIS 
Author-X-Name-First: ZIYA 
Author-X-Name-Last: ONIS 
Title:         Financial Globalization, the Democratic Deficit, and Recurrent Crises in Emerging Markets : The Turkish Experience in the Aftermath of Capital Account Liberalization       
Abstract:
       Financial globalization offers both risks and benefits for countries
 of the semiperiphery or "emerging markets." Politics within the national
 space matters, yet acquires a new meaning, in the age of financial
 globalization. "Weak democracies" are characterized by limited
 accountability and transparency of the state and other key political
 institutions. Such democracies tend to suffer from populist cycles, which
 result in a low capacity to carry out economic reform. Financial
 globalization, in turn, magnifies populist cycles and renders their
 consequences more severe. Hence, "weak democracies" are confronted with
 the predominantly negative side of financial globalization, which includes
 overdependence on short-term capital flows, speculative attacks, and
 recurrent financial crises leading to slow growth and a more regressive
 income distributional profile. The relevance of these sets of propositions
 are illustrated with reference to the case of Turkey, which, indeed,
 experienced recurrent financial crises in the post-capital account
 liberalization era, with costly consequences for the real economy. Two
 general conclusions follow. First, there is a need to strengthen democracy
 in the developing world. Second, since this is hard to accomplish over a
 short period of time, serious questions are raised concerning the
 desirability of early exposure to financial globalization given the
 current state of the world.	
Journal: Emerging Markets Finance and Trade 
Pages: 5-26 
Issue: 3 
Volume: 39 
Year: 2003 
Month: 5 
Keywords: budgetary performance, capital account, emerging markets, populism, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=RA6UNLJF6QJG07YW 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Akcay, C.; C.E. Alper;
 and S. Ozmucur. 2001. "Budget Deficit, Inflation and Debt Sustainability:
 Evidence from Turkey (1970-2000)." Bogazici University Institute of Social
 Sciences Working Paper ISS/EC 2001-12, Istanbul.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>2</BIBL>	     <BIBTEXT>Alper, C.E. 2001. "The
 Turkish Liquidity Crisis of 2000: What Went Wrong." Russian and East
 European Finance and Trade 37, no. 6 (November-December): 58-80.</BIBTEXT>
      </REF>	  <REF>        <BIBL>3</BIBL>	     <BIBTEXT>Alper, C.E.;
 M.H. Berument; and N.K. Malatyali. 2001. "The Impact of the Disinflation
 Program on the Structure of the Turkish Banking Sector." Russian and East
 European Finance and Trade 37, no. 6 (November-December): 81-95.</BIBTEXT>
      </REF>	  <REF>        <BIBL>4</BIBL>	     <BIBTEXT>Aricanli, T.,
 and D. Rodrik, ed. 1990. The Political Economy of Turkey: Debt, Adjustment
 and Sustainability. London: Macmillan.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>5</BIBL>	   <BIBTEXT>Armijo, L.E., ed. 1999. Financial
 Globalization and Democracy in Emerging Markets. New York: St. Martin's
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT>Aspe, P. 1993. Economic Transformation: The Mexican Way.
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 <BIBL>7</BIBL>        <BIBTEXT>Balkir, C. 1998. "The Customs Union and
 Beyond." In The Political Economy of Turkey in the Post-Soviet Era: Going
 West and Looking East, ed. L. Rittenberg, pp. 51-78. Westport, CT:
 Praeger.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT>Carkoglu, A. 2000. "The Geography of the April 1999 Turkish
 Elections." Turkish Studies 1, no. 1: 149-171.</BIBTEXT>      </REF>	  
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 of Turkey. 2001. "Electronic Data Delivery System." Istanbul (available at
 tcmbf40.tcmb.gov.tr/cgi-bin/famecgi?cgi=$cbtweb&DIL-UK/).</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT>Cizre-Sakallioglu, U., and E. Yeldan. 2000. "Politics, Society
 and Financial Liberalization: Turkey in the 1990s." Development and Change
 31, no. 1: 481-508.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>11</BIBL>	<BIBTEXT>Ersel, H. 1996. "The Timing of Capital
 Account Liberalization: The Turkish Experience." New Perspectives on
 Turkey 15, Fall: 45-64.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>12</BIBL>	<BIBTEXT>Ertugrul, A., and F. Selcuk. 2001. "A
 Brief Account of the Turkish Economy: 1980-2000." Russian and East
 European Finance and Trade 37, no. 6 (November-December): 6-30.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>13</BIBL>	    
 <BIBTEXT>Gunluk-Senesen, G. 2000. "Measuring the Extent of Defence
 Expenditures: The Turkish Case with Turkish Data." Defence and Peace
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 <BIBL>14</BIBL>	<BIBTEXT>Heper, M., and J. Landau. 1991. Political
 Parties and Democracy in Turkey. London and New York: I.B.
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 <BIBTEXT>Huntington, S. 1991. The Third Wave: Democratization in the Late
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 "Turkey: Recent Economic Developments and Selected Issues." IMF Staff
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      <REF>	   <BIBL>17</BIBL>	  <BIBTEXT>Kahler, M., ed. 1998.
 Capital Flows and Financial Crises. Ithaca: Cornell University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>18</BIBL>       
 <BIBTEXT>Kalaycioglu, E. 2001. "Turkish Democracy: Patronage Versus
 Governance." Turkish Studies 2, no. 1: 54-70.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT>Kasaba, R., and S. Bozdogan.
 2000. "Turkey at a Crossroad." Journal of International Affairs 54, no. 1:
 1-20.</BIBTEXT>      </REF>	  <REF>        <BIBL>20</BIBL>	     
 <BIBTEXT>O'Donnell, G. 1994. "Delegative Democracy." Journal of Democracy
 5, no. 1 (April): 55-69.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>21</BIBL>	<BIBTEXT>OECD. 1998. Economic Survey of Greece.
 Paris: Organization for Economic Cooperation and Development.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>22</BIBL>	   <BIBTEXT>Onis, Z. 1998.
 State and Market: The Political Economy of Turkey in Comparative
 Perspective. Istanbul: Bogazici University Press.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>23</BIBL>        <BIBTEXT>------. 2001. "An Awkward
 Partnership: Turkey's Relations with the European Union in
 Comparative-Historical Perspective." Journal of European Integration
 History 7, no. 1: 106-122.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>24</BIBL>	<BIBTEXT>Onis, Z., and J. Riedel. 1993. Economic
 Crises and Long-Term Growth in Turkey. Washington, DC: World
 Bank.</BIBTEXT>      </REF>	  <REF>        <BIBL>25</BIBL>	     
 <BIBTEXT>Onis, Z., and U. Turem. 2001. "Entrepreneurs, Democracy and
 Citizenship in Turkey." Working Paper RSC no. 2001/48, European University
 Institute, Florence. [Comparative Politics 35, no. 4 (July):
 439-456.]</BIBTEXT>	  </REF>      <REF>	   <BIBL>26</BIBL>	 
 <BIBTEXT>Onis, Z., and S.B. Webb. 1994. "Turkey: Democratization and
 Adjustment from Above." In Voting for Reform, ed. S. Haggard and S.B.
 Webb, pp. 128-184. New York: Oxford University Press.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>27</BIBL>	 <BIBTEXT>Oxhorn, P., and
 P.K. Starr, ed. 1999. Markets and Democracy in Latin America: Conflict or
 Convergence? Boulder, CO: Lynne Rienner.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>28</BIBL>	      <BIBTEXT>Oyan, O., and A.R. Aydin. 1987.
 Istikrar programindan fon ekonomisine [From the Stabilization Program to
 an Economy Based on Extra-Budgetary Funds]. Ankara: Verso
 Yayinlari.</BIBTEXT>	   </REF>      <REF>	    <BIBL>29</BIBL>	  
 <BIBTEXT>Ozatay, F. 1996. "The Lessons of the 1994 Crisis in Turkey:
 Public Debt (Mis)Management and Confidence Crisis." Yapi Kredi Economic
 Review 7, no. 1 (Summer): 21-38.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>30</BIBL>	<BIBTEXT>Ozbudun, E. 2000. Contemporary Turkish
 Politics: Challenges to Democratic Consolidation. Boulder, CO: Lynne
 Rienner.</BIBTEXT>	 </REF>      <REF>	  <BIBL>31</BIBL>	
 <BIBTEXT>Ozmucur, S. 1996. Turkiye'de gelir dagilimi, vergi yuku ve
 makroekonomik gostergeler [Income Distribution, Tax Burden and
 Macroeconomic Indicators in Turkey]. Istanbul: Bogazici University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>32</BIBL>       
 <BIBTEXT>Preston, C. 1997. Enlargement and Integration in the European
 Union. London: Routledge.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>33</BIBL>	<BIBTEXT>Roberts, K. 1995. "Neo-Liberalism and the
 Transformation of Populism in Latin America: The Peruvian Case." World
 Politics 48, no. 1 (October): 82-116.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>34</BIBL>	   <BIBTEXT>Rodrik, D. 1990. "Premature
 Liberalization and Incomplete Stabilization: The Ozal Decade in Turkey."
 Center for Economic Research Working Paper No. 402, London.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>35</BIBL>	 <BIBTEXT>Sayistay. 2000.
 "2000 Yili Mali Raporu" [Audit Court 2000]. T.C. Sayistay Baskanligi,
 Ankara (available at
 www.sayistay.gov.tr/rapor/DIGER/2000malirapor.pdf).</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>36</BIBL>	 <BIBTEXT>Senses, F. 1994. "Labor
 Market Responses to Structural Adjustment and Institutional Pressures: the
 Turkish Case." METU Studies in Development 21, no. 3: 405-448.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>37</BIBL>	    <BIBTEXT>Transparency
 International. 2001. "Press Release: New Index Highlights Worldwide
 Corruption Crisis." International Secretariat, Berlin and Centre of
 Innovation and Research of the International Secretariat, London
 (available at www.transparency.org).</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>38</BIBL>	  <BIBTEXT>Turan, I. 1995. "The Oligarchical
 Leadership of Turkish Political Parties: Origins, Evolution,
 Institutionalization and Consequences." Koc University Working Papers
 Series No. 19, Istanbul.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>39</BIBL>	<BIBTEXT>TUSIAD. 1995. Optimal Devlet [Optimal
 Government]. Istanbul: Turk Isadamlari ve Sanayicileri Dernegi.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>40</BIBL>	     <BIBTEXT>------. 1997.
 Turkiye'de Demokratiklesme Perspektifleri [Prospects of Democracy in
 Turkey]. Istanbul: Turk Isadamlari ve Sanayicileri Dernegi.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>41</BIBL>	 <BIBTEXT>UNCTAD. 1999.
 "World Investment Report 1999." United Nations Conference on Trade and
 Development, Geneva.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>42</BIBL>	<BIBTEXT>World Bank. 1997. Private Capital Flows to
 Developing Countries: The Road to Financial Integration. Oxford: Oxford
 University Press.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:3:p:5-26




Template-Type: ReDIF-Article 1.0
Author-Name: Nadja  Kamhi 
Author-X-Name-First: Nadja  
Author-X-Name-Last: Kamhi 
Author-Name: Vivek H. Dehejia 
Author-X-Name-First: Vivek H. 
Author-X-Name-Last: Dehejia 
Title: An Assessment of the Currency Board Regime in Bosnia and Herzegovina 
Abstract:
 This paper describes currency board regime operations in Bosnia and
 Herzegovina and assesses their performance and sustainability in the
 context of the economic, political, and institutional environment. To the
 best of our knowledge, our study seems to be unique in this respect. Based
 on our analysis, we judge that Bosnia and Herzegovina's currency board
 regime is well suited and appropriate, given the country's history, its
 current state, and its future goals. Nevertheless, we believe that the key
 to the currency board's sustainability, and an eventual accession to the
 European Union, is a stronger legal and regulatory infrastructure and a
 more unified political system.
Journal: Emerging Markets Finance and Trade 
Pages: 46-58 
Issue: 6 
Volume: 42 
Year: 2006 
Month: 12 
Keywords: currency board, emerging markets, exchange-rate regimes, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L06H872248346365 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Calvo, G., and F.S.
 Mishkin. 2003. "The Mirage of Exchange Rate Regimes for Emerging Market
 Countries." >i>Journal of Economic Perspectives>/i> 17, no. 4:
 99-118.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>       
 <BIBTEXT> Camilleri Gilson, M. 2002. "Policy Pre-Commitment and
 Institutional Design: A Synthetic Indicator Applied to Currency Boards."
 OECD Working Paper ECO/WKP(2002), Paris, May.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Coats, W. 2003. "The Early
 History of the Central Bank of Bosnia and Herzegovina." Presentation at a
 CBBH conference, Sarajevo, April 11.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>4</BIBL>	 <BIBTEXT> Dehejia, V.H. 2004. "Currency Options
 for Emerging Economies: Concepts and Arguments." >i>EconomickÃ½
 Casopis>/i> 54, no. 4 (May) (available at >a target="_blank"
 href='http://www.carleton.ca/~vdehejia/dehejiabratislavarevised.pdf'>www.c
 arleton.ca/~vdehejia/dehejiabratislavarevised.pdf).>/a></BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Ho, C. 2002. "A
 Survey of the Institutional and Operational Aspects of Modern-Day Currency
 Boards." Working Paper no. 110, Bank for International Settlements, Basel,
 March.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT> International Monetary Fund. 2004. "Article IV Conclusion
 Statements." IMF Public Information Notice no. 04/17, Washington, DC,
 March 5.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Kamhi, N., and V.H. Dehejia. 2005. "An Assessment of the
 Currency Board Regime in Bosnia and Herzegovina." Carleton Economic Papers
 no. 2005-1, Carleton University, Ottawa, Ontario.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:6:p:46-58




Template-Type: ReDIF-Article 1.0
Author-Name: Amustafa Kemal Yilmaz 
Author-X-Name-First: Amustafa Kemal 
Author-X-Name-Last: Yilmaz 
Author-Name: Guzhan  Gulay 
Author-X-Name-First: Guzhan  
Author-X-Name-Last: Gulay 
Title: Dividend Policies and Price-Volume Reactions to Cash Dividends on the Stock Market: Evidence from the Istanbul Stock Exchange 
Abstract:
 This study examines the effects of cash dividend payments on stock returns
 and trading volumes in the stock market. It also investigates whether
 there is any difference in the investment behavior of investors with
 respect to the dividend pay out ratio and size in the Istanbul Stock
 Exchange (ISE)from 1995 to 2003. Prices start to rise a few sessions
 before cash dividend payments, and on the ex-dividend day, they fall less
 than do dividend payments, finally decreasing in the sessions following
 the payment. Trading volume shows a considerable upward shift before the
 payment date and, interestingly, is stable after Thus, cash dividends
 influence prices and trading volumes in different ways before, at, and
 after payment, providing some profitable active trading strategy
 opportunities around the ex-dividend day. The findings support
 price-volume reaction discussions on the divident payment date and the
 significant effect of cash dividends on the stock market.
Journal: Emerging Markets Finance and Trade 
Pages: 19-49 
Issue: 4 
Volume: 42 
Year: 2006 
Month: 7 
Keywords: cash dividends, emerging markets, price-volume reaction, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=7836PT80173LL784 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adaoglu, C. 1999.
 "Regulation Influence on the Dividend Policy of the Istanbul Stock
 Exchange (ISE) Corporations." >i>ISE Review>/i> 3, no. 11
 (JulyâSeptember): 1-19.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Aydogan, K., and G. Muradoglu. 1998. "Do
 Markets Learn from Experience? Price Reaction to Stock Dividends in the
 Turkish Market." >i>Applied Financial Economics>/i> 8, no. 1:
 41-49.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> â-. 2003. "Trends in Market Reactions: Stock Dividends and
 Right Offerings at Istanbul Stock Exchange." >i>European Journal of
 Finance>/i> 9, no. 1: 41-60.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>4</BIBL>        <BIBTEXT> Baker, H.K. 1988. "The Relationship
 Between Industry Classification and Dividend Policy." Southern Business
 Review 14, no. 1 (Spring): 1-8.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>5</BIBL>        <BIBTEXT> Bali, R., and G.L. Hite. 1998.
 "Ex-Dividend Day Stock Price Behavior: Discreteness or Tax-Induced
 Clienteles?" >i>Journal of Financial Economics>/i> 47: 127-159.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Batchelor,
 R., and I. Orakcioglu. 2003. "Event-Related GARCH: The Impact of Stock
 Dividends in Turkey." Applied Financial Economics 13, no. 4:
 295-307.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Black, F. 1976. "The Dividend Puzzle." >i>Journal of Portfolio
 Management>/i> 2, no. 2 (Winter): 5-8.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>8</BIBL>	   <BIBTEXT> Bray, A.; J.R. Graham; C.R. Harvey;
 and R. Michaely. 2003. "Payout Policy in the 21st Century." Working Paper,
 National Bureau of Economic Research, Cambridge, MA, April.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Elton, E.J, and
 M.J. Gruber. 1970. "Marginal Stockholder Tax Rates and the Clientele
 Effect." >i>Review of Economics and Statistics>/i> 52, no. 1:
 68-74.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>       
 <BIBTEXT> Fama, E.F., and K.R. French. 1995. "Size and Book-to-Market
 Factors in Earning and Returns." >i>Journal of Finance>/i> 50:
 131-155.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Fehrs, D.H.; G.A. Benesh; and D.R. Peterson. 1988. "Evidence of
 a Relation Between Stock Price Reactions Around Cash Dividend Changes and
 Yields." >i>Journal of Financial Research>/i> 11, no. 2 (Summer):
 111-123.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Frank, M., and R. Jagannathan. 1998. "Why Do Stock Prices Drop
 by Less Than the Value of the Dividend? Evidence from a Country Without
 Taxes." >i>Journal of Financial Economics>/i> 47, no. 2:
 161-188.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Glen, J.D.; Y. Karmokolias; R.R. Miller; and S. Shah. 1995.
 "Dividend Policy and Behaviour in Emerging Markets: To Pay or Not to Pay."
 IFC Discussion Paper No. 26, World Bank, Washington, DC, July.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>14</BIBL>	    <BIBTEXT> Ho, H. 2003.
 "Dividend Policies in Australia and Japan." >i>International Advances in
 Economic Research>/i> 9, no. 2 (May): 91-100.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> International Finance
 Corporation (IFC). 1997. >i>Emerging Stock Markets Factbook.>/i>
 Washington, DC: World Bank.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>16</BIBL>	<BIBTEXT> Istanbul Stock Exchange (ISE). Various
 Dates. "Annual Reports." Istanbul.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>17</BIBL>	<BIBTEXT> â- 2002. >i>Companies Capital and
 Dividend Data, 1986-2001>/i>, vol. 1. Istanbul.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT> Karyagdi, N. 2002. >i>Profit
 Distribution and Taxation.>/i> Istanbul: Finance Auditors
 Association.</BIBTEXT>      </REF>	 <REF>	      <BIBL>19</BIBL>	   
  <BIBTEXT> Lintner, J. 1956. "Distribution of Incomes of Corporations
 Among Dividends, Retained Earnings and Taxes." >i>American Economic
 Review>/i> 46, no. 2 (May): 97-113.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>20</BIBL>	 <BIBTEXT> Michaely, R.; R.H. Thaler; and K.L.
 Womack. 1995. "Price Reactions to Dividend Initiations and Omissions:
 Overreaction or Drift." >i>Journal of Finance>/i> 50, no. 2 (June):
 573-608.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Michel, A. 1979. "Industry Influence on Dividend Policy."
 >i>Financial Management>/i> 8, no. 3 (Autumn): 22-26.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>22</BIBL>	 <BIBTEXT> Milonas, N.T.,
 and N.G. Travlos. 2001. "The Ex-Dividend Day Stock Price Behavior in the
 Athens Stock Exchange." Working Paper Series, Cardiff University Business
 School, UK, June.</BIBTEXT>	  </REF>      <REF>	   <BIBL>23</BIBL> 
       <BIBTEXT> Milonas, N.; N. Travlos; J.Z. Xiao; and C. Tan. 2002. "The
 Ex-Dividend Day Stock Price Behavior in the Chinese Stock Market." Working
 Paper Series, Cardiff University Business School, UK, April.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>24</BIBL>	  <BIBTEXT> Osobov, L.
 2004. "Why Are Dividends Disappearing? An International Comparison." FMA
 Annual Meeting, New Orleans, October.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:42:y:2006:i:4:p:19-49




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 3 
Volume: 42 
Year: 2006 
Month: 5 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=10XV01018648H270 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:42:y:2006:i:3:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: David  Hauner 
Author-X-Name-First: David  
Author-X-Name-Last: Hauner 
Title: Guest Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-5 
Issue: 6 
Volume: 43 
Year: 2007 
Month: 11 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=2132003751173431 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:43:y:2007:i:6:p:3-5




Template-Type: ReDIF-Article 1.0
Author-Name: RECEP BILDIK 
Author-X-Name-First: RECEP 
Author-X-Name-Last: BILDIK 
Author-Name: SELIM ELEKDAG 
Author-X-Name-First: SELIM 
Author-X-Name-Last: ELEKDAG 
Title:         Effects of Price Limits on Volatility: Evidence from the Istanbul Stock Exchange       
Abstract:
       In spite of the strong existence of price limits in financial
 markets, there is not much agreement and information on the effects of
 price limits on volatility and price discovery, which has important policy
 implications for the investors and regulators. This study examines the
 effects of price limits on stock return volatility by testing the
 overreaction and information hypotheses for the Istanbul Stock Exchange.
 We implement structural break tests as well as a comprehensive GARCH
 framework to estimate the impact of price limits on volatility,
 controlling for structural breaks, financial and economic crises, trading
 activity, and business cycle fluctuations. Our results do not support the
 information hypothesis. The fundamental conclusion of this paper is that
 the two-hour break between the two daily sessions reduces volatility by
 acting as a circuit breaker, which facilitates the dissemination of
 valuable information, thus preventing severe overreactions to news events,
 which are consistent with the overreaction hypothesis.    
Journal: Emerging Markets Finance and Trade 
Pages: 5-34 
Issue: 1 
Volume: 40 
Year: 2004 
Month: 1 
Keywords: ARCH-GARCH modeling, emerging markets, price limits, volatility, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=L2C95M3YF2V63R7H 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Amihud, Y., and H.
 Mendelson. 1987. "Trading Mechanisms and Stock Returns: An Empirical
 Investigation." Journal of Finance 42, no. 3 (July): 533-553.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>2</BIBL>	  <BIBTEXT>------. 1991.
 "Volatility, Efficiency and Trading: Evidence from the Japanese Stock
 Market." Journal of Finance 46, no. 5 (December): 1765-1789.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>3</BIBL>	 <BIBTEXT>Berkman, H., and
 O.W. Steenbeek. 1998. "The Influence of Daily Price Limits on Trading in
 Nikkei Futures." Journal of Future Markets 18, no. 3 (May):
 265-279.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>Berry, T.H., and H.M. Howe. 1994. "Public Information Arrival."
 Journal of Finance 49, no. 4 (September): 1331-1346.</BIBTEXT>      </REF>
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 </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:1:p:5-34




Template-Type: ReDIF-Article 1.0
Author-Name: VIVIANA  FERNANDEZ 
Author-X-Name-First: VIVIANA  
Author-X-Name-Last: FERNANDEZ 
Title: Emerging Derivatives Markets: The Case of Chile 
Abstract:
 Despite impressive growth in derivatives markets around the world, there
 is considerable heterogeneity in the degree of development across
 countries. In Latin America, derivatives markets in Chile lag far behind
 those in Brazil and Argentina. What accounts for these differences? The
 analytical pricing machinery of Black and Scholes (1973), as well as the
 voluminous literature on contingent claims that has developed since, is
 freely available, so the answer probably lies in institutional and legal
 factors. We discuss different institutional aspects of derivatives markets
 in Chile and simulate the potential benefit for hedgers of using these
 instruments. Specifically, under different scenarios, most currency risk
 may be reduced by rolling-the-hedge strategies involving Chilean peso-U.S.
 dollar (CLP/USD) forwards. In our view, low liquidity of spot markets,
 high trading costs, and stringent regulations governing institutional
 investors--in particular, pension funds--appear to be driving factors in
 the thinness of the domestic derivatives market.
Journal: Emerging Markets Finance and Trade 
Pages: 63-92 
Issue: 2 
Volume: 42 
Year: 2006 
Month: 4 
Keywords: derivatives, hedging, liquidity, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=EWKPY42F7QP0MDQ9 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>------. 2001. "Triennial
 Central Bank Survey of Foreign Exchange and Derivatives Market Activity in
 2001." Basel (available at www.bis.org/publ/rpfx02t.pdf).</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT>Black, F., and M.
 Scholes. 1973. "The Pricing of Options and Corporate Liabilities." Journal
 of Political Economy 81, no. 3: 637-654.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>3</BIBL>	     <BIBTEXT>Brown, G. 2001. "Managing Foreign
 Exchange Risk with Derivatives." Journal of Financial Economics 60, no.
 2-3: 401-448.</BIBTEXT>      </REF>	  <REF>        <BIBL>4</BIBL>	   
  <BIBTEXT>Allayannis, G., and E. Ofek. 2001. "Exchange Rate Exposure,
 Hedging, and the Use of Foreign Currency Derivatives." Journal of
 International Money and Finance 20, no. 2: 273-296.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>5</BIBL>	<BIBTEXT>Bank for International
 Settlements (BIS). 1998. "Triennial Central Bank Survey of Foreign
 Exchange and Derivatives Market Activity in 1998." Basel (available at
 www.bis.org/ publ/r_fx98finaltxt.pdf).</BIBTEXT>      </REF>	   <REF>   
     <BIBL>6</BIBL>	   <BIBTEXT>Castillo, A., and F. Lefort. 2003.
 "Proteccion contra la exposicion del tipo de cambio a largo plazo con
 contratos futuros a corto plazo: El caso de los contratos forward en UF
 chilenas/dolares" [Hedging Currency Risk in a Long-Term Horizon with
 Short-Maturity Forward Contracts: The Case of UF/U.S. Dollar-Forward
 Contracts]. El Trimestre Economico 70, no. 3: 423-456.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT>Stulz, R. 1996.
 "Rethinking Risk Management." Journal of Applied Corporate Finance 9, no.
 3: 8-24.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT>Superintendency of Pension Funds. Various issues. Monthly
 Bulletin (available at www.safp .cl/sist_previsional/index.htm).</BIBTEXT>
      </REF>	  <REF>        <BIBL>9</BIBL>	     <BIBTEXT>Zurita, S.,
 and L. Gomez. 2003. "Normativa de los mercados derivados en Chile"
 [Regula-tion of Derivatives Markets in Chile]. Estudios Publicos 89
 (Summer): 63-90.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>  
      <BIBTEXT>Domowitz, I.; J. Glen; and A. Madhavan. 2001. "Liquidity,
 Volatility, and Equity Trading Costs Across Countries and Over Time."
 International Finance 4, no. 2: 221-255.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>11</BIBL>	      <BIBTEXT>El Diario Financiero. 2004. "Bajo
 precio del dolar vuelve a inquietar a exportadores," December 28, p. 28
 (available at www.diario.cl).</BIBTEXT>      </REF>	  <REF>       
 <BIBL>12</BIBL>	<BIBTEXT>Geczy, C.; B. Minton; and C. Schrand.
 1997. "Why Firms Use Currency Derivatives." Journal of Finance 52, no. 5:
 1323-1354.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT>Guay, W., and S.P. Kothari. 2003. "How Much Do Firms Hedge with
 Derivatives?" Journal of Financial Economics 70, no. 3: 423-461.</BIBTEXT>
      </REF>	  <REF>        <BIBL>14</BIBL>	      <BIBTEXT>Hentschel,
 L., and S.P. Kothari. 2001. "Are Corporations Reducing or Taking Risks
 with Derivatives?" Journal of Financial and Quantitative Analysis 36, no.
 1: 93-118.</BIBTEXT>	   </REF>      <REF>	    <BIBL>15</BIBL>	  
 <BIBTEXT>Howton, S., and S. Perfect. 1998. "Currency and Interest-Rate
 Derivatives Use in U.S. Firms." Financial Management 27, no. 4:
 111-121.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT>Hull, J. 2002. Options, Futures & Other Derivatives, 5th ed.
 Upper Saddle River, NJ: Prentice Hall.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>17</BIBL>	    <BIBTEXT>Kolb, R. 2003. Futures, Options, and
 Swaps, 4th ed. Malden, MA: Blackwell.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>18</BIBL>	   <BIBTEXT>Nance, D.; C. Smith; and C. Smithson.
 1993. "On the Determinants of Corporate Hedging." Journal of Finance 48,
 no. 1: 267-284.</BIBTEXT>	</REF>	    <REF>	 <BIBL>19</BIBL>   
     <BIBTEXT>Neuberger, A. 1999. "Hedging Long-Term Exposure with Multiple
 Short-Term Futures Contracts." Review of Financial Studies 12, no. 3:
 429-459.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT>Neuberger, A., and S. Hodges. 2002. "How Large Are the Benefits
 from Using Options?" Journal of Financial and Quantitative Analysis 37,
 no. 2: 201-220.</BIBTEXT>	</REF>	    <REF>	 <BIBL>21</BIBL>   
     <BIBTEXT>Cummins, D.; R. Phillips; and S.D. Smith. 1998. "The Rise of
 Risk Management." Federal Reserve Bank of Atlanta Economic Review 83, no.
 1: 30-41.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:2:p:63-92




Template-Type: ReDIF-Article 1.0
Author-Name: Zeynep  Ãnder 
Author-X-Name-First: Zeynep  
Author-X-Name-Last: Ãnder 
Author-Name: Can  Åimga-Mugan 
Author-X-Name-First: Can  
Author-X-Name-Last: Åimga-Mugan 
Title: How Do Political and Economic News Affect Emerging Markets? Evidence from Argentina and Turkey 
Abstract:
 High returns in emerging markets over the last decade have attracted
 international investors. This study investigates if and how economic or
 political news affects stock market activity in two emerging markets:
 Argentina and Turkey. Our analysis shows that political and economic news
 influences both the volatility of returns and trading volume in these
 markets to varying degrees. Results suggest that both economic and
 political factors, as well as specific market characteristics, should be
 taken into consideration by international investors when making investment
 decisions in emerging markets.
Journal: Emerging Markets Finance and Trade 
Pages: 50-77 
Issue: 4 
Volume: 42 
Year: 2006 
Month: 7 
Keywords: emerging markets, political and economic news, volatility and volume, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A664938763010857 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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 Equity Markets Before and After the 1987 Crash." >i>International Review
 of Financial Analysis>/i> 10, no. 3: 219-235.</BIBTEXT>      </REF>	 
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 Mulherin. 1994. "The Impact of Public Information on the Stock Market."
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 1994. "Weak-Form Efficiency in the Thinly Traded Istanbul Securities
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 Karemera. 1999. "Random Walks and Market Efficiency Tests of Latin
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   <BIBTEXT> Ãnder, Z. 2003. "Ownership Concentration and Firm
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 W.A. Luksetich. 1980. "The Market Prefers Republicans: Myth or Reality."
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 <BIBTEXT> Åimga-Mugan, C., and A. YÃ¼ce. 2003. "Privatization in Emerging
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       <BIBL>42</BIBL>	      <BIBTEXT> Tanner, G. 1994. "An Note on
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 arket&txtS=y'>http://www.trustnet.com/general/news/display-story.asp?id=44
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 href='http://www.state.gov/r/pa/ei/bgn/26516.htm'>http://www.state.gov/r/p
 a/ei/bgn/26516.htm>/a></BIBTEXT>      </REF>	   <REF>       
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 by Type" (available at >a target="_blank"
 href='http://www.treas.gov/tic/sl_30104.txt'>http://www.treas.gov/tic/sl_3
 0104.txt>/a></BIBTEXT>      </REF>	 <REF>	      <BIBL>46</BIBL>	   
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 2807.txt>/a></BIBTEXT>      </REF>	 <REF>	      <BIBL>47</BIBL>	   
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 Washington, DC (available at >a target="_blank"
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 9996.txt>/a></BIBTEXT>      </REF>	 <REF>	      <BIBL>48</BIBL>	   
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 href='http://devdata.worldbank.org/data-query'>http://devdata.worldbank.or
 g/data-query>/a></BIBTEXT>	 </REF>      <REF>	  <BIBL>49</BIBL>  
      <BIBTEXT> World Federation of Exchanges. 2003. "Statistics, Time
 Series." (available at >a target="_blank"
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 '>http://www.world-exchanges.org/WFE/home.asp?action=document&menu=195>/a>
 </BIBTEXT>	 </REF>      <REF>	  <BIBL>50</BIBL>	 <BIBTEXT>
 YÃ¼ce, A., and C. Åimga-Mugan. 2000. "Linkages Among Eastern European
 Stock Markets and the Major Stock Exchanges." >i>Russian and East European
 Finance and Trade>/i> 36, no. 6 (NovemberâDecember): 54-69.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>51</BIBL>	   <BIBTEXT> YÃ¼ce, A.; Z.
 Ãnder; and C. Åimga-Mugan. 1999. "IMKB'deki Kucuk
 YatirimcilarinTercihleri</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:4:p:50-77




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 3 
Volume: 41 
Year: 2005 
Month: 5 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=CXJTHRCA83D1FC6H 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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Handle: RePEc:mes:emfitr:v:41:y:2005:i:3:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Special Issue on Inflation Targeting Around the Globe: The Experience of Advanced and Emerging Market Economies 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 6 
Volume: 44 
Year: 2008 
Month: 11 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B3847LW1M5566307 
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Handle: RePEc:mes:emfitr:v:44:y:2008:i:6:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Junming  Hsu 
Author-X-Name-First: Junming  
Author-X-Name-Last: Hsu 
Author-Name: Li-Hwei  Tsai 
Author-X-Name-First: Li-Hwei  
Author-X-Name-Last: Tsai 
Title: An Investigation on Information Transmission Between Stocks of Far Eastern Countries and Their American Depositary Receipts 
Abstract:
 Domestic stocks and their American depositary receipts (ADRs) are
 essentially twin securities listed in the home country and United States,
 respectively. Accounting for exchange rates and market friction, their
 prices should move in tandem if international markets are efficient. In
 reality, however, their returns are close but sometimes differ
 dramatically. This study hypothesizes that changes in trading volume and
 macro events can lead investors between two equity markets to generate
 heterogeneous expectations or interpretations, causing returns on one
 security to deviate from those on the other. The results show that changes
 in past domestic volume do affect current ADR returns, implying that
 volume contains additional information not in prices. It is also found
 that important macro events, especially bad news, trigger significant
 differences in returns between domestic shares and their ADRs. These
 results support our argument that heterogeneous expectations prolong price
 information transmission between two equity markets.
Journal: Emerging Markets Finance and Trade 
Pages: 40-61 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: ADRs, heterogeneous expectations, information transmission, trading volume, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=53772XT83N164483 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Chaplinsky, S., and L.
 Ramchand. 2000. "The Impact of Global Equity Offerings." >i>Journal of
 Finance>/i> 55, no. 6: 2767-2789.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>2</BIBL>        <BIBTEXT> Copeland, T. E. 1976. "A Model of Asset
 Trading Under the Assumption of Sequential Information Arrival."
 >i>Journal of Finance>/i> 31, no. 4: 1149-1168.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Foerster, S. R., and G. A.
 Karolyi. 1999. "The Effects of Market Segmentation and Investor
 Recognition on Asset Prices: Evidence from Foreign Stocks Listing in the
 U. S." >i>Journal of Finance>/i> 54, no. 3: 981-1013.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Garfinkel, J. A.,
 and J. Sokobin. 2006. "Volume, Opinion Divergence and Returns: A Study of
 Post-Earnings Announcement Drift." >i>Journal of Accounting Research>/i>
 44, no. 1: 85-112.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL> 
       <BIBTEXT> Gervais, S.; R. Kaniel; and D. H. Mingelgrin. 2001. "The
 High-Volume Return Premium." >i>Journal of Finance>/i> 56, no. 3:
 877-919.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Heston, S. L.; K. G. Rouwenhorst; and R. E. Wessels. 1995. "The
 Structure of International Stock Returns and the Integration of Capital
 Markets." >i>Journal of Empirical Finance>/i> 2, no. 3: 173-197.</BIBTEXT>
      </REF>	  <REF>        <BIBL>7</BIBL>	     <BIBTEXT> Jennings, R.
 H.; L. T. Starks; and J. C. Fellingham. 1981. "An Equilibrium Model of
 Asset Trading with Sequential Information Arrival." >i>Journal of
 Finance>/i> 36, no. 1: 143-161.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>8</BIBL>        <BIBTEXT> Jorion, P., and W. N. Goetzmann. 1999.
 "Global Stock Markets in the Twentieth Century." >i>Journal of Finance>/i>
 54, no. 3: 953-980.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>
	<BIBTEXT> Karolyi, G. A., and R. M. Stulz. 1996. "Why Do Markets
 Move Together? An Examination of U. S.-Japan Stock Return Comovements."
 >i>Journal of Finance>/i> 51, no. 3: 951-986.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Kim, M.; A. C. Szakmary; and
 I. Mathur. 2000. "Price Transmission Dynamics Between ADRs and Their
 Underlying Foreign Securities." >i>Journal of Banking and Finance>/i> 24,
 no. 8: 1359-1382.</BIBTEXT>	  </REF>      <REF>	   <BIBL>11</BIBL> 
       <BIBTEXT> Rosenthal, L. 1983. "An Empirical Test of the Efficiency
 of the ADR Market." >i>Journal of Banking and Finance>/i> 7, no. 1:
 17-30.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>       
 <BIBTEXT> Varian, H. 1985. "Divergence of Opinion in Complete Markets: A
 Note." >i>Journal of Finance>/i> 40, no. 1: 309-317.</BIBTEXT>      </REF>
      <REF>	   <BIBL>13</BIBL>	  <BIBTEXT> Wahab, M.; M. Lashgari;
 and R. Cohn. 1992. "Arbitrage Opportunity in the American Depository
 Receipts Market Revisited." >i>Journal of International Financial Markets
 Institutions and Money>/i> 2, no. 3: 97-130.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT> Wang, J. 1994. "A Model of
 Competitive Stock Trading Volumn." >i>Journal of Political Economics>/i>
 102, no. 1: 127-168.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>15</BIBL>	<BIBTEXT> White, H. 1980. "A
 Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct
 Test for Heteroskedasticity." >i>Econometrica>/i> 48, no. 4:
 421-428.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:40-61




Template-Type: ReDIF-Article 1.0
Author-Name: CAN SIMGA-MUGAN 
Author-X-Name-First: CAN 
Author-X-Name-Last: SIMGA-MUGAN 
Author-Name: AYSE YÜCE 
Author-X-Name-First: AYSE 
Author-X-Name-Last: YÜCE 
Title:         Privatization in Emerging Markets : The Case of Turkey       
Abstract:
       This paper discusses the progress and success of the privatization
 programs in Turkey between 1985 and 1998. The paper discusses the legal
 developments, privatization methods, and performance of privatized
 companies and overall success of privatization by comparing the results of
 privatization with the aims and objectives stated initially. Within this
 framework, the paper presents the productivity increases or decreases in
 various privatized state enterprises, discusses the impact on stock market
 development, and the privatization revenues and cash results. Only 8.3
 percent of the large state-owned enterprises have been privatized during
 this period. Net cash flow generated from the privatization process does
 not appear to be satisfactory, and the impact on the stock market and the
 economy is not very impressive. Turkey still needs to privatize its
 largest state-owned enterprises in order to realize the full effects of
 the privatization program.    
Journal: Emerging Markets Finance and Trade 
Pages: 83-110 
Issue: 5 
Volume: 39 
Year: 2003 
Month: 9 
Keywords: developing country, privatization, Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=HK0EAQ53CE0TVMV9 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Boycko, M.; A.
 Schleifer, and R.W. Vishny. 1994. "Voucher Privatization." Journal of
 Financial Economics 35, no. 2: 249-266.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>2</BIBL>	    <BIBTEXT>------. 1996. "A Theory of
 Privatization." Economic Journal 106, no. 435: 309-319.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>Cook, P., and C.
 Kirkpatrick. 1994. "Assessing the Results of Privatization: A Review of
 Methodologies and Evidence." Working Paper, University of Manchester,
 UK.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>	  
 <BIBTEXT>DPT. 1994. Baslangicindan bugune Turkiye'de Ozellestirme
 Uygulamalari (1984-1994) [Privatization Applications in Turkey Since the
 Beginning (1984-1994)]. Ankara: State Planning Organization.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT>Durand, P. 1996.
 "Privatization in France." In Privatization in Asia, Europe and Latin
 America, pp. 95-106. Paris: OECD.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>6</BIBL>        <BIBTEXT>Estrin, S. 1994. Privatization in Central
 and Eastern Europe. London: Longman.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>7</BIBL>	 <BIBTEXT>Harteneck, G., and B. McMahon. 1996.
 "Privatization in Argentina." In Privation in Asia, Europe and Latin
 America, pp. 67-86. Paris: OECD.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>8</BIBL>        <BIBTEXT>H.M. Treasury. 1996. "Privatization in the
 U.K." In Privatization in Asia, Europe and Latin America, pp. 29-40.
 Paris: OECD.</BIBTEXT>      </REF>	 <REF>	      <BIBL>9</BIBL>	   
 <BIBTEXT>Ibrahim, A. 1996. "The Malaysian Privatization Experience." In
 Privatization in Asia, Europe and Latin America, pp. 41-52. Paris:
 OECD.</BIBTEXT>      </REF>	  <REF>        <BIBL>10</BIBL>	     
 <BIBTEXT>Kaser, M. 1995. Privatization in the CIS. London: Royal Institute
 of International Affairs.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>11</BIBL>	<BIBTEXT>Keller, A.Z.; C. Dogan; and O. Eroglu.
 1994. "Evaluation Privatization Policies in Turkey." International Journal
 of Public Sector Management 7, no. 1: 15-24.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT>Kikeri, S.; J. Nellis; and M.
 Shirley. 1992. The Lessons of Experience. Washington, DC: World
 Bank.</BIBTEXT>      </REF>	  <REF>        <BIBL>13</BIBL>	     
 <BIBTEXT>Kilci, A. 1998. "Turkiye'de Ozellestirme Uygulamalari: 1984-1998"
 [Privatization Application in Turkey: 1984-1998]. DPT Yillik Programlar ve
 Konjonktur Degerlendirme Genel Mudurlugu, Finansman Dairesi Baskanligi,
 Temmuz [Report by the State Planning Organization Annual Programs and
 Conjecture Evaluation Directorate, Department of Finance], Ankara,
 July.</BIBTEXT>      </REF>	  <REF>        <BIBL>14</BIBL>	     
 <BIBTEXT>Kim, B. 1996. "Korea's Privatization Experience." In
 Privatization in Asia, Europe and Latin America, pp. 107-115. Paris:
 OECD.</BIBTEXT>      </REF>	  <REF>        <BIBL>15</BIBL>	     
 <BIBTEXT>Kongar, E. 1986. "Turkey's Cultural Transformation." In The
 Transformation of Turkish Culture, ed. G. Renda and C.M. Kortepeter, pp.
 19-68. Princeton, NJ: Kingston Press.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>16</BIBL>	   <BIBTEXT>Lieberman, I.W.; A. Ewing; M. Mejstrik;
 J. Mukherjee; and P. Fidler. 1995. Mass Privatization in Central and
 Eastern Europe and the Former Soviet Union: A Comparative Analysis.
 Washington, DC: World Bank.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>17</BIBL>	<BIBTEXT>Molz, R. 1990. "Privatization in
 Developing Countries." Columbia Journal of World Business 25, nos. 1-2:
 17-24.</BIBTEXT>      </REF>	   <REF>	<BIBL>18</BIBL>       
 <BIBTEXT>Monthly Bulletin of Foreign Trade. 1995. Republic of Turkey,
 Prime Ministry Undersecretariat of Treasury, General Directorate of
 Economic Research and Assessment, Ankara, August.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>19</BIBL>        <BIBTEXT>Onis, Z. 1991. "The
 Evolution of Privatization in Turkey: The Institutional Context of
 Public-Enterprise Reform." International Journal of Middle East Studies
 23, no. 1: 163-176.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>20</BIBL>	<BIBTEXT>Paliwoda, S.J. 1995. Investing in Eastern
 Europe: Capitalizing on Emerging Markets. Wokingham, UK:
 Addison-Wesley.</BIBTEXT>	</REF>	    <REF>	 <BIBL>21</BIBL>   
     <BIBTEXT>Perotti, E. 1995. "Credible Privatization." American Economic
 Review 85, no. 4: 847-859.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>22</BIBL>	<BIBTEXT>Perotti, E., and S.E. Guney. 1993. "The
 Structure of Privatization Plans." Financial Management 22, no. 1:
 84-98.</BIBTEXT>      </REF>	   <REF>	<BIBL>23</BIBL>       
 <BIBTEXT>Sergio, R. 1996. "The Portuguese Privatization Experience." In
 Privatization in Asia, Europe and Latin America, pp. 53-66. Paris:
 OECD.</BIBTEXT>      </REF>	  <REF>        <BIBL>24</BIBL>	     
 <BIBTEXT>Sinilcalco, D.; B. Bortolotti; and M. Fantini. 2001.
 "Privatization Around the World: New Evidence from Panel Data." CESifo
 (Center for Economic Studies and Ifo Institute for Economic Research)
 Working Paper Series No. 600, Munich (available at www.ssrn.com/
 link/CESifo.html); FEEM (Fondaziaone Eni Enrico Mattei) Working Paper No.
 77.2001, Milan.</BIBTEXT>	</REF>	    <REF>	 <BIBL>25</BIBL>   
     <BIBTEXT>Treasury Monthly Indicators. 1994. Republic of Turkey, Prime
 Ministry Undersecretariat of Treasury, General Directorate of Public
 Finance, Ankara, September.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>26</BIBL>	<BIBTEXT>Turk Ekonomi Bankasi. 1995. Privatization
 in Turkey. Istanbul: Intermedya.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>27</BIBL>	<BIBTEXT>Vickers, J., and V. Wright. 1989. "The
 Politics of Industrial Privatization in Western Europe: An Overview." In
 The Politics of Privatization in Western Europe, ed. J. Vickers and V.
 Wright, pp. 1-30. London: Frank Cass.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>28</BIBL>	   <BIBTEXT>Vuylsteke, C. 1988. "Techniques of
 Privatization of State Owned Enterprises." World Bank Technical Paper No.
 88, vol. 1, Washington, DC.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:5:p:83-110




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 4 
Volume: 39 
Year: 2003 
Month: 7 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=VR496F3X56E46NA7 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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Handle: RePEc:mes:emfitr:v:39:y:2003:i:4:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen  Bahmani-Oskooee 
Author-X-Name-First: Mohsen  
Author-X-Name-Last: Bahmani-Oskooee 
Author-Name: Nisit  Panthamit 
Author-X-Name-First: Nisit  
Author-X-Name-Last: Panthamit 
Title: Exchange Rate Overshooting in East Asian Countries 
Abstract:
 Excess money supply was one factor among several contributing to the 1997
 financial crisis in East Asian countries. The crisis resulted in abnormal
 currency depreciation. Using monthly data over the period 1987-2000 and
 error correction modeling techniques, we pay tribute to Rudiger Dornbusch
 by providing strong evidence for his "overshooting" hypothesis in
 Thailand, Korea, Indonesia, Malaysia, and the Philippines. We show that
 overshooting is a short-run phenomenon; in the long run, money seems to be
 neutral.
Journal: Emerging Markets Finance and Trade 
Pages: 5-18 
Issue: 4 
Volume: 42 
Year: 2006 
Month: 7 
Keywords: East Asia, error correction modeling, exchange rate, overshooting, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XK6X831459272W75 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Backus, D. 1984.
 "Empirical Models of the Exchange Rate: Separating the Wheat from the
 Chaff." >i>Canadian Journal of Economics>/i> 17, no. 4: 824-846.</BIBTEXT>
      </REF>	  <REF>        <BIBL>2</BIBL>	     <BIBTEXT>
 Bahmani-Oskooee, M., and M. Bohl. 2000. "German Monetary Unification and
 the Stability of the German M3 Money Demand Function." >i>Economics
 Letters>/i> 66, no. 2: 203-208.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>3</BIBL>        <BIBTEXT> Bahmani-Oskooee, M., and T.J. Brooks.
 1999. "Bilateral J-Curve Between U.S. and Her Trading Partners."
 >i>Weltwirtschaftliches Archiv>/i> 135, no. 1: 156-165.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Bahmani-Oskooee,
 M., and O. Kara. 2000. "Exchange Rate Overshooting in Turkey."
 >i>Economics Letters>/i> 68, no. 1: 89-93.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Saillie, R.T., and D.D.
 Selover. 1987. "Cointegration and Models of Exchange Rate Determination."
 >i>International Journal of Forecasting>/i> 3, no. 1: 43-50.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>6</BIBL>	 <BIBTEXT> Brown, R.L.; J.
 Durbin; and J.M. Evans. 1975. "Techniques for Testing the Constancy of
 Regression Relationships over Time." >i>Journal of the Royal Statistical
 Society>/i> Series B (Methodological) 37, no. 2: 149-192.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Chinn, M.D. 1997.
 "On the Won: And Other East Asian Currencies." Working Paper No. PB97-07,
 Pacific Basin Working Paper Series, Federal Reserve Bank of San
 Francisco.</BIBTEXT>	   </REF>      <REF>	    <BIBL>8</BIBL>	 
 <BIBTEXT> Dornbusch, R. 1976. "Expectations and Exchange Rate Dynamics."
 >i>Journal of Political Economy>/i> 84, no. 6: 1161-1176.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT> Driskill, R.A.
 1981. "Exchange Rate Dynamics: An Empirical Investigation." >i>Journal of
 Political Economy>/i> 89, no. 2: 357-371.</BIBTEXT>	  </REF>      <REF>
	<BIBL>10</BIBL>        <BIBTEXT> Flood, R.P., and M.P. Taylor.
 1996. "Exchange Rate Economics: What Is Wrong with the Conventional Macro
 Approach?" In >i>The Micro Structure of Foreign Exchange Markets>/i>, ed.
 J.A. Frankel, G. Galli, and A. Giovannini, pp. 261-294. Chicago:
 University of Chicago Press.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>11</BIBL>	<BIBTEXT> Frankel, J.A. 1979. "On the Mark: A
 Theory of Floating Exchange Rate Based on Real Interest Differentials."
 >i>American Economic Review>/i> 69, no. 5: 610-627.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> IMF. 2002. International
 Monetary Fund Survey 31, no. 15: 241-256.</BIBTEXT>	  </REF>      <REF>
	<BIBL>13</BIBL>        <BIBTEXT> Kremers, J.J.M.; N.R. Ericsson;
 and J.J. Dolado. 1992. "The Power of Cointegration Tests." >i>Oxford
 Bulletin of Economics and Statistics>/i> 54, no. 3: 777-805.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>14</BIBL>	  <BIBTEXT> Macdonald, R.,
 and M.P. Taylor. 1993. "The Monetary Approach to the Exchange Rate."
 >i>IMF Staff Papers>/i> 40, no. 1: 89-107.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Papel, D.H. 1988.
 "Expectations and Exchange Rate Dynamics After a Decade of Floating."
 >i>Journal of International Economics>/i> 25, nos. 3-4: 303-317.</BIBTEXT>
      </REF>	  <REF>        <BIBL>16</BIBL>	      <BIBTEXT> Park, G.
 1997. "Short Run and Long Run Dynamics of Exchange Rates with Sticky
 Prices." >i>Review of International Economics>/i> 5, no. 4:
 478-481.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Pesaran, H.M.; Y. Shin; and R.J. Smith. 2001. "Bounds Testing
 Approach to the Analysis of Level Relationships." >i>Journal of Applied
 Econometrics>/i> 16, no. 3: 289-326.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>18</BIBL>	  <BIBTEXT> Tan, G. 2000. >i>The Asian Currency
 Crisis.>/i> Singapore: Time Academic Press.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:4:p:5-18




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 1 
Volume: 45 
Year: 2009 
Month: 1 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=70JU52180K2UH156 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:45:y:2009:i:1:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Viviana  Fernandez 
Author-X-Name-First: Viviana  
Author-X-Name-Last: Fernandez 
Title: Stock Market Turmoil: Worldwide Effects of Middle East Conflicts 
Abstract:
 This paper analyzes the effect of recent political conflicts in the Middle
 East on stock markets worldwide. In particular, it studies how political
 instabilityâmainly due to the war in Iraqâhas affected the long-term
 volatility of stock markets, using two approaches, Inclan and Tiao's
 (1994) iterative cumulative sum of squares algorithm and wavelet-based
 variance analysis, to detect structural breakpoints in volatility.
 Controlling for conditional heteroskedasticity and serial correlation in
 returns, the paper finds that the ongoing Middle East conflicts have had
 an effect primarily on the stock markets of countries in the Middle East
 and in emerging Asian countries (e.g., Turkey, Morocco, Egypt, Pakistan,
 and Indonesia). Further evidence from an international version of the
 capital asset pricing mechanism shows that political instability in the
 Middle East has had a heterogeneous effect on the sensitivity of stock
 returns to market and currency risks.
Journal: Emerging Markets Finance and Trade 
Pages: 58-102 
Issue: 3 
Volume: 43 
Year: 2007 
Month: 6 
Keywords: ICAPM, ICSS algorithm, volatility breakpoints, wavelets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=JN530W22061PK764 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aggarwal, R.; C.
 Inclan; and R. Leal. 1999. "Volatility in Emerging Stock Markets."
 >i>Journal of Financial and Quantitative Analysis>/i> 34, no. 1:
 33-55.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT> Bacmann, J., and M. Dubois. 2002. "Volatility in Emerging Stock
 Markets Revisited." Paper presented at the European Financial Management
 Association (EFMA) 2002 meeting, London (available at >a target="_blank"
 href='http://ssrn.com/abstract=313932'>ssrn.com/abstract=313932>/a></BIBTE
 XT>	  </REF>      <REF>	   <BIBL>3</BIBL>	 <BIBTEXT> Bruce,
 A., and H. Gao. 1996. >i>Applied Wavelet Analysis with S-Plus.>/i> New
 York: Springer-Verlag.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>4</BIBL>        <BIBTEXT> Connor, J., and R. Rossiter. 2005.
 "Wavelet Transforms and Commodity Prices." >i>Studies in Nonlinear
 Dynamics & Econometrics>/i> 9, no. 1: 1-22.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Covarrubias, G.; B. Ewing; S.
 Hein; and M. Thompson. 2005. "Modeling Volatility Changes in the 10-Year
 Treasury." >i>Physica A>/i> 369, no. 2: 737-744.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>6</BIBL>	     <BIBTEXT> Fernandez, V. 2005. "The
 International CAPM and a Wavelet-Based Decomposition of Value at Risk."
 >i>Studies of Nonlinear Dynamics & Econometrics>/i> 9, no. 4:
 1-37.</BIBTEXT>      </REF>	  <REF>        <BIBL>7</BIBL>	    
 <BIBTEXT> GenÃ§ay, R.; B. Whitcher; and F. SelÃ§uk. 2001. "Differentiating
 Intraday Seasonalities Through Wavelet Multi-Scaling." >i>Physica A>/i>
 289, no. 3-4: 543-556.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> GenÃ§ay, R.; B. Whitcher; and F. SelÃ§uk.
 2003. "Systematic Risk and Time Scales." >i>Quantitative Finance>/i> 3,
 no. 2: 108-116.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT> GenÃ§ay, R.; B. Whitcher; and F. SelÃ§uk. 2005. "Multiscale
 Systematic Risk." >i>Journal of International Money and Finance>/i> 24,
 no. 1: 55-70.</BIBTEXT>      </REF>	  <REF>        <BIBL>10</BIBL>	   
   <BIBTEXT> Hammoudeh, S., and H. Li. Forthcoming. "Sudden Changes in
 Volatility in Emerging Markets: The Case of Gulf Arab Stock Markets."
 >i>International Review of Financial Analysis>/i>.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>11</BIBL>	<BIBTEXT> In, F., and S. Kim. 2006.
 "The Hedge Ratio and the Empirical Relationship Between the Stock and
 Futures Markets: A New Approach Using Wavelet Analysis." >i>Journal of
 Business>/i> 79, no. 2: 799-820.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>12</BIBL>	<BIBTEXT> Inclan, C., and G. Tiao. 1994. "Use of
 Cumulative Sums of Squares for Retrospective Detection of Changes in
 Variance." >i>Journal of the American Statistical Association>/i> 89, no.
 427: 913-923.</BIBTEXT>      </REF>	  <REF>        <BIBL>13</BIBL>	   
   <BIBTEXT> Karuppiah, J., and C. Los. 2005. "Wavelet Multi-Resolution
 Analysis of High-Frequency Asian FX Rates, Summer 1997." >i>International
 Review of Financial Analysis>/i> 14, no. 2: 211-246.</BIBTEXT>      </REF>
      <REF>	   <BIBL>14</BIBL>	  <BIBTEXT> Lin, S., and M.
 Stevenson. 2001. "Wavelet Analysis of the Cost-of-Carry Model." >i>Studies
 in Nonlinear Dynamics & Econometrics>/i> 5, no. 1: 1-17.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT> Lamoureux, C.,
 and W. Lastrapes. 1990. "Persistence in Variance, Structural Change, and
 the GARCH Model." >i>Journal of Business and Economic Statistics>/i> 8,
 no. 2: 225-234.</BIBTEXT>	</REF>	    <REF>	 <BIBL>16</BIBL>   
     <BIBTEXT> Percival, D., and A. Walden. 2000. >i>Wavelets Analysis for
 Time Series Analysis>/i>. Cambridge: Cambridge University Press.</BIBTEXT>
      </REF>	  <REF>        <BIBL>17</BIBL>	      <BIBTEXT> Poon, S.,
 and C. Granger. 2003. "Forecasting Volatility in Financial Markets: A
 Review." >i>Journal of Economic Literature>/i> 41, no. 2:
 478-539.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT> Ramsey, J. 1999. "The Contribution of Wavelets to the Analysis
 of Economic and Financial Data." >i>Philosophical Transactions of the
 Royal Society A>/i> 357, no. 1760: 2593-2606.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT> Ramsey, J. 2002. "Wavelets
 in Economics and Finance: Past and Future." >i>Studies in Nonlinear
 Dynamics & Econometrics>/i> 6, no. 3: 1-29.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Ramsey, J., and C. Lampart.
 1998. "The Decomposition of Economic Relationships by Time Scale Using
 Wavelets: Expenditure and Income." >i>Studies in Nonlinear Dynamics &
 Econometrics>/i> 3, no. 1: 1-22.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>21</BIBL>	<BIBTEXT> Ramsey, J., D. Usikov, and G. Zaslavsky.
 1995. "An Analysis of U.S. Stock Price Behavior Using Wavelets."
 >i>Fractals>/i> 3, no. 2: 377-389.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>22</BIBL>	<BIBTEXT> Ramsey, J., and Z. Zhang. 1996. "The
 Application of Waveform Dictionaries to Stock Market Data." In
 >i>Predictability of Dynamical Systems>/i>, vol. 69, ed. Y.A. Kravstov and
 J.B. Kadtke, pp. 189-205. New York: Springer-Verlag.</BIBTEXT>      </REF>
      <REF>	   <BIBL>23</BIBL>	  <BIBTEXT> Ramsey, J., and Z.
 Zhang. 1997. "The Analysis of Foreign Exchange Rate Data Using Waveform
 Dictionaries." >i>Journal of Empirical Finance>/i> 4, no. 4:
 341-372.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT> Sercu, P., and R. Uppal. 1995. >i>International Financial
 Markets and the Firm>/i>. Cincinnati: South-Western College
 Publishing.</BIBTEXT>	    </REF>	<REF>	     <BIBL>25</BIBL>	   
 <BIBTEXT> Whitcher, B. 2004. "Wavelet-Based Estimation for Seasonal
 Long-Memory Processes." >i>Technometrics>/i> 46, no. 2: 225-238.</BIBTEXT>
      </REF>	
Handle: RePEc:mes:emfitr:v:43:y:2007:i:3:p:58-102




Template-Type: ReDIF-Article 1.0
Author-Name: IRFAN CIVCIR 
Author-X-Name-First: IRFAN 
Author-X-Name-Last: CIVCIR 
Title:         The Long-Run Validity of the Monetary Exchange Rate Model for a High Inflation Country and Misalignment : The Case of Turkey       
Abstract:
       This paper applies the Johansen cointegration technique to examine
 the validity of the monetary model of exchange rate determination as an
 explanation of the Turkish lira-U.S. dollar relationship over
 1987:1-2000:12. A single cointegrating vector is identified, lending
 support to the interpretation of the model as describing a long-run
 equilibrium relationship. We also test for weak exogeneity of the nominal
 exchange rates and monetary fundamentals from the estimated vector error
 correction models. This gives us insight into the adjustment process
 through which the long-run equilibrium relationship between exchange rates
 and monetary fundamentals is maintained. In addition, we calculate
 misalignment from estimating the long-run relationship to evaluate whether
 the lira was overvalued before the eve of the 2001 financial crisis in
 Turkey. Calculated misalignment figures show substantial overvaluation
 before the crisis.    
Journal: Emerging Markets Finance and Trade 
Pages: 84-100 
Issue: 4 
Volume: 40 
Year: 2004 
Month: 7 
Keywords: exchange rates, misalignment, monetary model, Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=1WAVB82T4F7XE03P 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Bahmani-Oskooee, M., and
 O. Kara. 2000. "Exchange Rate Overshooting in Turkey." Economic Letters 68
 (July): 89-93.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	   
   <BIBTEXT>Baillie, R.T., and R.A. Pecchenino. 1991. "The Search for
 Equilibrium Relationships in International Finance: The Case of the
 Monetary Model." Journal of International Money and Finance 10, no. 4:
 582-593.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Baillie, R.T., and D.D. Selover. 1987. "Cointegration and Models
 of Exchange Rate Determination." International Journal of Forecasting 3,
 no. 1: 43-51.</BIBTEXT>      </REF>	  <REF>        <BIBL>4</BIBL>	   
  <BIBTEXT>Balassa, B. 1964. "The Purchasing Power Parity Doctrine: A
 Reappraisal." Journal of Political Economy 72, no. 6: 584-596.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>5</BIBL>	   <BIBTEXT>Bilson, J.F.O.
 1978. "Rational Expectations and the Exchange Rate." In The Economics of
 Exchange Rates, ed. J.A. Frankel and H.G. Johnson, pp. 75-96. Reading, MA:
 Addison-Wesley.</BIBTEXT>	</REF>	    <REF>	 <BIBL>6</BIBL>    
    <BIBTEXT>Cheung, Y.-W., and D.M. Chinn. 1998. "Integration,
 Cointegration, and the Forecast Consistency of Structural Exchange Rate
 Models." Journal of International Money and Finance 17: 813-830.</BIBTEXT>
      </REF>	  <REF>        <BIBL>7</BIBL>	     <BIBTEXT>Cheung,
 Y.-W., and K.S. Lai. 1993. "Finite-Sample Sizes of Johansen's Likelihood
 Ratio Tests for Cointegration." Oxford Bulletin of Economics and
 Statistics 55, no. 3: 313-328.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>8</BIBL>        <BIBTEXT>Chinn, D.M. 2000. "Before the Fall: Were
 East Asian Currencies Overvalued?" Emerging Markets Review 1, no. 2:
 101-126.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT>Civcir, I. 2003. "Before the Fall was the Turkish Lira
 Overvalued?" Eastern European Economics 41, no. 2: 69-99.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT>DeGregorio, J.,
 and H. Wolf. 1994. "Terms of Trade, Productivity and the Real Exchange
 Rate." NBER Working Paper No. 4807, Cambridge, MA.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>11</BIBL>	<BIBTEXT>Dickey, D.A., and W.A.
 Fuller. 1979. "Distribution of the Estimators for Autoregressive Time
 Series with a Unit Root." Journal of the American Statistical Association
 74 (June): 427-431.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>12</BIBL>	<BIBTEXT>------. 1981. "Likelihood Ratio Statistics
 for Autoregressive Time Series with Unit Roots." Econometrica 49 (July):
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 <BIBTEXT>Doornik, J.A.; D.F. Hendry; and B. Nielsen. 1998. "Inference in
 Cointegrating Models: UK M1 Revisited." Journal of Economic Surveys 12,
 no. 5: 533-572.</BIBTEXT>	</REF>	    <REF>	 <BIBL>14</BIBL>   
     <BIBTEXT>Dornbusch, R. 1976. "Expectations and Exchange Rate
 Dynamics." Journal of Political Economy 84, no. 6: 1161-1176.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>15</BIBL>	   <BIBTEXT>Erlat, H. 2001.
 "The Nature of Persistence in Turkish Real Exchange Rates." Middle East
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 Ankara.</BIBTEXT>	</REF>	    <REF>	 <BIBL>16</BIBL>       
 <BIBTEXT>Frankel, J.A. 1979. "On the Mark: A Theory of Floating Exchange
 Rates Based on Real Interest Differentials." American Economic Review 69
 (September): 610-622.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>17</BIBL>	<BIBTEXT>Frankel, J.A., and A.K. Rose. 1996.
 "Currency Crashes in Emerging Markets: An Empirical Treatment." Journal of
 International Economics 41, nos. 3-4: 351-368.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT>Gonzalo, J. 1994. "Comparison
 of Five Alternative Methods of Estimating Long-Run Equilibrium
 Relationships." Journal of Econometrics 60 (June): 203-233.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT>Groen, J.J.J.
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 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT>Hinkle, L.E., and P.J.
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 R.J. 1978. "An Empirical Analysis of the Monetary Approach to
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     <BIBTEXT>Husted, S., and R.R. MacDonald. 1999. "The Asian Currency
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 <BIBL>24</BIBL>	<BIBTEXT>Johansen, S. 1988. "Statistical Analysis
 of Cointegrating Vectors." Journal of Economics and Dynamic Control 12
 (June-September): 231-254.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>25</BIBL>	<BIBTEXT>------. 1995. Likelihood-Based Inference
 in Cointegrated Vector Autoregressive Models. Oxford: Oxford University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>26</BIBL>       
 <BIBTEXT>Johansen, S., and K. Juselius. 1990. "Maximum Likelihood
 Estimation and Inference on Cointegration with Applications to the Demand
 for Money." Oxford Bulletin of Economic and Statistics 52, no. 2:
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 <BIBTEXT>La Cour, L., and R. MacDonald. 2000. "Modeling the ECU-U.S.
 Dollar Exchange Rate: A Structural Monetary Interpretation." Journal of
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 and M.P. Taylor. 1996. "Real Exchange Rate Behavior: The Recent Float from
 the Perspective of Two Centuries." Journal of Political Economy 104, no.
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 <BIBTEXT>MacDonald, R. 2000. "Concepts to Calculate Equilibrium Exchange
 Rates: An Overview." Discussion Paper 3/00, Economic Research Group of the
 Deutsche Bundesbank, Frankfurt.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>30</BIBL>	<BIBTEXT>Mark, N.C., and D. Sul. 2001. "Nominal
 Exchange Rates and Monetary Fundamentals: Evidence from a Small
 Post-Bretton Woods Panel." Journal of International Economics 53, no. 1:
 29-52.</BIBTEXT>      </REF>	   <REF>	<BIBL>31</BIBL>       
 <BIBTEXT>McNown, R.A., and M. Wallace. 1994. "Cointegration Tests of the
 Monetary Exchange Rate Model for Three High Inflation Economies." Journal
 of Money Credit and Banking 26, no. 3-1: 396-411.</BIBTEXT>	  </REF>   
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 Long-Run Purchasing Power Parity and Uncovered Interest Rate Parity:
 Turkish Case." Discussion Paper No. 94-2, Department of Economics, Bilkent
 University, Ankara.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>33</BIBL>	<BIBTEXT>Moosa, I.A. 2000. "A Structural Time
 Series Test of the Monetary Model of Exchange Rates Under the German
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 <BIBL>34</BIBL>	<BIBTEXT>Osterwald-Lenum, M. 1992. "A Note with
 Quantiles of the Asymptotic Distribution of the ML Cointegration Rank Test
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	<BIBTEXT>Rapach, D.E., and M.E. Wohar. Forthcoming. "Testing the
 Monetary Model of the Exchange Rate Determination: A Closer Look at
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 "Theoretical Notes on Trade Problems." Review of Economics and Statistics
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 the Purchasing Power Parity Puzzle: Sampling and Specification Biases in
 Mean-Reversion Tests of the Law of One Price. Econometrica 69 (March):
 473-498.</BIBTEXT>	 </REF>      <REF>	  <BIBL>39</BIBL>	
 <BIBTEXT>Taylor, M.P., and L. Sarno. 1998. "The Behavior of Real Exchange
 Rates During the Post-Bretton Woods Period." Journal of International
 Economics 46, no. 2: 281-312.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>40</BIBL>	<BIBTEXT>Telatar, E., and H. Kazdagli. 1998.
 "Re-Examine the Long Run Purchasing Power Parity Hypothesis for a High
 Inflation Country: The Case of Turkey." Applied Economics Letters 5, no.
 1: 51-53.</BIBTEXT>	  </REF>      <REF>	   <BIBL>41</BIBL>	 
 <BIBTEXT>Williamson, J., ed. 1994. Estimating Equilibrium Exchange Rates.
 Washington, DC: Institute for International Economics.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:4:p:84-100




Template-Type: ReDIF-Article 1.0
Author-Name: MICHAEL GRAFF 
Author-X-Name-First: MICHAEL 
Author-X-Name-Last: GRAFF 
Title:         Financial Development and Economic Growth in Corporatist and Liberal Market Economies       
Abstract:
       The paper addresses the significance of financial development as a
 possible determinant of economic growth. Economists and policymakers in
 transition economies and emerging markets are certainly aware of the key
 role that, in a market economy, the financial system is supposed to play
 in the process of allocating scarce resources to their final uses.
 However, to fulfill this function, the financial sector itself is using up
 resources, and it is not obvious, whether or under which conditions the
 overall balance is a favorable one. An empirical analysis of these
 questions is based on a panel data set covering ninety-three countries
 from 1970-90. According to this data, financial activity has generally
 supported economic growth. To clarify whether socioeconomic
 characteristics modify the structure of the finance-growth nexus, the
 countries are classified according to their degree of corporatism. It is
 shown that the partial correlation between (lagged) proxies for financial
 development as well as its interaction terms and growth are significantly
 higher in the more corporatist subgroup of countries. When designing
 appropriate policies for the setup and reform of a financial system in
 transition economies and emerging markets, it is therefore crucial to
 consider the embeddedness of economic institutions into their broader
 social, cultural, and historical surroundings.    
Journal: Emerging Markets Finance and Trade 
Pages: 47-69 
Issue: 2 
Volume: 39 
Year: 2003 
Month: 3 
Keywords: corporatism, economic growth, financial development, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=LYCN0G2VFYG3GD44 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Adelman, I., and C.T.
 Morris. 1968. "Performance Criteria for Evaluating Economic Development
 Potential: An Operational Approach." Quarterly Journal of Economics 82,
 no. 2: 260-280.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>    
    <BIBTEXT>Bankers' Almanac and Yearbook. Various dates. London: Thomas
 Skinner.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Barro, R., and J.W. Lee. 1996. "International Measures of
 Schooling Years and Schooling Quality." American Economic Review, Papers
 and Proceedings 86, no. 2: 218-223.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>4</BIBL>	<BIBTEXT>Barro, R., and H.C. Wolf. 1989. "Data
 Appendix for Economic Growth in a Cross Section of Countries." Harvard
 University, Cambridge, MA.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>5</BIBL>        <BIBTEXT>Benhabib, J., and M.M. Spiegel. 2000. "The
 Role of Financial Development in Growth and Investment." Journal of
 Economic Growth 5, no. 5: 341-360.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>6</BIBL>        <BIBTEXT>Berthélemy, J., and A. Varoudakis. 1996.
 "Economic Growth, Convergence Clubs, and the Role of Financial
 Development." Oxford Economic Papers 48, no. 2: 300-328.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT>Braun, T.; W.
 Glaenzel; and A. Schubert. 1987. "One More Version of the Facts and
 Figures on Publication Output and Relative Citation Impact of 107
 Countries, 1978-1980." Scientometrics 11, no. 1-2: 9-15.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT>Cameron, R. 1993.
 A Concise Economic History of the World, 2d ed. New York: Oxford
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>9</BIBL>  
      <BIBTEXT>Cameron, R.; O. Crisp; H.T. Patrick; and R. Tilly. 1967.
 Banking in the Early Stages of Industrialisation. New York: Oxford
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>10</BIBL> 
       <BIBTEXT>De Gregorio, V., and P.E. Guidotti. 1995. "Financial
 Development and Economic Growth." World Development 23, no. 2:
 433-448.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT>Fry, M. 1995. Money, Interest, and Banking in Economic
 Development, 2d ed. Baltimore: Johns Hopkins University Press.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>12</BIBL>	    <BIBTEXT>Gerschenkron,
 A. 1962. Economic Backwardness in Historical Perspective. A Book of
 Essays. Cambridge, MA: Belknap Press of Harvard University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>13</BIBL>       
 <BIBTEXT>Goldsmith, R.W. 1969. Financial Structure and Development. New
 Haven: Yale University Press.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>14</BIBL>	<BIBTEXT>------. 1987. Premodern Financial Systems:
 A Historical Comparative Study. Cambridge: Cambridge University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>       
 <BIBTEXT>Graff, M. 2002. "Causal Links Between Financial Activity and
 Economic Growth: Empirical Evidence from a Cross-Country Analysis,
 1970-1990." Bulletin of Economic Research 54, no. 2: 119-133.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>16</BIBL>	   <BIBTEXT>Habermas, J.
 1973. Legitimitätspobleme im Spätkapitalismus [Legitimation Problems in
 the Period of Late Capitalism]. Frankfurt am Main: Suhrkamp.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>17</BIBL>	  <BIBTEXT>Harberger, A.C.
 1978. "Perspectives on Capital and Technology in Less Developed
 Countries." In Contemporary Economic Analysis, ed. M.J. Artis and A.R.
 Nobay, pp. 15-40. London: Croom Helm.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>18</BIBL>	   <BIBTEXT>------. 1998. "A Vision of the Growth
 Process." American Economic Review 88, no. 1: 1-33.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>19</BIBL>	 <BIBTEXT>Henley, A., and E.
 Tsakalatos. 1993. Corporatism and Economic Performance: A Comparative
 Analysis of Market Economies. Aldershot, UK: Edward Elgar.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT>ILO
 (International Labor Organization). Various dates. Yearbook of Labour
 Statistics. Geneva: ILO.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>21</BIBL>	<BIBTEXT>IMF. Various dates. Balance of Payments
 Statistics. Washington, DC: IMF.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>22</BIBL>	<BIBTEXT>Kaminsky, G.; S. Lizondo; and C.M.
 Reinhart. 1998. "Leading Indicators of Currency Crises." IMF Staff Papers
 45, no. 1: 1-48.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>  
      <BIBTEXT>King, R.G., and R. Levine. 1993. "Finance and Growth:
 Schumpeter Might Be Right." Quarterly Journal of Economics 108, no. 3:
 717-738.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT>LaPorta, R.; F. Lopez-de-Silanes; and A. Shleifer. 1998. "Law and
 Finance." Journal of Political Economy 106, no. 6: 1113-1155.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>25</BIBL>	   <BIBTEXT>Levine, R.
 1997. "Financial Development and Economic Growth: Views and Agenda."
 Journal of Economic Literature 35, June: 688-726.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>26</BIBL>        <BIBTEXT>Levine, R., and D. Renelt.
 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions."
 American Economic Review 82, no. 4: 942-963.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>27</BIBL>	     <BIBTEXT>Lynch, D. 1996. "Measuring
 Financial Sector Development: A Study of Selected Asia-Pacific Countries."
 Developing Economies 34, no. 1: 3-33.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>28</BIBL>	   <BIBTEXT>Nehru, V., and A. Dhareshwar. 1993. "A
 New Database on Physical Capital Stock: Sources, Methodology, and
 Results." Revista de Análisis Económico 8, no. 1: 37-59.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>29</BIBL>	 <BIBTEXT>North, D. C.
 1990. Institutions, Institutional Change and Economic Performance.
 Cambridge: Cambridge University Press.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>30</BIBL>	    <BIBTEXT>Rajan, R.G., and L. Zingales. 1998.
 "Financial Dependence and Growth." American Economic Review 88, no. 3:
 559-586.</BIBTEXT>	 </REF>      <REF>	  <BIBL>31</BIBL>	
 <BIBTEXT>Sala-i-Martin, X. 1997. "I Just Ran Two Million Regressions."
 American Economic Review 87, no. 2: 178-183.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>32</BIBL>	     <BIBTEXT>Sandberg, L.G. 1978. "Banking
 and Economic Growth in Sweden Before Word War I." Journal of Economic
 History 38, no. 4: 650-680.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>33</BIBL>	<BIBTEXT>Schubert, A.; W. Glaenzel; and T. Braun.
 1989. "World Flash on Basic Research: Scientometric Datafiles--A
 Comprehensive Set of Indicators on 2649 Journals and 96 Countries in All
 Major Science Fields and Subfields, 1981-1985." Scientometrics 16, no.
 1-6: 1-478.</BIBTEXT>	    </REF>	<REF>	     <BIBL>34</BIBL>	   
 <BIBTEXT>Schumpeter, J.A. 1911. Theorie der wirtschaftlichen Entwicklung
 [Theory of Economic Development]. Munich: Duncker & Humblot.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>35</BIBL>	  <BIBTEXT>Stiroh, K.J.
 2001. "What Drives Productivity Growth?" Federal Reserve Bank of New York
 Economic Policy Review 7, no. 1: 37-59.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>36</BIBL>	     <BIBTEXT>United Nations. Various dates.
 "National Account Statistics." New York.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>37</BIBL>	      <BIBTEXT>UNESCO (United Nations Educational,
 Scientific, and Cultural Organization). Various dates. Statistical
 Yearbook. Paris: UNESCO.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>38</BIBL>	<BIBTEXT>Vanhanen, T. 1997. Prospects of Democracy.
 A Study of 172 Countries. London: Routledge.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>39</BIBL>	     <BIBTEXT>Williamson, O.E. 1985. The
 Economic Institutions of Capitalism. New York: Free Press.</BIBTEXT>	  
 </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:2:p:47-69




Template-Type: ReDIF-Article 1.0
Author-Name: CUNEYT  KOYUNCU 
Author-X-Name-First: CUNEYT  
Author-X-Name-Last: KOYUNCU 
Author-Name: RASIM  YILMAZ 
Author-X-Name-First: RASIM  
Author-X-Name-Last: YILMAZ 
Title: Can China Help Lower World Inflation?: A Panel Study 
Abstract:
 In this paper, the effect of China's imports on importing countries'
 inflation is examined. Using data from 1994 to 2003, it is argued that
 China's export surge is an important contributor to lowering inflation in
 importing countries. Using fixed and random effect models, we identify a
 statistically significant negative correlation between the share of a
 country's imports from China and its rate of inflation.
Journal: Emerging Markets Finance and Trade 
Pages: 93-103 
Issue: 2 
Volume: 42 
Year: 2006 
Month: 4 
Keywords: China, deflation, international trade, panel study, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=CLWKPF0T3VD488N9 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>------. 1996. "Foreign
 Direct Investment in China: Sources and Consequences." In Financial
 Deregulation and Integration in East Asia, ed. T. Ito and A. Krueger, pp.
 77-106. Chicago: University of Chicago Press.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Bank of China Group. 2002. "Is
 Deflation Made in China?" Hong Kong Development and Trade Council, October
 (available at www.tdctrade.com/econforum/boc/boc021001.htm).</BIBTEXT>    
  </REF>      <REF>	   <BIBL>3</BIBL>	 <BIBTEXT>Amitrano, A.; P.
 De Grauwe; and G. Tullio. 1997. "Why Has Inflation Remained So Low After
 the Large Exchange Rate Depreciation of 1992?" Journal of Common Market
 Studies 35, no. 3 (September): 329-347.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>4</BIBL>	    <BIBTEXT>Ryan, P. 2003. "Is China Exporting
 Deflation Globally, Hollowing-Out Japan?" Marubeni Research Institute
 Economic Report, March (available at www.marubeni.co.jp/research/
 eindex/0303/).</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	   
   <BIBTEXT>Wei, S.J. 1995. "The Open Door Policy and China's Rapid Growth:
 Evidence from City-Level Data." In Growth Theories in Light of the East
 Asian Experience, ed. T. Ito and A. Krueger, pp. 73-104. Chicago:
 University of Chicago Press.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>6</BIBL>        <BIBTEXT>Dornbusch, R. 1987. "Exchange Rates and
 Prices." American Economic Review 77, no. 1 (March): 93-106.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>7</BIBL>	 <BIBTEXT>Yam, D. 2002.
 "China: Exporting More Deflation." Morgan Stanley Global Economic Forum
 (September 16) (available at
 www.morganstanley.com/GEFdata/digests/20020916-mon.html#anchor5/).</BIBTEX
 T>	 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT>World
 Bank. 2002a. "China Is Becoming the World's Manufacturing Powerhouse."
 Transition Newsletter (October-December): 4-6.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT>------. 2002b. World
 Development Indicators. Washington, DC.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>10</BIBL>	     <BIBTEXT>------. 2003. World Development
 Indicators. Washington, DC.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>11</BIBL>	<BIBTEXT>Economist. 2004. "The Dragon and the
 Eagle." Economist (September 30): 3-32.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>12</BIBL>	     <BIBTEXT>Economist Intelligence Unit. 2004.
 Country Profile: China 2004. London: Economist Group.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT>Euromonitor
 International. 2005. World Marketing Data and Statistics 2005 Online
 Database. London: Euromonitor International (available at
 www.euromonitor.com/womdas/ aspx).</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT>Hafer, R.W. 1989. "Does Dollar
 Depreciation Cause Inflation?" Federal Reserve Bank of St. Louis Review
 71, no. 4 (July-August): 16-28.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>15</BIBL>	<BIBTEXT>Hu, Angang. 2003. "Is China the Root Cause
 of Global Deflation?" China and World Economy 11, no. 3: 3-7.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>16</BIBL>	   <BIBTEXT>Kamin, S.B.; M.
 Marazi; and J.W. Schindler. 2004. "Is China Exporting Deflation?" Board of
 Governors of the Federal Reserve System, International Finance Discussion
 Paper No. 791, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>17</BIBL>	<BIBTEXT>Kim, K. 1998. "U.S. Inflation and the
 Dollar Exchange Rate: a Vector Error Correction Model." Applied Economics
 30, no. 5 (May): 613-617.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>18</BIBL>	<BIBTEXT>Kuroda, H., and M. Kawai. 2002. "Time for
 a Switch to Global Reflation." Financial Times (December 3) (available at
 http://news.ft.com/home/europe).</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>19</BIBL>	<BIBTEXT>Kynge, J., and D. Roberts. 2003.
 "Cut-Throat Competitors." Financial Times (February 4) (available at
 http://news.ft.com/home/europe).</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>20</BIBL>	<BIBTEXT>National Bureau of Statistics. 2004. China
 Statistical Yearbook. Beijing.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>21</BIBL>	<BIBTEXT>Roach, S. 2002. "The China Factor." Morgan
 Stanley Global Economic Forum, October 14 (available at
 www.morganstanley.com/GEFdata/digests/20021014-mon.html#anchor5/).</BIBTEX
 T>	 </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:2:p:93-103




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 1 
Volume: 44 
Year: 2008 
Month: 1 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=U1662U28K554G585 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:44:y:2008:i:1:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: CEM AKYUREK 
Author-X-Name-First: CEM 
Author-X-Name-Last: AKYUREK 
Title:         The Turkish Crisis of 2001: A Classic?       
Abstract:
       In February 2001, Turkey became the latest emerging market to
 experience a devastating crisis, following the collapse of its soft
 exchange rate peg. The crisis severely damaged the country's banking
 system and led to an unprecedented contraction in economic activity. The
 boom that preceded it seemed to be relatively short lived, as the initial
 rush of capital outflow occurred just eleven months after the start of the
 program, and the fatal exit just three months later. This paper discusses
 the factors that seemed to play an important role in the collapse of
 Turkey's International Monetary Fund (IMF)-supported exchange rate-based
 stabilization plan just thirteen months after its commencement. It is
 often difficult to attribute such crises entirely to a single factor, and
 not always possible to arrive at a strong verdict by analyzing economic
 developments in light of, or in the manner formally suggested by, the
 alternative models commonly used to analyze currency crises in the
 literature. In the Turkish case, enumerating the many factors that may
 have contributed to the collapse is important and very useful--yet this
 should not obscure the critical role played by the failure to establish or
 achieve tangible progress toward a sustainable fiscal regime. Not
 recognizing this fundamental weakness could easily lead observers to
 emphasize design flaws as the main culprit or to argue that the collapse
 could have been avoided if several other factors had broken more in
 Turkey's favor.    
Journal: Emerging Markets Finance and Trade 
Pages: 5-32 
Issue: 1 
Volume: 42 
Year: 2006 
Month: 2 
Keywords: currency crises, exchange rate&#150, based stabilization, fiscal policy, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D87H1YUKX8AR2DTF 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Agenor, P.; J. Bahndari;
 and R. Flood. 1992. "Speculative Attacks and Models of Balance of Payments
 Crises." IMF Staff Papers 39, no. 2: 357-394.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Akyurek, Cem. 1999.
 "Post-Liberalization Inflation in Turkey: An Empirical Inves-tigation."
 Yapi Kredi Economic Review 10, no. 2: 31-53.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>Alper, Emre. 2001. "The
 Turkish Liquidity Crisis of 2001: What Went Wrong?" Russian and East
 European Finance and Trade 37, no. 6 (November-Decem-ber):
 58-80.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT>Burnside, C.; M. Eichenbaum; and S. Rebelo. 1999. "Prospective
 Deficits and the Asian Currency Crisis." National Bureau of Economic
 Research Working Paper No. 6758, Cambridge, MA.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT>Burton, D., and S. Fischer.
 1998. "Ending Moderate Inflations." In Moderate Inflation: The Experience
 of Transition Economies, ed. C. Cottarelli and G. Szapary, pp. 15- 97.
 Washington, DC: International Monetary Fund and National Bank of
 Hungary.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT>Cottarelli, C., and G. Szapary. 1998. "Introduction and Summary."
 In Moderate Inflation: The Experience of Transition Economies, ed. C.
 Cottarelli and G. Szapary, pp. 1-15. Washington, DC: International
 Monetary Fund and National Bank of Hungary.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT>Eichengreen, B. Rose, and C.
 Wyplosz. 1996. "Speculative Attacks on Pegged Exchange Rates: An Empirical
 Exploration with Special Reference to the European Monetary System."
 National Bureau of Economic Research Working Paper No. 4898, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>	  
 <BIBTEXT>Garber, P. 1996. "Discussion." NBER Macroeconomics Annual 11:
 403-406.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT>Goldfajn, I., and T. Baig. 1998. "Monetary Policy in the
 Aftermath of Currency Crises: The Case of Asia." International Monetary
 Fund Working Paper No. 170, Washington, DC.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT>Kibritcioglu, A. 2001.
 "Causes of Inflation in Turkey: A Literature Survey with Special Reference
 to Theories of Inflation." University of Illinois at Urbana- Champaign,
 Office of Research Working Paper No. 01-0115.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT>Kopits, G. 2000. "How Can
 Fiscal Policy Help Avert Currency Crises?" International Monetary Fund
 Working Paper No. 185, Washington, DC.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>12</BIBL>	    <BIBTEXT>Krugman, P. 1979. "A Model of
 Balance-of-Payments Crises." Journal of Money, Credit, and Banking 11
 (August): 311-325.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>
	<BIBTEXT>Ozatay, F., and G. Sak. 2002. "The 2000-2001 Financial
 Crisis in Turkey." Discussion paper, Ankara (available at
 www.tcmb.gov.tr).</BIBTEXT>	  </REF>      <REF>	   <BIBL>14</BIBL> 
       <BIBTEXT>Rodrik, D. 1990. "Premature Liberalization, Incomplete
 Stabilization: The Ozal Decade in Turkey." Centre for Economic Policy
 Research Discussion Paper No. 402, London.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT>Suranyi, G., and J. Vincze.
 1998. "Inflation in Hungary, 1990-97." In Moderate Inflation: The
 Experience of Transition Economies, ed. C. Cottarelli and G. Szapary, pp.
 150-171. Washington, DC: International Monetary Fund and National Bank of
 Hungary.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT>Tanzi, V. 1990. "Fiscal Issues in Adjustment Programs in
 Developing Countries." Development Studies Working Paper No. 26, Oxford
 University.</BIBTEXT>	    </REF>	<REF>	     <BIBL>17</BIBL>	   
 <BIBTEXT>Ter-Minassian, T., and G. Schwartz. 1997. "The Role of Fiscal
 Policy in Sustainable Stabilization: Evidence from Latin America."
 International Monetary Fund Working Paper No. 94, Washington,
 DC.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:1:p:5-32




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M  KUTAN 
Author-X-Name-First: ALI M  
Author-X-Name-Last: KUTAN 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 2 
Volume: 42 
Year: 2006 
Month: 4 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=5EM03KBXGLYWA1X9 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:42:y:2006:i:2:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: James L. Butkiewicz 
Author-X-Name-First: James L. 
Author-X-Name-Last: Butkiewicz 
Author-Name: Halit  Yanikkaya 
Author-X-Name-First: Halit  
Author-X-Name-Last: Yanikkaya 
Title: Capital Account Openness, International Trade, and Economic Growth: A Cross-Country Empirical Investigation 
Abstract:
 New empirical estimates of the effects of capital restrictions on growth
 support capital account liberalization, especially for developed
 countries. Capital restrictions reduce the benefits of foreign direct
 investment (FDI) on growth in developing countries. Estimation results for
 long-term capital flows demonstrate that countries with higher flows grow
 faster, challenging the belief that countries must attain a threshold
 level of development or human capital to benefit from capital inflows.
 Moreover, findings show that trade with developed countries and FDI
 inflows are substitutes in developing countries. Overall, the results
 support capital account liberalization in developed and developing
 countries.
Journal: Emerging Markets Finance and Trade 
Pages: 15-38 
Issue: 2 
Volume: 44 
Year: 2008 
Month: 3 
Keywords: capital controls, capital flows, economic growth, financial openness, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=552K8L2541805727 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adelman, I. 2000.
 "Editor's Introduction." >i>World Development>/i> 28, no. 6:
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 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:2:p:15-38




Template-Type: ReDIF-Article 1.0
Author-Name: JUHANI LAURILA 
Author-X-Name-First: JUHANI 
Author-X-Name-Last: LAURILA 
Title:         Transit Transport Between the European Union and Russia in Light of Russian Geopolitics and Economics       
Abstract:
       The results of this study confirm that Russian geopolitical and
 economic dependencies are strongly reflected in the investment decisions
 that Russia takes to develop its transport infrastructures. Instead of
 using and expanding the existing facilities available in the new
 independent states, in the Baltics, Belarus, and Ukraine in particular,
 Russia prefers costly investments in construction of new direct outlets
 for its oil transports through the Baltic Pipeline System and for its gas
 transports from the Barents Sea to Central Europe. The study also contains
 new statistics about transit transport flows as well as their distribution
 by various transit transport corridors.    
Journal: Emerging Markets Finance and Trade 
Pages: 27-57 
Issue: 5 
Volume: 39 
Year: 2003 
Month: 9 
Keywords: energy, geopolitics, Russian transit transport, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=YBTXW4N6BDDFUKE0 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Aleksandrov, Y., and D.
 Orlov. 2001. "Truboprovodnaia ekspansiia Rossii. Radikalnoe usilenie roli
 nashei strany na prostranstve SNG natchinaetsa so stroitelstva
 magistralnyh nefteprovodov" [Russian Expansion by Pipeline: Radically
 Strengthened Role of Our Country in the CIS Starts by Constructing Oil
 Pipelines]. Nezavisimaia gazeta 68, no. 2378 (April 17): 14.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>2</BIBL>	 <BIBTEXT>American
 University. 2000. "Latvia and Russia Oil Dispute. Case No. 505." Mandala
 Projects, Trade Environment Database (TED), Washington, DC, September 21
 (available at
 www.american.edu/projects/mandala/TED/latviaoil.htm).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>Andrew, J. 2001.
 "UES-Investment Plan Questioned: Power Consultants Downgrade Figure for
 Rebuilding Russian Generator." Financial Times 6 (April).</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT>Andrianov, V.D.
 2001. "Mirovaia energetika i energetika Rossii" [World and Russian
 Energy]. Ekonomist 2 (February): 33-41.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>5</BIBL>	    <BIBTEXT>Arkonsuo, H. 1998. "Baltian maiden ja
 Venäjän keskinäiset taloudelliset riippuvuudet" [The Economic
 Interdependencies Between the Baltic Countries and Russia].
 Arewcon-development Oy, Helsinki.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>6</BIBL>        <BIBTEXT>------. 1999. "The Economic
 Interdependencies Between the Baltic States and Russia." Ministry of Trade
 and Industry, Helsinki.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT>------. 2000a. "Transitokuljetukset"
 [Transit Transports]. In Transit Transports and Arbitrage Trade with
 Russia--Finland and the Baltic Region (with English summary), ed. M.
 Widgrén, V. Kaitila, and H. Arkonsuo, pp. 43-100. Helsinki: Research
 Institute of the Finnish Economy (ETLA).</BIBTEXT>	 </REF>      <REF> 
       <BIBL>8</BIBL>	     <BIBTEXT>------. 2000b. "Transport and the
 Northern Dimension, Discussion." In Economics of the Northern Dimension,
 ed. K.E.O. Alho, pp. 137-142. Helsinki: Taloustieto Oy.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT>Baltic News
 Service. 2000. "Russia: First Stage of Baltic Pipeline Absorbs 3.6 b
 ruble." Baltic Business Daily (August 4) (available at
 www.bns.ee).</BIBTEXT>      </REF>	 <REF>	      <BIBL>10</BIBL>	   
  <BIBTEXT>Baxendale, J.; S. Dewar; and D. Gowan, ed. 2000. "The EU &
 Kaliningrad. Kaliningrad and the Impact of EU Enlargement." Federal Trust
 for Education and Research, London.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>11</BIBL>	 <BIBTEXT>Bronshtein, M. 2001. "Russian Oil
 Industry's Reconstruction Plans and Oil Transit Strategy." Economic Trends
 2: 79-83.</BIBTEXT>	  </REF>      <REF>	   <BIBL>12</BIBL>	 
 <BIBTEXT>Chernomyrdin, V. 1993. "Order 28 April 1993 N 728-r in Moscow
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 Signed by V. Chernomyrdin.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>13</BIBL>	<BIBTEXT>Davydova, M. 2001. "Neft potechet s
 molotka" [Oil by Hammer]. Kommersant 91 (May 29): 8.</BIBTEXT>      </REF>
      <REF>	   <BIBL>14</BIBL>	  <BIBTEXT>Dudarev, G. 2000.
 "Transport and the Northern Dimension." In Economics of the Northern
 Dimension, ed. K.E.O. Alho, pp. 153-158. Helsinki: Taloustieto
 Oy.</BIBTEXT>	    </REF>	<REF>	     <BIBL>15</BIBL>	   
 <BIBTEXT>Dudarev, G.; K. Sevenard; P. Prigara; P. Filippov; and H.
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 (available at www.eia.doe.gov/emeu/cabs/russpip.html).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT>------. 2000b.
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 Financial Times (February 8): 3.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:5:p:27-57




Template-Type: ReDIF-Article 1.0
Author-Name: MEHMET BALCILAR 
Author-X-Name-First: MEHMET 
Author-X-Name-Last: BALCILAR 
Title:         Persistence in Inflation: Does Aggregation Cause Long Memory?       
Abstract:
       This paper examines persistence in Turkish inflation rates using
 data from consumer and wholesale price indices. The inflationary process
 in Turkey is believed to be highly inertial, which should lead to strongly
 persistent inflation series. Persistence of seventy-five inflation series
 at various aggregation levels is examined by estimating models that allow
 long memory through fractional differencing. The order of fractional
 differencing is estimated using several semiparametric and maximum
 likelihood methods. Persistence of each series is evaluated using the time
 required for a given percentage of the effect of a shock to dissipate. We
 find that disaggregate inflation series show no significant persistence.
 We found that only twelve out of seventy-five series require more than six
 months for 99 percent of the effect of a shock to dissipate. Thus, the
 paper finds evidence of spurious long memory due to aggregation.    
Journal: Emerging Markets Finance and Trade 
Pages: 25-56 
Issue: 5 
Volume: 40 
Year: 2004 
Month: 9 
Keywords: aggregation, fractional differencing, inflation, inertia, long memory models, persistence, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=61TJJGNCDLKTVDRH 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Backus, D.K., and S.E.
 Zin. 1993. "Long Memory Inflation Uncertainty: Evidence from the Term
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Handle: RePEc:mes:emfitr:v:40:y:2004:i:5:p:25-56




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Fen  Chen 
Author-X-Name-First: Yu-Fen  
Author-X-Name-Last: Chen 
Author-Name: Chih-Yung  Wang 
Author-X-Name-First: Chih-Yung  
Author-X-Name-Last: Wang 
Author-Name: Fu-Lai  Lin 
Author-X-Name-First: Fu-Lai  
Author-X-Name-Last: Lin 
Title: Do Qualified Foreign Institutional Investors Herd in Taiwan's Securities Market? 
Abstract:
 This paper investigates whether and why qualified foreign institutional
 investors (QFIIs) in Taiwan herd when picking stocks. The evidence shows
 that QFIIs herd in Taiwan's securities market: They follow each other into
 and out of the same securities. We identify how the herding behavior forms
 and how it changes over time. The results suggest that there is an
 industry effect when QFIIs pick up stocks. They herd on securities
 classified in specific industries and also prefer stocks with high past
 returns as well as large firm size, supporting the argument that QFIIs are
 momentum traders. Characteristic herding and investigative herding explain
 QFIIs' trading behavior in Taiwan.
Journal: Emerging Markets Finance and Trade 
Pages: 62-74 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: firm size, herding, momentum trading, qualified foreign institutional investors (QFIIs), 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A3XR5070Q6123K10 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bennett, J.; R. W.
 Sias; and L. Starks. 2003. "Greener Pastures and the Impact of Dynamic
 Institutional Preferences." >i>Review of Financial Studies>/i> 16, no. 4
 (Winter): 1203-1238.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>2</BIBL>        <BIBTEXT> Bikhchandani, S.; D. Hirshleifer; and I.
 Welch. 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change as
 Informational Cascades." >i>Journal of Political Economy>/i> 100, no. 5
 (October): 992-1026.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>3</BIBL>        <BIBTEXT> Chang, E. C.; J. W. Cheng; and A. Khorana.
 2000. "An Examination of Herd Behavior in Equity Markets: An International
 Perspective." >i>Journal of Banking and Finance>/i> 24, no. 10 (October):
 1651-1679.</BIBTEXT>	   </REF>      <REF>	    <BIBL>4</BIBL>	 
 <BIBTEXT> Christie, W. G., and R. D. Huang. 1995. "Following the Pied
 Piper: Do Individual Returns Herd Around the Market?" >i>Financial
 Analysts Journal>/i> 51, no. 4 (JulyâAugust): 31-37.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Demirer, R., and
 A. M. Kutan. 2006. "Does Herding Behavior Exist in Chinese Stock Markets?"
 >i>Journal of International Financial Markets, Institutions, and Money>/i>
 16, no. 2 (April): 123-142.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>6</BIBL>        <BIBTEXT> Froot, K. A.; D. S. Scharfstein; and J. C.
 Stein. 1992. "Herd on the Street: Informational Inefficiencies in a Market
 with Short-Term Speculation." >i>Journal of Finance>/i> 47, no. 4
 (September): 1461-1484.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT> Lakonishok, J.; A. Shleifer; and R. W.
 Vishny. 1992. "The Impact of Institutional Trading on Stock Prices."
 >i>Journal of Financial Economics>/i> 32, no. 1 (August): 23-43.</BIBTEXT>
      </REF>	  <REF>        <BIBL>8</BIBL>	     <BIBTEXT> Nofsinger,
 J. R., and R. W. Sias. 1999. "Herding and Feedback Trading by
 Institutional and Individual Investors." >i>Journal of Finance>/i> 54, no.
 6 (December): 2263-2295.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>9</BIBL>        <BIBTEXT> Sias, R. W. 2004. "Institutional Herding."
 >i>Review of Financial Studies>/i> 17, no. 1 (Spring): 165-206.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Trueman, B.
 1994. "Analyst Forecasts and Herding Behavior." >i>Review of Financial
 Studies>/i> 7, no. 2 (Summer): 97-124.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>11</BIBL>	    <BIBTEXT> Wermers, R. 1999. "Mutual Fund
 Herding and the Impact on Stock Prices." >i>Journal of Finance>/i> 54, no.
 2 (April): 581-622.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:62-74




Template-Type: ReDIF-Article 1.0
Author-Name: VIVIANA FERNANDEZ 
Author-X-Name-First: VIVIANA 
Author-X-Name-Last: FERNANDEZ 
Title:         Monetary Policy and the Banking Sector in Chile       
Abstract:
       This paper considers the existence of a bank lending channel in
 Chile. Toward that, we collect a data sample of nineteen banks that
 operated in Chile over January 1999- December 2002. In that period, banks
 primarily offered loans to firms in the manufacturing and the
 financial-services sectors (representing 13 and 26 percent of total loans,
 respectively), and to households through consumption and mortgage loans
 (at 9 and 10 percent of total loans, respectively). Our estimation results
 support the existence of a bank lending channel. We find that banks
 respond asymmetrically to monetary shocks depending upon their own
 characteristics, and that monetary shocks alter loan portfolio decisions
 in the aggregate.    
Journal: Emerging Markets Finance and Trade 
Pages: 5-36 
Issue: 3 
Volume: 41 
Year: 2005 
Month: 5 
Keywords: bank lending channel, dynamic panel, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B68AF24WAHBVR3EN 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Ando, A., and F.
 Modigliani. 1963. "The Life Cycle Hypothesis of Saving: Aggregate
 Implications and Tests." American Economic Review 53, no. 1:
 55-84.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT>Beck, T.; A. Demirguc-Kunt; and R. Levine. 1999. "A New Database
 on Financial Development and Structure." World Bank, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>	  
 <BIBTEXT>Bernanke, B., and A. Blinder. 1988. "Credit, Money, and Aggregate
 Demand." American Economic Review 78, no. 2: 435-439.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT>------. 1992. "The
 Fed Funds Rate and the Channels of Monetary Policy." American Economic
 Review 82, no. 4: 901-921.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>5</BIBL>        <BIBTEXT>Bernanke, B., and M. Gertler. 1995. "Inside
 the Black Box: The Credit Channel of Monetary Policy Transmission."
 Journal of Economic Perspectives 9, no. 4: 24-48.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>6</BIBL>	      <BIBTEXT>Bernanke, B.; M. Gertler;
 and S. Gilchrist. 1996. "The Financial Accelerator and the Flight to
 Quality." Review of Economics and Statistics 78, no. 1: 1-15.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>7</BIBL>	  <BIBTEXT>Caballero, R.
 2002. "Coping with Chile's External Vulnerability: A Financial Problem."
 In Economic Growth: Sources, Trends, and Cycles, ed. N. Loayza and R.
 Soto, pp. 377- 416. Santiago: Central Bank of Chile.</BIBTEXT>      </REF>
      <REF>	   <BIBL>8</BIBL>	 <BIBTEXT>Fuentes, R., and C.
 Guzman. 2002. "What Determines Profitability of the Banking Sector?
 Evidence for Chile in the 1990s." Central Bank of Chile,
 Santiago.</BIBTEXT>	  </REF>      <REF>	   <BIBL>9</BIBL>	
 <BIBTEXT>Hernando, I., and J. Martinez Pages. 2001. "Is There a Bank
 Lending Channel of Monetary Policy in Spain?" Bank of Spain Working Paper
 no. 117, Madrid.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>  
      <BIBTEXT>Hsiao, C. 2003. Analysis of Panel Data, 2nd ed. Cambridge:
 Cambridge University Press.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>11</BIBL>	<BIBTEXT>Kamin, S. 2000. "The Transmission Channels
 of Monetary Policy in Emerging Market Economies." World Bank, Washington,
 DC (available at www.worldbank.org/wbi/
 macroeconomics/management/RecentCourses/activities/us/pdf/).</BIBTEXT>    
  </REF>      <REF>	   <BIBL>12</BIBL>	  <BIBTEXT>Kashyap, A., and
 J. Stein. 2000. "What Do a Million Observations on Banks Say About the
 Transmission of Monetary Policy?" American Economic Review 90, no. 3:
 408-428.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT>Kashyap, A.; J. Stein; and D. Wilcox. 1993. "Monetary Policy and
 Credit Constraints: Evidence from the Composition of External Finance."
 American Economic Review 83, no. 1: 79-98.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT>Kozicki, S. 1997. "Predicting
 Real Growth and Inflation with the Yield Spread." Federal Reserve Bank of
 Kansas City Economic Review 82, no. 4 (fourth quarter): 40-57.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>15</BIBL>	    <BIBTEXT>Kuttner, K.,
 and P. Mosser. 2002. "The Monetary Transmission Mechanism: Some Answers
 and Further Questions." Federal Reserve Bank of New York Economic Policy
 Review 8, no. 1 (May): 15-26.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>16</BIBL>	<BIBTEXT>Levine, R. 2000. "Bank Concentration:
 Chile and International Comparisons." Central Bank of Chile Working Paper
 no. 62, Santiago.</BIBTEXT>	  </REF>      <REF>	   <BIBL>17</BIBL> 
       <BIBTEXT>Lown, C., and D. Morgan. 2002. "Credit Effects in the
 Monetary Mechanism." Federal Reserve Bank of New York Economic Policy
 Review 8, no. 1 (May): 217-235.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>18</BIBL>	<BIBTEXT>Massad, C. 1998. "Monetary Policy in
 Chile." Economia Chilena 1, no. 1: 7-27.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>19</BIBL>	      <BIBTEXT>Ng, C.K; J. Smith; and R. Smith.
 1999. "Evidence on the Determinants of Credit Terms Used in Interfirm
 Trade." Journal of Finance 54, no. 3: 1109-1129.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>20</BIBL>	      <BIBTEXT>Nilsen, J. 2002. "Trade
 Credit and the Bank Lending Channel." Journal of Money, Credit, and
 Banking 34, no. 1: 226-253.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>21</BIBL>	<BIBTEXT>Pesaran, H., and Y. Shin. 1998.
 "Generalized Impulse Response Analysis in Linear Multivariate Models."
 Economics Letters 58, no. 1: 17-29.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>22</BIBL>	 <BIBTEXT>Petersen, M., and R. Rajan. 1995. "The
 Effect of Credit Market Competition on Firm- Creditor Relationship."
 Quarterly Journal of Economics 110, no. 2: 407-443.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>23</BIBL>	 <BIBTEXT>Romer, C., and D. Romer.
 1990. "New Evidence on the Monetary Transmission Mechanism." Brookings
 Papers on Economic Activity, no. 1: 149-198.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>24</BIBL>	     <BIBTEXT>Worms, A. 2003. "Interbank
 Relationships and the Credit Channel in Germany." Empirica 30, no. 2:
 179-203.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:3:p:5-36




Template-Type: ReDIF-Article 1.0
Author-Name: Julian  Berengaut 
Author-X-Name-First: Julian  
Author-X-Name-Last: Berengaut 
Author-Name: Katrin  Elborgh-Woytek 
Author-X-Name-First: Katrin  
Author-X-Name-Last: Elborgh-Woytek 
Title: Who Is Still Haunted by the Specter of Communism?: Explaining Relative Output Contractions Under Transition 
Abstract:
 This paper analyzes the initial output decline in transition economies by
 estimating a cross-sectional model stressing two major factors: conflicts
 and the legacies of the Soviet period. We link the Soviet legacies in
 place at the outset of transition to the subsequent path for the
 development of market-related institutions. Institutional development, as
 proxied by measures of corruption, is used as an intermediate variable. An
 instrumental variable approach is followed to derive estimates that are
 not biased by the possible endogeneity of corruption with respect to
 output developments. Assuming that the extent of Soviet legacies was
 positively correlated with the length of communist rule allows us to use
 years under the Soviet regime as an instrument.
Journal: Emerging Markets Finance and Trade 
Pages: 61-80 
Issue: 5 
Volume: 42 
Year: 2006 
Month: 10 
Keywords: CIS, Commonwealth of Independent States, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K5R371J80841422L 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Acemoglu, D.; S.
 Johnson; and J.A. Robinson. 2001. "The Colonial Origins of Comparative
 Development: An Empirical Investigation." >i>American Economic Review>/i>
 91, no. 5 (December): 1369-1401.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>2</BIBL>        <BIBTEXT> Ãslund, A. 2001. >i>Building Capitalism:
 TheTransformation of the Former Soviet Bloc.>/i> New York: Cambridge
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>3</BIBL>  
      <BIBTEXT> Berengaut, J.; J.E.J. de Vrijer; K. Elborgh-Woytek; M.
 Lewis; and B. Lissovolik. 2002. "An Interim Assessment of Ukrainian Output
 Developments, 2000-01." Working Paper 02/97, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>    
    <BIBTEXT> Berengaut, J.; A. LÃ³pez-Claros; F. Le Gall; J.A. Schiff; D.
 Jones; R.E. Stern; K. Westin; L.E. Psalida; and P. Garibaldi. 1998. "The
 Baltic Countries: From Economic Stabilization to EU Accession." Occasional
 Paper No. 173, International Monetary Fund, Washington, DC.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Berg, A.; E.
 Borensztein; R. Sahay; and J. Zettelmeyer. 1999. "The Evolution of Output
 in Transition Economies: Explaining the Differences." Working Paper 99/73,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Bradshaw, M. 1999. >i>The
 Russian Far East: Prospects for the New Millennium.>/i> London: Royal
 Institute for International Affairs.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>7</BIBL>	 <BIBTEXT> Carley, P.M. 1995. "The Legacy of the
 Soviet Political System and the Prospects for Developing Civil Society in
 Asia." In >i>Political Culture and Civil Society in Russia and the New
 States of Eurasia>/i>, ed. Vladimir Tismaneanu, pp. 292-317. New York:
 Cambridge University Press.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>8</BIBL>        <BIBTEXT> Courtois, S.; N. Werth; J.-L. PannÃ©; A.
 Paczkowski; K. Bartosek; and J.-L. Margolin. 1999. >i>The Black Book of
 Communism: Crimes, Terror, Repression.>/i> Cambridge: Harvard University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	     
 <BIBTEXT> De Broeck, M., and V.R. Koen. 2000. "The Great Contractions in
 Russia, the Baltics, and the Other Countries of the Former Soviet
 UnionâA View from the Supply Side." Working Paper 00/32, International
 Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> De Melo, M. 2001. "Circumstances and
 Choice: the Role of Initial Conditions and Policies in Transition
 Economies." >i>World Bank Economic Review>/i> 15, no. 1: 1-31.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>11</BIBL>	    <BIBTEXT> Djankov, S.;
 E.L. Glaeser; R. La Porta; F. Lopez-de-Silane; and A. Shleifer. 2003. "The
 New Comparative Economics." Working Paper 9608, National Bureau of
 Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>12</BIBL>	<BIBTEXT> Elborgh-Woytek, K. 2003. "Of Openness and
 Distance: Trade Developments in the Commonwealth of Independent States,
 1993-2002." Working Paper 03/207, International Monetary Fund, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>13</BIBL>	   
 <BIBTEXT> European Bank for Reconstruction and Development (EBRD). Various
 dates. >i>Transition Report.>/i> London.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>14</BIBL>	      <BIBTEXT> Falcetti, E.; M. Reiser; and P.
 Sanfey. 2002. "Defying the Odds: Initial Conditions, Reforms, and Growth
 in the First Decade of Transition." >i>Journal of Comparative
 Economics>/i> 30, no. 2 (June): 229-250.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>15</BIBL>	      <BIBTEXT> Feshbach, M. 1995. >i>Ecological
 Disaster: Cleaning Up the Hidden Legacy of the Soviet Regime.>/i> New
 York: Twentieth Century Fund.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>16</BIBL>	<BIBTEXT> Fischer, S., and R. Sahay. 2000. "The
 Transition Economies After Ten Years." Working Paper 00/30, International
 Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>17</BIBL>	<BIBTEXT> Fischer, S.; R. Sahay; and C.A. Vegh.
 1996. "Stabilization and Growth in Transition Economies: The Early
 Experience." >i>Journal of Economic Perspectives>/i> 10 (Spring):
 45-66.</BIBTEXT>      </REF>	   <REF>	<BIBL>18</BIBL>       
 <BIBTEXT> Havrylyshyn, O., and R. van Rooden. 2003. "Institutions Matter
 in Transition But So Do Policies." >i>Comparative Economic Studies>/i> 45,
 no. 1 (March): 2-24.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>19</BIBL>	<BIBTEXT> Havrylyshyn, O.; T.A. Wolf; J. Berengaut;
 M. de Castello Branco; R. van Rooden; and V. Mercer-Blackman. 2000.
 "Growth Experience in Transition Countries, 1990-98." Occasional Paper No.
 184, International Monetary Fund, Washington, DC.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>20</BIBL>        <BIBTEXT> Henley, J.S., and G.B.
 Assaf. 1996. "The Challenge for Industrial Development in the Central
 Asian Republics of the Former Soviet Union." >i>MOCT-MOST>/i> 6, no. 2:
 111-137.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Hill, F., and C.G. Gaddy. 2003. >i>The Siberian Curse: How
 Communist Planners Left Russia Out in the Cold.>/i> Washington, DC:
 Brookings Institution.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>22</BIBL>	<BIBTEXT> International Monetary Fund (IMF). 2003.
 >i>World Economic Outlook.>/i> Washington, DC.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>23</BIBL>	     <BIBTEXT> Kangas, R.D. 1995. "State
 Building and Civil Society in Central Asia." In >i>Political Culture and
 Civil Society in Russia and the New States of Eurasia>/i>, ed. Tismaneanu,
 pp. 271-291.</BIBTEXT>      </REF>	 <REF>	      <BIBL>24</BIBL>	   
  <BIBTEXT> Kaufmann, D.; A. Kraay; and M. Mastruzzi. 2003. >i>Governance
 Matters III: Governance Indicators for 1996-2002.>/i> Washington, DC:
 World Bank.</BIBTEXT>	    </REF>	<REF>	     <BIBL>25</BIBL>	   
 <BIBTEXT> Kubicek, P. 2002. "Civil Society, Trade Unions and Post-Soviet
 Democratization: Evidence from Russia and Ukraine." >i>Europe-Asia
 Studies>/i> 54, no. 4: 603-624.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>26</BIBL>	<BIBTEXT> Lardy, N.R. 1998. >i>China's Unfinished
 Economic Revolution.>/i> Washington, DC: Brookings Institution
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>27</BIBL>       
 <BIBTEXT> Lin, J.Y.; F. Cai; and Z. Li. 1996. >i>The China Miracle:
 Development Strategy and Economic Reform.>/i> Hong Kong: Hong Kong Centre
 for Economic Research.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>28</BIBL>	<BIBTEXT> Makushin, A. 1993. "From Conversion to
 Deindustrialisation." >i>Problems of Economic Transition>/i> 35, no. 9
 (January): 34-45.</BIBTEXT>	  </REF>      <REF>	   <BIBL>29</BIBL> 
       <BIBTEXT> Mnatsakanian, R.A. 1992. >i>Environmental Legacy of the
 Former Soviet Republics.>/i> Edinburgh: Centre for Human
 Ecology.</BIBTEXT>	 </REF>      <REF>	  <BIBL>30</BIBL>	
 <BIBTEXT> Peterson, D.J. 1993. >i>Troubled Lands: The Legacy of Soviet
 Environmental Destruction.>/i> Boulder Press: Westview CO.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>31</BIBL>	 <BIBTEXT> Prasad, E., ed.
 2004. "China's Growth and Integration into the World Economy: Prospects
 and Challenges." Occasional Paper No. 232, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>32</BIBL>   
     <BIBTEXT> Radulescu, R., and D. Barlow. 2002. "Reform Reversals and
 Output Growth in Transition." >i>Economics of Transition>/i> 11, no. 4:
 649-667.</BIBTEXT>	 </REF>      <REF>	  <BIBL>33</BIBL>	
 <BIBTEXT> Rapaczynski, A. 1996. "The Roles of the State and the Market in
 Establishing Property Rights." >i>Journal of Economic Perspectives
 (U.S.)>/i> 10 (Spring): 87-103.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>34</BIBL>	<BIBTEXT> Rutkowski, M. 1996. "Labour Market
 Policies in Transition Economies." >i>MOCT-MOST>/i> 6: 19-38.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>35</BIBL>	   <BIBTEXT> Sen, Amartya.
 2000. >i>Development as Freedom.>/i> New York: Random House.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>36</BIBL>	  <BIBTEXT> Tanzi, V. 1996.
 "Fiscal Developments: An Overview." >i>MOCT-MOST: Economic Policy in
 Transitional Economies (Netherlands)>/i> 6, no. 3: 1-5.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>37</BIBL>	 <BIBTEXT> Wallich, C.I.
 1996. "Intergovernmental Finance in Transition Economies." >i>MOCT-MOST:
 Economic Policy in Transitional Economies (Netherlands)>/i> 6, no. 3:
 63-86.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:42:y:2006:i:5:p:61-80




Template-Type: ReDIF-Article 1.0
Author-Name: Saadet  Kasman 
Author-X-Name-First: Saadet  
Author-X-Name-Last: Kasman 
Author-Name: Adnan  Kasman 
Author-X-Name-First: Adnan  
Author-X-Name-Last: Kasman 
Author-Name: Evrim  Turgutlu 
Author-X-Name-First: Evrim  
Author-X-Name-Last: Turgutlu 
Title: Fisher Hypothesis Revisited: A Fractional Cointegration Analysis 
Abstract:
 This paper investigates the validity of the Fisher hypothesis using data
 from thirtythree developed and developing countries. Conventional
 cointegration tests do not provide strong evidence for a relation between
 nominal interest rates and inflation. Therefore, we use fractional
 cointegration analysis to test the long-run relationship between the two
 variables. The results indicate that a long-run relation between nominal
 interest rates and inflation does not appear for most countries in the
 sample when the conventional cointegration test is employed. However,
 fractional cointegration between the two variables is found for a large
 majority of countries, implying the validity of the Fisher hypothesis. The
 results also indicate that the equilibrium errors display long memory.
Journal: Emerging Markets Finance and Trade 
Pages: 59-76 
Issue: 6 
Volume: 42 
Year: 2006 
Month: 12 
Keywords: Fisher hypothesis, fractional cointegration, interest rates, long memory, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=54J212P2HQ74026G 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agiakloglou, C.; P.
 Newbold; and M. Wohar. 1993. "Bias in an Estimator of the Fractional
 Difference Parameter." >i>Journal of Time Series Analysis>/i> 14, no. 3:
 233-246.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Berument, H., and M. Jelassi. 2002. "The Fisher Hypothesis: A
 Multi-Country Analysis." >i>Applied Economics>/i> 34, no. 13:
 1645-1655.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL>	 
 <BIBTEXT> Cheung, Y., and K. Lai. 1993. "A Fractional Cointegration
 Analysis of Purchasing Power Parity." >i>Journal of Business and Economic
 Statistics>/i> 11, no. 1: 103-112.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>4</BIBL>        <BIBTEXT> Crowder, W.J., and D.L. Hoffman. 1996.
 "The Long-Run Relationship Between Nominal Interest Rates and Inflation:
 The Fisher Equation Revisited." >i>Journal of Money, Credit and
 Banking>/i> 28, no. 1: 102-118.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>5</BIBL>        <BIBTEXT> Dickey, D.A., and W.A. Fuller. 1979.
 "Distribution of the Estimators for Autoregressive Time Series with a Unit
 Root." >i>Journal of the American Statistical Association>/i> 74, no. 366:
 427-431.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT> Dittmann, J. 2000. "Residual-Based Tests for Fractional
 Cointegration: A Monte Carlo Study." >i>Journal of Time Series
 Analysis>/i> 6, no. 6: 615-647.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT> Engle, R.F., and C.W.J. Granger. 1987.
 "Cointegration and Error Correction: Representation, Estimation and
 Testing." >i>Econometrica>/i> 55, no. 2: 251-276.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>8</BIBL>	      <BIBTEXT> Evans, M., and K. Lewis.
 1995. "Do Expected Shifts in Inflation Affect Estimates of the Long-Run
 Fisher Relation?" >i>Journal of Finance>/i> 50, no. 1: 225-253.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Fama, E.F.
 1975. "Short Term Interest Rates as Predictors of Inflation." >i>American
 Economic Review>/i> 65, no. 3: 269-282.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>10</BIBL>	     <BIBTEXT> Geweke, J., and S. Porter-Hudak.
 1983. "The Estimation and Application of Long Memory Time Series Models."
 >i>Journal of Time Series Analysis>/i> 4, no. 4: 221-238.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT> Ghazali, N.A.,
 and S. Ramlee. 2003. "A Long Memory Test of Long-Run Fisher Effect in the
 G7 Countries." >i>Applied Financial Economics>/i> 13, no. 10:
 763-769.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Granger, C.W.J. 1981. "Some Properties of Time Series Data and
 Their Use in Econometric Model Specification." >i>Journal of
 Econometrics>/i> 16: 121-130.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>13</BIBL>	<BIBTEXT> â-. 1986. "Developments in the Study of
 Cointegrated Economic Variables." >i>Oxford Bulletin of Economics and
 Statistics>/i> 48, no. 3: 213-238.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT> Granger, C.W.J., and R. Joyeux. 1980. "An
 Introduction to Long-Memory Time Series Models and Fractional
 Differencing." >i>Journal of Time Series Analysis>/i> 1, no. 1:
 15-29.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>       
 <BIBTEXT> Hosking, J. 1981. "Fractional Differencing." >i>Biometrika>/i>
 68, no. 1: 165-176.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>16</BIBL>	<BIBTEXT> Hurvich, C.M.; R.S. Deo; and J. Brodsky.
 1998. "The Mean Squared Error of Geweke and Porter-Hudak's Estimator of
 the Memory Parameter of a Long-Memory Time Series." >i>Journal of Time
 Series Analysis>/i> 19, no. 1: 19-46.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>17</BIBL>	   <BIBTEXT> Johansen, S. 1988. "Statistical
 Analysis of Cointegrated Vectors." >i>Journal of Economic Dynamics and
 Control>/i> 12, no. 1: 231-254.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>18</BIBL>	<BIBTEXT> Kwiatkowski, D.; P.C.B. Phillips; P.
 Schmidt; and Y. Shin. 1992. "Testing for the Null Hypothesis of
 Stationarity Against the Alternative of a Unit Root." >i>Journal of
 Econometrics>/i> 54: 159-178.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>19</BIBL>	<BIBTEXT> Lardic, S., and V. Mignon. 2003.
 "Fractional Cointegration Between Nominal Interest Rates and Inflation: A
 Re-examination of the Fisher Relationship in the G7 Countries."
 >i>Economics Bulletin>/i> 3, no. 14: 1-10.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT> Li, W.K., and A.I. McLeod.
 1986. "Fractional Time Series Modeling." >i>Biometrika>/i> 73, no. 1:
 217-221.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Lovell, M.C. 1986. "Tests of the Rational Expectations
 Hypothesis." >i>American Economic Review>/i> 76, no. 1: 110-124.</BIBTEXT>
      </REF>	  <REF>        <BIBL>22</BIBL>	      <BIBTEXT> MacKinnon,
 J.G. 1991. "Critical Values for Cointegration Tests." In >i>Long-Run
 Economic Relationships>/i>, ed. R.F. Engle and C.W.J. Granger, pp.
 267-276. Oxford: Oxford University Press.</BIBTEXT>	  </REF>      <REF>
	<BIBL>23</BIBL>        <BIBTEXT> Mishkin, F. 1992. "Is the Fisher
 Effect for Real? A Re-examination of the Relationship Between Inflation
 and Interest Rates." >i>Journal of Monetary Economics>/i> 30:
 195-215.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT> Phillips, P.P.C., and P. Perron. 1988. "Testing for a Unit Root
 in Time Series Regression." >i>Biometrika>/i> 75, no. 2:
 335-346.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT> Robinson, P.M. 1994. "Efficient Tests of Non-Stationary
 Hypotheses." >i>Journal of American Statistical Association>/i> 89, no.
 428: 1420-1437.</BIBTEXT>	</REF>	    <REF>	 <BIBL>26</BIBL>   
     <BIBTEXT> Schwert, G.W. 1989. "Tests for Unit Roots: A Monte Carlo
 Investigation." >i>Journal of Business and Economic Statistics>/i> 7, no.
 2: 147-159.</BIBTEXT>	    </REF>	<REF>	     <BIBL>27</BIBL>	   
 <BIBTEXT> Soofi, A.S. 1998. "A Fractional Cointegration Test of Purchasing
 Power Parity: The Case of Selected Members of OPEC." >i>Applied Financial
 Economics>/i> 8, no. 6: 559-566.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>28</BIBL>	<BIBTEXT> Sowell, F. 1992. "Modeling Long-Run
 Behavior with the Fractional ARIMA Model." >i>Journal of Monetary
 Economics>/i> 29: 277-302.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:6:p:59-76




Template-Type: ReDIF-Article 1.0
Author-Name: A. ÖZLEM ÖNDER 
Author-X-Name-First: A. ÖZLEM 
Author-X-Name-Last: ÖNDER 
Author-Name: ERTUG&not;RUL DELIKTAS 
Author-X-Name-First: ERTUG&not;RUL 
Author-X-Name-Last: DELIKTAS 
Author-Name: AYKUT LENGER 
Author-X-Name-First: AYKUT 
Author-X-Name-Last: LENGER 
Title:         Efficiency in the Manufacturing Industry of Selected Provinces in Turkey : A Stochastic Frontier Analysis       
Abstract:
       This paper measures technical efficiency and technical and total
 factor productivity changes by estimating a translog stochastic frontier
 production function for the Turkish manufacturing industry in selected
 provinces. This method incorporates technical change and has time-varying
 technical efficiency effects. The stochastic frontier function was
 estimated by using panel data based on eighteen selected provinces of
 Turkey for the 1990-98 period. The performance of the public and private
 sector manufacturing industries in these provinces was also measured
 separately. The probable reasons of different performances of provinces in
 terms of efficiency are discussed. In this context, the effects of average
 firm size, the share of regional production, and the time period were
 considered.	
Journal: Emerging Markets Finance and Trade 
Pages: 98-113 
Issue: 2 
Volume: 39 
Year: 2003 
Month: 3 
Keywords: stochastic production frontiers, technical change, technical efficiency, total factor productivity, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XMAYU4FAM16QXW2C 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Aigner, D.; C.A. Knox
 Lovell; and Peter Schmidt. 1977. "Formulation and Estimation of Stochastic
 Frontier Production Function Models." Journal of Econometrics 6, no. 1:
 21-37.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT>Albert, M.G. 1998. "Regional Technical Efficiency: A Stochastic
 Frontier Approach." Applied Economics Letters 5, no. 11:
 723-726.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Bannister, G.J., and C. Stolp. 1995. "Regional Concentration and
 Efficiency in Mexican Manufacturing." European Journal of Operational
 Research 80, no. 3: 672-690.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>4</BIBL>        <BIBTEXT>Battese, G.E., and T.J. Coelli. 1995. "A
 Model for Technical Inefficiency Effects in a Stochastic Frontier
 Production Function for Panel Data." Empirical Economics 20, no. 2:
 325-332.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT>Coelli, T.J. 1996. "A Guide to Frontier Version 4.1: A Computer
 Program for Stochastic Frontier Production and Cost Function Estimation."
 Working Paper No. 7/96. Centre for Efficiency and Productivity Analysis
 (CEPA), Department of Econometrics, University of New England, Armidale,
 Australia.</BIBTEXT>	   </REF>      <REF>	    <BIBL>6</BIBL>	 
 <BIBTEXT>Coelli, T.J.; D.S.P. Rao; and G.E. Battase. 1998. An Introduction
 to Efficiency and Productivity Analysis. Boston: Kluwer
 Academic.</BIBTEXT>	  </REF>      <REF>	   <BIBL>7</BIBL>	
 <BIBTEXT>Cornwell, C.; P. Schmidt; and R.C. Sickles. 1990. "Production
 Frontiers with Cross-Sectional and Time-Series Variation in Efficiency
 Levels." Journal of Econometrics 46, nos. 1-2: 185-200.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT>Dinc, M., and K.E.
 Haynes. 1999. "Sources of Regional Inefficiency--An Integrated
 Shift-Share, Data Envelopment Analysis and Input-Output Approach." Annals
 of Regional Science 33, no. 4: 469-489.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>9</BIBL>	    <BIBTEXT>Driffield, N., and M. Munday. 2001.
 "Foreign Manufacturing, Regional Agglomeration and Technical Efficiency in
 UK Industries: A Stochastic Production Frontiers Approach." Regional
 Studies 35, no. 5: 391-399.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>10</BIBL>	<BIBTEXT>Greene, W.H. 1993. "The Econometric
 Approach to Efficiency Analysis." In The Measurement of Productive
 Efficiency: Techniques and Applications, ed. H. Fried, C.A. Knox Lovell,
 and S. Schmidt, pp. 68-119. New York: Oxford University Press.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>11</BIBL>	    <BIBTEXT>Jacob, V.;
 S.C. Scharma; and R. Grabowski. 1997. "Capital Stock Estimates for Major
 Sectors and Disaggregated Manufacturing in Selected OECD Countries."
 Applied Economics 29, no. 5: 563-579.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>12</BIBL>	   <BIBTEXT>Kodde, D.A., and F.C. Palm. 1986. "Wald
 Criteria for Jointly Testing Equality and Inequality Restrictions."
 Econometrica 54, no. 5: 1243-1248.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>13</BIBL>	<BIBTEXT>Krueger, A., and B. Tuncer. 1982. "Growth
 of Factor Productivity in Turkish Manufacturing Industries." Journal of
 Development Economics 11, no. 3: 307-325.</BIBTEXT>	  </REF>      <REF>
	<BIBL>14</BIBL>        <BIBTEXT>Kumbhakar, S.C. 1990. "Production
 Frontiers, Panel Data and Time-Varying Technical Efficiency." Journal of
 Econometrics 46, no. 1-2: 201-211.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>15</BIBL>	<BIBTEXT>Kumbhakar, S.C., and A. Bhattacharya.
 1992. "Price Distortion and Resource Use Efficiency in Indian Agriculture:
 A Restricted Profit Function Approach." Review of Economics and Statistics
 74, no. 2: 231-239.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>16</BIBL>	<BIBTEXT>Kumbhakar, S.C.; S. Ghosh; and J.T.
 McGuckin. 1991. "A Generalized Production Frontier Approach for Estimating
 Determinants of Inefficiency in U.S. Dairy Farms." Journal of Business and
 Economics Statistics 9, no. 3: 279-286.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>17</BIBL>	     <BIBTEXT>Maraslioglu, H., and A. Tiktik. 1991.
 "Turkiye Ekonomisinde Sektorel Gelismeler: Uretim, Sermaye, Birikim ve
 Istihdam 1968-1988" [Sectoral Developments in the Turkish Economy:
 Production, Capital Accumulation and Employment 1968-1988]. 2271- IPB:428,
 State Planning Organization, Ankara.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>18</BIBL>	  <BIBTEXT>Marrocu, E.; R. Paci; and R. Pala. 2001.
 "Estimation of Total Factor Productivity for Regions and Sectors in Italy:
 A Panel Cointegration Approach." International Review of Economics and
 Business 48, no. 4: 533-558.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>19</BIBL>	<BIBTEXT>Meeusen, W., and J. van den Broeck. 1977.
 "Efficiency Estimation from Cobb-Douglas Production Functions with
 Composed Error." International Economic Review 18, no. 2:
 435-444.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT>Nishimizu, M., and J.M. Page. 1982. "Total Factor Productivity
 Growth, Technological Progress and Technical Efficiency Change: Dimensions
 of Productivity Change in Yugoslavia, 1965-78." Economic Journal 92, no.
 368, 920-936.</BIBTEXT>      </REF>	  <REF>        <BIBL>21</BIBL>	   
   <BIBTEXT>Pitt, M.M., and L.-F. Lee. 1981. "The Measurement and Sources
 of Technical Inefficiency in the Indonesian Weaving Industry." Journal of
 Development Economics 9, no. 1: 43-64.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>22</BIBL>	    <BIBTEXT>Onder, A.O., and A. Lenger. 2000.
 "Productivity in Turkish Manufacturing Industry: A Comparative Analysis on
 the Basis of Selected Provinces." Working Papers in Economics 00/12.
 Economic Research Center, Middle East Technical University,
 Ankara.</BIBTEXT>	</REF>	    <REF>	 <BIBL>23</BIBL>       
 <BIBTEXT>Rao, D.S.P., and T.J. Coelli. 1998. "A Cross-Country Analysis of
 GDP Growth Catch-Up and Convergence in Productivity and Inequality."
 Working Paper No. 5/98. Centre for Efficiency and Productivity Analysis
 (CEPA), Department of Econometrics, University of New England, Armidale,
 Australia.</BIBTEXT>	   </REF>      <REF>	    <BIBL>24</BIBL>	  
 <BIBTEXT>SIS. Various issues (1971-98). Annual Manufacturing Industries
 Statistics. Ankara: Turkish Republic Prime Ministry.</BIBTEXT>      </REF>
      <REF>	   <BIBL>25</BIBL>	  <BIBTEXT>------. Various issues
 (1990-98). Monthly Bulletin of Wholesale Price Index. Ankara: Turkish
 Republic Prime Ministry.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>26</BIBL>	<BIBTEXT>SPO. Various issues (1971-98). Main
 Economic Indicators. Ankara: Turkish Republic Prime Ministry.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>27</BIBL>	   <BIBTEXT>Taymaz, E., and
 G. Saatci. 1997. "Technical Change and Efficiency in Turkish Manufacturing
 Industries." Journal of Productivity Analysis 8, no. 4: 461-475.</BIBTEXT>
      </REF>	  <REF>        <BIBL>28</BIBL>	      <BIBTEXT>Temel, T.;
 A. Tansel; and P.J. Albersen. 1999. "Convergence and Spatial Patterns in
 Labor Productivity: Nonparametric Estimations for Turkey." Working Papers
 in Economics 99/8. Economic Research Center, Middle East Technical
 University, Ankara.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>29</BIBL>	<BIBTEXT>Uygur, E. 1990. Policy, Productivity,
 Growth and Employment in Turkey, 1960-1989 and Prospects for the 1990s.
 Geneva: ILO, MIES Special Topic Study.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>30</BIBL>	    <BIBTEXT>Zaim, O., and F. Taskin. 1997. "The
 Comparative Performance of Public Enterprise Sector in Turkey: A Malmquist
 Productivity Index Approach." Journal of Comparative Economics 25, no. 2:
 129-157.</BIBTEXT>	 </REF>      <REF>	  <BIBL>31</BIBL>	
 <BIBTEXT>------. 2001. "The Relative Efficiency of the Public
 Manufacturing Industry in Turkey." In State-Owned Enterprises in the
 Middle East and North Africa: Privatization, Performance and Reform, ed.
 M. Celasun, pp. 275-290. London and New York: Routledge.</BIBTEXT>	
 </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:2:p:98-113




Template-Type: ReDIF-Article 1.0
Author-Name: Güzin Erlat 
Author-X-Name-First: Güzin 
Author-X-Name-Last: Erlat 
Title:         Guest Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-5 
Issue: 1 
Volume: 41 
Year: 2005 
Month: 1 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XRQHDR6GK7626TY8 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:41:y:2005:i:1:p:3-5




Template-Type: ReDIF-Article 1.0
Author-Name: ADNAN KASMAN 
Author-X-Name-First: ADNAN 
Author-X-Name-Last: KASMAN 
Title:         Efficiency and Scale Economies in Transition Economies : Evidence from Poland and the Czech Republic       
Abstract:
       This paper examines the cost efficiency and scale economies of banks
 operating in Poland and the Czech Republic during the period from 1995 to
 2000. A common cost frontier with country-specific environmental variables
 is estimated for a panel of fifty-four banks. A stochastic frontier model
 is used to estimate the cost efficiency and economies of scale. The
 results show the importance of environmental variables in the definition
 and specification of the common frontier. It is found that Polish banks
 are, on average, more efficient than Czech banks. The results further
 suggest that foreign banks operating in the Czech banking sector have
 significantly higher efficiency levels than those of domestic banks.
 Finally, there is evidence of significant economies of scale for small and
 medium-sized banks, but diseconomies of scale for large-sized banks.	 
Journal: Emerging Markets Finance and Trade 
Pages: 60-81 
Issue: 2 
Volume: 41 
Year: 2005 
Month: 3 
Keywords: cost inefficiency, economies of scale, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=WXC7FLJYRUD873EP 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Aigner, D.J.; C.A.
 Lovell; and P. Schmidt. 1977. "Formulation and Estimation of Stochastic
 Frontier Production Function Models." Journal of Econometrics 6, no. 1:
 23-37.</BIBTEXT>      </REF>	   <REF>	<BIBL>2</BIBL>	     
 <BIBTEXT>Allen, L., and A. Rai. 1996 "Operational Efficiency in Banking:
 An International Comparison." Journal of Banking and Finance 20, no. 4:
 655-672.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Altunbas, Y.; M.H. Liu; P. Molyneux; and R. Seth. 2000.
 "Efficiency and Risk in Japanese Banking." Journal of Banking and Finance
 24, no. 10: 1605-1628.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>4</BIBL>        <BIBTEXT>Anderson, R., and C. Kegels. 1998.
 Transition Banking: Financial Development of Central and Eastern Europe.
 Oxford: Clarendon Press.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>5</BIBL>        <BIBTEXT>Berg S.; F. Førsung; L. Hjalmarsson; and M.
 Suominen. 1993. "Banking Efficiency in the Nordic Countries." Journal of
 Banking and Finance 17, no. 2: 371-388.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>6</BIBL>	    <BIBTEXT>Berger, A.N., and D.B. Humphrey. 1997.
 "Efficiency of Financial Institutions: International Survey and Directions
 for Future Research." European Journal of Operational Research 98, no. 2:
 175-212.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT>Berger, A.N.; G.A. Hanweck; D.B. Humphrey. 1987. "Competitive
 Viability in Banking: Scale, Scope, and Reassessment." Journal of Money,
 Credit and Banking 14, no. 4: 435-456.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>8</BIBL>	   <BIBTEXT>Cavallo, L., and P.S. Rossi. 2001.
 "Scale and Scope Economies in the European Banking Systems." Journal of
 Multinational Financial Management 11, no. 4: 515-531.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT>Dietsch, M., and
 L. Lozano-Vivas. 2000. "How the Environment Determines Banking Efficiency:
 A Comparison Between French and Spanish Industries." Journal of Banking
 and Finance 24, no. 6: 985-1004.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>10</BIBL>	<BIBTEXT>Fecher, F., and P. Pestieau. 1993.
 "Efficiency and Competition in OECD Financial Services." In The
 Measurement of Productive Efficiency: Techniques and Applications, ed.
 H.O. Fried, C.A.K. Lovell, and S.S. Schmidt, pp. 374-385. Oxford: Oxford
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>11</BIBL> 
       <BIBTEXT>Hasan, I., and K. Marton. 2003. "Development and Efficiency
 of the Banking Sector in a Transitional Economy: Hungarian Experience."
 Journal of Banking and Finance 27, no. 12: 2249-2271.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT>Hughes, J.P.; W.
 Lang; L.J. Mester; and C. Moon. 1996. "Efficient Banking Under Interstate
 Branching." Journal of Money, Credit and Banking 28, no. 4:
 1045-1071.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT>Jondrow, J.; C.A. Lovell; I.S. Materov; and P. Schmidt. 1982. "On
 the Estimation of Technical Inefficiency in the Stochastic Frontier
 Production Model." Journal of Econometrics 19, no. 2: 233-238.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>14</BIBL>	    <BIBTEXT>Konopielko, L.
 1997. "A Note on Polish Bank Consolidation." Journal of Comparative
 Economics 25, no. 3: 441-447.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>15</BIBL>	<BIBTEXT>Kraft, E., and D. Tirtiroglu. 1998. "Bank
 Efficiency in Croatia: A Stochastic-Frontier Analysis." Journal of
 Comparative Economics 26, no. 2: 282-300.</BIBTEXT>	  </REF>      <REF>
	<BIBL>16</BIBL>        <BIBTEXT>Maudos, J.; J. Pastor; F. Perez;
 and J. Quesada. 2002. "Cost and Profit Efficiency in European Banks."
 Journal of International Financial Markets, Institutions and Money 12, no.
 1: 33-58.</BIBTEXT>	  </REF>      <REF>	   <BIBL>17</BIBL>	 
 <BIBTEXT>Meeusen, W., and J. van den Broek. 1977. "Efficiency Estimation
 from Cobb-Douglas Production Functions with Composed Error." International
 Economic Review 18, no. 2: 435-444.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>18</BIBL>	 <BIBTEXT>Opiela, T. 2000. "Assessing the
 Evaluation of Polish Commercial Banks." Paper no. 18, National Bank of
 Poland, Warsaw.</BIBTEXT>	</REF>	    <REF>	 <BIBL>19</BIBL>   
     <BIBTEXT>Pastor, J.M.; F. Perez; and J. Quesada. 1997. "Efficiency
 Analysis in Banking Firms: An International Comparison." European Journal
 of Operational Research 98, no. 2: 395-407.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>20</BIBL>	     <BIBTEXT>Perotti, E. 1993. "Bank
 Lending in Transition Economies." Journal of Banking and Finance 17, no.
 5: 1021-1032.</BIBTEXT>      </REF>	  <REF>        <BIBL>21</BIBL>	   
   <BIBTEXT>Ruthenberg, D., and R. Elias. 1996. "Cost Economies and
 Interest Rate Margins in a Unified European Banking Market." Journal of
 Business Economics 48, no. 1: 231-249.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>22</BIBL>	    <BIBTEXT>Saunders, A., and A. Sommariva. 1993.
 "Banking Sector and Restructuring in Eastern Europe." Journal of Banking
 and Finance 17, no. 5: 931-957.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>23</BIBL>	<BIBTEXT>Scholtens, B. 2000. "Financial Regulations
 and Financial System Architecture in Central Europe." Journal of Banking
 and Finance 24, no. 4: 525-553.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>24</BIBL>	<BIBTEXT>Sealey, C., and J.T. Lindley. 1977.
 "Inputs, Outputs and a Theory of Production and Cost at Depository
 Financial Institution." Journal of Finance 32, no. 4: 1251-1266.</BIBTEXT>
      </REF>	  <REF>        <BIBL>25</BIBL>	      <BIBTEXT>Szego, G.P.
 1993. "Introduction on Banks and Capital Markets in Former Planned
 Countries: Their Role in Establishing a Market Economy." Journal of
 Banking and Finance 17, no. 5: 773-783.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>26</BIBL>	     <BIBTEXT>Thorne, A. 1993. "Eastern Europe's
 Experience with Banking Reform: Is There a Role for Bank in the
 Transition." Journal of Banking and Finance 17, no. 5: 773-783.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>27</BIBL>	     <BIBTEXT>Weill, L.
 2002. "Does Restructuring Improve Banking Efficiency in a Transition
 Economy?" Applied Economics Letters 9, no. 5: 279-281.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>28</BIBL>	 <BIBTEXT>------. 2003.
 "Banking Efficiency in Transition Economies: The Role of Foreign
 Ownership." Economics of Transition 11, no. 3: 569-592.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:2:p:60-81




Template-Type: ReDIF-Article 1.0
Author-Name: SAURABH GHOSH 
Author-X-Name-First: SAURABH 
Author-X-Name-Last: GHOSH 
Title:         Underpricing of Initial Public Offerings: The Indian Experience       
Abstract:
       This paper attempts to identify the factors explaining underpricing
 of initial public offerings (IPOs) in an emerging economy, India, using
 1,842 companies that got listed on the Bombay Stock Exchange from 1993 to
 2001. It is found that uncertainty played a role in perverse underpricing
 in the Indian primary market. IPOs with a large issue size and those that
 went for seasoned offerings had less underpricing. Contrary to the
 international evidence, underpricing was less during the high volume (hot)
 period compared to the slump period in the Indian IPO market. During the
 hot period, new issues belonging to business groups underpriced more than
 their stand-alone counterparts did. Small issues belonging to private
 stand-alone firms had less underpricing during the hot period and did not
 come to the market subsequently to raise funds. Large issues belonging to
 the business groups, on the other hand, underpriced more and subsequently
 raised funds from the market. These results support the predictions of
 signaling theory for the IPOs listed in the Indian stock markets over the
 last decade.	 
Journal: Emerging Markets Finance and Trade 
Pages: 45-57 
Issue: 6 
Volume: 41 
Year: 2005 
Month: 11 
Keywords: emerging market, going public, IPO, SEO, underpricing, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=737CMBW3LMUH65HE 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Allen, F., and G.
 Faulhaber. 1989. "Signaling by Underpricing in the IPO Market." Journal of
 Financial Economics 23, no. 2: 303-323.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>2</BIBL>	    <BIBTEXT>Goldfield, S.M., and R.E. Quandt.
 1973. "A Markov Model for Switching Regression." Journal of Econometrics
 1, no. 1: 3-15.</BIBTEXT>	</REF>	    <REF>	 <BIBL>3</BIBL>    
    <BIBTEXT>Grinblatt, M., and C.Y. Hwang. 1989. "Signalling and the
 Pricing of New Issues." Journal of Finance 44, no. 2: 393-420.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>4</BIBL>	  
 <BIBTEXT>Hoffmann-Burchardi, U. 2001. "Clustering of Initial Public
 Offering, Information Revelation and Underpricing." European Economic
 Review 45, no. 2: 353-383.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>5</BIBL>        <BIBTEXT>Jegadeesh, N.; M. Weinstein; and I. Welch.
 1993. "Initial Public Offering and Subsequent Equity Offerings." Journal
 of Financial Economics 34, no. 2: 153-175.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT>Ritter, J.R. 1984. "The 'Hot
 Issue' Market of 1980." Journal of Business 57, no. 2: 215-240.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT>------. 1991.
 "The Long Run Performance of Initial Public Offerings." Journal of Finance
 46, no. 1: 3-27.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>   
     <BIBTEXT>------. 2003. "Behavioral Finance." Pacific-Basin Finance
 Journal 11, no. 4: 429-437.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>9</BIBL>        <BIBTEXT>Ritter, J.R., and T. Loughran. 1995. "The
 New Issues Puzzle." Journal of Finance 50, no. 1: 23-51.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT>Rock, K. 1986.
 "Why New Issues Are Underpriced." Journal of Financial Economics 15, nos.
 1-2: 186-212.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	   
   <BIBTEXT>Shah, A. 1995. "The Indian IPO Market: Empirical
 Facts--Technical Report." Centre for Monitoring Indian Economy, Mumbai,
 May.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:6:p:45-57




Template-Type: ReDIF-Article 1.0
Author-Name: Guzin  Erlat 
Author-X-Name-First: Guzin  
Author-X-Name-Last: Erlat 
Author-Name: Haluk  Erlat 
Author-X-Name-First: Haluk  
Author-X-Name-Last: Erlat 
Title: Intraindustry Trade and Labor Market Adjustment in Turkey: Another Piece of Puzzling Evidence? 
Abstract:
 After important policy changes in 1980, Turkey's trade expanded
 considerably. Although interindustry trade remained predominant,
 intraindustry trade (IIT) increased substantially. This paper investigates
 whether the increase in IIT contributed to reducing adjustment costs due
 to trade expansion. We undertook an econometric approach and considered
 three-digit International Standard Industry Classification classified
 data. We used a model developed by BrÃ¼lhart and Thorpe (2000) for
 Malaysia, both in static and dynamic forms. Our static results indicate
 that, if there is any contribution that IIT makes to adjustments in the
 manufacturing industries of Turkey, it is either nonexistent, if measured
 by changes in the GrubelâLloyd index, or in the opposite direction, if
 measured by the marginal IIT index (A). The dynamic results are somewhat
 more encouraging, in that the coefficients of the lagged A and
 GrubelâLloyd indexes are negative and significant when three yearly
 changes are considered, but the overall results are not sufficient to
 conclude that the structural adjustment hypothesis holds for Turkey.
Journal: Emerging Markets Finance and Trade 
Pages: 5-27 
Issue: 5 
Volume: 42 
Year: 2006 
Month: 10 
Keywords: intraindustry trade, panel data models, structural adjustment hypothesis, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=3824P862076UJ105 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Arellano, M., and S.
 Bond. 1991. "Some Tests of Specification for Panel Data: Monte Carlo
 Evidence and an Application to Employment Equations." >i>Review of
 Economic Studies>/i> 58, no. 3: 277-297.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>2</BIBL>	     <BIBTEXT> Azhar, A.K.M.; R.J.R. Elliot; and
 R.C. Milner. 1998. "Static and Dynamic Measurement of Intra-Industry Trade
 and Adjustment: A Geometric Appraisal." >i>Weltwirtschaftliches Archiv>/i>
 134, no. 3: 404-422.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>3</BIBL>        <BIBTEXT> Baltagi, B.H. 2005. >i>Econometric
 Analysis of Panel Data.>/i> Chichester, UK: John Wiley.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> BrÃ¼lhart, M.
 1994. "Marginal Intra-Industry Trade: Measurement and Relevance for the
 Pattern of Industrial Adjustment." >i>Weltwirtschaftliches Archiv>/i> 130,
 no. 3: 600-613.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>    
    <BIBTEXT> BrÃ¼lhart, M. 1999. "Marginal Intra-Industry Trade and
 Trade-Induced Adjustment: A Survey." In >i>Intra-Industry Trade and
 Adjustment: The European Experience>/i>, ed. M. BrÃ¼lhart and R.C. Hine,
 pp. 36-69. London: Macmillan Press.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>6</BIBL>	<BIBTEXT> BrÃ¼lhart, M. 2000. "Dynamics of
 Intra-Industry Trade and Labour Market Adjustment." >i>Review of
 International Economics>/i> 8, no. 3: 420-435.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> BrÃ¼lhart, M., and R.J.R.
 Elliott. 2002. "Labour Market Effects of Intra-Industry Trade: Evidence
 for the United Kingdom." >i>Weltwirtschaftliches Archiv>/i> 138, no. 2:
 207-228.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> BrÃ¼lhart, M., and R.C. Hine, ed. 1999. >i>Intra-Industry Trade
 and Adjustment: The European Experience.>/i> London: Macmillan
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	     
 <BIBTEXT> BrÃ¼lhart, M., and M. Thorpe, ed. 2000. "Intra-Industry Trade
 and Adjustment in Malaysia: Puzzling Evidence." >i>Applied Economics
 Letters>/i> 7, no. 11: 729-733.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>10</BIBL>	<BIBTEXT> Erlat, G. 2000. "Measuring the Impact of
 Trade Flows on Employment in the Turkish Manufacturing Industry."
 >i>Applied Economics>/i> 32, no. 9: 1169-1180.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Erlat, G., and H. Erlat.
 2003. "Measuring Intra-Industry and Marginal Intra-Industry Trade: The
 Case for Turkey." >i>Emerging Markets Finance and Trade>/i> 39, no. 6:
 5-38.</BIBTEXT>      </REF>	  <REF>        <BIBL>12</BIBL>	     
 <BIBTEXT> Greenaway, D.; M. Haynes; and C. Milner. 2002. "Adjustment,
 Employment Characteristics and Intra-Industry Trade."
 >i>Weltwirtschaftliches Archiv>/i> 138, no. 2: 254-276.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Grubel, H., and
 P.J. Lloyd. 1971. "The Empirical Measurement of Intra-Industry Trade."
 >i>Economic Record>/i> 47, no. 120: 494-517.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT> Hamilton, C., and P. Kniest.
 1991. "Trade Liberalization, Structural Adjustment and Intra-Industry
 Trade." >i>Weltwirtschaftliches Archiv>/i> 127, no. 2: 356-367.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT> Lovely,
 M.E., and D.R. Nelson. 2000. "Marginal Intra-Industry Trade and Labour
 Adjustment." >i>Review of International Economics>/i> 8, no. 3:
 436-477.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT> Lovely, M.E., and D.R. Nelson. 2002. "Intra-Industry Trade as an
 Indicator of Labour Market Adjustment." >i>Weltwirtschaftliches Archiv>/i>
 138, no. 2: 179-206.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>17</BIBL>	<BIBTEXT> Oliveras, J., and I. Terra. 1997.
 "Marginal Intra-Industry Trade Index: The Period and Aggregation Choice."
 >i>Weltwirtschaftliches Archiv>/i> 133, no. 1: 170-179.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT> Sarris, A.H.; P.
 Papadimitriou; and A. Mavrogiannis. 1999. "Greece." In >i>Intra-Industry
 Trade and Adjustment>/i>, pp. 168-187.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>19</BIBL>	    <BIBTEXT> Tharakan, P.K.M., and G. Calfat.
 1999. "Belgium." In >i>Intra-Industry Trade and Adjustment>/i>, pp.
 121-134. London: Macmillan Press.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:5:p:5-27




Template-Type: ReDIF-Article 1.0
Author-Name: Ramkishen S. Rajan 
Author-X-Name-First: Ramkishen S. 
Author-X-Name-Last: Rajan 
Author-Name: Makarand  Parulkar 
Author-X-Name-First: Makarand  
Author-X-Name-Last: Parulkar 
Title: Real Sector Shocks and Monetary Policy Responses in a Financially Vulnerable Emerging Economy 
Abstract:
 When analyzing the appropriate response for monetary policy during a
 currency crisis, it is important to keep in mind two distinct channels:
 the effect of raising interest rates on exchange rates and the direct
 effect of exchange rate changes on output. The first pertains to the
 monetary side of the economy as given by the interest parity condition.
 The second pertains to the real side of the economy. The interaction
 between these two parts of the economy derives the equilibrium output and
 exchange rate in the economy. This paper expands on the Aghion et al.
 (2000) monetary model with nominal rigidities and foreign currency debt,
 to examine the interaction between the real and monetary sides of the
 economy and to analyze the effect of monetary policy on the real economy.
 We find that the effect of monetary policy on exchange rate and output is
 theoretically ambiguous. This in turn suggests that the appropriate
 monetary policy response could vary among countries at any point in time,
 or for a particular country between two different periods.
Journal: Emerging Markets Finance and Trade 
Pages: 21-33 
Issue: 3 
Volume: 44 
Year: 2008 
Month: 5 
Keywords: balance sheet effects, currency crisis, exchange rate depreciation, Laffer curve effects, monetary policy., 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8207702847607K68 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aghion, P.; P.
 Bacchetta; and A. Banerjee. 2000. "A Simple Model of Monetary Policy and
 Currency Crises." >i>European Economic Review>/i> 44, nos. 4-6:
 728-738.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Basurto, G., and A. Ghosh. 2001. "The Interest Rate-Exchange
 Rate Nexus in Currency Crises." >i>IMF Staff Papers>/i> 47 (Special
 Issue): 99-120.</BIBTEXT>	</REF>	    <REF>	 <BIBL>3</BIBL>    
    <BIBTEXT> Bird, G., and R. S. Rajan. 2004. "Does Devaluation Lead to
 Economic Recovery or Economic Contraction? Examining the Analytical Issues
 with Reference to Thailand." >i>Journal of International Development>/i>
 16, no. 2: 141-156.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>
	<BIBTEXT> Boorman, J.; T. Lane; M. Schultze-Ghattas; A. Bulir; A.
 Ghosh; J. Hamann; A. Mourmouras; and S. Phillips. 2000. "Managing
 Financial Crises: The Experience in East Asia." International Monetary
 Fund Working Paper 00/107, Washington, DC.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Caporale, G. M.; A.
 Cipollini; and P. Demetriades. 2000. "Monetary Policy and the Exchange
 Rate During the Asian Crisis Identification Through Heteroscedasticity."
 University of Leicester Discussion Papers in Economics 00/11, Leicester,
 UK.</BIBTEXT>	    </REF>	<REF>	     <BIBL>6</BIBL>	  
 <BIBTEXT> Drazen, A., and S. Hubrich. 2003. "Mixed Signals in Defending
 the Exchange Rate: What Do the Data Say?" CEPR Discussion Paper no. 4050,
 London, September.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL> 
       <BIBTEXT> Duttagupta, R., and A. Spilimbergo. 2004. "What Happened
 to Asian Exports During the Crisis?" >i>IMF Staff Papers>/i> 51, no. 1:
 72-95.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT> Eijffinger, S. C. W., and B. Goderis. 2006. "The Effect of
 Monetary Policy on Exchange Rates During Currency Crises: The Role of
 Short-Term Debt and Institutions." Oxford University, April.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>9</BIBL>	 <BIBTEXT> Forbes, K. 2002.
 "How Do Large Depreciations Affect Firm Performance?" >i>IMF Staff
 Papers>/i> 49 (Special Issue): 214-238.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>10</BIBL>	     <BIBTEXT> Furman, J., and J. Stiglitz. 1998.
 "Economic Crises: Evidence and Insights from East Asia." >i>Brookings
 Papers on Economic Activity>/i> 2, no. 2: 1-114.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>11</BIBL>	      <BIBTEXT> Goderis, B., and V. P.
 Loannidou. 2006. "Do High Interest Rates Defend Currencies During
 Speculative Attacks? New Evidence." Oxford University, Center for the
 Study of African Economies (CSAE), Working Paper no. 2006-11.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>12</BIBL>	   <BIBTEXT> Goldfajn, I.,
 and T. Baig. 1998. "Monetary Policy in the Aftermath of Currency Crises:
 The Case of Asia." International Monetary Fund Working Paper 98/170,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>13</BIBL>   
     <BIBTEXT> Goldstein, M.; G. Kaminsky; and C. Reinhart. 2000.
 >i>Assessing Financial Vulnerability: An Early Warning System for Emerging
 Markets.>/i> Washington, DC: Institute for International
 Economics.</BIBTEXT>	   </REF>      <REF>	    <BIBL>14</BIBL>	  
 <BIBTEXT> Gould, D., and S. B. Kamin. 2000. "The Impact of Monetary Policy
 on Exchange Rates During Financial Crises." International Finance Working
 Paper no. 669, Board of Governors of the Federal Reserve, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>15</BIBL>	   
 <BIBTEXT> Gupta, P.; D. Mishra; and R. Sahay. 2003. "Output Response to
 Currency Crises." International Monetary Fund Working Paper no. 03/230,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>16</BIBL>   
     <BIBTEXT> Hausman, R.; U. Panizza; and E. Stein. 2002. "Original Sin,
 Passthrough, and Fear of Floating." In >i>Financial Policies in Emerging
 Markets>/i>, ed. M. I. Blejer and M. Skreb, pp. 19-46. Cambridge, MA: MIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>17</BIBL>       
 <BIBTEXT> Kamin, S., and M. Klau. 1998. "Some Multi-Country Evidence on
 the Effects of Real Exchange Rates on Output." International Finance
 Discussion Papers no. 611, Board of the Governors of the Federal Reserve,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>18</BIBL>   
     <BIBTEXT> Krugman, P. 1999. "Balance Sheets, the Transfer Problem, and
 Financial Crisis." In >i>International Finance and Financial Crises>/i>,
 ed. P. Isard, A. Razin, and A. Rose, pp. 31-44. Boston: Kluwer Academic
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>19</BIBL>       
 <BIBTEXT> Montiel, P. 2003. "Tight Money in a Postcrisis Defense of the
 Exchange Rate: What Have We Learned?" >i>World Bank Research Observer>/i>
 18, no. 1: 1-23.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>  
      <BIBTEXT> Radelet, S., and J. Sachs. 1998. "The East Asian Financial
 Crisis: Diagnosis, Remedies, Prospects." >i>Brookings Papers on Economic
 Activity>/i> 1: 1-74.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>21</BIBL>	<BIBTEXT> Rajan, R. S. 2007. "Managing New Style
 Currency Crises: The Swan Diagram Revisited." >i>Journal of International
 Development>/i>, 19, no. 5: 583-606.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>22</BIBL>	  <BIBTEXT> Rajan, R. S., and C. H. Shen. 2006.
 "Why Are Crisis-Induced Devaluations Contractionary? Exploring Alternative
 Hypotheses." >i>Journal of Economic Integration>/i> 21, no. 3:
 526-550.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT> Stiglitz, J. 1998. "Knowledge for Development: Economic Science,
 Economic Policy, and Economic Advice." Annual World Bank Conference on
 Development Economics, Washington, DC, April 20-21.</BIBTEXT>	    </REF>  
Handle: RePEc:mes:emfitr:v:44:y:2008:i:3:p:21-33




Template-Type: ReDIF-Article 1.0
Author-Name: S. NURI ERBAS 
Author-X-Name-First: S. NURI 
Author-X-Name-Last: ERBAS 
Title:         IMF Conditionality and Program Ownership : A Case for Streamlined Conditionality       
Abstract:
       Program conditionality and ownership are important considerations in
 the International Monetary Fund's current rethinking of program design.
 This paper contributes to the literature by developing a theory of program
 conditionality and ownership on the basis of Cumulative Prospect Theory.
 The policymaker may value a set of programs, each with fewer conditions,
 more than an extended program with as many conditions. This valuation bias
 is greater in ambiguity (Knightian uncertainty) than under uncertainty. If
 greater valuation of a program engenders more explicit and implicit
 ownership, then programs with fewer conditions may have a better chance of
 success. Less is more.    
Journal: Emerging Markets Finance and Trade 
Pages: 10-25 
Issue: 3 
Volume: 40 
Year: 2004 
Month: 5 
Keywords: ambiguity, IMF conditionality, program ownership, uncertainty, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=XNQCJ0TMQ71QYRPG 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Dewatripont, M., and G.
 Roland. 1994. "Economic Reform and Dynamic Political Constraints." In
 Monetary and Fiscal Policy II, ed. T. Persson and G. Tabellini, pp.
 415-457. Cambridge, MA: MIT Press.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>2</BIBL>        <BIBTEXT>------. 1995. "The Design of Reform
 Packages Under Uncertainty." American Economic Review 85, no. 5:
 1207-1223.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL>	 
 <BIBTEXT>Dixit, A.K., and R.S. Pindyck. 1994. Investment Under
 Uncertainty. Princeton: Princeton University Press.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>4</BIBL>	<BIBTEXT>Erbas*, S.N. 2002a.
 "Decision Making in Ambiguity: A Dynamic Model." International Monetary
 Fund, Washington, DC.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>5</BIBL>        <BIBTEXT>------. 2002b. "Primer on Reforms in a
 Second-Best Ambiguous Environment: A Case for Gradualism." Working Paper
 02/50, International Monetary Fund, Washington, DC.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Fernandez, R., and D.
 Rodrik. 1991. "Resistance to Reform: Status Quo Bias in the Presence of
 Individual-Specific Uncertainty." American Economic Review 81, no. 5:
 1146-1155.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT>Hammond, P.J. 1976. "Changing Tastes and Coherent Dynamic
 Choice." Review of Economic Studies 43, no. 1: 159-173.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT>Henry, C. 1974.
 "Investment Decisions Under Uncertainty: The 'Irreversibility Effect.'"
 American Economic Review 64, no. 6: 1006-1012.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT>Humphrey, S.J. 1995. "Regret
 Aversion or Event-Splitting Effects? More Evidence Under Risk and
 Uncertainty." Journal of Risk and Uncertainty 11: 263-274.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT>Kahneman, D., and
 A. Tversky. 1979. "Prospect Theory: An Analysis of Decision Under Risk."
 Econometrica 47, no. 2: 263-291.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>11</BIBL>	<BIBTEXT>Koopmans, T.C. 1964. "On Flexibility of
 Future Preference." In Human Judgments and Optimality, ed. M.W. Shelly II
 and G.L. Bryan, pp. 243-254. New York: Wiley.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT>Kreps, D.M. 1992. "Static
 Choice in the Presence of Unforeseen Contingencies." In Economic Analysis
 of Markets and Games: Essays in Honor of Frank Hahn, ed. P. Dasgupta, D.
 Gale, O. Hart, and E. Maskin, pp. 258-281. Cambridge, MA: MIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>13</BIBL>       
 <BIBTEXT>Lian, P., and S. Wei. 1998. "To Shock or Not to Shock? Economics
 and Political Economy of Large Scale Reforms." Economics and Politics 10,
 no. 2: 161-183.</BIBTEXT>	</REF>	    <REF>	 <BIBL>14</BIBL>   
     <BIBTEXT>Marschak, T., and R. Nelson. 1962. "Flexibility, Uncertainty,
 and Economic Theory." Metroeconomica 14 (April-December): 42-58.</BIBTEXT>
      </REF>	  <REF>        <BIBL>15</BIBL>	      <BIBTEXT>Pollak, R.A.
 1968. "Consistent Planning." Review of Economic Studies 35(2), no. 102:
 201-208.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT>Samuelson, W., and R. Zeckhauser. 1988. "Status Quo Bias in
 Decision Making." Journal of Risk and Uncertainty 1: 7-59.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT>Segal, U. 1987.
 "The Ellsberg Paradox and Risk Aversion: An Anticipated Utility Approach."
 International Economic Review 28, no. 1: 175-202.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>18</BIBL>        <BIBTEXT>Starmer, C., and R. Sugden.
 1993. "Testing for Juxtaposition and Event-Splitting Effects." Journal of
 Risk and Uncertainty 6: 235-254.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>19</BIBL>	<BIBTEXT>Tversky, A., and C.R. Fox. 1995.
 "Weighting Risk and Uncertainty." Psychological Review 102, no. 2:
 269-283.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT>Tversky, A., and D. Kahneman. 1992. "Advances in Prospect Theory:
 Cumulative Representation of Uncertainty." Journal of Risk and Uncertainty
 5: 297-323.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:3:p:10-25




Template-Type: ReDIF-Article 1.0
Author-Name: MOHSEN BAHMANI-OSKOOEE 
Author-X-Name-First: MOHSEN 
Author-X-Name-Last: BAHMANI-OSKOOEE 
Author-Name: GOUR G. GOSWAMI 
Author-X-Name-First: GOUR G. 
Author-X-Name-Last: GOSWAMI 
Title:         Black Market Exchange Rates and Purchasing Power Parity in Emerging Economies       
Abstract:
       Testing purchasing power parity (PPP) in the black market has
 increased in recent years due to the apparent puzzle in the literature by
 which PPP is largely rejected in flexible exchange rate regimes. Many
 studies of PPP suffer from the problem of imposing symmetry and
 proportionality restriction and fail to address the issues of stationarity
 and exogeneity. We address these issues in this paper by using monthly
 data from eight developing Asian countries over a thirty-one-year period.
 Even though the variables are cointegrated in a Johansen-Juselius
 framework, it is found that the domestic price and the foreign price are
 not weakly exogenous in many countries, and a direct test provides the
 rejection of the PPP hypothesis.    
Journal: Emerging Markets Finance and Trade 
Pages: 37-52 
Issue: 3 
Volume: 41 
Year: 2005 
Month: 5 
Keywords: Asia, black market exchange rate, cointegration, emerging economies, parallel market exchange rate, purchasing power parity, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=8TJEGTN9LV8N5CJM 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Baghestani, H. 1997.
 "Purchasing Power Parity in the Presence of Foreign Exchange Black Market:
 The Case of India." Applied Economics 29 (September): 1147-1154.</BIBTEXT>
      </REF>	  <REF>        <BIBL>2</BIBL>	    
 <BIBTEXT>Bahmani-Oskooee, M. 1993a. "Black Market Exchange Rates Versus
 Official Exchange Rates in Testing Purchasing Power Parity: An Examination
 of Iranian Rial." Applied Economics 25 (April): 465-472.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>------. 1993b.
 "Purchasing Power Parity Based on Effective Exchange Rate and
 Coitegration: 25 LDCs' Experience with Its Absolute Formulation." World
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 <BIBTEXT>------. 1995b. "Real Effective Exchange Rates and the Purchasing
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 <BIBTEXT>Bahmani-Oskooee, M., and M. Barry. 1997. "The Purchasing Power
 Parity and the Russian Ruble." Comparative Economic Studies 39 (Spring):
 82-94.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT>Bahmani-Oskooee, M., and A.B.M. Nasir. 2001. "Panel Data and
 Productivity Bias Hypothesis." Economic Development and Cultural Change 49
 (January): 393-402.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>
	<BIBTEXT>------. 2002. "Corruption, Law and Order, Bureaucracy and
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 <BIBTEXT>Bahmani-Oskooee, M., and Hyun-Jae Rhee. 1992. "Testing for
 Long-Run Purchasing Power Parity: An Examination of Korean Won."
 International Economic Journal 6 (Autumn): 93-103.</BIBTEXT>	   </REF>  
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 <BIBL>18</BIBL>	<BIBTEXT>El-Sakka, M.I.T., and R. McNabb. 1994.
 "Cointegration and Efficiency of the Black Market for Foreign Exchange: A
 PPP Test for Egypt." Economic Notes 23, no. 3: 473-480.</BIBTEXT>     
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 Hendry; and J.F. Richard. 1983. "Exogeneity." Econometrica 51, no. 2:
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 <BIBTEXT>Frenkel, J.A. 1981. "Flexible Exchange Rates, Prices, and Role of
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     <BIBTEXT>Johansen, S., and K. Juselius. 1990. "Maximum Likelihood
 Estimation and Inference on Cointegration--With Applications to the Demand
 for Money." Oxford Bulletin of Economics and Statistics 52, no. 2:
 169-210.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT>------. 1992. "Testing Structural Hypothesis in a Multivariate
 Cointegration Analysis of the PPP and UIP for the UK." Journal of
 Econometrics 53 (July-September): 211-244.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>24</BIBL>	     <BIBTEXT>Juselius, K. 1996. "An
 Empirical Analysis of the Changing Role of the German Bundesbank After
 1983." Oxford Bulletin of Economics and Statistics 58, no. 4:
 791-819.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>	
 <BIBTEXT>Kim, Y. 1990. "Purchasing Power Parity in the Long Run: A
 Cointegration Approach." Journal of Money, Credit and Banking 22
 (November): 491-503.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>26</BIBL>	<BIBTEXT>Kouretas, G.P., and L.P. Zarangas. 2001.
 "Long-Run Purchasing Power Parity and Structural Change: The Official and
 Parallel Foreign Exchange Markets for Dollars in Greece." International
 Economic Journal 15, no. 3: 109-128.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>27</BIBL>	  <BIBTEXT>Layton, A.P., and J.P. Stark. 1990.
 "Co-integration as an Empirical Test of Purchasing Power Parity." Journal
 of Macroeconomics 12 (Winter): 125-136.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>28</BIBL>	     <BIBTEXT>Lothian, J.R., and M.P. Taylor. 1996.
 "Real Exchange Rate Behavior: The Recent Float from the Perspective of the
 Past Two Centuries." Journal of Political Economy 104 (June):
 488-510.</BIBTEXT>	 </REF>      <REF>	  <BIBL>29</BIBL>	
 <BIBTEXT>Luintel, K.B. 2000. "Real Exchange Rate Behavior: Evidence from
 Black Markets." Journal of Applied Econometrics 15 (March-April):
 161-185.</BIBTEXT>	 </REF>      <REF>	  <BIBL>30</BIBL>	
 <BIBTEXT>McNown, R., and M.S. Wallace. 1989. "National Price Levels,
 Purchasing Power Parity and Cointegration: A Test of Four High Inflation
 Economies." Journal of International Money and Finance 8 (December):
 533-545.</BIBTEXT>	 </REF>      <REF>	  <BIBL>31</BIBL>	
 <BIBTEXT>Nagayasu, J. 2000. "Long-Run Real Exchange Rate Movements in
 Africa: Parallel Market and Official Rates." African Economic Journal 2,
 no. 2: 1-14.</BIBTEXT>      </REF>	 <REF>	      <BIBL>32</BIBL>	   
  <BIBTEXT>------. 2002. "Does the Long-Run PPP Hypothesis Hold for Africa?
 Evidence from a Panel Cointegration Study." Bulletin of Economic Research
 54, no. 2: 181-187.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>33</BIBL>	<BIBTEXT>Noorbakhsh, A. 2001. "Purchasing Power
 Parity: An Efficient Markets Approach: Evidence from Parallel Foreign
 Exchange Markets." Pennsylvania Economic Review 10, no. 1:
 97-109.</BIBTEXT>	</REF>	    <REF>	 <BIBL>34</BIBL>       
 <BIBTEXT>Park, S.J. 1991. "The Determination of Black Market Exchange Rate
 for U.S. Dollars in Korea: Monetary Approach and Portfolio Balance
 Approach." Ph.D. dissertation, University of California, Santa
 Barbara.</BIBTEXT>	 </REF>      <REF>	  <BIBL>35</BIBL>	
 <BIBTEXT>Phillips, R.J. 1988. "War News and Black Market Exchange Rate
 Deviations from Purchasing Power Parity: Wartime South Vietnam." Journal
 of International Economics 25, nos. 3-4: 373-378.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>36</BIBL>        <BIBTEXT>Rogoff, K. 1996. "The
 Purchasing Power Parity Puzzle." Journal of Economic Literature 34, no. 2:
 647-668.</BIBTEXT>	 </REF>      <REF>	  <BIBL>37</BIBL>	
 <BIBTEXT>Sanchez-Fung, J.R. 1999. "Efficiency of the Black Market for
 Foreign Exchange and PPP: The Case of the Dominican Republic." Applied
 Economic Letters 6 (March): 173-176.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>38</BIBL>	  <BIBTEXT>Taylor, A.M. 1988. "An Empirical
 Examination of Long-Run Purchasing Power Parity using Cointegration
 Technique." Applied Economics 20 (October): 1369-1381.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>39</BIBL>	 <BIBTEXT>------. 2001.
 "Potential Pitfalls for the Purchasing-Power-Parity Puzzle? Sampling and
 Specification Biases in Mean-Reversion Tests of the Law of One Price."
 Econometrica 69 (March): 473-498.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>40</BIBL>	<BIBTEXT>------. 2002. "A Century of Purchasing
 Power Parity." Review of Economics and Statistics 84, no. 1:
 139-150.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:3:p:37-52




Template-Type: ReDIF-Article 1.0
Author-Name: VIVIANA FERNANDEZ 
Author-X-Name-First: VIVIANA 
Author-X-Name-Last: FERNANDEZ 
Title:         Time-Scale Decomposition of Price Transmission in International Markets       
Abstract:
       This paper focuses on return spillovers in stock markets at
 different time scales using wavelet analysis. We look at eight stock
 indices that comprise the G7 countries, emerging Asia, Western Europe,
 Eastern Europe and the Middle East, the emerging Far East, Latin America,
 North America, and the Pacific region for the period 1990-2002. Our
 estimation results show evidence of price spillovers from the G7 countries
 to Europe, Eastern Europe and the Middle East, emerging Asia, Europe,
 Latin America, and North America. However, price spillovers from these
 regions to the G7 countries are weaker at different time scales.
 Similarly, we find price spillovers from North America to Latin America,
 emerging Asia, the emerging Far East, and the Pacific region, and from
 both Europe and Latin America to North America. Our results are robust to
 the existence of asymmetric generalized autoregressive conditional
 heteroskedasticity (GARCH) effects and serial correlation in returns. We
 believe that our findings are potentially relevant to portfolio risk
 management.	
Journal: Emerging Markets Finance and Trade 
Pages: 57-90 
Issue: 4 
Volume: 41 
Year: 2005 
Month: 8 
Keywords: A-PGARCH models, spillovers, wavelet analysis, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=EUT9UXLYCDLTHMGV 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Ding, Z.; C. Granger;
 and R. Engle. 1993. "A Long Memory Property of Stock Market Returns and a
 New Model." Journal of Empirical Finance 1, no. 1: 83-106.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT>Eun, C., and S.
 Shim. 1989. "International Transmission of Stock Markets Movements."
 Journal of Financial and Quantitative Analysis 24, no. 2:
 241-256.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Forbes, K., and R. Rigobon. 2002. "No Contagion, Only
 Interdependence: Measuring Stock Market Comovements." Journal of Finance
 57, no. 5: 2223-2261.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>4</BIBL>        <BIBTEXT>Gençay, R.; B. Whitcher; and F. Selçuk.
 2001. "Differentiating Intraday Seasonalities Through Wavelet
 Multi-Scaling." Physica A, no. 289: 543-556.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT>------. 2002. An Introduction
 to Wavelets and Other Filtering Methods in Finance and Economics. San
 Diego: Academic Press.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>6</BIBL>        <BIBTEXT>------. 2003. "Systematic Risk and Time
 Scales." Quantitative Finance 3, no. 2: 108-116.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>7</BIBL>	     <BIBTEXT>------. 2005. "Multi-Scale
 Systematic Risk." Journal of International Money and Finance 24, no. 1:
 55-70.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT>Hentschel, L. 1995. "All in the Family: Nesting Symmetric and
 Asymmetric GARCH Mod-els." Journal of Financial Economics 39, no. 1:
 71-104.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>       
 <BIBTEXT>Hong, Y., and C. Kao. 2004. "Wavelet-Based Testing for Serial
 Correlation of Unknown Form in Panel Models." Econometrica 72, no. 5:
 1519-1563.</BIBTEXT>	   </REF>      <REF>	    <BIBL>10</BIBL>	  
 <BIBTEXT>In, F., and S. Kim. 2006. "The Hedge Ratio and the Empirical
 Relationship Between the Stock and Futures Markets: A New Approach Using
 Wavelet Analysis." Journal of Business 79, no. 2.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>11</BIBL>        <BIBTEXT>Karolyi, G.A. 1995. "A
 Multivariate GARCH Model of International Transmissions of Stock Returns
 and Volatility: The Case of the U.S. and Canada." Journal of Business and
 Economics Statistics 13, no. 1: 11-25.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>12</BIBL>	    <BIBTEXT>------. 2003. "Does International
 Financial Contagion Really Exist?" International Finance 6, no. 2:
 179-199.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT>Karolyi, G.A., and R. Stulz. 1996. "Why Do Markets Move Together?
 An Investigation of the U.S.-Japan Stock Comovements." Journal of Finance
 51, no. 3: 951-986.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>14</BIBL>	<BIBTEXT>Lee, H.S. 2001a. "Price and Volatility
 Spillovers in Stock Markets: A Wavelet Analysis." Paper presented at the
 2001 Australasian Meeting of the Econometric Society, Auckland, NZ, July
 6-8.</BIBTEXT>      </REF>	 <REF>	      <BIBL>15</BIBL>	    
 <BIBTEXT>------. 2001b. "Recent Advances in Wavelet Methods for Economic
 Time Series." Journal of Economic Theory and Econometrics 7, no. 1:
 43-65.</BIBTEXT>      </REF>	   <REF>	<BIBL>16</BIBL>       
 <BIBTEXT>Lin, S.-J., and M. Stevenson. 2001. "Wavelet Analysis of the
 Cost-of-Carry Model." Studies in Nonlinear Dynamics and Econometrics 5,
 no. 1: 87-102.</BIBTEXT>      </REF>	   <REF>	<BIBL>17</BIBL>    
    <BIBTEXT>Lin, W.; R.F. Engle; and T. Ito. 1994. "Do Bulls and Bears
 Move Across Borders? International Transmission of Stock Prices and
 Volatility." Review of Financial Studies 7, no. 3: 507-538.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT>Mallat, S. 1998.
 A Wavelet Tour of Signal Processing. San Diego: Academic Press.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT>McKenzie, M.,
 and H. Mitchell. 2002. "Generalized Asymmetric Power ARCH Modelling of
 Exchange Rate Volatility." Applied Financial Economics 12, no. 8:
 555-564.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT>Ng, A. 2000. "Volatility Spillovers from Japan and the U.S. to
 the Pacific Basin." Journal of International Money and Finance 19, no. 2:
 207-233.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT>Norsworthy, J.; D. Li; and R. Gorener. 2000. "Wavelet-Based
 Analysis of Time Series: An Export from Engineering to Finance." Paper
 presented at the 2000 IEEE International Engineering Management Society
 Conference, Albuquerque, NM, August 13-15.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT>Percival, D., and A. Walden.
 2000. Wavelets Analysis for Time Series Analysis. Cambridge: Cambridge
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>23</BIBL> 
       <BIBTEXT>Poon, S.; M. Rockinger; and J. Tawn. 2003. "Modeling
 Extreme-Value Dependence in International Stock Markets." Statistica
 Sinica 13, no. 4: 929-953.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>24</BIBL>	<BIBTEXT>------. 2004. "Extreme Value Dependence in
 Financial Markets: Diagnostics, Models, and Financial Implications."
 Review of Financial Studies 17, no. 2: 581-610.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT>Ramsey, J. 1999. "The
 Contribution of Wavelets to the Analysis of Economic and Financial Data."
 Philosophical Transactions of the Royal Society of London Association,
 Series A, no. 357: 2593-2606.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>26</BIBL>	<BIBTEXT>------. 2002. "Wavelets in Economics and
 Finance: Past and Future." Studies in Nonlinear Dynamics and Econometrics
 6, no. 3: 1-29.</BIBTEXT>	</REF>	    <REF>	 <BIBL>27</BIBL>   
     <BIBTEXT>Ramsey, J., and C. Lampart. 1998. "The Decomposition of
 Economic Relationships by Time Scale Using Wavelets: Expenditure and
 Income." Studies in Nonlinear Dynamics and Econometrics 3, no. 1:
 23-42.</BIBTEXT>      </REF>	   <REF>	<BIBL>28</BIBL>       
 <BIBTEXT>Ramsey, J., and Z. Zhang. 1996. "The Application of Waveform
 Dictionaries to Stock Market Data." In Predictability of Dynamical
 Systems, vol. 69, ed. Y.A. Kravstov and J.B. Kadtke, pp. 189-205. New
 York: Springer-Verlag.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>29</BIBL>	<BIBTEXT>------. 1997. "The Analysis of Foreign
 Exchange Rate Data Using Waveform Dictionar-ies." Journal of Empirical
 Finance 4, no. 4: 341-372.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>30</BIBL>	<BIBTEXT>Ramsey, J.; D. Usikov; and G. Zaslavsky.
 1995. "An Analysis of U.S. Stock Price Behavior using Wavelets." Fractals
 3, no. 2: 377-389.</BIBTEXT>	   </REF>      <REF>	    <BIBL>31</BIBL>
	<BIBTEXT>Whitcher, B. 2004. "Wavelet-Based Estimation for Seasonal
 Long-Memory Processes." Technometrics 46, no. 2: 225-238.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>32</BIBL>	 <BIBTEXT>Worthington, A.,
 and H. Higgs. 2004. "Transmission of Equity Returns and Volatility in
 Asian Developed and Emerging Markets: A Multivariate GARCH Analysis."
 International Journal of Finance and Economics 9, no. 1: 71-80.</BIBTEXT> 
     </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:4:p:57-90




Template-Type: ReDIF-Article 1.0
Author-Name: Wenchang  Fang 
Author-X-Name-First: Wenchang  
Author-X-Name-Last: Fang 
Title: Guest Editor's Introduction: MDIS 2007 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-5 
Issue: 4 
Volume: 44 
Year: 2008 
Month: 7 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=UQ3787JP31552830 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
Handle: RePEc:mes:emfitr:v:44:y:2008:i:4:p:3-5




Template-Type: ReDIF-Article 1.0
Author-Name: YENER KANDOGAN 
Author-X-Name-First: YENER 
Author-X-Name-Last: KANDOGAN 
Title:         On Types of Trade, Adjustment of Labor, and Welfare Gains During Asymmetric Liberalizations       
Abstract:
       This paper modifies the two-industry, two-country Heckscher-Ohlin
 model with intermediate goods to decompose trade into its horizontal and
 vertical intra-industry, as well as inter-industry parts. Acknowledging
 that liberalization affects each type of trade differently, and that
 changes in each imply labor adjustment of different magnitudes, the paper
 analyzes the effects of widely observed asymmetries in liberalization
 policies. The paper concludes with the implications of the model for the
 liberalization between the East and the West through the Europe
 Agreements.	
Journal: Emerging Markets Finance and Trade 
Pages: 51-70 
Issue: 2 
Volume: 40 
Year: 2004 
Month: 3 
Keywords: adjustment, asymmetric liberalization, Europe Agreements, trade types, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=QAMXGARFP05YK6RT 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Antweiler, W., and D.
 Trefler. 2002. "Increasing Returns and All That: A View from Trade."
 American Economic Review 92, no. 1: 93-119.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Armington, P. 1969. "A Theory
 of Demand for Products Distinguished by Place of Origin" IMF Staff Papers
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	<BIBTEXT>Baldwin, R.; J. Mutti; and D. Richardson. 1980. "Welfare
 Effects on the United States of a Significant Multilateral Tariff
 Reduction" Journal of International Economics 10, no. 3:
 405-423.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>Bhagwati, J., and V. Dehejia. 1994. "Freer Trade and Wages of the
 Unskilled--Is Marx Striking Again?" In Trade and Wages: Leveling Wages
 Down?, ed J. Bhagwati and M. Kosters, pp. 36-75. Washington, DC: American
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 <BIBL>5</BIBL>        <BIBTEXT>Bureau, J. 1998. "Non-Tariff Trade Barriers
 and Consumer's Information: The Case of the EU-U.S. Trade Dispute over
 Beef." European Review of Agricultural Economics 25, no. 4:
 437-462.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT>Cadot, O., and J. de Melo. 1995. "France and the CEECs: Adjusting
 to Another Enlargement." In European Union Trade with Eastern Europe:
 Adjustment and Opportunities, ed. R. Faini and R. Portes, pp. 86-122.
 London: Center for Economic Policy Research.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT>Cline, W.; N. Kawanabe; T.
 Kronsjo; and T. Williams. 1978. Trade Negotiations in Tokyo Round: A
 Quantitative Assessment. Washington DC: Brookings Institution
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT>Daviddi, R. 1992. "From the CMEA to the Europe Agreements: Trade
 and Aid in the Relations Between the European Community and Eastern
 Europe." Economic Systems 16, no. 2: 269-294.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT>de Melo, J., and D. Tarr.
 1988. "Welfare Costs of U.S. Quotas in Textiles, Steel and Autos." Paper
 presented at the General Equilibrium Trade Policy Modeling Conference,
 University of Western Ontario, London, Canada, March 24, 1988.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>10</BIBL>	    <BIBTEXT>Dziembowska,
 J. 2000. "Cultural Activities as a Location Factor in European Competition
 Between Regions: Concepts and Some Evidence." Annals of Regional Science
 34, no. 1: 1-12.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>  
      <BIBTEXT>Feenstra, R. 1994. "New Product Varieties and the
 Measurement of International Prices." American Economic Review 84, no. 1:
 157-177.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT>Hanson, G. 1999. "Market Potential, Increasing Returns, and
 Geographic Concentration." University of Michigan, Ann Arbor and NBER,
 Cambridge, MA.</BIBTEXT>      </REF>	   <REF>	<BIBL>13</BIBL>    
    <BIBTEXT>Helliwell, J. 1997. "National Borders, Trade and Migration."
 NBER Working Paper 6027, Cambridge, MA.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>14</BIBL>	     <BIBTEXT>Henriot, A., and A. Inotai. 1998.
 "Economic Interpenetration Between the European Union and the Central and
 East European Countries." Russian and East European Finance and Trade 34,
 no. 1 (January-February): 5-31.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>15</BIBL>	<BIBTEXT>Inotai, A. 1995. "The Economic Impact of
 the Association Agreement: The Case of Hungary." Russian and East European
 Finance and Trade 31, no. 1 (January-February): 48-73.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>------. 1996.
 "From Association Agreements to Full Membership? The Dynamics of Relations
 Between the Central and East European Countries and the European Union."
 Russian and East European Finance and Trade 32, no. 6 (November-December):
 6-29.</BIBTEXT>      </REF>	  <REF>        <BIBL>17</BIBL>	     
 <BIBTEXT>Inotai, A.; A. Elteto; and S. Meisel. 2000. "Hungarian Trade and
 Trade Policy Toward Integration into the European Union." Russian and East
 European Finance and Trade 36, no. 2 (March-April): 42-62.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT>Kaminski, B.
 1995. "The Significance of Europe Agreements for Central European
 Industrial Exports." Russian and East European Finance and Trade 31, no. 1
 (January-February): 9-47.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>19</BIBL>	<BIBTEXT>Kierzkowski, H. 2000. "Challenges to
 Globalization: The Foreign Trade Restructuring of Transition Economies."
 Russian and East European Finance and Trade 36, no. 2 (March- April):
 8-41.</BIBTEXT>      </REF>	  <REF>        <BIBL>20</BIBL>	     
 <BIBTEXT>Krugman, P. 1994. "Does Third World Growth Hurt First World
 Prosperity?" Harvard Business Review 72 (July-August): 113-121.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT>Leamer, E.
 1996. "In Search of Stolper-Samuelson Effects on U.S. Wages." NBER Working
 Paper 5427, Cambridge, MA.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>22</BIBL>	<BIBTEXT>Messerlin, P. 1993. "The Trade Relations
 of Central and Eastern European Countries." Institut d'Etudes Politiques,
 Paris.</BIBTEXT>      </REF>	   <REF>	<BIBL>23</BIBL>       
 <BIBTEXT>Scherer, F. 1997. "Retail Distribution Channel Barriers to
 International Trade." ESRC Center for Business Research Working Paper
 WP55, University of Cambridge, UK.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>24</BIBL>	<BIBTEXT>Slaughter, M. 1997. "International Trade
 and Labor Demand Elasticities." NBER Working Paper 6262, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>25</BIBL>	   
 <BIBTEXT>Tamirisa, N. 1998. "Exchange and Capital Controls as Barriers to
 Trade." IMF Working Paper WP/98/81, Washington, DC.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>26</BIBL>	 <BIBTEXT>Winters, A. 1993. "The
 Europe Agreements: With a Little Help from Our Friends." In Trade,
 Transfers and Development: Problems and Prospects for the Twenty-First
 Century, ed. M. Murshed and R. Kunibert, pp. 196-209. Aldershot, UK:
 Edward Elgar.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:40:y:2004:i:2:p:51-70




Template-Type: ReDIF-Article 1.0
Author-Name: COSTAS KARFAKIS 
Author-X-Name-First: COSTAS 
Author-X-Name-Last: KARFAKIS 
Author-Name: DEMETRIOS MOSCHOS 
Author-X-Name-First: DEMETRIOS 
Author-X-Name-Last: MOSCHOS 
Title:         Predicting Currency Crises: Evidence from Two Transition Economies       
Abstract:
       This paper investigates the role of fundamentals in the speculative
 episodes experienced by the Czech Republic and Poland during the 1990s.
 The evidence suggests that the currency crises of the two Central and
 Eastern European countries are significantly related to macroeconomic
 fundamentals. The analysis has implications for the design of
 macroeconomic policies in transition economies and for the sustainability
 of an exchange rate commitment.    
Journal: Emerging Markets Finance and Trade 
Pages: 95-103 
Issue: 1 
Volume: 40 
Year: 2004 
Month: 1 
Keywords: currency crises, probit analysis, transition economies, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=GA8E1WH87H12CD1N 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Calvo, G.A. 1995.
 "Variates of Capital-Market Crises," University of Maryland, College
 Park.</BIBTEXT>      </REF>	  <REF>        <BIBL>2</BIBL>	    
 <BIBTEXT>Dornbusch, R., and A. Werner. 1994. "Mexico, Stabilization,
 Reform, and No Growth." Brookings Papers on Economic Activity 1:
 253-297.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Dornbusch, R.; I. Goldfajn; and R.O. Valdes. 1995. "Currency
 Crises and Collapses." Brookings Papers on Economic Activity 2:
 219-293.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>Eichengreen, B.; A.K. Rose; and C. Wyplosz. 1995. "Exchange
 Market Mayhem: The Antecedents and Aftermath of Speculative Attacks."
 Economic Policy 21: 251-296.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>5</BIBL>        <BIBTEXT>Flood, R., and N. Marion. 1999.
 "Perspectives on the Recent Currency Crisis Literature." International
 Journal of Finance and Economics 4, no. 1: 1-26.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>6</BIBL>	     <BIBTEXT>Garber, P.M., and L.E.O.
 Svensson. 1995. "The Operation and Collapse of Exchange Rate Regimes." In
 Handbook of International Economics, vol. 3, ed. G. Grossman and K.
 Rogoff, pp. 1865-1911. Amsterdam: North-Holland.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>7</BIBL>	     <BIBTEXT>Kaminsky, G.; S. Lizondo; and
 C.M. Reinhart. 1998. "Leading Indicators of Currency Crises." IMF Staff
 Papers 45, no. 1: 1-48.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>8</BIBL>        <BIBTEXT>Krugman, P. 1979. "A Model of
 Balance-of-Payments Crises." Journal of Money, Credit, and Banking 11, no.
 3: 311-325.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>	  
 <BIBTEXT>Moreno, R. 1995. "Macroeconomic Behaviour During Periods of
 Speculative Pressure or Realignment: Evidence from Pacific Basin
 Economies." Federal Reserve Bank of San Francisco Economic Review 3:
 3-16.</BIBTEXT>      </REF>	  <REF>        <BIBL>10</BIBL>	     
 <BIBTEXT>Pesaran, M.H., and A. Timmermann. 1992. "A Simple Nonparametric
 Test of Predictive Performance." Journal of Business and Economic
 Statistics 10, no. 4: 461-465.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>11</BIBL>	<BIBTEXT>Pesaran, M.H., and B. Pesaran. 1997.
 Working with Microfit 4.0. Oxford: Oxford University Press.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT>Sachs, J.D.; A.
 Tornell; and A. Velasco. 1996. "Financial Crises in Emerging Markets: The
 Lessons from 1995." Brookings Papers on Economic Activity 1:
 147-215.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:1:p:95-103




Template-Type: ReDIF-Article 1.0
Author-Name: JOHN E. ANDERSON 
Author-X-Name-First: JOHN E. 
Author-X-Name-Last: ANDERSON 
Title:         Tax Offsets or Netting Operations in Post-Soviet Public Finance       
Abstract:
       Post-Soviet economies are plagued by a public sector practice
 whereby the Ministry of Finance cancels tax liabilities that enterprises
 owe it in exchange for debts the Ministry owes enterprises. Although the
 practice seems innocuous enough to its practitioners, it has multiple
 distorting effects. Netting operations distort prices, prevent increased
 monetization of the economy, and hinder the pace of economic
 transformation in post-Soviet economies. This paper describes the practice
 of netting operations, draws an analogy with input-output models used in
 planned economies, and reveals the multiple distorting effects of netting
 operations.	
Journal: Emerging Markets Finance and Trade 
Pages: 27-41 
Issue: 3 
Volume: 39 
Year: 2003 
Month: 5 
Keywords: arrears, barter, economics of transformation, mutual settlements, netting operations, soft budget constraint, tax offsets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=NKUVT41R68VB8QJU 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Accounting Chamber of
 the Republic of Moldova. 1998. "Report of the Accounting Chamber of the
 Republic of Moldova on the Results of Control Over Public Material and
 Financial Resources Management and Utilization in 1997." Chisinau,
 Moldova.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT>Bahl, R.; G. Kourliandskaia; J. Mikesell; S. Wallace; N.
 Golovanova; D. Shiskin; A. Timofeev; A. Derugin; Y. Nikolayenko; I.
 Verbina; and N. Ninkova. 1999. "Intergovernmental Fiscal Relations in
 Leningrad Region." Working Paper 99-2, Andrew Young School of Policy
 Studies, Georgia State University, Atlanta.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>Blanchard, O. 1997. The
 Economics of Post-Communist Transition. Oxford: Clarendon Press.</BIBTEXT>
      </REF>	  <REF>        <BIBL>4</BIBL>	     <BIBTEXT>Commander,
 S., and C. Mumssen. 1998. "Understanding Barter in Russia." Working Paper
 No. 37, European Bank for Reconstruction and Development,
 London.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>       
 <BIBTEXT>Dunn, J., and D. Wetzel. 1999. "Fiscal Decentralization in Former
 Soviet Economies: Progress and Prospects." In National Tax Association
 Proceedings of the Ninety-Second Annual Conference, ed. D.A. Kenyon, pp.
 242-250, Washington, DC: National Tax Association.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>6</BIBL>        <BIBTEXT>Ericson, R.E. 1991. "The
 Classical Soviet-type Economy: Nature of the System and Implications for
 Reform." Journal of Economic Perspectives 5, no. 4: 11-28.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT>------. 1999a. "A
 Comment on 'The Anatomy of Russia's Virtual Economy.'" Department of
 Economics, Columbia University, New York.</BIBTEXT>	  </REF>      <REF>
	<BIBL>8</BIBL>	      <BIBTEXT>------. 1999b. "The Structural
 Barrier to Transition Hidden in Input-Output Tables of Centrally Planned
 Economies." Economic Systems 23, no. 3 (September): 199-224.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>9</BIBL>	 <BIBTEXT>Ericson, R.E.,
 and B.W. Ickes. 1999. "A Model of Russia's 'Virtual Economy.'" Department
 of Economics, Columbia University, New York.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT>Gaddy, C., and B.W. Ickes.
 1998a. "Beyond a Bailout: Time to Face Reality About Russia's 'Virtual
 Economy.'" Foreign Affairs 77, no. 5 (September-October): 53-67.</BIBTEXT>
      </REF>	  <REF>        <BIBL>11</BIBL>	      <BIBTEXT>------.
 1998b. "A Simple Four-Sector Model of Russia's 'Virtual' Economy."
 Brookings Institution, Washington, DC.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>12</BIBL>	    <BIBTEXT>------. 1998c. "To Restructure or Not
 to Restructure: Informal Activities and Enterprise Behavior in
 Transition." Working Paper, Brookings Institution, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>13</BIBL>	   
 <BIBTEXT>Hellman, J., and M. Schankerman. 2000. "The Nexus Between
 Enterprises and the State." Economics of Transition 8, no. 3:
 545-576.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT>Ickes, B.W., and R. Ryterman. 1992. "The Inter-Enterprise Arrears
 Crisis in Russia." Post-Soviet Affairs 13, no. 1 (January-March):
 19-41.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>       
 <BIBTEXT>IMF. 1999. "Republic of Moldova: Recent Economic Developments."
 IMF Staff Country Report No. 99/110, Washington, DC.</BIBTEXT>      </REF>
      <REF>	   <BIBL>16</BIBL>	  <BIBTEXT>Kornai, J. 1979.
 "Resource-Constrained Versus Demand-Constrained Systems." Econometrica 47,
 no. 4: 801-819.</BIBTEXT>	</REF>	    <REF>	 <BIBL>17</BIBL>   
     <BIBTEXT>------. 1980. Economics of Shortage. Amsterdam:
 North-Holland.</BIBTEXT>      </REF>	   <REF>	<BIBL>18</BIBL>    
    <BIBTEXT>Ledeneva, A.V. 1998. Russia's Economy of Favours: Blat,
 Networking and Informal Exchange. New York: Cambridge University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>19</BIBL>       
 <BIBTEXT>Maskin, E., and C. Xu. 2001. "Soft Budget Constraint Theories."
 Economics of Transition 9, no. 1: 1-27.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>20</BIBL>	     <BIBTEXT>Sundberg, M., and A. Morozov. 1999.
 "Benchmarking Public Expenditure Analysis in the Russian Federation:
 Mystery, Measurement, and Mismanagement." Paper presented at the annual
 meetings of the National Tax Association, Atlanta, Georgia.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>Treml, V.G. 1989.
 "The Most Recent Input-Output Table: A Milestone in Soviet Statistics."
 Soviet Economy 5, no. 4: 341-359.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>22</BIBL>	<BIBTEXT>Zauberman, A. 1976. Mathematical Theory in
 Soviet Planning. London: Oxford University Press.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:39:y:2003:i:3:p:27-41




Template-Type: ReDIF-Article 1.0
Author-Name: PETER COWHEY 
Author-X-Name-First: PETER 
Author-X-Name-Last: COWHEY 
Author-Name: MIKHAIL M. KLIMENKO 
Author-X-Name-First: MIKHAIL M. 
Author-X-Name-Last: KLIMENKO 
Title:         The New International Trade Regime in Telecommunication Services and Network Modernization in Transition Economies       
Abstract:
       This study assesses how developing and transition economies have
 fared in profiting from changes in the telecommunications market and
 examines the policy challenges that remain. It pays special attention to
 the global market and regulatory milieu fostered by the WTO Agreement of
 1997. The study asks what this latest transformation has taught us about
 wise management of this vital part of the infrastructure of the world's
 economy. It focuses on the economics of managing the transition to
 competition, the design of proper regulatory policies and processes, and
 the embedding of domestic telecommunications in the world market.    
Journal: Emerging Markets Finance and Trade 
Pages: 0-0 
Issue: 1 
Volume: 40 
Year: 2004 
Month: 1 
Keywords: economics of transition, international trade, telecommunication services, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=FM0MT9GUQNX3EGW0 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Arena, A. 1997. "The WTO
 Telecommunications Agreement: Some Personal Reflections." In TeleGeography
 1997/98: Global Telecommunications Traffic Statistics and Commentary, ed.
 G. Staple, pp. 25-32. Washington, DC: Telegeography.</BIBTEXT>      </REF>
      <REF>	   <BIBL>2</BIBL>	 <BIBTEXT>Bhagwati, J. 1994. "Fair
 Trade, Reciprocity and Harmonization: The New Challenge to the Theory and
 Policy of Free Trade." In Analytical and Negotiating Issues in the Global
 Trading System, ed. A. Deardorff and R. Stern, pp. 547-598. Ann Arbor:
 University of Michigan Press.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>3</BIBL>        <BIBTEXT>Braga, C.; A. Prinzo; E. Forestier; and P.
 Stern. 1999. "Developing Countries and the Accounting Rate Reform--A
 Technological and Regulatory El Nino?" Public Policy and the Private
 Sector, Note 172, World Bank, Washington, DC.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT>Brennan, T., and J. Boyd.
 1997. "Stranded Costs, Takings, and the Law and Economics of Implicit
 Contracts." Journal of Regulatory Economics 11, no. 1 (January):
 41-54.</BIBTEXT>      </REF>	   <REF>	<BIBL>5</BIBL>	     
 <BIBTEXT>Brno Broker Group, A.S. 2001. "Telekomunikacja Polska (TPSA)."
 Brno Broker Group, A.S., Brno (available at www.bbg.cz).</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Cave, M., and L.
 Waverman. 1998. "The Future of International Settlements."
 Telecommunications Policy 22, no. 11: 883-898.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT>Cowhey, P.F. 1990a. "The
 International Telecommunications Regime: The Political Roots of High
 Technology Regimes." International Organization 44, no. 2 (Spring):
 169-199.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT>------. 1990b. "Telecommunications." In Europe 1992: An American
 Perspective, ed. G. Hufbauer, pp. 159-224. Washington, DC: Brookings
 Institution Press.</BIBTEXT>	   </REF>      <REF>	    <BIBL>9</BIBL> 
       <BIBTEXT>------. 1999. "FCC Benchmarks and the Reform of the
 International Telecommunications Market." Telecommunications Policy 22,
 no. 11: 899-911.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>  
      <BIBTEXT>Cowhey, P.F., and M. Klimenko. 2001. "The WTO Agreement and
 Telecommunications Policy Reforms." World Bank Policy Research Paper
 #2601, Development Research Group, Washington, DC.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>11</BIBL>	<BIBTEXT>Cowhey, P.F., and J.
 Richards. 1999. "Dialing for Dollars: The Revolution in Communications
 Markets." In Coping with Globalization, ed. J. Hart and A. Prasash. New
 York: Routledge.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>  
      <BIBTEXT>Davies, G.; S. Carter; S. McIntosh; and D. Stefanescu. 1995.
 "Technology and Policy Options for the Telecommunications Sector."
 Telecommunications Policy 20, no. 2: 101-123.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT>Dokeniya, A. 1999.
 "Re-Forming the State: Telecom Liberalization in India."
 Telecommunications Policy 23, no. 2: 105-128.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT>Erikssen, R.; D. Kaserman;
 and J. Mayo. 1998. "Targeted and Untargeted Subsidy Schemes: Evidence from
 Postdivestiture Efforts to Promote Universal Telephone Service." Journal
 of Law and Economics 41, no. 2 (part 1, October): 477-502.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT>Espicom Business
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      <REF>	   <BIBL>16</BIBL>	  <BIBTEXT>------. 2001. Poland.
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 <BIBL>17</BIBL>	<BIBTEXT>European Commission. 1998. Fourth Report
 on the Implementation of the Telecommunications Regulatory Package.
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 <BIBL>18</BIBL>	<BIBTEXT>Europemedia. 2001. "Hungarian Government
 Puts Off 3G Licence Auction." Amsterdam, July 17 (available at
 www.europemedia.net/showfeature.asp?ArticleID=4566/).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>19</BIBL>	 <BIBTEXT>Financial Times.
 2001. "Survey--Czech Republic." Financial Times, December 12, p.
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 <BIBTEXT>Gerin, R. 2001. "Q&A Zbigniew Makowski: This Is Not About Being a
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 1995. "Assessing the General Agreement on Trade in Services." In The
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	<BIBL>23</BIBL>        <BIBTEXT>Hoski, H. 1998. "Liberalisation,
 Regulation and Universal Service Provision in the European
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       <BIBTEXT>Hruby, Z. 1997. "Czech Republic: Towards Limited
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 139-166. Hants, UK: Avebury.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>25</BIBL>	<BIBTEXT>IntelliNews. 2001. "Polish
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 <BIBL>31</BIBL>	<BIBTEXT>Laffont, J.-J., and J. Tirole. 2000.
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 Telecommunications Policy in Hungary." Organization for Economic
 Cooperation and Development, Paris.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>38</BIBL>	 <BIBTEXT>Ordover, J.; R. Pittman; and P. Clyde.
 1994. "Competition Policy for Natural Monopolies in a Developing Market
 Economy." Economics of Transition 2, no. 3 (September): 317-343.</BIBTEXT>
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 B.A. 1995. The Political Economy of Telecommunications Reform in
 Developing Countries. Westport, CT: Praeger.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>40</BIBL>	     <BIBTEXT>Röller, L., and L. Waverman.
 2001. "Telecommunications Infrastructure and Economic Development: A
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 <BIBTEXT>Szanyi, M. 1997. "The Economic Aspects of Transformation in the
 Hungarian Telecommunications Market." Russian and East European Finance
 and Trade 33, no. 2 (March- April): 19-40.</BIBTEXT>	   </REF>     
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 1988. Privatization: An Economic Analysis. Cambridge, MA: MIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>43</BIBL>       
 <BIBTEXT>Wallsten, S. 2001. "Telecommunications Investment and Traffic in
 Developing Countries: The Effect of International Settlement Rate
 Reforms." Journal of Regulatory Economics 20, no. 3 (November):
 307-323.</BIBTEXT>	 </REF>      <REF>	  <BIBL>44</BIBL>	
 <BIBTEXT>Warren, T. 2000. "The Impact on Output of Impediments to Trade
 and Investment in Telecommunications Services." In Impediments to Trade in
 Services, ed. C. Findlay and T. Warren, pp. 85-100. London and New York:
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 <BIBTEXT>Whalley, J., and C. Hamilton. 1996. The Trading System After the
 Uruguay Round. Washington, DC: Institute for International
 Economics.</BIBTEXT>	   </REF>      <REF>	    <BIBL>46</BIBL>	  
 <BIBTEXT>Wright, J. 1999. "International Telecommunications, Settlement
 Rates and the FCC." Journal of Regulatory Economics 15, no. 3 (May):
 267-291.</BIBTEXT>	 </REF>      <REF>	  <BIBL>47</BIBL>	
 <BIBTEXT>World Bank. 1999. "The World Bank Group Telecommunications
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 m).</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:1:p:0-0




Template-Type: ReDIF-Article 1.0
Author-Name: Igor  Filatotchev 
Author-X-Name-First: Igor  
Author-X-Name-Last: Filatotchev 
Author-Name: Natalia  Isachenkova 
Author-X-Name-First: Natalia  
Author-X-Name-Last: Isachenkova 
Author-Name: Tomasz  Mickiewicz 
Author-X-Name-First: Tomasz  
Author-X-Name-Last: Mickiewicz 
Title: Corporate Governance, Managers' Independence, Exporting, and Performance of Firms in Transition Economies 
Abstract:
 Using data on 157 large companies in Poland and Hungary, this paper
 employs Bayesian structural equation modeling to examine the relations
 among corporate governance, managers' independence from owners in terms of
 strategic decision making, exporting, and performance. Managers'
 independence is positively associated with firms' financial performance
 and exporting. In turn, the extent of managers' independence is negatively
 associated with ownership concentration, but positively associated with
 the percentage of foreign directors on the firm's board. We interpret
 these results as indicating that concentrated owners tend to constrain
 managerial autonomy at the cost of the firm's internationalization and
 performance, but board participation of foreign stakeholders enhances the
 firm's export orientation and performance by encouraging executives'
 decision-making autonomy.
Journal: Emerging Markets Finance and Trade 
Pages: 62-77 
Issue: 5 
Volume: 43 
Year: 2007 
Month: 10 
Keywords: corporate governance, exporting, performance, strategic independence, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=GQ1638GT176N736P 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agresti, A. 1996. >i>An
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 1-25.</BIBTEXT>      </REF>	  <REF>        <BIBL>6</BIBL>	    
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 Firms in Hungary and Poland." >i>Economics of Transition>/i> 15, no. 3:
 433-460.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
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 Economies: The Case of Czech Republic." >i>Strategic Management
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 Transition in Central Europe and the Commonwealth of Independent
 States.>/i> Houndmills, UK: Palgrave-Macmillan.</BIBTEXT>	</REF>	   
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 "Organizational Transformation During Institutional Upheaval." >i>Academy
 of Management Review>/i> 25, no. 3: 602-619.</BIBTEXT>      </REF>	
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 Directors and Firm Performance During Institutional Transitions."
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 1995. "Strategic Flexibility in Product Competition." >i>Strategic
 Management Journal>/i> 16 (Summer): 135-159.</BIBTEXT>      </REF>	
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 Carpenter. 1998. "Internationalization and Firm Governance: The Roles of
 CEO Compensation, Top Team Composition, and Board Structure." >i>Academy
 of Management Journal>/i> 41, no. 2: 158-178.</BIBTEXT>      </REF>	 
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 and A. Boomsma. 1999. "Bayesian Estimation and Testing of Structural
 Equation Models." >i>Psychometrika>/i> 64, 1 (March): 37-52.</BIBTEXT>    
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 D.; A. Thomas; and N. Best. 2000. >i>WinBUGS, Version 1.3 User Manual.>/i>
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 Hitt. 2003. "Organizational Transformation in Transition Economies:
 Resource-Based and Organizational Learning Perspectives." >i>Journal of
 Management Studies>/i> 40, no. 2: 257-282.</BIBTEXT>	   </REF>     
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 Pound. 1990. "Are Large Shareholders Effective Monitors? An Investigation
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 149-180. Chicago and London: University of Chicago Press.</BIBTEXT>	 
 </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:5:p:62-77




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Zubaidi Baharumshah 
Author-X-Name-First: Ahmad Zubaidi 
Author-X-Name-Last: Baharumshah 
Author-Name: Suleiman W. Almasaied 
Author-X-Name-First: Suleiman W. 
Author-X-Name-Last: Almasaied 
Title: Foreign Direct Investment and Economic Growth in Malaysia: Interactions with Human Capital and Financial Deepening 
Abstract:
 This paper explores the role of foreign direct investment (FDI) in
 economic growth in Malaysia, appropriately controlling for other proximate
 drivers of economic growth: domestic investment, exports, financial
 markets, and human capital. Domestic capital formation, FDI, human
 capital, and financial deepening significantly affect economic growth. FDI
 has a positive and significant effect on economic growth, but its effect
 is of lesser magnitude than that of domestic investment. Human capital and
 financial markets interact with FDI and, thus, are important for both
 short- and long-term growth processes. The results suggest that it is
 important to encourage domestic as well as foreign investment to put
 Malaysia back on its precrisis growth path.
Journal: Emerging Markets Finance and Trade 
Pages: 90-102 
Issue: 1 
Volume: 45 
Year: 2009 
Month: 1 
Keywords: domestic investment, economic growth, FDI, financial markets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=A81236075K327387 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aitken, B.J., and A.
 Harrison. 1999. "Do Domestic Firms Benefit from Direct Foreign Investment?
 Evidence from Venezuela." >i>American Economic Review>/i> 89, no. 3:
 605-618.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Akinlo, E. 2004. "Foreign Direct Investment and Growth in
 Nigeria: An Empirical Investigation." >i>Journal of Policy Modeling>/i>
 26, no. 5: 627-639.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>
	<BIBTEXT> Alfaro, L.; A. Chanda; S. Kalemli-Ozcan; and S. Sayek.
 2004. "FDI and Economic Growth: The Role of Local Financial Markets."
 >i>Journal of International Economics>/i> 64, no. 1: 89-112.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>4</BIBL>	 <BIBTEXT> Baharumshah,
 A.Z., and S. Rashid. 1999. "Exports, Imports, and Economic Growth in
 Malaysia: Empirical Evidence Based on Multivariate Time Series." >i>Asian
 Economic Journal>/i> 13, no. 4: 389-406.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>5</BIBL>	     <BIBTEXT> Balasubramanyam, V.N.; M. Salisu;
 and D. Sapsford. 1999. "Foreign Direct Investment as an Engine of Growth."
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 27-40.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT> Beck, T.; R. Levine; and N. Loayza. 2000. "Finance and Sources
 of Growth." >i>Journal of Financial Economics>/i> 58, nos. 1-2:
 261-300.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Bekaert, G.H.; R. Campbell; and C. Lundblad. 2005. "Does
 Financial Liberalization Spur Growth?" >i>Journal of Financial
 Economics>/i> 77, no. 1: 3-55.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Borensztein, E.; J. De Gregorio; and J.-W.
 Lee. 1998. "How Does Foreign Investment Affect Economic Growth?"
 >i>Journal of International Economics>/i> 45, no. 1: 115-135.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>9</BIBL>	  <BIBTEXT> Choe, J.I.
 2003. "Do Foreign Direct Investment and Gross Domestic Investment Promote
 Economic Growth?" >i>Review of Development Economics>/i> 7, no. 1:
 44-57.</BIBTEXT>      </REF>	   <REF>	<BIBL>10</BIBL>       
 <BIBTEXT> Coe, D.T.; E. Helpman; and A.W. Hoffmaister. 1997. "North-South
 R&D Spillovers." >i>Economic Journal>/i> 107, no. 440: 134-150.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Cohen, J.P.,
 and C.J.M. Paul. 2004. "Public Infrastructure Investment, Interstate
 Spatial Spillovers, and Manufacturing Costs." >i>Review of Economics and
 Statistics>/i> 86, no. 2: 551-560.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>12</BIBL>	<BIBTEXT> Darrat, A. 1999. "Are Financial Deepening
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 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Durham, J.B.
 2004. "Absorptive Capacity and the Effects of Foreign Direct Investment
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       <BIBL>20</BIBL>	      <BIBTEXT> Li, X., and X. Liu. 2005. "Foreign
 Direct Investment and Economic Growth: An Increasingly Endogenous
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 <BIBTEXT> Malaysia Statistics Department of Malaysia. 2003. >i>Yearbook of
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 "Financial Dependence and Growth." >i>American Economic Review>/i> 88, no.
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 <BIBTEXT> Ramirez, M.D., and N. Nazmi. 2003. "Public Investment and
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 Development Economics>/i> 7, no. 1: 115-126.</BIBTEXT>      </REF>	
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 2002. "Duality Theory and the Cost Function Analysis in a Regional
 Context: The Impact of Public Infrastructure Capital in the Greece
 Regions." >i>Annals of Regional Science>/i> 36, no. 1: 55-78.</BIBTEXT>   
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 and A.M. Warner. 1995. "Economic Reform and the Process of Global
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      <BIBL>33</BIBL>	     <BIBTEXT> Thanoon, M.A.-M., and A.Z.
 Baharumshah. 2003. "The Road to Recovery in Malaysia: A Three-Gap
 Analysis." >i>Journal of Policy Modeling>/i> 25, no. 8: 857-861.</BIBTEXT>
      </REF>	  <REF>        <BIBL>34</BIBL>	      <BIBTEXT> Wang, E.C.
 2002. "Public Infrastructure and Economic Growth: A New Approach Applied
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 411-436.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:45:y:2009:i:1:p:90-102




Template-Type: ReDIF-Article 1.0
Author-Name: HAKAN AKSOY 
Author-X-Name-First: HAKAN 
Author-X-Name-Last: AKSOY 
Author-Name: ISMAIL SAGLAM 
Author-X-Name-First: ISMAIL 
Author-X-Name-Last: SAGLAM 
Title:         Patience Extracts Sugar from a Lemon: Buy and Hold with a Classifier System in the Istanbul Stock Exchange       
Abstract:
       Recent studies in behavioral finance establish that active traders
 may underperform those who trade less. Such a result is partly due to the
 persistently high annual net returns earned by well-diversified portfolios
 in stock markets. This paper shows that the buy-and-hold strategy as a
 nonactive trading rule may yield huge net returns under the prescriptions
 of a classifier system, even in an extremely volatile and horizontal
 market, namely, the Istanbul Stock Exchange.	 
Journal: Emerging Markets Finance and Trade 
Pages: 50-61 
Issue: 1 
Volume: 42 
Year: 2006 
Month: 2 
Keywords: behavioral finance, classifier system, stock market, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=CHTM7G0GE93A3BF0 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Barber, B.M., and T.
 Odean. 2000. "Trading Is Hazardous to Your Wealth: The Common Stock
 Investment Performance of Individual Investors." Journal of Finance 55,
 no. 2: 773-806.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>    
    <BIBTEXT>------. 2001. "Boys Will Be Boys: Gender, Overconfidence, and
 Common Stock Investment." Quarterly Journal of Economics 116, no. 1:
 261-292.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Bildik, R., and S. Elekdag. 2004. "Effects of Price Limits on
 Volatility: Evidence from the Istanbul Stock Exchange." Emerging Markets
 Finance and Trade 40, no. 1 (January-February): 5-34.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT>Demirer, R., and
 M.B. Karan. 2002. "An Investigation of the Day-of-the-Week Effect on Stock
 Returns in Turkey." Emerging Markets Finance and Trade 38, no. 6
 (November-December): 47-77.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>5</BIBL>        <BIBTEXT>Guner, N., and Z. Onder. 2002. "Information
 and Volatility: Evidence from an Emerging Market." Emerging Markets
 Finance and Trade 38, no. 6 (November-De-cember): 26-46.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Holland, J.H.
 1975. Adaptation in Natural and Artificial Systems. Ann Arbor: University
 of Michigan Press.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL> 
       <BIBTEXT>Metin, K.; G. Muradoglu; and B. Yazici. 1997. "An Analysis
 of Day of the Week Effect on the ISE." Istanbul Securities Exchange Review
 1, no. 2: 15-27.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>   
     <BIBTEXT>Muradoglu, G., and D. Unal. 1994. "Weak Form Efficiency in
 the Thinly Traded Istanbul Securities Exchange." Middle East Business and
 Economic Review 6, no. 2: 37-44.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>9</BIBL>        <BIBTEXT>Odean, T. 1998. "Are Investors Reluctant to
 Realize Their Losses?" Journal of Finance 53, no. 5: 1775-1798.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT>------. 1999.
 "Do Investors Trade Too Much?" American Economic Review 89, no. 5:
 1279-1298.</BIBTEXT>	   </REF>      <REF>	    <BIBL>11</BIBL>	  
 <BIBTEXT>Sayin, G. 1993. "An Investigation of Anomalies at Istanbul
 Securities Exchange: Winner-Loser Effect." MBA Thesis, Department of
 Management, Bilkent University, Ankara.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:42:y:2006:i:1:p:50-61




Template-Type: ReDIF-Article 1.0
Author-Name: AHMET &Ccedil;IMENOGLU 
Author-X-Name-First: AHMET 
Author-X-Name-Last: &Ccedil;IMENOGLU 
Author-Name: NURHAN YENTÜRK 
Author-X-Name-First: NURHAN 
Author-X-Name-Last: YENTÜRK 
Title:         Effects of International Capital Inflows on the Turkish Economy       
Abstract:
       The main objective of this study is to investigate the effects of
 international capital inflows on the Turkish economy. Capital inflows, it
 is argued, can trigger both private consumption and investment
 expenditures. Increased consumption demand results in an increase in the
 relative prices of nontradable sectors with respect to tradable sectors.
 This eventually leads to a change in the composition of investments in
 favor of nontradable at the expense of tradable sectors. Increased
 investment in nontradable sectors does not contribute to the foreign
 exchange earning capacity of a country, and, given such, a country
 eventually becomes more vulnerable to currency shock. This can trigger
 major problems, such as significant capital outflows, large current
 account deficits, currency crisis, and economic contraction.	 
Journal: Emerging Markets Finance and Trade 
Pages: 90-109 
Issue: 1 
Volume: 41 
Year: 2005 
Month: 1 
Keywords: capital inflows, currency crisis, tradable and nontradable sectors, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G92709X7FDCEK8EP 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Bosworth, B., and S.M.
 Collins. 1999. "Capital Flows to Developing Economies: Implications for
 Saving and Investment." Brookings Papers on Economic Activity 1:
 143-180.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT>Calvo, G.A., and C.A. Végh. 1997. "Inflation Stabilization and
 BOP Crises in Developing Countries." In Handbook of Macroeconomics, ch.
 24. Amsterdam: North-Holland.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>3</BIBL>        <BIBTEXT>Corden, M.V. 1994. Economic Policy,
 Exchange Rates, and the International System. Oxford: Oxford University
 Press, and Chicago: University of Chicago Press.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>4</BIBL>	     <BIBTEXT>Eichengreen, B.; A. Rose; and
 C. Wyplosz. 1996. "Contagious Currency Crises." National Bureau of
 Economic Research Working Paper no. W5681, Cambridge, MA, July.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT>Eichengreen,
 B.; P. Masson; H. Bredenkamp; B. Johnston; J. Hamann; E. Jadresic; and I.
 Otker. 1998. "Exit Strategies: Policy Options for Countries Seeking
 Greater Exchange Rate Flexibility." Occasional Paper no. 168,
 International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT>Ersel, H. 1996. "The Timing of
 Capital Account Liberalization: The Turkish Experience." New Perspectives
 on Turkey 15 (Fall): 45-64.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>7</BIBL>        <BIBTEXT>Frankel, J.A., and A.K. Rose. 1996.
 "Currency Crashes in Emerging Markets: An Empirical Treatment." Journal of
 International Economics 41, nos. 3-4: 351-366.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT>Ghosh, S., and M. Pangestu.
 1999. "Indonesia: Macro-Financial Linkages and Build Up of
 Vulnerabilities." Paper prepared for the Asian Development Bank-World Bank
 Study on Managing Global Financial Integration in Asia: Emerging Lessons
 and Prospective Challenges, March.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>9</BIBL>        <BIBTEXT>Goldfajn, I., and R.O. Valdés. 1997.
 "Capital Flows and the Twin Crises: The Role of Liquidity." Working Paper
 no. 87, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF>
      <REF>	   <BIBL>10</BIBL>	  <BIBTEXT>Hamann, J. 2001.
 "Exchange-Rate-Based Stabilization: A Critical Look at the Stylized
 Facts." IMF Staff Papers 48, no. 1: 4-32.</BIBTEXT>	  </REF>      <REF>
	<BIBL>11</BIBL>        <BIBTEXT>Institute of International Finance.
 2003. "Capital Flows to Emerging Market Economies." Washington, DC,
 January.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT>Kamin, S.B. 1996. "Real Exchange Rates and Inflation in Exchange
 Rate Based Stabilisations: An Empirical Examination." Board of Governors
 of the Federal Reserve System, International Finance Discussion Paper no.
 554, Washington, DC, June.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>13</BIBL>	<BIBTEXT>Kaminsky, G., and C. Reinhart. 1999. "The
 Twin Crises: The Causes of Banking and Balance of Payments Problems."
 American Economic Review 89, no. 3: 473-500.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT>Kaminsky, G.; S. Lizondo; and
 C. Reinhart. 1997. "Leading Indicators of Currency Crises." Working Paper
 no. 79, International Monetary Fund, Washington, DC, July.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>15</BIBL>	 <BIBTEXT>Kiguel, M., and
 N. Liviatan. 1992. "The Business Cycle Associated with Exchange Rate Based
 Stabilization." World Bank Economic Review 6, no. 2 (May):
 279-305.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT>Mussa, M.; P. Masson; A. Swoboda; E. Jadresic; P. Mauro; and A.
 Berg. 2000. "Exchange Rate Regimes in an Increasingly Integrated World
 Economy." Occasional Paper no. 193, International Monetary Fund,
 Washington, DC, August.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>17</BIBL>	<BIBTEXT>Obstfeld, M. 1998. "The Global Capital
 Market: Benefactor or Menace?" National Bureau of Economic Research
 Working Paper no. 6559, May, Cambridge, MA.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT>&Ouml;nis*, Z. 1996.
 "Globalisation and Financial Blow-Ups in the Semi-Periphery: Perspectives
 on Turkey's Financial Crisis of 1994." New Perspectives on Turkey 15
 (Fall): 45-64.</BIBTEXT>      </REF>	   <REF>	<BIBL>19</BIBL>    
    <BIBTEXT>Radelet, S., and J.D. Sachs. 1998. "The East Asian Financial
 Crisis: Diagnosis, Remedies, Prospects." Brooking Papers on Economic
 Activity 1: 1-90.</BIBTEXT>	  </REF>      <REF>	   <BIBL>20</BIBL> 
       <BIBTEXT>Rebelo, S., and C.A. Végh. 1995. "Real Effects of Exchange
 Rate Based Stabilization: An Analysis of Competing Theories." National
 Bureau of Economic Research Working Paper no. 5197, July, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>21</BIBL>	   
 <BIBTEXT>Reinhart, C., and V. Reinhart. 1998. "Some Lessons for Policy
 Makers Dealing with the Mixed Blessing of Capital Flows." In Capital Flows
 and Financial Crises, ed. M. Kahler. New York: Council on Foreign
 Relations Press.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>  
      <BIBTEXT>Reinhart, C., and C.A. Végh. 1995. "Do Exchange Rate Based
 Stabilisations Carry the Seeds of Their Own Destruction?" International
 Monetary Fund, Washington, DC, October.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>23</BIBL>	     <BIBTEXT>Rodriguez, F., and D. Rodrik. 2000.
 "Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National
 Evidence." In NBER Macro Annual 2000, ed. B. Bernanke and K. Rogoff.
 Cambridge, MA: National Bureau of Economic Research.</BIBTEXT>      </REF>
      <REF>	   <BIBL>24</BIBL>	  <BIBTEXT>Rodrik, D. 1991.
 "Premature Liberalisation, Incomplete Stabilisation: The &Ouml;zal Decade
 in Turkey." In Lessons of Economic Stabilisation and Its Aftermath, ed. M.
 Bruno et al. Cambridge, MA: MIT Press.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>25</BIBL>	    <BIBTEXT>Sachs, J.D.; A. Tornell; and A.
 Velasco. 1996. "Financial Crises in Emerging Markets: The Lessons from
 1995." Brookings Papers on Economic Activity 1: 147-215.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>26</BIBL>	 <BIBTEXT>Serven, L., and
 A. Solimano. 1993. Striving for Growth After Adjustment: The Role of
 Capital Formation. Washington, DC: World Bank.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>27</BIBL>	     <BIBTEXT>Taylor, M.P., and L. Sarno.
 1997. "Capital Flows to Developing Countries: Long and Short-Term
 Determinants." World Bank Economic Review 11, no. 3: 451-470.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>28</BIBL>	   <BIBTEXT>Ulengin, B.,
 and N. Yentürk. 2001. "Impacts of Capital Flows on Aggregate Spending
 Categories: The Case of Turkey." Applied Economics 33:
 1321-1328.</BIBTEXT>	   </REF>      <REF>	    <BIBL>29</BIBL>	  
 <BIBTEXT>Végh, C.A. 1992. "Stopping High Inflation: An Analytical
 Overview." IMF Staff Papers vol. 39, no. 3 (September).</BIBTEXT>     
 </REF>      <REF>	  <BIBL>30</BIBL>	 <BIBTEXT>Yeldan, E. 2001.
 Küreselles*me Sürecinde Türkiye Ekonomisi (Turkish Economy in the Process
 of Globalization), Istanbul.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>31</BIBL>	<BIBTEXT>Yentürk, N. 1998. "Ajustement et
 accumulation: La Turquie" [Adjustment and Accumulation: Turkey]. Canadian
 Journal of Development Studies 19, no. 1: 55-78.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>32</BIBL>	      <BIBTEXT>------. 1999. "Short-Term
 Capital Inflows and Their Impact on Macroeconomic Order: Turkey in the
 1990s." Developing Economies 37, no. 1: 89-113.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:41:y:2005:i:1:p:90-109




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 1 
Volume: 42 
Year: 2006 
Month: 2 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=DP4TTJDHVTG27091 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:42:y:2006:i:1:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Pierre L. Siklos 
Author-X-Name-First: Pierre L. 
Author-X-Name-Last: Siklos 
Title: Inflation Targeting Around the World 
Abstract:
 This paper examines the inflation record of twenty-nine inflation- and
 noninflation-targeting economies. Both industrial and emerging market
 economies are considered. Empirical evidence is based on a comparison of
 actual and forecasted inflation, an econometric analysis that estimates
 changes in inflation persistence, and an estimate of the probability of a
 breach in the inflation target as a proxy for the fragility of the
 targeting regime. I find that inflation persistence has fallen in only a
 handful of emerging market economies. However, the inflationtargeting
 regime is not especially fragile in emerging market economies. As these
 economies gain experience with inflation targets and respond appropriately
 to forecast errors generated by the private sector, the likelihood of
 breaches in the target ranges tends to fall.
Journal: Emerging Markets Finance and Trade 
Pages: 17-37 
Issue: 6 
Volume: 44 
Year: 2008 
Month: 11 
Keywords: emerging markets, inflation persistence, inflation targeting, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=05085WU261189658 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alfaro, L. 2005.
 "Inflation, Openness, and Exchange Rate Regimes: The Quest for Short-Term
 Commitment." >i>Journal of Development Economics>/i>>b>77>/b> (June):
 229-249.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Ball, L., and N. Sheridan. 2005. "Does Inflation Targeting
 Matter?" In >i>The Inflation Targeting Debate>/i>, ed. B. S. Bernanke and
 M. Woodford, pp. 249-276. Chicago: University of Chicago Press.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Bernanke, B.
 S.; T. Laubach; F. Mishkin; and A. Posen. 1999. >i>Inflation Targeting:
 Lessons from the International Experience.>/i> Princeton: Princeton
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>4</BIBL>  
      <BIBTEXT> Borio, C., and A. Filardo. 2007. "Globalization and
 Inflation: New Cross-Country Evidence on the Global Determinants of
 Domestic Inflation." Working Paper 227, Bank for International
 Settlements, Basel, May.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>5</BIBL>        <BIBTEXT> Burdekin, R. C. K., and P. L. Siklos.
 1999. "Exchange Rate Regimes and Shifts in Inflation Persistence: Does
 Nothing Else Matter?" >i>Journal of Money, Credit, and
 Banking>/i>>b>31>/b>, no. 2 (May): 235-247.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT> Carare, A., and M. R. Stone.
 2006. "Inflation Targeting Regimes." >i>European Economic
 Review>/i>>b>50>/b>, no. 5: 1297-1315.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>7</BIBL>	   <BIBTEXT> Carare, A.; A. Schechter; M. Stone;
 and M. Zelmer. 2002. "Establishing Initial Conditions in Support of
 Inflation Targeting." Working Paper 102, International Monetary Fund,
 Washington, DC, June.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Ca'Zorzi, M.; E. Hahn; and M. SÃ¡nchez.
 2007. "Exchange Rate Pass-Through in Emerging Markets." Working paper 739
 (March), European Central Bank, Frankfurt.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT> Dueker, M.J, and A. M.
 Fischer. 2006. "Do Inflation Targeters Outperform Nontargeters?" >i>Review
 of the Federal Reserve Bank of St. Louis>/i>>b>88>/b>, no. 5
 (September-October): 431-450.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>10</BIBL>	<BIBTEXT> Eijffinger, S. C. W., and P. Geraats.
 2006. "How Transparent Are Central Banks?" >i>European Journal of
 Political Economy>/i>>b>22>/b>, no. 1: 1-21.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Giavazzi, F., and F. S.
 Mishkin. 2006. "An Evaluation of Swedish Monetary Policy Between 1995 and
 2005." Report commissioned by the Swedish Riksdag, Stockholm, November
 28.</BIBTEXT>	    </REF>	<REF>	     <BIBL>12</BIBL>	   
 <BIBTEXT> Heenan, G.; M. Peter; and S. Roger. 2006. "Implementing
 Inflation Targeting: Institutional Arrangements, Target Design, and
 Communication." Working Paper 278, International Monetary Fund,
 Washington, DC, December.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>13</BIBL>	<BIBTEXT> Johnson, D. 2002. "The Effect of
 Inflation Targeting on the Behavior of Expected Inflation: Evidence from
 an 11-Country Panel." >i>Journal of Monetary Economics>/i>>b>49>/b>, no. 8
 (November): 1521-1538.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>14</BIBL>	<BIBTEXT> Kohn, D. L. 2000. "Report to the
 Nonexecutive Directors of the Court of the Bank of England on Monetary
 Policy Processes and the Work of Monetary Analysis." Bank of England,
 London, October.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>  
      <BIBTEXT> Krause, S., and F. MÃ©ndez. 2008. "Institutions,
 Arrangements, and Preferences for Inflation Stability: Evidence and
 Lessons from a Panel Data Analysis." >i>Journal of
 Macroeconomics>/i>>b>30>/b>, no. 1: 282-307.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Levy-Yeyati, E., and F.
 Sturzenegger. 2005. "Classifying Exchange Rate Regimes: Deeds vs. Words."
 >i>European Economic Review>/i>>b>49>/b>, no. 6 (August):
 1603-1635.</BIBTEXT>	   </REF>      <REF>	    <BIBL>17</BIBL>	  
 <BIBTEXT> Mishkin, F. S. 2004. "Can Inflation Targeting Work in Emerging
 Market Countries?" Working Paper 10646, National Bureau of Economic
 Research, Cambridge, MA, July.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>18</BIBL>	<BIBTEXT> Mishkin, F. S., and K. Schmidt-Hebbel.
 2007. "Does Inflation Targeting Make a Difference?" Working Paper 12876,
 National Bureau of Economic Research, Cambridge, MA, January.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>19</BIBL>	   <BIBTEXT> Roger, S., and
 M. Stone. 2005. "On Target? The International Experience with Achieving
 Inflation Targets." Working Paper 163, International Monetary Fund,
 Washington, DC, August.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>20</BIBL>	<BIBTEXT> Romer, D. 1993. "Openness and Inflation:
 Theory and Evidence." >i>Quarterly Journal of Economics>/i>>b>108>/b>
 (November): 869-903.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>21</BIBL>	<BIBTEXT> Rose, A. 2006. "A Stable International
 Monetary System Emerges: Inflation Targeting Is Bretton Woods, Reversed."
 Working Paper 12711, National Bureau of Economic Research, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>22</BIBL>	   
 <BIBTEXT> Siklos, P. L. 1999. "Inflation Target Design: Changing Inflation
 Performance and Persistence in Industrial Countries." >i>Review of the
 Federal Reserve Bank of St. Louis>/i>>b>81>/b>, no. 2 (March-April):
 47-58.</BIBTEXT>      </REF>	   <REF>	<BIBL>23</BIBL>       
 <BIBTEXT> Siklos, P. L. 2002. >i>The Changing Face of Central Banking:
 Evolutionary Trends Since World War II.>/i> Cambridge: Cambridge
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>24</BIBL> 
       <BIBTEXT> Sims, C. 2005. "Rational Inattention: A Research Agenda."
 Discussion Paper 35, Deutsche Bundesbank, Frankfurt.</BIBTEXT>      </REF>
      <REF>	   <BIBL>25</BIBL>	  <BIBTEXT> Svensson, L. E. O.
 2001. "Independent Review of the Operation of Monetary Policy in New
 Zealand: Report to the Minster of Finance." New Zealand Treasury,
 Wellington, February.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>26</BIBL>	<BIBTEXT> Vega, C., and D. Winkelried. 2005.
 "Inflation Targeting and Inflation Behavior: A Successful Story?"
 >i>International Journal of Central Banking>/i>>b>1>/b>, no. 3 (December):
 153-175.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:6:p:17-37




Template-Type: ReDIF-Article 1.0
Author-Name: VLADIMER PAPAVA 
Author-X-Name-First: VLADIMER 
Author-X-Name-Last: PAPAVA 
Title:         On the Role of the International Monetary Fund in the Post-Communist Transformation of Georgia       
Abstract:
       The paper analyzes the role of the International Monetary Fund (IMF)
 in the process of economic development of independent Georgia. Remarkable
 achievements have been accomplished in cooperation between post-Communist
 Georgia and the IMF. There were some errors too. Most of the latter should
 be attributed to the Georgian Government. The main achievements are
 creation of the legal framework of the country's financial system
 regulating market-based budgetary and monetary processes, successful
 implementation of the currency reform, liberalization of prices, and
 external trade. The main errors are political, methodical and
 methodological, resulting from confusion and a stereotyped approach, and
 tactical, resulting from the abuse of powers. At the same time, without
 financial and political assistance of the West, it will be practically
 impossible for Georgia to preserve its national independence. As a result,
 the IMF is a strategic partner of Georgia's, and it has to stay to remain
 so even after Georgia has overcome its current position of recipient
 country.    
Journal: Emerging Markets Finance and Trade 
Pages: 5-26 
Issue: 5 
Volume: 39 
Year: 2003 
Month: 9 
Keywords: Georgia, International Monetary Fund, post-Communist transformation, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=KETTKXMV7DD0BRC6 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>&Aring;slund, A. 1995.
 How Russia Became a Market Economy. Washington, DC: Brookings
 Institution.</BIBTEXT>      </REF>	 <REF>	      <BIBL>2</BIBL>	   
 <BIBTEXT>Becker, G.S. 1998. "A Free-Market Winner vs. a Soviet-Style
 Loser." Business Week 31, no. 3573-903 (August 3): 12.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>Canto, V.A.; D.H.
 Joiness; and A.B. Laffer. 1983. Foundations of Supply-Side Economics:
 Theory and Evidence. New York: Academic Press.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT>Chappell, P. 1990. "The
 Assault on Fiscal Privilege: A Simpler System with Lower Tax Rates." In
 Which Road to Fiscal Neutrality, ed. P. Chappell, J. Kay, and B. Robinson,
 pp. 39-48. London: IEA.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>5</BIBL>        <BIBTEXT>De Gregorio, J.; B. Eichengreen; T. Ito;
 and C. Wyplosz. 1999. An Independent and Accountable IMF. Geneva:
 ICMB.</BIBTEXT>      </REF>	  <REF>        <BIBL>6</BIBL>	    
 <BIBTEXT>EC (European Commission). 1999. National Food Policy for Georgia
 [in Georgian]. Tbilisi, Georgia: European Commission Food Program,
 RESAL--The EU Food Network.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>7</BIBL>        <BIBTEXT>Gachechiladze, R. 1995. The New Georgia:
 Space, Society, Politics. London: UCL Press.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT>Gandhi, V.P.; L.P. Ebrill;
 G.A. Mackenzie; L.A. Mañas-Antón; J.R. Modi; S. Richupan; F.
 Sanchez-Ugarte; and P. Shome. 1987. Supply-Side Tax Policy: Its Relevance
 to Developing Countries. Washington, DC: IMF.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT>Gomulka, S. 1995. The
 IMF-Supported Programs of Poland and Russia, 1990-1994: Principles, Errors
 and Results: Studies & Analyses 36. Warsaw: CASE.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>10</BIBL>        <BIBTEXT>Gotsiridze, R., and O.
 Kandelaki. 2001. "Georgia: Halfway Reforms as a Factor of the Economic
 Crisis." Central Asia and the Caucasus 6: 179-188.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>11</BIBL>	<BIBTEXT>Gurgenidze, L.; M.
 Lobzhanidze; and D. Onoprishvili. 1994. "Georgia: From Planning to
 Hyperinflation." Communist Economies & Economic Transformation, 6, no. 2:
 259-289.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT>Horn, V., and M. Zurek. 1998. An Impact of a 20% VAT on Georgia
 Agriculture: Analysis [in Georgian]. Bonn: GTZ.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT>IBRD (International Bank for
 Reconstruction and Development). 1991. Lessons of Tax Reform. Washington,
 DC: World Bank.</BIBTEXT>	</REF>	    <REF>	 <BIBL>14</BIBL>   
     <BIBTEXT>IMF. 1991. A Study of the Soviet Economy, vol. 3. Paris:
 OECD.</BIBTEXT>      </REF>	  <REF>        <BIBL>15</BIBL>	     
 <BIBTEXT>------. 1997. Reliable Governance: The Role of IMF. Washington,
 DC: IMF.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT>------. 2000. Georgia: Tax Policy Review. Washington, DC:
 IMF.</BIBTEXT>      </REF>	 <REF>	      <BIBL>17</BIBL>	    
 <BIBTEXT>Krugman, P. 1998. The Accidental Theorist: And Other Dispatches
 from the Dismal Science. New York: W.W. Norton.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT>Lavigne, M. 1995. The
 Economics of Transition: From Socialist Economy to Market Economy. New
 York: St. Martin's Press.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>19</BIBL>	<BIBTEXT>Mankiw, N.G. 1992. Macroeconomics. New
 York: Worth.</BIBTEXT>      </REF>	 <REF>	      <BIBL>20</BIBL>	   
  <BIBTEXT>------. 1998. Principles of Economics. Fort Worth: Dryden
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>21</BIBL>       
 <BIBTEXT>Papava, V. 1995. "The Georgian Economy: Problems of Reform."
 Eurasian Studies 2, no. 2: 52-62.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>22</BIBL>	<BIBTEXT>------. 1996a. "The Georgian Economy: From
 'Shock Therapy' to 'Social Promotion.'" Communist Economies & Economic
 Transformation 8, no. 8: 251-267.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>23</BIBL>	<BIBTEXT>------. 1996b. "'Social Promotion' of
 Economic Reform in Georgia." Economic Systems 20, no. 4:
 305-314.</BIBTEXT>	 </REF>      <REF>	  <BIBL>24</BIBL>	
 <BIBTEXT>------. 1999. "The Georgian Economy: Main Directions and Initial
 Results of Reforms." In Systemic Change in Post-Communist Economies:
 Selected Papers from the Fifth World Congress of Central and East European
 Studies, Warsaw, 1995, ed. P.G. Hare, pp. 266- 292. London:
 Macmillan.</BIBTEXT>	   </REF>      <REF>	    <BIBL>25</BIBL>	  
 <BIBTEXT>Rondeli, A. 2001. "The Choice of Independent Georgia." In The
 Security of the Caspian Sea Region, ed. G. Chufrin, pp. 195-211. New York:
 Oxford University Press.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>26</BIBL>	<BIBTEXT>Shevardnadze, E. 1999. Great Silk Route.
 TRACECA-PETrA. Transport Corridor Europe-Caucasus-Asia. The Eurasian
 Common Market. Political and Economic Aspects. Tbilisi, Georgia: Georgian
 Transport System.</BIBTEXT>	  </REF>      <REF>	   <BIBL>27</BIBL> 
       <BIBTEXT>Shome, P., ed. 1995. Tax Policy Handbook. Washington, DC:
 IMF.</BIBTEXT>      </REF>	 <REF>	      <BIBL>28</BIBL>	    
 <BIBTEXT>Slemrod, J., and J. Bakija. 1996. Taxing Ourselves: A Citizen's
 Guide to the Great Debate Over Tax Reform. Cambridge, MA: MIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>29</BIBL>       
 <BIBTEXT>Steinmo, S. 1993. Taxation and Democracy. Swedish, British, and
 American Approaches to Financing the Modern State. New Haven: Yale
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>30</BIBL> 
       <BIBTEXT>Stiglitz, J.E. 1996. Whither Socialism? Cambridge, MA: MIT
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>31</BIBL>       
 <BIBTEXT>------. 1999. "The World Bank at the Millennium." Economic
 Journal 109, no. 459: F577-F597.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>32</BIBL>	<BIBTEXT>Tait, A.A. 1988. Value Added Tax:
 International Practice and Problems. Washington, DC: IMF.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>33</BIBL>	 <BIBTEXT>Tanzi, V. 1992.
 "Fiscal Restructuring and the Tax System." In Structural Adjustment and
 Macroeconomic Policy Issues, ed. V.A. Jafarey, pp. 38-55. Washington, DC:
 IMF.</BIBTEXT>      </REF>	 <REF>	      <BIBL>34</BIBL>	    
 <BIBTEXT>Tanzi, V., ed. 1993. Fiscal Policies in Economies in Transition.
 Washington, DC: IMF.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>35</BIBL>	<BIBTEXT>------ 1994. Transition to Market: Studies
 in Fiscal Reform. Washington, DC: IMF.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>36</BIBL>	    <BIBTEXT>Vishnevski, V., and D. Lipnitski.
 2000. "Assessing Feasibility of Reduced Tax Burden in Transitional
 Economy" [in Russian]. Voprosy ekonomiki 2: 107-116.</BIBTEXT>      </REF>
      <REF>	   <BIBL>37</BIBL>	  <BIBTEXT>Wang, J.-Y. 1998. "From
 Coupon to Lari: Heperinflation and Stabilization in Georgia." Caucasica:
 The Journal of Caucasian Studies 1: 195-198.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>38</BIBL>	     <BIBTEXT>Wellisz, S. 1996. Georgia: A
 Brief Survey of Macroeconomic Problems and Policies: Studies & Analyses
 87. Warsaw: CASE.</BIBTEXT>	  </REF>      <REF>	   <BIBL>39</BIBL> 
       <BIBTEXT>Zevin, L. 2001. "IMF and Russia: Eight Years of Difficult
 Dialogue" [in Russian]. Mirovaja ekonomika i mezdunarodnye otnosenija 4:
 14-20.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:39:y:2003:i:5:p:5-26




Template-Type: ReDIF-Article 1.0
Author-Name: CHANGHONG PEI 
Author-X-Name-First: CHANGHONG 
Author-X-Name-Last: PEI 
Title:         Asian Financial Cooperation: Priority to Develop Bilateral Bond Markets       
Abstract:
       This paper discusses and examines the development of an Asian bond
 market, which serves as a bridge to establish financial cooperation in the
 region. The issues of currency denomination are discussed. In addition,
 the role that China may play in the establishment of the bond market is
 presented and analyzed. It is argued that cooperation between China and
 Hong Kong is desirable to further enhance the development of the market.   
Journal: Emerging Markets Finance and Trade 
Pages: 75-82 
Issue: 5 
Volume: 41 
Year: 2005 
Month: 10 
Keywords: Asian bond market, China&#146s economic role, financial cooperation, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=47FTD7EGUQA0V9LM 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Asian Development Bank.
 Various dates. "Asian Development Outlooks." Mandaluyong City, Philippines
 (available at www.asiandevbank.org).</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>2</BIBL>	 <BIBTEXT>Chen, Y. 2003. "Monetary Cooperation in
 Eastern Asia." Paper presented at the China and East Asia: Prospect of
 Financial Cooperation Conference, Beijing, October 12.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>International
 Monetary Fund (IMF). Various dates. World Economic Outlook. Washington,
 DC: IMF.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>Jing, X. 2003. "Economic Cooperation on East Asia." Paper
 presented at the China and East Asia: Prospect of Financial Cooperation
 Conference, Beijing, October 12.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>5</BIBL>        <BIBTEXT>Li, Y. 2003. "Financial Cooperation in East
 Asian Region." Paper presented at the China and East Asia: Prospect of
 Financial Cooperation Conference, Beijing, October 12.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Zhang, Y. 2002.
 "Research on Economic Cooperation in East Asia." Working Paper, Press of
 Social Sciences Documentation, Beijing.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>7</BIBL>	    <BIBTEXT>------. 2003. "Financial Cooperation
 in East Asian Region." Paper presented at China and East Asia: Prospect of
 Financial Cooperation conference, Beijing, October 12.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:5:p:75-82




Template-Type: ReDIF-Article 1.0
Author-Name: KAREL JANDA 
Author-X-Name-First: KAREL 
Author-X-Name-Last: JANDA 
Author-Name: DANIEL MÜNICH 
Author-X-Name-First: DANIEL 
Author-X-Name-Last: MÜNICH 
Title:         The Intra-Industry Trade of the Czech Republic in the Economic Transition       
Abstract:
       In this paper, we provide an overview of the development of Czech
 trade and its structure and investigate the nature of Czech intra-industry
 trade (IIT) and its labor market determinants. We evaluate the evolution
 of the Czech trade in the context of other transition economies--the
 Central European Free Trade Agreement (CEFTA) countries, the Baltic
 countries, and the Commonwealth of Independent States (CIS). In our
 analysis, we use decomposition of IIT into vertical and horizontal
 components. The Czech Grubel-Lloyd index (GLI) of 75 percent at the SITC
 two-digit level is still somehow lower than the values for comparable EU
 countries, but this difference is not high. This indicates a relatively
 high level of Czech integration into European and world economies. This
 result is supported by the comparison of IIT in the trade between the
 European Union and seven European transition economies undertaken by
 Fidrmuc (2000), showing that the Czech Republic has the highest IIT out of
 all these countries. Also, the structure of Czech IIT with respect to its
 horizontal and vertical elements is comparable with the structure of IIT
 in EU countries. The results of our cross-industry analysis of labor
 market determinants of IIT show that qualitative characteristics of the
 labor force are statistically significant predictors for IIT after
 controlling for time changes and character of industry.    
Journal: Emerging Markets Finance and Trade 
Pages: 27-50 
Issue: 2 
Volume: 40 
Year: 2004 
Month: 3 
Keywords: economic transition, intra-industry trade, labor, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=6JTG49E5YDY7NWDN 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Zamrazilova, E. 2000.
 "External Imbalance: The Czech Case." Eastern European Economics 38, no. 3
 (May-June): 82-94.</BIBTEXT>	   </REF>      <REF>	    <BIBL>2</BIBL> 
       <BIBTEXT>Bano, S.S. 1991. Intra-Industry International Trade: The
 Canadian Experience. Aldershot, UK: Avebury.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>Bergstrand, J.H. 1990. "The
 Hecksher-Ohlin-Samuelson Model, the Linder Hypothesis and the Determinants
 of Bilateral Intra-Industry Trade." Economic Journal 100, no. 403
 (December): 1216-1229.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>4</BIBL>        <BIBTEXT>Blanes, J.V., and C. Martin. 2000. "The
 Nature and Causes of Intra-Industry Trade: Back to the Comparative
 Advantage Explanation? The Case of Spain." Weltwirtschaftliches Archiv
 136, no. 3: 423-441.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>5</BIBL>        <BIBTEXT>Brulhart, M. 2000. "Dynamics of
 Intraindustry Trade and Labor-Market Adjustment." Review of International
 Economics 8, no. 3: 420-435.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>6</BIBL>        <BIBTEXT>Dixit, A., and V. Norman. 1980. Theory of
 International Trade, 1st ed. Cambridge: Cambridge University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	     
 <BIBTEXT>Falvey, R.E. 1981. "Commercial Policy and Intra-Industry Trade."
 Journal of International Economics 11, no. 4 (November):
 495-511.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT>Ferto, I., and L.J. Hubbard. 2002. "Intra-Industry Trade in
 Horizontally and Vertically Differentiated Agri-Food Products Between
 Hungary and the EU." Discussion Paper 2002/ 2, Institute of Economics,
 Hungarian Academy of Sciences, Budapest.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>9</BIBL>	     <BIBTEXT>Fidrmuc, J. 2000. "Restructuring
 European Union Trade with Central and Eastern European Countries."
 Atlantic Economic Journal 28, no. 1 (March): 83-93.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>10</BIBL>	 <BIBTEXT>Fidrmuc, J., and J.
 Fidrmuc. 2001. "Disintegration and Trade." CEPR Discussion Paper No. 2641,
 London, March.</BIBTEXT>      </REF>	   <REF>	<BIBL>11</BIBL>    
    <BIBTEXT>Fidrmuc, J.; D. Grozea-Helmenstein; and A. Worgotter. 1999.
 "East-West Intra-Industry Trade Dynamics." Weltwirtschaftliches Archiv
 135, no. 2: 332-346.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>12</BIBL>	<BIBTEXT>Gabrisch, H., and M. Segnana. 2001. "Trade
 Structure and Trade Liberalization: The Emerging Pattern Between the EU
 and Transition Economies." Moct-Most 11, no. 1: 27-44.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT>Greenaway, D.; R.
 Hine; and C. Milner. 1994. "Country-Specific Factors and the Pattern of
 Horizontal and Vertical Intra-Industry Trade in the UK."
 Weltwirtschaftliches Archiv 130, no. 1: 77-100.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>14</BIBL>	     <BIBTEXT>------. 1995. "Vertical and
 Horizontal Intra-Industry Trade: A Cross Industry Analysis for the United
 Kingdom." Economic Journal 105, no. 433 (November): 1505-1518.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>15</BIBL>	    <BIBTEXT>Grubel, H.G.,
 and P.J. Lloyd. 1975. Intra-Industry Trade. London: John Wiley.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT>Helpman, E.
 1981. "International Trade in the Presence of Product Differentiation,
 Economies of Scale and Monopolistic Competition: A
 Chamberlin-Hecksher-Ohlin Approach." Journal of International Economics
 11, no. 3 (August): 305-340.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>17</BIBL>	<BIBTEXT>------. 1987. "Imperfect Competition and
 International Trade: Evidence from Fourteen Industrial Countries." Journal
 of the Japanese and International Economy 1, no. 1: 62-81.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT>Helpman, E., and
 P.R. Krugman. 1985. Market Structure and Foreign Trade: Increasing
 Returns, Imperfect Competition, and the International Economy. Cambridge:
 MIT Press.</BIBTEXT>	   </REF>      <REF>	    <BIBL>19</BIBL>	  
 <BIBTEXT>Jakab, Z.; M. Kovacs; and A. Oszlay. 2001. "How Far Has Trade
 Integration Advanced?" Journal of Comparative Economics 29, no. 2:
 276-292.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT>Janda, K., and D. Munich. 2002. "Cesky vnitroodvetvovy
 mezinarodni obchod a jeho vazby na trh prace" [The Czech Intra-Industry
 Trade and Its Labor Market Determinants]. Politicka Ekonomie 50, no. 2:
 228-238.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT>Katz, L.F., and K.M. Murphy. 1992. "Changes in Relative Wages,
 1963-1987: Supply and Demand Factors." Quarterly Journal of Economics 107,
 no. 1 (February): 35-78.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>22</BIBL>	<BIBTEXT>Krugman, P.R. 1981. "Intra-Industry
 Specialization and the Gains from Trade." Journal of Political Economy 89,
 no. 5: 959-973.</BIBTEXT>	</REF>	    <REF>	 <BIBL>23</BIBL>   
     <BIBTEXT>Lancaster, K. 1980. "Intra-Industry Trade Under Perfect
 Monopolistic Competition." Journal of International Economics 10, no. 2
 (May): 151-175.</BIBTEXT>	</REF>	    <REF>	 <BIBL>24</BIBL>   
     <BIBTEXT>Lovely, M.E., and D.R. Nelson. 1999. "On the Economic
 Relationship Between Marginal Intra-Industry Trade and Labor Market
 Adjustment in a Division of Labor Model." Paper prepared for the Trade and
 Labour Market Adjustment Conference, Centre for Research on Globalisation
 and Labour Markets, School of Economics, University of
 Nottingham.</BIBTEXT>	    </REF>	<REF>	     <BIBL>25</BIBL>	   
 <BIBTEXT>------. 2001. "Intra-Industry Trade as an Indicator of Labor
 Market Adjustment." Murphy Institute of Political Economy, Tulane
 University, New Orleans.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>26</BIBL>	<BIBTEXT>Newton Holding Ltd. 2001. "Zahranicni
 obchod a vnejsi rovnovaha Ceske republiky v desetiletem procesu
 transformace" [Foreign Trade and External Balance of the Czech Republic
 During the Year of Transition]. Prague, November.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>27</BIBL>        <BIBTEXT>OECD. 2001. "A Decade of
 Trade Liberalization in Transition Economies." OECD Center for Cooperation
 with Non-Members, Paris.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>28</BIBL>	<BIBTEXT>Shaked, A., and J. Sutton. 1984. "Natural
 Oligopolies and International Trade." In Monopolistic Competition and
 International Trade, ed. H. Kierzkowski, pp. 34-50. Oxford: Oxford
 University Press.</BIBTEXT>	  </REF>      <REF>	   <BIBL>29</BIBL> 
       <BIBTEXT>Tomsik, V., and E. Zamrazilova. 2000. "Foreign Trade in the
 Nineties: Adaptation to Developed Markets." Czech Business and Trade no.
 3: 7-9.</BIBTEXT>	</REF>	    <REF>	 <BIBL>30</BIBL>       
 <BIBTEXT>Zamrazilova, E. 2000. "External Imbalance: The Czech Case."
 Eastern European Economics 38, no. 3 (May-June): 82-94.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:2:p:27-50




Template-Type: ReDIF-Article 1.0
Author-Name: Åule  Akkoyunlu 
Author-X-Name-First: Åule  
Author-X-Name-Last: Akkoyunlu 
Author-Name: Konstantin A. Kholodilin 
Author-X-Name-First: Konstantin A. 
Author-X-Name-Last: Kholodilin 
Title: A Link Between Workers' Remittances and Business Cycles in Germany and Turkey 
Abstract:
 This paper examines the cyclical interactions between the remittances of
 Turkish workers in Germany and output in both Turkey and Germany. Our
 analysis introduces a new data set covering 1962 to 2004, never used
 before in the research literature and considered to be a more reliable
 source than the data sets used in other studies. By dividing the original
 sample into recruitment, family reunification, and naturalization periods,
 we show that the duration of migrants' stay in the host country affects
 the direction and strength of the relation between remittances and the
 host and home countries' business cycles.
Journal: Emerging Markets Finance and Trade 
Pages: 23-40 
Issue: 5 
Volume: 44 
Year: 2008 
Month: 9 
Keywords: Germany, migration, remittances, Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=P3L1478853752650 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Agarwal, R., and A. W.
 Horowitz. 2002. "Are International Remittances Altruism or Insurance?
 Evidence from Guyana Using Multiple-Migrant Households." >i>World
 Development>/i> 30, no. 11: 2033-2044.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>2</BIBL>	   <BIBTEXT> Alper, A., and B. Neyapti. 2006.
 "Determinants of Workers' Remittances: Turkish Evidence from High
 Frequency Data." >i>Eastern European Economics>/i> 44, no. 5
 (September-October): 91-100.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>3</BIBL>        <BIBTEXT> Andreoni, J. 1989. "Giving with Impure
 Altruism: Applications to Charity and Ricardian Equivalence." >i>Journal
 of Political Economy>/i> 82, no. 6: 1121-1166.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> AydasÅ, O. T.; K.
 Metin-Ãzcan; and B. Neyapti. 2005. "Determinants of Workers' Remittances:
 The Case of Turkey." >i>Emerging Markets Finance and Trade>/i> 41, no. 3
 (May-June): 53-69.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL> 
       <BIBTEXT> Bhattacharyya, B. 1985. "The Role of Family Decision in
 Internal Migration." >i>Journal of Development Economics>/i> 18, no. 1:
 51-66.</BIBTEXT>      </REF>	   <REF>	<BIBL>6</BIBL>	     
 <BIBTEXT> Cooley, T. F., and L. E. Ohanian. 1991. "The Cyclical Behavior
 of Prices." >i>Journal of Monetary Economics>/i> 28, no. 1:
 25-60.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	     
 <BIBTEXT> Elbadawi, I. A., and R. Rocha. 1992. "Determinants of Expatriate
 Workers' Remittances in North Africa and Europe." Policy Research WPS
 1133, World Bank, Washington, DC.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT> El-Sakka, M. I. T., and R. McNabb. 1999.
 "The Macroeconomic Determinants of Emigrant Remittances." >i>World
 Development>/i> 27, no. 8: 1493-1502.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>9</BIBL>	  <BIBTEXT> Faini, R. 1994. "Workers Remittances
 and the Real Exchange Rate: A Quantitative Framework." >i>Journal of
 Population Economics>/i> 7, no. 2: 235-245.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Gallina, A. 2006. "The
 Impact of International Migration on the Economic Development of Countries
 in the Mediterranean Basin." Paper presented at the United Nations Expert
 Group Meeting on International Migration and Development in the Arab
 Region, Beirut, May 15-17.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>11</BIBL>	<BIBTEXT> Glytsos, N. P. 1988. "Remittances in
 Temporary Migration: A Theoretical Model and Its Testing with the
 Greek-German Experience." >i>Weltwirtschaftliches Archiv>/i> 124, no. 3:
 524-548.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Glytsos, N. P. 1997. "Remitting Behavior of âTemporaryâ and
 âPermanentâ Migrants: The Case of Greeks in Germany and Australia."
 >i>Labour>/i> 11, no. 3: 409-435.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>13</BIBL>	<BIBTEXT> Higgins, M. L.; A. Hysenbegasi; and S.
 Pozo. 2004. "Exchange-Rate Uncertainty and Workers' Remittances."
 >i>Applied Financial Economics>/i> 14, no. 6: 403-411.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>14</BIBL>	 <BIBTEXT> Hoddinott, J.
 1994. "A Model of Migration and Remittances Applied to Western Kenya."
 >i>Oxford Economic Papers>/i> 46, no. 3: 459-476.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>15</BIBL>        <BIBTEXT> Ilahi, N., and S. Jafarey.
 1999. "Guestworker Migration, Remittances, and the Extended Family:
 Evidence from Pakistan." >i>Journal of Development Economics>/i> 58, no.
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Handle: RePEc:mes:emfitr:v:44:y:2008:i:5:p:23-40




Template-Type: ReDIF-Article 1.0
Author-Name: Selim  Elekdag 
Author-X-Name-First: Selim  
Author-X-Name-Last: Elekdag 
Author-Name: Natan  Epstein 
Author-X-Name-First: Natan  
Author-X-Name-Last: Epstein 
Author-Name: Marialuz  Moreno-BadÃ­a 
Author-X-Name-First: Marialuz  
Author-X-Name-Last: Moreno-BadÃ­a 
Title: Fiscal Consolidation in Israel: A Global Fiscal Model Perspective 
Abstract:
 Fiscal consolidation has become a central policy prescription for many
 highly indebted emerging market countries (EMCs). Although prudent fiscal
 policies tend to reduce vulnerabilities, their implementation is usually
 postponed. This paper is one of the first attempts in the literature to
 quantify the costs of delaying fiscal consolidation in an EMC. Using the
 International Monetary Fund's Global Fiscal Model, we find that early
 consolidation through expenditure cuts results in a substantial increase
 in Israel's long-term output growth over delayed fiscal adjustment.
 Moreover, the more flexible are the factor markets, the larger is this
 output gain.
Journal: Emerging Markets Finance and Trade 
Pages: 67-86 
Issue: 6 
Volume: 43 
Year: 2007 
Month: 11 
Keywords: distortionary taxes, fiscal consolidation, government debt, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C26106714657U732 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alesina, A., and A.
 Drazen. 1991. "Why Are Stabilizations Delayed?" >i>American Economic
 Review>/i> 81, no. 5 (December): 1170-1188.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT> Alesina, A., and R. Perotti.
 1995. "Fiscal Expansions and Adjustments in OECD Countries." >i>Economic
 Policy>/i> 21, no. 21 (October): 205-248.</BIBTEXT>	  </REF>      <REF>
	<BIBL>3</BIBL>	      <BIBTEXT> Alesina, A., and R. Perotti. 1997.
 "Fiscal Expansions and Adjustments in OECD Countries: Composition and
 Macroeconomic Effects." >i>International Monetary Fund Staff Papers>/i>
 44, no. 1: 210-248.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>
	<BIBTEXT> Barro, R.J. 1974. "Are Government Bonds Net Wealth?"
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 1095-1117.</BIBTEXT>	   </REF>      <REF>	    <BIBL>5</BIBL>	 
 <BIBTEXT> Barry, F., and M.B. Devereux. 2003. "Expansionary Fiscal
 Contraction: A Theoretical Exploration." >i>Journal of Macroeconomics>/i>
 25, no. 1 (March): 1-23.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>6</BIBL>        <BIBTEXT> Blanchard, O.J. 1985. "Debt, Deficits, and
 Finite Horizons." >i>Journal of Political Economy>/i> 93, no. 2 (April):
 223-247.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Botman, D., and M.S. Kumar. 2006. "Fundamental Determinants of
 the Effects of Fiscal Policy." Working Paper WP/06/72, International
 Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Botman, D.; D. Laxton; D. Muir; and A.
 Romanov. 2006. "A New-Open-Economy-Macro Model for Fiscal Policy
 Evaluation." Working Paper WP/06/45, International Monetary Fund,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>9</BIBL>    
    <BIBTEXT> Coenen, G.; P. McAdam; and R. Straub. 2007. "Tax Reform and
 Labor-Market Performance in the Euro Area: A Simulation-Based Analysis
 Using the New Area-Wide Model." >i>Journal of Economic Dynamics and
 Control>/i>, ECB Working Paper No. 747.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>10</BIBL>	     <BIBTEXT> Elekdag, S.; N. Epstein; and M.
 Moreno-BadÃ­a. 2006. "Fiscal Policy in Israel: Trends and Prospects."
 IsraelâSelected Issues, Country Report no. 06/121, International
 Monetary Fund, Washington, DC.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>11</BIBL>	<BIBTEXT> Erceg, C.J.; L. Guerrieri; and C. Gust.
 2005. "SIGMA: A New Open Economy Model for Policy Analysis." International
 Finance Discussion Papers no. 835, Board of Governors of the Federal
 Reserve System, Washington, DC.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>12</BIBL>	<BIBTEXT> Giavazzi, F., and M. Pagano. 1990. "Can
 Severe Fiscal Contractions Be Expansionary? Tales of Two Small European
 Countries." Working Paper no. 3372, National Bureau of Economic Research,
 Cambridge, MA.</BIBTEXT>      </REF>	   <REF>	<BIBL>13</BIBL>    
    <BIBTEXT> Giavazzi, F.; T. Jappelli; and M. Pagano. 2000. "Searching
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 1259-1289.</BIBTEXT>	   </REF>      <REF>	    <BIBL>14</BIBL>	  
 <BIBTEXT> Hercowitz, Z., and M. Strawczynski. 2000. "Public-Debt/Output
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	<BIBTEXT> Laxton, D., and P. Pesenti. 2003. "Monetary Policy for
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      <BIBTEXT> Weil, P. 1989. "Overlapping Families of Infinitely-Lived
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 183-198.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:6:p:67-86




Template-Type: ReDIF-Article 1.0
Author-Name: Donald  Lien 
Author-X-Name-First: Donald  
Author-X-Name-Last: Lien 
Author-Name: Mei  Zhang 
Author-X-Name-First: Mei  
Author-X-Name-Last: Zhang 
Title: A Survey of Emerging Derivatives Markets 
Abstract:
 This paper summarizes theoretical and empirical research on the roles and
 functions of emerging derivatives markets and the resulting implications
 on policy and regulations. Previous studies revealed that commodity
 derivatives markets offered an effective and welfare-improving method to
 deal with price volatility. Financial derivatives markets have helped to
 support capital inflows into emerging market economies. On the other hand,
 the use of financial derivatives has led to exacerbated volatility and
 accelerated capital outflow. There is a consensus that derivatives are
 seldom the cause of a financial crisis but they could amplify the negative
 effects of the crisis and accelerate contagion. Previous studies of
 derivatives markets have supported the hedging role of emerging
 derivatives markets. Empirical results from a few emerging countries
 suggest a price discovery function of emerging futures markets. The
 findings on the price stabilization function of emerging derivatives
 markets are mixed. Finally, recent research has documented that
 constructive development of derivatives markets in emerging market
 economies needs to be supported by sound macroeconomic fundamentals as
 well as updated financial policies and regulations.
Journal: Emerging Markets Finance and Trade 
Pages: 39-69 
Issue: 2 
Volume: 44 
Year: 2008 
Month: 3 
Keywords: commodity derivatives, emerging markets, financial derivatives, hedging, price discovery, price stabilization, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=M682653L54Q24P65 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
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    <BIBTEXT> Netz, J.S. 1995. "The Effect of Futures Markets and Corners
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 <BIBTEXT> Pritsker, M. 1999. "The Channels for Financial Contagion."
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 <REF>	      <BIBL>155</BIBL>	      <BIBTEXT> Salih, A.A., and V. Kurtas
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 "Mean-Gini, Portfolio Theory, and the Pricing of Risky Assets." >i>Journal
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 Scott-Quinn 1996. "A Further Investigation of the Lead-Lag Relationship
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 Financial Futures on the Cash Market for Treasury Bills." >i>Journal of
 Financial and Quantitative Analysis>/i> 20, no. 3: 371-379.</BIBTEXT>	   
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 Futures Trading and Spot Price Volatility: Evidence from an Emerging
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 <BIBTEXT> Stein, J. 1961. "The Simultaneous Determination of Spot and
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 <BIBTEXT> Stein, J. 1987. "Informational Externalities and
 Welfare-Reducing Speculation." >i>Journal of Political Economy>/i> 95, no.
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 Index and Stock Index Futures Returns." >i>Journal of Financial and
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 Organized Futures Markets." >i>Journal of Law and Economics>/i> 24, no. 1:
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 Private Storage, and Price Stabilization." >i>Journal of Public
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 Washington DC.</BIBTEXT>      </REF>	   <REF>	<BIBL>176</BIBL>   
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 Effectiveness of Capital Controls and Monitoring: The Case of
 Non-Internationalization of Emerging Market Currencies." EMEAP (Executives
 Meeting of East Asia Pacific Central Banks) Discussion Paper,
 Tokyo.</BIBTEXT>      </REF>	   <REF>	<BIBL>177</BIBL>       
 <BIBTEXT> Weaver, R.D., and A. Banerjee 1990. "Does Futures Trading
 Destabilize Cash Prices? Evidence for U.S. Live Beef Cattle." >i>Journal
 of Futures Markets>/i> 10, no. 1: 41-60.</BIBTEXT>	 </REF>      <REF> 
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 "Forward Exchange, Futures Trading, and Spot Price Variability: A General
 Equilibrium Approach." >i>Econometrica>/i> 55, no. 6: 1433-1450.</BIBTEXT>
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 1999. "International Asset Price and Capital Flow Comovements During
 Crisis: The Role of Contagion, Demonstration Effects, and Fundamentals."
 Paper presented at the World Bank/IMF/WTO Conference, Washington, DC,
 April 15-16.</BIBTEXT>      </REF>	 <REF>	      <BIBL>180</BIBL>	   
   <BIBTEXT> Wong, K.P. 2003. "Export Flexibility and Currency Hedging."
 >i>International Economic Review>/i> 44, no. 4: 1295-1312.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>181</BIBL>	  <BIBTEXT> Working, H.
 1949. "The Theory of the Price of Storage." >i>America Economic Review>/i>
 49, no. 6: 1254-1262.</BIBTEXT>      </REF>	  <REF>       
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 Commodity Price Volatility in Developing Countries: A Proposal for a
 Market-Based Approach." Discussion Paper, International Task Force on
 Commodity Risk Management in Developing Countries, World Bank, Washington,
 DC, September.</BIBTEXT>      </REF>	   <REF>	<BIBL>183</BIBL>   
     <BIBTEXT> Yo, S.W. 2001. "Index Futures Trading and Spot Price
 Volatility." >i>Applied Economics Letters>/i> 8, no. 3: 183-186.</BIBTEXT>
      </REF>	  <REF>        <BIBL>184</BIBL>        <BIBTEXT> Zhou, Z.
 1998. "An Equilibrium Analysis of Hedging with Liquidity Constraints,
 Speculation, and Government Price Subsidy in a Commodity Market."
 >i>Journal of Finance>/i> 53, no. 5: 1705-1736.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>185</BIBL>	      <BIBTEXT> Zilcha, I., and R. Eldor
 1991. "Exporting Firm and Forward Markets: the Multi Period Case."
 >i>Journal of International Money and Finance>/i> 10, no. 1:
 108-117.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:2:p:39-69




Template-Type: ReDIF-Article 1.0
Author-Name: Licheng  Feng 
Author-X-Name-First: Licheng  
Author-X-Name-Last: Feng 
Author-Name: Weihe  Xu 
Author-X-Name-First: Weihe  
Author-X-Name-Last: Xu 
Title: Has the Reform of Nontradable Shares Raised Prices?: An Event-Study Analysis 
Abstract:
 This study examines the abnormal stock returns of pilot companies to
 determine if investors believed that reform of nontradable shares, which
 began on April 29, 2005, would lead to higher stock prices. Employing
 event-study analysis, we find that the pilot companies have positive
 significant abnormal returns. The average abnormal return of the first
 batch is higher than that of the second batch, the average abnormal return
 on the Shenzhen Stock Exchange is higher than that of the Shanghai Stock
 Exchange, the average abnormal return on the Small and medium Enterprise
 board is higher than that of the main board, and companies with
 high-compensation packages have higher average abnormal returns than do
 companies with low-compensation packages. Our results suggest that
 investors generally viewed nontradable share reform as positive news.
Journal: Emerging Markets Finance and Trade 
Pages: 33-62 
Issue: 2 
Volume: 43 
Year: 2007 
Month: 4 
Keywords: abnormal return, China, event study, nontradable share reform, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=B3Q8J62023126V6U 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ang, J.S., and Y.L. Ma.
 1999. "Transparency in Chinese Stocks: A Study of Earnings Forecasts by
 Professional Analysts." >i>Pacific-Basin Finance Journal>/i>7, no. 2
 (May): 129-155.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>    
    <BIBTEXT> Boehmer, E.; J. Musumeci; and A.B. Poulsen. 1991. "Event
 Study Methodology Under Conditions of Event Induced Variance." >i>Journal
 of Financial Economics>/i>30, no. 2 (December): 253-212.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT> Brown, S.J., and
 J.B. Warner. 1980. "Measuring Security Price Performance." >i>Journal of
 Financial Economics>/i>8, no. 3: 205-258.</BIBTEXT>	  </REF>      <REF>
	<BIBL>4</BIBL>	      <BIBTEXT> Brown, S.J., and J.B. Warner. 1985.
 "Using Daily Stock Returns: The Case of Event Studies." >i>Journal of
 Financial Economics>/i>14, no. 1: 3-31.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>5</BIBL>	    <BIBTEXT> Chen, J.P.; S.M. Chen; and X.J. Su.
 2001. "Is Accounting Information Value-Relevant in the Emerging Chinese
 Stock Market?" >i>Journal of International Accounting, Auditing &
 Taxation>/i>10, no. 1 (Spring): 1-22.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>6</BIBL>	  <BIBTEXT> Dann, L. 1981. "Common Stock
 Repurchases: An Analysis of Returns to Bondholders and Stockholders."
 >i>Journal of Financial Economics>/i>9, no. 2: 113-138.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>7</BIBL>	<BIBTEXT> Dolley, J. 1933.
 "Characteristics and Procedure of Common Stock Split-Ups." >i>Harvard
 Business Review>/i>11, no. 4: 316-326.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>8</BIBL>	   <BIBTEXT> Feng, L.C. 2000. "Weekly Effect in
 China's Stock Market." >i>Economic Research Journal>/i>11, no. 11
 (November): 50-57. [In Chinese.]</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>9</BIBL>        <BIBTEXT> Feng, L.C. 2004. "Are the Two Stock
 Markets in China Integrated or Segmented?" >i>International Business>/i>1,
 no. 1 (January-February): 35-39. [In Chinese.]</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Feng, L.C.; F. Lou; and G.J.
 Lin. 2005. "An Analysis of the B-Share Discounts in the Chinese Stock
 Market." >i>Contemporary Finance and Economics>/i>6, no. 6 (June): 24-28.
 [In Chinese.]</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	   
   <BIBTEXT> Genevieve, B.D., and S.J. Wei. 2005. "Pitfalls of a
 State-Dominated Financial System: The Case of China." Working Paper 11214,
 National Bureau of Economic Research, Cambridge, MA.</BIBTEXT>      </REF>
      <REF>	   <BIBL>12</BIBL>	  <BIBTEXT> Green, S., and J. Ho.
 2004. "Old Stocks New Owners: Two Cases of Ownership Change in China's
 Stock Market." >i>Journal of Chinese Economic and Business Studies>/i>2,
 no. 3 (September): 267-280.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>13</BIBL>	<BIBTEXT> Kato, T., and C. Long. 2004. "Executive
 Compensation, Firm Performance, and Corporate Governance in China:
 Evidence from Firms Listed in the Shanghai and Shenzhen Stock Exchanges."
 Working Paper 690, William Davidson Institute, Ann Arbor, MI,
 May.</BIBTEXT>      </REF>	 <REF>	      <BIBL>14</BIBL>	    
 <BIBTEXT> Khotari, S.P., and J.B. Warner. 2005. "Econometrics of Event
 Studies." In >i>Handbooks of Corporate Finance: Empirical Corporate
 Finance>/i> ed. B.E. Eckbo, chapter 1. Amsterdam:
 Elsevier/North-Holland.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>15</BIBL>	<BIBTEXT> Kolari, J., and S. Pynnonen. 2005.
 "Event-Study Methodology: Correction for Cross-Sectional Correlation in
 Standardized Abnormal Return Tests." Working Paper, Finance Department,
 Texas A&M University, College Station, TX.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT> Masulis, R. 1980. "The
 Effects of Capital Structure Change on Security Prices: A Study of
 Exchange Offers." >i>Journal of Financial Economics>/i>8, no. 2 (June):
 139-177.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Patell, J. 1976. "Corporate Forecasts of Earnings per Share and
 Stock Price Behavior: Empirical Tests." >i>Journal of Accounting
 Research>/i>14, no. 2: 246-276.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:33-62




Template-Type: ReDIF-Article 1.0
Author-Name: Yaffa  Machnes 
Author-X-Name-First: Yaffa  
Author-X-Name-Last: Machnes 
Title: The Trading Volume of Currency Options and the Spot Exchange Rate 
Abstract:
 This paper estimates the interrelation between the spot exchange rate of
 the Israeli currency, the new Israeli shekel, to the U.S. dollar, and the
 trading volumes of put and call options on the U.S. dollar in the Tel Aviv
 Stock Exchange. An increase in the trading volume of calls is positively
 correlated with an increase in the spot exchange rate of the dollar on the
 same day and the following day, but with a lower coefficient. Similarly,
 an increase in the trading volume of puts is related to a decrease in the
 spot price of the dollar on the same day of trade, with a smaller effect
 on the following day.
Journal: Emerging Markets Finance and Trade 
Pages: 91-97 
Issue: 3 
Volume: 42 
Year: 2006 
Month: 5 
Keywords: currency options, exchange rate, trade volume, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=2X7788T171670007 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Anthony, J.H. 1988.
 "The Interrelation of Stock and Option Market Trading-Volume Data."
 >i>Journal of Finance>/i>>b>43>/b>, no. 4: 949-961.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Cellier, A. 2003. "Lead
 Lag Relationships Between Short-Term Options and the French Stock Index
 CAC 40: The Impact of Time Measurement." >i>Cahiers Economiques de
 Bruxelles>/i>>b>46>/b>, no. 2: 65-82.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>3</BIBL>	  <BIBTEXT> Chakravarty, S.; H. Gulen; and S.
 Mayhew. 2004. "Informed Trading in Stock and Option Markets." >i>Journal
 of Finance>/i>>b>59>/b>, no. 3: 1235-1257.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Chan, K.; Y.P. Chung; and
 W.M. Fong. 2002. "The Informational Role of Stock and Option Volume."
 >i>Review of Financial Studies>/i>>b>15>/b>, no. 4: 1049-1075.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>5</BIBL>	   <BIBTEXT> Easley, D.; M.
 O'Hara; and P.S. Srinivas. 1998. "Option Volume and Stock Prices: Evidence
 on Where Informed Traders Trade." >i>Journal of Finance>/i>>b>53>/b>, no.
 2: 431-465.</BIBTEXT>	    </REF>	<REF>	     <BIBL>6</BIBL>	  
 <BIBTEXT> Hagelin, N. 2000. "Index Option Market Activity and Cash Market
 Volatility Under Different Market Conditions: An Empirical Study from
 Sweden." >i>Applied Financial Economics>/i>>b>10>/b>, no. 6:
 597-613.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Lamont, O.A., and J.C. Stein. 2004. "Aggregate Short Interest
 and Market Valuations." National Bureau of Economic Research Working Paper
 no. 10218, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT> Oberlechner, T. 2001. "Importance of
 Technical and Fundamental Analysis in the European Foreign Exchange
 Market." >i>International Journal of Finance and Economics>/i>>b>6>/b>,
 no. 1: 81-93.</BIBTEXT>      </REF>	  <REF>        <BIBL>9</BIBL>	   
  <BIBTEXT> Sarwar, G. 2003. "The Interrelation of Price Volatility and
 Trading Volume of Currency Options." >i>Journal of Futures
 Markets>/i>>b>23>/b>, no. 7: 681-700.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>10</BIBL>	   <BIBTEXT> Tan, K. 2001. "High Put-Call Ratio
 Shows Defensive Postures Still Dominate, Despite Slip in Volatility."
 >i>Wall Street Journal>/i> (September 19), C14.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:42:y:2006:i:3:p:91-97




Template-Type: ReDIF-Article 1.0
Author-Name: Javier  RodrÃ­guez 
Author-X-Name-First: Javier  
Author-X-Name-Last: RodrÃ­guez 
Title: A Portfolio's Country Exposure Management: The Case of Latin American Mutual Funds 
Abstract:
 This study empirically examines the forecasting ability and performance of
 Latin American fund managers by evaluating changes in portfolio country
 exposure. It employs a methodology based on attribution returns. An
 attribution return is defined as the difference between the actual monthly
 fund return and the return that would have been generated by the previous
 month portfolio's country exposure. The study finds three major results.
 In the aggregate, Latin American fund managers demonstrate forecasting
 ability as evidenced by a positive and statistically significant
 attribution return. The fund managers outperform a regional benchmark when
 measured with Jensen's alpha, and the attribution return is positively
 correlated with alpha. Attribution returns are mostly negative during
 periods of financial instability in the region.
Journal: Emerging Markets Finance and Trade 
Pages: 5-18 
Issue: 2 
Volume: 43 
Year: 2007 
Month: 4 
Keywords: Latin America, mutual funds, performance measures, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=308K2PGH26277W18 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Bhargava, R.; J.G.
 Gallo; and P.E. Swanson. 2001. "The Performance, Asset Allocation, and
 Investment Style of International Equity Managers." >i>Review of
 Quantitative Finance and Accounting>/i> 17, no. 4: 377-395.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Blake, C.; E.
 Elton; and M. Gruber. 1993. "The Performance of Bond Mutual Funds."
 >i>Journal of Business>/i>66, no. 3: 371-403.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT> Borensztein, E., and R.G.
 Gelos. 2003. "A Panic-Prone Pack? The Behavior of Emerging Market Mutual
 Funds." >i>IMF Staff Papers>/i>50, no. 1: 43-63.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>4</BIBL>	     <BIBTEXT> Comer, G.; N. Larrymore; and
 J. Rodriguez. 2004. "Measuring the Value of Active Fund Management: The
 Case of Hybrid Mutual Funds." Working Paper, Georgetown University,
 McDonough School of Business, Washington, DC.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Disyatat, P., and G. Gelos.
 2001. "The Asset Allocation of Emerging Market Mutual Funds." Working
 Paper no. 01/111, International Monetary Fund, Washington, DC.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>6</BIBL>	   <BIBTEXT> Dor, A.B.; R.
 Jagannathan; and M. Iwan. 2003. "Understanding Mutual Fund and Hedge Fund
 Styles Using Return-Based Style Analysis." >i>Journal of Investment
 Management>/i>1, no. 1: 94-134.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>7</BIBL>        <BIBTEXT> Elton, E.; M. Gruber; and C. Blake. 1996.
 "Survivorship Bias and Mutual Fund Performance." >i>Review of Financial
 Studies>/i>9, no. 4: 1097-1120.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>8</BIBL>        <BIBTEXT> Elkinawy, S. 2005. "Mutual Fund
 Preferences for Latin American Equities Surrounding Financial Crises."
 >i>Emerging Markets Review>/i>6, no. 3: 211-237.</BIBTEXT>	 </REF>    
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 Winning Mutual Funds Repeat?" >i>TMA Journal>/i>16: 50-53.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Ippolito, R.
 1989. "Efficiency with Costly Information: A Study of Mutual Fund
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 <BIBTEXT> Jensen, M. 1968. "The Performance of Mutual Funds in the Period
 1945-1964." >i>Journal of Finance>/i>23, no. 2: 389-416.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Kaminsky, G.;
 R.K. Lyons; and S.L. Schmukler. 2001. "Mutual Fund Investment in Emerging
 Markets: An Overview." >i>World Bank Economic Review>/i>15, no. 2:
 315-340.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Kaminsky, G.; R.K. Lyons; and S.L. Schmukler. 2004. "Managers,
 Investors, and Crisis: Mutual Fund Strategies in Emerging Markets."
 >i>Journal of International Economics>/i>64, no. 1: 113-134.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>14</BIBL>	  <BIBTEXT> Myers, M.; J.
 Poterba; D. Shackleford; and J. Shoven. 2001. "Copycat Funds: Information
 Disclosure Regulation and the Returns to Active Management in the Mutual
 Fund Industry." Working Paper, Massachusetts Institute of Technology,
 Cambridge, MA.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>    
    <BIBTEXT> Serra, A.P. 2000. "Country and Industry Factors in Returns:
 Evidence from Emerging Markets' Stocks." >i>Emerging Markets Review>/i>1,
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     <BIBTEXT> Sharpe, W. 1992. "Asset Allocation: Management Style and
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 7-19.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:43:y:2007:i:2:p:5-18




Template-Type: ReDIF-Article 1.0
Author-Name: EKREM TATOGLU 
Author-X-Name-First: EKREM 
Author-X-Name-Last: TATOGLU 
Author-Name: MEHMET DEMIRBAG 
Author-X-Name-First: MEHMET 
Author-X-Name-Last: DEMIRBAG 
Author-Name: GOKHAN KAPLAN 
Author-X-Name-First: GOKHAN 
Author-X-Name-Last: KAPLAN 
Title:         Motives for Retailer Internationalization to Central and Eastern Europe       
Abstract:
       This paper focuses on internationalization motives of multinational
 retailers with regard to three Central and Eastern European countries
 including Poland, Hungary, and the Czech Republic. Based on the prior
 literature reviewed, a comprehensive set of retail internationalization
 motives was identified. The highest ranked retail internalization motives
 were found to be concerned more with host country-specific motives than
 home country and firm-specific motives. The study also found that the
 relative importance of the retail internalization motives varied most with
 the retail type of operations, and to a moderate extent with the market
 entry mode. However, no significant difference was found between the
 relative importance of the retail internalization motives and host country
 origin.    
Journal: Emerging Markets Finance and Trade 
Pages: 40-57 
Issue: 4 
Volume: 39 
Year: 2003 
Month: 7 
Keywords: Key words: Central and Eastern Europe, emerging markets, entry mode, MNEs, retail internationalization, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=LA5KX1Q0E5YPHLBK 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Agarwal, S., and S.N.
 Ramaswami. 1992. "Choice of Foreign Market Entry Mode: Impact of
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 <BIBL>2</BIBL>        <BIBTEXT>Alexander, N. 1990. "Retailers and
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   <BIBTEXT>Kacker, M. 1985. Transatlantic Trends in Retailing: Takeovers
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 Guisinger. 1992. "The Globalization of Service Multinationals in the Triad
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 Manrai. 2001. "Marketing Opportunities and Challenges in Emerging Markets
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  <BIBL>23</BIBL>	 <BIBTEXT>Miller, S.R., and A. Parkhe. 1998.
 "Patterns in the Expansion of U.S. Banks' Foreign Operations." Journal of
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 Alexander. 1997. "Food Retailing Opportunities in Eastern Europe."
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 Tortuous Evolution of the Multinational Corporation." Columbia Journal of
 World Business, 4 (January-February): 9-18.</BIBTEXT>	    </REF>     
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 2000. "International Retailing Operations: Downstream Entry and Expansion
 via Franchising." International Business Review 9, no. 4:
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 <BIBTEXT>Quinn, B. 1999. "The Temporal Context of UK Retailers' Motives
 for International Expansion." Service Industries Journal 19, no. 2:
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 Retailing Expansion--A Decade of Change?" European Business Review 12, no.
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 Investment to Multinational Banking in LDCs." Journal of International
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   <BIBL>30</BIBL>	  <BIBTEXT>Salmon, W.J., and A. Tordjman. 1989.
 "The Internationalization of Retailing." International Journal of
 Retailing 4, no. 2: 3-16.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>31</BIBL>	<BIBTEXT>Segal-Horn, S., and H. Davidson. 1992.
 "Global Markets, the Global Consumer and International Retailing." Journal
 of Global Marketing 5, no. 3: 31-61.</BIBTEXT>      </REF>	 <REF>	   
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 Specialty Store's Perspective on Retail Internationalization: A Case
 Study." Journal of Retailing and Consumer Services 6: 45-53.</BIBTEXT>    
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 1997. "International Expansion of U.S. Retailers." International Journal
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 C.H. Yu. 1988. "Determinants of Foreign Investment of U.S. Advertising
 Agencies." Journal of International Business Studies 19 (Spring):
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 <BIBTEXT>Tesco. 2001. "Annual Report." Hertfordshire, UK (available at
 www.tesco.com).</BIBTEXT>	</REF>	    <REF>	 <BIBL>36</BIBL>   
     <BIBTEXT>Treadgold, A.D., and R.L. Davies. 1988. The
 Internationalization of Retailing. New York: Longman.</BIBTEXT>     
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 Fairhurst. 1998. "International Expansion of Retail Firms: A Theoretical
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Handle: RePEc:mes:emfitr:v:39:y:2003:i:4:p:40-57




Template-Type: ReDIF-Article 1.0
Author-Name: Erdem  BaÅÃ§i 
Author-X-Name-First: Erdem  
Author-X-Name-Last: BaÅÃ§i 
Author-Name: Syed F. Mahmud 
Author-X-Name-First: Syed F. 
Author-X-Name-Last: Mahmud 
Author-Name: Eray M. Yucel 
Author-X-Name-First: Eray M. 
Author-X-Name-Last: Yucel 
Title: Money and Productive Efficiency: Evidence from a High-Inflation Country 
Abstract:
 This paper examines how money balances held by manufacturing firms affect
 their efficiency in generating sales revenue in a high-inflation economy.
 The analysis employs data from Turkish firms to estimate a stochastic
 frontier model, finding a strong positive association between the firms'
 money holdings and their efficiency. However, the role of money balances
 seems to diminish as firms hold higher raw material inventories.
Journal: Emerging Markets Finance and Trade 
Pages: 64-73 
Issue: 1 
Volume: 43 
Year: 2007 
Month: 2 
Keywords: high inflation, inventories, manufacturing, money demand by firms, stochastic frontier estimation, Turkey, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=9556772077384155 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aigner, D.; C.A.K.
 Lovell; and P. Schmidt. 1977. "Formulation and Estimation of Stochastic
 Frontier Production Function Models." >i>Journal of Econometrics>/i>6, no.
 1 (July): 21-37.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>   
     <BIBTEXT> Barth, M.J., III, and V.A. Ramey. 2001. "The Cost Channel of
 Monetary Transmission." >i>NBER Macroeconomics Annual>/i> ed. B.S.
 Bernanke and K. Rogoff, pp. 200-240. Cambridge, MA: National Bureau of
 Economic Research.</BIBTEXT>	   </REF>      <REF>	    <BIBL>3</BIBL> 
       <BIBTEXT> BaÅÃ§i, E., and I. Saglam. 2005. "Optimal Money Growth in
 a Limited Participation Model with Heterogeneous Agents." >i>Review of
 Economic Design>/i>9, no. 2 (April): 91-108.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Battese, G.E., and T.J.
 Coelli. 1993. "A Stochastic Frontier Production Function Incorporating a
 Model for Technical Efficiency Effects." Working Papers in Econometrics
 and Applied Statistics no. 69, Department of Econometrics, University of
 New England, Armidale, Australia, October.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT> Battese, G.E., and T.J.
 Coelli. 1995. "A Model for Technical Inefficiency Effects in a Stochastic
 Frontier Production Function for Panel Data." >i>Empirical
 Economics>/i>20, no. 2: 325-332.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>6</BIBL>        <BIBTEXT> Baum, C.F.; M. Caglayan; N. Ozkan; and O.
 Talavera. 2004. "The Impact of Macroeconomic Uncertainty on Cash Holdings
 for Non-Financial Firms." Discussion Papers in Economics 04/19, Department
 of Economics, University of Leicester, June.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT> Caglayan, M., and A.
 Filiztekin. 2003. "Nonlinear Impact of Inflation on Relative Price
 Variability." >i>Economics Letters>/i>79, no. 2: 213-218.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Christiano, L.J.;
 M. Eichenbaum; and C.L. Evans. 1997. "Sticky Price and Limited
 Participation Models: A Comparison." >i>European Economic Review>/i>41,
 no. 6 (June): 1201-1249.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>9</BIBL>        <BIBTEXT> Christiano, L.J.; M. Eichenbaum; and C.L.
 Evans. 1998. "Modeling Money." National Bureau of Economic Research
 Working Paper 6371, Cambridge, MA, January.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Delorme, C., Jr.; H.G.
 Thompson Jr.; and R.S. Warren Jr. 1995. "Money and Production: A
 Stochastic Frontier Approach." >i>Journal of Productivity Analysis>/i>6,
 no. 4 (December): 333-342.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>11</BIBL>	<BIBTEXT> Dennis, E., and K. Smith. 1978. "A
 Neoclassical Analysis of the Demand for Real Cash Balances by Firms."
 >i>Journal of Political Economy>/i>86, no. 5 (October): 793-813.</BIBTEXT>
      </REF>	  <REF>        <BIBL>12</BIBL>	      <BIBTEXT> Domberger,
 S. 1987. "Relative Price Variability and Inflation: A Disaggregated
 Analysis." >i>Journal of Political Economy>/i>95, no. 3 (June):
 547-566.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT> Ertugrul, A., and F. Selcuk. 2001. "A Brief Account of the
 Turkish Economy: 1980-2000." >i>Russian and East European Finance and
 Trade>/i>37, no. 6 (November-December): 6-28.</BIBTEXT>      </REF>	 
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 "Functional Equivalence Between Liquidity Costs and the Utility of Money."
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 1974. "Money and the Production Function." >i>Economic Inquiry>/i>12
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 <BIBL>16</BIBL>	<BIBTEXT> Friedman, M. 1969. >i>The Optimum
 Quantity of Money, and Other Essays>/i>. Chicago: Aldine.</BIBTEXT>	 
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 1992. "Liquidity, Loanable Funds and Real Activity." >i>Journal of
 Monetary Economics>/i>29, no. 1 (February): 3-24.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>18</BIBL>        <BIBTEXT> Greene, W.H. 1993. "The
 Econometric Approach to Efficiency Analysis." In >i>The Measurement of
 Productive Efficiency: Techniques and Applications>/i> ed. H.O. Fried,
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 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>19</BIBL>       
 <BIBTEXT> Harkness, J. 1984. "Optimal Oil Pricing in a Small Open Economy:
 A Macro-Economic Perspective." >i>Canadian Journal of Economics>/i>17, no.
 4 (November): 762-773.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>20</BIBL>	<BIBTEXT> Hasan, M.A., and S.F. Mahmud. 1993. "Is
 Money an Omitted Variable in the Production Function? Some Further
 Results." >i>Empirical Economics>/i>18, no. 3 (September):
 431-445.</BIBTEXT>	 </REF>      <REF>	  <BIBL>21</BIBL>	
 <BIBTEXT> Jansen, D. 1985. "Real Balances in an Ad Hoc Keynesian Model and
 Policy Ineffectiveness." >i>Journal of Money, Credit and Banking>/i>17,
 no. 3 (August): 378-386.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>22</BIBL>	<BIBTEXT> Jondrow, J.; C.A.K. Lovell; I.S. Materov;
 and P. Schmidt. 1982. "On the Estimation of Technical Inefficiency in the
 Stochastic Frontier Production Function Model." >i>Journal of
 Econometrics>/i>19, nos. 2-3 (August): 233-238.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>23</BIBL>	     <BIBTEXT> Meeusen, W., and J. van den
 Broeck. 1977. "Efficiency Estimation from Cobb-Douglass Production
 Functions with Composed Error." >i>International Economic Review>/i>18,
 no. 2 (June): 435-444.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>24</BIBL>	<BIBTEXT> Nadiri, M. 1969. "The Determinants of
 Real Cash Balances in U.S. Total Manufacturing Sector." >i>Quarterly
 Journal of Economics>/i>83, no. 2 (May): 173-196.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>25</BIBL>        <BIBTEXT> Nourzad, F. 2002. "Real
 Money Balances and Production Efficiency: A Panel-Data Stochastic
 Production Frontier Study." >i>Journal of Macroeconomics>/i>24, no. 1:
 125-134.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT> Parsley, D.C. 1996. "Inflation and Relative Price Variability in
 the Short and Long Run: New Evidence from the United States." >i>Journal
 of Money, Credit and Banking>/i>28, no. 3 (August): 323-341.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>27</BIBL>	  <BIBTEXT> Saygili, H.
 2005. "Transactions Demand for Money, Technical Inefficiency and Money in
 the Production Function." Central Bank of the Republic of Turkey, Ankara,
 October.</BIBTEXT>	 </REF>      <REF>	  <BIBL>28</BIBL>	
 <BIBTEXT> Simos, E. 1981. "Real Money Balances as Productive Input:
 Further Evidence." >i>Journal of Monetary Economics>/i>7, no. 2:
 207-225.</BIBTEXT>	 </REF>      <REF>	  <BIBL>29</BIBL>	
 <BIBTEXT> Sinai, A., and H.H. Stokes. 1972. "Real Money Balances: An
 Omitted Variable from the Production Function?" >i>Review of Economics and
 Statistics>/i>54, no. 3 (August): 290-296.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:1:p:64-73




Template-Type: ReDIF-Article 1.0
Author-Name: HIDEAKI HIRATA 
Author-X-Name-First: HIDEAKI 
Author-X-Name-Last: HIRATA 
Author-Name: SUNGHYUN HENRY KIM 
Author-X-Name-First: SUNGHYUN HENRY 
Author-X-Name-Last: KIM 
Author-Name: M. AYHAN KOSE 
Author-X-Name-First: M. AYHAN 
Author-X-Name-Last: KOSE 
Title:         Integration and Fluctuations : The Case of MENA       
Abstract:
       This paper analyzes the impact of global integration on the dynamics
 of economic growth and business cycles in the emerging economies of Middle
 East and North Africa (MENA) and Asia. In particular, the paper examines
 the evolution of structural characteristics, growth dynamics, and business
 cycle properties of these countries during the 1960-2000 period. Although
 both groups of countries became more open and were able to diversify their
 industrial structures and export bases over time, the MENA countries
 lagged behind the Asian economies in both trade integration and the extent
 of diversification of exports during the globalization period (1986-2000).
 Although economic growth slowed in both groups during the period of
 globalization, the extent of the slowdown was much sharper in the MENA
 countries. Moreover, business cycle fluctuations in the MENA countries
 were much more volatile than in the Asian economies. In addition, although
 both groups of countries witnessed a moderation in the amplitude of
 macroeconomic fluctuations during the globalization period, the decline in
 the volatility of cyclical fluctuations in the MENA countries was
 relatively small, partially because of the inability of these countries to
 utilize the benefits of global integration.	
Journal: Emerging Markets Finance and Trade 
Pages: 48-67 
Issue: 6 
Volume: 40 
Year: 2004 
Month: 11 
Keywords: business cycles, globalization, macroeconomic fluctuations, MENA, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=VXDPJG443TAQTQKF 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abed, G.T., and H.R.
 Davoodi. 2003. "Challenges of Growth and Globalization in the Middle East
 and North Africa." International Monetary Fund, Washington, DC (available
 at www.imf.org/external/pubs/ft/med/2003/eng/abed.htm).</BIBTEXT>     
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 Kehoe; and F.K. Kydland. 1995. "International Business Cycles: Theory and
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 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>Baldwin, R. 2003. "Openness
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 E. Seghezza. 1996. "Testing for Trade Induced-Investment Led Growth."
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 <BIBTEXT>Berg, A., and A. Krueger. 2003. "Growth, and Poverty: A Selective
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 <BIBTEXT>Borensztein, E.; J. De Gregorio; and J.-W. Lee. 1998. "How Does
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 <BIBTEXT>Eid, F., and F. Paua. 2003. "Foreign Direct Investment in the
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 Cornelius, pp. 108-119. New York: Oxford University Press.</BIBTEXT>	  
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 "Sources of Macroeconomic Fluctuations in the Middle East and North
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 and E. Prescott. 1997. "Postwar U.S. Business Cycles: An Empirical
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 <BIBTEXT>Hoekman, B., and P. Messerlin. 2002. Harnessing Trade for
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 <BIBL>16</BIBL>	<BIBTEXT>Hoekman, B., and J. Roy. 2000. "Benefiting
 from WTO Accession and Membership." In Catching Up with the Competition,
 ed. B. Hoekman and J. Zarrouk, pp. 307-324. Ann Arbor: University of
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 1995. Growth Theories in Light of the East Asian Experience: National
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 Wang. 2003. "Capital Flows and International Business Cycles in the
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 Similarities and Differences." Review of Development Economics 7, no. 3:
 462-477.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>	
 <BIBTEXT>Kose, M.A. 2002. "Explaining Business Cycles in Small Open
 Economies: How Much Do World Prices Matter?" Journal of International
 Economics 56, no. 2 (March): 299-327.</BIBTEXT>      </REF>	  <REF>    
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 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>28</BIBL>       
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 of Financial Globalization on Developing Countries: Some Empirical
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     <BIBTEXT>Sala-i-Martin, X., and E.V. Artadi. 2003. "Economic Growth
 and Investment in the Arab World." World Economic Forum Reports: Arab
 Competitiveness Report 2002-2003, ed. K. Schwab, pp. 22-33. New York:
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 DC.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:6:p:48-67




Template-Type: ReDIF-Article 1.0
Author-Name: RICHARD A. AJAYI 
Author-X-Name-First: RICHARD A. 
Author-X-Name-Last: AJAYI 
Author-Name: SEYED MEHDIAN 
Author-X-Name-First: SEYED 
Author-X-Name-Last: MEHDIAN 
Author-Name: MARK J. PERRY 
Author-X-Name-First: MARK J. 
Author-X-Name-Last: PERRY 
Title:         The Day-of-the-Week Effect in Stock Returns : Further Evidence from Eastern European Emerging Markets       
Abstract:
       Existing literature on the day-of-the-week stock return anomaly
 focuses mainly on the United States and other advanced economies with
 little or no attention to the emerging markets, including those of Eastern
 Europe. In an attempt to address this gap in the literature, this paper
 conducts an empirical investigation of the day-of-the-week stock return
 anomaly using major market stock indices in eleven Eastern European
 emerging markets (EEEM). The empirical results indicate negative Monday
 returns in six of the EEEMs and positive Monday returns in the remaining
 five. Two of the six negative Monday returns and only one of the five
 positive Monday returns are statistically significant. These findings
 provide no consistent evidence to support the presence of any significant
 daily patterns in the stock market returns of the EEEM.    
Journal: Emerging Markets Finance and Trade 
Pages: 53-62 
Issue: 4 
Volume: 40 
Year: 2004 
Month: 7 
Keywords: Eastern European stock markets, efficient markets hypothesis, event studies, international financial markets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=QTB7DT6U13J2XFPY 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Bachman, D.; J.J. Choi;
 B.N. Jeon; and K.J. Kopecky. 1996. "Common Factors in International Stock
 Prices: Evidence from a Co-Integration Study." International Review of
 Financial Analysis 5, no. 1: 39-53.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>2</BIBL>	<BIBTEXT>Dubois, M., and P. Louvet. 1996. "The
 Day-of-the-Week Effect: The International Evidence." Journal of Banking
 and Finance 20, no. 9 (November): 1463-1484.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>French, K.R. 1980. "Stock
 Returns and the Weekend Effect." Journal of Financial Economics 13, no. 1
 (March): 55-69.</BIBTEXT>	</REF>	    <REF>	 <BIBL>4</BIBL>    
    <BIBTEXT>Gibbons, R.S., and P. Hess. 1981. "Day of the Week Effects and
 Asset Returns." Journal of Business 54, no. 4 (October):
 579-596.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT>Gultekin, M., and N.B. Gultekin. 1983. "Stock Market Seasonality:
 International Evidence." Journal of Financial Economics 12, no. 4
 (December): 469-481.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>6</BIBL>        <BIBTEXT>Jaffe, J.F.; R. Westerfield; and C. Ma.
 1989. "A Twist on the Monday Effect in Stock Prices: Evidence from the
 U.S. and Foreign Stock Markets." Journal of Banking and Finance 13, nos.
 4-5: 641-650.</BIBTEXT>      </REF>	  <REF>        <BIBL>7</BIBL>	   
  <BIBTEXT>Kamara, A. 1997. "New Evidence on the Monday Seasonal in Stock
 Returns." Journal of Business 70, no. 1 (January): 63-84.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT>Kim, S.-W. 1989.
 "Capitalizing on the Weekend Effect." Journal of Portfolio Management 14,
 no. 3 (Spring): 59-63.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>9</BIBL>        <BIBTEXT>Lakonishok, J., and M. Levi. 1982. "Weekend
 Effects on Stock Returns: A Note." Journal of Finance 37, no. 3:
 883-889.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT>Lakonishok, J., and S. Smidt. 1988. "Are Seasonal Anomalies Real:
 A Ninety-Year Perspective." Review of Financial Studies 1, no. 4:
 403-425.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT>Mehdian, S., and M.J. Perry. 2001. "The Reversal of the Monday
 Effect: New Evidence from U.S. Equity Markets." Journal of Business,
 Finance and Accounting 28, nos. 7-8: 1043-1065.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>12</BIBL>	     <BIBTEXT>Smirlock, M., and L. Starks.
 1986. "Day of the Week and Intraday Effects in Stock Returns." Journal of
 Financial Economics 17, no. 1 (September): 197-210.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>13</BIBL>	 <BIBTEXT>Solnik, B., and L.
 Bousquet. 1990. "Day-of-the-Week Effect on the Paris Bourse." Journal of
 Banking and Finance 14, nos. 2-3 (August): 461-468.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>14</BIBL>	 <BIBTEXT>Wang, K.; Y. Li; and J.
 Erickson. 1997. "A New Look at the Monday Effect." Journal of Finance 52,
 no. 5 (December): 2171-2186.</BIBTEXT>      </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:4:p:53-62




Template-Type: ReDIF-Article 1.0
Author-Name: Sahar  Bahmani 
Author-X-Name-First: Sahar  
Author-X-Name-Last: Bahmani 
Title: Stability of the Demand for Money in the Middle East 
Abstract:
 Previous studies that have estimated the money demand function in Middle
 Eastern countries employed either traditional estimation techniques or
 recently popularized cointegration techniques. The first group suffers
 from spurious regression problems; the second group interprets
 cointegration as a sign of stability of the estimated parameters. Without
 a comprehensive study in the literature about the Middle East, this paper
 incorporates the cumulative sum and cumulative sum squared tests into
 cointegration analysis and shows that in the majority of the countries in
 the sample, the demand for money (M2) is stable.
Journal: Emerging Markets Finance and Trade 
Pages: 62-83 
Issue: 1 
Volume: 44 
Year: 2008 
Month: 1 
Keywords: bounds testing, Middle East, money demand, stability, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=D63266881Q556701 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Adams, C. S. 1991.
 "Financial Innovation and the Demand for M3 in the U. K. 1975-86."
 >i>Oxford Bulletin of Economics and Statistics>/i> 53 (November):
 401-423.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>       
 <BIBTEXT> Arango, S., and M. Ishaq Nadiri. 1981. "Demand for Money in Open
 Economies." >i>Journal of Monetary Economics>/i> 7 (January):
 69-83.</BIBTEXT>      </REF>	   <REF>	<BIBL>3</BIBL>	     
 <BIBTEXT> Bahmani-Oskooee, M. 1996. "The Black Market Exchange Rate and
 Demand for Money in Iran." >i>Journal of Macroeconomics>/i> 18 (Winter):
 171-176.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Bahmani-Oskooee, M., and M. T. Bohl. 2000. "German Monetary
 Unification and the Stability of Long-Run German Money Demand Function."
 >i>Economics Letters>/i> 66: 203-208.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>5</BIBL>	  <BIBTEXT> Bahmani-Oskooee, M., and A. Gelan.
 2006. "Testing the PPP in the Non-Linear STAR Framework: Evidence from
 Africa." >i>Economics Bulletin>/i> 6, no. 17: 1-15.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Bahmani-Oskooee, M., and
 M. Kandil. 2007. "Real and Nominal Effective Exchange Rates in MENA
 Countries: 1970-2004." >i>Applied Economics>/i> 39, no. 19:
 2489-2501.</BIBTEXT>	   </REF>      <REF>	    <BIBL>7</BIBL>	 
 <BIBTEXT> Bahmani-Oskooee, M., and M. Karacal. 2006. "The Demand for Money
 in Turkey and Currency Substitution." >i>Applied Economics Letters>/i> 13,
 no. 10 (August): 635-642.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT> Bahmani-Oskooee, M., and M. Pourheydarian.
 1990. "Exchange Rate Sensitivity of Demand for Money and Effectiveness of
 Fiscal and Monetary Policy." >i>Applied Economics>/i> 22, no. 7 (July):
 917-925.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Bahmani-Oskooee, M., and A. Tanku. 2006. "Black Market Exchange
 Rate, Currency Substitution and the Demand for Money in LDCs." >i>Economic
 Systems>/i> 30, no. 3: 249-263.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>10</BIBL>	<BIBTEXT> Brown, R. L.; J. Durbin; and J. M. Evans.
 1975. "Techniques for Testing the Constancy of Regression Relations Over
 Time." >i>Journal of the Royal Statistical Society>/i> 37 (series B):
 149-163.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Civcir, I. 2003. "Money Demand, Financial Liberalization and
 Currency Substitution in Turkey." >i>Journal of Economic Studies>/i> 30,
 no. 5: 514-534.</BIBTEXT>	</REF>	    <REF>	 <BIBL>12</BIBL>   
     <BIBTEXT> Darrat, A. 1984. "The Money Demand Relationship in Saudi
 Arabia." >i>Journal of Economic Studies>/i> 11: 43-50.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT> Darrat, A., and
 A. Al-Mutawa. 1996. "Modelling Money Demand in the United Arab Emirates."
 >i>Quarterly Journal of Economics and Finance>/i> 36 (Spring):
 65-87.</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>       
 <BIBTEXT> Fair, R. C. 1987. "International Evidence on the Demand for
 Money." >i>Review of Economics and Statistics>/i> 69, no. 3:
 473-480.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Hafer, R. W., and D. W. Jansen. 1991. "The Demand for Money in
 the United States: Evidence from Cointegration Tests." >i>Journal of
 Money, Credit, and Banking>/i> 23, no. 2 (May): 155-168.</BIBTEXT>	
 </REF>      <REF>	  <BIBL>16</BIBL>	 <BIBTEXT> Hansen, G., and
 J. R. Kim. 1995. "The Stability of German Money Demand: Tests of the
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 286-301.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT> Harb, N. 2004. "Money Demand Function: A Heterogeneous Panel
 Application." >i>Applied Economics Letters>/i> 11, no. 9:
 551-555.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT> Hirata, H.; S. H. Kim; and M. A. Kose. 2004. "Integration and
 Fluctuations: The Case of MENA." >i>Emerging Markets Finance and Trade>/i>
 40, no. 6 (November-December): 48-67.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>19</BIBL>	   <BIBTEXT> Hirata, H.; S. H. Kim; and M. A. Kose.
 2007. "Sources of Fluctuation: The Case of MENA." >i>Emerging Markets
 Finance and Trade>/i> 43, no. 1 (January-February): 5-34.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT> Hoffman, D. L.,
 and R. H. Rasche. 1991. "Long-Run Income and Interest Elasticities of
 Money Demand in the United States." >i>Review of Economics and
 Statistics>/i> 73, no. 4 (November): 665-674.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT> Hoffman, D. L., and C.
 Tahiri. 1994. "Money Demand in Morocco: Estimating Long-Run Elasticities
 for a Developing Country." >i>Oxford Bulletin of Economics and
 Statistics>/i> 56, no. 3 (August): 305-324.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>22</BIBL>	     <BIBTEXT> Johansen, S. 1988.
 "Statistical Analysis of Cointegration Vectors." >i>Journal of Economic
 Dynamics and Control>/i> 12: 231-254.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>23</BIBL>	   <BIBTEXT> Johansen, S. 1992. "Testing Weak
 Exogeneity and the Order of Cointegration in UK Money Demand Data."
 >i>Journal of Policy Modeling>/i> 14, no. 3 (June): 313-334.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>24</BIBL>	  <BIBTEXT> Karfakis, C.
 I., and A. Parikh. 1993. "A Cointegration Approach to Monetary Targeting
 in Australia." >i>Australian Economic Papers>/i> 32, no. 60 (June):
 53-70.</BIBTEXT>      </REF>	   <REF>	<BIBL>25</BIBL>       
 <BIBTEXT> Laidler, D. E.W. 1993. >i>The Demand for Money: Theories,
 Evidence and Problems>/i>, 4th ed. New York: HarperCollins
 College.</BIBTEXT>	 </REF>      <REF>	  <BIBL>26</BIBL>	
 <BIBTEXT> MacDonald, G. A. 1990. "Testing for Stationarity and
 Co-Integration: An Application to Saudi-Arabian Monetary Data." >i>Applied
 Economics>/i> 22, no. 11: 1577-1590.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>27</BIBL>	  <BIBTEXT> McNown, R., and M. S. Wallace. 1992.
 "Cointegration Tests of a Long-Run Relationship Between Money Demand and
 the Effective Exchange Rate." >i>Journal of International Money and
 Finance>/i> 11 (February): 107-114.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>28</BIBL>	 <BIBTEXT> Muscatelli, V. A., and L. Papi. 1990.
 "Cointegration, Financial Innovation and Modelling the Demand for Money in
 Italy." >i>Manchester School>/i> 58, no. 3 (September): 242-259.</BIBTEXT>
      </REF>	  <REF>        <BIBL>29</BIBL>	      <BIBTEXT> Pesaran, M.
 H.; Y. Shin; and R. J. Smith. 2001. "Bounds Testing Approaches to the
 Analysis of Level Relationships." >i>Journal of Applied Econometrics>/i>
 16, no. 3: 289-326.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>30</BIBL>	<BIBTEXT> Sussmuth, B., and U. Woitek. 2004.
 "Business Cycles and Comovement in Mediterranean Economies." >i>Emerging
 Markets Finance and Trade>/i> 40, no. 6 (November-December):
 7-27.</BIBTEXT>      </REF>	  <REF>        <BIBL>31</BIBL>	     
 <BIBTEXT> von Hagen, J. 1993. "Monetary Union, Money Demand and Money
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 Review>/i> 37, no. 4: 803-836.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:44:y:2008:i:1:p:62-83




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 2 
Volume: 41 
Year: 2005 
Month: 3 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=WHCXF6NE88BP24PG 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
Handle: RePEc:mes:emfitr:v:41:y:2005:i:2:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: ULRIKE HOTOPP 
Author-X-Name-First: ULRIKE 
Author-X-Name-Last: HOTOPP 
Author-Name: SLAVO RADOSEVIC 
Author-X-Name-First: SLAVO 
Author-X-Name-Last: RADOSEVIC 
Author-Name: KATE BISHOP 
Author-X-Name-First: KATE 
Author-X-Name-Last: BISHOP 
Title:         Trade and Industrial Upgrading in Countries of Central and Eastern Europe: Patterns of Scale- and Scope-Based Learning       
Abstract:
       This paper explores mechanisms linking trade and restructuring in
 Central and Eastern European (CEE) countries through learning and
 industrial upgrading. These are reflected in changes in the composition of
 trade through changes in the relative shares of particular products and
 clusters in exports (scale), and in the number of products exported
 (scope). An analysis of export clusters shows the decreasing importance of
 commodities (homogeneous resource-based goods) and a shift toward
 technology and labor-intensive products to be a common trend. However,
 differences between the countries are strong with respect to changes in
 both scale and scope in technology and labor-intensive activities. These
 differences show that trade-based learning mechanisms have strong effects
 on differences in industrial upgrading between CEE economies.	  
Journal: Emerging Markets Finance and Trade 
Pages: 20-37 
Issue: 4 
Volume: 41 
Year: 2005 
Month: 8 
Keywords: catching up, Central and Eastern Europe, industrial restructuring, international trade, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=6Q4VUJMBRK66JHH9 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Arrow, K. 1962. "The
 Economic Implications of Learning by Doing." Review of Economic Studies 29
 (June): 155-173.</BIBTEXT>	 </REF>      <REF>	  <BIBL>2</BIBL>   
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 of East European Producers on EU Markets: An Assessment of Product
 Quality." Working Paper no. 255, Vienna Institute for International
 Economic Studies (WIIW), April.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>3</BIBL>        <BIBTEXT>Cuaresma, J.C., and J. Woerz. 2003. "On
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 <BIBL>4</BIBL>        <BIBTEXT>Dulleck, U.; N. Foster; R. Stehrer; and J.
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 and M.E. Kreinin. 1979. "A Measure of 'Export-Similarity' and Its Possible
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 1996. "Intra-industry Trade, Foreign Direct Investment and the
 Reorientation of Eastern European Exports." Mimeo, World Bank, Washington,
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 <BIBTEXT>Hotopp, U. 2001. Trade, Innovation and Labour Markets: Three
 Essays on the UK's Trade with Europe. Brighton, UK: University of
 Sussex.</BIBTEXT>	</REF>	    <REF>	 <BIBL>8</BIBL>       
 <BIBTEXT>Hunya, G. 2000. "International Competitiveness Impacts of FDI in
 CEECs." Paper presented at the 6th EACES Conference, Barcelona, September
 7-9.</BIBTEXT>      </REF>	 <REF>	      <BIBL>9</BIBL>	   
 <BIBTEXT>Krugman, P., and M. Obstfeld. 2003. International Economics:
 Theory and Policy, 6th ed. New York: Addison-Wesley.</BIBTEXT>      </REF>
      <REF>	   <BIBL>10</BIBL>	  <BIBTEXT>Kubielas, S. 1998.
 "Transformation of Technology Patterns of Trade in the CEE Econo-mies."
 Science and Technology Policy Research (SPRU), Centre for Science,
 Technology, Energy and Environment Policy (STEEP), Discussion Paper 44,
 University of Sussex, UK.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>11</BIBL>	<BIBTEXT>Landesmann, M. 1997. "The Pattern of
 East-West European Integration: Catching-up or Falling Behind?" Vienna
 Institute for International Economic Studies (WIIW), Research Reports, no.
 212.</BIBTEXT>      </REF>	 <REF>	      <BIBL>12</BIBL>	    
 <BIBTEXT>------. 2000. "Structural Change in the Transition Economies 1989
 to 1999, Economic Survey of Europe." In Economic Survey of Europe, no.
 2/3, ed. United National Economic Commission for Europe, pp. 95-123.
 Geneva: UN-ECE.</BIBTEXT>	</REF>	    <REF>	 <BIBL>13</BIBL>   
     <BIBTEXT>Landesmann, M., and J. Burgstaller. 1997. "Vertical Product
 Differentiation in EU Markets: the Relative Position of East European
 Producers." Vienna Institute for International Economic Studies (WIIW),
 Research Reports, no. 234a.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>14</BIBL>	<BIBTEXT>Langlois, N.R. 1997. "Scale, Scope and the
 Reuse of Knowledge." Paper presented at the conference in honor of Brian
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 Systems of Innovation: Towards a Theory of Innovation and Interactive
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 <BIBL>16</BIBL>	<BIBTEXT>Neven, D. 1994. "Trade Liberalisation with
 Eastern Nations. How Sensitive?" Centre for Economic Policy Research
 (CEPR), Discussion Papers, no. 1000, London.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>17</BIBL>	     <BIBTEXT>Pavitt, K. 1984. "Sectoral
 Patterns of Technical Change: Towards a Taxonomy and a Theory." Research
 Policy 13, no. 6: 343-373.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>18</BIBL>	<BIBTEXT>Radosevic, S. 1999. "Patterns of
 Innovative Activities in Countries of Central and Eastern Europe: An
 Analysis Based on Comparison of Innovation Surveys." Science and
 Technology Policy Research (SPRU), Electronic Working Papers Series
 (SEWPS), no. 35, University of Sussex, UK.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT>Redding, S. 1999. "Dynamic
 Comparative Advantage and the Welfare Effects of Trade." Oxford Economic
 Papers 51, no. 1: 15-39.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>20</BIBL>	<BIBTEXT>Stehrer, R.; M. Landesmann; and J.
 Burgstaller. 2000. "Catching-Up at the Industrial Level: Prospects for the
 CEECs." In WIIW Structural Report 2000, M.A. Landesmann, ed., ch. 7.
 Vienna: WIIW.</BIBTEXT>      </REF>	  <REF>        <BIBL>21</BIBL>	   
   <BIBTEXT>Wolfmayr-Schnitzer, Y. 1998. "Trade Performance of CEECs
 According to Technology Classes." In Competitiveness of Transition
 Economies, pp. 41-70. Paris: Proceedings.</BIBTEXT>	  </REF>      <REF>
	<BIBL>22</BIBL>        <BIBTEXT>Zoltan, M.J.; M.A. Kovacs; and A.
 Oszlay. 2001. "How Far Has Trade Integration Ad-vanced? An Analysis of the
 Actual and Potential Trade of Three Central and Eastern European
 Countries." Journal of Comparative Economics 29, no. 2: 276-292.</BIBTEXT>
      </REF>	
Handle: RePEc:mes:emfitr:v:41:y:2005:i:4:p:20-37




Template-Type: ReDIF-Article 1.0
Author-Name: A. ÖZLEM ÖNDER 
Author-X-Name-First: A. ÖZLEM 
Author-X-Name-Last: ÖNDER 
Title:         Forecasting Inflation in Emerging Markets by Using the Phillips Curve and Alternative Time Series Models       
Abstract:
       The aim of this paper is to investigate the performance of the
 Phillips curve to forecast inflation in a high inflation emerging market
 country by taking Turkey as a case. For this purpose, we compare the
 forecasting performance of the Phillips curve with alternative time series
 models, namely, the univariate ARIMA model, vector autoregression and
 vector error correction model, and a naive no-change model. The data
 pertains to the quarterly inflation rate in Turkey for the 1987-2001
 period. The results show that inflation forecasts obtained from the
 Phillips curve are found to be more accurate than forecasts based on other
 macroeconomic variables. The remaining models outperform the "no-change
 model" in most of the cases.	 
Journal: Emerging Markets Finance and Trade 
Pages: 71-82 
Issue: 2 
Volume: 40 
Year: 2004 
Month: 3 
Keywords: forecasting, inflation, Phillips curve, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=EXAQBD9EUT6GLKWJ 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Atkeson, A. 2001. "Are
 Phillips Curves Useful for Forecasting Inflation?" Federal Reserve Bank of
 Minneapolis Quarterly Review 25, no. 1: 2-11.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Bikker, J.A. 1998. "Inflation
 Forecasting for Aggregates of EU-7 and EU-14 with Bayesian VAR Models."
 Journal of Forecasting 17, no. 2: 147-165.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>3</BIBL>	    <BIBTEXT>Box, G.E.P., and G.M. Jenkins.
 1976. Time Series Analysis: Forecasting and Control. San Francisco:
 Holden-Day.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>	  
 <BIBTEXT>Engert, W., and S. Hendry. 1998. "Forecasting Inflation with
 M1-VECM: Part Two." Working Paper 98-6, Bank of Canada, Ottawa.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT>Ertug&not;rul,
 A., and F. Selçuk. 2001. "A Brief Account of the Turkish Economy,
 1980-2000." Russian and East European Finance and Trade 37, no. 6
 (November-December): 6-30.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>6</BIBL>        <BIBTEXT>Gordon, R.J. 1977. "Can Inflation of the
 1970s Be Explained?" Brookings Papers on Economic Activity 1:
 253-277.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT>Granger, C.W.J. 1983. "Cointegrated Variables and
 Error-Correcting Models." Discussion Paper, University of California, San
 Diego.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT>Günçavdé, &Ouml;., and B.Z. Orbay. 2001. "Exchange Rates,
 Relative Domestic Prices, and Disinflation Program in Turkey." Russian and
 East European Finance and Trade 37, no. 4 (July-August): 39-49.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>9</BIBL>	    <BIBTEXT>Günçavdé,
 &Ouml;.; H. Levent; and B. ülengin. 2000. "Yüksek ve Deg&not;is*ken
 Enflasyonun Tahmininde Alternatif Modellerin Kars*élas*térélmasé: Türkiye
 &Ouml;rneg&not;i" [A Comparison of Alternative Models of Inflation to
 Forecast High and Volatile Inflation: The Case of Turkey]. METU Studies in
 Development 27, no. 1-2: 149-171.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>10</BIBL>	<BIBTEXT>Hendry, D.F., and G.E. Mizon. 2000.
 "Reformulating Empirical Macro-Econometric Modelling." Oxford Review of
 Economic Policy 16, no. 4: 138-159.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>11</BIBL>	 <BIBTEXT>Hodrick, R.J., and E.C. Prescott. 1997.
 "Post War Business Cycles: An Empirical Investigation." Journal of Money
 Credit and Banking 29, no. 1: 1-16.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>12</BIBL>	 <BIBTEXT>Holden, K. 1995. "Vector Autoregression
 Modelling and Forecasting." Journal of Forecasting 14, no. 3:
 159-166.</BIBTEXT>	 </REF>      <REF>	  <BIBL>13</BIBL>	
 <BIBTEXT>Johansen, S. 1988. "Statistical Analysis of Cointegration
 Vectors." Journal of Economic Dynamics and Control 12, no. 2-3:
 231-254.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT>Lee, J. 1999. "Alternative P* Models of Inflation Forecasts."
 Economic Inquiry 37, no 2: 312-325.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>15</BIBL>	 <BIBTEXT>Mirmirani, S., and H.C. Li. 2001. "The
 United States' Inflation Forecasting with Neural Networks." International
 Review of Economics and Business 48, no 4: 487-502.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>16</BIBL>	 <BIBTEXT>Mitra, D., and M. Rashid.
 1996. "Comparative Accuracy of Forecasts of Inflation: A Canadian Study."
 Applied Economics 28, no. 12: 1633-1637.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>17</BIBL>	      <BIBTEXT>Nadal-De Simone, F. 2000.
 "Forecasting Inflation in Chile Using State Space and Regime Switching
 Models." IMF Working Paper WP/00/162, Washington, DC.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT>Nas, T., and M.J.
 Perry. 2001. "Turkish Inflation and Real Output Growth, 1963-2000."
 Russian and East European Finance and Trade 37, no. 6 (November-December):
 31-46.</BIBTEXT>      </REF>	   <REF>	<BIBL>19</BIBL>       
 <BIBTEXT>Phillips, P.C.B., and P. Perron. 1988. "Testing for a Unit Root
 in Time Series Regression." Biometrika 75, no. 2: 335-346.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>20</BIBL>	 <BIBTEXT>Sachs, J. 1980.
 "The Changing Cyclical Behavior of Wages and Prices: 1890-1976." American
 Economic Review 70, no. 1: 78-90.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>21</BIBL>	<BIBTEXT>Selçuk, F. 1996. "Forecasting Inflation
 Using Interest Rates and Time Series Models." Yapi Kredi Economic Review
 7, no 1: 39-47.</BIBTEXT>	</REF>	    <REF>	 <BIBL>22</BIBL>   
     <BIBTEXT>Sims, C.A. 1980. "Macroeconomics and Reality." Econometrica
 48, no. 1: 1-48.</BIBTEXT>	 </REF>      <REF>	  <BIBL>23</BIBL>  
      <BIBTEXT>Stock, J.H., and M.W. Watson. 1999. "Forecasting Inflation."
 Journal of Monetary Economics 44, no. 2: 293-335.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>24</BIBL>        <BIBTEXT>Svensson, L.E.O. 1996.
 "Inflation Forecast Targeting: Implementing and Monitoring Inflation
 Targets." Seminar Paper 615, Institute for Economic Studies, Stockholm
 University.</BIBTEXT>	    </REF>	<REF>	     <BIBL>25</BIBL>	   
 <BIBTEXT>------. 2002. "Inflation Targeting: Should It Be Modeled as an
 Instrument Rule or a Targeting Rule?" European Economic Review 46, no.
 4-5: 771-780.</BIBTEXT>      </REF>	  <REF>        <BIBL>26</BIBL>	   
   <BIBTEXT>Theil, H. 1971. Applied Economic Forecasting. Amsterdam:
 North-Holland.</BIBTEXT>      </REF>	   <REF>	<BIBL>27</BIBL>    
    <BIBTEXT>Tkacz, G. 2001. "Neural Network Forecasting of Canadian GDP
 Growth." International Journal of Forecasting 17, no. 1: 57-69.</BIBTEXT> 
     </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:2:p:71-82




Template-Type: ReDIF-Article 1.0
Author-Name: PIN-HUANG CHOU 
Author-X-Name-First: PIN-HUANG 
Author-X-Name-Last: CHOU 
Author-Name: MEI-CHEN LIN 
Author-X-Name-First: MEI-CHEN 
Author-X-Name-Last: LIN 
Author-Name: MIN-TEH YU 
Author-X-Name-First: MIN-TEH 
Author-X-Name-Last: YU 
Title:         Margins and Price Limits in Taiwan's Stock Index Futures Market       
Abstract:
       This study extends the framework of Brennan (1986) to find the
 cost-minimizing combination of spot limits, futures limits, and margins
 for stock and index futures in the Taiwan market. Our empirical results
 show that the cost-minimization combination of margins, spot price limits,
 and futures price limits is 7 percent, 6 percent, and 6 percent,
 respectively, when the index level is less than 7,000. When the index
 level ranges from 7,000 to 9,000, the efficient futures contract calls for
 a combination of 6.5 percent, 5 percent, and 6 percent. The optimal
 margin, reneging probability, and corresponding contract cost are less
 than those without price limits. Price limits may partially substitute for
 margin requirements in ensuring contract performance, with a default risk
 lower than the 0.3 percent rate that is accepted by the Taiwan Futures
 Exchange. On the other hand, though imposing equal price limits of 7
 percent on both the spot and futures markets does not coincide with the
 efficient contract design, it does have a lower contract cost and margin
 requirement (7.75 percent) than that without imposing price limits (8.25
 percent).    
Journal: Emerging Markets Finance and Trade 
Pages: 62-88 
Issue: 1 
Volume: 42 
Year: 2006 
Month: 2 
Keywords: default risk, futures, margin requirement, price limits, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=915J11711GYKTNKF 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Booth, G.G.; J.P.
 Broussard; T. Martikainen; and V. Puttonen. 1997. "Prudent Margin Levels
 in the Finnish Stock Index Futures Market." Management Science 43, no. 8:
 1177-1188.</BIBTEXT>	   </REF>      <REF>	    <BIBL>2</BIBL>	 
 <BIBTEXT>Brennan, M.J. 1986. "Theory of Price Limits in Futures Markets."
 Journal of Financial Economics 16, no. 2: 213-233.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>3</BIBL>        <BIBTEXT>CFTC (Commodity Futures
 Trading Commission). 1988. "Final Report on Stock Index Futures and Cash
 Market Activity During October 1987 to the U.S." Commodity Futures Trading
 Commission, Division of Economic Analysis and Division of the Trading and
 Markets.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT>Chicago Board of Trade. 1987. "The Report of the Chicago Board of
 Trade to the Presidential Task Force on Market Mechanisms."</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT>Cotter, J. 2001.
 "Margin Exceedences for European Stock Index Futures Using Extreme Value
 Theory." Journal of Banking and Finance 25, no. 8: 1475- 1502.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>6</BIBL>	   <BIBTEXT>Dewachter, H.,
 and G. Gielens. 1999. "Setting Futures Margins: The Extremes Ap-proach."
 Applied Financial Economics 9, no. 2: 173-181.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT>Edwards, F.R., and S.N.
 Neftci. 1988. "Extreme Price Movements and Margin Levels in Futures
 Markets." Journal of Futures Markets 4, no. 6: 369-392.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT>Fenn, G.W., and P.
 Kupiec. 1993. "Prudential Margin Policy in a Future-Style Settlement
 System." Journal of Futures Markets 13, no. 4: 389-408.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>9</BIBL>	<BIBTEXT>Figlewski, S.
 1984. "Margins and Market Integrity: Margin Setting for Stock Index
 Futures and Options." Journal of Futures Markets 4, no. 3:
 385-416.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT>GAO (General Accounting Office). 1988. "Financial Markets:
 Preliminary Observations on the October 1987 Crash." Report to the
 Congressional Requesters, Washington, DC.</BIBTEXT>	  </REF>      <REF>
	<BIBL>11</BIBL>        <BIBTEXT>Gay, G.D.; W.C. Hunter; and R.W.
 Kolb. 1986. "A Comparative Analysis of Futures Contract Margins." Journal
 of Futures Markets 6, no. 2: 307-324.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>12</BIBL>	   <BIBTEXT>Hull, J.C. 1993. Options, Futures and
 Other Derivative Securities. Englewood Cliffs, NJ: Prentice
 Hall.</BIBTEXT>      </REF>	  <REF>        <BIBL>13</BIBL>	     
 <BIBTEXT>Longin, François M. 1999. "Optimal Margin Level in Futures
 Markets: Extreme Price Movements." Journal of Futures Markets 19, no. 2:
 127-152.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT>SEC (Securities and Exchange Commission). 1988. "The October 1987
 Market Break." Division of Market Regulation Report, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>15</BIBL>	   
 <BIBTEXT>Telser, Lester G. 1981. "Margins and Futures Contracts." Journal
 of Futures Markets 1, no. 2: 225-253.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>16</BIBL>	   <BIBTEXT>Warshawsky, M.J. 1989. "The Adequacy
 and Consistency of Margin Requirements: The Cash, Futures and Options
 Segments of the Equity Markets." Review of Futures Markets 8, no. 3:
 420-437.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:42:y:2006:i:1:p:62-88




Template-Type: ReDIF-Article 1.0
Author-Name: ALPAY FILIZTEKIN 
Author-X-Name-First: ALPAY 
Author-X-Name-Last: FILIZTEKIN 
Title:         A Multisectoral Cofeature Analysis of Fluctuations in the Turkish Economy       
Abstract:
       While there are numerous empirical studies on business cycles for
 developed economies, there are very few analyses regarding developing
 countries. The purpose of this paper is to document the comovement among
 sectoral outputs in Turkey, a developing country, and provide evidence
 about the importance of real factors to explain fluctuations.
 Specifically, we ask whether business activity in Turkey is generated by a
 few forces and whether there are differences in the shape, duration, and
 amplitude of cycles of individual sectors. Furthermore, we examine the
 relative importance of permanent and transitory innovations. Using
 sectoral data for fifty years, and employing cointegration and cofeature
 analysis, we find evidence in favor of strong comovement of sectors in the
 Turkish economy. Nonetheless, the evidence that almost all variation in
 total innovations in all sectors could be attributable to permanent
 innovations implies that the sources of the fluctuations could be real
 factors. The findings about the procyclicality and amplitudes of
 transitory components, as well as about the relative importance of
 permanent innovations, is unlike the evidence reported for advanced
 economies in earlier research.    
Journal: Emerging Markets Finance and Trade 
Pages: 95-111 
Issue: 6 
Volume: 40 
Year: 2004 
Month: 11 
Keywords: business cycles, comovement, persistence, sectoral cycles, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=JQVNWT5WQY7NWN7D 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Abadir, K.M.; K. Hadri;
 and E. Tzavalis. 1999. "The Influence of VAR Dimensions on Estimator
 Biases." Econometrica 67, no. 1 (January): 163-182.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>2</BIBL>	<BIBTEXT>Agenor, P.-R.; C.J.
 McDermott; and E.S. Prasad. 1999. "Macroeconomic Fluctuations in
 Developing Countries: Some Stylized Facts." International Monetary Fund,
 Working Paper No. 99/35, Washington, DC.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>3</BIBL>	     <BIBTEXT>Backus, D., and P. Kehoe. 1992.
 "International Evidence on the Historical Properties of Business Cycles."
 American Economic Review 82, no. 4 (September): 864-888.</BIBTEXT>	
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 M.D. Bordo; and L. Jonung. 1999. "Historical Evidence on Business Cycles:
 The International Experience." In Beyond Shocks: What Causes Business
 Cycles? ed. J.C. Fuhrer and S. Schuh, pp. 65-113. Boston: Federal Reserve
 Bank of Boston.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>    
    <BIBTEXT>Bulutay, T. 1995. Employment, Unemployment and Wages in
 Turkey. Ankara: International Labour Organization.</BIBTEXT>	   </REF>  
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 Donaldson. 1993. "Methodological and Empirical Issues in Real Business
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 <BIBTEXT>Durlauf, S.N. 1989. "Output Persistence, Economic Structure, and
 the Choice of Stabilization Policy." Brookings Papers on Economic
 Activity, no. 2: 69-136.</BIBTEXT>	 </REF>      <REF>	 
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 1 (February): 83-113.</BIBTEXT>      </REF>	  <REF>       
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 Sectoral Output." Economic Modelling 19, no. 1 (January):
 91-104.</BIBTEXT>	</REF>	    <REF>	 <BIBL>11</BIBL>       
 <BIBTEXT>Hoffmaister, A.W., and J.E. Roldos. 1997. "Are Business Cycles
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 Business Cycles." Journal of Political Economy 91, no. 1 (February):
 39-69.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>       
 <BIBTEXT>Lucke, B. 1998. "Productivity Shocks in a Sectoral Real Business
 Cycle Model for West Germany." European Economic Review 42, no. 2
 (February): 311-327.</BIBTEXT>      </REF>	 <REF>	     
 <BIBL>16</BIBL>	<BIBTEXT>Osterwald-Lenum, M. 1992. "A Note with
 Quantiles of the Asymptotic Distribution of the Maximum Likelihood
 Cointegration Rank Test Statistics." Oxford Bulletin of Economics and
 Statistics 54, no. 3 (August): 461-471.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>17</BIBL>	     <BIBTEXT>Stock, J.H., and M.W. Watson. 1988.
 "Testing for Common Trends." Journal of American Statistical Association
 83, no. 404: 1097-1107.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>18</BIBL>	<BIBTEXT>Temel, A. 1998. Gelis*me Sürecinde
 Sektörel Yapéda Deg&not;is*meler: Imalat Sanayii ve Istihdam [Changes in
 Sectoral Structure During Development: Manufacturing and Employment].
 Ankara: Turkish State Planning Organization.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>19</BIBL>	     <BIBTEXT>Vahid, F., and R.F. Engle.
 1993. "Common Trends and Common Cycles." Journal of Applied Economics 8,
 no. 4 (October-December): 341-360.</BIBTEXT>	   </REF>    
Handle: RePEc:mes:emfitr:v:40:y:2004:i:6:p:95-111




Template-Type: ReDIF-Article 1.0
Author-Name: BALÁZS HORVÁTH 
Author-X-Name-First: BALÁZS 
Author-X-Name-Last: HORVÁTH 
Author-Name: ISTVÁN P. SZ&Eacute;KELY 
Author-X-Name-First: ISTVÁN P. 
Author-X-Name-Last: SZ&Eacute;KELY 
Title:         The Role of Medium-Term Fiscal Frameworks for Transition Countries : The Case of Bulgaria       
Abstract:
       This paper discusses the foundations for a medium-term fiscal
 framework for Bulgaria, a transition economy aspiring to join the European
 Union (EU). The paper argues that a well-designed framework can help to
 enhance the credibility of macroeconomic policies and facilitate
 preparations for EU membership. It presents an illustrative scenario for
 Bulgaria, utilizing a broad concept of net public debt.    
Journal: Emerging Markets Finance and Trade 
Pages: 86-113 
Issue: 1 
Volume: 39 
Year: 2003 
Month: 1 
Keywords: fiscal management, medium-term fiscal framework, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=MFCTKJ2U9RL5249L 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Brixi, H.P.; S.
 Shatalov; and L. Zlaoui. 2000. Managing Financial Risk in Bulgaria:
 Background Study for the 2000 Country Economic Strategy for Bulgaria.
 Washington, DC: World Bank.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>2</BIBL>        <BIBTEXT>Buiter, W.H. 1989. Principles of Budgetary
 and Financial Policy. New York: Harvester-Wheatsheaf.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>3</BIBL>	<BIBTEXT>------. 1997.
 "Aspects of Fiscal Performance in Some Transition Economies Under
 Fund-Supported Programs." IMF Working Paper WP/97/31, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>	  
 <BIBTEXT>Chalk, N., and R. Hemming. 2000. "Assessing Fiscal Sustainability
 in Theory and Practice." IMF Working Paper WP/00/81, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>	  
 <BIBTEXT>Chand, S.K., and A. Jaeger. 1996. "Aging Population and Public
 Pension Schemes." IMF Occasional Paper no. 147, Washington, DC.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>6</BIBL>	    <BIBTEXT>Christou, C.,
 and C. Daseking. 2002. "Balancing Fiscal Priorities." In Into the
 E.U.--Policy Frameworks in Central Europe, ed. R.A. Feldman, P. Doyle, and
 M. Watson, pp. 141- 187. Washington, DC: IMF.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>7</BIBL>	    <BIBTEXT>Corsetti, G. 1990. "Testing
 for Solvency of the Public Sector: An Application to Italy." Discussion
 Paper no. 617, Economic Growth Center, Yale University, New
 Haven.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT>Horváth, B. 2000. "Pension and Health Reforms in
 Bulgaria--Restoring Sustainability." In International Monetary Fund:
 Selected Issues and Statistical Appendix for the 1999 Article IV
 Consultation with Bulgaria. Washington, DC: IMF (www.imf.org/external/
 country/BGR/index.htm).</BIBTEXT>	</REF>	    <REF>	
 <BIBL>9</BIBL>        <BIBTEXT>Horváth, B., and Székely, I.P. 2001. "The
 Role of Medium-Term Fiscal Frameworks for Transition Countries: The Case
 of Bulgaria." IMF Working Paper WP/01/11, Washington, DC
 (www.imf.org/external/country/BGR/index.htm).</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT>IMF. 2000. Government Finance
 Statistics Yearbook. Washington, DC: International Monetary
 Fund.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	     
 <BIBTEXT>------. 2001. Government Finance Statistics Yearbook. Washington,
 DC: International Monetary Fund.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>12</BIBL>	<BIBTEXT>International Financial Statistics. 2000.
 2000Yearbook. Washington, DC: International Monetary Fund.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT>National
 Statistical Institute. 1998. "Report on Survey-Based Research of the
 Hidden Economy" [in Bulgarian]. National Statistical Institute,
 Sofia.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:39:y:2003:i:1:p:86-113




Template-Type: ReDIF-Article 1.0
Author-Name: MARTIN PETRI 
Author-X-Name-First: MARTIN 
Author-X-Name-Last: PETRI 
Author-Name: GÜNTHER TAUBE 
Author-X-Name-First: GÜNTHER 
Author-X-Name-Last: TAUBE 
Title:         Fiscal Policy Beyond the Budget : Quasi-Fiscal Activities in the Energy Sectors of the Former Soviet Union       
Abstract:
       A decade into the transition, many successor states of the Former
 Soviet Union (FSU) continue to use pervasive energy sector quasi-fiscal
 activities, especially low energy prices and the toleration of payment
 arrears, to provide large implicit and untargeted subsidies to households
 and enterprises. These quasi-fiscal activities disguise the size of the
 government, cause over-consumption and waste, and contribute to
 macroeconomic imbalances. Based on two case studies--one of an
 energy-exporting country (Azerbaijan) and one of an energy-importing
 country (Ukraine)--and a survey of other FSU countries, the study finds
 that energy quasi-fiscal activities have declined in some of the
 energy-importing countries (e.g., Armenia, Kyrgyz Republic, Ukraine), but
 risen in energy-rich countries (e.g., Azerbaijan, Russia, Turkmenistan),
 largely on account of higher international oil prices. We found that
 energy sector payment arrears have triggered tax and other payment arrears
 by energy companies, and helped to perpetuate a vicious circle involving
 arrears, offsets, netting operations, and noncash payments. Policy
 recommendations are straightforward, but politically difficult to
 implement: increase energy prices and eliminate preferential tariffs or
 the free provision of services for specific consumer groups, combined with
 the provision of explicitly budgeted and better targeted cash transfers to
 needy population groups, and, if necessary, explicit subsidies to
 enterprises. We also argue that greater efforts are required to capture
 energy quasi-fiscal activities through improved public data dissemination,
 fiscal analysis, and measures that promote fiscal transparency and
 accountability.    
Journal: Emerging Markets Finance and Trade 
Pages: 24-42 
Issue: 1 
Volume: 39 
Year: 2003 
Month: 1 
Keywords: energy prices, energy sector, fiscal policy, Former Soviet Union transition countries, implicit subsidies, implicit taxes, payment arrears, quasi-fiscal activities, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=RB48JR3MQJT2YNLF 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>EBRD. 2001. Transition
 Report 2001: Energy in Transition. London: European Bank for
 Reconstruction and Development.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>2</BIBL>        <BIBTEXT>IMF. 1998. "Republic of Uzbekistan: Recent
 Economic Developments." IMF Staff Country Report No. 98/116, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>	  
 <BIBTEXT>------. 2000. "Azerbaijan Republic: Report on the Observance of
 Standards and Codes (ROSC) Fiscal Transparency Module." International
 Monetary Fund, Washington, DC
 (www.imf.org/external/np/rosc/aze/fiscal.htm).</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT>IMF, World Bank, OECD, and
 EBRD (ed.). 1991. A Study of the Soviet Economy, vol. 3. Paris:
 Organization for Economic Cooperation and Development.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT>Johnson, S.; D.
 Kaufmann; and A. Shleifer. 1997. "The Unofficial Economy in Transition."
 In Brookings Papers on Economic Activity: 2, ed. W.C. Brainard and G.L.
 Perry, pp. 159-239. Washington, DC: Brookings Institution.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Krishnaswany, V.
 1999. "Non-Payment in the Electricity Sector in Eastern Europe and the
 Former Soviet Union." World Bank Technical Paper no. 423, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>7</BIBL>	  
 <BIBTEXT>Mackenzie, G.A., and P. Stella. 1996. "Quasi-Fiscal Operations of
 Public Financial Institutions." IMF Occasional Paper no. 142, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>	  
 <BIBTEXT>Mamedov, F., and E. Huseynov. 2000. "Azerbaijan Republic Energy
 Sector Quasi-Fiscal Deficit Assessment." World Bank, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>9</BIBL>	  
 <BIBTEXT>Nell, J. 2001a. "Fiscal Implications of Low Utility Collection
 Rates." Macroeconomic Policy Group, Baku, Azerbaijan.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT>------. 2001b.
 "SOCAR Taxation and Energy Sector Subsidies." Macroeconomic Policy Group,
 Baku, Azerbaijan.</BIBTEXT>	  </REF>      <REF>	   <BIBL>11</BIBL> 
       <BIBTEXT>Oxford Analytica. Various issues. Oxford Analytica, Oxford,
 UK.</BIBTEXT>	    </REF>	<REF>	     <BIBL>12</BIBL>	   
 <BIBTEXT>Petri, M.; G. Taube; and O. Tsyvinski. 2002. "Energy Sector
 Quasi-Fiscal Activities in the Countries of the Former Soviet Union." IMF
 Working Paper no. 02/60, Washington, DC.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>13</BIBL>	      <BIBTEXT>Pinto, B.; V. Drebentsov; and A.
 Morozov. 2000. "Dismantling Russia's Nonpayments System--Creating
 Conditions for Growth." World Bank Technical Paper no. 471, Washington,
 DC.</BIBTEXT>	    </REF>	<REF>	     <BIBL>14</BIBL>	   
 <BIBTEXT>Robinson, D.J., and P. Stella. 1993. "Amalgamating Central Bank
 and Fiscal Deficits." In How to Measure the Fiscal Deficit: Analytical and
 Methodological Issues, ed. M.I. Blejer and A. Cheasty, pp. 236-258.
 Washington, DC: International Monetary Fund.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT>Rosenberg, C.B., and M. de
 Zeeuw. 2000. "Welfare Effects of Uzbekistan's Foreign Exchange Regime."
 IMF Working Paper no. 00/61, Washington, DC.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT>Tanzi, V. 1993. "The Budget
 Deficit in Transition: A Cautionary Note." IMF Staff Papers 40, September,
 pp. 697-707.</BIBTEXT>      </REF>	 <REF>	      <BIBL>17</BIBL>	   
  <BIBTEXT>Taube, G. 2001. "Fiscal Policy and Quasi-Fiscal Activities in
 the Islamic Republic of Iran." Paper presented at the conference of the
 Central Bank of the Islamic Republic of Iran on Structural Reforms in the
 Real and Financial Sector of the Iranian Economy, Tehran.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>18</BIBL>	 <BIBTEXT>World Bank. 1997.
 "Central and Eastern Europe: Power Sector Reform in Selected Countries."
 Energy Sector Management Assistance Program Paper no. 196/97, World Bank,
 Washington, DC.</BIBTEXT>	</REF>	    <REF>	 <BIBL>19</BIBL>   
     <BIBTEXT>------. 1998. "Profile of Energy Sector Activities in the
 World Bank in Europe and Central Asia Region." World Bank Working Paper
 no. 16, Washington, DC.</BIBTEXT>	</REF>	  
Handle: RePEc:mes:emfitr:v:39:y:2003:i:1:p:24-42




Template-Type: ReDIF-Article 1.0
Author-Name: Rafael F. Schiozer 
Author-X-Name-First: Rafael F. 
Author-X-Name-Last: Schiozer 
Author-Name: Richard  Saito 
Author-X-Name-First: Richard  
Author-X-Name-Last: Saito 
Title: The Determinants of Currency Risk Management in Latin American Nonfinancial Firms 
Abstract:
 This paper investigates the determinants of currency risk management in
 nonfinancial firms in Argentina, Brazil, Chile, and Mexico, based on a
 panel data sample of firms that list as American depositary receipts from
 2001 to 2004. Our evidence indicates that derivatives held for hedging
 purposes can yield cash flows of the same order of magnitude of capital
 expenditures, operational earnings, and financial expense, unlike what was
 previously found by Guay and Kothari (2003) for U.S. firms. We study not
 only the decision to use derivatives, but also the magnitude of
 derivatives holdings and the importance of operational hedging in firms'
 risk management strategies. We find that economies of scale, financial
 distress costs, informational asymmetry, and growth opportunities are
 important for risk management decisions, and that firms do not hedge
 because of potential tax benefits.
Journal: Emerging Markets Finance and Trade 
Pages: 49-71 
Issue: 1 
Volume: 45 
Year: 2009 
Month: 1 
Keywords: derivatives, foreign exchange, Latin America, risk management, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=H3UR023G14N3P425 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Alkeback, P., and N.
 Hagelin. 1999. "Derivative Usage by Nonfinancial Firms in Sweden with an
 International Comparison." >i>Journal of International Financial
 Management and Accounting>/i> 10, no. 2: 105-121.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>2</BIBL>	      <BIBTEXT> Allayannis, G., and E.
 Ofek. 2001. "Exchange Rate Exposure, Hedging, and the Use of Foreign
 Currency Derivatives." >i>Journal of International Money and Finance>/i>
 20, no. 2: 273-296.</BIBTEXT>	    </REF>	<REF>	     <BIBL>3</BIBL>
	<BIBTEXT> Bank for International Settlements. 2005. >i>BIS
 Quarterly Review>/i> (March), ISSN 1683-0121: A99-A104.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Bartram, S.M.;
 G.M. Brown; and F.R. Fehle. 2006. "International Evidence on Financial
 Derivative Usage." Working Paper (available at >a target="_blank"
 href='http://papers.ssrn.com/sol3/papers.cfm?abstract_id=424883'>http://pa
 pers.ssrn.com/sol3/papers.cfm?abstract_id=424883>/a></BIBTEXT>      </REF>
      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT> Benavente, J.M.; C.A.
 Johnson; and F.G. MorandÃ©. 2003. "Debt Composition and Balance Sheet
 Effects of Exchange Rate Depreciations: A Firm-Level Analysis for Chile."
 >i>Emerging Markets Review>/i> 4, no. 4: 397-416.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>6</BIBL>	      <BIBTEXT> Bessembinder, H. 1991.
 "Forward Contracts and Firm Value: Investment Incentive and Contracting
 Effects." >i>Journal of Financial and Quantitative Analysis>/i> 26, no. 4:
 519-532.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Bodnar, G.M. and Gebhardt. 1998. "Derivatives Usage in Risk
 Management in U.S. and German non-financial Firms: A Comparatiave Survey."
 National Bureau of Economic Research, Working Paper 6705, Cambridge,
 MA.</BIBTEXT>	    </REF>	<REF>	     <BIBL>8</BIBL>	  
 <BIBTEXT> Bodnar, G.M.; G.H. Hayt; and R.C. Marston. 1996. "1995 Wharton
 Survey of Derivatives Usage by U.S. Non-Financial Firms." >i>Financial
 Management>/i> 25, no. 4: 113-133.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>9</BIBL>        <BIBTEXT> Bodnar, G.M.; G.H. Hayt; and R.C. Marston.
 1998. "1998 Survey of Financial Risk Management by U.S. Non-Financial
 Firms." >i>Financial Management>/i> 27, no. 4: 70-91.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>10</BIBL>	 <BIBTEXT> Bodnar, G.M.;
 G.H. Hayt; R.C. Marston; and C.W. Smithson. 1995. "Wharton Survey of
 Derivatives Usage by U.S. Non-Financial Firms." >i>Financial
 Management>/i> 24, no. 2: 104-125.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>11</BIBL>	<BIBTEXT> Bonomo, M.; B. Martins; and R. Pinto.
 2003. "Debt Composition and Exchange Rate Balance Sheet Effects in Brazil:
 A Firm Level Analysis." >i>Emerging Markets Review>/i> 4, no. 4:
 368-396.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT> Burnside, C.; M. Eichenbaum; and S. Rebelo. 1999. "Hedging and
 Financial Fragility in Fixed Exchange Rate Regimes." National Bureau of
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 pers.ssrn.com/sol3/papers.cfm?abstract_id=366840>/a></BIBTEXT>      </REF>
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 <BIBTEXT> Graham, J.R., and D.A. Rogers. 2002. "Do Firms Hedge in Response
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 and Panel Data>/i>. Cambridge, MA: MIT Press.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:45:y:2009:i:1:p:49-71




Template-Type: ReDIF-Article 1.0
Author-Name: Tigran  Poghosyan 
Author-X-Name-First: Tigran  
Author-X-Name-Last: Poghosyan 
Author-Name: EvÅ¾en  KoÄenda 
Author-X-Name-First: EvÅ¾en  
Author-X-Name-Last: KoÄenda 
Author-Name: Petr  ZemÄik 
Author-X-Name-First: Petr  
Author-X-Name-Last: ZemÄik 
Title: Modeling Foreign Exchange Risk Premium in Armenia 
Abstract:
 This paper applies stochastic discount factor methodology to modeling the
 foreign exchange risk premium in Armenia. We use weekly data on foreign
 and domestic currency deposits, which coexist in the Armenian banking
 system. This coexistence implies elimination of the cross-country risks
 and transaction costs, leaving the pure foreign exchange risk. It is shown
 that there exists a systematic time-varying risk premium that increases
 with maturity. Using two-currency affine term structure and generalized
 autoregressive conditional heteroskedasticity (GARCH)-in-mean models, we
 find that the central bank's foreign exchange market interventions and
 ratio-of-deposit volumes significantly affect public expectations about
 foreign exchange fluctuations. We also find that the foreign exchange risk
 premium accounts for the largest part of the interest differential. When
 accounting for economic and institutional differences, our results can be
 extended to other countries.
Journal: Emerging Markets Finance and Trade 
Pages: 41-61 
Issue: 1 
Volume: 44 
Year: 2008 
Month: 1 
Keywords: affine term structure models, Armenia, foreign exchange risk, forward premium puzzle, GARCH-in-mean, time-varying risk premium, transition and emerging markets, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=VK7R32XU477748X4 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Ang, A., and M.
 Piazzesi. 2003. "A No-Arbitrage Vector Autoregression of Term Structure
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 <BIBL>2</BIBL>        <BIBTEXT> Backus, D.; S. Foresi; and C. Telmer.
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 </REF>      <REF>	  <BIBL>4</BIBL>	<BIBTEXT> Baillie, R., and
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 Market." >i>Journal of International Economics>/i> 43, nos. 3-4:
 483-497.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
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 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT> Bansal, R., and M. Dahlquist.
 2000. "The Forward Premium Puzzle: Different Tales from Developed and
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 115-144.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT> Benati, L. 2006. "Affine Term Structure Models for the Foreign
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       <BIBTEXT> Chinn, M. 2006. "The (Partial) Rehabilitation of Interest
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 Economics and Statistics>/i> 78, no. 4: 748-750.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>20</BIBL>	      <BIBTEXT> Golinelli, R., and R.
 Rovelli. 2005. "Monetary Policy Transmission, Interest Rate Rules, and
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 Properties of Generalized Method of Moments Estimators."
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 and R. Peruga. 1990. "Can A Time-Varying Risk Premium Explain Excess
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 International Economics>/i> 28, nos. 1-2: 47-70.</BIBTEXT>	 </REF>    
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 Stock Return Data: Volume Versus GARCH Effects." >i>Journal of Finance>/i>
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 <BIBTEXT> Mark, N. 1988. "Time Varying Betas and Risk Premia in the
 Pricing of Forward Foreign Exchange Contracts." >i>Journal of Financial
 Economics>/i> 22, no. 2: 335-354.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>29</BIBL>	<BIBTEXT> Nelson, D. 1991. "Conditional
 Heteroskedasticity in Asset Returns: A New Approach." >i>Econometrica>/i>
 59, no. 2: 347-370.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>30</BIBL>	<BIBTEXT> Orlowski, L. 2004. "Exchange Rate Risk
 and Convergence to the Euro." Working Paper B 25/2004, ZEI, Center for
 European Integration Studies, Bonn.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>31</BIBL>	 <BIBTEXT> Panigirtzouglou, N. 2001. "Using Affine
 Models of the Term Structure to Estimate Risk Premia." European Financial
 Management Association (EFMA) 2001 Lugano Meeting (available at >a
 target="_blank"
 href='http://ssrn.com/abstract=264659'>http://ssrn.com/abstract=264659>/a>
 </BIBTEXT>	 </REF>      <REF>	  <BIBL>32</BIBL>	 <BIBTEXT>
 Sahay, R., and C. Vegh. 1995. "Dollarization in Transition Economies:
 Evidence and Policy Implications." International Monetary Fund Working
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 <BIBL>33</BIBL>	<BIBTEXT> Sarno, L., and M. Taylor. 2002. >i>The
 Economics of Exchange Rates.>/i> Cambridge: Cambridge University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>34</BIBL>       
 <BIBTEXT> Smith, P., and M. Wickens. 2002. "Asset Pricing with Observable
 Stochastic Discount Factor." >i>Journal of Economic Surveys>/i> 16, no. 3:
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 <BIBTEXT> Tai, C.-S. 1999. "Time-Varying Risk Premia in Foreign Exchange
 and Equity Markets: Evidence from Asia-Pacific Countries." >i>Journal of
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 of Financial Economics>/i> 5, no. 2: 177-188.</BIBTEXT>      </REF>	
Handle: RePEc:mes:emfitr:v:44:y:2008:i:1:p:41-61




Template-Type: ReDIF-Article 1.0
Author-Name: SUMON KUMAR BHAUMIK 
Author-X-Name-First: SUMON KUMAR 
Author-X-Name-Last: BHAUMIK 
Author-Name: STEPHEN GELB 
Author-X-Name-First: STEPHEN 
Author-X-Name-Last: GELB 
Title:         Determinants of Entry Mode Choice of MNCs in Emerging Markets : Evidence from South Africa and Egypt       
Abstract:
       It is now stylized that the importance of foreign direct investment
 for developing countries and emerging markets arises from the impact of
 the presence of multinational corporations (MNCs) in the host country on
 the productivity of local firms, by way of technology diffusion and
 competition. There is also general agreement that the extent of technology
 transfer by an MNC to a developing country affiliate depends on the extent
 of its control on the local affiliate and that, in turn, the extent of
 this control depends on the mode of entry of the MNC into the host
 country. However, the existing literature is based on the experience of
 developed countries and as such does not contribute to the literature on
 development economics. This article addresses this lacuna using unique
 firm-level data from South Africa and Egypt. Our results indicate that the
 determinants of entry mode choice not only differ between developed and
 developing countries, but also among developing countries. They also bring
 into question the role of MNCs in fostering productivity growth in
 developing countries.	  
Journal: Emerging Markets Finance and Trade 
Pages: 5-24 
Issue: 2 
Volume: 41 
Year: 2005 
Month: 3 
Keywords: entry mode choice, local institutions, local knowledge, multinational corporations (MNC), technology transfer, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=K10483H8HBM2HJFY 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Agarwal, S., and S.N.
 Ramaswami. 1992. "Choice of Foreign Market Entry Mode: Impact of
 Ownership, Location, and Internalization Factors." Journal of
 International Business Studies 23, no. 1: 1-27.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>2</BIBL>	    <BIBTEXT>Aitken, B.J., and A.E.
 Harrison. 1999. "Do Domestic Firms Benefit from Direct Foreign Investment?
 Evidence from Venezuela." American Economic Review 89, no. 3:
 605-618.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Asiedu, E., and H.S. Esfahani. 2001. "Ownership Structure in
 Foreign Direct Investment Projects." Review of Economics and Statistics
 83, no. 4: 647-662.</BIBTEXT>	    </REF>	<REF>	     <BIBL>4</BIBL>
	<BIBTEXT>Barbosa, N., and H. Louri. 2002. "On the Determinants of
 Multinationals' Ownership Preferences: Evidence from Greece and Portugal."
 International Journal of Industrial Organization 20, no. 4:
 493-515.</BIBTEXT>	 </REF>      <REF>	  <BIBL>5</BIBL>       
 <BIBTEXT>Barbosa, N.; P. Guimaraes; and D. Woodward. 2004. "Foreign Firm
 Entry in Portugal: An Application of Event Count Models." Applied
 Economics 36, no. 5: 465-472.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>6</BIBL>        <BIBTEXT>Blomstrom, M., and F. Sjoholm. 1999.
 "Technology Transfer and Spillovers: Does Local Participation with the
 Multinationals Matter?" European Economic Review 43, no. 4-6:
 915-923.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT>Blomstrom, M., and M. Zejan. 1989. "Why do Multinational Firms
 Seek Out Joint Ventures?" Working Paper no. 2987, National Bureau of
 Economic Research, Cambridge, MA.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT>Brouthers, K.D., and L.E. Brouthers. 2003.
 "Why Service and Manufacturing Entry Mode Choices Differ: The Influence of
 Transaction Cost Factors, Risk and Trust." Journal of Management Studies
 40, no. 5: 1179-1204.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>9</BIBL>        <BIBTEXT>Caves, R. E., and S. Mehra. 1986. "Entry of
 Foreign Multinationals into US Manufacturing Industries." In Competition
 in Global Industries, ed. M. Porter, pp. 449-482. Boston: Harvard Business
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   <BIBTEXT>Cho, K.R., and P. Padmanabhan. 1995. "Acquisition Versus New
 Venture: The Choice of Foreign Establishment Mode by Japanese Firms."
 Journal of International Management 1, no. 3: 255-285.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>11</BIBL>	 <BIBTEXT>Erramilli, K.M.,
 and C.P. Rao. 1993. "Service Firms' International Entry-Mode Choice: A
 Modified Transactions-Cost Analysis Approach." Journal of Marketing 57:
 19-38.</BIBTEXT>      </REF>	   <REF>	<BIBL>12</BIBL>       
 <BIBTEXT>Estrin, S., and K.E. Meyer. 2004. Investment Strategies in
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 <REF>	      <BIBL>13</BIBL>	     <BIBTEXT>Ethier, W.J. 1986. "The
 Multinational Firm." Quarterly Journal of Economics 101, no. 4:
 805-834.</BIBTEXT>	 </REF>      <REF>	  <BIBL>14</BIBL>	
 <BIBTEXT>Gatignon, H., and E. Anderson. 1988. "The Multinational
 Corporation's Degree of Control over Foreign Subsidiaries: An Empirical
 Test of Transactions Cost Explanation." Journal of Law Economics and
 Organization 4, no. 2: 305-336.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>15</BIBL>	<BIBTEXT>Gelb, S. 2003. "Background Paper:
 Institutional Development and FDI in South Africa." DRC Working Paper no.
 7, Centre for New and Emerging Markets, London Business School.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>16</BIBL>	     <BIBTEXT>Glass, A.J.,
 and K. Saggi. 1998. "International Technology Transfer and the Technology
 Gap." Journal of Development Economics 55, no. 2: 369-398.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>17</BIBL>	 <BIBTEXT>Gleason, K.G.;
 C.I. Lee; and I. Mathur. 2002. "Dimensions of International Expansions by
 U.S. Firms to China: Wealth Effects, Mode Selection and Firm Specific
 Factors." International Review of Economics and Finance 11, no. 2:
 139-154.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT>Gomes-Casseres, B. 1989. "Ownership Structures of Foreign
 Business Subsidiaries." Journal of Economic Behavior and Organization 11,
 no. 1: 1-25.</BIBTEXT>      </REF>	 <REF>	      <BIBL>19</BIBL>	   
  <BIBTEXT>------. 1990. "Firm Ownership Preferences and Host Government
 Restrictions: An Integrated Approach." Journal of International Business
 Studies 21, no. 1: 1-22.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>20</BIBL>	<BIBTEXT>Gorg, H. 2000. "Analysing Foreign Market
 Entry: The Choice Between Greenfield Investments and Acquisitions."
 Journal of Economic Studies 27, no. 3: 165-181.</BIBTEXT>	</REF>	   
 <REF>	      <BIBL>21</BIBL>	     <BIBTEXT>Hennart, J.F. 1991. "The
 Transactions Cost Theory of Joint Ventures: An Empirical Study of Japanese
 Subsidiaries in the United States." Management Science 37, no. 4:
 483-497.</BIBTEXT>	 </REF>      <REF>	  <BIBL>22</BIBL>	
 <BIBTEXT>Hennart, J.F., and Y.R. Park. 1993. "Greenfield vs. Acquisition:
 The Strategy of Japanese Investors in the United States." Management
 Science 39, no. 9: 1054-1070.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>23</BIBL>	<BIBTEXT>Horstman, I.J., and J.R. Markusen. 1996.
 "Exploring New Markets; Direct Investment, Contractual Relations and the
 Multinational Exercise." International Economic Review 37, no. 1:
 1-19.</BIBTEXT>      </REF>	  <REF>        <BIBL>24</BIBL>	     
 <BIBTEXT>Kogut, B., and H. Singh. 1988. "Entering United States by Joint
 Venture: Competitive Rivalry and Industry Structure." In Cooperative
 Strategies in Business, ed. F. Contractor and P. Lorange. Lexington, MA:
 Lexington Books.</BIBTEXT>	 </REF>      <REF>	  <BIBL>25</BIBL>  
      <BIBTEXT>Kokko, A. 1994. "Technology, Market Characteristics, and
 Spillovers." Journal of Development Economics 43, no. 2:
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 <BIBTEXT>Lapan, H., and P. Bardhan. 1973. "Localized Technical Progress
 and Transfer of Technology and Economic Development." Journal of Economic
 Theory 6, no 6: 585-595.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>27</BIBL>	<BIBTEXT>Louis, M., and H. Handoussa. 2003.
 "Institutional Development and FDI in Egypt." DRC Working Paper No. 1,
 Centre for New and Emerging Markets, London Business School.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>28</BIBL>	  <BIBTEXT>Luo, Y. 2001.
 "Determinants of Entry in an Emerging Economy: A Multilevel Approach,"
 Journal of Management Studies 38, no. 3: 443-472.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>29</BIBL>        <BIBTEXT>Meyer, K.E. 2001.
 "International Business Research on Transition Economies." In Oxford
 Handbook of International Business, ed. A. Rugman and T. Brewer. Oxford:
 Oxford University Press (available at
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 economicsfinance/0199241821/toc.html).</BIBTEXT>      </REF>	   <REF>   
     <BIBL>30</BIBL>	    <BIBTEXT>Patibandla, M., and B. Petersen. 2002.
 "Role of Transnational Corporations in the Evolution of a High-Tech
 Industry: The Case of India's Software Industry." World Development 30,
 no. 9: 1561-1577.</BIBTEXT>	  </REF>      <REF>	   <BIBL>31</BIBL> 
       <BIBTEXT>Ramachandran, V. 1993. "Technology Transfer, Firm
 Ownership, and Investment in Human Capital." Review of Economics and
 Statistics 75, no. 4: 664-670.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>32</BIBL>	<BIBTEXT>Sinha, U.B. 2001. "International Joint
 Venture, Licensing and Buy-out Under Asymmetric Information." Journal of
 Development Economics 66, no. 1: 127-151.</BIBTEXT>	  </REF>      <REF>
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 K.Y. Au. 1997. "How MNCs Choose Entry Modes and Form Alliances: The China
 Experience." Journal of International Business Studies 28, no. 4:
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 Bosshardt. 2001. "Foreign Ownership and Technology Adoption: Evidence from
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 <BIBTEXT>Yip, G. 1982. "Diversification Entry: Internal Development Versus
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 1990. "New Ventures or Acquisitions. The Choice of Swedish Multinational
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 349-355.</BIBTEXT>	 </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:2:p:5-24




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Chuan Huang 
Author-X-Name-First: Yu Chuan 
Author-X-Name-Last: Huang 
Author-Name: Pei Lin Tsai 
Author-X-Name-First: Pei Lin 
Author-X-Name-Last: Tsai 
Title: Effectiveness of Closing Call Auctions: Evidence from the Taiwan Stock Exchange 
Abstract:
 To reduce market volatility observed at the close of trading and to
 enhance the fairness of the closing price, the Taiwan Stock Exchange (TSE)
 changed the way it executed its closing transactions by instituting a
 five-minute closing call auction. This paper examines the effectiveness of
 this new mechanism for the TSE. The empirical results show that the
 closing call has effectively reduced market volatility at closing and
 enhanced market efficiency by reducing noise in stock closing prices.
 However, market liquidity has declined, primarily due to the actions of
 individual investors. Because the limit order book is fully opaque for the
 five-minute call period, investors may close their position earlier than
 the closing period to avoid additional risk. This implies that, to
 maximize the benefits of the closing call, the TSE should provide the
 transparency of the limit order book for the closing call period.
Journal: Emerging Markets Finance and Trade 
Pages: 5-20 
Issue: 3 
Volume: 44 
Year: 2008 
Month: 5 
Keywords: call auction, market microstructure, market quality., 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=047TRR5381843537 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aitken, M.; C.
 Comerton-Forde; and A. Frino. 2005. "Closing Call Auctions and Market
 Liquidity." >i>Accounting and Finance>/i> 45, no. 4: 501-518.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>2</BIBL>	  <BIBTEXT> Amihud, Y., and
 H. Mendelson. 1987. "Trading Mechanism and Stock Returns: An Empirical
 Investigation." >i>Journal of Finance>/i> 42, no. 3: 533-553.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>3</BIBL>	  <BIBTEXT> Amihud, Y.; H.
 Mendelson; and B. Lauterbach. 1997. "Market Microstructure and Securities
 Values: Evidence from the Tel Aviv Stock Exchange." >i>Journal of
 Financial Economics>/i> 45, no. 3: 365-390.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT> Brooks, R. M., and J.
 Moulton. 2004. "The Interaction Between Opening Call Auctions and Ongoing
 Trade: Evidence from the NYSE." >i>Review of Financial Economics>/i> 13,
 no. 4: 341-356.</BIBTEXT>	</REF>	    <REF>	 <BIBL>5</BIBL>    
    <BIBTEXT> Comerton-Forde, C.; S. T. Lau; and T. H. McInish. 2003. "IPO
 Madness, Index Rigging, and the Introduction of an Opening and Closing
 Call: The Case of Singapore." Australasian Finance and Banking Conference,
 Sydney, December 17-19.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>6</BIBL>        <BIBTEXT> Hillion, P., and M. Suominen. 1998.
 "Deadline Effect of an Order Driven Market: An Analysis of the Last
 Trading Minute on the Paris Bourse." Global Equity Markets Conference
 Proceedings, Paris-Bourse and NYSE edited, Paris.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>7</BIBL>	      <BIBTEXT> Huang, Y. S.; C. H. Jiang;
 and M. C. Ke. 2000. "Tick Size and Stock Price Behavior on the Taiwan
 Stock Exchange." >i>Asia Pacific Journal of Finance>/i> 3, no. 2:
 149-170.</BIBTEXT>	 </REF>      <REF>	  <BIBL>8</BIBL>       
 <BIBTEXT> Ke, M. C.; C. H. Jiang; and Y. S. Huang. 2004. "The Impact of
 Tick Size on Intraday Stock Price Behavior: Evidence from the Taiwan Stock
 Exchange." >i>Pacific-Basin Finance Journal>/i> 12, no. 1:
 19-39.</BIBTEXT>      </REF>	   <REF>	<BIBL>9</BIBL>	     
 <BIBTEXT> Ko, K.; S. Lee; and J. Chung. 1995. "Volatility, Efficiency, and
 Trading: Further Evidence." >i>Journal of International Financial
 Management and Accounting>/i> 6, no. 1: 26-42.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Madhavan, A. 1992. "Trading
 Mechanisms in Securities Markets." >i>Journal of Finance>/i> 47, no. 2:
 607-641.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT> Pagano, M. S., and R. A. Schwartz. 2003. "A Closing Call's
 Impact on Market Quality at Euronext Paris." >i>Journal of Financial
 Economics>/i> 68, no. 3: 439-484.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>12</BIBL>	<BIBTEXT> Pagano, M. S., and R. A. Schwartz. 2005.
 "Nasdaq's Closing Cross." >i>Journal of Portfolio Management>/i> 31, no.
 4: 100-111.</BIBTEXT>	    </REF>	<REF>	     <BIBL>13</BIBL>	   
 <BIBTEXT> Parkinson, M. 1980. "The Extreme Value Method for Estimating the
 Variance of the Rate of Return." >i>Journal of Business>/i> 53, no. 1:
 61-65.</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>       
 <BIBTEXT> Stoll, H. R., and R. E. Whaley. 1990. "Stock Market Structure
 and Volatility." >i>Review of Financial Studies>/i> 3, no. 1:
 37-71.</BIBTEXT>      </REF>	   <REF>	<BIBL>15</BIBL>       
 <BIBTEXT> Thomas, S. 1998. "End of Day Patterns on the Paris Bourse After
 Implementation of a Call Auction." Global Equity Markets Conference
 Proceedings, Bourse de Paris-NYSE, Paris.</BIBTEXT>	  </REF>    
Handle: RePEc:mes:emfitr:v:44:y:2008:i:3:p:5-20




Template-Type: ReDIF-Article 1.0
Author-Name: LEO H. CHAN 
Author-X-Name-First: LEO H. 
Author-X-Name-Last: CHAN 
Author-Name: KAM C. CHAN 
Author-X-Name-First: KAM C. 
Author-X-Name-Last: CHAN 
Author-Name: WAI K. LEUNG 
Author-X-Name-First: WAI K. 
Author-X-Name-Last: LEUNG 
Title:         Institutional Interventions and Performance of Futures Markets in China       
Abstract:
       We study the establishment and development of the most successful
 futures market in China. We document the evolution of the market
 microstructures and the attempts by the Zhengzhou Commodity Exchange's
 management to improve the performance of the futures market. Our finding
 suggests that if other former centrally planned economies want to
 establish futures markets, they must think carefully not only of the
 design and microstructure of the futures market, but they also have to
 choose carefully what contracts to offer.    
Journal: Emerging Markets Finance and Trade 
Pages: 43-55 
Issue: 5 
Volume: 41 
Year: 2005 
Month: 10 
Keywords: China, futures markets, intervention, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=CBUDKU35XFYAXRVM 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Alizadeh, S.; M.W.
 Brandt; and F.X. Diebold. 2002. "Range-Based Estimator of Stochastic
 Volatility Models." Journal of Finance 57, no. 3: 1047-1091.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>2</BIBL>	 <BIBTEXT>Andersen, T.
 1994. "Stochastic Autoregressive Volatility: A Framework for Volatility
 Modeling." Mathematical Finance 4, no. 1: 75-102.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>3</BIBL>	      <BIBTEXT>------. 1996. "Return
 Volatility and Trading Volume: An Information Flow Interpretation of
 Stochastic Volatility." Journal of Finance 51, no. 1: 169-204.</BIBTEXT>  
    </REF>	<REF>	     <BIBL>4</BIBL>	   <BIBTEXT>Chan, K.C.;
 H.G. Fung; and W.K. Leung. 2004. "Daily Volatility Behavior in China
 Futures Markets." Journal of International Financial Markets,
 Institutions, and Money 14, no. 5: 491-505.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>5</BIBL>	    <BIBTEXT>Chan, L., and D. Lien. 2002.
 "Measuring the Impacts of Cash Settlement: A Stochastic Volatility
 Approach." International Review of Economics and Finance 11, no. 3:
 251-263.</BIBTEXT>	 </REF>      <REF>	  <BIBL>6</BIBL>       
 <BIBTEXT>------. 2003a. "Cash Settlement and Price Discovery in Futures
 Markets." Quarterly Journal of Business and Economics 40, no. 3:
 65-77.</BIBTEXT>      </REF>	   <REF>	<BIBL>7</BIBL>	     
 <BIBTEXT>------. 2003b. "Using High, Low, Open and Closing Prices to
 Estimate the Effects of Cash Settlement on Futures Prices." International
 Review of Financial Analysis 12, no. 1: 35-47.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>8</BIBL>	    <BIBTEXT>Fung, H.G.; W.K. Leung; and
 X.E. Xu. 2003. "Information Flows Between the U.S. and China Commodity
 Futures Trading." Review of Quantitative Finance and Accounting 21, no. 3:
 267-285.</BIBTEXT>	 </REF>      <REF>	  <BIBL>9</BIBL>       
 <BIBTEXT>Gallant, A.R.; C.T. Hsu; and G. Tauchen. 1999. "Using Daily Range
 Data to Calibrate Volatility Diffusions and Extract the Forward Integrated
 Variance." Review of Economics and Statistics 81, no. 4:
 617-631.</BIBTEXT>	 </REF>      <REF>	  <BIBL>10</BIBL>	
 <BIBTEXT>Harvey, A.; E. Ruiz; and N. Shephard. 1994. "Multivariate
 Stochastic Variance Mod-els." Review of Economics Studies 61, no. 2:
 247-264.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT>Jacquier, E.; N.G. Polson; and P.E. Rossi. 1994. Bayesian
 Analysis of Stochastic Volatility Models." Journal of Business and
 Economic Statistics 12, no. 1: 371-389.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>12</BIBL>	     <BIBTEXT>Kim, S.; N. Shephard; and S. Chib.
 1998. "Stochastic Volatility: Likelihood Inference and Comparison with
 ARCH Models." Review of Economic Studies 65, no. 3: 361-393.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>13</BIBL>	  <BIBTEXT>Lien, D., and J.
 Quirk. 2003. "Measuring the Benefits from Futures Markets: Conceptual
 Issues." International Journal of Business and Economics 1, no. 1:
 53-58.</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>       
 <BIBTEXT>Liu, D.Q. 2002. "Market-Making Behavior in Futures Markets."
 Ph.D. Dissertation, Department of Agricultural and Resource Economics,
 University of California- Davis.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>15</BIBL>	<BIBTEXT>Ma, C.K.; G. Wenchi Kao; and C.J.
 Frohlich. 1993. "Margin Requirements and the Behavior of Silver Futures
 Prices." Journal of Business Finance and Accounting, 20, no. 1:
 41-60.</BIBTEXT>      </REF>	   <REF>	<BIBL>16</BIBL>       
 <BIBTEXT>Pliska, S.R., and C.T. Shalen. 1991. "The Effects of Regulations
 on Trading Activities and Return Volatility in Futures Markets." Journal
 of Futures Markets 11, no. 2: 135-152.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>17</BIBL>	    <BIBTEXT>Rogers, L.C.G., and S.E. Satchell.
 1991. "Estimating Variance from High, Low, and Closing Prices." Annals of
 Applied Probability 1, no. 4: 500-512.</BIBTEXT>      </REF>	   <REF>   
     <BIBL>18</BIBL>	    <BIBTEXT>Ross, S.A. 1976. "Options and
 Efficiency." Quarterly Journal of Economics 90, no. 1: 75-89.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>19</BIBL>	   <BIBTEXT>Williams, J.;
 A. Peck; A. Park; and S. Rozelle. 1998. "The Emergence of a Futures
 Market: Mungbeans on the China Zhengzhou Commodity Exchange." Journal of
 Futures Markets 18, no. 4: 427-448.</BIBTEXT>	    </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:5:p:43-55




Template-Type: ReDIF-Article 1.0
Author-Name: HUNG-GAY FUNG 
Author-X-Name-First: HUNG-GAY 
Author-X-Name-Last: FUNG 
Title:         Guest Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-5 
Issue: 5 
Volume: 41 
Year: 2005 
Month: 10 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=AC0YEHU224CJ2YR1 
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File-Restriction: Access to full text is restricted to subscribers. 
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Handle: RePEc:mes:emfitr:v:41:y:2005:i:5:p:3-5




Template-Type: ReDIF-Article 1.0
Author-Name: XIAOQING ELEANOR XU 
Author-X-Name-First: XIAOQING ELEANOR 
Author-X-Name-Last: XU 
Title:         Performance of Securities Investment Funds in China       
Abstract:
       Using daily data from May 2000 to January 2004, this study examines
 the risk, return, securities selection, and market timing performance of
 China's securities investment funds (SIFs), in comparison with the
 performance of the SIFs in the United States. Our results indicate that
 China investment funds show superior market timing performance, while U.S.
 fund managers display stronger securities selection ability. These results
 imply that the potential synergy for Sino-U.S. joint venture investment
 funds could be tremendous. Additional analysis of the trading volume of
 closed-end funds in China illustrates that investors' interests in SIFs
 are strongly and positively related to fund performance. Results also
 indicate that Chinese investors favor professionally managed funds more
 than direct investment in stocks during negative market conditions.	
Journal: Emerging Markets Finance and Trade 
Pages: 28-42 
Issue: 5 
Volume: 41 
Year: 2005 
Month: 10 
Keywords: China, market timing, securities investment funds, security selection, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=EJEKEWLGGPNBBCDF 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Chan, K.C.; H.G. Fung;
 and S. Thapa. 2003. "China Financial Research: A Review and Synthesis."
 Working Paper, University of Missouri-St. Louis.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>2</BIBL>	     <BIBTEXT>Chen, G.M.; B.S. Lee; and O.
 Rui. 2001. "Foreign Ownership Restrictions and Market Segmentation in
 China's Stock Markets." Journal of Financial Research 24, no. 1:
 133-155.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>       
 <BIBTEXT>Fernald, J., and J.H. Rogers. 2002. "Puzzles in the Chinese Stock
 Market." Review of Economics and Statistics 84, no. 3: 416-432.</BIBTEXT> 
     </REF>	 <REF>	      <BIBL>4</BIBL>	    <BIBTEXT>Fung, H.G.; W.
 Lee; and W.K. Leung. 2000. "Segmentation of the A and B Share Equity
 Markets." Journal of Financial Research 23, no. 2: 179-195.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT>Fung, H.G.; W.K.
 Leung; and X.E. Xu. 2003. "Information Flows Between the U.S. and China
 Commodity Futures Trading." Review of Quantitative Finance and Accounting
 21, no. 3: 267-285.</BIBTEXT>	    </REF>	<REF>	     <BIBL>6</BIBL>
	<BIBTEXT>Fung, H.G.; X.E. Xu; and J. Yau. 2002. "Global Hedge
 Funds: Risk, Return, and Market Timing." Financial Analysts Journal 58,
 no. 6: 19-30.</BIBTEXT>      </REF>	  <REF>        <BIBL>7</BIBL>	   
  <BIBTEXT>Henriksson, R.D. 1984. "Market Timing and Mutual Fund
 Performance: An Empirical Investigation." Journal of Business 57, no. 1:
 73-96.</BIBTEXT>      </REF>	   <REF>	<BIBL>8</BIBL>	     
 <BIBTEXT>Henriksson, R.D., and R.C. Merton. 1981. "On the Market Timing
 and Investment Performance II: Statistical Procedures for Evaluating
 Forecasting Skills." Journal of Business 54, no. 4: 513-534.</BIBTEXT>    
  </REF>      <REF>	   <BIBL>9</BIBL>	 <BIBTEXT>Jensen, M. 1968.
 "The Performance of Mutual Funds in the Period 1945-64. Journal of Finance
 23, no. 2: 389-416.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>10</BIBL>	<BIBTEXT>Laurence, M.; F. Cai; and S. Qian. 1997.
 "Weak-Form Efficiency and Causality Tests in Chinese Stock Markets."
 Multinational Financial Journal 1, no. 4: 291-307.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>11</BIBL>	<BIBTEXT>Merton, R.C. 1981. "On
 Market Timing and Investment Performance of Mutual Funds I. An Equilibrium
 Theory of Value of Market Forecasts." Journal of Business 54, no. 3:
 363-406.</BIBTEXT>	 </REF>      <REF>	  <BIBL>12</BIBL>	
 <BIBTEXT>Poon, W., and H. Fung. 2000. "Red Chips or H Shares: Which
 China-Backed Securities Process Information the Fastest?" Journal of
 Multinational Financial Management 10, nos. 3-4: 315-343.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>13</BIBL>	 <BIBTEXT>Su, D. 1999.
 "Ownership Restrictions and Stock Prices: Evidence from Chinese Mar-kets."
 Financial Review 34, no. 2: 37-56.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>14</BIBL>	<BIBTEXT>Su, D., and B.M. Fleisher. 1998.
 "Information, Regulation and Volatility in Chinese Stock Markets." Journal
 of Economics and Business 50, no. 3: 239-256.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT>Sun, Q., and W.H.S. Tong.
 2000. "The Effect of Market Segmentation on Stock Prices: The China
 Syndrome." Journal of Banking and Finance 24, no. 12: 1875-1902.</BIBTEXT>
      </REF>	  <REF>        <BIBL>16</BIBL>	      <BIBTEXT>Xu, X.E.
 2001. "Market Structure, Volatility and Performance of H Shares, 2001."
 Chinese Economy 34, no. 1: 49-73.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>17</BIBL>	<BIBTEXT>Xu, X.E., and H.G. Fung. 2002.
 "Information Flows Across Markets: Evidence from China-Backed Stocks
 Dual-Listed in Hong Kong and New York." Financial Review 37, no. 4:
 563-588.</BIBTEXT>	 </REF>      <REF>	  <BIBL>18</BIBL>	
 <BIBTEXT>Xu, X.E., and J. Liu. 2001. "Short-Term Dynamic Transmission and
 Long-Term Foreign Share Discount: Evidence from the Chinese Stock
 Markets." International Journal of Business 6, no. 2: 33-51.</BIBTEXT>    
  </REF>    
Handle: RePEc:mes:emfitr:v:41:y:2005:i:5:p:28-42




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan 
Author-X-Name-First: Ali M. 
Author-X-Name-Last: Kutan 
Title: Editor's Introduction 
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-3 
Issue: 2 
Volume: 44 
Year: 2008 
Month: 3 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=LG1W87UX55831187 
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Handle: RePEc:mes:emfitr:v:44:y:2008:i:2:p:3-3




Template-Type: ReDIF-Article 1.0
Author-Name: Ramazan  Sari 
Author-X-Name-First: Ramazan  
Author-X-Name-Last: Sari 
Author-Name: Bradley T. Ewing 
Author-X-Name-First: Bradley T. 
Author-X-Name-Last: Ewing 
Author-Name: Bahadir  Aydin 
Author-X-Name-First: Bahadir  
Author-X-Name-Last: Aydin 
Title: Macroeconomic Variables and the Housing Market in Turkey 
Abstract:
 This paper investigates the relation between housing starts and
 macroeconomic variables in Turkey from 1961 to 2000. The generalized
 variance decomposition approach is used to examine relations between
 housing market activity and prices, interest rates, output, money stock,
 and employment. In contrast to previous findings for developed countries,
 our results indicate that the monetary aggregate has a relatively more
 important and substantial effect on housing investment than does
 employment. Generally speaking, shocks to interest rates, output, and
 prices have noticeable effects on changes in the Turkish housing market.
Journal: Emerging Markets Finance and Trade 
Pages: 5-19 
Issue: 5 
Volume: 43 
Year: 2007 
Month: 10 
Keywords: employment, housing investment, monetary policy, variance decompositions, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=Y2863J035640L810 
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X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Aydin, S. 2003.
 "TÃ¼rkiye'de konut sorununun economik boyutlar1" [Economic Aspects of the
 Housing Problem in Turkey]. Ph.D. dissertation, Ankara University Social
 Science Institute, Ankara.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>2</BIBL>        <BIBTEXT> Baffoe-Bonnie, J. 1998. "The Dynamic
 Impact of Macroeconomic Aggregates on Housing Prices and Stock of Houses:
 A National and Regional Analysis." >i>Journal of Real Estate Finance and
 Economics>/i> 17, no. 2: 179-197.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>3</BIBL>        <BIBTEXT> Bernanke, B.S., and M. Gertler. 1995.
 "Inside the Black Box: The Credit Channel of Monetary Policy
 Transmission." >i>Journal of Economic Perspectives>/i> 9, no. 4:
 27-48.</BIBTEXT>      </REF>	   <REF>	<BIBL>4</BIBL>	     
 <BIBTEXT> Christiano, L.J.; M. Eichenbaum; and C.L. Evans. 1996. "The
 Effects of Monetary Policy Shocks: Evidence from the Flow of Funds."
 >i>Review of Economics and Statistics>/i> 78, no. 1: 16-34.</BIBTEXT>	   
 </REF>      <REF>	  <BIBL>5</BIBL>	<BIBTEXT> Engle, R., and
 C.W.J. Granger. 1987. "Co-Integration and an Error Correction:
 Representation, Estimation, and Testing." >i>Econometrica>/i> 55 (March):
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 <BIBTEXT> Erbas, N.S., and F.E. Nothaft. 2005. "Mortgage Markets in Middle
 East and North African Countries: Market Development, Poverty Reduction,
 and Growth." >i>Journal of Housing Economics>/i> 14, no. 3:
 212-241.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Erlat, G., and H. Erlat. 2003. "Measuring Intra-Industry and
 Marginal Intra-Industry Trade: The Case for Turkey." >i>Emerging Markets
 Finance and Trade>/i> 39, no. 6 (November-December): 5-38.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>8</BIBL>	<BIBTEXT> Ewing, B.T., and
 Y. Wang. 2005. "Single Housing Starts and Macroeconomic Activity: An
 Application of Generalized Impulse Response Analysis." >i>Applied
 Economics Letters>/i> 12, no. 3: 187-190.</BIBTEXT>	  </REF>      <REF>
	<BIBL>9</BIBL>	      <BIBTEXT> Harris, J. 1989. "The Effect of
 Real Rates of Interest on Housing Prices." >i>Journal of Real Estate
 Finance and Economics>/i> 2, no. 1: 47-60.</BIBTEXT>	   </REF>     
 <REF>	      <BIBL>10</BIBL>	     <BIBTEXT> Hasan, M.S., and M. Taghavi.
 2002. "Residential Investment, Macroeconomic Activity and Financial
 Deregulation in the UK: An Empirical Investigation." >i>Journal of
 Economics and Business>/i> 54, no. 4: 447-462.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>11</BIBL>	     <BIBTEXT> Holly, S., and N. Jones.
 1997. "House Price Since the 1940s: Cointegration, Demography and
 Asymmetries." >i>Economic Modeling>/i> 14, no. 4: 549-565.</BIBTEXT>	  
 </REF>      <REF>	  <BIBL>12</BIBL>	 <BIBTEXT> Johansen, S.
 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in
 Gaussian Vector Autoregressive Models." >i>Econometrica>/i> 59, no. 6:
 1551-1580.</BIBTEXT>	   </REF>      <REF>	    <BIBL>13</BIBL>	  
 <BIBTEXT> Johansen, S. 1995. >i>Likelihood-Based Inference in Cointegrated
 Vector Autoregressive Models.>/i> Oxford University Press:
 Oxford.</BIBTEXT>	</REF>	    <REF>	 <BIBL>14</BIBL>       
 <BIBTEXT> Johansen, S., and K. Juselius. 1990. "Maximum Likelihood
 Estimation and Inference on Cointegration: With Applications to the Demand
 for Money." >i>Oxford Bulletin of Economics and Statistics>/i> 52, no. 2:
 169-210.</BIBTEXT>	 </REF>      <REF>	  <BIBL>15</BIBL>	
 <BIBTEXT> Kenny, G. 1999. "Modelling the Demand and Supply Sides of the
 Housing Market: Evidence from Ireland." >i>Economic Modelling>/i> 16, no.
 3: 389-409.</BIBTEXT>	    </REF>	<REF>	     <BIBL>16</BIBL>	   
 <BIBTEXT> Koop, G.; M.H. Pesaran; and S.M. Potter. 1996. "Impulse Response
 Analysis in Nonlinear Multivariate Models." >i>Journal of Econometrics>/i>
 74, no. 1: 119-147.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>17</BIBL>	<BIBTEXT> Lastrapes, W.D. 2002. "The Real Price of
 Housing and Money Supply Shocks: Time Series Evidence and Theoretical
 Simulations." >i>Journal of Housing Economics>/i> 11, no. 1:
 40-74.</BIBTEXT>      </REF>	   <REF>	<BIBL>18</BIBL>       
 <BIBTEXT> Onaran, O., and E. Stockhammer. 2005. "Two Different
 Export-Oriented Growth Strategies: Accumulation and Distribution in Turkey
 and South Korea." >i>Emerging Markets Finance and Trade>/i> 41, no. 1
 (January-February): 65-85.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>19</BIBL>	<BIBTEXT> Painter, G., and C.L. Redfearn. 2002.
 "The Role of Interest Rates in Influencing Long-Run Homeownership Rates."
 >i>Journal of Real Estate Finance and Economics>/i> 25, nos. 2-3:
 243-267.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT> Pesaran, H.H., and Y. Shin. 1998. "Generalized Impulse Response
 Analysis in Linear Multivariate Models." >i>Economics Letters>/i> 58, no.
 1: 17-29.</BIBTEXT>	  </REF>      <REF>	   <BIBL>21</BIBL>	 
 <BIBTEXT> Sayan, S. 2004. "Guest Workers' Remittances and Output
 Fluctuations in Host and Home Countries: The Case of Remittances from
 Turkish Workers in Germany." >i>Emerging Markets Finance and Trade>/i> 40,
 no. 6 (November-December): 68-81.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>22</BIBL>	<BIBTEXT> Simga-Mugan, C., and A. Yuce. 2003.
 "Privatization in Emerging Markets: The Case of Turkey." >i>Emerging
 Markets Finance and Trade>/i> 39, no. 5 (September-October):
 83-110.</BIBTEXT>	</REF>	    <REF>	 <BIBL>23</BIBL>       
 <BIBTEXT> Sims, C.A. 1980. "Macroeconomics and Reality."
 >i>Econometrica>/i> 48, no. 1: 1-48.</BIBTEXT>      </REF>	 <REF>	   
   <BIBL>24</BIBL>	  <BIBTEXT> Smith, B.A., and W.P. Tesarek. 1991.
 "House Prices and Regional Real Estate Cycles: Market Adjustments in
 Houston." >i>Journal of the American Real Estate and Urban Economics
 Association>/i> 19, no. 3: 396-416.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>25</BIBL>	 <BIBTEXT> Stevenson, S. 2000. "A Long-Term
 Analysis of Regional Housing Markets and Inflation." >i>Journal of Housing
 Economics>/i> 9, no. 1: 24-39.</BIBTEXT>      </REF>	   <REF>       
 <BIBL>26</BIBL>	<BIBTEXT> Topal, A.K. 2005. "Konut finansmaninda
 global egilimler: Konut finansman sistemlerinin sermaye piyasalarina
 eklemlenmesi" [Global Trends in Housing Finance: The Integration of
 Housing Finance Systems and Financial Markets]. >i>Iktisat Isletme
 Finans>/i> 20, no. 233 (August): 68-81.</BIBTEXT>	</REF>	    <REF>  
      <BIBL>27</BIBL>	     <BIBTEXT> Wheeler, M., and A. Chowdhury. 1993.
 "The Housing Market, Macroeconomic Activity: An Empirical Analysis of U.S.
 Data." >i>Applied Economics>/i> 25, no. 11: 1385-1392.</BIBTEXT>     
 </REF>    
Handle: RePEc:mes:emfitr:v:43:y:2007:i:5:p:5-19




Template-Type: ReDIF-Article 1.0
Author-Name: AURORA GALEGO 
Author-X-Name-First: AURORA 
Author-X-Name-Last: GALEGO 
Author-Name: CARLOS VIEIRA 
Author-X-Name-First: CARLOS 
Author-X-Name-Last: VIEIRA 
Author-Name: ISABEL VIEIRA 
Author-X-Name-First: ISABEL 
Author-X-Name-Last: VIEIRA 
Title:         The CEEC as FDI Attractors: A Menace to the EU Periphery?       
Abstract:
       The change of economic, social, and political orientation in Central
 and Eastern European countries (CEEC), together with the accession of a
 first group into the European Union in 2004, has raised a number of
 challenging questions. One object of interest has been the implications of
 Eastern openness in terms of international capital reallocation. This
 paper concentrates on the issue of foreign direct investment (FDI), a
 major channel of economic integration. In fact, in the particular case of
 these countries, a dramatic change in the pattern of FDI inflows took
 place in recent years. A number of studies have surveyed the determinants
 of FDI to this region, but the issue still remains relatively unexplored
 from the empirical point of view. Using a random effects panel data model
 in the analysis, we try to empirically uncover the main determinants of
 FDI and to examine the probability of FDI diversion from the EU periphery
 to these transition economies. This issue is especially interesting for
 the EU periphery in general, and for cheap labor suppliers such as
 Portugal in particular, because there are reasons to believe that some
 diversion of funds from the South to the East may be taking place.    
Journal: Emerging Markets Finance and Trade 
Pages: 74-91 
Issue: 5 
Volume: 40 
Year: 2004 
Month: 9 
Keywords: enlargement, FDI determinants, FDI diversion, foreign direct investment, gravity model, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=CR68KNKACMBV3JF5 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Altomonte, C. 2000.
 "Economic Determinants and Institutional Frameworks: FDI in Economies in
 Transition." Transnational Corporations 9, no. 2: 75-106.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT>Baldwin, R.; J.
 François; and R. Portes. 1997. "The Costs and Benefits of Eastern
 Enlargement: The Impact on the EU and Central Europe." Economic Policy 12,
 no. 24: 125-176.</BIBTEXT>	 </REF>      <REF>	  <BIBL>3</BIBL>   
     <BIBTEXT>Bevan, A., and S. Estrin. 2000. "The Determinants of Foreign
 Direct Investment in Transition Economies." Centre for New and Emerging
 Markets, London Business School, London.</BIBTEXT>	 </REF>      <REF> 
       <BIBL>4</BIBL>	     <BIBTEXT>Braconier, H., and K. Ekholm. 2001.
 "Foreign Direct Investment in Central and Eastern Europe: Employment
 Effects in the EU." CEPR Working Paper 3052, London.</BIBTEXT>      </REF>
      <REF>	   <BIBL>5</BIBL>	 <BIBTEXT>Brenton, P., and F. Di
 Mauro. 1999. "The Potential Magnitude and Impact of FDI Flows to CEECs."
 Journal of Economic Integration 14, no. 1: 59-74.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>6</BIBL>	      <BIBTEXT>Brenton, P.; F. Di Mauro;
 and M. Lucke. 1999. "Economic Integration and FDI: An Empirical Analysis
 of Foreign Investment in the EU and in Central and Eastern Europe."
 Empirica 26, no. 2: 95-121.</BIBTEXT>	    </REF>	<REF>	    
 <BIBL>7</BIBL>        <BIBTEXT>Breuss, F. 2001. "Macroeconomic Effects of
 EU Enlargement for Old and New Members." Austrian Institute of Economic
 Research (Wifo), Austria.</BIBTEXT>	  </REF>      <REF>	  
 <BIBL>8</BIBL>        <BIBTEXT>Buch, C.; R. Kokta; and D. Piazolo. 2001.
 "Does the East Get What Would Otherwise Flow to the South? FDI Diversion
 in Europe." Kiel Working Paper 1061, Kiel, Germany.</BIBTEXT>	    </REF> 
     <REF>	  <BIBL>9</BIBL>	<BIBTEXT>de Melo, M.; C. Denizer;
 and A. Gelb. 1996. "From Plan to Market: Patterns of Transition." World
 Bank Policy Research Paper 1564, Washington, DC.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>10</BIBL>	      <BIBTEXT>Deichmann, J.; A. Eshghi; D.
 Haughton; S. Sayek; and N. Teebagy. 2003. "Foreign Direct Investment in
 the Eurasian Transition States." Eastern European Economics 41, no. 1:
 5-34.</BIBTEXT>      </REF>	  <REF>        <BIBL>11</BIBL>	     
 <BIBTEXT>Egger, P., and M. Pfaffermayr. 2003. "The Proper Econometric
 Specification of the Gravity Equation: A Three-Way Model with Bilateral
 Interaction Effects." Empirical Economics 28, no. 3: 571-580.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>12</BIBL>	   <BIBTEXT>Global Business
 Policy Council. 2002. FDI Confidence Index, vol. 5. A.T. Kearney,
 Alexandria, VA, September.</BIBTEXT>	   </REF>      <REF>	   
 <BIBL>13</BIBL>	<BIBTEXT>Holland, D., and N. Pain. 1998. "The
 Diffusion of Innovations in Central and Eastern Europe: A Study of the
 Determinants and Impact of Foreign Direct Investment." National Institute
 of Social and Economic Research, Discussion Paper No. 137,
 London.</BIBTEXT>	</REF>	    <REF>	 <BIBL>14</BIBL>       
 <BIBTEXT>IMF. Various dates. International Financial Statistics.
 Washington, DC: International Monetary Fund.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT>Institute for Management
 Development. Various issues. The World Competitiveness Yearbook. Lausanne,
 Switzerland: Institute for Management Development.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>16</BIBL>	<BIBTEXT>Lankes, H.-P., and A.J.
 Venables. 1996. "Foreign Direct Investment in Economic Transition: The
 Changing Pattern of Investments." Economics of Transition 4, no. 2:
 331-347.</BIBTEXT>	 </REF>      <REF>	  <BIBL>17</BIBL>	
 <BIBTEXT>Lansbury, M.; N. Pain; and K. Smidkova. 1996. "Foreign Direct
 Investment in Central Europe Since 1990: An Econometric Study." National
 Institute Economic Review 156 (May): 104-113.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>18</BIBL>	     <BIBTEXT>OECD. 2002. International
 Direct Investment Statistics Yearbook 1980-2000. Paris: OECD.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>19</BIBL>	   <BIBTEXT>Resmini, L.
 2000. "The Determinants of Foreign Direct Investment into the CEECs: New
 Evidence from Sectoral Patterns." Economics of Transition 8, no. 3:
 665-689.</BIBTEXT>	 </REF>      <REF>	  <BIBL>20</BIBL>	
 <BIBTEXT>UNCTAD. 2002. "The World Investment Report 2002: Transnational
 Corporations and Export Competitiveness." New York.</BIBTEXT>	    </REF>  
Handle: RePEc:mes:emfitr:v:40:y:2004:i:5:p:74-91




Template-Type: ReDIF-Article 1.0
Author-Name: AXEL DREHER 
Author-X-Name-First: AXEL 
Author-X-Name-Last: DREHER 
Author-Name: ROLAND VAUBEL 
Author-X-Name-First: ROLAND 
Author-X-Name-Last: VAUBEL 
Title:         The Causes and Consequences of IMF Conditionality       
Abstract:
       We develop a public choice model of the International Monetary Fund
 (IMF) in which credit and conditionality are simultaneously determined by
 the demand for, and supply of, IMF credit. A graphical analysis
 illustrates the comparative statics in response to various shocks. We
 apply the model to explain the main changes in the rules governing
 conditionality and in the number of conditions per program. We observe a
 highly significant positive correlation between the number of conditions
 per program and the prior use of Fund credit relative to quota in 1959-99.
 A panel data analysis of 206 letters of intent from April 1997 through
 February 2003 reveals that the number of conditions depends negatively on
 international reserves and positively on interest rates in the world
 capital market, monetary expansion in the borrowing country, and the
 number of World Bank adjustment loans. Finally, the effects of
 conditionality are analyzed for the first time. Our instrumental variables
 estimate shows that the number of conditions do not have a significant
 effect on any of the five typical instrument and target variables
 considered. The final section links the analysis of IMF conditionality
 with the literature on tied transfers in public economics and develops
 some novel proposals for the reform of IMF conditionality.    
Journal: Emerging Markets Finance and Trade 
Pages: 26-54 
Issue: 3 
Volume: 40 
Year: 2004 
Month: 5 
Keywords: conditionality, International Monetary Fund, public choice, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=QJJUAQADR4X76B2T 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
X-Bibl:
       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT>Beveridge, W.A., and R.
 Kelly. 1980. "Fiscal Content of Financial Programs Supported by Stand-By
 Arrangements in the Upper Credit Tranches, 1969-78." IMF Staff Papers 27,
 no. 6: 205-249.</BIBTEXT>	</REF>	    <REF>	 <BIBL>2</BIBL>    
    <BIBTEXT>Bird, G. 2003. The IMF and the Future: Issues and Options
 Facing the Fund. New York: Routledge.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>3</BIBL>	  <BIBTEXT>Bird, G., and D. Rowlands. 2003.
 "Political Economy Influences Within the Life-Cycle of IMF Programmes."
 World Economy 26, no. 9: 1255-1278.</BIBTEXT>	    </REF>	<REF>	   
  <BIBL>4</BIBL>	<BIBTEXT>Boockmann, B., and A. Dreher. 2003. "The
 Contribution of the IMF and the World Bank to Economic Freedom." European
 Journal of Political Economy 19, no. 3: 633-649.</BIBTEXT>	 </REF>    
  <REF>        <BIBL>5</BIBL>	     <BIBTEXT>Bruce, N., and M. Waldman.
 1991. "Transfers in Kind: Why They Can Be Efficient and Nonpaternalistic."
 American Economic Review 81, no. 5 (December): 1345-1351.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT>Buchanan, J.M.
 1968. "What Kind of Redistribution Do We Want?" Economica 35 (May):
 185-190.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT>Cooper, R.N. 1983. "Panel Discussion." In IMF Conditionality, ed.
 J. Williamson, pp. 569- 577. Cambridge, MA: Institute for International
 Economics.</BIBTEXT>	   </REF>      <REF>	    <BIBL>8</BIBL>	 
 <BIBTEXT>Cornelius, P. 1988. Das Prinzip der Konditionalität bei Krediten
 des Internationalen Währungsfonds [The Principle of Conditionality in IMF
 Lending]. Munich: Verlag V. Florentz.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>9</BIBL>	  <BIBTEXT>Dreher, A. 2002. "The Development and
 Implementation of IMF and World Bank Conditionality." HWWA Discussion
 Paper No. 165, Hamburg.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>10</BIBL>	<BIBTEXT>------. 2003a. "The Influence of Elections
 on IMF Program Interruptions." Journal of Development Studies 39, no. 6:
 101-120.</BIBTEXT>	 </REF>      <REF>	  <BIBL>11</BIBL>	
 <BIBTEXT>------. 2003b. "The Influence of IMF Programs on the Re-Election
 of Debtor Governments. Economics & Politics 16, no. 1: 53-76.</BIBTEXT>   
   </REF>      <REF>	    <BIBL>12</BIBL>	   <BIBTEXT>------. 2003c.
 Die Kreditvergabe von IWF und Weltbank: Ursachen und Wirkungen aus
 politisch-ökonomischer Sicht [IMF and World Bank Lending: Causes and
 Consequences from a Public Choice Perspective]. Berlin: Wissenschaftlicher
 Verlag.</BIBTEXT>	</REF>	    <REF>	 <BIBL>13</BIBL>       
 <BIBTEXT>------. 2004. "A Public Choice Perspective of IMF and World Bank
 Lending and Conditionality." Public Choice 119, no. 3-4:
 (forthcoming).</BIBTEXT>      </REF>	   <REF>	<BIBL>14</BIBL>    
    <BIBTEXT>Dreher, A., and R. Vaubel. 2004. "Do IMF and IBRD Cause Moral
 Hazard and Political Business Cycles? Evidence from Panel Data." Open
 Economies Review 15, no. 1 (January): 5-22.</BIBTEXT>	    </REF>     
 <REF>	      <BIBL>15</BIBL>	     <BIBTEXT>Evrensel, A. 2002.
 "Effectiveness of IMF-Supported Stabilization Programs in Developing
 Countries." Journal of International Money and Finance 21, no. 5:
 565-587.</BIBTEXT>	 </REF>      <REF>	  <BIBL>16</BIBL>	
 <BIBTEXT>Garfinkel, I. 1973. "Is In-Kind Redistribution Efficient?"
 Quarterly Journal of Economics 87 (May): 320-330.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>17</BIBL>        <BIBTEXT>Goldstein, M. 2000. "IMF
 Structural Programs." Paper prepared for the NBER Conference on Economic
 and Financial Crisis in Emerging Market Economies.</BIBTEXT>	   </REF>  
    <REF>	 <BIBL>18</BIBL>	<BIBTEXT>Gould, E.R. 2001. "The
 Changing Activities of International Organizations: The Case of the
 International Monetary Fund." Paper presented at the American Political
 Science Association Conference.</BIBTEXT>	</REF>	    <REF>	
 <BIBL>19</BIBL>	<BIBTEXT>------. 2003. "Delegation and Deviation:
 Why States Lost Control of the International Monetary Fund." Paper
 presented at the Delegation to International Organizations Conference,
 Harvard University, Cambridge, April.</BIBTEXT>      </REF>	  <REF>    
    <BIBL>20</BIBL>	   <BIBTEXT>Hayek, F.A., von. 1968. "Competition as
 a Discovery Procedure." In New Studies in Philosophy, Politics, Economics
 and the History of Ideas, pp. 179-190. London: Routledge.</BIBTEXT>	 
 </REF>      <REF>	  <BIBL>21</BIBL>	 <BIBTEXT>Hirschman, A.O.
 1970. Exit, Voice and Loyalty. Cambridge: Harvard University
 Press.</BIBTEXT>      </REF>	   <REF>	<BIBL>22</BIBL>       
 <BIBTEXT>IFIAC (International Financial Institutions Advisory Commission).
 2000. Report, Washington, DC (available at
 phantom-x.gsia.cmu.edu/IFIAC/USMRPTDV.html).</BIBTEXT>      </REF>	
 <REF>	      <BIBL>23</BIBL>	     <BIBTEXT>IMF. 2000. "Conditionality in
 Fund-Supported Programs." Washington, DC, February 16 (available at
 www.imf.org).</BIBTEXT>      </REF>	  <REF>        <BIBL>24</BIBL>	   
   <BIBTEXT>------. 2003. International Financial Statistics Indicators.
 Washington, DC: International Monetary Fund.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>25</BIBL>	     <BIBTEXT>Kapur, D.; J.P. Lewis; and R.
 Webb. 1997. The World Bank--Its First Half Century, vol. 1. Washington,
 DC: Brookings Institution Press.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>26</BIBL>	<BIBTEXT>Killick, T. 1992. Continuity and Change in
 IMF Programme Design, 1982-1992. London: Overseas Development
 Institute.</BIBTEXT>	   </REF>      <REF>	    <BIBL>27</BIBL>	  
 <BIBTEXT>Nichols, A.L., and R.J. Zeckhauser. 1982. "Targeting Transfers
 Through Restrictions on Recipients." American Economic Review 72, no. 2
 (May): 372-377.</BIBTEXT>	</REF>	    <REF>	 <BIBL>28</BIBL>   
     <BIBTEXT>Niskanen, W.A. 1971. Bureaucracy and Representative
 Government. Chicago: University of Chicago Press.</BIBTEXT>	  </REF>   
   <REF>	<BIBL>29</BIBL>        <BIBTEXT>OECD. 2003. Statistical
 Compendium. Paris: OECD.</BIBTEXT>	 </REF>      <REF>	 
 <BIBL>30</BIBL>	<BIBTEXT>Polak, J.J. 1991. "The Changing Nature of
 IMF Conditionality." Essays in International Finance No. 184, Princeton
 University.</BIBTEXT>	    </REF>	<REF>	     <BIBL>31</BIBL>	   
 <BIBTEXT>------. 1994. The World Bank and the IMF--A Changing
 Relationship. Washington, DC: Brookings Institution.</BIBTEXT>      </REF>
      <REF>	   <BIBL>32</BIBL>	  <BIBTEXT>Przeworski, A., and J.R.
 Vreeland. 2000. "The Effect of IMF Programs on Economic Growth." Journal
 of Development Economics 62, no. 2: 385-421.</BIBTEXT>      </REF>	
 <REF>	      <BIBL>33</BIBL>	     <BIBTEXT>Schadler, S.; F. Rozwadowski;
 S. Tiwari; and D.O. Robinson. 1995. "Economic Adjustment in Low Income
 Countries: Experience Under the Enhanced Structural Adjustment Facility."
 IMF Occasional Paper No. 106, Washington, DC.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>34</BIBL>	     <BIBTEXT>Tiebout, C.M. 1961. "An
 Economic Theory of Fiscal Decentralization." In Public Finances: Needs,
 Sources and Utilization, ed. National Bureau of Economic Research, pp.
 79-96. Princeton: Princeton University Press.</BIBTEXT>      </REF>	 
 <REF>	      <BIBL>35</BIBL>	     <BIBTEXT>Vaubel, R. 1983.
 "Coordination or Competition Among National Macroeconomic Policies." In
 Reflections on a Troubled World Economy, ed. F. Machlup, G. Fels, and H.
 Mueller-Groeling, pp. 3-28. London: Macmillan.</BIBTEXT>      </REF>	  
 <REF>	      <BIBL>36</BIBL>	     <BIBTEXT>------. 1985. "International
 Collusion or Competition for Macroeconomic Policy Coordination: A
 Restatement." Recherches Economiques de Louvain 51, no. 3-4 (December):
 223-240.</BIBTEXT>	 </REF>      <REF>	  <BIBL>37</BIBL>	
 <BIBTEXT>------. 1988. "Macroeconomic Policy Coordination: Where Should We
 Stand? Comment on Gilles Oudiz." In Macro and Micro Policies for More
 Growth and Employment, ed. H. Giersch, pp. 296-300. Tübingen:
 Mohr.</BIBTEXT>      </REF>	  <REF>        <BIBL>38</BIBL>	     
 <BIBTEXT>------. 1991. "The Political Economy of the International
 Monetary Fund: A Public Choice Analysis." In The Political Economy of
 International Organizations: A Public Choice Approach, ed. R. Vaubel and
 T.D. Willett, pp. 204-244. Boulder, CO: Westview Press.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>39</BIBL>	 <BIBTEXT>Vaubel, R.; A.
 Dreher; and U. Soylu. 2003. "Staff Growth in International Organizations:
 A Principal-Agent Problem? An Empirical Analysis." University of Mannheim,
 Germany.</BIBTEXT>	 </REF>      <REF>	  <BIBL>40</BIBL>	
 <BIBTEXT>Vreeland, J.R. 1999. "The IMF: Lender of Last Resort or
 Scapegoat." Department of Political Science, Yale University, New
 Haven.</BIBTEXT>      </REF>	 
Handle: RePEc:mes:emfitr:v:40:y:2004:i:3:p:26-54




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 6 
Volume: 39 
Year: 2003 
Month: 11 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=V9Q2UGHKWJWJTFG3 
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Handle: RePEc:mes:emfitr:v:39:y:2003:i:6:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 5 
Volume: 39 
Year: 2003 
Month: 9 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=G67TV70G5908AW2L 
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers. 
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Handle: RePEc:mes:emfitr:v:39:y:2003:i:5:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: ALI M. KUTAN 
Author-X-Name-First: ALI M. 
Author-X-Name-Last: KUTAN 
Title:         Editor's Introduction       
Abstract:
Journal: Emerging Markets Finance and Trade 
Pages: 3-4 
Issue: 4 
Volume: 40 
Year: 2004 
Month: 7 
Keywords: 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=7L37QR5A6G8AK816 
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Handle: RePEc:mes:emfitr:v:40:y:2004:i:4:p:3-4




Template-Type: ReDIF-Article 1.0
Author-Name: Antonio  Spilimbergo 
Author-X-Name-First: Antonio  
Author-X-Name-Last: Spilimbergo 
Title: Measuring the Performance of Fiscal Policy in Russia 
Abstract:
 This paper evaluates the performance of fiscal policy since the 1998
 crisis, along several dimensions and using a variety of indicators. Russia
 has progressed tremendously in recent years on public debt sustainability
 largely because the real interest rates on public debt have been negative
 and growth has been high. However, the constant oil-price balance shows a
 progressive worsening starting in 2001 with a modest reversal in 2004. As
 to optimal fiscal policy in a country endowed with exhaustible resources,
 analysis of the nonoil fiscal balance shows that Russian fiscal policy has
 had a mixed record. It has spent part of the windfall before introducing
 the oil stabilization fund, but has saved most of the oil revenues in the
 last two years. The standard fiscal impulse shows that budget policy has
 not contributed to the increase in aggregate demand since 2003. However,
 the fiscal position was not tight enough to contain the inflationary
 effect of the exceptional oil windfalls for the economy as a whole.
Journal: Emerging Markets Finance and Trade 
Pages: 25-44 
Issue: 6 
Volume: 43 
Year: 2007 
Month: 11 
Keywords: exhaustible resources, fiscal performance, optimal fiscal policy, Russia, unexpected oil windfalls, 
File-URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=J866511413334V74 
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       <REF>	    <BIBL>1</BIBL>	  <BIBTEXT> Barnett, S., and R.
 Ossowski. 2003. "Operational Aspects of Fiscal Policy in Oil-Producing
 Countries." In >i>Fiscal Policy Formulation and Implementation in
 Oil-Producing Countries>/i>, ed. J. Davis, R. Ossowski, and A. Fedelino,
 pp. 45-81. Washington, DC: International Monetary Fund.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>2</BIBL>	<BIBTEXT> Blejer, M., and
 A. Cheasty, eds. 1993. >i>How to Measure the Fiscal Deficit: Analytical
 and Methodological Issues.>/i> Washington, DC: International Monetary
 Fund.</BIBTEXT>      </REF>	  <REF>        <BIBL>3</BIBL>	    
 <BIBTEXT> Cashin, P.; H. Liang; and J.C. McDermott. 2002. "How Persistent
 Are Shocks to World Commodity Prices?" >i>IMF Staff Papers>/i> 47, no. 2:
 177-217.</BIBTEXT>	 </REF>      <REF>	  <BIBL>4</BIBL>       
 <BIBTEXT> Hagemman, R. 1999. "The Structural Budget Balance: The IMF's
 Methodology." Indicators of Structural Budget Balances, Research
 Department Public Finance Workshop, Banca d'Italia, Rome, pp. 53-70
 (available at >a target="_blank"
 href='http://www.bancaditalia.it/studiricerche/convegni/atti/structural_bu
 d_bal'>www.bancaditalia.it/studiricerche/convegni/atti/structural_bud_bal>
 /a></BIBTEXT>	    </REF>	<REF>	     <BIBL>5</BIBL>	  
 <BIBTEXT> Hotelling, H. 1931. "The Economics of Exhaustible Resources."
 >i>Journal of Political Economy>/i> 30, no. 2: 137-175.</BIBTEXT>     
 </REF>      <REF>	  <BIBL>6</BIBL>	<BIBTEXT> Kwon, G. 2003.
 "Post-Crisis Fiscal Revenue Developments in Russia: From an Oil
 Perspective." >i>Public Finance and Management>/i> 3, no. 4:
 505-530.</BIBTEXT>	 </REF>      <REF>	  <BIBL>7</BIBL>       
 <BIBTEXT> Oomes, N., and O. Dynnikova. 2005. "The Utilization-Adjusted
 Output Gap: Is the Russian Economy Overheating?" International Monetary
 Fund, Washington, DC.</BIBTEXT>      </REF>	  <REF>       
 <BIBL>8</BIBL>        <BIBTEXT> Owen, D., and D. Robinson, eds. 2003.
 >i>Russia Rebounds.>/i> Washington, DC: International Monetary
 Fund.</BIBTEXT>      </REF>	  <REF>        <BIBL>9</BIBL>	    
 <BIBTEXT> Takizawa, H.; E. Gardner; and K. Ueda. 2004. "Are Developing
 Countries Better Off Spending Their Oil Wealth Upfront?" Working Paper
 04/141, International Monetary Fund, Washington, DC.</BIBTEXT>      </REF> 
Handle: RePEc:mes:emfitr:v:43:y:2007:i:6:p:25-44




Template-Type: ReDIF-Article 1.0
Author-Name: Qingwang Guo
Author-X-Name-First: Qingwang
Author-X-Name-Last: Guo
Author-Name: Chengsi Zhang
Author-X-Name-First: Chengsi
Author-X-Name-Last: Zhang
Title: Guest Editors’ Introduction: Frontier Issues of Fiscal and Monetary Policy in Emerging Market Economies
Journal: Emerging Markets Finance and Trade
Pages: 687-688
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1039889
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039889
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:687-688




Template-Type: ReDIF-Article 1.0
Author-Name: Qizhi He
Author-X-Name-First: Qizhi
Author-X-Name-Last: He
Author-Name: Conglai Fan
Author-X-Name-First: Conglai
Author-X-Name-Last: Fan
Title: Forecasting Inflation in China
Abstract: 
 We discuss theoretical foundations of inflation dynamics and which indicators can measure the influencing factor of China’s inflation rates and select an indicator capable of providing additional information. We next select further from the indicators, examining previous recursive forecasts based on the special historical background of the preparatory projects for the Twelfth Five-Year Plan and the economic structure model. Then forecasting effects of the thirty-six integrated models, which construct indicators of various factors subjected to the previous forecast inspection, are researched. Finally, some conclusions, such as which integrated models can be used to forecast China’s inflation rates, are determined.
Journal: Emerging Markets Finance and Trade
Pages: 689-700
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1039890
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039890
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:689-700




Template-Type: ReDIF-Article 1.0
Author-Name: Jianhua Gang
Author-X-Name-First: Jianhua
Author-X-Name-Last: Gang
Author-Name: Zongxin Qian
Author-X-Name-First: Zongxin
Author-X-Name-Last: Qian
Title: China’s Monetary Policy and Systemic Risk
Abstract: 
 We study the effect of domestic monetary policies on China’s systemic risk after the collapse of Lehman Brothers. Evidence shows China’s systemic risk was relatively high in 2009 and to the end of 2011. The increased systemic risk was partly due to the contagion from the volatile global financial market, but effects from domestic monetary policy actions are also nonnegligible. Evidence also suggests monetary policy shocks significantly increased China’s systemic risk between October 2008 and November 2013 while they had a limited effect on the real economy. Findings in this article call for a more prudent monetary policy in the context of high global financial risk.
Journal: Emerging Markets Finance and Trade
Pages: 701-713
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1039895
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039895
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:701-713




Template-Type: ReDIF-Article 1.0
Author-Name: Karim Eslamloueyan
Author-X-Name-First: Karim
Author-X-Name-Last: Eslamloueyan
Author-Name: Amir Kia
Author-X-Name-First: Amir
Author-X-Name-Last: Kia
Title: Determinants of the Real Exchange Rate in Oil-Producing Countries of the Middle East and North Africa: A Panel Data Investigation
Abstract: 
 We develop and estimate a model of the real exchange rate for oil-producing countries in the Middle East and North Africa (MENA) for the period 1985–2009. We find that over the long run, money supply, domestic real gross domestic product (GDP), government expenditure, oil price, and the U.S. externally financed debt per GDP influence the real exchange rate. Over the short run, the changes in domestic real GDP, money supply, government expenditure, domestic and U.S. interest rates, as well as the U.S. debt per GDP, are the determinants of the real exchange rate in these countries.
Journal: Emerging Markets Finance and Trade
Pages: 842-855
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1043213
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1043213
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:842-855




Template-Type: ReDIF-Article 1.0
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Lei Lin
Author-X-Name-First: Lei
Author-X-Name-Last: Lin
Title: The Effect of China’s Natural Gas Pricing Reform
Abstract: 
 In recent years, the rapid increase in natural gas consumption and huge dependency on foreign gas have forced China to speed up the process of natural gas pricing reform. The price-gap approach is applied to estimate China’s natural gas subsidies, and the results indicate that China's natural gas subsidies increased from CNY 93.341 billion in 2010 to CNY 188.537 billion in 2012. We also apply the input-output model and find that a natural gas price increase of 10–15 percent has less effect on various price indexes than does complete removal of subsidies. Currently, China’s natural gas accounts for a relatively small proportion of the country’s primary energy consumption, and thus gas pricing reform will not have a significant negative effect on the macroeconomy. The government needs to implement fiscal policies such as direct subsidies, tiered pricing for natural gas, and city-gate price discounts to relatively underdeveloped provinces to ensure the smooth implementation of reform.
Journal: Emerging Markets Finance and Trade
Pages: 812-825
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1043791
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1043791
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:812-825




Template-Type: ReDIF-Article 1.0
Author-Name: Joseph D. Alba
Author-X-Name-First: Joseph D.
Author-X-Name-Last: Alba
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Taojun Xie
Author-X-Name-First: Taojun
Author-X-Name-Last: Xie
Title: Predictability of Exchange Rates With Taylor Rule Fundamentals: Evidence from Inflation-Targeting Emerging Countries
Abstract: 
 We investigate the out-of-sample predictability of U.S. dollar exchange rates with Taylor rule fundamentals in thirteen emerging countries with inflation-targeting monetary policy regimes. We find some evidence of out-of-sample exchange rate predictability for Brazil, Czech Republic, Hungary, Philippines, Thailand, and South Africa. Plots of the coefficients of U.S. inflation and Philippine inflation predict the direction of the U.S. dollar–Philippine peso exchange rates to be opposite to that predicted by the Taylor principle.
Journal: Emerging Markets Finance and Trade
Pages: 714-728
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1046344
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046344
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:714-728




Template-Type: ReDIF-Article 1.0
Author-Name: Junxue Jia
Author-X-Name-First: Junxue
Author-X-Name-Last: Jia
Author-Name: Jing Guo
Author-X-Name-First: Jing
Author-X-Name-Last: Guo
Author-Name: Zijie Wang
Author-X-Name-First: Zijie
Author-X-Name-Last: Wang
Title: The Fiscal-Monetary Policy Mix and Exchange Rate Stability: A Dynamic Stochastic General Equilibrium Model With Chinese Characteristics
Abstract: 
 We develop a small open economy model and compare alternative fiscal-monetary policy mixes using data for China. We show that the trade-offs faced by policy makers involve not only the stabilization of output, inflation, and real exchange rates, but also government debt stability. The source of shocks has important implications for the trade-offs. In the face of external shocks to interest rates or inflation, a passive fiscal and active monetary policy mix performs well in stabilizing government liabilities, inflation, and real exchange rates but generates higher output volatility. An active fiscal and active monetary policy mix is much more stabilizing in response to internal shocks to government expenditures or sector-specific productivity.
Journal: Emerging Markets Finance and Trade
Pages: 729-746
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1046345
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046345
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:729-746




Template-Type: ReDIF-Article 1.0
Author-Name: Berk Yayvak
Author-X-Name-First: Berk
Author-X-Name-Last: Yayvak
Author-Name: Levent Akdeniz
Author-X-Name-First: Levent
Author-X-Name-Last: Akdeniz
Author-Name: Aslihan Altay-Salih
Author-X-Name-First: Aslihan
Author-X-Name-Last: Altay-Salih
Title: Do Time-Varying Betas Help in Asset Pricing? Evidence from Borsa Istanbul
Abstract: 
 We investigate the time variation in the market risk of industry portfolios of Borsa Istanbul with respect to changes in economic conditions by employing the threshold CAPM. The threshold CAPM defines beta as a function of an underlying economic variable, the threshold variable, to allow beta to change between two different regimes when the threshold variable hits a certain threshold level. We use interest rate, currency basket, real effective currency index, and market volatility as candidates for the threshold variable. We find there is a significant time variation in betas with respect to changes in the currency basket level.
Journal: Emerging Markets Finance and Trade
Pages: 747-756
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1046346
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046346
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:747-756




Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Author-Name: Koray D. Simsek
Author-X-Name-First: Koray D.
Author-X-Name-Last: Simsek
Title: Studies of Equity Returns in Emerging Markets: A Literature Review
Abstract: 
 We review the literature on empirical asset pricing in emerging markets. This literature is quite diverse and almost thirty years old. To make this task manageable, we focus on equity markets, limit the topics to return predictability and volatility modeling, and restrict the review to the set of top journals in finance and journals that specialize in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 757-773
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1046347
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046347
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:757-773




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Frömmel
Author-X-Name-First: Michael
Author-X-Name-Last: Frömmel
Author-Name: Xing Han
Author-X-Name-First: Xing
Author-X-Name-Last: Han
Author-Name: Frederick Van Gysegem
Author-X-Name-First: Frederick
Author-X-Name-Last: Van Gysegem
Title: Further Evidence on Foreign Exchange Jumps and News Announcements
Abstract: 
 We apply the bipower variation technique to characterize the jump dynamics in the HUF/EUR market and examine the link between jumps and news announcements of various sources. Our findings confirm that jumps are prevalent, large, and account for approximately one-half of the total volatility during jump days. More important, we find that nearly half of the significant jumps are explained by scheduled and unscheduled news releases, confirming the dynamic announcement effect in the foreign exchange (FX) market. Finally, the postjump reversal patterns suggest that the realized jumps are mostly information based, whether they are obviously linked with news or not.
Journal: Emerging Markets Finance and Trade
Pages: 774-787
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1046348
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046348
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:774-787




Template-Type: ReDIF-Article 1.0
Author-Name: Serkan İmişiker
Author-X-Name-First: Serkan
Author-X-Name-Last: İmişiker
Author-Name: Rasim Özcan
Author-X-Name-First: Rasim
Author-X-Name-Last: Özcan
Author-Name: Bedri Kamil Onur Taş
Author-X-Name-First: Bedri Kamil Onur
Author-X-Name-Last: Taş
Title: Price Manipulation by Intermediaries
Abstract: 
 In this study, we investigate two main research questions using unique individual trade level data from the Istanbul Stock Exchange (ISE; renamed Borsa Istanbul in January 2013): (1) Do brokers conduct manipulative trades in the ISE? (2) Do these brokers gain returns from their manipulative behavior? We examine the trade-based “pump-and-dump” price manipulation scheme. Using the complete intraday trading history of stocks listed on the ISE over the 2003–6 period, we find that a significant percent of the trades conducted by brokers can be identified as consistent with the pump-and-dump price manipulation scheme, and brokers that conduct more pump-and-dump trades earn marginally higher profits.
Journal: Emerging Markets Finance and Trade
Pages: 788-797
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1046349
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046349
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:788-797




Template-Type: ReDIF-Article 1.0
Author-Name: Xin Lv
Author-X-Name-First: Xin
Author-X-Name-Last: Lv
Author-Name: Weijia Dong
Author-X-Name-First: Weijia
Author-X-Name-Last: Dong
Author-Name: Fang Fang
Author-X-Name-First: Fang
Author-X-Name-Last: Fang
Title: The Asymmetric Effects of Official Interest Rate Changes on China’s Stock Market During Different Market Regimes
Abstract: 
 We investigate the effects of China’s official interest rate changes on its stock market. We first prove there is a negative relationship between official rate changes and stock returns, as measured by cumulative abnormal returns (CARs). Then, we divide the Chinese stock market into three regimes (bull, medium, and bear) and indicate that official rate changes have asymmetric effects on CARs during different market regimes, although these effects differ from the effects of interest rate changes on the U.S. market. Specifically, official rate changes have the largest negative effects during bear markets and the smallest effects during medium markets.
Journal: Emerging Markets Finance and Trade
Pages: 826-841
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1047305
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1047305
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:826-841




Template-Type: ReDIF-Article 1.0
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Jianglong Li
Author-X-Name-First: Jianglong
Author-X-Name-Last: Li
Title: Does China’s Energy Development Plan Affect Energy Conservation? Empirical Evidence from Coal-Fired Power Generation
Abstract: 
 Drawing on provincial panel data in China, we study the causal relationship between generation hours and coal consumption rate of coal-fired power and its implication for energy conservation in China’s energy development plan. Empirical results suggest that (1) low generation hours resulting from peak regulation were the main reason for poor efficiency of coal-fired power units in China; (2) increase in power generation hours reduces the coal consumption rate of coal-fired units, but about 70 percent of this effect depends on the dispatching modes; (3) according to China’s Twelfth Five-Year Energy Plan, generation hours of coal-fired power will decrease by 2015 compared to that of 2006–10, which would have adverse effects on coal consumption of rate of coal-fired power plants.
Journal: Emerging Markets Finance and Trade
Pages: 798-811
Issue: 4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2014.998535
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998535
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:798-811




Template-Type: ReDIF-Article 1.0
Author-Name: Subhayu Bandyopadhyay
Author-X-Name-First: Subhayu
Author-X-Name-Last: Bandyopadhyay
Author-Name: Koushik Ghosh
Author-X-Name-First: Koushik
Author-X-Name-Last: Ghosh
Title: Offshoring Quotas and Strategic Export Subsidies
Abstract: 
 We present an analysis of strategic export subsidization in the presence of exogenous limits on the extent of offshoring that is permissible for a domestic firm. Rather than offsetting a quota’s cost-raising effect, the government reduces its optimal strategic subsidy compounding the negative effects on the domestic firm’s market share. This double jeopardy of lower subsidies and greater offshoring restrictions must reduce domestic profits as well as domestic welfare. Finally, we show that there is no guarantee that such an offshoring quota will raise domestic employment in the oligopolistic sector, calling into question the efficacy of such a barrier.
Journal: Emerging Markets Finance and Trade
Pages: 1578-1585
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1310100
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1310100
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:7:p:1578-1585




Template-Type: ReDIF-Article 1.0
Author-Name: Katarzyna Byrka-Kita
Author-X-Name-First: Katarzyna
Author-X-Name-Last: Byrka-Kita
Author-Name: Mateusz Czerwiński
Author-X-Name-First: Mateusz
Author-X-Name-Last: Czerwiński
Author-Name: Agnieszka Preś-Perepeczo
Author-X-Name-First: Agnieszka
Author-X-Name-Last: Preś-Perepeczo
Title: What Drives Shareholder Reaction and Wealth Effect in Block Trades? Evidence from the Warsaw Stock Exchange
Abstract: 
 The main objective of this article is to present the determinants of shareholder reaction to block trades and their wealth effect on the Warsaw Stock Exchange. The positive abnormal returns obtained for the entire sample indicate that block trades create shareholder value. Shareholders reacted positively to block trades without a control transfer in the Polish market, and their reaction was stronger than in the US market. Abnormal returns of block trades concluded at a discount were twice as high as those for the entire sample. Moreover, cross-border block trades had a negative impact on shareholder value creation, as did financial investors as an acquirer. However, cumulative average abnormal returns (CAARs) were driven up by the relative power of minority shareholders (ocean) prior to the transaction. The absolute size of the block acquired by an investor was also observed to have a positive impact on price rises and abnormal returns.
Journal: Emerging Markets Finance and Trade
Pages: 1586-1607
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1315333
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1315333
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:7:p:1586-1607




Template-Type: ReDIF-Article 1.0
Author-Name: Vuslat Us
Author-X-Name-First: Vuslat
Author-X-Name-Last: Us
Title: The Determinants of Nonperforming Loans Before and After the Crisis: Challenges and Policy Implications for Turkish Banks
Abstract: 
 This article examines the determinants of nonperforming loans (NPLs) in the Turkish banking sector via panel data estimation techniques. In order to see the effect of the global crisis and whether this effect changes across ownership, the analysis is conducted in subperiods covering the precrisis and the postcrisis periods and estimations are repeated by an ownership breakdown. Findings show that the determinants of NPLs have changed, and macroeconomic and policy-related determinants have higher significance after the crisis. Accordingly, strong economic activity and sound fiscal policy improve loan quality, while higher policy rate induces NPLs. Meanwhile, the significance of bank-specific determinants depends on ownership. Yet, a common theme applies suggesting that asset size should grow in favor of loans, but this should be backed with efficient loan monitoring, while capital adequacy is stringent enough to limit NPLs.
Journal: Emerging Markets Finance and Trade
Pages: 1608-1622
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1315334
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1315334
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:7:p:1608-1622




Template-Type: ReDIF-Article 1.0
Author-Name: Filip Novotný
Author-X-Name-First: Filip
Author-X-Name-Last: Novotný
Title: Profitability Life Cycle of Foreign Direct Investment: Application to the Czech Republic
Abstract: 
 The decisions of foreign direct investors are profit-seeking, so deterioration in the primary income balance of the current account is observed. We estimate the common profitability profile of foreign direct investment (FDI) on a panel of mostly European countries in the period from 1990 to 2015. The FDI profitability life cycle has a non-linear time profile with duration of 16 years. Maximum profitability is reached in the sixth year after the initial investment. We then construct three scenarios for the evolution of total FDI earnings in the Czech Republic depending on the future FDI inflows (changing FDI stock) assumed.
Journal: Emerging Markets Finance and Trade
Pages: 1623-1634
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1316259
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1316259
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Template-Type: ReDIF-Article 1.0
Author-Name: Moon Jung Choi
Author-X-Name-First: Moon Jung
Author-X-Name-Last: Choi
Author-Name: Geun-Young Kim
Author-X-Name-First: Geun-Young
Author-X-Name-Last: Kim
Author-Name: Joo Yong Lee
Author-X-Name-First: Joo Yong
Author-X-Name-Last: Lee
Title: An Analysis of Trade Patterns and the Effects of the Real Exchange Rate Movements in East Asia
Abstract: 
 This article investigates the patterns of vertical specialization in trade among China, Japan and Korea, and the effects of real exchange rate fluctuations under a multistage production process. By extending the models of Yi (2003, 2010), we derive two distinct features of vertical specialization and test them using Time-Varying Parameter (TVP) VAR. We find that a positive shock to China’s final good consumption increases the intermediate goods trade between Korea and China, with expanding magnitude over time. In addition, the positive effect of a real exchange rate depreciation on intermediate goods trade is strengthened through the competitiveness-enhancing channel, with this effect being more pronouncing in Korea-China trade than in Korea-Japan trade.
Journal: Emerging Markets Finance and Trade
Pages: 1635-1652
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1316712
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1316712
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Template-Type: ReDIF-Article 1.0
Author-Name: Giang Phung
Author-X-Name-First: Giang
Author-X-Name-Last: Phung
Author-Name: Michael Tröge
Author-X-Name-First: Michael
Author-X-Name-Last: Tröge
Title: Can Foreigners Improve the Profitability of Emerging Market Banks? Evidence from the Vietnamese Strategic Partner Program
Abstract: 
 Foreign ownership and foreign management are often assumed to improve the efficiency of emerging market banks. Our article examines this relationship for the Vietnamese strategic partner program, where foreign banks have been allowed to take minority stakes in local banks. We add to the existing literature by distinguishing between ownership by foreign strategic and non-strategic investors, and between foreign management sent by the strategic partner and independent foreign executives. We show that only the presence of independent foreign executives has a positive impact on banks. We interpret these results as the consequence of conflicts of interest and power struggles between local shareholders and the strategic partner, which prevent efficiency in enhancing technology transfer.
Journal: Emerging Markets Finance and Trade
Pages: 1672-1685
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1318055
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1318055
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Template-Type: ReDIF-Article 1.0
Author-Name: Seung-Ho Jung
Author-X-Name-First: Seung-Ho
Author-X-Name-Last: Jung
Author-Name: Byung-Yeon Kim
Author-X-Name-First: Byung-Yeon
Author-X-Name-Last: Kim
Title: Trade Between North Korea and China: Firm-Level Analysis
Abstract: 
 Using the unique survey data involving 138 Chinese firms, this study examines the determinants of the performance of the Chinese firms doing businesses with North Korea. The business ties between the Chinese firms and their North Korean counterparts affiliated with the army are positively correlated with the former’s performance. This finding suggests that North Korea’s “Military First” policy acts as a guiding principle of the resource allocation in the country’s export sector. We also found that South Korean sanctions against North Korea were ineffective in banning North Korean goods from gaining access to the South Korean market possibly because of the circumvention of Chinese firms.
Journal: Emerging Markets Finance and Trade
Pages: 1475-1489
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1373641
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1373641
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Template-Type: ReDIF-Article 1.0
Author-Name: Piyush Pandey
Author-X-Name-First: Piyush
Author-X-Name-Last: Pandey
Author-Name: Sanjay Sehgal
Author-X-Name-First: Sanjay
Author-X-Name-Last: Sehgal
Title: Dynamic Currency Linkages and Their Determinants: An Empirical Study for East Asian Economic Community Region
Abstract: 
 In this article, Copula GARCH models have been employed to study the inter-temporal process of currency market co-movements between ASEAN+6 countries (referred to in this study as East Asian Economic Community) and ASEAN+6 currency market index. Empirical results show that the sample countries of the region exhibit varying levels of currency co-movements with the Asian benchmark. Markov regime switching results show that many of the countries which had high dependences with the regional currency index as was found in copula estimations had also overlapping currency market cycles. Using Principal Component Analysis, we find that three statistical factors explain exchange rate co-movements which came out to be trade linkages, economic risk, and currency market openness in our dynamic panel data estimation.
Journal: Emerging Markets Finance and Trade
Pages: 1538-1556
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1380621
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1380621
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Template-Type: ReDIF-Article 1.0
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Yufang Chen
Author-X-Name-First: Yufang
Author-X-Name-Last: Chen
Title: Carbon Price in China: A CO2 Abatement Cost of Wind Power Perspective
Abstract: 
 As a result of rapid development of industrialization and urbanization, energy (especially fossil fuels) demand growth is increasing. Hence, China is facing the huge pressure of environmental protection and CO2 emission reduction. The feed-in tariff (FIT) policy that promotes more wind power to substitute for thermal power and a well-functioning carbon price mechanism can significantly affect CO2 abatement, and both can work in coordination to achieve emission reduction. Using panel model, we prove that FIT policy is more effective than other policies in promoting more wind power. Also the slowdown of economic growth, energy substitution, technological progress, and CO2 mitigation requirement can stimulate the expansion of wind power. Additionally, based on the calculation of real abatement cost of wind power, we obtain the provincial and national average of carbon prices (239 CNY/ton and 242 CNY/ton). Specifically, 233-251 CNY/ton will be the range for reasonable carbon price in the future. We find that the carbon prices in this article are higher than those of the emissions trading scheme pilots in 2014 and 2015, due to the relatively high proportion of free allowance. Based on the above conclusions, we proposed some policy suggestions.
Journal: Emerging Markets Finance and Trade
Pages: 1653-1671
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1386547
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1386547
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Template-Type: ReDIF-Article 1.0
Author-Name: Jehoon Park
Author-X-Name-First: Jehoon
Author-X-Name-Last: Park
Title: Political Economy of Regional Integration: The Northeast Asian Model Revisited
Abstract: 
 It is found that the intra-regional trade share or functional integration plays an important role in the institutionalization of regional integration not only in the European Union (EU) but also in Northeast Asia. The crisis factor, which is measured by the regional economic growth rates, is empirically significant in Northeast Asia but not in the EU. This situation confirms the crisis model for Northeast Asia that emphasizes the stimulating role of crisis for the institutionalization of regional integration. However, the political leadership factor is not empirically significant in Northeast Asia and in the EU, and this finding does not support the political leadership model that emphasizes the facilitating role of political leadership for the institutionalization of regional integration.
Journal: Emerging Markets Finance and Trade
Pages: 1463-1474
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1404450
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1404450
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Template-Type: ReDIF-Article 1.0
Author-Name: Furong Jin
Author-X-Name-First: Furong
Author-X-Name-Last: Jin
Author-Name: Jihyun Jung
Author-X-Name-First: Jihyun
Author-X-Name-Last: Jung
Title: Structural Changes in China’s Import Market: A Comparison with Korea’s Exports to China
Abstract: 
 The article examines the structural changes of China’s import market for domestic demand and the corresponding structural changes of Korea’s exports to China for Chinese domestic demand. Using 8-digit HS code data covering the period 2006–2014 and analyzing the processing steps as well as by industry, this study reveals that while the share of ordinary trade in total China’s imports has increased rapidly, the share of processing trade has decreased continuously since the mid-2000s. The article also shows that Korea’s exports to China is still processing trade-oriented. The slowdown of Korea’s exports to China is because of the concentration on processing trade, intermediate goods, electronics and chemistry.
Journal: Emerging Markets Finance and Trade
Pages: 1490-1512
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2017.1413345
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1413345
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Template-Type: ReDIF-Article 1.0
Author-Name: Yongwoong Lee
Author-X-Name-First: Yongwoong
Author-X-Name-Last: Lee
Author-Name: KiHoon Hong
Author-X-Name-First: KiHoon
Author-X-Name-Last: Hong
Author-Name: Kisung Yang
Author-X-Name-First: Kisung
Author-X-Name-Last: Yang
Title: Sovereign Risk Contagion in East Asia: A Mixture of Time-Varying Copulas Approach
Abstract: 
 This study analyzes sovereign risk contagion between four East Asian economies (China, Hong Kong, Japan, and Korea) and its structural changes through the Global Financial Crisis (GFC) and the European Debt Crisis (EDC) by applying the mixture of time-varying copulas to those economies’ credit default swap (CDS) spreads.This article first finds a strong contagion from the US and PIIGS economies to the East Asian sovereign CDS markets and intraregional contagion within the East Asian markets. Second, the impact of contagion is different according to whether it is measured by the linear (Gaussian) or the upper tail dependence. Third, Japan plays an important role in increasing the linear dependence whereas China and Korea are crucial in terms of the upper tail dependence. Lastly, the GFC has structurally increased the linear dependence but not the upper tail dependence between the East Asian sovereign CDS markets.
Journal: Emerging Markets Finance and Trade
Pages: 1513-1537
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2018.1445989
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1445989
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Template-Type: ReDIF-Article 1.0
Author-Name: Chunding Li
Author-X-Name-First: Chunding
Author-X-Name-Last: Li
Author-Name: Chuantian He
Author-X-Name-First: Chuantian
Author-X-Name-Last: He
Author-Name: Chuangwei Lin
Author-X-Name-First: Chuangwei
Author-X-Name-Last: Lin
Title: Economic Impacts of the Possible China–US Trade War
Abstract: 
 This article uses a multi-country global general equilibrium (GE) model to numerically simulate the effects of possible China–US trade wars. We introduce an endogenous trade imbalance structure with trade cost into the model which helps to explore both tariff and non-tariff trade war effects. Our simulation results show that China will be significantly hurt by the China–US trade war, but negative impacts are affordable. The US can gain under unilateral sanction measures to China, but will lose if China takes retaliation measures. Comparing the effects under mutual trade war, China will lose more than the US. Introducing non-tariff barrier trade wars will intensify the negative effects, and comparatively negative effects to China are larger than to the US. Mexico’s involvement in trade war with the US will strengthen the negative effects and comparatively hurt the US more. Under non-cooperative and cooperative Nash bargaining equilibrium, the US can gain more than China in trade war negotiation, which means the US has stronger bargaining power than China. Additionally, trade wars between China and the US will hurt most countries and the world especially in GDP and manufacturing employment, but benefit their welfare and trade.
Journal: Emerging Markets Finance and Trade
Pages: 1557-1577
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2018.1446131
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1446131
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Template-Type: ReDIF-Article 1.0
Author-Name: Jehoon Park
Author-X-Name-First: Jehoon
Author-X-Name-Last: Park
Title: Asian Economic Integration
Journal: Emerging Markets Finance and Trade
Pages: 1461-1462
Issue: 7
Volume: 54
Year: 2018
Month: 5
X-DOI: 10.1080/1540496X.2018.1462945
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1462945
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Template-Type: ReDIF-Article 1.0
Author-Name: Yi Chen
Author-X-Name-First: Yi
Author-X-Name-Last: Chen
Author-Name: Lu Kong
Author-X-Name-First: Lu
Author-X-Name-Last: Kong
Author-Name: Rui Wang
Author-X-Name-First: Rui
Author-X-Name-Last: Wang
Author-Name: Jiamin Hu
Author-X-Name-First: Jiamin
Author-X-Name-Last: Hu
Title: Income Distribution and Aggregate Saving: Theory and China’s Evidence
Abstract: 
 Using a parsimonious heterogeneous-agent general equilibrium model, this study reveals a positive causal effect of income inequality on the aggregate saving rate. In the model economy, benevolent individuals save to leave offspring bequests. Since bequests are luxury, the rich have a higher marginal propensity to save. Then, else equal, a fall in income inequality will lower the economy-wide saving rate. The model predicts an augmented aggregate saving function: the aggregate saving rate depends positively not only on the aggregate income level, but also on the dispersion of income. We find some empirical support for this hypothesis using China’s province-level longitudinal data.
Journal: Emerging Markets Finance and Trade
Pages: 416-439
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1172206
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1172206
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiantao Zhou
Author-X-Name-First: Jiantao
Author-X-Name-Last: Zhou
Author-Name: Shanshan Wang
Author-X-Name-First: Shanshan
Author-X-Name-Last: Wang
Author-Name: Jianbo Zhou
Author-X-Name-First: Jianbo
Author-X-Name-Last: Zhou
Author-Name: Yanli Xu
Author-X-Name-First: Yanli
Author-X-Name-Last: Xu
Title: Measurement of the Severity of Opportunistic Fraud in Injury Insurance: Evidence from China
Abstract: 
 This article assesses the effects of claimant demographics and other claim characteristics on the measurement of the severity of opportunistic fraud using 96 excess claim lawsuits in personal injury insurance in China in 2000–2012. The empirical result indicates that severe opportunistic fraud that results in death is more numerous than it is for fraud that leads to disability and nondisability, which may be due to the fact that more severe injury may create greater openings for opportunistic fraud. Second, the severity of opportunistic fraud in provincial cities is lower than that in small or midsize cities because the former does not imply greater severity of opportunistic fraud. Third, the severity of opportunistic fraud in injuries from daily activity is greater than that for injuries from work and traffic accidents, implying that a higher excess claim probability and greater severity of opportunistic fraud in injuries from daily activity are consistent.
Journal: Emerging Markets Finance and Trade
Pages: 387-399
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1177787
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1177787
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Template-Type: ReDIF-Article 1.0
Author-Name: Christopher A. Hartwell
Author-X-Name-First: Christopher A.
Author-X-Name-Last: Hartwell
Title: If You’re Going Through Hell, Keep Going: Nonlinear Effects of Financial Liberalization in Transition Economies
Abstract: 
 Did increasing the level and pace of financial liberalization during transition expose countries to crises? And if a crisis did strike, did liberalization do more harm or good? Using a database of 28 transition economies over 22 years, this article examines these questions across a host of economic outcomes, including savings and the size of the private sector. The results provide evidence that, while liberalization may initially increase the probability of a crisis, the prospect of a crisis drops dramatically at higher levels of financial openness. Moreover, the benefits of liberalization across several metrics outweigh the risks of these intermediate stages.
Journal: Emerging Markets Finance and Trade
Pages: 250-275
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1180284
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1180284
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:250-275




Template-Type: ReDIF-Article 1.0
Author-Name: Shenggang Yang
Author-X-Name-First: Shenggang
Author-X-Name-Last: Yang
Author-Name: Xun Gong
Author-X-Name-First: Xun
Author-X-Name-Last: Gong
Author-Name: Si Xu
Author-X-Name-First: Si
Author-X-Name-Last: Xu
Title: Underwriting Syndicates and the Cost of Debt: Evidence from Chinese Corporate Bonds
Abstract: 
 This article examines the association between underwriting syndicates and the cost of debt based on a sample of Chinese corporate bonds during 2007–2013. We find strong evidence that there is a negative relationship between forming underwriting syndicates and the cost of debt. The cost of bonds is more likely to decrease when the syndicate has more members—specifically, more joint managers. Additionally, by measuring the information asymmetry using several methods, we observe that this negative relationship is more pronounced when the information asymmetry between issuers and bond investors is more serious. The above results are robust after controlling for the potential endogeneity by constructing instrumental variables based on the unique setting of China’s corporate bond market.
Journal: Emerging Markets Finance and Trade
Pages: 471-491
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1184140
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1184140
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:471-491




Template-Type: ReDIF-Article 1.0
Author-Name: Jianbo Zhou
Author-X-Name-First: Jianbo
Author-X-Name-Last: Zhou
Author-Name: Yu Hao
Author-X-Name-First: Yu
Author-X-Name-Last: Hao
Author-Name: Fujie Jin
Author-X-Name-First: Fujie
Author-X-Name-Last: Jin
Author-Name: Jiantao Zhou
Author-X-Name-First: Jiantao
Author-X-Name-Last: Zhou
Title: Shanxi Merchants’ Multilevel Financial System in Ming and Qing Dynasties, China
Abstract: 
 In the Ming and Qing Dynasties (1368–1911), China saw rapid development in industrial and commercial sectors. Over this period, a group of merchants originating from the inland province of Shanxi gradually built a multilevel financial system and became leaders in China’s banking sector. The system of financial institutions they established (pawnshops, seal shops, money shops, loan banks, and draft banks) each had a unique business model, with specific target client group and carefully designed risk management. They were also interconnected to allow for flexible capital flows, contributing to the fast economic growth in this period. Nevertheless, the traditional system also had limitations, leading to its replacement by modern banks eventually.
Journal: Emerging Markets Finance and Trade
Pages: 376-386
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1185709
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1185709
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:376-386




Template-Type: ReDIF-Article 1.0
Author-Name: Imran Riaz Malik
Author-X-Name-First: Imran Riaz
Author-X-Name-Last: Malik
Author-Name: Attaullah Shah
Author-X-Name-First: Attaullah
Author-X-Name-Last: Shah
Title: The Impact of Single Stock Futures on Market Efficiency and Volatility: A Dynamic CAPM Approach
Abstract: 
 The concerns regarding regulations of futures markets and their destabilizing ability are unresolved in both developed and developing markets. Following stringent regulations of single stock futures (SSFs) for resumption episode after financial crises, this study addresses this concern and investigates the destabilizing impact of SSFs on the underlying stocks in an emerging economy using data of companies listed in the Karachi Stock Exchange between 1999 and 2008. Specifically, the study explores whether SSFs have caused a simultaneous increase in the volatility and operational efficiency of their underlying spot market counterparts. The results reported in the study show that the introduction of SSFs has no significant impact on market efficiency and volatility of SSFs underlying stocks and non-SSFs stocks. The results affirm that SSFs have, at least, no destabilizing impact on the underlying stocks.
Journal: Emerging Markets Finance and Trade
Pages: 339-356
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1210507
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1210507
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:339-356




Template-Type: ReDIF-Article 1.0
Author-Name: Paulo Rogério Faustino Matos
Author-X-Name-First: Paulo Rogério Faustino
Author-X-Name-Last: Matos
Title: On the Latin American Credit Drivers
Abstract: 
 We add to the literature about credit in Latin America by assessing what has been driving the recent and heterogeneous expansion of credit to gross domestic product based on supply and demand variables. We chose working with these emerging economies due to the low levels of human capital, the divergent patterns of evolution of economic variables and the vulnerability of credit expansion. According to balanced panel estimations, our main findings in terms of public policy suggest that credit reflects a financial deepening characterized by a higher bank concentration and by a policy able to stimulate saving even practicing lower deposit interest rates.
Journal: Emerging Markets Finance and Trade
Pages: 306-320
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1210508
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1210508
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:306-320




Template-Type: ReDIF-Article 1.0
Author-Name: Ian A. Glew
Author-X-Name-First: Ian A.
Author-X-Name-Last: Glew
Title: Lambs to Slaughter: Potential for Crises in Smaller Nations of the European Union
Abstract: 
 The Minsky (1992) model links inflation during economic expansion to the potential for subsequent reversal. This model was tested in the European economic region using logistic regression, which indicated inflation had the greatest contribution toward potential for crisis. Three equations included inflation with other selected macroeconomic indicators tracked by the World Bank. GDP growth, GDP/GNI ratio, and adoption of the Euro demonstrated positive effects. Predictions based on the chosen indicators suggest that the newer members of the European Union may be vulnerable to crisis following periods of high inflation; recent slowing of economic activity in Europe has actually improved the predicted outcomes.
Journal: Emerging Markets Finance and Trade
Pages: 276-288
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1212704
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1212704
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:276-288




Template-Type: ReDIF-Article 1.0
Author-Name: Inbin Hwang
Author-X-Name-First: Inbin
Author-X-Name-Last: Hwang
Author-Name: Deokjong Jeong
Author-X-Name-First: Deokjong
Author-X-Name-Last: Jeong
Author-Name: Hyungsoon Park
Author-X-Name-First: Hyungsoon
Author-X-Name-Last: Park
Author-Name: Sunyoung Park
Author-X-Name-First: Sunyoung
Author-X-Name-Last: Park
Title: Which Net Capital Flows Matter?
Abstract: 
 This article classifies extreme net capital flow episodes into four types and analyzes the macroeconomic impacts of each type. First, we find that all types of episodes increased drastically in the 2000s relative to previous years. Second, we conclude that liability-flow-driven episodes have more significant macroeconomic impacts than do asset-flow-driven episodes. Third, we show that only drastic positive net capital flows that were driven by liability flows were associated with a higher probability of banking crises in the 2000s. The results suggest that the detailed classification of extreme net capital flows provides insight into these movements’ macroeconomic impacts and policy implementations.
Journal: Emerging Markets Finance and Trade
Pages: 289-305
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1212705
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1212705
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:289-305




Template-Type: ReDIF-Article 1.0
Author-Name: Baris Kocaarslan
Author-X-Name-First: Baris
Author-X-Name-Last: Kocaarslan
Author-Name: Ramazan Sari
Author-X-Name-First: Ramazan
Author-X-Name-Last: Sari
Author-Name: Ugur Soytas
Author-X-Name-First: Ugur
Author-X-Name-Last: Soytas
Title: Are There Any Diversification Benefits Among Global Finance Center Candidates in Eurasia?
Abstract: 
 Several Eurasian markets are considered as potential global financial centers. The main objective of this article is to evaluate the two strong candidates, Russia and Turkey, based on short- and long-run diversification benefits they provide to global investors along with big four global finance centers (US, UK, Hong Kong, Singapore) in the world. To that respect, we investigate both price spillover and volatility spillover effects among global finance centers and the two strong Eurasian candidates. Our results suggest that Istanbul Stock Exchange (ISE) has more diversification benefits and is more resilient to risk transfers from other markets compared to Moskow Stock Exchange (MSE).
Journal: Emerging Markets Finance and Trade
Pages: 357-374
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1216838
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216838
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:357-374




Template-Type: ReDIF-Article 1.0
Author-Name: Silvia Dal Bianco
Author-X-Name-First: Silvia
Author-X-Name-Last: Dal Bianco
Author-Name: Chiara Amini
Author-X-Name-First: Chiara
Author-X-Name-Last: Amini
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: The Impact of the Global Financial Crisis and the Role of External and Internal Factors in Emerging Economies
Abstract: 
 This article assesses the impact of trade, capital openness and institutions on emerging economies’ output loss during the “Great Recession.” The fixed-effect estimates of an unbalanced panel of 122 emerging countries observed from 2008 to 2010 yield three main results. First, trade openness has exacerbated output loss. Second, capital openness can help mitigate the negative impact of an external shock, but this is conditional on the level of financial development. Finally, the results also point out that the interrelations between financial and institutional development affect the crisis’s severity.
Journal: Emerging Markets Finance and Trade
Pages: 229-249
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1216840
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216840
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:229-249




Template-Type: ReDIF-Article 1.0
Author-Name: Seungmin Chee
Author-X-Name-First: Seungmin
Author-X-Name-Last: Chee
Author-Name: Soo Young Kwon
Author-X-Name-First: Soo Young
Author-X-Name-Last: Kwon
Author-Name: Ju Hyun Pyun
Author-X-Name-First: Ju Hyun
Author-X-Name-Last: Pyun
Title: Investment Decisions in Anticipation of Recessions and Outperformance of Pre-Acting Firms
Abstract: 
 We empirically examine whether firms make investment decisions in anticipation of recessions and subsequently perform better. Using a large quarterly dataset of fixed asset investments for U.S. firms during 1984–2012, we show that not all firms efficiently adjust their investment decisions in anticipation of a recession. However, we find that pre-acting firms that properly adjust their investment decisions (i.e., underinvest) before a recession outperform re-acting firms that fail to make proper investment decisions (i.e., overinvest) before a recession in subsequent returns on assets, returns on investments, and market-adjusted return measures.
Journal: Emerging Markets Finance and Trade
Pages: 321-338
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1216842
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216842
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:321-338




Template-Type: ReDIF-Article 1.0
Author-Name: Sirajo Aliyu
Author-X-Name-First: Sirajo
Author-X-Name-Last: Aliyu
Author-Name: M. Kabir Hassan
Author-X-Name-First: M. Kabir
Author-X-Name-Last: Hassan
Author-Name: Rosylin Mohd Yusof
Author-X-Name-First: Rosylin
Author-X-Name-Last: Mohd Yusof
Author-Name: Nasri Naiimi
Author-X-Name-First: Nasri
Author-X-Name-Last: Naiimi
Title: Islamic Banking Sustainability: A Review of Literature and Directions for Future Research
Abstract: 
 This study reviews literature on the Islamic banking sustainability and presents directions for future research. The article discourses scholars’ and practitioners’ views on the two perspectives of sustainability in relation to the objectives of Islamic banking and finance. That there are limited studies on Islamic banking sustainability is one of the major issues presented in the article. The study highlights essential issues on the sustainability without in-depth empirical analysis. The needs for long-term economic, social, and environmental sustainability are not a compromising issue. Therefore, Islamic banks must strike a balance between the institutional, societal, and environmental sustainability in order to achieve the objective of Sharia.
Journal: Emerging Markets Finance and Trade
Pages: 440-470
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1262761
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1262761
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Template-Type: ReDIF-Article 1.0
Author-Name: Chongyu Wu
Author-X-Name-First: Chongyu
Author-X-Name-Last: Wu
Author-Name: Jiantao Zhou
Author-X-Name-First: Jiantao
Author-X-Name-Last: Zhou
Author-Name: Hui Li
Author-X-Name-First: Hui
Author-X-Name-Last: Li
Author-Name: Zhongyi Liu
Author-X-Name-First: Zhongyi
Author-X-Name-Last: Liu
Author-Name: Xinyi Cai
Author-X-Name-First: Xinyi
Author-X-Name-Last: Cai
Title: Do Imported Commodities Cause Inflation in China? An Armington Substitution Elasticity Analysis
Abstract: 
 Based on the perspective of Armington substitution elasticity, this article researches the price transmission effect of China’s imported commodities. First, this article focuses on the theory of Armington substitution elasticity of nonhomogeneous products and then estimates the overall level of Armington substitution elasticity of China’s imported commodities. Second, this article studies the fluctuation trend in Armington substitution elasticity’s estimations using a state space model. The results of this article indicate that the value of Armington substitution elasticity of China’s imported commodities is negative and decreased significantly after the international financial crisis, which means that the relationship between China’s imported commodities and domestic products is complementary rather than substitutional. Moreover, this article finds evidence of the price transmission effect in China’s imported commodities. However, this effect is not obvious and weakened after the international financial crisis. Finally, we conclude that, if it wishes to prevent serious inflationary problems in China, the Chinese government should pay attention to the price of domestic products instead of focusing on the hazards of imported inflation (deflation).
Journal: Emerging Markets Finance and Trade
Pages: 400-415
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2016.1265502
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1265502
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Template-Type: ReDIF-Article 1.0
Author-Name: Jinghai Zheng
Author-X-Name-First: Jinghai
Author-X-Name-Last: Zheng
Title: Financial History, Insurance Fraud, Armington Substitution Elasticity, and Aggregate Saving in China
Journal: Emerging Markets Finance and Trade
Pages: 375-375
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2017.1275556
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1275556
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:375-375




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Author-Name: Marcello Signorelli
Author-X-Name-First: Marcello
Author-X-Name-Last: Signorelli
Title: What Drives Financial Crises in Emerging Markets?
Journal: Emerging Markets Finance and Trade
Pages: 227-228
Issue: 2
Volume: 53
Year: 2017
Month: 2
X-DOI: 10.1080/1540496X.2017.1277577
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1277577
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:2:p:227-228




Template-Type: ReDIF-Article 1.0
Author-Name: Hasan Burak Arslan
Author-X-Name-First: Hasan Burak
Author-X-Name-Last: Arslan
Author-Name: Serif Aziz Simsir
Author-X-Name-First: Serif Aziz
Author-X-Name-Last: Simsir
Title: Measuring Takeover Premiums in Cross-Border Mergers and Acquisitions: Insights from Turkey
Abstract: 
 We investigate whether the merger announcement dates provided in a popular mergers and acquisitions (M&amp;A) database, SDC, serve as accurate event dates for estimating the wealth effects of mergers on target firms located in Turkey. We find that 74 percent of SDC’s merger announcement dates are preceded by merger-related events such as merger rumors, target firms’ search for potential acquirers, and early-stage merger negotiation announcements. Target cumulative abnormal return (CAR) estimates around these early dates are almost twice as large as the CAR estimates around SDC’s merger announcement dates. We argue that our findings have implications for the recently flourishing cross-border M&amp;A literature.
Journal: Emerging Markets Finance and Trade
Pages: 188-203
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2015.1011505
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011505
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:188-203




Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Munzele Maimbo
Author-X-Name-First: Samuel Munzele
Author-X-Name-Last: Maimbo
Author-Name: Martin Melecky
Author-X-Name-First: Martin
Author-X-Name-Last: Melecky
Title: Financial Policy in Practice: Benchmarking Financial Sector Strategies Around the World
Abstract: 
 Policy makers use financial sector strategies to formulate a holistic policy for the national financial system. This article examines and rates financial sector strategies around the world on how well they formulate development targets, arrangements for systemic risk management, and implementing plans. The strategies are also rated on whether they consider policy trade-offs between financial development and systemic risk management. The rated strategies are then benchmarked against a range of country characteristics. The analysis finds that the scope and quality of national strategies for the financial sector are systematically influenced by several country characteristics. Interestingly, policy trade-offs, particularly between financial development and systemic risk management, are not adequately considered in the strategies.
Journal: Emerging Markets Finance and Trade
Pages: 204-222
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2015.1012396
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1012396
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:204-222




Template-Type: ReDIF-Article 1.0
Author-Name: Laura Cojocaru
Author-X-Name-First: Laura
Author-X-Name-Last: Cojocaru
Author-Name: Evangelos M. Falaris
Author-X-Name-First: Evangelos M.
Author-X-Name-Last: Falaris
Author-Name: Saul D. Hoffman
Author-X-Name-First: Saul D.
Author-X-Name-Last: Hoffman
Author-Name: Jeffrey B. Miller
Author-X-Name-First: Jeffrey B.
Author-X-Name-Last: Miller
Title: Financial System Development and Economic Growth in Transition Economies: New Empirical Evidence from the CEE and CIS Countries
Abstract: 
 We examine the role of financial development in economic growth in the former Communist countries of Central and Eastern Europe and the Commonwealth of Independent States during the first two decades since the beginning of transition. These countries, which had undeveloped financial systems under Communism, provide an interesting test of the relationship between financial development and growth. Our study is the broadest in terms of coverage and time period. We find that measures of financial market efficiency and competitiveness are more important than the size of the market in terms of promoting economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 223-236
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2015.1013828
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1013828
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Template-Type: ReDIF-Article 1.0
Author-Name: Chau H.A. Le
Author-X-Name-First: Chau H.A.
Author-X-Name-Last: Le
Author-Name: David G. Dickinson
Author-X-Name-First: David G.
Author-X-Name-Last: Dickinson
Title: The Systemic Risk of Cross-Border Banking: Evidence from the Sudden Stop and Interbank Stress Contagion in East Asia
Abstract: 
 This article investigates the systemic risk of cross-border banking in East Asia. Using the recursive bivariate probit model, we jointly test the probability of the sudden stop in international lending and its simultaneous effect on the host countries’ interbank markets. The empirical results suggest that the risk of a sudden stop is associated with global liquidity shock; host country productivity shock; and the common lender contagion effect. This facilitates the transmission of interbank stress from advanced economies to emerging markets. However, the tension is mitigated by the “flight-home effect” caused by domestic investors’ repatriation. The sudden stop is more likely to occur in countries with lower financial openness but higher financial risk. Lending flows to the banking sectors are more sensitive to shocks than the flows to the non-bank private sectors.
Journal: Emerging Markets Finance and Trade
Pages: 237-254
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2015.1021643
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1021643
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Template-Type: ReDIF-Article 1.0
Author-Name: Hasan F. Baklaci
Author-X-Name-First: Hasan F.
Author-X-Name-Last: Baklaci
Author-Name: Ömür Süer
Author-X-Name-First: Ömür
Author-X-Name-Last: Süer
Author-Name: Tezer Yelkenci
Author-X-Name-First: Tezer
Author-X-Name-Last: Yelkenci
Title: Volatility Linkages Among Gold Futures in Emerging Markets
Abstract: 
 We aim to detect the cross-border volatility linkages among gold futures in emerging markets, which still remain an untapped area. China, India, Japan, Taiwan, Turkey, and U.S. futures markets are included in the sample. The volatility linkage analyses confirm the existence of volatility transmission among the majority of the sample countries’ gold futures. This article carries vital inferences and implications for policy makers and investors. The policy making is particularly important for China, which is a relatively isolated market. From investors’ perspective, the results indicate that the risk diversification and cross-market hedging opportunities in the emerging gold futures markets are quite limited.
Journal: Emerging Markets Finance and Trade
Pages: 1-9
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2015.1062292
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1062292
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Template-Type: ReDIF-Article 1.0
Author-Name: Zongxin Qian
Author-X-Name-First: Zongxin
Author-X-Name-Last: Qian
Author-Name: Qian Luo
Author-X-Name-First: Qian
Author-X-Name-Last: Luo
Title: Regime-Dependent Determinants of China’s Sovereign Credit Default Swap Spread
Abstract: 
 We study the determinants of China’s sovereign credit default swap (CDS) spread in a regime-switching framework. This framework allows us to identify potential cross-asset-class contagion from global financial markets to China. To avoid endogeneity biases coming from domestic costs of sovereign default, we model domestic financial indicators as endogenous variables and estimate the regime-switching model with instrumental variables. We find strong evidence of cross-asset-class contagion but no evidence of contagion from sovereign CDS markets of China’s major trade partners (the European Union, Japan, and the United States).
Journal: Emerging Markets Finance and Trade
Pages: 10-21
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2015.1062293
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1062293
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Template-Type: ReDIF-Article 1.0
Author-Name: Qin Li
Author-X-Name-First: Qin
Author-X-Name-Last: Li
Author-Name: Mingzhi Li
Author-X-Name-First: Mingzhi
Author-X-Name-Last: Li
Author-Name: Jinfeng Luo
Author-X-Name-First: Jinfeng
Author-X-Name-Last: Luo
Title: Revisiting Border Effect: Evidence from Taobao.com in China
Abstract: 
 Inherent home bias and trade barriers (particularly local protectionism in China), which are difficult to separate, are two main explanations of border effect. We attempt to solve this problem by analyzing online trade. Different from offline trade, inherent home bias is the only cause of online border effect because local governments are usually unable to restrict online trade. Thus, the difference between the border effect in online and offline trade can be reasonably interpreted as the existence of government protectionism in the offline market. We find a statistically significant difference between online and offline border effects in China, which can be interpreted as strong evidence that policy barriers remain significant and hinder interregional trade.
Journal: Emerging Markets Finance and Trade
Pages: 22-38
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2015.1062299
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1062299
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Template-Type: ReDIF-Article 1.0
Author-Name: Woon-Oh Jung
Author-X-Name-First: Woon-Oh
Author-X-Name-Last: Jung
Author-Name: Sung Ook Park
Author-X-Name-First: Sung Ook
Author-X-Name-Last: Park
Author-Name: Heesun Chung
Author-X-Name-First: Heesun
Author-X-Name-Last: Chung
Title: Debt Financing and Voluntary Adoption of the International Financial Reporting Standards: Evidence from Korean Unlisted Firms
Abstract: 
 We investigate the effect of debt financing on the voluntary adoption of the International Financial Reporting Standards (IFRS) by unlisted firms and such adoption’s effect on bond credit rating. We find that unlisted firms with public debts are more likely to voluntarily adopt IFRS. Subsequent to the voluntary application of IFRS, the unlisted firms exhibit, on average, enhanced credit ratings. These findings suggest that the public debt market’s demand for high-quality financial reporting may drive those unlisted firms to voluntarily adopt IFRS. Furthermore, rating agencies seem to reward such firms by elevating their bond credit ratings.
Journal: Emerging Markets Finance and Trade
Pages: 39-51
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2015.1062301
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1062301
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Template-Type: ReDIF-Article 1.0
Author-Name: Ender Demir
Author-X-Name-First: Ender
Author-X-Name-Last: Demir
Author-Name: Ka Wai Terence Fung
Author-X-Name-First: Ka Wai Terence
Author-X-Name-Last: Fung
Author-Name: Zhou Lu
Author-X-Name-First: Zhou
Author-X-Name-Last: Lu
Title: Capital Asset Pricing Model and Stochastic Volatility: A Case Study of India
Abstract: 
 The existing literature demonstrates that under a general equilibrium model, the performance of the Capital Asset Pricing Model (CAPM) can be improved significantly by using conditional consumption and market return volatilities as factors. This article tests the validity of these factors explaining stock return differences using a less developed country (India) as a case study. While the earlier studies used panel data to test CAPM, we use portfolios sorted by size and book-to-market equity (BE/ME) ratio. We found that conditional volatility has a limited effect on firms with large capitalization but a significant impact on small-growth and small-value firms.
Journal: Emerging Markets Finance and Trade
Pages: 52-65
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2015.1062302
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1062302
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Template-Type: ReDIF-Article 1.0
Author-Name: Philippe Gilles
Author-X-Name-First: Philippe
Author-X-Name-Last: Gilles
Title: FINANDEBT International Conference 2014: “Debt Crises and Financial Stability: Global Issues and Euro-Mediterranean Perspectives”
Journal: Emerging Markets Finance and Trade
Pages: 66-69
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2016.1105681
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1105681
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:66-69




Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Gambacorta
Author-X-Name-First: Leonardo
Author-X-Name-Last: Gambacorta
Title: Relationship and Transaction Lending: New Evidence and Perspectives
Abstract: 
 In this article, I try to answer three questions: (1) How do relationship lending and transaction lending vary over the cycle? (2) How do economic systems that are more “bank oriented” perform compared to “market-oriented” systems? (3) What are the consequences on relationship banking of the recent structural bank regulation reforms adopted to separate specific investment and commercial banking activities? Building on some recent evidence, the main conclusions are as follows: (1) Relationship banks protect their clients in normal downturns; (2) when recessions coincide with a financial crisis, countries that rely relatively more on bank financing tend to be more severely hit; (3) the effects of structural bank regulation initiatives on relationship banking are uncertain.
Journal: Emerging Markets Finance and Trade
Pages: 70-75
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2016.1105682
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1105682
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:70-75




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Ari
Author-X-Name-First: Ali
Author-X-Name-Last: Ari
Author-Name: Raif Cergibozan
Author-X-Name-First: Raif
Author-X-Name-Last: Cergibozan
Title: The Twin Crises: Determinants of Banking and Currency Crises in the Turkish Economy
Abstract: 
 Several twin crises occurred in the Turkish economy in the last three decades. In this article, we aim to analyze the link between banking and currency crises and to illustrate the essential determinants of these twin crises by developing a multivariate logit model for the period 1990–2013. The empirical findings show that Turkish currency crises are mainly due to excessive fiscal deficits, rises in short-term external debt, overvaluation of Turkish lira, and external adverse shocks; banking crises are primarily caused by excessive money supplies and bank short positions. The empirical findings also indicate that banking crises lead to currency crises, and vice versa.
Journal: Emerging Markets Finance and Trade
Pages: 123-135
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2016.1105683
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1105683
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:123-135




Template-Type: ReDIF-Article 1.0
Author-Name: Cécile Bastidon
Author-X-Name-First: Cécile
Author-X-Name-Last: Bastidon
Author-Name: Nicolas Huchet
Author-X-Name-First: Nicolas
Author-X-Name-Last: Huchet
Author-Name: Yusuf Kocoglu
Author-X-Name-First: Yusuf
Author-X-Name-Last: Kocoglu
Title: Unconventional Monetary Policy in the Eurozone: A Lack of Forward Guidance?
Abstract: 
 From July to December 2011, the three-month EURIBOR-OIS and EURIBOR-Repo spreads quadrupled and reached 100 basis points due to a stabilization of the EURIBOR and a decrease in the overnight index swap (OIS) and Repo. Using a specific monetary policy announcements and financial indicators database, we find that the European Central Bank’s (ECB’s) unconventional measures did not systematically have a calming effect: Asset buyout announcements decreased market strains, whereas interest rates and liquidity provision announcements did not. Moreover, liquidity provision seems to have a stressing effect. Our findings are consistent with the theoretical underpinnings according to which forward guidance crucially determines the effectiveness of unconventional monetary policies.
Journal: Emerging Markets Finance and Trade
Pages: 76-97
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2016.1105684
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1105684
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:76-97




Template-Type: ReDIF-Article 1.0
Author-Name: Bassem Kamar
Author-X-Name-First: Bassem
Author-X-Name-Last: Kamar
Author-Name: Damyana Bakardzhieva
Author-X-Name-First: Damyana
Author-X-Name-Last: Bakardzhieva
Title: Beyond the Optimistic Curse: A New Multiscenario Approach to Debt Sustainability Assessment
Abstract: 
 While a careful and accurate debt sustainability assessment (DSA) is crucial for an efficient macroeconomic management, the most widely used framework introduced by the International Monetary Fund (IMF) suffers from several drawbacks that render its results overoptimistic and misleading. In this article, we correct the methodology by demonstrating how policy makers can develop country-specific “intermediate” forecasts of the determinants of debt dynamics, in addition to coherent “optimistic” and “pessimistic” scenarios. Our application to the case of Egypt illustrates that the debt-to-GDP ratio could increase to more than 100 percent by 2015, in contrast with the 61 percent projected by the IMF in 2010.
Journal: Emerging Markets Finance and Trade
Pages: 110-122
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2016.1105686
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1105686
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:110-122




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Faruk Aysan
Author-X-Name-First: Ahmet Faruk
Author-X-Name-Last: Aysan
Author-Name: Huseyin Ozturk
Author-X-Name-First: Huseyin
Author-X-Name-Last: Ozturk
Author-Name: Ali Yavuz Polat
Author-X-Name-First: Ali Yavuz
Author-X-Name-Last: Polat
Author-Name: Burak Saltoğlu
Author-X-Name-First: Burak
Author-X-Name-Last: Saltoğlu
Title: Macroeconomic Drivers of Loan Quality in Turkey
Abstract: 
 We analyze the drivers of nonperforming loans in the Turkish banking system after the 2000–01 Turkish banking crisis. By constructing a vector autoregression model, we perform dynamic out-of-sample forecasts, which yield quite accurate results compared to the actual data. Since forecasting is a very crucial tool for both policy makers and market players, these results are some of the main strengths and contributions of this study. This article shows various patterns between the economic and financial indicators and the nonperforming loans. One important message obtained from the results is that policy makers should be concerned about the status of the economy and the market expectations to maintain stability in the banking system.
Journal: Emerging Markets Finance and Trade
Pages: 98-109
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2016.1105688
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1105688
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:98-109




Template-Type: ReDIF-Article 1.0
Author-Name: Hyunchul Lee
Author-X-Name-First: Hyunchul
Author-X-Name-Last: Lee
Author-Name: Kyung-In Park
Author-X-Name-First: Kyung-In
Author-X-Name-Last: Park
Title: Market Valuation Effect of Foreign Asset Divestitures in an Emerging Economy: Korean Evidence
Abstract: 
 We find evidence that foreign asset divestitures announced by Korean listed firms lead to a decrement in firm value. Interestingly the divestiture announcements by firms with a large proportion of institutional investors, who hold advanced professionalism in stock investments, contribute to an increment in firm value, but ones by firms with a large proportion of individual investors lead to a decrement in it. Unlike the case of firms in advanced countries, our distinctive finding that the divestiture announcements produce a decrement in firm value around the announcement day sheds new lights on market valuation effects of foreign asset divestitures of firms in other emerging economies.
Journal: Emerging Markets Finance and Trade
Pages: 136-153
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2014.998533
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998533
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:136-153




Template-Type: ReDIF-Article 1.0
Author-Name: Tomislav Globan
Author-X-Name-First: Tomislav
Author-X-Name-Last: Globan
Author-Name: Vladimir Arčabić
Author-X-Name-First: Vladimir
Author-X-Name-Last: Arčabić
Author-Name: Petar Sorić
Author-X-Name-First: Petar
Author-X-Name-Last: Sorić
Title: Inflation in New EU Member States: A Domestically or Externally Driven Phenomenon?
Abstract: 
 This article empirically analyzes the domestic and external inflation determinants for eight non-eurozone new EU member states (NMS), using a structural vector autoregression model. Results indicate that foreign shocks are a major factor in explaining inflation dynamics in the medium run, while the short-run inflation dynamics are mainly influenced by domestic shocks. Moreover, the importance of the foreign inflation component has had a rising trend in the precrisis period in all NMS and mostly coincided with their accession to the EU. This trend ended with the onset of the global financial crisis. The study implicates the need to augment the classical Taylor rule with foreign factors in the case of small open economies.
Journal: Emerging Markets Finance and Trade
Pages: 154-168
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2014.998547
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998547
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:154-168




Template-Type: ReDIF-Article 1.0
Author-Name: Yong Ma
Author-X-Name-First: Yong
Author-X-Name-Last: Ma
Title: Financial Openness, Financial Frictions, and Macroeconomic Fluctuations in Emerging Market Economies
Abstract: 
 This article develops an open economy DSGE model which takes into account the effects of financial openness and the associated financial frictions on macroeconomic fluctuations by introducing a modified version of interest parity. Evidence from the Chinese economy shows that the model provides a reasonable description of China’s financial openness and financial frictions during the sample period. Further evidence from comparative analysis shows that in most cases an increase in financial openness, usually accompanied by a decrease in financial frictions, leads to flatter volatility patterns with respect to domestic shocks but sharper volatility patterns in the presence of foreign shocks.
Journal: Emerging Markets Finance and Trade
Pages: 169-187
Issue: 1
Volume: 52
Year: 2016
Month: 1
X-DOI: 10.1080/1540496X.2014.998549
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998549
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:1:p:169-187




Template-Type: ReDIF-Article 1.0
Author-Name: Hyung-Deok Shin
Author-X-Name-First: Hyung-Deok
Author-X-Name-Last: Shin
Author-Name: Nam-Ryoung Lee
Author-X-Name-First: Nam-Ryoung
Author-X-Name-Last: Lee
Author-Name: Ji Hyon Park
Author-X-Name-First: Ji Hyon
Author-X-Name-Last: Park
Title: Differential Effects of Strong Corporate Governance on Both Professional and Voluntary Corporate Social Responsibility Activities of the Firm
Abstract: 
 Corporate social responsibility (CSR) has been of interest in the past decade, but prior studies have not investigated the relationship between strong corporate governance and types of CSR activities. This study introduces the concept of professional CSR activities (which means CSR activities pursued in a formal organizational structure over a long period) and voluntary CSR activities (which means CSR activities pursued tentatively and individually) and how strong corporate governance has differential effects on the two types of CSR activities. Our empirical results show that the stronger the corporate governance is, the more professional CSR activities are encouraged.
Journal: Emerging Markets Finance and Trade
Pages: S2-S10
Issue: S4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2014.1013860
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1013860
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S4:p:S2-S10




Template-Type: ReDIF-Article 1.0
Author-Name: Hongshik Lee
Author-X-Name-First: Hongshik
Author-X-Name-Last: Lee
Author-Name: Soonhyung Sim
Author-X-Name-First: Soonhyung
Author-X-Name-Last: Sim
Title: The Role of Parent-Firm Characteristics in Affiliate Activities in South Korean Foreign Direct Investment
Abstract: 
 We examine the role of parent-firm characteristics in affiliate activities, including local sales, exports to Korea, and exports to third countries. We find that parent-firm characteristics apparently affect the selling behaviors of affiliates. First, affiliate local sales increase with higher research and development (R&amp;D) intensity and capital intensity but with lower parent wages. Affiliate exports to Korea decrease with higher capital intensity and lower wages, and affiliate exports to third countries rise with higher R&amp;D intensity. We also analyze the extent to which affiliate activities are influenced by country and industry characteristics, and the results coincide with those of conventional motivations for foreign direct investment (FDI).
Journal: Emerging Markets Finance and Trade
Pages: S11-S22
Issue: S4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1026711
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026711
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Template-Type: ReDIF-Article 1.0
Author-Name: Qichun He
Author-X-Name-First: Qichun
Author-X-Name-Last: He
Title: Quality-Adjusted Agricultural Land Abundance Curse in Economic Development: Evidence from Postreform Chinese Panel Data
Abstract: 
 China’s family responsibility system, introduced in 1979, resulted in equal distribution in land, allowing identification of how land abundance affects development. We measure land abundance as quality-adjusted farmland per capita. We find robust evidence that higher quality-adjusted farmland per capita has a significant negative effect on growth, even after controlling for land quality and population density. Therefore, quality-adjusted agricultural land abundance confers a type of “resource curse,” which elucidates an important causal determinant of the contemporary substantial differences in the standard of living across Chinese provinces.
Journal: Emerging Markets Finance and Trade
Pages: S23-S39
Issue: S4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1026715
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026715
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S4:p:S23-S39




Template-Type: ReDIF-Article 1.0
Author-Name: Diana Abu-Ghunmi
Author-X-Name-First: Diana
Author-X-Name-Last: Abu-Ghunmi
Author-Name: Adel Bino
Author-X-Name-First: Adel
Author-X-Name-Last: Bino
Author-Name: Mohammad Tayeh
Author-X-Name-First: Mohammad
Author-X-Name-Last: Tayeh
Title: Idiosyncratic Risk and Corporate Governance: Evidence from Jordan
Abstract: 
 This article offers evidence in support of the hypothesis that when investors have weak protection, small investors can suffer expropriation by large shareholders. In this kind of situation, a stock’s idiosyncratic risk is found to be negatively related to ownership concentration, which indicates that the cost of controlling ownership may outweigh its benefits. This is consistent with the view that minority investors have less incentive to invest in companies with weak protection for investors. When this is accompanied by low-quality information disclosed to the public, private information is not likely to be reflected in stock prices, resulting in lower idiosyncratic risk.
Journal: Emerging Markets Finance and Trade
Pages: S40-S50
Issue: S4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1026717
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026717
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S4:p:S40-S50




Template-Type: ReDIF-Article 1.0
Author-Name: Hsin-Hung Chen
Author-X-Name-First: Hsin-Hung
Author-X-Name-Last: Chen
Author-Name: Kuang-Ping Ku
Author-X-Name-First: Kuang-Ping
Author-X-Name-Last: Ku
Author-Name: Hsiu-Yu Lee
Author-X-Name-First: Hsiu-Yu
Author-X-Name-Last: Lee
Title: Constructing a Multifactor Model for the Shanghai Stock Exchange
Abstract: 
 We examine the validity of five factor models for explaining the time-series and cross-sectional variations in stock returns in the Shanghai Stock Exchange. The factor models include four models proposed by previous literature. Moreover, we propose a four-factor model (comprising market, size, book-to-market, and sales-to-price factors) to explain variations of stock returns in the Shanghai Stock Exchange. The results show that the Shanghai stock market exhibits size, book-to-market, and sales-to-price effects. Both the adjusted coefficient of determination and regression model intercepts indicate that the proposed four-factor model explains variations of stock returns in the Shanghai Stock Exchange more effectively in comparison with other multifactor models.
Journal: Emerging Markets Finance and Trade
Pages: S51-S67
Issue: S4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1026720
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026720
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S4:p:S51-S67




Template-Type: ReDIF-Article 1.0
Author-Name: Sei-Wan Kim
Author-X-Name-First: Sei-Wan
Author-X-Name-Last: Kim
Author-Name: Young-Min Kim
Author-X-Name-First: Young-Min
Author-X-Name-Last: Kim
Author-Name: Moon-Jung Choi
Author-X-Name-First: Moon-Jung
Author-X-Name-Last: Choi
Title: Asia-Pacific Stock Market Integration: New Evidence by Incorporating Regime Changes
Abstract: 
 This work provides new evidence of Asia-Pacific stock market integration by incorporating the regime changes of each stock market through the smooth transition autoregressive (STAR) model. According to empirical results, most Asia-Pacific stock market returns follow STAR dynamics to a significant degree with more rapid and frequent regime changes of a shorter nature compared with G7 markets. A series of STAR-based Granger causality tests reveal evidence of stronger equity market integration compared with linear Granger causality tests. We also find that Asia-Pacific stock markets are integrated in different levels. Finally, we provide evidence that in the early twenty-first century the influence of China and the United States on Asia-Pacific stock markets has been maintained while that of Japan has been weakened.
Journal: Emerging Markets Finance and Trade
Pages: S68-S88
Issue: S4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1026726
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026726
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S4:p:S68-S88




Template-Type: ReDIF-Article 1.0
Author-Name: Ping Yu
Author-X-Name-First: Ping
Author-X-Name-Last: Yu
Author-Name: On Kit Tam
Author-X-Name-First: On Kit
Author-X-Name-Last: Tam
Author-Name: Jing Zhou
Author-X-Name-First: Jing
Author-X-Name-Last: Zhou
Title: Does Corporate Governance Matter in the Contractual Form of Fund Management Companies in China?
Abstract: 
 Operating under a regulatory environment with weak enforcement of investor protection, the contractual form of fund management companies (FMCs) in China’s emerging fund industry presents some complex governance issues in addition to the conventional agency problems of modern public corporations. Using 288 firm-year observations covering more than 98 percent of FMCs in China, this article presents the first systematic study on whether the quality of corporate governance mechanisms affects the performance of the contractual form of FMCs. Our results suggest that FMCs with good corporate governance do matter in generating favorable performance for fund investors in China.
Journal: Emerging Markets Finance and Trade
Pages: S89-S103
Issue: S4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1026736
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026736
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S4:p:S89-S103




Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Finance, Development, and Corporate Governance in Emerging Economies
Journal: Emerging Markets Finance and Trade
Pages: S1-S1
Issue: S4
Volume: 51
Year: 2015
Month: 7
X-DOI: 10.1080/1540496X.2015.1060078
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1060078
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S4:p:S1-S1




Template-Type: ReDIF-Article 1.0
Author-Name: Máximo Camacho
Author-X-Name-First: Máximo
Author-X-Name-Last: Camacho
Author-Name: Gonzalo Palmieri
Author-X-Name-First: Gonzalo
Author-X-Name-Last: Palmieri
Title: Latin American Cycles: Has Anything Changed After the Great Recession?
Abstract: 
 This paper analyzes the evolution of growth cycles and business cycles in Latin America from 1980 to 2013 by using monthly industrial production. Focusing on both synchronization and other cyclical features, we find evidence of significant cyclical links between the countries of the region, which seem to be highly integrated in this period. Notably, we find that the Great Recession did not lead to any significant impact on the preexisting Latin American cyclical linkages.
Journal: Emerging Markets Finance and Trade
Pages: 1170-1183
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1163259
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1163259
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1170-1183




Template-Type: ReDIF-Article 1.0
Author-Name: Cem Çebi
Author-X-Name-First: Cem
Author-X-Name-Last: Çebi
Title: The Government Spending Multiplier in Turkey
Abstract: 
 This study aims to measure the size of the government spending multiplier in Turkey for post-2001 financial crisis period within a structural VAR framework. The analysis demonstrates that a positive shock to government spending tends to increase output, tax, and real interest rate on impact and the size of the fiscal multiplier is relatively large at first few quarters. The fiscal multiplier reaches a peak value of 1.5 at second quarter and then starts to diminish. Furthermore, investigating the effects of the components of government spending reveals the fact that government investment expenditures, rather than consumption expenditures, have a profound impact on output at first few quarters.
Journal: Emerging Markets Finance and Trade
Pages: 1184-1198
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1174685
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1174685
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1184-1198




Template-Type: ReDIF-Article 1.0
Author-Name: Jinho Choi
Author-X-Name-First: Jinho
Author-X-Name-Last: Choi
Author-Name: Joonyoung Hur
Author-X-Name-First: Joonyoung
Author-X-Name-Last: Hur
Author-Name: Manho Kang
Author-X-Name-First: Manho
Author-X-Name-Last: Kang
Title: Dissecting the Effects of Terms of Trade Shocks on the Korean Economy
Abstract: 
 Micro- as well as macro-level analyses on the terms of trade (TOT) for Korea are conducted. We demonstrate that the deteriorated TOT since the mid-1990s are largely attributable to declines in export prices of manufacturing goods and surges in energy import prices. A further investigation using a vector autoregressive (VAR) model identified by sign restrictions on impulse responses suggests that the structural innovation that reduces export prices and increases import prices is the most significant driver of the TOT fluctuations in Korea. Although the shock deteriorates the TOT, it is clearly associated with an expansionary effect on output, which is more pronounced at longer horizons.
Journal: Emerging Markets Finance and Trade
Pages: 1199-1216
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1174686
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1174686
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1199-1216




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Grandes
Author-X-Name-First: Martin
Author-X-Name-Last: Grandes
Author-Name: Demian Tupac Panigo
Author-X-Name-First: Demian Tupac
Author-X-Name-Last: Panigo
Author-Name: Ricardo Aníbal Pasquini
Author-X-Name-First: Ricardo Aníbal
Author-X-Name-Last: Pasquini
Title: Corporate Credit Spreads and the Sovereign Ceiling in Latin America
Abstract: 
 We exploit a panel of 72 US dollar-denominated bonds issued by Latin American publicly listed firms between 1996 and 2004, a period of regional financial crises, to answer the following three questions: (1) Is sovereign risk a statistically and economically significant determinant of the corporate credit spread, controlling for firm- and bond-specific characteristics? (2) If yes, do market participants apply the sovereign ceiling rule adopted by rating agencies in the pricing of our bond market data? And (3) how do market views compare with the rating agencies ceiling policy for each corporate bond? We find strong evidence of an economically and statistically significant effect of sovereign risk on corporate spreads across different panel econometric specifications and bonds. Moreover, markets do not apply the ceiling rule in 77–90% of the bonds we sample and these findings are consistent with rating agencies’ policies toward the latter for about 50% of the firms. These results are robust to the inclusion of firm- and bond-specific variables derived from the structural approach to credit risk and to the business cycle in each country.
Journal: Emerging Markets Finance and Trade
Pages: 1217-1240
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1174853
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1174853
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Template-Type: ReDIF-Article 1.0
Author-Name: Darcy Fuenzalida
Author-X-Name-First: Darcy
Author-X-Name-Last: Fuenzalida
Author-Name: Luis Berggrun
Author-X-Name-First: Luis
Author-X-Name-Last: Berggrun
Author-Name: Samuel Mongrut
Author-X-Name-First: Samuel
Author-X-Name-Last: Mongrut
Title: Illiquidity Premium in the MILA
Abstract: 
 This article analyzes the illiquidity premium in the MILA. Using seven proxies for illiquidity, we find a positive and significant illiquidity premium for our sample. A microstructure bias-free portfolio weighting based on past returns is critical in our finding of an illiquidity premium, which is robust to several methodological changes in our portfolio simulations. We also document that the premium is present only in small and high book-to-market stocks. Nonetheless, when we control for size and distress effects, the difference and significance in risk-adjusted returns between portfolios of high and low illiquidity stocks remains.
Journal: Emerging Markets Finance and Trade
Pages: 1015-1029
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1220858
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1220858
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1015-1029




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Jun-Guo Shi
Author-X-Name-First: Jun-Guo
Author-X-Name-Last: Shi
Author-Name: Yu-Li Huang
Author-X-Name-First: Yu-Li
Author-X-Name-Last: Huang
Title: Credit Ratings and Bank Affiliation to Financial Holding Companies: Effects of Government Ownership and Financial Crisis
Abstract: 
 This study compares credit ratings between FHC affiliated banks and independent banks using Taiwan bank and FHC data. The results show banks that join Insurance- or Security-FHCs obtain better ratings than those that join Bank-FHCs. Second, banks that join FHCs with higher activity diversification can obtain better credit ratings. Third, joining government-owned FHCs enhances bank credit ratings and mitigates bank default risk compared to joining non-government-owned FHCs. Fourth, prior to the financial crisis, banks joining FHCs can obtain better credit ratings and reduce the cost of debt. However, during the financial crisis, rating agencies stopped regarding banks joining privately owned bank-based FHCs as risk diversification and assigning better credit ratings on this basis.
Journal: Emerging Markets Finance and Trade
Pages: 1045-1071
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1255941
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1255941
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1045-1071




Template-Type: ReDIF-Article 1.0
Author-Name: Jifeng Cao
Author-X-Name-First: Jifeng
Author-X-Name-Last: Cao
Author-Name: Yiwen Cui
Author-X-Name-First: Yiwen
Author-X-Name-Last: Cui
Title: An Alternative View on Determinants of the Effective Tax Rate: Evidence from Chinese Listed Companies
Abstract: 
 This article proposes a new model for determining the effective tax rate (ETR), which incorporates the accounting-tax conformity theory and identifies ETR determinant variables to fit the Chinese taxation context. The results show that the ETR is statistically significantly associated with preferential tax rates, investment gains, nonoperating expenses, and provisions for impaired assets. The accounting-tax difference ETR determinant variables provide more consistent results than previous typical ETR determinants, such as size, return on assets, leverage, and capital intensity.
Journal: Emerging Markets Finance and Trade
Pages: 1001-1014
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1256113
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1256113
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1001-1014




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyu Chen
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Chen
Author-Name: Xiaohao Ji
Author-X-Name-First: Xiaohao
Author-X-Name-Last: Ji
Title: The Effect of House Price on Stock Market Participation in China: Evidence from the CHFS Microdata
Abstract: 
 This is an empirical study on the effect of house price on stock market participation and its depths based on unique China Household Finance Survey (CHFS) data in 2011 and 2013 including 36,213 sample households. We mainly found that, with an increase of one thousand RMB per square meter in macrohouse price, the probability to participate in the stock market will increase by 5.4% before controlling for wealth effect and 2.84% afterwards, indicating the existence of wealth effect. The participation depths of the stock-total asset ratio are expected to decrease by 0.23%, and absolute stock asset is observed to decrease by 5.8 thousand RMB in response to one thousand RMB increase of per square meter house price. The effect of house price on participation decision is also related to housing area, and the negative effect of house price on stock market participation depths gets more intense with the increase of the stock-total asset ratio.
Journal: Emerging Markets Finance and Trade
Pages: 1030-1044
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1263794
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1263794
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1030-1044




Template-Type: ReDIF-Article 1.0
Author-Name: Yujing Gong
Author-X-Name-First: Yujing
Author-X-Name-Last: Gong
Title: Does the Momentum Strategy Work at the Industry Level? Evidence from the Chinese Stock Market
Abstract: 
 This article examines the effectiveness of momentum strategy at the industry level in the Chinese stock market. We find that the intermediate-horizon momentum effect is stronger in industries with higher competition. This effect is consistent with the hypothesis that information contained in firms from highly competitive industries is vague and hence leaves more space for behavioral biases, which leads to the momentum effect. Alternatively, the measure of the Herfindahl–Hirschman index potentially captures the size effect in explaining this phenomenon. Moreover, concentrated industries experience a pronounced lead-lag effect of big firms on small firms, which is a potential explanation for the contrarian strategy. We do find that the short-horizon contrarian effect is pronounced in highly concentrated industries.
Journal: Emerging Markets Finance and Trade
Pages: 1072-1092
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1264248
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1264248
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1072-1092




Template-Type: ReDIF-Article 1.0
Author-Name: Yue Hua
Author-X-Name-First: Yue
Author-X-Name-Last: Hua
Author-Name: Zhujia Yin
Author-X-Name-First: Zhujia
Author-X-Name-Last: Yin
Title: Internal Migration Decision and Rural Income Inequality: A Counterfactual-Based Gini Decomposition Analysis
Abstract: 
 We examine the decision between internal migration and home production for Chinese rural households and its impact on rural income distribution. By constructing counterfactual scenarios under which households are allowed to switch freely between internal migration and home production, we find that the migrant households in the studied region could have earned higher simulated income if they choose to work in local sectors, with potential sample selection bias corrected by the two-step Heckit method. Based on the counterfactual results, we conduct a Gini decomposition analysis and illustrate that rural income inequality would also be reduced if migrants choose to work locally. The findings are compatible with the fact that a nontrivial portion of the internal migration in China tends to be involuntary.
Journal: Emerging Markets Finance and Trade
Pages: 1093-1106
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1275557
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1275557
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1093-1106




Template-Type: ReDIF-Article 1.0
Author-Name: Fangfei Ding
Author-X-Name-First: Fangfei
Author-X-Name-Last: Ding
Author-Name: Wenting Luo
Author-X-Name-First: Wenting
Author-X-Name-Last: Luo
Author-Name: Xiaolin Hao
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Hao
Author-Name: Lei Zhang
Author-X-Name-First: Lei
Author-X-Name-Last: Zhang
Title: Does IFRS Adoption Increase the Accuracy of Chinese Analysts’ Forecasts?
Abstract: 
 This article investigates the impact of International Financial Reporting Standards (IFRS) adoption on the accuracy of Chinese analysts’ earnings forecasts. We find that after IFRS adoption, the accuracy of Chinese analysts’ forecasts decreases rather than increasing as they do in developed countries documented by the extant literature. Further investigation finds that this decrease is associated with a fair value measurement of financial assets held for trading. Our finding provides empirical evidence supporting the argument that the effectiveness of IFRS adoption could be negative in a developing country depending on its setting and fair value measurement brought about by IFRS could contribute to the negative effect in this setting.
Journal: Emerging Markets Finance and Trade
Pages: 1107-1121
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1276826
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1276826
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Template-Type: ReDIF-Article 1.0
Author-Name: Jie Gao
Author-X-Name-First: Jie
Author-X-Name-Last: Gao
Author-Name: Jiancai Wang
Author-X-Name-First: Jiancai
Author-X-Name-Last: Wang
Title: Is Working Capital Information Useful for Financial Analysts? Evidence from China
Abstract: 
 Financial analysts are important information intermediaries in the capital market. This study investigates whether information about working capital management is useful for financial analysts of Chinese firms. With a sample of listed companies from 2004 to 2014, we find that the efficiency of working capital management is positively associated with the number of analyst following and analyst forecast accuracy, and negatively associated with analyst forecast dispersion. Specifically, when the cash conversion cycle becomes longer, number of analyst following and the accuracy of their mean forecasts decrease, while the forecast dispersion increases. The findings of this study indicate a potential mechanism through which information about working capital management is incorporated in stock price in emerging markets such as China.
Journal: Emerging Markets Finance and Trade
Pages: 1135-1151
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1278166
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1278166
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:5:p:1135-1151




Template-Type: ReDIF-Article 1.0
Author-Name: Hongxun Liu
Author-X-Name-First: Hongxun
Author-X-Name-Last: Liu
Author-Name: Zhi Li
Author-X-Name-First: Zhi
Author-X-Name-Last: Li
Title: Carbon Cap-and-Trade in China: A Comprehensive Framework
Abstract: 
 This article proposes a comprehensive framework to explore a possible carbon cap-and-trade scheme in China. By applying the case of China, our empirical results present the demand side and supply side of carbon-emission permits in the market and several other significant findings: (i) carbon dioxide (CO2) marginal abatement cost varies a lot among different regions; (ii) in total, CO2 emissions could have been reduced by 5.14 billion tons if all the provinces had achieved their anticipated environmental performance during 1997–2014; (iii) the equilibrium price of CO2 trading is 241 RMB/ton, irrelevant to the original allocation of allowances.
Journal: Emerging Markets Finance and Trade
Pages: 1152-1169
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2016.1278530
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1278530
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Template-Type: ReDIF-Article 1.0
Author-Name: Ding Li
Author-X-Name-First: Ding
Author-X-Name-Last: Li
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Author-Name: Shuang Ma
Author-X-Name-First: Shuang
Author-X-Name-Last: Ma
Title: Would Smog Lead to Outflow of Labor Force? Empirical Evidence from China
Abstract: 
 This study examines the impact of air pollution on labor outflow and labor migration from the perspective of individual and regional heterogeneity in China. The empirical evidence shows that air pollution has a significant impact on labor outflow and labor with higher education levels, of male gender, and belonging to a younger cohort are more sensitive toward air pollution and hence more inclined to migrate. The labor force from cities and rural areas, as well as from eastern and central China, tends to migrate due to the negative impact of air pollution. The labor force in areas of north of the Huai River is more likely to migrate due to the severe air pollution caused mainly by heating systems in the winter.
Journal: Emerging Markets Finance and Trade
Pages: 1122-1134
Issue: 5
Volume: 53
Year: 2017
Month: 5
X-DOI: 10.1080/1540496X.2017.1282858
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1282858
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Template-Type: ReDIF-Article 1.0
Author-Name: Ma Yonghong
Author-X-Name-First: Ma
Author-X-Name-Last: Yonghong
Author-Name: Wu Zhiyong
Author-X-Name-First: Wu
Author-X-Name-Last: Zhiyong
Author-Name: Ai Mingye
Author-X-Name-First: Ai
Author-X-Name-Last: Mingye
Author-Name: Wang Wei
Author-X-Name-First: Wang
Author-X-Name-Last: Wei
Title: The Construction and Application of a New Exchange Rate Forecast Model Combining ARIMA with a Chaotic BP Algorithm
Abstract: 
 This article introduces a new model that combines an ARIMA with a chaotic BP (Backforward Propagation Neural Network) algorithm for exchange rate forecasting purposes, which is based on sample data collected from January 4, 2010, to October 20, 2011. The forecast of the exchange rate trend is then provided for the subsequent twenty-five days. Other models are also constructed, such as the ARIMA, BP, ARIMA, and BP algorithms, in order to evaluate the forecast accuracy. Based on our results, the combination of an ARIMA and a chaotic BP algorithm outperforms all other models in terms of the statistical accuracy of short-term forecasts.
Journal: Emerging Markets Finance and Trade
Pages: 1481-1495
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2015.1008894
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1008894
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Template-Type: ReDIF-Article 1.0
Author-Name: Hosung Jung
Author-X-Name-First: Hosung
Author-X-Name-Last: Jung
Author-Name: Dongcheol Kim
Author-X-Name-First: Dongcheol
Author-X-Name-Last: Kim
Title: Macro Liquidity Risk, Money Growth, and the Cross-Section of Stock Returns: The Case of Korea
Abstract: 
 According to the homogeneity of money holding purpose, we decompose the broad money M2 into an underlying and a non-underlying part and propose innovations in future non-underlying M2 growth as a proxy for macro liquidity. In both the cross-sectional regression tests and the GMM tests, we find that risk related to innovations in future non-underlying M2 growth is strongly significantly priced in Korea, after controlling for the well-known risk factors and other macroeconomic variables. Meanwhile, risk related to innovations in future aggregate or underlying M2 growth is insignificantly priced. These results indicate that non-underlying M2 growth more directly affects macro liquidity than does aggregate or underlying M2 growth.
Journal: Emerging Markets Finance and Trade
Pages: 1438-1454
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2015.1046767
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046767
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Template-Type: ReDIF-Article 1.0
Author-Name: Hoshik Shim
Author-X-Name-First: Hoshik
Author-X-Name-Last: Shim
Author-Name: Hyungjin Cho
Author-X-Name-First: Hyungjin
Author-X-Name-Last: Cho
Author-Name: Woo-Jong Lee
Author-X-Name-First: Woo-Jong
Author-X-Name-Last: Lee
Title: The Effectiveness of Regulation Fair Disclosure: Evidence from an Emerging Market
Abstract: 
 The effect of corporate disclosure in emerging markets is not clearly predictable because of the prevalent information leakage prior to disclosure. We empirically examine the effectiveness of Regulation Fair Disclosure (Reg FD) in reducing information asymmetry among equity traders in an emerging market. Specifically, we test whether fair disclosure activity is negatively related to the probability of informed trading (PIN). Multivariate tests on a sample of listed companies in Korea subject to Reg FD reveal the following: (1) more frequent disclosure under Reg FD is related to lower information asymmetry, and (2) this relation differs across the types of disclosure, with the effect of qualitative disclosures on the PIN being weaker than that of quantitative disclosures. Evidence also indicates that the negative association between fair disclosure activities and information asymmetry is more (less) pronounced for firms with poorer (better) information environments where selective information leakage is more (less) likely. The results are robust to sensitivity tests. Our findings have implications for disclosure regulations in emerging markets, given that the existing literature casts doubt on the effectiveness of corporate disclosure in such markets.
Journal: Emerging Markets Finance and Trade
Pages: 1496-1511
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2015.1064392
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1064392
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Template-Type: ReDIF-Article 1.0
Author-Name: Hidenobu Okuda
Author-X-Name-First: Hidenobu
Author-X-Name-Last: Okuda
Author-Name: Daiju Aiba
Author-X-Name-First: Daiju
Author-X-Name-Last: Aiba
Title: Determinants of Operational Efficiency and Total Factor Productivity Change of Major Cambodian Financial Institutions: A Data Envelopment Analysis During 2006–13
Abstract: 
 We examine the determinants of efficiency and the total factor productivity (TFP) change of major financial institutions in Cambodia using data envelopment analysis (DEA). We apply two-stage bootstrapping estimation method to a panel data of twenty-seven financial institutions in the period of 2006–13. The empirical results reveal that the size and ownership structure of financial institutions are significantly correlated with the efficiency and TFP growth of banks. The efficiency of domestic institutions is found to be better than that of their foreign counterpart, and there is no significant difference in TFP growth between domestic and foreign institutions.
Journal: Emerging Markets Finance and Trade
Pages: 1455-1471
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2015.1105630
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1105630
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Template-Type: ReDIF-Article 1.0
Author-Name: Chune Young Chung
Author-X-Name-First: Chune Young
Author-X-Name-Last: Chung
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Title: Estimating the Model for Seasoned Equity Offering Underpricing: Application to the Chinese Financial Market
Abstract: 
 We estimate the binomial probit model to examine the significance of important explanatory variables documented in seasoned equity offering (SEO) underpricing literature using two statistical approaches: maximum likelihood estimation and Bayesian estimation. In particular, our estimation relies on SEO-related data in the Chinese financial market, where the pricing mechanism is less transparent compared to that in the U.S. market. We find that the signs of coefficients for the explanatory variables in each model are not different, but their magnitudes appear to be different. Our finding also shows that estimation results are generally consistent with the results observed in the U.S. market.
Journal: Emerging Markets Finance and Trade
Pages: 1472-1480
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2015.1105631
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1105631
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Template-Type: ReDIF-Article 1.0
Author-Name: Yong Zhao
Author-X-Name-First: Yong
Author-X-Name-Last: Zhao
Author-Name: Lili Wang
Author-X-Name-First: Lili
Author-X-Name-Last: Wang
Author-Name: Yihua Yu
Author-X-Name-First: Yihua
Author-X-Name-Last: Yu
Title: Trade Liberalization and China’s Exports of Renewable Energy Products: Evidence from Product Level Data
Abstract: 
 Using a large panel dataset that covers 116 countries and 62 renewable energy products over the period 2000–2012, this study evaluates the effects of trade liberalization on the export expansion of China’s renewable energy products. The results reveal that trade liberalization plays a crucial role in encouraging the exports of renewable energy products. Specifically, tariff reduction, in general, not only encourages the entry into new export markets, but also induces an increase in the volume of renewable energy products already traded. In addition, the positive effects of trade liberalization are more pronounced for foreign-owned exporters than for state-owned or privately-owned exporters. Also, the ways in which trade liberalization promotes exports of renewable energy products differ by the type, destination or origin of the renewable goods being exported.
Journal: Emerging Markets Finance and Trade
Pages: 1281-1297
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152788
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152788
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1281-1297




Template-Type: ReDIF-Article 1.0
Author-Name: Xu Tang
Author-X-Name-First: Xu
Author-X-Name-Last: Tang
Author-Name: Hongmei Deng
Author-X-Name-First: Hongmei
Author-X-Name-Last: Deng
Author-Name: Baosheng Zhang
Author-X-Name-First: Baosheng
Author-X-Name-Last: Zhang
Author-Name: Simon Snowden
Author-X-Name-First: Simon
Author-X-Name-Last: Snowden
Author-Name: Mikael Höök
Author-X-Name-First: Mikael
Author-X-Name-Last: Höök
Title: Nexus Between Energy Consumption and Economic Growth in China: From the Perspective of Embodied Energy Imports and Exports
Abstract: 
 The nexus between energy consumption and economic growth in China is analyzed from the perspective of embodied energy imports and exports in this article. The research results suggest that China is a net embodied energy exporter and it is the inevitable result of China’s present economic development model. Exporting embodied energy contributes significantly to China’s economic development, and the trade-off costs of employment, trade surplus and government tax for China to reduce embodied energy exports are very high. China is bound by its own policies and unable to radically change its embodied energy exporting position within the foreseeable future.
Journal: Emerging Markets Finance and Trade
Pages: 1298-1304
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152791
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152791
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1298-1304




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaopeng Guo
Author-X-Name-First: Xiaopeng
Author-X-Name-Last: Guo
Author-Name: Xiaodan Guo
Author-X-Name-First: Xiaodan
Author-X-Name-Last: Guo
Title: A Panel Data Analysis of the Relationship Between Air Pollutant Emissions, Economics, and Industrial Structure of China
Abstract: 
 The purpose of this article is to investigate the relationship between China’s industrial structure, economic position, and air quality. The PM2.5 emission is used as the air pollution indicator, the gross regional product (GRP) and the proportion of secondary industry as the local economic indicators, and the power generation and the freight volume as the developmental indicators of important industries. Using the panel data model, this article provided evidence that the GRP has positive effect on the PM2.5 emission and the power generation has a significant impact as well in several cities. But freight volume could not increase the PM2.5 emission significantly in most regions of China.
Journal: Emerging Markets Finance and Trade
Pages: 1315-1324
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152792
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152792
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1315-1324




Template-Type: ReDIF-Article 1.0
Author-Name: Qianting Zhu
Author-X-Name-First: Qianting
Author-X-Name-Last: Zhu
Author-Name: Keran Duan
Author-X-Name-First: Keran
Author-X-Name-Last: Duan
Author-Name: Jing Wu
Author-X-Name-First: Jing
Author-X-Name-Last: Wu
Author-Name: Zheng Wang
Author-X-Name-First: Zheng
Author-X-Name-Last: Wang
Title: Agent-Based Modeling of Global Carbon Trading and Its Policy Implications for China in the Post-Kyoto Era
Abstract: 
 Carbon trading is an important component of global responses to climate change. Using agent-based modeling, this study constructs a global carbon trading model (GCTM), and simulates the effectiveness of the trading mechanism. Results show that: (1) quota allocation is the fundamental premise of carbon trading; (2) under the carbon trading mechanism, the cumulative per capita emissions of developed countries are still much higher than those in developing countries; (3) carbon trading could be an important policy choice to meet China’s future emissions targets; and (4) to maximize incomes in the long run, China can set aside part of current quotas and use them in the future.
Journal: Emerging Markets Finance and Trade
Pages: 1348-1360
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152794
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152794
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1348-1360




Template-Type: ReDIF-Article 1.0
Author-Name: Jiahai Yuan
Author-X-Name-First: Jiahai
Author-X-Name-Last: Yuan
Author-Name: Chunning Na
Author-X-Name-First: Chunning
Author-X-Name-Last: Na
Author-Name: Yan Xu
Author-X-Name-First: Yan
Author-X-Name-Last: Xu
Author-Name: Changhong Zhao
Author-X-Name-First: Changhong
Author-X-Name-Last: Zhao
Title: Feed-In Tariff for Onshore Wind Power in China
Abstract: 
 This article estimated the cost of onshore wind power in China by employing levelized cost of the electricity model. The analytical framework has enough precision for appraising the effectiveness of feed-in tariff (FIT) policy. Results show that the existing FIT policy is attractive to investors, but serious curtailment and turbine quality issues could make wind power unprofitable. Meanwhile, rapid learning-by-doing in turbine price has substantially lowered the cost of wind power and made it competitive with coal power in 2013. Our estimate results indicate that it is necessary and the right time to reform the FIT policy for the newly commissioned wind farms.
Journal: Emerging Markets Finance and Trade
Pages: 1427-1437
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152797
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152797
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1427-1437




Template-Type: ReDIF-Article 1.0
Author-Name: Xingping Zhang
Author-X-Name-First: Xingping
Author-X-Name-Last: Zhang
Author-Name: Rao Rao
Author-X-Name-First: Rao
Author-X-Name-Last: Rao
Title: A Benefit Analysis of Electric Vehicle Battery Swapping and Leasing Modes in China
Abstract: 
 This article discusses three most potential operators in the electric vehicle (EV) market of China, including power companies, battery manufacturers and gasoline enterprises. We propose five commercial modes of battery swapping and leasing service (BSLS) and analyze their benefits. The simulation results indicate that oil companies are the least competitive operators, whereas battery manufacturers are the best. It is unadvisable for operators to acquire batteries via leasing. The sensitivity analysis indicates that the increase in vehicle weight, gasoline price, the quantity of EVs and V2G electricity price will expand operators’ profit respectively, while the increase in discount rate works inversely.
Journal: Emerging Markets Finance and Trade
Pages: 1414-1426
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152798
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152798
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1414-1426




Template-Type: ReDIF-Article 1.0
Author-Name: Mian Yang
Author-X-Name-First: Mian
Author-X-Name-Last: Yang
Author-Name: Fuxia Yang
Author-X-Name-First: Fuxia
Author-X-Name-Last: Yang
Title: Energy-Efficiency Policies and Energy Productivity Improvements: Evidence from China’s Manufacturing Industry
Abstract: 
 To examine the effects of China’s energy saving and emissions reduction (ESER) policy implemented during the 11th Five-Year Plan (FYP) on energy efficiency of the manufacturing sector, this article evaluates and compares the environmental-adjusted energy productivity of 15 energy-intensive industries during the 10th and 11th FYPs using the data envelopment analysis (DEA) approach. The results indicate that four of the 15 studied industries had achieved significant energy productivity improvements during the 11th FYP than that in the 10th FYP, which can mainly be attributed to the effective implementations of relevant ESER policies. In contrast, energy productivity of the rest 11 industries acquired relatively minor improvements during the whole decade.
Journal: Emerging Markets Finance and Trade
Pages: 1395-1404
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152800
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152800
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1395-1404




Template-Type: ReDIF-Article 1.0
Author-Name: Xingping Zhang
Author-X-Name-First: Xingping
Author-X-Name-Last: Zhang
Author-Name: Zhengquan Guo
Author-X-Name-First: Zhengquan
Author-X-Name-Last: Guo
Author-Name: Yuhua Zheng
Author-X-Name-First: Yuhua
Author-X-Name-Last: Zheng
Author-Name: Jinchen Zhu
Author-X-Name-First: Jinchen
Author-X-Name-Last: Zhu
Author-Name: Jing Yang
Author-X-Name-First: Jing
Author-X-Name-Last: Yang
Title: A CGE Analysis of the Impacts of a Carbon Tax on Provincial Economy in China
Abstract: 
 This article conducts a computable general equilibrium (CGE) model to investigate the impacts of a carbon tax on economy at province levels in China since China features significantly differentiated development modes across regions. Three representative provinces including Henan, Fujian, and Chongqing are selected as the sample. The empirical results indicate that carbon tax is an efficient policy to reduce carbon emissions accompanied with negative impact on provincial economy. To cushion the negative impacts of carbon tax, a moderate carbon tax rate and carbon tax recycling policy are recommended according to the simulation results.
Journal: Emerging Markets Finance and Trade
Pages: 1372-1384
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152801
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152801
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1372-1384




Template-Type: ReDIF-Article 1.0
Author-Name: Dong Sun
Author-X-Name-First: Dong
Author-X-Name-Last: Sun
Author-Name: Jingqi Sun
Author-X-Name-First: Jingqi
Author-X-Name-Last: Sun
Author-Name: Xingping Zhang
Author-X-Name-First: Xingping
Author-X-Name-Last: Zhang
Author-Name: Qingyou Yan
Author-X-Name-First: Qingyou
Author-X-Name-Last: Yan
Author-Name: Qianru Wei
Author-X-Name-First: Qianru
Author-X-Name-Last: Wei
Author-Name: Yun Zhou
Author-X-Name-First: Yun
Author-X-Name-Last: Zhou
Title: Carbon Markets in China: Development and Challenges
Abstract: 
 China is attempting to initiate its own carbon market—an important market-based policy instrument which would determine the fate of global climate policy as the largest emitter of carbon dioxide across the world. This article looks at carbon trading development so far and examines the key challenges ahead in China. These past experiences—whatever from international CDM practice, or SO2 emission trading and a domestic voluntary carbon market—have paved the solid way to build the existing ETS pilots similar to European Union Emissions Trading System (EU ETS). The investigation into China’s ETS pilots discovered some important and urgent issues such as the capsetting and deepening energy market reform.
Journal: Emerging Markets Finance and Trade
Pages: 1361-1371
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152811
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152811
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1361-1371




Template-Type: ReDIF-Article 1.0
Author-Name: Jin Guo
Author-X-Name-First: Jin
Author-X-Name-Last: Guo
Author-Name: Xinye Zheng
Author-X-Name-First: Xinye
Author-X-Name-Last: Zheng
Author-Name: Feng Song
Author-X-Name-First: Feng
Author-X-Name-Last: Song
Title: The Resource Curse and Its Transmission Channels: An Empirical Investigation of Chinese Cities’ Panel Data
Abstract: 
 This article re-examines the resource curse hypothesis on the city level in China using data from 273 cities during the period 2001–2010. The system GMM dynamic panel estimator is applied to address the potential endogeneity problems. Our empirical analysis suggests that natural resource dependence has a small and insignificant impact on economic output when we control for the negative indirect impacts. If the indirect impacts of the transmission channels through which the resources hinder economic output are included, the total effect of natural resource dependence on economic output increases to 10 times the direct effect. Moreover, the capital investment channel is shown to be the most important of these transmission channels.
Journal: Emerging Markets Finance and Trade
Pages: 1325-1334
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152812
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152812
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1325-1334




Template-Type: ReDIF-Article 1.0
Author-Name: Rui Xie
Author-X-Name-First: Rui
Author-X-Name-Last: Xie
Author-Name: Guomei Zhao
Author-X-Name-First: Guomei
Author-X-Name-Last: Zhao
Author-Name: Bangzhu Zhu
Author-X-Name-First: Bangzhu
Author-X-Name-Last: Zhu
Author-Name: Mingyong Lai
Author-X-Name-First: Mingyong
Author-X-Name-Last: Lai
Title: Regional Transfer of Haze Pollutants Embodied in China’s Foreign Trade and Factors Affecting It: A GMRIO-Based Empirical Analysis
Abstract: 
 The paper estimated the balance of emissions embodied in bilateral trade and the pollution terms of trade between China and six major world economies, including USA, Japan, and others, from 1995 to 2009, and then discussed the factors affecting them using the Structural Decomposition Analysis method. We find that, with the exception of Taiwan, the balances of the haze pollutants emissions embodied in bilateral trades were negative between China and the each of the rest five, and this was mainly resulted from the China export scale effect and intermediate input structural effects. We also find that China has become the “Pollution Refuge” for the economies like USA and Japan.
Journal: Emerging Markets Finance and Trade
Pages: 1335-1347
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152814
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152814
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1335-1347




Template-Type: ReDIF-Article 1.0
Author-Name: Kai Li
Author-X-Name-First: Kai
Author-X-Name-Last: Li
Author-Name: Shaozhou Qi
Author-X-Name-First: Shaozhou
Author-X-Name-Last: Qi
Title: Does FDI Increase Industrial Energy Consumption of China? Based on the Empirical Analysis of Chinese Provinces Industrial Panel Data
Abstract: 
 The article builds the simultaneous equations model of the total effect of FDI influencing China’s industrial energy consumption, Chinese provinces industrial panel data as the study sample, uses 2SLS and GMM methods to empirically estimate the equations model, and elastic analysis to calculate the magnitude and direction of the different effects at the path of FDI. The results show that the total effect of FDI influencing China’s industrial energy consumption is negative, the entry of foreign capital increases by 1%, the total effect is to make China’s industrial energy consumption increase by 0.19%, the negative FDI scale effect (0.15%) and FDI composition effect (0.21%) overwhelm the positive FDI technique effect (0.17%).
Journal: Emerging Markets Finance and Trade
Pages: 1305-1314
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152815
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152815
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1305-1314




Template-Type: ReDIF-Article 1.0
Author-Name: Changsheng Li
Author-X-Name-First: Changsheng
Author-X-Name-Last: Li
Author-Name: Ying Fan
Author-X-Name-First: Ying
Author-X-Name-Last: Fan
Author-Name: Lei Zhu
Author-X-Name-First: Lei
Author-X-Name-Last: Zhu
Title: The Emission Taxes Refunding Scheme Based on Output Subsidies with an Exogenous Abatement Target
Abstract: 
 This article investigates two output-based emission tax-refunding schemes with an exogenous abatement target by employing game models. For flow emissions, whether the refunding scheme could achieve the first-best outcome depended on the exogenous abatement target, and the tax-related budget constraint is binding under certain conditions. For stock emissions, the refunding scheme can only achieve the second-best outcome and the tax-related budget constraint is not binding anymore.
Journal: Emerging Markets Finance and Trade
Pages: 1385-1394
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152826
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152826
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1385-1394




Template-Type: ReDIF-Article 1.0
Author-Name: Jiahai Yuan
Author-X-Name-First: Jiahai
Author-X-Name-Last: Yuan
Title: Sustainable Energy Policy in China: Economic Issues and Policy Challenges
Journal: Emerging Markets Finance and Trade
Pages: 1279-1280
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1152828
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152828
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1279-1280




Template-Type: ReDIF-Article 1.0
Author-Name: Hui Hu
Author-X-Name-First: Hui
Author-X-Name-Last: Hu
Author-Name: Xiang Li
Author-X-Name-First: Xiang
Author-X-Name-Last: Li
Author-Name: Fuxia Yang
Author-X-Name-First: Fuxia
Author-X-Name-Last: Yang
Author-Name: Jesmin Islam
Author-X-Name-First: Jesmin
Author-X-Name-Last: Islam
Title: Total Factor Productivity and Energy Intensity: An Empirical Study of China’s Cement Industry
Abstract: 
 China is the largest cement producer and consumer in the world. The cement industry’s rapid growth has led to a large demand of energy. This study reviews China’s cement industry in terms of energy intensity and examines the effects of technological progress on energy intensity. It also discusses the feasibility of achieving China’s energy reduction targets. We employ the Granger causality test and find that the total factor productivity or technological progress causes the energy intensity of the cement industry. Impulse responses analysis also proves that in the long run the technological change contributes to the decline in energy intensity of cement production.
Journal: Emerging Markets Finance and Trade
Pages: 1405-1413
Issue: 6
Volume: 52
Year: 2016
Month: 6
X-DOI: 10.1080/1540496X.2016.1168119
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1168119
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1405-1413




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Zhang
Author-X-Name-First: Jun
Author-X-Name-Last: Zhang
Title: Innovation, Entrepreneurship, and Economic Development in the Context of China&#x2019;s Institutional Change
Journal: Emerging Markets Finance and Trade
Pages: 475-476
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2019.1543823
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1543823
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:475-476




Template-Type: ReDIF-Article 1.0
Author-Name: Hongsheng Fang
Author-X-Name-First: Hongsheng
Author-X-Name-Last: Fang
Author-Name: Linhui Yu
Author-X-Name-First: Linhui
Author-X-Name-Last: Yu
Author-Name: Yuanshuang Hong
Author-X-Name-First: Yuanshuang
Author-X-Name-Last: Hong
Author-Name: Jun Zhang
Author-X-Name-First: Jun
Author-X-Name-Last: Zhang
Title: Tax Burden, Regulations and Development of Service Sector in China
Abstract: 
 This paper investigates how to exert extensive effort to implement &#x201C;streamlining administration and tax cuts&#x201D; reform in the service sector in China. In our conceptual framework, four hypotheses are proposed. One general hypothesis is that tax burden and regulations have negative effects on the development of the service sector, and the other three hypotheses explore the effects vary by economic development level, economic cycle and industry categories. Using province-level panel data set over the period 2004&#x2013;2013, we find strong evidence that four hypotheses are confirmed. This suggests that &#x201C;streamlining administration and tax cuts&#x201D; reform should be implemented according to different conditions in terms of locality, time and industries.
Journal: Emerging Markets Finance and Trade
Pages: 477-495
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1469001
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1469001
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:477-495




Template-Type: ReDIF-Article 1.0
Author-Name: Yanren Zhang
Author-X-Name-First: Yanren
Author-X-Name-Last: Zhang
Title: Family Talents in Family Firms
Abstract: 
 Empirical studies suggest that the business talents of the heir to a family firm can have a large and significant effect on firm prospects. However, we still do not know how heirs, especially those who are good at making and executing business decisions, credibly reveal their talents to other parties, when the signal may be muddied by immense family wealth and high-profile parents. In this article, I model the turnover of talented family members, and highlight a family firm dilemma. First, a talented heir&#x2019;s talents will be undervalued if they involve themselves in their family business, but family firms will suffer brain drains if talented family members leave for the market. This framework and its extensions illustrate how institutional quality, capital share, and technological progress influence heir participation and family firm performance, and how a well-functioned financial system, parental authority, and family income sharing can relieve the dilemma. The main results may help to explain some of the differences in governance and performance of family firms across countries or within a given country over time.
Journal: Emerging Markets Finance and Trade
Pages: 496-512
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1510770
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1510770
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:496-512




Template-Type: ReDIF-Article 1.0
Author-Name: Chen Zhu
Author-X-Name-First: Chen
Author-X-Name-Last: Zhu
Author-Name: Da Zhao
Author-X-Name-First: Da
Author-X-Name-Last: Zhao
Author-Name: Zhiyi Qiu
Author-X-Name-First: Zhiyi
Author-X-Name-Last: Qiu
Title: Internal and External Effect of Estate Investment upon Regional Innovation in China
Abstract: 
 Does estate investment affect innovation investment in neighboring regions? Based on new economic geography and political economics, we theorize both internal and external effect of estate investment upon regional innovation. With dynamic panel and spatial Durbin model, we draw conclusions as follows: 1) Regional innovation is handicapped by local estate investment (internal effect); 2) regional innovation is more handicapped by estate investment in neighbouring regions (external effect); 3) estate investment exerts negative effect in Eastern provinces but positive in Central and Western provinces; 4) negative effect showed up after land policy reform in 2003.
Journal: Emerging Markets Finance and Trade
Pages: 513-530
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1530981
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530981
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:513-530




Template-Type: ReDIF-Article 1.0
Author-Name: Guanchun Liu
Author-X-Name-First: Guanchun
Author-X-Name-Last: Liu
Author-Name: Jun Zhang
Author-X-Name-First: Jun
Author-X-Name-Last: Zhang
Author-Name: Huihang Wu
Author-X-Name-First: Huihang
Author-X-Name-Last: Wu
Author-Name: Yuchao Peng
Author-X-Name-First: Yuchao
Author-X-Name-Last: Peng
Title: Financial Asset Allocations and R&amp;D Activities: Evidence from China&#x2019;s Listed Companies
Abstract: 
 Using the semi-annual nonfinancial listed companies from 2007 to 2015, this article investigates the impacts of financial asset allocations on R&amp;D activities in China. Specifically, the ratio of financial asset holding (Fah) and that of financial profit (Fpr) are employed to measure firms&#x2019; behaviors of financial asset allocations, respectively. The results with dynamic investment-Q framework show that financial asset allocations significantly reduce current firms&#x2019; innovations, but Fah promotes R&amp;D activities in the next few periods, while Fpr plays an adverse role. Furthermore, the relationships exist in different subsamples, and especially the positive impact of Fah in private firms is stronger than that in state-owned firms. Our findings indicate that, the allocation motivation of Fah as a reservoir and that of Fpr as a substitution are significantly different, which reveal that financial asset allocations perform liking a two-edged sword. Therefore, to avoid deindustrialization and industry hollowing, it is remarkable to supervise the upward trend of financial profit share by firms.
Journal: Emerging Markets Finance and Trade
Pages: 531-544
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1451990
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1451990
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:531-544




Template-Type: ReDIF-Article 1.0
Author-Name: Kristjan Liivam&#xE4;gi
Author-X-Name-First: Kristjan
Author-X-Name-Last: Liivam&#xE4;gi
Author-Name: Tarvo Vaarmets
Author-X-Name-First: Tarvo
Author-X-Name-Last: Vaarmets
Author-Name: T&#xF5;nn Talpsepp
Author-X-Name-First: T&#xF5;nn
Author-X-Name-Last: Talpsepp
Title: Investor Education and IPO Participation
Abstract: 
 This study analyzes how the educational characteristics of investors affect their participation in initial public offerings on the stock market. We use a unique dataset from the Tallinn stock exchange that combines the stock market transactions of a full business cycle from 2004 to 2012 with an official educational dataset. Having controlled for gender, age, wealth, and investor trading behavior, we find empirical evidence that investors with better high-school exam results in mathematics and high-school leavers without an academic degree are less likely to participate in an IPO. The opposite is true for investors who have higher education, a bachelor&#x2019;s degree or a degree in the social sciences, economics or public administration, who are all more likely to participate in an IPO. We find that the long-term returns of IPO stocks underperform benchmark index returns.
Journal: Emerging Markets Finance and Trade
Pages: 545-561
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1443806
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1443806
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:545-561




Template-Type: ReDIF-Article 1.0
Author-Name: Isha Chawla
Author-X-Name-First: Isha
Author-X-Name-Last: Chawla
Title: Determinants of Firms&#x2019; Initial Decision to Invest Abroad: An Application of &#x201C;Survival&#x201D; Analysis to Manufacturing Firms in India
Abstract: 
 This article applies &#x201C;survival&#x201D; analysis techniques to estimate and analyze the determinants of the initial outward foreign direct investment (OFDI) decision of manufacturing firms in India. Testing the self-selection hypothesis, semiparametric results based on both continuous and discrete-time hazard models support the hypotheses that firm size, total factor productivity, knowledge-based investments, export intensity, product differentiation, and cash flow are significantly related to early OFDI. Findings support the gradual internationalization process in which firms serve the foreign market via exports before engaging in OFDI. Controls for within-industry learning spillovers are found to be insignificant.
Journal: Emerging Markets Finance and Trade
Pages: 562-583
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1447461
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1447461
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:562-583




Template-Type: ReDIF-Article 1.0
Author-Name: Huaili Lyu
Author-X-Name-First: Huaili
Author-X-Name-Last: Lyu
Author-Name: Conghui Yang
Author-X-Name-First: Conghui
Author-X-Name-Last: Yang
Title: Regulatory Capital Constraint and Its Effects on Price Discrimination and Default Risk: Evidence from China&#x2019;s Bond Market
Abstract: 
 This article examines the effects of regulatory capital constraint on price discrimination and default risk using data of bonds in China. Our research finds that there is price discrimination on non-state-owned enterprises (SOEs) in Chinese bond market and the discrimination is different for various bonds underwritten by commercial and investment banks, which is exacerbated (decreased) by powerful commercial bank (investment bank) underwriters when they have plenty of regulatory capitals. Furthermore, the price discrimination results in a rising of the issuer&#x2019;s default risk, especially when underwriters are commercial banks with strong market power and plenty of regulatory capitals. This finding is consistent with the market power hypothesis for commercial banks and certification role for investment banks, which means that powerful and well-capitalized commercial bank (investment bank) underwriters increase (decrease) the cost of debt of non-SOEs and the default risk of central and local SOEs. Our research is the first to reveal the coexistence of market power view and certification role of underwriters with bonds data from a transition economy.
Journal: Emerging Markets Finance and Trade
Pages: 584-612
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1448265
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1448265
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:584-612




Template-Type: ReDIF-Article 1.0
Author-Name: Jocelyn Grira
Author-X-Name-First: Jocelyn
Author-X-Name-Last: Grira
Author-Name: M. Kabir Hassan
Author-X-Name-First: M. Kabir
Author-X-Name-Last: Hassan
Author-Name: Chiraz Labidi
Author-X-Name-First: Chiraz
Author-X-Name-Last: Labidi
Author-Name: Issouf Soumar&#xE9;
Author-X-Name-First: Issouf
Author-X-Name-Last: Soumar&#xE9;
Title: Equity Pricing in Islamic Banks: International Evidence
Abstract: 
 Using a large sample of publicly listed banks, we assess the ex-ante cost of equity of Islamic banks and compare it with the ex-ante cost of equity of conventional banks. We show that the Islamic banks have, on an average, higher equity financing costs than the conventional banks. The difference in the cost of equity between the two banking systems is economically significant and varies greatly across countries. Moreover, we find that institutional quality improves the cost of equity for both Islamic and conventional banks, with a more pronounced effect for the former. Our findings are robust to alternative assumptions and model specifications, disproportionate analyst coverage pertaining to firm size, and other firm- and country-specific factors.
Journal: Emerging Markets Finance and Trade
Pages: 613-633
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1451323
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1451323
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:613-633




Template-Type: ReDIF-Article 1.0
Author-Name: Mart&#xED;n Leandro Dutto Giolongo
Author-X-Name-First: Mart&#xED;n Leandro
Author-X-Name-Last: Dutto Giolongo
Author-Name: Emiliano A. Carlevaro
Author-X-Name-First: Emiliano A.
Author-X-Name-Last: Carlevaro
Title: Liquidity Provision on Demand in the Argentine Banking System
Abstract: 
 In recent decades, liquidity provision on demand has experienced more growth than almost any other banking function. Banks have comparative advantages over other intermediaries for providing liquidity on demand because of their ability to raise funds through deposits. An overdraft facility is a product that provides liquidity on demand to firms and can affect investment levels. Using panel data for 70 Argentine banks between 1995 and 2015, we built an econometric model to analyze some determinants of the volume of bank-supplied overdrafts, focusing on the role of deposits. This article is focused on understanding how banks have financed their credit lines to firms and its evolution in the Argentinian banking system in the examined period. We found evidence of a strong relation between demand deposits and overdrafts supply. However, the features of this relationship are heterogeneous between different types of banks and were affected by the 2001 Crisis. This heterogeneity among banks could represent an inefficient liquidity provision.
Journal: Emerging Markets Finance and Trade
Pages: 634-654
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1451989
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1451989
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:634-654




Template-Type: ReDIF-Article 1.0
Author-Name: Hassan Daher
Author-X-Name-First: Hassan
Author-X-Name-Last: Daher
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Author-Name: Mansor Ibrahim
Author-X-Name-First: Mansor
Author-X-Name-Last: Ibrahim
Title: The Impact of Charter Values on Bank Capital in Asia: A Threshold Regression Analysis
Abstract: 
 Recent theories suggest the relation between banks&#x2019; charter values and capital buffers is nonlinear and a function of the value of the charter. Using novel threshold estimation techniques, we investigate this for a cross section of 239 commercial banks in 24 Asian economies during the 2008 crisis and post crisis periods. For the latter period, a negative relation seems to dominate for high charter value banks in Asia (excluding Middle East region). During crises, our results for advanced Asian economies are consistent with capital buffer theory. Our findings raise distinct policy implications for the regulation and supervision of Asian banks.
Journal: Emerging Markets Finance and Trade
Pages: 655-670
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1453803
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1453803
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:655-670




Template-Type: ReDIF-Article 1.0
Author-Name: Chan Guo
Author-X-Name-First: Chan
Author-X-Name-Last: Guo
Title: The Impact of the Anti-Corruption Campaign on the Relationship Between Political Connections and Preferential Bank Loans: The Case of China
Abstract: 
 This article investigates the impact of the current anti-corruption campaign on the connection between independent directors with political background (IDPBs) and preferential bank loans of Chinese listed companies. The primary findings of this article are as follows. First, there is a significantly positive relationship between IDPBs and companies&#x2019; ratios of bank loans. Second, the connection between IDPBs and firms&#x2019; bank loan ratios is negatively affected by the anti-corruption campaign. Last, the stock price of companies with IDPBs fell surrounding the enactment of the Opinion on Further Standardizing the Party and Government Leading Cadres Working&#xFF08;Full Time or Part Time&#xFF09;in Enterprises (the Opinion).
Journal: Emerging Markets Finance and Trade
Pages: 671-686
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1454306
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1454306
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:671-686




Template-Type: ReDIF-Article 1.0
Author-Name: Juliano Rodrigues Silva
Author-X-Name-First: Juliano Rodrigues
Author-X-Name-Last: Silva
Author-Name: Aldy Fernandes da Silva
Author-X-Name-First: Aldy Fernandes da
Author-X-Name-Last: Silva
Author-Name: Betty Lilian Chan
Author-X-Name-First: Betty Lilian
Author-X-Name-Last: Chan
Title: Enterprise Risk Management and Firm Value: Evidence from Brazil
Abstract: 
 International studies have shown that the evolution of traditional risk management (TRM) toward a holistic perspective and the simple adoption of enterprise risk management (ERM) have increased firm value from a strategic perspective. This study empirically investigates the association between ERM and firm value (measured by Tobin&#x2019;s q ratio) in 649 firm-year observations that were listed in the IBrX100 index on the Brazilian stock exchange (BM&amp;FBovespa) during 2004&#x2013;2013. After the introduction of controls with exogenous effects, the results indicate a positive association between firm value and the use of an ERM approach, which aligns with most international studies.
Journal: Emerging Markets Finance and Trade
Pages: 687-703
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1460723
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1460723
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:687-703




Template-Type: ReDIF-Article 1.0
Author-Name: Zhifang He
Author-X-Name-First: Zhifang
Author-X-Name-Last: He
Author-Name: Linjie He
Author-X-Name-First: Linjie
Author-X-Name-Last: He
Author-Name: Fenghua Wen
Author-X-Name-First: Fenghua
Author-X-Name-Last: Wen
Title: Risk Compensation and Market Returns: The Role of Investor Sentiment in the Stock Market
Abstract: 
 We investigate the effect of investor risk compensation (IRC) on stock market returns and the role of investor sentiment in influencing the link between IRC and stock returns. Results reveal that current IRC has a significant and positive effect on stock returns while past IRC has a negative effect. Meanwhile, the positive effect of current risk compensation on stock returns is sustainable with different current sentiment states, while this effect is not associated with the current magnitude of sentiment. Regarding past risk compensation, its negative impact on stock return also exists with different signs of past investor sentiment while this effect is not related to the value of past investor sentiment. We discuss the implications of the findings.
Journal: Emerging Markets Finance and Trade
Pages: 704-718
Issue: 3
Volume: 55
Year: 2019
Month: 2
X-DOI: 10.1080/1540496X.2018.1460724
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1460724
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:3:p:704-718




Template-Type: ReDIF-Article 1.0
Author-Name: Kirsten Thompson
Author-X-Name-First: Kirsten
Author-X-Name-Last: Thompson
Author-Name: Reneé van Eyden
Author-X-Name-First: Reneé
Author-X-Name-Last: van Eyden
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Testing the Out-of-Sample Forecasting Ability of a Financial Conditions Index for South Africa
Abstract: 
 The importance of financial instability for the world economy has been severely demonstrated since the 2007–8 global financial crisis, highlighting the need for a better understanding of financial conditions. We consider a financial conditions index (FCI) for South Africa that is constructed from sixteen financial variables and test whether the FCI does better than its individual financial components in forecasting the key macroeconomic variables of output growth, inflation, and interest rates. Two sets of out-of-sample forecasts are obtained—one from a benchmark autoregressive (AR) model and one from a nested autoregressive distributed lag (ARDL) model that includes one financial variable at a time. This concept of forecast encompassing is used to examine the out-of-sample forecasting ability of these financial variables as well as of the FCI, while also controlling for data mining.
Journal: Emerging Markets Finance and Trade
Pages: 486-501
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1025664
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025664
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:486-501




Template-Type: ReDIF-Article 1.0
Author-Name: Manoel Bittencourt
Author-X-Name-First: Manoel
Author-X-Name-Last: Bittencourt
Title: Determinants of Government and External Debt: Evidence from the Young Democracies of South America
Abstract: 
 I investigate the main determinants of government and external debt in the young democracies of South America between 1970 and 2007. The results, based on dynamic panel time-series analysis, suggest that economic growth has significantly reduced the debt ratios in the region. Other candidates suggested by the literature—for example, inflation, inequality, and constraints on the executive—do not present the expected or clear-cut estimates on government and external debt. The results suggest that an economic environment geared toward generating economic activity and prosperity is an important factor in keeping the debt ratios under control in the region.
Journal: Emerging Markets Finance and Trade
Pages: 463-472
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1025667
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025667
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:463-472




Template-Type: ReDIF-Article 1.0
Author-Name: Maximo Camacho
Author-X-Name-First: Maximo
Author-X-Name-Last: Camacho
Author-Name: Marcos Dal Bianco
Author-X-Name-First: Marcos
Author-X-Name-Last: Dal Bianco
Author-Name: Jaime Martinez-Martin
Author-X-Name-First: Jaime
Author-X-Name-Last: Martinez-Martin
Title: Short-Run Forecasting of Argentine Gross Domestic Product Growth
Abstract: 
 We propose a small-scale dynamic factor model for monitoring Argentine gross domestic product (GDP) in real time using economic data at mixed frequencies (monthly and quarterly), which are published with different time lags. Our model not only produces a coincident index of the Argentine business cycle in striking accordance with professional consensus and the history of the Argentine business cycle, but also generates accurate short-run forecasts of the highly volatile Argentine GDP growth. By using a pseudo real-time empirical evaluation, we show that our model produces reliable backcasts, nowcasts, and forecasts well before the official data are released.
Journal: Emerging Markets Finance and Trade
Pages: 473-485
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1025668
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025668
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:473-485




Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Zimper
Author-X-Name-First: Alexander
Author-X-Name-Last: Zimper
Title: Bank-Deposit Contracts Versus Financial-Market Participation in Emerging Economies
Abstract: 
 The financial sector of emerging economies in Africa is characterized by a noncompetitive banking sector that dominates any direct participation of agents in asset markets. We formally identify “market inexperience” as an explanation for agents’ willingness to pay high banking fees rather than to participate in asset markets. Whereas experienced agents choose ex ante investments that result, through trading on the future asset market, in the optimal (second-best) allocation, inexperienced agents are ignorant about the possibility that future market equilibria can improve welfare upon an autarkic investment. As a consequence, a monopolistic banking sector can exploit these agents because their only outside option is an autarkic investment project.
Journal: Emerging Markets Finance and Trade
Pages: 525-536
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1025669
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025669
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:525-536




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: Convergence in Public Expenditure Across a Sample of Emerging Countries: Evidence from Club Convergence
Abstract: 
 The goal of this article is to investigate convergence in public expenditure for a panel of nineteen emerging countries spanning the period 1990–2012. The study applies the methodology of the club convergence methodology to various categories of public expenditure to assess the presence of convergence clubs. I consider eleven alternative categories of public expenditure. The results do not support the hypothesis that all emerging countries converge to a single equilibrium state in public expenditure. Countries demonstrate a high degree of convergence in the sense that in the majority of the cases, these expenditures form only two or three convergence clubs.
Journal: Emerging Markets Finance and Trade
Pages: 448-462
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1025670
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025670
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:448-462




Template-Type: ReDIF-Article 1.0
Author-Name: Riané de Bruyn
Author-X-Name-First: Riané
Author-X-Name-Last: de Bruyn
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Reneé van Eyden
Author-X-Name-First: Reneé
Author-X-Name-Last: van Eyden
Title: Can We Beat the Random-Walk Model for the South African Rand–U.S. Dollar and South African Rand–UK Pound Exchange Rates? Evidence from Dynamic Model Averaging
Abstract: 
 Traditionally, the literature on forecasting exchange rates with many potential predictors has primarily only accounted for parameter uncertainty using Bayesian model averaging (BMA). Although BMA-based models of exchange rates tend to outperform the random-walk model, we show that when accounting for model uncertainty over and above parameter uncertainty through the use of dynamic model averaging (DMA) and dynamic model selection (DMS), the gains relative to the random-walk model are even bigger. That is, DMA and DMS models outperform not only the random-walk model, but also the BMA model of exchange rates. Furthermore, sensitivity analysis reveals that in exchange-rate modeling, accounting for parameter uncertainty may even be more important than parameter uncertainty. Our results are based on fifteen potential predictors used to forecast two South African rand–based exchange rates. We also unveil variables, which tend to vary over time, that are good predictors of the rand–dollar and rand–pound exchange rates at different forecasting horizons.
Journal: Emerging Markets Finance and Trade
Pages: 502-524
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1025671
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025671
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:502-524




Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Guest Editor’s Introduction
Journal: Emerging Markets Finance and Trade
Pages: 445-447
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1025672
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025672
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:445-447




Template-Type: ReDIF-Article 1.0
Author-Name: Diego Aboal
Author-X-Name-First: Diego
Author-X-Name-Last: Aboal
Author-Name: Paula Garda
Author-X-Name-First: Paula
Author-X-Name-Last: Garda
Author-Name: Bibiana Lanzilotta
Author-X-Name-First: Bibiana
Author-X-Name-Last: Lanzilotta
Author-Name: Marcelo Perera
Author-X-Name-First: Marcelo
Author-X-Name-Last: Perera
Title: Does Innovation Destroy Employment in the Services Sector? Evidence from a Developing Country
Abstract: 
 The employment effect of innovation in the heterogeneous universe of services is investigated using firm-level data provided by the 2004–9 Uruguayan services innovation surveys. The empirical analysis shows that the effect of product innovation on employment is positive, while process innovation appears to have no effect. Process innovation activities tend to replace low-skilled jobs with jobs of a higher level of qualification. Product innovation allows for efficiency gains in the production of new services with unskilled labor, and no gains with skilled labor. The results found for knowledge-intensive business services and small firms, with some exceptions, are similar to those found for the whole sample.
Journal: Emerging Markets Finance and Trade
Pages: 558-577
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1026692
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026692
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:558-577




Template-Type: ReDIF-Article 1.0
Author-Name: Claudia De Fuentes
Author-X-Name-First: Claudia
Author-X-Name-Last: De Fuentes
Author-Name: Gabriela Dutrenit
Author-X-Name-First: Gabriela
Author-X-Name-Last: Dutrenit
Author-Name: Fernando Santiago
Author-X-Name-First: Fernando
Author-X-Name-Last: Santiago
Author-Name: Natalia Gras
Author-X-Name-First: Natalia
Author-X-Name-Last: Gras
Title: Determinants of Innovation and Productivity in the Service Sector in Mexico
Abstract: 
 Drawing on survey data about firms in Mexico, we investigate the determinants of innovation and the linkages between innovation and productivity in the services sector. We apply a three-stage Crépon-Duguet-Mairesse (CDM) econometric model; the use of manufacturing firms as a benchmark helps to better appreciate our findings. We find that a series of structural, performance, and behavioral factors increase a firm’s propensity to invest in innovation, but some differences arise between services and manufacturing firms. Intensive investment in innovation leads to superior innovation performance, while innovation output has a positive effect on labor productivity.
Journal: Emerging Markets Finance and Trade
Pages: 578-592
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1026693
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026693
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:578-592




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Rubalcaba
Author-X-Name-First: Luis
Author-X-Name-Last: Rubalcaba
Title: Service Innovation in Developing Economies: Policy Rationale and Framework
Abstract: 
 Services are becoming dominant activities in the world, and service innovation is a way to increase growth and welfare. Service-innovation policies are justified by a wide range of reasons, including the existence of market and systemic failures. In developing economies, these failures are often more serious than in developed economies. Innovation in services presents specific characteristics that are different from innovation in goods. A policy framework and a policy menu with different options are proposed. They include horizontal and vertical policies, as well as a systemic approach in which services can constitute a key component of any innovation policy.
Journal: Emerging Markets Finance and Trade
Pages: 540-557
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1026694
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026694
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:540-557




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Álvarez
Author-X-Name-First: Roberto
Author-X-Name-Last: Álvarez
Author-Name: Claudio Bravo-Ortega
Author-X-Name-First: Claudio
Author-X-Name-Last: Bravo-Ortega
Author-Name: Andrés Zahler
Author-X-Name-First: Andrés
Author-X-Name-Last: Zahler
Title: Innovation and Productivity in Services: Evidence from Chile
Abstract: 
 We analyze empirically the firm-level relationship between innovation and productivity in the Chilean service sector using the manufacturing sector as a benchmark. We find that manufacturing and service industries have similar determinants of the probability of introducing technological innovations. We also find a positive effect of technological and nontechnological innovation on labor productivity for both sectors. However, there are some differences in the quantitative importance of some determinants of innovation. Our findings help to characterize the different stages of the service industry’s innovative process and its effect on an emerging economy, providing useful information for policy design.
Journal: Emerging Markets Finance and Trade
Pages: 593-611
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1026696
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026696
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:593-611




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Miguel Gallego
Author-X-Name-First: Juan Miguel
Author-X-Name-Last: Gallego
Author-Name: Luis H. Gutiérrez
Author-X-Name-First: Luis H.
Author-X-Name-Last: Gutiérrez
Author-Name: Rodrigo Taborda
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Taborda
Title: Innovation and Productivity in the Colombian Service and Manufacturing Industries
Abstract: 
 The knowledge of the innovation–productivity relationship in Latin America, and particularly in the Colombian service sector, is scant. In this study, we explore such relationship comparing the Colombian service industry with manufacturing. Following the Crépon-Duguet-Mairesse empirical approach, the four major findings are as follows: Indeed, Colombian service firms undertake (technological and nontechnological) innovation processes. Regardless of the industry, the probability of innovation increases when there is investment in research and development (R&amp;D) labs and firms are large. The more intensive innovation investment is, the higher the probability of innovation implementation. Finally, labor productivity is enhanced after the introduction of innovations.
Journal: Emerging Markets Finance and Trade
Pages: 612-634
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1026698
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026698
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:612-634




Template-Type: ReDIF-Article 1.0
Author-Name: Andrés López
Author-X-Name-First: Andrés
Author-X-Name-Last: López
Author-Name: Daniela Ramos
Author-X-Name-First: Daniela
Author-X-Name-Last: Ramos
Title: Innovation in Services: The Case of Rural Tourism in Argentina
Abstract: 
 We analyze the innovation process in the rural tourism (RT) sector in Argentina. The identification of a differentiated attribute is key for the success of RT initiatives. This often involves a collective action and a self-discovery process. As RT is a package of services, complementation among different providers is needed. Hence, public policies may facilitate coordination and cooperation among RT providers. The fact that RT groups are formed by small and micro producers located in rural and often poorly connected areas is the main obstacle for innovation. The effects of RT initiatives are hard to measure, but they are seemingly important at the local level.
Journal: Emerging Markets Finance and Trade
Pages: 635-646
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1026700
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026700
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:635-646




Template-Type: ReDIF-Article 1.0
Author-Name: Diego Aboal
Author-X-Name-First: Diego
Author-X-Name-Last: Aboal
Author-Name: Claudio Bravo-Ortega
Author-X-Name-First: Claudio
Author-X-Name-Last: Bravo-Ortega
Author-Name: Gustavo Crespi
Author-X-Name-First: Gustavo
Author-X-Name-Last: Crespi
Title: Innovation in the Services Sector
Journal: Emerging Markets Finance and Trade
Pages: 537-539
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1040280
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1040280
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:537-539




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chih Lin
Author-X-Name-First: Chien-Chih
Author-X-Name-Last: Lin
Title: Asia-Pacific Stock Return Predictability and Market Information Flows
Abstract: 
 In this study, I investigate lead-lag relationships among Asia-Pacific country stock returns. Taking the GARCH effects into account, I estimate a prediction model, and find that lagged Singapore returns exhibit the strongest predictive ability for the returns of Asia-Pacific countries. Estimating this model, I find that lagged Singapore returns exhibit the strongest predictive ability for the returns of Asia-Pacific countries. The Asia-Pacific stock markets react with a delay of information contained in lagged Singapore returns about their fundamentals, and that information diffuses gradually across Asia-Pacific stock markets. Finally, using the MSPE-adjusted statistic, I provide out-of-sample evidence to examine the consistency of the predictive power of lagged Singapore returns.
Journal: Emerging Markets Finance and Trade
Pages: 658-671
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1046336
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046336
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:658-671




Template-Type: ReDIF-Article 1.0
Author-Name: Qianwei Ying
Author-X-Name-First: Qianwei
Author-X-Name-Last: Ying
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Danglun Luo
Author-X-Name-First: Danglun
Author-X-Name-Last: Luo
Title: Investor Attention, Institutional Ownership, and Stock Return: Empirical Evidence from China
Abstract: 
 Using a search frequency index from Baidu.com as a measure of investor attention, we find that investor attention has a significant and positive effect on the stock return within a week in China’s stock market. This effect is reversed from the second week on, but the transitory positive effect in the beginning cannot be completely offset by the reversal of stock returns within a year. It was further found in this study that a higher fraction of institutional ownership yields weaker transitory effects from investor attention on the stock return the next week and stronger return reversals after a month.
Journal: Emerging Markets Finance and Trade
Pages: 672-685
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1046339
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046339
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:672-685




Template-Type: ReDIF-Article 1.0
Author-Name: Elif Mutlu
Author-X-Name-First: Elif
Author-X-Name-Last: Mutlu
Author-Name: Evren Arık
Author-X-Name-First: Evren
Author-X-Name-Last: Arık
Title: Interaction Between Single-Stock Futures and the Underlying Securities: A Cross-Country Analysis
Abstract: 
 We investigate the price discovery mechanism among the single-stock futures (SSFs) and underlying stock markets in four emerging organized markets: India, Korea, Poland, and Russia. We find that the contribution of the SSF market to price discovery is, on average, 47 percent when utilizing daily data and 36 percent when utilizing intraday data. We further find that according to our cross-sectional analysis, spot market turnover, spot market capitalization, and age of the futures contract affect the role of SSF in the price discovery process.
Journal: Emerging Markets Finance and Trade
Pages: 647-657
Issue: 3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2014.998568
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998568
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:647-657




Template-Type: ReDIF-Article 1.0
Author-Name: Hylton Hollander
Author-X-Name-First: Hylton
Author-X-Name-Last: Hollander
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: The Impact of Oil Shocks in a Small Open Economy New-Keynesian Dynamic Stochastic General Equilibrium Model for an Oil-Importing Country: The Case of South Africa
Abstract: 
 This article studies the effects of foreign (real) oil price shocks on key macroeconomic variables for South Africa: a net-importer of oil. We develop and estimate a small open economy New-Keynesian dynamic stochastic general equilibrium model with a role for oil in consumption and production. The substitutability of oil for capital and consumption goods is low, import price pass-through is incomplete, domestic and foreign prices and wages are sticky, and the uncovered interest rate parity condition holds imperfectly. Foreign real oil price shocks have a strong and persistent effect on domestic production and consumption activities and, hence, are a fundamental driver of output, inflation, and interest rates in both the short- and long-run. Oil price shocks also generate a trade-off between output and inflation stabilization. As a result, episodes of endogenous tightening of monetary policy slow the recovery of South Africa’s real economy. Our findings go further to suggest an important role for oil prices in predicting South African output during and after the recession that followed the 2008 global financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 1593-1618
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1474346
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1474346
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Template-Type: ReDIF-Article 1.0
Author-Name: R. L. Shankar
Author-X-Name-First: R. L.
Author-X-Name-Last: Shankar
Author-Name: Ganesh Sankar
Author-X-Name-First: Ganesh
Author-X-Name-Last: Sankar
Author-Name: Kumar K. Kiran
Author-X-Name-First: Kumar K.
Author-X-Name-Last: Kiran
Title: Mispricing in Single Stock Futures: Empirical Examination of Indian Markets
Abstract: 
 We examine the determinants of mispricing in single stock futures traded in the National Stock Exchange of India, the second largest global trading venue for such contracts. We compute mispricing bounds using multi-regime models for over one hundred stocks. The size of the mispricing window—defined as the distance between these bounds—increases with decrease in liquidity. Liquidity of the futures market has a larger impact on the size of the mispricing window compared to that of the spot market. After controlling for these liquidity effects, the size of the mispricing window is found to increase with increase in volatility. This suggests that concerns related to margin calls and execution shortfalls dominate early exit options. Volatility has an asymmetrical effect on mispricing bounds. We attribute this to short-sale constraints as they make the early exit option difficult to exercise when futures are underpriced.
Journal: Emerging Markets Finance and Trade
Pages: 1619-1633
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1477681
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1477681
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1619-1633




Template-Type: ReDIF-Article 1.0
Author-Name: Georges-Charbel Beaino
Author-X-Name-First: Georges-Charbel
Author-X-Name-Last: Beaino
Author-Name: Domenico Lombardi
Author-X-Name-First: Domenico
Author-X-Name-Last: Lombardi
Author-Name: Pierre L. Siklos
Author-X-Name-First: Pierre L.
Author-X-Name-Last: Siklos
Title: The Transmission of Financial Shocks on a Global Scale: Some New Empirical Evidence
Abstract: 
 We examine shocks to capital flows from the United States, the Eurozone, and China. A US interest rate rise is contractionary for the United States but produces positive growth elsewhere. Cross-border claims and US interest rate shocks have been more subdued since the global financial crisis, consistent with the portfolio rebalancing hypothesis. Negative claims shocks from the Eurozone have opposite macroeconomic effects than when the same shock hits the United States due to the predominance of bank-intermediated financing in the Eurozone. Real and financial link exists between China and the Eurozone. The United States is relatively immune to shocks from China of the kind investigated here.
Journal: Emerging Markets Finance and Trade
Pages: 1634-1655
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1481046
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1481046
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1634-1655




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Hou
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Hou
Author-Name: Jiale Lian
Author-X-Name-First: Jiale
Author-X-Name-Last: Lian
Author-Name: Shuo Li
Author-X-Name-First: Shuo
Author-X-Name-Last: Li
Author-Name: Qing Wang
Author-X-Name-First: Qing
Author-X-Name-Last: Wang
Title: Funding Liquidity, Political Geography, and Private Equity Performance: Evidence from China
Abstract: 
 We investigate the relationship between funding liquidity and PE firm performance. We further develop a locally political alignment indicator (PAI) and then investigate whether PAI has an impact on the relationship between funding liquidity and PE firm performance. A higher required reserve ratio implies lower funding liquidity in the context of China. We find that the required reserve ratio is negatively related to PE firm performance significantly. When the most important local leaders belong to the partisan of the supreme leader, the negative reaction of local firms’ performance to a change in funding liquidity strengthens significantly.
Journal: Emerging Markets Finance and Trade
Pages: 1429-1454
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1545642
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1545642
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1429-1454




Template-Type: ReDIF-Article 1.0
Author-Name: Delian Feng
Author-X-Name-First: Delian
Author-X-Name-Last: Feng
Author-Name: Qun Chen
Author-X-Name-First: Qun
Author-X-Name-Last: Chen
Author-Name: Malin Song
Author-X-Name-First: Malin
Author-X-Name-Last: Song
Author-Name: Lianbiao Cui
Author-X-Name-First: Lianbiao
Author-X-Name-Last: Cui
Title: Relationship Between the Degree of Internationalization and Performance in Manufacturing Enterprises of the Yangtze River Delta Region
Abstract: 
 The purpose of this study is to examine the relationship between the degree of internationalization and performance of manufacturing enterprises in the Yangtze River Delta region. Our conclusions on the U-shaped relationship are based on the panel data analysis of 170 listed companies. By creatively using enterprise resources and regional differentiation as situational factors to analyze the relationships between these two factors, we found that resources play a regulatory role in the relationship with international performance, and there is regional disparity in international performance. Finally, we propose relevant policy suggestions from the perspective of corporate sustainable development.
Journal: Emerging Markets Finance and Trade
Pages: 1455-1471
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1547190
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1547190
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhenkung Wang
Author-X-Name-First: Zhenkung
Author-X-Name-Last: Wang
Author-Name: Yanping Wang
Author-X-Name-First: Yanping
Author-X-Name-Last: Wang
Title: Ownership, Internal Capital Markets, and Cash Holdings
Abstract: 
 Chinese rapid economy development and financial market is not coordinated, so distortions exist in the allocation of credit resources, which often occurs via internal capital markets (ICMs). This article studies the effects of ICMs in China on the distribution of cash resources to enterprises based on operating data of ICM, finding that ICM can significantly reduce cash holdings, especially for private enterprises. Further dividing internal financial transactions by its nature, it is found that non-operating transactions with financing nature can play a significant role in reducing the level of cash holdings.
Journal: Emerging Markets Finance and Trade
Pages: 1656-1668
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1553710
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1553710
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Template-Type: ReDIF-Article 1.0
Author-Name: Haiou Mao
Author-X-Name-First: Haiou
Author-X-Name-Last: Mao
Author-Name: Guanchun Liu
Author-X-Name-First: Guanchun
Author-X-Name-Last: Liu
Author-Name: Chengsi Zhang
Author-X-Name-First: Chengsi
Author-X-Name-Last: Zhang
Author-Name: Rao Muhammad Atif
Author-X-Name-First: Rao
Author-X-Name-Last: Muhammad Atif
Title: Does Belt and Road Initiative Hurt Node Countries? A Study from Export Perspective
Abstract: 
 The existing studies on the Belt and Road Initiative (BRI) primarily explain its impact on China’s trade or foreign direct investment, whereas its impact on node countries’ export performance to China has not been examined. By considering the BRI as external policy shock and incorporating “Five Connection” indicators in the model, this article describes the mechanism and impact of the BRI on node countries’ exports to China. By using propensity score matching and a difference-in-difference approach, we tackle the endogeneity problem caused by self-selecting into the BRI node-country group. The estimates indicate that the BRI has an overall positive effect on node countries’ exports to China with an upward trend. The study also observes that facility connection, trade barriers reduction, financial integration, and people-to-people bond are efficient ways to enhance node countries’ exports. Further, the regional heterogeneity analysis finds a smaller positive effect on North African and on central and East Asian economies, while higher on other regions.
Journal: Emerging Markets Finance and Trade
Pages: 1472-1485
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1553711
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1553711
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Template-Type: ReDIF-Article 1.0
Author-Name: Shujian Zhang
Author-X-Name-First: Shujian
Author-X-Name-Last: Zhang
Author-Name: Kuai Peng Ip
Author-X-Name-First: Kuai Peng
Author-X-Name-Last: Ip
Title: Public Service of City Government and Political Trust from Resident: An Analysis Based on 1992–2015 Hong Kong Livelihood Data
Abstract: 
 Studying the relationship between city government’s performance in public service and residents’ trust in the government is of great significance to public management of Chinese cities. The article observed the relation between political trust from Hong Kong resident and public expenditure ratio of Hong Kong government. It indicates from the empirical study that the relation between political trust and public expenditure ratio is positive significantly under the current social environment in Hong Kong. Hong Kong government should devote itself to improving residential livelihood standard and supply level of public goods to maintain a prosperous economy and stable social status in Hong Kong.
Journal: Emerging Markets Finance and Trade
Pages: 1486-1496
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1555464
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1555464
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiangze Du
Author-X-Name-First: Jiangze
Author-X-Name-Last: Du
Author-Name: Runfang Yu
Author-X-Name-First: Runfang
Author-X-Name-Last: Yu
Author-Name: Jin Li
Author-X-Name-First: Jin
Author-X-Name-Last: Li
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Title: Do the Markov Switching-based Hybrid Models Perform Better in Forecasting Exchange Rates?
Abstract: 
 In this study, we extend the traditional monetary model and the random walk model with Markov-switching method and propose two new forecasting models called the Markov switching monetary model (MSMM) and Markov switching random walk model (MSRW). Then, we evaluate the forecasting ability of these two new mixed models, MSMM and MSRW, and compare their performance with the traditional pure monetary model and pure Random walk model based on Mean Squared Forecast Error and Mean Absolute Forecast Error. The results show that the two hybrid models significantly improve the forecasting ability compared with the two traditional models in most scenarios. Moreover, we reexamine the role of data frequency in determining the number of regimes and in affecting the accuracy of forecast evaluation with different data frequency.
Journal: Emerging Markets Finance and Trade
Pages: 1497-1515
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1557516
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1557516
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Template-Type: ReDIF-Article 1.0
Author-Name: Xinyue Dong
Author-X-Name-First: Xinyue
Author-X-Name-Last: Dong
Author-Name: Honggang Li
Author-X-Name-First: Honggang
Author-X-Name-Last: Li
Title: The Effect of Extremely Small Price Limits: Evidence from the Early Period of the Chinese Stock Market
Abstract: 
 This article studies the effect of the extremely small price limits on market quotation with an agent-based model. Considering the early government intervention in the Chinese stock market as a natural experiment, we provide explanations for exotic empirical features of the Chinese stock market in specific periods. We argue that such atypical market results from the behavioral consensus among heterogeneous traders, which is facilitated by the extremely small price limits. Paradoxically, the price limits designed to stabilize prices actually exacerbate price volatility from a longer-term perspective.
Journal: Emerging Markets Finance and Trade
Pages: 1516-1530
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1559141
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1559141
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Template-Type: ReDIF-Article 1.0
Author-Name: Yantuan Yu
Author-X-Name-First: Yantuan
Author-X-Name-Last: Yu
Author-Name: Hui Hu
Author-X-Name-First: Hui
Author-X-Name-Last: Hu
Author-Name: Yun Zhang
Author-X-Name-First: Yun
Author-X-Name-Last: Zhang
Author-Name: Zhujia Yin
Author-X-Name-First: Zhujia
Author-X-Name-Last: Yin
Title: Metafrontier Eco-Efficiency and Its Convergence Analysis for China: A Multidimensional Heterogeneity Perspective
Abstract: 
 This article studies the evaluation, evolution, and convergence of China’s ecological efficiency (eco-efficiency) within a multidimensional (spatial, temporal, and spatiotemporal) heterogeneity framework using a dataset of 191 prefecture and above-prefecture level cities in China over the period of 2003–2015.The results show significant regional disparity of eco-efficiency in China and periodical patterns of σ-and γ-convergence. Estimation results of dynamic spatial Durbin model show that there is global and club β-convergence of eco-efficiency considering spatial, temporal, and spatiotemporal heterogeneity. The findings provide strong evidence for policy makers to take multidimensional heterogeneity into account to improve regional eco-efficiency, promote green development, and realize the “Beautiful China”.
Journal: Emerging Markets Finance and Trade
Pages: 1531-1549
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1559142
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1559142
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Template-Type: ReDIF-Article 1.0
Author-Name: Sewon Kwon
Author-X-Name-First: Sewon
Author-X-Name-Last: Kwon
Author-Name: Taejin Jung
Author-X-Name-First: Taejin
Author-X-Name-Last: Jung
Author-Name: Hee-Yeon Sunwoo
Author-X-Name-First: Hee-Yeon
Author-X-Name-Last: Sunwoo
Author-Name: Sang-Giun Yim
Author-X-Name-First: Sang-Giun
Author-X-Name-Last: Yim
Title: Does Stock Price Crash of Firms in the Same Business Group Cause Stock Price Crash in Other Member Firm? Evidence from Korea
Abstract: 
 This article examines the spillover of stock price crash within business groups. Using Korean business group data, we find that the crash risk of a firm is positively associated with the crash risk of other member firms in the same business group. We also find that crashes spread but do not arise simultaneously across firms within a business group. Further analyses reveal that the documented association is stronger in firms with more inter-company transactions and those with lower market-to-book ratios. Our article contributes to the literature by suggesting that the consequence of opportunistic behaviors of controlling shareholders (i.e., stock crash of a member firm) spills over within business groups.
Journal: Emerging Markets Finance and Trade
Pages: 1566-1592
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1562891
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562891
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Template-Type: ReDIF-Article 1.0
Author-Name: Haijing Cai
Author-X-Name-First: Haijing
Author-X-Name-Last: Cai
Author-Name: Chao Tan
Author-X-Name-First: Chao
Author-X-Name-Last: Tan
Author-Name: Hong Wang
Author-X-Name-First: Hong
Author-X-Name-Last: Wang
Author-Name: Ting Zhong
Author-X-Name-First: Ting
Author-X-Name-Last: Zhong
Title: Does Regional Favoritism Affect the Relationship between CSR Performance and the Ability to Obtain Bank Loans?
Abstract: 
 This study examines the relationship between corporate social responsibility (CSR) performance and the ability to obtain bank loans in China. Using Rankins’ (RKS) ratings over the period 2010–2015, we find that companies with higher CSR performance can obtain more bank loans with longer maturity. As regional favoritism is a particular kind of behavior in China’s relational society, we examine whether firms that are favored by senior officials are helped with their debt financing from banks. The results indicate that CSR performance has a more positive effect on firms’ ability to obtain bank loans when the firms benefit from favoritism by senior officials. Further research finds that the effect of CSR performance on bank loans is stronger since the passage of a new environmental protection law and stronger at firms with higher degree of favoritism by senior officials.
Journal: Emerging Markets Finance and Trade
Pages: 1550-1565
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2019.1567265
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1567265
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Emerging Markets Finance and Trade
Pages: 1669-1669
Issue: 7
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2019.1586026
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1586026
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1669-1669




Template-Type: ReDIF-Article 1.0
Author-Name: Wenchang Fang
Author-X-Name-First: Wenchang
Author-X-Name-Last: Fang
Title: Guest Editor's Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 4-5
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S100
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S100
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Template-Type: ReDIF-Article 1.0
Author-Name: Shih-wei Wu
Author-X-Name-First: Shih-wei
Author-X-Name-Last: Wu
Author-Name: Fengyi Lin
Author-X-Name-First: Fengyi
Author-X-Name-Last: Lin
Author-Name: Chia-ming Wu
Author-X-Name-First: Chia-ming
Author-X-Name-Last: Wu
Title: Corporate Social Responsibility and Cost of Capital: An Empirical Study of the Taiwan Stock Market
Abstract: 
 We investigate the relationship between corporate social responsibility (CSR) and the cost of capital. In general, our results suggest that firms with CSR awards have lower cost of capital. In terms of firms' common risk factors, both book-to-market ratio and leverage are positively related to the cost of capital. In addition, family firms with CSR have lower cost of capital than do nonfamily firms with CSR. High earnings quality firms with CSR have significantly lower cost of capital than low earnings quality firms with CSR. Finally, firms with CSR and independent boards have lower cost of capital than firms with CSR but no independent boards.
Journal: Emerging Markets Finance and Trade
Pages: 107-120
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S107
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S107
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Template-Type: ReDIF-Article 1.0
Author-Name: Siong Law
Author-X-Name-First: Siong
Author-X-Name-Last: Law
Author-Name: Hui Tan
Author-X-Name-First: Hui
Author-X-Name-Last: Tan
Author-Name: W. Azman-Saini
Author-X-Name-First: W.
Author-X-Name-Last: Azman-Saini
Title: Financial Development and Income Inequality at Different Levels of Institutional Quality
Abstract: 
 We examine whether the relationship between financial development and income inequality varies with levels of institutional quality. The empirical evidence based on the threshold regression approach shows that there indeed exists an institutional quality threshold effect in the relationship between financial development and income inequality. Financial development tends to reduce income inequality only after a certain threshold level of institutional quality has been achieved. Until then, the effect of financial development on income inequality is nonexistent. This finding suggests that institutional quality affects the link between financial development and income inequality, reflecting the notion that better quality finance results in more equal income distribution.
Journal: Emerging Markets Finance and Trade
Pages: 21-33
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S102
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S102
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Template-Type: ReDIF-Article 1.0
Author-Name: Rahmi Aktug
Author-X-Name-First: Rahmi
Author-X-Name-Last: Aktug
Title: A Critique of the Contingent Claims Approach to Sovereign Risk Analysis
Abstract: 
 In this paper, I examine the contingent claims approach (CCA) to measuring sovereign risk. Specifically, I extend previous work in this area and apply the CCA framework to three emerging markets—Brazil, Mexico, and Turkey—over the period 2001-10. I find that the CCA underestimates credit default swap spreads and default probabilities. Consequently, I point out the shortcomings of the CCA and suggest some remedies.
Journal: Emerging Markets Finance and Trade
Pages: 294-308
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S118
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S118
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Template-Type: ReDIF-Article 1.0
Author-Name: Adel Bino
Author-X-Name-First: Adel
Author-X-Name-Last: Bino
Author-Name: Diana Ghunmi
Author-X-Name-First: Diana
Author-X-Name-Last: Ghunmi
Author-Name: Ibrahim Qteishat
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Qteishat
Title: Trade, Export Capacity, and World Trade Organization Membership: Evidence from Jordan
Abstract: 
 We investigate the impact that membership in the World Trade Organization (WTO) has on Jordan's trade and international competitiveness. The classical gravity model is used to examine the association between membership in the WTO and Jordan's trade, imports, and most important, exports, which we use as an indicator of the country's capacity to compete internationally. We find that when Jordan and its trade partner are both members of the WTO, Jordan's trade and its contribution to world exports increase significantly. Results of robust estimation of the gravity model and the other roundness checks further confirm the significant positive association between Jordan's membership in the WTO and its trade, exports, and imports.
Journal: Emerging Markets Finance and Trade
Pages: 51-67
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S104
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S104
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Template-Type: ReDIF-Article 1.0
Author-Name: Hao Xu
Author-X-Name-First: Hao
Author-X-Name-Last: Xu
Author-Name: Difang Wan
Author-X-Name-First: Difang
Author-X-Name-Last: Wan
Author-Name: Ying Sun
Author-X-Name-First: Ying
Author-X-Name-Last: Sun
Title: Technology Spillovers of Foreign Direct Investment in Coastal Regions of East China: A Perspective on Technology Absorptive Capacity
Abstract: 
 By establishing a foreign direct investment (FDI) technology spillover estimation model based on technology absorptive capacity and using provincial panel data of the coastal regions of East China from 2001 to 2010, we empirically conclude that FDI technology spillover effect in the coastal regions of East China is not significant. However, technology absorptive capacity is the determining factor of FDI technology spillover effect. Further analysis shows that technology absorptive capabilities respectively represented by institutional change and human resources have different effects on the endogenous economic growth and the FDI technology spillovers. To be more specific, the effect of technology absorptive capacity represented by the level of human resources on the economic growth and FDI technology spillovers is much more significant than that represented by institutional change.
Journal: Emerging Markets Finance and Trade
Pages: 96-106
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S106
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S106
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S1:p:96-106




Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Bonilla
Author-X-Name-First: Claudio
Author-X-Name-Last: Bonilla
Author-Name: Harold Contreras
Author-X-Name-First: Harold
Author-X-Name-Last: Contreras
Author-Name: Jean Sepúlveda
Author-X-Name-First: Jean
Author-X-Name-Last: Sepúlveda
Title: Financial Markets and Politics: The Piñera Effect on the Chilean Capital Market
Abstract: 
 The 2010 presidential election in Chile marked a change from the center-left coalition that governed the country for twenty years to a center-right coalition led by politician and businessman Sebastian Piñera. We study the effect that Piñera's presidential campaign had on the Chilean capital market. By using a panel of forty-nine companies during a period of thirteen months prior to the election, we find that there was a positive and significant effect on the capital market because of the expectation that Piñera would be elected president. That expectation continued throughout the entire presidential campaign.
Journal: Emerging Markets Finance and Trade
Pages: 121-133
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S108
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S108
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S1:p:121-133




Template-Type: ReDIF-Article 1.0
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Author-Name: Sheng Yang
Author-X-Name-First: Sheng
Author-X-Name-Last: Yang
Author-Name: Wen-Si Xie
Author-X-Name-First: Wen-Si
Author-X-Name-Last: Xie
Author-Name: Zhi-Hong Han
Author-X-Name-First: Zhi-Hong
Author-X-Name-Last: Han
Title: Contemporaneous and Asymmetric Properties in the Price-Volume Relationships in China's Agricultural Futures Markets
Abstract: 
 In this paper, we choose six representative futures contracts—soybean, soy meal, corn, hard wheat, strong gluten wheat, and sugar—from China's futures markets to examine predictability and market efficiency from the perspective of the price-volume relationships. Our empirical results show that there is a positive unidirectional causality relationship between volume and return (absolute return). We also find that the trading volumes behave asymmetrically in bull and bear markets, which supports the "heterogeneity of traders" hypothesis but contradicts the "short-selling constraint" hypothesis. Finally, we find that China's futures markets are predictable using historical information and thus are not informationally efficient.
Journal: Emerging Markets Finance and Trade
Pages: 148-166
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S110
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S110
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S1:p:148-166




Template-Type: ReDIF-Article 1.0
Author-Name: Hyang Choi
Author-X-Name-First: Hyang
Author-X-Name-Last: Choi
Author-Name: Young-Gon Cho
Author-X-Name-First: Young-Gon
Author-X-Name-Last: Cho
Author-Name: Wonsik Sul
Author-X-Name-First: Wonsik
Author-X-Name-Last: Sul
Title: Ownership-Control Disparity and Foreign Investors' Ownership: Evidence from the Korean Stock Market
Abstract: 
 We examine one effect of a firm's ownership-control disparity on foreign investors in emerging markets by investigating how the disparity influences foreign investors' shareholdings in Korean firms. Using a panel sample of 192 firms from 2005 to 2009, we find that foreign shareholders invest less in companies with high ownership-control disparity, which suggests that distorted ownership structure negatively affects foreign investors' shareholdings. We also find that foreign industrial investors invest less in companies with high disparity than do foreign financial investors. This study emphasizes the role of foreign investors in a globalized emerging market to the extent that foreign investors influence firms' governance with their investment decisions.
Journal: Emerging Markets Finance and Trade
Pages: 178-193
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S112
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S112
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S1:p:178-193




Template-Type: ReDIF-Article 1.0
Author-Name: Md Uddin
Author-X-Name-First: Md
Author-X-Name-Last: Uddin
Author-Name: Sawsan Halbouni
Author-X-Name-First: Sawsan
Author-X-Name-Last: Halbouni
Author-Name: Mahendra Raj
Author-X-Name-First: Mahendra
Author-X-Name-Last: Raj
Title: Performance of Government-Linked Firms Listed on Two Stock Exchanges of the United Arab Emirates: An Empirical Study
Abstract: 
 In the United Arab Emirates, the government holds ownership in 48 percent of all stock exchange-listed firms. However, prior evidence does not make clear whether the government linkage of a company via ownership holding is good or bad for the firm's performance. We propose two hypotheses. The agency hypothesis holds that government ownership negatively affects firm performance. The support hypothesis postulates that government ownership helps a firm to improve performance. Using a sample of 114 companies, we find that the government-linked companies (GLCs) have better accounting results than do the companies that are not linked to the government (non-GLCs), yet the GLCs are undervalued in the financial market. Subsample analyses reveal that the best accounting results are those of the GLCs in which the government holds 20 to 50 percent of the ownership. If the government takes control of a company by holding more than 50 percent ownership, the accounting results are not improved, yet, unlike other GLCs, these GLCs are overvalued.
Journal: Emerging Markets Finance and Trade
Pages: 212-236
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S114
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S114
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S1:p:212-236




Template-Type: ReDIF-Article 1.0
Author-Name: Fengyi Lin
Author-X-Name-First: Fengyi
Author-X-Name-Last: Lin
Author-Name: Lijuan Zhao
Author-X-Name-First: Lijuan
Author-X-Name-Last: Zhao
Author-Name: Liming Guan
Author-X-Name-First: Liming
Author-X-Name-Last: Guan
Title: Window Dressing in Reported Earnings: A Comparison of High-Tech and Low-Tech Companies
Abstract: 
 We examine the rounding phenomenon (called window dressing) in financial reporting of U.S. high-tech and low-tech firms. By requiring that investments in research and development be expensed as incurred, the generally accepted accounting principles provide low-tech firms with a larger set of accounting choices with which to manipulate earnings than are provided to high-tech firms. Therefore, we find window dressing of earnings is more severe in low-tech firms than in high-tech firms. We also find that window dressing of revenues is more severe in high-tech firms than in low-tech firms. This result suggests that high-tech firms engage more in revenue management to compensate for the smaller set of accounting choices with which to manage earnings.
Journal: Emerging Markets Finance and Trade
Pages: 254-264
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S116
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S116
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Template-Type: ReDIF-Article 1.0
Author-Name: Xianming Fang
Author-X-Name-First: Xianming
Author-X-Name-Last: Fang
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Title: The Promoting Effect of Financial Development on Economic Growth: Evidence from China
Abstract: 
 We study the promoting effects of financial development on economic growth in China. We investigate the effects of developments in the banking, securities, and insurance sectors on the outputs of China's primary, secondary, and tertiary industries. Since China's provincial economic growth shows significant spatial dependence, we construct cross-sectional spatial regression models to study effects year by year, and panel spatial regression models to study overall effects. Empirical results show that the banking and insurance sectors provide significant promoting effects on economic growth; the promoting effect of the securities sector is uncertain.
Journal: Emerging Markets Finance and Trade
Pages: 34-50
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S103
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S103
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Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Bravo-Ortega
Author-X-Name-First: Claudio
Author-X-Name-Last: Bravo-Ortega
Author-Name: Jose Benavente
Author-X-Name-First: Jose
Author-X-Name-Last: Benavente
Author-Name: Álvaro González
Author-X-Name-First: Álvaro
Author-X-Name-Last: González
Title: Innovation, Exports, and Productivity: Learning and Self-Selection in Chile
Abstract: 
 Both exports and innovation—in particular, research and development (R&amp;D)—are key factors for the growth of firms and economies, but there has been little study of the combined impact of exports and innovation on growth of firms and economics, especially in developing countries. We use plant-level data from Chile to examine the relationships among productivity, R&amp;D expenditure, and exports. We find that firms that invest in R&amp;D are considerably more likely to export, but the reverse is not true. Even though exporting does not stimulate investment in R&amp;D, exports and R&amp;D have a joint effect on improving productivity. These results allow us to recover the private return of the "learning by exporting" effect across different sectors.
Journal: Emerging Markets Finance and Trade
Pages: 68-95
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S105
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S105
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Template-Type: ReDIF-Article 1.0
Author-Name: Fangfei Ding
Author-X-Name-First: Fangfei
Author-X-Name-Last: Ding
Author-Name: Min Chen
Author-X-Name-First: Min
Author-X-Name-Last: Chen
Author-Name: Zhongxin Wu
Author-X-Name-First: Zhongxin
Author-X-Name-Last: Wu
Title: Do Institutional Investors Use Earnings Forecasts from Financial Analysts? Evidence from China's Stock Market
Abstract: 
 China has an immature stock market. The typical features of an emerging market may have impaired investors' confidence in Chinese financial analysts. We investigate the association between institutional investors' ownership holding changes and financial analysts' earnings forecast revisions. Results show that there is no significant relationship between them, which suggests that institutional investors do not adopt financial analysts' earnings forecasts when making investment decisions. The result supports the view that sophisticated Chinese institutional investors do not respond to Chinese financial analysts' reports due to lack of trust.
Journal: Emerging Markets Finance and Trade
Pages: 134-147
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S109
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S109
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Template-Type: ReDIF-Article 1.0
Author-Name: Shiqing Xie
Author-X-Name-First: Shiqing
Author-X-Name-Last: Xie
Author-Name: Jiajun Huang
Author-X-Name-First: Jiajun
Author-X-Name-Last: Huang
Title: The Impact of Index Futures on Spot Market Volatility in China
Abstract: 
 Using daily data of the China Securities Index (CSI) 300 between 2005 and 2012, we employ a set of GARCH models to investigate the impact of index futures trading on the volatility of the spot market in China. Our three main findings are as follows: (1) the launch of index futures does not decrease the volatility of the spot market; (2) there is a decrease in sensitivity to new information while sensitivity to historical information increases after introduction of the CSI 300 index futures; and (3) no leverage effect is found either before or after the introduction of the CSI 300 index futures.
Journal: Emerging Markets Finance and Trade
Pages: 167-177
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S111
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S111
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S1:p:167-177




Template-Type: ReDIF-Article 1.0
Author-Name: Jinwoo Park
Author-X-Name-First: Jinwoo
Author-X-Name-Last: Park
Author-Name: Minhyuk Kim
Author-X-Name-First: Minhyuk
Author-X-Name-Last: Kim
Title: Investment Performance of Individual Investors: Evidence from the Korean Stock Market
Abstract: 
 We use unique equity holdings data for each type of investor to investigate the relationship between individual investors' shareholdings and variables such as corporate characteristics and stock returns in the Korean stock market. We find that stocks with the highest individual holdings underperform stocks with the lowest individual holdings. This return difference is attributable to individual investors' uninformed stock-picking skills resulting from lack of attention given to or misinterpretation of readily accessible firm fundamentals. The results also indicate that characteristics of stocks preferred by individual investors are associated with small capitalization, low stock price, low profitability, and high turnover.
Journal: Emerging Markets Finance and Trade
Pages: 194-211
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S113
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S113
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S1:p:194-211




Template-Type: ReDIF-Article 1.0
Author-Name: Gab-Je Jo
Author-X-Name-First: Gab-Je
Author-X-Name-Last: Jo
Title: Transmission of U.S. Financial Shocks to Emerging Market Economies: Evidence from Claims by U.S. Banks
Abstract: 
 I analyze how U.S. financial shocks and the U.S. business cycle, as well as the business cycles of local economies, can help explain changes in international lending by U.S. banks. I find that during the financial crisis of 2007-8, U.S. financial shocks were transmitted to emerging market economies (EMEs) via the international lending activities of U.S. banks. However, the results suggest that U.S. banks' lending activities alone cannot explain the transmission of the financial shocks to Organization for Economic Cooperation and Development countries. In addition, I find that the U.S. business cycle significantly affected U.S. bank loans to EMEs but that it did not significantly affect the banks' claims on developed countries. I also find that the business cycles in the EMEs were not the main drivers of U.S. banks' cross-border lending; in contrast, the macroeconomic conditions in the developed countries were important drivers of the cross-border lending by the banks.
Journal: Emerging Markets Finance and Trade
Pages: 237-253
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S115
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S115
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S1:p:237-253




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Hoffmann
Author-X-Name-First: Paolo
Author-X-Name-Last: Hoffmann
Author-Name: Mauricio Bertín
Author-X-Name-First: Mauricio
Author-X-Name-Last: Bertín
Author-Name: Marta Warleta
Author-X-Name-First: Marta
Author-X-Name-Last: Warleta
Title: Firm Size as Determinant of the Nonlinear Relationship Between Bank Debt and Growth Opportunities: The Case of Chilean Public Firms
Abstract: 
 We analyze the extent to which firm size determines the relationship between growth opportunities and bank debt in the Chilean corporate sector. Using generalized method of moments (GMM) system estimator techniques in an unbalanced panel data of quoted firms, we provide evidence of a U-shaped relationship between growth opportunities and bank debt, which has a different behavior depending on the firm's size. Smaller firms seek private debt sooner than larger firms do when growth opportunities increase. This finding is supported by the institutional characteristics of the Chilean financial system, the higher confidence of small firms in bank debt, and the bank-based orientation of the Chilean financial markets.
Journal: Emerging Markets Finance and Trade
Pages: 265-293
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S117
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S117
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S1:p:265-293




Template-Type: ReDIF-Article 1.0
Author-Name: Werner R
Author-X-Name-First: Werner
Author-X-Name-Last: R
Author-Name: Josephine Olson
Author-X-Name-First: Josephine
Author-X-Name-Last: Olson
Title: Economic Growth in Latin American Countries: Is It Based on Export-Led or Import-Led Growth?
Abstract: 
 Using a data cointegration panel with error correction, we analyze the principal theories of international trade and economic growth—export-led growth (ELG), growth-led exports (GLE), and import-led growth (ILG)—for Latin American countries. The results demonstrate that exports drive growth of gross domestic product (GDP). Although the effects of imports on growth are generally negative, in our disaggregated analysis by country, we find results for eight countries support the ELG theory, results for five countries support the ILG theory, results for one country support both theories and results for one country support neither theory. An interesting finding is the negative correlation between the impacts of exports and the impacts of imports on GDP growth, which implies that, in theory, ELG and ILG cannot exist simultaneously in a country.
Journal: Emerging Markets Finance and Trade
Pages: 6-20
Issue: S1
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5001S101
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5001S101
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Template-Type: ReDIF-Article 1.0
Author-Name: Yihua Yu
Author-X-Name-First: Yihua
Author-X-Name-Last: Yu
Author-Name: Xinye Zheng
Author-X-Name-First: Xinye
Author-X-Name-Last: Zheng
Author-Name: Li Zhang
Author-X-Name-First: Li
Author-X-Name-Last: Zhang
Title: Yardstick Competition and the Formation of Enterprise Zones in China
Abstract: 
 While numerous studies have been found to examine the social and economic impacts of enterprise zones, studies on the formation of enterprise zones are surprisingly scant. This study aims to fill such a gap by examining the driving forces behind the formation of enterprise zones in China in the framework of fiscal competition. Using China’s city level data and a spatial econometric technique, we find that Chinese local governments tend to act strategically when considering establishing their own enterprise zones. The formation of enterprise zones seems to be not due to the result of local economic status, but the result of yardstick competition created across local governments.
Journal: Emerging Markets Finance and Trade
Pages: 1961-1972
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2016.1184143
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1184143
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Template-Type: ReDIF-Article 1.0
Author-Name: Min Zhou
Author-X-Name-First: Min
Author-X-Name-Last: Zhou
Author-Name: Xiaoqun Liu
Author-X-Name-First: Xiaoqun
Author-X-Name-Last: Liu
Author-Name: Bin Pan
Author-X-Name-First: Bin
Author-X-Name-Last: Pan
Author-Name: Xin Yang
Author-X-Name-First: Xin
Author-X-Name-Last: Yang
Author-Name: Fenghua Wen
Author-X-Name-First: Fenghua
Author-X-Name-Last: Wen
Author-Name: Xiaohua Xia
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Xia
Title: Effect of Tourism Building Investments on Tourist Revenues in China: A Spatial Panel Econometric Analysis
Abstract: 
 The development of tourism greatly promotes China’s economic growth, and tourism buildings are a core component of tourism industry. From the perspective of spatial panel econometrics, this study verifies the spatial relevance between tourism building investments and tourism economic growth in China. It is verified that the development of China’s tourism industry possesses a significant spatial clustering effect. Since the coefficient of capital is greater than that of labor, the tourism industry is primarily a labor-intensive industry in China. Tourism building investments positively and significantly affect tourism revenue which is affected by the levels of manufacturing and human capital. Robust tests are provided by separating the regions and policy implications are offered.
Journal: Emerging Markets Finance and Trade
Pages: 1973-1987
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2016.1237353
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1237353
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Template-Type: ReDIF-Article 1.0
Author-Name: Changfu Sun
Author-X-Name-First: Changfu
Author-X-Name-Last: Sun
Author-Name: Yanmin Shao
Author-X-Name-First: Yanmin
Author-X-Name-Last: Shao
Title: The Effect of Economic Cooperation on China’s Outward Foreign Direct Investment—A Spatial Panel Data Approach
Abstract: 
 The study investigates the factors influencing the distribution of Chinese outward foreign direct investment (OFDI) across different host countries. Although economic cooperation between the host country and home country is an important driving factor of OFDI, it is largely ignored in the empirical literature. In this study, we first investigate this issue by employing spatial econometric techniques using Chinese OFDI data between 2003 and 2014. We find that Chinese OFDI to the host country is positively associated with China’s economic cooperation with it after considering the traditional determinants of OFDI, and its effect is robust with a different sub-sample. We also find strong support for the argument that Chinese OFDI shows a significant spatial agglomeration pattern. Furthermore, the host country’s market size, openness to FDI, and well-developed infrastructure attract Chinese OFDI, while the effect of geographic distance to China, and the cultural proximity to China do not hold using different samples.
Journal: Emerging Markets Finance and Trade
Pages: 2001-2019
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2016.1256198
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1256198
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:9:p:2001-2019




Template-Type: ReDIF-Article 1.0
Author-Name: Feng Tao
Author-X-Name-First: Feng
Author-X-Name-Last: Tao
Author-Name: Huiqin Zhang
Author-X-Name-First: Huiqin
Author-X-Name-Last: Zhang
Author-Name: Yi Hu
Author-X-Name-First: Yi
Author-X-Name-Last: Hu
Author-Name: Andrew A. Duncan
Author-X-Name-First: Andrew A.
Author-X-Name-Last: Duncan
Title: Growth of Green Total Factor Productivity and Its Determinants of Cities in China: A Spatial Econometric Approach
Abstract: 
 As pollution in Chinese cities worsens, there is renewed interest in promoting sustainable development across the country. This article introduces the global Malmquist–Luenberger productivity index (ML) to measure green total factor productivity (TFP) growth of 270 Chinese cities over the period 2003–2013. Empirical spatial econometrics is applied to analyze the spatial spillovers and the determinants of green TFP growth. Our results show that green TFP is a useful metric for measuring development, and that spatial spillover effects do exist among neighboring cities of similar development. Finally, the study provides some policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 2123-2140
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2016.1258359
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1258359
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Template-Type: ReDIF-Article 1.0
Author-Name: Jing Wang
Author-X-Name-First: Jing
Author-X-Name-Last: Wang
Author-Name: Wei Wei
Author-X-Name-First: Wei
Author-X-Name-Last: Wei
Author-Name: HuiHui Deng
Author-X-Name-First: HuiHui
Author-X-Name-Last: Deng
Author-Name: Yihua Yu
Author-X-Name-First: Yihua
Author-X-Name-Last: Yu
Title: Will Fiscal Decentralization Influence FDI Inflows? A Spatial Study of Chinese Cities
Abstract: 
 Will fiscal decentralization policy impact Foreign Direct Investment (FDI) inflows in China? Will cities attract FDI at the expense of the environment? This study aims to answer these questions using China’s city-level data in 2014 and a spatial Durbin modelling approach. We find that: (1) Fiscal decentralization does promote FDI inflows; (2) FDI inflows show significant positive spatial agglomeration and spillover effects; (3) Lower environmental regulation stringency contributes to attracting FDI inflows and a stricter environmental regulation stringency in neighboring cities would impede local FDI inflows; (4) A lower level of environmental regulation stringency would, ceteris paribus, deteriorate fiscal decentralization’s stimulation on FDI inflows.
Journal: Emerging Markets Finance and Trade
Pages: 1988-2000
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2016.1266249
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1266249
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Template-Type: ReDIF-Article 1.0
Author-Name: Jinghua Lei
Author-X-Name-First: Jinghua
Author-X-Name-Last: Lei
Author-Name: Yanbin Chen
Author-X-Name-First: Yanbin
Author-X-Name-Last: Chen
Author-Name: Junxue Jia
Author-X-Name-First: Junxue
Author-X-Name-Last: Jia
Author-Name: Kai Liu
Author-X-Name-First: Kai
Author-X-Name-Last: Liu
Title: Public Expenditure Interactions of Chinese Local Governments: A Simultaneous Equations Network Approach
Abstract: 
 Fiscal competition, mimicking, and interactions among local governments exist as a complex network. To better model and estimate public expenditure interactions of Chinese local governments, we adopt a simultaneous equations network approach in which spatial dependence of multiple components of local governments’ spending and also the internal competition among different components of public expenditure within the same city are considered. Using Chinese county-level fiscal data, we find that the endogenous peer effect for capital construction expenditure is positive among Chinese local governments, capital construction expenditure and administrative expenditure are complements rather than substitutes, there is no fiscal mimicking of social welfare expenditure, and there is a strong crowd-out effect of administrative expenditure on social welfare spending.
Journal: Emerging Markets Finance and Trade
Pages: 1943-1960
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2016.1267004
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1267004
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:9:p:1943-1960




Template-Type: ReDIF-Article 1.0
Author-Name: Xiangwei Sun
Author-X-Name-First: Xiangwei
Author-X-Name-Last: Sun
Author-Name: Fei Chen
Author-X-Name-First: Fei
Author-X-Name-Last: Chen
Author-Name: Geoffrey J. D. Hewings
Author-X-Name-First: Geoffrey J. D.
Author-X-Name-Last: Hewings
Title: Spatial Perspective on Regional Growth in China: Evidence from an Extended Neoclassic Growth Model
Abstract: 
 Following Ertur and Kock (2007) and Elhorst, Piras, and Arbia (2010), a spatially-extended neoclassical Solow growth model is developed to explore the spatial characteristics of regional economic growth at the prefecture level over the period 1992–2010 in China. A Spatial Durbin Model with the spatial fixed effects is verified in empirical analysis. The results show that spatial spillovers exist not only among the economic growth of neighbors, but also among the initial economic levels of neighbors. Furthermore, the same analysis is conducted for a new specified sample by controlling spatial heterogeneity, and the results show that spatial spillover effects are enhanced and the velocity of convergence is greater. The empirical analysis verifies that the extended neoclassic growth model is a feasible foundation to explore the spatial characteristics of regional economic growth over the period 1992–2010 in China.
Journal: Emerging Markets Finance and Trade
Pages: 2063-2081
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2016.1275554
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1275554
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:9:p:2063-2081




Template-Type: ReDIF-Article 1.0
Author-Name: Xi Zhang
Author-X-Name-First: Xi
Author-X-Name-Last: Zhang
Author-Name: Dongmei Guo
Author-X-Name-First: Dongmei
Author-X-Name-Last: Guo
Author-Name: Yi Xiao
Author-X-Name-First: Yi
Author-X-Name-Last: Xiao
Author-Name: Mingxi Wang
Author-X-Name-First: Mingxi
Author-X-Name-Last: Wang
Title: Do Spatial Spillover Effects of Nonperforming Loans for Commercial Banks Exist? Evidence from Chinese Provinces
Abstract: 
 In this article, the spatial spillover effects of nonperforming loans in commercial banks are investigated based on Chinese provinces. Panel data from 31 provinces in China covering the period from 2005 to 2014 are used in this study. First, we employ Moran’s I statistic to describe the empirical evidence for the presence of spatial dependencies in provincial nonperforming loans ratio (NPLR) after checking the stationarity of the data by the second-generation panel unit root tests. Then we construct the spatial panel data model through a set of model specification tests, and calculate the direct and indirect effects of the explanatory variables. The empirical results show that the spatial spillover effect plays a significant role in regional nonperforming loans. Furthermore, the growth rate of the gross domestic product and the unemployment rate are two important factors in the transmission of nonperforming loans among the regions.
Journal: Emerging Markets Finance and Trade
Pages: 2039-2051
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2017.1280668
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1280668
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:9:p:2039-2051




Template-Type: ReDIF-Article 1.0
Author-Name: Yaoguo Wu
Author-X-Name-First: Yaoguo
Author-X-Name-Last: Wu
Author-Name: Yuegang Song
Author-X-Name-First: Yuegang
Author-X-Name-Last: Song
Author-Name: Guoying Deng
Author-X-Name-First: Guoying
Author-X-Name-Last: Deng
Title: Institutional Environment, OFDI, and TFP Growth: Evidence from China
Abstract: 
 Using Chinese Industrial Enterprise Database and Foreign Investment Enterprises database (2003–2007), this article studies the impact of institutional environment and outward foreign direct investment (OFDI) on total factor productivity (TFP) at firm and provincial level. The results show that good institutional environment is conducive to firm and provincial level TFP growth, OFDI also proves to be positive. Considering spatial correlation, provinces with strong TFP have negative impact on adjacent provinces. For different ownership enterprises in home country, favorable institutional environment promotes the TFP growth of private enterprises, while OFDI has a significant positive effect on the TFP growth of both private and foreign-invested enterprises, the TFP of private enterprises show obvious polarization effect.
Journal: Emerging Markets Finance and Trade
Pages: 2020-2038
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2017.1283612
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1283612
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Template-Type: ReDIF-Article 1.0
Author-Name: Huasheng Song
Author-X-Name-First: Huasheng
Author-X-Name-Last: Song
Author-Name: Min Zhang
Author-X-Name-First: Min
Author-X-Name-Last: Zhang
Title: Spatial Spillovers of Regional Innovation: Evidence from Chinese Provinces
Abstract: 
 This article assesses whether and how the effects of spatial spillovers contribute to regional innovation growth in China. Using provincial-level data over the 2003–2011 period and employing a spatial Durbin model (SDM), the empirical results reveal strong spillover effects in both the input and output processes of regional innovation. An area can benefit from innovation in the surrounding areas through channels that include innovation output, R&amp;D input, and agglomeration economies. By contrast, externalities from absorptive capacity are spatially localized, and foreign direct investment (FDI) can lead to negative spillover effects in this context. Moreover, different types of patented innovations exhibit a variety of patterns.
Journal: Emerging Markets Finance and Trade
Pages: 2104-2122
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2017.1284061
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1284061
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:9:p:2104-2122




Template-Type: ReDIF-Article 1.0
Author-Name: Xulan Yu
Author-X-Name-First: Xulan
Author-X-Name-Last: Yu
Author-Name: Miao Li
Author-X-Name-First: Miao
Author-X-Name-Last: Li
Author-Name: Shuting Huang
Author-X-Name-First: Shuting
Author-X-Name-Last: Huang
Title: Financial Functions and Financial Development in China: A Spatial Effect Analysis
Abstract: 
 This article aims to study the spatial effect that financial functions have on financial development in China. We use the 2005–2014 panel data for 31 Chinese provinces to construct three spatial panel models of different spatial weight matrixes. The empirical results indicate that there is a spatial competition effect on financial development. Most explanatory variables play positive roles in promoting the local financial development. Spatial spillover effects are not obvious and negative to financial depth. Spatial spillover effects are significantly positive in financial access. Spatial competition effects are observed in financial efficiency. Openness and economic development show spatial spillover effects, while human capital and government subsidies show noticeably spatial competition effects. These insights are valuable to financial department and policy makers.
Journal: Emerging Markets Finance and Trade
Pages: 2052-2062
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2017.1286588
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1286588
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Template-Type: ReDIF-Article 1.0
Author-Name: Xuejun Wang
Author-X-Name-First: Xuejun
Author-X-Name-Last: Wang
Author-Name: Xi Tian
Author-X-Name-First: Xi
Author-X-Name-Last: Tian
Title: Shifting Toward the West? An Analysis of Sectoral Employment Growth Across China’s Counties, 2000–2010
Abstract: 
 Since the late 1990s, the focus of China’s regional policies has been redirected to coordinate regional development, and a series of policy shifts have been launched to promote the development of hinterland and interregional equity. This study analyzes how the spatial and sectoral patterns of employment growth have changed between 2000 and 2010 by estimating aggregate and sectoral employment growth equations using county-level employment data. The results support significant $$\beta $$β
 convergence effects in all sectors in which employment growth is negatively correlated with their initial sectoral shares. Also, preferential policies targeting the western China have successfully stimulated faster sectoral employment growth. However, there are considerable sectoral heterogeneities when examining the effects of policies targeting the central and northeastern China. The results also reveal nonlinear effects of labor pooling economies proxied by initial total employment on sectoral employment growth for the majority sectors. A few other stylized facts are also in line with the expectation.
Journal: Emerging Markets Finance and Trade
Pages: 2082-2103
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2017.1294059
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1294059
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:9:p:2082-2103




Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Liu
Author-X-Name-First: Sheng
Author-X-Name-Last: Liu
Author-Name: Feng Tao
Author-X-Name-First: Feng
Author-X-Name-Last: Tao
Author-Name: Huiqin Zhang
Author-X-Name-First: Huiqin
Author-X-Name-Last: Zhang
Title: Term Limits of Public Officials, Environmental Regulations, and Sustainable Development: An Analysis Based on Empirical Spatial Econometrics
Abstract: 
 This study investigates the impact of public officials’ term limits and environmental regulations on sustainable development using provincial panel data in China for the period 1986–2013. Applying empirical spatial econometrics, the spatial dependence of green productivity growth, calculated by the global Malmquist–Luenberger (ML) index, across provinces has been supported. There appears to be a U relationship between the term limits of provincial governors and the green productivity growth. The Porter hypothesis does not exist in this sample. Finally, the study provides some policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 2141-2155
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2017.1300881
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1300881
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Template-Type: ReDIF-Article 1.0
Author-Name: Yihua Yu
Author-X-Name-First: Yihua
Author-X-Name-Last: Yu
Title: Empirical Spatial Econometrics: Applications to China’s Economy
Journal: Emerging Markets Finance and Trade
Pages: 1939-1942
Issue: 9
Volume: 53
Year: 2017
Month: 9
X-DOI: 10.1080/1540496X.2017.1363489
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1363489
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:9:p:1939-1942




Template-Type: ReDIF-Article 1.0
Author-Name: Chen Ling
Author-X-Name-First: Chen
Author-X-Name-Last: Ling
Author-Name: Anquan Zhang
Author-X-Name-First: Anquan
Author-X-Name-Last: Zhang
Author-Name: Xiaopeng Zhen
Author-X-Name-First: Xiaopeng
Author-X-Name-Last: Zhen
Title: Peer Effects in Consumption Among Chinese Rural Households
Abstract: 
 This article attempts to identify peer effects in household consumption in rural China using the Chinese Household Finance Survey (CHFS) 2011 data. In addition to the selection effect, reflection problem and correlated effect, we address the actual peer problem via the matching method in identifying the peer effect. It is found that as peer household’s consumption expenditure increases by 1%, the household’s consumption would increase by 0.24%. It is also found that richer households are more susceptible to peer pressure in consumption decisions. Finally, household is more sensitive to changes in the consumption of poorer peers, relative to their richer peers.
Journal: Emerging Markets Finance and Trade
Pages: 2333-2347
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2017.1363034
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1363034
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:10:p:2333-2347




Template-Type: ReDIF-Article 1.0
Author-Name: Norazza M. Haniff
Author-X-Name-First: Norazza M.
Author-X-Name-Last: Haniff
Author-Name: Abul Mansur M. Masih
Author-X-Name-First: Abul Mansur M.
Author-X-Name-Last: Masih
Title: Do Islamic Stock Returns Hedge Against Inflation? A Wavelet Approach
Abstract: 
 This article makes an initial attempt to study the hedging effectiveness of Islamic stock returns against inflation for different investment horizons. We applied the wavelet analysis to measure the cross-correlations between the time series as a function of time-scales using data ranging from 2007 to early 2015. The main results tend to indicate the following: First, that for investment horizons not exceeding 3 years, the FTSE Bursa Malaysia Emas Shariah Index constituent returns may potentially hedge against inflation. Additionally, the hedging ability of stock returns was absent from 2008 to 2009 following the global financial crisis. Finally, a buy-and-hold strategy exceeding 3 years may erode investments. The results are plausible and have strong policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 2348-2366
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2017.1363035
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1363035
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:10:p:2348-2366




Template-Type: ReDIF-Article 1.0
Author-Name: Yu-Che Huang
Author-X-Name-First: Yu-Che
Author-X-Name-Last: Huang
Author-Name: Chaug-Ing Hsu
Author-X-Name-First: Chaug-Ing
Author-X-Name-Last: Hsu
Author-Name: K. I. Wong
Author-X-Name-First: K. I.
Author-X-Name-Last: Wong
Title: Contagion Effect in International Trade After the Japanese 311 Earthquake
Abstract: 
 This study investigates spatial contagion on trading markets when an industrialized country is stricken by a natural disaster. We present a test for contagion effects on the cargo trading among the major trading partners. The test is based on a comparison of the correlation coefficients of transnational trade linkages in industrial cargo volumes before and after a disaster. Using the Japanese 311 earthquake in 2011 as a case study, the results show that spatial contagion is observed for neighboring countries exporting to Taiwan. It also found that the occurrence of contagion effect depends on the industrial market share of the linkages, and the contagion effect disperses over time.
Journal: Emerging Markets Finance and Trade
Pages: 2367-2381
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2017.1364235
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1364235
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Template-Type: ReDIF-Article 1.0
Author-Name: Yunxiao Liu
Author-X-Name-First: Yunxiao
Author-X-Name-Last: Liu
Author-Name: James L. Park
Author-X-Name-First: James L.
Author-X-Name-Last: Park
Author-Name: Bumjean Sohn
Author-X-Name-First: Bumjean
Author-X-Name-Last: Sohn
Title: Foreign Investment in Emerging Markets: International Diversification or Familiarity Bias?
Abstract: 
 This study empirically tests whether foreign investors take advantage of international diversification when investing in emerging Asian markets. Using the 2007–2008 financial crisis as identification, we find that firms with higher foreign ownership had better stock returns during the financial crisis. Moreover, the diversification effect exists in five out of the eight emerging markets and is stronger in markets with a lower dynamic conditional correlation with the global market index. We also find that foreign investors prefer firms with a lower international sales ratio. In conclusion, the evidence consistently suggests that foreign investors take advantage of diversification effects.
Journal: Emerging Markets Finance and Trade
Pages: 2169-2191
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2017.1369403
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1369403
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:10:p:2169-2191




Template-Type: ReDIF-Article 1.0
Author-Name: Chi-Seung Song
Author-X-Name-First: Chi-Seung
Author-X-Name-Last: Song
Author-Name: Youngjoo Lee
Author-X-Name-First: Youngjoo
Author-X-Name-Last: Lee
Title: Monitoring Role of Venture Capital in the Initial Public Offerings: Evidence from Korea
Abstract: 
 Because the government has initiated the development of venture capital firms in Korea, independent venture capital firms have been significantly influenced by government regulations and interventions; in contrast, corporations have made venture investments internally to avoid the regulations. This study investigates whether the Korean institutional environment harms the monitoring role of independent venture capital firms, while it does not significantly impact corporate venture capital firms. In an IPO setting, we find that earnings management (long-term performance) significantly decreases (increases) with the ownership of corporate venture capital firms. However, we do not find a significant relation between the ownership of independent venture capital firms and earnings management or long-term performance. The results suggest that Korean independent venture capital firms do not play a role in monitoring their investee companies; in contrast, corporate venture capital firms play a monitoring role.
Journal: Emerging Markets Finance and Trade
Pages: 2382-2399
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2017.1399121
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1399121
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Template-Type: ReDIF-Article 1.0
Author-Name: Indrani Chakraborty
Author-X-Name-First: Indrani
Author-X-Name-Last: Chakraborty
Title: Effects of Ownership Structure on Capital Structure of Indian Listed Firms: Role of Business Groups vis-à-vis Stand-Alone Firms
Abstract: 
 The objective of this study was to explore the relationship between promoter ownership and capital structure of firms’ using a sample of Indian publicly listed firms for the period from 2006 to 2013. We find that the relationship between promoter ownership and leverage is inversely U-shaped in group-affiliated firms, whereas in stand-alone firms there is a U-shaped relationship. We argue that a substantial presence of family owners and the selection of managers from within the family play some role for such relationship in group-affiliated firms. On the other hand, the argument for observed relationship in stand-alone firms follows from alignment hypothesis, entrenchment hypothesis, managerial risk aversion hypothesis, and active monitoring hypothesis.
Journal: Emerging Markets Finance and Trade
Pages: 2315-2332
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2018.1434071
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1434071
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Template-Type: ReDIF-Article 1.0
Author-Name: Riguang Wen
Author-X-Name-First: Riguang
Author-X-Name-Last: Wen
Author-Name: Shaoqin Ye
Author-X-Name-First: Shaoqin
Author-X-Name-Last: Ye
Title: Do Changes in Industrial Policy Affect Allocation of Financial Resources Among Subsidiaries?
Abstract: 
 This study explores how enterprise groups adjust the allocation of financial resources among subsidiaries after the industrial policy is amended. Results show that compared to subsidiaries experiencing minimal impact due to changes in industrial policy, a higher inflow of financial resources from enterprise groups is witnessed by subsidiaries experiencing a positive impact than those experiencing a negative impact. From the specific channels of allocation of financial resources, subsidiaries experiencing a positive effect obtain more equity investment from the parent company and pay fewer cash dividends. Contrarily, subsidiaries experiencing a negative impact obtain less equity investment and have minimum cash adequacy ratio.
Journal: Emerging Markets Finance and Trade
Pages: 2192-2206
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2018.1454307
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1454307
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Template-Type: ReDIF-Article 1.0
Author-Name: Yangbin Sun
Author-X-Name-First: Yangbin
Author-X-Name-Last: Sun
Author-Name: Cheng Cheng
Author-X-Name-First: Cheng
Author-X-Name-Last: Cheng
Author-Name: Shenggang Yang
Author-X-Name-First: Shenggang
Author-X-Name-Last: Yang
Title: Coaches or Speculators? The Role and Impact of Venture Capital on Executive Compensation in Chinese Listed Companies
Abstract: 
 In this paper, we utilize a panel dataset that covers 1245 listed companies which accomplished their IPO during 2006 to 2014 in China to investigate the impact of venture capital (VC) firms on executive compensation, equity incentive and pay-performance-sensitivity. We make several key findings: First, we find the presence of VCs can significantly raise the executive compensation. Second, high reputation VCs and private VCs increases the likelihood of granting executive equity incentives, whereas foreign VCs are significantly negatively related with executive equity incentive. Third, the pay-performance sensitivity of government VCs and foreign VCs is significant on stock return (RET) whereas insignificant on accounting performance (ROA). Moreover, the increasing VCs share in portfolio companies enhance the pay performance sensitivity on RET. Our results show that before VCs final exiting their post-IPO portfolio companies in China, VCs’ impact on executive compensation are more consistent with grandstanding theories and intending to provide higher cash compensation to encourage executives to raise the companies’ stock price, which is indicating VCs’ changing role from a coach into a speculator after the portfolio companies’ IPO.
Journal: Emerging Markets Finance and Trade
Pages: 2225-2244
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2018.1460270
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1460270
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Template-Type: ReDIF-Article 1.0
Author-Name: Yunong Li
Author-X-Name-First: Yunong
Author-X-Name-Last: Li
Author-Name: Mao Zhou
Author-X-Name-First: Mao
Author-X-Name-Last: Zhou
Author-Name: Yan Du
Author-X-Name-First: Yan
Author-X-Name-Last: Du
Author-Name: Wei Zhao
Author-X-Name-First: Wei
Author-X-Name-Last: Zhao
Title: Legal System and Trade Credit: Evidence from Emerging Economies
Abstract: 
 Using a large-scale, firm-level dataset from 68 emerging economies for the period of 2002–2006 compiled by the World Bank, we find that legal systems have a positive and significant impact on the provision of trade credit. This result is robust to the inclusion of conventional controls used in the literature, to alternate specifications that address endogeneity and measurement error problems, and to different measures of trade credit and legal systems. Legal systems have a larger impact on trade credit for firms with overdraft facilities than for those without overdraft facilities, and the impact of legal systems on trade credit is significant in more developed countries but not in less developed countries.
Journal: Emerging Markets Finance and Trade
Pages: 2207-2224
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2018.1460271
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1460271
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:10:p:2207-2224




Template-Type: ReDIF-Article 1.0
Author-Name: Zhi-Min Dai
Author-X-Name-First: Zhi-Min
Author-X-Name-Last: Dai
Author-Name: De-Cheng Yang
Author-X-Name-First: De-Cheng
Author-X-Name-Last: Yang
Title: Positive Feedback Trading and Investor Sentiment
Abstract: 
 This article examines how investor sentiment affects positive feedback trading behavior. By analyzing the daily closing total return of CSI 300 index and its individual returns of stocks, we find that relatively high or low sentiment induces active positive feedback trading. With a specific indicator of sentiment, we explain the microstructure setting of the relationship between positive feedback trading and sentiment. We adopt the classical feedback model from Sentana and Wadhwani (1992) to measure positive feedback trading behavior. By adding sentiment factor to the model, we successfully explain how sentiment influences the behavior of both feedback traders and rational investors. The empirical findings suggest that positive feedback traders are more likely to trade when the prices of most securities move forward together. When the sentiment of feedback traders is at an intermediate level, the feedback trading behavior is insignificant.
Journal: Emerging Markets Finance and Trade
Pages: 2400-2408
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2018.1469003
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1469003
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:10:p:2400-2408




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Hashim Shah
Author-X-Name-First: Muhammad Hashim
Author-X-Name-Last: Shah
Author-Name: Xiao Zuoping
Author-X-Name-First: Xiao
Author-X-Name-Last: Zuoping
Author-Name:  Abdullah
Author-X-Name-First: 
Author-X-Name-Last: Abdullah
Author-Name: Muhammad Kashif Shah
Author-X-Name-First: Muhammad Kashif
Author-X-Name-Last: Shah
Title: The Effect of a Complex Ownership Structure and Judicial Efficiency on Leverage: Evidence from Pakistani Listed Companies
Abstract: 
 We explore the impact of complex ownership structure and judicial efficiency on firm leverage at Pakistani pyramid firms. Ratio of controlling to ownership rights is much higher at Pakistani firms than in other economies, which motivates us to study its impact on leverage. Our results reveal that complex internal structure at Pakistani pyramid firms is positively related to leverage. We find that the presence of efficient courts weaken the impact of complex ownership structure on leverage at pyramid firms. Contrary to the literature, we find that the political connections of pyramid firms in Pakistan are not related to corporate leverage.
Journal: Emerging Markets Finance and Trade
Pages: 2258-2277
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2018.1469404
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1469404
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:10:p:2258-2277




Template-Type: ReDIF-Article 1.0
Author-Name: Guangyu Chen
Author-X-Name-First: Guangyu
Author-X-Name-Last: Chen
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Bin Ye
Author-X-Name-First: Bin
Author-X-Name-Last: Ye
Title: Is China’s Manufacturing Industry Efficient? Evidence from an Energy-Rebound Effect Perspective
Abstract: 
 Majority of the increase in global energy consumption is from China; hence, studying energy issues, especially in China’s manufacturing industry (CMI), is worthwhile and of much interest in the academic field. Based on the translog cost function, we develop a research framework to study the rebound effect of CMI. Considering the effect of asymmetric energy price, we augment the energy-cost function with asymmetric influence constraint of energy price. Again, we add time series data of CMI’s capital, labor, energy, and mid-input to the model to calculate the direct rebound effect of CMI. We find that the rebound effect of CMI is 44.2%, and CMI still has large energy-conservation potentials. Based on the results of this study, some policy recommendations are provided.
Journal: Emerging Markets Finance and Trade
Pages: 2245-2257
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2018.1471394
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1471394
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:10:p:2245-2257




Template-Type: ReDIF-Article 1.0
Author-Name: Li Xiong
Author-X-Name-First: Li
Author-X-Name-Last: Xiong
Author-Name: Biyan Tang
Author-X-Name-First: Biyan
Author-X-Name-Last: Tang
Author-Name: Ke Xu
Author-X-Name-First: Ke
Author-X-Name-Last: Xu
Author-Name: Gang Wu
Author-X-Name-First: Gang
Author-X-Name-Last: Wu
Title: Risk Awareness of Interpersonal Trust and Entrepreneurship in China: Evidence from Survey Data
Abstract: 
 This paper aims to build a theoretical framework for the influence of risk awareness of interpersonal trust (RAIT) on entrepreneurship, and explores the influence of RAIT on entrepreneurship with the micro survey data from the Chinese General Social Survey (CGSS) 2010–2013. The study found that, individuals with higher level of RAIT, their probability of starting new business will increase significantly, and with every increase of RAIT level, the probability of business venturing increase almost 4.0%. No mediation effects of information screening and cooperative mechanism are found in the relationship between RAIT and entrepreneurship. Moreover, during the venturing process, risks accompanying interpersonal trust cannot be reduced by social input; the reduction occurs only in eastern China where the economic system and the industrial development standards are more comprehensive and mature. This paper contributes to the literatures in the following two areas: it provides new evidence on how to deal with risks in the entrepreneurship process that accompanying interpersonal trust; meanwhile, it provides an explanatory mechanism on how the risk awareness affects business venturing.
Journal: Emerging Markets Finance and Trade
Pages: 2278-2295
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2018.1471595
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1471595
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Template-Type: ReDIF-Article 1.0
Author-Name: Bae-Geun Kim
Author-X-Name-First: Bae-Geun
Author-X-Name-Last: Kim
Title: Decomposing Labor Share Movements in a Small Open Economy: The Case of Korea
Abstract: 
 Small open economies import substantial amounts of materials from abroad, the prices of which are determined in international markets. This paper presents a theoretical model that shows the potential determinants of the labor share in such economies, and, as a case study, decomposes labor share movements in Korea using a structural VAR. The VAR estimates the effect of materials price changes on the labor share as well as the effect of other potential factors. It is found that a rise in materials prices lowers the labor share; the short-run contribution of materials price fluctuations to labor share movements can be quite large whereas their long-run contribution is modest.
Journal: Emerging Markets Finance and Trade
Pages: 2296-2314
Issue: 10
Volume: 54
Year: 2018
Month: 8
X-DOI: 10.1080/1540496X.2018.1482457
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1482457
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:10:p:2296-2314




Template-Type: ReDIF-Article 1.0
Author-Name: Kyung Soon Kim
Author-X-Name-First: Kyung Soon
Author-X-Name-Last: Kim
Author-Name: Jin Hwon Lee
Author-X-Name-First: Jin Hwon
Author-X-Name-Last: Lee
Author-Name: Chune Young Chung
Author-X-Name-First: Chune Young
Author-X-Name-Last: Chung
Title: Accrual Quality and Opportunistic Seasoned Equity Offering in the Korean Stock Market
Abstract: 
 We examine accrual quality (AQ) and its relationship with opportunistic seasoned equity offering (SEO) in the emerging Korean stock market. According to our empirical results, SEO firms with lower AQ tend to show higher abnormal returns around SEO announcement and significantly lower long-term performance after SEO. These results are more evident for SEO firms in which influence of institutional investors is weak. These findings suggest that poor AQ may be an important predictor of incentive for opportunistic SEOs and that the incentive may strengthen when institutional investors’ monitoring role weakens.
Journal: Emerging Markets Finance and Trade
Pages: 140-157
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1026732
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1026732
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S3:p:140-157




Template-Type: ReDIF-Article 1.0
Author-Name: Jae-Seung Baek
Author-X-Name-First: Jae-Seung
Author-X-Name-Last: Baek
Title: Corporate Finance for Advancement in Emerging Markets
Journal: Emerging Markets Finance and Trade
Pages: 1-2
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1039837
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039837
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Template-Type: ReDIF-Article 1.0
Author-Name: Yongwoong Lee
Author-X-Name-First: Yongwoong
Author-X-Name-Last: Lee
Author-Name: Ser-Huang Poon
Author-X-Name-First: Ser-Huang
Author-X-Name-Last: Poon
Title: Loan Portfolio Loss Models With More Flexible Asymmetry and Tails for Korean Banks and a Comparison of Their Regional Concentrations
Abstract: 
 This article extends the Vasicek model for the Gaussian single-factor portfolio loss distribution to a skew-elliptical multifactor model and proposes loss models with more flexible asymmetry and fat tails for credit portfolios. By comparing the sensitivities of portfolio loss value-at-risk with respect to the model parameters, we show that the portfolio loss distributions depend not only on the model parameters but also on the multivariate nature of the factor model. With the empirical tests based on the Korean banks’ nonperforming loan rates, our proposed models outperform the Vasicek model and provide more appropriate asset correlation and a systematic risk measure reflecting the characteristics of bank-level nonperforming loan rates. In addition, we measure the regional concentration of all the Korean banks using the Herfindahl-Hirschman index. We find that the regional concentration of a bank is strongly related to bank-level systematic risk, and the multivariate nature of asset return has a huge effect on bank-level systematic risk for the given regional concentration of a bank.
Journal: Emerging Markets Finance and Trade
Pages: 118-139
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1039864
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039864
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S3:p:118-139




Template-Type: ReDIF-Article 1.0
Author-Name: Hakkon Kim
Author-X-Name-First: Hakkon
Author-X-Name-Last: Kim
Title: Debt, Maturity, and Corporate Governance: Evidence from Korea
Abstract: 
 Using a unique survey data set, I examine how corporate governance practices of listed Korean firms can affect debt ratio and debt maturity structure. I find that firms with poor governance tend to have a higher debt ratio (especially short-term debt ratio) than firms with good governance. I also show that the documented relationships between corporate governance and debt ratio and between corporate governance and debt maturity are not significantly different between chaebol (Korean business group) and non-chaebol firms. These findings suggest that (short-term) debt financing can be used as a monitoring tool to mitigate agency problems because financial intermediaries monitor the managers of the borrowing firms. This study contributes to the corporate governance literature by providing evidence that debt capital, especially short-term debt, can be used as a complementary monitoring tool for poorly governed firms in an emerging economy.
Journal: Emerging Markets Finance and Trade
Pages: 3-19
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1039898
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039898
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S3:p:3-19




Template-Type: ReDIF-Article 1.0
Author-Name: Jae-Seung Baek
Author-X-Name-First: Jae-Seung
Author-X-Name-Last: Baek
Author-Name: Jungmin Kim
Author-X-Name-First: Jungmin
Author-X-Name-Last: Kim
Title: Cofounders and the Value of Family Firms
Abstract: 
 Prior literature documents the positive effect of the founder’s role on family-firm value. In this study, we examine whether the existence of cofounders has any effect on family firm value. We find that the outperformance of founder family firms is concentrated in family firms with cofounders as measured by Tobin’s q. Our results are robust when we use return on assets (ROA) as an alternative measure. These findings suggest that the presence of cofounders would reduce the potential risk arising from the absence of the sole founder and the power concentration in the sole founder and thus lead to higher firm value.
Journal: Emerging Markets Finance and Trade
Pages: 20-33
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1039899
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039899
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Template-Type: ReDIF-Article 1.0
Author-Name: Youngsoo Choi
Author-X-Name-First: Youngsoo
Author-X-Name-Last: Choi
Author-Name: Steven J. Jordan
Author-X-Name-First: Steven J.
Author-X-Name-Last: Jordan
Author-Name: Wonchang Lee
Author-X-Name-First: Wonchang
Author-X-Name-Last: Lee
Title: Information Content in Sneer Asymmetry: An Application to Out-of-Sample Implied Volatility Forecasting
Abstract: 
 The ad hoc Black-Scholes (AHBS) is one of the most widely used option valuation models among practitioners. The main contribution of this study is that we improve the out-of-sample forecast accuracy of the AHBS model. First, we make the empirical observation that the call and put sneers are discontinuous and have different slopes when moneyness is equal to one. Next, we propose a new data usage methodology that incorporates the information contained in the asymmetric response of the call and put sneers. Our new method provides more accurate out-of-sample forecasts for several intraday time horizons. Our results are robust across several dimensions, including time period, forecast horizon, moneyness, and model specification.
Journal: Emerging Markets Finance and Trade
Pages: 34-51
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1039900
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039900
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S3:p:34-51




Template-Type: ReDIF-Article 1.0
Author-Name: Keebong Park
Author-X-Name-First: Keebong
Author-X-Name-Last: Park
Title: Price Movement After an Information Event Detected by a New Measure of Private Information Ratio
Abstract: 
 The private information ratio (PIR) is measured by a ratio of abnormal returns of a security, which represents security-j-specific information to the unexpected return of equally weighted Korean Composite Stock Price Index (KOSPI) representing broad stock market information. Price movements after a large price movement are examined in two cases: large security-j-specific information for the top (bottom) 10 percent of the PIR distribution and large market-wide information between 40 and 60 percent of the PIR distribution. Two types of cumulative abnormal returns, $$CA{R_{j,{S_1}}}$$CARj,S1
 and $$CR{E_{j,{S_2}}}$$CREj,S2
, are computed to see price movements after event days. More supports for return continuations than for return reversals are found, leading to more support for market efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 52-65
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1039901
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039901
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Template-Type: ReDIF-Article 1.0
Author-Name: Sang Koo Kang
Author-X-Name-First: Sang Koo
Author-X-Name-Last: Kang
Author-Name: Hyung Cheol Kang
Author-X-Name-First: Hyung Cheol
Author-X-Name-Last: Kang
Author-Name: Joonghyuk Kim
Author-X-Name-First: Joonghyuk
Author-X-Name-Last: Kim
Author-Name: Noolee Kim
Author-X-Name-First: Noolee
Author-X-Name-Last: Kim
Title: Insiders’ Pre-IPO Ownership, Underpricing, and Share-Selling Behavior: Evidence from Korean IPOs
Abstract: 
 We examine the effects of insiders’ ownership type and their pre-IPO ownership changes as well as levels on IPO pricing and insiders’ share-selling behaviors in the Korean IPO market. We find that insiders’ direct ownership level is positively associated with underpricing. We also find that when insiders increase their direct ownership in pre-IPO periods, the probability of insiders’ selling shares after lockup expirations and the amount sold both increase. However, these results do not hold when insiders hold indirect ownership, implying that the role of insiders’ ownership in IPO is limited to the case of direct ownership in the Korean market.
Journal: Emerging Markets Finance and Trade
Pages: 66-84
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1039902
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039902
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S3:p:66-84




Template-Type: ReDIF-Article 1.0
Author-Name: Wankeun Oh
Author-X-Name-First: Wankeun
Author-X-Name-Last: Oh
Author-Name: Seungho Park
Author-X-Name-First: Seungho
Author-X-Name-Last: Park
Title: The Relationship Between Corporate Social Responsibility and Corporate Financial Performance in Korea
Abstract: 
 This study examines the relationships between corporate social responsibility (CSR) and corporate financial performance (CFP) for the period 2004–2010 in Korea. This study performs difference generalized method of moments (GMM) estimation on a dynamic panel model. The results for the entire industry show CSR has a positive effect on CFP in Korea, and the stakeholder theory seems valid. Industry analysis shows different results by each industry’s characteristics. The results also reveal the effect of CSR on CFP did not increase after the global financial crisis. The results suggest companies should improve CFP by taking a strategic approach to CSR.
Journal: Emerging Markets Finance and Trade
Pages: 85-94
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1039903
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039903
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S3:p:85-94




Template-Type: ReDIF-Article 1.0
Author-Name: Kwanghee Cho
Author-X-Name-First: Kwanghee
Author-X-Name-Last: Cho
Author-Name: Kyoung-min Kwon
Author-X-Name-First: Kyoung-min
Author-X-Name-Last: Kwon
Author-Name: Han Yi
Author-X-Name-First: Han
Author-X-Name-Last: Yi
Author-Name: Yongsuk Yun
Author-X-Name-First: Yongsuk
Author-X-Name-Last: Yun
Title: The Effect of International Financial Reporting Standards Adoption on the Relation Between Earnings Quality and Information Asymmetry in Korea
Abstract: 
 Whereas prior studies provide mixed results on whether the adoption of International Financial Reporting Standards (IFRS) either improves earnings quality or lowers information asymmetry, none examines whether the adoption has indeed altered the assumed negative relation between earnings quality and information asymmetry. Using Korean data with a difference-in-difference design, we address the question by examining whether IFRS adoption has strengthened the assumed negative relation. We fail to document such evidence. This study raises questions regarding the validity of prior studies’ findings that IFRS adoption has helped capital market participants in Korea via improved earnings quality or lower information asymmetry.
Journal: Emerging Markets Finance and Trade
Pages: 95-117
Issue: S3
Volume: 51
Year: 2015
Month: 5
X-DOI: 10.1080/1540496X.2015.1039905
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1039905
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S3:p:95-117




Template-Type: ReDIF-Article 1.0
Author-Name: Jyri Kinnunen
Author-X-Name-First: Jyri
Author-X-Name-Last: Kinnunen
Author-Name: Minna Martikainen
Author-X-Name-First: Minna
Author-X-Name-Last: Martikainen
Title: Expected Returns and Idiosyncratic Risk: Industry-Level Evidence from Russia
Abstract: 
 We explore a relation between expected returns and idiosyncratic risk in Russia. Investors in the Russian stock market cannot fully diversify their portfolios due to transaction costs, information gathering and processing costs, and shortcomings in investor protection. This implies that investors demand a premium for idiosyncratic risk. We estimate the price of idiosyncratic risk using MIDAS regressions and a cross section of Russian industry portfolios. We find that idiosyncratic risk is economically significant and commands a negative (positive) premium, on average, of 10.0% (8.0) per year before (after) the global financial crisis in 2008. The results remain unaffected after controlling for global pricing factors and return reversal.
Journal: Emerging Markets Finance and Trade
Pages: 2528-2544
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2016.1210509
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1210509
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2528-2544




Template-Type: ReDIF-Article 1.0
Author-Name: Ryota Nakatani
Author-X-Name-First: Ryota
Author-X-Name-Last: Nakatani
Title: The Effects of Productivity Shocks, Financial Shocks, and Monetary Policy on Exchange Rates: An Application of the Currency Crisis Model and Implications for Emerging Market Crises
Abstract: 
 What kind of shock affects exchange rate dynamics? How much of an effect does the monetary policy have on exchange rates? To answer these questions empirically based on the currency crisis model, I use panel data on 51 emerging countries from 1980 to 2011, identify shocks, and apply instrumental variable methods. I found that both productivity shocks and shocks to a country’s risk premium affect exchange rates and a 1 percentage point increase in the policy interest rate is associated with a 1 percentage point appreciation of domestic currency. I further apply this method to Asian and Latin-American crises.
Journal: Emerging Markets Finance and Trade
Pages: 2545-2561
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2016.1216836
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216836
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Template-Type: ReDIF-Article 1.0
Author-Name: Seda Köymen Özer
Author-X-Name-First: Seda
Author-X-Name-Last: Köymen Özer
Author-Name: Selin Sayek Böke
Author-X-Name-First: Selin
Author-X-Name-Last: Sayek Böke
Title: The Characteristics of Domestic Firms: Materializing Productivity Spillovers from FDI
Abstract: 
 Using detailed firm-level data from Turkey, for 1991–2001, we analyze the importance of domestic firm capabilities in allowing for productivity spillovers from foreign direct investment. The absorptive capacities we investigate are technology gap, export status, and human capital of domestic firms. The study contributes to the literature by offering an alternative measure of human capital that would be more relevant in a country where there are labor market imperfections. The results provide supporting evidence for the role played by the human capital of domestic firms, i.e., the ratio of skilled, in realizing mainly horizontal spillovers.
Journal: Emerging Markets Finance and Trade
Pages: 2562-2584
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2016.1219943
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1219943
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2562-2584




Template-Type: ReDIF-Article 1.0
Author-Name: Merike Kukk
Author-X-Name-First: Merike
Author-X-Name-Last: Kukk
Author-Name: Karsten Staehr
Author-X-Name-First: Karsten
Author-X-Name-Last: Staehr
Title: Macroeconomic Factors in the Dynamics of Corporate and Household Saving: Evidence from Central and Eastern Europe
Abstract: 
 This article uses panel data estimations on annual data from 10 Central and Eastern European countries to assess the effect of different macroeconomic variables on the dynamics of corporate and household saving. The analyses show that changes in the macroeconomic environment affect the saving rates in both sectors, but with marked differences across the two sectors. The differences are most pronounced for the output gap, the real interest rate, the inflation rate, and the current account balance. Some variables, including the unemployment rate and changes in the real exchange rate, are unimportant in both sectors. The different results for the two sectors underscore the importance of analyzing the factors driving the dynamics of corporate and household saving separately.
Journal: Emerging Markets Finance and Trade
Pages: 2585-2608
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2016.1262759
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1262759
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2585-2608




Template-Type: ReDIF-Article 1.0
Author-Name: Yongseung Jung
Author-X-Name-First: Yongseung
Author-X-Name-Last: Jung
Author-Name: Soyoung Kim
Author-X-Name-First: Soyoung
Author-X-Name-Last: Kim
Author-Name: Doo Yong Yang
Author-X-Name-First: Doo Yong
Author-X-Name-Last: Yang
Title: Optimal Macroprudential Policies and House Prices in Korea
Abstract: 
 This article investigates the impacts of the macroprudential policy of limitation on credit growth in housing market on Korean economy to find empirical and theoretical implications. Empirical results based on VAR models show that macroprudential policies like LTV and DTI in Korea have significant and persistent effect on real household credit and real house price. This article further addresses implications of optimal macroprudential and monetary policy in Korea by employing a standard DSGE model. The results suggest that the time-varying macroprudential policy responding to the borrower’s debt to income ratio is most effective in stabilizing household debt among the macroprudential policy rules considered, but produces a moderate downturn of the economy.
Journal: Emerging Markets Finance and Trade
Pages: 2419-2439
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1322503
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1322503
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2419-2439




Template-Type: ReDIF-Article 1.0
Author-Name: Mihye Lee
Author-X-Name-First: Mihye
Author-X-Name-Last: Lee
Title: The Impact of Exchange Rate on Firm Performance: Evidence from Korean Firms
Abstract: 
 This article analyzes the role of exchange rate in explaining firm investment between 2006 and 2014, considering both export and import channels as possible factors along with other firm-level characteristics based on the Census on Establishments. Using the detailed information on exports and imports from the data, we are able to capture the cost and revenue channel more precisely compared to the previous existing literature. The empirical analysis shows that the export channel appears to be insignificant as opposed to conventional wisdom. However, the import channel is significant and shows that currency appreciation may not necessarily decrease a firm’s investment level.
Journal: Emerging Markets Finance and Trade
Pages: 2440-2449
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1322504
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1322504
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2440-2449




Template-Type: ReDIF-Article 1.0
Author-Name: Tamer Bakiciol
Author-X-Name-First: Tamer
Author-X-Name-Last: Bakiciol
Title: The Impact of Durable Relationship with Banks when Crisis Hits
Abstract: 
 Firms develop relationships with their banks in order to ensure access to financing when credit conditions deteriorate in time of crisis. I investigate the effect of bank-firm relationships in Turkey where 90 percent of a firm’s financial debt is obtained through bank loans. I find that adjusted for loan terms and firm-fixed effects, borrowers with past relationships with incumbent banks have lower risk-adjusted financing costs. Furthermore, lower financing costs associated with relationship are even more pronounced during the 2008–2009 financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 2609-2624
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1326027
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1326027
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2609-2624




Template-Type: ReDIF-Article 1.0
Author-Name: Tack Yun
Author-X-Name-First: Tack
Author-X-Name-Last: Yun
Title: Natural Exchange Rate and Its Implications for the Purchasing Power Parity Puzzle
Abstract: 
 The notion of purchasing power parity has been an important building block in the theory of nominal and real exchange rates and for many theoretic models in international economics, leading to the purchasing power parity puzzle. The central issue of the puzzle is how to reconcile volatile short-term movements of real exchange rates (defined as nominal exchange rates adjusted for differences in national price levels) with very slow convergence to the parity condition. The main emphasis of this article is to show that the slow adjustment of the natural exchange rate is responsible for the well-known slow convergence of the real exchange rate to the long-run parity condition. The novel element of this article is to identify the relative importance between the financial channel and output gap channel of the purchasing power parity puzzle. The empirical findings of this article suggest that the financial channel is a dominant factor to explain persistent deviations of the real exchange rate from its long-run level.
Journal: Emerging Markets Finance and Trade
Pages: 2397-2418
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1326381
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1326381
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2397-2418




Template-Type: ReDIF-Article 1.0
Author-Name: Jihae Kim
Author-X-Name-First: Jihae
Author-X-Name-Last: Kim
Author-Name: Soyoung Kim
Author-X-Name-First: Soyoung
Author-X-Name-Last: Kim
Title: Effects of Monetary Policy Shocks on Farm Prices and Exchange Rates in Korea
Abstract: 
 The effects of monetary policy shocks on farm prices and exchange rates in Korea are empirically investigated by using vector auto-regression models with sign restrictions on impulse responses. The main empirical results are as follows. First, (contractionary) monetary policy shocks have significantly negative effects on real farm prices. Second, the SR effect on farm prices is significant but short-lived. The dynamic response of farm prices is consistent with the predictions of the “overshooting” model. Third, the effects of monetary policy shocks on farm prices are more significant than the effects of monetary policy shocks on exchange rates.
Journal: Emerging Markets Finance and Trade
Pages: 2450-2462
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1329143
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1329143
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2450-2462




Template-Type: ReDIF-Article 1.0
Author-Name: Minjung Kim
Author-X-Name-First: Minjung
Author-X-Name-Last: Kim
Author-Name: Syngjoo Choi
Author-X-Name-First: Syngjoo
Author-X-Name-Last: Choi
Author-Name: Jungmin Lee
Author-X-Name-First: Jungmin
Author-X-Name-Last: Lee
Title: Economic System and Financial Literacy: Evidence from North Korean Refugees
Abstract: 
 We compare the financial literacy of two groups of Koreans living in South Korea, namely, native-born South Koreans and North Korean refugees, who were born and raised in contrasting economic systems. Examining the financial literacy of North Korean refugees and its changes over time after their settlement in a capitalistic society underscores the importance of institutional environments in developing financial literacy. We find that North Korean refugees, with very limited access to financial markets in their home country, are significantly less financially literate than native-born South Koreans. The gap is significant even after controlling for cognitive ability, which is also starkly different between the two groups. The financial literacy of the refugees increases over time during their settlement in South Korea, but the magnitude of such improvement is insubstantial. Our findings suggest that financial literacy is developed at the early life stages and cannot be easily modified at the later stages.
Journal: Emerging Markets Finance and Trade
Pages: 2505-2527
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1340880
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1340880
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2505-2527




Template-Type: ReDIF-Article 1.0
Author-Name: Seung-Ho Jung
Author-X-Name-First: Seung-Ho
Author-X-Name-Last: Jung
Author-Name: Ohik Kwon
Author-X-Name-First: Ohik
Author-X-Name-Last: Kwon
Author-Name: Sung Min Mun
Author-X-Name-First: Sung Min
Author-X-Name-Last: Mun
Title: Dollarization, Seigniorage, and Prices: The Case of North Korea
Abstract: 
 This study employs a general equilibrium monetary search model to examine the effects of the recent dollarization in North Korea on seigniorage and prices. Maximum seigniorage is generated at a high rate of money growth when dollarization is mild. However, under a high degree of dollarization seigniorage declines sharply when the money growth rate is high. Accordingly, seigniorage can be increased by de-dollarizing the economy through lowering the money growth rate. This finding implies that the post-2013 price stabilization may be a result of the restriction on printing of money with the aim of increasing seigniorage. This finding also recognizes that the North Korean authorities have little room for maneuver on monetary policy under the conditions of widespread dollarization.
Journal: Emerging Markets Finance and Trade
Pages: 2463-2475
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1344833
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1344833
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2463-2475




Template-Type: ReDIF-Article 1.0
Author-Name: Yanqing Jiang
Author-X-Name-First: Yanqing
Author-X-Name-Last: Jiang
Author-Name: Jinghai Zheng
Author-X-Name-First: Jinghai
Author-X-Name-Last: Zheng
Title: Economic Growth or Environmental Sustainability? Drivers of Pollution in the Yangtze River Delta Urban Agglomeration in China
Abstract: 
 In this article we examine the effects of foreign trade, economic growth, and inter-city strategic interaction on pollution in the Yangtze River Delta (YRD) Urban Agglomeration in China. We find that when the effects of many factors are controlled for, foreign trade is positively related to pollution intensity in the YRD cities. Our results also support the Environmental Kuznets Curve by showing that when per capita income grows larger, pollution intensity first rises and then falls. We also find that ceteris paribus, a higher level of city human capital intensity is associated with a lower level of city pollution intensity. In addition, our results show that there exists inter-city strategic interaction among the governments of the YRD cities in determining their effort levels with respect to environmental protection.
Journal: Emerging Markets Finance and Trade
Pages: 2625-2643
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1370580
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1370580
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:11:p:2625-2643




Template-Type: ReDIF-Article 1.0
Author-Name: Kyoji Fukao
Author-X-Name-First: Kyoji
Author-X-Name-Last: Fukao
Author-Name: Tomohiko Inui
Author-X-Name-First: Tomohiko
Author-X-Name-Last: Inui
Author-Name: Hyeog Ug Kwon
Author-X-Name-First: Hyeog Ug
Author-X-Name-Last: Kwon
Title: The Economic Impact of Korean Reunification on Major Trade Partners: An Empirical Analysis Based on the World Input–Output Tables
Abstract: 
 Using the 2011 Word Input–Output Database (WIOD), we examine the economic impact of Korean reunification on Japan, China, the United States, and Russia by industry. We conduct a standard Leontief-type analysis with the assumption of supply constraints in the unified Korea. The results of our analysis show that Korea’s major trade partners would experience a substantial increase in GDP and employment through Korea reunification. In particular, we found that China would benefit the most from Korea reunification.
Journal: Emerging Markets Finance and Trade
Pages: 2476-2504
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1371589
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1371589
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Emerging Markets Finance and Trade
Pages: 2644-2644
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1384635
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1384635
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Template-Type: ReDIF-Article 1.0
Author-Name: Byung-Yeon Kim
Author-X-Name-First: Byung-Yeon
Author-X-Name-Last: Kim
Author-Name: Soyoung Kim
Author-X-Name-First: Soyoung
Author-X-Name-Last: Kim
Title: South and North Korea: Economic Challenges and Policy Issues
Journal: Emerging Markets Finance and Trade
Pages: 2395-2396
Issue: 11
Volume: 53
Year: 2017
Month: 11
X-DOI: 10.1080/1540496X.2017.1385287
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1385287
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Template-Type: ReDIF-Article 1.0
Author-Name: Zoltán Jakab
Author-X-Name-First: Zoltán
Author-X-Name-Last: Jakab
Author-Name: István Kónya
Author-X-Name-First: István
Author-X-Name-Last: Kónya
Title: An Open Economy DSGE Model with Search-and-Matching Frictions: The Case of Hungary
Abstract: 
 This article builds and estimates a medium scale, small open economy DSGE model augmented with search-and-matching frictions in the labor market, and different wage setting behavior in new and existing jobs. The model is estimated using Hungarian data between 2001–2008. We find that: (i) the inclusion of matching frictions significantly improves the model’s empirical fit; (ii) the extent of new hires wage rigidity is quantitatively important for key macro variables; (iii) labor market shocks do not play an important role in inflation dynamics, but the structure of the labor market influences the monetary transmission mechanism.
Journal: Emerging Markets Finance and Trade
Pages: 1606-1626
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2014.1000174
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.1000174
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Template-Type: ReDIF-Article 1.0
Author-Name: Vedat Akgiray
Author-X-Name-First: Vedat
Author-X-Name-Last: Akgiray
Author-Name: Sayad Baronyan
Author-X-Name-First: Sayad
Author-X-Name-Last: Baronyan
Author-Name: Emrah Sener
Author-X-Name-First: Emrah
Author-X-Name-Last: Sener
Author-Name: Osman Yılmaz
Author-X-Name-First: Osman
Author-X-Name-Last: Yılmaz
Title: Predictability of Emerging Market Local Currency Bond Risk Premia
Abstract: 
 This article investigates the source of predictability of emerging market (EM) local currency bond risk premia by using a dynamic factor approach based on a large panel of economic and financial time series. We find strong predictable variation in EM local currency excess bond returns that is associated with macroeconomic activity. We provide evidence that the main predictor variables are the factors based on real economic activity that are highly correlated with measures of industrial and manufacturing production; however, factors based on global financial factors also contain information about the future local currency bond returns. The predictive power of the extracted factors is both statistically significant and economically important. Our research has important implications for policymakers and pension fund managers.
Journal: Emerging Markets Finance and Trade
Pages: 1627-1646
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2015.1011555
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011555
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Template-Type: ReDIF-Article 1.0
Author-Name: Malin Song
Author-X-Name-First: Malin
Author-X-Name-Last: Song
Author-Name: Yuanxiang Zhou
Author-X-Name-First: Yuanxiang
Author-X-Name-Last: Zhou
Title: Quantitative Analysis of Foreign Trade and Environmental Efficiency in China
Abstract: 
 This article analyzes the relationships among trade, the economy, and environmental quality in China. First, in the context of these relationships, the Super-SBM model is used to calculate the environmental efficiencies of thirty Chinese provinces and cities to obtain the degrees of regional disparity. Second, China’s provincial panel data from 2003 and 2012 are used to establish an influential factor indicator system of environmental efficiency. A section-weighted fixed effect model then provides insights about influential factors such as spatial heterogeneity. Third, the article establishes a variable coefficient model to identify the relationships among the objects of the study and divides the Chinese regions into four types. The suggestions include enhancing environmental and business regulations to ensure equilibrium between trade, the environment, and local economies.
Journal: Emerging Markets Finance and Trade
Pages: 1647-1660
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2015.1011559
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011559
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Template-Type: ReDIF-Article 1.0
Author-Name: Néstor Gandelman
Author-X-Name-First: Néstor
Author-X-Name-Last: Gandelman
Author-Name: Alejandro Rasteletti
Author-X-Name-First: Alejandro
Author-X-Name-Last: Rasteletti
Title: The Impact of Bank Credit on Employment Formality: Evidence from Uruguay
Abstract: 
 This article examines the effect of bank credit on employment formalization in Uruguay. Using a difference-in-differences methodology the article finds that financial deepening decreases informality, especially in more financially dependent sectors. In addition, the effect is found to be greater among women and older workers. In the period under analysis the economy underwent a severe economic crisis and bank credit contracted sharply, but we find no evidence that the effect of bank credit on employment formality changed over time.
Journal: Emerging Markets Finance and Trade
Pages: 1661-1678
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2015.1024084
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1024084
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Template-Type: ReDIF-Article 1.0
Author-Name: Shujian Zhang
Author-X-Name-First: Shujian
Author-X-Name-Last: Zhang
Title: Fiscal Decentralization, Budgetary Transparency, and Local Government Size in China
Abstract: 
 This article makes use of panel data for 31 provinces between 1985 and 2010 and specifies a dynamic panel model to investigate the determinants of local government size in China and achieved several conclusions: (1) the fiscal decentralization since TSS reform in 1994 has increased the local government size; (2) budgetary transparency has a U-shape nonlinear effect on local government size; (3) fiscal revenue is the important factor to drive the overexpansion of local government size in China; and (4) local government size has a strong dependence of past path.
Journal: Emerging Markets Finance and Trade
Pages: 1679-1697
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2016.1142213
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1142213
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Template-Type: ReDIF-Article 1.0
Author-Name: Sang Hoon Kang
Author-X-Name-First: Sang Hoon
Author-X-Name-Last: Kang
Author-Name: Ron McIver
Author-X-Name-First: Ron
Author-X-Name-Last: McIver
Author-Name: Seong-Min Yoon
Author-X-Name-First: Seong-Min
Author-X-Name-Last: Yoon
Title: Modeling Time-Varying Correlations in Volatility Between BRICS and Commodity Markets
Abstract: 
 This article investigates the asymmetric and long memory volatility properties and dynamic conditional correlations (DCCs) between Brazilian, Russian, Indian, Chinese, and South African (BRICS) stock markets and commodity (gold and oil) futures markets, using the trivariate DCC-fractionally integrated asymmetric power autoregressive conditional heteroskedasticity (FIAPARCH) model. We identify significant asymmetric and long memory volatility properties and DCCs for pairs of BRICS stock and commodity markets, and variability in DCCs and Markov Switching regimes during economic and financial crises. Finally, we analyze optimal portfolio weights and time-varying hedge ratios, demonstrating the importance of overweighting optimal portfolios between BRICS stock and commodity assets.
Journal: Emerging Markets Finance and Trade
Pages: 1698-1723
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2016.1143248
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1143248
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Template-Type: ReDIF-Article 1.0
Author-Name: Ji Wu
Author-X-Name-First: Ji
Author-X-Name-Last: Wu
Author-Name: Hosung Lim
Author-X-Name-First: Hosung
Author-X-Name-Last: Lim
Author-Name: Bang Nam Jeon
Author-X-Name-First: Bang Nam
Author-X-Name-Last: Jeon
Title: The Impact of Foreign Banks on Monetary Policy Transmission During the Global Financial Crisis of 2008–2009: Evidence from Korea
Abstract: 
 This article examines the impact of foreign banks on the monetary policy transmission mechanism in the Korean economy during the period from 2000 to 2012, with a specific focus on the lending behavior of banks with different types of ownership. Using bank-level panel data of the banking system in Korea, we present consistent evidence on the buffering impact that the foreign banks, especially foreign bank branches including US bank branches, on the effectiveness of the monetary policy transmission mechanism in Korea from the bank-lending channel perspective during the global financial crisis of 2008–2009.
Journal: Emerging Markets Finance and Trade
Pages: 1574-1586
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2016.1152796
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152796
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Template-Type: ReDIF-Article 1.0
Author-Name: Julide Yildirim
Author-X-Name-First: Julide
Author-X-Name-Last: Yildirim
Author-Name: Sureyya Dal
Author-X-Name-First: Sureyya
Author-X-Name-Last: Dal
Title: Social Transfers and Labor Force Participation Relation in Turkey: A Bivariate Probit Analysis
Abstract: 
 This study explores the association of labor force and social assistance program participation decisions in Turkey by employing the 2011 household budget survey (HBS) data. The issue is investigated in a bivariate probit framework, where the two incidences are jointly modeled. The differences in rural and urban behavior are also explored. Empirical results indicate that the more one works, the less one participates in social transfer program, and vice versa. Additionally, age, gender, household type and composition impact decision-making process of individuals both in urban and rural areas. The negative association between labor force participation and social transfer program participation is more pronounced in urban areas compared with the rural areas.
Journal: Emerging Markets Finance and Trade
Pages: 1515-1527
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2016.1158532
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1158532
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Template-Type: ReDIF-Article 1.0
Author-Name: Sunju Hwang
Author-X-Name-First: Sunju
Author-X-Name-Last: Hwang
Author-Name: Hahn Shik Lee
Author-X-Name-First: Hahn Shik
Author-X-Name-Last: Lee
Title: Predictability of Term Spread for Economic Activity with Liquidity Premium Theory
Abstract: 
 In this article, we explore the predictive content of the term spread based on the liquidity premium theory. We decompose the contribution of the spread into the effect of expected future changes in short rates and the effect of the term premium. We also examine whether the predictive power of the term spread for real economic activity can be enhanced by such a decomposition. The basic finding is that both the expectations effect and the term premium effect are relevant for predicting economic fluctuations. In particular, we find that the decomposition might lead to a better prediction for the business-cycle turning points than the usual term spread.
Journal: Emerging Markets Finance and Trade
Pages: 1528-1541
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2016.1158536
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1158536
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Template-Type: ReDIF-Article 1.0
Author-Name: Christian Mulder
Author-X-Name-First: Christian
Author-X-Name-Last: Mulder
Author-Name: Roberto Perrelli
Author-X-Name-First: Roberto
Author-X-Name-Last: Perrelli
Author-Name: Manuel Duarte Rocha
Author-X-Name-First: Manuel Duarte
Author-X-Name-Last: Rocha
Title: The Role of Bank and Corporate Balance Sheets on Early Warning Systems of Currency Crises—An Empirical Study
Abstract: 
 This study analyzes the role of bank and corporate balance sheets on early warning systems (EWS) of currency crises. Using firm-level data on debt structure, leverage, liquidity, and profitability, this study presents estimations of EWS for a panel of emerging markets. Using calibration experiments, we assess the performance of alternative EWS specifications in a comprehensive range of crisis-probability cut-offs‏. These models supplement EWS based on traditional macroeconomic indicators, improving forecasting performance substantially. The results support the third-generation models of currency crises and can assist policymakers on the design of surveillance strategies tailored for heterogeneous levels of risk tolerance and country specificities.
Journal: Emerging Markets Finance and Trade
Pages: 1542-1561
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2016.1158545
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1158545
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Template-Type: ReDIF-Article 1.0
Author-Name: Dmitri Blueschke
Author-X-Name-First: Dmitri
Author-X-Name-Last: Blueschke
Author-Name: Klaus Weyerstrass
Author-X-Name-First: Klaus
Author-X-Name-Last: Weyerstrass
Author-Name: Reinhard Neck
Author-X-Name-First: Reinhard
Author-X-Name-Last: Neck
Title: How Should Slovenia Design Fiscal Policies in the Government Debt Crisis?
Abstract: 
 We investigate how fiscal policies should be designed in Slovenia during the next few years. Using the SLOPOL model, an econometric model of the Slovenian economy, we analyze the effects of different fiscal policies using simulations and determine optimal fiscal policies for Slovenia. We show that the optimal design of fiscal policies is rather close to the austerity course as detailed in the Slovenian Stability Program, revealing the small scope of possible alternative fiscal stabilization policies available due to the relatively low effectiveness of the fiscal instruments with respect to their influence on the business cycle in the Slovenian economy.
Journal: Emerging Markets Finance and Trade
Pages: 1562-1573
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2016.1158549
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1158549
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Template-Type: ReDIF-Article 1.0
Author-Name: Gábor Bóta
Author-X-Name-First: Gábor
Author-X-Name-Last: Bóta
Author-Name: Mihály Ormos
Author-X-Name-First: Mihály
Author-X-Name-Last: Ormos
Author-Name: Imre Tarafás
Author-X-Name-First: Imre
Author-X-Name-Last: Tarafás
Title: Economics and Finance in Emerging Markets
Journal: Emerging Markets Finance and Trade
Pages: 1513-1514
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2016.1160717
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1160717
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Template-Type: ReDIF-Article 1.0
Author-Name: Osamah M. Al-Khazali
Author-X-Name-First: Osamah M.
Author-X-Name-Last: Al-Khazali
Author-Name: Guillaume Leduc
Author-X-Name-First: Guillaume
Author-X-Name-Last: Leduc
Author-Name: Mohammad Saleh Alsayed
Author-X-Name-First: Mohammad Saleh
Author-X-Name-Last: Alsayed
Title: A Market Efficiency Comparison of Islamic and Non-Islamic Stock Indices
Abstract: 
 This article examines the martingale difference hypothesis (MDH) and the random walk hypothesis (RWH) for nine conventional and nine Islamic stock indices: Asia-Pacific, Canadian, Developed Country, Emerging, European, Global, Japanese, UK, and United States. It investigates whether Islamic stock indices are more, less, or as efficient as their conventional counterparts. We test four sub-periods of bullish and bearish stock markets, together with the financial meltdown and its recovery, over the period 1997–2012. We use the Escanciano and Lobato’s (2009) automatic portmanteau test (AQ) and Deo’s (2000) test for the MDH. We also apply the automatic variance ratio test (AVR) developed by Choi (1999) and Kim (2009) for the RWH. Over the period from 1997 to 2012, we find that three conventional indices (Europe, Japan, and UK) are efficient, but that none of the Islamic indices are efficient in these markets. During the recent financial crisis, our results indicate slightly more efficiency for the Islamic indices than their conventional counterparts. Our study finds that overall the conventional indices are more efficient than their Islamic counterparts. Nevertheless, during periods of general downturns the Islamic indices have shown the same level of efficiency as their counterparts. Furthermore, it appears that during the last two sub-periods under study, the Islamic indices have moved toward efficiency, displaying the same level of efficiency as their counterparts.
Journal: Emerging Markets Finance and Trade
Pages: 1587-1605
Issue: 7
Volume: 52
Year: 2016
Month: 7
X-DOI: 10.1080/1540496X.2014.998572
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998572
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Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Yu Yu
Author-X-Name-First: Hui-Yu
Author-X-Name-Last: Yu
Author-Name: Chunghuey Huang
Author-X-Name-First: Chunghuey
Author-X-Name-Last: Huang
Author-Name: Yi-Hua Lin
Author-X-Name-First: Yi-Hua
Author-X-Name-Last: Lin
Author-Name: Chun-Li Tsai
Author-X-Name-First: Chun-Li
Author-X-Name-Last: Tsai
Title: The Impact of Information Transparency on Information Transfer
Abstract: 
 This paper contributes to the literature on how information transparency affects the intra-industry information transfers. Using data for Taiwanese firms covering the sample period 2005–2010, we separate the company announcements into good and bad news and test three hypotheses regarding how such announcements are transmitted to non–announcing firms under both low and high transparency and in a highly competitive industry setting. The results indicate significant intra–industry information transfers, and the results are sensitive to the degree of information transparency of companies and industry competitiveness. We discuss the policy implications of the findings.
Journal: Emerging Markets Finance and Trade
Pages: 776-785
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2015.1093850
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1093850
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:4:p:776-785




Template-Type: ReDIF-Article 1.0
Author-Name: Hao Fang
Author-X-Name-First: Hao
Author-X-Name-Last: Fang
Author-Name: Yang-Cheng Lu
Author-X-Name-First: Yang-Cheng
Author-X-Name-Last: Lu
Author-Name: Hwey-Yun Yau
Author-X-Name-First: Hwey-Yun
Author-X-Name-Last: Yau
Author-Name: Yen-Hsien Lee
Author-X-Name-First: Yen-Hsien
Author-X-Name-Last: Lee
Title: Causes and Impacts of Foreign and Domestic Institutional Investors’ Herding in the Taiwan Stock Market
Abstract: 
 This study examines whether herding exists among foreign institutional investors (FIIs), what is the cause of their herding, and whether both foreign and domestic institutional investors are more likely to follow their similar types in the Taiwan stock market. By testing the cross-sectional dependence for FIIs’ stocks in two adjacent months, we demonstrate that the FIIs’ cascades mainly result from their herding. We find little evidence that FIIs’ herding behavior is driven by habit investing. The momentum trading of FIIs is found to account for little of their herding. Moreover, investigative herding, rather than informational cascades is the main reason for FIIs’ herding. One of our contributions may be to find that FIIs’ cascades mainly resulting from their herding does not change in the bullish and bearish Taiwan stock market. This study further finds that FIIs and dealers are more likely to follow similar-type institutions than different-type institutions, respectively.
Journal: Emerging Markets Finance and Trade
Pages: 727-745
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2015.1103126
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103126
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Template-Type: ReDIF-Article 1.0
Author-Name: Kuangnan Fang
Author-X-Name-First: Kuangnan
Author-X-Name-Last: Fang
Author-Name: Ji Wu
Author-X-Name-First: Ji
Author-X-Name-Last: Wu
Author-Name: Cuong Nguyen
Author-X-Name-First: Cuong
Author-X-Name-Last: Nguyen
Title: The Risk-Return Trade-Off in a Liberalized Emerging Stock Market: Evidence from Vietnam
Abstract: 
 We empirically examine the risk-return trade-off in a liberalized emerging stock market: Vietnam during the period 2007–2014. We find that (1) neither realized idiosyncratic volatility nor conditional idiosyncratic volatility has been priced; (2) rational multifactor models could well explain the stock portfolio returns; (3) there is a flat trend for equal-weighted idiosyncratic volatility (IVOL), but a downward trend for market volatility. Our results indicate that the idiosyncratic risk plays an unimportant role in pricing stocks and that the systematic risks still dominate asset returns in emerging stock markets. Results imply that Vietnamese investors can get increased benefit from portfolio diversification.
Journal: Emerging Markets Finance and Trade
Pages: 746-763
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2015.1103129
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103129
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Template-Type: ReDIF-Article 1.0
Author-Name: Yensen Ni
Author-X-Name-First: Yensen
Author-X-Name-Last: Ni
Author-Name: Yulu Liao
Author-X-Name-First: Yulu
Author-X-Name-Last: Liao
Author-Name: Paoyu Huang
Author-X-Name-First: Paoyu
Author-X-Name-Last: Huang
Title: Foreign Institutional Investors, Shareholding Change, and Corporate Governance
Abstract: 
 By exploring the factors that affect the shareholding change of foreign institutions, we find that corporate governance and financial issues may not be related to the shareholding change of foreign institutions. We employ censored panel data models focusing on either positive or negative samples in terms of the shareholding change of foreign institutions; results reveal that corporate governance and financial performance are related to the shareholding change of foreign institutions for positive samples instead of negative samples, which is similar to the finding that results might not be the same for low quantile or high quantile estimation by using quantile regression models. This concern seems rarely examined in the relevant literature.
Journal: Emerging Markets Finance and Trade
Pages: 764-775
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2015.1105634
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1105634
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Template-Type: ReDIF-Article 1.0
Author-Name: Yin-Che Weng
Author-X-Name-First: Yin-Che
Author-X-Name-Last: Weng
Author-Name: Rui Wang
Author-X-Name-First: Rui
Author-X-Name-Last: Wang
Title: Do Enhanced Index Funds Truly Have Enhanced Performance? Evidence from the Chinese Market
Abstract: 
 The index fund market has grown dramatically in China, particularly for active index funds known as enhanced index funds (EIFs). This article is the first to thoroughly exam the performance of EIFs in the Chinese market. Our analysis shows that EIFs in China perform worse than their benchmarks. We note that EIF managers are good market timers when the market does not move significantly. The underperformance of EIFs is primarily attributed to a fund manager’s stock-picking ability; former managing experience is also a factor. Our results suggest that passive index funds are better choices than active funds for fund investments in the Chinese market.
Journal: Emerging Markets Finance and Trade
Pages: 819-834
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2015.1105637
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1105637
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Template-Type: ReDIF-Article 1.0
Author-Name: Cheng-Hwai Liou
Author-X-Name-First: Cheng-Hwai
Author-X-Name-Last: Liou
Author-Name: Jo-Lan Liu
Author-X-Name-First: Jo-Lan
Author-X-Name-Last: Liu
Author-Name: Pu-Ming Jian
Author-X-Name-First: Pu-Ming
Author-X-Name-Last: Jian
Author-Name: Ching-Chieh Tsai
Author-X-Name-First: Ching-Chieh
Author-X-Name-Last: Tsai
Title: Effects of Director and Officer Liability Insurance Coverage on Information Disclosure Quality and Corporate Fraud
Abstract: 
 We empirically test the monitoring role of director and officer (D&amp;O) insurance coverage by investigating the association between D&amp;O insurance coverage and the information disclosure quality and incidence of corporate fraud for firms listed in Taiwan. The empirical evidence reveals that a firm may raise the quality of information disclosure by purchasing D&amp;O insurance. However, the empirical results do not support the monitoring effect of D&amp;O insurance coverage on corporate fraud.
Journal: Emerging Markets Finance and Trade
Pages: 806-818
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1141647
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1141647
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:4:p:806-818




Template-Type: ReDIF-Article 1.0
Author-Name: Chuang-Min Chao
Author-X-Name-First: Chuang-Min
Author-X-Name-Last: Chao
Author-Name: Ming-Miin Yu
Author-X-Name-First: Ming-Miin
Author-X-Name-Last: Yu
Author-Name: Yun-Ting Lee
Author-X-Name-First: Yun-Ting
Author-X-Name-Last: Lee
Author-Name: Bo Hsiao
Author-X-Name-First: Bo
Author-X-Name-Last: Hsiao
Title: Measurement of Banking Performance in a Dynamic Multiactivity Network Structure: Evidence from Banks in Taiwan
Abstract: 
 In this study, we develop a dynamic multi-activity network DEA (DMNDEA) model that combines the multi-activity network DEA model (MNDEA) with the dynamic network DEA model (DNDEA). This new model is used to measure the efficiency of twenty-seven Taiwanese banks under a multistage and multiactivity production process during the sample period of 2006–12. The proposed model is able to identify whether inefficiencies stem from financial activities or the production stages and provides managers with information to propose better strategies to improve the overall performance of their banks under fluid macroeconomic conditions across time.
Journal: Emerging Markets Finance and Trade
Pages: 786-805
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1141649
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1141649
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Template-Type: ReDIF-Article 1.0
Author-Name: Ting Zhou
Author-X-Name-First: Ting
Author-X-Name-Last: Zhou
Author-Name: Jun Xie
Author-X-Name-First: Jun
Author-X-Name-Last: Xie
Author-Name: Xiaolin Li
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Li
Title: Financial Reporting Quality and Idiosyncratic Return Volatility: Evidence from China
Abstract: 
 In this article, we study the relationship between financial reporting quality and idiosyncratic return volatility for publicly listed Chinese companies from 2003 to 2012. First, we find that there is no link between financial reporting quality and total return volatility; however, there is a negative relationship between financial reporting quality and idiosyncratic return volatility. Second, we divide our whole sample into two subsamples according to financial reporting quality and find that the negative relationship between financial reporting quality and idiosyncratic volatility only exists in the subsample with low financial reporting quality. Finally, the results show different patterns of idiosyncratic volatility for Chinese listed companies before and after 2007, when a high-standard accounting system was adopted. The adoption of this high-standard accounting system reduces the negative relationship between idiosyncratic volatility and financial reporting quality.
Journal: Emerging Markets Finance and Trade
Pages: 835-847
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1142200
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1142200
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Template-Type: ReDIF-Article 1.0
Author-Name: Keehwan Park
Author-X-Name-First: Keehwan
Author-X-Name-Last: Park
Author-Name: Sangki Lee
Author-X-Name-First: Sangki
Author-X-Name-Last: Lee
Title: An Empirical Study of CDS Premium on the Korean Sovereign Bond: Some Effect of the CTD Option
Abstract: 
 We test the parity relation for two credit prices of the Korean sovereign bond, and investigate the time-varying property of the basis of the CDS premium from the bond spread. Both the global and country-specific risks are responsible for explaining the variation in the CDS premium. The unexplained variation in the CDS premium is, in turn, significantly associated with the time-varying CTD option value. Given our empirical findings, an emerging government ought to be cautious when it comes to issuing sovereign bonds with large CTD option value because the CTD bond could render its CDS premium unnecessarily high.
Journal: Emerging Markets Finance and Trade
Pages: 848-864
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1142210
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1142210
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Template-Type: ReDIF-Article 1.0
Author-Name: Long-Hui Chen
Author-X-Name-First: Long-Hui
Author-X-Name-Last: Chen
Author-Name: Hsin-Hung Chen
Author-X-Name-First: Hsin-Hung
Author-X-Name-Last: Chen
Title: Applying a Bootstrap Analysis to Evaluate the Performance of Chinese Mutual Funds
Abstract: 
 The objective of this research was to apply a bootstrap statistical analysis to examine the performance of mutual funds in China. This study used a sample of 434 open-end domestic equity mutual funds that existed for at least two years in China. The results of the empirical analysis show that Chinese mutual funds had significant superior risk-adjusted returns based on the traditional Jensen and Carhart models, respectively. Furthermore, the results of a bootstrap analysis show that most of the good performance of Chinese mutual funds, based on the traditional Jensen and Carhart models, may have not resulted from sampling variation (luck) and statistical assumption errors. Stock-picking abilities of Chinese equity fund managers may actually exist.
Journal: Emerging Markets Finance and Trade
Pages: 865-876
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1152178
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1152178
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Template-Type: ReDIF-Article 1.0
Author-Name: Yao-Don Hung
Author-X-Name-First: Yao-Don
Author-X-Name-Last: Hung
Author-Name: Ming-Hone Tsai
Author-X-Name-First: Ming-Hone
Author-X-Name-Last: Tsai
Title: Value Creation and Value Transfer of Leveraged Buyouts: A Review of Recent Developments and Challenges for Emerging Markets
Abstract: 
 As available credit has tightened and fundraising has plummeted since the financial crisis of 2008, the private-equity (PE) sector has grown and matured in developed countries and shown strong growth in emerging countries, especially in Asia. This article studies the effect of wealth creation and wealth transfer by PE-backed leveraged buyouts (LBOs) on their stakeholders. We review the drivers of value creation and present the means through which LBOs are likely to transfer value. We also examine the tactics and strategies that LBOs use to capture and transfer value, and study emerging markets outside the traditional territories of LBO activities. This article reveals concerns that may be of interest to investors and regulators, elucidates clues for PE firms managing differences when investing in emerging markets, and provides an integrated view of LBO activities for countries seeking the introduction of private equity.
Journal: Emerging Markets Finance and Trade
Pages: 877-917
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1193000
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1193000
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:4:p:877-917




Template-Type: ReDIF-Article 1.0
Author-Name: Xin Yao
Author-X-Name-First: Xin
Author-X-Name-Last: Yao
Author-Name: Qiang Liu
Author-X-Name-First: Qiang
Author-X-Name-Last: Liu
Title: Effect of Crude Oil Futures Trading on Spot Market Volatility: A Panel Data–Based Counterfactual Prediction Analysis
Abstract: 
 Based on panel data, a recently developed method of counterfactual prediction analysis is used in this article to analyze how the launch of Tokyo and Dubai crude oil futures influences the price volatility in the spot market whose underlying instruments are corresponding futures. Analysis results show that the launch of crude oil futures can speed up information integration into market system and reduce the volatility of the crude oil spot market, although the crude oil futures market is characterized mainly by speculative factors. The offshore underlying instrument does not have substantial influences on future contracts, while the scale of the futures market has a significant effect on the spot market volatility.
Journal: Emerging Markets Finance and Trade
Pages: 918-931
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1210506
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1210506
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Template-Type: ReDIF-Article 1.0
Author-Name: Woo-Jong Lee
Author-X-Name-First: Woo-Jong
Author-X-Name-Last: Lee
Author-Name: Seungbin Oh
Author-X-Name-First: Seungbin
Author-X-Name-Last: Oh
Author-Name: Sang-Giun Yim
Author-X-Name-First: Sang-Giun
Author-X-Name-Last: Yim
Author-Name: Kyunghwa Yu
Author-X-Name-First: Kyunghwa
Author-X-Name-Last: Yu
Title: Allocation of Cash Flows in Unionized Firms
Abstract: 
 How do unionized firms use cash inflows? To answer this hitherto unexplored question, we adopt the system of equations developed by Dasgupta, Noe, and Wang (2011) to explicitly address possible interdependence of cash allocation decisions in unionized firms. Based on comprehensive firm-level unionization data for Korean companies from 1998 to 2008, we document that unionized firms allocate less cash to cash reserves and retirement of external financing than nonunionized firms do. More interestingly, inconsistent with previous findings, we also find that unionized firms utilize a greater portion of cash inflows to investment. This unexpected result of greater investment in unionized firms is in fact consistent with the view that employees are an important nonfinancial stakeholder who naturally cares about the long-term survival of the company; thus, they do not necessarily suppress value-increasing investments. Overall, our findings suggest that researchers need to consider cash flow sensitivities when examining interrelated cash allocation decisions.
Journal: Emerging Markets Finance and Trade
Pages: 932-951
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1234371
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1234371
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Template-Type: ReDIF-Article 1.0
Author-Name: Namryoung Lee
Author-X-Name-First: Namryoung
Author-X-Name-Last: Lee
Title: Can Territorial Tax Compliance Systems Reduce the Tax Avoidance of Firms with Operations in Tax Havens?
Abstract: 
 The Korean government has recently focused its compliance efforts on offshore tax evasion and has accordingly adopted several tax compliance systems. This article empirically examines the association between the enforcement of those tax compliance systems and firms’ tax avoidance from 1999 to 2014. Firms with foreign operations in tax havens have greater opportunities to decrease their overall tax burdens. Thus, the analysis in this study attempts to determine the differential impact of tax compliance systems between firms with subsidiaries in tax haven countries and firms without operations in such places. It is found that tax compliance systems effectively reduce the tax avoidance of firms without operations in tax havens, but not the tax avoidance of firms with operations in tax havens, as predicted. The results also show that financially distressed firms are likely to engage in aggressive tax planning. Moreover, financially distressed firms with operations in tax havens seem to engage in tax avoidance activities even after the enforcement of tax compliance systems. This article may have some implications with respect to considering mechanisms designed to broaden the tax base and more effectively detect offshore tax evasion.
Journal: Emerging Markets Finance and Trade
Pages: 968-985
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1247690
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1247690
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Template-Type: ReDIF-Article 1.0
Author-Name: Walid Mansour
Author-X-Name-First: Walid
Author-X-Name-Last: Mansour
Author-Name: Karima Saci
Author-X-Name-First: Karima
Author-X-Name-Last: Saci
Author-Name: Saida Khalifa
Author-X-Name-First: Saida
Author-X-Name-Last: Khalifa
Title: How Do Financing Conditions Impact Firm Behavior? Evidence from the Gulf Zone
Abstract: 
 This study examines the impact of financing conditions on firm behavior in the Gulf zone over the period 2005–2014 using a panel of 357 firms. As a main consequence of market frictions, financing constraints have sizeable impacts on how CFOs behave and design their financial policies. We use a sample of firms from the six GCC countries and specify a range of investment equations to explore the behavior of cash flow sensitivities to fixed investment, working capital, and R&amp;D. Our results show that GCC firms seem to have less costly financing sources when financing their inventories and/or holding cash than investing in fixed assets and R&amp;D. Our results indicate that there is heterogeneity of the impact of financing conditions on the behavior of GCC firms. The Omani and Bahraini firms seem to be more oriented toward building their working capital during periods of financial distress in order to finance their fixed and R&amp;D investments. This behavior does not seem to be consistent with the other countries. Indeed, we find sheer evidence that the Saudi, Qatari, Kuwaiti, and Emirati firms do not opt for an alleviation of financing constraints by smoothing the cash flow fluctuations with changes in working capital.
Journal: Emerging Markets Finance and Trade
Pages: 952-967
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1248555
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1248555
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:4:p:952-967




Template-Type: ReDIF-Article 1.0
Author-Name: Jianbo Zhou
Author-X-Name-First: Jianbo
Author-X-Name-Last: Zhou
Author-Name: Ruixin Wang
Author-X-Name-First: Ruixin
Author-X-Name-Last: Wang
Author-Name: Jiantao Zhou
Author-X-Name-First: Jiantao
Author-X-Name-Last: Zhou
Author-Name: Yuheng Zhao
Author-X-Name-First: Yuheng
Author-X-Name-Last: Zhao
Title: Theory and Practice on Lending Risk Control by the Government in the Song Dynasty
Abstract: 
 Lending was of importance in finance of Song Dynasty, and the government constituted strict laws and regulations to control the risk. Those measures had made great contribution to the sustainable financial market by maximizing the strengths of lending and lessening the loss of individuals and instability of society caused by bad loans. Nevertheless, there were many problems in the policy implementation that the officials violated the law and discipline. Thus, coordination should be made between soft constraint and hard constraint, which needs conditions to support (mainly the advance in scientific technology).
Journal: Emerging Markets Finance and Trade
Pages: 986-1000
Issue: 4
Volume: 53
Year: 2017
Month: 4
X-DOI: 10.1080/1540496X.2016.1256196
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1256196
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:4:p:986-1000




Template-Type: ReDIF-Article 1.0
Author-Name: Ihsan U. Badshah
Author-X-Name-First: Ihsan U.
Author-X-Name-Last: Badshah
Title: Volatility Spillover from the Fear Index to Developed and Emerging Markets
Abstract: 
 This article examines cross-market volatility linkages among the fear index (VIX), the developed-market index (VXEFA), and the emerging-market index (VXEEM). Analysis on the first moments of volatilities reveals that the fear index has a leading role and has information content for VXEFA and VXEEM. A shock to the fear index spillovers to VXEFA and VXEEM and contributes 57.07% and 63.77% to their shocks, respectively. Further analysis on the second moments of volatilities confirms that the volatility indices are highly dynamically correlated while the fear index drives the correlation dynamics with the VXEEM. Correlations increase in turbulent periods and decrease in tranquil periods.
Journal: Emerging Markets Finance and Trade
Pages: 27-40
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1220294
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1220294
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Template-Type: ReDIF-Article 1.0
Author-Name: Hui-Chu Shu
Author-X-Name-First: Hui-Chu
Author-X-Name-Last: Shu
Author-Name: Jung-Hsien Chang
Author-X-Name-First: Jung-Hsien
Author-X-Name-Last: Chang
Author-Name: Ting-Ya Lo
Author-X-Name-First: Ting-Ya
Author-X-Name-Last: Lo
Title: Forecasting the Term Structure of South African Government Bond Yields
Abstract: 
 This article uses the parsimonious dynamic Nelson–Siegel model to fit the yields of South African government bonds. We find that the dynamic Nelson–Siegel model has good fitting abilities for all maturities. We further forecast the term structure by seven different dynamic Nelson–Siegel models with time series models. We find that the DNS–VAR–GARCH model is useful for forecasting the short-term rates, the DNS–VAR best predicts the medium-term rates, and the DNS–RW best predicts the long-term rates. In addition, the dynamic Nelson–Siegel models provide better forecasts of yield data than a random walk model, especially for the 12-month forecasting horizons.
Journal: Emerging Markets Finance and Trade
Pages: 41-53
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1225572
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1225572
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Template-Type: ReDIF-Article 1.0
Author-Name: Wilfredo L. Maldonado
Author-X-Name-First: Wilfredo L.
Author-X-Name-Last: Maldonado
Author-Name: Octavio A. F. Tourinho
Author-X-Name-First: Octavio A. F.
Author-X-Name-Last: Tourinho
Author-Name: Jorge A. B. M. de Abreu
Author-X-Name-First: Jorge A. B. M. de
Author-X-Name-Last: Abreu
Title: Cointegrated Periodically Collapsing Bubbles in the Exchange Rate of “BRICS”
Abstract: 
 We test the occurrence of periodically recurring rational bubbles in the exchange rate of each of the “BRICS” countries currency relative to the US dollar. The forward exchange rate is used as a proxy for the expected exchange rate, different Purchasing Parity Power (PPP)-based rules for the fundamental exchange rate are considered, and its initial value is endogenously determined. For the chosen model, the regime switching equation satisfactorily fits the data, confirming the presence of rational bubbles for all countries. The dynamics of the exchange rate series for each country is interpreted with the help of the estimated bubbles. The bubbles are compared across countries, found to be cointegrated, and this is interpreted as evidence of the international transmission of exchange rate shocks between these countries.
Journal: Emerging Markets Finance and Trade
Pages: 54-70
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1229179
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1229179
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:1:p:54-70




Template-Type: ReDIF-Article 1.0
Author-Name: Qian Chen
Author-X-Name-First: Qian
Author-X-Name-Last: Chen
Author-Name: Xin Weng
Author-X-Name-First: Xin
Author-X-Name-Last: Weng
Title: Information Flows Between the US and China’s Agricultural Commodity Futures Markets—Based on VAR–BEKK–Skew-t Model
Abstract: 
 The information flow in the volatility and the skewness of returns are two factors closely influences the hedging risks for cross-border transactions. This article adopts a VAR–BEKK–MGARCH model with multivariate skew-t error terms to investigate the mean and volatility spillovers, while accounting for the potential skewness. The model is applied to real returns of corn, wheat, and soybeans futures in United States and China. The empirical results indicate the major role of United States in information transmission, and the increasing volatility spillovers of China to United States in highly marketized commodities and after trading structure changes. The analysis of skewness provides evidences for market inefficiency and implication on the investment decision and trading strategies.
Journal: Emerging Markets Finance and Trade
Pages: 71-87
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1230492
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1230492
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:1:p:71-87




Template-Type: ReDIF-Article 1.0
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Author-Name: Nazrol K. M. Kamil
Author-X-Name-First: Nazrol K. M.
Author-X-Name-Last: Kamil
Author-Name: Obiyathulla I. Bacha
Author-X-Name-First: Obiyathulla I.
Author-X-Name-Last: Bacha
Title: Issues in Islamic Equities: A Literature Survey
Abstract: 
 This article reviews the current literature on Islamic equities. Our survey indicates that the bulk of articles is quantitative or empirical in nature, with a notable dearth of theoretical works. Among the common research themes explored by these articles are comparative performances of Islamic equities vis-à-vis their conventional counterparts, comparisons of Islamic portfolios with SRI funds, and empirically articulating portfolio diversification benefits associated with Islamic equities. In addition, numerous articles discuss idiosyncrasies of Shari’ah compliant stocks and portfolios under subthemes such as volatility, risk factors, and performance attributes. This survey also includes articles addressing efficiency perspectives, calendar anomalies, and issues in Shari’ah stock screening norms. We summarize general findings and offer suggestions for future research. Literature surveys on Islamic equities are few and far between, and this article, to date, represented the most recent and comprehensive attempt at that.
Journal: Emerging Markets Finance and Trade
Pages: 1-26
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1234370
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1234370
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Template-Type: ReDIF-Article 1.0
Author-Name: Štefan Bojnec
Author-X-Name-First: Štefan
Author-X-Name-Last: Bojnec
Author-Name: Imre Fertő
Author-X-Name-First: Imre
Author-X-Name-Last: Fertő
Title: Globalization and Outward Foreign Direct Investment
Abstract: 
 While recent research into foreign direct investment (FDI) has focused on examining the importance of institutions, corruption, money laundering, and tax havens, the role of globalization on FDI has not yet been explored. This research investigates the impacts of globalization on outward FDI. We find that both overall globalization and its economic and social dimensions significantly positively influence outward FDI flows. We also demonstrate that beyond the level of globalization, corruption, money laundering, and the status of a country as a tax haven, cross-country similarity also plays an important role. Accordingly, policies specifically designed to increase the transparency of outward FDI flows should be required to address money laundering and the existence of tax havens.
Journal: Emerging Markets Finance and Trade
Pages: 88-99
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1234372
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1234372
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:1:p:88-99




Template-Type: ReDIF-Article 1.0
Author-Name: Hee Sub Byun
Author-X-Name-First: Hee Sub
Author-X-Name-Last: Byun
Author-Name: Ji Hye Lee
Author-X-Name-First: Ji Hye
Author-X-Name-Last: Lee
Author-Name: Kyung Suh Park
Author-X-Name-First: Kyung Suh
Author-X-Name-Last: Park
Title: Product Market Competition and the Ownership Choice of Business Groups: Evidence from Korean Chaebols
Abstract: 
 This study investigates the effect of product market competition on the ownership choice of controlling shareholders in the Korean business groups known as chaebols. We find that member firms in more competitive markets have less disparity between the control and cash flow rights of controlling shareholders. The adjustment in ownership due to product market competition is implemented mainly through an adjustment in the ownership of affiliates rather than in the direct ownership of controlling shareholders. The disciplinary effect of product market competition is observed only in member firms with lower market power in their own industries. The result implies that product market competition works as a disciplinary mechanism that reduces the incentive of chaebols’ controlling shareholders to pursue the private benefits of control.
Journal: Emerging Markets Finance and Trade
Pages: 100-131
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1240675
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1240675
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:1:p:100-131




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Chu Chuang
Author-X-Name-First: Chung-Chu
Author-X-Name-Last: Chuang
Author-Name: Jeff T. C. Lee
Author-X-Name-First: Jeff T. C.
Author-X-Name-Last: Lee
Author-Name: Chih-Chiang Wu
Author-X-Name-First: Chih-Chiang
Author-X-Name-Last: Wu
Title: Impacts of Economic Integration on Stock Market Dependence Without Jump Effects
Abstract: 
 This article investigates the impacts of the Closer Economic Partnership Arrangement (CEPA) on stock market dependence between Hong Kong and China. To avoid the influence of unusual events on stock market dependence, the mixed generalized autoregressive conditional heteroscedastic with the autoregressive jump intensity (GARJI) margin model was modified to exclude jump innovations. The t copula was chosen to estimate the unknown dependence break and measure the average dependence level change. The stock market dependence break occurred about one and a half years after CEPA became effective, and the CEPA increased stock market dependence between Hong Kong and China. Moreover, this article shows the influence of stock market jump effects in the case of CEPA.
Journal: Emerging Markets Finance and Trade
Pages: 132-143
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1244510
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1244510
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Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim
Author-X-Name-First: Dong-Hyeon
Author-X-Name-Last: Kim
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Author-Name: Joyce Hsieh
Author-X-Name-First: Joyce
Author-X-Name-Last: Hsieh
Author-Name: Yu-Bo Suen
Author-X-Name-First: Yu-Bo
Author-X-Name-Last: Suen
Title: The Fisher Equation: A Nonlinear Panel Data Approach
Abstract: 
 This article reinvestigates the Fisher equation. Using the panel smooth transition regression (PSTR) model, it was found that there is a significant regime-switching effect concerning the impact of inflation on interest rates. Specifically, inflation is found to raise the interest rates and the effect becomes stronger in magnitude with inflation. However, the data do not provide evidence in support of the one-for-one Fisher effect. The evidence is robust to interest rates with different maturities and subsamples.
Journal: Emerging Markets Finance and Trade
Pages: 162-180
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1245138
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1245138
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:1:p:162-180




Template-Type: ReDIF-Article 1.0
Author-Name: Amit Ghosh
Author-X-Name-First: Amit
Author-X-Name-Last: Ghosh
Title: How Do Foreign Banks Affect Private Credit Flows? A Global and Emerging Markets Perspective
Abstract: 
 This study examines how foreign banks affect private credit flows in 135 nations, including 57 emerging markets for 1995–2013. Employing different econometric techniques, I find both higher share of foreign banks and foreign assets to significantly reduce credit flows. Such decline in credit is highest in nations with more than 50 percent foreign banks. The findings support the view that foreign banks face informational asymmetries that hamper them from lending to the more informationally opaque firms. The results call for strengthening accounting standards, disclosure rules in host markets and for prospective foreign banks to modify their credit risk evaluation methods.
Journal: Emerging Markets Finance and Trade
Pages: 181-202
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1245139
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1245139
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:1:p:181-202




Template-Type: ReDIF-Article 1.0
Author-Name: Tong Fu
Author-X-Name-First: Tong
Author-X-Name-Last: Fu
Author-Name: Yi Liu
Author-X-Name-First: Yi
Author-X-Name-Last: Liu
Title: Private Participation in Infrastructure and Financial Sector Development: Evidence from Developing Countries
Abstract: 
 This article studies whether private participation in infrastructure (PPI) investments promote financial sector development (FSD). With data from 62 developing countries over the period 1990–2013, we provide evidence of a positive and significant relationship between PPI investments and FSD, irrespective of different control variables, estimation methods and measures of FSD. With heterogeneity tests, we illustrate that the promotion effect is larger in emerging countries than in the other countries; however, the difference is marginal. We also identify that both civil and common legal origins have a comparative advantage than socialist legal origin for FSD.
Journal: Emerging Markets Finance and Trade
Pages: 203-218
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1300882
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1300882
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:1:p:203-218




Template-Type: ReDIF-Article 1.0
Author-Name: Jounghyeon Kim
Author-X-Name-First: Jounghyeon
Author-X-Name-Last: Kim
Title: Bankruptcy and Institutions: Theory and Empirical Evidence from Korea and the United States
Abstract: 
 Using a simple z-score bankruptcy model, this article explores the relationship between bankruptcy threshold and institutions. The z-score threshold for bankruptcy is found to be higher in countries with stronger institutions. To test this claim, a cross-section data set of 86 Korean firms and 60 US firms from 1991 to 2001, extracted from a panel data set, is used. The empirical finding that the z-score bankruptcy threshold in the United States (which has better quality of institutions than does Korea) is higher than that in Korea is consistent with the prediction of the model. Additionally, having examined bankruptcy laws of the two countries, it is found that filing a petition for bankruptcy is easier and debtors rights are better protected in the United States than in Korea, which suggests that the bankruptcy laws of Korea and the United States may be partially responsible for the difference in the z-score threshold for bankruptcy.
Journal: Emerging Markets Finance and Trade
Pages: 219-233
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1313732
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1313732
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:1:p:219-233




Template-Type: ReDIF-Article 1.0
Author-Name: Moonsoo Kang
Author-X-Name-First: Moonsoo
Author-X-Name-Last: Kang
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Author-Name: Ying Xiao
Author-X-Name-First: Ying
Author-X-Name-Last: Xiao
Title: Market Imperfections, Macroeconomic Conditions, and Capital Structure Dynamics: A Cross-Country Study
Abstract: 
 This article investigates how “systematic” adjustment costs proxied by market imperfections, and macroeconomic conditions affect capital structure dynamics in a cross-country setting. We document substantial variations in firms’ capital structure adjustments across countries and, particularly, over time. Consistent with adjustment costs impeding firms from rebalancing their capital structures, worse market imperfections are associated with slower speeds of adjustment (SOA) and larger leverage deviations. Intertemporally, capital structure adjustment is procyclical, with SOA increasing by 0.9 percentage point for a one-percentage-point increase in GDP growth rate. The procyclicality is attributable to good macroeconomic conditions mitigating market imperfections through channels of 1) facilitating free-ride restructuring and 2) uncertainty alleviation. Our investigation features a bootstrapping-based estimation method that addresses the mechanical mean reversion of leverage ratio.
Journal: Emerging Markets Finance and Trade
Pages: 234-254
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1326380
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1326380
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Template-Type: ReDIF-Article 1.0
Author-Name: Jeong-Ho Koo
Author-X-Name-First: Jeong-Ho
Author-X-Name-Last: Koo
Author-Name: Daecheon Yang
Author-X-Name-First: Daecheon
Author-X-Name-Last: Yang
Title: Managerial Overconfidence, Self-Attribution Bias, and Downwardly Sticky Investment: Evidence from Korea
Abstract: 
 The extant literature on behavioral corporate finance has explored the effects of overconfidence on investment–cash flow sensitivity (ICS) to explain overinvestment, yet it has overlooked the asymmetric behavior of investments in relation to changes in cash flow levels. This study examines whether investments behave asymmetrically responding to changes in cash flows and, if so, how managerial overconfidence affects asymmetric ICS. Using a sample of KOSPI and KOSDAQ firms in Korea, we find the incidence of downwardly sticky ICS in unconstrained firms. We then find that overconfident managers encourage ICS to be stickier than their rational peers do in unconstrained firms. Finally, we find that managerial overconfidence intensified by self-attribution bias induces ICS to get even stickier, suggesting more explicit evidence of corporate investment distortions. The results of alternative tests using the asymmetric models of Homburg and Nasev (2008) are qualitatively consistent with prior results. Overall, our findings imply a higher incidence of excessive investment commitments driven by overconfident managers.
Journal: Emerging Markets Finance and Trade
Pages: 144-161
Issue: 1
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1398643
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1398643
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Template-Type: ReDIF-Article 1.0
Author-Name: Xueling Guan
Author-X-Name-First: Xueling
Author-X-Name-Last: Guan
Author-Name: Min Zhou
Author-X-Name-First: Min
Author-X-Name-Last: Zhou
Author-Name: Ming Zhang
Author-X-Name-First: Ming
Author-X-Name-Last: Zhang
Title: Using the ARDL-ECM Approach to Explore the Nexus Among Urbanization, Energy Consumption, and Economic Growth in Jiangsu Province, China
Abstract: 
 To better understand the relationship of the urban, economic, and energy systems in Jiangsu, the most well-developed province in China, the nexus of urbanization, energy consumption, and economic growth is explored. Autoregressive distributed lag (ARDL) bounds testing is applied to examine the cointegration relationship of the variables. After confirming the long-run equilibrium among the variables, the short-run and long-run coefficients are estimated by ARDL error-correction model (ARDL-ECM). We find that Jiangsu is an energy-dependent economy at the present time while urbanization has become a growth engine for her economic development. Suggestions for reducing energy usage while keeping the economy growing at a proper speed during urbanization are also presented.
Journal: Emerging Markets Finance and Trade
Pages: 391-399
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1016840
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1016840
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:391-399




Template-Type: ReDIF-Article 1.0
Author-Name: Jeewon Jang
Author-X-Name-First: Jeewon
Author-X-Name-Last: Jang
Author-Name: Jangkoo Kang
Author-X-Name-First: Jangkoo
Author-X-Name-Last: Kang
Author-Name: Changjun Lee
Author-X-Name-First: Changjun
Author-X-Name-Last: Lee
Title: State-Dependent Illiquidity Premium in the Korean Stock Market
Abstract: 
 We study the relation between the illiquidity premium and economic states in the Korean stock market. We find that aggregate market liquidity improves following real economic expansions and expansive monetary states and worsens after economic recessions and restrictive monetary states. The improved liquidity in the expansion–expansive state generates a huge illiquidity premium, while an illiquidity premium does not exist in the recession–restrictive state. As a result, the observed illiquidity premium displays strong state-dependent variations. Our empirical results indicate that a significant unconditional illiquidity premium in the Korean stock market arises due to a substantial illiquidity premium in the expansion–expansive state.
Journal: Emerging Markets Finance and Trade
Pages: 400-417
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1016842
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1016842
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:400-417




Template-Type: ReDIF-Article 1.0
Author-Name: Selen Başer Andiç
Author-X-Name-First: Selen
Author-X-Name-Last: Başer Andiç
Author-Name: Hande Küçük
Author-X-Name-First: Hande
Author-X-Name-Last: Küçük
Author-Name: Fethi Öğünç
Author-X-Name-First: Fethi
Author-X-Name-Last: Öğünç
Title: Inflation Dynamics in Turkey: In Pursuit of a Domestic Cost Measure
Abstract: 
 We provide Bayesian estimates of an empirical model of consumer price inflation for Turkey based on the hybrid new Keynesian Phillips curve. We decompose real marginal costs into domestic and foreign components and focus particularly on identifying the effect of the domestic component. We find that the baseline model that uses output gap as a measure of domestic real marginal costs does a better job in explaining consumer price inflation compared to alternative models that incorporate real unit labor costs. However, estimations for services inflation point to the importance of real unit labor costs for this sector.
Journal: Emerging Markets Finance and Trade
Pages: 418-431
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1019771
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1019771
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:418-431




Template-Type: ReDIF-Article 1.0
Author-Name: Byung Il Park
Author-X-Name-First: Byung Il
Author-X-Name-Last: Park
Author-Name: Pervez N. Ghauri
Author-X-Name-First: Pervez N.
Author-X-Name-Last: Ghauri
Author-Name: Wonsik Sul
Author-X-Name-First: Wonsik
Author-X-Name-Last: Sul
Author-Name: Suk Bong Choi
Author-X-Name-First: Suk Bong
Author-X-Name-Last: Choi
Title: Symposium: Emerging Markets, International Business, and Corporate Social Responsibility
Journal: Emerging Markets Finance and Trade
Pages: 291-292
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1021594
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1021594
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:291-292




Template-Type: ReDIF-Article 1.0
Author-Name: ChungAh Kim
Author-X-Name-First: ChungAh
Author-X-Name-Last: Kim
Author-Name: Sang Hyuck Kim
Author-X-Name-First: Sang Hyuck
Author-X-Name-Last: Kim
Author-Name: Keon Hee Lee
Author-X-Name-First: Keon Hee
Author-X-Name-Last: Lee
Title: A Comparison Study of Multinational Chain Hotel Employees’ Perceptions of Corporate Social Responsibility in China and Korea
Abstract: 
 The purpose of this study is to examine differences in the perceptions of corporate social responsibility (CSR) between multinational chain hotel employees in Korea and those in China. Data collection was conducted in June 2013, and 350 respondents from hotels in Korea and China were included in the study. Several statistical methods (factor analysis, importance performance analysis, and independent T-test) were employed. The empirical results show that Chinese hotel employees perceive CSR to be more important and well performed than do their counterparts in Korea. These results clearly point to the need for more seriously considering the cultural and social context of CSR, especially in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 364-376
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1021599
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1021599
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:364-376




Template-Type: ReDIF-Article 1.0
Author-Name: Jin Young Shin
Author-X-Name-First: Jin Young
Author-X-Name-Last: Shin
Author-Name: Moosup Jung
Author-X-Name-First: Moosup
Author-X-Name-Last: Jung
Author-Name: Kyung-il Khoe
Author-X-Name-First: Kyung-il
Author-X-Name-Last: Khoe
Author-Name: Myung-Su Chae
Author-X-Name-First: Myung-Su
Author-X-Name-Last: Chae
Title: Effects of Government Involvement in Corporate Social Responsibility: An Analysis of the Indian Companies Act, 2013
Abstract: 
 In this article, we aim at determining whether government involvement in CSR activity is desirable or counterproductive. We analyze the effects of government involvement in CSR by studying the Indian Companies Act, 2013, and estimating its effects by examining forty-seven top Indian companies coming under this Act on three crucial parameters: level of financial contribution to CSR, operating system of CSR, and the kind of CSR activities undertaken by the companies. Many companies under study already contributed their profits to CSR activities and have operating systems. Most CSR activities of the companies under study are also in compliance with the regulated activities of the new Act. Therefore, government involvement in CSR by regulation is not likely to have much negative effect on companies but can create positive developmental environments for communities.
Journal: Emerging Markets Finance and Trade
Pages: 377-390
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1021600
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1021600
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:377-390




Template-Type: ReDIF-Article 1.0
Author-Name: C. Min Han
Author-X-Name-First: C. Min
Author-X-Name-Last: Han
Title: Consumer Expectations of Corporate Social Responsibility of Foreign Multinationals in Korea
Abstract: 
 This study is intended to empirically investigate consumer expectations of corporate social responsibility (CSR) of multinational enterprises (MNEs) operating in Korea. First, we test whether a higher level of CSR is expected from foreign MNEs than from domestic firms. Second, we examine correlates of CSR expectations for foreign MNEs. Surveys are conducted with 163 individuals regarding European automobile firms. The findings suggest that Koreans expect a higher level of CSR from foreign MNEs vis-à-vis domestic firms. In addition, personal self-transcendence values (i.e., concern for the welfare of others and nature) and Korean attitudes toward the country of brand origin influence the level of expectations for foreign MNEs.
Journal: Emerging Markets Finance and Trade
Pages: 293-305
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1021601
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1021601
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:293-305




Template-Type: ReDIF-Article 1.0
Author-Name: Joonil Kim
Author-X-Name-First: Joonil
Author-X-Name-Last: Kim
Author-Name: Yongbok Jeon
Author-X-Name-First: Yongbok
Author-X-Name-Last: Jeon
Title: Dividend Policy and Corporate Social Responsibility: A Comparative Analysis of Multinational Enterprise Subsidiaries and Domestic Firms in Korea
Abstract: 
 In this study, we compare and contrast the dividend policies of multinational enterprise (MNE) subsidiaries with local firms in Korea and extract implications for corporate social responsibility (CSR). We find empirical evidence that dividend policies of MNE subsidiaries in Korea are in general determined to meet remittance requirements imposed by their parent company and have weak correlation with local CSR and investment requirements for wealth creation by local stakeholders.
Journal: Emerging Markets Finance and Trade
Pages: 306-319
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1021605
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1021605
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:306-319




Template-Type: ReDIF-Article 1.0
Author-Name: Reza Zaefarian
Author-X-Name-First: Reza
Author-X-Name-Last: Zaefarian
Author-Name: Misagh Tasavori
Author-X-Name-First: Misagh
Author-X-Name-Last: Tasavori
Author-Name: Pervez N. Ghauri
Author-X-Name-First: Pervez N.
Author-X-Name-Last: Ghauri
Title: A Corporate Social Entrepreneurship Approach to Market-Based Poverty Reduction
Abstract: 
 In this article, we aim to conceptualize a market-based approach to poverty reduction from a corporate social entrepreneurship (CSE) perspective. Specifically, we describe some market-based initiatives at the base of the economic pyramid and relate them to the social entrepreneurship literature. We refer to the entrepreneurial activities of multinational corporations that create social value as CSE. We then conceptualize CSE according to the corporate entrepreneurship and social entrepreneurship domains and shed light on how corporations can implement CSE. Finally, by reviewing relevant literature, we propose some of the factors that can stimulate CSE in organizations and some of the benefits companies can gain by implementing CSE.
Journal: Emerging Markets Finance and Trade
Pages: 320-334
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1021606
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1021606
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:320-334




Template-Type: ReDIF-Article 1.0
Author-Name: Byung Il Park
Author-X-Name-First: Byung Il
Author-X-Name-Last: Park
Author-Name: Jiyul Choi
Author-X-Name-First: Jiyul
Author-X-Name-Last: Choi
Title: Stakeholder Influence on Local Corporate Social Responsibility Activities of Korean Multinational Enterprise Subsidiaries
Abstract: 
 In this article, we attempt to identify key factors affecting local corporate social responsibility (CSR) practices by overseas subsidiaries of Korean multinational enterprises (MNEs) according to stakeholder theory. In this article, internal managers and the parent company (i.e., MNE) are considered as internal stakeholders in an organization; customers, government, local community, nongovernmental organizations (NGOs), and media are significant external stakeholders, as actors on the local society level. We test the relationship between local CSR practices and stakeholders by using multiple regression analysis (ordinary least squares [OLS] method). According to the results, parent company, government, and NGOs are verified as major factors that promote local CSR of subsidiaries, while the roles of internal managers, customers, local community, and media are not considered significant factors. Our research contributes to research flows regarding CSR and stakeholder theory and provides several practical implications for multinational enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 335-350
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1021609
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1021609
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:335-350




Template-Type: ReDIF-Article 1.0
Author-Name: Jootae Kim
Author-X-Name-First: Jootae
Author-X-Name-Last: Kim
Author-Name: Kum-Sik Oh
Author-X-Name-First: Kum-Sik
Author-X-Name-Last: Oh
Title: Introduction of Shareholder-Friendly Behaviors After Governance Reform in Korean Firms: Is It a Proactive Response?
Abstract: 
 Since the currency crisis in 1997, there have been many efforts for corporate governance reform in Asia and Korea. In this article, we intend to analyze the effect of the reform process in Korean companies. We show that the decrease in controlling shareholder ownership, the increase in the ownership rates of institutional investors and foreign investors, and the increased ratio of outside directors are related to the increase in stock repurchase amount and dividend payout. The increase in stock repurchase and dividend payout represents the shareholder-friendly behaviors of Korean firms after the crisis. It is shown that governance reform efforts in Korea have at least increased the shareholder-friendly behaviors of the companies. However, after the crisis, Korean firms increased cash holdings by reducing research and development (R&amp;D) investments and utilized increased cash holdings to pay stock repurchase and dividends. This raises the question of whether shareholder-friendly management resulting from governance reform was only an institutional isomorphism from responding passively to outside pressure.
Journal: Emerging Markets Finance and Trade
Pages: 351-363
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1021612
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1021612
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:351-363




Template-Type: ReDIF-Article 1.0
Author-Name: Jing Zhou
Author-X-Name-First: Jing
Author-X-Name-Last: Zhou
Author-Name: On Kit Tam
Author-X-Name-First: On Kit
Author-X-Name-Last: Tam
Author-Name: Wei Lan
Author-X-Name-First: Wei
Author-X-Name-Last: Lan
Title: Are Investor Protection and Ownership Concentration Substitutes in Chinese Family Firms?
Abstract: 
 By using a unique and detailed data set on China’s family firms, we investigate the effect of investor protection on the choice of ownership concentration of family businesses. Our study extends the literature’s focus on intercountry analysis by presenting a new perspective based on investor protection variations among regions within a country. We find that family ownership concentration in general complements investor protection in China. They can, however, be substitutes for one another when managerial power remains in t he family. Our results are robust to various specifications of variables and model estimations.
Journal: Emerging Markets Finance and Trade
Pages: 432-443
Issue: 2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2015.1024553
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1024553
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:432-443




Template-Type: ReDIF-Article 1.0
Author-Name: Nisreen Moosa
Author-X-Name-First: Nisreen
Author-X-Name-Last: Moosa
Author-Name: Huy N. A. Pham
Author-X-Name-First: Huy N. A.
Author-X-Name-Last: Pham
Title: The Effect of Environmental Degradation on the Financing of Healthcare
Abstract: 
 Empirical work on the relation between health expenditure and environmental degradation is based predominantly on the ARDL approach to co-integration and to a lesser extent on panel co-integration as applied to a log-log specification. The results invariably show that environmental degradation has a positive effect on health expenditure. In this article, we examine the bivariate relation between environmental degradation and health expenditure, since this relation seems to hold strongly, which can be explained in terms of the environmental Kuznets curve. We cast a shadow of doubt on the practice of using the log-log specification without any theoretical or empirical justification. Our results show that the relation between health expenditure and environmental degradation can be either positive or negative, depending on the level of per capita income.
Journal: Emerging Markets Finance and Trade
Pages: 237-250
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1439375
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1439375
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:237-250




Template-Type: ReDIF-Article 1.0
Author-Name: Giancarlo Giudici
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Giudici
Author-Name: Emilia Tona
Author-X-Name-First: Emilia
Author-X-Name-Last: Tona
Author-Name: Krishna Reddy
Author-X-Name-First: Krishna
Author-X-Name-Last: Reddy
Author-Name: Wang Dai
Author-X-Name-First: Wang
Author-X-Name-Last: Dai
Title: The Effects of Environmental Disasters and Pollution Alerts on Chinese Equity Markets
Abstract: 
 Environmental disasters not only cause severe losses in human lives and well-being but also affect economic and industrial activities, influencing firm performance and investors&#x2019; risk perceptions. We investigate the effects of 18 chemical disasters, oil spills, and pollution alerts on the Chinese stock market from 2003 to 2015. We find that these events generate significantly positive or negative returns, depending on the industry. Our results show no clear pattern suggesting that polluting industries are the most penalized; however, they indicate that environmental disasters create uncertainties in the market and often change investors&#x2019; risk perceptions in both the short and long term.
Journal: Emerging Markets Finance and Trade
Pages: 251-271
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1473248
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1473248
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:251-271




Template-Type: ReDIF-Article 1.0
Author-Name: Trang Cam Hoang
Author-X-Name-First: Trang Cam
Author-X-Name-Last: Hoang
Author-Name: Indra Abeysekera
Author-X-Name-First: Indra
Author-X-Name-Last: Abeysekera
Author-Name: Shiguang Ma
Author-X-Name-First: Shiguang
Author-X-Name-Last: Ma
Title: Earnings Quality and Corporate Social Disclosure: The Moderating Role of State and Foreign Ownership in Vietnamese Listed Firms
Abstract: 
 By investigating the effect of earnings quality (EQ) on corporate social disclosure (CSD) in the context of Vietnam, this study tests whether firms uphold managerial opportunism based on the agency theory or social responsibility based on stakeholder theory. It also tests the moderating effect of state and foreign ownership on the relationship between EQ and CSD. This study finds that the long-term perspective argument dominates in the relationship between EQ and CSD, indicating that EQ is positively and significantly associated with CSD. The study also finds that the increasing proportion of shares held by the government in firms weakens the relationship between EQ and CSD.
Journal: Emerging Markets Finance and Trade
Pages: 272-288
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1521801
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1521801
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:272-288




Template-Type: ReDIF-Article 1.0
Author-Name: Damien Wallace
Author-X-Name-First: Damien
Author-X-Name-Last: Wallace
Author-Name: Ron McIver
Author-X-Name-First: Ron
Author-X-Name-Last: McIver
Title: The Effects of Environmental Announcements on Exchange Traded Funds
Abstract: 
 We investigate the impact of environmental announcements on Exchange Traded Funds (ETFs) constituted of either polluting or green firms for the period 2006 to 2014. Using an event study methodology, we examine whether these public environmental announcements add or remove value for ETF investors. Our results identify that few environmental announcements produce statistically significant abnormal returns. For the significant announcements, we find mixed results for both polluting and green ETFs. Our findings indicate that environmental announcements are only partially effective in transmitting information to industries sensitive to the news incorporated in these announcements. We also show that, at times, these announcements can cause large abnormal returns over longer horizons.
Journal: Emerging Markets Finance and Trade
Pages: 289-307
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1528144
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1528144
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:289-307




Template-Type: ReDIF-Article 1.0
Author-Name: Boopendra Seetanah
Author-X-Name-First: Boopendra
Author-X-Name-Last: Seetanah
Author-Name: Raja Vinesh Sannassee
Author-X-Name-First: Raja Vinesh
Author-X-Name-Last: Sannassee
Author-Name: Sheereen Fauzel
Author-X-Name-First: Sheereen
Author-X-Name-Last: Fauzel
Author-Name: Y. Soobaruth
Author-X-Name-First: Y.
Author-X-Name-Last: Soobaruth
Author-Name: Giancarlo Giudici
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Giudici
Author-Name: Anh Pham Huy Nguyen
Author-X-Name-First: Anh Pham Huy
Author-X-Name-Last: Nguyen
Title: Impact of Economic and Financial Development on Environmental Degradation: Evidence from Small Island Developing States (SIDS)
Abstract: 
 The aim of this study is to investigate the effect of economic and financial development (FD) on environmental degradation (ED) for a sample of 12 selected small island developing states for the period 2000&#x2013;2016 using a panel vector autoregressive model which accounts for the issue of dynamism and endogeneity. Results from the long-run cointegration analysis confirmed that GDP per capita has a negative and significant impact on emissions implying that higher degree of economic development decreases the ED for our sample of island economies. The smaller long-run income elasticity as compared to the short run validates the environment Kuznets curve hypothesis. Although an insignificant impact of FD on CO2 emissions is reported, the joint effect of economic and FD on the environment indicates that FD will have an affirmative influence on the environment with island economies attaining a relatively good income level as well.
Journal: Emerging Markets Finance and Trade
Pages: 308-322
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1519696
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1519696
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:308-322




Template-Type: ReDIF-Article 1.0
Author-Name: Feng Wei
Author-X-Name-First: Feng
Author-X-Name-Last: Wei
Author-Name: Yu Kong
Author-X-Name-First: Yu
Author-X-Name-Last: Kong
Title: A Study of the Influence of Real Estate Development in China on CO Emissions
Abstract: 
 Based on the panel data of 30 provinces, municipalities, and autonomous regions in China from 2000 to 2013, this article studies how real estate investment affects CO2 emissions in China. We find that the real estate investment has a significant effect on CO2 emissions on both national and regional levels, showing that the rapid development of the real estate industry is a key factor in increasing CO2 emissions at present. In terms of the real estate investment types, residential house investment in provinces and eastern regions is most influential on CO2 emissions. Additionally, it has been found that there are regional differences in the stimulating effects of the four types of real estate investment (i.e., housing investment, office building investment, investment for commercial and business purposes, and other investment) on CO2 emissions.
Journal: Emerging Markets Finance and Trade
Pages: 323-336
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2017.1403316
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1403316
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:323-336




Template-Type: ReDIF-Article 1.0
Author-Name: Shi Young Lee
Author-X-Name-First: Shi Young
Author-X-Name-Last: Lee
Author-Name: Eun Jung Lim
Author-X-Name-First: Eun Jung
Author-X-Name-Last: Lim
Author-Name: Qinglei Meng
Author-X-Name-First: Qinglei
Author-X-Name-Last: Meng
Title: Ethnic Diversity and Economic Performance in China: The Role of Education, FDI, and Trade
Abstract: 
 This article analyzes the effect of ethnic diversity on China&#x2019;s economic performance. We claim that the conventional ethnic diversity indices may not be adequate for appropriately estimating the effect of ethnic diversity on economic performance in China, so we develop revised ethnic diversity indices. Consistent with the existing literature, we find that ethnic diversity alone worsens economic performance. However, dummies for ethnic diversity education and foreign direct investment (FDI) have a positive effect on economic performance. The marginal impact of education raises economic performance because it improves communication ability across diverse ethnic groups. At the same time, the expansion of FDI can create a proper context for ethnic groups to work together in order to improve economic performance. However, the ethnic diversity trade dummy does not significantly affect economic performance.
Journal: Emerging Markets Finance and Trade
Pages: 337-350
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1429906
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1429906
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:337-350




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Bin Chiu
Author-X-Name-First: Yi-Bin
Author-X-Name-Last: Chiu
Author-Name: Rushuang Ren
Author-X-Name-First: Rushuang
Author-X-Name-Last: Ren
Title: Trade Balance, Savings Rate, and Real Exchange Rate: Evidence from China and Its Trading Partners
Abstract: 
 What is the link between trade balance and savings rate? We apply the two-step differenced generalized method of moments technique to explore the linear and nonlinear relationships among trade balance, savings rate, and real exchange rate for China and its 102 trading partners during the period 1995&#x2013;2014. Our empirical results reveal that Reminbi depreciation has different effects on China&#x2019;s bilateral trade balance depending on its high- and low-income trading partners and that the savings rate has a nonlinear effect on China&#x2019;s bilateral trade balance. When the difference in savings rate between China and its trading partners is smaller, an increase in China&#x2019;s savings rate improves its bilateral trade balance with those trading partners, but there is an insignificant or negative effect on its trade balance for a larger gap in the savings rate.
Journal: Emerging Markets Finance and Trade
Pages: 351-364
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1431882
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1431882
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:351-364




Template-Type: ReDIF-Article 1.0
Author-Name: Peixin Li
Author-X-Name-First: Peixin
Author-X-Name-Last: Li
Author-Name: Frank Weikai Li
Author-X-Name-First: Frank Weikai
Author-X-Name-Last: Li
Author-Name: Baolian Wang
Author-X-Name-First: Baolian
Author-X-Name-Last: Wang
Title: Overseas Listing Location and Cost of Capital: Evidence from Chinese Firms Listed in Hong Kong, Singapore, and the United States
Abstract: 
 As at the end of 2012, more than 600 nonstate-owned Chinese firms were listed in overseas stock markets. We find that Chinese firms listed in the US have the lowest cost of capital when compared to those listed in Hong Kong and Singapore, and these results hold when controlling for firm characteristics and the endogeneity of listing locations. Cross-sectional tests indicate that listing in the US is more beneficial to those firms which face higher information asymmetry and agency costs. Overall, our evidence supports the view that the institutional environment has a first-order impact on a firm&#x2019;s cost of capital.
Journal: Emerging Markets Finance and Trade
Pages: 365-390
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1436436
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1436436
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:365-390




Template-Type: ReDIF-Article 1.0
Author-Name: R. M. Ammar Zahid
Author-X-Name-First: R. M. Ammar
Author-X-Name-Last: Zahid
Author-Name: Can Simga-Mugan
Author-X-Name-First: Can
Author-X-Name-Last: Simga-Mugan
Title: An Analysis of IFRS and SME-IFRS Adoption Determinants: A Worldwide Study
Abstract: 
 This study analyses the determinants of IFRS adoption decision from three dimensions. Logistic regression (Binary and Ordinal) models were applied to a dataset of 145 countries for the period 1995 to 2015. The main findings are that countries with higher regulatory efficiency and lower market openness are more likely to adopt IFRS earlier, and vice versa. However, regulatory efficiency and market openness have no significant impact on the extent of IFRS adoption. While, countries with lower regulatory efficiency, market openness and economic growth are more likely to adopt SME-IFRS. SME-IFRS adoption is higher in common law origin countries compared to code law countries.
Journal: Emerging Markets Finance and Trade
Pages: 391-408
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1500890
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1500890
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:391-408




Template-Type: ReDIF-Article 1.0
Author-Name: Yanxiang Kuang
Author-X-Name-First: Yanxiang
Author-X-Name-Last: Kuang
Author-Name: Hongjin Xiang
Author-X-Name-First: Hongjin
Author-X-Name-Last: Xiang
Title: Who Benefits from Antidumping and Countervailing? An Analysis Using a Computable Partial Equilibrium Model
Abstract: 
 The world economy has witnessed a rise use of antidumping (AD) and countervailing (CV) duties in recent years. Using a computable partial equilibrium model, this article simulates the economic and welfare impacts of the US&#x2019;s AD/CV duties on photovoltaic (PV) products imported from China and Taiwan in 2015. The result shows that the AD/CV duties have significant trade destruction and trade diversion effects, relatively moderate trade deflection and depression effects. In the context of globalization, the AD/CV duties have limited remedial effect on the US PV industry, but the United States bears the biggest welfare loss for its AD/CV duties.
Journal: Emerging Markets Finance and Trade
Pages: 409-426
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1515735
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1515735
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:409-426




Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Aizenman
Author-X-Name-First: Joshua
Author-X-Name-Last: Aizenman
Author-Name: Yothin Jinjarak
Author-X-Name-First: Yothin
Author-X-Name-Last: Jinjarak
Author-Name: Jungsuk Kim
Author-X-Name-First: Jungsuk
Author-X-Name-Last: Kim
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Title: Tax Revenue Trends in Latin America and Asia: A Comparative Analysis
Abstract: 
 We take stock of and compare tax revenue trends in Latin America and Asia. The tax revenues to GDP ratios increased significantly in both regions in the 2000s, although they remain visibly below European levels. Our analysis portrays a complex picture of the tax collection challenges facing developing countries. Overall, there remains sizable heterogeneity in the revenue performance of developing countries, and across regions. While progress had been constructed, the gap between the advanced economic systems and developing countries suggests ample room for future fiscal developments, and for more disaggregated studies of the tax mobilization challenges facing developing countries in the wake of the worldwide fiscal crisis.
Journal: Emerging Markets Finance and Trade
Pages: 427-449
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1527686
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1527686
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:427-449




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Wang
Author-X-Name-First: Jun
Author-X-Name-Last: Wang
Author-Name: Zhilong Xie
Author-X-Name-First: Zhilong
Author-X-Name-Last: Xie
Author-Name: Qing Li
Author-X-Name-First: Qing
Author-X-Name-Last: Li
Author-Name: Jinghua Tan
Author-X-Name-First: Jinghua
Author-X-Name-Last: Tan
Author-Name: Rong Xing
Author-X-Name-First: Rong
Author-X-Name-Last: Xing
Author-Name: Yuanzhu Chen
Author-X-Name-First: Yuanzhu
Author-X-Name-Last: Chen
Author-Name: Fengyun Wu
Author-X-Name-First: Fengyun
Author-X-Name-Last: Wu
Title: Effect of Digitalized Rumor Clarification on Stock Markets
Abstract: 
 Stock volatility is influenced by the release, dissemination, and acceptance of information. Rumor clarification is expected to reduce asymmetric information and abnormal stock returns by increasing information transparency. However, investors are irrational, and modern behavioral finance studies attribute non-random stock movements to investors&#x2019; cognitive and emotional biases. The verification of rumor authenticity may cause fluctuations in investor sentiment, which increases impulsive investing behaviors and stock movements. Due to the widespread and fast accessibility of social media, many electronic information platforms have been established to clarify rumors. It is critical to understand the effects of digitalized rumor clarification on stock markets. In this study, we extracted 12,663 rumor-clarification pairs from 1,804,520 social media posts. We quantified the language used in these messages via sentiment analysis, along with online firm behaviors, to study the effect of clarifications on stock markets. Our findings are as follows: (1) Digitalized rumor-clarification messages affect the abnormal returns of relevant stocks. (2) This influence can be quantified and measured by the emotion polarity of rumor clarification. (3) Firms&#x2019; online clarification behaviors, including information disclosure frequency, response time, and wording, have limited to no influence on abnormal returns.
Journal: Emerging Markets Finance and Trade
Pages: 450-474
Issue: 2
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1534683
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1534683
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:2:p:450-474




Template-Type: ReDIF-Article 1.0
Author-Name: Matías Braun
Author-X-Name-First: Matías
Author-X-Name-Last: Braun
Title: How Do Investment, Fundamentals, and Stock Prices Relate Around the World?
Abstract: 
 We assemble a novel data set of industry panel data for the corporate sector and the entire economy across a number of countries to explore the connection between investment and stock prices. The link is present in all samples, in both the aggregate and industry dimensions, and increases with stock market development. Fundamentals are less related to prices in underdeveloped markets but are similarly related to investment everywhere. Thus, the active informant interpretation does not seem to be the main force behind the stock market–investment relationship. In addition, industries that are more dependent on equity finance, and where investors are strongest, exhibit higher sensitivity to prices, especially in developed markets.
Journal: Emerging Markets Finance and Trade
Pages: 2772-2789
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2015.1105639
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1105639
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:12:p:2772-2789




Template-Type: ReDIF-Article 1.0
Author-Name: Emrah I. Cevik
Author-X-Name-First: Emrah I.
Author-X-Name-Last: Cevik
Author-Name: Nuket Kirci-Cevik
Author-X-Name-First: Nuket
Author-X-Name-Last: Kirci-Cevik
Author-Name: Sel Dibooglu
Author-X-Name-First: Sel
Author-X-Name-Last: Dibooglu
Title: Global Liquidity and Financial Stress: Evidence from Major Emerging Economies
Abstract: 
 We examine the relationship between financial stress and global liquidity for the so-called fragile five emerging economies (Brazil, India, Indonesia, South Africa, and Turkey). By using an extensive set of variables that take into account the structural characteristics of these economies, we construct a financial stress index. We then use a Markov regime switching model to identify the high financial stress episodes. We examine periods of heightened financial stress and its relationship to high incidence of domestic and global disturbances. Finally, we construct a global financial liquidity index and assess the relationship between financial stress and global liquidity. Using a bivariate Markov regime switching VAR model, we find a regime-dependent relation between global liquidity and financial stress. Moreover, global liquidity shocks seem to strain these emerging economies in such a way that global illiquidity heightens financial stress.
Journal: Emerging Markets Finance and Trade
Pages: 2790-2807
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1140456
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1140456
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:12:p:2790-2807




Template-Type: ReDIF-Article 1.0
Author-Name: H. Young Baek
Author-X-Name-First: H. Young
Author-X-Name-Last: Baek
Author-Name: Dong Young Lee
Author-X-Name-First: Dong Young
Author-X-Name-Last: Lee
Title: Motives for and Effects of Asset Revaluation: An Examination of South Korean Data
Abstract: 
 Examining a sample of South Korean firms, of which 201 revalued assets and 899 did not during the period 2008–2009, we find that the average debt cost, equity cost, and weighted average cost of capital (WACC) are higher among the firms that revalued. Firms with higher equity costs and leverage are more likely to revalue and the propensity has a negative relationship with profitability, cash flow, and Tobin’s q. Firms that engage in revaluation experience reductions in all capital costs from year −1 to +1, comparable to those among firms that did not revalue. Our results support both the information hypothesis and the debt-cost hypothesis.
Journal: Emerging Markets Finance and Trade
Pages: 2808-2817
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1209360
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1209360
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:12:p:2808-2817




Template-Type: ReDIF-Article 1.0
Author-Name: Wojciech Grabowski
Author-X-Name-First: Wojciech
Author-X-Name-Last: Grabowski
Author-Name: Aleksander Welfe
Author-X-Name-First: Aleksander
Author-X-Name-Last: Welfe
Title: An Exchange Rate Model with Market Pressures and a Contagion Effect
Abstract: 
 The model we propose includes variables accounting for the behavioral aspects of decision-making in the currency markets, namely the contagion effect between countries in the same region. It combines the classical purchasing power parity (PPP) and uncovered interest rate parity (UIP) hypotheses with the effects of risk aversion in financial markets and of currency market pressures.The results based on the Polish data confirm that the currency market instabilities arise not only from fundamental factors such as economic activity and the country’s balance of payments, but also from the contagion effect brought about by investors’ tendency to view Poland and its neighbors, the Czech Republic and Hungary, as one group.
Journal: Emerging Markets Finance and Trade
Pages: 2706-2720
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1216931
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216931
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:12:p:2706-2720




Template-Type: ReDIF-Article 1.0
Author-Name: Gonzalo Camba-Méndez
Author-X-Name-First: Gonzalo
Author-X-Name-Last: Camba-Méndez
Author-Name: Konrad Kostrzewa
Author-X-Name-First: Konrad
Author-X-Name-Last: Kostrzewa
Author-Name: Anna Marszal
Author-X-Name-First: Anna
Author-X-Name-Last: Marszal
Author-Name: Dobromił Serwa
Author-X-Name-First: Dobromił
Author-X-Name-Last: Serwa
Title: Pricing Sovereign Credit Risk of Poland: Evidence from the CDS Market
Abstract: 
 We analyze the market assessment of sovereign credit risk using a reduced-form model to price the credit default swap (CDS) spreads, thus enabling us to derive values for the probability of default (PD) and loss given default (LGD) from the quotes of sovereign CDS contracts. We compare different specifications of the models allowing for both fixed and time-varying LGD, and we use these values to analyze the sovereign credit risk of Polish debt throughout the period of a global financial crisis. Our results suggest the presence of a low LGD and a relatively high PD during a recent financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 2687-2705
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1216935
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216935
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:12:p:2687-2705




Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Będowska-Sójka
Author-X-Name-First: Barbara
Author-X-Name-Last: Będowska-Sójka
Title: Liquidity Dynamics Around Jumps: The Evidence from the Warsaw Stock Exchange
Abstract: 
 The aim of our study is to examine the dynamics of trading volume and the number of trades around jumps detected in intraday stock returns. We detect jumps in equally spaced 10-minute returns for most liquid stocks quoted on the Warsaw Stock Exchange within one-year sample period. We match jumps with macroeconomic and firm specific news. We find that only the minority of jumps is associated with public information releases, whereas the majority of them is motivated by liquidity shocks observed in the spreads, volume, and the number of trades. Our findings show that jumps are related to the inability of the market to absorb new and big orders. Liquidity shocks in volatility, volume, and quoted spread are the key drivers accompanying the occurrence of the jumps. Finally, the introduction of a faster and more efficient trading system improves the liquidity by increasing the depth of the market.
Journal: Emerging Markets Finance and Trade
Pages: 2740-2755
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1216937
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216937
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:12:p:2740-2755




Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Adam Szyszka
Author-X-Name-First: Adam
Author-X-Name-Last: Szyszka
Title: Is the Abnormal Post-IPO Underperformance Really Abnormal? The Evidence from CEE Emerging Markets
Abstract: 
 Using sorting procedures and cross-sectional tests, we investigate the long-run post-IPO performance and its sources in the Central and Eastern European (CEE) markets. We examine over 1100 stocks from 11 CEE countries for the period 2002–2014. We find that “old stocks” perform significantly better than “young stocks”, but only when the market beta is the sole risk factor considered. After accounting for the size and value effects, the IPO firms perform neither better nor worse than non-issuing companies. The sources of the initial low B/M ratios of debuting companies may lie in time-varying financial quality. The market newcomers are financially healthier than their older counterparts. However, over 2–5 years the fundamentals deteriorate and the financial standing regresses to the mean.
Journal: Emerging Markets Finance and Trade
Pages: 2721-2739
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1216988
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216988
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Template-Type: ReDIF-Article 1.0
Author-Name: Elżbieta Kubińska
Author-X-Name-First: Elżbieta
Author-X-Name-Last: Kubińska
Author-Name: Marcin Czupryna
Author-X-Name-First: Marcin
Author-X-Name-Last: Czupryna
Author-Name: Łukasz Markiewicz
Author-X-Name-First: Łukasz
Author-X-Name-Last: Markiewicz
Author-Name: Jan Czekaj
Author-X-Name-First: Jan
Author-X-Name-Last: Czekaj
Title: Technical Analysis as a Rational Tool of Decision Making for Professional Traders
Abstract: 
 The psychological background of technical analysis usage is investigated to further explain the popularity and common usage of technical analysis as an investment decision tool. Attitudes toward technical analysis of professional futures market traders and neophyte investors, represented by finance students, were examined. Technical analysis is one of the most popular methods supporting investment decisions and it is much more popular among future market traders than among neophyte investors. The concept of processing information was used to explain this phenomenon. Neophyte investors are more experiential and intuition-driven while using technical analysis models, while futures market traders are more rationally driven. Technical analysis methods help professional traders on futures markets, which are less transparent than regulated stock markets, to process information; those methods are perceived by them as rational, cognitive tools supporting their decision making.
Journal: Emerging Markets Finance and Trade
Pages: 2756-2771
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1217004
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1217004
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:12:p:2756-2771




Template-Type: ReDIF-Article 1.0
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Ailun Wang
Author-X-Name-First: Ailun
Author-X-Name-Last: Wang
Title: Regional Energy Efficiency of China’s Commercial Sector: An Emerging Energy Consumer
Abstract: 
 This article applies a parametric metafrontier method and the Malmquist index to analyze the energy efficiency and its dynamic performance in China’s commercial sector from 1995 to 2013. The results indicate that the energy efficiency in China’s commercial sector is generally low, and there are significant regional differences and enormous energy-saving potentials. Relative to metafrontier, commercial sectors in eastern China have relatively higher energy efficiency; while those in central and western China have relatively low energy efficiency. Besides, the dynamic energy efficiency performance in China’s commercial sector has improved over the period. The technology improvement is a major driving factor to improve the energy efficiency in the commercial sectors of all the three regions.
Journal: Emerging Markets Finance and Trade
Pages: 2818-2836
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1224176
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1224176
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Template-Type: ReDIF-Article 1.0
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Qingying Zheng
Author-X-Name-First: Qingying
Author-X-Name-Last: Zheng
Title: Has Petroleum Pricing Reform in China Achieved Its Objective? An Empirical Study
Abstract: 
 China’s petroleum pricing reform has started since 1998 and is still ongoing. It has a profound impact on China’s oil market and even global oil market. We quantitatively evaluate the effectiveness of the reform on two key issues. Has the pricing reform strengthened the linkage between the international crude market and China’s petroleum products market? Has the pricing reform magnified shocks to the international crude market on China’s economy? Our results show that the reform has strengthened the relationship between China’s petroleum prices and international crude price without negative influence on China’s economy, but the effect of China’s petroleum prices on international crude price is still limited. Furthermore, the reform helps the Chinese government reduce oil subsidies.
Journal: Emerging Markets Finance and Trade
Pages: 2837-2845
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1224710
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1224710
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Template-Type: ReDIF-Article 1.0
Author-Name: Jerzy Gajdka
Author-X-Name-First: Jerzy
Author-X-Name-Last: Gajdka
Author-Name: Janusz Brzeszczyński
Author-X-Name-First: Janusz
Author-X-Name-Last: Brzeszczyński
Title: Neoclassical and Behavioral Finance: A Synergy of Approaches in Current Debates and in Contemporary Financial Research
Journal: Emerging Markets Finance and Trade
Pages: 2685-2686
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1246331
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1246331
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board EOV
Journal: Emerging Markets Finance and Trade
Pages: ebi-ebi
Issue: 12
Volume: 52
Year: 2016
Month: 12
X-DOI: 10.1080/1540496X.2016.1253298
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1253298
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Template-Type: ReDIF-Article 1.0
Author-Name: Yihua Yu
Author-X-Name-First: Yihua
Author-X-Name-Last: Yu
Author-Name: Wen Zhang
Author-X-Name-First: Wen
Author-X-Name-Last: Zhang
Title: The Role of China’s Demand in Global Oil Price Dynamics
Abstract: 
 Using a time-varying parameter VAR model, this article documents the evolution in the responses of the global oil market and the Chinese economy to the identified oil supply shock and the China demand shock. The positive oil supply shock raises output while reduces inflation in China, but the effects are more ambiguous compared with the advanced economies. The counterfactual simulations point to an important role of the China demand shock in driving up the oil price during 2007–2008 and the postrecession recovery phase.
Journal: Emerging Markets Finance and Trade
Pages: 1199-1215
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1445621
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1445621
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Template-Type: ReDIF-Article 1.0
Author-Name: Shimei Wu
Author-X-Name-First: Shimei
Author-X-Name-Last: Wu
Author-Name: Xinye Zheng
Author-X-Name-First: Xinye
Author-X-Name-Last: Zheng
Author-Name: Feng Song
Author-X-Name-First: Feng
Author-X-Name-Last: Song
Title: Direct and Indirect Effects of Energy-Intensive Industries on Energy Consumption in China
Abstract: 
 In addition to the direct energy consumption during the production process, energy-intensive industries can have indirect effects on energy demand because they are upstream industries and have substantial sectoral linkage across the economy. We quantitatively identify the direct and indirect effects of energy-intensive industries using a two-stage approach. First, we study how aggregate energy consumption responds to economic growth and growth of energy-intensive industries. Next, we study the effects of each energy-intensive industry on economic growth and then calculate the indirect effect of energy-intensive sectors on energy consumption. The results indicate that all six energy-intensive products have strong indirect energy effects, making up 20% to almost 60% of their total effects on energy consumption. The results have important policy implications. With the slowing down growth of energy-intensive industries, we expect that China’s energy consumption is undergoing a structural shift which leads to a much slower growth stage.
Journal: Emerging Markets Finance and Trade
Pages: 1216-1228
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1447462
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1447462
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Template-Type: ReDIF-Article 1.0
Author-Name: Jian Chai
Author-X-Name-First: Jian
Author-X-Name-Last: Chai
Author-Name: Ting Liang
Author-X-Name-First: Ting
Author-X-Name-Last: Liang
Author-Name: Zhe George Zhang
Author-X-Name-First: Zhe George
Author-X-Name-Last: Zhang
Author-Name: Sophie Kong
Author-X-Name-First: Sophie
Author-X-Name-Last: Kong
Author-Name: Zenghui Liu
Author-X-Name-First: Zenghui
Author-X-Name-Last: Liu
Title: Rationality of Natural Gas Prices and the Determining Factors in China
Abstract: 
 The rationality of natural gas price has a significant impact on a nation’s energy-saving strategies, emission reduction, and therefore the overall economy. This article examines the rationality of the natural gas pricing strategies in China through an investigation of the natural gas price distortions in domestic and international markets and the natural gas price determining factors using a Bayesian structural equation model. It is found that there are significant distortions in the industrial, residential, and commercial sectors compared to alternative energy sources. Further analysis suggests that these distortions could cause a “reverse substitution” in the domestic energy market. Compared to the international market, Chinese natural gas prices are found to be expensive and to lack price elasticity. The results also indicate that economic activities and demand are the most important natural gas price determinants, followed by supply and alternative fuel prices. This article provides empirical evidence to assist in natural gas pricing reforms in China and presents a basis for the design of reasonable energy pricing policies.
Journal: Emerging Markets Finance and Trade
Pages: 1229-1246
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1471596
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1471596
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Template-Type: ReDIF-Article 1.0
Author-Name: Armağan Gezici
Author-X-Name-First: Armağan
Author-X-Name-Last: Gezici
Author-Name: Özgür Orhangazi
Author-X-Name-First: Özgür
Author-X-Name-Last: Orhangazi
Author-Name: Cihan Yalçın
Author-X-Name-First: Cihan
Author-X-Name-Last: Yalçın
Title: Determinants of Investment in Turkey: A Firm-Level Investigation
Abstract: 
 In this article, we analyze the financing constraints-investment link for the case of Turkey between 1996 and 2013. As different from the existing studies on Turkey, we use a more comprehensive data set that includes both publicly-traded and privately-owned firms and analyze the differences in constraints across small- and medium-sized firms and large firms. In addition to the commonly used cash-flow sensitivities, we use alternative measures of constraints build from multiple firm specific variables. We find that small- and medium-sized manufacturing firms in Turkey are subject to financing constraints regardless of the measure used.
Journal: Emerging Markets Finance and Trade
Pages: 1405-1416
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1473247
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1473247
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:6:p:1405-1416




Template-Type: ReDIF-Article 1.0
Author-Name: Fenghua Wen
Author-X-Name-First: Fenghua
Author-X-Name-Last: Wen
Author-Name: Jihong Xiao
Author-X-Name-First: Jihong
Author-X-Name-Last: Xiao
Author-Name: Xiaohua Xia
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Xia
Author-Name: Bin Chen
Author-X-Name-First: Bin
Author-X-Name-Last: Chen
Author-Name: Zhengyan Xiao
Author-X-Name-First: Zhengyan
Author-X-Name-Last: Xiao
Author-Name: Jinyi Li
Author-X-Name-First: Jinyi
Author-X-Name-Last: Li
Title: Oil Prices and Chinese Stock Market: Nonlinear Causality and Volatility Persistence
Abstract: 
 This article mainly focuses on investigating the nonlinear co-integration and nonlinear causality relationships between oil prices and Chinese stock market at the overall and sectoral levels by using nonlinear autoregressive distributed lags (NARDL) model and Diks and Panchenko (DP) test. The empirical results show that there are not significantly asymmetric co-integration effects between oil prices and Chinese stock market for the overall and sectoral levels. However, the significantly nonlinear causality between oil prices and Chinese stock market can be found. Specifically, oil prices can widely affect Chinese stock indices through nonlinear channel. The cases in the reverse also work for overall indices and Mining, Utilities, Financial and Real Estate sectors. Furthermore, the potential sources of these nonlinear causality linkages are examined. The results suggest that volatility persistence rather than asymmetrical co-integration is the major factor that accounts for the nonlinear causality between oil prices and Chinese stock market.
Journal: Emerging Markets Finance and Trade
Pages: 1247-1263
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1496078
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496078
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Template-Type: ReDIF-Article 1.0
Author-Name: Mingxi Wang
Author-X-Name-First: Mingxi
Author-X-Name-Last: Wang
Author-Name: Ming Li
Author-X-Name-First: Ming
Author-X-Name-Last: Li
Author-Name: Qiang Feng
Author-X-Name-First: Qiang
Author-X-Name-Last: Feng
Author-Name: Yi Hu
Author-X-Name-First: Yi
Author-X-Name-Last: Hu
Title: Pros and Cons of Replacing Grandfathering by Auctioning for Heterogeneous Enterprises in China’s Carbon Trading
Abstract: 
 To provide some experience and lessons for China’s emission trading scheme (ETS), this article assess the performance of carbon trading pilots from the perspectives of abatement effectiveness and economic efficiency. By developing an emission decision-making model and an asymmetric permits auction model, it is found that replacing grandfathering by auctioning may avoid the occurrence of emitters’ adverse selection and improve the ETS’s effectiveness. However, for heterogeneous enterprises, auctioning may not achieve social optimality, which renders the ETS inefficient. To correct the inefficiency, two macro-regulation tools are discussed. As a result, the auction with macro-regulations is an alternative efficient market-based instrument for China ETS.
Journal: Emerging Markets Finance and Trade
Pages: 1264-1279
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1504209
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1504209
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:6:p:1264-1279




Template-Type: ReDIF-Article 1.0
Author-Name: Huimin Bi
Author-X-Name-First: Huimin
Author-X-Name-Last: Bi
Author-Name: Hao Xiao
Author-X-Name-First: Hao
Author-X-Name-Last: Xiao
Author-Name: Kejuan Sun
Author-X-Name-First: Kejuan
Author-X-Name-Last: Sun
Title: The Impact of Carbon Market and Carbon Tax on Green Growth Pathway in China: A Dynamic CGE Model Approach
Abstract: 
 Carbon market and carbon tax affect economic activity in various ways, resulting in different pathways for green growth in China. We build a dynamic computable general equilibrium (CGE) model to discuss the differences in green growth paths induced by differences in intrinsic technical incentives in carbon-abatement policies under three scenarios: a carbon market, a carbon tax, and a mixed policy. The main results are as follows. In carbon market scenario, although the short-term carbon mitigation effect is less prominent, the double dividend of emissions reduction and the gross domestic product (GDP) growth will come about in the long run according to the Porter hypothesis. Carbon tax leads to a relatively dramatic decrease in the growth of GDP and a positive effect on carbon mitigation in the short run; however, these effects decline in the long run. The effect of the mixed policy is not simple combination of the impacts of the above two policies, but shows another pathway for green growth.
Journal: Emerging Markets Finance and Trade
Pages: 1312-1325
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1505609
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1505609
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:6:p:1312-1325




Template-Type: ReDIF-Article 1.0
Author-Name: Lili Wang
Author-X-Name-First: Lili
Author-X-Name-Last: Wang
Author-Name: Rui Zhuang
Author-X-Name-First: Rui
Author-X-Name-Last: Zhuang
Author-Name: Shunwu Huang
Author-X-Name-First: Shunwu
Author-X-Name-Last: Huang
Author-Name: Yong Zhao
Author-X-Name-First: Yong
Author-X-Name-Last: Zhao
Title: Quality Competition Versus Price Competition: Why Does China Dominate the Global Solar Photo-Voltaic Market?
Abstract: 
 Using highly disaggregated firm-level data that cover 2,006 firms and 140 destinations over the period 2000–2013, this article empirically investigates the export pricing decisions and the competition patterns of China’s solar photo-voltaic (PV) firms when there is selection into exporting. We find that ignoring the market-selection issue could lead to severe estimation bias if selection into exporting is correlated with pricing behavior. After controlling for selection bias, the results reveal that country characteristics and firm heterogeneity are important not only in explaining the vast differences in export prices but also in affecting how exporters compete in the global market. More productive firms and firms exporting to larger markets tend to compete in quality, whereas firms with better financial conditions are more likely to engage in price competition.
Journal: Emerging Markets Finance and Trade
Pages: 1326-1342
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1507905
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1507905
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:6:p:1326-1342




Template-Type: ReDIF-Article 1.0
Author-Name: Lili Fu
Author-X-Name-First: Lili
Author-X-Name-Last: Fu
Author-Name: Fengyun Wu
Author-X-Name-First: Fengyun
Author-X-Name-Last: Wu
Title: Culture and Enterprise Rent-Seeking: Evidence from Native Place Networks among Officials in China
Abstract: 
 Using data on Chinese municipal party secretaries (MPS), we study whether firms prefer to pay more to officials who have a wider native place network. In doing so, we find the state-owned enterprises (SOEs) are more willing to pay for benefits from an official’s native place network. Furthermore, we investigate why firms pay for access to officials who have a wider native place network. On the one hand, as an important political social resource, officials’ native place networks enhance the probability of officials’ promotion. The firm is just buying a “political call option.” On the other hand, an MPS’s native place network can help firms to have more merger and acquisition activity. Using officials’ native place networks, this article provides a new angle on the effect of traditional culture on rent-seeking by firms.
Journal: Emerging Markets Finance and Trade
Pages: 1388-1404
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1512851
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1512851
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:6:p:1388-1404




Template-Type: ReDIF-Article 1.0
Author-Name: Bingbing Zhang
Author-X-Name-First: Bingbing
Author-X-Name-Last: Zhang
Author-Name: Xi Tian
Author-X-Name-First: Xi
Author-X-Name-Last: Tian
Title: Economic Transition under Carbon Emission Constraints in China: An Evaluation at the City Level
Abstract: 
 This study evaluates economic efficiency under carbon emissions constraints from 2002 to 2011 at the prefectural-city level in China. Based on a dynamic slacks-based measure (SBM) mechanism incorporating undesirable outputs, this study builds a dynamic efficiency indicator to evaluate economic transition in 256 cities in China. By design, the dynamic efficiency indicators are comparable across time and region, allowing us to group 256 cities into 3 transition-stage groups using a linear-trend regression. Specifically, the study identifies 29 cities that are improving and 106 cities that are deteriorating; the rest are stagnating. Further, the study examines the impact of technical progress, institutional change, industrial structure, and energy consumption structure on transition stages in each city with several panel-data estimation methods. Our results reveal that government intervention and heavy industrialization are the major obstacles to a transition to low-carbon energy use; technological progress and greater openness are the main driving forces behind a successful transition. The results are robust to different specifications.
Journal: Emerging Markets Finance and Trade
Pages: 1280-1293
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1523056
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1523056
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:6:p:1280-1293




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Batten
Author-X-Name-First: Jonathan
Author-X-Name-Last: Batten
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Determinants of Bank Profitability—Evidence from Vietnam
Abstract: 
 This article investigates the determinants of bank profitability in Vietnam covering the period from 2006 to 2014. Employing a number of econometric panel data methods with a unique dataset, the findings of the article indicate that bank size, capital adequacy, risk, expense, and productivity have strong impacts on profitability. We also find that bank industry characteristics and macroeconomic variables affect bank profitability. However, we find that the direction of causality is not uniform across profitability measures.
Journal: Emerging Markets Finance and Trade
Pages: 1417-1428
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1524326
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1524326
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:6:p:1417-1428




Template-Type: ReDIF-Article 1.0
Author-Name: Rui Xie
Author-X-Name-First: Rui
Author-X-Name-Last: Xie
Author-Name: Linyuan Huang
Author-X-Name-First: Linyuan
Author-X-Name-Last: Huang
Author-Name: Boshi Tian
Author-X-Name-First: Boshi
Author-X-Name-Last: Tian
Author-Name: Jiayu Fang
Author-X-Name-First: Jiayu
Author-X-Name-Last: Fang
Title: Differences in Changes in Carbon Dioxide Emissions among China’s Transportation Subsectors: A Structural Decomposition Analysis
Abstract: 
 In recent years, one of the largest and most rapidly growing emitters of carbon dioxide (CO2) in China is the transportation industry. This article applies the structural decomposition analysis (SDA) method to identify the driving forces of CO2 emissions in four subsectors of the transportation industry in China and distinguishes the main final demand patterns that increase its emissions. Our results show that, first, during the study period, the expansion in demand was the largest contributor to the increase in CO2 emissions in the transportation industry, whereas the energy intensity effect played a dominant role in reducing emissions. In addition, CO2 emissions among four subsectors differed significantly not only in terms of changes in quantity but also the impacts of influencing factors. Moreover, most of the recent growth in CO2 emissions in China’s transportation industry has been driven by investment and exports. Because of the wide heterogeneity of changes in CO2 emissions among different transportation sectors, the particularities of each subsector should be taken into account in formulating pollution abatement policies in the transportation industry.
Journal: Emerging Markets Finance and Trade
Pages: 1294-1311
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1526076
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1526076
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:6:p:1294-1311




Template-Type: ReDIF-Article 1.0
Author-Name: Aolin Leng
Author-X-Name-First: Aolin
Author-X-Name-Last: Leng
Author-Name: Zihan Liu
Author-X-Name-First: Zihan
Author-X-Name-Last: Liu
Author-Name: Guangyuan Xing
Author-X-Name-First: Guangyuan
Author-X-Name-Last: Xing
Author-Name: Yixin Li
Author-X-Name-First: Yixin
Author-X-Name-Last: Li
Title: China’s Investment Incentive Strategy for Shale Gas Development
Abstract: 
 Against the backdrop of the uncertainty and irreversibility of shale gas development investment, we use the real option analysis framework to study how the government can optimally arrange an investment incentive policy for shale gas development and promote the immediate investment of enterprises under shale gas price uncertainty. In this article, we present two types of investment incentive policies for shale gas development, namely tax reductions and production subsidies. The output characteristics of shale gas development are included in the real option model. From this study, the government incentive level required to trigger the immediate investment of enterprises will rise with an increase in shale gas price volatility and the output decline rate and decrease with an increase in the initial gas recovery rate. When shale gas price volatility and the output decline rate are less than a certain level or the initial recovery rate is greater than a certain level, enterprises’ investment will be spontaneous, even without government incentives. The study reveals that shale gas development incentives for the immediate investment of enterprises need to focus not only on the uncertainty of the external environment, but also on the shale gas resource endowment characteristics in Chinese regions.
Journal: Emerging Markets Finance and Trade
Pages: 1343-1356
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1534681
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1534681
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Template-Type: ReDIF-Article 1.0
Author-Name: Li Xie
Author-X-Name-First: Li
Author-X-Name-Last: Xie
Author-Name: Tengfei Wang
Author-X-Name-First: Tengfei
Author-X-Name-Last: Wang
Author-Name: Tuo Zhang
Author-X-Name-First: Tuo
Author-X-Name-Last: Zhang
Title: Factors Affecting the Intensity of Industrial Carbon Emissions: Empirical Evidence from Chinese Heterogeneous Subindustries
Abstract: 
 By dynamically calculating the intensity of carbon dioxide (CO2) emissions in 36 Chinese two-digit industries, this article constructs linear and nonlinear generalized methods of moment estimation, respectively, to empirically analyze the relationships between the industrial CO2 emissions intensity(CEI) and industrial factors, including the structure of energy consumption and of ownership as well as the level of industry revenues. The results show that the CEI of Chinese industry and its subindustries show a downward trend. Furthermore, CEI can be significantly curbed by optimizing the energy consumption structure and promoting technological progress. Except for technology-intensive industries, CEI can be reduced by improving the proportion of privatization and tax abatement. Expanding the industrial scale can significantly reduce Chinese industrial CEI, especially in labor-intensive industries. Despite a non-linear relationship between several factors and industrial CEI, the subindustries exhibit great heterogeneity.
Journal: Emerging Markets Finance and Trade
Pages: 1357-1374
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1541792
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1541792
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Template-Type: ReDIF-Article 1.0
Author-Name: Shiqing Xie
Author-X-Name-First: Shiqing
Author-X-Name-Last: Xie
Author-Name: Yuwei Jia
Author-X-Name-First: Yuwei
Author-X-Name-Last: Jia
Title: Margin Trading and Volatility: Further Evidence from China’s Stock Market
Abstract: 
 Different methods were implemented for each margin trading policy stage to estimate policy impacts on volatility of China’s stock markets, which include but not limited to VAR model, impulse response function, and ARCH regression model. Unlike results from previous literature, this study shows that in the first two periods before policies were fully developed, margin trading was associated with an increase in the volatility. Only in the last period with the launch of a refinancing mechanism did the effect of reducing market volatility of margin trade start to take place, and this effect was statistically significant and large in magnitude.
Journal: Emerging Markets Finance and Trade
Pages: 1375-1387
Issue: 6
Volume: 55
Year: 2019
Month: 5
X-DOI: 10.1080/1540496X.2018.1558052
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1558052
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Template-Type: ReDIF-Article 1.0
Author-Name: Aliaa Bassiouny
Author-X-Name-First: Aliaa
Author-X-Name-Last: Bassiouny
Author-Name: Eskandar Tooma
Author-X-Name-First: Eskandar
Author-X-Name-Last: Tooma
Title: Trading Better Versus Making More: Evidence from an Emerging Market
Abstract: 
 Using transaction data from Egypt, we examined the controversy over which investor—domestic or foreign—has superior trading performance in emerging markets. We account for informational and behavioral differences across investors by classifying them by origin and type and comparing their performance in trade execution versus profitability. Domestic institutions execute trades at the best prices with the greatest advantage against foreign institutions. This advantage is reduced when foreign institutions focus on large firms and trades. Profitability analysis revealed, however, that domestic investors accrue significant losses against foreign investors, suggesting that trading better does not necessarily translate into making more money.
Journal: Emerging Markets Finance and Trade
Pages: 1779-1795
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1180511
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1180511
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Template-Type: ReDIF-Article 1.0
Author-Name: Ghulam Sarwar
Author-X-Name-First: Ghulam
Author-X-Name-Last: Sarwar
Author-Name: Walayet Khan
Author-X-Name-First: Walayet
Author-X-Name-Last: Khan
Title: The Effect of US Stock Market Uncertainty on Emerging Market Returns
Abstract: 
 We investigate the effects of US stock market uncertainty (VIX) on the stock returns in Latin America and aggregate emerging markets before, during, and after the financial crisis. We find that increases in VIX lead to significant immediate and delayed declines in emerging market returns in all periods. However, changes in VIX explained a greater percentage of changes in emerging market returns during the financial crisis than in other periods. The higher US stock market uncertainty exerts a much stronger depressing effect on emerging market returns than their own-lagged and regional returns. Our risk transmission model suggests that a heightened US stock market uncertainty lowers emerging market returns by both reducing the mean returns and raising the variance of returns. The VIX fears raise the volatility of emerging market returns through generalized autoregressive conditional heteroskedasticity (GARCH)-type volatility transmission processes.
Journal: Emerging Markets Finance and Trade
Pages: 1796-1811
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1180592
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1180592
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaojian Yu
Author-X-Name-First: Xiaojian
Author-X-Name-Last: Yu
Author-Name: Zewei Chen
Author-X-Name-First: Zewei
Author-X-Name-Last: Chen
Author-Name: Weidong Xu
Author-X-Name-First: Weidong
Author-X-Name-Last: Xu
Author-Name: Junhui Fu
Author-X-Name-First: Junhui
Author-X-Name-Last: Fu
Title: Forecasting Bull and Bear Markets: Evidence from China
Abstract: 
 This article extends previous empirical research to forecast Chinese bull and bear stock markets by using three types of binary probit time series models, which are static, autoregressive, and dynamic autoregressive models. This study shows that the dynamic auto regressive model performs the best both in- and out-of-sample. The inflation and market return variables significantly affect the market forecast. The dynamic autoregressive model has successfully forecast the bull and bear markets since 2007. The investment strategy based on this model performs better than the simple buy-and-hold strategy, especially after the Chinese government reformed the non-tradable shares in 2005.
Journal: Emerging Markets Finance and Trade
Pages: 1720-1733
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1184141
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1184141
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Template-Type: ReDIF-Article 1.0
Author-Name: Jian Chen
Author-X-Name-First: Jian
Author-X-Name-Last: Chen
Author-Name: Chen He
Author-X-Name-First: Chen
Author-X-Name-Last: He
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Title: Time-Varying Variance Risk Premium and the Predictability of Chinese Stock Market Return
Abstract: 
 A number of studies have shown that the variance risk premium (VRP), defined as the difference between risk-neutral and physical expected variances, has strong predictive power for the excess stock market return, and this predictability peaks at 3- to 6-month prediction horizons. However, little research presents empirical evidences for Chinese stock market due to the absence of option market. Under general equilibrium asset pricing framework, this article estimates time-varying VRP using the Chinese stock market data. We find that the estimated VRP predicts the excess Chinese stock market return, and this forecasting power is stronger at 4- and 5-month horizons, which is consistent with the findings of existing literature.
Journal: Emerging Markets Finance and Trade
Pages: 1734-1748
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1186010
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1186010
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Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandra Hałka
Author-X-Name-First: Aleksandra
Author-X-Name-Last: Hałka
Author-Name: Jacek Kotłowski
Author-X-Name-First: Jacek
Author-X-Name-Last: Kotłowski
Title: Global or Domestic? Which Shocks Drive Inflation in European Small Open Economies?
Abstract: 
 We investigate which shocks drive inflation in small open economies. In the first step, we use the structural vector autoregressive (SVAR) approach to identify the global shocks. Second, we regress the disaggregated price indices for selected European economies on the global shocks controlling for the domestic variables. We find that the fluctuations of inflation in the analyzed countries are to large extent determined by the cyclical movements of the domestic output gap however the commodity shock also contributes strongly to inflation variability. The role of the non-commodity global supply shock is less prominent, however, interpreted to some extent as a globalization shock, for most of the analyzed period lowers the inflation. Nonetheless, in the aftermath of the global financial crisis, this shock reversed what may be interpreted as the weakening of the globalization process.
Journal: Emerging Markets Finance and Trade
Pages: 1812-1835
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1193001
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1193001
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Template-Type: ReDIF-Article 1.0
Author-Name: Lucas Argentieri Mariani
Author-X-Name-First: Lucas Argentieri
Author-X-Name-Last: Mariani
Author-Name: Márcio Poletti Laurini
Author-X-Name-First: Márcio Poletti
Author-X-Name-Last: Laurini
Title: Implicit Inflation and Risk Premiums in the Brazilian Fixed Income Market
Abstract: 
 The breakeven inflation, the differential between nominal and real yields of bonds, is often used as a predictor of future inflation. The model presented here decomposes this interest rate differential into a risk premium and implicit inflation using a parametric formulation based on no-arbitrage conditions using nominal and indexed yield curves in Brazil, via an affine model of the Nelson–Siegel family. The measures of implicit inflation obtained from the model are shown to be unbiased estimators of future inflation for short horizons and carry some information for long horizons, and the model forecasts are superior to market surveys.
Journal: Emerging Markets Finance and Trade
Pages: 1836-1853
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1193730
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1193730
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Template-Type: ReDIF-Article 1.0
Author-Name: Jianfeng Yu
Author-X-Name-First: Jianfeng
Author-X-Name-Last: Yu
Author-Name: Weidong Xu
Author-X-Name-First: Weidong
Author-X-Name-Last: Xu
Title: A Strategic Asset Pricing Model for Relative Performance Concern
Abstract: 
 We propose a strategic asset pricing model for the relative performance concern with heterogeneous beliefs in the framework of Nash equilibrium. In our model, the presence of heterogeneous beliefs generates the upward pressure on the stock market volatility and gives rise to the separation of agents’ perceived Sharpe ratios. We show that if one of the agents temporarily wins the market, the presence of relative performance concern will reduce the impacts of the winner and make the investors who have been edged out of the market more inclined to return. Besides, the sufficiently strong concern of relative performance will bring investors the extreme aversion to losing and get them to trade similarly.
Journal: Emerging Markets Finance and Trade
Pages: 1764-1778
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1195255
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1195255
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Template-Type: ReDIF-Article 1.0
Author-Name: Qin Zhou
Author-X-Name-First: Qin
Author-X-Name-Last: Zhou
Author-Name: Qing He
Author-X-Name-First: Qing
Author-X-Name-Last: He
Author-Name: Yan Yuan
Author-X-Name-First: Yan
Author-X-Name-Last: Yuan
Title: Does Residential Housing Crowd Out or Promote Households’ Stock Investment? Evidence from China
Abstract: 
 Limited participation in risky financial markets has long been a puzzle. Empirical evidence shows a strong relationship between housing and investment of risky financial assets, but with varying and conflicting results. We contribute to the literature by distinguishing housing for consumption and for investment, and by considering the role of housing price expectation when exploring households’ participation in stock markets. We find that home equity ratio and housing area play significant roles in households’ participation in stock markets. Households with higher home equity ratio or larger housing are less likely to own, and hold fewer stock assets if they do. We also find that the number of houses has a positive effect on stock investment for households with the same home equity ratio and housing size, which could be explained by credit rationing. Furthermore, housing price expectation has a negative effect on stock investment; this effect is larger for homeowners with multiple houses who are more likely to take houses for investment. Our results show insights into conflicting results of the relationship between real estate and stock investment.
Journal: Emerging Markets Finance and Trade
Pages: 1869-1893
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1199381
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1199381
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Template-Type: ReDIF-Article 1.0
Author-Name: Houcem Smaoui
Author-X-Name-First: Houcem
Author-X-Name-Last: Smaoui
Author-Name: Narjess Boubakri
Author-X-Name-First: Narjess
Author-X-Name-Last: Boubakri
Author-Name: Jean-Claude Cosset
Author-X-Name-First: Jean-Claude
Author-X-Name-Last: Cosset
Title: The Politics of Sovereign Credit Spreads
Abstract: 
 Using a large sample of 35 developing countries for the period 1993–2009, we provide strong and robust evidence that the political institutions in place play a significant role in explaining sovereign spreads. In particular, we find that unconstrained presidential systems increase spreads, while political stability and higher competition for political contest decrease spreads. In addition, political cohesion (political fragmentation) depresses (increases) spreads. Instead, the latter are insignificantly related to political orientation.
Journal: Emerging Markets Finance and Trade
Pages: 1894-1922
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1201760
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1201760
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:8:p:1894-1922




Template-Type: ReDIF-Article 1.0
Author-Name: Anick Yaha
Author-X-Name-First: Anick
Author-X-Name-Last: Yaha
Author-Name: Nirvikar Singh
Author-X-Name-First: Nirvikar
Author-X-Name-Last: Singh
Author-Name: Jean Paul Rabanal
Author-X-Name-First: Jean Paul
Author-X-Name-Last: Rabanal
Title: How Do Extreme Global Shocks Affect Foreign Portfolio Investment? An Event Study for India
Abstract: 
 Foreign portfolio flows in and out of India are relevant for policymakers, and are often portrayed in the media as having a destabilizing effect on the domestic market. We use an event study approach to examine whether extreme global shocks trigger abnormal responses in foreign equity flows in and out of India, or abnormal responses in the Indian stock market. We do not find strong evidence of abnormal responses, even for the case of the global crisis of 2008.
Journal: Emerging Markets Finance and Trade
Pages: 1923-1938
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1204599
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1204599
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:8:p:1923-1938




Template-Type: ReDIF-Article 1.0
Author-Name: Zheng Qiao
Author-X-Name-First: Zheng
Author-X-Name-Last: Qiao
Author-Name: Yangshu Liu
Author-X-Name-First: Yangshu
Author-X-Name-Last: Liu
Title: Open Market Operation Effectiveness in China
Abstract: 
 This paper examines the effectiveness of target rate guidance in open market operation by the central bank in China (PBOC). We find that target rate change in open market operation is effective in adjusting the short-term Treasury rates. The target rate changing direction is more effective than the target rate changing level. There is no significant asymmetry in the effectiveness between the target rate increase and target rate decrease. We also document that the effectiveness of the target rate is conditional on liquidity operation of the same direction, especially when they both aim to loosen the monetary policy. Furthermore, consecutive operations with higher intensity appear to be more effective in adjusting the market interest rate.
Journal: Emerging Markets Finance and Trade
Pages: 1706-1719
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1216839
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216839
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Template-Type: ReDIF-Article 1.0
Author-Name: Guifang Liu
Author-X-Name-First: Guifang
Author-X-Name-Last: Liu
Author-Name: Weijun Xu
Author-X-Name-First: Weijun
Author-X-Name-Last: Xu
Title: Application of Heston’s Model to the Chinese Stock Market
Abstract: 
 This article applies Heston’s (1993) stochastic volatility model to the Chinese stock market indices and subsequently assesses its pricing performance. A two-step estimation procedure is adopted to calibrate Heston’s model. First, we find that the option price is affected by both the moneyness and the maturity. Second, Heston’s model is more likely to overprice options, whereas the BS model tends to underestimate options. Finally, Heston’s model, by employing volatility as a random process, significantly improves the pricing accuracy compared to the BS model. Therefore, Heston’s model is tractable to analyze the Chinese stock market indices, and there is volatility risk that must not be overlooked in the Chinese stock market.
Journal: Emerging Markets Finance and Trade
Pages: 1749-1763
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2016.1219849
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1219849
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Template-Type: ReDIF-Article 1.0
Author-Name: Qizhi Tao
Author-X-Name-First: Qizhi
Author-X-Name-Last: Tao
Author-Name: Yicheng Sun
Author-X-Name-First: Yicheng
Author-X-Name-Last: Sun
Author-Name: Yingjun Zhu
Author-X-Name-First: Yingjun
Author-X-Name-Last: Zhu
Author-Name: Xiaolin Yang
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Yang
Title: Political Connections and Government Subsidies: Evidence from Financially Distressed Firms in China
Abstract: 
 Previous studies report mixed evidence regarding the effect of political connections on firm value. We seek new evidence in China, an important emerging market with a hallmark of a relationship-based economy. Using financially distressed firms (special treatment or ST firms) as a unique sample, we identify a direct channel through which political connections enhance firm value by showing that politically connected firms receive more government subsidies. Moreover, such effect becomes stronger for state-owned enterprises (SOEs), for firms with a better chance of survival, and after the government implemented a new policy to more strictly enforce the delisting in 2012.
Journal: Emerging Markets Finance and Trade
Pages: 1854-1868
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2017.1332592
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1332592
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Template-Type: ReDIF-Article 1.0
Author-Name: Jian Chen
Author-X-Name-First: Jian
Author-X-Name-Last: Chen
Title: Financial Development and Regulation in China
Journal: Emerging Markets Finance and Trade
Pages: 1705-1705
Issue: 8
Volume: 53
Year: 2017
Month: 8
X-DOI: 10.1080/1540496X.2017.1364567
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1364567
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Template-Type: ReDIF-Article 1.0
Author-Name: Flávio de Freitas Val
Author-X-Name-First: Flávio de Freitas
Author-X-Name-Last: Val
Author-Name: Marcelo Cabus Klotzle
Author-X-Name-First: Marcelo Cabus
Author-X-Name-Last: Klotzle
Author-Name: Antonio Carlos Figueiredo Pinto
Author-X-Name-First: Antonio Carlos Figueiredo
Author-X-Name-Last: Pinto
Author-Name: Claudio Henrique da Silveira Barbedo
Author-X-Name-First: Claudio Henrique da Silveira
Author-X-Name-Last: Barbedo
Title: Stock Market Reaction to Monetary Policy: An Event Study Analysis of the Brazilian Case
Abstract: 
 This article examines the relationship between the monetary policy implemented by the Central Bank of Brazil and the stock market. We implement event study analysis and analyze the effect of the anticipated and unanticipated components of monetary policy decisions on the returns of the IBOVESPA index and 53 stocks. We find that monetary policy has a significant effect on the stock market, but is only responsible for a small proportion of market variation. The analysis at the sector level with expected returns identifies that the financial sector is the most affected by this policy, whereas with excess returns only industrial goods are significantly affected. Moreover, individual assets respond in a rather heterogeneous fashion to monetary policy; however, when we look at excess returns, we identify a reduction in the intensity and in the number of companies impacted by monetary policy. Finally, the monetary shock is explained by unanticipated variations in the unemployment rate, in the Industrial Production Index, in the General Market Price Index, and in the Broad Consumer Price Index.
Journal: Emerging Markets Finance and Trade
Pages: 2577-2595
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1364622
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1364622
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Template-Type: ReDIF-Article 1.0
Author-Name: Kizito Uyi Ehigiamusoe
Author-X-Name-First: Kizito Uyi
Author-X-Name-Last: Ehigiamusoe
Author-Name: Hooi Hooi Lean
Author-X-Name-First: Hooi Hooi
Author-X-Name-Last: Lean
Title: Finance–Growth Nexus: New Insights from the West African Region
Abstract: 
 This article examines the impact of financial development on economic growth in the West African region accounting for both structural breaks and cross-sectional dependency. Although the panel data study reveals that financial development has positive impact on economic growth in the entire West African region, the disaggregated data analysis discovers that variations in financial development can only explain variations in economic growth in about 75% of the countries in West Africa. This study has succeeded in revealing the countries where finance accelerates growth and countries where it does not. The weak impact of finance on growth in some of the countries could be due to low income level, low level of financial development, weak institutions, macroeconomic instability, and high inflation rates. Knowing where finance spurs growth and where it does not is fundamental for policymaking.
Journal: Emerging Markets Finance and Trade
Pages: 2596-2613
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1364623
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1364623
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Template-Type: ReDIF-Article 1.0
Author-Name: Mauricio Jara
Author-X-Name-First: Mauricio
Author-X-Name-Last: Jara
Author-Name: Cristian Pinto-Gutiérrez
Author-X-Name-First: Cristian
Author-X-Name-Last: Pinto-Gutiérrez
Author-Name: Paula Núñez
Author-X-Name-First: Paula
Author-X-Name-Last: Núñez
Title: The Effects of Ownership Structure and Intragroup Loans on Leverage: Evidence from Family Firms in Chile
Abstract: 
 This article examines the effects of family control and pyramidal ownership on firms’ capital structure decisions. After studying a sample of listed family and nonfamily firms in Chile, we find that families take a conservative approach to debt and financial risk exposure. We test the hypothesis that family firms restrict the use of debt in order to avoid the monitoring role of creditors, which could limit their enjoyment of the private benefits of control. In keeping with this hypothesis, we find a U-shaped relationship between leverage and the degree of pyramidal ownership that is more pronounced among family firms than nonfamily firms. We do not find any evidence that is consistent with the hypothesis that family-controlled firms have low leverage ratios due to their access to internal capital markets. In fact, conversely, we find that listed family firms provide more loans to related companies than comparable nonfamily firms.
Journal: Emerging Markets Finance and Trade
Pages: 2614-2629
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1369401
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1369401
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Template-Type: ReDIF-Article 1.0
Author-Name: Jan Hagemejer
Author-X-Name-First: Jan
Author-X-Name-Last: Hagemejer
Title: Trade and Growth in the New Member States: The Role of Global Value Chains
Abstract: 
 We analyze the determinants of value-added and productivity growth of New Member States in the period between 1995 and 2009. We show that in the analyzed countries, exports contributed to roughly 30% to over 40% of the overall growth of GDP while the contribution of the domestic component varied from negative to over 60%. We show that in the most important export manufacturing industries of the NMS, the growth in exported value added was substantial, while the growth of the domestic component of GDP was mostly due to the growth in services. We associate growth of sectoral productivity with the foreign direct investment and exporting but, more importantly, with the position of a sector/country in the global value chains. We show that sectors that have imported intermediate goods have experienced higher productivity growth. Moreover, faster productivity growth was found in sectors further away from the final demand and in sectors exporting intermediate goods.
Journal: Emerging Markets Finance and Trade
Pages: 2630-2649
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1369878
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1369878
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Template-Type: ReDIF-Article 1.0
Author-Name: Yugang Yin
Author-X-Name-First: Yugang
Author-X-Name-Last: Yin
Author-Name: Yahui Liu
Author-X-Name-First: Yahui
Author-X-Name-Last: Liu
Title: Information of Unusual Trading Volume
Abstract: 
 This article investigates the information content of stock unusual trading volume from the aspect of firm fundamental information revealed by both earnings formal announcements and preannouncements. By using the stock market data of China from the second quarter of 2003 to the end of 2015, this article provides evidence that, in general, stocks that experience unusually low trading volume over the week prior to earnings announcements have more unfavorable earnings surprises. However, because of the feature of mandatory pre-disclosure policy in China, this article further finds that the relation between unusually low trading volume and unfavorable earnings surprises only exists in the stocks without earnings preannouncements, because fundamental information is incorporated in the stock prices timely around preannouncements date. In addition, unusually low trading volume signals negative fundamental changes revealed by preannouncements, and this effect is more pronounced among stocks with higher short-selling constraints, but unusually high trading volume is value-irrelevant.
Journal: Emerging Markets Finance and Trade
Pages: 2409-2432
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1399355
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1399355
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Template-Type: ReDIF-Article 1.0
Author-Name: Shaofang Li
Author-X-Name-First: Shaofang
Author-X-Name-Last: Li
Author-Name: Chao Liu
Author-X-Name-First: Chao
Author-X-Name-Last: Liu
Title: Quality of Corporate Social Responsibility Disclosure and Cost of Equity Capital: Lessons from China
Abstract: 
 This article explores the relationship between the quality of corporate social responsibility (CSR) disclosure and the cost of equity capital by analyzing the financial data and CSR reports of A-share listed firms in China from 2008 to 2014. The quality of the CSR disclosure is shown to be negatively related to the cost of equity capital of the listed firms. This negative correlation proves to be more prominent among firms of environmentally sensitive industries. Taking the ownership of the listed firms into consideration, it is further confirmed that the negative relationship between the CSR disclosure and the cost of equity capital is of higher significance for state-owned enterprises. Our findings also empirically demonstrate that the quality of CSR disclosure is more negatively related to the cost of equity capital among the large listed firms than the smaller ones.
Journal: Emerging Markets Finance and Trade
Pages: 2472-2494
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1443441
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1443441
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Template-Type: ReDIF-Article 1.0
Author-Name: KiHoon Hong
Author-X-Name-First: KiHoon
Author-X-Name-Last: Hong
Author-Name: Kyounghoon Park
Author-X-Name-First: Kyounghoon
Author-X-Name-Last: Park
Author-Name: Jongmin Yu
Author-X-Name-First: Jongmin
Author-X-Name-Last: Yu
Title: Crowding Out in a Dual Currency Regime? Digital Versus Fiat Currency
Abstract: 
 In this article, we analyze a dual currency regime with fiat currency and digital currency and investigate potential crowding-out effects of fiat currency or digital currency under the framework of the traditional monetary economic model. We find that crowding out occurs only under extreme assumptions, i.e., extremely high costs associated with the use (medium of exchange and store of value) of one currency and extremely low costs associated with the use of the other currency.
Journal: Emerging Markets Finance and Trade
Pages: 2495-2515
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1452732
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1452732
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Template-Type: ReDIF-Article 1.0
Author-Name: Kyungsub Lee
Author-X-Name-First: Kyungsub
Author-X-Name-Last: Lee
Author-Name: Byoung Ki Seo
Author-X-Name-First: Byoung Ki
Author-X-Name-Last: Seo
Title: Filtered Historical Simulation for Initial Margin of Interest Rate Swap Under Korean Market
Abstract: 
 We discuss how to determine the margin of interest rate portfolio under Korean interest rate market when the trades are cleared through a clearing house. The analysis is based on the filtered historical simulation using the EWMA and GARCH model for the interest rate process. Due to the irregular feature in the short tenor rates, we observe the instabilities of the filtered processes by the EWMA model, and we propose how to mitigate the instability. We also explain the properties of the inferred volatility processes depending on the volatility model, the observation interval of the interest rate series, and the parameter choice.
Journal: Emerging Markets Finance and Trade
Pages: 2516-2532
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1456917
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1456917
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Template-Type: ReDIF-Article 1.0
Author-Name: Szu-Hsien Lin
Author-X-Name-First: Szu-Hsien
Author-X-Name-Last: Lin
Author-Name: Huei-Hwa Lai
Author-X-Name-First: Huei-Hwa
Author-X-Name-Last: Lai
Author-Name: Ai-Chi Hsu
Author-X-Name-First: Ai-Chi
Author-X-Name-Last: Hsu
Title: How Does Asymmetric Information Affect Catering Behavior?
Abstract: 
 This study examines the association between information asymmetry and payout policy, and how asymmetric information affects catering behavior. Using forecast error and forecast dispersion as information asymmetry variables, this study finds that the more information asymmetry the firms face, the less likely they will increase dividends. Meanwhile, the effects of information asymmetry dominate over those of catering incentives for managers to decide dividend policy. Finally, our empirical results demonstrate that the signaling theory holds when dividend yield is high or market underestimates the EPS of firms. In addition, companies use share repurchases as a substitute for dividend increases, and take retained earnings into account when making dividend policies.
Journal: Emerging Markets Finance and Trade
Pages: 2433-2454
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1458611
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1458611
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Template-Type: ReDIF-Article 1.0
Author-Name: Jason Zhe Ma
Author-X-Name-First: Jason Zhe
Author-X-Name-Last: Ma
Author-Name: Kung-Cheng Ho
Author-X-Name-First: Kung-Cheng
Author-X-Name-Last: Ho
Author-Name: Lu Yang
Author-X-Name-First: Lu
Author-X-Name-Last: Yang
Author-Name: Chien-Chi Chu
Author-X-Name-First: Chien-Chi
Author-X-Name-Last: Chu
Title: Market Sentiment and Investor Overreaction: Evidence from New York Listed Asian Country Exchange Traded Funds
Abstract: 
 This article investigates Asian Country Exchange-Traded Fund (ETF) price deviation with underlying due to market sentiment. By implementing a dynamic contrarian trading strategy and a buy-and-hold strategy, this article finds that significant abnormal excess trading profit can be generated by capitalizing on the overnight price reversion. The excess return generated by the dynamic strategy over buy-and-hold separates the influence of market sentiment to ETF price deviation from fundamental movements. By studying the relations between variations of the excess returns and market sentiment, the article finds that the ETF price deviation is highly influenced by market sentiment and the effect exacerbates during financial crisis and distress.
Journal: Emerging Markets Finance and Trade
Pages: 2455-2471
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1464907
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1464907
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:11:p:2455-2471




Template-Type: ReDIF-Article 1.0
Author-Name: Kyoungwon Mo
Author-X-Name-First: Kyoungwon
Author-X-Name-Last: Mo
Author-Name: Jaehong Lee
Author-X-Name-First: Jaehong
Author-X-Name-Last: Lee
Title: IFRS Adoption and the Choice Between Public and Private Debt: Evidence from South Korea
Abstract: 
 This article examines the association between mandatory International Financial Reporting Standards (IFRS) adoption and corporate choice between public debt and private debt. If IFRS adoption increases the quality of lenders’ information environment provided on financial statements, firms are more likely to access the public debt market. Using a sample of public and private debts financing firms from 2000 to 2014 in Korea, we find that firms that file financial reports under the IFRS are less likely to finance from public debt markets, implying that the mandatory IFRS adoption has exacerbated the information environment of the public debt market in Korea.
Journal: Emerging Markets Finance and Trade
Pages: 2533-2556
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1472079
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1472079
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Template-Type: ReDIF-Article 1.0
Author-Name: Jinzhong Wang
Author-X-Name-First: Jinzhong
Author-X-Name-Last: Wang
Author-Name: Hao Kang
Author-X-Name-First: Hao
Author-X-Name-Last: Kang
Author-Name: Fei Xia
Author-X-Name-First: Fei
Author-X-Name-Last: Xia
Author-Name: Guowei Li
Author-X-Name-First: Guowei
Author-X-Name-Last: Li
Title: Examining the Equilibrium Relationship Between the Shanghai 50 Stock Index Futures and the Shanghai 50 ETF Options Markets
Abstract: 
 Based on the put-call-futures parity model, this article studies the equilibrium relationship between the Shanghai 50 stock index futures and the Shanghai 50 Exchange-Traded Fund (ETF) options markets by analyzing the arbitrage opportunities and profits between these two derivative markets. This article reveals that the cost spread, option volatility, days from the expiration date, moneyness of options, trading strategy, and policy factors all have a great impact on the arbitrage profits and opportunities. In addition, significant arbitrage profits and opportunities indicate violations of put-call-futures parity. Although no equilibrium relationship exists between the Shanghai 50 stock index futures and the Shanghai 50 ETF options markets, efficiency in these markets has gradually improved.
Journal: Emerging Markets Finance and Trade
Pages: 2557-2576
Issue: 11
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1483824
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1483824
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Template-Type: ReDIF-Article 1.0
Author-Name: Ling Feng
Author-X-Name-First: Ling
Author-X-Name-Last: Feng
Author-Name: Ching-Yi Lin
Author-X-Name-First: Ching-Yi
Author-X-Name-Last: Lin
Author-Name: Chun Wang
Author-X-Name-First: Chun
Author-X-Name-Last: Wang
Title: Do Capital Flows Matter to Stock and House Prices? Evidence from China
Abstract: 
 This article analyzes the impacts of foreign direct investment (FDI) and short-term capital flows, otherwise known as hot money, on stock and house prices in China. Empirical results, estimated using the local projections approach, reveal that a positive hot money net inflow shock significantly increases stock and house prices and the impacts persist for up to 1–2 months, while a positive FDI net inflow shock contributes significantly to lagged house price appreciation but has no effect on stock prices. This study also identifies negative pass-through effects of FDI net inflows on hot money net inflows and positive pass-through effects of stock prices on house prices.
Journal: Emerging Markets Finance and Trade
Pages: 2215-2232
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1180283
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1180283
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Template-Type: ReDIF-Article 1.0
Author-Name: Murat Mazibaş
Author-X-Name-First: Murat
Author-X-Name-Last: Mazibaş
Author-Name: Yusuf Tuna
Author-X-Name-First: Yusuf
Author-X-Name-Last: Tuna
Title: Understanding the Recent Growth in Consumer Loans and Credit Cards in Emerging Markets: Evidence from Turkey
Abstract: 
 In recent years, the surge in household indebtedness to historical heights has become a significant concern for developed economies. A similar trend has been witnessed in emerging market countries including Turkey. Our objective is to help further understand the dynamics of the recent growth in consumer loans and credit cards (CLCC) in Turkey. For this purpose, we investigate the long-term equilibrating relationships and short-term deviations from the equilibrium, and explore the determinants, directions, and strengths of causality relationships between CLCC and the selected macroeconomic variables, and analyze the dynamic interactions among the variables in the post-sample period by analyzing how CLCC responds to the shocks given to other macroeconomic variables and the contribution of each variable on the forecast variability of CLCC. We use monthly data for the period of January 2004—December 2013 of seven macroeconomic variables of money supply, interest rate, income, consumer confidence, inflation, stock market, and consumer goods imports. On empirical findings, we make suggestions about which policy tools should be used to influence, and if necessary to manage, the growth in CLCC.
Journal: Emerging Markets Finance and Trade
Pages: 2333-2346
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1196895
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1196895
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:10:p:2333-2346




Template-Type: ReDIF-Article 1.0
Author-Name: Kuang-Liang Chang
Author-X-Name-First: Kuang-Liang
Author-X-Name-Last: Chang
Title: A Mixed Dependence Between the Exchange Rate and International Crude Oil Returns: An Application of Dynamic Mixture Copula
Abstract: 
 In this study, the dynamic dependence between the international crude oil return and the exchange rate return for Taiwan is examined. Two mixture copulas (symmetric Joe–Clayton, SJC, and mixture of Gumbel and survival Gumbel, GSG) and two dynamic dependences (a Markov-switching type and an AR-like type) are considered in order to study whether the dynamic dependence is mixed and asymmetric. The empirical results show that the Markov-switching GSG copula performs the best when compared to other specifications investigated in this article. The relationship is positive and symmetric during periods of volatile crude oil prices, while it is independent during periods of stable crude oil prices.
Journal: Emerging Markets Finance and Trade
Pages: 2347-2360
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1204909
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1204909
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:10:p:2347-2360




Template-Type: ReDIF-Article 1.0
Author-Name: Rodrigo Lanna F. da Silveira
Author-X-Name-First: Rodrigo Lanna F. da
Author-X-Name-Last: Silveira
Author-Name: Fabio L. Mattos
Author-X-Name-First: Fabio L.
Author-X-Name-Last: Mattos
Author-Name: Maria Sylvia M. Saes
Author-X-Name-First: Maria Sylvia M.
Author-X-Name-Last: Saes
Title: The Reaction of Coffee Futures Price Volatility to Crop Reports
Abstract: 
 Analysis of prices and volatility plays an important role in coffee market, especially for developing countries, whose small producers and economies rely heavily on income generated by coffee trade. This study explores the impact of coffee crop reports on price volatility for coffee futures contracts during 2004–2014. Overall, results indicate that crop reports generally affect price volatility. The impact is particularly stronger when they provide information following the flowering periods in Colombia, Brazil, and Vietnam, world’s major producers.
Journal: Emerging Markets Finance and Trade
Pages: 2361-2376
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1205976
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1205976
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:10:p:2361-2376




Template-Type: ReDIF-Article 1.0
Author-Name: Syed Faiq Najeeb
Author-X-Name-First: Syed Faiq
Author-X-Name-Last: Najeeb
Author-Name: Obiyathulla Bacha
Author-X-Name-First: Obiyathulla
Author-X-Name-Last: Bacha
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Does a Held-to-Maturity Strategy Impede Effective Portfolio Diversification for Islamic Bond () Portfolios? A Multi-Scale Continuous Wavelet Correlation Analysis
Abstract: 
 There is a critical gap in the literature in studying the portfolio diversification opportunities available to sukuk investors and evaluating these in light of held-to-maturity strategies usually adopted by these investors. This article has made an initial attempt to study the portfolio diversification strategies for sukuk portfolios across heterogeneous investment horizons. Our findings critically indicate that returns between local currency sukuk in different markets generally have low levels of correlations across different investor holding periods, thus enabling both short and long-run portfolio diversification benefits. However, in contrast, international currency sukuk issued in different markets exhibits high levels of correlations in the longer-term investor holding periods. Also, in the domestic market context, returns on different classes of domestic sukuk are found to exhibit strong correlations in the longer-holding periods. Our findings critically highlight the feasibility of held-to-maturity sukuk investment strategies from a portfolio diversification perspective.
Journal: Emerging Markets Finance and Trade
Pages: 2377-2393
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1205977
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1205977
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Template-Type: ReDIF-Article 1.0
Author-Name: Ignacio Vélez-Pareja
Author-X-Name-First: Ignacio
Author-X-Name-Last: Vélez-Pareja
Title: Do Personal Taxes Destroy Tax Shields? A Critique to Miller’s (1977) Proposal
Abstract: 
 We discuss the relevance of personal taxes on tax shields. Interest and taxes are the basis for defining an optimal capital structure. When personal taxes are greater than or equal to TS, an optimal capital structure does not exist.We suggest that the approach proposed by Miller (1977) might understate the effect of personal taxes in the net TS and/or its associated net value. We consider the irrelevance of personal taxes on interest received by debtholders on the value of TS earned by the firm on interest paid. We conclude that Miller’s approach might be wrong and has some inconsistencies.
Journal: Emerging Markets Finance and Trade
Pages: 2199-2214
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1220859
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1220859
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Template-Type: ReDIF-Article 1.0
Author-Name: Bana Abuzayed
Author-X-Name-First: Bana
Author-X-Name-Last: Abuzayed
Author-Name: Nedal Al-Fayoumi
Author-X-Name-First: Nedal
Author-X-Name-Last: Al-Fayoumi
Title: Are Investors Concerned with Stock Market Upgrades? Evidence from Multivariate Framework Analysis
Abstract: 
 This study aims to examine the return and volatility responses to the announcement of stock market upgrades. It measures the direct effects of the recent Morgan Stanley Capital International (MSCI) upgrade of the Qatar, Dubai, and Abu Dhabi stock exchanges from frontier to emerging markets by applying a nontraditional dummy variable event study using multivariate BEKK and DCC GARCH models. The results show clear evidence that contradicts the free information hypothesis and supports the price pressure hypothesis. Initially, the MSCI upgrade led to positive feedback from active investors due to the belief that this announcement will attract foreign institutional investors who play a vital role in improving the market’s performance.
Journal: Emerging Markets Finance and Trade
Pages: 2242-2258
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1238357
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1238357
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:10:p:2242-2258




Template-Type: ReDIF-Article 1.0
Author-Name: Marc Steffen Rapp
Author-X-Name-First: Marc Steffen
Author-X-Name-Last: Rapp
Author-Name: Iuliia A. Udoieva
Author-X-Name-First: Iuliia A.
Author-X-Name-Last: Udoieva
Title: Corporate Governance and Its Impact on R&amp;D Investment in Emerging Markets
Abstract: 
 Corporate R&amp;D activities are inherently risky but also difficult to monitor. Against this background, we examine the impact of ownership concentration and legal shareholder rights protection on corporate R&amp;D investments in emerging markets. Based on a comprehensive sample of publicly listed firms from 24 countries, we find that R&amp;D intensity is lower in firms with (strategic) block ownership, and this effect is more pronounced in countries with stronger shareholder rights protection. This suggests that, similar to the situation in developed economies, dispersed ownership, which allows shareholders to diversify their investment risks, is beneficial for corporate R&amp;D and that this effect is intensified by more developed institutions.
Journal: Emerging Markets Finance and Trade
Pages: 2159-2178
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1248940
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1248940
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:10:p:2159-2178




Template-Type: ReDIF-Article 1.0
Author-Name: Andrés Mora-Valencia
Author-X-Name-First: Andrés
Author-X-Name-Last: Mora-Valencia
Author-Name: Javier Perote
Author-X-Name-First: Javier
Author-X-Name-Last: Perote
Author-Name: José Elías Tobar Arias
Author-X-Name-First: José Elías Tobar
Author-X-Name-Last: Arias
Title: The Return Performance of Cubic Market Model: An Application to Emerging Markets
Abstract: 
 This article studies the performance of the high-order moment capital asset pricing model (CAPM) market models in emerging markets. We apply the cubic market model (4-moment CAPM) to 16 emerging market stock indices ranging from January 2010 to September 2015. Performance of the model is evaluated through the Fama and MacBeth’s two-step regression and through different corrections proposed in the literature, as well as generalized method of moments (GMM) estimation. According to Fama–MacBeth’s procedure, CAPM, the quadratic and cubic market models seem to be insignificant for the analyzed sample; however, the GMM estimation shows that quadratic model is valid for Indian, Polish, and Thai country indices, whereas cubic market model is accurate for Indian country index.
Journal: Emerging Markets Finance and Trade
Pages: 2233-2241
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1251902
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1251902
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Template-Type: ReDIF-Article 1.0
Author-Name: Teng-Ching Huang
Author-X-Name-First: Teng-Ching
Author-X-Name-Last: Huang
Author-Name: Kuei-Yuan Wang
Author-X-Name-First: Kuei-Yuan
Author-X-Name-Last: Wang
Title: Investors’ Fear and Herding Behavior: Evidence from the Taiwan Stock Market
Abstract: 
 This article analyzes the influence of investors’ fear on their investment behavior in the Taiwan stock market. This study used the volatility index (VIX) as a barometer of investors’ fear. Our results show that herding behavior increases with the VIX; that is, herding behavior is encouraged by an increase in investors’ fear. Moreover, our results demonstrate that investors react more quickly to bad news than to good news when their fear increases, supporting the hypothesis of the presence of an asymmetric reaction to news. However, investors react more quickly to good news when their fear decreases, indicating an inverse asymmetric reaction. In addition, our empirical results reveal that herding behavior tends to exist on days with a large trading volume.
Journal: Emerging Markets Finance and Trade
Pages: 2259-2278
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1258357
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1258357
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Template-Type: ReDIF-Article 1.0
Author-Name: Lina M. Cortés
Author-X-Name-First: Lina M.
Author-X-Name-Last: Cortés
Author-Name: Iván A. Durán
Author-X-Name-First: Iván A.
Author-X-Name-Last: Durán
Author-Name: Sandra Gaitán
Author-X-Name-First: Sandra
Author-X-Name-Last: Gaitán
Author-Name: Mateo Vasco
Author-X-Name-First: Mateo
Author-X-Name-Last: Vasco
Title: Mergers and Acquisitions in Latin America: Industrial Productivity and Corporate Governance
Abstract: 
 This article examines the impact of industrial productivity in the country of origin on transnationals M&amp;As, directed from OECD countries toward Latin America in the period 1996–2010. It also analyzes the relationship between external mechanisms of corporate governance and transnational M&amp;As. Employing a gravitational model at the industry level, we find that industry productivity in the country of origin promotes transnational M&amp;A activity, although capital productivity affects it negatively. We also find evidence that higher standards of corporate governance in both origin and destination countries increase the likelihood of transnational M&amp;As taking place.
Journal: Emerging Markets Finance and Trade
Pages: 2179-2198
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2016.1258358
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1258358
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:10:p:2179-2198




Template-Type: ReDIF-Article 1.0
Author-Name: Christian Espinosa-Méndez
Author-X-Name-First: Christian
Author-X-Name-Last: Espinosa-Méndez
Author-Name: Juan Gorigoitía
Author-X-Name-First: Juan
Author-X-Name-Last: Gorigoitía
Author-Name: João Vieito
Author-X-Name-First: João
Author-X-Name-Last: Vieito
Title: Is the Virtual Integration of Financial Markets Beneficial in Emerging Markets? Evidence from MILA
Abstract: 
 This article analyzes whether the Latin American Integrated Market (MILA) has been beneficial for its participants. Using a dynamic conditional correlation (DCC) model proposed by Engle (2002), we found evidence that creating MILA increased the correlation levels in stock returns of member countries. Evidence indicates that this increase occurs mainly due to the increase in traded volume in the country with the least developed stock market—Peru.In short, findings suggest that in an integration process such as MILA, as stock market members differ, in terms of stock market development, the markets will benefit from the integration. However, in the long term these benefits dissipate over time.
Journal: Emerging Markets Finance and Trade
Pages: 2279-2302
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2017.1307101
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1307101
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:10:p:2279-2302




Template-Type: ReDIF-Article 1.0
Author-Name: Roberto J. Santillán-Salgado
Author-X-Name-First: Roberto J.
Author-X-Name-Last: Santillán-Salgado
Author-Name: Ricardo Massa Roldán
Author-X-Name-First: Ricardo
Author-X-Name-Last: Massa Roldán
Author-Name: Montserrat Reyna Miranda
Author-X-Name-First: Montserrat
Author-X-Name-Last: Reyna Miranda
Title: An Exploratory Study on Nonlinear Causality Among the MILA Markets
Abstract: 
 According to conventional portfolio theory, an increase in the interconnectedness of international financial markets may reduce the potential for constructing diversified portfolios. This article explores the implications of the creation of the Latin American Integrated Market (MILA)1 over the dependence structure of its members using correlation and cointegration analysis as well as linear and nonlinear Granger causality tests. The creation of MILA aimed to enhance the integration process that Latin American financial markets “naturally” present while still providing diversification opportunities to investors. The results of our empirical analysis suggest that such objective is being achieved. Evidence of a rise in cross-country linear correlations and their linear causal relationship supports the idea of an increasing financial integration process in the region, while the absence of cointegration and the weakening of the nonlinear causal relationship favors the creation of diversified regional portfolios. These findings provide valuable insights for investment portfolio designers, regulators, and supervisors.
Journal: Emerging Markets Finance and Trade
Pages: 2303-2317
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2017.1308861
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1308861
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Template-Type: ReDIF-Article 1.0
Author-Name: Matthew D. Hill
Author-X-Name-First: Matthew D.
Author-X-Name-Last: Hill
Author-Name: Gary W. Kelly
Author-X-Name-First: Gary W.
Author-X-Name-Last: Kelly
Author-Name: Lorenzo A. Preve
Author-X-Name-First: Lorenzo A.
Author-X-Name-Last: Preve
Author-Name: Virginia Sarria-Allende
Author-X-Name-First: Virginia
Author-X-Name-Last: Sarria-Allende
Title: Trade Credit or Financial Credit? An International Study of the Choice and Its Influences
Abstract: 
 Trade credit financing has usually been assumed to be an expensive source of funds. Recent studies, however, suggested that it can be available at either low or no cost. Using an international panel of firms, we provide an empirical answer to this matter. We analyze the type of firms and financial environments that are associated with a relatively more intense use of financial credit and, consistent with the mainstream literature, we find that trade credit financing is chosen by firms that have more restricted access to financial credit. These results appear to be stronger for firms located in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 2318-2332
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2017.1319355
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1319355
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Template-Type: ReDIF-Article 1.0
Author-Name: Luis Berggrun
Author-X-Name-First: Luis
Author-X-Name-Last: Berggrun
Author-Name: Darcy Fuenzalida
Author-X-Name-First: Darcy
Author-X-Name-Last: Fuenzalida
Author-Name: Samuel Mongrut
Author-X-Name-First: Samuel
Author-X-Name-Last: Mongrut
Title: Capital Markets and Firm Performance in Emerging Economies
Journal: Emerging Markets Finance and Trade
Pages: 2157-2158
Issue: 10
Volume: 53
Year: 2017
Month: 10
X-DOI: 10.1080/1540496X.2017.1374694
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1374694
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:10:p:2157-2158




Template-Type: ReDIF-Article 1.0
Author-Name: Guler Aras
Author-X-Name-First: Guler
Author-X-Name-Last: Aras
Title: Corporate and Capital Market Governance in Emerging Economies
Journal: Emerging Markets Finance and Trade
Pages: S3-S4
Issue: S2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2014.998932
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998932
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S2:p:S3-S4




Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim M. Turhan
Author-X-Name-First: Ibrahim M.
Author-X-Name-Last: Turhan
Title: Introduction to a Special Issue
Journal: Emerging Markets Finance and Trade
Pages: S1-S2
Issue: S2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2014.998934
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998934
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S2:p:S1-S2




Template-Type: ReDIF-Article 1.0
Author-Name: Guler Aras
Author-X-Name-First: Guler
Author-X-Name-Last: Aras
Title: The Effect of Corporate Governance Practices on Financial Structure in Emerging Markets: Evidence from BRICK Countries and Lessons for Turkey
Abstract: 
 In this article, I aim to investigate major emerging markets (BRICK [Brazil, Russia, India, China, South Korea] countries and Turkey) in terms of governance practices, which differ in many ways including board structures, board procedures, disclosures, audit committee meeting frequency, ownership structures, and minority shareholder rights. Moreover, I aim to relate these governance practices to the impact they have on financial structures in terms of financial profitability and financial leverage. Findings provide support for the notion that board independence, representation of women on the board, duality, and the number of board meetings are key factors in determining corporate governance efficiency and play important roles in enhancing firm financial structure in BRICK firms. I also attempt to identify the main issue in corporate governance research, which is whether governance practices are universal or instead depend on country and firm characteristics. These multicountry results, together with the view of common- and civil-law differentiation, suggest that country characteristics strongly influence the aspects of governance practices while predicting firm financial structure.
Journal: Emerging Markets Finance and Trade
Pages: S5-S24
Issue: S2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2014.998940
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998940
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S2:p:S5-S24




Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Clarke
Author-X-Name-First: Thomas
Author-X-Name-Last: Clarke
Title: The Transformation of Corporate Governance in Emerging Markets: Reform, Convergence, and Diversity
Abstract: 
 This article focuses on the continuing tensions among the international movement for corporate governance reforms throughout emerging economies, the insistent capital market pressures for convergence of emerging economies’ corporate governance toward international standards, the vibrant cultural and institutional tendencies in emerging economies toward diversity in their corporate governance institutions and practices, and how these distinctive cultures and institutions of emerging economies represent a vital differentiator that might delineate much of the business development of these countries. A brief survey of the business models and corporate governance of the major BRICS economies demonstrates the considerable differentiation that exists among them, but even more so, with the exception of South Africa, the BRICS economies stand in contrast to the Anglo-American model of developed legal and regulatory structures and market-oriented corporate governance. This suggests a vitality in the diversity of governance and institutions, which can continue to deliver high rates of business growth and economic development.
Journal: Emerging Markets Finance and Trade
Pages: S25-S46
Issue: S2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2014.998941
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998941
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S2:p:S25-S46




Template-Type: ReDIF-Article 1.0
Author-Name: Lucas Ayres B. de C. Barros
Author-X-Name-First: Lucas Ayres B. de C.
Author-X-Name-Last: Barros
Author-Name: Alexandre Di Miceli da Silveira
Author-X-Name-First: Alexandre
Author-X-Name-Last: Di Miceli da Silveira
Author-Name: Patricia M. Bortolon
Author-X-Name-First: Patricia M.
Author-X-Name-Last: Bortolon
Author-Name: Ricardo P. C. Leal
Author-X-Name-First: Ricardo P. C.
Author-X-Name-Last: Leal
Title: Facing the Regulators: Noncompliance With Detailed Mandatory Compensation Disclosure in Brazil
Abstract: 
 A preliminary court injunction based on alleged personal security risks gave Brazilian public companies the option of noncompliance with new executive and director compensation disclosure rules. We find that noncompliance is possibly motivated by agency conflicts and not by crime rates in the state where the company is headquartered. Noncompliers tend to present lower corporate governance (CG) quality, higher ownership concentration, larger total assets, and less profitability. State- and foreign-owned companies are significantly less likely noncompliers. Shareholders correctly anticipated that lower CG quality firms were more likely noncompliers but may have been negatively surprised when some higher CG quality firms did not comply.
Journal: Emerging Markets Finance and Trade
Pages: S47-S61
Issue: S2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2014.998942
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998942
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S2:p:S47-S61




Template-Type: ReDIF-Article 1.0
Author-Name: Evren Arik
Author-X-Name-First: Evren
Author-X-Name-Last: Arik
Author-Name: Elif Mutlu
Author-X-Name-First: Elif
Author-X-Name-Last: Mutlu
Title: Post–Initial Public Offering Operating Performance and Its Determinants: Initial Public Offering Characteristics and Corporate Governance Practices
Abstract: 
 We examine the post–initial public offering (IPO) operating performance of firms going public in Borsa Istanbul. Covering the period 2007–13 and 102 IPO firms, we find that operating performance indicators except cash flows from operations over total assets decline following the IPOs relative to the pre-IPO year, confirming the previous research, albeit to a lesser extent than in the previous studies. We document that number of intermediaries and intermediation type act as determinants of post-IPO performance measures. We also find evidence suggesting the role of firm-specific corporate governance practices in the post-IPO operating performance.
Journal: Emerging Markets Finance and Trade
Pages: S62-S83
Issue: S2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2014.998943
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998943
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S2:p:S62-S83




Template-Type: ReDIF-Article 1.0
Author-Name: Guler Aras
Author-X-Name-First: Guler
Author-X-Name-Last: Aras
Author-Name: Ozlem Kutlu Furtuna
Author-X-Name-First: Ozlem
Author-X-Name-Last: Kutlu Furtuna
Title: Does Governance Efficiency Affect Equity Agency Costs? Evidence from Borsa Istanbul
Abstract: 
 In this article, we investigate whether the governance efficiency variables mitigate the costs arising from agency problems for companies listed on the Borsa Istanbul (BIST). The empirical analyses are conducted on nonfinancial firms during the 2005–11 period. Four models have been implemented for each of the agency-cost proxies, and all of them are estimated by panel data regressions with fixed effects. This study provides evidence from an emerging market about which governance variables and control variables differently reduce the extent of conflicts of interest between managers and shareholders. The findings also indicate that highly concentrated firms in Turkey are more engaged with agency problems and do not effectively control excessive perquisite consumption and facilitate asset utilization.
Journal: Emerging Markets Finance and Trade
Pages: S84-S100
Issue: S2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2014.998944
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998944
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S2:p:S84-S100




Template-Type: ReDIF-Article 1.0
Author-Name: Inessa Love
Author-X-Name-First: Inessa
Author-X-Name-Last: Love
Author-Name: Andrei Rachinsky
Author-X-Name-First: Andrei
Author-X-Name-Last: Rachinsky
Title: Corporate Governance and Bank Performance in Emerging Markets: Evidence from Russia and Ukraine
Abstract: 
 This article presents evidence on the relationship between corporate governance and operating performance in banks using a sample of 107 banks in Russia and fifty banks in Ukraine surveyed by International Financial Corporation in 2003–6. We find some significant, but modest, relationships between governance and contemporaneous operating performance and a largely not significant link with the subsequent performance. We conclude that aside from the popularity of corporate governance in public discussion, it has at best a second-order effect on operating performance in Russian and Ukrainian banks.
Journal: Emerging Markets Finance and Trade
Pages: S101-S121
Issue: S2
Volume: 51
Year: 2015
Month: 3
X-DOI: 10.1080/1540496X.2014.998945
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998945
File-Format: text/html
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S2:p:S101-S121




Template-Type: ReDIF-Article 1.0
Author-Name: José Luis Miralles-Quirós
Author-X-Name-First: José Luis
Author-X-Name-Last: Miralles-Quirós
Author-Name: María del Mar Miralles-Quirós
Author-X-Name-First: María del Mar
Author-X-Name-Last: Miralles-Quirós
Author-Name: Luis Miguel Valente Gonçalves
Author-X-Name-First: Luis Miguel
Author-X-Name-Last: Valente Gonçalves
Title: The Profitability of Moving Average Rules: Smaller Is Better in the Brazilian Stock Market
Abstract: 
 This study analyzes the effectiveness of using certain moving average rules in the most important emerging market of Latin America: Brazil. Using different MSCI indices, we find that the best performance is provided by the MSCI Brazil Small Cap Index, which tracks the small cap segment of the Brazilian stock market, as opposed to the MSCI Brazil Index which measures the performance of large and medium firms and has been the main reference for the Brazilian stock market in previous empirical evidence. Additionally, we report clear evidence of the existence of a size effect in the Brazilian stock market due to the superior performance of the index which tracks the smaller companies over those which track larger companies. These results restate the importance of in-depth knowledge of stock market patterns in order to develop correct trading strategies in each case.
Journal: Emerging Markets Finance and Trade
Pages: 150-167
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2017.1422428
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1422428
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:150-167




Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandr V. Gevorkyan
Author-X-Name-First: Aleksandr V.
Author-X-Name-Last: Gevorkyan
Author-Name: Tarron Khemraj
Author-X-Name-First: Tarron
Author-X-Name-Last: Khemraj
Title: Exchange Rate Targeting and Gold Demand by Central Banks: Modeling International Reserves Composition
Abstract: 
 This article explores the composition of international reserves under a central bank’s exchange rate policy target. The model allows for numerical estimation of a shadow price of the target exchange rate, interpreted as the central bank’s sacrifice of policy precision for additional unit of portfolio variance or return. The simulations indicate a percentage range gold demand by monetary authority in two regimes under multiple equilibria. Accumulating foreign reserves as precautionary policy suggests increasing shares of gold demand. The central bank would incur greater exchange rate target sacrifice if it wants to achieve higher portfolio returns. The results suggest that ability to target the exchange rate is unaffected by the higher volatility of monthly returns on gold.
Journal: Emerging Markets Finance and Trade
Pages: 168-180
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1425136
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1425136
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:168-180




Template-Type: ReDIF-Article 1.0
Author-Name: Karim Mimouni
Author-X-Name-First: Karim
Author-X-Name-Last: Mimouni
Author-Name: Akram Temimi
Author-X-Name-First: Akram
Author-X-Name-Last: Temimi
Author-Name: Mohamed Goaied
Author-X-Name-First: Mohamed
Author-X-Name-Last: Goaied
Author-Name: Rami Zeitun
Author-X-Name-First: Rami
Author-X-Name-Last: Zeitun
Title: The Impact of Liquidity on Debt Maturity After a Financial Crisis: Evidence from the Gulf Cooperation Council Region
Abstract: 
 This article contributes to the existent literature on corporate debt maturity by studying a new channel through which firms may mitigate the effects of a major economic downturn such as the 2008 global financial crisis. More specifically, using a sample of 208 listed firms in the Gulf Cooperation Council (GCC) region, we find that an increase in firms’ current ratios after the crisis is associated with an increase in long-term financing. We also find that a financially constrained firm can still access long-term financing if its current ratio after the crisis is beyond a specific threshold. Additionally, we highlight the differences in the typical drivers of debt structure between GCC countries and industries.
Journal: Emerging Markets Finance and Trade
Pages: 181-200
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1425835
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1425835
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:181-200




Template-Type: ReDIF-Article 1.0
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Author-Name: Zeynel Abidin Ozdemir
Author-X-Name-First: Zeynel Abidin
Author-X-Name-Last: Ozdemir
Author-Name: Aysit Tansel
Author-X-Name-First: Aysit
Author-X-Name-Last: Tansel
Title: Long Memory in Turkish Unemployment Rates
Abstract: 
 In this article we have examined the unemployment rate series in Turkey by using long memory models and in particular employing fractionally integrated techniques. Our results suggest that unemployment in Turkey is highly persistent, with orders of integration equal to or higher than 1 in the majority of the cases. This implies lack of mean reversion and persistence of the shocks. We found evidence in favor of mean reversion in the case of female unemployment and this happens for all the groups of non-agricultural, rural, urban, and youth unemployment series. The possibility of nonlinearities are observed only in the case of female unemployment and the degree of persistence is higher in the cases of female and youth unemployment series. Important policy implications emerge from our empirical results. Thus, for example, positive shocks reducing unemployment will have permanent effects being good for the economy, but negative shocks increasing unemployment will also have permanent effects and strong measures should then be adopted to reduce it. Labor and macroeconomic policies will most likely have long-lasting effects on the unemployment rates.
Journal: Emerging Markets Finance and Trade
Pages: 201-217
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1425837
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1425837
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:201-217




Template-Type: ReDIF-Article 1.0
Author-Name: Yilmaz Yildiz
Author-X-Name-First: Yilmaz
Author-X-Name-Last: Yildiz
Author-Name: Selin Metin Camgoz
Author-X-Name-First: Selin
Author-X-Name-Last: Metin Camgoz
Title: Brand Equity and Firm Risk: An Empirical Investigation in an Emerging Market
Abstract: 
 The aim of this article is to investigate the relationship between brand equity and firm risk in Turkey using a sample of 254 firm-year observations for the period 2009–2014. Our findings suggest that brand equity is an important determinant of equity risk in addition to conventional firm-specific variables. In particular, after controlling for firm-specific variables, the results reveal that firms with high brand equity experience lower volatility in stock returns. We also find that enhancing brand equity is an important tool for firms in reducing unsystematic and downside systematic risk in their stock prices. Our findings are robust to different valuation models of domestic and global investors as well as different methods of estimations. The results are encouraging for both marketing managers and investors, particularly those in emerging markets where stock price volatility is relatively higher than in developed markets.
Journal: Emerging Markets Finance and Trade
Pages: 218-235
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1429904
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1429904
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:218-235




Template-Type: ReDIF-Article 1.0
Author-Name: Saban Nazlioglu
Author-X-Name-First: Saban
Author-X-Name-Last: Nazlioglu
Author-Name: Alper Gormus
Author-X-Name-First: Alper
Author-X-Name-Last: Gormus
Author-Name: Ugur Soytas
Author-X-Name-First: Ugur
Author-X-Name-Last: Soytas
Title: Oil Prices and Monetary Policy in Emerging Markets: Structural Shifts in Causal Linkages
Abstract: 
 This study tests the causal relationships between oil prices and monetary policy for the emerging markets (Brazil, India, Indonesia, South Africa, and Turkey). In particular, we explore the role of exchange rates, inflation, and interest rates. First, we utilize the commonly used Toda–Yamamoto causality framework and later augment the model to account for structural shifts—including gradual/smooth shifts. The empirical findings show that (i) accounting for gradual structural shifts matter for the causal linkages between oil prices and the monetary policy variables and (ii) employing a bivariate or multivariate frameworks is not important (with few exceptions) as much as controlling for structural breaks in these causal linkages.
Journal: Emerging Markets Finance and Trade
Pages: 105-117
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1434072
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1434072
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:105-117




Template-Type: ReDIF-Article 1.0
Author-Name: Zhiyong Li
Author-X-Name-First: Zhiyong
Author-X-Name-Last: Li
Author-Name: Ke Li
Author-X-Name-First: Ke
Author-X-Name-Last: Li
Author-Name: Xiao Yao
Author-X-Name-First: Xiao
Author-X-Name-Last: Yao
Author-Name: Qing Wen
Author-X-Name-First: Qing
Author-X-Name-Last: Wen
Title: Predicting Prepayment and Default Risks of Unsecured Consumer Loans in Online Lending
Abstract: 
 Online lending provides a means of fast financing for borrowers based on their creditworthiness. However, borrowers may undermine this agreement due to early repayment or default, which are two major concerns for the platform and lenders, since both affect the profitability of a loan. While default risk is frequently focused on credit scoring literature, prepayment has received much less attention, despite a higher prepayment rate being observed in online lending when compared with default. This article uses multivariate logistic regression to predict the probability of both the underlying prepayment and default risks. Real consumer lending data of 140,605 unsecured loans provides evidence that these two events have their own distinct patterns. We consider systemic risk by incorporating macroeconomic factors in modeling and address the influence of economic conditions, which are lessons learnt from the last financial crisis. The out-of-sample validation has shown that both prepayment and default can be accurately predicted. This article highlights the necessity of regulations on prepayment given the fast growing online lending market.
Journal: Emerging Markets Finance and Trade
Pages: 118-132
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1479251
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1479251
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:118-132




Template-Type: ReDIF-Article 1.0
Author-Name: Changkyu Choi
Author-X-Name-First: Changkyu
Author-X-Name-Last: Choi
Author-Name: Hojin Jung
Author-X-Name-First: Hojin
Author-X-Name-Last: Jung
Author-Name: Li Su
Author-X-Name-First: Li
Author-X-Name-Last: Su
Title: Population Structure and Housing Prices: Evidence from Chinese Provincial Panel Data
Abstract: 
 This study analyzes the relationship between the proportion of the economically active population aged 15–64 to total population and housing prices. A panel of 31 provinces in China from 2002 to 2014 is used in our analysis. We find empirical evidence that the impact of the population structure on housing-price growth increases as the population growth rates rise. This observation suggests that, to understand provincial housing price movements in China, one should consider the ratio of working-age population to total population in a province. The main policy implication is that Chinese policymakers need to ensure a moderated population growth to effectively promote stability in housing prices and the economy.
Journal: Emerging Markets Finance and Trade
Pages: 29-38
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1496417
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496417
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Template-Type: ReDIF-Article 1.0
Author-Name: Sangwook Sung
Author-X-Name-First: Sangwook
Author-X-Name-Last: Sung
Author-Name: Hoon Cho
Author-X-Name-First: Hoon
Author-X-Name-Last: Cho
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: The Behavior of an Institutional Investor with Arbitrage Opportunities and Liquidity Risk
Abstract: 
 This study analyzes the efficiency of liquidity flows in stabilizing distressed markets from a theoretical perspective. We show that even in the event of a major negative market shock, a financial institution can increase its investment in the market when there is a strong incentive for arbitrage profit. However, the institution may choose to reduce its investment if the fear from liquidity risk exceeds the arbitrage incentive. In addition, our model reveals a positive relationship between funding liquidity and market liquidity. Our findings help to explain several financial issues in distressed markets, including the flight to quality, liquidity dry-ups, asset fire sales, and market shock amplifications.
Journal: Emerging Markets Finance and Trade
Pages: 1-12
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1498333
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1498333
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Template-Type: ReDIF-Article 1.0
Author-Name: Murat Çokgezen
Author-X-Name-First: Murat
Author-X-Name-Last: Çokgezen
Title: Research Performance of Turkish Economists and Economics Departments: Another Update and a Review of the 2000s
Abstract: 
 This article discusses publication performance and patterns of Turkish economists by analyzing changes overtime and comparing results to economists’ performance in some emerging economies. The results indicate that (1) the publication performance of Turkish economists and economics departments has improved rapidly over the years but they are still performing below their potential; (2) there is a remarkable difference in research performance among the institutions, but competition has been increasing; (3) the majority of contributions to research output in Turkey are made by six leading universities, but competitive pressure is coming from other institutions; (4) the faculties of the six leading universities are highly motivated to publish in high-quality journals, while members of the other institutions are also increasingly eager to find themselves a place in these outlets; (5) more than one-third of the articles are published in 10 of the 350 Social Sciences Citation Index (SSCI) Economics Journals, but the concentration ratio is decreasing overtime; (6) publication performance and patterns of Turkish economists are similar to their counterparts in emerging economies, but in some aspects Turkish economists perform better.
Journal: Emerging Markets Finance and Trade
Pages: 133-149
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1500891
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1500891
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:133-149




Template-Type: ReDIF-Article 1.0
Author-Name: Chune Young Chung
Author-X-Name-First: Chune Young
Author-X-Name-Last: Chung
Author-Name: Donghyun Kim
Author-X-Name-First: Donghyun
Author-X-Name-Last: Kim
Author-Name: Kyung Soon Kim
Author-X-Name-First: Kyung Soon
Author-X-Name-Last: Kim
Author-Name: Jin Hwon Lee
Author-X-Name-First: Jin Hwon
Author-X-Name-Last: Lee
Author-Name: Kyungjin Lee
Author-X-Name-First: Kyungjin
Author-X-Name-Last: Lee
Title: Do Institutional Investors Enhance Accounting Earnings Attributes in the Korean Market?
Abstract: 
 This study examines whether the effectiveness of institutional monitoring depends on the economic conditions of emerging capital markets. We use trading volume data by investor type to compute a proxy for total institutional ownership. We then analyze the impact of the proxy variable on accounting earnings attributes and examine whether the association between the two depends on an expectation of market growth. We find that the effect of institutional monitoring decreases when market growth is expected to be low, implying that market growth may be a critical determinant of institutional investors’ long-term monitoring effectiveness in emerging capital markets.
Journal: Emerging Markets Finance and Trade
Pages: 39-58
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1503081
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1503081
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:39-58




Template-Type: ReDIF-Article 1.0
Author-Name: Sadia Bano
Author-X-Name-First: Sadia
Author-X-Name-Last: Bano
Author-Name: Yuhuan Zhao
Author-X-Name-First: Yuhuan
Author-X-Name-Last: Zhao
Author-Name: Ashfaq Ahmad
Author-X-Name-First: Ashfaq
Author-X-Name-Last: Ahmad
Author-Name: Song Wang
Author-X-Name-First: Song
Author-X-Name-Last: Wang
Author-Name: Ya Liu
Author-X-Name-First: Ya
Author-X-Name-Last: Liu
Title: Why Did FDI Inflows of Pakistan Decline? From the Perspective of Terrorism, Energy Shortage, Financial Instability, and Political Instability
Abstract: 
 Foreign direct investment (FDI) inflows are important for economic development in all countries, especially developing ones. In many developing countries, FDI inflows have increased over the past two decades. However, in Pakistan FDI inflows declined over the past decade. This study examines the reasons for declining FDI inflows to Pakistan, considering the main issues, such as terrorism, energy shortages, financial instability, and political instability, with some macroeconomic indicators as control variables. These analyses are based on pre- and post-global financial crisis events, and we check the robustness by controlling for the global financial crisis. Our analyses are conducted using an autoregressive distributed lag model (ARDL) for co-integration among variables. The results show that energy shortages, financial instability, and political instability have adverse effects, and terrorism has insignificant effects on FDI inflows to Pakistan before the financial crisis in the long term. However, the post-financial crisis period indicates that terrorism and energy shortages are the main drivers of decline in FDI inflows to Pakistan. Market size, inflation, and exchange rates affect FDI inflows positively. The global financial crisis has an adverse impact on FDI inflows to Pakistan. This study is helpful for the Pakistani government as it attempts to design useful policies for attracting FDI.
Journal: Emerging Markets Finance and Trade
Pages: 90-104
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1504207
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1504207
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:90-104




Template-Type: ReDIF-Article 1.0
Author-Name: Donghyun Kim
Author-X-Name-First: Donghyun
Author-X-Name-Last: Kim
Author-Name: Chune Young Chung
Author-X-Name-First: Chune Young
Author-X-Name-Last: Chung
Author-Name: Kyung Soon Kim
Author-X-Name-First: Kyung Soon
Author-X-Name-Last: Kim
Author-Name: Hong Kee Sul
Author-X-Name-First: Hong Kee
Author-X-Name-Last: Sul
Title: Daily Stock Trading by Investor Type and Information Asymmetry: Evidence from the Korean Market
Abstract: 
 We examine the influence of trading by heterogeneous investors on information asymmetry in the Korean stock market, which includes domestic and foreign institutional investors and individual investors. In particular, we examine the relationship between the daily trading volume and the level of information asymmetry reflected in the stock price. The results reveal that high-volume daily trading by domestic institutional and individual investors increases the degree of information asymmetry in the short term, but is more evident for individual investors. Foreign institutional investors tend to mitigate the information asymmetry. Finally, our findings are robust to an alternative measure of investor trading.
Journal: Emerging Markets Finance and Trade
Pages: 13-28
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1504291
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1504291
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:13-28




Template-Type: ReDIF-Article 1.0
Author-Name: Byungjin Kwak
Author-X-Name-First: Byungjin
Author-X-Name-Last: Kwak
Author-Name: Kyoungwon Mo
Author-X-Name-First: Kyoungwon
Author-X-Name-Last: Mo
Title: Group-Affiliated Analysts’ Strategic Forecasts During a Year: Evidence from Korea
Abstract: 
 In examining the family-controlled business groups in Korea, prior literature shows that group-affiliated analysts’ forecasts are optimistically biased. This article investigates whether the group-affiliated analysts strategically time the level of accuracy and bias in their forecasts for the same group-affiliated firms due to the change in information asymmetry in the market. The results show that the group-affiliated analysts issue more accurate and less optimistic earnings forecasts for the affiliated firms when the level of information asymmetry is low; particularly, in April, which is right after annual earnings announcements.
Journal: Emerging Markets Finance and Trade
Pages: 59-77
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1505611
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1505611
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:59-77




Template-Type: ReDIF-Article 1.0
Author-Name: Soyeon Kim
Author-X-Name-First: Soyeon
Author-X-Name-Last: Kim
Author-Name: Hyun-Han Shin
Author-X-Name-First: Hyun-Han
Author-X-Name-Last: Shin
Author-Name: Seungwon Yu
Author-X-Name-First: Seungwon
Author-X-Name-Last: Yu
Title: Performance of State-Owned Enterprises During Public Elections: The Case of Korea
Abstract: 
 State-owned enterprises (SOEs) pursue multiple goals to maximize public welfare. Therefore, governments must evaluate both their economic efficiency and their social effectiveness. However, government performance evaluation (GPE) of SOEs may be affected by political motives. This paper investigates whether SOEs are fairly evaluated by governments during political events. Using Korean data, we find no significant relation between public elections (presidential and national assembly elections) and the financial performance of SOEs. However, the GPE scores of SOEs are significantly lower in years in which a public election is held than in other years. In addition, the GPE of SOEs can be an important determinant of whether or not to replace CEOs. This research sheds light on the political use of the GPE for SOEs.
Journal: Emerging Markets Finance and Trade
Pages: 78-89
Issue: 1
Volume: 55
Year: 2019
Month: 1
X-DOI: 10.1080/1540496X.2018.1509789
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1509789
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:1:p:78-89




Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: Riza Demirer
Author-X-Name-First: Riza
Author-X-Name-Last: Demirer
Title: Effect of Global Shocks and Volatility on Herd Behavior in an Emerging Market: Evidence from Borsa Istanbul
Abstract: 
 In this article, we examine the dynamic relationship between global factors and herd behavior in an emerging market. Utilizing a time-varying transition probability Markov-switching model, we examine the role of global risk factors on investor behavior in Borsa Istanbul, which is dominated largely by foreign investors. Our tests yield three distinct market regimes (low, high, and extreme volatility) and evidence consistent with herd behavior during both the high- and extreme-volatility regimes. U.S. market–related factors are found to dominate regime transitions and thus significantly contribute to herd behavior in all market sectors with the exception of industrials, suggesting that industrials are relatively immune to global shocks. Multivariate synchronization tests further suggest that herding regimes are perfectly synchronized across all market sectors.
Journal: Emerging Markets Finance and Trade
Pages: 140-159
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011520
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011520
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:140-159




Template-Type: ReDIF-Article 1.0
Author-Name: Denice Bodeutsch
Author-X-Name-First: Denice
Author-X-Name-Last: Bodeutsch
Author-Name: Philip Hans Franses
Author-X-Name-First: Philip Hans
Author-X-Name-Last: Franses
Title: The Stock Exchange of Suriname: Returns, Volatility, Correlations, and Weak-Form Efficiency
Abstract: 
 The empirical properties of stock returns are studied for ten companies listed at the Suriname Stock Exchange (SSE), which is a young and growing stock market. Individual stock returns are found to be predictable from the own past to some extent, but the equal-weighted index returns are not. Dynamic correlations with large Latin American stock markets appear to be zero. It is concluded that there is much more efficiency to be gained for the SSE.
Journal: Emerging Markets Finance and Trade
Pages: 130-139
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011523
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011523
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:130-139




Template-Type: ReDIF-Article 1.0
Author-Name: Martin Holmén
Author-X-Name-First: Martin
Author-X-Name-Last: Holmén
Author-Name: Peng Wang
Author-X-Name-First: Peng
Author-X-Name-Last: Wang
Title: Pyramid IPOs on the Chinese Growth Enterprise Market
Abstract: 
 In this article, we investigate initial public offerings (IPOs) of high-tech firms on the Chinese Growth Enterprise Market (GEM). Almost half of the GEM IPOs are set up in pyramid structures. The likelihood of a pyramid structure increases with the size of the IPO firm and state control. Our results do not suggest that pyramids are set up to overcome financial constraints. However, we document that pyramid IPOs are discounted before the IPO. The subscription price-to-book ratio is significantly lower for pyramid IPOs, and this translates into higher underpricing. We conclude that IPO investors demand a higher risk premium when investing in pyramid IPOs.
Journal: Emerging Markets Finance and Trade
Pages: 160-173
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011526
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011526
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:160-173




Template-Type: ReDIF-Article 1.0
Author-Name: Tomasz Jewartowski
Author-X-Name-First: Tomasz
Author-X-Name-Last: Jewartowski
Author-Name: Michał Kałdoński
Author-X-Name-First: Michał
Author-X-Name-Last: Kałdoński
Title: Family Control and Debt When Dual-Class Shares Are Restricted: The Case of Poland
Abstract: 
 Our research, based on an unbalanced panel of 105 companies listed on the Warsaw Stock Exchange during 2006–10, demonstrates that public family firms are, on average, more levered than nonfamily firms and more extensively use control-enhancing mechanisms (CEMs), resulting in a wedge between control (voting) rights and cash flow rights. We decompose the total wedge for family firms into a standard dual-class shares component and a disproportionate board representation component finding inverse relations between each of them and the debt levels (positive for the former and negative for the latter). When dual-class shares are restricted—as in the case of Polish companies once they become public—financial decisions may be driven by control motivations. Family firms have strong incentives to use debt as a nondiluting security.
Journal: Emerging Markets Finance and Trade
Pages: 174-187
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011529
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011529
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:174-187




Template-Type: ReDIF-Article 1.0
Author-Name: Syed Faiq Najeeb
Author-X-Name-First: Syed Faiq
Author-X-Name-Last: Najeeb
Author-Name: Obiyathulla Bacha
Author-X-Name-First: Obiyathulla
Author-X-Name-Last: Bacha
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Does Heterogeneity in Investment Horizons Affect Portfolio Diversification? Some Insights Using M-GARCH-DCC and Wavelet Correlation Analysis
Abstract: 
 Recent literature draws attention to the issue of whether heterogeneity in investment horizons has an effect on resulting investor exposures. In this article, using Malaysia as a case study, we make the first attempt to examine comovement dynamics of Islamic equity returns to identify international portfolio diversification opportunities for investors having heterogeneous investment horizons. We use three recent and appropriate methodologies: M-GARCH-DCC, Continuous Wavelet Transforms (CWT), and Maximum Overlap Discrete Wavelet Transform (MODWT). The results significantly tend to indicate that effective portfolio diversification opportunities between our sample markets exist mainly for short holding periods while for longer investment horizons, where investor stockholding periods exceed one year, the markets appear to be mostly highly correlated yielding minimal portfolio diversification benefits. Overall, the results critically highlight the significance of heterogeneity in investment horizons and bear important implications for portfolio diversification strategies.
Journal: Emerging Markets Finance and Trade
Pages: 188-208
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011531
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011531
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:188-208




Template-Type: ReDIF-Article 1.0
Author-Name: Syed Mujahid Hussain
Author-X-Name-First: Syed Mujahid
Author-X-Name-Last: Hussain
Author-Name: Timo Korkeamäki
Author-X-Name-First: Timo
Author-X-Name-Last: Korkeamäki
Author-Name: Danielle Xu
Author-X-Name-First: Danielle
Author-X-Name-Last: Xu
Author-Name: Ashfaque Hasan Khan
Author-X-Name-First: Ashfaque Hasan
Author-X-Name-Last: Khan
Title: What Drives Stock Market Growth? A Case of a Volatile Emerging Economy
Abstract: 
 We study the determinants of the explosive stock market growth and increased foreign portfolio investment in Pakistan. Our results indicate that in contrast to evidence from developed markets, the aggregate stock returns are not driven by macroeconomic fundamentals in Pakistan. Moreover, foreign portfolio investors do not tend to react to changes in economic variables in Pakistan. As fundamentals fail to affect stock returns in Pakistan, they may be based more on speculative motives. Our results suggest that in the absence of a strong institutional and regulatory framework, economic policies have only a limited effect on stabilizing an emerging market.
Journal: Emerging Markets Finance and Trade
Pages: 209-223
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011533
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011533
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:209-223




Template-Type: ReDIF-Article 1.0
Author-Name: Ruthira Naraidoo
Author-X-Name-First: Ruthira
Author-X-Name-Last: Naraidoo
Author-Name: Leroi Raputsoane
Author-X-Name-First: Leroi
Author-X-Name-Last: Raputsoane
Title: Debt Sustainability and Financial Crises in South Africa
Abstract: 
 In this study, we use a long historical data series to assess debt sustainability in South Africa allowing for possible nonlinearities in the form of threshold behavior by fiscal authorities conditional on the recent history of indebtedness and the occurrence of financial crises. First, the results reveal that fiscal consolidation is maintained when a debt-to-GDP ratio of around 56 percent is reached with evidence of a statistically insignificant fiscal consolidation below this threshold level. Second, the results reveal that fiscal adjustment takes into account past levels of debt to allow for smoother corrective action. Third, fiscal consolidation occurs at a higher debt-to-GDP ratio during financial crises.
Journal: Emerging Markets Finance and Trade
Pages: 224-233
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011534
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011534
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:224-233




Template-Type: ReDIF-Article 1.0
Author-Name: Deniz Karaoglan
Author-X-Name-First: Deniz
Author-X-Name-Last: Karaoglan
Author-Name: Cagla Okten
Author-X-Name-First: Cagla
Author-X-Name-Last: Okten
Title: Labor-Force Participation of Married Women in Turkey: A Study of the Added-Worker Effect and the Discouraged-Worker Effect
Abstract: 
 We analyze married women’s labor-supply responses to their husbands’ job loss (added-worker effect) and worsening of unemployment conditions (discouraged-worker effect). We construct six two-year pseudopanels based on the previous year’s labor market outcomes using nationally representative Turkish Household Labor Force Surveys from 2005 to 2010. We find that women whose husbands involuntarily transition from employment to unemployment are more likely to participate in the labor force. We pool the six-year pseudopanels and examine the effects of aggregate employment conditions on wives’ transition to the labor force. A worsening of unemployment conditions has a small discouraging effect on wives’ labor-supply responses.
Journal: Emerging Markets Finance and Trade
Pages: 274-290
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011535
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011535
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:274-290




Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Cuestas
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Cuestas
Author-Name: Mercedes Monfort
Author-X-Name-First: Mercedes
Author-X-Name-Last: Monfort
Author-Name: Javier Ordóñez
Author-X-Name-First: Javier
Author-X-Name-Last: Ordóñez
Title: Unemployment Convergence in Central and Eastern European Countries: Driving Forces and Cluster Behavior
Abstract: 
 Employing a nonlinear logistic smooth transition autoregression system and comovement analysis, we find that the German business cycle has acted as a common driver affecting the cyclical behavior of unemployment rates in Central and Eastern European countries. In addition, we identify two convergence clubs in unemployment dynamics. The first comprises the Baltic States, Hungary, and Poland, and the second group of countries is composed of the Czech Republic and Slovakia. Interestingly, this classification matches the labor market policies and institutional divergences observed among these countries.
Journal: Emerging Markets Finance and Trade
Pages: 259-273
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011537
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011537
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:259-273




Template-Type: ReDIF-Article 1.0
Author-Name: Aslı Aşçıoğlu
Author-X-Name-First: Aslı
Author-X-Name-Last: Aşçıoğlu
Author-Name: Mehmet Oğuz Karahan
Author-X-Name-First: Mehmet Oğuz
Author-X-Name-Last: Karahan
Author-Name: Neslihan Yılmaz
Author-X-Name-First: Neslihan
Author-X-Name-Last: Yılmaz
Title: Price Discovery Between the New York Stock Exchange and Istanbul Stock Exchange
Abstract: 
 We study the price discovery process between the New York Stock Exchange (NYSE) and Istanbul Stock Exchange (ISE). We examine the only cross-listed stock in those exchanges, Turkcell, for the overlapping trading periods. Utilizing the information share (IS) and the common factor component (GG) approaches, we estimate the contribution of each market to the price discovery process. We find that each market has relatively close GG coefficients. IS estimates indicate that a significant portion of Turkcell’s price discovery occurs on the NYSE. The smaller share of price discovery on the ISE may be attributed to the discrete tick sizes in the ISE.
Journal: Emerging Markets Finance and Trade
Pages: 247-258
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1011542
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1011542
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:247-258




Template-Type: ReDIF-Article 1.0
Author-Name: Min Zhang
Author-X-Name-First: Min
Author-X-Name-Last: Zhang
Author-Name: Jun Su
Author-X-Name-First: Jun
Author-X-Name-Last: Su
Author-Name: Yuefan Sun
Author-X-Name-First: Yuefan
Author-X-Name-Last: Sun
Author-Name: Wen Zhang
Author-X-Name-First: Wen
Author-X-Name-Last: Zhang
Author-Name: Na Shen
Author-X-Name-First: Na
Author-X-Name-Last: Shen
Title: Political Connections and Corporate Diversification: An Exploration of Chinese Firms
Abstract: 
 In this study, we explore the relationship between political connections and corporate diversification in China. We find that the diversification level of politically connected firms is significantly higher than that of non-politically connected firms. We further find that the relationship is stronger in non-state-owned enterprises and in areas in which government intervention is greater. This study enriches the corporate diversification literature by highlighting political connections as an important driver of corporate diversification in emerging markets. It also furthers our understanding of the institutional environment as a moderator of the relationship between political connections and firm diversification.
Journal: Emerging Markets Finance and Trade
Pages: 234-246
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1012400
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1012400
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Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Alvarez
Author-X-Name-First: Roberto
Author-X-Name-Last: Alvarez
Title: Productivity, Trade, and Development in Latin America
Abstract: 
 Latin American countries face the very important challenge of increasing and sustaining high productivity growth. The literature has shown that income differences in respect to developed economies is explained mostly by differences in productivity. Some key aspects are innovation and international trade. However, although most of these countries opened their economies and introduced several public programs aimed to support innovation, the countries of the region present poor indicators in the generation and application of knowledge. In this introduction, I summarize the five articles collected in this issue. All of them are empirical contributions for understanding the relationship among productivity, trade, and development in these countries.
Journal: Emerging Markets Finance and Trade
Pages: 1-2
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.998058
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.998058
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Template-Type: ReDIF-Article 1.0
Author-Name: Diego Aboal
Author-X-Name-First: Diego
Author-X-Name-Last: Aboal
Author-Name: Paula Garda
Author-X-Name-First: Paula
Author-X-Name-Last: Garda
Author-Name: Bibiana Lanzilotta
Author-X-Name-First: Bibiana
Author-X-Name-Last: Lanzilotta
Author-Name: Marcelo Perera
Author-X-Name-First: Marcelo
Author-X-Name-Last: Perera
Title: Innovation, Firm Size, Technology Intensity, and Employment Generation: Evidence from the Uruguayan Manufacturing Sector
Abstract: 
 In this article, we investigate the effect of product and process innovation on employment growth and on employment composition in terms of skills using data from Uruguayan manufacturing firms’ innovation surveys. The results reveal that product innovation is associated with employment growth. There is (weaker) evidence that process innovation displaces labor, especially in high-tech firms. There is evidence that innovation is more complementary to skilled than to unskilled labor. Product innovation seems to have a larger positive effect on skilled labor, especially in high-tech industries. Process innovation in general displaces unskilled labor but is neutral in terms of skilled labor.
Journal: Emerging Markets Finance and Trade
Pages: 3-26
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.998072
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.998072
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Template-Type: ReDIF-Article 1.0
Author-Name: Ana M. Fernandes
Author-X-Name-First: Ana M.
Author-X-Name-Last: Fernandes
Author-Name: Alberto E. Isgut
Author-X-Name-First: Alberto E.
Author-X-Name-Last: Isgut
Title: Learning-by-Exporting Effects: Are They for Real?
Abstract: 
 In this article, we thoroughly examine the learning-by-exporting (LBE) hypothesis for Colombian manufacturing plants during 1981–91 and find significant evidence in its favor. The results are robust to the use of different samples of the data set, different econometric methods, and different modeling approaches. We find that export experience acquired by plants in years before the previous year has an important effect on plant productivity and that the effect of export experience on productivity is nonsignificant for exporters that stopped exporting in the previous year. We also find evidence of diminishing returns to export experience in that LBE effects are quantitatively lower for the experienced exporters in our sample.
Journal: Emerging Markets Finance and Trade
Pages: 65-89
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.998073
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.998073
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Template-Type: ReDIF-Article 1.0
Author-Name: Aldo Gonzalez
Author-X-Name-First: Aldo
Author-X-Name-Last: Gonzalez
Author-Name: Alejandro Micco
Author-X-Name-First: Alejandro
Author-X-Name-Last: Micco
Author-Name: Ana Maria Montoya
Author-X-Name-First: Ana Maria
Author-X-Name-Last: Montoya
Title: Dollarization, Foreign Ownership, and Competition in the Banking Industry in Latin America
Abstract: 
 We estimate the correlation of foreign bank penetration and dollarization with competition in the banking industry in sixteen Latin American countries during the period 1995–2008. We apply Boone’s methodology to compute the intensity of competition. Our results suggest that in countries with an initial low level of competition, foreign ownership tends to foster rivalry among banks, whereas the opposite is true in countries with an initial high level of competition. The adoption of dollarization or a currency board, which reduces transaction costs and facilitates financial integration, has a positive correlation with competition. This is the case for Ecuador, El Salvador, and Argentina.
Journal: Emerging Markets Finance and Trade
Pages: 90-107
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.998074
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.998074
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:1:p:90-107




Template-Type: ReDIF-Article 1.0
Author-Name: Gustavo Crespi
Author-X-Name-First: Gustavo
Author-X-Name-Last: Crespi
Author-Name: Lucas Figal Garone
Author-X-Name-First: Lucas Figal
Author-X-Name-Last: Garone
Author-Name: Alessandro Maffioli
Author-X-Name-First: Alessandro
Author-X-Name-Last: Maffioli
Author-Name: Marcela Melendez
Author-X-Name-First: Marcela
Author-X-Name-Last: Melendez
Title: Long-Term Productivity Effects of Public Support to Innovation in Colombia
Abstract: 
 In this study, we evaluate the effect of innovation promotion programs administrated by the Colombian Innovation Agency (COLCIENCIAS). The evaluation focuses on programs that provide financial incentives for research and development (R&amp;D)—matching grants and contingent loans—and encourage the formation of linkages among firms, universities, and other public research organizations. We use longitudinal firm-level data and adopt a fixed effects identification strategy to control for potential selection biases. The findings show that COLCIENCIAS financial incentives have increased labor productivity as a result of gains in total factor productivity (TFP) due to product diversification and, to a lesser extent, of capital intensification.
Journal: Emerging Markets Finance and Trade
Pages: 48-64
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.998080
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.998080
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Template-Type: ReDIF-Article 1.0
Author-Name: Ramiro de Elejalde
Author-X-Name-First: Ramiro
Author-X-Name-Last: de Elejalde
Author-Name: David Giuliodori
Author-X-Name-First: David
Author-X-Name-Last: Giuliodori
Author-Name: Rodolfo Stucchi
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Stucchi
Title: Employment and Innovation: Firm-Level Evidence from Argentina
Abstract: 
 This article provides evidence about the effect of innovation on employment in Argentina in the period 1998–2001. In particular, we quantify the effect of process and product innovations on employment growth and the skill composition. Our results show that: (1) Product innovations have a positive effect on employment growth biased toward skill labor; (2) Process innovations do not affect employment growth or composition; (3) There are no heterogeneous effects in technology intensity and size; (4) Most of the contraction in employment in this period was explained by noninnovators.
Journal: Emerging Markets Finance and Trade
Pages: 27-47
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.998088
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.998088
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Template-Type: ReDIF-Article 1.0
Author-Name: Shiyi Chen
Author-X-Name-First: Shiyi
Author-X-Name-Last: Chen
Author-Name: Li Wang
Author-X-Name-First: Li
Author-X-Name-Last: Wang
Title: Will Political Connections Be Accounted for in the Interest Rates of Chinese Urban Development Investment Bonds?
Abstract: 
 A special political connection, i.e., the implicit guarantee of the government on the debts of borrowers, is considered in this article to explore the mechanism through which the implicit guarantee of government will affect the interest rate of bonds issued by borrowers. Theoretical analysis shows that if the implicit guarantee from the government is less convincing, only investment income will play an important role in the determination of interest rate while explicit credence will not affect interest rate. If the implicit guarantee is persuasive, both explicit credence and investment income will affect the interest rate of bonds. Empirical analysis of Chinese urban investment bonds and U.S. municipal bonds during 2006–11 supports our theoretical predictions.
Journal: Emerging Markets Finance and Trade
Pages: 108-129
Issue: 1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998532
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998532
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Template-Type: ReDIF-Article 1.0
Author-Name: İlkay Şendeniz-Yüncü
Author-X-Name-First: İlkay
Author-X-Name-Last: Şendeniz-Yüncü
Author-Name: Levent Akdeniz
Author-X-Name-First: Levent
Author-X-Name-Last: Akdeniz
Author-Name: Kürşat Aydoğan
Author-X-Name-First: Kürşat
Author-X-Name-Last: Aydoğan
Title: Do Stock Index Futures Affect Economic Growth? Evidence from 32 Countries
Abstract: 
 This article investigates the relationship between stock index futures markets development and economic growth using time-series methods for 32 developed and developing countries. Evidence of cointegration between stock index futures and real economy in 29 countries suggests the presence of co-movements among the variables, indicating long-run stationarity in those countries. Our findings show that there is Granger-causality from stock index futures markets development to economic growth for middle-income countries with relatively low real per capita GDP, and Granger-causality in the reverse direction for the countries with high real per capita GDP. Variance decomposition and impulse-response function (IRF) analyses results support the existence of a relationship between stock index futures and real economy.
Journal: Emerging Markets Finance and Trade
Pages: 410-429
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1247348
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1247348
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:410-429




Template-Type: ReDIF-Article 1.0
Author-Name: Katarzyna Platt
Author-X-Name-First: Katarzyna
Author-X-Name-Last: Platt
Title: European Union Enlargement Announcement and Corporate Valuations
Abstract: 
 This study explores the effects of the European Union accession announcement on the valuations of companies in the prospective member states. I examine firm level data from ten countries which joined the EU in May 2004. My analysis reveals that the announcement of these countries’ future EU membership in November 2001 significantly increased the Tobin’s Q ratios of their publicly traded firms several years before formal membership was granted. This increase in firm value can likely be attributed to a reduced cost of capital and/or an expected increase in growth opportunities and cash flows, resulting from the announcement of their countries’ inclusion in the EU.
Journal: Emerging Markets Finance and Trade
Pages: 430-449
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1250210
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1250210
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Template-Type: ReDIF-Article 1.0
Author-Name: Yusaku Nishimura
Author-X-Name-First: Yusaku
Author-X-Name-Last: Nishimura
Author-Name: Bianxia Sun
Author-X-Name-First: Bianxia
Author-X-Name-Last: Sun
Title: China’s Exchange-Rate Regime Reform and Trade Between China and the Eurozone
Abstract: 
 This article investigates the effects of China’s exchange-rate regime reform on trade between China and the eurozone. Both the exchange rate between the euro (EUR) and the renminbi (RMB) and exchange-rate volatility are included in the autoregressive distributed lag (ARDL) model, and our empirical work also considers the third-country effect. Our findings show that, during the reform period, China’s exports to the eurozone are affected only by the EUR–RMB exchange rate per se and not by its volatility. However, neither the exchange rate nor its volatility significantly influences the eurozone’s exports to China during the reform period. Such asymmetry might be attributed to the discrepancy between Chinese exporters and their eurozone counterparts in the knowledge and ability to manage exchange-rate risk.
Journal: Emerging Markets Finance and Trade
Pages: 450-467
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1256195
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1256195
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Template-Type: ReDIF-Article 1.0
Author-Name: Andi Duqi
Author-X-Name-First: Andi
Author-X-Name-Last: Duqi
Author-Name: Hussein Al-Tamimi
Author-X-Name-First: Hussein
Author-X-Name-Last: Al-Tamimi
Title: The Impact of Owner’s Identity on Banks’ Capital Adequacy and Liquidity Risk
Abstract: 
 In this article, we test the potential impact of the owner’s identity on banks’ capital adequacy and liquidity risk as defined by the Basel III regulatory framework. Using a unique dataset on a sample of banks domiciled in the Middle East and North Africa region, we find that the ownership structure is an important driver of banks’ regulatory capital and liquidity risk. Private and foreign investors exhibit a stronger preference for higher levels of capital, whereas the impact of government ownership on banks’ risk remains inconclusive. Moreover, privately-owned banks evidenced lower levels of liquidity risk compared to the other groups during the last financial crisis because of tighter budget constraints and more compelling liquidity needs.
Journal: Emerging Markets Finance and Trade
Pages: 468-488
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2016.1262255
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1262255
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Template-Type: ReDIF-Article 1.0
Author-Name: Jun Huang
Author-X-Name-First: Jun
Author-X-Name-Last: Huang
Author-Name: Wei Hu
Author-X-Name-First: Wei
Author-X-Name-Last: Hu
Author-Name: Guowei Zhu
Author-X-Name-First: Guowei
Author-X-Name-Last: Zhu
Title: The Effect of Corporate Social Responsibility on Cost of Corporate Bond: Evidence from China
Abstract: 
 This article examines the link between corporate social responsibility(CSR) and cost of bond(COB) in China. We find that there exists a negative relationship between CSR and COB. In particular, when the bond issuer is a state-owned enterprise, or when the credit rating of bond is high, the negative association between CSR and COB is strengthened. The findings indicate that CSR plays a significant role in reducing the risk premium of corporate bonds through an insurance-like effect. Moreover, the effect of CSR on COB also depends on contextual factors such as firm ownership and bond credit rating.
Journal: Emerging Markets Finance and Trade
Pages: 255-268
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1332591
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1332591
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:255-268




Template-Type: ReDIF-Article 1.0
Author-Name: Yingyi Hu
Author-X-Name-First: Yingyi
Author-X-Name-Last: Hu
Author-Name: Tiao Zhao
Author-X-Name-First: Tiao
Author-X-Name-Last: Zhao
Title: Does Cross-Listing Really Enhance Market Efficiency for Stocks Listed in the Home Market? The Perspective of Noise Trading in the Chinese Stock Market
Abstract: 
 The investor recognition hypothesis and the bonding hypothesis, which help us understand the market quality of stocks that are cross-listed on different stock markets, imply improved market efficiency after cross-listing because of increased investor participation. However, the noise trading of inexperienced investors in the Chinese stock market negatively affects market efficiency. By employing propensity score matching and multivariate regression analysis, we show that the increased individual investor participation actually lowers market efficiency in their home market after cross-listing. This effect is more evident for stocks that were either listed first on the Chinese stock market or listed on the Chinese stock market and the Hong Kong stock exchange (SEHK) on the same date than for stocks that were listed first on the SEHK.
Journal: Emerging Markets Finance and Trade
Pages: 307-327
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1336085
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1336085
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:307-327




Template-Type: ReDIF-Article 1.0
Author-Name: Yong Chen
Author-X-Name-First: Yong
Author-X-Name-Last: Chen
Author-Name: Dingming Liu
Author-X-Name-First: Dingming
Author-X-Name-Last: Liu
Title: Dissecting Real Exchange Rate Fluctuations in China
Abstract: 
 This article uses a structural VAR model to investigate the sources of real exchange rate fluctuations in China over the period 1995Q1–2015Q4, taking into account five different types of macroeconomic shocks including technology, government spending, monetary policy, foreign demand, and risk premium shocks. These shocks are identified using sign restrictions derived from predictions of an open economy general equilibrium model calibrated to China’s economy. We find that foreign demand shocks are the most important driving force of China’s real exchange rate, which explains approximately 20% to 40% of the variance in 20 quarters. It is in line with the findings in the literature which show real demand shocks are the key contributor to fluctuations in the real exchange rate. Nominal shocks such as monetary policy shocks and risk premium shocks play relatively important roles at the short-term horizons, but their effects decay rapidly.
Journal: Emerging Markets Finance and Trade
Pages: 288-306
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1342621
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1342621
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:288-306




Template-Type: ReDIF-Article 1.0
Author-Name: Changkyu Choi
Author-X-Name-First: Changkyu
Author-X-Name-Last: Choi
Author-Name: Kyungsun Park
Author-X-Name-First: Kyungsun
Author-X-Name-Last: Park
Title: Financial System and Housing Price
Abstract: 
 The 2007/2008 US financial crisis is related to the securitization of mortgage loans and the housing-price boom and bust. In this article, we test the hypothesis that housing-price change is related to the development of the financial system. Using panel data for 23 countries from 1988 to 2012, we have found that the housing-price growth rate increases as the financial system moves a bank orientation to a market orientation. The policy implication is that the government should beware sudden increases in the capital market relative to the banking sector. Especially, more sophisticated financial supervision with respect to housing-price movement is required when a bank-based financial system progresses quickly to a market-oriented financial system.
Journal: Emerging Markets Finance and Trade
Pages: 328-335
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1344832
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1344832
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:328-335




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui Hou
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Hou
Author-Name: Shuo Li
Author-X-Name-First: Shuo
Author-X-Name-Last: Li
Author-Name: Qing Wang
Author-X-Name-First: Qing
Author-X-Name-Last: Wang
Title: Financial Structure and Income Inequality: Evidence from China
Abstract: 
 This study investigates the relationship between financial structure and income inequality in China and explores a channel for changes of financial structure to influence income inequality. Our results suggest that, relative to total bank credit, an increase in the raised capital from the stock market reduces income inequality, whereas a rise of turnover in the stock market augments income inequality. Financial structure affects income inequality by influencing the development of medium-sized enterprises. Our evidence supports the financial structure relevancy view. To reduce income inequality, the Chinese government should help to promote equity financing and decrease excessive speculation on the stock market.
Journal: Emerging Markets Finance and Trade
Pages: 359-376
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1347780
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1347780
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:359-376




Template-Type: ReDIF-Article 1.0
Author-Name: Youn-Sik Choi
Author-X-Name-First: Youn-Sik
Author-X-Name-Last: Choi
Author-Name: Jiwon Hyeon
Author-X-Name-First: Jiwon
Author-X-Name-Last: Hyeon
Author-Name: Taejin Jung
Author-X-Name-First: Taejin
Author-X-Name-Last: Jung
Author-Name: Woo-Jong Lee
Author-X-Name-First: Woo-Jong
Author-X-Name-Last: Lee
Title: Audit Pricing of Shared Leadership
Abstract: 
 This study explores audit implications of shared leadership in client firms. Analyzing data from 2002 to 2013 of Korean listed companies, we find that auditors spend fewer audit hours and charge lower audit fees for clients with multiple CEOs. Additional tests reveal that the lower audit fees for co-CEO clients are likely attributable to reduced audit effort rather than to reduced hourly rates. We also document that firms with co-CEOs exhibit better-reporting quality than do firms with a solitary CEO. In sum, this article presents evidence that mutual monitoring via co-CEO appointments assures high-quality financial reporting of audit clients, and thus leads to reduced audit fees.
Journal: Emerging Markets Finance and Trade
Pages: 336-358
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1348292
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1348292
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:336-358




Template-Type: ReDIF-Article 1.0
Author-Name: Lu Liu
Author-X-Name-First: Lu
Author-X-Name-Last: Liu
Author-Name: Chong Zhou
Author-X-Name-First: Chong
Author-X-Name-Last: Zhou
Author-Name: Junbing Huang
Author-X-Name-First: Junbing
Author-X-Name-Last: Huang
Author-Name: Yu Hao
Author-X-Name-First: Yu
Author-X-Name-Last: Hao
Title: The Impact of Financial Development on Energy Demand: Evidence from China
Abstract: 
 An autoregressive distributed lag (ARDL) bounds approach and vector error correction model (VECM) are used here to better understand the role of financial development in energy demand in China. Based on data from 1980 to 2014, the ARDL bounds approach yields empirical evidence that confirms the existence of long-run relationships among energy demand per capita, gross domestic product per capita, urbanization, economic structure, and financial development. The VECM framework shows the direction of Granger causality that combines the short run and the long run between the variables. The results suggest a feedback effect between financial development and energy demand per capita in the long run. However, financial development Granger causes per capita energy demand without a feedback effect in the short run. The results of this research may be of great importance for decision makers as they develop policies on energy and economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 269-287
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1358609
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1358609
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:269-287




Template-Type: ReDIF-Article 1.0
Author-Name: Yubing Sui
Author-X-Name-First: Yubing
Author-X-Name-Last: Sui
Author-Name: Geng Niu
Author-X-Name-First: Geng
Author-X-Name-Last: Niu
Title: The Urban–Rural Gap of Chinese Household Finance
Abstract: 
 Using data from a large household survey, we investigate the size of China’s urban–rural gap in ownership of bank deposits, risky financial assets, and credit cards. We further examine the factors underlying the gap using decomposition analysis. Compared to their urban counterparts, rural Chinese are much less likely to own a variety of financial products. Both demand-side barriers and supply-side barriers to financial inclusion exist in China. More, we use instrumental variable analysis to address the endogeneity of the local supply of financial service. Above all, our study indicates that a large financial services vacuum in rural areas needs to be filled.
Journal: Emerging Markets Finance and Trade
Pages: 377-392
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1367660
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1367660
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:377-392




Template-Type: ReDIF-Article 1.0
Author-Name: Meng Sun
Author-X-Name-First: Meng
Author-X-Name-Last: Sun
Author-Name: Qichun He
Author-X-Name-First: Qichun
Author-X-Name-Last: He
Title: Central Transfer and Fiscal Capacity in China: Evidence from the Tax-Sharing System
Abstract: 
 In 1994, the Chinese government introduced a new fiscal system. Using the provincial panel data during the following period 1995–2010, we find robust evidence that central transfer (measured as the ratio of net central transfer to budgetary expenditure for each province) has a significant, negative effect on the fiscal capacity of a province (the sum of budgetary and extra-budgetary incomes as a percentage of GDP). Therefore, when the central government favors the poor provinces in central transfers (the common pool problem), the rich provinces expand their extra-budgetary income more to avoid predation by the central government, which helps increase the fiscal capacity and thus the market-preserving behavior of the rich provinces. Our result helps explain China’s success, which has strong policy implications for other transitional economies.
Journal: Emerging Markets Finance and Trade
Pages: 393-409
Issue: 2
Volume: 54
Year: 2018
Month: 1
X-DOI: 10.1080/1540496X.2017.1399356
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1399356
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:2:p:393-409




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Ma
Author-X-Name-First: Jun
Author-X-Name-Last: Ma
Title: Guest Editor’s Introduction: Selected Papers from the 2017 Chinese Economists Society, North America Annual Conference
Journal: Emerging Markets Finance and Trade
Pages: 1907-1908
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2019.1583485
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1583485
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:1907-1908




Template-Type: ReDIF-Article 1.0
Author-Name: Shikong (Scott) Luo
Author-X-Name-First: Shikong (Scott)
Author-X-Name-Last: Luo
Title: Credit Misallocation, Endogenous TFP Changes, and Economic Fluctuation in China
Abstract: 
 In 2009, to cope with the economic slowdown China initiated a large-scale stimulus mainly in the form of bank credit that favored the state-owned sector. Data shows that during the policy easing episodes the credits allocated to the private enterprises (PE) are crowded out by the state-owned enterprises (SOE). I then incorporate SOE and PE into a standard dynamic stochastic general equilibrium (DSGE) model without imposing any ex ante asymmetry to the two sectors. The calibration exercise reveals two findings from a static view: (i) while on average the leverage of SOE is close to that of PE, the credit constraint is much smaller for SOE than PE, consistent with the well accepted views; (ii) the credit misallocation exists in the sense that by deleveraging the SOE can lead to aggregate efficiency gains. On the dynamic side, however, numerical simulations indicate that endogenous TFP changes brought about by the asymmetric credit shocks that are consistent with the data are in fact quantitatively unimportant to economic fluctuations.
Journal: Emerging Markets Finance and Trade
Pages: 1909-1925
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1474735
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1474735
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:1909-1925




Template-Type: ReDIF-Article 1.0
Author-Name: Qing Han
Author-X-Name-First: Qing
Author-X-Name-Last: Han
Title: International Real Business Cycles of the Chinese Economy: Asymmetric Preference, Incomplete Financial Markets, and Terms of Trade Shocks
Abstract: 
 This article establishes a dynamic stochastic general equilibrium model of the Chinese open real economy, and aims to give a theoretical account of the empirical stylized facts of economic volatility. Specifically, we investigate two questions: first, what are the stylized facts of the Chinese open economy fluctuation? Is there anything particular that makes it different from other major economies? Second, could theoretical models reasonably explain and fit those facts well? To answer the first question, we use four different filters to extract volatility so as to contribute a robust summary of the stylized facts. As for the second question, we find that asymmetric preference, incomplete financial markets, and terms of trade shocks significantly improve the model’s prediction. Negative international co-movement of investment is the special feature of the Chinese economy, and our model caters for that well.
Journal: Emerging Markets Finance and Trade
Pages: 1926-1953
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1484726
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1484726
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:1926-1953




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Liu
Author-X-Name-First: Yu
Author-X-Name-Last: Liu
Author-Name: Feixue Xie
Author-X-Name-First: Feixue
Author-X-Name-Last: Xie
Author-Name: Zhenning Xu
Author-X-Name-First: Zhenning
Author-X-Name-Last: Xu
Title: Board Business Connections and Firm Profitability: Evidence from China
Abstract: 
 Using a unique dataset on board directors from 2008 to 2016, we document a positive relationship between board business connections and firm profitability for listed firms in China. The positive relationship is robust to various estimation methods and is stronger when the connections are possessed by independent directors or extended to listed firms. Finally, well-connected firms are more likely to have access to external financing and to obtain favorable audit opinions. Overall, our findings signify the importance of connections (guanxi) in business activities in China.
Journal: Emerging Markets Finance and Trade
Pages: 1954-1968
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1498332
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1498332
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:1954-1968




Template-Type: ReDIF-Article 1.0
Author-Name: Fei Liu
Author-X-Name-First: Fei
Author-X-Name-Last: Liu
Author-Name: Jianhua Du
Author-X-Name-First: Jianhua
Author-X-Name-Last: Du
Author-Name: Chao Bian
Author-X-Name-First: Chao
Author-X-Name-Last: Bian
Title: Don’t Touch My Cheese: Short Selling Pressure, Executive Compensation Justification, and Real Activity Earnings Management
Abstract: 
 This article aims at investigating the effects of short selling on a firm’s executive compensation and earnings management. We use a panel data set of Chinese public firms from 2007 to 2014 to test our hypotheses. We find that the level of excess compensation in short-selling firms is greater than that in non-short-selling firms. Our further analysis shows that the executives of the short-selling firms will justify their excess compensation by improving the pay-performance sensitivity, which is accomplished through the real earnings management. Finally, we find that there is more prominent decrease/increase in accrual/real earnings management in short-selling firms.
Journal: Emerging Markets Finance and Trade
Pages: 1969-1990
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1501675
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1501675
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:1969-1990




Template-Type: ReDIF-Article 1.0
Author-Name: Siti Nurazira Mohd Daud
Author-X-Name-First: Siti Nurazira Mohd
Author-X-Name-Last: Daud
Author-Name: Ainulashikin Marzuki
Author-X-Name-First: Ainulashikin
Author-X-Name-Last: Marzuki
Author-Name: Nursilah Ahmad
Author-X-Name-First: Nursilah
Author-X-Name-Last: Ahmad
Author-Name: Zurina Kefeli
Author-X-Name-First: Zurina
Author-X-Name-Last: Kefeli
Title: Financial Vulnerability and Its Determinants: Survey Evidence from Malaysian Households
Abstract: 
 The level of Malaysian household debt remains high, currently among the highest in Asia, raising concerns about its sustainability. This article analyzes the prevalence of financial vulnerability, measured by consumers’ inability to meet their household needs, to cope with unexpected expenses, and to survive in the event of a crisis. Analysis of a dataset of 902 respondents generally suggests that the risk of financial vulnerability in the event of economic or financial shocks is growing. In addition, in an ordered probit model, the significant determinants of financial vulnerability are income level, marital status, age, level of education, and financial behavior in money management. Those who are most financially vulnerable are younger people who have a lower education level and whose financial behavior leads to poor money management.
Journal: Emerging Markets Finance and Trade
Pages: 1991-2003
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1511421
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1511421
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:1991-2003




Template-Type: ReDIF-Article 1.0
Author-Name: Hoang Phong Nguyen
Author-X-Name-First: Hoang Phong
Author-X-Name-Last: Nguyen
Title: Profitability of Vietnamese Banks Under Competitive Pressure
Abstract: 
 The recent banking reforms in Vietnam have had a considerable impact on the earnings of banks. The paper aims to investigate the impact of competition on profitability of Vietnamese banks over the period 2006–2016. The research selects both Lerner index and Adjusted Lerner index to measure competition and rates of return to measure bank profitability. Through the two-step GMM system estimator, the findings show that there is a practical non-linear relationship between competition and banks profit in Vietnam. In addition, the findings show bank profitability is impacted by other determinants and especially by the entry of foreign banks.
Journal: Emerging Markets Finance and Trade
Pages: 2004-2021
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1511977
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1511977
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:2004-2021




Template-Type: ReDIF-Article 1.0
Author-Name: Nobuyoshi Yamori
Author-X-Name-First: Nobuyoshi
Author-X-Name-Last: Yamori
Author-Name: Jianjun Sun
Author-X-Name-First: Jianjun
Author-X-Name-Last: Sun
Title: How Did the Introduction of Deposit Insurance Affect Chinese Banks? An Investigation of Its Wealth Effects
Abstract: 
 The latest introduction of deposit insurance in China gives us a chance to explore the stock market reaction to the major regulatory policy change in banking. Our results show the average abnormal returns of all listed banks in China are significantly negative on the announcement day. It indicates the introduction of deposit insurance has an adverse wealth effect on the banking industry in China. We also find that among bank characteristics such as asset size, z-score, and ROE, only size has a statistically significant positive impact on the abnormal returns of the Chinese listed banks on the announcement day. The results mean the introduction of deposit insurance in China creates a redistribution of wealth from small banks to those with larger size.
Journal: Emerging Markets Finance and Trade
Pages: 2022-2038
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1515736
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1515736
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:2022-2038




Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Anna Czapkiewicz
Author-X-Name-First: Anna
Author-X-Name-Last: Czapkiewicz
Author-Name: Jan Jakub Szczygielski
Author-X-Name-First: Jan Jakub
Author-X-Name-Last: Szczygielski
Author-Name: Vitaly Kaganov
Author-X-Name-First: Vitaly
Author-X-Name-Last: Kaganov
Title: An Application of Factor Pricing Models to the Polish Stock Market
Abstract: 
 We evaluate and compare the performance of four popular factor pricing models: the capital asset pricing model, the Fama and French three-factor model, Carhart’s four-factor model, and the five-factor model of Fama and French. We aim to establish which of these models is most applicable in the Polish stock market. To do so, we employ a battery of tests—cross-sectional regressions, examination of one-way and two-way sorted portfolios, tests of monotonic relationships, and factor redundancy tests—and apply them to a sample of more than 1100 stocks for the years 2000–2018. The results indicate that the four-factor model outperforms the other models; it has the greatest explanatory ability for cross-sectional returns and is therefore well-suited for asset pricing in Poland.
Journal: Emerging Markets Finance and Trade
Pages: 2039-2056
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1517042
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1517042
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:2039-2056




Template-Type: ReDIF-Article 1.0
Author-Name: Abdulrahman Alhassan
Author-X-Name-First: Abdulrahman
Author-X-Name-Last: Alhassan
Title: Oil Price Volatility and Corporate Decisions: Evidence from the GCC Region
Abstract: 
 In this study, I examine the impact of oil price volatility on corporate decisions, namely corporate investments and dividend policy. Using a sample of 356 firms from The Gulf Cooperation Council markets spanning from 2005 to 2015, I show that corporate investments and the likelihood of paying dividends is largely influenced by oil price volatility. The evidence suggests that firms tend to invest less and are more likely to choose not to pay dividends during periods of high oil price volatility. Furthermore, I find that the impact of oil price volatility on corporate decisions tends to be stronger in financially constrained firms, using firm size as a proxy. The findings of this study are robust to controlling for macroeconomic volatility and using alternative measures of oil price volatility and alternative econometric approaches.
Journal: Emerging Markets Finance and Trade
Pages: 2057-2071
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1517330
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1517330
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:2057-2071




Template-Type: ReDIF-Article 1.0
Author-Name: Seojin Lee
Author-X-Name-First: Seojin
Author-X-Name-Last: Lee
Author-Name: Young Min Kim
Author-X-Name-First: Young Min
Author-X-Name-Last: Kim
Title: Inflation Expectations and Risk Premiums: Implications for Korean Exchange Rates
Abstract: 
 Nominal yield can be decomposed into real rates, inflation expectations, and inflation risk premia. We estimate an affine term structure model that allows us to decompose nominal bond yields and use the model to study Korea–US exchange rate movements. Our results show that expected inflation and the inflation risk premium have considerable predictive power for Korea–US exchange rates beyond other yield curve factors and macro-variables. In particular, we find that those two nominal factors play a stronger role after 2005. It implies that not only the level of inflation but also inflation uncertainty should be taken into account for predicting Korea–US exchange rates dynamics (JEL classification: E43, F31, G12).
Journal: Emerging Markets Finance and Trade
Pages: 2072-2085
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1518217
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1518217
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:2072-2085




Template-Type: ReDIF-Article 1.0
Author-Name: Gaston Fornes
Author-X-Name-First: Gaston
Author-X-Name-Last: Fornes
Author-Name: Guillermo Cardoza
Author-X-Name-First: Guillermo
Author-X-Name-Last: Cardoza
Title: Internationalization of Chinese SMEs: The Perception of Disadvantages of Foreignness
Abstract: 
 The paper aims at extending previous research on the specific barriers experienced by emerging markets-based small- and medium-size enterprises (SMEs) expanding internationally and the necessary corporate resources and capabilities to support the first stages of their expansion. Framed within resource-based theory (RBV) and liability of foreignness perspectives, the study focuses on four main areas: limited knowledge of external markets, socio-cultural differences, unfamiliarity with foreign contexts and business practices, and limited local business contacts, reliable representatives, and control systems. The data were collected from more than 500 Chinese SMEs and then analyzed using multivariate and stepwise regressions. The research results show that external factors, both at the domestic level and in host markets, ranging from local regulations and distribution facilities to cultural differences and exchange rates, are perceived to be critical for the performance of business expansion. The research provides deep insights on the barriers faced by SMEs from emerging economies when doing business abroad and especially to discriminate among its different sources of liabilities. The results also suggest that the RBV approach is insufficient to analyze the barriers associated with liabilities of foreignness, newness, and outsidership.
Journal: Emerging Markets Finance and Trade
Pages: 2086-2105
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1518218
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1518218
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:2086-2105




Template-Type: ReDIF-Article 1.0
Author-Name: Alaa Rady
Author-X-Name-First: Alaa
Author-X-Name-Last: Rady
Author-Name: Hakim Meshreki
Author-X-Name-First: Hakim
Author-X-Name-Last: Meshreki
Author-Name: Ayman Ismail
Author-X-Name-First: Ayman
Author-X-Name-Last: Ismail
Author-Name: Laura Núñez
Author-X-Name-First: Laura
Author-X-Name-Last: Núñez
Title: Variations in Valuation Methodologies and the Cost of Capital: Evidence from MENA Countries
Abstract: 
 Does the capital asset pricing model (CAPM) reflects the real risks perceived in doing business in countries in the Middle East and North Africa (MENA)? To explore this question, first, we examine whether the CAPM yields consistent results in calculating the weighted average cost of capital (WACC) as applied by different academic databases, by comparing three different academic databases for 736 listed companies on stock exchanges in the MENA region. Second, we examine whether practitioners use the WACC inputs and calculations consistent with academic databases, through an analysis of 83 companies and in-depth interviews with 8 financial institutions. We also explore adjustments made by practitioners to reflect the real risk they perceive in MENA countries.
Journal: Emerging Markets Finance and Trade
Pages: 2106-2123
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1533462
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1533462
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:2106-2123




Template-Type: ReDIF-Article 1.0
Author-Name: Zhiwei Zhang
Author-X-Name-First: Zhiwei
Author-X-Name-Last: Zhang
Author-Name: Dayong Zhang
Author-X-Name-First: Dayong
Author-X-Name-Last: Zhang
Author-Name: Josef C. Brada
Author-X-Name-First: Josef C.
Author-X-Name-Last: Brada
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Does Bank Competition Alleviate Financing Constraints in China? Further Evidence From Listed Firms
Abstract: 
 This article studies the impact of structural changes in China’s banking sector on the financial constraints on Chinese listed companies’ ability to finance their investments. Using information on the location of bank branches of all Chinese banks, we find that growing competition among banks reduces financing constraints on listed firms. We also show that the emergence of joint-stock commercial banks and regional commercial banks has played a major role in alleviating financing constraints on enterprises, partially due to the weakening of the monopolistic position of state-owned commercial banks. Our findings are based on an analysis of the investment behavior of Chinese listed companies over the period 2000–2015. The results lend support to policies that would further relax regulations on entry into the banking sector.
Journal: Emerging Markets Finance and Trade
Pages: 2124-2145
Issue: 9
Volume: 55
Year: 2019
Month: 7
X-DOI: 10.1080/1540496X.2018.1564905
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1564905
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:9:p:2124-2145




Template-Type: ReDIF-Article 1.0
Author-Name: Meryem Mehri
Author-X-Name-First: Meryem
Author-X-Name-Last: Mehri
Author-Name: M. Kabir Hassan
Author-X-Name-First: M. Kabir
Author-X-Name-Last: Hassan
Author-Name: Kaouther Jouaber-Snoussi
Author-X-Name-First: Kaouther
Author-X-Name-Last: Jouaber-Snoussi
Title: Optimal Carried Interest: Adverse Selection in Islamic and Conventional Venture Capital and Private-Equity Funds
Abstract: 
 In an optimal carried interest model with adverse selection, the optimal profit-loss sharing ratio (PSR) explains how the risk aversion of the two parties can affect their bargaining powers by allowing investors to detect the true risk aversion of fund managers and not their true skills. The higher the management fee, the higher is the PSR. Our simulation exercise shows that when the fund manager is more risk averse than the investor for a higher invested capital and weaker expected net profit, the optimal negotiated profit-sharing ratio will be higher.
Journal: Emerging Markets Finance and Trade
Pages: 1458-1476
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1166424
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1166424
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:7:p:1458-1476




Template-Type: ReDIF-Article 1.0
Author-Name: Khalil Al-Hilu
Author-X-Name-First: Khalil
Author-X-Name-Last: Al-Hilu
Author-Name: A. S. M. Sohel Azad
Author-X-Name-First: A. S. M.
Author-X-Name-Last: Sohel Azad
Author-Name: Abdelaziz Chazi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Chazi
Author-Name: Ashraf Khallaf
Author-X-Name-First: Ashraf
Author-X-Name-Last: Khallaf
Title: Investors’ Behavior in an Emerging, Tax-Free Market
Abstract: 
 We provide empirical evidence on the stock market participants’ behavior in an emerging market, with a tax-free environment. Our results show that United Arab Emirates’ (UAE) investors exhibit overconfidence and home bias, and tend to sell prior winners and buy prior losers. We find that investors rely on familiarity and on their information channels to make decisions. The results indicate that investors are risk averse, especially after the global financial crisis, which has had contagion effect on UAE markets. Investors attribute this effect to the inability to manage systemic crisis and to problems of information asymmetry, insider trading, and lack of good governance during crisis.
Journal: Emerging Markets Finance and Trade
Pages: 1573-1588
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1178110
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1178110
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:7:p:1573-1588




Template-Type: ReDIF-Article 1.0
Author-Name: Jun Huang
Author-X-Name-First: Jun
Author-X-Name-Last: Huang
Author-Name: Zhixin Duan
Author-X-Name-First: Zhixin
Author-X-Name-Last: Duan
Author-Name: Guowei Zhu
Author-X-Name-First: Guowei
Author-X-Name-Last: Zhu
Title: Does Corporate Social Responsibility Affect the Cost of Bank Loans? Evidence from China
Abstract: 
 This article examines the link between corporate social responsibility (CSR) and cost of bank loans (CBL) in China. We find that there exists an inverse U-shape relationship between CSR and CBL. In addition, CSR threshold for state-owned enterprises (SOEs) is higher than for non-SOEs. In particular, CSR threshold for SOEs is lower in regions with high degree of marketization than in regions with low degree of marketization. The findings indicate that value-destroying effect occurs during CSR underinvestment phase, which is different from the overinvestment view. Moreover, the effect of CSR on CBL also depends on contextual factors such as firm ownership and marketization level.
Journal: Emerging Markets Finance and Trade
Pages: 1589-1602
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1179184
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1179184
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:7:p:1589-1602




Template-Type: ReDIF-Article 1.0
Author-Name: Xu Tian
Author-X-Name-First: Xu
Author-X-Name-Last: Tian
Author-Name: Xiaohua Yu
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Yu
Title: The Quality of Imported Fruits in China
Abstract: 
 Fruits are an important part of a healthy diet. This article proposes a simple derivation from the gravity models to analyze the determinants of the quality of imported fruits in China between 1987 and 2012. The results indicate that there is a trade-off between quality and quantity. Price has a significant substitution effect on quality. The quality elasticity with respect to China’s per capita GDP is around 1.96. Rich countries tend to export high-quality fruits to China. Other characteristics of exporting countries such as population size, geographic factors, relative endowment of land, as well as regional trading arrangement also have some impact on the quality of imported fruits in China.
Journal: Emerging Markets Finance and Trade
Pages: 1603-1618
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1179627
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1179627
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:7:p:1603-1618




Template-Type: ReDIF-Article 1.0
Author-Name: Ahmet Çalışkan
Author-X-Name-First: Ahmet
Author-X-Name-Last: Çalışkan
Author-Name: Amira Karimova
Author-X-Name-First: Amira
Author-X-Name-Last: Karimova
Title: Global Liquidity, Current Account Deficit, and Exchange Rate Balance Sheet Effects in Turkey
Abstract: 
 This study investigates the current account deficit (CAD) of Turkey from the perspective of its capital account. We discuss how global liquidity conditions and monetary policies in Turkey have contributed to higher deficits through real exchange rate appreciations. We analyze the impact and consequences of exchange rate (ER) changes on the investments of non-financial firms. In the case of real ER depreciations, we find that the magnitude of the contractionary effect through balance sheets of firms with dollarized liabilities is significantly higher than the expansionary effect through trade competitiveness. We also analyze the “soft-landing” policies aimed at reducing the CAD in Turkey and estimate the rate of economic growth that must be foregone for a percentage reduction in CAD.
Journal: Emerging Markets Finance and Trade
Pages: 1619-1640
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1216837
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216837
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:7:p:1619-1640




Template-Type: ReDIF-Article 1.0
Author-Name: Sarkar Humayun Kabir
Author-X-Name-First: Sarkar Humayun
Author-X-Name-Last: Kabir
Author-Name: A. Mansur M. Masih
Author-X-Name-First: A. Mansur M.
Author-X-Name-Last: Masih
Author-Name: Obiyathulla Ismath Bacha
Author-X-Name-First: Obiyathulla Ismath
Author-X-Name-Last: Bacha
Title: Risk–Return Profiles of Islamic Equities and Commodity Portfolios in Different Market Conditions
Abstract: 
 Motivated by the recent phenomenal growth in Islamic finance and the financialization of commodities, this study makes an initial attempt to investigate the risk–return profiles of optimized portfolios combining (a) Islamic equities with commodities and (b) conventional equities with commodities during the crises and noncrises periods. The findings tend to indicate that Islamic equity–commodity portfolios provide relatively higher diversification benefits than the conventional equity–commodity portfolios during the 1997 Asian Financial Crisis triggered by the financial sector compared to the 2008 global financial crisis triggered by the real housing sector. The findings further suggest that except for a few cases, commodities in general and gold in particular improve diversification benefits.
Journal: Emerging Markets Finance and Trade
Pages: 1477-1500
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1216843
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1216843
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Template-Type: ReDIF-Article 1.0
Author-Name: Houcem Smaoui
Author-X-Name-First: Houcem
Author-X-Name-Last: Smaoui
Author-Name: Mohsin Khawaja
Author-X-Name-First: Mohsin
Author-X-Name-Last: Khawaja
Title: The Determinants of Sukuk Market Development
Abstract: 
 The objective of this article is to empirically investigate the structural, financial, developmental, institutional, and macroeconomic determinants of Sukuk market development for a sample of 13 countries over the period 2001–2013. We employ the Generalized Method of Moments (GMM) procedure to tackle the problems of endogeneity of lagged dependent variable, heteroscedasticity, and serial correlation in the residuals. Our results suggest that a combination of structural, financial, and institutional factors seem to exert a significant effect on Sukuk markets. Indeed, larger economic size, higher proportion of Muslims in the population, better investment profile (IP), and lower corruption are associated with larger Sukuk markets, while higher interest rate spread is negatively related to Sukuk market development.
Journal: Emerging Markets Finance and Trade
Pages: 1501-1518
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1224175
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1224175
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Template-Type: ReDIF-Article 1.0
Author-Name: Júlia Király
Author-X-Name-First: Júlia
Author-X-Name-Last: Király
Author-Name: András Simonovits
Author-X-Name-First: András
Author-X-Name-Last: Simonovits
Title: Mortgages Denominated in Domestic and Foreign Currencies: Simple Models
Abstract: 
 We design a family of simple models of foreign currency-denominated (FXD) loans to compare the cash flows of installments and the paths of outstanding debts denominated in domestic and foreign currencies, respectively. Using them, we draw several conclusions relevant to the recent debates about the FXD loans. We demonstrate the key role played by the uncovered interest rate parity in the comparisons. Moreover, we give a closed-form solution for the trade-off between the currency depreciation and the unilateral FX interest rate increases by the banks. We determine the optimal size of domestic and FXD loans, respectively.
Journal: Emerging Markets Finance and Trade
Pages: 1641-1653
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1232192
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1232192
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:7:p:1641-1653




Template-Type: ReDIF-Article 1.0
Author-Name: Heesun Chung
Author-X-Name-First: Heesun
Author-X-Name-Last: Chung
Author-Name: Sung Ook Park
Author-X-Name-First: Sung Ook
Author-X-Name-Last: Park
Title: Voluntary Adoption of the IFRS and Industry-Level Comparability: Evidence from Korean Unlisted Firms
Abstract: 
 This study examines the role of industry-level comparability with regard to voluntary adoption of the international financial reporting standards (IFRS) by unlisted firms in Korea. Mandatory adoption of the IFRS for listed firms in 2011 inhibits financial statement comparability between listed and unlisted firms. Our empirical findings reveal that unlisted firms in industries with higher ratios of listed firms tend to adopt the IFRS voluntarily. After this adoption, such unlisted firms seem to attract greater investment in the public debt market.
Journal: Emerging Markets Finance and Trade
Pages: 1654-1666
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1247688
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1247688
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Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Ashraful Ferdous Chowdhury
Author-X-Name-First: Mohammad Ashraful Ferdous
Author-X-Name-Last: Chowdhury
Author-Name: Md. Mahmudul Haque
Author-X-Name-First: Md. Mahmudul
Author-X-Name-Last: Haque
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Re-Examining the Determinants of Islamic Bank Performance: New Evidence from Dynamic GMM, Quantile Regression, and Wavelet Coherence Approaches
Abstract: 
 This study is the first attempt to conduct a comparative analysis of the internal and external determinants of the Islamic banks’ profitability in the GCC region applying dynamic GMM, quantile regression, and wavelet coherence approaches. The dynamic GMM tends to indicate that equity financing and operating efficiency and macroeconomic variables such as money supply, and inflation are significantly related to Islamic banks’ performance. The bank-specific variables such as credit risk, equity ratio, and cost-efficiency ratios are not significant at different percentiles. ROA is driven by credit risk, equity ratio, and cost-efficiency ratios (as evidenced in wavelet coherence analysis).
Journal: Emerging Markets Finance and Trade
Pages: 1519-1534
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1250076
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1250076
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Template-Type: ReDIF-Article 1.0
Author-Name: Juan Carlos Reboredo
Author-X-Name-First: Juan Carlos
Author-X-Name-Last: Reboredo
Author-Name: Nader Naifar
Author-X-Name-First: Nader
Author-X-Name-Last: Naifar
Title: Do Islamic Bond (Sukuk) Prices Reflect Financial and Policy Uncertainty? A Quantile Regression Approach
Abstract: 
 We studied the relationship between Islamic bond (sukuk) prices and financial and policy uncertainty conditions using a quantile regression approach. Our empirical results for the period 2010–2014 show that US bond prices had a negative impact and causality effects on sukuk prices, whereas European Monetary Union bond prices only co-moved with sukuk prices. We also show that financial uncertainty had a negative effect that was limited to intermediate sukuk quantiles; moreover, sukuk prices were not affected by economic policy uncertainty or stock market returns. Therefore, although Islamic bonds are distinctive assets, their price dynamics are dependent on other bond-related asset prices and so incorporate financial market uncertainty.
Journal: Emerging Markets Finance and Trade
Pages: 1535-1546
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1256197
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1256197
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Template-Type: ReDIF-Article 1.0
Author-Name: Lina M. Cortés
Author-X-Name-First: Lina M.
Author-X-Name-Last: Cortés
Author-Name: Diego A. Agudelo
Author-X-Name-First: Diego A.
Author-X-Name-Last: Agudelo
Author-Name: Samuel Mongrut
Author-X-Name-First: Samuel
Author-X-Name-Last: Mongrut
Title: Waves and Determinants in Mergers and Acquisitions: The Case of Latin America
Abstract: 
 This article contributes to the current literature on mergers and acquisitions (M&amp;As) by identifying the existence of waves and the determinants of M&amp;A activity in the economies of Argentina, Brazil, Chile, Colombia, Mexico, and Peru. From a sample of 2,391 M&amp;A announcements reported by Thomson One on these countries, applying the methodology proposed by Harford (2005), evidence of M&amp;A waves is found for the periods 1995–2002 and 2003–2010, as reported for other regions in various international studies. After controlling for economic and business environment variables, as well as for profitability and book-to-market variables at the industry level, we find evidence that supports neoclassical theory as a main explanation for M&amp;A activity but not for the misvaluation effect.
Journal: Emerging Markets Finance and Trade
Pages: 1667-1690
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1262254
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1262254
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Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Ashraful Mobin
Author-X-Name-First: Mohammad Ashraful
Author-X-Name-Last: Mobin
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Author-Name: Syed Othman Alhabshi
Author-X-Name-First: Syed Othman
Author-X-Name-Last: Alhabshi
Title: Religion of Islam and Microfinance: Does It Make Any Difference?
Abstract: 
 This study is the initial attempt to investigate first whether microfinance institutions (MFIs) perform differently in the OIC countries where Islam is the prevailing religion and second, how Islamic microfinance institutions are different (if any) from the conventional MFIs. To accomplish these objectives, we employ a dynamic difference and system-generalized method of moments estimators. Our findings tend to indicate that there are significant differences in the way Islamic MFIs performed and operated as compared to that of the conventional MFIs in certain regions. However, in other regions, there were no significant differences in operation and performance between the Islamic MFIs and Conventional MFIs. The study presents important insights for the Islamic microfinance managers and donors as well as the policy makers.
Journal: Emerging Markets Finance and Trade
Pages: 1547-1562
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1268526
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1268526
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Template-Type: ReDIF-Article 1.0
Author-Name: Shahrin Saaid Shaharuddin
Author-X-Name-First: Shahrin Saaid
Author-X-Name-Last: Shaharuddin
Author-Name: Wee-Yeap Lau
Author-X-Name-First: Wee-Yeap
Author-X-Name-Last: Lau
Author-Name: Rubi Ahmad
Author-X-Name-First: Rubi
Author-X-Name-Last: Ahmad
Title: Constructing Fama–French Factors from Style Indices: Evidence from the Islamic Equity Market
Abstract: 
 This study has contributed to the analysis of the Fama–French three-factor model by proving the validity of model using the newly constructed Fama–French factors from Malaysian Islamic stock market. With generalized method of moments and robustness tests, our results compliment earlier studies by comparing the results over two sub-periods, before and after the financial crises and the fall of Lehman Bros. The results of the analysis suggest that the reversal of size effects exists after periods of financial crisis. This is the first attempt to create FF factors and test the model from Islamic equity style indices.
Journal: Emerging Markets Finance and Trade
Pages: 1563-1572
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2016.1278529
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1278529
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Template-Type: ReDIF-Article 1.0
Author-Name:  Abdullah
Author-X-Name-First: 
Author-X-Name-Last: Abdullah
Author-Name: Zhou Jia'nan
Author-X-Name-First: Zhou
Author-X-Name-Last: Jia'nan
Author-Name: Muhammad Hashim Shah
Author-X-Name-First: Muhammad Hashim
Author-X-Name-Last: Shah
Title: Dual-Class Firms: Evidence from IPOs of Chinese Firms Cross-Listed on US Exchanges
Abstract: 
 We compare Chinese single with dual-class firms cross-listed on US exchanges. We find that dual-class firms are larger in terms of assets and sales, possess ownership concentration, and have higher institutional ownership. Chinese firms in IT industry are especially likely to use dual-class structure. We find that, contrary to the literature, dual-class firms underprice 30.42% more and firm underprices less when governance practices are adequate. Insiders need to bear underpricing cost for retaining control. Interestingly, we find that dual-class firms hire more independent directors to show commitment toward shareholder’s rights but control them through CEO Chairman Duality and superior voting rights.
Journal: Emerging Markets Finance and Trade
Pages: 1691-1704
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2017.1307103
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1307103
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:7:p:1691-1704




Template-Type: ReDIF-Article 1.0
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Islamic Finance and Banking
Journal: Emerging Markets Finance and Trade
Pages: 1455-1457
Issue: 7
Volume: 53
Year: 2017
Month: 7
X-DOI: 10.1080/1540496X.2017.1361650
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1361650
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Template-Type: ReDIF-Article 1.0
Author-Name: Wahyoe Soedarmono
Author-X-Name-First: Wahyoe
Author-X-Name-Last: Soedarmono
Author-Name: Amine Tarazi
Author-X-Name-First: Amine
Author-X-Name-Last: Tarazi
Title: Competition, Financial Intermediation, and Riskiness of Banks: Evidence from the Asia-Pacific Region
Abstract: 
 From a sample of commercial banks in the Asia-Pacific region over the 1994–2009 period, this study highlights that banks in less competitive markets exhibit lower loan growth and higher instability. Such instability is further followed by a decline in deposit growth, suggesting that Asian banks are also subject to indirect market discipline mechanisms through bank competition. This study therefore sheds light on the importance of enhancing bank competition to overcome bank risk and strengthen financial intermediation. Likewise, this study advocates the importance of strengthening market discipline to reduce bank riskiness regardless of the degree of competition in the banking industry.
Journal: Emerging Markets Finance and Trade
Pages: 961-974
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1018039
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1018039
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Template-Type: ReDIF-Article 1.0
Author-Name: Chune Young Chung
Author-X-Name-First: Chune Young
Author-X-Name-Last: Chung
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Kainan Wang
Author-X-Name-First: Kainan
Author-X-Name-Last: Wang
Title: Institutional Investor Trading in a Short Investment Horizon: Evidence from the Korean Stock Market
Abstract: 
 We examine the weekly trading activities of institutional investors in the Korean stock market. First, we find that average net trades by institutional investors this week are negatively related to one-week lagged returns, suggesting that they could be contrarian traders. Second, our finding shows that institutional investors’ net trades this week are positively related to the net trades next week, consistent with persistent trading and/or herding behavior. Third, we find that institutional net trades are positively related to the post one-week returns. Finally, our findings are most pronounced in the group of short-term institutional investors.
Journal: Emerging Markets Finance and Trade
Pages: 1002-1012
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1025648
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025648
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:1002-1012




Template-Type: ReDIF-Article 1.0
Author-Name: Hakkon Kim
Author-X-Name-First: Hakkon
Author-X-Name-Last: Kim
Author-Name: Kwangwoo Park
Author-X-Name-First: Kwangwoo
Author-X-Name-Last: Park
Author-Name: Sangjin Song
Author-X-Name-First: Sangjin
Author-X-Name-Last: Song
Title: Banking Market Size Structure and Financial Stability: Evidence from Eight Asian Countries
Abstract: 
 Using commercial bank data from eight major Asian countries, we examine the relationship between the banking market size structure and the stability of financial institutions. We also analyze the effect of bank upsizing on the financial stability. Our results show that a rise in large banks’ market power, accompanying an increase in their market shares, lowers the capital adequacy of small banks. Small banks’ nonperforming loans and the possibility of their bankruptcy also increase as large banks’ market shares rise. We further show that larger banks tend to have lower capital adequacy ratios, liquidity ratios, and distance-to-default ratios. Our study suggests that large banks’ greater market shares are associated with small banks’ financial instability. Overall, these findings are consistent with the notion of the recent banking literature that has important antitrust policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 975-990
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1025653
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025653
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:975-990




Template-Type: ReDIF-Article 1.0
Author-Name: Hesham Merdad
Author-X-Name-First: Hesham
Author-X-Name-Last: Merdad
Author-Name: M. Kabir Hassan
Author-X-Name-First: M. Kabir
Author-X-Name-Last: Hassan
Author-Name: Mohsin Khawaja
Author-X-Name-First: Mohsin
Author-X-Name-Last: Khawaja
Title: Does Faith Matter in Mutual Funds Investing? Evidence from Saudi Arabia
Abstract: 
 This article investigates one of the most vital issues in the Islamic mutual fund literature: Are there any costs associated with investing in Islamic mutual funds? We used a unique sample of 143 Saudi mutual funds and grouped them into portfolios based on their geographical focus, Shariah compliance, and the Saudi market trend (overall, bull, bear, and the crisis period). Findings suggest there is a benefit from adhering to Shariah law in locally-focused Saudi mutual funds. However, there is a cost of this adherence in internationally-focused Saudi mutual funds. Finally, in Arab-focused Saudi mutual funds, there is neither a cost nor a benefit.
Journal: Emerging Markets Finance and Trade
Pages: 938-960
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1025655
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025655
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:938-960




Template-Type: ReDIF-Article 1.0
Author-Name: M. Utku Özmen
Author-X-Name-First: M. Utku
Author-X-Name-Last: Özmen
Author-Name: Orhun Sevinç
Author-X-Name-First: Orhun
Author-X-Name-Last: Sevinç
Title: Price Rigidity in Turkey: Evidence from Micro Data
Abstract: 
 In this study we investigate the duration of consumer price spells and price change patterns for Turkey by employing a comprehensive micro price data covering around 6,000 items over four years. In detail, we analyze how long typical price spell lasts and we investigate the size, frequency, distribution and synchronization of price changes. Compared to advanced economies, a higher frequency of price changes is estimated. Findings suggest substantial heterogeneity among sub-groups in terms of frequency and synchronization indicators. The mixed evidence of both state and time-dependent pricing is also relevant for Turkey, an emerging market economy.
Journal: Emerging Markets Finance and Trade
Pages: 1029-1045
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1047304
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1047304
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Template-Type: ReDIF-Article 1.0
Author-Name: Sabina Silajdzic
Author-X-Name-First: Sabina
Author-X-Name-Last: Silajdzic
Author-Name: Eldin Mehic
Author-X-Name-First: Eldin
Author-X-Name-Last: Mehic
Title: Absorptive Capabilities, FDI, and Economic Growth in Transition Economies
Abstract: 
 This article advances the literature on economic growth and Foreign Direct Investments (FDI) in transition economies by incorporating data on “absorbtive capabilities” of the host economy including R&amp;D indicators and by enhancing the quality of data on FDI. We explore whether countries with accumulated technological and innovative capabilities gain significantly more from FDI. We find that FDI exerts an exogenous positive impact on economic growth, while FDI tends to have a larger impact on economic growth when there is sufficient absorptive capacity and when occurring in technologically more advanced transition economies. The results are robust to different specifications and consideration of endogeneity.
Journal: Emerging Markets Finance and Trade
Pages: 904-922
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1056000
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1056000
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Template-Type: ReDIF-Article 1.0
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Arief Ramayand
Author-X-Name-First: Arief
Author-X-Name-Last: Ramayand
Author-Name: Kwanho Shin
Author-X-Name-First: Kwanho
Author-X-Name-Last: Shin
Title: Capital Flows During Quantitative Easing: Experiences of Developing Countries
Abstract: 
 A potentially important side effect of quantitative easing (QE) by the United States Federal Reserve was the expansion of capital flows into developing countries. As a result, there were widespread concerns that reversing QE might trigger financial instability in those countries. The central objective of our article is to empirically investigate this important issue by (1) examining the effect of QE on capital flows into developing Asia and (2) identifying the most significant factors that influence the effect of a QE taper tantrum on exchange rate instability. We find that capital flows into developing countries during QE were at least comparable to those before the global financial crisis. We also find that capital flows during QE and the symptoms of those capital flows such as high inflation, credit expansion, and the deterioration of the current-account balance accounted for much of the destabilizing effect of a QE taper tantrum. While there is no evidence that macroprudential policies directly reduce the destabilizing effect, they can nevertheless be useful preemptive measures.
Journal: Emerging Markets Finance and Trade
Pages: 886-903
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1103136
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103136
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:886-903




Template-Type: ReDIF-Article 1.0
Author-Name: Minsoo Lee
Author-X-Name-First: Minsoo
Author-X-Name-Last: Lee
Author-Name: Ruben Carlo Asuncion
Author-X-Name-First: Ruben Carlo
Author-X-Name-Last: Asuncion
Author-Name: Jungsuk Kim
Author-X-Name-First: Jungsuk
Author-X-Name-Last: Kim
Title: Effectiveness of Macroprudential Policies in Developing Asia: An Empirical Analysis
Abstract: 
 Before the 2008 global financial crisis, bank monitoring focused primarily on risks to individual institutions, or what are generally referred to as prudential risks. Regulators thus failed to consider that a buildup of macroeconomic risks and vulnerabilities could pose systemic risk to the financial sector. The global credit crisis showed the inadequacy of purely prudential surveillance systems and the need for bank supervisors to better detect the buildup of macroeconomic risks before they can threaten the financial system. This article presents an empirical framework for analyzing how effectively macroprudential policies control credit growth, leverage growth, and housing price appreciation. Two significant findings emerge. Broadly, macroprudential policies can indeed promote financial stability in Asia. More specifically, different types of macroprudential policies are proved effective for different types of macroeconomic risks.
Journal: Emerging Markets Finance and Trade
Pages: 923-937
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1103137
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103137
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:923-937




Template-Type: ReDIF-Article 1.0
Author-Name: Gongyan Yang
Author-X-Name-First: Gongyan
Author-X-Name-Last: Yang
Author-Name: Hongzhong Liu
Author-X-Name-First: Hongzhong
Author-X-Name-Last: Liu
Title: Financial Development, Interest Rate Liberalization, and Macroeconomic Volatility
Abstract: 
 This article examines the relationship between financial development, interest rate liberalization, and macroeconomic volatility in fifty-six emerging and developed economies over the period 1980–2009. We find that financial development plays a significant role in dampening the volatility of macroeconomic growth rate, but up to a limit. The more the interest rate is liberalized, the more likely that financial development can stabilize the economy. Particularly, interest rate liberalization has a more positive influence on emerging and developing countries. Financial development and interest rate liberalization can also alleviate the influence of external shocks. They mutually enhance their functions as economic stabilizers.
Journal: Emerging Markets Finance and Trade
Pages: 991-1001
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1115294
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1115294
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:991-1001




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Chen Hsu
Author-X-Name-First: Chih-Chen
Author-X-Name-Last: Hsu
Author-Name: Andreas Krause
Author-X-Name-First: Andreas
Author-X-Name-Last: Krause
Title: The Optimal Timing of Open Market Stock Repurchases
Abstract: 
 Using a continuous-time real options approach we determine the conditions under which a value-maximizing company would conduct an open market stock repurchase to exploit the undervaluation of shares. We find the optimal timing of such repurchases as well as the optimal amount a company should repurchase and analyze how it depends on market parameters. Obtaining the announcement returns from the authorization of stock repurchases from our model allows us to derive testable empirical implications.
Journal: Emerging Markets Finance and Trade
Pages: 776-785
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1117840
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1117840
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:776-785




Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Yung Chiu
Author-X-Name-First: Shih-Yung
Author-X-Name-Last: Chiu
Author-Name: Hwei-Lin Chuang
Author-X-Name-First: Hwei-Lin
Author-X-Name-Last: Chuang
Title: Employability and Wage Compensation in an Asian Economy: Evidence for Female College Graduates in Taiwan
Abstract: 
 The purpose of this study is to analyze the influence of employability skills on wage compensation for female college graduates in Taiwan. We find that employability skills can explain some variation in wage compensation whether we include conventional human capital variables or not. For example, the career management skills category exhibits a consistent and significant influence on wage compensation and could raise the earnings level by 5–6 percent. In addition, employability skills have more diverse effects on wage compensation across various occupations, while conventional human capital variables are shown to have more consistent effects on wage compensation across occupations.
Journal: Emerging Markets Finance and Trade
Pages: 853-868
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1117844
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1117844
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:853-868




Template-Type: ReDIF-Article 1.0
Author-Name: Tsai-Ling Liao
Author-X-Name-First: Tsai-Ling
Author-X-Name-Last: Liao
Author-Name: Hao-Chang Sung
Author-X-Name-First: Hao-Chang
Author-X-Name-Last: Sung
Author-Name: Min-Teh Yu
Author-X-Name-First: Min-Teh
Author-X-Name-Last: Yu
Title: Advertising and Investor Recognition of Banking Firms: Evidence from Taiwan
Abstract: 
 This study examines the effect of advertising expenditure on strengthening a firm’s intangible capital and firm value by attracting the public on the firm’s visibility and then investigates the role of advertising expenditures on a banking firm’s market value, liquidity, and breadth of ownership. The empirical results find that the advertising has a significantly positive effect on banking firm’s share value, liquidity, and institutional holdings. Consequently, this study concludes that advertising benefits banking firms through increased investor perceptions of such firms. In particular, the findings provide additional support for the home bias phenomena, in which investors prefer to invest in familiar stocks.
Journal: Emerging Markets Finance and Trade
Pages: 812-824
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1117851
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1117851
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:812-824




Template-Type: ReDIF-Article 1.0
Author-Name: Chia-Pin Chen
Author-X-Name-First: Chia-Pin
Author-X-Name-Last: Chen
Author-Name: Ying-Sing Liu
Author-X-Name-First: Ying-Sing
Author-X-Name-Last: Liu
Author-Name: Chih-Wen Hsu
Author-X-Name-First: Chih-Wen
Author-X-Name-Last: Hsu
Title: The Effect of the Alternation in the Ruling Party on Three-Factor Risks and Returns in ETF: The Case of Presidential Elections in Taiwan
Abstract: 
 This study discusses the effect of alternation in the ruling party in presidential elections on three-factor risks and returns of the three main exchange-traded funds (ETFs) in Taiwan, which has an unclearly defined international status and whose citizens have the right to vote directly for the president. We find that after the ruling party has been determined, in the period between Election Day and inauguration day, both the stock market and ETFs show a slight rise in prices. This suggests that most investors are initially optimistic after the election results have been announced. Meanwhile, the reverse book-to-market risk value deteriorates significantly. These results indicate that political uncertainty increases the risk premium of market factors and reverse book-to-market factors for some ETFs.
Journal: Emerging Markets Finance and Trade
Pages: 797-811
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1117867
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1117867
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Template-Type: ReDIF-Article 1.0
Author-Name: Sheng-Chang Peng
Author-X-Name-First: Sheng-Chang
Author-X-Name-Last: Peng
Author-Name: Chu-Shiu Li
Author-X-Name-First: Chu-Shiu
Author-X-Name-Last: Li
Author-Name: Chwen-Chi Liu
Author-X-Name-First: Chwen-Chi
Author-X-Name-Last: Liu
Title: Deregulation, Pricing Strategies, and Claim Behavior in the Taiwan Automobile Insurance Market
Abstract: 
 Stringent pricing regulations have long been in effect in the Taiwan automobile insurance market. In April 2009, a pricing deregulation was adopted, enabling insurers to establish their own auto insurance premium rates. This study examines the effects of deregulation in terms of three hypotheses that we propose pertaining to market shares, loading factors, and last policy month claims. The quantitative analysis results show that pricing deregulation prompts insurers to lower their rates. The effects of deregulation for insurers are determined by not only the decision to deduct premiums and the deduction percentages, but also by policy type.
Journal: Emerging Markets Finance and Trade
Pages: 869-885
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1117869
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1117869
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:869-885




Template-Type: ReDIF-Article 1.0
Author-Name: Chiehwei Hung
Author-X-Name-First: Chiehwei
Author-X-Name-Last: Hung
Author-Name: Jungpin Wu
Author-X-Name-First: Jungpin
Author-X-Name-Last: Wu
Title: The Impact of Position Difference on Employees’ Organizational Commitment After the Merger of Life Insurance Companies
Abstract: 
 We investigate the impacts of job position and survey time period on employee’s organizational commitment of insurance company after the merger. Our results show that both job position and survey time period are significant determinants to employee’s organizational commitment. Results also show that there is no interaction effect between survey time period and job position. For each year, during the survey time period, the mean of organization commitment of agent employees is significantly higher than staff employees. The mean difference of organizational commitment between agent and staff employees shrank year by year during the survey time period.
Journal: Emerging Markets Finance and Trade
Pages: 843-852
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1117870
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1117870
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:843-852




Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Jen Huang
Author-X-Name-First: Chih-Jen
Author-X-Name-Last: Huang
Author-Name: Amy Yueh-Fang Ho
Author-X-Name-First: Amy Yueh-Fang
Author-X-Name-Last: Ho
Author-Name: Hsin-Yu Liang
Author-X-Name-First: Hsin-Yu
Author-X-Name-Last: Liang
Author-Name: Chun-Hung Chiang
Author-X-Name-First: Chun-Hung
Author-X-Name-Last: Chiang
Title: Managers’ Escalation Behavior in Equity Investment Decisions and the Role of Corporate Governance
Abstract: 
 The aim of this study is to investigate the relationship between free cash flows and escalation behavior in the long-term stock buying decisions for the firms listed in Taiwan. The main findings include: (1) Managers tend to exhibit the escalation behavior in the long-term equity investment. (2) There is a positive association between the level of free cash flows and the magnitude of managers’ behavioral escalation. (3) The corporate governance mechanisms play a contributory role in mitigating the escalation behavior. The evidence is robust across subsamples for electronic versus non-electronic industries, growth versus value firms, and loss versus gain firms.
Journal: Emerging Markets Finance and Trade
Pages: 825-842
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1117872
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1117872
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:825-842




Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Hao Lai
Author-X-Name-First: Yi-Hao
Author-X-Name-Last: Lai
Author-Name: Yi-Chiuan Wang
Author-X-Name-First: Yi-Chiuan
Author-X-Name-Last: Wang
Title: Jump-Dependent Model for Optimal Index Futures Hedging in Five Major Asian Stock Markets
Abstract: 
 This article develops a jump-dependent model to capture the dependences between spot and futures returns and their jumps simultaneously, named JD model. We examine hedging performance of the presenting JD model for the futures contracts of Hong Kong, Japan, Korea, Singapore, and Taiwan. The results have shown that the JD model has better out-of-sample performance than the OLS for Korea, Singapore, and Taiwan. Since these three markets have higher jump dependence between spot and futures, we consider that jump dependence plays an important role in hedging performance. The higher jump dependence means spot and futures markets move more closely when unusual news reveals itself and thus futures could hedge the spot more effectively when extreme unusual news arrives.
Journal: Emerging Markets Finance and Trade
Pages: 786-796
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1117875
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1117875
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:786-796




Template-Type: ReDIF-Article 1.0
Author-Name: Shuh-Chyi Doong
Author-X-Name-First: Shuh-Chyi
Author-X-Name-Last: Doong
Author-Name: Sheng-Yung Yang
Author-X-Name-First: Sheng-Yung
Author-X-Name-Last: Yang
Author-Name: Min-Teh Yu
Author-X-Name-First: Min-Teh
Author-X-Name-Last: Yu
Title: Corporate Financial Decisions, Capital Markets, and Employment in Asia-Pacific Economies
Journal: Emerging Markets Finance and Trade
Pages: 775-775
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2015.1117876
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1117876
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:4:p:775-775




Template-Type: ReDIF-Article 1.0
Author-Name: Mine Aksu
Author-X-Name-First: Mine
Author-X-Name-Last: Aksu
Author-Name: Hassan Espahbodi
Author-X-Name-First: Hassan
Author-X-Name-Last: Espahbodi
Title: The Impact of IFRS Adoption and Corporate Governance Principles on Transparency and Disclosure: The Case of Borsa Istanbul
Abstract: 
 This article investigates whether mandatory and voluntary regulation and best governance practices enhance disclosure quality in an emerging market where code law tradition, dominant family ownership, and lax rules and implementation make it less likely for disclosure quality effects to be observed. We show that the Transparency &amp; Disclosure (T&amp;D) scores have improved for a sample of Borsa Istanbul (BIST) firms, and the firms that voluntarily adopted IFRS during 2003 and 2004 have significantly higher scores. However, in 2005, the year IFRS became mandatory, the T&amp;D scores for mandatory and voluntary adopters were no longer significantly different. Multivariate analysis shows that the Corporate Governance (CG) principles and voluntary and mandatory adoptions of IFRS have all had significant positive effects on various T&amp;D scores of the sample firms.
Journal: Emerging Markets Finance and Trade
Pages: 1013-1028
Issue: 4
Volume: 52
Year: 2016
Month: 4
X-DOI: 10.1080/1540496X.2014.998570
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998570
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Template-Type: ReDIF-Article 1.0
Author-Name: Qing He
Author-X-Name-First: Qing
Author-X-Name-Last: He
Author-Name: Oliver M. Rui
Author-X-Name-First: Oliver M.
Author-X-Name-Last: Rui
Author-Name: Chenqi Zhu
Author-X-Name-First: Chenqi
Author-X-Name-Last: Zhu
Title: Bankers in the Boardroom and Firm Performance in China
Abstract: 
 We use a dataset comprising the appointments of commercial bankers as board of directors at Chinese listed firms and find that financially distressed firms are more likely to recruit a commercial banker as a director of the board. The presence of a banker on the board increases access to bank loans, yet many investors react negatively to announcements of such appointments. We also find that such appointments are typically followed by a drop in the appointing firm’s operating performance, and an increase in rent-seeking activities. This suggests that bank directors cannot strengthen corporate governance. Most financial resources are expropriated by corporate insiders.
Journal: Emerging Markets Finance and Trade
Pages: 1850-1875
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2015.1032144
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1032144
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1850-1875




Template-Type: ReDIF-Article 1.0
Author-Name: Abubakr Saeed
Author-X-Name-First: Abubakr
Author-X-Name-Last: Saeed
Author-Name: Yacine Belghitar
Author-X-Name-First: Yacine
Author-X-Name-Last: Belghitar
Author-Name: Ephraim Clark
Author-X-Name-First: Ephraim
Author-X-Name-Last: Clark
Title: Do Political Connections Affect Firm Performance? Evidence from a Developing Country
Abstract: 
 We investigate how politicians serving on the boards of directors influence firm performance. The results show a negative relationship between political connections and firm performance. Specifically, politically connected firms underperform nonconnected firms directors by almost 17 percent and 15 percent based on return on assets and return on equity, respectively. By stratifying the sample duration into two periods based on the political environment, we find that this effect is more pronounced in autocratic as opposed to democratic regimes. Finally, our results also suggest that the performance of connected firms with more growth opportunities is not affected by political connections.
Journal: Emerging Markets Finance and Trade
Pages: 1876-1891
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2015.1041845
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1041845
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1876-1891




Template-Type: ReDIF-Article 1.0
Author-Name: Rubén Chavarín
Author-X-Name-First: Rubén
Author-X-Name-Last: Chavarín
Title: Profitability in Banks Affiliated to a Business Group: Evidence from Mexico
Abstract: 
 In certain institutional contexts, where there are business groups, banks affiliated to these business networks are faced by incentives that might condition their profitability. The objective of this article is to test whether there is a difference between the performance of affiliated banks and that of banks not affiliated to groups, in the context of an emerging market. In particular, a study is made of the case of Mexico in the period 2007–11. Findings suggest that banks affiliated to business groups show less profitability than non-affiliated banks, which may be a consequence of the provision of loans in an internal capital market.
Journal: Emerging Markets Finance and Trade
Pages: 1892-1909
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2015.1044388
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1044388
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1892-1909




Template-Type: ReDIF-Article 1.0
Author-Name: Paweł Baranowski
Author-X-Name-First: Paweł
Author-X-Name-Last: Baranowski
Author-Name: Piotr Krajewski
Author-X-Name-First: Piotr
Author-X-Name-Last: Krajewski
Author-Name: Michał Mackiewicz
Author-X-Name-First: Michał
Author-X-Name-Last: Mackiewicz
Author-Name: Agata Szymańska
Author-X-Name-First: Agata
Author-X-Name-Last: Szymańska
Title: The Effectiveness of Fiscal Policy Over the Business Cycle: A CEE Perspective
Abstract: 
 In this article we analyze the effectiveness of fiscal policy—for a group of four Central and Eastern European countries. The recent literature shows that fiscal multipliers in the developed economies are higher during recession than expansion. So far, similar empirical analyses have been lacking for CEE countries. The results presented in this article show that fiscal multipliers in CEE countries differ with respect to the phase of the business cycle. Based on the SVAR methodology in which we allow for deterministic regime switching, we show that the government spending multipliers are significantly higher when the output gap is negative.
Journal: Emerging Markets Finance and Trade
Pages: 1910-1921
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2015.1046335
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046335
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1910-1921




Template-Type: ReDIF-Article 1.0
Author-Name: Jean Paul Rabanal
Author-X-Name-First: Jean Paul
Author-X-Name-Last: Rabanal
Author-Name: Olga A. Rabanal
Author-X-Name-First: Olga A.
Author-X-Name-Last: Rabanal
Title: The Effect of Chinese Demand and Supply Shocks on Peruvian Exporters
Abstract: 
 We study the impact of Chinese supply and demand shocks on Peruvian firm-product exports. Our results indicate that Chinese competition has a positive and significant effect on Peruvian firm exports, which suggests that firms are either (1) concentrating on markets where competition is tougher, (2) increasing R&amp;D efforts, and/or (3) benefiting from a comparative advantage. The demand from China also has an overall positive and significant effect on Peruvian exports, but negative effect on the subset of data pertaining to minerals. This suggests that Peruvian commodities are being redirected from other markets to China.
Journal: Emerging Markets Finance and Trade
Pages: 1922-1934
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2015.1048155
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1048155
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1922-1934




Template-Type: ReDIF-Article 1.0
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Mampho P. Modise
Author-X-Name-First: Mampho P.
Author-X-Name-Last: Modise
Author-Name: Josine Uwilingiye
Author-X-Name-First: Josine
Author-X-Name-Last: Uwilingiye
Title: Out-of-Sample Equity Premium Predictability in South Africa: Evidence from a Large Number of Predictors
Abstract: 
 This article uses a predictive regression framework to examine the out-of-sample predictability of South Africa’s equity premium, using a host of financial and macroeconomic variables. We employ various methods of forecast combination, bootstrap aggregation (bagging), diffusion index (principal component), and Bayesian regressions to allow for a simultaneous role of the variables under consideration, besides individual predictive regressions. We assess both the statistical and economic significance of the individual predictive regressions, combination methods, bagging, principal components, and Bayesian regressions. Our results show that forecast combination methods and principal component regressions improve the predictability of the equity premium relative to the benchmark autoregressive model of order one (AR[1]). However, the Bayesian predictive regressions are found to be the standout performers with the models outperforming the individual regressions, forecast combination methods, bagging and principal component regressions, both in terms of statistical (forecasting) and economic (utility) gains.
Journal: Emerging Markets Finance and Trade
Pages: 1935-1955
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2015.1058075
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1058075
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1935-1955




Template-Type: ReDIF-Article 1.0
Author-Name: Ting Zhou
Author-X-Name-First: Ting
Author-X-Name-Last: Zhou
Author-Name: Jun Xie
Author-X-Name-First: Jun
Author-X-Name-Last: Xie
Title: Ultimate Ownership and Adjustment Speed Toward Target Capital Structures: Evidence from China
Abstract: 
 We investigate whether ultimate ownership affects firms’ adjustment speed toward target capital structures for Chinese publicly listed companies over the period 1999–2009. We divide our sample into state-owned enterprises (SOEs) and non-SOEs according to their ultimate ownership. We find that SOEs have higher leverage ratios and slower adjustment speeds toward target capital structures. Our results are consistent with the trade-off theory, implying that the political resources of SOEs can lead to a higher persistence and slower leverage adjustment speeds in comparison to non-SOEs. Finally, our results also raise a question: Why do Chinese companies adjust their capital structure so fast?
Journal: Emerging Markets Finance and Trade
Pages: 1956-1965
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2015.1062311
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1062311
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1956-1965




Template-Type: ReDIF-Article 1.0
Author-Name: Stanisław Urbański
Author-X-Name-First: Stanisław
Author-X-Name-Last: Urbański
Author-Name: Maciej Winiarz
Author-X-Name-First: Maciej
Author-X-Name-Last: Winiarz
Author-Name: Kacper Urbański
Author-X-Name-First: Kacper
Author-X-Name-Last: Urbański
Title: Long-Run Performance Persistence of Investment Funds
Abstract: 
 This article analyzes the long-run persistence of returns and risk of investment in the assets of money, bound, and stock funds recorded on the Polish market in 2000–12. Portfolios of safe, hybrid, and stock classes are formed on the basis of tested funds. The persistence of returns and the Sharpe ratio are investigated in rolled five-year sub-periods, with one year step. Also, persistence in performance is assessed using classic CAPM and Fama and French models, which allow for evaluating management skills. We find the occurrence of the Sharpe ratio long-run persistence of money and bound funds. The study does not explicitly show long-run persistence in hybrid and stock fund portfolios. The CAPM and Fama and French models simulations of returns on stock and hybrid funds indicate varying management skills during five-year periods.
Journal: Emerging Markets Finance and Trade
Pages: 1813-1831
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2015.1069134
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1069134
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1813-1831




Template-Type: ReDIF-Article 1.0
Author-Name: Buerhan Saiti
Author-X-Name-First: Buerhan
Author-X-Name-Last: Saiti
Author-Name: Obiyathulla Ismath Bacha
Author-X-Name-First: Obiyathulla Ismath
Author-X-Name-Last: Bacha
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Testing the Conventional and Islamic Financial Market Contagion: Evidence from Wavelet Analysis
Abstract: 
 This study is a first attempt at testing the extent of contagion for conventional and Shari’ah-compliant stock indices. We examine the period surrounding the U.S. subprime crisis of 2007–9 and the Lehman Brothers collapse of 2008 to determine the relative extent of contagion. We find no clear evidence of contagion during the subprime crisis however, during the Lehman collapse most conventional indices showed contagion. Interestingly, the Shari’ah-compliant indices mostly do not show evidence of contagion. Collectively, our results have important implications for fund managers in terms of asset allocation risk and policymakers seeking an optimal policy response to crises.
Journal: Emerging Markets Finance and Trade
Pages: 1832-1849
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2015.1087784
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1087784
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1832-1849




Template-Type: ReDIF-Article 1.0
Author-Name: Shuiqing Yang
Author-X-Name-First: Shuiqing
Author-X-Name-Last: Yang
Title: Capital Flows, Sterilization, and Macro-Prudential Policy in China
Abstract: 
 This article estimates the sterilization coefficients of the subcomponents of reserves in China over time with recursive regressions. The results suggest that People’s Bank of China tended to sterilize the more fluctuating components of capital inflows: FDI inflows received little attention, while non-FDI and current account had been heavily sterilized. After including the subcomponents of non-FDI into the empirical model, the results demonstrate that issuing bonds was successful in sterilization intervention till 2007Q2, while the effectiveness of sterilization policies was limited since then, resulting in an increase in monetary supply. The excessive money did not flow into the circulation and had limited effects on stimulating the real economy.
Journal: Emerging Markets Finance and Trade
Pages: 1797-1812
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2016.1148026
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1148026
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:8:p:1797-1812




Template-Type: ReDIF-Article 1.0
Author-Name: Daichun Yi
Author-X-Name-First: Daichun
Author-X-Name-Last: Yi
Author-Name: Yuhong Huang
Author-X-Name-First: Yuhong
Author-X-Name-Last: Huang
Author-Name: Gang-Zhi Fan
Author-X-Name-First: Gang-Zhi
Author-X-Name-Last: Fan
Title: Social Capital and Housing Affordability: Evidence from China
Abstract: 
 This article attempts to examine the problem of housing affordability in China based on a set of household-level survey data. In contrast to the previous studies, our study focuses on the important implication of social capital for households’ house-purchasing decisions in this country. Our results show that household expenditures on the relations with parents and other relatives are important determinants for homeownership in China. We also find evidence that house-purchasing decisions are significantly affected by relatives-related variables such as number of immediate relatives in the same city, distance from parents, educational years of family head’s father, and whether parents are alive. Our research helps shed new light on the high homeownership rates in urban China.
Journal: Emerging Markets Finance and Trade
Pages: 1728-1743
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2016.1181856
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1181856
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Template-Type: ReDIF-Article 1.0
Author-Name: Qingjiang Ju
Author-X-Name-First: Qingjiang
Author-X-Name-Last: Ju
Author-Name: Jinlan Ni
Author-X-Name-First: Jinlan
Author-X-Name-Last: Ni
Author-Name: Debing Ni
Author-X-Name-First: Debing
Author-X-Name-Last: Ni
Author-Name: Yu Wu
Author-X-Name-First: Yu
Author-X-Name-Last: Wu
Title: Land Acquisition, Labor Allocation, and Income Growth of Farm Households
Abstract: 
 This article investigates how land acquisition during urbanization affects labor allocation decisions of farm households in China. We develop an agricultural household model by including land acquisition to examine its impacts on nonfarm labor participation and income. Two data sets (self-designed household surveys at Xingwen County in 2012 and the China Household Finance Survey (CHFS) data covering 29 provinces in 2013) are adopted for empirical analysis. The results find that land reduction has significantly positive effects on the probability and the share of family nonfarm labor allocation from both data sets. We also find that land acquisition increases the household income of the land acquisition group in CHFS data.
Journal: Emerging Markets Finance and Trade
Pages: 1744-1761
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2016.1181860
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1181860
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Template-Type: ReDIF-Article 1.0
Author-Name: Jingjing Ye
Author-X-Name-First: Jingjing
Author-X-Name-Last: Ye
Author-Name: Xiaokai Wu
Author-X-Name-First: Xiaokai
Author-X-Name-Last: Wu
Author-Name: Jijun Tan
Author-X-Name-First: Jijun
Author-X-Name-Last: Tan
Title: Migrate to Skilled Cities: Human Capital Agglomeration and Urban-to-Urban Migration in China
Abstract: 
 Despite their increasing size and importance in the regional economy, urban-to-urban migrants in China have received little attention in the literature and are often grouped with rural-to-urban migrants. We attempt to fill this gap by quantifying the patterns and determinants of urban-to-urban migration in China. We first document the sharply diverging spatial distribution of urban migrants and the widening gap in regional ability to attract human capital. Using a skill-based directional migration model, we also find strong preference for destinations with high concentrations of human capital among urban migrants, particularly for provinces in eastern China.
Journal: Emerging Markets Finance and Trade
Pages: 1762-1774
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2016.1181875
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1181875
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Template-Type: ReDIF-Article 1.0
Author-Name: Dejing Kong
Author-X-Name-First: Dejing
Author-X-Name-Last: Kong
Author-Name: David Dickinson
Author-X-Name-First: David
Author-X-Name-Last: Dickinson
Title: Investigating the Impact of Income on Savings Using a Chinese Household Level Dataset
Abstract: 
 This article uses the China Household Financial Survey (CHFS) to examine the savings behavior of Chinese Households. Using a standard cross-sectional empirical approach to modeling permanent and transitory income, we show that one way of explaining the relative high savings rate in China is by recognizing that in fast growing economies, individuals may have higher transitory income from which they save a large proportion. The estimation also contains a range of household specific variables which can be used to understand the impact of socio-economic characteristics such as urban vs rural dwelling, age, and the educational level.
Journal: Emerging Markets Finance and Trade
Pages: 1775-1796
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2016.1181889
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1181889
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Template-Type: ReDIF-Article 1.0
Author-Name: Dayong Zhang
Author-X-Name-First: Dayong
Author-X-Name-Last: Zhang
Title: Understanding China from a Household’s Perspective: Studies Based on the China Household Finance Survey (CHFS)
Journal: Emerging Markets Finance and Trade
Pages: 1725-1727
Issue: 8
Volume: 52
Year: 2016
Month: 8
X-DOI: 10.1080/1540496X.2016.1189810
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1189810
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Template-Type: ReDIF-Article 1.0
Author-Name: Yaling Lin
Author-X-Name-First: Yaling
Author-X-Name-Last: Lin
Title: Does Greater Market Transparency Reduce Information Asymmetry?
Abstract: 
 This research aims to determine whether the degree of asymmetric information decreases with greater pre-trade transparency in the Taiwan stock market. We used the probability of informed trading based on the Markov regime-switching model in an order-driven auction market to investigate this topic. Information asymmetry showed no conspicuous variations with greater transparency. However, after further grouping, the empirical results revealed that increased transparency facilitated a decrease in information asymmetry in the sub-samples, which originally exhibited greater information asymmetry. In addition, the intraday patterns of probability of informed trading revealed that greater transparency facilitates decreased market information asymmetry after opening.
Journal: Emerging Markets Finance and Trade
Pages: 2565-2584
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2015.1087786
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1087786
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Template-Type: ReDIF-Article 1.0
Author-Name: Keith Ord
Author-X-Name-First: Keith
Author-X-Name-Last: Ord
Author-Name: David A. Walker
Author-X-Name-First: David A.
Author-X-Name-Last: Walker
Author-Name: Christina R. Hunt
Author-X-Name-First: Christina R.
Author-X-Name-Last: Hunt
Title: Privatization and Fiscal Deficits in European Emerging Markets
Abstract: 
 Privatization and fiscal deficits have been linked theoretically as emerging market countries completed transitions from command to market-based economies. This study examines the joint relationships among relative fiscal deficits, privatization, and exogenous factors for twenty-five Central and Eastern European emerging market countries. Pooled regression models suggest that increased privatization does not reduce fiscal deficits, but fiscal deficits increase as privatization increases over time. These effects are dependent upon the set of countries considered and the privatization measure employed. There is limited support for the hypothesis that privatization is increased when fiscal deficits decline for the nine early privatizers.
Journal: Emerging Markets Finance and Trade
Pages: 2585-2594
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2015.1087788
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1087788
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Template-Type: ReDIF-Article 1.0
Author-Name: Narcisa Kadlcakova
Author-X-Name-First: Narcisa
Author-X-Name-Last: Kadlcakova
Author-Name: Lubos Komarek
Author-X-Name-First: Lubos
Author-X-Name-Last: Komarek
Author-Name: Zlatuse Komarkova
Author-X-Name-First: Zlatuse
Author-X-Name-Last: Komarkova
Author-Name: Michal Hlavacek
Author-X-Name-First: Michal
Author-X-Name-Last: Hlavacek
Title: Identification of Asset Price Misalignments on Financial Markets With Extreme Value Theory
Abstract: 
 This article examines the potential for concurrence of crises and asset price misalignments from equilibrium in the foreign exchange, stock, and government bond markets of three Central European countries and the euro area. Concurrence is understood as the joint occurrence of extreme asset changes and is assessed with a measure of asymptotic tail dependence in the distributions studied. The results reveal a significant potential for the co-alignment of crises in the examined markets. Evidence for co-movements in misalignments from equilibrium is found among all examined stock and exchange rate markets; although it is not apparent in some government bond markets.
Journal: Emerging Markets Finance and Trade
Pages: 2595-2609
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2015.1087792
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1087792
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Template-Type: ReDIF-Article 1.0
Author-Name: Claudio M. P. da Cunha
Author-X-Name-First: Claudio M. P.
Author-X-Name-Last: da Cunha
Author-Name: Patricia M. Bortolon
Author-X-Name-First: Patricia M.
Author-X-Name-Last: Bortolon
Title: The Role of Ownership Concentration and Debt in Downturns: Evidence from Brazilian Firms During the 2008–9 Financial Crisis
Abstract: 
 This article aims to reconcile conflicting literature about the role of ownership concentration in the responsiveness of stock prices to macroeconomic shocks. We modified a previous theoretical model, adding leverage as a disciplining device. An important implication of our model is that only in deep crises ownership concentration plays a role in attenuating the effect of macroeconomic shock on firm value. We test this hypothesis using a sample of Brazilian firms during distinct phases of the 2008–9 crisis. Our empirical analyzes shows that only in the most critical part of the crisis, ownership concentration reduced the negative effects of the financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 2610-2623
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2015.1087793
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1087793
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Template-Type: ReDIF-Article 1.0
Author-Name: Jan Hájek
Author-X-Name-First: Jan
Author-X-Name-Last: Hájek
Author-Name: Roman Horváth
Author-X-Name-First: Roman
Author-X-Name-Last: Horváth
Title: Exchange Rate Pass-Through in an Emerging Market: The Case of the Czech Republic
Abstract: 
 We examine exchange rate pass-through, or how domestic prices respond to exchange rate shocks, in the Czech Republic from 1998 to 2013 by employing vector autoregression models. Using the aggregate consumer price index and its subcomponents, we find that the peak response occurs between nine and thirteen months after the exchange rate shock. The average pass-through at the monetary policy horizon is approximately 20 percent at the aggregate level. Regarding the subcomponents, the degree of pass-through is greatest for food prices.
Journal: Emerging Markets Finance and Trade
Pages: 2624-2635
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2015.1090823
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1090823
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Template-Type: ReDIF-Article 1.0
Author-Name: Ruohan Wu
Author-X-Name-First: Ruohan
Author-X-Name-Last: Wu
Author-Name: Huimin Shi
Author-X-Name-First: Huimin
Author-X-Name-Last: Shi
Title: Trade Liberalization and Exports Promotion: A Dynamic and Heterogeneous Analysis Under the Case of Chile
Abstract: 
 We develop a dynamic and heterogeneous firm model that embodies a firm’s joint decisions to export and innovate and allows both decisions to affect the firm’s production growth. We then calibrate the model with data obtained from Chilean manufacturing plants between 2005 and 2007 and simulate the impact of trade liberalization under different combinations of industry age and speed of trade liberalization. On the one hand, a quickly implemented trade liberalization policy significantly increases the exports intensity of a young industry newly opening up to the world. The increase in exports intensity is greater with quicker implementation of trade liberalization. On the other hand, trade liberalization for a mature industry does not lead to a significant impact on exports intensity.
Journal: Emerging Markets Finance and Trade
Pages: 2636-2645
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2015.1103131
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103131
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Template-Type: ReDIF-Article 1.0
Author-Name: Aslıhan Atabek Demirhan
Author-X-Name-First: Aslıhan Atabek
Author-X-Name-Last: Demirhan
Title: Export Behavior of the Turkish Manufacturing Firms
Abstract: 
 This article explores the export behavior of Turkish manufacturing firms for the 1989–2010 period. A descriptive analysis and estimated export premiums suggest the superiority of exporters over non-exporters. For Turkey, both self-selection and learning effects are critical. Moreover, previous export experience plays a crucial role in the export propensity of the firms, which implies the existence of high export market entry costs. The existence of sunk costs, self-selection of exporters, and learning by exporting of Turkish manufacturing firms implies that the optimal policy for sustainable growth via exports should include microeconomic reforms that increase productivity and the size of the firms as well as regulations that remove the costs and barriers of exporting.
Journal: Emerging Markets Finance and Trade
Pages: 2646-2668
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2015.1103139
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103139
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Template-Type: ReDIF-Article 1.0
Author-Name: Esra Ceviker Gurakar
Author-X-Name-First: Esra Ceviker
Author-X-Name-Last: Gurakar
Author-Name: Bedri Kamil Onur Tas
Author-X-Name-First: Bedri Kamil Onur
Author-X-Name-Last: Tas
Title: Does Public E-Procurement Deliver What It Promises? Empirical Evidence from Turkey
Abstract: 
 This article empirically investigates the economic effects of public e-procurement (PEP) adoption. We use a unique data set provided by the Public Procurement Authority of Turkey that covers all government procurement auctions for the years 2004–12, 588,454 auctions. We conclude that PEP adoption had adverse effects. The number of firms submitting bids in procurement auctions is significantly lower after PEP adoption. The procurement costs are significantly higher after PEP. These results suggest that policy makers should eliminate barriers to e-procurement adoption to gather the intended results of PEP.
Journal: Emerging Markets Finance and Trade
Pages: 2669-2684
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2015.1105603
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1105603
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Template-Type: ReDIF-Article 1.0
Author-Name: Ju Hyun Pyun
Author-X-Name-First: Ju Hyun
Author-X-Name-Last: Pyun
Title: Net Equity and Debt Flows to Emerging Market and Developing Economies in the Post-Crisis Era
Abstract: 
 We investigate the determinants of net equity and debt flows into 60 emerging and developing countries during 1986–2012, with a special focus on the period following the onset of the global financial crisis (GFC). Our results controlling for endogeneity show that net equity flows to emerging markets were mostly influenced by global risk factors, while net debt flows were affected by country-specific factors. We further distinguish the factors that were more pronounced in determining net portfolio flows to emerging markets since the GFC. The US real interest rate had significant spillover effects on net equity flows after the GFC. An increase in country’s domestic credit attracted net debt inflows before the GFC, while it was associated with net equity outflows after the GFC. We also find that capital controls moderated net debt flows since the GFC.
Journal: Emerging Markets Finance and Trade
Pages: 2473-2494
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2016.1162150
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1162150
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Template-Type: ReDIF-Article 1.0
Author-Name: Teng Yuan Cheng
Author-X-Name-First: Teng Yuan
Author-X-Name-Last: Cheng
Author-Name: Chao Hsien Lin
Author-X-Name-First: Chao Hsien
Author-X-Name-Last: Lin
Author-Name: Hungchih Li
Author-X-Name-First: Hungchih
Author-X-Name-Last: Li
Author-Name: Syouching Lai
Author-X-Name-First: Syouching
Author-X-Name-Last: Lai
Author-Name: Kerry A. Watkins
Author-X-Name-First: Kerry A.
Author-X-Name-Last: Watkins
Title: Day Trader Behavior and Performance: Evidence from Taiwan Futures Market
Abstract: 
 By using a unique data from the Taiwan futures market to identify each trader’s trading records and focusing on the high-frequency day traders who trade at least 90 days over the sample year, this study closely examines their behaviors and performance. Day traders’ performances are “risk-adjusted” and analyzed to identify behavioral biases and the resulting impact on performance. There is no evidence found that trading too much is detrimental to investment performance. The high-frequency day traders are more aware of the danger of behavioral biases and are as a result less prone to the disposition effect. Contrary to expectations, day traders in my study are shown to be non-loss averse. Most of our sample except for the highest performance quintile follow a momentum strategy.
Journal: Emerging Markets Finance and Trade
Pages: 2495-2511
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2016.1172205
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1172205
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Template-Type: ReDIF-Article 1.0
Author-Name: Nurhan Davutyan
Author-X-Name-First: Nurhan
Author-X-Name-Last: Davutyan
Author-Name: Belma Öztürkkal
Author-X-Name-First: Belma
Author-X-Name-Last: Öztürkkal
Title: Determinants of Saving-Borrowing Decisions and Financial Inclusion in a High Middle Income Country: The Turkish Case
Abstract: 
 We use a representative survey of the Turkish household sector and investigate factors impinging on saving-borrowing behavior. We run four probit regressions to elucidate (i) the saving decision, (ii) asset choice or portfolio composition for those who save, (iii) the bank loan decision and lastly (iv) the formal versus informal borrowing decision. We find income, education, marital status and region within country strongly correlate with those decisions. We offer some insights regarding the influence of variables like rural to urban migrant status and religious belief on saving and borrowing decisions. We discuss the long-term implications of our findings on the Turkish household savings performance.
Journal: Emerging Markets Finance and Trade
Pages: 2512-2529
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2016.1187596
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1187596
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Template-Type: ReDIF-Article 1.0
Author-Name: Byungjin Kwak
Author-X-Name-First: Byungjin
Author-X-Name-Last: Kwak
Author-Name: Kyoungwon Mo
Author-X-Name-First: Kyoungwon
Author-X-Name-Last: Mo
Author-Name: Nayoung Yoon
Author-X-Name-First: Nayoung
Author-X-Name-Last: Yoon
Title: Manager Retention and Post-Bankruptcy Performance: Evidence from South Korea
Abstract: 
 This study uses a sample of bankrupt firms in South Korea to reexamine the effect of manager retention on a firm’s post-bankruptcy performance, with a particular focus on the attributes of retained managers. Prior studies did not clarify whether a lack of ability of the retained manager or their self-serving behavior contributes more to a firm’s poor post-bankruptcy performance. Our results show that firms that retain their pre-bankruptcy managers are more likely to experience poor post-bankruptcy firm performance than those that replace incumbent managers, possibly because of the lack of ability of the retained managers rather than their self-serving behavior.
Journal: Emerging Markets Finance and Trade
Pages: 2530-2545
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2016.1196588
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1196588
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Template-Type: ReDIF-Article 1.0
Author-Name: Byoung-jin Kim
Author-X-Name-First: Byoung-jin
Author-X-Name-Last: Kim
Author-Name: Jin-young Jung
Author-X-Name-First: Jin-young
Author-X-Name-Last: Jung
Title: Cross-Border M&amp;As Involving an Emerging Market
Abstract: 
 This study analyzes Korean firms’ motives for cross-border M&amp;As, Asia’s representative emerging capital market, from the perspective of financial attributes, and defines the effects of group attributes of cross-border M&amp;As on the wealth of acquiring firms’ shareholders. As for the group attributes of cross-border M&amp;As, shareholders of small firms with high ROA do not like cross-border M&amp;As, because the shareholders of small acquiring firms with sufficient internal growth factors are reluctant to transfer their present wealth to shareholders of foreign target firms. We also verify that the diversification effect with regard to cross-border M&amp;As is accompanied by the diversification discount, but that firms with ample internal funds due to their high ROA like entering into new industries through cross-border M&amp;As. Lastly, when target companies are listed in countries with highly uncertain GDP growth rates, acquiring firms’ value decreased.
Journal: Emerging Markets Finance and Trade
Pages: 2454-2472
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2016.1207167
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1207167
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:11:p:2454-2472




Template-Type: ReDIF-Article 1.0
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Kui Liu
Author-X-Name-First: Kui
Author-X-Name-Last: Liu
Title: How Efficient Is China’s Heavy Industry? A Perspective of Input–Output Analysis
Abstract: 
 Heavy industry accounts for nearly 65% of the energy consumption and over 60% of the electricity consumption of China. Under the framework of real savings and green GDP, the huge energy consumption and carbon emissions will bring in huge natural resource losses, and then affect the total factor productivity (TFP) seriously. When taking the input–output relationship into consideration, the natural resource losses of heavy industry will decrease significantly. As the upstream of the industrial chain, heavy industry offered a large number of subsidies to the downstream industries by providing energy, raw materials, and taking on carbon emissions. This article verified the transfer of natural resource losses among industries, and estimated the real TFP of heavy industry from input–output and traditional perspective, respectively. The results showed that there was an increasing trend in the growth rate of heavy industry’s TFP in the perspective of input–output.
Journal: Emerging Markets Finance and Trade
Pages: 2546-2564
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2016.1224177
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1224177
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Template-Type: ReDIF-Article 1.0
Author-Name: Jangkoo Kang
Author-X-Name-First: Jangkoo
Author-X-Name-Last: Kang
Author-Name: Chang-Hyun Yun
Author-X-Name-First: Chang-Hyun
Author-X-Name-Last: Yun
Title: Challenges and Opportunities in Emerging Financial Markets
Journal: Emerging Markets Finance and Trade
Pages: 2451-2453
Issue: 11
Volume: 52
Year: 2016
Month: 11
X-DOI: 10.1080/1540496X.2016.1227654
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1227654
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Template-Type: ReDIF-Article 1.0
Author-Name: Yum Kwan
Author-X-Name-First: Yum
Author-X-Name-Last: Kwan
Author-Name: Jinyue Dong
Author-X-Name-First: Jinyue
Author-X-Name-Last: Dong
Title: Stock Price Dynamics of China: What Do the Asset Markets Tell Us About the Chinese Utility Function?
Abstract: 
 We develop and estimate several variants of consumption-based capital asset pricing models (CCAPMs) and compare their capacity in explaining the stock price dynamics of China. We conclude that adding housing to CCAPM and habit formation models yields no significant benefit in predicting stock returns, but adding housing to recursive utility models does improve predictions. Furthermore, the labor income model cannot help reduce pricing errors, but the collateral constraint model outperforms almost all other models. Some models cannot even defeat the simple autoregressive model in stock return prediction. Overall, the H-recursive utility model has the best prediction performance. Directions for future research are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 77-108
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S305
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S305
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:77-108




Template-Type: ReDIF-Article 1.0
Author-Name: Edgardo Cayon
Author-X-Name-First: Edgardo
Author-X-Name-Last: Cayon
Author-Name: Susan Thorp
Author-X-Name-First: Susan
Author-X-Name-Last: Thorp
Title: Financial Autarchy as Contagion Prevention: The Case of Colombian Pension Funds
Abstract: 
 Regulations restricting investment by pension funds in high-risk and foreign assets may quarantine member accounts from contagious transmissions during financial crises. We analyze contagion from U.S. equity markets to emerging market autarchic assets (Colombian private pension funds) during the recent financial crises. We test for volatility contagion between financial asset returns using a multivariate GARCH (M-GARCH) framework, where the S&amp;P 500 is the source of contagion to the autarchic asset. We find no evidence of volatility contagion during the 2007-9 crises, indicating protection due to regulated portfolio restrictions. However, there is evidence of contagion during the recent sovereign debt crisis.
Journal: Emerging Markets Finance and Trade
Pages: 122-139
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S307
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S307
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:122-139




Template-Type: ReDIF-Article 1.0
Author-Name: Kaiguo Zhou
Author-X-Name-First: Kaiguo
Author-X-Name-Last: Zhou
Title: The Effect of Income Diversification on Bank Risk: Evidence from China
Abstract: 
 Using the panel data for sixty-two main Chinese commercial banks during 1997-2012, this paper studies the effect of income diversification on bank risk. According to portfolio theory, the overall risk of banks is decomposed in order to further investigate the contribution of noninterest income. The empirical results show that there is no significant relationship between income diversification and bank risk. The reduction of overall risk is attributed to the significant reduction in the risk of interest income business. While the proportion of noninterest income increases, its volatility also increases, and thus its contribution to overall risk increases. Accordingly, some policy suggestions on the future development of income diversification strategy are proposed.
Journal: Emerging Markets Finance and Trade
Pages: 201-213
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S312
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S312
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:201-213




Template-Type: ReDIF-Article 1.0
Author-Name: Danglun Luo
Author-X-Name-First: Danglun
Author-X-Name-Last: Luo
Author-Name: Qianwei Ying
Author-X-Name-First: Qianwei
Author-X-Name-Last: Ying
Title: Political Connections and Bank Lines of Credit
Abstract: 
 We analyze the companies listed on stock exchanges in China from 2004 to 2009 and discover that firms' political connections help them obtain bank lines of credit, especially from state-owned banks. The results also show that political connections have a stronger effect on the acquisition of bank lines of credit for firms that face more financing constraints, are not owned by the state, or are located in regions with intensive government intervention. This paper deepens the field's understanding not only of bank lines of credit but also of the role that political connections play in firms' financing activities.
Journal: Emerging Markets Finance and Trade
Pages: 5-21
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S301
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S301
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:5-21




Template-Type: ReDIF-Article 1.0
Author-Name: Sheraz Ahmed
Author-X-Name-First: Sheraz
Author-X-Name-Last: Ahmed
Author-Name: Syed Hussain
Author-X-Name-First: Syed
Author-X-Name-Last: Hussain
Title: The Financial Cost of Rivalry: A Tale of Two South Asia Neighbors
Abstract: 
 We examine the effect of bilateral political and military news on the returns and volatility of the stock markets of India and Pakistan. Our results show that the volatility of both stock markets shows a significant reaction on the arrival of news related to military aggression in a reciprocal way. Moreover, while the volatility of India's stock market seems to show a subdued response to bilateral political news, Pakistan's stock market appears to be sensitive to both political and military news originating from either country. The relatively stronger effect of military events can be attributed to a higher financial cost of confrontation between the two countries.
Journal: Emerging Markets Finance and Trade
Pages: 35-60
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S303
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S303
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:35-60




Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Batten
Author-X-Name-First: Jonathan
Author-X-Name-Last: Batten
Author-Name: Peter Szilagyi
Author-X-Name-First: Peter
Author-X-Name-Last: Szilagyi
Author-Name: Michael Wong
Author-X-Name-First: Michael
Author-X-Name-Last: Wong
Title: Stock Market Spread Trading: Argentina and Brazil Stock Indexes
Abstract: 
 Brazil has the largest stock market in South America; Argentina has one of the smallest. We investigate the spread relationship between these two markets, measured as the ratio of Brazil's Bovespa index to Argentina's Merval index. Using rescaled range analysis, we identify the presence of a time-varying fractal structure in this ratio. When a Hurst-based trading rule is applied, we find that episodes of fractality may be exploited by traders. Under some circumstances, these strategies are more profitable than economic gains from simple moving average systems, which exploit the autocorrelation structure of the series.
Journal: Emerging Markets Finance and Trade
Pages: 61-76
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S304
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S304
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:61-76




Template-Type: ReDIF-Article 1.0
Author-Name: Fang Lou
Author-X-Name-First: Fang
Author-X-Name-Last: Lou
Author-Name: Jiwei Wang
Author-X-Name-First: Jiwei
Author-X-Name-Last: Wang
Author-Name: Hongqi Yuan
Author-X-Name-First: Hongqi
Author-X-Name-Last: Yuan
Title: Stock Liquidity and the Pricing of Earnings: A Comparison of China's Floating and Nonfloating Shares
Abstract: 
 The reform aimed at converting nonfloating shares to floating shares in China provides a setting in which shares are subject to different levels of liquidity constraints. We show that the severity of these constraints is inversely related to the extent to which earnings information is reflected in share prices. Specifically, before the reform, transfer prices of nonfloating shares reflect much less earnings information than the market prices of floating shares. After the reform, however, transfer prices of nonfloating shares reflect more earnings information, although the weights are still less than those found in market prices. Thus, China's unique setting shows that share liquidity affects the way earnings are priced in stock.
Journal: Emerging Markets Finance and Trade
Pages: 140-157
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S308
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S308
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:140-157




Template-Type: ReDIF-Article 1.0
Author-Name: Elena Fernández-Rodríguez
Author-X-Name-First: Elena
Author-X-Name-Last: Fernández-Rodríguez
Author-Name: Antonio Martínez-Arias
Author-X-Name-First: Antonio
Author-X-Name-Last: Martínez-Arias
Title: Determinants of the Effective Tax Rate in the BRIC Countries
Abstract: 
 In this paper, we study the determinants of the effective tax rate (ETR) for corporate taxation for listed companies in the BRIC countries: Brazil, Russia, India, and China. We use a panel of 3,565 companies over the period 2000-2009, and we apply the generalized method of moments estimator for dynamic panel data. The results show that the ETR for one year depends on the tax burden borne the previous year. The only variable that is significant in all the BRIC countries is inventory intensity. Firm size, leverage, and profitability affect the tax burden in three of the four countries considered but with certain differences.
Journal: Emerging Markets Finance and Trade
Pages: 214-228
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S313
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S313
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:214-228




Template-Type: ReDIF-Article 1.0
Author-Name: Michael Wong
Author-X-Name-First: Michael
Author-X-Name-Last: Wong
Title: Guest Editor's Introduction: Emerging Market Risk Management
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 4-4
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S300
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S300
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:4-4




Template-Type: ReDIF-Article 1.0
Author-Name: Jussi Nikkinen
Author-X-Name-First: Jussi
Author-X-Name-Last: Nikkinen
Author-Name: Kashif Saleem
Author-X-Name-First: Kashif
Author-X-Name-Last: Saleem
Author-Name: Minna Martikainen
Author-X-Name-First: Minna
Author-X-Name-Last: Martikainen
Author-Name: Mohammed Omran
Author-X-Name-First: Mohammed
Author-X-Name-Last: Omran
Title: Oil Risk and Asset Returns: Evidence from Emerging Markets in the Middle East
Abstract: 
 In this paper, we investigate whether oil risk is priced in selected emerging markets of the Middle East region—in particular, oil-producing countries. Given that these countries have maintained fixed exchange rates against the U.S. dollar, we are able to modify the multivariate GARCH framework to include the oil-risk component. The results show that within the framework we adopt, the world market risk and oil risk are priced on all markets under investigation. The oil risk is highly significant in all markets, indicating that oil-risk exposure, to some extent, is nondiversifiable.
Journal: Emerging Markets Finance and Trade
Pages: 169-189
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S310
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S310
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:169-189




Template-Type: ReDIF-Article 1.0
Author-Name: Hsu-Huei Huang
Author-X-Name-First: Hsu-Huei
Author-X-Name-Last: Huang
Author-Name: Min-Lee Chan
Author-X-Name-First: Min-Lee
Author-X-Name-Last: Chan
Author-Name: Ann Yang
Author-X-Name-First: Ann
Author-X-Name-Last: Yang
Title: Who Will Fare Better in a Political Crisis?
Abstract: 
 Because a political crisis may negatively affect stock returns, it is important for investors to know which firms will be affected less adversely by such a crisis. This study shows that firms that are controlled by families or have high growth opportunities will experience larger declines in their stock prices and a longer period of decline. Firms with outside directors, higher ratios of outside directors, or higher institutional shareholdings will experience smaller declines in their stock prices and a shorter period of decline. In other words, firms with better governance mechanisms and those considered value stocks will be less adversely affected by a political crisis; thus, their investors will suffer fewer negative effects.
Journal: Emerging Markets Finance and Trade
Pages: 22-34
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S302
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S302
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:22-34




Template-Type: ReDIF-Article 1.0
Author-Name: Yaqing Liu
Author-X-Name-First: Yaqing
Author-X-Name-Last: Liu
Author-Name: Hongbing Ouyang
Author-X-Name-First: Hongbing
Author-X-Name-Last: Ouyang
Title: Spillover and Comovement: The Contagion Mechanism of Systemic Risks Between the U.S. and Chinese Stock Markets
Abstract: 
 In recent years, the measurement and analysis of comovement have become important subjects with theoretical and practical value. The contagion effects specified in this paper include spillover effects under information transfer and coherent movement under common external influences. We propose using the structural conditional correlation model to measure these two contagion mechanisms. Empirical results find significant mean and volatility spillover and dynamic conditional correlation between the residual series of the structural conditional correlation model for China and U.S. stock index returns, which clearly reflect the transmission channel from international markets to China's markets, especially in financial crises. The methodology introduced here may have implications for the control and management of crises.
Journal: Emerging Markets Finance and Trade
Pages: 109-121
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S306
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S306
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:109-121




Template-Type: ReDIF-Article 1.0
Author-Name: Xianming Fang
Author-X-Name-First: Xianming
Author-X-Name-Last: Fang
Author-Name: Yu Jiang
Author-X-Name-First: Yu
Author-X-Name-Last: Jiang
Author-Name: Zhijun Qian
Author-X-Name-First: Zhijun
Author-X-Name-Last: Qian
Title: The Effects of Individual Investors' Attention on Stock Returns: Evidence from the ChiNext Market
Abstract: 
 We propose three hypotheses regarding the effects of individual investors' attention on stock returns according to special features of China's stock market. We adopt the Baidu index as the proxy for individual investors' attention to stocks. Empirical tests of the three hypotheses are based on sample data collected from the ChiNext market. Results show that individual investors' attention and market return have joint positive effects on short-term stock returns. Furthermore, high individual investors' attention to IPO stocks leads to high first-day returns but low long-term returns following the first trading day.
Journal: Emerging Markets Finance and Trade
Pages: 158-168
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S309
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S309
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:158-168




Template-Type: ReDIF-Article 1.0
Author-Name: Wan-Chun Liu
Author-X-Name-First: Wan-Chun
Author-X-Name-Last: Liu
Author-Name: Chen-Min Hsu
Author-X-Name-First: Chen-Min
Author-X-Name-Last: Hsu
Title: Profit Performance of Financial Holding Companies: Evidence from Taiwan
Abstract: 
 The paper aims to examine the determinants of profit performance of financial holding companies (FHCs) using panel data for the period 2001-9. The effects of bank-specific ownership structure and dual-core strategy are examined. Our findings show that (1) business diversification, a lower financial cost, a higher liquidity ratio, larger assets, and lower debt ratios can improve the profit performance of FHCs; (2) the percentage of director or government ownership does not affect FHCs' profitability, whereas foreign ownership has a significantly negative impact on FHC profitability; and (3) a dual-core strategy including banking and insurance has higher profit performance than the other strategies.
Journal: Emerging Markets Finance and Trade
Pages: 190-200
Issue: S3
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5003S311
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5003S311
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S3:p:190-200




Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Hyeon Kim
Author-X-Name-First: Dong-Hyeon
Author-X-Name-Last: Kim
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Title: The Resource Curse Hypothesis: Dynamic Heterogeneous Approach
Abstract: 
 Natural resources influence economic performance through many different mechanisms, both beneficial and harmful. Some of these mechanisms tend to set in fast while others are rather slow. This suggests that pooling the long- and short-run effect as typical in the resource empirical literature may lead to incorrect inferences. This article provides an evaluation of the income contribution of natural resources using a panel cointegration approach that allows for short-run dynamic heterogeneity while imposing the restriction of long-run homogeneity. It finds, in a sample of developing countries over the period 1990–2012, that natural resources are a curse in the long run. The evidence is robust to alternative dynamic specifications, different measures and types of natural resource wealth, and controlling for regional effects.
Journal: Emerging Markets Finance and Trade
Pages: 2698-2717
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1372281
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1372281
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:12:p:2698-2717




Template-Type: ReDIF-Article 1.0
Author-Name: Siew Yean Tham
Author-X-Name-First: Siew Yean
Author-X-Name-Last: Tham
Author-Name: Soo Khoon Goh
Author-X-Name-First: Soo
Author-X-Name-Last: Khoon Goh
Author-Name: Koi Nyen Wong
Author-X-Name-First: Koi Nyen
Author-X-Name-Last: Wong
Author-Name: Ahmad Fadhli
Author-X-Name-First: Ahmad
Author-X-Name-Last: Fadhli
Title: Bilateral Export Trade, Outward and Inward FDI: A Dynamic Gravity Model Approach Using Sectoral Data from Malaysia
Abstract: 
 In light of a change in the foreign direct investment (FDI) landscape such as the rapid growth of outward FDI from Malaysia since 2007, this article ascertains the possible impact of inward and outward FDI on Malaysia’s bilateral export trade at the sectoral level, using a dynamic gravity approach. The findings reveal that both inward and outward FDI are complementary to bilateral export trade in the services, mining, and manufacturing sectors. Furthermore, the distance elasticity and the real effective exchange rate have a different negative impact on different sectors. Overall, the sectoral bilateral exports could not insulate against external events.
Journal: Emerging Markets Finance and Trade
Pages: 2718-2735
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1402176
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1402176
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:12:p:2718-2735




Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Saona
Author-X-Name-First: Paolo
Author-X-Name-Last: Saona
Author-Name: Laura Muro
Author-X-Name-First: Laura
Author-X-Name-Last: Muro
Title: Firm- and Country-Level Attributes as Determinants of Earnings Management: An Analysis for Latin American Firms
Abstract: 
 This article analyzes firm- and country-level determinants of the earnings management for a sample of Latin American companies from 1997 to 2015 by using panel data to deal with the endogeneity and heterogeneity problems. Results show that dividend pay-outs impact positively on earnings management. The ownership structure, however, is a double-edged sword as a controlling mechanism that may constrain earnings manipulation but may also exacerbate it. Concerning country-level variables, we found that the development of the financial system behaved opposite of expectation. Consequently, before inefficient financial markets in Latin America, managers had more room for manipulation of financial statements. The legal and regulatory system, however, proved itself to be efficient in reducing the opportunistic behavior of managers.
Journal: Emerging Markets Finance and Trade
Pages: 2736-2764
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1410127
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1410127
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:12:p:2736-2764




Template-Type: ReDIF-Article 1.0
Author-Name: Bader S. Alhashel
Author-X-Name-First: Bader S.
Author-X-Name-Last: Alhashel
Title: The New Stock that Did Not Underperform
Abstract: 
 This article examines the performance of newly listed stocks in a unique setting in which firms do not issue new equity immediately prior to listing. We find that in such a setting newly listed firms do not observe any underperformance over a three-year period as documented in the extant literature. This result is arrived at after controlling for both size and book-to-market effects using both event-time and calendar-time approaches. These findings present a challenge to the current extant empirical evidence and to the pseudo market timing and fads hypotheses.
Journal: Emerging Markets Finance and Trade
Pages: 2765-2777
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1410472
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1410472
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:12:p:2765-2777




Template-Type: ReDIF-Article 1.0
Author-Name: Yang Li
Author-X-Name-First: Yang
Author-X-Name-Last: Li
Author-Name: Erick W. Rengifo
Author-X-Name-First: Erick W.
Author-X-Name-Last: Rengifo
Title: The Impact of Institutions and Exchange Rate Volatility on China’s Outward FDI
Abstract: 
 Over the past decade, China’s outward foreign direct investment (OFDI) has rapidly increased. However, its characteristics are not sufficiently studied. In this article, we explore the host country’s determinants of China’s OFDI, with a focus on institutional quality, exchange rate volatility, and natural resources by performing an econometric analysis for the period 2003–2013 for a sample of 49 countries. Our results reveal that China’s OFDI is invested in countries with relatively poor institutional quality and abundant natural resources. Exchange rate variability has a dampening effect on China’s OFDI and that the appreciation of the Chinese renminbi enhances OFDI flows.
Journal: Emerging Markets Finance and Trade
Pages: 2778-2798
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1412302
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1412302
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:12:p:2778-2798




Template-Type: ReDIF-Article 1.0
Author-Name: Evžen Kočenda
Author-X-Name-First: Evžen
Author-X-Name-Last: Kočenda
Author-Name: Karen Poghosyan
Author-X-Name-First: Karen
Author-X-Name-Last: Poghosyan
Title: Export Sophistication: A Dynamic Panel Data Approach
Abstract: 
 In this article, we analyze export sophistication based on a large panel dataset (2001–2015; 101 countries) and using various estimation algorithms. Using Monte Carlo simulations, we evaluate the bias properties of estimators and show that GMM-type estimators outperform instrumental-variable and fixed-effects estimators. Based on our analysis we document that GDP per capita and the size of the economy exhibit significant and positive effects on export sophistication; weak institutional quality exhibits negative effect. We also show that export sophistication is path-dependent and stable even during a major economic crisis, which is especially important for emerging and developing economies.
Journal: Emerging Markets Finance and Trade
Pages: 2799-2814
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1412305
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1412305
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:12:p:2799-2814




Template-Type: ReDIF-Article 1.0
Author-Name: Jiang Hai
Author-X-Name-First: Jiang
Author-X-Name-Last: Hai
Author-Name: Huang Min
Author-X-Name-First: Huang
Author-X-Name-Last: Min
Author-Name: James R. Barth
Author-X-Name-First: James R.
Author-X-Name-Last: Barth
Title: On Foreign Shareholdings and Agency Costs: New Evidence from China
Abstract: 
 This article examines the impact of foreign shareholdings on agency costs of Chinese firms from 2006 to 2012. The empirical results indicate that: (1) direct foreign shareholdings, in contrast to indirect foreign shareholdings, improve asset utilization, suggesting low agency costs; (2) qualified foreign institutional investors play a significant role in firms because they are less subject to political pressure, which is consistent with lower agency costs, but this effect could be eroded by government control; and (3) foreign shareholdings reduce the cost of equity and improve firm performance. The results contribute to the privatization of state-owned enterprises and the domestic/foreign ownership structure of firms.
Journal: Emerging Markets Finance and Trade
Pages: 2815-2833
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1412949
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1412949
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:12:p:2815-2833




Template-Type: ReDIF-Article 1.0
Author-Name: W. D. Chen
Author-X-Name-First: W. D.
Author-X-Name-Last: Chen
Title: Effective or Manipulated Crawling Pegged? Examining the Efficiency of China’s Foreign Exchange Markets
Abstract: 
 Through data on the balance of payments, this article examines the performance of the crawling peg system in China’s foreign exchange markets. We are interested in whether the exchange rates are steered by the market fundamentals or manipulation. We investigate the changes in market efficiency for the RMB against 12 major currencies in the past decade. Our findings reveal that even with a small floating band in China’s foreign exchange markets, if the market allows the exchange rate to adjust according to the price mechanism, then market efficiency does improve significantly. When the RMB was pegged to the USD at 6.83 during the global financial crisis, there was a severe market failure. That also occurred in 2014, when the China government began to depreciate the RMB to stimulate exports.
Journal: Emerging Markets Finance and Trade
Pages: 2834-2850
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1415883
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1415883
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Template-Type: ReDIF-Article 1.0
Author-Name: Odongo Kodongo
Author-X-Name-First: Odongo
Author-X-Name-Last: Kodongo
Title: Financial Regulations, Financial Literacy, and Financial Inclusion: Insights from Kenya
Abstract: 
 This paper examines the relationship between financial regulation and financial inclusion in Kenya. Employing Probit regression on cross-sectional household level survey data and fixed effect regression on banks panel data, we find that: (i) agency banking regulations and financial literacy could improve formal financial access, and (ii) know-your-customers rules and capital and liquidity macro-prudential regulations could harm financial inclusion. Results are robust to alternative specifications. Given our findings, Kenya should boost financial literacy efforts, relax customer identification requirements in specific instances where they may jeopardize financial inclusion efforts, and stabilize macroeconomic environment to mitigate unintended adverse effects of macro-prudential regulations.
Journal: Emerging Markets Finance and Trade
Pages: 2851-2873
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2017.1418318
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1418318
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Template-Type: ReDIF-Article 1.0
Author-Name: Serkan Akguc
Author-X-Name-First: Serkan
Author-X-Name-Last: Akguc
Author-Name: Naseem Al Rahahleh
Author-X-Name-First: Naseem
Author-X-Name-Last: Al Rahahleh
Title: Effect of Shariah Compliance on Operating Performance: Evidence from GCC Countries
Abstract: 
 We examine the operating performance of Shariah-compliant (SC) vs. non-Shariah-compliant (NSC) firms in six Gulf Cooperation Council (GCC) countries during 2000–2014 using a unique dataset from S&amp;P’s Compustat Global database and show robust evidence that SC firms are operationally much more profitable than NSC firms. We show that higher operating profit margin (due to lower cost structure) and higher total asset turnover (i.e., asset efficiency) of SC firms compared to NSC firms are the primary drivers of the profitability difference. We also find that this association is more pronounced for firms that are always SC or always NSC during sample period.
Journal: Emerging Markets Finance and Trade
Pages: 2874-2896
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1425991
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1425991
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhifang Zhou
Author-X-Name-First: Zhifang
Author-X-Name-Last: Zhou
Author-Name: Hong Zhou
Author-X-Name-First: Hong
Author-X-Name-Last: Zhou
Author-Name: Danlu Peng
Author-X-Name-First: Danlu
Author-X-Name-Last: Peng
Author-Name: Xiao-hong Chen
Author-X-Name-First: Xiao-hong
Author-X-Name-Last: Chen
Author-Name: Shi-hui Li
Author-X-Name-First: Shi-hui
Author-X-Name-Last: Li
Title: Carbon Disclosure, Financial Transparency, and Agency Cost: Evidence from Chinese Manufacturing Listed Companies
Abstract: 
 Given the constraints on carbon emissions due to their impact on global warming, carbon disclosure has become an important way to deliver signals to the market. We examine the benefits associated with carbon disclosure from the standpoint of corporate social responsibility (CSR) for China’s manufacturing industries from 2010 to 2014. We divide corporations into heavily polluting and non-heavily polluting groups in order to control the industry factor. Based on the Principal-Agent Theory, we empirically test the relationship between carbon disclosure and financial transparency, and we evaluate the effect of carbon disclosure on agency costs and operations. Our results highlight that carbon disclosure is negatively associated with agency costs. However, we do not find enough evidence to prove what role financial transparency plays in the relationship between carbon disclosure and agency cost. Therefore, the influence of financial transparency as a mechanism is not yet clear. This study provides a way to look at the intentions of firms that disclose carbon information, and it also enhances the literature on carbon disclosure and agency costs in China based on Chinese data.
Journal: Emerging Markets Finance and Trade
Pages: 2669-2686
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1428796
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1428796
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Template-Type: ReDIF-Article 1.0
Author-Name: Bao Wu
Author-X-Name-First: Bao
Author-X-Name-Last: Wu
Author-Name: Haiyan Liang
Author-X-Name-First: Haiyan
Author-X-Name-Last: Liang
Author-Name: Yan Shen
Author-X-Name-First: Yan
Author-X-Name-Last: Shen
Title: Political Connection, Ownership, and Post-Crisis Industrial Upgrading Investment: Evidence from China
Abstract: 
 This article investigates the effect of political connections, along with government ownership and family control, on the intensity of investment in industrial upgrading, including the intensity of R&amp;D, facility upgrading, and marketing, in the context of post-crisis recovery through industrial upgrading in emerging economies. Based on empirical evidence in China, the article finds that political connections of top executives are positively associated with investment in upgrading. The effects of political connections on the intensity of investment in R&amp;D and marketing are negatively moderated by both government ownership and family control, whereas the relationship between political connections and the intensity of investment in facilities upgrading is positively moderated by government ownership and negatively moderated by family control.
Journal: Emerging Markets Finance and Trade
Pages: 2651-2668
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1491400
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1491400
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Template-Type: ReDIF-Article 1.0
Author-Name: Heejin Yang
Author-X-Name-First: Heejin
Author-X-Name-Last: Yang
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Author-Name: Doowon Ryu
Author-X-Name-First: Doowon
Author-X-Name-Last: Ryu
Title: Market Reform and Efficiency: The Case of KOSPI200 Options
Abstract: 
 The Korean government and exchange have identified a need to regulate excessive speculative trading and to protect domestic individual investors from foreign and professional traders. As such, they have proposed an options market reform that requires higher levels of margin accounts for options trading and that increases the basic options multipliers in the KOSPI200 options market. This study examines how this market reform affects the price disagreement and adjustment behaviors of the index options market. Our analyses indicate that the efficiency and information quality of out-of-the-money options trades have increased since the reform took effect.
Journal: Emerging Markets Finance and Trade
Pages: 2687-2697
Issue: 12
Volume: 54
Year: 2018
Month: 9
X-DOI: 10.1080/1540496X.2018.1496424
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496424
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Template-Type: ReDIF-Article 1.0
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Financial and Real Sector Challenges in Emerging Economies
Journal: Emerging Markets Finance and Trade
Pages: S1-S2
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2015.1025022
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1025022
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Template-Type: ReDIF-Article 1.0
Author-Name: Jun Sik Kim
Author-X-Name-First: Jun Sik
Author-X-Name-Last: Kim
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: Return and Volatility Spillovers and Cojump Behavior Between the U.S. and Korean Stock Markets
Abstract: 
 In this study, we examine return spillover, volatility transmission, and cojump behavior between the U.S. and Korean stock markets. In particular, we focus on cojump behavior between the two markets in order to explain the transmission of unexpected shocks. We find that the U.S. stock market causes return spillover effects in the Korean stock market, and there is significant volatility transmission between the two markets. Importantly, we find a stronger association in size, as compared with intensity, of cojumps between the U.S. and Korean stock markets, particularly during the recent financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: S3-S17
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998881
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998881
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Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Díaz Hurtado
Author-X-Name-First: Fernando
Author-X-Name-Last: Díaz Hurtado
Author-Name: Fernando Lefort
Author-X-Name-First: Fernando
Author-X-Name-Last: Lefort
Title: External Conditions, the Evolution of Financial Risks, and the Informational Content of Stock Prices: The Case of Chile
Abstract: 
 In this article, we find that the dynamics of local financial risks in the Chilean stock market are associated with the evolution of external economic conditions, with a strong reduction in both idiosyncratic and systematic risks during periods of stable conditions. Despite this, we fail to find any significant change in the traditional measures of stock price synchronicity developed in the R2 literature in our sample. We argue that these measures neglect the relationship between stock prices and fundamentals and find that the strength of the association between prices and fundamentals changes during our sample period, being much stronger during times of stable external conditions and diminished stock price volatility.
Journal: Emerging Markets Finance and Trade
Pages: S42-S57
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998882
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998882
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Template-Type: ReDIF-Article 1.0
Author-Name: Wan-Ru Yang
Author-X-Name-First: Wan-Ru
Author-X-Name-Last: Yang
Author-Name: Yi-Ling Chen
Author-X-Name-First: Yi-Ling
Author-X-Name-Last: Chen
Title: The Response of Dynamic Herd Behavior to Domestic and U.S. Market Factors: Evidence from the Greater China Stock Markets
Abstract: 
 We investigate the dynamic reaction of stock market herding in China, Hong Kong, and Taiwan to unexpected shocks from domestic and U.S. market factors. In China and Taiwan, herding is more pronounced, and the investors tend to herd with the rising stock market returns. Overconfident investors will herd on the subsequent trading days under market stress. Compared with the response to the domestic market factors, the responses of herding in the Greater China stock market to the U.S. market factors are weaker. After the 2007–8 financial crisis, the U.S. market factors highly explain the forecast error variance of herding in the Shanghai A-share and Taiwan markets.
Journal: Emerging Markets Finance and Trade
Pages: S18-S41
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998884
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998884
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Template-Type: ReDIF-Article 1.0
Author-Name: Szu-Lang Liao
Author-X-Name-First: Szu-Lang
Author-X-Name-Last: Liao
Author-Name: Tsung-Ying Tsai
Author-X-Name-First: Tsung-Ying
Author-X-Name-Last: Tsai
Title: The Information Transmission Effect and Asset Prices: Evidence from the China B-Share Discount
Abstract: 
 We construct a model based on market microstructure and examine the information transmission effect of equity prices in A-share and B-share markets in China. The data on foreign share discounts raise a question: How are asset prices determined if uninformed foreign traders obtain signals by observing public information? Our investigation on the measure of the information transmission effect presents a substantial segment of the cross-sectional variation in B-share discounts and finds that the information transmission effect plays a critical role in explaining how foreign share discounts become more contractive.
Journal: Emerging Markets Finance and Trade
Pages: S73-S85
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998885
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998885
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Template-Type: ReDIF-Article 1.0
Author-Name: Chih-Hai Yang
Author-X-Name-First: Chih-Hai
Author-X-Name-Last: Yang
Author-Name: Eric D. Ramstetter
Author-X-Name-First: Eric D.
Author-X-Name-Last: Ramstetter
Author-Name: Jen-Ruey Tsaur
Author-X-Name-First: Jen-Ruey
Author-X-Name-Last: Tsaur
Author-Name: Minh Ngoc Phan
Author-X-Name-First: Minh
Author-X-Name-Last: Ngoc Phan
Title: Openness, Ownership, and Regional Economic Growth in Vietnam
Abstract: 
 In this article, we examine the influences of exports, multinational corporations (MNCs), and the share of state-owned enterprise (SOE) production in regional economic growth in Vietnam for the years 1996–2006. Various estimations, without and with considering the endogeneity problem, confirm that exports and the presence of MNCs are influential factors on promoting economic growth. Crucially, provinces with a higher ratio of SOE production have experienced higher economic growth. However, the positive relationship between SOE share and economic growth should be carefully interpreted.
Journal: Emerging Markets Finance and Trade
Pages: S224-S233
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998886
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998886
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S224-S233




Template-Type: ReDIF-Article 1.0
Author-Name: Chuang-Min Chao
Author-X-Name-First: Chuang-Min
Author-X-Name-Last: Chao
Author-Name: Ming-Miin Yu
Author-X-Name-First: Ming-Miin
Author-X-Name-Last: Yu
Author-Name: Hsiao-Ning Wu
Author-X-Name-First: Hsiao-Ning
Author-X-Name-Last: Wu
Title: An Application of the Dynamic Network DEA Model: The Case of Banks in Taiwan
Abstract: 
 In this study, we apply the dynamic network slack-based measure data envelopment analysis model (DNSBM) to measure the efficiency of Taiwanese banks during the period 2005–11. Using the network structure, we define intellectual capital creation capability as one of the production stages. In order to capture the dynamics of the transformation process, the nonperforming loans and loan loss reserves are defined as carryover items. This study offers sufficient information for managers to understand not only the overall performance of their banks but also the efficiency of each production stage and the dynamic changes of the overall and divisional efficiencies.
Journal: Emerging Markets Finance and Trade
Pages: S133-S151
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998887
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998887
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S133-S151




Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Kuo Li
Author-X-Name-First: Chien-Kuo
Author-X-Name-Last: Li
Author-Name: Deron Liang
Author-X-Name-First: Deron
Author-X-Name-Last: Liang
Author-Name: Fengyi Lin
Author-X-Name-First: Fengyi
Author-X-Name-Last: Lin
Author-Name: Kwo-Liang Chen
Author-X-Name-First: Kwo-Liang
Author-X-Name-Last: Chen
Title: The Application of Corporate Governance Indicators With XBRL Technology to Financial Crisis Prediction
Abstract: 
 The widespread adoption of eXtensible Business Reporting Language (XBRL) suggests that intelligent software agents can now use financial information disseminated on the Web with high accuracy. Financial data have been widely used by researchers to predict financial crises; however, few studies have considered corporate governance indicators in building prediction models. This article presents a financial crisis prediction model that involves using a genetic algorithm for determining the optimal feature set and support vector machines (SVMs) to be used with XBRL. The experimental results show that the proposed model outperforms models based on only one type of information, either financial or corporate governance. Compared with conventional statistical methods, the proposed SVM model forecasts financial crises more accurately.
Journal: Emerging Markets Finance and Trade
Pages: S58-S72
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998888
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998888
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S58-S72




Template-Type: ReDIF-Article 1.0
Author-Name: Wankeun Oh
Author-X-Name-First: Wankeun
Author-X-Name-Last: Oh
Author-Name: Kyungsoo Kim
Author-X-Name-First: Kyungsoo
Author-X-Name-Last: Kim
Title: The Baumol Diseases and the Korean Economy
Abstract: 
 This article examines the Baumol effect and the consequences of unbalanced growth across Korean industries. The results demonstrate that the Baumol effect exists, but it is qualitatively different from existing literature. Although Baumol’s cost disease is significant, it is weak. Certain attributes of the Korean economy such as heavy reliance on exports and compressed growth seem to be responsible. Weak cost disease leads to a weak growth disease: the aggregate productivity growth does not monotonically decline over time. Productivity growth has led to the deindustrialization of employment. The value holds effective after controlling the growth of international trade.
Journal: Emerging Markets Finance and Trade
Pages: S214-S223
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998889
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998889
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S214-S223




Template-Type: ReDIF-Article 1.0
Author-Name: Chengli Tien
Author-X-Name-First: Chengli
Author-X-Name-Last: Tien
Author-Name: Chin-jung Luan
Author-X-Name-First: Chin-jung
Author-X-Name-Last: Luan
Title: Is the Magic of the Diaspora Fact or Fiction? A Study of Taiwan’s Trade Performance in the Bamboo Network
Abstract: 
 In this study, we examine the relationship between the ethnic Chinese diaspora network (i.e., bamboo network) and Taiwan’s trade performance. The models are based on theories of international trade to examine hypotheses using panel data from the members of the World Trade Organization (WTO) from 1996 to 2012. The results indicate that the bamboo network has limited effects on Taiwan’s trade performance. Hence, the “magic” effect of the Chinese diaspora is debatable.
Journal: Emerging Markets Finance and Trade
Pages: S234-S250
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998890
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998890
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S234-S250




Template-Type: ReDIF-Article 1.0
Author-Name: Huili Zhang
Author-X-Name-First: Huili
Author-X-Name-Last: Zhang
Author-Name: Zhengfei Lu
Author-X-Name-First: Zhengfei
Author-X-Name-Last: Lu
Author-Name: Ran Zhang
Author-X-Name-First: Ran
Author-X-Name-Last: Zhang
Author-Name: Guohua Jiang
Author-X-Name-First: Guohua
Author-X-Name-Last: Jiang
Title: Insider Ownership, Subsidiary Cash Holdings, and Economic Consequences: Evidence from Listed Chinese Companies
Abstract: 
 Using a large sample of listed Chinese companies, we investigate how the equity ownership of business group insiders affects subsidiary cash holdings. We find that ownership by the largest shareholders and senior managers in the listed parent firm is negatively related to its subsidiaries’ cash holdings, whereas there is a positive relationship with minority equity in subsidiaries. We also find that the market places a more significant value discount on listed firms whose cash holdings are more located in the affiliated subsidiaries. Our evidence demonstrates how cash policy inside business groups is influenced by insider ownership, and it reveals to what extent cash allocated in subsidiaries may suffer from losses in efficiency.
Journal: Emerging Markets Finance and Trade
Pages: S174-S195
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998891
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998891
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S174-S195




Template-Type: ReDIF-Article 1.0
Author-Name: Jong-Hee Kim
Author-X-Name-First: Jong-Hee
Author-X-Name-Last: Kim
Author-Name: Joocheol Kim
Author-X-Name-First: Joocheol
Author-X-Name-Last: Kim
Title: Financial Regulation, Exchange Rate Exposure, and Hedging Activities: Evidence from Korean Firms
Abstract: 
 In this article, we attempt to estimate whether firm-specific exchange rate exposures affected by hedging activities can be improved through financial regulation or supervision. To analyze this, we compose three-step estimations by using a sample of KOSPI 200 firms during 1,803 trading days between 2005 and 2012. We first estimate the relationship between exchange rate exposure and hedging activities and see whether financial regulation had any effect on hedging activities. Furthermore, using TSLS analysis, we estimate the effect of hedging activities on exchange rate exposure, which is caused by tightened financial regulation in the form of corporate governance. We report the following findings. First, firms are less likely to be exposed to exchange risk with more hedging activities. Second, corporate governance has a strongly positive effect on the hedging activities. Firms use more hedging tools when they have a strong structure of shareholder’s protection, clear outside ownership, and a better monitoring system; but the relationship becomes weaker in times of crisis.
Journal: Emerging Markets Finance and Trade
Pages: S152-S173
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998893
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998893
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S152-S173




Template-Type: ReDIF-Article 1.0
Author-Name: Yoonseok Choi
Author-X-Name-First: Yoonseok
Author-X-Name-Last: Choi
Author-Name: Sunghyun Kim
Author-X-Name-First: Sunghyun
Author-X-Name-Last: Kim
Title: Hyperbolic Discounting and Consumer Patience: The Case of Korea
Abstract: 
 In this article, we test whether the consumption pattern in Korea exhibits a time-inconsistent discounting behavior compared to the conventional exponential discounting. We derive the quasi-hyperbolic Euler equation and estimate it using the generalized method of moments (GMM). The estimation results show that Korean consumers exhibit a time-inconsistent quasi-hyperbolic discounting behavior in general, but the pattern of inconsistency in consumption behavior, in particular the degree of impatience, depends on the estimation period, in particular whether it includes financial crisis periods in 1997–98 and 2008–11.
Journal: Emerging Markets Finance and Trade
Pages: S251-S260
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998902
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998902
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S251-S260




Template-Type: ReDIF-Article 1.0
Author-Name: Danlin Pu
Author-X-Name-First: Danlin
Author-X-Name-Last: Pu
Author-Name: Yun Hong
Author-X-Name-First: Yun
Author-X-Name-Last: Hong
Author-Name: Ming-Hsien Hsueh
Author-X-Name-First: Ming-Hsien
Author-X-Name-Last: Hsueh
Title: Chief Financial Officers’ Power, Institutional Environment, and Corporate Effective Tax Rate: Evidence from China
Abstract: 
 In this study, we investigate how chief financial officers’ (CFOs’) power and institutional environment influence corporate effective tax rates (ETRs). Using a sample of Chinese listed firms from 2004 to 2010, we find that firms with expert power or political power CFOs enjoy a low effective tax rate. Furthermore, CFOs’ expert power plays a more important function in reducing ETR in regions with a better institutional environment compared to those with less-developed institutions. CFOs’ political power is the most important factor in reducing ETR in regions with a less developed institutional environment than in those regions with a better institutional environment.
Journal: Emerging Markets Finance and Trade
Pages: S196-S213
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998905
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998905
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S196-S213




Template-Type: ReDIF-Article 1.0
Author-Name: Jin-Li Hu
Author-X-Name-First: Jin-Li
Author-X-Name-Last: Hu
Author-Name: Hsueh-E Yu
Author-X-Name-First: Hsueh-E
Author-X-Name-Last: Yu
Title: Risk, Capital, and Operating Efficiency: Evidence from Taiwan’s Life Insurance Market
Abstract: 
 In this article, we investigate the relationships among risk, capital, and operating efficiency for Taiwanese life insurance companies from 2004 to 2009 by using the two-stage least-square approach. We find a positive relation between inefficiency and product risk. At the same time, efficient insurers are seen as taking higher asset risk than inefficient insurers. A contrasting finding also shows that the relationship between capital and product risk is positive, while the relationship between capital and asset risk is negative. Moreover, we present a negative relationship between inefficiency and capital level, indicating that well-capitalized insurers operate more efficiently than poorly capitalized insurers.
Journal: Emerging Markets Finance and Trade
Pages: S121-S132
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998907
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998907
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S121-S132




Template-Type: ReDIF-Article 1.0
Author-Name: Wu-Yueh Hu
Author-X-Name-First: Wu-Yueh
Author-X-Name-Last: Hu
Author-Name: Chih-Jen Huang
Author-X-Name-First: Chih-Jen
Author-X-Name-Last: Huang
Author-Name: Heng-Yu Chang
Author-X-Name-First: Heng-Yu
Author-X-Name-Last: Chang
Author-Name: Wei-Ju Lin
Author-X-Name-First: Wei-Ju
Author-X-Name-Last: Lin
Title: The Effect of Investor Sentiment on Feedback Trading and Trading Frequency: Evidence from Taiwan Intraday Data
Abstract: 
 Although extensive literature has suggested that investor sentiment may be one of the most important factors in explaining investor trading frequency and trading strategies, how individual investors are significantly influenced by sentiment remains underexplored. The feature of numerous individual investors in the Taiwan stock market provides an avenue to examine the relationship of investor sentiment to trading frequency and positive-feedback trading according to intraday data. Using a vector autoregression model to measure feedback trading in one-minute intervals, we find that trading frequency appears to increase in periods of rising market, suggesting that investor sentiment–driven trading increases market trading frequency without relying on past experiences to conduct trading behavior.
Journal: Emerging Markets Finance and Trade
Pages: S111-S120
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998914
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998914
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S111-S120




Template-Type: ReDIF-Article 1.0
Author-Name: Yensen Ni
Author-X-Name-First: Yensen
Author-X-Name-Last: Ni
Author-Name: Yi-Ching Liao
Author-X-Name-First: Yi-Ching
Author-X-Name-Last: Liao
Author-Name: Paoyu Huang
Author-X-Name-First: Paoyu
Author-X-Name-Last: Huang
Title: Momentum in the Chinese Stock Market: Evidence from Stochastic Oscillator Indicators
Abstract: 
 We explore whether investors earn profits through the use of stochastic oscillator indicators (SOI) for trading stocks. The results reveal that investors might use momentum strategies when trading constituent stocks of SSE 50 as the overbought trading signals emitted by SOI. We infer that the results might be caused by herding behaviors of Chinese investors since overoptimistic moods are likely to exist as evidenced by the 80 percent trading volume traded by individual investors in the Chinese stock market.
Journal: Emerging Markets Finance and Trade
Pages: S99-S110
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998916
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998916
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S99-S110




Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Jung Tsai
Author-X-Name-First: Jui-Jung
Author-X-Name-Last: Tsai
Author-Name: Yang-Chao Wang
Author-X-Name-First: Yang-Chao
Author-X-Name-Last: Wang
Author-Name: Kehuang Weng
Author-X-Name-First: Kehuang
Author-X-Name-Last: Weng
Title: The Asymmetry and Volatility of the Chinese Stock Market Caused by the “New National Ten”
Abstract: 
 To curb the excessively rapid rise in housing prices in China, the State Council of China promulgated the New National Ten, which restrains speculative investment behavior and has a linkage effect on the stock market. In this study, we use a series of GARCH models to analyze the effect of the New National Ten on the volatility and asymmetry of the Shanghai Composite Index. Specifically, we investigate how changes in investors’ expectations due to regulations affect the stock market. The result clearly illustrates that this policy is effective in stabilizing the stock market. Investors expect a bullish future stock market and only care about the continuing execution of the policy. Finally, policy implications of our findings are discussed.
Journal: Emerging Markets Finance and Trade
Pages: S86-S98
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998918
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998918
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S86-S98




Template-Type: ReDIF-Article 1.0
Author-Name: Wanjun Yao
Author-X-Name-First: Wanjun
Author-X-Name-Last: Yao
Author-Name: Han Wu
Author-X-Name-First: Han
Author-X-Name-Last: Wu
Author-Name: Tomoko Kinugasa
Author-X-Name-First: Tomoko
Author-X-Name-Last: Kinugasa
Title: Financial Deepening, Asset Price Inflation, and Economic Convergence: Empirical Analysis Based on China’s Experience
Abstract: 
 In this study, we test for convergence in financial development and economic growth in China’s financial deepening reform process by using system GMM method. The results show strong evidence of the mutually interactive and systematic relationship between financial development and economic growth, and the system is in a condition of long-run divergence. The main cause of divergence in the system changed after 2008 from financial depression to asset price expansion. This study provides evidence that the government should intensify financial deepening reforms and pay attention to financial resource flows to prevent excessive asset price expansion.
Journal: Emerging Markets Finance and Trade
Pages: S275-S284
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998927
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998927
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S275-S284




Template-Type: ReDIF-Article 1.0
Author-Name: Jian Han
Author-X-Name-First: Jian
Author-X-Name-Last: Han
Author-Name: Yanzhi Shen
Author-X-Name-First: Yanzhi
Author-X-Name-Last: Shen
Title: Financial Development and Total Factor Productivity Growth: Evidence from China
Abstract: 
 In this article, we estimate the effect of China’s regional financial development on total factor productivity (TFP) growth using large provincial panel data for the years 1990 to 2009. Using the nonparametric stochastic frontier data envelopment approach, we analyze how financial development is related to efficiency improvement and technological progress, the two components of TFP. The study shows that Chinese financial development plays a significant role in promoting TFP growth via technological progress rather than efficiency change. The faster the financial development takes place, the better it could correct the mismatch of resource allocation, thus promoting TFP growth. The results imply that China needs to both further optimize the allocation of financial resources and perfect the regional financial system.
Journal: Emerging Markets Finance and Trade
Pages: S261-S274
Issue: S1
Volume: 51
Year: 2015
Month: 1
X-DOI: 10.1080/1540496X.2014.998928
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998928
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Handle: RePEc:mes:emfitr:v:51:y:2015:i:S1:p:S261-S274




Template-Type: ReDIF-Article 1.0
Author-Name: Yunong Li
Author-X-Name-First: Yunong
Author-X-Name-Last: Li
Author-Name: Teng Zhang
Author-X-Name-First: Teng
Author-X-Name-Last: Zhang
Title: Incomplete Exchange Rate Pass-Through: Evidence from Exchange Rate Reform in China
Abstract: 
 Exchange rate disconnect is one of the central puzzles in international macroeconomics. Recently, there is a growing literature that studies the microeconomic foundations or mechanisms for incomplete exchange rate pass-through. However, the estimations of the exchange rate pass-through vary widely in the existing literature. Our article proposes the use of a policy-based instrumental variable for exchange rate, exploiting the exchange rate reform in China, and finds that 67% of exchange rate pass-through into the FOB export price of Chinese exports. This contrasts to the almost full exchange rate pass-through using OLS estimation. We further find that the export price of homogeneous goods, low-technology goods, and goods supplied by domestic non-SOEs is more sensitive to exchange rate changes.
Journal: Emerging Markets Finance and Trade
Pages: 690-706
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2016.1243940
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1243940
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:690-706




Template-Type: ReDIF-Article 1.0
Author-Name: Bin Gao
Author-X-Name-First: Bin
Author-X-Name-Last: Gao
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Title: Investor Trading Behavior and Sentiment in Futures Markets
Abstract: 
 This study investigates the effects of investor trading behavior and investor sentiment on futures market return. We find that the spot investor trading behavior, futures investor trading behavior, spot market sentiment, and futures market sentiment all have positive effects on daily futures returns in Chinese financial market. More importantly, we show that the effect of (spot) futures investor trading behavior has better explanatory power than (spot) futures market sentiment on futures returns. Further supporting our results, high investor trading behavior and high investor sentiment strengthen the positive relation between sentiment-returns and behavior-returns.
Journal: Emerging Markets Finance and Trade
Pages: 707-720
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2016.1262760
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1262760
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:707-720




Template-Type: ReDIF-Article 1.0
Author-Name: Kadri Männasoo
Author-X-Name-First: Kadri
Author-X-Name-Last: Männasoo
Author-Name: Peeter Maripuu
Author-X-Name-First: Peeter
Author-X-Name-Last: Maripuu
Author-Name: Aaro Hazak
Author-X-Name-First: Aaro
Author-X-Name-Last: Hazak
Title: Investments, Credit, and Corporate Financial Distress: Evidence from Central and Eastern Europe
Abstract: 
 Although they are instrumental for economic development, productivity-enhancing corporate investments may increase the financial vulnerability of companies, especially in an economic and financial crisis. We employ an instrumental probit model with the aim of finding evidence for the investment and credit patterns that led companies into financial distress during the global financial crisis 2009–2010. The company-level micro-data for our study on three Central and East European countries—Hungary, Bulgaria, Romania and two Baltic countries, Latvia and Lithuania—originates from two independent surveys, the Business Environment and Enterprise Performance Survey conducted in 2008 and the Financial Crisis Survey conducted in 2009/2010. Both were carried out jointly by the EBRD and the World Bank. Our results emphasize a substantial adverse impact from investment intensity and debt financing on company financial soundness during a crisis. On top of that, we discover a strong non-linear pattern in the sensitivity of company distress to its investment-financing nexus.
Journal: Emerging Markets Finance and Trade
Pages: 677-689
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1300092
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1300092
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:677-689




Template-Type: ReDIF-Article 1.0
Author-Name: Sebastian Lazar
Author-X-Name-First: Sebastian
Author-X-Name-Last: Lazar
Author-Name: Bogdan Gabriel Zugravu
Author-X-Name-First: Bogdan
Author-X-Name-Last: Gabriel Zugravu
Author-Name: Adina Dornean
Author-X-Name-First: Adina
Author-X-Name-Last: Dornean
Title: Are Private Vices Public Finance Virtues? An Empirical Investigation
Abstract: 
 The article investigates the impact of widely accepted private vices (smoking and alcohol and gasoline consumption) on public finance. Introducing the concept of “vice-related deficit,” which aggregates the positive effects on public finance on the revenue side (cash inflows) and the negative effects on the expenditures side (cash outflows), the article looks upon cigarette, alcohol, and gasoline consumption as determinants of vice-related deficit for a number of 68 countries for year 2012. We found that smoking had a negative effect on vice-related budget balance, while alcohol and gasoline consumption had a positive effect. As control variables, we used life expectancy and size of the economy, both having been found with negative effects. The results prove robust to different sample adjustments. We also found that the negative effect of private vices on public finance is stronger for Christian countries than for non-Christian countries. Policy recommendations were made accordingly.
Journal: Emerging Markets Finance and Trade
Pages: 537-551
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1404449
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1404449
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:537-551




Template-Type: ReDIF-Article 1.0
Author-Name: Dumitru Nicuşor Cărăuşu
Author-X-Name-First: Dumitru Nicuşor
Author-X-Name-Last: Cărăuşu
Author-Name: Bogdan Florin Filip
Author-X-Name-First: Bogdan Florin
Author-X-Name-Last: Filip
Author-Name: Elena Cigu
Author-X-Name-First: Elena
Author-X-Name-Last: Cigu
Author-Name: Carmen Toderaşcu
Author-X-Name-First: Carmen
Author-X-Name-Last: Toderaşcu
Title: Contagion of Capital Markets in CEE Countries: Evidence from Wavelet Analysis
Abstract: 
 We employed wavelets technology to investigate how and when contagion occurred on 10 Central and Eastern European financial markets in relation to Western European and US financial markets during 2000–2016 and their different reactions on the background of changes in their regulatory framework. We found that most of Central and Eastern European (CEE) capital markets showed contagion in relation to both Western European and US markets between 2005 and 2009, while Slovakian and Estonian markets showed no contagion. However, during 2010–2016, Croatian market showed de-contagion in relation to Western European market, while Bulgarian, Czech, Hungarian, and Polish markets showed de-contagion in relation to US market, increasing their independence.
Journal: Emerging Markets Finance and Trade
Pages: 618-641
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1410129
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1410129
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:618-641




Template-Type: ReDIF-Article 1.0
Author-Name: Tudorel Toader
Author-X-Name-First: Tudorel
Author-X-Name-Last: Toader
Author-Name: Mihaela Onofrei
Author-X-Name-First: Mihaela
Author-X-Name-Last: Onofrei
Author-Name: Ada-Iuliana Popescu
Author-X-Name-First: Ada-Iuliana
Author-X-Name-Last: Popescu
Author-Name: Alin Marius Andrieș
Author-X-Name-First: Alin Marius
Author-X-Name-Last: Andrieș
Title: Corruption and Banking Stability: Evidence from Emerging Economies
Abstract: 
 This article investigates the effect of corruption on banking stability using data from banks in emerging markets. The analysis first reveals that a lower level of corruption had a positive impact on bank stability and is associated with fewer credit losses and with more moderate credit growth. It then highlights the importance of bank and country characteristics in identifying the asymmetric effects of corruption on bank stability. Our evidence suggests that stability of banks that are acting in a country that has not adopted a corporate governance code or is not a member of the European Union is affected more by the corruption. Also, in countries with higher levels of corruption banks could increase their stability if they implement rigorous corporate governance practices.
Journal: Emerging Markets Finance and Trade
Pages: 591-617
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1411257
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1411257
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:591-617




Template-Type: ReDIF-Article 1.0
Author-Name: Halit Gonenc
Author-X-Name-First: Halit
Author-X-Name-Last: Gonenc
Author-Name: Silviu Ursu
Author-X-Name-First: Silviu
Author-X-Name-Last: Ursu
Title: The Asset Growth Effect and Investor Protection in Emerging Markets: The Role of the Global Financial Crisis
Abstract: 
 The previous evidence shows that firms experience lower returns after a period with higher growth in assets. Two alternative explanations have been raised to explain this effect: mispricing and optimal investment. This study examines this effect in 26 emerging markets over the period of 2005–2013 with a special attention to the recent global financial crisis. We find a stronger asset growth effect during the crisis years relative to other years. This effect is stronger in firms with small or medium stock turnover ratio and firms operating in industries with low R&amp;D intensity. We also investigate the heterogeneity across countries and find that a stronger asset growth effect during the crisis years exists only for emerging markets with low protection of shareholders and creditors. We argue that this evidence is in line with the mispricing hypothesis.
Journal: Emerging Markets Finance and Trade
Pages: 491-507
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1411258
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1411258
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:491-507




Template-Type: ReDIF-Article 1.0
Author-Name: Angela Roman
Author-X-Name-First: Angela
Author-X-Name-Last: Roman
Author-Name: Irina Bilan
Author-X-Name-First: Irina
Author-X-Name-Last: Bilan
Author-Name: Cristina Ciumaș
Author-X-Name-First: Cristina
Author-X-Name-Last: Ciumaș
Title: What Drives the Creation of New Businesses? A Panel-Data Analysis for EU Countries
Abstract: 
 Our article aims to identify the key factors that affect the establishment of new businesses in 18 developed and emerging member countries in the European Union over the period 2003–2015. Using panel-data estimation techniques, we alternatively assess the effects of some macroeconomic, demographic, individual, and business environment-related factors on the dynamics of new firm creation, proxied by the rates of nascent entrepreneurship and entrepreneurial intentions. The results show that macroeconomic and demographic variables are the most significant determinants, followed by the individual characteristics of potential entrepreneurs and of the business environment. In addition, the sovereign debt crisis in Europe in 2010 positively affected entrepreneurship through increased support for new firms by individual country governments and the European Union.
Journal: Emerging Markets Finance and Trade
Pages: 508-536
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1412304
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1412304
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:508-536




Template-Type: ReDIF-Article 1.0
Author-Name: Georgeta Vintilă
Author-X-Name-First: Georgeta
Author-X-Name-Last: Vintilă
Author-Name: Ştefan Cristian Gherghina
Author-X-Name-First: Ştefan Cristian
Author-X-Name-Last: Gherghina
Author-Name: Radu Alin Păunescu
Author-X-Name-First: Radu Alin
Author-X-Name-Last: Păunescu
Title: Study of Effective Corporate Tax Rate and Its Influential Factors: Empirical Evidence from Emerging European Markets
Abstract: 
 This article examines the driving factors of the effective corporate tax rate (ECTR) for a sample of companies listed on five Eastern European stock exchanges (Romania, Hungary, Poland, Bulgaria, and Slovenia), covering the period 2000–2016. The empirical research covers variables regarding firm characteristics (e.g., profitability, efficiency of assets, indebtedness, liquidity, and solvency), firm-level controls, auditing fees, and the statutory rate. The estimated panel data models provide support for a positive link between the ECTR and profitability, debt, capital and inventory intensity, firm size, and statutory rate, strengthening the validity of political cost theory. Further, the negative link between market capitalization and assets growth supports the idea of political power theory.
Journal: Emerging Markets Finance and Trade
Pages: 571-590
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1418317
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1418317
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:571-590




Template-Type: ReDIF-Article 1.0
Author-Name: Dan Lupu
Author-X-Name-First: Dan
Author-X-Name-Last: Lupu
Author-Name: Mihai Bogdan Petrisor
Author-X-Name-First: Mihai Bogdan
Author-X-Name-Last: Petrisor
Author-Name: Ana Bercu
Author-X-Name-First: Ana
Author-X-Name-Last: Bercu
Author-Name: Mihaela Tofan
Author-X-Name-First: Mihaela
Author-X-Name-Last: Tofan
Title: The Impact of Public Expenditures on Economic Growth: A Case Study of Central and Eastern European Countries
Abstract: 
 This study tests the importance of various categories of public expenditure, the functional structure, and growth in the gross domestic product (GDP), using an autoregressive-distributed lag (ARDL) model. We document and study the correlation between real GDP growth and 10 different categories of public expenditure, according to their functional classification, using quarterly data for the period 1995–2015, for 10 selected Central and Eastern European countries that joined the European Union. The results of our study, like most recent literature, show that expenditures on education and health care have a positive impact on the economy, while expenditures on defense, economic affairs, general public services, and social welfare have a negative impact.
Journal: Emerging Markets Finance and Trade
Pages: 552-570
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1419127
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1419127
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:552-570




Template-Type: ReDIF-Article 1.0
Author-Name: Richard A. Ajayi
Author-X-Name-First: Richard A.
Author-X-Name-Last: Ajayi
Author-Name: Seyed Mehdian
Author-X-Name-First: Seyed
Author-X-Name-Last: Mehdian
Author-Name: Ovidiu Stoica
Author-X-Name-First: Ovidiu
Author-X-Name-Last: Stoica
Title: An Empirical Examination of the Dissemination of Equity Price Innovations Between the Emerging Markets of Nordic-Baltic States and Major Advanced Markets
Abstract: 
 : We employ three econometric models to examine the relative influence of the stock markets of the United States, the United Kingdom, France, and Germany on the stock markets of the Nordic-Baltic states. The results show that the Nordic-Baltic markets respond to price innovations from the United States, the United Kingdom, France, and Germany in diverse ways in the period 2001–2013. Response patterns for Finland, Norway, Sweden, Iceland, and Denmark are more significant to market innovations from the United States, the United Kingdom, and France, and less significant to those from Germany. German influence is more significant over Latvia, Lithuania, and Estonia than the rest of the advanced markets. While the dynamics of the Nordic-Baltic markets exhibit a dominance of own price innovation, the influence of the United States is stronger than that of France, the United Kingdom, and Germany. These results imply that investors from the Nordic States may derive greater benefits by diversifying into Germany and vice versa, rather than diversifying into the United States, the United Kingdom, or France. Investors from the Baltic States may obtain greater advantages by adopting portfolio strategies that take advantage of potentially better diversification benefits obtainable from the United States, the United Kingdom, and France rather than from Germany, and the reverse will also be in order.
Journal: Emerging Markets Finance and Trade
Pages: 642-660
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1419426
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1419426
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:642-660




Template-Type: ReDIF-Article 1.0
Author-Name: Liviu-George Maha
Author-X-Name-First: Liviu-George
Author-X-Name-Last: Maha
Author-Name: Elena Daniela Viorică
Author-X-Name-First: Elena Daniela
Author-X-Name-Last: Viorică
Author-Name: Mircea Asandului
Author-X-Name-First: Mircea
Author-X-Name-Last: Asandului
Author-Name: Andreea Maha
Author-X-Name-First: Andreea
Author-X-Name-Last: Maha
Title: Hotel Efficiency Analysis from the Customer’s Point of View in Romania: A Stochastic Production Frontier Approach
Abstract: 
 The purpose of this article is to measure the efficiency of hotel units in Romania from the customers’ point of view and to identify factors that explain the differences in efficiency between hotel units. A stochastic production frontier is estimated together with a technical inefficiency model using cross-sectional data from 622 hotel units in Romania. The results show that the average efficiency is high. However, there are significant differences between hotels in different regions and with different star ratings. The most influential factor affecting efficiency is the online visibility of a hotel unit on social media platforms and on travel planning sites. The study’s results offer insight for hotel decision-makers to be able to improve the perception of hotel efficiency by taking appropriate action to meet customer needs.
Journal: Emerging Markets Finance and Trade
Pages: 661-676
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2017.1421168
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1421168
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:661-676




Template-Type: ReDIF-Article 1.0
Author-Name: Tudorel Toader
Author-X-Name-First: Tudorel
Author-X-Name-Last: Toader
Author-Name: Mihaela Onofrei
Author-X-Name-First: Mihaela
Author-X-Name-Last: Onofrei
Author-Name: Alin Marius Andrieș
Author-X-Name-First: Alin Marius
Author-X-Name-Last: Andrieș
Title: Guest Editors' Introduction: Emerging Market Economies: Global Financial Crises and Resiliency
Journal: Emerging Markets Finance and Trade
Pages: 489-490
Issue: 3
Volume: 54
Year: 2018
Month: 2
X-DOI: 10.1080/1540496X.2018.1437314
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1437314
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:3:p:489-490




Template-Type: ReDIF-Article 1.0
Author-Name: Iikka Korhonen
Author-X-Name-First: Iikka
Author-X-Name-Last: Korhonen
Author-Name: Anatoly Peresetsky
Author-X-Name-First: Anatoly
Author-X-Name-Last: Peresetsky
Title: What Influences Stock Market Behavior in Russia and Other Emerging Countries?
Abstract: 
 We empirically test the dependence of the Russian stock market on the world stock market and world oil prices in the period 1997:10–2012:02. We also analyze countries that can be considered to be relatively similar to Russia, e.g., Poland, the Czech Republic, and South Africa. First, we apply a rolling regression to identify periods when oil prices or stock indices in the United States and Japan were important. Surprisingly, oil prices are not significant for the Russian stock market after 2006. Second, we employ a TGARCH-BEKK model to assess the degree of correlation between the markets in question, taking into account the global market stochastic trend. Correlation between markets increased between 2000 and 2012.
Journal: Emerging Markets Finance and Trade
Pages: 1210-1225
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1037200
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1037200
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Template-Type: ReDIF-Article 1.0
Author-Name: Paweł Gajewski
Author-X-Name-First: Paweł
Author-X-Name-Last: Gajewski
Title: Monetary Policy Stress in EMU: What Role for Fundamentals and Missed Forecasts?
Abstract: 
 This article reexamines the problem of monetary policy stress in the EMU. In addition to estimating the amount of stress in particular countries, we investigate its sources by breaking it down into its “fundamental” parts, covering how it is a result of country-specific macroeconomic divergences and the EMU-wide “non-fundamental” component, with special attention given to the role of missed forecasts. Our results confirm that peripheral countries were exposed to risks emerging from low interest rates while the “core” countries did not suffer from much monetary policy stress. Interestingly, the bulk of it was non-fundamental, i.e., not caused by inflation and output gap differentials between countries. We show that missed forecasts did make an important contribution to this part of the stress and were mainly responsible for pushing the interest rate below its rule-consistent level.
Journal: Emerging Markets Finance and Trade
Pages: 1226-1240
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1037204
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1037204
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:5:p:1226-1240




Template-Type: ReDIF-Article 1.0
Author-Name: Jorge Guillen
Author-X-Name-First: Jorge
Author-X-Name-Last: Guillen
Title: Does Financial Openness Matter in the Relationship Between Financial Development and Income Distribution in Latin America?
Abstract: 
 This article examines the effect of financial development on income distribution by analyzing a sample of Latin American countries according to their degree of financial openness for the 1990–2011 period. The period includes the time before and after financial liberalization for most of the countries in the region. As the literature provides inconclusive results regarding the relationship between financial development and income inequality, we aim to determine whether financial openness plays a role in this relationship. Our results provide an explanation for why some countries regardless of their degree of financial openness cannot achieve a reduction in income inequality.
Journal: Emerging Markets Finance and Trade
Pages: 1145-1155
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1046337
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1046337
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:5:p:1145-1155




Template-Type: ReDIF-Article 1.0
Author-Name: Yasin Mimir
Author-X-Name-First: Yasin
Author-X-Name-Last: Mimir
Title: On International Consumption Risk Sharing, Financial Integration and Financial Development
Abstract: 
 This article investigates the empirical link between international consumption risk sharing, financial integration, and financial development for a group of twenty-nine developed and developing countries in the G7, the Euro area, and the OECD. Estimation results indicate that (1) risk sharing in the Euro area is higher than those in the G-7 and the OECD, and (2) a higher degree of risk sharing is associated with a greater degree of financial integration and a lower level of financial development. These results suggest that more financially integrated countries might be better able to insure themselves against idiosyncratic income shocks and countries with more developed financial markets might tend to engage in less consumption risk sharing with other countries thanks to their own sophisticated financial markets. Holding financial integration and financial development equal, countries in the Euro area engage in significantly more risk sharing than the ones in the G7 and the OECD.
Journal: Emerging Markets Finance and Trade
Pages: 1241-1258
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1050927
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1050927
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Template-Type: ReDIF-Article 1.0
Author-Name: Dennis Essers
Author-X-Name-First: Dennis
Author-X-Name-Last: Essers
Author-Name: Hans J. Blommestein
Author-X-Name-First: Hans J.
Author-X-Name-Last: Blommestein
Author-Name: Danny Cassimon
Author-X-Name-First: Danny
Author-X-Name-Last: Cassimon
Author-Name: Perla Ibarlucea Flores
Author-X-Name-First: Perla Ibarlucea
Author-X-Name-Last: Flores
Title: Local Currency Bond Market Development in Sub-Saharan Africa: A Stock-Taking Exercise and Analysis of Key Drivers
Abstract: 
 This article studies the current state and drivers of government local currency bond market (LCBM) development in Sub-Saharan Africa. We first show that, increasingly, African governments issue fixed-rate local currency bonds with tenors of ten years and more on a regular basis. However, African LCBMs are also often marked by illiquidity, very few corporate securities, and narrow, bank-dominated investor bases. Second, we present an econometric analysis of the drivers of African government LCBMs based on a new high-quality, OECD-compiled panel dataset. LCBM capitalization is found to be correlated negatively with governments’ fiscal balance and inflation, and positively with common law legal origins, institutional quality and democracy.
Journal: Emerging Markets Finance and Trade
Pages: 1167-1194
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1073987
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1073987
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Template-Type: ReDIF-Article 1.0
Author-Name: Sammo Kang
Author-X-Name-First: Sammo
Author-X-Name-Last: Kang
Author-Name: Sejin Min
Author-X-Name-First: Sejin
Author-X-Name-Last: Min
Title: Effect of the Sovereign Credit Ratings in East Asia Countries: Evidence from Panel Vector Autoregression
Abstract: 
 We study the effect of the sovereign credit ratings on the economies of seven East Asian countries, applying panel vector autoregression (VAR). We find that rating has less effect than outlook of rating on the credit default swap (CDS) spreads, the stock indexes, and the GDP growth rates. Rating upgrade and positive outlook have stronger effects than rating downgrade and negative outlook, and the effects of positive outlook and rating are greater after the financial crisis. There is evidence of contagion in that the economic variables of a country seem to have been affected by the outlooks of the other countries.
Journal: Emerging Markets Finance and Trade
Pages: 1121-1144
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1103122
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103122
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Template-Type: ReDIF-Article 1.0
Author-Name: Thai-Ha Le
Author-X-Name-First: Thai-Ha
Author-X-Name-Last: Le
Author-Name: Jungsuk Kim
Author-X-Name-First: Jungsuk
Author-X-Name-Last: Kim
Author-Name: Minsoo Lee
Author-X-Name-First: Minsoo
Author-X-Name-Last: Lee
Title: Institutional Quality, Trade Openness, and Financial Sector Development in Asia: An Empirical Investigation
Abstract: 
 We examine the determinants of financial sector development in Asia and the Pacific from 1995 to 2011. In terms of economic growth, over the last twenty years the region has outperformed other parts of the world and has also experienced major developments in its traditionally bank-dominated financial system since the 1997 Asian financial crisis. We apply the dynamic generalized method of moments to a panel data set of twenty-six economies in the region. The estimations were done for the whole panel as well as for subpanels of developed and developing economies. We find that better governance and institutional quality foster financial sector development in developing economies while economic growth and trade openness are key determinants of financial depth in developed economies.
Journal: Emerging Markets Finance and Trade
Pages: 1047-1059
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1103138
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103138
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Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dekle
Author-X-Name-First: Robert
Author-X-Name-Last: Dekle
Author-Name: Madhavi Pundit
Author-X-Name-First: Madhavi
Author-X-Name-Last: Pundit
Title: The Recent Convergence of Financial Development in Asia
Abstract: 
 We construct an index of financial development for twenty-three Asian economies based on sub-indices of access, depth, and efficiency of financial institutions and markets and find evidence that economies with weaker financial systems are catching up to the Asian benchmark economies, namely Hong Kong, China; Japan; the Republic of Korea; and Singapore. Gross domestic product (GDP) per capita, aggregate GDP, and mobile subscriptions all increase the growth rate of financial development in Asian economies while institutional factors have insignificant or ambiguous effects. We also evaluate the relative importance of the sub-indices in delivering high economic growth, low volatility, and greater financial access.
Journal: Emerging Markets Finance and Trade
Pages: 1106-1120
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1103142
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103142
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Template-Type: ReDIF-Article 1.0
Author-Name: Gemma B. Estrada
Author-X-Name-First: Gemma B.
Author-X-Name-Last: Estrada
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Arief Ramayandi
Author-X-Name-First: Arief
Author-X-Name-Last: Ramayandi
Title: Taper Tantrum and Emerging Equity Market Slumps
Abstract: 
 In the post-global financial crisis period, the central banks of the advanced economies pursued unconventional monetary policies, such as the United States (U.S.) Federal Reserve’s quantitative easing (QE). Those policies and their unwinding may significantly affect cross-border capital flows and thus destabilize the financial systems of emerging markets. For example, emerging markets experienced substantial financial instability during the taper tantrum triggered by U.S. Federal Reserve Chairman Ben Bernanke’s May 2013 announcement of the potential unwinding of QE. In this article, we examine the spillovers from the taper tantrum on emerging markets more rigorously by using econometric analysis to empirically assess the effect on equity markets in emerging markets. Our central finding that virtually all emerging-market equity markets were affected by the taper tantrum highlights the need for emerging-market authorities to remain vigilant about the effects of advanced-economy monetary policies on their financial stability.
Journal: Emerging Markets Finance and Trade
Pages: 1060-1071
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1105596
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1105596
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Template-Type: ReDIF-Article 1.0
Author-Name: Jinzheng Ren
Author-X-Name-First: Jinzheng
Author-X-Name-Last: Ren
Author-Name: H. Holly Wang
Author-X-Name-First: H. Holly
Author-X-Name-Last: Wang
Title: Rural Homeowners’ Willingness to Buy Flood Insurance
Abstract: 
 Houses are the primary asset for Chinese rural families. However, dramatically increasing frequency and severity of floods have caused significant loss in rural houses recently, and there is generally no insurance available. In this article, we investigate the rural residents’ willingness to buy insurance according to a national survey. The results show that there exists a strong need for flood insurance in rural China, and the influencing factors in the insurance demand include the recent frequency of floods, income, and past experience with lack of flood insurance. Policy suggestions for flood insurance are provided for the insurance industry and Chinese government.
Journal: Emerging Markets Finance and Trade
Pages: 1156-1166
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2015.1134867
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1134867
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenhao Tan
Author-X-Name-First: Wenhao
Author-X-Name-Last: Tan
Author-Name: Zhenpeng Ma
Author-X-Name-First: Zhenpeng
Author-X-Name-Last: Ma
Title: Ownership, Internal Capital Market, and Financing Costs
Abstract: 
 The development of China’s financial markets lags behind its economic development, which has set constraints for firms to obtain external finance. In practice, Chinese firms employ an internal capital market to mitigate financial constraints. We provide a case study and empirical analysis to investigate both the determinants for the establishment of an internal capital market and its economic consequence. We find that private enterprises (PEs) have greater motivation to establish an internal capital market and to allocate capital by the market-oriented way. In addition, we find that the internal capital market can help firms reduce financing costs, especially in PEs.
Journal: Emerging Markets Finance and Trade
Pages: 1259-1278
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2016.1138815
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1138815
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:5:p:1259-1278




Template-Type: ReDIF-Article 1.0
Author-Name: Shaoyu Li
Author-X-Name-First: Shaoyu
Author-X-Name-Last: Li
Author-Name: Lijia Wei
Author-X-Name-First: Lijia
Author-X-Name-Last: Wei
Author-Name: Zehua Huang
Author-X-Name-First: Zehua
Author-X-Name-Last: Huang
Title: Value-at-Risk Forecasting of Chinese Stock Index and Index Future Under Jumps, Permanent Component, and Asymmetric Information
Abstract: 
 This article investigates the performance of time series models considering the jumps, permanent component of volatility, and asymmetric information in predicting value-at-risk (VaR). We use evaluation statistics including size and variability, accuracy, and efficiency to determine some suitable VaR measures for the Chinese stock index and its futures. The results reveal that models with jumps can provide VaR series that are less average conservative and have higher variability. Furthermore, additional considering the permanent component of volatility and asymmetric effect can induce more accurate and efficient risk measure in the long and short positions of the stock index and its futures.
Journal: Emerging Markets Finance and Trade
Pages: 1072-1091
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2016.1142218
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1142218
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:5:p:1072-1091




Template-Type: ReDIF-Article 1.0
Author-Name: Shiqing Xie
Author-X-Name-First: Shiqing
Author-X-Name-Last: Xie
Author-Name: Qiuying Qu
Author-X-Name-First: Qiuying
Author-X-Name-Last: Qu
Title: The Three-Factor Model and Size and Value Premiums in China’s Stock Market
Abstract: 
 Using monthly data from China’s Shanghai Stock Exchange (SSE) A-share market between 2005 and 2012, this article performs an empirical study on the applicability of the three-factor model to China’s stock market. After testing twenty-five size-BE/ME stock portfolios and four stock sector portfolios, we found that the three-factor model, adjusted for the unique features of China’s stock market, generally fits the SSE A-share market well. The results show that size and value premiums are significant in China’s stock market, although there exist modest differences among industrial sectors. In addition, our empirical results are robust to factor sorting and construction methods.
Journal: Emerging Markets Finance and Trade
Pages: 1092-1105
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2016.1143250
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1143250
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:5:p:1092-1105




Template-Type: ReDIF-Article 1.0
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Author-Name: Won Joong Kim
Author-X-Name-First: Won Joong
Author-X-Name-Last: Kim
Author-Name: Soodabeh Sarafrazi
Author-X-Name-First: Soodabeh
Author-X-Name-Last: Sarafrazi
Title: Sources of Fluctuations in Islamic, U.S., EU, and Asia Equity Markets: The Roles of Economic Uncertainty, Interest Rates, and Stock Indexes
Abstract: 
 This article analyzes the economic and financial sources of fluctuations among the U.S. federal funds rates, the U.S. economic policy uncertainty, and the indices of the U.S., European, Asian, and Islamic stock markets. The impulse response analysis shows that the U.S. economic policy uncertainty shocks have significant and negative effects unanimously on the U.S., European, Asian, and Islamic stock markets. A contractionary monetary policy shock, in terms of a higher federal funds rate, has also a statistically significant and negative effect on all of the stock markets. The variance decomposition results indicate that the Islamic stock index is mainly affected by the U.S. stock index shock, thus negating its dichotomy hypothesis. The U.S. economic uncertainty shock explains an important portion of fluctuations for all four stock indices. The degree of synchronization between the EU stock market and other markets has weakened after the U.S. financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 1195-1209
Issue: 5
Volume: 52
Year: 2016
Month: 5
X-DOI: 10.1080/1540496X.2014.998561
File-URL: http://hdl.handle.net/10.1080/1540496X.2014.998561
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Template-Type: ReDIF-Article 1.0
Author-Name: Lingyan Suo
Author-X-Name-First: Lingyan
Author-X-Name-Last: Suo
Author-Name: Ruiyun Wanyan
Author-X-Name-First: Ruiyun
Author-X-Name-Last: Wanyan
Title: Why the Development of Health Insurance Is Regionally Imbalanced: Evidence from China
Abstract: 
 As China adopted an imbalanced development strategy to obtain rapid economic growth, it is getting more and more urgent to find out a feasible way to balanced development of social safety network. This study measures the degree of regional disparities in China’s health insurance industry and explores the rationales by a thorough examination of health insurance purchasing behavior. An empirical analysis is conducted, based on a panel data of 31 provinces from 2004 to 2014, to test the hypothesis. We find that the regional disparities would be significantly affected by the variables including age structure, education, income, availability of health resources, density of population, and substitutes.
Journal: Emerging Markets Finance and Trade
Pages: 1301-1317
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2016.1190705
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1190705
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:6:p:1301-1317




Template-Type: ReDIF-Article 1.0
Author-Name: Hui Zhang
Author-X-Name-First: Hui
Author-X-Name-Last: Zhang
Author-Name: Hao Huang
Author-X-Name-First: Hao
Author-X-Name-Last: Huang
Title: An Empirical Study of the Asset Price Channel of Monetary Policy Transmission in China
Abstract: 
 By testing the impact of monetary policy on the bond market and the impact of the bond market on the real macro economy using different empirical methods, this article examines the performance of the bond price transmission mechanism in China’s monetary policy. Empirical studies show that monetary policy has power over bond yield fluctuations, while the bond market has a relatively limited impact on the real macro economy. Short-term bond yields have relatively significant transmission effects on some output variables, such as consumption, investment, and the consumer price index, while the influence of long-term bonds is not significant.
Journal: Emerging Markets Finance and Trade
Pages: 1278-1288
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2016.1230493
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1230493
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Template-Type: ReDIF-Article 1.0
Author-Name: Evelyn S. Devadason
Author-X-Name-First: Evelyn S.
Author-X-Name-Last: Devadason
Author-Name: V. G. R. Chandran
Author-X-Name-First: V. G. R.
Author-X-Name-Last: Chandran
Author-Name: Shujaat Mubarik
Author-X-Name-First: Shujaat
Author-X-Name-Last: Mubarik
Title: Sino–LAC Ties: Trade Relationships, Trade Potentials, and Asymmetric Dependency
Abstract: 
 Previous studies have emphasized the asymmetry in the Sino–LAC (Latin America and the Caribbean) partnership, solely based on their trade exchanges. This article extends the boundaries of understanding structural asymmetries in the Sino–LAC trade, by considering unequal opportunities in this partnership. The latter is accounted for by deriving two-way export potentials from the Sino–LAC partnership. On average, the gravity of LAC’s trade promise with China appears to lie in continuing to grow the level of exports in agriculture. The export potentials observed for LAC to China, instead of China to LAC, not only imply untapped possibilities for the former relative to the latter connection, but indicate their disparate opportunities for further integration.
Journal: Emerging Markets Finance and Trade
Pages: 1262-1277
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2016.1233103
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1233103
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:6:p:1262-1277




Template-Type: ReDIF-Article 1.0
Author-Name: Ren Wang
Author-X-Name-First: Ren
Author-X-Name-Last: Wang
Author-Name: Hongqi Ma
Author-X-Name-First: Hongqi
Author-X-Name-Last: Ma
Title: Regional Differences and Threshold Effects of Capital-Skill Complementarity in China
Abstract: 
 On the framework of Chris and Viera (2005), this article studies the capital-skill complementarity and its regional differences of China, firstly. It is shown that there exists evidence in favor of capital-skill complementarity on the full sample of China. When we test its regional differences, we find no evidence in favor of capital-skill complementarity in the central and western regions, but strong evidence in the eastern region. Further study finds that, the “capital-skill complementarity” exists in the threshold effect. Thus, we argue that the original differences of capital-skill complementarity are relative to the economic development. These results reveal that the low-income region (such as the central and western regions) tends to allocate their capital to complement their abundance of unskilled labor but not skilled labor, but the middle-income region (such as the eastern region) shows just the opposite trend. In short, this article provides some new evidences for the nonlinearity of capital-skill complementarity and supports the viewpoint on “transitory phenomenon” of capital-skill complementarity.
Journal: Emerging Markets Finance and Trade
Pages: 1425-1441
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2016.1244511
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1244511
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Template-Type: ReDIF-Article 1.0
Author-Name: Mengyun Liu
Author-X-Name-First: Mengyun
Author-X-Name-Last: Liu
Author-Name: Xuezheng Qin
Author-X-Name-First: Xuezheng
Author-X-Name-Last: Qin
Author-Name: Jay Pan
Author-X-Name-First: Jay
Author-X-Name-Last: Pan
Title: Does Medical Equipment Expansion Lead to More Diagnostic Services? Evidence from China’s Sichuan Province
Abstract: 
 A major goal of China’s healthcare reform is to control the increasing healthcare spending, much of which can be attributed to the overuse of diagnostic tests and has been relatively less studied in the literature. This article analyzes the correlation between medical equipment expansion and the increase in diagnostic test expenditure in China, using Sichuan Province as an example. County-level data aggregated from hospitals’ annual reports in Sichuan Province from 2008 to 2012 were used. The results show a positive correlation between the expansion of medical equipment and the increase in diagnostic test expenditure. Our study provides implications on reforming China’s healthcare delivery system and medical equipment regulation policies.
Journal: Emerging Markets Finance and Trade
Pages: 1289-1300
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2016.1247689
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1247689
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Template-Type: ReDIF-Article 1.0
Author-Name: Wei Cui
Author-X-Name-First: Wei
Author-X-Name-Last: Cui
Title: Social Trust, Institution, and Economic Growth: Evidence from China
Abstract: 
 Recent research has demonstrated the important role of social trust in economic growth. As a form of informal institution, social trust and formal institution are inextricable and intrinsically related. This article aims to investigate the relationship between social trust and institution, and their combined effects on economic growth. In an empirical investigation of cross-provincial data in the period 2001–2009 in China, our estimates suggest that the increase in social trust significantly promotes economic growth. The improvement of formal institution is also beneficial to economic growth. The effect of social trust on economic growth depends on the institution level, and this effect weakens with institutional strength.
Journal: Emerging Markets Finance and Trade
Pages: 1243-1261
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2016.1264299
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1264299
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Template-Type: ReDIF-Article 1.0
Author-Name: Duoduo Tan
Author-X-Name-First: Duoduo
Author-X-Name-Last: Tan
Author-Name: Cheng Cheng
Author-X-Name-First: Cheng
Author-X-Name-Last: Cheng
Author-Name: Mujun Lei
Author-X-Name-First: Mujun
Author-X-Name-Last: Lei
Author-Name: Yucheng Zhao
Author-X-Name-First: Yucheng
Author-X-Name-Last: Zhao
Title: Spatial Distributions and Determinants of Regional Innovation in China: Evidence from Chinese Metropolitan Data
Abstract: 
 This article, using a panel dataset covering patents granted in 336 cities and the economic and employment data of 282 cities in China, presents an preliminary exploratory spatial data analysis by Gini coefficient and Moran’s I analysis, and a confirmatory spatial data analysis by spatial Durbin model. We first investigate China regional innovative activities by three different types of patents at metropolitan-level data and make several key findings. First, the spatial autocorrelation of invention patent is insignificant from 2001 to 2013, whereas the coefficients of spatial autocorrelation of utility patents and design patents are continuingly rising across years. Second, the innovation clusters are vanishing in China’s western and northeastern cities, whereas booming in the periphery cities of Shanghai and Guangzhou during 2000–2015. Third, the cities surrounded by high level of GDP output and R&amp;D expenditure neighbors will more likely perform better in innovative activities. By employing smaller territorial units, we provide more specific details about the regional distribution and the dynamic interaction of innovative activities across cities in China.
Journal: Emerging Markets Finance and Trade
Pages: 1442-1454
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2017.1283215
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1283215
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Template-Type: ReDIF-Article 1.0
Author-Name: Jinxian Li
Author-X-Name-First: Jinxian
Author-X-Name-Last: Li
Author-Name: Xiaojian Liu
Author-X-Name-First: Xiaojian
Author-X-Name-Last: Liu
Title: Trust Beneficiary Protection, Ownership Structure, and Risk Taking of Trust Corporations: Evidence from China
Abstract: 
 In this article, the influence of trust beneficiary protection on the risk-taking level of trust companies is examined by using a sample of 45 trust companies from 2006 to 2012. Quantified assessment indicators are established to evaluate the protection of trust beneficiaries. The results show that concentrated ownership reduces risk taking in state-controlled trust companies. And in regions with better legal systems, the inhibition of beneficiary protection over trust company risk taking is stronger. Additionally, further analysis shows that risk taking is beneficial to the performance of trust companies, and inertia is observed in trust company risk taking.
Journal: Emerging Markets Finance and Trade
Pages: 1318-1336
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2017.1284658
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1284658
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Template-Type: ReDIF-Article 1.0
Author-Name: Hai Yue Liu
Author-X-Name-First: Hai Yue
Author-X-Name-Last: Liu
Author-Name: Ying Kai Tang
Author-X-Name-First: Ying Kai
Author-X-Name-Last: Tang
Author-Name: Xiao Lan Chen
Author-X-Name-First: Xiao Lan
Author-X-Name-Last: Chen
Author-Name: Joanna Poznanska
Author-X-Name-First: Joanna
Author-X-Name-Last: Poznanska
Title: The Determinants of Chinese Outward FDI in Countries Along “One Belt One Road”
Abstract: 
 This article identifies the main determinants of Chinese outward FDI (OFDI) activities with a focus on One Belt One Road (OBOR) countries during the period 2003–2015. We established a panel dataset including 93 countries (49 OBOR countries within and 44 countries outside the OBOR). The results show that Chinese OFDI in OBOR countries are highly sensitive to exchange rate (ER) level, market potential, openness, and infrastructure facilities of host countries. The determinants of Chinese OFDI in OBOR countries differ from those outside.
Journal: Emerging Markets Finance and Trade
Pages: 1374-1387
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2017.1295843
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1295843
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaobo Shen
Author-X-Name-First: Xiaobo
Author-X-Name-Last: Shen
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Title: Abatement Efforts, Technological Progress, and Pollution Control in China’s Industrial Sector
Abstract: 
 This article examines the roles of abatement efforts and the technological progress in the pollution control of China’s industrial sector. Based on StoNED model, as a measurement of the technological progress, the total factor productivity (TFP) of China’s industry is estimated by using panel input−output data of the industrial sector at provincial level, and then, the impact of abatement efforts and TFP on the emissions of SO2 and COD in China’s industry is investigated. The results show that (i) there is too much statistical noise in input−output data of China’s industry, and it could lead to an underestimate of TFP if all deviations from the production frontier are attributed to inefficiency; (ii) improving TFP has greater impact on the reduction of the industrial SO2 and COD than increasing abatement efforts does, although improving TFP does not exert statistically significant effect on COD emission.
Journal: Emerging Markets Finance and Trade
Pages: 1337-1351
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2017.1295845
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1295845
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Template-Type: ReDIF-Article 1.0
Author-Name: Kai Shi
Author-X-Name-First: Kai
Author-X-Name-Last: Shi
Author-Name: Li Nie
Author-X-Name-First: Li
Author-X-Name-Last: Nie
Title: Did China Effectively Manage Its Foreign Exchange Reserves? Revisiting the Currency Composition Change
Abstract: 
 To estimate the currency composition of China’s foreign exchange reserves and assess its effectiveness of management, the constrained least square method and variance sensitive analysis are utilized, respectively. Based on portfolio accounting identities, the change of foreign exchange reserves was decomposed into the net purchase change and the non-purchase change. The newly constructed non-purchase change was used to estimate the latent currency composition. Empirical results show that by the end of 2015Q1, China held about 63.6% of its reserves in the U.S. dollar, 19.6% in the euro, 3.09% in the Japanese yen, 4.89% in the pound sterling, 2.22% in the Canadian dollar, 2.03% in the Australian dollar, and 0.09% in the Swiss franc. Although the currency composition kept relatively stable, more attention had been paid to the emerging international currencies. China decreased the U.S. dollar share during the subprime crisis, while resorted to the portfolio rebalance strategy since 2011. The euro share and the pound sterling share declined during the European sovereign debt crisis. The first derivative of the U.S. dollar was positive while those of other currencies were negative before 2014Q3, and vice versa after 2014Q4. In general, the currency composition management of China’s foreign exchange reserves was effective.
Journal: Emerging Markets Finance and Trade
Pages: 1352-1373
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2017.1300771
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1300771
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Template-Type: ReDIF-Article 1.0
Author-Name: Chan-Guk Huh
Author-X-Name-First: Chan-Guk
Author-X-Name-Last: Huh
Author-Name: Jie Wu
Author-X-Name-First: Jie
Author-X-Name-Last: Wu
Title: Do Hallyu (Korean Wave) Exports Promote Korea’s Consumer Goods Exports?
Abstract: 
 This study analyzes the link between international trade in tangible consumption goods and services, and intangible cultural goods using panel data of Korea’s exports to 40 countries of three types of consumer goods and TV content since the mid-2000s. The growing popularity of Korean TV dramas (the stand-in for the Korean wave or “Hallyu” phenomenon) has not been confined to the East Asian region with interest spreading much further afield. This study estimates a one-directional gravity model that uses various forms of consumer goods exports as well as inbound visitors to Korea as dependent variables and a set of explanatory variables plus the Korean broadcasting content exports using the Poisson pseudo-maximum likelihood procedure. From our analysis, we find the Hallyu exports to have a positive effect on consumer good exports and inbound visitor flows in general, but the strength of the influence seems to be weakest in the case of durable consumer good exports.
Journal: Emerging Markets Finance and Trade
Pages: 1388-1404
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2017.1313161
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1313161
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Template-Type: ReDIF-Article 1.0
Author-Name: Huajie Liang
Author-X-Name-First: Huajie
Author-X-Name-Last: Liang
Author-Name: Renzeng Wang
Author-X-Name-First: Renzeng
Author-X-Name-Last: Wang
Title: Decisions Made by the Controlling Shareholder Under Financial Crisis
Abstract: 
 We employ a sample of 12,200 observations from 2,321 companies listed on the Shanghai and Shenzhen Stock Exchanges in China between 2005 and 2013 to test five hypotheses. The empirical results show that the cost of tunneling and ownership structure play important roles in restraining incentives to expropriate firms. Financial crisis will reinforce the incentive to propping rather than tunneling with higher ownership concentration. Moreover, controlling shareholders of state-owned enterprises show a stronger motivation to prop up during crisis periods than do those of non-state-owned enterprises. The results indicate that both an entrenchment effect and a convergence-of-interest effect actually exist and vary according to ownership structure and macroeconomic circumstances.
Journal: Emerging Markets Finance and Trade
Pages: 1405-1424
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2017.1321538
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1321538
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Template-Type: ReDIF-Article 1.0
Author-Name: Qixiang Sun
Author-X-Name-First: Qixiang
Author-X-Name-Last: Sun
Author-Name: Xuzheng Qin
Author-X-Name-First: Xuzheng
Author-X-Name-Last: Qin
Title: Institutions, Reforms, and Economic Development
Journal: Emerging Markets Finance and Trade
Pages: 1241-1242
Issue: 6
Volume: 53
Year: 2017
Month: 6
X-DOI: 10.1080/1540496X.2017.1323515
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1323515
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Template-Type: ReDIF-Article 1.0
Author-Name: Jianjun Li
Author-X-Name-First: Jianjun
Author-X-Name-Last: Li
Author-Name: Zhigang Huang
Author-X-Name-First: Zhigang
Author-X-Name-Last: Huang
Title: On the Way to the Silk Road: Trade, Investment, and Finance in Emerging Economies
Journal: Emerging Markets Finance and Trade
Pages: 3131-3133
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2019.1644104
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1644104
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Template-Type: ReDIF-Article 1.0
Author-Name: Changyun Wang
Author-X-Name-First: Changyun
Author-X-Name-Last: Wang
Author-Name: Zonglong Li
Author-X-Name-First: Zonglong
Author-X-Name-Last: Li
Author-Name: Teng Zhong
Author-X-Name-First: Teng
Author-X-Name-Last: Zhong
Title: Social Trust, Rule of Law, and Economic Exchange: Evidence from China and Its Major Trading Partners
Abstract: 
 Using cross-country panel data and employing the instrumental variable generalized method of moments (GMM) method, this article examines the effect of social trust on economic exchange between China and its major trading partners over the period 2005–2013. Social trust significantly increases bilateral trade and foreign direct investment (FDI) between China and its partners, and this effect is much stronger in nonmember countries of the Organization for Economic Cooperation and Development (OECD) than OECD member countries. Further exploration suggests that the heterogeneity could be explained by the substitution relationship between social trust and the rule of law: social trust matters more in countries where the rule of law is weaker. We also .find that the impact of trust on trade and FDI is weaker in countries that have greater language similarity to China, are adjacent to China, or are common-law-origin countries. Based on these results, in implementing the Belt and Road Initiative, the Chinese government and companies should not only focus on each country’s legal norms but also attach importance to the role of social capital in international economic exchange.
Journal: Emerging Markets Finance and Trade
Pages: 3134-3150
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2019.1572505
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1572505
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Template-Type: ReDIF-Article 1.0
Author-Name: Da Huo
Author-X-Name-First: Da
Author-X-Name-Last: Huo
Author-Name: Rihui Ouyang
Author-X-Name-First: Rihui
Author-X-Name-Last: Ouyang
Author-Name: Baowen Sun
Author-X-Name-First: Baowen
Author-X-Name-Last: Sun
Author-Name: Liping Wei
Author-X-Name-First: Liping
Author-X-Name-Last: Wei
Author-Name: Ken Hung
Author-X-Name-First: Ken
Author-X-Name-Last: Hung
Author-Name: Haibo Wang
Author-X-Name-First: Haibo
Author-X-Name-Last: Wang
Title: Complex Network of Aviation E-Services in the Belt and Road Initiative: A Heuristic Study of Small Data based on Block Modeling
Abstract: 
 The aviation e-service system is an important part of support for business communication in regions covered by Belt and Road initiative. In exploring the role of airline companies in this system, we examine the structure of the network, which consists of airlines interconnections based on small data of individual attributes of aviation companies in aviation e-services, and study these interconnections across different groups using block modeling. The heuristic solution of airline companies in development of international communication and cooperation is further discussed. Among our policy implications for global managers, we suggest the enhancement of cross-regional cooperation among airlines.
Journal: Emerging Markets Finance and Trade
Pages: 3151-3165
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2018.1564275
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1564275
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhaohui Chong
Author-X-Name-First: Zhaohui
Author-X-Name-Last: Chong
Author-Name: Chenglin Qin
Author-X-Name-First: Chenglin
Author-X-Name-Last: Qin
Author-Name: Su Pan
Author-X-Name-First: Su
Author-X-Name-Last: Pan
Title: The Evolution of the Belt and Road Trade Network and Its Determinant Factors
Abstract: 
 This study reveals the evolution of the Belt and Road trade network, and discusses the determinant factors of trade relationships by employing network analysis methods. Using 65 countries’ trade flow data in 2012, 2014, and 2016, the network indices show that the Belt and Road initiative has improved trade network’s connectivity significantly. The results of blockmodels show that the trade network can be partitioned into four blocks, including “Dominators,” “Brokers,” “Generators,” and “Receivers.” Furthermore, the spatial proximity, cultural differences, trade agreements, economic distance, and trade facilitations have significant impacts on the formation of trade network according to the QAP model.
Journal: Emerging Markets Finance and Trade
Pages: 3166-3177
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2018.1513836
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1513836
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Template-Type: ReDIF-Article 1.0
Author-Name: Hongyi Chen
Author-X-Name-First: Hongyi
Author-X-Name-Last: Chen
Author-Name: Tianjiao Jiang
Author-X-Name-First: Tianjiao
Author-X-Name-Last: Jiang
Author-Name: Chen Lin
Author-X-Name-First: Chen
Author-X-Name-Last: Lin
Author-Name: Hui Zhao
Author-X-Name-First: Hui
Author-X-Name-Last: Zhao
Title: Quantifying Financing Needs in the Belt and Road Countries
Abstract: 
 This paper provides a thorough analysis to quantify the financing needs in the Belt and Road countries during 2009 and 2014. By examining financial constraints using financial data of firms in the Belt and Road countries, this study constructs a Financing Needs Index for Belt and Road countries and highlights the characteristics of financing needs across 36 countries and 6 years. By further incorporating information from World Bank Enterprise Surveys, this paper builds an Augmented Financing Needs Index for 56 Belt and Road countries. The findings of this paper provide important policy implications by showing that countries can improve their financial liberalization and institutional environment to address the financing needs of their indigenous firms and thus achieve economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 3178-3210
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2019.1605593
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1605593
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhenghui Li
Author-X-Name-First: Zhenghui
Author-X-Name-Last: Li
Author-Name: Zhehao Huang
Author-X-Name-First: Zhehao
Author-X-Name-Last: Huang
Author-Name: Hao Dong
Author-X-Name-First: Hao
Author-X-Name-Last: Dong
Title: The Influential Factors on Outward Foreign Direct Investment: Evidence from the “The Belt and Road”
Abstract: 
 In this article, we investigate the nonlinear impact on outward foreign direct investment (OFDI) using panel smooth transition regression (PSTR) model with the sample of 12 countries along “The Belt and Road Initiative” in the period of 2010–2015. We find that both overall economic freedom (EF), the interaction of EF and institutional instance, bilateral trade, GDP, and patent significantly influence OFDI. We also demonstrate that EF and economic development exert the inverted “U” effect on OFDI in the different regime. Accordingly, policies specifically designed to increase development of OFDI should be required to address the negative effects considering the differences of EF and economic development.
Journal: Emerging Markets Finance and Trade
Pages: 3211-3226
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2019.1569512
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1569512
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Template-Type: ReDIF-Article 1.0
Author-Name: Yaowen Chen
Author-X-Name-First: Yaowen
Author-X-Name-Last: Chen
Author-Name: Zuojun Fan
Author-X-Name-First: Zuojun
Author-X-Name-Last: Fan
Author-Name: Jie Zhang
Author-X-Name-First: Jie
Author-X-Name-Last: Zhang
Author-Name: Min Mo
Author-X-Name-First: Min
Author-X-Name-Last: Mo
Title: Does the Connectivity of the Belt and Road Initiative Contribute to the Economic Growth of the Belt and Road Countries?
Abstract: 
 Since the Belt and Road Initiative (BRI) has been implemented for five years, it is time to ask whether the BRI contributes to Belt and Road (BR) countries’ economic growth, and how are the five elements of connectivity implemented between China and its partner countries since the BRI was proposed. This study focuses on the development of the five elements of connectivity between China and the BR countries from 2008 to 2017 using a comprehensive connectivity index extracted from principle component analysis, and then investigating if the connectivity has contributed to the economic growth of the BR countries with quantitative analysis of the fixed effect econometrical model. It is found that Russia, South Korea, and Singapore presented the top three levels of connectivity with China with regard to the overall connectivity index, varying from 1.4 to 2.4. Madagascar and Panama have the lowest level of connectivity with China, with values of −0.8 to −1.1. The result of the fixed effect model shows that the connectivity of the BR countries with China contributes to their economic growth. This provides quantitative evidence that the connectivity between BR countries and China has a significant influence on the economic growth of those countries.
Journal: Emerging Markets Finance and Trade
Pages: 3227-3240
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2019.1643315
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1643315
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Template-Type: ReDIF-Article 1.0
Author-Name: Naijing Huang
Author-X-Name-First: Naijing
Author-X-Name-Last: Huang
Author-Name: Zhigang Huang
Author-X-Name-First: Zhigang
Author-X-Name-Last: Huang
Author-Name: Weijia Wang
Author-X-Name-First: Weijia
Author-X-Name-Last: Wang
Title: The Dynamic Extreme Co-Movement between Chinese Stock Market and Global Stock Markets
Abstract: 
 We use time-varying Symmetrized Joe-Clayton Copula model to study the extreme co-movement (boom or crash together) between the Chinese stock market and major stock markets in the world from 2007 to 2017, including developed markets and stock markets on “Belt and Road Initiative” (hereafter B.R.I.). We find that the extreme co-movement probability between Chinese market and “Belt and Road Initiative” markets is higher than developed markets at both tails. Then we study important “real” and “non-fundamental” factors affecting the excess co-movement probability, including bilateral trade openness, financial integration, and economic policy uncertainty. The results of panel regression analysis show that: the bilateral financial integration has significant effects over the lower tail dependence between Chinese and developed markets, but does not affect the extreme co-movement between Chinese and B.R.I. markets. And the bilateral trade openness is an important factor for the extreme co-movement at both tail between Chinese and global markets. The economic policy uncertainty index, especially China’s economic policy uncertainty, plays a key role in the extreme co-movement between Chinese and developed markets at both tails. However, it has sizable effects only at the upper tail co-movement between Chinese and B.R.I. markets.
Journal: Emerging Markets Finance and Trade
Pages: 3241-3257
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2018.1529559
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1529559
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Template-Type: ReDIF-Article 1.0
Author-Name: Xun Han
Author-X-Name-First: Xun
Author-X-Name-Last: Han
Author-Name: Sara Hus
Author-X-Name-First: Sara
Author-X-Name-Last: Hus
Author-Name: Jianjun Li
Author-X-Name-First: Jianjun
Author-X-Name-Last: Li
Title: The Impact of Enterprises’ Shadow Banking Activities on Business Performance: A Test Based on Mediator Effect of Investment Scale and Investment Efficiency
Abstract: 
 In recent years, China’s financial sector has gradually been alienated from the real sector, allowing financial innovation and regulatory arbitrage add their own value to finance. High interest rates in the financial industry have led to changes in the real sector, revealing a trend toward “financialization” and “quasi-financialization”; a typical example of this includes nonfinancial enterprises’ shadow banking activities. In this article, we use annual data from 2004 to 2015 of A share listed companies on the Shanghai and Shenzhen Stock Exchanges, to examine the influence of nonfinancial enterprises’ shadow banking activities on business performance. The results show that, overall, enterprises’ shadow banking activity improve operating performance. In addition, from the perspective of earning structure, nonfinancial enterprises’ shadow banking business increases financial benefits, but has a significantly negative effect on operating income. Further tests show that enterprises engaged in shadow banking activities will impact operating income through the two intermediary variables of investment scale and investment efficiency. However, the negative effect of investment in crowding out operating income is greater than that of the efficiency-improving effect on operating income. This article provides policy guidance in terms of recognizing diverse aspects of shadow banking system that divorce the real economy from the financial economy.
Journal: Emerging Markets Finance and Trade
Pages: 3258-3274
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2018.1525358
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1525358
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Template-Type: ReDIF-Article 1.0
Author-Name: Abuduwali Aibai
Author-X-Name-First: Abuduwali
Author-X-Name-Last: Aibai
Author-Name: Xianjing Huang
Author-X-Name-First: Xianjing
Author-X-Name-Last: Huang
Author-Name: Yu Luo
Author-X-Name-First: Yu
Author-X-Name-Last: Luo
Author-Name: Yuchao Peng
Author-X-Name-First: Yuchao
Author-X-Name-Last: Peng
Title: Foreign Direct Investment, Institutional Quality, and Financial Development along the Belt and Road: An Empirical Investigation
Abstract: 
 The source of financial development is less investigated in the literature, especially the role foreign direct investment (FDI) plays on financial development. Using data from 50 countries joining the Belt and Road Initiative, this article at first time tests the impact of FDI on financial development in a host country. Empirical results show that FDI can significantly improve the development of financial sector, especially the development of financial markets. FDI is found to be a stronger driver of financial development for countries with higher quality institutions. Moreover, FDI not only increases financial deepening, but also enhances financial function.
Journal: Emerging Markets Finance and Trade
Pages: 3275-3294
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2018.1559139
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1559139
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:14:p:3275-3294




Template-Type: ReDIF-Article 1.0
Author-Name: Shuyu Wu
Author-X-Name-First: Shuyu
Author-X-Name-Last: Wu
Author-Name: Qingzhong Pan
Author-X-Name-First: Qingzhong
Author-X-Name-Last: Pan
Title: Financial Cooperative Potential Between China and Belt and Road Countries
Abstract: 
 Along with the increasingly frequent economic exchanges between China and the Belt and Road countries (BRCs), bilateral and multilateral financial integration within the region has become a current trend. This article quantifies the level of cooperative potential by designing an index based on the investment demand in China and the financing needs of the BRCs. Using this index, this article analyzes the distribution of the financial cooperative potential among the BRCs and uncovers its influencing factors. The statistical findings are that countries with higher financial cooperative potential have closer economic ties with China. These countries are mostly low-income or middle-income countries with a shortage of infrastructure investment, while their economic development is stable. The research results provide guidance for the overseas strategic layout of the Chinese financial institutions. More funds should be injected into China’s trade and investment counterparts that have stable economic growth and a strong demand for infrastructure investment, such as countries in Northeast, Central, and Southeast Asia.
Journal: Emerging Markets Finance and Trade
Pages: 3295-3310
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2018.1509207
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1509207
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Template-Type: ReDIF-Article 1.0
Author-Name: Wanbo Lu
Author-X-Name-First: Wanbo
Author-X-Name-Last: Lu
Author-Name: Yuxuan Gao
Author-X-Name-First: Yuxuan
Author-X-Name-Last: Gao
Author-Name: Xiaoyi Huang
Author-X-Name-First: Xiaoyi
Author-X-Name-Last: Huang
Title: Volatility Spillovers of Stock Markets between China and the Countries along the Belt and Road
Abstract: 
 This article intensively studies the stock market volatility spillover effects between China and the countries along the Belt and Road (B&R) based on the covered selection of Morgan Stanley Capital International Inc (MSCI) index by using multiplicative error model to measure stock market volatility with daily price range. The results show that during the whole sample period, there are bilateral linkages of volatility between the stock markets of China and all of B&R countries. Most of B&R and China’s markets are sensitive to positive news but the asymmetry is trivial. Financial crisis intensified the volatility spillover effects across countries while the markets’ volatilities tend to be influenced by the negative shocks from foreign markets. The B&R markets as risk absorbers exhibit significant sensitivities to the negative news from Chinese market during the crisis period.
Journal: Emerging Markets Finance and Trade
Pages: 3311-3331
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2019.1570496
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1570496
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Template-Type: ReDIF-Article 1.0
Author-Name: Guangning Tian
Author-X-Name-First: Guangning
Author-X-Name-Last: Tian
Author-Name: Juncheng Li
Author-X-Name-First: Juncheng
Author-X-Name-Last: Li
Title: How Does Infrastructure Construction Affect Economic Development along the “Belt and Road”: By Promoting Growth or Improving Distribution?
Abstract: 
 The “Belt and Road Initiative” has involved deepening infrastructure construction along the “Belt and Road”. Using data from countries who have joined the “Belt and Road”, this study examines how infrastructure construction has affected economic development along the route. Findings show that infrastructure construction can promote economic growth and per capita output growth while improving income distribution of residents along the “Belt and Road”. Results also indicate that the effect of infrastructure construction on economic development is heterogeneous; such construction can substantially increase economic growth in developing countries but has no significant effect on economic growth in developed and emerging developing countries. Infrastructure construction can greatly improve residents’ income distribution in developed and developing countries but has no significant effect on residents in emerging developing countries. Collectively, these findings identify foreign direct investment and urbanization as important channels through which infrastructure construction can influence economic development.
Journal: Emerging Markets Finance and Trade
Pages: 3332-3348
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2019.1607725
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1607725
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Template-Type: ReDIF-Article 1.0
Author-Name: Na Tan
Author-X-Name-First: Na
Author-X-Name-Last: Tan
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Author-Name: Jiaohui Yang
Author-X-Name-First: Jiaohui
Author-X-Name-Last: Yang
Author-Name: Liang Chang
Author-X-Name-First: Liang
Author-X-Name-Last: Chang
Title: Financial Competitiveness, Financial Openness and Bilateral Foreign Direct Investment
Abstract: 
 In this article, we test the impacts of financial competitiveness and financial openness on bilateral FDI with novel indexes, covering 127 host countries and 122 home countries from 2009 to 2016. We find that the improvement of financial competitiveness and financial openness significantly increases the FDI assets in the home country and significantly increases the FDI liabilities in the host country. In particular, the impacts of financial competitiveness and financial openness are significant both on the intensive and extensive margins. In addition, the above results remain robust in further analyses, such as using sub-index of financial competitiveness, using quantile regression model, considering capital control on FDI and dealing with the endogenous problem. The study demonstrates the financial competitiveness and financial openness are important factors to explain why FDI positions are relatively small in some developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 3349-3369
Issue: 14
Volume: 55
Year: 2019
Month: 11
X-DOI: 10.1080/1540496X.2019.1590194
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1590194
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhengyi Zhou
Author-X-Name-First: Zhengyi
Author-X-Name-Last: Zhou
Author-Name: Chongfeng Wu
Author-X-Name-First: Chongfeng
Author-X-Name-Last: Wu
Title: Consistent Analyst Expectation Error and Earnings Management: Evidence from China
Abstract: 
 Using data from the Chinese A-share market in 2004–12, we show how cognitive bias of individual analysts led to counterproductive effect in less-developed financial markets. We form an ex ante measure of analysts’ expectation error, a measure suitable for markets with a short history. We find that star analysts tend to be more optimistic than ordinary analysts, and their biased opinions influence other analysts because of analyst herding behavior. Two-stage least square regression results suggest that consistent expectation errors among analysts can lead to earnings management. These insights are valuable to investors and regulators.
Journal: Emerging Markets Finance and Trade
Pages: 2128-2148
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2015.1068065
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1068065
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Template-Type: ReDIF-Article 1.0
Author-Name: Beyza Mina Ordu
Author-X-Name-First: Beyza Mina
Author-X-Name-Last: Ordu
Author-Name: Uğur Soytaş
Author-X-Name-First: Uğur
Author-X-Name-Last: Soytaş
Title: The Relationship Between Energy Commodity Prices and Electricity and Market Index Performances: Evidence from an Emerging Market
Abstract: 
 We investigate the effect of energy commodity price movements on market and electricity index returns in Turkey for the periods before, during, and after the year 2008. Although the Turkish economy is highly reliant on oil, we find that oil price does not lead either electricity or market indexes. This might be attributable to sluggish integration of financial markets in Turkey compared to developed markets. Natural gas price leads electricity index in the pre-2008 period. Its significance is reduced following the decline in natural gas usage in electricity production. This suggests that commodity dependence may be driving the link between commodity and asset prices in related sectors.
Journal: Emerging Markets Finance and Trade
Pages: 2149-2164
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2015.1068067
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1068067
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Template-Type: ReDIF-Article 1.0
Author-Name: Matjaž Črnigoj
Author-X-Name-First: Matjaž
Author-X-Name-Last: Črnigoj
Title: The Responsiveness of Corporate Investments to Changes in Corporate Income Taxation During the Financial Crisis: Empirical Evidence from Slovenian Firms
Abstract: 
 I examine the responsiveness of corporate investments to changes in corporate income taxation during the financial crisis. When investigating tax effects in financially constrained firms, the model of investment demand needs to be extended to include an additional channel through which taxes could affect investments. I model the tax effects via two transmission channels, the traditional user cost of capital channel and the cash flow channel, which is crucial for financially constrained firms. The empirical results show that corporate investments in financially constrained firms do not respond to changes in corporate income taxation through the user cost of capital channel, but there is strong evidence of the effect that materializes through the cash flow channel.
Journal: Emerging Markets Finance and Trade
Pages: 2165-2177
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2015.1068069
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1068069
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Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandra Majchrowska
Author-X-Name-First: Aleksandra
Author-X-Name-Last: Majchrowska
Author-Name: Paulina Broniatowska
Author-X-Name-First: Paulina
Author-X-Name-Last: Broniatowska
Author-Name: Zbigniew Żółkiewski
Author-X-Name-First: Zbigniew
Author-X-Name-Last: Żółkiewski
Title: Minimum Wage in Poland and Youth Employment in Regional Labor Markets
Abstract: 
 The aim of this article is to analyze the effect of a uniform minimum wage in Poland on youth employment in regional labor markets and to determine in which of the regions the effect is significant. The analyses are based on NUTS2 level in 1999–2012. The results point to a statistically insignificant parameter of minimum wage variable for the whole sample. However, after allowing the minimum wage parameter to vary across regions, we find that the relatively high ratio of minimum to average wages could be the factor limiting youth employment growth in less-developed regions in the southeast of Poland.
Journal: Emerging Markets Finance and Trade
Pages: 2178-2194
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2015.1068611
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1068611
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Template-Type: ReDIF-Article 1.0
Author-Name: Yung-Shi Liau
Author-X-Name-First: Yung-Shi
Author-X-Name-Last: Liau
Title: Beta Asymmetry in the Global Stock Markets Following the Subprime Mortgage Crisis
Abstract: 
 I set out in this study to examine the asymmetry in beta responses using the dynamic conditional correlation threshold generalized autoregressive conditional heteroskedasticity (DCC-GJR-GARCH) model. The empirical results reveal that asymmetry is discernible in both volatility and betas in the global stock markets. Furthermore, when leverage is linked with the price-to-book ratio, the results indicate that the beta asymmetry is attributable to the leverage effect. The results of this study also reveal that the declines in the price-to-book ratio following the subprime mortgage crisis have led to an overall increase in betas.
Journal: Emerging Markets Finance and Trade
Pages: 2195-2207
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2015.1068613
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1068613
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Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ai Ma
Author-X-Name-First: Chun-Ai
Author-X-Name-Last: Ma
Author-Name: Yanbo Jin
Author-X-Name-First: Yanbo
Author-X-Name-Last: Jin
Title: What Drives the Relationship Between Financial Flexibility and Firm Performance: Investment Scale or Investment Efficiency? Evidence from China
Abstract: 
 Financial flexibility helps improve firm performance. By using data from Chinese listed companies, we examine whether investment scale or investment efficiency drives the relationship between financial flexibility and firm performance via a special mediator testing method that is widely used in the psychology literature (Baron and Kenny, 1986). We find that financial flexibility has a significant and positive effect on both investment and firm performance. However, investment scale rather than investment efficiency seems to drive firm performance. This finding helps us understand that Chinese companies tend to emphasize investment expansion more than they do investment efficiency to improve firm performance.
Journal: Emerging Markets Finance and Trade
Pages: 2043-2055
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2015.1098036
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1098036
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Template-Type: ReDIF-Article 1.0
Author-Name: Kun-Li Lin
Author-X-Name-First: Kun-Li
Author-X-Name-Last: Lin
Author-Name: Yuan Chang
Author-X-Name-First: Yuan
Author-X-Name-Last: Chang
Title: Corporate Governance Reform, Board Structure, and Its Determinants in the Banking Industry—Evidence from Taiwan
Abstract: 
 This study employs the data of twenty-seven banks listed on the Taiwan Stock Exchange from 2000–11 to examine the determinants of board structure, e.g., board size and the independent directors ratio. The evidence shows that bank size, the degree of revenue diversification, and the CEO’s shareholding are positively associated with the independent directors ratio. A higher outside block shareholding is correlated with a larger board size and a higher independent directors ratio. As the creditors’ stake decreases, a larger board and greater board independence are required to maintain internal corporate governance. Finally, banks with M&amp;A activity tend to downsize their board sizes and reduce board independence in the subsequent period.
Journal: Emerging Markets Finance and Trade
Pages: 2001-2017
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2015.1098052
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1098052
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Template-Type: ReDIF-Article 1.0
Author-Name: Hyunduk Suh
Author-X-Name-First: Hyunduk
Author-X-Name-Last: Suh
Title: Money Market Reform in Korea and Its Effects on the Overnight Call–Repurchase Agreement Rate
Abstract: 
 The Korean government implemented money market reform after the global financial crisis, aiming to develop the repurchase agreement (RP, repo) market. In this article, I analyze the reform and its effects on money markets. Results show that the reform strengthened the functionality of the RP market and the monetary policy transmission channel to it. The error correction model indicates that although the adjustments to the equilibrium occurred through the call rate during the global financial crisis, they were processed through the RP rate in later periods. The ability of the RP rate to inform market liquidity conditions has improved.
Journal: Emerging Markets Finance and Trade
Pages: 1985-2000
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2015.1132679
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1132679
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:9:p:1985-2000




Template-Type: ReDIF-Article 1.0
Author-Name: Sok-Gee Chan
Author-X-Name-First: Sok-Gee
Author-X-Name-Last: Chan
Author-Name: Eric H. Y. Koh
Author-X-Name-First: Eric H. Y.
Author-X-Name-Last: Koh
Author-Name: Yong-Cheol Kim
Author-X-Name-First: Yong-Cheol
Author-X-Name-Last: Kim
Title: Effect of Foreign Shareholdings and Originating Countries on Banking Sector Efficiency
Abstract: 
 We analyze how foreign shareholdings affect the ASEAN-5’s banking sector efficiency using stochastic frontier analysis. Unlike most extant studies, which compare the performance of local and foreign banks, we assess how foreign shareholdings affect bank efficiencies. We also apply resource-based theory to analyze whether the foreign shareholdings’ countries of origin matter. We find that foreign shareholders from more developed countries enhance the bank’s resource base. Those from Asia have the greatest effect, perhaps because of their proximity and familiarity. Moreover, excessive regulation stifles the host countries’ profit efficiency potential. Finally, foreign shareholding concentration potentially enhances efficiencies by reducing agency costs.
Journal: Emerging Markets Finance and Trade
Pages: 2018-2042
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2016.1142231
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1142231
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Template-Type: ReDIF-Article 1.0
Author-Name: Jianhua Gang
Author-X-Name-First: Jianhua
Author-X-Name-Last: Gang
Author-Name: Zongxin Qian
Author-X-Name-First: Zongxin
Author-X-Name-Last: Qian
Title: Risk-Adjusted Performance of Mutual Funds: Evidence from China
Abstract: 
 In this article, we evaluate the performance of mutual funds in China between 2006 and 2014. We first estimate time-varying abnormal returns of each mutual fund using an active peer benchmark-augmented factor pricing model. An index of riskiness is then estimated and used to calculate the augmented performance measure (APM). By construction, the APM separates the managerial premium of the fund from systematic risk premium, so it is better than the economic performance measure. The APM incorporates information beyond the first and second moments of the distribution of fund abnormal return; therefore, it is more informative than the Sharpe ratio.
Journal: Emerging Markets Finance and Trade
Pages: 2056-2068
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2016.1156527
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1156527
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Template-Type: ReDIF-Article 1.0
Author-Name: Geesun Lee
Author-X-Name-First: Geesun
Author-X-Name-Last: Lee
Author-Name: Jinho Jeong
Author-X-Name-First: Jinho
Author-X-Name-Last: Jeong
Title: An Investigation of Global and Regional Integration of ASEAN Economic Community Stock Market: Dynamic Risk Decomposition Approach
Abstract: 
 This article investigates the dynamic pattern of stock market relations between the ASEAN Economic Community (AEC) and two major stock markets: China and the United States. A GARCH risk decomposition model is developed to reflect the time-varying market integration. The primary findings of this study are as follows. First, the AEC is more integrated with the regional stock market than with the global stock market. Second, the movement in the AEC stock market is mainly driven by domestic economic situations. Third, external shocks only affect the level of integration of the AEC temporarily. Finally, international investors are able to significantly reduce unsystematic risk by adding an AEC market portfolio into their existing portfolios.
Journal: Emerging Markets Finance and Trade
Pages: 2069-2086
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2016.1156528
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1156528
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:9:p:2069-2086




Template-Type: ReDIF-Article 1.0
Author-Name: Hyunil Lim
Author-X-Name-First: Hyunil
Author-X-Name-Last: Lim
Author-Name: Sang Koo Kang
Author-X-Name-First: Sang Koo
Author-X-Name-Last: Kang
Author-Name: Haksoon Kim
Author-X-Name-First: Haksoon
Author-X-Name-Last: Kim
Title: Auditor Quality, IFRS Adoption, and Stock Price Crash Risk: Korean Evidence
Abstract: 
 This paper investigates the relationship among auditor quality, International Financial Reporting Standard (IFRS) adoption and stock price crash risk. Using 657 unique listed companies spanning 2002–2014 in Korea, this study finds that stock price crash risk decreases, especially for firms using Big 4 auditors, after IFRS adoption in Korea. Stock price crash risk decreases for a firm included in Big 4 auditors, while it does not increase for a firm excluded from Big 4 auditors after IFRS adoption. Finally, this study finds that Big 4 auditor decreases stock price crash risk only when the firm size is above-median.
Journal: Emerging Markets Finance and Trade
Pages: 2100-2114
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2016.1184142
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1184142
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:9:p:2100-2114




Template-Type: ReDIF-Article 1.0
Author-Name: Kuo-chun Yeh
Author-X-Name-First: Kuo-chun
Author-X-Name-Last: Yeh
Title: Monetary Policy Rules in an Open Economy with Heuristics: Which Model Is Best?
Abstract: 
 The choices of policy targets and the formation of agents’ expectation have been critical issues for reconsidering monetary policy management since 2008. The purpose of this article is to evaluate macroeconomic stability in a New Keynesian open economy in which agents experience cognitive limitations. The (im)perfect credibility of various monetary policies (e.g., a Taylor-type rule, strict domestic inflation targeting, strict CPI inflation targeting, exchange rate peg) may lead agents to react according to their expectation rules, and then create various degrees of booms and busts in output and inflation. Therefore, relaxation of the rational expectation hypothesis has potential consequences for policy designs. Our simulations confirm that the business cycles induced by animal spirits are enhanced by strict inflation targeting. Furthermore, a Taylor-type (CPI or domestic inflation) rule or a credible exchange rate pegging system can improve social welfare and stability in an open economy.
Journal: Emerging Markets Finance and Trade
Pages: 1970-1984
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2016.1185604
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1185604
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:9:p:1970-1984




Template-Type: ReDIF-Article 1.0
Author-Name: Seungwon Yu
Author-X-Name-First: Seungwon
Author-X-Name-Last: Yu
Author-Name: Namryoung Lee
Author-X-Name-First: Namryoung
Author-X-Name-Last: Lee
Title: Financial Crisis, Politically Connected CEOs, and the Performance of State-Owned Enterprises: Evidence from Korea
Abstract: 
 This study examines under specific situations the performance of state-owned enterprises (SOEs) from two points of view—business performance and public performance. We find that SOEs with a politically connected CEO perform well even during a financial crisis as the SOEs are able to obtain more favorable treatment. However, the results imply that politically connected CEOs perform poorly when government subsidies are excluded as they may lack the skills for successful management. The results also confirm that SOEs encourage more corporate social responsibility (CSR) activities during a financial crisis in an effort to gain legitimacy by demonstrating that they are committed to social responsibility. However, politically connected CEOs have a negative effect on CSR performance during a financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 2087-2099
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2016.1186445
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1186445
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:9:p:2087-2099




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Luo
Author-X-Name-First: Yu
Author-X-Name-Last: Luo
Author-Name: Chengsi Zhang
Author-X-Name-First: Chengsi
Author-X-Name-Last: Zhang
Author-Name: Yueteng Zhu
Author-X-Name-First: Yueteng
Author-X-Name-Last: Zhu
Title: Openness and Financial Development in China: The Political Economy of Financial Resources Distribution
Abstract: 
 This paper examines the impact of openness on financial development in China. We use two sets of indicators of financial development to distinguish size and efficiency for both bank and capital market sectors as aspects of financial development in 30 provinces of China over the period from 2000 to 2009. The empirical results suggest that trade and financial openness exert positive impact on financial efficiency but negative impact on the size of financial development for both the indirect and direct financial sectors. The results confirm a mismatch problem between the distribution in the types of trading companies and the allocation of financial resources in China.
Journal: Emerging Markets Finance and Trade
Pages: 2115-2127
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2016.1186451
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1186451
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:9:p:2115-2127




Template-Type: ReDIF-Article 1.0
Author-Name: Chengsi Zhang
Author-X-Name-First: Chengsi
Author-X-Name-Last: Zhang
Title: Financial Reforms and Performance in Emerging Market Economies: An Introduction
Journal: Emerging Markets Finance and Trade
Pages: 1967-1969
Issue: 9
Volume: 52
Year: 2016
Month: 9
X-DOI: 10.1080/1540496X.2016.1221627
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1221627
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:9:p:1967-1969




Template-Type: ReDIF-Article 1.0
Author-Name: Somrasri Yupho
Author-X-Name-First: Somrasri
Author-X-Name-Last: Yupho
Author-Name: Xianguo Huang
Author-X-Name-First: Xianguo
Author-X-Name-Last: Huang
Title: Portfolio Capital Flows in Thailand: A Bayesian Model Averaging Approach
Abstract: 
 We study the gross and net terms of portfolio capital flows by examining their determinants. Through the application of the Bayesian model averaging method, the determinants are evaluated by a set of models instead of a single specification. Our findings show that the magnitude of both gross equity and gross debt flows are large, relative to their net terms. Equity inflows and outflows are quite symmetric with similar determinants; debt inflows and outflows are less symmetric. The paper provides partial evidence to support the importance of both internal and external factors as determinants of capital flows.
Journal: Emerging Markets Finance and Trade
Pages: 89-99
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S206
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S206
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:89-99




Template-Type: ReDIF-Article 1.0
Author-Name: Go Yano
Author-X-Name-First: Go
Author-X-Name-Last: Yano
Author-Name: Maho Shiraishi
Author-X-Name-First: Maho
Author-X-Name-Last: Shiraishi
Title: Factors in the Development of Trade Credit: Case Study of Provinces in China
Abstract: 
 Using Chinese province-level panel data for 2001-9, we investigate significant factors for the development of financial intermediation via trade credit in developing economies. First, we confirm that a competitive market environment, a well-functioning legal system, and greater bank loans for non-state-sector firms promote the development of trade credit in China. Conversely, corruption hinders its development. Second, we find that proper functioning of the legal system and bank lending to non-state-sector firms are highly likely to be the causes of the complex relationships between these determinants. Finally, we observe that an increase in the number of lawyers effectively improves the quality and function of the legal system, which, in turn, alleviates the harmful influence of corruption on trade credit development.
Journal: Emerging Markets Finance and Trade
Pages: 114-134
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S208
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S208
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:114-134




Template-Type: ReDIF-Article 1.0
Author-Name: Cherng Ding
Author-X-Name-First: Cherng
Author-X-Name-Last: Ding
Author-Name: Hung-Jui Wang
Author-X-Name-First: Hung-Jui
Author-X-Name-Last: Wang
Author-Name: Meng-Che Lee
Author-X-Name-First: Meng-Che
Author-X-Name-Last: Lee
Author-Name: Wen-Chi Hung
Author-X-Name-First: Wen-Chi
Author-X-Name-Last: Hung
Author-Name: Chieh-Peng Lin
Author-X-Name-First: Chieh-Peng
Author-X-Name-Last: Lin
Title: How Does the Change in Investor Sentiment over Time Affect Stock Returns?
Abstract: 
 We examine how the change in investor sentiment (IS) over time (the IS trend) affects stock returns. The turnover rates of trading shares, trading value, and transactions, three market measures of trading activity, have been demonstrated to meet the psychometric criteria for measuring the IS trend. The ratio of market price to book value and the short-selling turnover ratio are inappropriate proxies. The empirical results indicate that the influence of the IS trend on returns depends on the direction of the trend (optimistic or pessimistic) and stock characteristics of individual holdings and on arbitrage constraint. The effectiveness of arbitrage, sentiment-driven mispricing, and market intervention are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 144-158
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S210
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S210
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Template-Type: ReDIF-Article 1.0
Author-Name: Jean Yu
Author-X-Name-First: Jean
Author-X-Name-Last: Yu
Author-Name: Hung-Hsi Huang
Author-X-Name-First: Hung-Hsi
Author-X-Name-Last: Huang
Author-Name: Shu-Wei Hsu
Author-X-Name-First: Shu-Wei
Author-X-Name-Last: Hsu
Title: Investor Sentiment Influence on the Risk-Reward Relation in the Taiwan Stock Market
Abstract: 
 We examine the influence of investor sentiment on the risk-reward relationship in the Taiwan stock market. Regression results show that the risk-reward relationship is weakly positive (significantly negative) under low (high) levels of investor sentiment. Granger causality tests indicate unidirectional, not bidirectional, causal relationships. Moreover, the negative return-variance relationship is more strongly characteristic of the over-the-counter index than of the Taiwan Stock Exchange weighted index, indicating that an unreasonable risk-reward trade-off may be more prevalent in emerging markets than in mature markets. Finally, the Wald test demonstrates that industry effects on the risk-reward relationship may be negligible.
Journal: Emerging Markets Finance and Trade
Pages: 174-188
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S212
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S212
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:174-188




Template-Type: ReDIF-Article 1.0
Author-Name: Jonchi Shyu
Author-X-Name-First: Jonchi
Author-X-Name-Last: Shyu
Author-Name: Jia-Chi Lin
Author-X-Name-First: Jia-Chi
Author-X-Name-Last: Lin
Author-Name: Chi-Chong Chang
Author-X-Name-First: Chi-Chong
Author-X-Name-Last: Chang
Title: Do Focused Funds Offer Superior Performance in an Emerging Market? Evidence from Taiwan's Stock Market
Abstract: 
 We examine the effects of the number of stock holdings and industry concentration on Taiwan's equity fund performance. The quadratic regression model is applied to explore the optimal number of stock holdings for mutual funds. The empirical results suggest that funds with a smaller number of stock holdings and with a higher level of industry concentration achieve better performance. We also find that mutual fund performance and the number of stock holdings have an inverted U-shaped relationship, and funds that hold twenty-four to twenty-eight stocks can generate superior performance.
Journal: Emerging Markets Finance and Trade
Pages: 202-218
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S214
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S214
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:202-218




Template-Type: ReDIF-Article 1.0
Author-Name: Ali Kutan
Author-X-Name-First: Ali
Author-X-Name-Last: Kutan
Title: Introduction
Abstract: 
Journal: Emerging Markets Finance and Trade
Pages: 4-4
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S200
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S200
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:4-4




Template-Type: ReDIF-Article 1.0
Author-Name: Mu-Shun Wang
Author-X-Name-First: Mu-Shun
Author-X-Name-Last: Wang
Title: Financial Innovation, Basel Accord III, and Bank Value
Abstract: 
 I examine how financial innovation and Basel III capital requirements in Taiwan respond differently to banking crises and market competition. My panel data set comprises data from thirty-four banks for 2000-2012. I find a significant negative relationship between derivatives and the value of a bank and significant positive relationships among the capital adequacy ratio, bank-specific variables, and the value of a bank. Larger bank size and operational diversification tend to be positively associated with a bank's value, the holding of a relatively high amount of capital requirements, and nonperforming loans that are large. The latter result may simply reflect the scale of economy and improvement of efficiency in terms of financial innovation in the banking sector.
Journal: Emerging Markets Finance and Trade
Pages: 23-42
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S202
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S202
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Template-Type: ReDIF-Article 1.0
Author-Name: Hao Fang
Author-X-Name-First: Hao
Author-X-Name-Last: Fang
Author-Name: Yang-Cheng Lu
Author-X-Name-First: Yang-Cheng
Author-X-Name-Last: Lu
Author-Name: Hwey-Yun Yau
Author-X-Name-First: Hwey-Yun
Author-X-Name-Last: Yau
Title: The Effects of Stock Characteristics on the Direction and Extent of Herding by Foreign Institutional Investors in the Taiwan Stock Exchange
Abstract: 
 We use a dynamic herding measure to explore the causes of foreign institutional investor (FII) herding in the Taiwan stock market and examine the effects of stock characteristics on the direction and extent of such herding. We find that FII herding primarily results from cascades rather than habit investing or momentum trading. The result of a panel smooth transition regression shows that FIIs' negative cascades focus on their largest net purchases of stocks, but FIIs' positive cascades focus on winner and small-sized stocks. To increase portfolio returns, investors can use FIIs' cascades to inform their stock purchases.
Journal: Emerging Markets Finance and Trade
Pages: 60-74
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S204
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S204
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:60-74




Template-Type: ReDIF-Article 1.0
Author-Name: Ping Qing
Author-X-Name-First: Ping
Author-X-Name-Last: Qing
Author-Name: Aiqin Xi
Author-X-Name-First: Aiqin
Author-X-Name-Last: Xi
Author-Name: Wuyang Hu
Author-X-Name-First: Wuyang
Author-X-Name-Last: Hu
Title: Consumer Preference for Meat in China: A Case Study of Beijing
Abstract: 
 We analyze Chinese consumer preferences for pork shoulder-cut attributes during the recent period of fluctuating food prices caused by production and market anomalies. Consumers were randomly sampled in Beijing, China. Results indicate that consumers place great importance on where they purchase pork products as well as on whether the animals are raised with organic feed. Whether pork is fresh or previously frozen does not appear to matter much to consumers. This may provide partial support for the Chinese government's policy of using frozen pork reserves to stabilize pork prices.
Journal: Emerging Markets Finance and Trade
Pages: 135-143
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S209
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S209
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Template-Type: ReDIF-Article 1.0
Author-Name: Ming-Feng Hsu
Author-X-Name-First: Ming-Feng
Author-X-Name-Last: Hsu
Author-Name: Kehluh Wang
Author-X-Name-First: Kehluh
Author-X-Name-Last: Wang
Title: The Level and Stability of Institutional Ownership and Firm Performance: Evidence from Taiwan
Abstract: 
 The purpose of this paper is to investigate the influence of shareholding stability of institutional investors on firm performance. We analyze 647 sample companies listed in the Taiwan Stock Exchange from 2005 to 2009 using the coefficient of variance of institutional holding proportion as the measure for ownership stability. The empirical results show that increasing stability of institutional holdings is related to better firm performance. The low-risk and younger firms with higher CEO incentive compensation, larger insider holdings, and higher growth usually have better performance. Furthermore, when the long-term institutional shareholdings, particularly of foreign institutions, are higher, the firm performance is better.
Journal: Emerging Markets Finance and Trade
Pages: 159-173
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S211
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S211
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:159-173




Template-Type: ReDIF-Article 1.0
Author-Name: Tung-Hao Lee
Author-X-Name-First: Tung-Hao
Author-X-Name-Last: Lee
Author-Name: Shu-Hwa Chih
Author-X-Name-First: Shu-Hwa
Author-X-Name-Last: Chih
Title: Does Financial Restructuring Change the Relationship Between Corporate Governance and the Static and Dynamic Efficiency of Bank Mergers in Taiwan?
Abstract: 
 Taiwan's Financial Restructuring Fund Statute was enacted in 2001. This study is unique in simultaneously considering Taiwan's corporate governance, bank mergers, and the financial restructuring scheme. Unlike other literature that investigates only the characteristics of corporate governance that affect the concurrent static efficiency of bank mergers, we further use the dynamic slacks-based measure to examine the persistent and intertemporal effects on the dynamic efficiency of bank mergers. The results of this study show that major shareholders of acquiring banks have greater controlling power to decide whether to merge during the financial restructuring period. A bank merger using the financial restructuring scheme has less static and dynamic efficiency in the short run but gradually increased static and dynamic efficiency in the long run. Such an observation is consistent with the hypothesis that controlling shareholders pursue long-term efficiency in a bank merger.
Journal: Emerging Markets Finance and Trade
Pages: 189-201
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S213
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S213
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:189-201




Template-Type: ReDIF-Article 1.0
Author-Name: Weiran Wang
Author-X-Name-First: Weiran
Author-X-Name-Last: Wang
Title: The Effects of Regional Integration in Central Asia
Abstract: 
 Since gaining independence, Central Asian countries have created and joined many regional economic organizations. It is not clear whether these organizations, especially the Eurasian Economic Community (EurAsEC), have boosted integration of this region. In this paper, I conclude that exports of Central Asian countries have benefited from integration but EurAsEC has failed to live up to the expectations of its member states. This is due mainly to the different levels of economic development, defective industrial structures, and poor marketization in EurAsEC member states. At present, an initial market-based trade integration network has formed in Central Asia and has had excellent accomplishments, but the governments of Central Asian countries have still not realized the network's function and advantage.
Journal: Emerging Markets Finance and Trade
Pages: 219-232
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S215
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S215
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:219-232




Template-Type: ReDIF-Article 1.0
Author-Name: Minshik Shin
Author-X-Name-First: Minshik
Author-X-Name-Last: Shin
Author-Name: Sooeun Kim
Author-X-Name-First: Sooeun
Author-X-Name-Last: Kim
Title: The Effects of Private Investments in Public Equity on R&amp;D Investment in Small and Medium-Size Enterprises
Abstract: 
 This paper provides evidence that small and medium-size enterprises (SMEs) use a portion of private investments in public equity (PIPEs) for current research and development (R&amp;D) investment, hold the rest in liquidity reserves such as cash assets and working capital, and ultimately use these reserves to smooth R&amp;D investment. That is, PIPEs may have a direct effect on R&amp;D investment and an indirect or smoothing effect using liquidity reserves. This paper also shows that innovative SMEs such as venture businesses, inno-biz firms, and management innovative firms are more likely to use PIPEs for R&amp;D investment than are noninnovative SMEs. The implications of this paper are that PIPEs can be used as an important source of external financing to fund R&amp;D investment and can be particularly valuable for R&amp;D investment in innovative SMEs.
Journal: Emerging Markets Finance and Trade
Pages: 43-59
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S203
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S203
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:43-59




Template-Type: ReDIF-Article 1.0
Author-Name: Ana Cuadros
Author-X-Name-First: Ana
Author-X-Name-Last: Cuadros
Author-Name: Maite Alguacil
Author-X-Name-First: Maite
Author-X-Name-Last: Alguacil
Title: Productivity Spillovers Through Foreign Transactions: The Role of Sector Composition and Local Conditions
Abstract: 
 We analyze the roles of inward foreign direct investment (FDI) and imports of capital goods as the main drivers of technology diffusion and productivity improvement in a sample of twenty-eight developing economies for the period 1999-2009. We examine changes in the sectoral composition of FDI as well as those local conditions that may facilitate technology adoption. Our results, obtained by the system generalized method of moments estimation method, suggest that the change of FDI from manufacturing to services is productivity enhancing. We also find that those countries with stronger institutions and better social and human development enjoy larger efficiency gains.
Journal: Emerging Markets Finance and Trade
Pages: 75-88
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S205
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S205
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:75-88




Template-Type: ReDIF-Article 1.0
Author-Name: Lu Liu
Author-X-Name-First: Lu
Author-X-Name-Last: Liu
Title: Spring Transportation in China: The Peak-Load Problem with Psychological Factors
Abstract: 
 Every year around the time of the Chinese New Year, hundreds of millions of people in China return to their hometowns, placing huge pressure on the transportation infrastructure. However, a link between the theoretical model and the Chinese context is missing. This paper provides an in-depth look at the capacity shortage of transportation during Spring Transportation in China. I use a discrete choice model to determine the travel decision mechanism for the potential traveler and extend this model from a single traveler to multiple heterogeneous travelers based on travel distances and the emotional amenity of family reunions.
Journal: Emerging Markets Finance and Trade
Pages: 100-113
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S207
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S207
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:100-113




Template-Type: ReDIF-Article 1.0
Author-Name: Jiangang Peng
Author-X-Name-First: Jiangang
Author-X-Name-Last: Peng
Author-Name: Nicolaas Groenewold
Author-X-Name-First: Nicolaas
Author-X-Name-Last: Groenewold
Author-Name: Xiangmei Fan
Author-X-Name-First: Xiangmei
Author-X-Name-Last: Fan
Author-Name: Guanzheng Li
Author-X-Name-First: Guanzheng
Author-X-Name-Last: Li
Title: Financial System Reform and Economic Growth in a Transition Economy: The Case of China, 1978-2004
Abstract: 
 We examine the relationship between financial system reform and growth using data for China, which has undergone extensive financial liberalization since 1978. We construct an index of financial liberalization by combining the "Delphi method" and principal components analysis to combine eight aspects of the reform process for 1978 to 2004 and address the finance-growth nexus within a vector autoregressive model of growth, saving, and liberalization. We find robust evidence of significant positive effects of liberalization on growth in the short run and on accumulated growth in the long run but only weak effects on saving. Liberalization significantly causes both growth and saving, but there are no significant feedback effects to liberalization.
Journal: Emerging Markets Finance and Trade
Pages: 5-22
Issue: S2
Volume: 50
Year: 2014
X-DOI: 10.2753/REE1540-496X5002S201
File-URL: http://hdl.handle.net/10.2753/REE1540-496X5002S201
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Handle: RePEc:mes:emfitr:v:50:y:2014:i:S2:p:5-22




Template-Type: ReDIF-Article 1.0
Author-Name: James Foye
Author-X-Name-First: James
Author-X-Name-Last: Foye
Author-Name: Dušan Mramor
Author-X-Name-First: Dušan
Author-X-Name-Last: Mramor
Title: A New Perspective on the International Evidence Concerning the Book-Price Effect
Abstract: 
 Finance theory implies equity returns should be positively related to financial leverage. However, a recent article decomposes the book-price ratio into financing and operating components and report a negative association between financial leverage and returns. We shed new light on this puzzle by examining a region in which previous research has established that firms’ financial leverage choices are motivated by factors other than maximizing shareholders’ wealth: we hypothesize that this must be reflected in both how financial leverage is priced and the book-price ratio. We show that the relationship between equity returns and financial leverage for stocks in our sample is indeed very different to the findings of previous research, and this is reflected in the decomposed elements of the book-price ratio.
Journal: Emerging Markets Finance and Trade
Pages: 2348-2363
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2015.1070630
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1070630
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:10:p:2348-2363




Template-Type: ReDIF-Article 1.0
Author-Name: Yunhao Dai
Author-X-Name-First: Yunhao
Author-X-Name-Last: Dai
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Title: Getting Attention Through Corporate Philanthropy
Abstract: 
 This study investigates whether firm donations will attract attention for firms without analyst coverage. We find that: (1) the donations from firms without analyst coverage attract more attention from analysts, (2) donations from firms without analyst coverage improve stock liquidity and institutional holdings at least in the short run, and (3) donations from firms without analyst coverage are positively and significantly related to the future performance of firms compared with those from firms covered by analysts. This study contributes to the understanding of the influence of analysts on firms and the strategic motivations of corporate philanthropy.
Journal: Emerging Markets Finance and Trade
Pages: 2364-2378
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2015.1073511
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1073511
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:10:p:2364-2378




Template-Type: ReDIF-Article 1.0
Author-Name: Sophia Zhengzi Li
Author-X-Name-First: Sophia Zhengzi
Author-X-Name-Last: Li
Author-Name: Hao Wang
Author-X-Name-First: Hao
Author-X-Name-Last: Wang
Author-Name: Hua Zhao
Author-X-Name-First: Hua
Author-X-Name-Last: Zhao
Title: Jump Tail Dependence in the Chinese Stock Market
Abstract: 
 The article examines the characteristics and implications of jump tail dependence in the Chinese stock market with high-frequency data. The results indicate that jumps contribute significantly to tail dependence between individual stocks and the aggregate market. Jumps are more tail dependent than raw returns and account for an average of 17 percent of the daily tail-dependence coefficient. We also find that jump tail dependence is asymmetric and substantially stronger in the lower tail than in the upper tail. Ignoring jump tail dependence may lead to underestimation of risks and produce inaccurate conclusions about the tail neutrality of a portfolio.
Journal: Emerging Markets Finance and Trade
Pages: 2379-2396
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2015.1073988
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1073988
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:10:p:2379-2396




Template-Type: ReDIF-Article 1.0
Author-Name: Patrick Georges
Author-X-Name-First: Patrick
Author-X-Name-Last: Georges
Author-Name: Aylin Seçkin
Author-X-Name-First: Aylin
Author-X-Name-Last: Seçkin
Title: Demographic Dividends in the ‘South’, Ageing ‘North’, and ‘South-South’ Trade Diversification
Abstract: 
 The absence of clear convergence in incomes per capita and welfare between the North and the South, even in the face of spectacular growth rates in GDP in the emerging South, might be due to a terms of trade deterioration resulting from an expansion of production in the South which depresses the product’s price on world markets. This may originate from a “technical catch up” and also from a “demographic dividend” in the South relative to an ageing North. This article illustrates that some South-South trade diversification might mitigate the terms of trade deterioration and increase welfare gains in the South. We use a multicountry overlapping-generation general equilibrium model to simulate the magnitude of the terms of trade effect due to a demographic dividend in Turkey, and show that some trade diversification away from EU toward the South is a welfare improving policy for Turkey.
Journal: Emerging Markets Finance and Trade
Pages: 2397-2413
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2015.1073989
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1073989
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:10:p:2397-2413




Template-Type: ReDIF-Article 1.0
Author-Name: Eva Liljeblom
Author-X-Name-First: Eva
Author-X-Name-Last: Liljeblom
Author-Name: Benjamin Maury
Author-X-Name-First: Benjamin
Author-X-Name-Last: Maury
Title: Shareholder Protection, Ownership, and Dividends: Russian Evidence
Abstract: 
 This article investigates the relation between corporate governance mechanisms and dividend policy in Russian firms. Using a sample of Russian listed firms over the period 1998–2003, we estimate models for dividend pay probability and payout size. We find that there has been a significant increase in dividend payout levels which coincide with improvements in legal shareholder protection. State controlled firms are more frequent dividend payers as compared to other majority owned firms. We also find that dual share firms, in which corporate charters protect minority interests, have a higher dividend pay probability; while firms reporting according to US GAAP, which may be less likely to manipulate earnings, have a lower dividend payout.
Journal: Emerging Markets Finance and Trade
Pages: 2414-2433
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2015.1073991
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1073991
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:10:p:2414-2433




Template-Type: ReDIF-Article 1.0
Author-Name: Pasi Luukka
Author-X-Name-First: Pasi
Author-X-Name-Last: Luukka
Author-Name: Eero Pätäri
Author-X-Name-First: Eero
Author-X-Name-Last: Pätäri
Author-Name: Elena Fedorova
Author-X-Name-First: Elena
Author-X-Name-Last: Fedorova
Author-Name: Tatiana Garanina
Author-X-Name-First: Tatiana
Author-X-Name-Last: Garanina
Title: Performance of Moving Average Trading Rules in a Volatile Stock Market: The Russian Evidence
Abstract: 
 This article examines the profitability of dual moving average crossover (DMAC) trading strategies in the Russian stock market over the 2003–12 period. It contributes to the existing technical analysis (TA) literature by testing, for the first time, the applicability of ordered weighted moving averages (OWMA) as an alternative calculation basis for determining DMACs. In addition, this article provides the first comprehensive performance comparison of DMAC trading rules in the stock market that is known as one of the most volatile markets in the world. The results show that the best trading strategies of the in-sample period can also outperform their benchmark portfolio during the subsequent out-of-sample period. Moreover, the outperformance of the best DMAC strategies is mostly attributable to their superior performance during bearish periods and, particularly, during stock market crashes.
Journal: Emerging Markets Finance and Trade
Pages: 2434-2450
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2015.1087785
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1087785
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Template-Type: ReDIF-Article 1.0
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Maobin Wang
Author-X-Name-First: Maobin
Author-X-Name-Last: Wang
Title: Government Stakes as an Insurance Policy: Evidence from Seasoned Equity Offerings of Chinese Firms
Abstract: 
 While privatization has attracted much more attention in the literature, one type of reverse privatization, a privately-controlled firm inviting government ownership as its minority shareholders, is neglected in the literature. Using large-scale census firm data from China, we investigate the determinants of this kind of reverse privatization and its impact on firm performance. We find that (1) the decision of reverse privatization by Chinese private firms is affected by local political risk, firm-level financial characteristics, and industry-level characteristics, (2) the reverse privatization significantly affects the firm’s performance, which is measured in different proxies but the effects are not consistent, and (3) moreover, we find that the benefit of reverse privatization decreases as government ownership increases. Our results suggest that the prevalence of reverse privatization in China is a political outcome, which is affected by the trade-off of political risk and political privilege. Our work suggests that political risk and political considerations are the main driving factors of privatization, or its opposite, reverse privatization. Reverse privatization, to some extent, is a rational choice in some transition economies. Our findings offer clear policy implications to the nationalization phenomenon taking place around the world recently.
Journal: Emerging Markets Finance and Trade
Pages: 2292-2308
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2015.1095558
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1095558
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Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chi Chu
Author-X-Name-First: Chien-Chi
Author-X-Name-Last: Chu
Author-Name: Ying-Maw Teng
Author-X-Name-First: Ying-Maw
Author-X-Name-Last: Teng
Author-Name: Hsiu-Ling Lee
Author-X-Name-First: Hsiu-Ling
Author-X-Name-Last: Lee
Title: Corporate Governance and Mergers and Acquisitions Performance in Banks: Evidence under the Special Regulatory Environment in Taiwan
Abstract: 
 In this study, we focus on the relation between bank governance and bank merger results under Taiwan’s special regulatory environment in 2000. Adopting governance variables (executive remuneration, managerial ownership, and board diversity), we find that managerial ownership is positively related to bank merger results and that board size is negatively correlated with bank mergers’ performance. This study supports sound governance mechanisms to prevent banks from pursuing a value-loss merger and acquisition (M&amp;A). Our results offer the insight that internal bank governance structures have a bigger impact on the value effects from bank mergers. Thus, regulators may elevate the performance of bank M&amp;As by enhancing corporate governance codes.
Journal: Emerging Markets Finance and Trade
Pages: 2309-2320
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2015.1103120
File-URL: http://hdl.handle.net/10.1080/1540496X.2015.1103120
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Template-Type: ReDIF-Article 1.0
Author-Name: Carlos de Resende
Author-X-Name-First: Carlos
Author-X-Name-Last: de Resende
Author-Name: Ali Dib
Author-X-Name-First: Ali
Author-X-Name-Last: Dib
Author-Name: René Lalonde
Author-X-Name-First: René
Author-X-Name-Last: Lalonde
Author-Name: Nikita Perevalov
Author-X-Name-First: Nikita
Author-X-Name-Last: Perevalov
Title: Countercyclical Bank Capital Requirement and Optimized Monetary Policy Rules
Abstract: 
 Using BoC-GEM-Fin, a large-scale dynamic stochastic general equilibrium (DSGE) model with real, nominal, and financial frictions featuring a banking sector, we explore the macroeconomic implications of various types of countercyclical bank capital regulations. Results suggest that countercyclical capital requirements have a significant stabilizing effect on key macroeconomic variables, but mostly after financial shocks. Moreover, the bank capital regulatory policy and monetary policy interact, and this interaction is contingent on the type of shocks that drive the economic cycle. Finally, we analyze loss functions based on macroeconomic and financial variables to arrive at an optimal countercyclical regulatory policy in a class of simple implementable Taylor-type rules. Compared to bank capital regulatory policy, monetary policy is able to stabilize the economy more efficiently after real shocks. On the other hand, financial shocks require the regulator to be more aggressive in loosening/tightening capital requirements for banks, even as monetary policy works to counter the deviations of inflation from the target.
Journal: Emerging Markets Finance and Trade
Pages: 2267-2291
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2016.1149696
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1149696
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Template-Type: ReDIF-Article 1.0
Author-Name: Choongsoo Kim
Author-X-Name-First: Choongsoo
Author-X-Name-Last: Kim
Title: Strengthening the Global Financial Safety Net: Challenges and Prospects
Abstract: 
 The paper shares the idea on the current global financial circumstance; whereas rapid financial globalization was a basic source of the systemic risks of the global financial crisis, the world economy is even more integrated in the aftermath of the global crisis. It emphasizes the importance of the global community to strengthening the GFSN to respond to a crisis. Kim argues that the GFSN should be a multi-layered structure, and only a single layer alone would not be sufficient to handle the global crisis due to its impact of economic damage. More specifically, the paper suggests a multi-layered structure of the GFSN as follows: self-insurance with foreign exchange reserves, bilateral currency swaps by central banks, RFAs already influencing regional financial recourse and stability in several regions, and global arrangements, such as the IMF facilities.
Journal: Emerging Markets Finance and Trade
Pages: 2212-2220
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2016.1174854
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1174854
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Template-Type: ReDIF-Article 1.0
Author-Name: Christophe Destais
Author-X-Name-First: Christophe
Author-X-Name-Last: Destais
Title: Central Bank Currency Swaps and the International Monetary System
Abstract: 
 Central bank currency swaps have emerged as a de facto key feature of the international monetary system, with the US Federal Reserve having extensive recourse to them during the financial crisis, and their exploitation by the People’s Bank of China to help internationalizing the renminbi. Combined with the unlimited and exclusive power of central banks to create money these swaps can match the volatility of international capital flows. However, they have so far not been associated with conditionality, and are more precarious than alternative institutional arrangements. Strictly framing the discretionary use of this tool seems unrealistic but an internationally agreed set of principles would enable a fairer and perhaps more efficient exploitation of this instrument.
Journal: Emerging Markets Finance and Trade
Pages: 2253-2266
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2016.1185710
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1185710
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Template-Type: ReDIF-Article 1.0
Author-Name: Ulrich Volz
Author-X-Name-First: Ulrich
Author-X-Name-Last: Volz
Title: Toward the Development of a Global Financial Safety Net or a Segmentation of the Global Financial Architecture?
Abstract: 
 This article examines the prospects for the development of a comprehensive global financial safety net (GFSN). It discusses the optimal layout of the GFSN, comprising the International Monetary Fund, regional financing arrangements (RFAs), as well as bilateral or multilateral central bank swap arrangements, and the relationship between these. It then briefly reviews and appraises the current structure and functioning of these different layers of the GFSN and discusses the need and scope for strengthening cooperation between RFAs and the IMF. It argues that the GFSN is still very patchy and there is little reason to expect significant progress in better collaboration between RFAs and the IMF as long as the latter’s governance structure is not significantly revamped. Indeed, risks are that the GFSN will become even more fragmented with the further development of the European Stability Mechanism, and the emergence of the BRICS Contingent Reserve Arrangement. To prevent a further fragmentation of the GFSN, substantial governance reform of the IMF is urgently needed.
Journal: Emerging Markets Finance and Trade
Pages: 2221-2237
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2016.1186011
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1186011
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Template-Type: ReDIF-Article 1.0
Author-Name: Jon Carrick
Author-X-Name-First: Jon
Author-X-Name-Last: Carrick
Title: Bitcoin as a Complement to Emerging Market Currencies
Abstract: 
 Bitcoin is a digital currency that has gained significant traction as an economic instrument. Despite its rise, it has received little attention from the scholarly community. This study is one of the first studies to examine Bitcoin’s use as a complement to emerging markets currencies; more specifically, I analyze the value and volatility of Bitcoin relative to emerging market currencies and explore ways in which Bitcoin can complement emerging market currencies. The results suggest that Bitcoin has characteristics that make it well-suited to work as a complement to emerging market currencies and that there are ways to minimize Bitcoin’s risks.
Journal: Emerging Markets Finance and Trade
Pages: 2321-2334
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2016.1193002
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1193002
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Template-Type: ReDIF-Article 1.0
Author-Name: Hankil Kang
Author-X-Name-First: Hankil
Author-X-Name-Last: Kang
Author-Name: Jangkoo Kang
Author-X-Name-First: Jangkoo
Author-X-Name-Last: Kang
Author-Name: Soonhee Lee
Author-X-Name-First: Soonhee
Author-X-Name-Last: Lee
Title: Which Traders Contribute Most to Price Discovery? Evidence from the KOSPI 200 Options Market
Abstract: 
 We examine which group of investors—individuals, institutions, or foreigners—has more information about the true price process in the Korea Stock Price Index 200 (KOSPI 200) options market. Using the Hasbrouck (1995) information share and the Gonzalo and Granger (1995) common factor weight approach, we show that foreigners are the most informative about the efficient price process, and domestic institutional investors as well as individual investors have small contribution to price discovery. This result holds firmly, even after controlling for the effects of trading volume and the number of trades. Our empirical results suggest that foreigners are informed traders in the KOSPI 200 options market, consistent with the findings of Ahn, Kang, and Ryu (2008).
Journal: Emerging Markets Finance and Trade
Pages: 2335-2347
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2016.1196927
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1196927
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:10:p:2335-2347




Template-Type: ReDIF-Article 1.0
Author-Name: Wook Sohn
Author-X-Name-First: Wook
Author-X-Name-Last: Sohn
Author-Name: Jeong-ae Choi
Author-X-Name-First: Jeong-ae
Author-X-Name-Last: Choi
Title: Global Financial Stability and Regional Financial Arrangements
Journal: Emerging Markets Finance and Trade
Pages: 2209-2211
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2016.1203534
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1203534
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Template-Type: ReDIF-Article 1.0
Author-Name: Wook Sohn
Author-X-Name-First: Wook
Author-X-Name-Last: Sohn
Author-Name: Woo Jin Chung
Author-X-Name-First: Woo Jin
Author-X-Name-Last: Chung
Title: Regional Financial Arrangements: A Survey of the Literature and Recent Developments
Abstract: 
 This article summarizes recent studies on regional financial arrangements (RFAs) and examines the role played by global multilaterals and RFAs in emerging crises. We also review the major RFAs with regard to their basic organizational structure, activities, legal framework, and lending facilities. Finally, we discuss the attributes needed for the sustainable development of RFAs and we look at how they can expand their role for economic cooperation in the associated regions.
Journal: Emerging Markets Finance and Trade
Pages: 2238-2252
Issue: 10
Volume: 52
Year: 2016
Month: 10
X-DOI: 10.1080/1540496X.2016.1203781
File-URL: http://hdl.handle.net/10.1080/1540496X.2016.1203781
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Handle: RePEc:mes:emfitr:v:52:y:2016:i:10:p:2238-2252




Template-Type: ReDIF-Article 1.0
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Karim Barkat
Author-X-Name-First: Karim
Author-X-Name-Last: Barkat
Author-Name: Mohamed Elafif
Author-X-Name-First: Mohamed
Author-X-Name-Last: Elafif
Title: The Impacts of Trade and Financial Developments on Economic Growth in Turkey: ARDL Approach with Structural Break
Abstract: 
 This study examines the impacts of trade openness, financial development, and energy imports on per capita real GDP in Turkey over the 1960–2014 period. The results show that there is evidence of a stable relationship in the presence of a shift in the cointegration vector in 1980 and 1988. Furthermore, the results indicate that trade openness and financial development have a positive impact on per capita real GDP growth whereas energy imports have a negative impact. Consequently, policy-makers should adopt policies that sustain the benefits of trade and financial developments and improve the use of renewable energy to counterbalance the negative effect of energy imports on economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 1671-1680
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1521800
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1521800
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:8:p:1671-1680




Template-Type: ReDIF-Article 1.0
Author-Name: Surajit Das
Author-X-Name-First: Surajit
Author-X-Name-Last: Das
Author-Name: Israa A. El Husseiny
Author-X-Name-First: Israa A.
Author-X-Name-Last: El Husseiny
Title: Paradox of Austerity: Multi-Country Evidence
Abstract: 
 This article seeks to explore whether a reduction in the government expenditure would necessarily reduce the fiscal deficit to GDP ratio or not. It has been theoretically argued that this would really depend upon the values of the government expenditure elasticity and that of the revenue buoyancy of the economies, which are, in turn, dependent upon various institutional and historical factors of the respective economies. Based on available empirical evidence from 175 countries for 15 years (from 2000 to 2014), the authors argue that a cut in the government expenditure might paradoxically lead to a higher fiscal deficit to GDP ratio for about half of the countries around the globe. This study tries to argue that an improvement in the value of fiscal multiplier and that in the tax buoyancy can be the policy alternatives to various painful austerity measures.
Journal: Emerging Markets Finance and Trade
Pages: 1681-1693
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1530652
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530652
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Template-Type: ReDIF-Article 1.0
Author-Name: Narman Kuzucu
Author-X-Name-First: Narman
Author-X-Name-Last: Kuzucu
Author-Name: Serpil Kuzucu
Author-X-Name-First: Serpil
Author-X-Name-Last: Kuzucu
Title: What Drives Non-Performing Loans? Evidence from Emerging and Advanced Economies during Pre- and Post-Global Financial Crisis
Abstract: 
 We examine the determinants of non-performing loans (NPLs) in emerging countries compared to advanced countries during pre- and post-global financial crisis using dynamic panel estimation techniques. We analyze the effects of banking sector-specific factors and macroeconomic factors on NPLs utilizing a panel data set of emerging and advanced countries. Our results suggest that real GDP growth is the main determinant that affects the NPL ratio, and NPLs exhibit high persistence in emerging and advanced economies both for the pre- and post-crisis periods. We find that exchange rate and foreign direct investments (FDI) become statistically significant for emerging countries after the crisis period.
Journal: Emerging Markets Finance and Trade
Pages: 1694-1708
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1547877
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1547877
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Template-Type: ReDIF-Article 1.0
Author-Name: Ergys Islamaj
Author-X-Name-First: Ergys
Author-X-Name-Last: Islamaj
Author-Name: M. Ayhan Kose
Author-X-Name-First: M. Ayhan
Author-X-Name-Last: Kose
Author-Name: Franziska L. Ohnsorge
Author-X-Name-First: Franziska L.
Author-X-Name-Last: Ohnsorge
Author-Name: Lei Sandy Ye
Author-X-Name-First: Lei Sandy
Author-X-Name-Last: Ye
Title: Explaining Recent Investment Weakness: Causes and Implications
Abstract: 
 This article investigates the drivers of investment growth in emerging market and developing economies with a focus on the most recent slowdown over the 2010–2015 period. Using panel regression techniques, we find that the recent investment slowdown in emerging market and developing economies is associated with a range of obstacles: weak economic activity, negative terms-of-trade shocks, declining foreign direct investment inflows, elevated private debt burdens, and heightened political risk. This stands in contrast with advanced economies, where weak economic activity is the most important factor. We briefly discuss policy implications of our findings.
Journal: Emerging Markets Finance and Trade
Pages: 1709-1721
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1530105
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530105
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Template-Type: ReDIF-Article 1.0
Author-Name: Kenta Funaoka
Author-X-Name-First: Kenta
Author-X-Name-Last: Funaoka
Author-Name: Yusaku Nishimura
Author-X-Name-First: Yusaku
Author-X-Name-Last: Nishimura
Title: Private Information, Investor Sentiment, and IPO Pricing: Which Institutional Investors Are Better Informed?
Abstract: 
 We provide new empirical evidence that certain institutional investors have private information that they use to profit from initial public offerings (IPOs). In this study, we analyze the bidding information related to five types of institutional investors in China’s ChiNext market to examine the impact of private information and investor sentiment on first-day IPO returns. The results show that private information and institutional investor sentiment are positively correlated with initial returns. The analysis of the different institutional sectors shows that some securities companies may profit from IPOs by using private information. It was also found that qualified foreign institutional investors (QFII) may be at an informational disadvantage on the Chinese stock market.
Journal: Emerging Markets Finance and Trade
Pages: 1722-1736
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1484355
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1484355
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Template-Type: ReDIF-Article 1.0
Author-Name: Goknur Buyukkara
Author-X-Name-First: Goknur
Author-X-Name-Last: Buyukkara
Author-Name: Mehmet Baha Karan
Author-X-Name-First: Mehmet
Author-X-Name-Last: Baha Karan
Author-Name: Huseyin Temiz
Author-X-Name-First: Huseyin
Author-X-Name-Last: Temiz
Author-Name: Yilmaz Yildiz
Author-X-Name-First: Yilmaz
Author-X-Name-Last: Yildiz
Title: Exchange Rate Risk and Corporate Hedging: Evidence from Turkey
Abstract: 
 The aim of this study is to investigate the effect of exchange rate risk on corporate hedging in Turkey. Our panel logit analysis for the period 2009–2015 favors the financial distress hypothesis of hedging rather than the agency cost or investment opportunities hypotheses. The US dollar exchange rate affects the likelihood of currency risk hedging more than the conventional firm-specific determinants of corporate hedging especially after the Fed tapering period. Our findings reveal that, as the dollar exchange rate rises, firms increase their hedging activity since they carry considerable amount of debt in dollars, particularly aftermath of the global financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 1737-1753
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1490262
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1490262
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Template-Type: ReDIF-Article 1.0
Author-Name: Helian Xu
Author-X-Name-First: Helian
Author-X-Name-Last: Xu
Author-Name: Moga Tano Jilenga
Author-X-Name-First: Moga Tano
Author-X-Name-Last: Jilenga
Author-Name: Yuping Deng
Author-X-Name-First: Yuping
Author-X-Name-Last: Deng
Title: Institutional Quality, Resource Endowment, and Economic Growth: Evidence from Cross-Country Data
Abstract: 
 We empirically examine the moderating role of institutional quality on resource curse effects. The estimated results provide significant evidence for the presence of spatial autocorrelation in economic growth. We also find that institutional quality affects both local and neighboring economies, with the relationship following a U-shaped pattern, and these nonlinear influences can be attributed to resource allocation effects for the former and demonstration effects for the latter. Additionally, resource endowment moderates the relationship between institutional quality and economic performance, with the modified relationship following an inverted U-shaped pattern; this influence stems from investment expansion effects and passivation effects.
Journal: Emerging Markets Finance and Trade
Pages: 1754-1775
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1496418
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496418
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Template-Type: ReDIF-Article 1.0
Author-Name: Moau Yong Toh
Author-X-Name-First: Moau Yong
Author-X-Name-Last: Toh
Author-Name: Christopher Gan
Author-X-Name-First: Christopher
Author-X-Name-Last: Gan
Author-Name: Zhaohua Li
Author-X-Name-First: Zhaohua
Author-X-Name-Last: Li
Title: Revisiting the Impact of Stock Market Liquidity on Bank Liquidity Creation: Evidence from Malaysia
Abstract: 
 This article examines the impact of stock market liquidity on bank liquidity creation in Malaysia. Our results indicate that a stock market enhances the liquidity creation of banks both on and off the banks’ balance sheets when the market liquidity increases. Further analysis shows that the positive impact of stock market liquidity is evident on the liquidity creation of publicly listed banks as the banks’ cost of equity finance becomes cheaper. Our results are robust to the influence of the 2008 financial crisis and different estimation methods. Our results refute the traditional view that increased stock market liquidity “steals” banks’ business and crowds out bank liquidity creation.
Journal: Emerging Markets Finance and Trade
Pages: 1776-1802
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1496420
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496420
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:8:p:1776-1802




Template-Type: ReDIF-Article 1.0
Author-Name: Abubakr Saeed
Author-X-Name-First: Abubakr
Author-X-Name-Last: Saeed
Author-Name: Muhammad Sameer
Author-X-Name-First: Muhammad
Author-X-Name-Last: Sameer
Author-Name: Muhammad Mustafa Raziq
Author-X-Name-First: Muhammad Mustafa
Author-X-Name-Last: Raziq
Author-Name: Aneel Salman
Author-X-Name-First: Aneel
Author-X-Name-Last: Salman
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: Board Gender Diversity and Organizational Determinants: Empirical Evidence from a Major Developing Country
Abstract: 
 This article seeks to identify and analyze the organizational determinants of women presence on Indian corporate boards. Using a sample set of 294 Indian firms between years 2004–2014, Tobit regression analysis indicates that firm size, family ownership and affiliation with the high-tech sector exhibit positive association with the number of female directors on corporate boards. Further, we do not find any significant impact of state-ownership on the number of women on those boards. Notably, the effects of the organizational variables are more pronounced for the proportion of female non-executive directors, as compared to female executive directors. We conclude that understanding the organizational characteristics in conjunction with business environment can provide useful insights into state of board gender diversity, particularly in developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 1803-1820
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1496421
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496421
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Template-Type: ReDIF-Article 1.0
Author-Name: Kuei-Yuan Wang
Author-X-Name-First: Kuei-Yuan
Author-X-Name-Last: Wang
Author-Name: Yu-Sin Huang
Author-X-Name-First: Yu-Sin
Author-X-Name-Last: Huang
Title: Effects of Transparency on Herding Behavior: Evidence from the Taiwanese Stock Market
Abstract: 
 This study combines the concepts of information asymmetry from classical finance theory and herding behavior from modern behavioral finance theory to investigate whether herding behavior exists in the Taiwan stock market. Scores from the Information Disclosure and Transparency Ranking System (IDTRs) are incorporated into the nonlinear model proposed by Chang, Cheng, and Khorana (2000). The empirical results reveal that herding behavior is prevalent in the Taiwan stock market and the implementation of the IDTRs has effectively discouraged such behavior. In addition, the empirical results of this study reveal that the lower level of transparency, the more prevalent of herding behavior in the Taiwan stock market. The empirical results confirm the government’s efforts to increase the transparency of listed firms in order to reduce information asymmetry and prevent investors from engaging in herding behaviors.
Journal: Emerging Markets Finance and Trade
Pages: 1821-1840
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1504289
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1504289
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:8:p:1821-1840




Template-Type: ReDIF-Article 1.0
Author-Name: Christos Bouras
Author-X-Name-First: Christos
Author-X-Name-Last: Bouras
Author-Name: Christina Christou
Author-X-Name-First: Christina
Author-X-Name-Last: Christou
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Tahir Suleman
Author-X-Name-First: Tahir
Author-X-Name-Last: Suleman
Title: Geopolitical Risks, Returns, and Volatility in Emerging Stock Markets: Evidence from a Panel GARCH Model
Abstract: 
 In this article, we analyze the role of country-specific and global geopolitical risks (GPRs) on the returns and volatility of 18 emerging market economies over the monthly period of 1998:11 to 2017:06. For our purpose, we use a panel Generalized Autoregressive Conditional Heteroskedasticity (GARCH) approach, which offers substantial efficiency gains in estimating the conditional variance and covariance processes by accounting for interdependencies and heterogeneity across economies, unlikein a time series-based GARCH model. We find that, while country-specific GPRs do not have an impact on stock returns, and the positive effect on equity market volatility is statistically weak. But when we consider a broad measure of global GPR, though there is still no significant effect on returns, the impact on volatility is both economically and statistically stronger than that obtained under the country-specific GPRs, thus highlighting the dominance of global rather than domestic shocks.
Journal: Emerging Markets Finance and Trade
Pages: 1841-1856
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1507906
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1507906
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:8:p:1841-1856




Template-Type: ReDIF-Article 1.0
Author-Name: Ehab Yamani
Author-X-Name-First: Ehab
Author-X-Name-Last: Yamani
Title: Is It Liquidity or Quality that Matters More in Foreign Exchange Markets?
Abstract: 
 This article examines whether liquidity or credit quality (probability of default) “contributes” more to the explanation of currency excess returns, using two baskets of bilateral exchange rates—developed and emerging countries. My central finding is that US investors generally care only about liquidity when they invest in developed market currencies which are more liquid than emerging market currencies. During heightened market uncertainty, however, investors in developed market currencies also care about credit quality because only developed countries provide lower credit risk premia (i.e., hedge) during times of tension when currency traders generally tend to rebalance their portfolios toward currencies with lower probability of default. Conversely, US investors in emerging market currencies demand a credit risk premium since they are concerned about credit quality of these countries.
Journal: Emerging Markets Finance and Trade
Pages: 1857-1879
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1508441
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1508441
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Template-Type: ReDIF-Article 1.0
Author-Name: Adolfo Cristóbal Campoamor
Author-X-Name-First: Adolfo
Author-X-Name-Last: Cristóbal Campoamor
Author-Name: Manuel Alejandro Cardenete Flores
Author-X-Name-First: Manuel Alejandro
Author-X-Name-Last: Cardenete Flores
Author-Name: Pedro Caldentey Del Pozo
Author-X-Name-First: Pedro
Author-X-Name-Last: Caldentey Del Pozo
Author-Name: Olexandr Nekhay
Author-X-Name-First: Olexandr
Author-X-Name-Last: Nekhay
Title: Intra-Regional vs. Extra-Regional Trade Liberalization in Central America
Abstract: 
 Although the Central American countries trade very extensively with the USA, the remarkable growth of their intra-regional exports is prone to create more internal added value for the region. Taking this background into account, we use and compare a standard, perfectly competitive and an imperfectly competitive GTAP CGE model based on the GTAP 9 database, to assess different scenarios. Our simulations evaluate the elimination of all existing import taxes and export subsidies in 2011, both at the intra-regional level and vis-à-vis the USA. The results emphasize the preference by most of the Central American countries for the completion of the Customs Union at the expense of a deepening of the DR-CAFTA agreements.
Journal: Emerging Markets Finance and Trade
Pages: 1880-1892
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1521802
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1521802
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:8:p:1880-1892




Template-Type: ReDIF-Article 1.0
Author-Name: Ageliki Anagnostou
Author-X-Name-First: Ageliki
Author-X-Name-Last: Anagnostou
Author-Name: Paweł Gajewski
Author-X-Name-First: Paweł
Author-X-Name-Last: Gajewski
Title: Heterogeneous Impact of Monetary Policy on Regional Economic Activity: Empirical Evidence for Poland
Abstract: 
 This article investigates the regional impact of monetary policy shocks in Poland. Regional responses to monetary policy shocks are estimated using Bayesian vector autoregressive approach, which allows us to model the entire panel of Polish regions through the imposition of a shrinkage prior. We then investigate factors underlying the asymmetric regional responses. We show that the regional differentiation in output response is stronger than those of unemployment or inflation. The asymmetry seems to be related to the regional industrial structure and demographic features.
Journal: Emerging Markets Finance and Trade
Pages: 1893-1906
Issue: 8
Volume: 55
Year: 2019
Month: 6
X-DOI: 10.1080/1540496X.2018.1531751
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1531751
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:8:p:1893-1906




Template-Type: ReDIF-Article 1.0
Author-Name: Ke Zou
Author-X-Name-First: Ke
Author-X-Name-Last: Zou
Author-Name: Jing He
Author-X-Name-First: Jing
Author-X-Name-Last: He
Title: Intra-Provincial Financial Disparity, Economic Disparity, and Regional Development in China: Evidence from Prefecture-Level City Data
Abstract: 
 The uneven spatial distribution of economic and financial activities in China has long been a concern of both researchers and policy makers. While most previous research focuses on China’s regional disparities measured using provincial data, this article investigates intra-provincial disparities which reflect the dispersion among cities within a given province. Using data on 282 prefecture-level cities in 25 provinces from 2003 to 2012, the relationship between economic disparity and financial disparity is investigated, after which the effects of the intra-provincial disparities on provincial economic growth are examined. It is found that intra-provincial financial disparity and economic disparity are positively correlated. The results also show that intra-provincial economic disparity has no effect on provincial economic growth. The intra-provincial financial disparity, however, has a negative effect on the local economic growth rate. Therefore, developing financial inclusion and narrowing financial disparity are important measures to maintain sustainable and inclusive economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 3064-3080
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2017.1364236
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1364236
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Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Jun-Yu Ren
Author-X-Name-First: Jun-Yu
Author-X-Name-Last: Ren
Author-Name: Yu-Li Huang
Author-X-Name-First: Yu-Li
Author-X-Name-Last: Huang
Author-Name: Jun-Guo Shi
Author-X-Name-First: Jun-Guo
Author-X-Name-Last: Shi
Author-Name: An-Qi Wang
Author-X-Name-First: An-Qi
Author-X-Name-Last: Wang
Title: Creating Financial Cycles in China and Interaction with Business Cycles on the Chinese Economy
Abstract: 
 This study creates a Chinese financial cycle index to examine the lead-and-lag relations between business and financial cycles. We examine the macroeconomic performance when these cycles are in boom, bust, and other combinations. We have four interesting results. First, financial cycles occur less frequently than business cycles. Second, the upturn phase of a financial cycle is significantly longer than the downturn phase. Third, gross domestic product growth rates are at their lowest when the two cycles are in troughs and the highest when they reach their peaks. We find similar results for employment, inflation, and consumption rates. Fourth, financial cycles lead business cycles but not vice versa. Hence, policymakers should consider the financial system before bailing out the real economy, which alone is insufficient for the recovery of the macro economy.
Journal: Emerging Markets Finance and Trade
Pages: 2897-2908
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2017.1369402
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1369402
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:13:p:2897-2908




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Niloy Bose
Author-X-Name-First: Niloy
Author-X-Name-Last: Bose
Author-Name: Yun Zhang
Author-X-Name-First: Yun
Author-X-Name-Last: Zhang
Title: Asymmetric Cointegration, Nonlinear ARDL, and the J-Curve: A Bilateral Analysis of China and Its 21 Trading Partners
Abstract: 
 This article follows the nonlinear Autoregressive Distributed Lag (ARDL) error-correction methodology to explore nonlinearity in the relationship between the trade balances and the real exchange rates for China and its 21 partners. We find evidence for short-run asymmetric effects of exchange rate in cases of 18 partners, short-run adjustment asymmetry in cases of 11 partners, short-run cumulative asymmetry in cases of seven partners, and a significant long-run asymmetric effect cases of five partners. We find support for the “J-curve” that is only due to appreciation or depreciation of the Yuan in cases of five partners, including the U.S.
Journal: Emerging Markets Finance and Trade
Pages: 3131-3151
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2017.1373337
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1373337
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:13:p:3131-3151




Template-Type: ReDIF-Article 1.0
Author-Name: Dihong Chen
Author-X-Name-First: Dihong
Author-X-Name-Last: Chen
Author-Name: Chunv Xiao
Author-X-Name-First: Chunv
Author-X-Name-Last: Xiao
Author-Name: Jiaheng Zang
Author-X-Name-First: Jiaheng
Author-X-Name-Last: Zang
Author-Name: Zilan Liu
Author-X-Name-First: Zilan
Author-X-Name-Last: Liu
Title: Old-Age Social Insurance and Household Consumption: Evidence from China
Abstract: 
 Improving social welfare and stimulating consumption are two important issues in promoting economic growth. Based on the panel data of China Health and Retirement Longitudinal Study 2011 and 2013, this article precisely calculated the Social Security Wealth of employees and residents. The fixed-effect model and quantile regression method were employed. Besides, this study used the interaction of year dummy and age dummy as an instrumental variable. The results from this study indicate that Social Security Wealth can promote the total household consumption as well as improve the household consumption structure. However, the impact varies in both employees and residents’ groups.
Journal: Emerging Markets Finance and Trade
Pages: 2948-2964
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2017.1379391
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1379391
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhonghai Liu
Author-X-Name-First: Zhonghai
Author-X-Name-Last: Liu
Author-Name: Kuangqi Li
Author-X-Name-First: Kuangqi
Author-X-Name-Last: Li
Author-Name: Ning Zhang
Author-X-Name-First: Ning
Author-X-Name-Last: Zhang
Author-Name: Lianyou Li
Author-X-Name-First: Lianyou
Author-X-Name-Last: Li
Author-Name: Yi Fan
Author-X-Name-First: Yi
Author-X-Name-Last: Fan
Title: Are Farmers’ Behaviors Rational When They Pay Less for Social Endowment Insurance? Evidence from Chinese Rural Survey Data
Abstract: 
 In recent years, farmers have had high participation rate in the rural social endowment insurance in China, for which personal contribution and government subsidy are the main funding source. There have been increasingly more farmers participating into the program. However, their enthusiasm for high premium payment was rather low as most of them selected the minimum premium for insurance. In this article, the discounted utility theory from behavioral economics was adopted to analyze insurance selection behaviors of farmers; in addition, a discounted incremental utility model with a hyperbolic discounting function was also further constructed to describe their insurance decision-making processes. Based on the investigation of time preferences of farmers, their insurance participation behaviors of diverse natures were simulated. The corresponding results indicated that active insurance participation and low insurance premium payment were rational choices for most farmers; in comparison, for the elders with higher income, different choices can be made. Therefore, policy makers could formulate differentiated subsidy policies directing at farmers from different groups, so as to stimulate their enthusiasm for premium payment.
Journal: Emerging Markets Finance and Trade
Pages: 2995-3012
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2017.1382347
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1382347
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:13:p:2995-3012




Template-Type: ReDIF-Article 1.0
Author-Name: Lingbing Feng
Author-X-Name-First: Lingbing
Author-X-Name-Last: Feng
Author-Name: Tong Fu
Author-X-Name-First: Tong
Author-X-Name-Last: Fu
Author-Name: Ali M. Kutan
Author-X-Name-First: Ali M.
Author-X-Name-Last: Kutan
Title: Fuel Intensity, Access to Finance and Profitability: Firm-Level Evidence from China
Abstract: 
 Sustainability and energy economics together as a field has rapidly developed in recent years. However, it is still limited of the literature regarding the effect of energy on firm performance. This article fills the gap by providing empirical evidence from China on the fuel intensity-performance link at the firm level. Our findings are summarized as follows: (i) firms’ fuel intensity significantly constrains the firms’ profitability and the constraint effect is significantly greater for firms with no access to finance; (ii) an increase in fuel intensity reduces profitability by intensifying the financial constraint effect; and (iii) financial access moderates the constraint effect of fuel intensity on firm’s performance. The policy implications of the findings are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 3117-3130
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2017.1403317
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1403317
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:13:p:3117-3130




Template-Type: ReDIF-Article 1.0
Author-Name: Di Yuan
Author-X-Name-First: Di
Author-X-Name-Last: Yuan
Author-Name: Xiafei Zhou
Author-X-Name-First: Xiafei
Author-X-Name-Last: Zhou
Author-Name: Shan Li
Author-X-Name-First: Shan
Author-X-Name-Last: Li
Title: The Dynamics of Financial Market Integration Between Chinese A- and H-Shares
Abstract: 
 This study examines the dynamics and underlying determinants of integration based on cross-listed Chinese A-shares and Hong Kong H-shares from January 1996 to December 2016. We focus mainly on three liberalization reforms: the qualified foreign institutional investors (QFII) policy, the qualified domestic institutional investors (QDII) policy, and the Shanghai-Hong Kong Stock Connect program. Our results show that the QDII policy has significantly increased the integration between the Mainland China and Hong Kong stock markets, although the extent to which any stock has been affected is partly dependent upon certain firm-specific characteristics, including liquidity, market value, and volatility. However, we do not document the similar effect of the QFII policy and the Shanghai-Hong Kong Stock Connect program on the integration dynamics.
Journal: Emerging Markets Finance and Trade
Pages: 2909-2924
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2017.1410128
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1410128
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:13:p:2909-2924




Template-Type: ReDIF-Article 1.0
Author-Name: Yi Liu
Author-X-Name-First: Yi
Author-X-Name-Last: Liu
Author-Name: Quanli Zhou
Author-X-Name-First: Quanli
Author-X-Name-Last: Zhou
Author-Name: Xuan Zhao
Author-X-Name-First: Xuan
Author-X-Name-Last: Zhao
Author-Name: Yudong Wang
Author-X-Name-First: Yudong
Author-X-Name-Last: Wang
Title: Can Listing Information Indicate Borrower Credit Risk in Online Peer-to-Peer Lending?
Abstract: 
 Effective assessment of borrower credit risk is the greatest challenge for peer-to-peer (P2P) lenders, especially in the Chinese market, where borrowers lack widely recognized credit scores. In this study, based on credit data from 2012 to 2015 from the website Renrendai.com, a logit model was used to assess borrower credit risk and predict the probability of default in every out-of-sample listing. The predicted probability of default was then compared with the actual default observation of default. The empirical results show that the logit model can evaluate the credit risk of P2P borrowers, and the model reduces the default rate to 9.5%, compared with the total sample default rate of 16.5%.
Journal: Emerging Markets Finance and Trade
Pages: 2982-2994
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2018.1427061
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1427061
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:13:p:2982-2994




Template-Type: ReDIF-Article 1.0
Author-Name: Yinghua Ren
Author-X-Name-First: Yinghua
Author-X-Name-Last: Ren
Author-Name: Lin Chen
Author-X-Name-First: Lin
Author-X-Name-Last: Chen
Author-Name: Ye Liu
Author-X-Name-First: Ye
Author-X-Name-Last: Liu
Title: The Onshore–Offshore Exchange Rate Differential, Interest Rate Spreads, and Internationalization: Evidence from the Hong Kong Offshore Renminbi Market
Abstract: 
 This article investigates the linkages among the onshore–offshore exchange rate differential, interest rate spreads, and Hong Kong’s RMB deposits (a proxy for RMB internationalization), based on a structural vector autoregression model. We find that this differential and the spreads have significant effects on Hong Kong’s RMB deposits, but the rise in the spreads will lead to a decline in offshore RMB deposits in Hong Kong. The differential is a stronger factor than spread shocks in explaining fluctuations in Hong Kong’s RMB deposits. Moreover, an analysis of sources of the divergence in the differential and spreads finds several economic variables that are the significant and main factors.
Journal: Emerging Markets Finance and Trade
Pages: 3100-3116
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2018.1429262
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1429262
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:13:p:3100-3116




Template-Type: ReDIF-Article 1.0
Author-Name: Bo Liu
Author-X-Name-First: Bo
Author-X-Name-Last: Liu
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Jiangang Peng
Author-X-Name-First: Jiangang
Author-X-Name-Last: Peng
Title: Interest Rate Pass-Through in China: An Analysis of Chinese Commercial Banks
Abstract: 
 This study investigates the interest rate transmission in China. We analyze the extent to which the benchmark and wholesale interest rates are transmitted to the retail interest rates and focus particularly on the change in the interest rate pass-through after the interest rate liberalization. Using data of 16 listed banks from 2007Q1 to 2017Q3, we find that the pass-through is not yet complete. Even though interest rates have been liberalized on the policy level, the sensitivity of the retail interest rates to the wholesale rates has not increased enough as expected and may be explained by the market power of Chinese commercial banks.
Journal: Emerging Markets Finance and Trade
Pages: 3051-3063
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2018.1438258
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1438258
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:13:p:3051-3063




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Xingyu Fan
Author-X-Name-First: Xingyu
Author-X-Name-Last: Fan
Author-Name: Dengshi Huang
Author-X-Name-First: Dengshi
Author-X-Name-Last: Huang
Author-Name: Hongquan Zhu
Author-X-Name-First: Hongquan
Author-X-Name-Last: Zhu
Author-Name: Meng-Wen Wu
Author-X-Name-First: Meng-Wen
Author-X-Name-Last: Wu
Title: Financial Development and Economic Growth: Do Outliers Matter?
Abstract: 
 This study examines the effect of outliers on causal relationship between financial development and economic growth using 48 countries from 1988 to 2014. The dynamic panel model of Levine, Loayza, and Beck (2000) is used to examine this issue. We propose a novel approach by combining the least square dummy variable correction method (LSDVC) to remove the estimates bias in the dynamic panel model and the least trimmed squares (LTS) to control outlier influence. The combination of these two methods is referred to as LSDVC + LTS. Our results show a counter-intuitive evidence that bank development negatively affects economic growth when the outlier influence is ignored. This counter-intuitive evidence holds even when the conventional winsorization method is used to control the outliers. However, bank development exhibits a positive influence on economic growth once the proposed approach LSDVC + LTS is adopted. Also, stock market development exhibits a positive effect on economic growth regardless of the outliers.
Journal: Emerging Markets Finance and Trade
Pages: 2925-2947
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2018.1440547
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1440547
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Template-Type: ReDIF-Article 1.0
Author-Name: Ziang Zou
Author-X-Name-First: Ziang
Author-X-Name-Last: Zou
Author-Name: Yuqing Wu
Author-X-Name-First: Yuqing
Author-X-Name-Last: Wu
Author-Name: Qi Zhu
Author-X-Name-First: Qi
Author-X-Name-Last: Zhu
Author-Name: Shenggang Yang
Author-X-Name-First: Shenggang
Author-X-Name-Last: Yang
Title: Do Female Executives Prioritize Corporate Social Responsibility?
Abstract: 
 How do female executives view corporate social responsibility (CSR)? Previous studies have reported mixed findings on the relationship between female executives and CSR. We select a sample of Chinese listed firms and use propensity score matching to construct a new sample of firms and evaluate the gender transition (from male to female) of chief executive officers or board chairpersons (executives) who are randomly assigned to firms (i.e., the gender transition of executives is regarded as an exogenous event). Subsequently, we use a difference-in-differences approach to identify the pure effect of female executives on CSR. Our results indicate that female executives are more likely to encourage CSR reporting. Moreover, we suggest that the mechanism behind female executives prioritizing CSR is altruism preference rather than risk aversion preference.
Journal: Emerging Markets Finance and Trade
Pages: 2965-2981
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2018.1453355
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1453355
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Handle: RePEc:mes:emfitr:v:54:y:2018:i:13:p:2965-2981




Template-Type: ReDIF-Article 1.0
Author-Name: Yanjian Zhu
Author-X-Name-First: Yanjian
Author-X-Name-Last: Zhu
Author-Name: Zhaoying Wu
Author-X-Name-First: Zhaoying
Author-X-Name-Last: Wu
Author-Name: Xiaolin Yang
Author-X-Name-First: Xiaolin
Author-X-Name-Last: Yang
Title: Heterogeneity of Funds and Information Disclosure: Evidence
Abstract: 
 Institutional investors, especially public funds, play an important role in governing listed firms as they grow in Chinese stock markets. We classify each fund as “dedicated,” “transient,” or “mixed,” according to the concentration, turnover, and profit sensitivity of their stock holdings. We find that listed firms with more shares held by dedicated funds have a higher disclosure quality, while firms with more shares held by transient funds have a lower disclosure quality. These findings are consistent in different model settings. In addition, dedicated funds improve the disclosure quality of non-state-owned enterprises more than state-owned enterprises. Dedicated funds can benefit from the lower debt-financing cost and higher stock liquidity of firms with better disclosure quality.
Journal: Emerging Markets Finance and Trade
Pages: 3081-3099
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2018.1472078
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1472078
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Template-Type: ReDIF-Article 1.0
Author-Name: Haishu Qiao
Author-X-Name-First: Haishu
Author-X-Name-Last: Qiao
Author-Name: Meilin Chen
Author-X-Name-First: Meilin
Author-X-Name-Last: Chen
Author-Name: Yue Xia
Author-X-Name-First: Yue
Author-X-Name-Last: Xia
Title: The Effects of the Sharing Economy: How Does Internet Finance Influence Commercial Bank Risk Preferences?
Abstract: 
 In this article, we provide an evidence on the effects of the sharing economy by studying internet finance. It aims to explore how internet finance affects the relationship between commercial bank risk preferences and monetary policy, and discusses whether this impact varies across heterogeneous banks. The results suggest that having a loose monetary policy encourages a preference for risk. In addition, internet finance alters the sensitivity of bank risk behavior to monetary policy. Internet finance has a heterogeneous influence, depending on a bank’s ownership (i.e., state or private) and size. At privately owned banks, internet finance has only a moderate impact on the bank risk-taking transmission channel of monetary policy, unlike the subsample of large banks.
Journal: Emerging Markets Finance and Trade
Pages: 3013-3029
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2018.1481045
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1481045
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Template-Type: ReDIF-Article 1.0
Author-Name: Deng-Kui Si
Author-X-Name-First: Deng-Kui
Author-X-Name-Last: Si
Author-Name: Xiao-Lin Li
Author-X-Name-First: Xiao-Lin
Author-X-Name-Last: Li
Author-Name: Shi-jie Jiang
Author-X-Name-First: Shi-jie
Author-X-Name-Last: Jiang
Title: Can Insurance Activity Act as a Stimulus of Economic Growth? Evidence from Time-Varying Causality in China
Abstract: 
 This article investigates the nexus between insurance and economic growth in China with a dynamic interactive mechanism to study different time periods. Using quarterly data from 1999 to 2015, the rolling-window causality test provides evidence of bidirectional causality between insurance activity and economic growth. However, the “supply-leading” pattern tends to dominate the “demand-following” pattern, which implies that in China insurance acts as a stimulus of economic growth during most of the period. Property insurance is more effective than life insurance in stimulating economic growth. Some temporary negative impacts from the development of the insurance sector show that China is in the midst of a transition from a closed economy to a more open economy and policy interventions by the government to liberalize the insurance sector. These findings offer several useful insights for policy makers in transition economies and developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 3030-3050
Issue: 13
Volume: 54
Year: 2018
Month: 10
X-DOI: 10.1080/1540496X.2018.1504766
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1504766
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Template-Type: ReDIF-Article 1.0
Author-Name: Hwee Kwan Chow
Author-X-Name-First: Hwee Kwan
Author-X-Name-Last: Chow
Title: Volatility Spillovers and Linkages in Asian Stock Markets
Abstract: 
 Diebold–Yilmaz spillover indexes are computed for weekly return volatilities based on daily benchmark stock indexes of the US, the UK, and 10 Asian countries. We found (i) the strengthening of overall volatility spillovers is not a temporary surge but persisted after the crisis; (ii) the susceptibility of individual Asian stock markets to inward volatility transfers is linked to its degree of openness; and (iii) the Asian bourses are becoming more important emitters of financial shocks since the crisis. Rolling regressions on volatility linkages reveal the relative dominance of the US over the Japanese and Chinese bourses, and the level of influence on Asian stock markets from the Chinese bourse has risen to that of Japan.
Journal: Emerging Markets Finance and Trade
Pages: 2770-2781
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1314960
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1314960
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Template-Type: ReDIF-Article 1.0
Author-Name: Willem Thorbecke
Author-X-Name-First: Willem
Author-X-Name-Last: Thorbecke
Title: Rebalancing Trade in East Asia: Evidence from the Electronics Industry
Abstract: 
 China’s trade surplus remains huge. Researchers reported that China’s exports decimate manufacturing job abroad and stoke protectionist pressures. China’s surplus is concentrated in the electronics sector. Much of the value-added of China’s exports of smartphones, tablet computers, and consumer electronics goods comes from processors, sensors, and other parts and components (p&amp;c) produced in Taiwan, South Korea, Japan, and ASEAN. This article finds that the exchange rates in countries supplying p&amp;c are crucial for understanding China’s electronics exports. A concerted appreciation of East Asian currencies is needed to rebalance the region’s exports. However, because of underdeveloped financial markets, the U.S. dollar remains the most important currency in the currency baskets of many East Asian economies. Countries resist appreciation against the dollar to maintain competitiveness vis-à-vis neighboring economies. This article considers ways to overcome this coordination failure and develop stronger consumption-oriented economies in the region.
Journal: Emerging Markets Finance and Trade
Pages: 2696-2705
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1318751
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1318751
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Template-Type: ReDIF-Article 1.0
Author-Name: Markus Brueckner
Author-X-Name-First: Markus
Author-X-Name-Last: Brueckner
Title: Economic Growth and the GDP Share of Consumption: An Empirical Analysis for Asia
Abstract: 
 The majority of Asian countries, in particular, those located in East Asia, such as China, are characterized by high GDP shares of consumption. While over the past two decades there has been a remarkable growth in consumption, and to a lesser extent of consumption per capita, the GDP share of the consumption has declined by a considerable amount in Asia. The article presents projections of the GDP consumption share. The projections are based on time series models and an econometric model that relates the GDP share of consumption to GDP growth. Instrumental variables estimates show that the GDP share of consumption is significantly negatively related to growth: A decrease in PPP GDP per capita growth of 1 percentage point increases the GDP share of consumption by around 2 percentage points. Slower growth in Asia would thus significantly contribute to a higher GDP share of consumption in that region.
Journal: Emerging Markets Finance and Trade
Pages: 2782-2793
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1320986
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1320986
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Template-Type: ReDIF-Article 1.0
Author-Name: Cyn-Young Park
Author-X-Name-First: Cyn-Young
Author-X-Name-Last: Park
Title: Developing Local Currency Bond Markets in Asia
Abstract: 
 Local currency bond markets in emerging Asian economies have expanded dramatically since governments took steps to end the currency and maturity mismatches that savaged borrowers in the region’s financial crisis 20 years ago. However, much more needs to be done to strengthen market infrastructure and institutions, address inconsistent policies and regulations, and enhance corporate governance. This article presents evidence that better macroeconomic performance and stronger institutions help develop larger local currency bond markets and also create conditions for the growth in local currency sales of corporate debt and bonds with longer maturities. Regional integration can be stepped up to support the key determinants for developing efficient local currency bond markets in emerging Asia.
Journal: Emerging Markets Finance and Trade
Pages: 2826-2844
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1321539
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1321539
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Template-Type: ReDIF-Article 1.0
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Kwanho Shin
Author-X-Name-First: Kwanho
Author-X-Name-Last: Shin
Title: Economic Growth, Financial Development, and Income Inequality
Abstract: 
 The central objective of our article is to empirically examine the relationship between financial development and income inequality. Theoretically, there are grounds for both a positive and negative relationship between the two variables. Our main finding is that financial development contributes to lower inequality up to a point, but as financial development proceeds further, it contributes to higher inequality. We also find that when the ratio of primary schooling to total schooling increases and law and order improves, financial development becomes more effective in reducing inequality. Finally, we find that financial inclusion is particularly effective in lowering income inequality.
Journal: Emerging Markets Finance and Trade
Pages: 2794-2825
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1333958
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1333958
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:12:p:2794-2825




Template-Type: ReDIF-Article 1.0
Author-Name: Eiji Ogawa
Author-X-Name-First: Eiji
Author-X-Name-Last: Ogawa
Author-Name: Makoto Muto
Author-X-Name-First: Makoto
Author-X-Name-Last: Muto
Title: Inertia of the US Dollar as a Key Currency Through the Two Crises
Abstract: 
 This article investigates effects of the global financial crisis (GFC) as well as the euro zone crisis on the position of US dollar as a key currency. We base on a money-in-the-utility model to analyze empirically whether the two crises changed a coefficient on real balance of US dollar in the utility function or its contribution to utility. An empirical result is that the contribution of US dollar to utility decreased during a period when financial institutions faced the US dollar liquidity shortages. The liquidity shortage decreased the contribution of US dollar to utility during the global financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 2706-2724
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1336998
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1336998
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Template-Type: ReDIF-Article 1.0
Author-Name: Deniz Igan
Author-X-Name-First: Deniz
Author-X-Name-Last: Igan
Author-Name: Zhibo Tan
Author-X-Name-First: Zhibo
Author-X-Name-Last: Tan
Title: Capital Inflows, Credit Growth, and Financial Systems
Abstract: 
 Exploiting a granular panel dataset that breaks down capital inflows into FDI, portfolio and other categories, and distinguishes between credit to households and to corporations, we investigate the association between capital inflows and credit growth. We find that non-FDI inflows boost credit growth and increase the likelihood of credit booms in both household and corporate sectors. For household credit, the composition of inflows appears to be more important than financial system characteristics. In contrast, for corporate credit, both the composition and the financial system matter. Regardless of sectors and financial systems, other inflows are always linked to rapid credit growth. Firm-level data corroborate these findings and hint at a causal link: other inflows are related to more rapid credit growth for firms that rely more heavily on external financing. Further explorations on how capital inflows translate into more credit indicate that both demand and supply side factors play a role.
Journal: Emerging Markets Finance and Trade
Pages: 2649-2671
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1339186
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1339186
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Template-Type: ReDIF-Article 1.0
Author-Name: Shin-ichi Fukuda
Author-X-Name-First: Shin-ichi
Author-X-Name-Last: Fukuda
Author-Name: Mariko Tanaka
Author-X-Name-First: Mariko
Author-X-Name-Last: Tanaka
Title: The Impacts of Emerging Asia on Global Financial Markets
Abstract: 
 The purpose of this article is to explore to what extent spillovers from Asian financial market shocks have risen during the past two decades. In the first part, we examine spillover effects in stock markets. Estimating the Global Vector Autoregressive (GVAR) model, we find that spillover effects from emerging Asia became large in the post Global Financial Crisis (GFC) period. However, we also find that most of the spillover effects were from shocks in the manufacturing sector rather than from those in the financial sector. This implies that the spillover effects increased in the post GFC period because of increased manufacturing sector’s shocks in emerging Asia. In the second part, we examine spillover effects across different foreign exchange rates. As in the stock markets, spillover effects from emerging Asia became large in the foreign exchange markets in the post GFC period. In particular, our high frequency data analysis suggests that an exchange rate policy change by the the People’s Bank of China (PBC) had positive spillover effects on most of the advanced currencies in the post GFC period. The empirical results imply that the impact of Chinese shocks has been rising in the global financial markets.
Journal: Emerging Markets Finance and Trade
Pages: 2725-2743
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1342244
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1342244
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Template-Type: ReDIF-Article 1.0
Author-Name: Tony Cavoli
Author-X-Name-First: Tony
Author-X-Name-Last: Cavoli
Author-Name: Sasidaran Gopalan
Author-X-Name-First: Sasidaran
Author-X-Name-Last: Gopalan
Title: Economic and Financial Interconnections and Income Growth Convergence in Asia: A Real-Financial Nexus?
Abstract: 
 This article empirically examines economic and financial linkages for emerging Asian economies for the period 2000 to 2014. Taking a multivariate approach to measuring integration, we examine a number of measures of economic interconnections to investigate whether (and which) individual dimensions of these connections might drive economic integration. We also provide an empirical assessment of whether and how real and financial linkages drive income growth convergence. Our article finds two important results: First, interconnections between the ASEAN-5 countries are driven primarily by financial linkages while those for the larger countries in the region are driven by real linkages. Second, greater interconnections though prices tend to lead to greater income growth convergence.
Journal: Emerging Markets Finance and Trade
Pages: 2672-2685
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1347037
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1347037
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Template-Type: ReDIF-Article 1.0
Author-Name: Ying Xu
Author-X-Name-First: Ying
Author-X-Name-Last: Xu
Author-Name: Hai Anh La
Author-X-Name-First: Hai Anh
Author-X-Name-Last: La
Title: Spillovers of the United States’ Unconventional Monetary Policy to Emerging Asia: The Bank Lending Channel
Abstract: 
 This article assesses the spillover effects of the United States’ unconventional monetary policy (i.e., quantitative easing programs adopted during 2008–2014) on the Asian credit market. Focusing on cross-border bank lending, we employed firm-level loan data with regard to the syndicated loan market and measured the international bank lending channel through changes in the United States dollar-denominated loans extended to Asian borrowers. We found that the growth of dollar credit in Asia increased substantially in response to the quantitative easing in the US financial market. The results of this study confirm the existence of the bank lending channel in Asia and emphasize the role of credit flows in transmitting financial conditions. The article also provides new evidence of cross-border liquidity spillover in the syndicated loan market. We found that the overall spillover effect was large but differed significantly in Asia by types of borrowing firms, financing purposes, and loan terms at different stages of the quantitative easing programs.
Journal: Emerging Markets Finance and Trade
Pages: 2744-2769
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1365287
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1365287
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Template-Type: ReDIF-Article 1.0
Author-Name: Shen Zhang
Author-X-Name-First: Shen
Author-X-Name-Last: Zhang
Author-Name: Jing Wan
Author-X-Name-First: Jing
Author-X-Name-Last: Wan
Title: Do China’s Shadow Banking Interest Rates Capture Its Monetary Policy Stance?
Abstract: 
 The alarming growth of China’s shadow banking since 2008 has significantly increased the difficulty of measuring and controlling monetary aggregates. Combined with the current economic slowdown and the transformation in the structure of the economy, the transition in China’s monetary policy framework is inevitable. It is interesting to see whether recent changes in monetary policy are reflected in the credit market. As the official liberalized retail interest rates are still unreliable and limited, we use the shadow banking interest rate as an alternative. We then aim to determine the extent to which market-based shadow banking interest rates can capture monetary policy intentions by estimating an EGARCH (exponential generalized autoregressive conditional heteroskedasticity) model. As the major participants in shadow banking are price-sensitive small- and medium-size enterprises, which contribute more to economic growth than price-insensitive state-owned enterprises, our results provide useful policy implications for future transition and conducting monetary policy.
Journal: Emerging Markets Finance and Trade
Pages: 2686-2695
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1377067
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1377067
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Template-Type: ReDIF-Article 1.0
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Author-Name: Miaojie Yu
Author-X-Name-First: Miaojie
Author-X-Name-Last: Yu
Author-Name: Jiantuo Yu
Author-X-Name-First: Jiantuo
Author-X-Name-Last: Yu
Author-Name: Yang Jin
Author-X-Name-First: Yang
Author-X-Name-Last: Jin
Title: The Effect of RMB Internationalization on Belt and Road Initiative: Evidence from Bilateral Swap Agreements
Abstract: 
 This article evaluates the implication of renminbi (RMB) internationalization on economic integration between China and its partners, especially for Belt and Road countries. We collected data for all bilateral swap agreements between 2000 and 2016, and empirically explored the role of bilateral swap agreements in the bilateral trade flows between China and its partner countries. We examined the effects in gravity equation and found a significant positive effect of swap agreements on trade. In our benchmark model, the negotiations of swap agreement would improve 30.4% of bilateral trade values between China and its partners. For Belt and Road countries, the effect is even stronger. This effect is both statistically and economically significant. It is also robust for alternative measure of swap agreements and alternative estimation method. We argue that RMB swap agreements are beneficial for the economic integration between China and Belt and Road countries through facilitating bilateral trade.
Journal: Emerging Markets Finance and Trade
Pages: 2845-2857
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1382346
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1382346
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board EOV
Journal: Emerging Markets Finance and Trade
Pages: 2858-2858
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1385429
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1385429
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Template-Type: ReDIF-Article 1.0
Author-Name: Tomoo Kikuchi
Author-X-Name-First: Tomoo
Author-X-Name-Last: Kikuchi
Title: East Asia’s Growing Global Influence and Challenges in Finance and Trade
Journal: Emerging Markets Finance and Trade
Pages: 2645-2648
Issue: 12
Volume: 53
Year: 2017
Month: 12
X-DOI: 10.1080/1540496X.2017.1388719
File-URL: http://hdl.handle.net/10.1080/1540496X.2017.1388719
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Handle: RePEc:mes:emfitr:v:53:y:2017:i:12:p:2645-2648




Template-Type: ReDIF-Article 1.0
Author-Name: Ichiro Iwasaki
Author-X-Name-First: Ichiro
Author-X-Name-Last: Iwasaki
Title: Meta-Analysis of Emerging Markets and Economies: An Introductory Note for the Special Issue
Abstract: 
 This paper introduces the special issue titled “Meta-Analysis of Emerging Markets and Economies” of the Emerging Markets Finance & Trade journal. In addition, it briefly describes the procedure and methodology of meta-analysis and persons who intensively perform meta-analytic research in economics. Commentary on special issue articles from the authors is also provided.
Journal: Emerging Markets Finance and Trade
Pages: 1-9
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1620117
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1620117
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:1:p:1-9




Template-Type: ReDIF-Article 1.0
Author-Name: Jarko Fidrmuc
Author-X-Name-First: Jarko
Author-X-Name-Last: Fidrmuc
Author-Name: Katarína Danišková
Author-X-Name-First: Katarína
Author-X-Name-Last: Danišková
Title: Meta-Analysis of the New Keynesian Phillips Curve in Developed and Emerging Economies
Abstract: 
 The New Keynesian Phillips Curve (NKPC) has become an inherent part of modern monetary policy models. It is derived from micro-founded models with rational expectations, sticky prices, and forward and backward-looking subjects on the market. Reviewing about 200 studies, we analyze the weight of the forward-looking behavior in the hybrid NKPC by means of meta regression. We show that selected data and method characteristics have significant impact on reported results. Moreover, we find a significant publication bias including publications in top journals, while we document no bias for the most cited studies and the most cited authors.
Journal: Emerging Markets Finance and Trade
Pages: 10-31
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1590700
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1590700
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:1:p:10-31




Template-Type: ReDIF-Article 1.0
Author-Name: Ichiro Iwasaki
Author-X-Name-First: Ichiro
Author-X-Name-Last: Iwasaki
Author-Name: Satoshi Mizobata
Author-X-Name-First: Satoshi
Author-X-Name-Last: Mizobata
Title: Ownership Concentration and Firm Performance in European Emerging Economies: A Meta-Analysis
Abstract: 
 This paper aims to perform a large-scale meta-analysis to examine the relationship between ownership concentration and firm performance in emerging economies of Central and Eastern Europe and the former Soviet Union. A meta-synthesis of 1517 estimates collected from 69 previous studies indicated the presence of a statistically significant and positive effect of ownership concentration on firm performance. The synthesized effect size, however, is only modest at best. A meta-regression analysis conducted to identify the factors underlying the small effect size revealed that differences in target industries, estimation periods, design of ownership variables, data sources, estimators, and choices of control variables could have had systematic and profound effects on the empirical results presented in previous studies. We have also noted that publication selection bias is strongly suspected in this research field, and that, due to the magnitude of this bias, existing studies cannot be expected to provide genuine evidence regarding the effect of ownership concentration on firm performance in European emerging economies. Further empirical studies are required to identify the true effect in this region.
Journal: Emerging Markets Finance and Trade
Pages: 32-67
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1530107
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530107
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:1:p:32-67




Template-Type: ReDIF-Article 1.0
Author-Name: Thi Mai Lan Nguyen
Author-X-Name-First: Thi Mai Lan
Author-X-Name-Last: Nguyen
Title: Output Effects of Monetary Policy in Emerging and Developing Countries: Evidence from a Meta-Analysis
Abstract: 
 Using 45 studies conducted between 2001 and 2014, this paper employs a meta-regression analysis (MRA) to synthesize vector-autoregressive findings of output effects of a tightening in monetary policy in 32 emerging and developing countries. The outcomes indicate a publication bias. However, tightening of monetary policy has a negative real effect on output. Primary studies including commodity price variable(s) tend to report stronger negative effects. Output effects are likely to be more negative in an economy with a developed financial system and less effective in an economy with high inflation volatility.
Journal: Emerging Markets Finance and Trade
Pages: 68-85
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1601081
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1601081
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:1:p:68-85




Template-Type: ReDIF-Article 1.0
Author-Name: Hongzhong Fan
Author-X-Name-First: Hongzhong
Author-X-Name-Last: Fan
Author-Name: Shi He
Author-X-Name-First: Shi
Author-X-Name-Last: He
Author-Name: Yum K. Kwan
Author-X-Name-First: Yum K.
Author-X-Name-Last: Kwan
Title: FDI Backward Spillovers in China: What a Meta-Analysis Tells Us?
Abstract: 
 Drawing on a unique dataset of 694 estimates from 24 studies on foreign direct investment backward spillovers in China, this paper quantitatively analyzes spillover effects corrected for publication bias and misspecification and accounts for the heterogeneity in existing empirical results using meta-regression analysis. Robust to various methods and specifications, the results show that this backward spillover effect corrected for publication bias and misspecification is remarkable and economically significant. We also derive backward spillover estimates for hypothetical combinations of study characteristics and find the synthetic spillover estimates vary across heterogeneous firms. The meta-analysis also examines various study characteristics that explain the heterogeneity across studies of the reported spillover estimates.
Journal: Emerging Markets Finance and Trade
Pages: 86-105
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1586669
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1586669
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:1:p:86-105




Template-Type: ReDIF-Article 1.0
Author-Name: Hongbing Li
Author-X-Name-First: Hongbing
Author-X-Name-Last: Li
Author-Name: Hongbo Cai
Author-X-Name-First: Hongbo
Author-X-Name-Last: Cai
Author-Name: Xuedong Lin
Author-X-Name-First: Xuedong
Author-X-Name-Last: Lin
Author-Name: Junyi Gu
Author-X-Name-First: Junyi
Author-X-Name-Last: Gu
Title: Quality Imports and Quality Exports: Micro Evidence from China
Abstract: 
 Detailed micro-level data of enterprises between 2000 and 2007 are adopted to study the influence of quality of imports on quality of similar exports in general trade and processing trade. Results indicate that quality of competitive imports in general trade exerts a significant and stable promoting effect on quality of similar exports, but in processing trade bears an inverted U-shaped relationship. The competitive imports with higher quality gradient exert a more promoting effect on quality of similar exports. The competitive imports with higher quality from a certain exporter exert a higher promoting effect on similar exports of Chinese enterprises to the country. The innovation-driven quality improvement of competitive imports in general trade significantly improves quality of similar exports. Furthermore, the quality of competitive imports exerts the highest promoting impact on quality of exports in the monopoly and labor-intensive industries, while it exerts a small effect on those in the capital-intensive industries.
Journal: Emerging Markets Finance and Trade
Pages: 106-125
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1680361
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1680361
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Template-Type: ReDIF-Article 1.0
Author-Name: Evgeniya Mikova
Author-X-Name-First: Evgeniya
Author-X-Name-Last: Mikova
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Author-Name: Qaiser Munir
Author-X-Name-First: Qaiser
Author-X-Name-Last: Munir
Title: Puzzling Premiums on FX Markets: Carry Trade, Momentum, and Value Alone and Strategy Diversification
Abstract: 
 We construct and compare the results of exploiting individual investment strategies: carry trade, momentum, and value and estimate the benefits from strategy diversification. Our analysis is based on the set of 10 major currencies and the expanded sample additionally including 16 emerging market currencies. We implement strategies in FX markets against the ruble instead of the US dollar, as is common in the currency literature. We find that the performance of strategies varies with the change of the ruble regime. We also provide proof that combining strategies, based on volatility, offers significant improvement in risk-adjusted returns compared to either of the two strategies independently or to benchmarks.
Journal: Emerging Markets Finance and Trade
Pages: 126-148
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1562897
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562897
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:1:p:126-148




Template-Type: ReDIF-Article 1.0
Author-Name: Mei Chang
Author-X-Name-First: Mei
Author-X-Name-Last: Chang
Author-Name: Bin Chang
Author-X-Name-First: Bin
Author-X-Name-Last: Chang
Author-Name: Shantanu Dutta
Author-X-Name-First: Shantanu
Author-X-Name-Last: Dutta
Title: National Culture, Firm Characteristics, and Dividend Policy
Abstract: 
 This study examines the joint impact of national culture and firm characteristics on dividend payouts by analyzing firms from 35 countries. We find that national culture, along with firm characteristics, such as sales growth, return on assets, and debt ratio, affects dividend payouts. More specifically, dividend payouts are less affected by firm characteristics in countries with a high uncertainty avoidance index compared with countries with a low uncertainty avoidance index. However, dividend payouts are more affected by firm characteristics in countries with high individualism compared with countries with low individualism. Our results support that national culture matters for dividend policy.
Journal: Emerging Markets Finance and Trade
Pages: 149-163
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1627518
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1627518
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Template-Type: ReDIF-Article 1.0
Author-Name: Marjan Naseri
Author-X-Name-First: Marjan
Author-X-Name-Last: Naseri
Author-Name: Obiyathulla Ismath Bacha
Author-X-Name-First: Obiyathulla Ismath
Author-X-Name-Last: Bacha
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Too Small to Succeed versus Too Big to Fail: How Much Does Size Matter in Banking?
Abstract: 
 Even though large banks could imply large risks and heightened vulnerability for a country’s macroeconomy, the presence of many small banks with similar behavior such as Islamic banks could also cause systemic risks. This article makes an initial attempt to investigate the impact of bank size on banking performance. Our study spans 12 emerging countries with dual banking systems and applies two-step dynamic system GMM estimator. The results show that size really does matter in the banking industry, and its impact on performance tends to be non-linear with a trade-off between profitability and efficiency. Comparing conventional with Islamic banks, we find that bank size has almost the same impact on the performance of both types of banks.
Journal: Emerging Markets Finance and Trade
Pages: 164-187
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1612359
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1612359
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:1:p:164-187




Template-Type: ReDIF-Article 1.0
Author-Name: Hao Wei
Author-X-Name-First: Hao
Author-X-Name-Last: Wei
Author-Name: Huijun Lian
Author-X-Name-First: Huijun
Author-X-Name-Last: Lian
Title: Intellectual Property Rights and the Margins of Firm Imports in China
Abstract: 
 We have analyzed the channels through which intellectual property rights (IPRs) affect firms’ imports, combined Chinese Customs Database with the Annual Survey of Industrial Firms, and then empirically analyzed the effects of IPRs protection on firms’ total imports and margins of imports. We have found that strengthening IPRs protection by raising the product extensive margin significantly increases the import value of Chinese industrial firms. IPRs protection has a larger promoting effect on the import value in areas with a stronger threat of imitation; when a firm’s innovation activity becomes more active, IPRs will have a lower promoting effect on the import value.
Journal: Emerging Markets Finance and Trade
Pages: 188-207
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1614908
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1614908
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:1:p:188-207




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Abdul Kamal
Author-X-Name-First: Muhammad Abdul
Author-X-Name-Last: Kamal
Author-Name: Syed Hasanat Shah
Author-X-Name-First: Syed
Author-X-Name-Last: Hasanat Shah
Author-Name: Wang Jing
Author-X-Name-First: Wang
Author-X-Name-Last: Jing
Author-Name: Hafsa Hasnat
Author-X-Name-First: Hafsa
Author-X-Name-Last: Hasnat
Title: Does the Quality of Institutions in Host Countries Affect the Location Choice of Chinese OFDI: Evidence from Asia and Africa
Abstract: 
 This article investigates the interactive effect of institutional quality and natural resources (divided into fuel and nonfuel resources) on the flows of Chinese outbound foreign direct investment (OFDI) in host countries in Asia and Africa. The findings of the article indicate that institutional quality in host countries affect the flow of Chinese OFDI but only in nonfuel natural resource–rich countries while institutions in fuel resource–rich countries play a insignificant role in the flow of Chinese OFDI. This shows that quality of institutions is a significant determinant of Chinese OFDI in countries where institutions matter while Chinese OFDI overlooks and surpasses institutions in fuel resource–rich countries. The significant interactive effect of institutions and nonfuel resources in this article suggests that Chinese OFDI is not insensitive to quality of institutions but it depends on the sector, risk level, and domestic imperatives.
Journal: Emerging Markets Finance and Trade
Pages: 208-227
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1610876
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1610876
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Template-Type: ReDIF-Article 1.0
Author-Name: Lifang Zhang
Author-X-Name-First: Lifang
Author-X-Name-Last: Zhang
Author-Name: Wen Fan
Author-X-Name-First: Wen
Author-X-Name-Last: Fan
Title: Rural Homesteads Withdrawal and Urban Housing Market: A Pilot Study in China
Abstract: 
 This article traces a link between the Chinese housing market and an individual’s willingness to withdraw from rural homesteads using a unique survey dataset from a pilot area. Propensity score matching indicates a strong causality that owning a house in a city results in a larger likelihood of withdrawal. An increasing demand of rural homesteads use rights was found in this study; our results also suggest a stable and healthy urban housing market may produce a non-negligible impact on the “Strategy of Rural Vitalization” via its effect on the reform of rural homesteads system in current China.
Journal: Emerging Markets Finance and Trade
Pages: 228-242
Issue: 1
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1556157
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1556157
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:1:p:228-242




Template-Type: ReDIF-Article 1.0
Author-Name: Irwan Trinugroho
Author-X-Name-First: Irwan
Author-X-Name-Last: Trinugroho
Author-Name: Siong Hook Law
Author-X-Name-First: Siong Hook
Author-X-Name-Last: Law
Author-Name: Doddy Setiawan
Author-X-Name-First: Doddy
Author-X-Name-Last: Setiawan
Author-Name: Muhammad Agung Prabowo
Author-X-Name-First: Muhammad Agung
Author-X-Name-Last: Prabowo
Title: Introduction to Symposium: Recent Development in Finance and Banking in Emerging Markets
Journal: Emerging Markets Finance and Trade
Pages: 243-244
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1684776
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1684776
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:243-244




Template-Type: ReDIF-Article 1.0
Author-Name: Aurelius Aaron
Author-X-Name-First: Aurelius
Author-X-Name-Last: Aaron
Author-Name: Deddy P. Koesrindartoto
Author-X-Name-First: Deddy P.
Author-X-Name-Last: Koesrindartoto
Author-Name: Ryuta Takashima
Author-X-Name-First: Ryuta
Author-X-Name-Last: Takashima
Title: Micro-Foundation Investigation of Price Manipulation in Indonesian Capital Market
Abstract: 
 An analysis of all intraday trades in the Jakarta Stock Exchange during 2003–2004 indicates that more than half of them are “manipulated” by principal stockbrokers. Consequently, they can earn between 59% and 92% more annually than intermediary stockbrokers, which depend heavily on their investment patterns as well as firm’s characteristics. Specifically, our regression results suggest that with increases in their degree of principalness (PRIN), stockbrokers with a greater trade imbalance earn more at the expense of outside investors, even though this effect diminishes as PRIN increases. Moreover, firms that suffer the most from stockbrokers’ inappropriate behavior have large market capitalization or high stock liquidity.
Journal: Emerging Markets Finance and Trade
Pages: 245-259
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1497972
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1497972
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:245-259




Template-Type: ReDIF-Article 1.0
Author-Name: Dyah Anggitawati
Author-X-Name-First: Dyah
Author-X-Name-Last: Anggitawati
Author-Name: Irwan Adi Ekaputra
Author-X-Name-First: Irwan Adi
Author-X-Name-Last: Ekaputra
Title: Foreign Portfolio Investment Flows and Exchange Rate: Evidence in Indonesia
Abstract: 
 Using unique daily foreign transactions data in both stock and bond markets, we investigate the daily dynamics of the IDR/USD exchange rate and foreign portfolio investment flows. Based on an unrestricted vector autoregression (VAR) model, we find feedback relations between capital market net foreign inflows (NFI) and IDR/USD returns. Further investigation by decomposing capital market NFI into bond market NFI and stock market NFI reveals that only bond market NFI has feedback relations with IDR/USD returns. Meanwhile, we find only a unidirectional relation in the stock market, where stock market NFI does not Granger cause IDR/USD returns, but IDR/USD returns lead stock market NFI. The results suggest that foreign investors tend to rebalance their international portfolio and chase higher returns in the bond market. Additionally, we learn that bond market NFI leads stock market NFI, which means that foreign investments flow to (from) the bond market before they flow to (from) the stock market. Further analysis utilizing dynamic conditional correlation in the bond market confirms the bidirectional relations between NFI and IDR/USD returns. Hence, foreign participation in the bond market appears to yield more impact on the exchange rate than its participation in the stock market.
Journal: Emerging Markets Finance and Trade
Pages: 260-274
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1496419
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496419
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:260-274




Template-Type: ReDIF-Article 1.0
Author-Name: Chor Foon Tang
Author-X-Name-First: Chor Foon
Author-X-Name-Last: Tang
Author-Name: Eu Chye Tan
Author-X-Name-First: Eu Chye
Author-X-Name-Last: Tan
Author-Name: Soo Y. Chua
Author-X-Name-First: Soo Y.
Author-X-Name-Last: Chua
Title: What Drives Private Savings in Malaysia?
Abstract: 
 This research attempts to reassess the long-run determinants of private savings in Malaysia using the cointegration and variance decomposition methods. This study covers annual data from 1980 to 2016. We find that private savings would increase together with the private disposable income, modified dependency ratio, and financial sector development. Results also reveal that the female–male sex ratio and macroeconomic uncertainty have a negative impact on private savings in Malaysia. Besides, the results show that disposable income, the sex ratio, financial sector development, and macroeconomic uncertainty are relatively more important than the other variables in determining Malaysia’s private savings.
Journal: Emerging Markets Finance and Trade
Pages: 275-285
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1508442
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1508442
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:275-285




Template-Type: ReDIF-Article 1.0
Author-Name: Baharom Abdul Hamid
Author-X-Name-First: Baharom
Author-X-Name-Last: Abdul Hamid
Author-Name: Wajahat Azmi
Author-X-Name-First: Wajahat
Author-X-Name-Last: Azmi
Author-Name: Mohsin Ali
Author-X-Name-First: Mohsin
Author-X-Name-Last: Ali
Title: Bank Risk and Financial Development: Evidence From Dual Banking Countries
Abstract: 
 This study examines the impact of financial development on bank risk-taking, measured as bank capitalization and bank income diversification. We observe the relationship using annual bank-level data from countries with dual-banking systems. The dataset spans from 2000 to 2014. Our results suggest that the impact of financial development on bank capitalization is heterogeneous across Islamic and conventional commercial banks. Moreover, the effect is different across listed and unlisted banks. However, on average, the response of income diversification to financial development is similar across most specifications. Additionally, bank risk is found to be countercyclical, suggesting that bank risk increases in good times. On average, these results (countercyclical evidence) hold across bank types (Islamic and conventional) and ownership structure (listed and unlisted). However, these results are contingent on the size (small vs. large) factor. The results are robust to alternative proxies of financial development.
Journal: Emerging Markets Finance and Trade
Pages: 286-304
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1669445
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1669445
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:286-304




Template-Type: ReDIF-Article 1.0
Author-Name: Rofikoh Rokhim
Author-X-Name-First: Rofikoh
Author-X-Name-Last: Rokhim
Author-Name: In Min
Author-X-Name-First: In
Author-X-Name-Last: Min
Title: Funding Liquidity and Risk Taking Behavior in Southeast Asian Banks
Abstract: 
 This research investigates the effect of funding liquidity on bank risk taking behavior. Some previous studies in developed countries have found that banks with higher deposit tend to be more aggressive in taking risks, because excess liquidity can reduce profitability and the existence of deposit insurance schemes. However, banks in developing countries tend to hold higher liquidity due to limited interbank money market infrastructure and low diversification of financial instruments. Using data from four developing countries in Southeast Asia from 2002 to 2016, this study found that in contrast to developed countries, banks with lower liquidity risk indicated by higher deposit ratios tend to take lower risks. These results are consistent for the two risk variables used, such as risk-weighted assets, and loan loss provision. The same results are also found after incorporating elements of bank characteristics and macroeconomic factors.
Journal: Emerging Markets Finance and Trade
Pages: 305-313
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1483230
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1483230
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:305-313




Template-Type: ReDIF-Article 1.0
Author-Name: Tastaftiyan Risfandy
Author-X-Name-First: Tastaftiyan
Author-X-Name-Last: Risfandy
Author-Name: Burhanudin Harahap
Author-X-Name-First: Burhanudin
Author-X-Name-Last: Harahap
Author-Name: Arif Rahman Hakim
Author-X-Name-First: Arif Rahman
Author-X-Name-Last: Hakim
Author-Name: Sutaryo Sutaryo
Author-X-Name-First: Sutaryo
Author-X-Name-Last: Sutaryo
Author-Name: Linggar Ikhsan Nugroho
Author-X-Name-First: Linggar Ikhsan
Author-X-Name-Last: Nugroho
Author-Name: Irwan Trinugroho
Author-X-Name-First: Irwan
Author-X-Name-Last: Trinugroho
Title: Equity Financing at Islamic Banks: Do Competition and Bank Fundamentals Matter?
Abstract: 
 This article investigates the effects of market competition and Islamic banks’ fundamental conditions on Islamic banks’ equity (profit and loss sharing [PLS]) financing. We use a monthly data set on nine Indonesian Islamic banks from 2009 to 2014. Our empirical results show that competition significantly increases Islamic banks’ PLS financing activities, suggesting that Islamic banks use this mode of financing to attract more entrepreneurs. This argument is also strengthened by the negative association between bank fundamentals and equity financing. In addition, we also find that the effects of competition on equity financing decrease when Islamic banks are more stable. Our results call on policymakers to monitor the practices in Islamic banks’ equity financing because of the risk embedded in that mechanism and Islamic banks’ tendency to use such instruments in poor fundamental conditions.
Journal: Emerging Markets Finance and Trade
Pages: 314-328
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1553160
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1553160
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:314-328




Template-Type: ReDIF-Article 1.0
Author-Name: M Nur Rianto Al Arif
Author-X-Name-First: M Nur Rianto
Author-X-Name-Last: Al Arif
Author-Name: M. Arief Mufraini
Author-X-Name-First: M. Arief
Author-X-Name-Last: Mufraini
Author-Name: M. Agung Prabowo
Author-X-Name-First: M. Agung
Author-X-Name-Last: Prabowo
Title: Market Structure, Spin-Off, and Efficiency: Evidence from Indonesian Islamic Banking Industry
Abstract: 
 After the enactment of Law 21 in 2008 that stated about the spin-off of Islamic banking units, some Islamic business units had done the spin-off. This led to an increase in the number of full-fledged Islamic banks. This study examines the relationship among spin-offs, market structure, and efficiency in the Islamic banking industry. We find a difference in efficiency between spin-off banks and non-spin-off banks. The increasing number of full-fledged Islamic banks does not mean that performance (measured by efficiency) will increase. These results show the opposite result with the goal of spin-off policy, which is to enhance the performance of Islamic banks.
Journal: Emerging Markets Finance and Trade
Pages: 329-337
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1553162
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1553162
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:329-337




Template-Type: ReDIF-Article 1.0
Author-Name: Lindawati Wardani
Author-X-Name-First: Lindawati
Author-X-Name-Last: Wardani
Author-Name: Viverita Viverita
Author-X-Name-First: Viverita
Author-X-Name-Last: Viverita
Author-Name: Zaäfri Ananto Husodo
Author-X-Name-First: Zaäfri Ananto
Author-X-Name-Last: Husodo
Author-Name: Sinto Sunaryo
Author-X-Name-First: Sinto
Author-X-Name-Last: Sunaryo
Title: Contingent Claim Approach for Pricing of Sovereign Sukuk for R&D Financing in Indonesia
Abstract: 
 This paper proposes a model for financing research and development activities with a focus on the pricing of sukuk as the source of financing. Pricing scenarios are conducted using the real options approach consisting of continuity, abandonment, and substitution scenarios. The results establish possible future values of products depending on the risk value obtained by converting the project’s technology readiness level as well as the scenario chosen. The results show consistency with the risk-return tradeoff, and the complete continuity scenario provides the closest results to the yields of existing project-based sukuk.
Journal: Emerging Markets Finance and Trade
Pages: 338-350
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1658067
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658067
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:338-350




Template-Type: ReDIF-Article 1.0
Author-Name: Wimboh Santoso
Author-X-Name-First: Wimboh
Author-X-Name-Last: Santoso
Author-Name: Irwan Trinugroho
Author-X-Name-First: Irwan
Author-X-Name-Last: Trinugroho
Author-Name: Tastaftiyan Risfandy
Author-X-Name-First: Tastaftiyan
Author-X-Name-Last: Risfandy
Title: What Determine Loan Rate and Default Status in Financial Technology Online Direct Lending? Evidence from Indonesia
Abstract: 
 Using a large-scale dataset from three leading online peer-to-peer (P2P) lending platforms in Indonesia from 2014 to 2018, we investigate the determinants of platform interest rate and borrowers’ default status. Our result shows that loan and borrowers’ specific factors are significantly associated with the loan rate and loan default, although the relation could differ from one platform to another. Our empirical result shows that platforms focused on very small loan for microbusiness increase their interest rate after the introduction of formal regulation. It could be because of the increase of the borrowers requiring a very small amount of loan relatively much more than the number of lenders. The shortfall of supply then drives the increase in loan rate. Some policy implications are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 351-369
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1605595
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1605595
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:351-369




Template-Type: ReDIF-Article 1.0
Author-Name: Changjun Yi
Author-X-Name-First: Changjun
Author-X-Name-Last: Yi
Author-Name: Xueyu Xu
Author-X-Name-First: Xueyu
Author-X-Name-Last: Xu
Author-Name: Chusheng Chen
Author-X-Name-First: Chusheng
Author-X-Name-Last: Chen
Author-Name: Yenchun Jim Wu
Author-X-Name-First: Yenchun Jim
Author-X-Name-Last: Wu
Title: Institutional Distance, Organizational Learning, and Innovation Performance: Outward Foreign Direct Investment by Chinese Multinational Enterprises
Abstract: 
 Institutional distance is the difference in institutional environments between a multinational company’s host country and its home country. This article explores the effects of formal and informal institutional distance (IID) on the innovation performance of Chinese multinationals with outward foreign direct investment (OFDI), as well as the moderating role of organizational learning in the relationship. The results suggested that a formal institutional distance (FID) paradox existed between the FID and OFDI firms’ innovation performance; the informal institutional distance inhibited the technology transfer from foreign subsidiaries to their parent companies and the growth of the parent companies’ innovation performance; exploratory learning can effectively attenuate the negative influence of IID on OFDI firms’ innovation performance.
Journal: Emerging Markets Finance and Trade
Pages: 370-391
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1545118
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1545118
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:370-391




Template-Type: ReDIF-Article 1.0
Author-Name: Jiawen Luo
Author-X-Name-First: Jiawen
Author-X-Name-Last: Luo
Author-Name: Langnan Chen
Author-X-Name-First: Langnan
Author-X-Name-Last: Chen
Title: Modeling and Forecasting the Multivariate Realized Volatility of Financial Markets with Time-Varying Sparsity
Abstract: 
 We develop a Multivariate Heterogeneous Autoregressive (MHAR) model with time-varying sparsity (TVS), or the TVS-MHAR-X model, to model and forecast the realized covariance matrices by employing the data from China’s financial markets. We employ the matrix decomposition method to ensure the positivity of the forecasted covariance matrix and incorporate a set of predictors including the lagged daily, weekly and monthly volatilities, the leverage variables, and the jump variables. The proposed model allows the sparsity of coefficients to change over time based on the importance of predictors. We compare the forecast performances of the proposed models with the competing models based on the statistical evaluation and the economic evaluation. The results show that the proposed MHAR-TVS-X model outperforms the competing models for the short-term forecasts in terms of statistical evaluation. The results also suggest that the MHAR-TVS-X model significantly improves the efficient frontier and economic values for the short-term and long-term forecasts in terms of economic evaluation.
Journal: Emerging Markets Finance and Trade
Pages: 392-408
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1567264
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1567264
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:392-408




Template-Type: ReDIF-Article 1.0
Author-Name: Dongyang Zhang
Author-X-Name-First: Dongyang
Author-X-Name-Last: Zhang
Author-Name: Xinxin Ma
Author-X-Name-First: Xinxin
Author-X-Name-Last: Ma
Author-Name: Jun Zhang
Author-X-Name-First: Jun
Author-X-Name-Last: Zhang
Author-Name: Quheng Deng
Author-X-Name-First: Quheng
Author-X-Name-Last: Deng
Title: Can Consumption Drive Industrial Upgrades? Evidence from Chinese Household and Firm Matching Data
Abstract: 
 This paper presents evidence that consumption is an important drive factor contributing to dynamic industrial upgrading in urban China. This paper investigates how consumption value and variations influence TFP growth and the number of new patents, and how the profit, exports, and share of the private sector influence the relation between consumption and industrial upgrades. The household and firm matching dataset from 1998 to 2007 is employed. The results suggest that both consumption value and variations positively affect TFP growths and increase the number of new product patents. This influence appears in both the agricultural and manufacturing industry sectors. Scrutiny of the channels of the influence of consumption on industrial upgrades indicates that profit rate is significantly associated with the consumption-industrial upgrade linkage but exports do not contribute to industrial upgrades in the domestic market. Growth in the consumption of new products in the private sector significantly stimulates industrial upgrades.
Journal: Emerging Markets Finance and Trade
Pages: 409-426
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1610878
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1610878
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:409-426




Template-Type: ReDIF-Article 1.0
Author-Name: Qinhe Shi
Author-X-Name-First: Qinhe
Author-X-Name-Last: Shi
Author-Name: Wenfeng Qiu
Author-X-Name-First: Wenfeng
Author-X-Name-Last: Qiu
Author-Name: Yuling Fan
Author-X-Name-First: Yuling
Author-X-Name-Last: Fan
Title: Economic Policy Uncertainty and the Distribution of Business Operations between Parent Companies and Their Subsidiaries
Abstract: 
 In this paper, we study the influence of uncertainty in economic policy on the business operations distribution using data from China. In doing so, we rely on the China Economic Policy Uncertainty Index and focus on large firms that have subsidiaries to which they can distribute these business operations. Our empirical testing find that companies’ business operations distribution has a negative relationship with uncertainty in economic policies. Further, under the environment of uncertain economic policy, first, the distribution of business operations will converge; second, companies tend to distribute operations to subsidiaries if they have dependence on external financing; third, state-owned companies are more likely to distribute business operations to subsidiaries; finally, companies will distribute business operations within the parent companies in the high degree of financial marketization.
Journal: Emerging Markets Finance and Trade
Pages: 427-456
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2019.1700363
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1700363
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:427-456




Template-Type: ReDIF-Article 1.0
Author-Name: Youxing Huang
Author-X-Name-First: Youxing
Author-X-Name-Last: Huang
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Title: Financial Inclusion and Urban–Rural Income Inequality: Long-Run and Short-Run Relationships
Abstract: 
 Using Chinese provincial data over the period 1985–2013 and conducting the panel cointegration methods, we find that financial inclusion narrows the urban–rural income inequality in the long run, but expands it in the short run. These results can also be observed when sub-dimensional indexes of financial inclusion are tested, including financial accessibility and availability. Moreover, we find that the speed of financial networks’ expansion and the education disparity between rural and urban areas are two possible reasons to explain the short-run increase.
Journal: Emerging Markets Finance and Trade
Pages: 457-471
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1562896
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562896
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:457-471




Template-Type: ReDIF-Article 1.0
Author-Name: Peter Leško
Author-X-Name-First: Peter
Author-X-Name-Last: Leško
Author-Name: Eva Muchová
Author-X-Name-First: Eva
Author-X-Name-Last: Muchová
Title: Balance-of-Payments-Constrained Approach: Convergence Sustainability in the Region of Central and Eastern Europe
Abstract: 
 The aim of this article is to clarify the Balance-of-Payments (BOP)-constrained growth approach (Thirlwall’s Law) in relation to the convergence theories. According to Thirlwall’s Law, we determine the balance of payments equilibrium growth rate of an economy by the ratio of the income elasticities of the demand for exports and imports and the growth of foreign demand. Using Convergence Quadrants Diagram, we focused on an analysis of different phases of non-price convergence or divergence in the region of Central and Eastern Europe (CEE). The obtained results show that almost all countries of the CEE region grew at a higher rate than the one consistent with the BOP equilibrium. Moreover, it is proven that the convergence of the CEE region is unsustainable considering the lower ratio of income elasticities and increasing external debt.
Journal: Emerging Markets Finance and Trade
Pages: 472-483
Issue: 2
Volume: 56
Year: 2020
Month: 1
X-DOI: 10.1080/1540496X.2018.1543584
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1543584
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:2:p:472-483




Template-Type: ReDIF-Article 1.0
Author-Name: Bo Huang
Author-X-Name-First: Bo
Author-X-Name-Last: Huang
Author-Name: Liqing Chen
Author-X-Name-First: Liqing
Author-X-Name-Last: Chen
Author-Name: Lin He
Author-X-Name-First: Lin
Author-X-Name-Last: He
Title: How Can Government Support Affect Behaviors of Investors and Rating Agencies in a Corporate Bond Market? Evidence from China’s Corporate Bond Market
Abstract: 
 This study explores the relationship between government support and the behaviors of participants in a corporate bond market. The “implicit guarantee” of bonds is measured by two proxies: state-owned ownership and prestigious underwriter reputation. Bonds with these features have lower credit spreads and higher credit ratings. Since March 4, 2014—the first bond default event—evidence suggests that the effect of state-owned ownership on credit spreads and ratings is still pronounced, but the effect of underwriters’ reputation has weakened. Our findings provide supporting evidence for the effectiveness of marketization in China’s corporate bond market.
Journal: Emerging Markets Finance and Trade
Pages: 485-507
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2019.1651286
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1651286
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:485-507




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Chu Chuang
Author-X-Name-First: Chung-Chu
Author-X-Name-Last: Chuang
Author-Name: Yi-Hsien Wang
Author-X-Name-First: Yi-Hsien
Author-X-Name-Last: Wang
Author-Name: Tsai-Jung Yeh
Author-X-Name-First: Tsai-Jung
Author-X-Name-Last: Yeh
Title: Comparing Hedging Effectiveness of Portfolios in the Greater Chinese Stock Exchanges: Evidence from a Modified Value-at-Risk Model
Abstract: 
 The higher moments of hedged portfolio returns often influence the calculation of value-at-risk (VaR). To establish future short and long hedged portfolios, this study proposes a new modified VaR model, an expected utility maximization (EUM) subject to the modified VaR of higher moments (EUM-MVaR) of stock index futures in markets in greater China. EUM-MVaR has the greatest hedging effectiveness in determining hedged portfolios, while the minimum variance (MV) model had the least hedging effectiveness; the consideration of higher moments of a hedged portfolio return is more effective than non-consideration in determining the hedging effectiveness.
Journal: Emerging Markets Finance and Trade
Pages: 508-526
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1520088
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1520088
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:508-526




Template-Type: ReDIF-Article 1.0
Author-Name: Xinming Huang
Author-X-Name-First: Xinming
Author-X-Name-Last: Huang
Author-Name: Jie Liu
Author-X-Name-First: Jie
Author-X-Name-Last: Liu
Author-Name: Xinjie Zhang
Author-X-Name-First: Xinjie
Author-X-Name-Last: Zhang
Author-Name: Yinglun Zhu
Author-X-Name-First: Yinglun
Author-X-Name-Last: Zhu
Title: Volatility Premium and Term Structure of China Blue-Chip Index Options
Abstract: 
 This article constructs China VIX with ETFs option data from SSE, HKEx, and CBOE, and investigates the corresponding volatility premiums and volatility term structures. We find that China’s volatility premiums exist in all the three markets with a specific pattern during and after the market crash, and they are highly similar and correlated. This pattern shows that volatility premiums are significantly negative during market crash and quickly rise to a large positive number after the crash, and then slowly decay until next crisis. Moreover, it suggests that investors should short volatility after market collapse rather than long it like most market participants did in the past. Despite the three volatility term structures show that implied volatilities generally decrease with the increasing of terms and rise sharply near the maturity dates, there is no such obvious pattern in the volatility term structure of SSE 50 ETF options due to the extremely imperfection of China’s option market.
Journal: Emerging Markets Finance and Trade
Pages: 527-542
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1469002
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1469002
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:527-542




Template-Type: ReDIF-Article 1.0
Author-Name: Xiuzhen Shi
Author-X-Name-First: Xiuzhen
Author-X-Name-Last: Shi
Author-Name: Zekai He
Author-X-Name-First: Zekai
Author-X-Name-Last: He
Author-Name: Xiaomeng Lu
Author-X-Name-First: Xiaomeng
Author-X-Name-Last: Lu
Title: The Effect of Home Equity on the Risky Financial Portfolio Choice of Chinese Households
Abstract: 
 Using a large and unique household level dataset, we examine the effect of home equity appreciation during the housing boom on shareholdings of risky financial assets that include stocks, funds, bonds, and wealth management products. We address potential endogenous problems by employing two instrumental variables. The 2SLS estimates suggest that a 10% increase in home equity level leads Chinese households to raise the share of total risky financial assets by 0.6 percentage points. Conversely, a 10% increase in housing share crowds out the share of total risky assets by 2.5 percentage points, which is greater than the magnitude of home equity effect. Our results further show heterogeneous effects of home equity across city tiers and household characteristics, which offers an important policy implication.
Journal: Emerging Markets Finance and Trade
Pages: 543-561
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1505610
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1505610
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:543-561




Template-Type: ReDIF-Article 1.0
Author-Name: Tiantian Dai
Author-X-Name-First: Tiantian
Author-X-Name-Last: Dai
Author-Name: Shenyi Jiang
Author-X-Name-First: Shenyi
Author-X-Name-Last: Jiang
Author-Name: Ang Sun
Author-X-Name-First: Ang
Author-X-Name-Last: Sun
Author-Name: Sihong Wu
Author-X-Name-First: Sihong
Author-X-Name-Last: Wu
Title: Inequality and Social Capital: How Inequality in China’s Housing Assets Affects People’s Trust
Abstract: 
 This article examines how inequality in housing assets affects general trust in society. The economic stimulus package carried out in 2008 in China to tackle the global financial crisis increased housing prices and amplified inequality among residents with various initial housing assets. We apply a difference-in-differences strategy to compare cities with various initial levels of housing asset inequality. An increase in such inequality is found to be associated with a lower level of trust. It is also found that in the Chinese context, growing fiscal inequality is further deteriorating trust. These results are most likely driven by concerns regarding social and economic status.
Journal: Emerging Markets Finance and Trade
Pages: 562-575
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1516637
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1516637
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:562-575




Template-Type: ReDIF-Article 1.0
Author-Name: Renhai Hua
Author-X-Name-First: Renhai
Author-X-Name-Last: Hua
Author-Name: Pengfei Zhao
Author-X-Name-First: Pengfei
Author-X-Name-Last: Zhao
Author-Name: Honghai Yu
Author-X-Name-First: Honghai
Author-X-Name-Last: Yu
Author-Name: Libing Fang
Author-X-Name-First: Libing
Author-X-Name-Last: Fang
Title: Impact of US Uncertainty on Chinese Stock Market Volatility
Abstract: 
 The process of opening the Chinese stock market has sped up in the last two decades. This paper investigates the effects of the uncertainty in the US measured by news-implied volatility on the Chinese stock market volatility. Our empirical results for the full sample period (1997–2016) reveal that there is no clear effect of US uncertainty on fluctuations in China’s stock market. However, based on the subsample analysis along the opening progress in the Chinese stock market, we observe that US uncertainty had a significant effect on Chinese stock market volatility after Qualified Foreign Institutional Investors (QFII) and Renminbi QFII were allowed to invest in the Chinese stock market. The results are the same after the global financial crisis. Our results imply that the US uncertainty should be considered by investors deciding on investment strategy. The government should also consider the US uncertainty when enacting the policy on opening policy the Chinese stock market.
Journal: Emerging Markets Finance and Trade
Pages: 576-592
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1519413
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1519413
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:576-592




Template-Type: ReDIF-Article 1.0
Author-Name: Bin Gao
Author-X-Name-First: Bin
Author-X-Name-Last: Gao
Author-Name: Jun Xie
Author-X-Name-First: Jun
Author-X-Name-Last: Xie
Title: Forecasting Excess Returns and Abnormal Trading Volume using Investor Sentiment: Evidence from Chinese Stock Index Futures Market
Abstract: 
 We examine the ability of investor sentiment to forecast excess returns and abnormal trading volumes in Chinese stock index futures market. Based on prior research on investor sentiment, we expect investor sentiment to forecast excess returns and abnormal trading volumes, and also expect that highly volatile sentiment period and low margin requirement period will be more sensitive to investor sentiment than lowly volatile sentiment period and high margin requirement period. In a sample of CSI 300 index futures over the period 2010–2014, we find that, over a daily horizon, stock index futures sentiment reliably predicts excess returns and abnormal trading volumes, and that the sensitivity of returns and trading volumes to sentiment is more significantly positively related to the highly volatile sentiment period and low margin requirement period. Moreover, we run a VAR model and analyze the Granger causality of the system. We also find the ability of investor sentiment to cause the change of excess returns and abnormal trading volume in the daily horizon.
Journal: Emerging Markets Finance and Trade
Pages: 593-612
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1564655
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1564655
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:593-612




Template-Type: ReDIF-Article 1.0
Author-Name: Haishu Qiao
Author-X-Name-First: Haishu
Author-X-Name-Last: Qiao
Author-Name: Yaya Su
Author-X-Name-First: Yaya
Author-X-Name-Last: Su
Title: Media Coverage and Decomposition of Stock Market Volatility:Based on the Generalized Dynamic Factor Model
Abstract: 
 This paper decomposes stock volatility into a market-driven component and an idiosyncratic component using the generalized dynamic factor model and then investigates the influence of media coverage on them. Based on the Baidu Media Index and composite stock data in the CSI 300 Index, we found that the influence of media coverage on market-driven volatility appears to be U-shaped, but the influence on idiosyncratic volatility is negative. Our results show that, in China, the news media generally play a role as information providers on the stock market. However, when the stock market is in a volatile period, media coverage exacerbates that volatility.
Journal: Emerging Markets Finance and Trade
Pages: 613-625
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2019.1686974
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1686974
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:613-625




Template-Type: ReDIF-Article 1.0
Author-Name: Zhuwei Li
Author-X-Name-First: Zhuwei
Author-X-Name-Last: Li
Author-Name: Baolu Wang
Author-X-Name-First: Baolu
Author-X-Name-Last: Wang
Author-Name: Yuan Fu
Author-X-Name-First: Yuan
Author-X-Name-Last: Fu
Author-Name: Yongdong Shi
Author-X-Name-First: Yongdong
Author-X-Name-Last: Shi
Author-Name: Xuexin Su
Author-X-Name-First: Xuexin
Author-X-Name-Last: Su
Title: Different Types of Investor Reactions to Annual Reports
Abstract: 
 This study analyzes the different investor behaviors after the release of annual reports and their reactions to revenue information. Accordingly, we use a unique dataset of account information for all shareholders in China’s Shenzhen Stock Exchange. Our results indicate that individual investors are apt to increase their positions after the release of the annual report, whereas institutional investors do the opposite. Moreover, we determine that institutional investors tend to buy shareholdings after obtaining positive revenue information, whereas the behavior of individual investors is the opposite. We assume that their different degrees of overconfidence lead to different behaviors after the annual reports and revenue information are released. Evidently, individual investors are more overconfident than institutional investors.
Journal: Emerging Markets Finance and Trade
Pages: 626-640
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1482744
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1482744
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:626-640




Template-Type: ReDIF-Article 1.0
Author-Name: Chung-Hua Shen
Author-X-Name-First: Chung-Hua
Author-X-Name-Last: Shen
Author-Name: Meng-Wen Wu
Author-X-Name-First: Meng-Wen
Author-X-Name-Last: Wu
Author-Name: Ting-Hsuan Chen
Author-X-Name-First: Ting-Hsuan
Author-X-Name-Last: Chen
Author-Name: Jiahua Wang
Author-X-Name-First: Jiahua
Author-X-Name-Last: Wang
Title: How Does Shadow Bank Affect Bank Ranking in China?
Abstract: 
 This study analyzes the safety and soundness of the Chinese banking system based on capital adequacy, asset quality, management, earnings, liquidity, and growth (CAMELG). In particular, we investigate how the Chinese style of shadow banking system (referred here as “bank shadow”) affects bank rankings. The Chinese style of shadow bank refers to banks that engage in unregulated credit activities that differ considerably from shadow banks that are activities created by non-bank financial institutions. The Chinese style of shadow bank transforms risky corporate loans into interbank lending. Therefore, risky weight assets are underestimated, thereby resulting in bias of the observed high capital and liquidity measures. Moreover, the weights of the capital and liquidity measures are distorted. Hence, the CAMELG-based ranking is incorrect. Bank regulators and shareholders should incorporate the effect of shadow bank into observed financial ratios in assessing the safety and soundness of the banking system.
Journal: Emerging Markets Finance and Trade
Pages: 641-658
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1530654
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530654
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:641-658




Template-Type: ReDIF-Article 1.0
Author-Name: Lei Ming
Author-X-Name-First: Lei
Author-X-Name-Last: Ming
Author-Name: Yao Shen
Author-X-Name-First: Yao
Author-X-Name-Last: Shen
Author-Name: Shenggang Yang
Author-X-Name-First: Shenggang
Author-X-Name-Last: Yang
Author-Name: Sangzhi Zhu
Author-X-Name-First: Sangzhi
Author-X-Name-Last: Zhu
Author-Name: Hong Zhu
Author-X-Name-First: Hong
Author-X-Name-Last: Zhu
Title: Does Gold Serve as a Hedge for the Stock Market in China? Evidence from a Time-Frequency Analysis
Abstract: 
 This paper uses a wavelet approach to examine the relationship between gold prices and the Chinese stock market over the past quarter-century. Our empirical study with weekly data shows that gold cannot be used as a short-term hedging tool in China in the full sample period, but it can be used as a long-term hedging tool in the sample period after 2005, concurrent with changes in Chinese government policy. This conclusion also emerges when weekly data are replaced by monthly or daily data. However, similar changes in the long-term hedging ability of gold are not observed in the UK and the US. Thus, this change in the ability of gold to serve as a hedge in China can probably be attributed to shifts in some important market policies, such as the reform in nontradable shares in the Chinese capital market and the exchange rate reform in 2005.
Journal: Emerging Markets Finance and Trade
Pages: 659-672
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2019.1677225
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1677225
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:659-672




Template-Type: ReDIF-Article 1.0
Author-Name: Jayasuriya Mahapatabendige Ruwani Fernando
Author-X-Name-First: Jayasuriya Mahapatabendige Ruwani
Author-X-Name-Last: Fernando
Author-Name: Leon Li
Author-X-Name-First: Leon
Author-X-Name-Last: Li
Author-Name: Greg Hou
Author-X-Name-First: Greg
Author-X-Name-Last: Hou
Title: Financial versus Non-Financial Information for Default Prediction: Evidence from Sri Lanka and the USA
Abstract: 
 We report the effectiveness of corporate governance variables (GOVs) in default prediction, in a comparative study between Sri Lanka and the USA. Twelve GOVs are tested in addition to the standard financial data. A panel logit model framework is employed to conduct empirical tests on 730 Sri Lankan and 3280 USA observations from 2000 to 2015. Whilst an integrated model provides overall stronger predictive value; financial information is more relevant for USA firms. GOVs appear more relevant in emerging markets than in mature markets, but the effectiveness of the individual GOVs differs between countries.
Journal: Emerging Markets Finance and Trade
Pages: 673-692
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1545644
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1545644
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:673-692




Template-Type: ReDIF-Article 1.0
Author-Name: Antonie Katscher
Author-X-Name-First: Antonie
Author-X-Name-Last: Katscher
Author-Name: Alejandro Mac Cawley
Author-X-Name-First: Alejandro
Author-X-Name-Last: Mac Cawley
Author-Name: Tomas Reyes
Author-X-Name-First: Tomas
Author-X-Name-Last: Reyes
Title: Properly Estimating Risk in Emerging Markets: A Comparison of Beta Adjustment Techniques
Abstract: 
 When assets do not trade as frequently as the market index, the standard ordinary least squares (OLS) beta exhibits thin trading bias. Several beta adjustment techniques exist to correct for this bias; however, no consensus exists as to which adjustment is best. This article compares the behavior of the most widely used beta adjustments proposed in the literature across emerging markets. Using a linear programming model, we form portfolios with equal risk characteristics, but different levels of censoring. Since beta is a measure of systematic risk, if most risk characteristics are kept constant across portfolios, the resulting betas should be approximately the same. Our results show that the best adjustments overall are the Scholes–Williams, trade-to-trade, and sample selectivity adjustments.
Journal: Emerging Markets Finance and Trade
Pages: 693-729
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2018.1543581
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1543581
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Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Statement of Retraction: Incomplete Exchange Rate Pass-Through: Evidence from Exchange Rate Reform in China
Journal: Emerging Markets Finance and Trade
Pages: 730-730
Issue: 3
Volume: 56
Year: 2020
Month: 2
X-DOI: 10.1080/1540496X.2019.1700081
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1700081
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:3:p:730-730




Template-Type: ReDIF-Article 1.0
Author-Name: Xuejin Zhao
Author-X-Name-First: Xuejin
Author-X-Name-Last: Zhao
Author-Name: Wei-Guo Zhang
Author-X-Name-First: Wei-Guo
Author-X-Name-Last: Zhang
Author-Name: Yong-Jun Liu
Author-X-Name-First: Yong-Jun
Author-X-Name-Last: Liu
Title: Volatility Spillovers and Risk Contagion Paths with Capital Flows across Multiple Financial Markets in China
Abstract: 
 This article investigates the issues of volatility spillovers and risk contagion paths with capital flows across the foreign exchange, monetary, credit, and stock markets in a country. We derive the theoretical price linkage of financial markets based on traditional theories of the Gordon model and interest rate parity theory. Then, we set up a volatility spillover model of financial markets and show the cross-market volatility spillover effects by using China’s historical data from January 1996 to December 2016. Regarding the asymmetric spillovers, we determine that they are related to cross-market capital flow routes. After empirical analysis on the unnatural capital flows’ contribution to financial risk contagion, three cross-market risk transmission paths are identified based on the capital flows, which originate from the exchange rate risk, credit risk, and stock volatility risk, respectively.
Journal: Emerging Markets Finance and Trade
Pages: 731-749
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2018.1472080
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1472080
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:731-749




Template-Type: ReDIF-Article 1.0
Author-Name: Jingjing Xu
Author-X-Name-First: Jingjing
Author-X-Name-Last: Xu
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Author-Name: Yizhe Xie
Author-X-Name-First: Yizhe
Author-X-Name-Last: Xie
Title: Controlling Shareholder’s Share Pledging and Firm’s Auditor Choice
Abstract: 
 This study investigates auditor choice in firms whose shares are pledged by their controlling shareholders as collateral for margin loans to financial institutions. To cope with risks arising from share pledging, controlling shareholders can be divided in choosing an auditor in terms of auditor quality—with some who might engage in financial reporting manipulation prefer a low-quality report while the others favor a higher quality to alleviate minority shareholder’s potential concerns. Using detailed data of Chinese listed-firms from 2007 to 2016, we find that it is less likely for firms with share pledging controlling shareholders to employ Top 10 audit firms. Further tests show that the reporting quality of pledge firms choosing non-Top 10 audit is poorer, but the audit opinion is not worse. Besides, higher audit fee for pledge firms suggests that controlling shareholders’ share pledging is considered to be with higher audit risk by auditor.
Journal: Emerging Markets Finance and Trade
Pages: 750-770
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2018.1549030
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1549030
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:750-770




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaojun Shi
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Shi
Author-Name: Qi Jin
Author-X-Name-First: Qi
Author-X-Name-Last: Jin
Author-Name: Lin He
Author-X-Name-First: Lin
Author-X-Name-Last: He
Title: The Bilateral Effects of Platform-Sponsored Collateral in Peer-To-Peer (P2P) Lending: Evidence from China
Abstract: 
 Using a unique large dataset collected from one of the oldest and largest P2P lending platforms in China, namely PPDAI, this article tests the bilateral effects of a special type of platform-sponsored collateral on lenders and borrowers. Both theoretically and empirically, we find that smart lenders disaggregate the surety and riskiness-signaling effects of such collateral. Our evidence indicates that lenders in China’s P2P market are smart: they anticipate that platform-collateralized loans are riskier than the non-collateralized ones in the second or higher rounds of fundraising. For the borrowers, platform-sponsored collateral increases the overall borrowing capacity owing to its surety effect. Therefore, combining the two aspects, platform-sponsored collateral increases the overall efficiency of the P2P lending market given the safety of the platform per se.
Journal: Emerging Markets Finance and Trade
Pages: 771-795
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2018.1530982
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530982
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:771-795




Template-Type: ReDIF-Article 1.0
Author-Name: Miao Miao
Author-X-Name-First: Miao
Author-X-Name-Last: Miao
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Author-Name: Shilin Zheng
Author-X-Name-First: Shilin
Author-X-Name-Last: Zheng
Title: Within-Firm Wage Inequality and Corporate Innovation: Evidence from China’s Listed Firms
Abstract: 
 Within-firm wage inequality, which individuals face daily, has largely been neglected by the literature on wage inequality. However, it may affect an individual’s incentive to work, resulting in an overall impact on a firm’s operation. This study discusses the effects of within-firm wage inequality on corporate innovation. Using data from Chinese firms listed over the period 2000–2015, we found that (1) within-firm wage inequality promotes innovation, (2) the use of two instrumental variables for our analysis confirms that the chain of causality goes from inequality to innovation, and (3) possible mechanisms are incentivizing managers to increase R&D inputs and using bank loans to finance innovation.
Journal: Emerging Markets Finance and Trade
Pages: 796-819
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2019.1709818
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1709818
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:796-819




Template-Type: ReDIF-Article 1.0
Author-Name: Xiong Xiong
Author-X-Name-First: Xiong
Author-X-Name-Last: Xiong
Author-Name: Jiatong Han
Author-X-Name-First: Jiatong
Author-X-Name-Last: Han
Author-Name: Xu Feng
Author-X-Name-First: Xu
Author-X-Name-Last: Feng
Author-Name: Yahui An
Author-X-Name-First: Yahui
Author-X-Name-Last: An
Title: Sentiment Dispersion and Asset Pricing Error: Evidence from the Chinese Stock Market
Abstract: 
 Previous studies have suggested that the impact of investor sentiment on asset pricing error is determined by the difference between the aggregate sentiment of optimistic and pessimistic investors. This article has found the influence of the in-group sentiment dispersion of optimistic and pessimistic investors on pricing error. We established a two-period model of heterogeneous investors and described the sentiment dispersion of the optimistic and pessimistic groups with the variance of sentiment bias. The results suggested that when the sentiment dispersion of the two groups are identical, the pricing error depends on the aggregate sentiments of the optimistic and pessimistic groups. Conversely, when the two groups have different sentiment dispersion, the pricing error is determined by both the sentiment dispersion ratio and the aggregate sentiment ratio. Finally, data from the Chinese stock market are generated to verify the above conclusions.
Journal: Emerging Markets Finance and Trade
Pages: 820-839
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2019.1570128
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1570128
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:820-839




Template-Type: ReDIF-Article 1.0
Author-Name: Chao-Yang Lin
Author-X-Name-First: Chao-Yang
Author-X-Name-Last: Lin
Author-Name: Huimei Liu
Author-X-Name-First: Huimei
Author-X-Name-Last: Liu
Author-Name: Jia-Ching Lee
Author-X-Name-First: Jia-Ching
Author-X-Name-Last: Lee
Author-Name: Shih-Kuei Lin
Author-X-Name-First: Shih-Kuei
Author-X-Name-Last: Lin
Title: Stock Index Options Pricing under Jump Patterns Driven by Market States
Abstract: 
 This article reports that both jump amplitudes and arrival rates are related to the economic states in the DJX and the SPX markets. It then proposes a jump-diffusion process model with modulated frequency and amplitude (JD-MF-MA) to depict these patterns. Using this model, we also derive a closed-form formula for the European index option through the characteristic function pricing approach. The empirical results show that the model with modulated jumps not only captures the characteristics of returns but also improves pricing performance. Overall, the modulated jump should be the default modeling choice for derivatives pricing models.
Journal: Emerging Markets Finance and Trade
Pages: 840-859
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2018.1563778
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1563778
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:840-859




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaojun Shi
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Shi
Author-Name: Aoran Wang
Author-X-Name-First: Aoran
Author-X-Name-Last: Wang
Author-Name: Songtao Tan
Author-X-Name-First: Songtao
Author-X-Name-Last: Tan
Title: Trade-Credit Financing under Financial Constraints: A Relational Perspective and Evidence from Listed Companies in China
Abstract: 
 This article finds that relational debt financing, especially trade credit, is a viable channel to which a firm resorts when facing the binding financial constraints of formal credit in China. We present strong evidence indicating that the substitution of trade credit for bank credit increases when financial constraints are aggravated, regardless of the size of the firm. The countercyclicity of the substitution over economic cycles is more evident for financially constrained firms. Moreover, institutional factors, such as political connections and creditor protection, have substantial effects on financial constraint smoothing, ameliorating reliance on costlier trade-credit financing. Our results endure an array of robustness checks, including using alternative definitions of trade credit and formal credit and financial constraint measurement. An export interest-subsidy experiment presents corroborating evidence.
Journal: Emerging Markets Finance and Trade
Pages: 860-893
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2018.1555462
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1555462
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:860-893




Template-Type: ReDIF-Article 1.0
Author-Name: Danni Chen
Author-X-Name-First: Danni
Author-X-Name-Last: Chen
Author-Name: Xue Chen
Author-X-Name-First: Xue
Author-X-Name-Last: Chen
Author-Name: Xiaoling Pu
Author-X-Name-First: Xiaoling
Author-X-Name-Last: Pu
Author-Name: Hao Luo
Author-X-Name-First: Hao
Author-X-Name-Last: Luo
Title: Disputes over Corporate Control at Chinese Firms
Abstract: 
 We investigate disputes over corporate control in Chinese stock markets from 2001 to 2012. We find that firms involved in such disputes usually have low financial performance and high leverage risks. Because control rights can create value for shareholders, the cumulative abnormal returns around the fights for control are positive in both the short and long runs. In addition, the top management benefits from improved financial performance afterward.
Journal: Emerging Markets Finance and Trade
Pages: 894-912
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2019.1615879
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1615879
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:894-912




Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Augustine C. Arize
Author-X-Name-First: Augustine C.
Author-X-Name-Last: Arize
Title: On the Asymmetric Effects of Exchange Rate Volatility on Trade Flows: Evidence from Africa
Abstract: 
 A glance through the literature on the effects of exchange rate uncertainty on the trade flows reveals that African countries have received the least attention. We consider the response of exports and imports of 13 African nations to a Generalized Autoregressive Conditional Heteroskedasticity (GARCH)-based measure of exchange rate uncertainty. Like previous research, when we used linear models in which the effects are assumed to be symmetric, we found significant long-run effects in almost one-third of the countries in our sample. However, when we shifted to nonlinear export and import demand models, we found significant long-run effects of exchange rate uncertainty on trade flows of almost all countries. These effects were asymmetric in nature.
Journal: Emerging Markets Finance and Trade
Pages: 913-939
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2018.1543582
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1543582
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:913-939




Template-Type: ReDIF-Article 1.0
Author-Name: Yonghyun Kwon
Author-X-Name-First: Yonghyun
Author-X-Name-Last: Kwon
Author-Name: Seung Hun Han
Author-X-Name-First: Seung Hun
Author-X-Name-Last: Han
Title: Controlling Shareholders’ Preference in Business Groups: Evidence from Korea
Abstract: 
 This study examines the effect of controlling shareholders’ preference on the payout policy of Korean firms. Using a sample of 9495 firm-year observations, we find that firms with individual controlling shareholders (family-owned firms) have a lower payout ratio than those with non-individual controlling shareholders. Further, firms with higher family-individual controlling shareholder ownership by individual controlling shareholders are reluctant to pay cash dividends in family business groups. These results are consistent with the conservative payout hypothesis. An additional test indicates that family business groups’ group-level payout tendency influences all group-affiliated firms’ payout policies. The results suggest that controlling shareholders’ preference for cash dividends determines payout policy.
Journal: Emerging Markets Finance and Trade
Pages: 940-959
Issue: 4
Volume: 56
Year: 2020
Month: 3
X-DOI: 10.1080/1540496X.2018.1553157
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1553157
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:4:p:940-959




Template-Type: ReDIF-Article 1.0
Author-Name: Hung-Hsi Huang
Author-X-Name-First: Hung-Hsi
Author-X-Name-Last: Huang
Title: Guest Editor’s Introduction
Journal: Emerging Markets Finance and Trade
Pages: 961-962
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2020.1744983
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1744983
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Template-Type: ReDIF-Article 1.0
Author-Name: Jui-Cheng Hung
Author-X-Name-First: Jui-Cheng
Author-X-Name-Last: Hung
Author-Name: Yu-Hong Liu
Author-X-Name-First: Yu-Hong
Author-X-Name-Last: Liu
Author-Name: I-Ming Jiang
Author-X-Name-First: I-Ming
Author-X-Name-Last: Jiang
Author-Name: Shuh Liang
Author-X-Name-First: Shuh
Author-X-Name-Last: Liang
Title: Price Discovery and Trading Activity in Taiwan Stock and Futures Markets
Abstract: 
 Previous studies have primarily focused on examining the trading behavior and performance of trader types, and their effects on market returns and volatilities. This study examines the influence of the trading activities on price discovery ability in Taiwan stock and futures markets. The information share approach and its modified version are adopted to analyze the contributions to price discovery between stock and futures markets. The results indicate that the stock market occasionally plays a dominant role in price discovery, whereas the futures market remains the primary contributor; however, the price discovery ability of the stock market is enhanced when the trading activity of foreign institutional traders increases. Retail traders weaken price discovery when their trading activity increases. Foreign institutional traders, the primary source of informed trades, exert positive effects on the price discovery process. Furthermore, the trading activities of foreign institutional and retail traders exert a nonlinear influence on the price discovery process. These findings suggest that the informed trading of foreign institutional traders enhances information flow and mitigates the unfavorable effect of retail traders in terms of price discovery.
Journal: Emerging Markets Finance and Trade
Pages: 963-976
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2018.1451324
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1451324
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:5:p:963-976




Template-Type: ReDIF-Article 1.0
Author-Name: Chaohsin Lin
Author-X-Name-First: Chaohsin
Author-X-Name-Last: Lin
Author-Name: Shuofen Hsu
Author-X-Name-First: Shuofen
Author-X-Name-Last: Hsu
Author-Name: Pai-Lung Chou
Author-X-Name-First: Pai-Lung
Author-X-Name-Last: Chou
Author-Name: Ya-Yi Chao
Author-X-Name-First: Ya-Yi
Author-X-Name-Last: Chao
Author-Name: Chao-Wei Li
Author-X-Name-First: Chao-Wei
Author-X-Name-Last: Li
Title: The Effects of Directors’ and Officers’ Liability Insurance on Key Auditing Matters
Abstract: 
 The purpose of this paper is to examine the impact of directors’ & officers’ (D&O) liability insurance on the number of key audit matters (KAMs) presented in the company’s financial statements, which are employed as a measure of the risk from the corporate governance of firms. Our empirical results show a significant positive relationship between the number of KAMs and the amount of D&O liability insurance. Our findings suggest that although D&O liability insurance may provide directors and supervisors with important protection, it may also lead to increased moral hazard. As a result, a relatively large number of KAMs are disclosed by the auditor in accordance with increased operating risk after the D&O liability insurance is purchased.
Journal: Emerging Markets Finance and Trade
Pages: 977-1002
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2019.1705782
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1705782
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:5:p:977-1002




Template-Type: ReDIF-Article 1.0
Author-Name: Lien-Wen Liang
Author-X-Name-First: Lien-Wen
Author-X-Name-Last: Liang
Author-Name: Cheng-Ping Cheng
Author-X-Name-First: Cheng-Ping
Author-X-Name-Last: Cheng
Author-Name: Yipin Lin
Author-X-Name-First: Yipin
Author-X-Name-Last: Lin
Title: Determinants of Banking Efficiency and Survival in Taiwan with Consideration of the Real Management Cost
Abstract: 
 By using a real management cost method to re-calculate economic costs at Taiwanese banks, this article sheds light on the relationship between CAMELS (capital, asset quality, management, earnings, liquidity, and sensitivity) theory and bank survival by analyzing the impact of key CAMELS indices on cost efficiency, which in turn influences bank survival. We estimate cost efficiency at banks using stochastic frontier analysis (SFA) and economic provisions for loan loss based on Shen and Chen (2010). The seven key determinants are the capital adequacy ratio, the non-performing loan ratio, the deposit growth rate, the return on assets, the leverage ratio, the scale of assets, and whether a bank is owned by a financial holding company. These CAMELS indices significantly affect cost efficiency at surviving banks and failed banks and have different effects. The measure of provisions for loan losses significantly affects cost efficiency at banks and makes the outcomes closer to reality. We also outline some important policy implications to avoid banking crises.
Journal: Emerging Markets Finance and Trade
Pages: 1003-1023
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2018.1470504
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1470504
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Template-Type: ReDIF-Article 1.0
Author-Name: Chin-Jung Luan
Author-X-Name-First: Chin-Jung
Author-X-Name-Last: Luan
Author-Name: Chengli Tien
Author-X-Name-First: Chengli
Author-X-Name-Last: Tien
Title: The Roots of Corporate Transparency: A Mediated Moderation Model to Predict Foreign Institutional Investment
Abstract: 
 This study analyzes the dynamics of attracting foreign institutional investment, using the mediated moderation approach to investigate whether corporate transparency can mediate the interactive effects of firm performance and family or policy on foreign institutional investment. This study has several findings. First, corporate transparency does not mediate the relationship between firm performance and foreign institutional investment. Second, firm performance can interact with the policy effect to affect foreign institutional investment. Third, based on the second finding, a further test found that the mediating process through corporate transparency does not account for the moderation effect of policy on the relationship between firm performance and foreign institutional investment. The findings can provide academics, practitioners, and policy makers with evidence regarding the role of firm performance and corporate transparency, as well as the effects of family and policy in encouraging foreign institutional investment.
Journal: Emerging Markets Finance and Trade
Pages: 1024-1042
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2019.1658066
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658066
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Template-Type: ReDIF-Article 1.0
Author-Name: Chen-Hsun Lee
Author-X-Name-First: Chen-Hsun
Author-X-Name-Last: Lee
Author-Name: Roger C. Y. Chen
Author-X-Name-First: Roger C. Y.
Author-X-Name-Last: Chen
Author-Name: Shih-Wei Hung
Author-X-Name-First: Shih-Wei
Author-X-Name-Last: Hung
Author-Name: Cheng-Xing Yang
Author-X-Name-First: Cheng-Xing
Author-X-Name-Last: Yang
Title: Corporate Social Responsibility and Firm Value: The Mediating Role of Investor Recognition
Abstract: 
 The study is to examine the mediating effect of investor recognition on the relationship between CSR and firm value. Data on companies listed on the Taiwan Stock Exchange between 2010 and 2013 were taken from Taiwan Economic Journal Data Bank (TEJ) and the CSR database developed by Chen and Hung (2013). Using partial least square analysis, we found that (i) significant positive effects between CSR and investor recognition, investor recognition and firm value, and finally CSR and firm value; (ii) when investor recognition is treated as a mediator, there is a mediating effect; and (iii) this mediating effect is a full mediation. The study helps to link CSR to firm value and reveals the crucial role of investor recognition as a mediator, thereby clarifying the indistinct relationship between CSR and firm value in existing literature.
Journal: Emerging Markets Finance and Trade
Pages: 1043-1054
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2018.1501676
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1501676
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Template-Type: ReDIF-Article 1.0
Author-Name: Tsung-Che Wu
Author-X-Name-First: Tsung-Che
Author-X-Name-Last: Wu
Author-Name: Hung-Hsi Huang
Author-X-Name-First: Hung-Hsi
Author-X-Name-Last: Huang
Author-Name: Ching-Ping Wang
Author-X-Name-First: Ching-Ping
Author-X-Name-Last: Wang
Author-Name: Yi-Lin Zhong
Author-X-Name-First: Yi-Lin
Author-X-Name-Last: Zhong
Title: The Influences of Book-to-Price Ratio and Stock Capitalization on Value-at-Risk Estimation in Taiwan Stock Market
Abstract: 
 This study examines whether the stock capitalization and book-to-price (B/P) ratio can affect the VaR (value-at-risk) estimation performances in six VaR estimation methodologies. Examining on the daily returns on Taiwan stock market, we find that the market capitalization is not a significant factor in VaR estimation, while the B/P ratio is generally positively related to VaR estimates. Among various VaR estimation models, the historical simulation model performs the best, and the followers are the Student-t and extreme value theory models. Reversely, normal distribution model performs the worst, and the GARCH-family models frequently extremely over-estimate or under-estimate the individual daily VaR.
Journal: Emerging Markets Finance and Trade
Pages: 1055-1072
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2018.1509790
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1509790
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:5:p:1055-1072




Template-Type: ReDIF-Article 1.0
Author-Name: Szu-Hsien Lin
Author-X-Name-First: Szu-Hsien
Author-X-Name-Last: Lin
Author-Name: Huei-Hwa Lai
Author-X-Name-First: Huei-Hwa
Author-X-Name-Last: Lai
Title: Earnings Management during the Fourth Quarter: Evidence from Taiwan
Abstract: 
 This study aims to investigate earnings management during the fourth quarter and explains why there is a large kink in the distribution of annual earnings around zero. We use multinomial logistic regressions to investigate intra-year shifts in earnings distributions. Our empirical results support that managers of listed companies in Taiwan may manage earnings upward or keep their earnings during the fourth quarter to avoid small losses or decreases in earnings, when their earnings are slightly below or above zero after the first three quarters. Thus, auditors should pay more attention to the firms with cumulative earnings distribution surrounding zero at the end of the third quarter. However, we also demonstrate that some of the earnings maintenance or movement is due to the industry factor rather than earnings management. Meanwhile, the earnings management behavior seems less obvious since 2008, which may be due to the improvement of corporate governance.
Journal: Emerging Markets Finance and Trade
Pages: 1073-1092
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2019.1643715
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1643715
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Template-Type: ReDIF-Article 1.0
Author-Name: Cho-Min Lin
Author-X-Name-First: Cho-Min
Author-X-Name-Last: Lin
Author-Name: Clara Chia Sheng Chen
Author-X-Name-First: Clara Chia Sheng
Author-X-Name-Last: Chen
Author-Name: Sheng-Yung Yang
Author-X-Name-First: Sheng-Yung
Author-X-Name-Last: Yang
Author-Name: Wan-Ru Wang
Author-X-Name-First: Wan-Ru
Author-X-Name-Last: Wang
Title: The Effects of Corporate Governance on Credit Ratings: The Role of Corporate Social Responsibility
Abstract: 
 This study examines the effects of corporate governance and corporate social responsibility (CSR) on credit ratings for firms in Taiwan. We examine this causal relationship using ordered logit regressions with two-stage least-squares estimates. We document that CSR performance demonstrates both moderation and partial mediation effects in the relationship between corporate governance and credit rating. Our results indicate that a firm should practice good corporate governance and engage in CSR activities to improve its credit rating. This study further shows that family firms with strong corporate governance and good CSR performance do not benefit from higher credit ratings. However, large firms with good corporate governance practices benefit from higher credit ratings.
Journal: Emerging Markets Finance and Trade
Pages: 1093-1112
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2018.1512486
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1512486
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Template-Type: ReDIF-Article 1.0
Author-Name: Yujan Shen
Author-X-Name-First: Yujan
Author-X-Name-Last: Shen
Author-Name: Chienjen Hung
Author-X-Name-First: Chienjen
Author-X-Name-Last: Hung
Author-Name: Jrjung Chiou
Author-X-Name-First: Jrjung
Author-X-Name-Last: Chiou
Author-Name: Kuanfu Shen
Author-X-Name-First: Kuanfu
Author-X-Name-Last: Shen
Title: The January Effect and Prospect Theory in Taiwan
Abstract: 
 Prospect theory can predict the January effect. The capital gains overhang is a dominant variable in predicting the January effect, and past returns are only a noisy proxy. Empirical results based on date from Taiwan support our argument. At the beginning of every January, as proposed by the prospect theory, stocks with the lowest capital gains overhang induce investors to hold on to their losing stocks, which in turn restricts available supply and reduces selling pressure in January. Thus, because investors are willing to sell only at a premium, trading takes place at an inflated price, which causes the January effect.
Journal: Emerging Markets Finance and Trade
Pages: 1113-1123
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2019.1598367
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1598367
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Template-Type: ReDIF-Article 1.0
Author-Name: Youxing Huang
Author-X-Name-First: Youxing
Author-X-Name-Last: Huang
Author-Name: Huixin Yang
Author-X-Name-First: Huixin
Author-X-Name-Last: Yang
Title: Identifying IFDI and OFDI Productivity Spatial Spillovers: Evidence from China
Abstract: 
 Using an original and unique merged large-scale Chinese dataset over 2002–2007, this article investigates the productivity spatial spillover effects from both inward and outward foreign direct investment (FDI) to private-owned domestic firms based on intra- and inter-regional dimensions. Results show strong evidence that the positive outward FDI (OFDI) spillover effect dominates in inter-region, whereas no significant positive effect exists in intra-region. By contrast, no significant spatial spillover effect is observed from inward FDI (IFDI). In addition, there exists the optimum geographical distance on productivity spatial spillovers as a result of the non-linear impact of the geographical proximity. These results are robust after controlling potential endogeneity and to different specifications.
Journal: Emerging Markets Finance and Trade
Pages: 1124-1145
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2018.1553161
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1553161
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Template-Type: ReDIF-Article 1.0
Author-Name: Evren Ceritoğlu
Author-X-Name-First: Evren
Author-X-Name-Last: Ceritoğlu
Title: Homeownership, Housing Demand, and Household Wealth Distribution in Turkey
Abstract: 
 This article analyzes housing market developments in Turkey over the past two decades. In particular, we estimate the permanent income elasticity, price elasticity, and interest rate elasticity of housing demand. We use 14 consecutive waves of the Turkish Statistical Institute (TURKSTAT) Household Budget Surveys (HBS) from 2003 to 2016. We find that the permanent income elasticity of housing demand is statistically significant at 26% in our restricted sample. However, we find that both the price elasticity and interest rate elasticity are not statistically significant. Therefore, our empirical analysis confirms that income is the main determinant of homeownership and housing wealth.
Journal: Emerging Markets Finance and Trade
Pages: 1146-1165
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2018.1555461
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1555461
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Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Kupfer
Author-X-Name-First: Alexander
Author-X-Name-Last: Kupfer
Author-Name: Josef Zorn
Author-X-Name-First: Josef
Author-X-Name-Last: Zorn
Title: A Language-Independent Measurement of Economic Policy Uncertainty in Eastern European Countries
Abstract: 
 This article proposes a novel way to construct an index for economic policy uncertainty that does not depend on language proficiency. We use two specific features of search volume extraction on Google Trends, combine policy-relevant search queries, and construct our Google economic policy uncertainty index for nine Eastern European countries—a region in which the construction of other economic policy uncertainty indices would require good language proficiency. We illustratively show that major policy-related events are captured and find that shocks on economic policy uncertainty yield a sizable impact on macroeconomic variables.
Journal: Emerging Markets Finance and Trade
Pages: 1166-1180
Issue: 5
Volume: 56
Year: 2020
Month: 4
X-DOI: 10.1080/1540496X.2018.1559140
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1559140
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuhang Zheng
Author-X-Name-First: Yuhang
Author-X-Name-Last: Zheng
Author-Name: Zhenzhen Wang
Author-X-Name-First: Zhenzhen
Author-X-Name-Last: Wang
Author-Name: Zhehao Huang
Author-X-Name-First: Zhehao
Author-X-Name-Last: Huang
Author-Name: Tianpei Jiang
Author-X-Name-First: Tianpei
Author-X-Name-Last: Jiang
Title: Comovement between the Chinese Business Cycle and Financial Volatility: Based on a DCC-MIDAS Model
Abstract: 
 In this paper, we investigate the comovement between the Chinese business cycle and financial variables from 1994 to 2017 using a dynamic conditional correlation-mixed data sample (DCC-MIDAS) model. We analyze the relation and contagion between the business cycle and financial volatility and then construct a DCC-MIDAS model to capture the dynamic relation between the business cycle and financial volatility. Then, we carry out an empirical analysis, finding comovement in the relation and contagion between the Chinese business cycle and financial volatility. Short-term shocks can influence both long-term relations and variations in the correlation coefficients with a lag. An accumulation of short-term shocks can be transformed into a long-term tendency, which explains the dynamically related long-term effect. Constructing this model with high-frequency data captures more information than using low-frequency data, which reveals more profound patterns in the comovement between the business cycle and financial volatility.
Journal: Emerging Markets Finance and Trade
Pages: 1181-1195
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1620100
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1620100
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Template-Type: ReDIF-Article 1.0
Author-Name: Rongda Chen
Author-X-Name-First: Rongda
Author-X-Name-Last: Chen
Author-Name: Huiwen Chen
Author-X-Name-First: Huiwen
Author-X-Name-Last: Chen
Author-Name: Chenglu Jin
Author-X-Name-First: Chenglu
Author-X-Name-Last: Jin
Author-Name: Bo Wei
Author-X-Name-First: Bo
Author-X-Name-Last: Wei
Author-Name: Lean Yu
Author-X-Name-First: Lean
Author-X-Name-Last: Yu
Title: Linkages and Spillovers between Internet Finance and Traditional Finance: Evidence from China
Abstract: 
 Investors, researchers, and policy makers have an urgent need to understand the linkages between internet finance and traditional financial markets. This study collects corresponding daily industrial indices of the banking, security, and insurance industries from the Wind database to depict the traditional financial market in China and uses an online loan comprehensive interest rate index as a proxy for internet finance. The empirical results first show that only internet finance and the banking industry have mutual causality. Then, using conditional value at risk (CoVaR) to measure the degree of spillovers, the risk of internet finance is more likely to spill over to the banking industry, followed by the insurance industry and, lastly, the securities industry. These findings are consistent with the closeness between internet finance and the banking, insurance, and security industries, respectively. The linkage relationships and spillover effect are robust to the method and market index applied.
Journal: Emerging Markets Finance and Trade
Pages: 1196-1210
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1658069
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658069
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Template-Type: ReDIF-Article 1.0
Author-Name: Gaoke Liao
Author-X-Name-First: Gaoke
Author-X-Name-Last: Liao
Author-Name: Dequan Yao
Author-X-Name-First: Dequan
Author-X-Name-Last: Yao
Author-Name: Zhihao Hu
Author-X-Name-First: Zhihao
Author-X-Name-Last: Hu
Title: The Spatial Effect of the Efficiency of Regional Financial Resource Allocation from the Perspective of Internet Finance: Evidence from Chinese Provinces
Abstract: 
 In this article, we analyzed the impact mechanism of Internet finance on the efficiency of regional financial resource allocation. A data envelopment analysis–Malmquist model is used to measure the efficiency of financial resource allocation in 30 provinces in China, and the impact of Internet finance on the efficiency of regional financial resource allocation is tested using a spatial Durbin model. The results show clear spatial agglomeration and spillover effects in the efficiency of regional financial resource allocation. In addition, developing Internet finance can promote the efficiency and technological progress of regional financial resource allocation and can enhance efficiency and technological progress in the allocation of financial resources in adjacent regions. However, it can hurt the technical efficiency of regional financial resource allocation.
Journal: Emerging Markets Finance and Trade
Pages: 1211-1223
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2018.1564658
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1564658
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Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Tang
Author-X-Name-First: Xuan
Author-X-Name-Last: Tang
Author-Name: Xing Gao
Author-X-Name-First: Xing
Author-X-Name-Last: Gao
Author-Name: Qiuping Zhou
Author-X-Name-First: Qiuping
Author-X-Name-Last: Zhou
Author-Name: Jian Ma
Author-X-Name-First: Jian
Author-X-Name-Last: Ma
Title: The BSS-FM Estimation of International Assets Allocation for China Mainland Investors
Abstract: 
 Combining the Bayes–Stein shrinkage estimation and the factor model (BSS-FM), we study the international assets allocation issue for investors in China. Our empirical results indicate that the traditional estimation of coefficients for the Markowitz mean-variance model is not stable. Moreover, the BSS-FM method could improve the robustness of estimation, thus leading to a more robust efficiency frontier. Compared to most foreign markets, the Shanghai and Shenzhen stock markets are more profitable but also much more volatile and risky, with a significant correlation. However, their relation to other international exchange markets, except the Hong Kong market, is much lower than the global average. Because low correlation could significantly improve the effects of international diversification, more openness by the Chinese stock market benefits both Chinese and foreign investors. Our simulation indicates that it could greatly reduce investment risk for Chinese investors, if they make their portfolios more internationally diversified.
Journal: Emerging Markets Finance and Trade
Pages: 1224-1236
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1658071
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658071
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Template-Type: ReDIF-Article 1.0
Author-Name: Tinghui Li
Author-X-Name-First: Tinghui
Author-X-Name-Last: Li
Author-Name: Junhao Zhong
Author-X-Name-First: Junhao
Author-X-Name-Last: Zhong
Author-Name: Zimei Huang
Author-X-Name-First: Zimei
Author-X-Name-Last: Huang
Title: Potential Dependence of Financial Cycles between Emerging and Developed Countries: Based on ARIMA-GARCH Copula Model
Abstract: 
 The characteristics and dependence structures of financial cycles have become a central issue in macroeconomic policy. Our study quantifies the dependence of financial cycles in emerging and developed countries in January 1993–December 2017. We fit the marginal distributions of the financial cycles by applying an ARIMA-GARCH model and capture the dependence structures by selecting the optimal copula model. Our main findings indicate that the financial cycle has obvious characteristics that can be roughly divided into three stages. ARIMA (2,1,2) and GARCH (1,1) are fit the marginal distribution of the financial cycle. Emerging countries show more interdependence and a higher degree of dependence than developed countries. Several important policy and economic implications can be drawn from the empirical results of this study.
Journal: Emerging Markets Finance and Trade
Pages: 1237-1250
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1611559
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1611559
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Template-Type: ReDIF-Article 1.0
Author-Name: Xueting Yu
Author-X-Name-First: Xueting
Author-X-Name-Last: Yu
Author-Name: Yuhan Zhu
Author-X-Name-First: Yuhan
Author-X-Name-Last: Zhu
Author-Name: Guangming Lv
Author-X-Name-First: Guangming
Author-X-Name-Last: Lv
Title: Analysis of the Impact of China’s GDP Data Revision on Monetary Policy from the Perspective of Uncertainty
Abstract: 
 Based on the uncertainty brought about by the revision of GDP data, this article calculates the revision effect of GDP data uncertainty from 2000 to 2017 in China, analyzes the implications of GDP revision on output gap estimation, and estimates the effect of this uncertainty on monetary policy. The main results show the following: (1) GDP data revision indeed leads to noticeable uncertainty in the measured GDP and its growth rate in China. (2) The effect of data revision on the output gap shows a downward trend, and the results of the QT filter are most robust among the methods. (3) Controlling the uncertainty of the output gap model to a certain extent, the synchronism and forward-looking Taylor rules can describe China’s monetary policy behavior, while considering the uncertainty of data, the synchronism Taylor rules perform best. The above conclusions have practical reference and policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 1251-1274
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1695120
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695120
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Template-Type: ReDIF-Article 1.0
Author-Name: Shuanglian Chen
Author-X-Name-First: Shuanglian
Author-X-Name-Last: Chen
Author-Name: Siming Liu
Author-X-Name-First: Siming
Author-X-Name-Last: Liu
Author-Name: Rongjiao Cai
Author-X-Name-First: Rongjiao
Author-X-Name-Last: Cai
Author-Name: Yaya Zhang
Author-X-Name-First: Yaya
Author-X-Name-Last: Zhang
Title: The Factors that Influence Exchange-Rate Risk: Evidence in China
Abstract: 
 Exchange-rate volatility plays an important role in both macroeconomic and financial development. In this paper, we measure the exchange-rate risk based on the conditional autoregressive value at risk (CAViaR). By establishing a Markov regime-switching model, we explore the factors that influence China’s exchange-rate risk in different regimes. The results show that trade balance, investor attention, and the interaction between policy uncertainty and investor attention have an asymmetric effect on exchange-rate risk in different regimes. More specifically, the impact of trade balance on exchange-rate risk has a linear trend, investor attention to exchange-rate risk is U-shaped, and the interaction between policy uncertainty and investor attention has an inverted-U-shaped effect on exchange-rate risk. Therefore, it is necessary to improve the monitoring mechanism of the exchange-rate risk regime. Specifically, when the exchange-rate risk is low, we can continue to release positive news and attract more investor attention. Under medium risk, we can promote exports by formulating supporting policies and use online tools to release accurate news to guide investors. Under a high-risk regime, while implementing the policies which encourage exports, the government should also introduce policy interventions for guiding investors to return rational expectations.
Journal: Emerging Markets Finance and Trade
Pages: 1275-1292
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1636229
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1636229
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Template-Type: ReDIF-Article 1.0
Author-Name: Hao Dong
Author-X-Name-First: Hao
Author-X-Name-Last: Dong
Author-Name: Liming Chen
Author-X-Name-First: Liming
Author-X-Name-Last: Chen
Author-Name: Xinyi Zhang
Author-X-Name-First: Xinyi
Author-X-Name-Last: Zhang
Author-Name: Pierre Failler
Author-X-Name-First: Pierre
Author-X-Name-Last: Failler
Author-Name: Sa Xu
Author-X-Name-First: Sa
Author-X-Name-Last: Xu
Title: The Asymmetric Effect of Volatility Spillover in Global Virtual Financial Asset Markets: The Case of Bitcoin
Abstract: 
 In this paper, we measure the asymmetric volatility spillover among six virtual financial asset (VFA) markets from January 1, 2014, to September 30, 2017, using the volatility spillover index based on a Markov regime-switching vector autoregressive (VAR) model and conduct a static and dynamic analysis under different regimes. The static results show that asymmetric effects of total, internal and net volatility spillover, on average, exist in all six VFA markets under different regimes. The dynamic results show that total, directional, and net spillover have significantly asymmetric effects. Thus, the government should monitor the specific VFA regimes and improve market regulation.
Journal: Emerging Markets Finance and Trade
Pages: 1293-1311
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1671819
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1671819
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Template-Type: ReDIF-Article 1.0
Author-Name: Zi-Sheng Ouyang
Author-X-Name-First: Zi-Sheng
Author-X-Name-Last: Ouyang
Author-Name: Ying Huang
Author-X-Name-First: Ying
Author-X-Name-Last: Huang
Author-Name: Yun Jia
Author-X-Name-First: Yun
Author-X-Name-Last: Jia
Author-Name: Chang-Qing Luo
Author-X-Name-First: Chang-Qing
Author-X-Name-Last: Luo
Title: Measuring Systemic Risk Contagion Effect of the Banking Industry in China: A Directed Network Approach
Abstract: 
 To capture the impact of investor sentiment on risk contagion of financial institutions and potential tail risks caused by financial network structure, this paper uses a directed network approach to measure systemic risk contagion effect of Chinese banking industry. We use linear quantile lasso regression and local polynomial method to estimate TENET model, and construct a weighted directed network. Moreover, we study directed network from different perspectives, analyze financial risk contagion effect and the influence of investor sentiment on financial risk contagion, and identify systemically important financial institutions. We find that: (1) As crisis spreads, financial system becomes more closely related, and total network connectivity continues to rise until it reaches a maximum value. (2) Total network connectivity and systemic risk have the same upward or downward trend, but systemic risk lags behind total network connectivity. (3) Current bank has characteristics of “too big to fail” and “too contact to fail”.
Journal: Emerging Markets Finance and Trade
Pages: 1312-1335
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1711368
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1711368
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Template-Type: ReDIF-Article 1.0
Author-Name: Yue Liu
Author-X-Name-First: Yue
Author-X-Name-Last: Liu
Author-Name: Zhenghui Li
Author-X-Name-First: Zhenghui
Author-X-Name-Last: Li
Author-Name: Manrui Xu
Author-X-Name-First: Manrui
Author-X-Name-Last: Xu
Title: The Influential Factors of Financial Cycle Spillover: Evidence from China
Abstract: 
 This study explores the non-linear effects of economic policy uncertainty, bilateral trade intensity, and capital flow on China’s financial cycle spillover when institutional distance changes over the period 1997Q1-2017Q4. Main findings indicate that there is a linear effect of these influential factors on China’s financial cycle spillover during the overall sample period and a non-linear effect during the normal and crisis periods. The transition function exhibits a smooth and gradual change trend during the normal period and a double-threshold effect during the crisis one. Furthermore, these influential factors present differences with regard to facilitating and restraining effect in different periods. These results have important implications for policymakers to make macroprudential policies.
Journal: Emerging Markets Finance and Trade
Pages: 1336-1350
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1658076
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658076
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:6:p:1336-1350




Template-Type: ReDIF-Article 1.0
Author-Name: Go Yano
Author-X-Name-First: Go
Author-X-Name-Last: Yano
Author-Name: Maho Shiraishi
Author-X-Name-First: Maho
Author-X-Name-Last: Shiraishi
Title: Financing of Physical and Intangible Capital Investments in China
Abstract: 
 We used firm-level micro panel data for industrial firms in China from 2000 to 2009, which were drawn from a novel database, to study their methods of financing physical and intangible capital investments. Regarding non-listed domestic firms, our findings were as follows: (1) trade credit finances physical capital investments. (2) The complementary relationship between internal and external sources of finance changes from that between cash flows and trade credit to that between cash flows and bank loans as investment risk increases. (3) However, firms forgo debt finance, including bank loans, and rely instead on internal cash flows for financing investments under exceedingly risky conditions, such as the financing of intangible capital investments by financially-constrained high-tech firms.
Journal: Emerging Markets Finance and Trade
Pages: 1351-1376
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2018.1562889
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562889
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Template-Type: ReDIF-Article 1.0
Author-Name: Axel Hedström
Author-X-Name-First: Axel
Author-X-Name-Last: Hedström
Author-Name: Nathalie Zelander
Author-X-Name-First: Nathalie
Author-X-Name-Last: Zelander
Author-Name: Juha Junttila
Author-X-Name-First: Juha
Author-X-Name-Last: Junttila
Author-Name: Gazi Salah Uddin
Author-X-Name-First: Gazi Salah
Author-X-Name-Last: Uddin
Title: Emerging Market Contagion Under Geopolitical Uncertainty
Abstract: 
 We find that 10 emerging stock markets have high risk of contagion on the regional level but lower spillover with respect to the global markets, implying a potential for diversification benefits between emerging and global markets. Regional market integration seems to have been caused by trade integration, which has a policy implication for trade agreements’ systemic risk effects. We find that the geopolitical risk has no impact on either the return, or volatility spillovers. However, the general stock market risk (VIX) is connected to individual market volatilities, while the oil market is largely receiving the spillovers from the other markets.
Journal: Emerging Markets Finance and Trade
Pages: 1377-1401
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2018.1562895
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562895
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Template-Type: ReDIF-Article 1.0
Author-Name: Еvgenii Gorbatikov
Author-X-Name-First: Еvgenii
Author-X-Name-Last: Gorbatikov
Author-Name: Victoria Dobrynskaya
Author-X-Name-First: Victoria
Author-X-Name-Last: Dobrynskaya
Title: Asymmetric Arbitrage Opportunities for Cross-Listed Stocks: Evidence from Russia
Abstract: 
 We study alternative arbitrage strategies for stocks of Russian companies and the corresponding depositary receipts issued in European exchanges (‘mirror trades’). We provide evidence for significant arbitrage opportunities in Russia, and the potential returns are higher when the depository receipts are underpriced relative to stocks on the domestic market. Such asymmetry in arbitrage returns may be a consequence of money expatriation from Russia using these ‘mirror trades’ even when they are unprofitable, creating further mispricing. We also show that the long-short ‘buy-and-hold’ strategies, although being risky, generate returns which are about twice as high as the returns to the conversion strategies. Although the arbitrage returns have declined over time, they are still positive and generally higher than the market returns. Low liquidity of Russian depositary receipts on European exchanges is a significant barrier to arbitrage.
Journal: Emerging Markets Finance and Trade
Pages: 1402-1422
Issue: 6
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2018.1564276
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1564276
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Template-Type: ReDIF-Article 1.0
Author-Name: Dongyang Zhang
Author-X-Name-First: Dongyang
Author-X-Name-Last: Zhang
Author-Name: Wenping Zheng
Author-X-Name-First: Wenping
Author-X-Name-Last: Zheng
Title: Does Financial Constraint Impede the Innovative Investment? Micro Evidence from China
Abstract: 
 This study is among one of relatively few to test for financial constraints on corporate intangible investment behavior. We provide new evidence on the influence that financing constraints have on innovation investment using data of Chinese industrial firms during 1998–2006. By employing the system Generalized Method of Moments to overcome the endogeneity problem of large dynamic panel data, we find that non-state and foreign-owned firms exhibit positive and statistically significant sensitivity of innovation investment to cash flow, while state-owned enterprises (SOEs) do not. In addition, among firms with these characteristics, short-term banking finance and smoothing function of net working capital play significantly positive roles in financing innovation investment not only for SOEs but also for non-state and foreign firms. Our results are robust to a battery of sensitivity checks.
Journal: Emerging Markets Finance and Trade
Pages: 1423-1446
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2018.1542594
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1542594
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Template-Type: ReDIF-Article 1.0
Author-Name: Keqiang Hou
Author-X-Name-First: Keqiang
Author-X-Name-Last: Hou
Author-Name: Xing Li
Author-X-Name-First: Xing
Author-X-Name-Last: Li
Author-Name: Wei Zhong
Author-X-Name-First: Wei
Author-X-Name-Last: Zhong
Title: Price Limits and Asymmetry of Price Dynamics—High Frequency Evidence from the Chinese Stock Market
Abstract: 
 Our article employs the high frequency intraday data from the Shanghai Stock Exchange to analyze the impacts of the price limit mechanism on the stock price dynamics and their determinants. We document significant volatility spillover effects and downward magnet effects for individual stocks and for the market index. Finally, our empirical results suggest that timing and trading volumes are two determinants of price limit effects.
Journal: Emerging Markets Finance and Trade
Pages: 1447-1461
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2018.1553163
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1553163
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Template-Type: ReDIF-Article 1.0
Author-Name: Shimin Zhou
Author-X-Name-First: Shimin
Author-X-Name-Last: Zhou
Author-Name: Yang Wang
Author-X-Name-First: Yang
Author-X-Name-Last: Wang
Author-Name: Mianzhi Yang
Author-X-Name-First: Mianzhi
Author-X-Name-Last: Yang
Title: Importing and Firm Productivity in China: The Self-Selection Effect or the Learning Effect?
Abstract: 
 This paper uses data on Chinese manufacturing enterprises from 2000 to 2005 to explore the possible causal relationship between importing and firm productivity. By examining firm heterogeneity, we find that importers outperform non-importers on all the major scale and efficiency indicators. With respect to total factor productivity (TFP), importers perform better than firms with no international trade, and bilateral traders perform better than exporters. However, the positive relationship between importing and firm productivity is induced by the learning by importing effect, rather than the self-selection effect. We find no self-selection effect among non-exporters, processing trade exporters, and other exporters, whereas non-exporters and processing trade exporters benefit from importing; processing trade exporters with low TFP in particular benefit from faster TFP growth. No learning by importing effect is found among other exporters.
Journal: Emerging Markets Finance and Trade
Pages: 1462-1473
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1601553
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1601553
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Template-Type: ReDIF-Article 1.0
Author-Name: Chao Xuan
Author-X-Name-First: Chao
Author-X-Name-Last: Xuan
Author-Name: Xin Chen
Author-X-Name-First: Xin
Author-X-Name-Last: Chen
Title: City Size Distribution, Export-Oriented Economies, and Regional Technical Efficiency: The Case of China
Abstract: 
 This study examines two empirical considerations related to the distribution of cities of different sizes in China. First, the evolution of the distribution of Chinese cities of different sizes is examined across 22 provinces from 1995 to 2015. Second, the determinants of technical efficiency of individual regions within the size distribution are analyzed, as well as how regional growth is influenced by changes in human capital, regional city size distribution, foreign direct investment (FDI), and other factors. A panel data analysis is conducted to examine the potential determinants of the technical efficiency level in Chinese provinces for the period 1995 to 2015 and of regional technical efficiency. It is shown that a region’s urban concentration affects its effective economic growth; however, FDI should not be the engine of future economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 1474-1489
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1677462
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1677462
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Template-Type: ReDIF-Article 1.0
Author-Name: Hong Zhang
Author-X-Name-First: Hong
Author-X-Name-Last: Zhang
Author-Name: Yuyao Zhang
Author-X-Name-First: Yuyao
Author-X-Name-Last: Zhang
Author-Name: Shimin Zhou
Author-X-Name-First: Shimin
Author-X-Name-Last: Zhou
Author-Name: Yanmin He
Author-X-Name-First: Yanmin
Author-X-Name-Last: He
Title: Corporate Cash Holdings and Financial Constraints —An Analysis Based on Data on China at Company Level after the Global Financial Crisis
Abstract: 
 This paper analyses cash flow sensitivities of cash of the Chinese listed companies after the global financial crisis using System GMM Estimation based on data of listed companies in 2009–2014. This paper focuses on the firm heterogeneity of Chinese enterprises, such as financial constraints, firm sizes and cash dividends, and examines the mechanism involved in the corporate cash flow sensitivity of cash. In particular, the empirical result found that the sign of cash flows has a great impact on the cash flow sensitivity of cash. That is, a positive cash flow of a company has a negative and significant effect on the cash flow sensitivity of cash, while the effect of a negative cash flow is positive. Moreover, working capital influences the corporate cash-holding level. The more the working capital is, the less the cash-holding level becomes. Furthermore, disposals of fixed assets have positive influences on the cash flow sensitivity of cash.
Journal: Emerging Markets Finance and Trade
Pages: 1490-1503
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1603105
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1603105
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoying Li
Author-X-Name-First: Xiaoying
Author-X-Name-Last: Li
Author-Name: Jinling Li
Author-X-Name-First: Jinling
Author-X-Name-Last: Li
Author-Name: Xinjie Wu
Author-X-Name-First: Xinjie
Author-X-Name-Last: Wu
Title: University Spillovers, Spatial Distance, and Firm Innovation: Evidence at Chinese Listed Firms
Abstract: 
 This paper matches information from Chinese listed firms with cities to analyze university spillovers on firm innovation, and the distance between firms and universities is calculated using ArcGIS software. We find that firms’ patents are positively related to the number of universities in the same city, which indicates positive university spillovers on firm innovation; university spillovers attenuate with spatial distance between firms and universities; firms with larger annual sales and higher R&D investment have more university spillovers on innovations; and the results of positive spillovers and attenuation effects generally hold when we divide sample by industry or divide the total number of patents by invention, utility model, and design.
Journal: Emerging Markets Finance and Trade
Pages: 1504-1519
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1625765
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1625765
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Template-Type: ReDIF-Article 1.0
Author-Name: Hua Cheng
Author-X-Name-First: Hua
Author-X-Name-Last: Cheng
Author-Name: Rui Guo
Author-X-Name-First: Rui
Author-X-Name-Last: Guo
Title: Risk Preference of the Investors and the Risk of Peer-to-Peer Lending Platform
Abstract: 
 Peer-to-Peer (P2P) lending platform has experienced a prosperity in China from 2007 to 2016. However, in recent years, the risks and problems of the P2P platform increase rapidly. To figure out the reasons, this article establishes a theoretical model to analyze the risk of platform from the investors’ side. Through the model, we find that the higher the degree of the risk aversion of the investors, the higher the level of risks of the P2P lending platform. The model also indicates that the ratio of the institutional investors over the retail investors, the intermediary fee paid for the platform, as well as the probability of being arrested for the platform are factors that can influence the risk of the P2P platform. On this basis, we provide a new perspective to understand the mechanism of the P2P platform’s risks, and we suggest that to improve the clauses of qualified investors and to give adequate pricing power to the P2P platform can be helpful to reduce the risks of the platform.
Journal: Emerging Markets Finance and Trade
Pages: 1520-1531
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1574223
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1574223
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Template-Type: ReDIF-Article 1.0
Author-Name: Fengchun Li
Author-X-Name-First: Fengchun
Author-X-Name-Last: Li
Author-Name: Cheng Yu
Author-X-Name-First: Cheng
Author-X-Name-Last: Yu
Title: OFDI and Home Country Structural Upgrading: Does Spatial Difference Exist in China?
Abstract: 
 Based on Chinese provincial-level data, this paper integrates the adjustment variables of the characteristics of Chinese outward foreign direct investment (OFDI) into a “standard structural” model and analyzes the impact of OFDI on China‘s industrial upgrading. First, OFDI can promote industrial upgrading in countries that are targets of investment. Second, the rapid investment process restricts the industrial upgrading effect of OFDI. This means the different tempo will make enterprises in the investing country unable to adapt to the rapid changes in market demand. Third, the irregular investment process will restrict the industrial upgrading effect of OFDI. OFDI has a slower, planned, regular, continuous pace that gives enterprises in the country making the investment time to adjust. Last, the industrial upgrading effect of OFDI in different regions of China are affected by the characteristics of adjacent regions. That is, the OFDI in each province in China is affected by the investment mode of neighboring regions.
Journal: Emerging Markets Finance and Trade
Pages: 1532-1546
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1602037
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1602037
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Template-Type: ReDIF-Article 1.0
Author-Name: Le Tang
Author-X-Name-First: Le
Author-X-Name-Last: Tang
Author-Name: Yuyao Zhang
Author-X-Name-First: Yuyao
Author-X-Name-Last: Zhang
Author-Name: Jingyi Gao
Author-X-Name-First: Jingyi
Author-X-Name-Last: Gao
Author-Name: Fan Wang
Author-X-Name-First: Fan
Author-X-Name-Last: Wang
Title: Technological Upgrading in Chinese Cities: The Role of FDI and Industrial Structure
Abstract: 
 Foreign direct investment (FDI) has long been regarded as a key source of new knowledge external to the domestic economy, but relatively little is known about how the host regions’ technological upgrading is affected by industrial structure in terms of considering cognitive proximity. This article explores how industrial structure, whether related or unrelated, influences technological upgrading within and across cities. Based on a panel dataset on 239 Chinese cities in 2001–2009, our empirical results show that FDI spillover has a positive effect on local technological upgrading in both nearby and neighboring cities. Therefore, in Chinese cities, related industrial variety significantly enhances FDI spillover, while unrelated industrial variety diminishes FDI spillover. Only related industrial variety has a spatial effect, and it facilitates technology transfers and disseminations of FDI across cities. Our empirical evidence has implications at both the theoretical level and for policy making.
Journal: Emerging Markets Finance and Trade
Pages: 1547-1563
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2018.1562900
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562900
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Template-Type: ReDIF-Article 1.0
Author-Name: Ping Lin
Author-X-Name-First: Ping
Author-X-Name-Last: Lin
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Mengting Lin
Author-X-Name-First: Mengting
Author-X-Name-Last: Lin
Author-Name: Chen Lin
Author-X-Name-First: Chen
Author-X-Name-Last: Lin
Title: Empirical Study of Factors Influencing Performance of Chinese Enterprises in Overseas Mergers and Acquisitions in Context of Belt and Road Initiative—A Perspective Based on Political Connections
Abstract: 
 Based on overseas M&A cases during 2013–2017, this study investigated the factors influencing the performances of Chinese enterprises in overseas M&A within the context of the “Belt and Road Initiative” from the perspective of political connections. The following conclusions were reached: (1) the ownership of a target firm of an M&A in a member country of the “Belt and Road” club has no significant impact on the firm’s performance in the short term but has a significant negative impact in the long run; (2) a higher proportion of state-owned shares is conducive to accomplishing overseas M&A; (3) having senior executives with strong political backgrounds would improve the firm’s performance in overseas M&A in the short term but may damp in the long run. Chinese enterprises can take advantage of the “Belt and Road Initiative” and government resources to promote overseas M&A. They should carefully select their target firms and make efforts to strengthen integration in order to achieve good synergy between the acquiring and acquired firms. The government should improve the communication and coordination mechanisms between China and other member countries of the “Belt and Road Initiative”, provide more supports to achieve win–win scenarios among countries, markets, and enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 1564-1580
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1676226
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1676226
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Template-Type: ReDIF-Article 1.0
Author-Name: Yingyu Zhu
Author-X-Name-First: Yingyu
Author-X-Name-Last: Zhu
Title: An Economic Model for Studying the Role of Cultural Industries on Social Development in Cross-border Contexts
Abstract: 
 When using a traditional econometric model to study the promotion effect of the cultural industry on social development in cross-border context, only the mathematical formula is available for the quantitative analysis of social and economic problems, but disadvantages such as complex processing process, low efficiency, and low accuracy are still encountered. This article designs a research model to study the promoting effect of cultural industry on social development in the context of cross-border integration. Based on the economic measurement results of cultural tourism industry, the coupling principle is used to quantitatively analyze the coupling and coordination degree of the development of cultural tourism industry under cross-border integration. Using dynamic panel theory, this article studies the role of cultural tourism industry integration in social and economic development. The experimental results show that the model can effectively analyze the promoting effect of cultural industry on social development in the context of cross-border integration, in which the error rate is only 0.31 and the maximum growth rate is as high as 98%, indicating small error and high efficiency of the proposed model.
Journal: Emerging Markets Finance and Trade
Pages: 1581-1600
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1703106
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1703106
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Template-Type: ReDIF-Article 1.0
Author-Name: Lu Xu
Author-X-Name-First: Lu
Author-X-Name-Last: Xu
Author-Name: Qingzhu Qi
Author-X-Name-First: Qingzhu
Author-X-Name-Last: Qi
Author-Name: Peiding Sun
Author-X-Name-First: Peiding
Author-X-Name-Last: Sun
Title: Early-Warning Model of Financial Crisis: An Empirical Study Based on Listed Companies of Information Technology Industry in China
Abstract: 
 Based on the two dimensions of financial and non-financial index, this paper constructs a financial crisis early-warning index system of Chinese information technology listing companies from eight aspects: profitability, debt-paying ability, operational capacity, cash flow management, development capacity, innovation ability, governance structure, and external evaluation. This paper takes the listed companies of information technology industry appearing in Shanghai and Shenzhen stock exchange from 2003 to 2017 as samples for empirical research, and uses factor analysis and Logistic regression analysis to build the financial crisis early-warning model. The result shows that the predictive accuracy of this model is 87.5%, which is of guiding significance for the company to improve its financial management level.
Journal: Emerging Markets Finance and Trade
Pages: 1601-1614
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1703104
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1703104
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Template-Type: ReDIF-Article 1.0
Author-Name: Lixia Zeng
Author-X-Name-First: Lixia
Author-X-Name-Last: Zeng
Author-Name: Meilan Chen
Author-X-Name-First: Meilan
Author-X-Name-Last: Chen
Author-Name: Fangfang Zhang
Author-X-Name-First: Fangfang
Author-X-Name-Last: Zhang
Title: Urban Cost Performance and Industrial Agglomeration: City-Level Evidence from China
Abstract: 
 This study focuses on the prefecture-level cities in various provinces and autonomous regions in China, collects economic data from 2009 to 2014, and analyzes the cost efficiency in each region. To fill in the gap in the previous research, the present study analyzes the change trend of cost performance among Chinese prefecture-level cities in different years and explores the relationship between urban cost performance and industrial agglomeration. Results show that the average score of cost efficiency score of all prefecture-level cities is 0.694. The distribution of production efficiency in each region shows a downward trend from 2009 to 2010 and a growth trend after 2012. Furthermore, this study explores the influence of the rationalization of industrial structure and the industrial structure supererogation on the cost efficiency of urban economic activities. The results revealed that the more reasonable distribution of industrial structure in the city is associated with a higher level of cost savings of urban economic development.
Journal: Emerging Markets Finance and Trade
Pages: 1615-1629
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1699051
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1699051
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Template-Type: ReDIF-Article 1.0
Author-Name: Jing Lin
Author-X-Name-First: Jing
Author-X-Name-Last: Lin
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Title: Why China’s Heating Industry High-input but Low-return?
Abstract: 
 China is vigorously promoting energy conservation and emission reduction, however, its heating industry is still characterized by high input, high energy consumption, high pollution, but low output. Addressing this issue is of great significance for green economy. This paper tries to figure out the reasons behind this phenomenon by estimating the optimal resource allocation in the industry. The results reveal that labor input plays the most important role, while capital input plays the least. Blind expansion and blind investment exist in the industry. Technological progress’s impact on the heating output growth is limited. The contribution rate of scientific and technological progress is negative except 1985–1991 and 1994 indicating that the contribution rate of scientific and technological progress can become negative, and the negative effect grows with the increase in financial burden. This paper provides reference for the heating reform in China.
Journal: Emerging Markets Finance and Trade
Pages: 1630-1650
Issue: 7
Volume: 56
Year: 2020
Month: 5
X-DOI: 10.1080/1540496X.2019.1694507
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694507
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Template-Type: ReDIF-Article 1.0
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Author-Name: Xi Lin
Author-X-Name-First: Xi
Author-X-Name-Last: Lin
Author-Name: Qiren Liu
Author-X-Name-First: Qiren
Author-X-Name-Last: Liu
Title: How Did Free Trade Reshape the Transitional China? Evidence from Heterogeneous Exporters and Firm-Level Pollution Emissions
Abstract: 
 China’s economic development has entered a period of transformation. Does trade liberalization reshape transitional China? In this study, from the perspectives of heterogeneous exporters and firm-level pollution emissions, we employ the data of 372,861 samples from China’s manufacturing to empirically investigate the impacts of trade liberalization on China’s economic transformation. Our results indicate that both import and export liberalization significantly change the behaviors of Chinese exporters, and aggravates pollution emissions. The underlying mechanisms include scale, factor composition and technique effects by trade liberalization. In addition, trade liberalization has heterogeneous impacts on different types of firms, which refers to ownership reforms, manufacturing sector upgrades and regional-coordinated development that are the part of China’s economic transformation. Altogether, our findings provide important evidences on the impacts of trade liberalization on China’s economic transformation and firm-level pollution emissions.
Journal: Emerging Markets Finance and Trade
Pages: 1651-1676
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1620101
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1620101
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Template-Type: ReDIF-Article 1.0
Author-Name: Yao Xiao
Author-X-Name-First: Yao
Author-X-Name-Last: Xiao
Author-Name: Dandan Ma
Author-X-Name-First: Dandan
Author-X-Name-Last: Ma
Author-Name: Yutai Cheng
Author-X-Name-First: Yutai
Author-X-Name-Last: Cheng
Author-Name: Li Wang
Author-X-Name-First: Li
Author-X-Name-Last: Wang
Title: Effect of Labor Cost and Industrial Structure on the Development Mode Transformation of China’s Industrial Economy
Abstract: 
 Based on the non-parametric DEA-Malmquist method, this paper estimates the total factor productivities of the 33 industrial sectors in China for 2002–2014. The proposed industrial restructuring measurement is based on total factor productivity rates. This paper utilizes panel data from Chinese industrial sectors and observes the effects of labor costs and industrial restructuring on economic growth approaches. The results show a clear effect of labor cost increases and industrial restructuring in promoting the transformation of economic growth modes. To transform the mode of China’s industrial economic development, improving labor quality, accumulating human capital, and industrial restructuring should be emphasized.
Journal: Emerging Markets Finance and Trade
Pages: 1677-1690
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1694887
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694887
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Template-Type: ReDIF-Article 1.0
Author-Name: Junjun Jia
Author-X-Name-First: Junjun
Author-X-Name-Last: Jia
Author-Name: Huaqing Wu
Author-X-Name-First: Huaqing
Author-X-Name-Last: Wu
Author-Name: Xiaoxuan Zhu
Author-X-Name-First: Xiaoxuan
Author-X-Name-Last: Zhu
Author-Name: Jingwei Li
Author-X-Name-First: Jingwei
Author-X-Name-Last: Li
Author-Name: Ying Fan
Author-X-Name-First: Ying
Author-X-Name-Last: Fan
Title: Price Break Points and Impact Process Evaluation in the EU ETS
Abstract: 
 The paper identifies break points in the European Union Emissions Trading Scheme (EU ETS) from 2005 to 2018 using multiple structural change model, and illustrates the impact process of these break points on expected carbon returns and volatility using bilaterally modified dummies. Our results show five break points: April 27 and November 10, 2006, in phase I; November 17, 2008, November 3, 2014, and October 4, 2016, in phases II and III. On average, the two break points in phase I have a negative impact on carbon expected returns while the three break points in phases II and III have a positive impact. Only the break point on April 27, 2006, significantly increases the volatility of carbon prices. Our results affirm the effectiveness of successive short-, medium-, and long-term policy adjustments that aim to change the prolonged downturn in carbon price.
Journal: Emerging Markets Finance and Trade
Pages: 1691-1714
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1694888
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694888
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Template-Type: ReDIF-Article 1.0
Author-Name: Bengang Gong
Author-X-Name-First: Bengang
Author-X-Name-Last: Gong
Author-Name: Jiali Wang
Author-X-Name-First: Jiali
Author-X-Name-Last: Wang
Author-Name: Jinshi Cheng
Author-X-Name-First: Jinshi
Author-X-Name-Last: Cheng
Title: Market Demand for Electric Vehicles under Technology Improvements and Tax Relief
Abstract: 
 This study aims to find ways to promote the demand for and acceptance of electric vehicles (EVs) by studying the impacts of two policies: tax relief and technology improvements. We find a balanced relationship between the two policies, causing low-carbon awareness to have the same effect on EV demand. Outside of equilibrium, greater low-carbon awareness, rather than price discounts or improved technology, can help improve demand. Furthermore, higher production inputs improve the EV technology level, but changes in the ratio of technology to cost affect customers’ willingness to pay for EV products. Thus, technology and low-carbon awareness affect EV demand.
Journal: Emerging Markets Finance and Trade
Pages: 1715-1729
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1656606
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1656606
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Template-Type: ReDIF-Article 1.0
Author-Name: Feifei Wu
Author-X-Name-First: Feifei
Author-X-Name-Last: Wu
Author-Name: Huaqing Wu
Author-X-Name-First: Huaqing
Author-X-Name-Last: Wu
Author-Name: Xianfeng Zhang
Author-X-Name-First: Xianfeng
Author-X-Name-Last: Zhang
Title: How Does Innovation Activity Affect Firm Export Behavior? Evidence from China
Abstract: 
 Innovation activity largely determines how efficiently products of a firm match the preference of foreign consumers, and in turn significantly affects firm export behavior. This article sheds light on how innovation activity affects firm export behavior from the perspective of the dual export margins. The results from the theoretical analyses show that firm innovation activity promotes the expansion of an extensive export margin while having an ambiguous impact on the expansion of intensive export margin. Using micro-level data from Chinese manufacturing firms, we conclude that our empirical results are roughly in line with the theoretical propositions. In addition, the impact of innovation activity on the intensive export margin is significantly negative for China’s manufacturing firms. Furthermore, the effects of innovation activity on the dual export margins are significantly different among firms with differentiated characteristics, on which we also present some explanations to generate insights of the empirical results. The findings are robust to the alterative indicator for innovation or different estimation models.
Journal: Emerging Markets Finance and Trade
Pages: 1730-1751
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1694889
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694889
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuhong Wang
Author-X-Name-First: Yuhong
Author-X-Name-Last: Wang
Author-Name: Guangcheng Xu
Author-X-Name-First: Guangcheng
Author-X-Name-Last: Xu
Author-Name: Wanting Zhang
Author-X-Name-First: Wanting
Author-X-Name-Last: Zhang
Author-Name: Zhixiang Zhou
Author-X-Name-First: Zhixiang
Author-X-Name-Last: Zhou
Title: Location Analysis of Earthquake Relief Warehouses: Evaluating the Efficiency of Location Combinations by DEA
Abstract: 
 Earthquakes are natural disasters that can cause heavy casualties and great property losses. To effectively rescue the affected people, it is very important to set up warehouses for relief supplies, and the location of a disaster relief warehouse affects its ability to provide disaster relief. Comprehensive analysis of the indicators for alternative locations can produce a ranking, but if the top-ranking disaster relief warehouse locations are chosen, it may happen that the selected locations are too close to each other. To solve this problem, this paper combines locations into sets; selects coverage, distance, and risk as indicators; and then uses a data envelopment analysis (DEA) method to determine the combinations’ efficiencies. If a combination’s distance between the high ranked locations is too close, this method deletes it from consideration. This technique results in a more appropriate set of locations for the disaster relief warehouses.
Journal: Emerging Markets Finance and Trade
Pages: 1752-1764
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1663167
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1663167
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuning Gao
Author-X-Name-First: Yuning
Author-X-Name-Last: Gao
Author-Name: Meichen Zhang
Author-X-Name-First: Meichen
Author-X-Name-Last: Zhang
Author-Name: Xinran Liu
Author-X-Name-First: Xinran
Author-X-Name-Last: Liu
Title: Study on the Efficiency Measurements and Influence Factors of Development Financial Institutions
Abstract: 
 In this article, the efficiency of 12 development financial institutions (DFIs) is measured from 2009 to 2015 using the DEA–Malmquist method from dynamic and static aspects. Empirical analysis is performed on the influence factors of the DFIs using the Tobit model. Studies have shown that a multilateral DFI is more efficient than the other two types of DFIs and that efficiency growth is mainly driven by technical changes. Additionally, differences can be observed between the DFIs and multilateral institutions in low- and middle-income countries and the DFIs in the high-income countries. Addressing profit and policy targets is the key factor in improving the efficiency of all DFIs. The positions of the DFIs should be well defined, and market and competitive mechanisms should be properly introduced to increase the overall operational efficiency of the DFIs.
Journal: Emerging Markets Finance and Trade
Pages: 1765-1780
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1685975
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1685975
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Template-Type: ReDIF-Article 1.0
Author-Name: Ping Lin
Author-X-Name-First: Ping
Author-X-Name-Last: Lin
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Author-Name: Fu Lei
Author-X-Name-First: Fu
Author-X-Name-Last: Lei
Title: Influence of CEO Characteristics on Accounting Information Disclosure Quality—Based on the Mediating Effect of Capital Structure
Abstract: 
 Taking the A-share listed companies of the Shenzhen Stock Exchange in 2012–2017 as a sample and capital structure as a moderator variable, this paper uses a mediating effect model to investigate the mechanism of influence of CEO characteristics on accounting information disclosure quality (IDQ). According to our findings, female CEOs and CEO’s educational level negatively influence IDQ, while CEO’s wage level and the separation between CEO and chairman positively influence IDQ. CEO’s educational level positively influences the capital structure; CEO’s wage level and the separation between CEO and chairman negatively influence the capital structure, while female CEOs have a non-significant influence on it. Further investigation reveals that, in the mechanism of influence of female CEOs on IDQ, and the influence of CEO’s educational level on IDQ, capital structure exerts no mediating effect; and that, in the mechanisms of influence of CEO’s wage level, and the separation between CEO and chairman on IDQ, capital structure exerts a partial mediating effect. On this basis, this paper offers methodological inspiration and theoretical support to perfect the governance of Chinese listed companies and regulate their market behaviors.
Journal: Emerging Markets Finance and Trade
Pages: 1781-1803
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1698419
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1698419
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Template-Type: ReDIF-Article 1.0
Author-Name: Doowon Ryu
Author-X-Name-First: Doowon
Author-X-Name-Last: Ryu
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Author-Name: Heejin Yang
Author-X-Name-First: Heejin
Author-X-Name-Last: Yang
Title: Investor Sentiment, Market Competition, and Financial Crisis: Evidence from the Korean Stock Market
Abstract: 
 This study examines the role of product market competition in explaining the relationship between investor sentiment and stock returns. We also consider how financial crises, which are exogenous shocks to market participants, affect the associations and interactions among the market competition, investor sentiment, and stock market returns. Our empirical analyses indicate that the positive relationship between sentiment and returns found under high market competition disappears under low market competition. In the crisis period, however, we observe significant relationships between sentiment and returns irrespective of the degree of market competition.
Journal: Emerging Markets Finance and Trade
Pages: 1804-1816
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1675152
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1675152
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhitao Lin
Author-X-Name-First: Zhitao
Author-X-Name-Last: Lin
Author-Name: Ruolan Ouyang
Author-X-Name-First: Ruolan
Author-X-Name-Last: Ouyang
Author-Name: Xuan Zhang
Author-X-Name-First: Xuan
Author-X-Name-Last: Zhang
Title: The Effects of Macro News on Exchange Rates Volatilities: Evidence from BRICS Countries
Abstract: 
 We analyze the influence of US and Chinese macro news surprises on the exchange rates volatilities of BRICS countries considering total, cyclical and trend components from 2000 to 2019. A comprehensive “actual-survey” surprises set is constructed by 31 US and 15 Chinese macro news. We further divide the sample period into three sub-samples according to the Quantitative Easing (QE) policy conducted by the US, i.e., pre-QE, QE and post-QE. Our findings suggest that the US plays a more important role on the volatilities of BRICS exchange rates in a number of macro news than China; while China has more influence power from the aspect of average magnitudes of macro news effects. In general, the impact of US macro news shows a downtrend from numbers, but China presents an opposite tendency. Meanwhile, a rising trend in magnitudes is detected in either country. The study also indicates that both US and Chinese macro news have the highest explanation power on the cyclical volatility but may hardly explain the trend volatilities. In addition, the explanation power has become more significant since the initiation of QE. Moreover, our results reveal the existence of asymmetric sign effects of macro news surprises.
Journal: Emerging Markets Finance and Trade
Pages: 1817-1842
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1680540
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1680540
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Template-Type: ReDIF-Article 1.0
Author-Name: Chermin Fong
Author-X-Name-First: Chermin
Author-X-Name-Last: Fong
Author-Name: Juichan Huang
Author-X-Name-First: Juichan
Author-X-Name-Last: Huang
Author-Name: Hsiaohui Ho
Author-X-Name-First: Hsiaohui
Author-X-Name-Last: Ho
Author-Name: Mingching Huang
Author-X-Name-First: Mingching
Author-X-Name-Last: Huang
Author-Name: Huiwen Wang
Author-X-Name-First: Huiwen
Author-X-Name-Last: Wang
Author-Name: Peichun Hsieh
Author-X-Name-First: Peichun
Author-X-Name-Last: Hsieh
Title: Executive Succession Strategy of an Emerging-Market Company: An Investigation into the Spillover Effect
Abstract: 
 The purpose of this articleis to investigate the executive selection strategy of an emerging-market (EM) company. The articlebroadens spillover literature by examining corporate capabilities and consumer-perceived brand-evaluations of an EM company who recruits executives from developed-country (DC) incumbents. Three experiments are designed to test the spillover effects in CEO/CTO appointment scenarios. Results show that an EM company’s brand evaluation would be boosted when consumers perceive that corporate capabilities are strengthened, and that spillover strength varies from the brand image of the DC company. Selecting an executive from a DC incumbent can trigger consumer reevaluation on the corporate capabilities and the brand of the EM company. On the contrary, such selection decisions in emerging markets not only contribute to firm performance but also serve as market promotion strategies. Finally, it is found that as a performance indicator, consumers’ attitudes toward executive appointments indeed correspond to the reality of markets.
Journal: Emerging Markets Finance and Trade
Pages: 1843-1872
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1703105
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1703105
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiangyou Wu
Author-X-Name-First: Xiangyou
Author-X-Name-Last: Wu
Author-Name: Boqiang Lin
Author-X-Name-First: Boqiang
Author-X-Name-Last: Lin
Title: Economic Growth Effect of Nuclear Power Plants on Location Cities Based on Counterfactual Analysis with Prefecture-Level Panel Data of Mainland China
Abstract: 
 Whether the local economy can benefit from nuclear power plants will not only influence policymakers’ decision, but also the residents’ attitude. It is of great practical and academic value to scientifically evaluate and accurately measure the impact of nuclear power plants on the local economy. Based on the panel data of 287 prefecture-level cities in mainland China from 1998 to 2017, the HCW model was employed to construct the counterfactuals of the per capita real GDP of four cities where the four newly-put-into-commercial-operation nuclear power plants were located after the global financial crisis. We measured the promotion effect of nuclear power plants on the economic growth of the localities and found that the nuclear power plants as a whole have improved the per capita real GDP of the localities. From the time dimension, the nuclear power plants as a whole have a rising effect of 1963.65 yuan on per capita real GDP per year; from an individual perspective, each nuclear power plant can increase the per capita real GDP per year by 1415.67 yuan. For the location where the per capita real GDP is low, the nuclear power plant has a stronger economic growth effect; for the location where the per capita real GDP is high, the economic growth effect of the nuclear power plant is relatively weak, and may even have an inhibitory effect. Governments should choose the relatively less-developed cities as the possible alternative ones to achieve the maximal acceleration effect on local economic growth and harvest the greatest support of local residents. Governments should also make efforts to keep the continuity and succession in time of different sub-projects to ensure the local economy can enjoy a sustainable boosting.
Journal: Emerging Markets Finance and Trade
Pages: 1873-1893
Issue: 8
Volume: 56
Year: 2020
Month: 6
X-DOI: 10.1080/1540496X.2019.1697925
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1697925
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuning Gao
Author-X-Name-First: Yuning
Author-X-Name-Last: Gao
Author-Name: Jinghai Zheng
Author-X-Name-First: Jinghai
Author-X-Name-Last: Zheng
Title: Guest Editors’ Introduction: Global Value Chain and China’s Economic Development
Journal: Emerging Markets Finance and Trade
Pages: 1895-1896
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2020.1776202
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1776202
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:9:p:1895-1896




Template-Type: ReDIF-Article 1.0
Author-Name: Shenxiang Xie
Author-X-Name-First: Shenxiang
Author-X-Name-Last: Xie
Author-Name: Mingxin Zhang
Author-X-Name-First: Mingxin
Author-X-Name-Last: Zhang
Author-Name: Shenglong Liu
Author-X-Name-First: Shenglong
Author-X-Name-Last: Liu
Title: The Impact of Antidumping on the R&D of Export Firms: Evidence from China
Abstract: 
 The micro-influence of antidumping (AD) trade barriers has been given more attention lately, but the influence of AD barriers on the research and development (R&D) of export firms has not yet been studied empirically. In this study, we use firm-level data from China and difference-in-difference and Tobit models to examine the responses of export firms’ R&D activities to AD barriers. The results show that AD barriers significantly reduce firms’ R&D investment and R&D intensity, in particular, R&D investment among general export firms, high-tech firms, and single-product firms. While ordinary trade firms and high-tech firms are more R&D intensive, larger-scale export firms generally have higher productivity. Therefore, AD barriers have a significant effect on firms’ innovation, long-term productivity improvement, and allocation of R&D resources. We also examined the impact mechanism from the perspective of financial constraints.
Journal: Emerging Markets Finance and Trade
Pages: 1897-1924
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1694883
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694883
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuning Gao
Author-X-Name-First: Yuning
Author-X-Name-Last: Gao
Author-Name: Meng Li
Author-X-Name-First: Meng
Author-X-Name-Last: Li
Author-Name: Yufeng Lu
Author-X-Name-First: Yufeng
Author-X-Name-Last: Lu
Title: What Can Be Learned from Billions of Invoices? The Construction and Application of China’s Multiregional Input-Output Table Based on Big Data from the Value-Added Tax
Abstract: 
 The big data on the value-added tax (VAT), which links upstream production and downstream consumption, can serve as a key basis for a structured macroeconomic analysis. This paper discusses the construction and aggregation method of the transaction matrix between enterprises based on this data and develops a multiregional input-output (MRIO) table. The intraregional structure of this table is consistent with the IO table in China’s national statistics and includes more detail on the domestic value chain. We use big data on the VAT in creating an analytical tool to track profit shifting and tax avoidance. Therefore, this new MRIO table can coordinate consumption-based measures with the “destination principle” in international VAT statistics.
Journal: Emerging Markets Finance and Trade
Pages: 1925-1941
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1684254
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1684254
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Template-Type: ReDIF-Article 1.0
Author-Name: Yanqing Jiang
Author-X-Name-First: Yanqing
Author-X-Name-Last: Jiang
Author-Name: Yunliang Jiang
Author-X-Name-First: Yunliang
Author-X-Name-Last: Jiang
Author-Name: Jinghai Zheng
Author-X-Name-First: Jinghai
Author-X-Name-Last: Zheng
Title: Investment in Infrastructure and Regional Growth in China
Abstract: 
 In this paper we empirically examine the possible effects of regional infrastructure investment on regional per capita income growth and regional total factor productivity (TFP) growth. We first present a theoretical framework for output decomposition and then design a panel data growth model to examine the possible impact of regional infrastructure investment on regional per capita income growth. We find a negative effect of the former on the latter. We also perform a variance decomposition exercise and examine the possible effect of regional infrastructure investment on regional TFP growth. Our results suggest that regional infrastructure investment does not affect regional economic growth through the former’s impact on regional TFP growth. We also examine the possible relationship between regional infrastructure investment and the estimated individual region effects and find a negative correlation between the two.
Journal: Emerging Markets Finance and Trade
Pages: 1942-1956
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1627195
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1627195
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhidan Shi
Author-X-Name-First: Zhidan
Author-X-Name-Last: Shi
Author-Name: Xiao Tang
Author-X-Name-First: Xiao
Author-X-Name-Last: Tang
Title: Exploring the New Era: An Empirical Analysis of China’s Regional HDI Development
Abstract: 
 Based on the Human Development Index (HDI), this paper investigates the changes in China’s sectoral imbalance and provincial disparity. This paper calculates the HDI of Chinese provinces in 1982–2015 and analyzes the changes in the level of human development in various provinces since 1982. This paper finds that from 1982 to 2015, the HDI of all provinces in China generally increased. Among the three components of the HDI (income, health status, and education), income made the greatest contribution to the increase in the HDI. However, its marginal contribution to the HDI decreases as the gross national income (GNI) per capita increases. The provincial disparity among different areas is continually declining, while the component that makes the largest contribution varies: in 1982, income made the largest contribution, whereas in 2015, it was education. Income growth is the largest contributor to the continuous decline in HDI inequality, and education and health increases are positively correlated with increases in the HDI.
Journal: Emerging Markets Finance and Trade
Pages: 1957-1970
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1684255
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1684255
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiandong Chen
Author-X-Name-First: Jiandong
Author-X-Name-Last: Chen
Author-Name: Sishi Rong
Author-X-Name-First: Sishi
Author-X-Name-Last: Rong
Author-Name: Malin Song
Author-X-Name-First: Malin
Author-X-Name-Last: Song
Author-Name: Baofeng Shi
Author-X-Name-First: Baofeng
Author-X-Name-Last: Shi
Title: Evaluation of the Rural Minimum Living Standard Line in China
Abstract: 
 China’s rural minimum living security system guarantees life’s essentials to rural poor. However, rural minimum living security funds mainly come from local public finance, whose shortage lowers the rural minimum living standard line (RMLSL). Based on Tapio decoupling method, this study evaluates the relationship between prefectural RMLSL and per capita GDP, rural consumer price index, and per capita income of rural poor. Furthermore, we compare the provincial and prefectural RMLSLs with survival line, subsistence living, and development line, based on extended linear expenditure system model and Maslow’s demand hierarchical theory. Based on the analysis, we propose policies to improve RMLSL.
Journal: Emerging Markets Finance and Trade
Pages: 1971-1988
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1588108
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1588108
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuyun Xu
Author-X-Name-First: Yuyun
Author-X-Name-Last: Xu
Author-Name: Wenli Cheng
Author-X-Name-First: Wenli
Author-X-Name-Last: Cheng
Author-Name: Longyao Zhang
Author-X-Name-First: Longyao
Author-X-Name-Last: Zhang
Title: Switching from Group Lending to Individual Lending: The Experience at China’s Largest Microfinance Institution
Abstract: 
 We analyze group and individual lending using data from 26,579 loan-specific observations in 2014–2016 for CFPA Microfinance, China’s largest microfinance institution (MFI). We show that MFIs in China have converted a large share of their group liability portfolio into individual liability lending, particularly in southern China. Changes in loan contracts, especially loan size and interest rates, significantly increased repayment risk, whereas long borrowing history improved repayment performance. The higher repayment risk of individual lending was likely compensated by higher interest income. Our research indicates that, under certain circumstances, individual lending can be an important form of loans for MFIs.
Journal: Emerging Markets Finance and Trade
Pages: 1989-2006
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1636228
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1636228
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:9:p:1989-2006




Template-Type: ReDIF-Article 1.0
Author-Name: Wenlong Zhang
Author-X-Name-First: Wenlong
Author-X-Name-Last: Zhang
Author-Name: Yanying Zhang
Author-X-Name-First: Yanying
Author-X-Name-Last: Zhang
Author-Name: Gaiyan Zhang
Author-X-Name-First: Gaiyan
Author-X-Name-Last: Zhang
Author-Name: Ke Han
Author-X-Name-First: Ke
Author-X-Name-Last: Han
Author-Name: Lirong Chen
Author-X-Name-First: Lirong
Author-X-Name-Last: Chen
Title: The Dynamic Industry Return Predictability: Evidence from Chinese Stock Markets
Abstract: 
 This paper examines the dynamics, direction, and determinants of industry return predictability in Chinese stock markets during the period 1993–2015. Using the dynamic approach, we find that industry portfolio predictability is time varying and has wide variations across industries. Lagged returns in four industries (banking, real estate, leasing, and information technology) are positively associated with aggregate market returns, while lagged returns for traditional industries are largely inversely associated with market returns. Our findings are consistent with gradual information diffusion across economically-linked industries. The likelihood of industry predictability increases by 4.5–8% in a bull market over that in the bear market. Our results advise investors to distinguish industries and stock market conditions to better time the market.
Journal: Emerging Markets Finance and Trade
Pages: 2007-2026
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1624952
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1624952
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoling Wang
Author-X-Name-First: Xiaoling
Author-X-Name-Last: Wang
Author-Name: Haiying Lin
Author-X-Name-First: Haiying
Author-X-Name-Last: Lin
Author-Name: Maoxi Tian
Author-X-Name-First: Maoxi
Author-X-Name-Last: Tian
Title: Corporate Sustainability Performance of Chinese Firms: An Empirical Analysis from a Social Responsibility Perspective
Abstract: 
 Drawing on the concepts of sustainable corporate development and the triple bottom line, this study develops a corporate sustainability efficiency (CSE) index to evaluate sustainable corporate performance. Further, with the help of a meta-frontier analysis and a hybrid measure approach, the study identifies the existence and determinants of efficiency gaps introduced by technology heterogeneity across the sectors. The findings, obtained from empirical tests based on panel data of 138 large Chinese firms in 2011–2015, indicate that firms’ CSE was low during the twelfth five-year plan (2011–2015). The best performance was in manufacturing, followed by construction/mining, services, and finance, while technology heterogeneity caused significant efficiency gaps across industries. The study also identifies various managerial failures and a technology gap that contributed to the lack of efficiency gains before offering context-specific suggestions.
Journal: Emerging Markets Finance and Trade
Pages: 2027-2038
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1608522
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1608522
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Template-Type: ReDIF-Article 1.0
Author-Name: Hufeng Yang
Author-X-Name-First: Hufeng
Author-X-Name-Last: Yang
Author-Name: Han Li
Author-X-Name-First: Han
Author-X-Name-Last: Li
Author-Name: Zhen Hu
Author-X-Name-First: Zhen
Author-X-Name-Last: Hu
Author-Name: Guotai Chi
Author-X-Name-First: Guotai
Author-X-Name-Last: Chi
Title: Impacts of Venture Capital on Online P2P Lending Platforms: Empirical Evidence from China
Abstract: 
 We examined the impacts of venture capital investment (VCI) on the performance of online Peer-to-Peer (P2P) lending platforms. The research results show that: (1) Gaining the first round of VCI can increase the transaction scale and improve the compliance with regulatory requirement of the online P2P lending platforms; and (2) the platforms acquiring more rounds of VCI have greater turnover. The above research shows that under the background of information asymmetry, the certification function and monitoring mechanism of VCs can work in online P2P lending markets.
Journal: Emerging Markets Finance and Trade
Pages: 2039-2054
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1658074
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658074
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Template-Type: ReDIF-Article 1.0
Author-Name: Xu Han
Author-X-Name-First: Xu
Author-X-Name-Last: Han
Author-Name: Xianli Xia
Author-X-Name-First: Xianli
Author-X-Name-Last: Xia
Author-Name: Minjuan Zhao
Author-X-Name-First: Minjuan
Author-X-Name-Last: Zhao
Author-Name: Ke Xu
Author-X-Name-First: Ke
Author-X-Name-Last: Xu
Author-Name: Xingguang Li
Author-X-Name-First: Xingguang
Author-X-Name-Last: Li
Title: Synergistic Effects between Financial Development and Improvements in New-type Urbanization: Evidence from China
Abstract: 
 In this paper, we use the combination weight of game theory to evaluate a comprehensive index of new-type urbanization and then dynamic panel data for Chinese provinces over the period 2001 to 2016 to investigate the synergistic effects between financial development and improvement in new-type urbanization. Our results are based on system-generalized method of moments, and estimators indicate that the financial development variable measured by each dimension has different impacts on the level of new-type urbanization, respectively. The level of financial deepening measured by the total loan balance of all financial institutions divided by gross domestic product has the maximum impact on urbanization, and the financial structure has a minimal effect, confirming that a bank-dominated financial system supports improvement in new-type urbanization at the current stage. From the perspective of time periods, small- and medium-sized enterprises (SMEs) have a more obvious effect in the post-crisis period than the period 2001 to 2008. The stock market’s promotion effect on new-type urbanization also increased; thus, it is playing a greater role. These results imply that policies such as improving SMEs efficiency, optimizing the financial structure, and relaxing restrictions on private investment are likely to promote further improvement in new-type urbanization in China.
Journal: Emerging Markets Finance and Trade
Pages: 2055-2072
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1663728
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1663728
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Template-Type: ReDIF-Article 1.0
Author-Name: Wei Zhao
Author-X-Name-First: Wei
Author-X-Name-Last: Zhao
Author-Name: Yi Lu
Author-X-Name-First: Yi
Author-X-Name-Last: Lu
Author-Name: Minjuan Zhao
Author-X-Name-First: Minjuan
Author-X-Name-Last: Zhao
Author-Name: Peng Zhang
Author-X-Name-First: Peng
Author-X-Name-Last: Zhang
Title: Fluctuations in the Open Economy of China: Evidence from the ABNK Model
Abstract: 
 This paper investigates China’s macroeconomic fluctuations by using the agent-based New Keynesian (ABNK) model. The model features bounded rationality, heterogeneous expectations, and adaptive learning. The model is estimated by the Bayesian method combined with the differential evolution algorithm and is analyzed using the impulse response, forecast performance, and variance decomposition approach. The estimation results show that in the real economy, in addition to rational agents, there are also boundedly rational agents with adaptive learning expectations. The impulse responses of macroeconomic variables to shocks are more sensitive and last longer than those from the dynamic stochastic general equilibrium (DSGE) model. The ABNK model exhibits better out-of-sample forecast performance than both the vector auto-regression (VAR) and DSGE models.
Journal: Emerging Markets Finance and Trade
Pages: 2073-2092
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1635451
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1635451
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Template-Type: ReDIF-Article 1.0
Author-Name: Yong Wang
Author-X-Name-First: Yong
Author-X-Name-Last: Wang
Author-Name: Ying Dong
Author-X-Name-First: Ying
Author-X-Name-Last: Dong
Author-Name: Jian Xu
Author-X-Name-First: Jian
Author-X-Name-Last: Xu
Author-Name: Feng Liu
Author-X-Name-First: Feng
Author-X-Name-Last: Liu
Title: Using the Improved CGE Model to Assess the Impact of Energy Structure Changes on Macroeconomics and the Carbon Market: An Application to China
Abstract: 
 A reasonable energy structure can secure the orderly development of the economy and effectively control carbon emissions. This paper builds a CGE (Computable General Equilibrium) model that incorporates the carbon market module, uses 2012 as a base period, and uses carbon prices and energy investments as starting points to simulate and assess China’s impact on macroeconomics and carbon markets under three scenarios. The results show that a reasonable energy structure has a positive impact on macroeconomics, and macroeconomic indicators under the three scenarios show an increasing trend compared with 2012. The comparison of economic indicators under the different scenarios shows that the expected energy structure of the 12th Five-Year Plan is the most judicious among the three scenarios and can produce greater economic benefits with lower energy investments. The study concluded that carbon market spending as a percentage of GDP is the most appropriate indicator for analyzing the relationship between carbon prices and carbon dioxide emissions. Our analysis of the indicators found that the higher the carbon price, the smaller the carbon dioxide emissions, and the lower the carbon price, the greater the carbon dioxide emissions. This article will help provide a reference for China’s future energy structure adjustment.
Journal: Emerging Markets Finance and Trade
Pages: 2093-2112
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1614909
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1614909
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Template-Type: ReDIF-Article 1.0
Author-Name: Tianyuan Luo
Author-X-Name-First: Tianyuan
Author-X-Name-Last: Luo
Author-Name: Hufeng Yang
Author-X-Name-First: Hufeng
Author-X-Name-Last: Yang
Author-Name: Juehang Zhao
Author-X-Name-First: Juehang
Author-X-Name-Last: Zhao
Author-Name: Jiaxin Sun
Author-X-Name-First: Jiaxin
Author-X-Name-Last: Sun
Title: Farmers’ Social Networks and the Fluctuation in Their Participation in Crop Insurance: The Perspective of Information Diffusion
Abstract: 
 By investigating the diffusion of information among social networks, and by presenting an analysis of apple growers in terms of the mechanism that underlies insurance decision-making, this paper first examined the relationship between information diffusion in social networks and the volatility that is observed in the crop insurance purchasing rate in China. In accordance with the mean-field theory of social networks, a mathematical model of infectious disease dynamics was employed to construct an insurance purchasing model, and the convergence value of the crop insurance purchasing rate was derived. Second, this paper analyzed research data related to apple insurance, and verified some of the properties related to purchasing rate fluctuations. The results show that the purchasing rate of crop insurance has a unique convergence point. The greater the average degree among the social network, the quicker the crop insurance purchasing rate reached the convergence point, and the lower its volatility.
Journal: Emerging Markets Finance and Trade
Pages: 1-19
Issue: 9
Volume: 56
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2019.1668774
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668774
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Template-Type: ReDIF-Article 1.0
Author-Name: Mouyad Alsamara
Author-X-Name-First: Mouyad
Author-X-Name-Last: Alsamara
Author-Name: Zouhair Mrabet
Author-X-Name-First: Zouhair
Author-X-Name-Last: Mrabet
Author-Name: Karim Barkat
Author-X-Name-First: Karim
Author-X-Name-Last: Barkat
Author-Name: Mohamed Elafif
Author-X-Name-First: Mohamed
Author-X-Name-Last: Elafif
Title: The Impacts of Trade and Financial Developments on Economic Growth in Turkey: ARDL Approach with Structural Break
Abstract: 
 This study examines the impacts of trade openness, financial development, and energy imports on per capita real GDP in Turkey over the 1960–2014 period. The results show that there is evidence of a stable relationship in the presence of a shift in the cointegration vector in 1980 and 1988. Furthermore, the results indicate that trade openness and financial development have a positive impact on per capita real GDP growth whereas energy imports have a negative impact. Consequently, policy-makers should adopt policies that sustain the benefits of trade and financial developments and improve the use of renewable energy to counterbalance the negative effect of energy imports on economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 1671-1680
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1521800
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1521800
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Handle: RePEc:mes:emfitr:v:55:y:2020:i:8:p:1671-1680




Template-Type: ReDIF-Article 1.0
Author-Name: Surajit Das
Author-X-Name-First: Surajit
Author-X-Name-Last: Das
Author-Name: Israa A. El Husseiny
Author-X-Name-First: Israa A.
Author-X-Name-Last: El Husseiny
Title: Paradox of Austerity: Multi-Country Evidence
Abstract: 
 This article seeks to explore whether a reduction in the government expenditure would necessarily reduce the fiscal deficit to GDP ratio or not. It has been theoretically argued that this would really depend upon the values of the government expenditure elasticity and that of the revenue buoyancy of the economies, which are, in turn, dependent upon various institutional and historical factors of the respective economies. Based on available empirical evidence from 175 countries for 15 years (from 2000 to 2014), the authors argue that a cut in the government expenditure might paradoxically lead to a higher fiscal deficit to GDP ratio for about half of the countries around the globe. This study tries to argue that an improvement in the value of fiscal multiplier and that in the tax buoyancy can be the policy alternatives to various painful austerity measures.
Journal: Emerging Markets Finance and Trade
Pages: 1681-1693
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1530652
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530652
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Template-Type: ReDIF-Article 1.0
Author-Name: Narman Kuzucu
Author-X-Name-First: Narman
Author-X-Name-Last: Kuzucu
Author-Name: Serpil Kuzucu
Author-X-Name-First: Serpil
Author-X-Name-Last: Kuzucu
Title: What Drives Non-Performing Loans? Evidence from Emerging and Advanced Economies during Pre- and Post-Global Financial Crisis
Abstract: 
 We examine the determinants of non-performing loans (NPLs) in emerging countries compared to advanced countries during pre- and post-global financial crisis using dynamic panel estimation techniques. We analyze the effects of banking sector-specific factors and macroeconomic factors on NPLs utilizing a panel data set of emerging and advanced countries. Our results suggest that real GDP growth is the main determinant that affects the NPL ratio, and NPLs exhibit high persistence in emerging and advanced economies both for the pre- and post-crisis periods. We find that exchange rate and foreign direct investments (FDI) become statistically significant for emerging countries after the crisis period.
Journal: Emerging Markets Finance and Trade
Pages: 1694-1708
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1547877
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1547877
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Template-Type: ReDIF-Article 1.0
Author-Name: Ergys Islamaj
Author-X-Name-First: Ergys
Author-X-Name-Last: Islamaj
Author-Name: M. Ayhan Kose
Author-X-Name-First: M. Ayhan
Author-X-Name-Last: Kose
Author-Name: Franziska L. Ohnsorge
Author-X-Name-First: Franziska L.
Author-X-Name-Last: Ohnsorge
Author-Name: Lei Sandy Ye
Author-X-Name-First: Lei Sandy
Author-X-Name-Last: Ye
Title: Explaining Recent Investment Weakness: Causes and Implications
Abstract: 
 This article investigates the drivers of investment growth in emerging market and developing economies with a focus on the most recent slowdown over the 2010–2015 period. Using panel regression techniques, we find that the recent investment slowdown in emerging market and developing economies is associated with a range of obstacles: weak economic activity, negative terms-of-trade shocks, declining foreign direct investment inflows, elevated private debt burdens, and heightened political risk. This stands in contrast with advanced economies, where weak economic activity is the most important factor. We briefly discuss policy implications of our findings.
Journal: Emerging Markets Finance and Trade
Pages: 1709-1721
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1530105
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1530105
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Template-Type: ReDIF-Article 1.0
Author-Name: Kenta Funaoka
Author-X-Name-First: Kenta
Author-X-Name-Last: Funaoka
Author-Name: Yusaku Nishimura
Author-X-Name-First: Yusaku
Author-X-Name-Last: Nishimura
Title: Private Information, Investor Sentiment, and IPO Pricing: Which Institutional Investors Are Better Informed?
Abstract: 
 We provide new empirical evidence that certain institutional investors have private information that they use to profit from initial public offerings (IPOs). In this study, we analyze the bidding information related to five types of institutional investors in China’s ChiNext market to examine the impact of private information and investor sentiment on first-day IPO returns. The results show that private information and institutional investor sentiment are positively correlated with initial returns. The analysis of the different institutional sectors shows that some securities companies may profit from IPOs by using private information. It was also found that qualified foreign institutional investors (QFII) may be at an informational disadvantage on the Chinese stock market.
Journal: Emerging Markets Finance and Trade
Pages: 1722-1736
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1484355
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1484355
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Template-Type: ReDIF-Article 1.0
Author-Name: Goknur Buyukkara
Author-X-Name-First: Goknur
Author-X-Name-Last: Buyukkara
Author-Name: Mehmet Baha Karan
Author-X-Name-First: Mehmet
Author-X-Name-Last: Baha Karan
Author-Name: Huseyin Temiz
Author-X-Name-First: Huseyin
Author-X-Name-Last: Temiz
Author-Name: Yilmaz Yildiz
Author-X-Name-First: Yilmaz
Author-X-Name-Last: Yildiz
Title: Exchange Rate Risk and Corporate Hedging: Evidence from Turkey
Abstract: 
 The aim of this study is to investigate the effect of exchange rate risk on corporate hedging in Turkey. Our panel logit analysis for the period 2009–2015 favors the financial distress hypothesis of hedging rather than the agency cost or investment opportunities hypotheses. The US dollar exchange rate affects the likelihood of currency risk hedging more than the conventional firm-specific determinants of corporate hedging especially after the Fed tapering period. Our findings reveal that, as the dollar exchange rate rises, firms increase their hedging activity since they carry considerable amount of debt in dollars, particularly aftermath of the global financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 1737-1753
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1490262
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1490262
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Template-Type: ReDIF-Article 1.0
Author-Name: Helian Xu
Author-X-Name-First: Helian
Author-X-Name-Last: Xu
Author-Name: Moga Tano Jilenga
Author-X-Name-First: Moga Tano
Author-X-Name-Last: Jilenga
Author-Name: Yuping Deng
Author-X-Name-First: Yuping
Author-X-Name-Last: Deng
Title: Institutional Quality, Resource Endowment, and Economic Growth: Evidence from Cross-Country Data
Abstract: 
 We empirically examine the moderating role of institutional quality on resource curse effects. The estimated results provide significant evidence for the presence of spatial autocorrelation in economic growth. We also find that institutional quality affects both local and neighboring economies, with the relationship following a U-shaped pattern, and these nonlinear influences can be attributed to resource allocation effects for the former and demonstration effects for the latter. Additionally, resource endowment moderates the relationship between institutional quality and economic performance, with the modified relationship following an inverted U-shaped pattern; this influence stems from investment expansion effects and passivation effects.
Journal: Emerging Markets Finance and Trade
Pages: 1754-1775
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1496418
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496418
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Template-Type: ReDIF-Article 1.0
Author-Name: Moau Yong Toh
Author-X-Name-First: Moau Yong
Author-X-Name-Last: Toh
Author-Name: Christopher Gan
Author-X-Name-First: Christopher
Author-X-Name-Last: Gan
Author-Name: Zhaohua Li
Author-X-Name-First: Zhaohua
Author-X-Name-Last: Li
Title: Revisiting the Impact of Stock Market Liquidity on Bank Liquidity Creation: Evidence from Malaysia
Abstract: 
 This article examines the impact of stock market liquidity on bank liquidity creation in Malaysia. Our results indicate that a stock market enhances the liquidity creation of banks both on and off the banks’ balance sheets when the market liquidity increases. Further analysis shows that the positive impact of stock market liquidity is evident on the liquidity creation of publicly listed banks as the banks’ cost of equity finance becomes cheaper. Our results are robust to the influence of the 2008 financial crisis and different estimation methods. Our results refute the traditional view that increased stock market liquidity “steals” banks’ business and crowds out bank liquidity creation.
Journal: Emerging Markets Finance and Trade
Pages: 1776-1802
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1496420
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496420
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Template-Type: ReDIF-Article 1.0
Author-Name: Abubakr Saeed
Author-X-Name-First: Abubakr
Author-X-Name-Last: Saeed
Author-Name: Muhammad Sameer
Author-X-Name-First: Muhammad
Author-X-Name-Last: Sameer
Author-Name: Muhammad Mustafa Raziq
Author-X-Name-First: Muhammad Mustafa
Author-X-Name-Last: Raziq
Author-Name: Aneel Salman
Author-X-Name-First: Aneel
Author-X-Name-Last: Salman
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: Board Gender Diversity and Organizational Determinants: Empirical Evidence from a Major Developing Country
Abstract: 
 This article seeks to identify and analyze the organizational determinants of women presence on Indian corporate boards. Using a sample set of 294 Indian firms between years 2004–2014, Tobit regression analysis indicates that firm size, family ownership and affiliation with the high-tech sector exhibit positive association with the number of female directors on corporate boards. Further, we do not find any significant impact of state-ownership on the number of women on those boards. Notably, the effects of the organizational variables are more pronounced for the proportion of female non-executive directors, as compared to female executive directors. We conclude that understanding the organizational characteristics in conjunction with business environment can provide useful insights into state of board gender diversity, particularly in developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 1803-1820
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1496421
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496421
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Template-Type: ReDIF-Article 1.0
Author-Name: Kuei-Yuan Wang
Author-X-Name-First: Kuei-Yuan
Author-X-Name-Last: Wang
Author-Name: Yu-Sin Huang
Author-X-Name-First: Yu-Sin
Author-X-Name-Last: Huang
Title: Effects of Transparency on Herding Behavior: Evidence from the Taiwanese Stock Market
Abstract: 
 This study combines the concepts of information asymmetry from classical finance theory and herding behavior from modern behavioral finance theory to investigate whether herding behavior exists in the Taiwan stock market. Scores from the Information Disclosure and Transparency Ranking System (IDTRs) are incorporated into the nonlinear model proposed by Chang, Cheng, and Khorana (2000). The empirical results reveal that herding behavior is prevalent in the Taiwan stock market and the implementation of the IDTRs has effectively discouraged such behavior. In addition, the empirical results of this study reveal that the lower level of transparency, the more prevalent of herding behavior in the Taiwan stock market. The empirical results confirm the government’s efforts to increase the transparency of listed firms in order to reduce information asymmetry and prevent investors from engaging in herding behaviors.
Journal: Emerging Markets Finance and Trade
Pages: 1821-1840
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1504289
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1504289
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Template-Type: ReDIF-Article 1.0
Author-Name: Christos Bouras
Author-X-Name-First: Christos
Author-X-Name-Last: Bouras
Author-Name: Christina Christou
Author-X-Name-First: Christina
Author-X-Name-Last: Christou
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Tahir Suleman
Author-X-Name-First: Tahir
Author-X-Name-Last: Suleman
Title: Geopolitical Risks, Returns, and Volatility in Emerging Stock Markets: Evidence from a Panel GARCH Model
Abstract: 
 In this article, we analyze the role of country-specific and global geopolitical risks (GPRs) on the returns and volatility of 18 emerging market economies over the monthly period of 1998:11 to 2017:06. For our purpose, we use a panel Generalized Autoregressive Conditional Heteroskedasticity (GARCH) approach, which offers substantial efficiency gains in estimating the conditional variance and covariance processes by accounting for interdependencies and heterogeneity across economies, unlikein a time series-based GARCH model. We find that, while country-specific GPRs do not have an impact on stock returns, and the positive effect on equity market volatility is statistically weak. But when we consider a broad measure of global GPR, though there is still no significant effect on returns, the impact on volatility is both economically and statistically stronger than that obtained under the country-specific GPRs, thus highlighting the dominance of global rather than domestic shocks.
Journal: Emerging Markets Finance and Trade
Pages: 1841-1856
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1507906
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1507906
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Template-Type: ReDIF-Article 1.0
Author-Name: Ehab Yamani
Author-X-Name-First: Ehab
Author-X-Name-Last: Yamani
Title: Is It Liquidity or Quality that Matters More in Foreign Exchange Markets?
Abstract: 
 This article examines whether liquidity or credit quality (probability of default) “contributes” more to the explanation of currency excess returns, using two baskets of bilateral exchange rates—developed and emerging countries. My central finding is that US investors generally care only about liquidity when they invest in developed market currencies which are more liquid than emerging market currencies. During heightened market uncertainty, however, investors in developed market currencies also care about credit quality because only developed countries provide lower credit risk premia (i.e., hedge) during times of tension when currency traders generally tend to rebalance their portfolios toward currencies with lower probability of default. Conversely, US investors in emerging market currencies demand a credit risk premium since they are concerned about credit quality of these countries.
Journal: Emerging Markets Finance and Trade
Pages: 1857-1879
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1508441
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1508441
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Handle: RePEc:mes:emfitr:v:55:y:2020:i:8:p:1857-1879




Template-Type: ReDIF-Article 1.0
Author-Name: Adolfo Cristóbal Campoamor
Author-X-Name-First: Adolfo
Author-X-Name-Last: Cristóbal Campoamor
Author-Name: Manuel Alejandro Cardenete Flores
Author-X-Name-First: Manuel Alejandro
Author-X-Name-Last: Cardenete Flores
Author-Name: Pedro Caldentey Del Pozo
Author-X-Name-First: Pedro
Author-X-Name-Last: Caldentey Del Pozo
Author-Name: Olexandr Nekhay
Author-X-Name-First: Olexandr
Author-X-Name-Last: Nekhay
Title: Intra-Regional vs. Extra-Regional Trade Liberalization in Central America
Abstract: 
 Although the Central American countries trade very extensively with the USA, the remarkable growth of their intra-regional exports is prone to create more internal added value for the region. Taking this background into account, we use and compare a standard, perfectly competitive and an imperfectly competitive GTAP CGE model based on the GTAP 9 database, to assess different scenarios. Our simulations evaluate the elimination of all existing import taxes and export subsidies in 2011, both at the intra-regional level and vis-à-vis the USA. The results emphasize the preference by most of the Central American countries for the completion of the Customs Union at the expense of a deepening of the DR-CAFTA agreements.
Journal: Emerging Markets Finance and Trade
Pages: 1880-1892
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1521802
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1521802
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Handle: RePEc:mes:emfitr:v:55:y:2020:i:8:p:1880-1892




Template-Type: ReDIF-Article 1.0
Author-Name: Ageliki Anagnostou
Author-X-Name-First: Ageliki
Author-X-Name-Last: Anagnostou
Author-Name: Paweł Gajewski
Author-X-Name-First: Paweł
Author-X-Name-Last: Gajewski
Title: Heterogeneous Impact of Monetary Policy on Regional Economic Activity: Empirical Evidence for Poland
Abstract: 
 This article investigates the regional impact of monetary policy shocks in Poland. Regional responses to monetary policy shocks are estimated using Bayesian vector autoregressive approach, which allows us to model the entire panel of Polish regions through the imposition of a shrinkage prior. We then investigate factors underlying the asymmetric regional responses. We show that the regional differentiation in output response is stronger than those of unemployment or inflation. The asymmetry seems to be related to the regional industrial structure and demographic features.
Journal: Emerging Markets Finance and Trade
Pages: 1893-1906
Issue: 8
Volume: 55
Year: 2020
Month: 7
X-DOI: 10.1080/1540496X.2018.1531751
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1531751
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Template-Type: ReDIF-Article 1.0
Author-Name: Yezhou Sha
Author-X-Name-First: Yezhou
Author-X-Name-Last: Sha
Author-Name: Susan Sunila Sharma
Author-X-Name-First: Susan Sunila
Author-X-Name-Last: Sharma
Title: Research on Pandemics Special Issue of the Journal Emerging Markets Finance and Trade
Journal: Emerging Markets Finance and Trade
Pages: 2133-2137
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1795467
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1795467
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Template-Type: ReDIF-Article 1.0
Author-Name: Dinh Hoang Bach Phan
Author-X-Name-First: Dinh Hoang Bach
Author-X-Name-Last: Phan
Author-Name: Paresh Kumar Narayan
Author-X-Name-First: Paresh Kumar
Author-X-Name-Last: Narayan
Title: Country Responses and the Reaction of the Stock Market to COVID-19—a Preliminary Exposition
Abstract: 
 As the coronavirus pandemic (COVID-19) has amplified so has country responses to it. With COVID-19 taking its toll on humans, as reflected in the number of people infected by, and deaths from, COVID-19, countries responded by locking down economic activity and peoples movement, imposing travel bans, and implementing stimulus packages to cushion the unprecedented slowdown in economic activity and loss of jobs. This article provides a commentary on how the most active financial indicator – namely, the stock price – reacted in real-time to different stages in COVID-19’s evolution. We argue that, as with any unexpected news, markets over-react and as more information becomes available and people understand the ramifications more broadly the market corrects itself. This is our hypothesis which needs robust empirical verification.
Journal: Emerging Markets Finance and Trade
Pages: 2138-2150
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1784719
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1784719
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2138-2150




Template-Type: ReDIF-Article 1.0
Author-Name: Omair Haroon
Author-X-Name-First: Omair
Author-X-Name-Last: Haroon
Author-Name: Syed Aun R. Rizvi
Author-X-Name-First: Syed Aun R.
Author-X-Name-Last: Rizvi
Title: Flatten the Curve and Stock Market Liquidity – An Inquiry into Emerging Economies
Abstract: 
 In this study, we focus on two dimensions of COVID-19 pandemic and their impact on liquidity in emerging equity markets, the real human costs and the government response. Using a sample of 23 emerging markets across three regions, our findings suggest that decreasing (increasing) trend in the number of confirmed coronavirus cases is associated with improving (deteriorating) liquidity in financial markets. We also find that policy interventions in terms of restrictions on movement and businesses are associated with improved liquidity. Results suggest that flattening curve of coronavirus infections helps reduce uncertainty among investors.
Journal: Emerging Markets Finance and Trade
Pages: 2151-2161
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1784716
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1784716
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Template-Type: ReDIF-Article 1.0
Author-Name: Alok Kumar Mishra
Author-X-Name-First: Alok Kumar
Author-X-Name-Last: Mishra
Author-Name: Badri Narayan Rath
Author-X-Name-First: Badri Narayan
Author-X-Name-Last: Rath
Author-Name: Aruna Kumar Dash
Author-X-Name-First: Aruna Kumar
Author-X-Name-Last: Dash
Title: Does the Indian Financial Market Nosedive because of the COVID-19 Outbreak, in Comparison to after Demonetisation and the GST?
Abstract: 
 We investigate the impact of COVID-19 on the Indian financial market and compare it with the outcomes of two recent structural changes of the Indian economy: demonetization and implementation of the Goods and Services Tax (GST). Using daily stock return, net foreign institutional investment, and exchange rate data from January 3, 2003 to April 20, 2020, we find negative stock returns for all the indices during the COVID-19 outbreak, unlike during the post-demonetization and GST phases. Markov switching vector autoregression shows the impact of COVID-19 on stock returns is severe in comparison to that of demonetization and the GST.
Journal: Emerging Markets Finance and Trade
Pages: 2162-2180
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1785425
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1785425
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2162-2180




Template-Type: ReDIF-Article 1.0
Author-Name: Xin Gu
Author-X-Name-First: Xin
Author-X-Name-Last: Gu
Author-Name: Shan Ying
Author-X-Name-First: Shan
Author-X-Name-Last: Ying
Author-Name: Weiqiang Zhang
Author-X-Name-First: Weiqiang
Author-X-Name-Last: Zhang
Author-Name: Yewei Tao
Author-X-Name-First: Yewei
Author-X-Name-Last: Tao
Title: How Do Firms Respond to COVID-19? First Evidence from Suzhou, China
Abstract: 
 In this article, daily electricity usage data for 34,040 enterprises in Suzhou (China) were examined for economic activity associated with the response to COVID-19. Employing a difference-in-differences estimation model, we find that the manufacturing industry incurred the greatest negative effect while industries such as construction, information transfer, computer services and software, and health care and social work were positively impacted by COVID-19. Private firms suffered more than state-owned enterprises and foreign-owned firms, and smaller firms experienced an additional 30% decline compared to large-sized firms.
Journal: Emerging Markets Finance and Trade
Pages: 2181-2197
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1789455
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1789455
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2181-2197




Template-Type: ReDIF-Article 1.0
Author-Name: Pinglin He
Author-X-Name-First: Pinglin
Author-X-Name-Last: He
Author-Name: Yulong Sun
Author-X-Name-First: Yulong
Author-X-Name-Last: Sun
Author-Name: Ying Zhang
Author-X-Name-First: Ying
Author-X-Name-Last: Zhang
Author-Name: Tao Li
Author-X-Name-First: Tao
Author-X-Name-Last: Li
Title: COVID–19’s Impact on Stock Prices Across Different Sectors—An Event Study Based on the Chinese Stock Market
Abstract: 
 In this article, we use an event study approach to empirically study the market performance and response trends of Chinese industries to the COVID-19 pandemic. The study found that transportation, mining, electricity & heating, and environment industries have been adversely impacted by the pandemic. However, manufacturing, information technology, education and health-care industries have been resilient to the pandemic.
Journal: Emerging Markets Finance and Trade
Pages: 2198-2212
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1785865
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1785865
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2198-2212




Template-Type: ReDIF-Article 1.0
Author-Name: Huayu Shen
Author-X-Name-First: Huayu
Author-X-Name-Last: Shen
Author-Name: Mengyao Fu
Author-X-Name-First: Mengyao
Author-X-Name-Last: Fu
Author-Name: Hongyu Pan
Author-X-Name-First: Hongyu
Author-X-Name-Last: Pan
Author-Name: Zhongfu Yu
Author-X-Name-First: Zhongfu
Author-X-Name-Last: Yu
Author-Name: Yongquan Chen
Author-X-Name-First: Yongquan
Author-X-Name-Last: Chen
Title: The Impact of the COVID-19 Pandemic on Firm Performance
Abstract: 
 Using the financial data of listed Chinese companies, we study the impact of COVID-19 on corporate performance. We show that COVID-19 has a negative impact on firm performance. The negative impact of COVID-19 on firm performance is more pronounced when a firm’s investment scale or sales revenue is smaller. We show, in an additional analysis, that the negative impact of COVID-19 on firm performance is more pronounced in serious-impact areas and industries. These findings are among the first empirical evidence of the association between pandemic and firm performance.
Journal: Emerging Markets Finance and Trade
Pages: 2213-2230
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1785863
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1785863
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Template-Type: ReDIF-Article 1.0
Author-Name: Hao Xiong
Author-X-Name-First: Hao
Author-X-Name-Last: Xiong
Author-Name: Zuofeng Wu
Author-X-Name-First: Zuofeng
Author-X-Name-Last: Wu
Author-Name: Fei Hou
Author-X-Name-First: Fei
Author-X-Name-Last: Hou
Author-Name: Jun Zhang
Author-X-Name-First: Jun
Author-X-Name-Last: Zhang
Title: Which Firm-specific Characteristics Affect the Market Reaction of Chinese Listed Companies to the COVID-19 Pandemic?
Abstract: 
 This paper investigates market reaction to the novel corona virus (COVID-19) pandemic. Using a sample of Chinese listed firms, we find that market reaction to the COVID-19 outbreak is more intense in firms within the industries that are vulnerable to the virus, and those with high institutional investors. Furthermore, firms with larger scale, better profitability and growth opportunity, higher combined leverage, and less fixed assets experience less adverse impact of the COVID-19 outbreak than other firms.
Journal: Emerging Markets Finance and Trade
Pages: 2231-2242
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1787151
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1787151
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2231-2242




Template-Type: ReDIF-Article 1.0
Author-Name: Xiuhong Qin
Author-X-Name-First: Xiuhong
Author-X-Name-Last: Qin
Author-Name: Guoliang Huang
Author-X-Name-First: Guoliang
Author-X-Name-Last: Huang
Author-Name: Huayu Shen
Author-X-Name-First: Huayu
Author-X-Name-Last: Shen
Author-Name: Mengyao Fu
Author-X-Name-First: Mengyao
Author-X-Name-Last: Fu
Title: COVID-19 Pandemic and Firm-level Cash Holding—Moderating Effect of Goodwill and Goodwill Impairment
Abstract: 
 The COVID-19 outbreak seriously affected all economies, especially the operations of listed companies, around the world. This article studies the impact of COVID-19 on firm-level cash holdings using the difference-in-differences method. It finds that COVID-19 has a significant positive impact on cash holdings in serious-impact industries. Goodwill and goodwill impairment can weaken this positive impact, which may be related to higher business risks in these firms. Therefore, managers should raise firms’ cash holding level during the pandemic to protect firms against contingencies. Managers should also be aware of financing constraints due to risks.
Journal: Emerging Markets Finance and Trade
Pages: 2243-2258
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1785864
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1785864
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Template-Type: ReDIF-Article 1.0
Author-Name: Ding Liu
Author-X-Name-First: Ding
Author-X-Name-Last: Liu
Author-Name: Weihong Sun
Author-X-Name-First: Weihong
Author-X-Name-Last: Sun
Author-Name: Xuan Zhang
Author-X-Name-First: Xuan
Author-X-Name-Last: Zhang
Title: Is the Chinese Economy Well Positioned to Fight the COVID-19 Pandemic? the Financial Cycle Perspective
Abstract: 
 This paper conducts a time-frequency analysis of the macro-financial variables in China to assess its resilience in fighting the coronavirus pandemic (COVID-19). We find that the Chinese business and financial cycles over the short, medium, and long terms all are in, or close to, the contraction phase before the COVID-19 outbreak. Meanwhile, the Chinese economy has decoupled from the global financial cycle since 2015. These results suggest that China may be better positioned than other emerging economies to win the war against the pandemic. However, extraordinary macroeconomic policies are still needed to mitigate the pandemic-induced economic meltdown.
Journal: Emerging Markets Finance and Trade
Pages: 2259-2276
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1787152
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1787152
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2259-2276




Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Njindan Iyke
Author-X-Name-First: Bernard
Author-X-Name-Last: Njindan Iyke
Title: The Disease Outbreak Channel of Exchange Rate Return Predictability: Evidence from COVID-19
Abstract: 
 We provide novel evidence that disease outbreaks contain valuable information that can be used to enhance exchange rate return and volatility predictions. Our analysis exploits the novel coronavirus (COVID-19) outbreak as a good experimental setup to test our intuition. Data show that the COVID-19 outbreak has been rapid and deadly. Using the total number of infections per million, we demonstrate that COVID-19 has better predictive power over volatility than over returns for a one-day ahead forecast horizon. Conversely, COVID-19 tends to shape returns more than volatility over a five-day ahead forecast horizon. Our findings remain intact over the two forecast horizons using the total number of deaths per million as an alternative COVID-19 measure. This evidence supports a new channel of exchange rate return predictability, namely the disease outbreak channel.
Journal: Emerging Markets Finance and Trade
Pages: 2277-2297
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1784718
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1784718
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2277-2297




Template-Type: ReDIF-Article 1.0
Author-Name: Conghui Chen
Author-X-Name-First: Conghui
Author-X-Name-Last: Chen
Author-Name: Lanlan Liu
Author-X-Name-First: Lanlan
Author-X-Name-Last: Liu
Author-Name: Ningru Zhao
Author-X-Name-First: Ningru
Author-X-Name-Last: Zhao
Title: Fear Sentiment, Uncertainty, and Bitcoin Price Dynamics: The Case of COVID-19
Abstract: 
 This paper studies the impact of fear sentiment caused by the coronavirus pandemic on Bitcoin price dynamics. We construct a new proxy for coronavirus fear sentiment using hourly Google search queries on coronavirus-related words. The results show that market volatility has been exacerbated by fear sentiment as the result of an increase in search interest in coronavirus. Moreover, we find that negative Bitcoin returns and high trading volume can be explained by fear sentiment regarding the coronavirus. Our results also show that Bitcoin fails to act as a safe haven during the pandemic.
Journal: Emerging Markets Finance and Trade
Pages: 2298-2309
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1787150
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1787150
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2298-2309




Template-Type: ReDIF-Article 1.0
Author-Name: Afees A. Salisu
Author-X-Name-First: Afees A.
Author-X-Name-Last: Salisu
Author-Name: Lateef O. Akanni
Author-X-Name-First: Lateef O.
Author-X-Name-Last: Akanni
Title: Constructing a Global Fear Index for the COVID-19 Pandemic
Abstract: 
 This paper offers two main innovations. First, we construct a global fear index (GFI) for the COVID-19 pandemic to support economic, financial, and policy analyses in this area. Second, we demonstrate the application of the index to stock return predictability using OECD data. The panel data predictability results reveal the significance of the index as a good predictor of stock returns during the pandemic. Also, we find that accounting for “asymmetry” effect and macro (common) factors improves the forecast performance of the GFI-based predictive model for stock returns. With regular updates and improvements of the index, several empirical analyses can be extended to other macroeconomic fundamentals in future research.
Journal: Emerging Markets Finance and Trade
Pages: 2310-2331
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1785424
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1785424
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2310-2331




Template-Type: ReDIF-Article 1.0
Author-Name: Pinglin He
Author-X-Name-First: Pinglin
Author-X-Name-Last: He
Author-Name: Hanlu Niu
Author-X-Name-First: Hanlu
Author-X-Name-Last: Niu
Author-Name: Zhe Sun
Author-X-Name-First: Zhe
Author-X-Name-Last: Sun
Author-Name: Tao Li
Author-X-Name-First: Tao
Author-X-Name-Last: Li
Title: Accounting Index of COVID-19 Impact on Chinese Industries: A Case Study Using Big Data Portrait Analysis
Abstract: 
 The novel coronavirus (COVID-19) outbreak has become a global pandemic and has greatly impacted the world economy. This article adopts the financial data of Listed companies in China and uses the synthetic index compilation method to compile an accounting index that captures the period before and after the COVID-19 outbreak. This index is based on big data portrait analysis and measures the impact of the COVID-19 on various Chinese industries. The study found that except for the basic industry, which was less affected by the epidemic, the rest of the industries were significantly affected by the epidemic. Besides, the costs of various industries have increased by varying degrees. The aviation, tourism and other service industries have been greatly impacted. New infrastructure, Chinese patent medicine and Internet industries have achieved great development.
Journal: Emerging Markets Finance and Trade
Pages: 2332-2349
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1785866
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1785866
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2332-2349




Template-Type: ReDIF-Article 1.0
Author-Name: Yating Wang
Author-X-Name-First: Yating
Author-X-Name-Last: Wang
Author-Name: Donghao Zhang
Author-X-Name-First: Donghao
Author-X-Name-Last: Zhang
Author-Name: Xiaoquan Wang
Author-X-Name-First: Xiaoquan
Author-X-Name-Last: Wang
Author-Name: Qiuyao Fu
Author-X-Name-First: Qiuyao
Author-X-Name-Last: Fu
Title: How Does COVID-19 Affect China’s Insurance Market?
Abstract: 
 The insurance market has been greatly impacted by the outbreak of the COVID-19 pandemic. We employ monthly provincial panel data and fixed-effects models to study how COVID-19 has impacted China’s insurance market. The study finds that the commercial insurance premium income, the monthly year-on-year growth rate of premium, insurance density, and insurance depth have all decreased due to COVID-19. The negative impacts on property and personal insurances are both statistically significant. Raising the level of social security and digital insurance can alleviate the adverse impact of the pandemic on the insurance market.
Journal: Emerging Markets Finance and Trade
Pages: 2350-2362
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1791074
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1791074
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2350-2362




Template-Type: ReDIF-Article 1.0
Author-Name: Pengpeng Yue
Author-X-Name-First: Pengpeng
Author-X-Name-Last: Yue
Author-Name: Aslihan Gizem Korkmaz
Author-X-Name-First: Aslihan
Author-X-Name-Last: Gizem Korkmaz
Author-Name: Haigang Zhou
Author-X-Name-First: Haigang
Author-X-Name-Last: Zhou
Title: Household Financial Decision Making Amidst the COVID-19 Pandemic
Abstract: 
 This paper investigates the impact of the COVID-19 pandemic on household investment decisions using a novel survey conducted by the Survey and Research Center for China Household Finance. We use linear probability and probit models to analyze the effects of COVID-19 at the household level. Our results show that households who know someone infected with COVID-19 lose confidence in the economy. They are more likely to change their risk behavior and become risk-averse. Further, COVID-19 increases the probability that a household will change its investment portfolio. More specifically, it causes a 9.15% decrease in the total investment amount.
Journal: Emerging Markets Finance and Trade
Pages: 2363-2377
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1784717
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1784717
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:10:p:2363-2377




Template-Type: ReDIF-Article 1.0
Author-Name: Taixing Liu
Author-X-Name-First: Taixing
Author-X-Name-Last: Liu
Author-Name: Beixiao Pan
Author-X-Name-First: Beixiao
Author-X-Name-Last: Pan
Author-Name: Zhichao Yin
Author-X-Name-First: Zhichao
Author-X-Name-Last: Yin
Title: Pandemic, Mobile Payment, and Household Consumption: Micro-Evidence from China
Abstract: 
 The novel coronavirus disease (COVID-19) outbreak has significantly affected many lives, as indicated by widespread lockdowns and restrictions. This study investigates the impact of COVID-19 on Chinese household consumption. It employs the China Household Finance Survey (CHFS) data and finds that there was a significant decline in household consumption during the outbreak period. Further heterogeneity analysis shows that the pandemic suppresses consumption in urban households; rural households are, however, less affected. Moreover, mobile payment promotes urban household consumption during the pandemic, while rural households remain unaffected.
Journal: Emerging Markets Finance and Trade
Pages: 2378-2389
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1788539
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1788539
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhen Yu
Author-X-Name-First: Zhen
Author-X-Name-Last: Yu
Author-Name: Yao Xiao
Author-X-Name-First: Yao
Author-X-Name-Last: Xiao
Author-Name: Yuankun Li
Author-X-Name-First: Yuankun
Author-X-Name-Last: Li
Title: The Response of the Labor Force Participation Rate to an Epidemic: Evidence from a Cross-Country Analysis
Abstract: 
 Coupled with data on the occurrence of historical epidemics, this study examines the impact of an epidemic on the labor force participation rate of the affected country. We find robust evidence that the outbreak of an epidemic alters human behavior and negatively affects the labor force participation rate. The negative impact could be attributed to cultural attitudes toward uncertainty avoidance. A country with a higher uncertainty avoidance index will suffer from a more significant decline in the labor force participation rate. The negative impact is more pronounced among males and younger workers in low- and middle-income countries.
Journal: Emerging Markets Finance and Trade
Pages: 2390-2407
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1787149
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1787149
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Template-Type: ReDIF-Article 1.0
Author-Name: C. T. Vidya
Author-X-Name-First: C. T.
Author-X-Name-Last: Vidya
Author-Name: K. P. Prabheesh
Author-X-Name-First: K. P.
Author-X-Name-Last: Prabheesh
Title: Implications of COVID-19 Pandemic on the Global Trade Networks
Abstract: 
 This article measures the trade interconnectedness among countries before and after the COVID-19 outbreak, and forecasts the future direction of trade. Using Trade Network Analysis and Artificial Neural Networks, our findings show that: (1) There is a drastic reduction in trade interconnectedness, connectivity, and density among countries after the COVID-19 outbreak. (2) There is a visible change in the structure of trade-network (3) China’s ‘center’ position in the trade network is not affected by the pandemic. (4) There will be a drastic decline in trade of most of the economies until December 2020.
Journal: Emerging Markets Finance and Trade
Pages: 2408-2421
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1785426
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1785426
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Template-Type: ReDIF-Article 1.0
Author-Name: Wen Ming
Author-X-Name-First: Wen
Author-X-Name-Last: Ming
Author-Name: Zhengqing Zhou
Author-X-Name-First: Zhengqing
Author-X-Name-Last: Zhou
Author-Name: Hongshan Ai
Author-X-Name-First: Hongshan
Author-X-Name-Last: Ai
Author-Name: Huimin Bi
Author-X-Name-First: Huimin
Author-X-Name-Last: Bi
Author-Name: Yuan Zhong
Author-X-Name-First: Yuan
Author-X-Name-Last: Zhong
Title: COVID-19 and Air Quality: Evidence from China
Abstract: 
 To test the impact of the COVID-19 pandemic on air quality, this article matches the city-level real-time air quality monitoring data with the big data on population migration provided by Baidu. The article uses urban samples from the same data sample of the Chinese lunar calendar in 2019 to construct the counterfactual status of the COVID-19 pandemic. Then, the difference-in-differences (DID) model is employed to estimate the impact of the COVID-19 pandemic on air quality. It is found that the COVID-19 pandemic caused PM2.5 and AQI to decrease by about 7 μg/m3 and 5-points, respectively.
Journal: Emerging Markets Finance and Trade
Pages: 2422-2442
Issue: 10
Volume: 56
Year: 2020
Month: 08
X-DOI: 10.1080/1540496X.2020.1790353
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1790353
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhichong Zhao
Author-X-Name-First: Zhichong
Author-X-Name-Last: Zhao
Author-Name: Sisira Colombage
Author-X-Name-First: Sisira
Author-X-Name-Last: Colombage
Author-Name: Guotai Chi
Author-X-Name-First: Guotai
Author-X-Name-Last: Chi
Title: Key Variables and Characteristics of Loan Loss Given Default: Empirical Evidence from 28 Provinces in China
Abstract: 
 This article empirically investigates the impact of key variables and characteristics on loan loss given default (LGD) of small farmers using data from 28 provinces in China. The default feature of loans is not only a financial issue and a risk management issue but also an exploration of the loan customers’ default rule. In this study, the key variables were selected using an F-test to identify which ones are critical in credit risk management. Then, we use a t-test to obtain the significant characteristics with an impact on LGD. We found that the 30-35-year-old age group, those living in houses with shared ownership, households with two to four workers, and those whose ratio of annual net income to GDP per capita is between 10 and 20 tend to have higher LGD. These results inform bank lenders and policymakers of the most significant factors that influence loan loss default.
Journal: Emerging Markets Finance and Trade
Pages: 2443-2460
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1668773
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668773
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Template-Type: ReDIF-Article 1.0
Author-Name: Hanjie Wang
Author-X-Name-First: Hanjie
Author-X-Name-Last: Wang
Author-Name: Tao Wen
Author-X-Name-First: Tao
Author-X-Name-Last: Wen
Author-Name: Jiali Han
Author-X-Name-First: Jiali
Author-X-Name-Last: Han
Title: Can Government Financial Inflows Effectively Reduce Poverty in Poverty-Stricken Areas? Evidence from China
Abstract: 
 Financial assistance has been found to be an important way to help lift people out of poverty, both theoretically and empirically. However, its effective functioning depends on certain basic conditions. Currently, contiguous poverty-stricken areas, the main areas where impoverished communities live in China, are the main battlefield for poverty alleviation. The Chinese government attaches great importance to the effective functioning of rural finance as a tool to combat poverty in these areas and has invested sizable financial resources. However, the actual impact on rural households of financial infusions has not been analyzed. This article sheds empirical light on the issue using data from a survey of rural households in such areas. The results show that the formal financial transfers from the government and informal finance do not effectively reduce poverty there. Rather, they increase income inequality among households. Nonetheless, cultivation of the human capital, material resources, and social capital of rural households plays a positive role in reducing poverty. Thus, our conclusions may be helpful for adjusting rural financial policies in these areas so as to reduce poverty among those who live there.
Journal: Emerging Markets Finance and Trade
Pages: 2461-2473
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1618264
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1618264
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Template-Type: ReDIF-Article 1.0
Author-Name: Gaofeng Zou
Author-X-Name-First: Gaofeng
Author-X-Name-Last: Zou
Author-Name: Han Li
Author-X-Name-First: Han
Author-X-Name-Last: Li
Author-Name: J. Ginger Meng
Author-X-Name-First: J. Ginger
Author-X-Name-Last: Meng
Author-Name: Chunying Wu
Author-X-Name-First: Chunying
Author-X-Name-Last: Wu
Title: Asymmetric Effect of Media Tone on IPO Underpricing and Volatility
Abstract: 
 Because of asymmetric information between issuing companies and investors, media coverage plays an important role in conveying information to investors during an initial public offering (IPO). The stock price is affected by a large amount of information released to the public through media coverage. Using a comprehensive sample of 1,075 IPOs on China’s stock market from 2009 to 2016, this paper conducts a textual analysis to determine the tone of media coverage and examines the relationship between media tone and IPO underpricing as well as post-IPO volatility. The empirical results show that media coverage during an IPO is significantly negatively associated with IPO underpricing, which confirms our hypothesis that the tone of media coverage reduces the degree of information asymmetry between investors and issuers, regardless of whether the tone is positive or negative. Consistent with prospect theory, investors are more sensitive to media coverage with a negative tone.
Journal: Emerging Markets Finance and Trade
Pages: 2474-2490
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1643320
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Template-Type: ReDIF-Article 1.0
Author-Name: Xindong Zhang
Author-X-Name-First: Xindong
Author-X-Name-Last: Zhang
Author-Name: Haiyan Xue
Author-X-Name-First: Haiyan
Author-X-Name-Last: Xue
Author-Name: Yongmin Zhang
Author-X-Name-First: Yongmin
Author-X-Name-Last: Zhang
Author-Name: Shusheng Ding
Author-X-Name-First: Shusheng
Author-X-Name-Last: Ding
Title: Growth Opportunities or Cash Flow Drives Innovative Investment —Evidence with different ownership structure from China
Abstract: 
 Existing theoretical investment literature shows that Tobin’s q is a crucial factor of investment, while empirical studies find that cash flow exhibits a more significant effect on investment compared with Tobin’s q. Using up-to-date empirical data, we distill innovative investment from total investment to investigate this issue using a panel of 335 innovative companies in China. We unveil that innovative investment is more sensitive to growth opportunity (q) than cash flow. Furthermore, we discover that high investor sentiment can facilitate financing activities of privately owned enterprises, which may impel their innovative investments. On the other hand, state-owned enterprises will raise their tangible investments rather than innovative investment during periods of economic expansion. Lastly, we reveal that external financing cost is the channel in the external financing environment that could affect corporate innovative investment.
Journal: Emerging Markets Finance and Trade
Pages: 2491-2508
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1668268
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668268
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Template-Type: ReDIF-Article 1.0
Author-Name: Heng Zhang
Author-X-Name-First: Heng
Author-X-Name-Last: Zhang
Author-Name: Jianchao Luo
Author-X-Name-First: Jianchao
Author-X-Name-Last: Luo
Author-Name: Mingwang Cheng
Author-X-Name-First: Mingwang
Author-X-Name-Last: Cheng
Author-Name: Pei Duan
Author-X-Name-First: Pei
Author-X-Name-Last: Duan
Title: How Does Rural Household Differentiation Affect the Availability of Farmland Management Right Mortgages in China?
Abstract: 
 This study employs the Cov-AHP method to determine the weight of each indicator based on the evaluation indicator system for the differentiation level of rural households and adopts a bivariate probit model to estimate the influence of rural households’ differentiation on the availability of farmland management right mortgage. The survey data used were collected for 4,481 rural households in China (Shaanxi Province, Shandong Province, Henan Province, and Ningxia Province). The results showed that the overall household differentiation level has statistically significant impacts on the availability to farmers of farmland management right mortgages. There are significant differences in the capital levels affecting the nominal demand and supply of farmland management right mortgages. More specifically, some rural households with higher physical capital and financial capital have more significant nominal demand for farmland management right mortgages, while rural households with lower financial capital and higher social capital have a higher possibility of getting farmland management right mortgages. In addition, the rural households’ gender, land approval, loan policy, and location have a statistically significant and positive impact on rural households’ demand for this financing, while the rural households’ gender, education, land transfer, per capita income, social interaction, loan policy, loan experience, and location have a statistically significant and positive impact on the supply of this financing to rural households.
Journal: Emerging Markets Finance and Trade
Pages: 2509-2528
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1658073
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658073
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Template-Type: ReDIF-Article 1.0
Author-Name: Saleh Shahriar
Author-X-Name-First: Saleh
Author-X-Name-Last: Shahriar
Author-Name: Lu Qian
Author-X-Name-First: Lu
Author-X-Name-Last: Qian
Author-Name: Airin Rahman
Author-X-Name-First: Airin
Author-X-Name-Last: Rahman
Author-Name: Mahedi Hasan
Author-X-Name-First: Mahedi
Author-X-Name-Last: Hasan
Author-Name: Sokvibol Kea
Author-X-Name-First: Sokvibol
Author-X-Name-Last: Kea
Author-Name: Nazir Muhammad Abdullahi
Author-X-Name-First: Nazir Muhammad
Author-X-Name-Last: Abdullahi
Title: Youth Skill Development Loans (YSDL) and Good Governance in Bangladesh: A Logit Model Analysis
Abstract: 
 The purpose of this study is to explore the nature and role of the Youth Skill Development Loans (YSDL) in the generation of livelihoods activities for the youth community of Bangladesh under the Women’s Empowerment and Livelihood Development “Nuton Jibon”. The study is significant for a couple of reasons. First, our literature review shows a dearth of research on the youth beneficiaries of the project. Second, there is a ‘youth bulge’ in Bangladesh, a developing economy experiencing the demographic dividend. The default issue in the YSDL is largely ignored. We have, therefore, examined the YSDL utilization status of 105 youths by using the logit model. The results reveal that the size of the loan, due amount of payment and education are significant factors to determine whether the youth would be a loan defaulter or regular payer. In essence, it is vital to enhance the overall capacities and skills of the rural youths.
Journal: Emerging Markets Finance and Trade
Pages: 2529-2542
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1594769
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1594769
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Template-Type: ReDIF-Article 1.0
Author-Name: Guotai Chi
Author-X-Name-First: Guotai
Author-X-Name-Last: Chi
Author-Name: Shanli Yu
Author-X-Name-First: Shanli
Author-X-Name-Last: Yu
Author-Name: Ying Zhou
Author-X-Name-First: Ying
Author-X-Name-Last: Zhou
Title: A Novel Credit Evaluation Model Based on the Maximum Discrimination of Evaluation Results
Abstract: 
 This paper proposes a novel model for establishing a credit evaluation system, including a system of indicators, indicator weights, and credit scores. A credit evaluation system whose evaluation results have significant discrimination is good. Based on this standard, we construct an objective programming model with the maximum discrimination of credit scores as the objective function. The main constraint condition is that the indicator weights sum to 1, and weight is a decision variable. After we delete indicators whose weight is 0, we design a system of indicators, and then obtain credit scores with the maximum discriminatory power. Our empirical study of China’s 3,045 small businesses confirms that this model is both easy to use and reasonable. The empirical results show that, compared to logistic regression and CHAID decision trees, our model has greater accuracy based on F, AUC, and KS tests.
Journal: Emerging Markets Finance and Trade
Pages: 2543-2562
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1643717
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1643717
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Template-Type: ReDIF-Article 1.0
Author-Name: Yue Cao
Author-X-Name-First: Yue
Author-X-Name-Last: Cao
Author-Name: Xinyu Hu
Author-X-Name-First: Xinyu
Author-X-Name-Last: Hu
Author-Name: Yu Lu
Author-X-Name-First: Yu
Author-X-Name-Last: Lu
Author-Name: Jun Su
Author-X-Name-First: Jun
Author-X-Name-Last: Su
Title: Customer Concentration, Tax Collection Intensity, and Corporate Tax Avoidance
Abstract: 
 We investigate the influence of customer concentration on corporate tax avoidance based on non-financial firms listed on Chinese stock exchanges over the period 2009–2014. Our results show that firms with higher customer concentration are more likely to engage in tax avoidance, and this effect is greater at conservative tax avoidance firms. We also find that tax collection intensity can significantly attenuate the positive relationship between customer concentration and tax avoidance, which is more pronounced at conservative tax avoidance firms. The significantly attenuating effects of tax collection intensity exist at firms in highly competitive industries, and firms with low environmental uncertainty. Our results also show that easing financing constraints is one way to reduce customer concentration’s influence on tax avoidance. This evidence indicates that customer concentration is an important cause of tax avoidance, and tax collection intensity is an effective external governance mechanism at firms with large customers.
Journal: Emerging Markets Finance and Trade
Pages: 2563-2593
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1616544
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1616544
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Template-Type: ReDIF-Article 1.0
Author-Name: Weijun Wu
Author-X-Name-First: Weijun
Author-X-Name-Last: Wu
Author-Name: Ling Yuan
Author-X-Name-First: Ling
Author-X-Name-Last: Yuan
Author-Name: Xiaoming Wang
Author-X-Name-First: Xiaoming
Author-X-Name-Last: Wang
Author-Name: Xiaping Cao
Author-X-Name-First: Xiaping
Author-X-Name-Last: Cao
Author-Name: Sili Zhou
Author-X-Name-First: Sili
Author-X-Name-Last: Zhou
Title: Does FDI Drive Economic Growth? Evidence from City Data in China
Abstract: 
 Foreign Direct Investment (FDI) and government spending are two important drivers of economic growth. We use Chinese city level data and document an inverse U shape relation between FDI and GDP growth. FDI’s diminishing growth effect becomes more salient for cities with greater budget deficit or relying heavily on local corporate tax. When foreign firms account for sizable share of local capital formation in the economy, FDI significantly crowds out public spending. We attribute the inverse U shape of FDI and growth to both tax distortion and crowd-out effect.
Journal: Emerging Markets Finance and Trade
Pages: 2594-2607
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1644621
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1644621
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Template-Type: ReDIF-Article 1.0
Author-Name: Hao Ji
Author-X-Name-First: Hao
Author-X-Name-Last: Ji
Author-Name: Hao Wang
Author-X-Name-First: Hao
Author-X-Name-Last: Wang
Author-Name: Jia Xu
Author-X-Name-First: Jia
Author-X-Name-Last: Xu
Author-Name: Brunero Liseo
Author-X-Name-First: Brunero
Author-X-Name-Last: Liseo
Title: Dependence Structure between China’s Stock Market and Other Major Stock Markets before and after the 2008 Financial Crisis
Abstract: 
 To investigate changes in the dependence structure between China’s stock market and other important international stock markets as a result of the 2008 global financial crisis, the ARMA-GARCH skewed-t Vine Copula method is used and an empirical study is undertaken using daily closing prices for seven key international stock markets from 4 January 2002 to 29 December 2017. The results indicate that the CAC and the HSI are the key indices connecting all the other indices in Europe and Asia, respectively. In addition, the financial crisis resulted in significant changes to the dependence structure, and the FTSE has gradually become more important in connecting European stock markets with Asian markets. Moreover, Tree 2 of the Vine Copula shows that the entire high-dimensional dependence structure has been modified by the crisis, and the indices are now more correlated than they were before the crisis.
Journal: Emerging Markets Finance and Trade
Pages: 2608-2624
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1615434
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1615434
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Template-Type: ReDIF-Article 1.0
Author-Name: Cong Sui
Author-X-Name-First: Cong
Author-X-Name-Last: Sui
Author-Name: Peter Lung
Author-X-Name-First: Peter
Author-X-Name-Last: Lung
Author-Name: Mo Yang
Author-X-Name-First: Mo
Author-X-Name-Last: Yang
Title: Predictable Dynamics in the Implied Volatility Surface Based on Weighted Least Squares: Evidence from Soybean Meal Futures Options in China
Abstract: 
 This article examines the dynamics and predictability of the implied volatility surface derived from weighed trading volume. We study the Chinese soybean meal futures options market. By assigning larger weights to options with higher trading volume, we find more precise fittings on the implied volatility surface. Our estimation method outperforms traditional methods in terms of the dynamics and predictability of the implied volatility surface, both in the sample and out of the sample. We also document that soybean futures options exhibit implied volatility smirk that is different from those in the stock index options. In addition, we find that the implied volatility term structure shows an inverted U-shape during the period of high implied volatility.
Journal: Emerging Markets Finance and Trade
Pages: 2625-2638
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1616543
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1616543
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Template-Type: ReDIF-Article 1.0
Author-Name: Tong Qi
Author-X-Name-First: Tong
Author-X-Name-Last: Qi
Author-Name: Jian Li
Author-X-Name-First: Jian
Author-X-Name-Last: Li
Author-Name: Wenjing Xie
Author-X-Name-First: Wenjing
Author-X-Name-Last: Xie
Author-Name: Haoyuan Ding
Author-X-Name-First: Haoyuan
Author-X-Name-Last: Ding
Title: Alumni Networks and Investment Strategy: Evidence from Chinese Mutual Funds
Abstract: 
 While fund managers are connected by interpersonal linkages, the investment strategy of a mutual fund would follow a similar pattern due to interpersonal communications and information exchange. This paper focuses on the connection of fund managers via a shared educational network (university alumni connection) in China. Based on a manually collected dataset with the detailed transaction and manager information, our results were threefold: (1) Mutual fund managers with an alumni connection tend to have similar portfolio allocation; the network effect is heterogeneous for different manager characteristics, fund characteristics, and alumni types. (2) A dynamic learning strategy for fund managers exists where they tend to mimic the past portfolio choices of others within the alumni network. (3) The performance of connected funds is worsened by the degree of the connection.
Journal: Emerging Markets Finance and Trade
Pages: 2639-2655
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1643321
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1643321
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Template-Type: ReDIF-Article 1.0
Author-Name: Ruirui Yin
Author-X-Name-First: Ruirui
Author-X-Name-Last: Yin
Author-Name: Bingxin Zhao
Author-X-Name-First: Bingxin
Author-X-Name-Last: Zhao
Author-Name: Mengjie Zhang
Author-X-Name-First: Mengjie
Author-X-Name-Last: Zhang
Author-Name: Chengwei Wang
Author-X-Name-First: Chengwei
Author-X-Name-Last: Wang
Title: Analyzing the Structure of the Maritime Silk Road Central City Network through the Spatial Distribution of Financial Firms
Abstract: 
 The existing literature on the Maritime Silk Road focuses mainly on its scientific connotations, China’s interconnection with countries along the Road, industrial linkage, investment, and trade, with little attention to the status, influence, and role of the central cities along its path. In an attempt to address this gap in the literature, this paper builds a central city network based on spatial distribution data on financial firms, designs an index system on the network’s structural effect, and calculates the structural effects of the city network. The method and system of the indexes developed in this paper provide quantitative evidence for regional development strategies for the Maritime Silk Road and provide a valid research approach for studying regional associations.
Journal: Emerging Markets Finance and Trade
Pages: 2656-2678
Issue: 11
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1694891
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694891
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhiyong Li
Author-X-Name-First: Zhiyong
Author-X-Name-Last: Li
Author-Name: Ying Tang
Author-X-Name-First: Ying
Author-X-Name-Last: Tang
Author-Name: Jingya Wu
Author-X-Name-First: Jingya
Author-X-Name-Last: Wu
Author-Name: Junfeng Zhang
Author-X-Name-First: Junfeng
Author-X-Name-Last: Zhang
Author-Name: Qi Lv
Author-X-Name-First: Qi
Author-X-Name-Last: Lv
Title: The Interest Costs of Green Bonds: Credit Ratings, Corporate Social Responsibility, and Certification
Abstract: 
 In recent years, green financing has attracted global attention. Many countries and international organizations have proposed frameworks for developing green financing, and an increasing number of companies issue green bonds as financial instruments for funding green projects. Unlike conventional bonds, green bonds have unique features, and their issuance follows a special process. We use data on Chinese green bonds in a linear regression model to empirically explore the impact of credit ratings, corporate social responsibility (CSR), and green certification on yield spreads. The results show that these factors all have a significant impact on interest costs. Issuing green bonds is a signal of CSR, and green bonds with green certificates have lower interest costs than those without them. Finally, we outline some policy implications regarding the governance of green bonds based on our findings.
Journal: Emerging Markets Finance and Trade
Pages: 2679-2692
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2018.1548350
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1548350
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Template-Type: ReDIF-Article 1.0
Author-Name: Yi-Wen Chen
Author-X-Name-First: Yi-Wen
Author-X-Name-Last: Chen
Author-Name: Chu-Bin Lin
Author-X-Name-First: Chu-Bin
Author-X-Name-Last: Lin
Author-Name: Anthony H. Tu
Author-X-Name-First: Anthony H.
Author-X-Name-Last: Tu
Title: Regime-Switching Processes and Mean-Reverting Volatility Models in Value-at-Risk Estimation: Evidence from the Taiwan Stock Index
Abstract: 
 This article develops a model that can accurately forecast the volatility of Taiwan stock returns and efficiently estimate value-at-risk (VaR). Because the volatility in the Taiwan stock market has been shown to die down and shift quickly, we find that the model able to outperform others is one that allows the parameters of the volatility models to switch between regimes and conditional volatility to revert quickly to near-normal levels following extremely volatile periods. Compared with nested models, this model has the best performance in terms of the statistical fit of in-sample data and out-of-sample volatility forecasts and VaR estimates.
Journal: Emerging Markets Finance and Trade
Pages: 2693-2710
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1609442
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1609442
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Template-Type: ReDIF-Article 1.0
Author-Name: Bo Zhu
Author-X-Name-First: Bo
Author-X-Name-Last: Zhu
Author-Name: Huafu Mao
Author-X-Name-First: Huafu
Author-X-Name-Last: Mao
Author-Name: Yuan Huang
Author-X-Name-First: Yuan
Author-X-Name-Last: Huang
Author-Name: Renda Lin
Author-X-Name-First: Renda
Author-X-Name-Last: Lin
Author-Name: Feng Niu
Author-X-Name-First: Feng
Author-X-Name-Last: Niu
Title: Do China’s Non-Financial Firms Affect Systemic Risk?
Abstract: 
 This article investigates the contribution of non-financial firms to systemic risk in the entire financial system and the corresponding firm-specific determinants. Thus, we develop a new measure of systemic risk with a test of our hypothesis that separates systemic risk from systematic risk. We also consider the firm-level determinants of contributions to systemic risk using a fixed-effects model and a logit model. Using data on companies in the CSI 300 index from 2008 to 2016, we find that our extreme value theory (EVT)-copula method is a good fit for testing the joint probability distribution of extreme returns as well as diverse dependence patterns with asymmetry and non-linearity characteristics. The empirical results provide evidence against the marginal expected shortfall (MES) method without a mechanism to test the statistical significance of determination. Several non-financial firms, though not all financial institutions, can generate significant spillover effects on the financial system. Our regression results suggest that, among firms with a significantly positive contribution to systemic risk, smaller firms have greater spillover effects on the financial system in China. Moreover, economy-wide systemic risk information and dynamic identification on systemically important firms deserve more attention in terms of macro-prudential regulation.
Journal: Emerging Markets Finance and Trade
Pages: 2711-2731
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2018.1562893
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562893
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Template-Type: ReDIF-Article 1.0
Author-Name: Yu Shen
Author-X-Name-First: Yu
Author-X-Name-Last: Shen
Author-Name: Kehan Zhu
Author-X-Name-First: Kehan
Author-X-Name-Last: Zhu
Author-Name: Fengyun Wu
Author-X-Name-First: Fengyun
Author-X-Name-Last: Wu
Author-Name: Ping Chen
Author-X-Name-First: Ping
Author-X-Name-Last: Chen
Title: The Stock Investment Performance of Pension Funds in China
Abstract: 
 This article analyzes the investment performance of China’s National Social Security Fund (CNSSF) in the stock market. The results show that the investment performance of entrusted social security funds is better than that of direct investment by China’s National Council for Social Security Fund. The annual risk-adjusted return on entrusted investment is 9.54% higher than that of direct investment. This article further investigates the performance of entrusted investment with respect to each entrusted fund company and finds that only 5 of the 16 entrusted social security funds generate significantly positive risk-adjusted returns, suggesting the existence of a principal-agent problem in entrusted investment. Controlling for factors such as the fund’s asset allocation and the characteristics of the fund family, we find that private information contributes to the investment performance of the CNSSF. Moreover, we find a synergistic effect between private information and the extent of alumni networks among fund managers at a company and a substitution effect between private information and the degree of closeness of those alumni networks on investment performance.
Journal: Emerging Markets Finance and Trade
Pages: 2732-2748
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2018.1558053
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1558053
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiang Zhang
Author-X-Name-First: Xiang
Author-X-Name-Last: Zhang
Author-Name: Lu Liu
Author-X-Name-First: Lu
Author-X-Name-Last: Liu
Title: Heterogeneous Impacts of International Oil Price Shocks on the Stock Market – Evidence from China
Abstract: 
 This article examines the effects of international oil price shocks on the Chinese stock market with explicitly considering the financialization of oil market. Empirical results based on the threshold structural VAR show that the response of stock returns is heterogeneous across regimes and sectors and depends on the source of oil shocks. Generally, oil price shocks have a larger impact on Chinese stocks in the bear regime than in the bull regime, and such nonlinearity is more pronounced for oil supply shocks and aggregate demand shocks. At the sector level, the nonlinear effects of oil price shocks are particularly obvious in the energy, industrials, and consumer discretionary sectors. Furthermore, oil shocks also affect the probability of the stock market switching between bull and bear regimes. The regime switching behavior acts as an important propagator of oil shocks which can explain the differences in risk premiums among quintiles of oil-beta portfolio returns. Although its direct effect on stock returns is limited, oil market’s financialization may trigger regime shifts in several sectors.
Journal: Emerging Markets Finance and Trade
Pages: 2749-2771
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1567263
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1567263
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Template-Type: ReDIF-Article 1.0
Author-Name: Yue Cao
Author-X-Name-First: Yue
Author-X-Name-Last: Cao
Author-Name: Yizhe Dong
Author-X-Name-First: Yizhe
Author-X-Name-Last: Dong
Author-Name: Yu Lu
Author-X-Name-First: Yu
Author-X-Name-Last: Lu
Author-Name: Diandian Ma
Author-X-Name-First: Diandian
Author-X-Name-Last: Ma
Title: Does Institutional Ownership Improve Firm Investment Efficiency?
Abstract: 
 Our study examines the influence of institutional investors on firm investment efficiency based on nonfinancial firms listed on Chinese stock exchanges over the period 2009–2014. Our results show that institutional ownership generally improves firm investment efficiency. However, after considering the independence of institutional ownership, we find that only pressure-resistant institutional ownership increases firm investment efficiency by alleviating both overinvestment and underinvestment. We also find that the pressure-resistant institutional investors’ horizon matters. In particular, pressure-resistant institution investors who have higher shareholdings are more stable—that is, they tend to hold shares longer and thus have a more intensive effect on firm investment efficiency. Our results also show that relaxing external financing constraints, reducing agency costs, and increasing executive incentives significantly improve firm investment efficiency. The results are robust to controlling for endogeneity. Documenting the positive influence that pressure-resistant institutional investors have on firm investment efficiency and the channels through which they improve firm investment efficiency should be of interest to investors, regulators, and academics.
Journal: Emerging Markets Finance and Trade
Pages: 2772-2792
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2018.1486705
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1486705
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Template-Type: ReDIF-Article 1.0
Author-Name: Qingma Dong
Author-X-Name-First: Qingma
Author-X-Name-Last: Dong
Author-Name: Shuyang Wen
Author-X-Name-First: Shuyang
Author-X-Name-Last: Wen
Author-Name: Xiliang Liu
Author-X-Name-First: Xiliang
Author-X-Name-Last: Liu
Title: Credit Allocation, Pollution, and Sustainable Growth: Theory and Evidence from China
Abstract: 
 This article studies how credit decisions made by banks affect environmental pollution and the sustainable growth path. Our model suggests that with credit discrimination, the economy may experience a high output and heavy pollution steady state, but there will be welfare losses. Based on the model, we perform an empirical study using panel data from 30 provinces in China. The study results show that credit preference toward highly polluting sectors has an adverse impact on the environment. Arguably, encouraging sustainable banking may help developing countries like China to address environmental challenges.
Journal: Emerging Markets Finance and Trade
Pages: 2793-2811
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2018.1528869
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1528869
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Template-Type: ReDIF-Article 1.0
Author-Name: Fenghua Wen
Author-X-Name-First: Fenghua
Author-X-Name-Last: Wen
Author-Name: Longhao Xu
Author-X-Name-First: Longhao
Author-X-Name-Last: Xu
Author-Name: Bin Chen
Author-X-Name-First: Bin
Author-X-Name-Last: Chen
Author-Name: Xiaohua Xia
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Xia
Author-Name: Jinyi Li
Author-X-Name-First: Jinyi
Author-X-Name-Last: Li
Title: Heterogeneous Institutional Investors, Short Selling and Stock Price Crash Risk: Evidence from China
Abstract: 
 This study investigates the relation between heterogeneous institutional investors and stock price crash risk, then explores the effect of short selling on the relationship. By using a dataset of 1064 firms from China for the 2007–2015 period, we find that different from the developed countries, in China both grey and independent institutional investors have positive effects on the stock price crash risk. Moreover, we also discover that for firms without short selling ban, positive correlation between grey institutional investors and stock price crash risk is weaker, while the relationship between independent institutional investors and the crash risk is not affected.
Journal: Emerging Markets Finance and Trade
Pages: 2812-2825
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2018.1522588
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1522588
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Template-Type: ReDIF-Article 1.0
Author-Name: Liu Yang
Author-X-Name-First: Liu
Author-X-Name-Last: Yang
Author-Name: Yuhuan Yi
Author-X-Name-First: Yuhuan
Author-X-Name-Last: Yi
Title: Effectiveness of Macroprudential Policies under Maturity Mismatch
Abstract: 
 This paper studies the role of reserve requirements as a macroprudential policy tool in China. In a factor-augmented vector autoregression of China, we find that banking system works as a shock absorber. To explain this “financial attenuator” effect, we extend an otherwise standard New-Keynesian model including (i) a banking sector with financial frictions with households, (ii) a credit in multi-period contracts, (iii) a central bank that conducts monetary policy by adjusting the nominal interest rate in response to the money-growth rate, and (iv) the reserve requirement (RR) as a macroprudential policy instrument. The quantitative analysis of the estimated model shows that the presence of a maturity mismatch makes a bank’s leverage less procyclical, which offsets the effects of financial frictions and makes the bank’s balance sheet function as a shock absorber. Our analysis also suggests that countercyclical RR adjustment can enhance welfare compared to fixed an RR ratio in the presence of a maturity mismatch but faces important implementation challenges. In particular, an RR policy countercyclically responding to bank lending can effectively stabilize the economy but increase financial fragility, as the “credit attenuator” effect stemming from the maturity mismatch will be offset by this policy.
Journal: Emerging Markets Finance and Trade
Pages: 2826-2851
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1627194
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1627194
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Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Title: Performance Persistence in Anomaly Returns: Evidence from Frontier Markets
Abstract: 
 This study aims to explore the performance persistence of frontier market equity anomalies. To this end, I replicate 140 anomalies in the cross-section of returns in a sample of 23 frontier markets. I demonstrate a robust and strong performance persistence in the anomaly returns. The return persistence is driven by two independent components related to past short- and long-term returns. These components reflect short-term momentum and cross-sectional variation in long-term anomaly returns, respectively. Combining the two components forms an efficient anomaly selection strategy.
Journal: Emerging Markets Finance and Trade
Pages: 2852-2873
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1605594
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1605594
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Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Farooq Shabbir
Author-X-Name-First: Muhammad Farooq
Author-X-Name-Last: Shabbir
Author-Name: Ye Xin
Author-X-Name-First: Ye
Author-X-Name-Last: Xin
Author-Name: Sadaf Hafeez
Author-X-Name-First: Sadaf
Author-X-Name-Last: Hafeez
Title: Corporate Governance and Firm Efficiency: An Application of Internet Companies of China
Abstract: 
 This study analyzes the impact of corporate governance on firm efficiency. The recent trend to measure performance from efficiency ratios has received attention due to its realistic approach. However, empirical evidence to prove a significant relationship between corporate governance and firm efficiency is lacking. We study panel data on 2,823 firm-year observations of Chinese internet companies from 2005 to 2017, using data envelopment analysis with variable return to scale technology to measure efficiency. The efficiency scores of companies are then regressed on corporate governance variables to measure the effect on technical efficiency. Furthermore, fuzzy-set qualitative comparative analysis (QCA) analysis used to provide a deep empirical understanding of the phenomenon. This study contributes to the existing body of knowledge in two ways by providing a strategic framework for exploring the governance-efficiency relation by providing empirical evidence. In addition, this study uses multiple methodological approaches to provide useful insights into corporate governance and efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 2874-2890
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1667768
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1667768
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Template-Type: ReDIF-Article 1.0
Author-Name: Hanna Kociemska
Author-X-Name-First: Hanna
Author-X-Name-Last: Kociemska
Title: Public- Private Partnership: Reconciling Mainstream and Islamic Finance in sub-Saharan Africa
Abstract: 
 Can conventional private participation in infrastructure incorporate Islamic finance requirements? Sub-Saharan Africa has substantial infrastructure-funding needs, but it is challenging to attract capital using conventional solutions, given the governing requirements of Islamic finance. In a comparative model setup, I indicate the conditions under which public–private partnerships (PPPs) are a viable organizational form of financing public services. I point out the trade-off conditions under which private and public investors reach their expectations of maximizing profit and providing social benefits simultaneously. Based on the observed socio-economic trends, conventional–Islamic PPPs can enable public services’ development with a strong emphasis on social welfare.
Journal: Emerging Markets Finance and Trade
Pages: 2891-2907
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1695594
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695594
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Template-Type: ReDIF-Article 1.0
Author-Name: Eric M.P. Chiu
Author-X-Name-First: Eric M.P.
Author-X-Name-Last: Chiu
Author-Name: Thomas D. Willett
Author-X-Name-First: Thomas D.
Author-X-Name-Last: Willett
Title: Capital Controls and Currency Crises Revisited: A Political Economy Analysis
Abstract: 
 Recent empirical studies have reached mixed results on the effects of capital controls and currency crises. We argue that this relationship is likely to depend both on whether controls are primarily on capital inflows or outflows and on the stability of the government. Using the disaggregated data on capital controls using the newly developed disaggregated data on capital controls for a sample of 56 countries for a sample of 56 countries over the period 1995–2015, we discover some interesting patterns on capital controls and political stability that there is a vanishing middle in terms of the extent of controls and that the use of controls is positively associated with government stability. We also find strong support for the proposition that controls on outflows are positively associated with the probability of currency crises especially under less stable governments, while controls on capital inflows reduce the risks of currency crises, especially for more stable governments.
Journal: Emerging Markets Finance and Trade
Pages: 2908-2928
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2019.1617130
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1617130
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Template-Type: ReDIF-Article 1.0
Author-Name: Yezhou Sha
Author-X-Name-First: Yezhou
Author-X-Name-Last: Sha
Author-Name: Zixuan Zhang
Author-X-Name-First: Zixuan
Author-X-Name-Last: Zhang
Author-Name: Lanlan Liu
Author-X-Name-First: Lanlan
Author-X-Name-Last: Liu
Title: Is Illegal Insider Trading a Sure Thing? Some New Evidence
Abstract: 
 Using a hand-collected database, we evaluate 328 illegal insider trading cases in the Chinese financial market from 2007 to 2018. Insiders, on average, make less profits than a single buy-and-hold strategy in the same period. This low performance is exacerbated when target firms are state-owned and with high institutional ownership. A firm’s size, 6-month past returns, debt ratio, and firm age have marginal impacts on the illegal returns. Two potential mechanisms derived from the US market are tested but they show divergent roles in our model setting. This study calls for alternative mechanisms in understanding market efficiency in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 2929-2944
Issue: 12
Volume: 56
Year: 2020
Month: 09
X-DOI: 10.1080/1540496X.2020.1813469
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1813469
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Template-Type: ReDIF-Article 1.0
Author-Name: Hahn Shik Lee
Author-X-Name-First: Hahn Shik
Author-X-Name-Last: Lee
Author-Name: Woo Suk Lee
Author-X-Name-First: Woo Suk
Author-X-Name-Last: Lee
Title: Network Connectedness among Northeast Asian Financial Markets
Abstract: 
 Despite the increasing interest in the topic of international transmission of financial markets, the Northeast Asian region has received little attention concerning connectedness among financial markets. This article discusses network connectedness among financial markets in the Northeast Asian region. In particular, we investigate various aspects of international linkage across different asset-class (stock, bond, foreign exchange) markets in China, Japan, and Korea. The basic finding is that the connectedness among Northeast Asian countries seems rather weak, while the US markets are an important source of network effects on financial markets in this region. As for the dynamic aspects of connectedness, we observe time-varying patterns in connectedness measures, with a surge around the GFC. Also presented evidence that China has become more influential with the development of Chinese financial markets since the “new normal (Xinchangtai)” period.
Journal: Emerging Markets Finance and Trade
Pages: 2945-2962
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1668267
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668267
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiang Ma
Author-X-Name-First: Xiang
Author-X-Name-Last: Ma
Author-Name: Wei Wu
Author-X-Name-First: Wei
Author-X-Name-Last: Wu
Title: Deficiencies in China’s Island Development Processes Compared with Other Countries
Abstract: 
 Islands help maintain balance in the marine environment and develop the marine economy. They are strategic frontiers that safeguard maritime interests and national security. To address difficulties in developing inhabited islands, this study summarizes literature on island development processes in China and successful foreign experiences. We find three main deficiencies in China’s island development processes: lack of well-defined development models, absence of focused legislation for different types of island economies, and lack of departmental coordination. To address these deficiencies, we recommend including island development in China’s national strategy, formulating management plans and effective policies for rational island development, promoting the growth of bay area economies, and encouraging participation of diverse capital sources.
Journal: Emerging Markets Finance and Trade
Pages: 2963-2976
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1644498
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1644498
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Template-Type: ReDIF-Article 1.0
Author-Name: Tao Ding
Author-X-Name-First: Tao
Author-X-Name-Last: Ding
Author-Name: Huaqing Wu
Author-X-Name-First: Huaqing
Author-X-Name-Last: Wu
Author-Name: Qianzhi Dai
Author-X-Name-First: Qianzhi
Author-X-Name-Last: Dai
Author-Name: Zhixiang Zhou
Author-X-Name-First: Zhixiang
Author-X-Name-Last: Zhou
Author-Name: Changchun Tan
Author-X-Name-First: Changchun
Author-X-Name-Last: Tan
Title: Environmental Efficiency Analysis of Urban Agglomerations in China: A Non-Parametric Meta-Frontier Approach
Abstract: 
 This paper studies the environmental efficiency of Chinese urban agglomerations (UAs) based on a non-parametric meta-frontier approach. We find most of UAs has a large gap and imbalance of environmental performance under meta-frontier. The meta-efficiencies of eastern and southern coastal areas are better than that of middle and western. Besides, the efficiency difference of cities in each UA is relatively small, which may be caused by the technology spillover effect. In addition, the average technology gap among most UAs exists but not so huge. Based on the findings, we provide specific suggestions for Chinese central and local governments.
Journal: Emerging Markets Finance and Trade
Pages: 2977-2992
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2018.1538877
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1538877
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Template-Type: ReDIF-Article 1.0
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Author-Name: Li Liu
Author-X-Name-First: Li
Author-X-Name-Last: Liu
Author-Name: Yu Ouyang
Author-X-Name-First: Yu
Author-X-Name-Last: Ouyang
Author-Name: Lanlan Li
Author-X-Name-First: Lanlan
Author-X-Name-Last: Li
Title: Consumer Demand, Pollutant Emissions and Public Health under Increasing Block Tariffs and Time-of-Use Pricing Policies for Household Electricity in China
Abstract: 
 In China, the proportion of coal power generation is too high, resulting in a conflict between the power generation structure and energy conservation and emission reduction. The pricing policy is an effective economic means of guiding consumer behaviors. Therefore, from the perspective of consumer demand, we use demand systems to study the consumer responses to different electricity price policies under three scenarios, to analyze the impact of changes in electricity prices on pollution emissions and public health. The results of elasticities show that TOU-IBTs in peak-periods in urban and rural areas are most flexible. The results of the scenario analyses show that taking into account the pollution emissions and public health, the gap of electricity tariff among different blocks should be limited, and that the coverage percentage is important in residential electricity consumption. Furthermore, based on the income levels and electricity consumption of different users, the electricity price policy reform should be taken to guide consumers to conserve electricity and reduce extravagant electricity consumption. Our framework, to the best of our knowledge, is the first attempt to quantify the mechanisms among electricity demand, pollution emission, and public health.
Journal: Emerging Markets Finance and Trade
Pages: 2993-3014
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2018.1545643
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1545643
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhongfei Chen
Author-X-Name-First: Zhongfei
Author-X-Name-Last: Chen
Author-Name: Kexin Li
Author-X-Name-First: Kexin
Author-X-Name-Last: Li
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Title: Has Internet Finance Decreased the Profitability of Commercial Banks?: Evidence from China
Abstract: 
 This paper explores the popularity of internet finance and its potential shocks to the business of traditional commercial banking in China. Using data on 200 commercial banks in China during the period 2011 to 2016, this paper investigates whether internet finance, measured by P2P (peer-to-peer lending) lending and third-party payment, has a negative impact on the profitability of commercial banks. It concludes that P2P lending and third-party payment has significant negative influence on the profitability of loans and deposits at China’s commercial banks. By intensifying competition, the development of internet finance has decreased the interest income of loans, increased the interest cost of deposits, lowered the growth rate of loans and deposit, and brought about more risk. City and rural banks and unlisted banks are more vulnerable to internet finance than large government-owned and joint-stock banks.
Journal: Emerging Markets Finance and Trade
Pages: 3015-3032
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1624159
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1624159
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Template-Type: ReDIF-Article 1.0
Author-Name: Lihua Jiang
Author-X-Name-First: Lihua
Author-X-Name-Last: Jiang
Author-Name: Chengliang Lin
Author-X-Name-First: Chengliang
Author-X-Name-Last: Lin
Title: Analysis on the International Competitiveness of China’s Trade in Services
Abstract: 
 This paper analyzes the international competitiveness of China‘s trade in services using the international market share (IMS) index, revealed comparative advantage (RCA) index and trade competitiveness (TC) index and compared with other countries. The results show that the overall international competitiveness of China’s trade in services is weak but has been rising in the past 20 years. International competitiveness varies across industries, with higher levels in construction and communications; most of the capital- and technology-intensive industries, such as finance, insurance, and Patents and royalties, have no competitive advantages; however, the international competitiveness of resource-intensive tourism has declined since 2010, changing from a competitive advantage to a competitive disadvantage. The paper also analyzes the reasons for the weak competitiveness of China‘s trade in services, finding many problems with policy, the industrial base, and talent in the development of the service trade, which affects its international competitiveness. Finally, based on our analysis, we make some policy recommendations for improving the international competitiveness of China‘s trade in services.
Journal: Emerging Markets Finance and Trade
Pages: 3033-3043
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1611558
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1611558
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenjing Fan
Author-X-Name-First: Wenjing
Author-X-Name-Last: Fan
Author-Name: Jiadong Pan
Author-X-Name-First: Jiadong
Author-X-Name-Last: Pan
Author-Name: Minghai Zhou
Author-X-Name-First: Minghai
Author-X-Name-Last: Zhou
Title: An Explanation of the Underdevelopment of China’s Service Sector from the Perspective of Demand
Abstract: 
 The share of the service sector in China is significantly lower than that in most countries at the same level of income. Figures reveal that an insufficiency in both consumer and producer demand may be one of the reasons. We find that the demand insufficiency mainly stems from high consumer preferences for saving and China’s export-oriented trade structure. These excessive saving tendencies limit consumer demand for service products and thus hamper the development of consumer services in China. The rapid development of the processing trade also impedes the interrelation between the domestic manufacturing and service industries, reduces the effective demand for local producer services from the manufacturing industry, and ultimately restricts the growth of the producer service industry in China.
Journal: Emerging Markets Finance and Trade
Pages: 3044-3059
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1601078
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1601078
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuxin Wang
Author-X-Name-First: Yuxin
Author-X-Name-Last: Wang
Author-Name: Yankai Yang
Author-X-Name-First: Yankai
Author-X-Name-Last: Yang
Author-Name: Zhixiang Zhou
Author-X-Name-First: Zhixiang
Author-X-Name-Last: Zhou
Author-Name: Huaqing Wu
Author-X-Name-First: Huaqing
Author-X-Name-Last: Wu
Title: Compatibility between Commercial Performance and Agricultural Services: Evidence from Anhui Rural Credit Cooperatives
Abstract: 
 The important historical mission of rural credit cooperatives (RCCs) in China is to “serving agriculture, rural areas, and farmers” so as to achieve sustainable commercial development. Using panel data on eighty-one RCCs in Anhui Province, we examine the relationship between agricultural services and operational performance among RCCs in rural China under different rates of asset growth with a threshold panel model. The results show that the influence of agricultural services on the performance of RCCs is nonlinear, with a significant threshold effect. When the asset growth rate remains moderate, agricultural services improve the commercial performance of RCCs; otherwise, it negatively affects performance. These findings imply that moderate adjustment in the asset growth rate of RCCs is conducive to simultaneous improvement in both agricultural services and commercial performance.
Journal: Emerging Markets Finance and Trade
Pages: 3060-3071
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1601552
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1601552
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhaoxi Tang
Author-X-Name-First: Zhaoxi
Author-X-Name-Last: Tang
Author-Name: Chuanzhong Li
Author-X-Name-First: Chuanzhong
Author-X-Name-Last: Li
Author-Name: Wen Xiao
Author-X-Name-First: Wen
Author-X-Name-Last: Xiao
Title: Depletable Energy, Intermediate Goods Quality, and Sustainable Growth
Abstract: 
 In this article, we attempt to develop a four-sector endogenous growth model with depletable energy resources to study how energy resource depletion and R&D would affect long-run economic growth. We apply the Schumpeterian approach of vertical innovation to characterize technological progress by the efficiency improvement in intermediate goods. We obtain the social optimal equilibrium of this economic system and discuss the conditions for the existence of balanced growth path. We also conduct stability analysis of the optimal long-run balanced growth path and come up with some appropriate policy recommendations.
Journal: Emerging Markets Finance and Trade
Pages: 3072-3083
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2018.1528870
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1528870
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Template-Type: ReDIF-Article 1.0
Author-Name: Huadong Zhou
Author-X-Name-First: Huadong
Author-X-Name-Last: Zhou
Author-Name: Yichuan Wang
Author-X-Name-First: Yichuan
Author-X-Name-Last: Wang
Author-Name: Lingling Gao
Author-X-Name-First: Lingling
Author-X-Name-Last: Gao
Author-Name: Huaqing Wu
Author-X-Name-First: Huaqing
Author-X-Name-Last: Wu
Title: How Housing Price Fluctuation Affects Resource Allocation: Evidence from China
Abstract: 
 A large number of recent proofs indicate the irrationality of optimal resource allocation assumption in traditional economic growth theory, wherein resource misallocation (misallocation of capital and labor among heterogeneous enterprises) is regarded as the important reason for the difference in total factor productivity (TFP). In this article, we study resource allocation from the perspective of housing price, and measure the resource allocation efficiency of industrial enterprises in China based on industrial enterprises database covering the period of 1999–2007. We find that to some extent rising housing price has ameliorated resource allocation efficiency in China recently. We further find that rising housing price ameliorates resource allocation mainly in Central and Western areas and in labor-intensive industries.
Journal: Emerging Markets Finance and Trade
Pages: 3084-3094
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1608521
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1608521
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Template-Type: ReDIF-Article 1.0
Author-Name: Shenchao Han
Author-X-Name-First: Shenchao
Author-X-Name-Last: Han
Author-Name: Qiang Zhang
Author-X-Name-First: Qiang
Author-X-Name-Last: Zhang
Author-Name: Liyun Liu
Author-X-Name-First: Liyun
Author-X-Name-Last: Liu
Title: The Risk Management Mechanism of China’s Bidding Rotating Savings and Credit Association: A Case Study of Chengnan Village in Wenzhou
Abstract: 
 China’s rural economy growth since the reform has been very rapid. The informal finance including the bidding Rotating Savings and Credit Association (ROSCA) has emerged to meet increasing funding needs of rural residents. This paper conducts a survey on Chengnan Village in Wenzhou to analyze how bidding ROSCA operates and the roles bidding ROSCA’s participants play as investors and borrowers, and thus to identify the potential risk. By explaining bidding ROSCA’s both internal and external risk management mechanisms, it finds that village ethical community is the informal institutional foundation of risk management.
Journal: Emerging Markets Finance and Trade
Pages: 3095-3105
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1587609
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1587609
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenwu Xie
Author-X-Name-First: Wenwu
Author-X-Name-Last: Xie
Author-Name: Tianhang Xue
Author-X-Name-First: Tianhang
Author-X-Name-Last: Xue
Title: FDI and Improvements in the Quality of Export Products in the Chinese Manufacturing Industry
Abstract: 
 This paper proposes theoretically that FDI(Foreign Direct Investment) not only increases the share of high-quality export products in China’s manufacturing industry but it also exerts an effect of demonstration and competition on local enterprises, thus facilitating local enterprises to improve the quality of their export products. We empirically test this theory by using the customs database, which confirms that FDI has a positive impact on the quality of Chinese export products. On the one hand, the export products of foreign-funded enterprises, making up more than 50% of the share of China’s exports, are of a higher quality than those of China’s local enterprises. On the other hand, FDI strengthens the market competition of local enterprises and promotes the TFP (Total Factor Productivity) of Chinese enterprises, thereby positively affecting the quality of their export products.
Journal: Emerging Markets Finance and Trade
Pages: 3106-3116
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1609936
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1609936
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:13:p:3106-3116




Template-Type: ReDIF-Article 1.0
Author-Name: Jinzhou Geng
Author-X-Name-First: Jinzhou
Author-X-Name-Last: Geng
Author-Name: Chenggang Li
Author-X-Name-First: Chenggang
Author-X-Name-Last: Li
Title: Empirical Research on the Spatial Distribution and Determinants of Regional E-Commerce in China: Evidence from Chinese Provinces
Abstract: 
 We study regional development of e-commerce in China by investigating the size of the e-commerce industry, its development across the different regions in China, and factors that have affected the e-commerce development. The factorial analysis extracts two factors from 21 variables: basic factors and innovation and digitization factors. The results show that basic conditions and the level of innovation and digitization have a significant impact on regional e-commerce, and comprehensive development levels based on these factors show heterogeneity in the concentration and distribution in China from east to west and south to north. Moreover, changes in spatial dependence are mainly due to basic conditions in internet development, the level of marketization, and skilled personnel. We discuss the policy implications of the findings.
Journal: Emerging Markets Finance and Trade
Pages: 3117-3133
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1592749
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1592749
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhengwei Li
Author-X-Name-First: Zhengwei
Author-X-Name-Last: Li
Author-Name: Jixun Liu
Author-X-Name-First: Jixun
Author-X-Name-Last: Liu
Author-Name: Feirong Wang
Author-X-Name-First: Feirong
Author-X-Name-Last: Wang
Author-Name: Senmao Xia
Author-X-Name-First: Senmao
Author-X-Name-Last: Xia
Author-Name: Xiaoxian Zhu
Author-X-Name-First: Xiaoxian
Author-X-Name-Last: Zhu
Title: Projectification and Partnering: An Amalgamated Approach for New Venture Creation in an Entrepreneurial Ecosystem
Abstract: 
 The creation of a new venture is at the heart of entrepreneurship. Chinese governments at different levels are proactive in promoting the entrepreneurial ecosystem (EE) and fostering new venture creation (NVC). However, it is still far from clear how governments as focal actors in the EE affect and regulate the process and pattern of NVC. This study borrows from the theory of temporary organization and conducts a comparative case study of two entrepreneurial projects in the Hangzhou Dream Town EE. This study proposes an integrated conceptual framework to illustrate NVC in two dimensions of projectification (the process of NVC) and partnering (a pattern of NVC) and specifies that the main role of local governments is as a sponsor, feeder, and endorser in that order. The three functional roles enable local governments to catalyze the creation of new ventures through projectification and partnering. Our study not only contributes to the literature on entrepreneurship, governance theory, and the theory of temporary organization but also provides an actionable approach for governments to foster new ventures, especially in transition economies such as China.
Journal: Emerging Markets Finance and Trade
Pages: 3134-3152
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1578210
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1578210
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Template-Type: ReDIF-Article 1.0
Author-Name: Bin Gao
Author-X-Name-First: Bin
Author-X-Name-Last: Gao
Author-Name: Wen-guang Liang
Author-X-Name-First: Wen-guang
Author-X-Name-Last: Liang
Author-Name: Zhong-yue Xu
Author-X-Name-First: Zhong-yue
Author-X-Name-Last: Xu
Author-Name: Jun Xie
Author-X-Name-First: Jun
Author-X-Name-Last: Xie
Title: Trading Strategies: Forecasting Index Futures Prices with Short-Term Investor Sentiment
Abstract: 
 Behavior Finance Theory explains the short-term deviations of futures price. However, the previous studies generally view sentiment as one-time dimension. This article, on a larger basis, captures both long-term and short-term investor sentiment. In such case, short-term predictive power of investor sentiment on index futures returns can be analyzed in two prospects. On the one hand, the spot market sentiment and futures market sentiment have more predictive power on short-term components of returns than long-term components of returns. On the other hand, short-term sentiment components of spot market and futures market are more statistically significant on returns than long-term components. To further explain that, out-of-sample evidence of short-term sentiment trading strategies is presented, which proves a statistically significant return with an annualized return of 40% and annualized Sharpe ratio of 2.4.
Journal: Emerging Markets Finance and Trade
Pages: 3153-3173
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2018.1564656
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1564656
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Template-Type: ReDIF-Article 1.0
Author-Name: Bartosz Kabaciński
Author-X-Name-First: Bartosz
Author-X-Name-Last: Kabaciński
Author-Name: Jarosław Kubiak
Author-X-Name-First: Jarosław
Author-X-Name-Last: Kubiak
Author-Name: Katarzyna Szarzec
Author-X-Name-First: Katarzyna
Author-X-Name-Last: Szarzec
Title: Do State-owned Enterprises Underperform Compared to Privately owned Companies? An Examination of the Largest Polish Enterprises
Abstract: 
 The aim of this article is to compare financial performance of the largest non-financial state-owned enterprises (SOEs) and privately owned enterprises in the years 2013–2015. We performed a univariate as well as discriminant analysis using various indicators assessing profitability, financial liquidity, and financial operational efficiency. When observing several aspects of financial performance, it is difficult to state whether SOEs underperform. Compared to privately owned enterprises, state companies achieve higher returns on assets. However, they underperform in terms of fixed capital employed, inventory management and have less financial liquidity.
Journal: Emerging Markets Finance and Trade
Pages: 3174-3192
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1707653
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1707653
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Template-Type: ReDIF-Article 1.0
Author-Name: Yongyou Nie
Author-X-Name-First: Yongyou
Author-X-Name-Last: Nie
Author-Name: Hao Tian
Author-X-Name-First: Hao
Author-X-Name-Last: Tian
Author-Name: Peng Zhang
Author-X-Name-First: Peng
Author-X-Name-Last: Zhang
Author-Name: Enci Wang
Author-X-Name-First: Enci
Author-X-Name-Last: Wang
Author-Name: Tsangyao Zhang
Author-X-Name-First: Tsangyao
Author-X-Name-Last: Zhang
Author-Name: Qinxin Guo
Author-X-Name-First: Qinxin
Author-X-Name-Last: Guo
Title: A Study of the Stability of China’s Carbon Dioxide Emissions
Abstract: 
 China needs to reach a peak of CO2 emissions around 2030 as the goal of “national autonomous contribution” submitted by its government at the Paris Climate Change Conference. Utilizing the quantile method to calculate the CO2 convergence in the eastern, central, and western regions in China between 1995 and 2014, we find that provinces in different regions in China have certain effects on CO2 emissions reduction and there exist a trend of CO2 convergence in the eastern and central regions. The convergence of provinces with a mature industrial structure is relatively stable, especially in areas where the proportion of public-owned economy is large, e.g., Jiangsu, Hunan, etc. The task of CO2 reduction in resource and energy province (i.e., Shanxi Province) is still challenging.
Journal: Emerging Markets Finance and Trade
Pages: 3193-3204
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2018.1564657
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1564657
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Template-Type: ReDIF-Article 1.0
Author-Name: Yaning Li
Author-X-Name-First: Yaning
Author-X-Name-Last: Li
Author-Name: Yi Yang
Author-X-Name-First: Yi
Author-X-Name-Last: Yang
Author-Name: Gaoshuai Li
Author-X-Name-First: Gaoshuai
Author-X-Name-Last: Li
Author-Name: Xing Zhao
Author-X-Name-First: Xing
Author-X-Name-Last: Zhao
Title: Study on Sustainable Development of Microfinance Institutions from the Perspective of Inclusive Finance—Based on MFI Data in Countries along the Belt and Road
Abstract: 
 Practical experience and research on microfinance in various countries around the world show that microfinance institutions (MFIs) have had a profound impact on poverty alleviation, addressing the difficulty of lending in rural areas and promoting the development of small and medium-size enterprises. Based on data covering a hundred MFIs in twenty-two countries along the Belt and Road (In diplomatic documents, the English version of “the Belt and Road” is “the Silk Road Economic Belt and the 21st-Century Maritime Silk Road”, which can be abbreviated as “B&R”) from 2014 to 2016, this paper studies the micro- and macro-level factors that affect the sustainable development of MFIs from the perspective of inclusive finance. The results show that the return on assets, credit depth of information index have significant positive effects on the sustainable development of MFIs. However, average loan balance, total expense to asset, risk asset ratio more than thirty days’ overdue and rural population to total population have significant negative effects on the sustainable development of MFIs. MFIs’ sustainability are significant regional differences.
Journal: Emerging Markets Finance and Trade
Pages: 3205-3216
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1684893
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1684893
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Template-Type: ReDIF-Article 1.0
Author-Name: Amin Haghnejad
Author-X-Name-First: Amin
Author-X-Name-Last: Haghnejad
Author-Name: Saeed Samadi
Author-X-Name-First: Saeed
Author-X-Name-Last: Samadi
Author-Name: Khadije Nasrollahi
Author-X-Name-First: Khadije
Author-X-Name-Last: Nasrollahi
Author-Name: Karim Azarbayjani
Author-X-Name-First: Karim
Author-X-Name-Last: Azarbayjani
Author-Name: Iraj Kazemi
Author-X-Name-First: Iraj
Author-X-Name-Last: Kazemi
Title: Market Power and Efficiency in the Iranian Banking Industry
Abstract: 
 This paper explores the nature of the causal relationship between market power and cost efficiency for a sample of banks operating in the Iranian banking industry over the period 2002–2014. In particular, a bootstrap panel Granger causality approach is used to test the “quiet life”, “banking specificities”, and “efficient-structure” hypotheses, accounting for both slope heterogeneity and cross-sectional dependence. The results indicate that, on average, banks’ market power (measured by the efficiency-adjusted Lerner index) has steadily declined over the study period, while cost efficiency (measured by the SFA approach) has improved over the period. Furthermore, the results of the causality analysis suggest that there is a negative unidirectional causality running from market power to cost efficiency for 56.25% of banks, providing evidence to support the “quiet life” hypothesis, according to which banks with greater market power would be less cost-efficient. Such a result clearly rejects the “banking specificities” and “efficient-structure” hypotheses which predict a positive Granger causality in the same and opposite directions, respectively. These results are robust to the use of an alternative Granger non-causality procedure.
Journal: Emerging Markets Finance and Trade
Pages: 3217-3234
Issue: 13
Volume: 56
Year: 2020
Month: 10
X-DOI: 10.1080/1540496X.2019.1643716
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1643716
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Template-Type: ReDIF-Article 1.0
Author-Name: Dong Zhou
Author-X-Name-First: Dong
Author-X-Name-Last: Zhou
Author-Name: Weiguang Deng
Author-X-Name-First: Weiguang
Author-X-Name-Last: Deng
Author-Name: Xiaoyu Wu
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Wu
Title: Impacts of Internet Use on Political Trust: New Evidence from China
Abstract: 
 This study evaluates the impacts of Internet use on political trust in China. Negative effects are consistently found across variant measures of political trust. IV and PSM estimations confirm that the negative impact is causal. Further, placebo tests show that the traditional media as the primary information source hasn’t generated such effects and trust in friends hasn’t been impacted by Internet use. This effect is most likely attributable to the fact that internet use in China exacerbates public perception toward government and government officials, increases public demand for political participation, and raises the expectation of government performance.
Journal: Emerging Markets Finance and Trade
Pages: 3235-3251
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1644161
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1644161
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:14:p:3235-3251




Template-Type: ReDIF-Article 1.0
Author-Name: Fei Su
Author-X-Name-First: Fei
Author-X-Name-Last: Su
Author-Name: Lei Wang
Author-X-Name-First: Lei
Author-X-Name-Last: Wang
Title: Conditional Volatility Persistence and Realized Volatility Asymmetry: Evidence from the Chinese Stock Markets
Abstract: 
 This study proposes that the overall state of the market, as captured by daily return and volatility, is an important determinant of volatility persistence. By utilizing the realized variance (RV) measure, this paper shows that daily time-varying volatility persistence increases with return but decreases with volatility. Negative returns increase volatility persistence more than positive returns. The dependence of volatility persistence on state variables is termed “conditional volatility persistence”. This study finds that conditional volatility persistence is the dominant channel linking changing market states to future volatility and the model which calibrates future-RV conditionally on market states performs better statistically and economically.
Journal: Emerging Markets Finance and Trade
Pages: 3252-3269
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1574566
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1574566
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Template-Type: ReDIF-Article 1.0
Author-Name: Junqing Li
Author-X-Name-First: Junqing
Author-X-Name-Last: Li
Author-Name: Qiheng Han
Author-X-Name-First: Qiheng
Author-X-Name-Last: Han
Author-Name: Pengfei Liu
Author-X-Name-First: Pengfei
Author-X-Name-Last: Liu
Author-Name: Jianbo Zhang
Author-X-Name-First: Jianbo
Author-X-Name-Last: Zhang
Title: Institutional Quality, Financial Friction, and Sustained Economic Growth: The Case of China
Abstract: 
 Can an economy achieve sustained growth without significant improvement in institutional quality? What are the differences in the driving forces of short- and long-term growth? This paper tries to answer these questions in a simple framework with financial friction. Our theoretical model shows that, at the early stage, institutional quality does not play a critical role because the return differential is too high to overcome the friction of low institutional quality. However, as the economy grows, institutional quality eventually becomes the most important factor affecting economic growth. Thus building high-quality institutions plays a critical role in long-term economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 3270-3293
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1700111
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1700111
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:14:p:3270-3293




Template-Type: ReDIF-Article 1.0
Author-Name: Jiaqi Chen
Author-X-Name-First: Jiaqi
Author-X-Name-Last: Chen
Author-Name: Fangzhao Zhou
Author-X-Name-First: Fangzhao
Author-X-Name-Last: Zhou
Author-Name: Zhifang He
Author-X-Name-First: Zhifang
Author-X-Name-Last: He
Author-Name: Hui Fu
Author-X-Name-First: Hui
Author-X-Name-Last: Fu
Title: Second-generation Succession and the Financialization of Assets: An Empirical Study of Chinese Family Firms
Abstract: 
 This research examines whether intra-family leadership succession in Chinese family firms influences the decision to allocate more financial assets, the factors that influence second-generation successors in making such decisions, and their impacts on firm performance. The study collected firm and CEO data in which second-generation CEOs’ characteristics were captured, and the findings suggest second-generational involvement is a critical factor in the financialization of assets. Furthermore, the study finds that second-generation CEOs’ characteristics, market competition, and financing constraints have significant effects on second-generation successors when making asset-allocating decisions, and this is particularly true for financing constraints due to capital reserve motivations. The study finds no significant relationship between the financialization of assets in second-generation family firms and the family firms’ performance. This implies that firm innovation does not mean to neglect primary operating business. The results are robust after considering possible endogeneity issues and to various specifications of variables.
Journal: Emerging Markets Finance and Trade
Pages: 3294-3319
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1695592
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695592
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:14:p:3294-3319




Template-Type: ReDIF-Article 1.0
Author-Name: Chengrui Xiao
Author-X-Name-First: Chengrui
Author-X-Name-Last: Xiao
Author-Name: Yaping Wu
Author-X-Name-First: Yaping
Author-X-Name-Last: Wu
Title: Stay or Go? Intra-government Tax Competition and Firms’ Location Decisions in China
Abstract: 
 The impact of the intra-government (vertical) tax competition on firms’ location choices is seldom studied in the literature. In this paper, we use the local corporate income tax revenue retention rate to represent the outcome of the vertical tax strategic interactions between the central and local governments in China. Theoretically and empirically, we find that a higher local corporate income tax revenue retention rate attracts newly-established firms, even when we simultaneously take into account the effect of the horizontal tax competition, i.e., the local effective corporate income tax rates. Such positive effect of the local corporate income tax revenue retention rate on firms’ location decisions is robust to a battery of sub-sample analyses and alternative model specifications, and is heterogeneous across firms with different ownership structures. This effect is more prominent in provinces with weaker agglomeration forces as well.
Journal: Emerging Markets Finance and Trade
Pages: 3320-3350
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1694892
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694892
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Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth S. Chan
Author-X-Name-First: Kenneth S.
Author-X-Name-Last: Chan
Author-Name: Vinh Q.T. Dang
Author-X-Name-First: Vinh Q.T.
Author-X-Name-Last: Dang
Author-Name: Tingting Li
Author-X-Name-First: Tingting
Author-X-Name-Last: Li
Title: Corruption and Income Inequality in China
Abstract: 
 We investigate the intricate relation between corruption and income inequality in China based on provincial panel data of 1996–2014. Our analysis shows that lower corruption is associated with higher income inequality. This seemingly counter-intuitive result, however, is consistent with findings from countries with a large informal sector, particularly those in Latin America. Institutional reform reduces corruption but also imposes additional costs on the participants in the informal sector. The latter effect, at least initially, exacerbates inequality, giving rise to the negative correlation. After the informal sector in China is considered, that negative relation vanishes. Moreover, when reform is accompanied by measures protecting the poor (such as those taken in the agricultural reform occurring in early 2000s), its perverse impact on inequality is significantly reduced. Lastly, public investment is positively associated with income inequality as the former, generally financed by taxation, may transfer income from the taxpayers to the business elites.
Journal: Emerging Markets Finance and Trade
Pages: 3351-3366
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1675632
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1675632
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:14:p:3351-3366




Template-Type: ReDIF-Article 1.0
Author-Name: Yongjun Tang
Author-X-Name-First: Yongjun
Author-X-Name-Last: Tang
Author-Name: Mingjia Sun
Author-X-Name-First: Mingjia
Author-X-Name-Last: Sun
Author-Name: Wenchao Ma
Author-X-Name-First: Wenchao
Author-X-Name-Last: Ma
Author-Name: Shixiu Bai
Author-X-Name-First: Shixiu
Author-X-Name-Last: Bai
Title: The External Pressure, Internal Drive and Voluntary Carbon Disclosure in China
Abstract: 
 The increasingly serious environmental problems, such as rising sea levels and heavy smog, have made environmental consciousness in society more urgent. The key issue is how to motivate firms to disclose environmental information. In this paper, we use data on 200 listed enterprises in China as a sample and research the factors that affect voluntary carbon disclosure. We found that local government regulatory pressure and social pressure have different levels of influence on carbon information disclosure of state-owned enterprises and non-state-owned enterprises; local government regulatory pressure have a greater impact on state-owned enterprises’ carbon information disclosure, while social pressures have a greater impact on non-state-owned enterprises. Finally, we make some suggestions aimed at promoting disclosure of carbon information.
Journal: Emerging Markets Finance and Trade
Pages: 3367-3382
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1689356
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1689356
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhicheng Xu
Author-X-Name-First: Zhicheng
Author-X-Name-Last: Xu
Author-Name: Yu Zhang
Author-X-Name-First: Yu
Author-X-Name-Last: Zhang
Author-Name: Yang Sun
Author-X-Name-First: Yang
Author-X-Name-Last: Sun
Title: Will Foreign Aid Foster Economic Development? Grid Panel Data Evidence from China’s Aid to Africa
Abstract: 
 The fast growth and unique model of Chinese aid provide new perspectives and empirical evidence for the study of aid effectiveness. This paper employs GIS technology to match Chinese aid projects in Africa with satellite-measured nighttime lights – a proxy of economic development and converts them into 0.5° (longitude) x 0.5° (latitude) panel data. First, we find that Chinese aid projects are positively correlated to Africa’s economic development. Second, we gain a deep understanding of the mechanisms and find that the aid-growth relationship is mostly attributed to economic infrastructure aid rather than social welfare projects, direct aid as well as production and other types of projects. Spatial panel regression further validates the robustness of the empirical results and sheds light on the spillover effects of Chinese aid. Moreover, our results also suggest that Chinese aid brings some side effects on the recipient countries, as it may intensify the spatial economic inequalities.
Journal: Emerging Markets Finance and Trade
Pages: 3383-3404
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1696187
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1696187
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:14:p:3383-3404




Template-Type: ReDIF-Article 1.0
Author-Name: Yanyan Xiong
Author-X-Name-First: Yanyan
Author-X-Name-Last: Xiong
Title: International Trade, Factor Endowments, and Income Inequality: Evidence from Chinese Regional Data
Abstract: 
 This study estimates the effects of international trade on income distribution within Chinese provinces. Dynamic panel data from a household survey and provincial statistics from 1988 to 2009 were used. Bias-corrected least square dummy variable estimations were employed. The results show that the distribution effects of exports and imports offset each other. Exports tend to reduce income inequality, but its effect varies depending on the distribution of factor endowments across regions. Imports tend to increase income inequality, mainly due to the positive relationship between imports and inequality in skill-intensive regions.
Journal: Emerging Markets Finance and Trade
Pages: 3405-3424
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1694893
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694893
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Template-Type: ReDIF-Article 1.0
Author-Name: Chenlu Li
Author-X-Name-First: Chenlu
Author-X-Name-Last: Li
Author-Name: Ruochen Li
Author-X-Name-First: Ruochen
Author-X-Name-Last: Li
Author-Name: Yuan Tian
Author-X-Name-First: Yuan
Author-X-Name-Last: Tian
Title: Measuring Liquidity Commonality of Currencies in the Emerging Markets
Abstract: 
 This paper examines the dynamics of liquidity commonality of currencies in the emerging markets, a research area that has been subject to little academic investigation. We separately examine how liquidity commonality of currencies in the emerging markets and the advanced markets vary between January 2006 and June 2018 using daily data. We find high commonality for both during the global financial crisis in 2007–2009 and the sharp shrinks in foreign exchange trading from 2013 to 2014. In contrast, the European sovereign debt crisis and Quantitative Easing spillovers show time-varying impact on commonality of currencies in the emerging markets. Our results provide important information on liquidity risk management for investors, especially so for active market traders who frequently rebalance portfolios and benefit from diversification in the emerging financial markets.
Journal: Emerging Markets Finance and Trade
Pages: 3425-3444
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1694894
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694894
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Template-Type: ReDIF-Article 1.0
Author-Name: Lanlan Liu
Author-X-Name-First: Lanlan
Author-X-Name-Last: Liu
Author-Name: Dan Luo
Author-X-Name-First: Dan
Author-X-Name-Last: Luo
Author-Name: Ningru Zhao
Author-X-Name-First: Ningru
Author-X-Name-Last: Zhao
Title: Short-selling Activity and Return Predictability: Evidence from the Chinese Stock Market
Abstract: 
 We examine the informativeness of short selling in the Chinese stock market based on monthly and daily short-interest data from January 2011 to July 2018. We find that short selling negatively predicts future stock returns in China. The pattern is robust when controlling for firm size, book-to-market ratio, and liquidity. A long-short strategy using a short-interest ratio (SIR)—shares shorted to shares outstanding—generates a 0.865% monthly return. We also document that return predictability is stronger when short selling is restricted. Meanwhile, we examine the information content of short-selling activity, and we confirm that the significant negative relationship between preannouncement short activity and post-announcement period returns.
Journal: Emerging Markets Finance and Trade
Pages: 3445-3467
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1694895
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694895
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhu Yang
Author-X-Name-First: Zhu
Author-X-Name-Last: Yang
Author-Name: Kung-Cheng Ho
Author-X-Name-First: Kung-Cheng
Author-X-Name-Last: Ho
Author-Name: Xixi Shen
Author-X-Name-First: Xixi
Author-X-Name-Last: Shen
Author-Name: Lisi Shi
Author-X-Name-First: Lisi
Author-X-Name-Last: Shi
Title: Disclosure Quality Rankings and Stock Misvaluation – Evidence from Chinese Stock Market
Abstract: 
 Using SZSE’s disclosure rankings data, this paper studies the relation between firms’ disclosure quality and stock mispricing in emerging markets. We find that higher disclosure ranking grades, the proxy for disclosure quality, is associated with less stock misvaluation in the sense that market price deviates less from its fundamental. We also investigate the variation in this relation across industries and time. Our results document that the association between disclosure ranking grades and stock misvaluation is stronger for firms in more competitive industries. This finding suggests that higher disclosure ranking grades help draw more investors’ attention, which will reinforce the role of corporate disclosure in reducing stock misvaluation. In addition, increase in disclosure ranking grades is more effective in reducing stock misvaluation in years prior to China’s Split Share Structure Reform (SSSR), which is consistent with our conjecture that corporate disclosure is more valuable in promoting pricing efficiency when private information collection activities are less active.
Journal: Emerging Markets Finance and Trade
Pages: 3468-3489
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1700499
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1700499
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Template-Type: ReDIF-Article 1.0
Author-Name: Han Gao
Author-X-Name-First: Han
Author-X-Name-Last: Gao
Author-Name: Zhuyi Shen
Author-X-Name-First: Zhuyi
Author-X-Name-Last: Shen
Author-Name: Yichen Li
Author-X-Name-First: Yichen
Author-X-Name-Last: Li
Author-Name: Xuxin Mao
Author-X-Name-First: Xuxin
Author-X-Name-Last: Mao
Author-Name: Yukun Shi
Author-X-Name-First: Yukun
Author-X-Name-Last: Shi
Title: Institutional Investors, Real Earnings Management and Cost of Equity: Evidence from Listed High-tech Firms in China
Abstract: 
 This paper investigates the association between real earnings management and the cost of equity from the perspective of the heterogeneity of institutional investors. Based on a sample of publicly listed high-tech firms in China from 2008 to 2017, our empirical results suggest that there is a significant negative correlation between earnings management and the cost of equity capital. This finding is contrary to previous conclusion, indicating that, in China, real earnings management cannot be effectively identified by external investors, and the company could easily obtain financing from the capital market and reduce its cost of equity due to its masked excellent performance by manipulating the real earnings management. Furthermore, we find that compared with transient institutional investors, stable institutional investors with the intention of holding the stock for the long-term can effectively reduce the cost of equity. Our results also show that real earnings management under the supervision of stable institutional investors could be more easily identified by shareholders and stable institutional investors could diminish the impact of earnings management on the cost of equity.
Journal: Emerging Markets Finance and Trade
Pages: 3490-3506
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1650348
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1650348
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Template-Type: ReDIF-Article 1.0
Author-Name: Xinxin Ma
Author-X-Name-First: Xinxin
Author-X-Name-Last: Ma
Author-Name: Pengcheng Song
Author-X-Name-First: Pengcheng
Author-X-Name-Last: Song
Author-Name: Xuan Zhang
Author-X-Name-First: Xuan
Author-X-Name-Last: Zhang
Title: The Structural Changes of Liquidity Risk, and Liquidity Risk Premium in China Stock Market
Abstract: 
 The Chinese stock market’s liquidity risk premium at medium-size and large companies declined from 2002 to 2016. We find the liquidity risk premium is negative during this period. The negative liquidity risk premium demonstrates that sellers prefer to compensate buyers when stock prices crash. In addition, the portfolio liquidity risk has a structural change after the split-share structure reform. Portfolio liquidity risk diverges from the relevant prehistorical betas, during the split-share structure reform. Similarly, the historical liquidity beta is nonmonotonic with postranking liquidity beta, before the reform. However, the historical liquidity beta is monotonic with postranking beta, after the reform.
Journal: Emerging Markets Finance and Trade
Pages: 3507-3521
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1601554
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1601554
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:14:p:3507-3521




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoying Zhai
Author-X-Name-First: Xiaoying
Author-X-Name-Last: Zhai
Author-Name: Yahui Hao
Author-X-Name-First: Yahui
Author-X-Name-Last: Hao
Author-Name: Eric M. Scheffel
Author-X-Name-First: Eric M.
Author-X-Name-Last: Scheffel
Author-Name: Yongmin Zhang
Author-X-Name-First: Yongmin
Author-X-Name-Last: Zhang
Title: Investor Disagreement, Government Subsidies and the Abnormal Day-one Returns of IPOs: Evidence from China
Abstract: 
 Based on irrational investor behavior and by exploiting newly constructed proxy measures for investor disagreement, we develop and test a theory which can successfully account for excessively high returns observed on the first day of IPOs launched in China’s stock markets. 93.8% of IPO companies in our sample received government subsidies, prompting us to examine whether and to what extent government subsidies categorized as “science and technology”, “international” and “other” affect the day-one return of IPOs. Also, to further examine the extent to which government subsidies may indirectly affect returns, we incorporate and study estimated interaction terms between government subsidies and investor disagreement to investigate the role of this particular non-linear channel. The results show that returns on companies receiving government subsidies are lower on average than on those who did not receive any government subsidies prior to their IPO, and that the higher the government subsidy, the lower the level of investor disagreement and the lower the IPO day-one return.
Journal: Emerging Markets Finance and Trade
Pages: 3522-3550
Issue: 14
Volume: 56
Year: 2020
Month: 11
X-DOI: 10.1080/1540496X.2019.1661836
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1661836
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhai Jinzhi
Author-X-Name-First: Zhai
Author-X-Name-Last: Jinzhi
Author-Name: Jon Carrick
Author-X-Name-First: Jon
Author-X-Name-Last: Carrick
Title: The Rise of the Chinese Unicorn: An Exploratory Study of Unicorn Companies in China
Abstract: 
 This study holistically examined the startup companies in China that have quickly achieved unicorn status (that is, a $1 billion dollar plus valuation). To explore this phenomenon, the study used a two-phased case study methodology. In the first phase, the study explored the paths, positions, and processes that enabled the growth of all 68 Chinese unicorn firms. In the second phase, an in-depth cross-case analysis of two firms was performed. The two-phased study surfaced nine themes and three propositions relating to how the development of Chinese unicorns is enabled by strategic alliances, strong government relationships, and founders with unique backgrounds and capabilities. This is one of the first studies to explore the unicorn phenomenon in the context of Chinese firms, and the findings from this study have laid the foundation for the study of the Chinese unicorn phenomenon.
Journal: Emerging Markets Finance and Trade
Pages: 3371-3385
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1610877
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1610877
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:15:p:3371-3385




Template-Type: ReDIF-Article 1.0
Author-Name: Ni-Sha Jia
Author-X-Name-First: Ni-Sha
Author-X-Name-Last: Jia
Author-Name: Yong-Hui Han
Author-X-Name-First: Yong-Hui
Author-X-Name-Last: Han
Author-Name: Ke-Ming Peng
Author-X-Name-First: Ke-Ming
Author-X-Name-Last: Peng
Author-Name: Hong-Zhen Lei
Author-X-Name-First: Hong-Zhen
Author-X-Name-Last: Lei
Title: Does Outward Foreign Direct Investment Boost Employment in the Home Country? Evidence from China’s Microlevel Data
Abstract: 
 Does outward foreign direct investment (OFDI) create (or transfer) employment in (or from) the home country? To examine this question, we analyze how OFDI with different motivations influences employment in the home country, using micro data from 552 Chinese manufacturing enterprises investing abroad. We use two sets of indices, namely, the absolute employment amount and relative employment amount, and adopt a difference-in-differences methodology. Overall, we find that OFDI increases both the absolute and relative employment amount. In particular, market-seeking OFDI increases the absolute employment amount, but not the relative employment amount. Technology-seeking OFDI significantly promotes both absolute and relative employment amount of the parent firm in the home country, while resource-seeking and efficiency-seeking OFDI have no significant influence on employment at enterprises in the home country. The effect on home-country employment depends on the host country. Finally, investment in developed countries can significantly increase home-country employment, while investment in developing countries does not have a significant influence on home-country employment.
Journal: Emerging Markets Finance and Trade
Pages: 3386-3403
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1601550
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1601550
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:15:p:3386-3403




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Zhang
Author-X-Name-First: Yu
Author-X-Name-Last: Zhang
Author-Name: Xiang Dai
Author-X-Name-First: Xiang
Author-X-Name-Last: Dai
Author-Name: Yuchen Shao
Author-X-Name-First: Yuchen
Author-X-Name-Last: Shao
Title: Does Matching with Foreign-Invested Enterprises Improve the Productivity of Chinese Enterprises?
Abstract: 
 Rapid expansion of China’s exports and inward foreign direct investment (FDI) are characteristic of China’s outward-oriented economy. Based on a unique micro-level survey on the co-development between domestic enterprises and foreign-invested enterprises in Kunshan County of Jiangsu Province, this paper finds that domestic enterprises can improve their productivity by matching (in terms of supply, processing, or original equipment manufacturer [OEM] relationship) with foreign-invested enterprises. A self-selection mechanism of matching is at work for domestic enterprises involved in exports: when foreign-invested enterprises operate in China, domestic enterprises compete to match with them, which eventually helps them improve. Empirical analysis supports the emergence of this mechanism, together with a learning-by-exporting effect and a peer effect. In addition, with respect to the peer effect, the improvement in productivity at domestic enterprises whose main product is intermediate inputs depends more on skilled or high-quality labor, while that of domestic enterprises whose main products are capital and consumable products depend more on management staff.
Journal: Emerging Markets Finance and Trade
Pages: 3404-3416
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1603541
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1603541
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Template-Type: ReDIF-Article 1.0
Author-Name: Miao Li
Author-X-Name-First: Miao
Author-X-Name-Last: Li
Author-Name: Tao Xiong
Author-X-Name-First: Tao
Author-X-Name-Last: Xiong
Title: Do Bubbles Alter Contributions to Price Discovery? Evidence from the Chinese Soybean Futures and Spot Markets
Abstract: 
 The purpose of this study is to investigate whether bubbles have significantly influenced the performance of price discovery in Chinese soybean futures markets. To evaluate the performance of price discovery, we employ forecast error variance decomposition based on structural vector autoregression and directed acyclic graphs, using daily data from six price series of futures contracts expiring at different months and one spot soybean price for the past 13 years. Then, the full-period data are divided into bubble and non-bubble periods via the supremum augmented Dickey–Fuller test. The methods utilized on the full sample for price discovery are conducted again on two subperiods. Our empirical results show that price discovery in the Chinese soybean futures market performs much better in bubble periods and worse in non-bubble period compared to the full period, indicating that bubbles have significantly influenced the performance of price discovery in Chinese soybean futures markets.
Journal: Emerging Markets Finance and Trade
Pages: 3417-3432
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1608178
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1608178
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:15:p:3417-3432




Template-Type: ReDIF-Article 1.0
Author-Name: Yingkai Yin
Author-X-Name-First: Yingkai
Author-X-Name-Last: Yin
Author-Name: Zhihui Jiang
Author-X-Name-First: Zhihui
Author-X-Name-Last: Jiang
Author-Name: Yazhou Liu
Author-X-Name-First: Yazhou
Author-X-Name-Last: Liu
Author-Name: Zheng Yu
Author-X-Name-First: Zheng
Author-X-Name-Last: Yu
Title: Factors Affecting Carbon Emission Trading Price: Evidence from China
Abstract: 
 Since the Chinese national carbon trading market was launched in 2017, the carbon trading price has become an important research topic. This study constructs the ‘China carbon trading price index’, and then a SVAR model with the China carbon trading price index, the EU carbon trading price index, an industrial index, the China Securities Index energy index (CSI), an air quality index (AQI) and the HS300 to study carbon trading prices in China. The result shows that the EU carbon trading price and AQI have a direct effect on China carbon trading price. Meanwhile, the CSI energy index, industrial index and HS300 have an indirect effect on the carbon trading price, and the effect is slightly positive. In addition, the volatility of China’s carbon trading price is mainly internally driven, while the volatility of the other economic variables examined is mostly driven by the EU carbon trading price index and the industrial index.
Journal: Emerging Markets Finance and Trade
Pages: 3433-3451
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1663166
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1663166
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Template-Type: ReDIF-Article 1.0
Author-Name: Weiliu Yang
Author-X-Name-First: Weiliu
Author-X-Name-Last: Yang
Author-Name: Jinlei Yang
Author-X-Name-First: Jinlei
Author-X-Name-Last: Yang
Author-Name: Zhitong Gao
Author-X-Name-First: Zhitong
Author-X-Name-Last: Gao
Title: Do Female Board Directors Promote Corporate Social Responsibility? An Empirical Study Based on the Critical Mass Theory
Abstract: 
 Based on the critical mass theory, we study the relationship between the number and background characteristics of female directors and corporate social responsibility (CSR). We use the data of Chinese listed companies from 2011 to 2016. Empirical evidence shows that the number of female directors, the number of female independent directors, female directors’ educational background and monetary compensation upon the fulfillment of corporate social responsibility was not statistically significant. The age and the part-time ratio of female directors were positively correlated with the fulfillment of social responsibilities. The group test based on the “critical number“ in the critical mass theory did not show the changing effect of reaching the “critical number” in the critical mass theory, and the same conclusion was obtained by further testing in terms of the proportion of female directors. This article provides a new perspective for further exploring the board gender diversity and the role of female directors on decision-making, which may be better for companies to fulfill their social responsibilities.
Journal: Emerging Markets Finance and Trade
Pages: 3452-3471
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1657402
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1657402
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Template-Type: ReDIF-Article 1.0
Author-Name: Li Yang
Author-X-Name-First: Li
Author-X-Name-Last: Yang
Author-Name: Junqi Zhu
Author-X-Name-First: Junqi
Author-X-Name-Last: Zhu
Author-Name: Zhihui Huang
Author-X-Name-First: Zhihui
Author-X-Name-Last: Huang
Author-Name: Jichao Geng
Author-X-Name-First: Jichao
Author-X-Name-Last: Geng
Title: A Systematic Review of China’s Food Safety Management since Reform and Opening Up
Abstract: 
 In this study, 52 journal articles on food safety management were collected from the China National Knowledge Infrastructure database. A systematic review was conducted on the past forty years of various aspects of food safety management, such as annual publication trends and the distribution of periodicals across disciplines. The results show that since the reform and opening up (1978), food safety management has received increasing attention over time. Academic understanding of food safety management has increased, various disciplines are becoming more integrated, the number of people and institutions providing authoritative research has increased, support from various national and private funds has increased, and food safety management in China has become an influential academic field. In the future, the most urgent task for China’s food safety management is to restore the public’s trust in food safety, and the main solution is the shaping and publicizing of food safety ethics.
Journal: Emerging Markets Finance and Trade
Pages: 3472-3489
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1642194
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1642194
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Template-Type: ReDIF-Article 1.0
Author-Name: Feipeng Feng
Author-X-Name-First: Feipeng
Author-X-Name-Last: Feng
Title: Does Industrial Policy Play an Important Role in Enterprise Innovation?
Abstract: 
 Using a the sample of A-share listed companies in Shanghai and Shenzhen during the twelfth five-year Plan period (2011–2015), this paper studies the impact of industrial policy and labor allocation on the innovation efficiency of enterprises to test the correlation among government policy, labor allocation and innovation efficiency. The empirical results show that industrial policy significantly improves the innovation efficiency of enterprises; at enterprises with low labor allocation, the innovation efficiency of enterprises is higher with an industrial policy. This study provides a new perspective and empirical evidence that government decision-makers can use in dealing with the relationship between government policies, labor market factors and enterprise innovation.
Journal: Emerging Markets Finance and Trade
Pages: 3490-3512
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1649654
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1649654
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Template-Type: ReDIF-Article 1.0
Author-Name: Genwen Zhang
Author-X-Name-First: Genwen
Author-X-Name-Last: Zhang
Author-Name: Chaoyang Fang
Author-X-Name-First: Chaoyang
Author-X-Name-Last: Fang
Author-Name: Wangfei Zhang
Author-X-Name-First: Wangfei
Author-X-Name-Last: Zhang
Author-Name: Qiong Wang
Author-X-Name-First: Qiong
Author-X-Name-Last: Wang
Author-Name: Donglan Hu
Author-X-Name-First: Donglan
Author-X-Name-Last: Hu
Title: How Does the Implementation of the New Environmental Protection Law Affect the Stock Price of Heavily Polluting Enterprises? Evidence from China’s Capital Market
Abstract: 
 This paper puts forward “attention hypothesis” and “information revelation hypothesis” in terms of the strong market response to the implementation of the updated China Environmental Protection Law (hereinafter referred to as “the new EPL”) in 2015, which verifies the effectiveness of China’s capital market in identifying dynamic changes of company fundamental information by selecting listed heavily polluting enterprises in China as research samples. The “attention hypothesis” interprets the slump in stock due to investors’ attention attracted by media coverage about implementation of “the new EPL”, while the “information revelation hypothesis” focuses on the investors’ information acquisition during the hiatus from promulgation to implementation of “the new EPL”. This paper is of great significance to help understand the behavioral characteristics, decision-making process and influencing mechanism of investors.
Journal: Emerging Markets Finance and Trade
Pages: 3513-3538
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1648250
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1648250
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Template-Type: ReDIF-Article 1.0
Author-Name: Doowon Ryu
Author-X-Name-First: Doowon
Author-X-Name-Last: Ryu
Author-Name: Maria H. Kim
Author-X-Name-First: Maria H.
Author-X-Name-Last: Kim
Author-Name: Doojin Ryu
Author-X-Name-First: Doojin
Author-X-Name-Last: Ryu
Title: The Effect of International Strategic Alliances on Firm Performance before and after the Global Financial Crisis
Abstract: 
 This study examines how the 2008 global financial crisis (GFC) influenced the way international strategic alliances (ISAs) impact firm performance. We divide our sample of Korean listed firms into pre-GFC and post-GFC period groups and construct a regression model using return on equity and return on assets as dependent variables. Our empirical results demonstrate that the impacts differ across ISA types and are subject to market conditions. In unstable market circumstances, the demand for ISAs through licensing increases substantially, indicating that licensing has a more positive impact on firm performance than joint ventures or R&D alliances have.
Journal: Emerging Markets Finance and Trade
Pages: 3539-3552
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1664466
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1664466
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Template-Type: ReDIF-Article 1.0
Author-Name: Rong Li
Author-X-Name-First: Rong
Author-X-Name-Last: Li
Author-Name: Zongyi Hu
Author-X-Name-First: Zongyi
Author-X-Name-Last: Hu
Author-Name: Sufang Li
Author-X-Name-First: Sufang
Author-X-Name-Last: Li
Author-Name: Keming Yu
Author-X-Name-First: Keming
Author-X-Name-Last: Yu
Title: Dynamic Dependence Structure between Chinese Stock Market Returns and RMB Exchange Rates
Abstract: 
 This paper investigates the dynamic dependence structure between the Chinese stock market and the real exchange rate of the Chinese renminbi (RMB) with unconditional and conditional copula models for the period July 22, 2005, to December 31, 2017. The results show that the crisis induced significant structural breaks, and the relationship is weak before the global financial crisis but substantially stronger after the financial crisis, regardless of whether the correlation is positive or negative. Our findings have important implications for global portfolio diversification, risk management, and China’s exchange rate policy.
Journal: Emerging Markets Finance and Trade
Pages: 3553-3574
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1624522
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1624522
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Template-Type: ReDIF-Article 1.0
Author-Name: Shijin Wang
Author-X-Name-First: Shijin
Author-X-Name-Last: Wang
Author-Name: Guihong Hua
Author-X-Name-First: Guihong
Author-X-Name-Last: Hua
Author-Name: Cunfang Li
Author-X-Name-First: Cunfang
Author-X-Name-Last: Li
Title: Urbanization, Air Quality, and the Panel Threshold Effect in China Based on Kernel Density Estimation
Abstract: 
 The dynamic evolution of urbanization was analyzed in panel data for 30 provinces in China from 2000 to 2014, by using kernel density estimation across China’s regions. Using STIRPAT modeling, the study also analyzed the effects of economic growth and urbanization on PM2.5 with respect to the eastern, central, and western regions, and the entire nation. Different relationships were found among regions. The economic growth, population, energy consumption structure, industrialization, and FDI were the key factors influencing air quality. Verification of the EKC curve indicated that the central region was linear, and the other regions had an inverted N-shape. The dynamic evolution of urbanization and the air quality were also analyzed with a panel threshold regression model. Urbanization in China has a triple threshold for air quality as an economic growth threshold. There were significant double thresholds in the eastern, central, and western regions. In view of the above analysis, policies and recommendations are proposed regarding how to change the mode of economic development and narrow the urbanization gap among regions to reduce air pollutant emissions and facilitate sustainable development.
Journal: Emerging Markets Finance and Trade
Pages: 3575-3590
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1665016
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1665016
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Template-Type: ReDIF-Article 1.0
Author-Name: Wanfu Li
Author-X-Name-First: Wanfu
Author-X-Name-Last: Li
Author-Name: Yuling Han
Author-X-Name-First: Yuling
Author-X-Name-Last: Han
Author-Name: Jiangang He
Author-X-Name-First: Jiangang
Author-X-Name-Last: He
Title: How Does the Heterogeneity of Internal Control Weakness Affect R&D Investment?
Abstract: 
 Internal control of nonfinancial reporting has received attention in the Committee of Sponsoring Organizations of the Treadway Commission’s new Internal Control-Integrated Framework. This paper explores the effect of internal control weakness (ICW) in financial reporting and nonfinancial reporting on R&D investment. Our results show that ICWs in financial and nonfinancial reporting inhibits R&D investment, and this effect comes mainly from ICWs in nonfinancial reporting. The impact of ICW in nonfinancial reporting on R&D investment is more serious at technology-intensive companies than labor- or capital-intensive companies. The influence of heterogeneous ICW on investment in corporate innovation has time lag effect and takes at least two paths of impact: weakening of executive compensation incentives and internal cash flow oversight. These results suggest that the ICW in nonfinancial reporting play a more important role in the allocation of resources for technological innovation.
Journal: Emerging Markets Finance and Trade
Pages: 3591-3614
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1620729
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1620729
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Handle: RePEc:mes:emfitr:v:55:y:2019:i:15:p:3591-3614




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Zubair Tauni
Author-X-Name-First: Muhammad Zubair
Author-X-Name-Last: Tauni
Author-Name: Zulfiqar Ali Memon
Author-X-Name-First: Zulfiqar Ali
Author-X-Name-Last: Memon
Author-Name: Hong-Xing Fang
Author-X-Name-First: Hong-Xing
Author-X-Name-Last: Fang
Author-Name: Khalil Jebran
Author-X-Name-First: Khalil
Author-X-Name-Last: Jebran
Author-Name: Tanveer Ahsan
Author-X-Name-First: Tanveer
Author-X-Name-Last: Ahsan
Title: Influence of Investor and Advisor Big Five Personality Congruence on Futures Trading Behavior
Abstract: 
 This study attempts to assess the influence of investor-advisor personality congruence on the trading behavior of futures investor. This research tested the hypotheses based on the unique data set collected from 408 investor-advisor dyads in the Chinese futures market. Our main data source is the actual trading data of futures investors that we obtained directly from futures brokerage firms in China. We performed Ordered Probit estimation to investigate the influence of investor-advisor personality congruence on trading frequency. Our results provide empirical evidence that investors tend to trade more futures when investor and advisor have congruence on openness, conscientiousness, and agreeableness. In contrast, investor-advisor congruence on neuroticism dampens investor's futures trading. This research postulates that individual investors trade differently if they have personality congruence (incongruence) with their advisors. Therefore, it is recommended that policymakers should consider investor-advisor personality congruence to enhance their business performance in the retail investor services industry.
Journal: Emerging Markets Finance and Trade
Pages: 3615-3630
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1672529
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1672529
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Template-Type: ReDIF-Article 1.0
Author-Name: Sokvibol Kea
Author-X-Name-First: Sokvibol
Author-X-Name-Last: Kea
Author-Name: Hua Li
Author-X-Name-First: Hua
Author-X-Name-Last: Li
Author-Name: Saleh Shahriar
Author-X-Name-First: Saleh
Author-X-Name-Last: Shahriar
Author-Name: Nazir Muhammad Abdullahi
Author-X-Name-First: Nazir Muhammad
Author-X-Name-Last: Abdullahi
Author-Name: Samnang Phoak
Author-X-Name-First: Samnang
Author-X-Name-Last: Phoak
Author-Name: Tharo Touch
Author-X-Name-First: Tharo
Author-X-Name-Last: Touch
Title: Factors Influencing Cambodian Rice Exports: An Application of the Dynamic Panel Gravity Model
Abstract: 
 This study aims to identify the major factors influencing the Cambodian rice exports through an application of the dynamic gravity framework estimated by the Generalized Least Square (GLS), the Poisson Pseudo-Maximum-Likelihood (PPML), and the Heckman Sample Selection models, based on a period of 22-year panel data (1995–2016) and a total of 40 selected importing partners. The results show that the historical ties, the policy of exchange rate and the agricultural land reform promote the rice exports; the expansion of the exports to the trading partners, especially the EU, China and the ASEAN countries are particularly highlighted. As a macroeconomic issue and resistance factor, the economic recession, impeding the exports flows, would require further special attentions.
Journal: Emerging Markets Finance and Trade
Pages: 3631-3652
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1673724
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1673724
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Template-Type: ReDIF-Article 1.0
Author-Name: Hongmei Wang
Author-X-Name-First: Hongmei
Author-X-Name-Last: Wang
Author-Name: Jun Wu
Author-X-Name-First: Jun
Author-X-Name-Last: Wu
Author-Name: Yuhong Yang
Author-X-Name-First: Yuhong
Author-X-Name-Last: Yang
Author-Name: Ruihai Li
Author-X-Name-First: Ruihai
Author-X-Name-Last: Li
Author-Name: Yuping Liu
Author-X-Name-First: Yuping
Author-X-Name-Last: Liu
Title: Ownership Concentration, Identity and Firm Performance: Evidence from China’s Listed Firms
Abstract: 
 Ownership concentration and ownership identity are important corporate governance mechanisms. This paper seeks to understand how ownership concentration and identity affect firm performance in an important emerging economy-China. It hypothesizes that differences in firm performance are a result of various ownership structures and ownership identity. Using data of Chinese listed companies from 2007–2017, it tests those hypotheses and finds that ownership concentration has a positive effect in firm performance and corporate ownership leads to higher firm performance than financial ownership. The study shows that firms in China benefit more from foreign ownership than firms with only domestic ownership.
Journal: Emerging Markets Finance and Trade
Pages: 3653-3666
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1672042
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1672042
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Template-Type: ReDIF-Article 1.0
Author-Name: Jianxiong Hu
Author-X-Name-First: Jianxiong
Author-X-Name-Last: Hu
Author-Name: Fangzhi Liang
Author-X-Name-First: Fangzhi
Author-X-Name-Last: Liang
Author-Name: Cunhai Ji
Author-X-Name-First: Cunhai
Author-X-Name-Last: Ji
Title: Non-Dividend Payout Behavior of Companies: Research on the Effect of Large Shareholders’ “Voting with Their Feet”
Abstract: 
 This study explores the effectiveness of large shareholders’ “voting with their feet,” in motivating a listed company to alter its non-dividend payout behavior. We show that the split-share structure reform, which changed the company’s shares held by controlling shareholders and other large shareholders from nontradable shares to tradable shares, gave large shareholders the ability to exit and therefore could inhibit this behavior. Furthermore, when a company has a higher ownership concentration of controlling shareholders and a lower quality of external auditing, the inhibitory effect is more significant. This paper considers China representative of emerging markets and suggests another way to manage the non-dividend payout behavior of listed companies in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 3667-3681
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2019.1627664
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1627664
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Template-Type: ReDIF-Article 1.0
Author-Name: Jounghyeon Kim
Author-X-Name-First: Jounghyeon
Author-X-Name-Last: Kim
Title: The Impact of Remittances on Exchange Rate and Money Supply: Does “Openness” Matter in Developing Countries?
Abstract: 
 Using a perfect-foresight general equilibrium monetary model, this article explores the impact of migrants’ remittances on exchange rate and money supply in developing countries and the effect of their “openness” on the impact. The findings indicate that the inflow of remittances leads to appreciation of the nominal exchange rate and increase of money supply under the fixed exchange rate regime. Moreover, a greater degree of openness helps mitigate the appreciation. These findings suggest that remittances and the degree of openness play a significant role in complementing monetary and exchange rate policy, helping to boost economic development. Using a sample of 114 developing countries from 1970 to 2013, empirical tests with both Anderson-Hsiao with instrumental variables and system generalized method of moments’ estimations confirm the theoretical findings.
Journal: Emerging Markets Finance and Trade
Pages: 3682-3707
Issue: 15
Volume: 55
Year: 2019
Month: 12
X-DOI: 10.1080/1540496X.2018.1547963
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1547963
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Template-Type: ReDIF-Article 1.0
Author-Name: Susan Sunila Sharma
Author-X-Name-First: Susan Sunila
Author-X-Name-Last: Sharma
Author-Name: Yezhou Sha
Author-X-Name-First: Yezhou
Author-X-Name-Last: Sha
Title: Part A: Special Section on COVID-19 Research
Journal: Emerging Markets Finance and Trade
Pages: 3551-3553
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2020.1858617
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1858617
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:15:p:3551-3553




Template-Type: ReDIF-Article 1.0
Author-Name: Pengcheng Song
Author-X-Name-First: Pengcheng
Author-X-Name-Last: Song
Author-Name: Xuan Zhang
Author-X-Name-First: Xuan
Author-X-Name-Last: Zhang
Author-Name: Yu Zhao
Author-X-Name-First: Yu
Author-X-Name-Last: Zhao
Author-Name: Liao Xu
Author-X-Name-First: Liao
Author-X-Name-Last: Xu
Title: Exogenous Shocks on the Dual-country Industrial Network: A Simulation Based on the Policies during the COVID-19 Pandemic
Abstract: 
 This article investigates the performance of the industrial structure in different emerging markets under exogenous shocks during the COVID-19. Based on the ICIO database, we use System Dynamics to simulate the evaluation of the economic system under different types of exogenous shocks (instantaneous shocks like entertainment restrictions, and continuous shocks like trade controls). We find that there are significant differences in the shock absorption capability of a country, that capability is not related to the magnitude of the shock, but related to the type of shock and the industrial structure.
Journal: Emerging Markets Finance and Trade
Pages: 3554-3561
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2020.1854723
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1854723
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Template-Type: ReDIF-Article 1.0
Author-Name: Min Liu
Author-X-Name-First: Min
Author-X-Name-Last: Liu
Author-Name: Wei-Chong Choo
Author-X-Name-First: Wei-Chong
Author-X-Name-Last: Choo
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: The Response of the Stock Market to the Announcement of Global Pandemic
Abstract: 
 This research aims at investigating the response of the stock market to the WHO announcement on 11th of March 2020 which officially declares the spread of the COVID-19 virus as a global pandemic. A total of 77 countries’ major indices have been examined by this research. The results show that (1) the pandemic announcement provides considerable negative shock on the global stock market; (2) country with different income presents a different response to the announcement. In general, the stock market in higher-income country tends to be overreacted at the beginning and bounds back more rapidly than lower-income country.
Journal: Emerging Markets Finance and Trade
Pages: 3562-3577
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2020.1850441
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1850441
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:15:p:3562-3577




Template-Type: ReDIF-Article 1.0
Author-Name: Guosong Wu
Author-X-Name-First: Guosong
Author-X-Name-Last: Wu
Author-Name: Boxian Yang
Author-X-Name-First: Boxian
Author-X-Name-Last: Yang
Author-Name: Ningru Zhao
Author-X-Name-First: Ningru
Author-X-Name-Last: Zhao
Title: Herding Behavior in Chinese Stock Markets during COVID-19
Abstract: 
 This paper investigates herding behavior in the Chinese stock markets during the COVID-19 pandemic. We find that herding behavior is significantly lower than usual in Chinese stock markets during the COVID-19 period. Furthermore, we explore herding behavior under extreme market conditions induced by COVID-19. We find that herding behavior is more pronounced for upside market movement, lower market trading volume, and lower market volatility caused by COVID-19. These results are important for investors and regulators to enhance their understanding of stock markets and the financial effects of the COVID-19 pandemic.
Journal: Emerging Markets Finance and Trade
Pages: 3578-3587
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2020.1855138
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1855138
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Handle: RePEc:mes:emfitr:v:56:y:2020:i:15:p:3578-3587




Template-Type: ReDIF-Article 1.0
Author-Name: Meng Qin
Author-X-Name-First: Meng
Author-X-Name-Last: Qin
Author-Name: Xiuyan Liu
Author-X-Name-First: Xiuyan
Author-X-Name-Last: Liu
Author-Name: Xiaoxue Zhou
Author-X-Name-First: Xiaoxue
Author-X-Name-Last: Zhou
Title: COVID-19 Shock and Global Value Chains: Is There a Substitute for China?
Abstract: 
 COVID-19 has had a worldwide impact. The consensus is that the sudden pause of global production and the shrinking international trade will contract the global economy. This study explores the short-term impact of the COVID-19 shock on global value chains (GVC), especially considering China’s production-capacity damage. Findings suggest that downstream countries and sectors suffer more from China’s production disruption than upstream ones. The Most impacted countries are the United States, South Korea, Japan, and Germany; while the most-affected sectors include electronic and optical equipment, textiles, machinery, manufacturing, and wholesale trade. It is found that China is too important in GVC to be substituted for in the current world economy.
Journal: Emerging Markets Finance and Trade
Pages: 3588-3598
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2020.1855137
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1855137
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Template-Type: ReDIF-Article 1.0
Author-Name: Qianying She
Author-X-Name-First: Qianying
Author-X-Name-Last: She
Author-Name: Ying Yu
Author-X-Name-First: Ying
Author-X-Name-Last: Yu
Author-Name: Kai Wu
Author-X-Name-First: Kai
Author-X-Name-Last: Wu
Title: Is “Born Global” a Viable Market Entry Mode for the Internationalization of SMEs? Evidence from China before COVID-19
Abstract: 
 This study considers whether “born global (BG)” status aids the financial performance of small and medium-sized enterprises (SMEs). Using panel regression models tracking Chinese listed companies, it finds a positive relationship between use of the BG model and firm performance. Also, that location influences firms, particularly those from the epicenter of the COVID-19 outbreak, which are more likely to choose BG as their international market entry mode. The study also finds that research and development investment is important for BGs, size is less so. These findings may aid economic recovery after COVID-19.
Journal: Emerging Markets Finance and Trade
Pages: 3599-3612
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2020.1854720
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1854720
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Template-Type: ReDIF-Article 1.0
Author-Name: Chang Zhao
Author-X-Name-First: Chang
Author-X-Name-Last: Zhao
Author-Name: Ziwei Liu
Author-X-Name-First: Ziwei
Author-X-Name-Last: Liu
Author-Name: Yibing Ding
Author-X-Name-First: Yibing
Author-X-Name-Last: Ding
Title: How COVID-induced Uncertainty Influences Chinese Firms’ OFDI Binary Margins
Abstract: 
 China’s economic policy uncertainty (EPU) and firms’ outward foreign direct investment (OFDI) research operates at the unitary level and lacks the structural foundations of binary margins. Thus, given the COVID-19 pandemic, this study employs the gravity model to examine the impact of China’s EPU on firms’ OFDI binary margins, using data from the first quarter of 2012 to the third quarter of 2020. Accordingly, China’s EPU inhibits extensive and intensive margins of firms’ OFDI significantly. Moreover, COVID-induced EPU has no significant impact on the OFDI intensive margin but positively impacts the extensive margin, indicating the motivation for diversifying investment risks.
Journal: Emerging Markets Finance and Trade
Pages: 3613-3625
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2020.1855139
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1855139
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Template-Type: ReDIF-Article 1.0
Author-Name: Jie Li
Author-X-Name-First: Jie
Author-X-Name-Last: Li
Author-Name: Quanyun Song
Author-X-Name-First: Quanyun
Author-X-Name-Last: Song
Author-Name: Changyan Peng
Author-X-Name-First: Changyan
Author-X-Name-Last: Peng
Author-Name: Yu Wu
Author-X-Name-First: Yu
Author-X-Name-Last: Wu
Title: COVID-19 Pandemic and Household Liquidity Constraints: Evidence from Micro Data
Abstract: 
 This article provides an analysis of the impact of the pandemic on household liquidity constraints using the China Household Finance Survey (CHFS) data. We find that households’ liquidity constraints become serious after the outbreak of COVID-19. Households’ likelihood of liquidity constraints increases with the severity of the pandemic, mainly due to the COVID-19 pandemic shock to employment and household income. Meanwhile, the deterioration of households’ liquidity significantly increases their saving willingness and decreases their consumption.
Journal: Emerging Markets Finance and Trade
Pages: 3626-3634
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2020.1854721
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1854721
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Template-Type: ReDIF-Article 1.0
Author-Name: Yingwei Han
Author-X-Name-First: Yingwei
Author-X-Name-Last: Han
Author-Name: Ping Li
Author-X-Name-First: Ping
Author-X-Name-Last: Li
Author-Name: Jie Li
Author-X-Name-First: Jie
Author-X-Name-Last: Li
Author-Name: Sanmang Wu
Author-X-Name-First: Sanmang
Author-X-Name-Last: Wu
Title: Robust Portfolio Selection Based on Copula Change Analysis
Abstract: 
 In this article, we construct a robust portfolio selection model based on dynamic copulas. We first use a type of dynamic copula, which contains copulas with time-varying parameters or sequence of copulas, to characterize the dynamic dependence between financial assets. Then, we use it for portfolio selection based on worst-case Conditional Value-at-Risk (WCVaR). In the empirical part we choose four representative assets from Chinese market to construct a macro asset allocation of portfolio and make the performance analysis. Results show that our method performs the best in out-of-sample tests when considering the dynamic dependence between assets and the uncertainty in the estimated model.
Journal: Emerging Markets Finance and Trade
Pages: 3635-3645
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1567262
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1567262
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Template-Type: ReDIF-Article 1.0
Author-Name: Jongseok Lee
Author-X-Name-First: Jongseok
Author-X-Name-Last: Lee
Author-Name: Seungwon Yu
Author-X-Name-First: Seungwon
Author-X-Name-Last: Yu
Title: Does External Monitoring Substitute for or Complement Internal Monitoring by Corporate Board?–Evidence From Korean State-owned Enterprises
Abstract: 
 Numerous studies have investigated whether regulation substitutes for or complements internal governance. The results have been inconclusive due to their over reliance on agency theory and extensive use of demographic proxy variables to real board activities. We empirically investigate the relationship between government performance evaluation (GPEs) and internal monitoring by SOE boards in the context of Korean state-owned enterprises (SOEs), overcoming the limitations of existing empirical studies. This analysis is enabled by data collected from the 1,525 board minutes of 170 Korean SOEs. Our prior expectation is a substitutive relationship. First, the similarity of GPE and internal monitoring by the board makes the relative cost of internal monitoring more expensive. Second, GPEs only reward managers, leaving outside directors unpaid. The empirical results are consistent with our expectation, and indicate that even in heavily regulated SOEs, internal imperatives outweigh institutional pressure. Hence, policy makers should carefully design GPEs so as not to crowd-out the potential benefit of internal monitoring by SOE boards.
Journal: Emerging Markets Finance and Trade
Pages: 3646-3661
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1644162
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1644162
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Template-Type: ReDIF-Article 1.0
Author-Name: Badri Narayan Rath
Author-X-Name-First: Badri Narayan
Author-X-Name-Last: Rath
Author-Name: Bhushan Praveen Jangam
Author-X-Name-First: Bhushan Praveen
Author-X-Name-Last: Jangam
Title: Is There Any Linkage between Sectoral Capital-labour Ratios, Total Factor Productivity, and Wages?
Abstract: 
 This paper investigates the relationship between sectoral capital-labor ratios, total factor productivity (TFP) and wages based on the contemporary Balassa-Samuelson model. To proceed, first, we identify a tradable and nontradable sector using an average of export to value added ratio for a group of developed and developing countries over the period 2001 to 2014. After accounting for cross-sectional dependence in the data, we find strong evidence that TFP of the tradable sector and wages significantly determines sectoral capital-labor ratios in both developed and developing countries. The long-run elasticities show that improvement in TFP declines the capital-labor ratios, whereas wages increase the capital-labor ratios in both tradable and nontradable sectors across developed and developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 3662-3677
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2020.1784140
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1784140
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Template-Type: ReDIF-Article 1.0
Author-Name: Anjum Siddiqui
Author-X-Name-First: Anjum
Author-X-Name-Last: Siddiqui
Author-Name: Haider Mahmood
Author-X-Name-First: Haider
Author-X-Name-Last: Mahmood
Author-Name: Dimitris Margaritis
Author-X-Name-First: Dimitris
Author-X-Name-Last: Margaritis
Title: Oil Prices and Stock Markets during the 2014–16 Oil Price Slump: Asymmetries and Speed of Adjustment in GCC and Oil-Importing Countries
Abstract: 
 We assess the effect of the oil price slump of 2014–2016 on the stock markets of the GCC countries and the four largest oil importers: China, Japan, India, and South Korea. We find that compared to the pre-slump period negative oil price changes had larger effects on equity prices in oil exporting countries, whereas positive oil price innovations had larger effects on oil importers. We also observed intertemporal symmetry switching in GCC countries and an increase in the speed of adjustment of equity prices during the slump for both oil importers and exporters from which we infer a time varying relationship between oil and equity prices.
Journal: Emerging Markets Finance and Trade
Pages: 3678-3708
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1570497
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1570497
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Template-Type: ReDIF-Article 1.0
Author-Name: Bin Qiu
Author-X-Name-First: Bin
Author-X-Name-Last: Qiu
Author-Name: Kuntal K. Das
Author-X-Name-First: Kuntal K.
Author-X-Name-Last: Das
Author-Name: W. Robert Reed
Author-X-Name-First: W. Robert
Author-X-Name-Last: Reed
Title: The Effect of Exchange Rates on Chinese Trade: A Dual Margin Approach
Abstract: 
 Previous studies investigating the effect of exchange rate changes on a country’s exports have found little evidence that exchange rates matter. This “Exchange Rate Disconnect Puzzle” may stem from the fact that studies have mostly focused on aggregate data. Using HS-6 digit product-level data for Chinese exports, we analyze the effect of real exchange rate (RER) as well as the volatility of RER of the Chinese RMB. By decomposing China’s exports into its “extensive” and “intensive margins,” we find that RER volatility significantly impacts Chinese exports via both the margins. RER volatility increases the uncertainty and deters new firms from entering the market. As less firms operate, the export share of the existing firms increase. The overall effect of this volatility is slightly positive. We find that these effects are dominant for the minor trading partners of China compared to its major trading partners. We find weak evidence that RER depreciation affects China’s exports via the extensive margin.
Journal: Emerging Markets Finance and Trade
Pages: 3709-3731
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1570842
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1570842
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Template-Type: ReDIF-Article 1.0
Author-Name: Andrey Polbin
Author-X-Name-First: Andrey
Author-X-Name-Last: Polbin
Author-Name: Anton Skrobotov
Author-X-Name-First: Anton
Author-X-Name-Last: Skrobotov
Author-Name: Andrey Zubarev
Author-X-Name-First: Andrey
Author-X-Name-Last: Zubarev
Title: How the oil price and other factors of real exchange rate dynamics affect real GDP in Russia
Abstract: 
 This article studies the main sources of macroeconomic fluctuations in Russia. We use SVARX approach with long-run restrictions to identify an oil price shock, a nominal shock and two types of productivity shocks. A specific Balassa–Samuelson-type productivity shock differs from a general productivity shock in its ability to affect real exchange rate in the long run. We found that the Balassa–Samuelson-type shocks account for a significant part (about a half of all fluctuations) of real exchange rate movements, which also affected real GDP dynamics. Oil price dynamics was the most important source of real GDP and real exchange rate fluctuations, but our alternative specification says that global demand shocks seem to be responsible for more fluctuations of Russian GDP than oil market–specific shocks.
Journal: Emerging Markets Finance and Trade
Pages: 3732-3745
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1573667
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1573667
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Template-Type: ReDIF-Article 1.0
Author-Name: Christian Senga
Author-X-Name-First: Christian
Author-X-Name-Last: Senga
Author-Name: Danny Cassimon
Author-X-Name-First: Danny
Author-X-Name-Last: Cassimon
Title: Spillovers in Sub-Saharan Africa’s Sovereign Eurobond Yields
Abstract: 
 This study investigates the possibility of spillovers among Sub-Saharan African (SSA) eurobonds from January 2015 to June 2017 using secondary market yields. Our results indicate significant contagion effects among these bonds, effects that prove sensitive to major economic events and news announcements. They also suggest that less resilient economies transmit more to and receive less spillovers from their peers. SSA eurobond issuers can therefore increase their influence over the performance of their securities on secondary markets by mitigating their vulnerability to these effects. Besides strong macroeconomic fundamentals, an improvement in transparency and information disclosure is required in order to curb the asymmetry of information underlying investors’ behavior-based spillovers and contagion, which supports to a certain extent the market discipline hypothesis in the case of SSA eurobonds.
Journal: Emerging Markets Finance and Trade
Pages: 3746-3762
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1575724
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1575724
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Template-Type: ReDIF-Article 1.0
Author-Name: Toyoung Kim
Author-X-Name-First: Toyoung
Author-X-Name-Last: Kim
Author-Name: Tong Suk Kim
Author-X-Name-First: Tong Suk
Author-X-Name-Last: Kim
Author-Name: Yuen Jung Park
Author-X-Name-First: Yuen Jung
Author-X-Name-Last: Park
Title: Cross-Sectional Expected Returns and Predictability in the Korean Stock Market
Abstract: 
 We combine the anomaly variables having significant predictive power for returns to estimate expected returns and investigate the cross-sectional predictability of the return estimates in the Korean stock market. The predictive slope from regressions of estimates on realized returns is 0.79 and strongly significant. The long–short portfolio strategy based on expected returns yields significantly positive excess returns, even relative to Fama and French five-factor model or Hou, Xue, and Zhang q-factor model. The high-minus-low spreads for the portfolios of the expected returns have a significant alpha after controlling for the three Fama–French factors, as well as each anomaly factor.
Journal: Emerging Markets Finance and Trade
Pages: 3763-3784
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1576126
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1576126
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Template-Type: ReDIF-Article 1.0
Author-Name: Ning Ding
Author-X-Name-First: Ning
Author-X-Name-Last: Ding
Author-Name: Hung-Gay Fung
Author-X-Name-First: Hung-Gay
Author-X-Name-Last: Fung
Author-Name: Jingyi Jia
Author-X-Name-First: Jingyi
Author-X-Name-Last: Jia
Title: Shadow Banking, Bank Ownership, and Bank Efficiency in China
Abstract: 
 This study uses 15 years of bank data and a one-stage stochastic frontier analysis framework to examine how shadow banking affects the profit and cost efficiency of Chinese banks. Our results indicate that shadow banking is negatively related to both profit and cost efficiency and positively related to earnings volatility, credit risk and liquidity risk of the Chinese banks. In examining the performance of foreign banks with that of local Chinese city commercial banks, we find that foreign banks in China are less profit- and cost-efficient, supporting the home-field-advantage hypothesis that domestic banks are more efficient than foreign banks.
Journal: Emerging Markets Finance and Trade
Pages: 3785-3804
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1579710
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1579710
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Template-Type: ReDIF-Article 1.0
Author-Name: Guat-Khim Hooy
Author-X-Name-First: Guat-Khim
Author-X-Name-Last: Hooy
Author-Name: Chee-Wooi Hooy
Author-X-Name-First: Chee-Wooi
Author-X-Name-Last: Hooy
Author-Name: Hong-Kok Chee
Author-X-Name-First: Hong-Kok
Author-X-Name-Last: Chee
Title: Ultimate Ownership, Control Mechanism, and Firm Performance: Evidence from Malaysian Firms
Abstract: 
 This study analyses the effects of corporate ownership on Malaysian firm performance addressing issues on multiple control chains mechanism. In the context of Malaysian listed firms, ultimate ownership should be more appropriately reflecting the corporate ownership structure in Malaysia. Based on sample data 2001–2012, we found evidence of a nonlinear ownership–performance relationship following is inverse U shaped. Further test based on ownership identity showed that firms controlled by a foreign ultimate owner perform significantly better than other local firms. In terms of the control mechanism, we found that the use of multiple control chains by an ultimate owner has a negative impact on firm performance. Additionally, we found an interaction effect between ownership identity and control mechanism on firm performance. It appears that the adverse effect of multiple control chains is more pronounced for foreign firms.
Journal: Emerging Markets Finance and Trade
Pages: 3805-3828
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1584101
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1584101
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Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Asif Khan
Author-X-Name-First: Muhammad Asif
Author-X-Name-Last: Khan
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Junyi Xiang
Author-X-Name-First: Junyi
Author-X-Name-Last: Xiang
Author-Name: Jian Zhang
Author-X-Name-First: Jian
Author-X-Name-Last: Zhang
Title: Impact of Institutional Quality on Financial Development: Cross-Country Evidence based on Emerging and Growth-Leading Economies
Abstract: 
 This study investigates the impact of institutional quality (IQ) on the financial development (FD) of 15 emerging and growth-leading economies (EAGLEs). We show that an institutional framework can efficiently handle ethnic fragmentation (ETHF) and can be a source of enhanced FD. The 2SLS results obtained by using ETHF as an instrument of IQ are highly consistent. We also perform three cross-sectional tests and find that openness, national culture, and economic growth significantly moderate FD through their positive interaction with IQ. Our results are robust across two measures of IQ and alternative estimation techniques as well as shed light on the crucial role of institutions in driving the FD of EAGLEs.
Journal: Emerging Markets Finance and Trade
Pages: 3829-3845
Issue: 15
Volume: 56
Year: 2020
Month: 12
X-DOI: 10.1080/1540496X.2019.1588725
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1588725
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Template-Type: ReDIF-Article 1.0
Author-Name: Vo Hong Duc
Author-X-Name-First: Vo Hong
Author-X-Name-Last: Duc
Title: Guest Editor’s Introduction - Exchange Rate Pass-Through, Fiscal Decentralization, and the Gender Wealth Gap: Policy Implications for Vietnam
Journal: Emerging Markets Finance and Trade
Pages: 1-4
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2020.1857145
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1857145
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Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Van Phuc
Author-X-Name-First: Nguyen Van
Author-X-Name-Last: Phuc
Author-Name: Vo Hong Duc
Author-X-Name-First: Vo Hong
Author-X-Name-Last: Duc
Title: Macroeconomics Determinants of Exchange Rate Pass-Through: New Evidence from the Asia-Pacific Region
Abstract: 
 Some recent studies observe an increasing degree of exchange rate pass-through (ERPT) to domestic prices, which has raised questions about the nature of the incompleteness and decline in pass-through. This article reexamines the degree of ERPT to the import, producer, and consumer price indices in Australia, New Zealand, Japan, and Korea in the Asia-Pacific region using up-to-date data, with several important findings. First, we reveal that ERPT to domestic prices follows the distribution chain, in that exchange rate movements alter import prices in the first stage and then producer and consumer prices in the second stage. Second, we offer valid evidence of an increase in ERPT to import prices after the global financial crisis in Japan, Korea, and New Zealand and of a relatively stable ERPT in Australia. Third, the changes in ERPT elasticities are most affected by macroeconomic determinants such as inflation volatility, interest rates, and trade openness, but this varies considerably across the surveyed countries and the three price indices. All our findings make a significant contribution to the empirical literature on ERPT and have policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 5-20
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1534682
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1534682
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Template-Type: ReDIF-Article 1.0
Author-Name: Vo The Anh
Author-X-Name-First: Vo The
Author-X-Name-Last: Anh
Author-Name: Le Thai Thuong Quan
Author-X-Name-First: Le Thai Thuong
Author-X-Name-Last: Quan
Author-Name: Nguyen Van Phuc
Author-X-Name-First: Nguyen Van
Author-X-Name-Last: Phuc
Author-Name: Ho Minh Chi
Author-X-Name-First: Ho Minh
Author-X-Name-Last: Chi
Author-Name: Vo Hong Duc
Author-X-Name-First: Vo Hong
Author-X-Name-Last: Duc
Title: Exchange Rate Pass-Through in ASEAN Countries: An Application of the SVAR Model
Abstract: 
 Central banks in emerging countries generally question the effect of exchange rate pass-through into price levels in the national economy in order to implement monetary policy effectively. This article is conducted in response to these macroeconomic concerns. Five founding members of the Association of Southeast Asian Nations (ASEAN), for which all the required data are available, are included in our sample with up-to-date time-series data until 2016. We use a structural vector autoregressive model in this study. Several interesting findings emerged from our study. First, we find incomplete exchange rate pass-through to domestic prices, and the producer price index is found to be affected more than the consumer price index. Second, the exchange rate shocks are found to have an immediate effect within one quarter on producer prices in all the countries. Third, variance in domestic prices is found to be caused mainly by shocks from oil prices, output gaps, and exchange rates, with some differences in the extent of effects across countries. Fourth, in these five countries, interest rates appear to play a minor role in explaining the inflation rate. We recommend that policy makers pursuing price stability in the economy focus on exchange rates and interest rate policy with great caution.
Journal: Emerging Markets Finance and Trade
Pages: 21-34
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1474737
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1474737
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Template-Type: ReDIF-Article 1.0
Author-Name: Van Thi Hong Loan
Author-X-Name-First: Van Thi Hong
Author-X-Name-Last: Loan
Title: Public Relations in Emerging Markets: Empirical Evidence in Vietnam
Abstract: 
 For foreign companies, doing business in emerging markets such as Vietnam is always challenging because of the cultural differences among countries. The article provides empirical evidence on the development of the theory of relationships in public relations in Vietnam. This exploratory study finds that the way to practice public relations in Vietnam is affected by the particular cultural characteristics of the country. The study indicates that the relational context is viewed from the perspective of meaning of the relationship in the way in which communications and public relations are carried out, rather than the relationships developed as part of communications exchange.
Journal: Emerging Markets Finance and Trade
Pages: 35-46
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1491839
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1491839
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Template-Type: ReDIF-Article 1.0
Author-Name: Minh Kieu Nguyen
Author-X-Name-First: Minh Kieu
Author-X-Name-Last: Nguyen
Author-Name: Dinh Nghi Le
Author-X-Name-First: Dinh Nghi
Author-X-Name-Last: Le
Title: Return Spillover from the US and Japanese Stock Markets to the Vietnamese Stock Market: A Frequency-Domain Approach
Abstract: 
 Using a frequency-domain analysis, this article examines return spillover from the US and Japanese stock markets to the Vietnamese stock market. We use daily data from the S&P 500, the Nikkei 225, and Vietnam Stock Index (VN-Index) from January 1, 2012, to December 31, 2015. A Granger-causality test is used to examine the return spillover, and the test for causality in the frequency domain by (Breitung and Candelon 2006) is used to examine the return spillover at different frequencies. The results show that significant return spillover occurs from the US to the Vietnamese stock market at all frequencies and from the Japanese to the Vietnamese stock market at higher frequencies—evidence that return spillover effects are not the same at different frequencies.
Journal: Emerging Markets Finance and Trade
Pages: 47-58
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1525357
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1525357
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Template-Type: ReDIF-Article 1.0
Author-Name: Hien T. N. Huynh
Author-X-Name-First: Hien T. N.
Author-X-Name-Last: Huynh
Author-Name: Phuong V. Nguyen
Author-X-Name-First: Phuong V.
Author-X-Name-Last: Nguyen
Author-Name: Hoa D. X. Trieu
Author-X-Name-First: Hoa D. X.
Author-X-Name-Last: Trieu
Author-Name: Khoa T. Tran
Author-X-Name-First: Khoa T.
Author-X-Name-Last: Tran
Title: Productivity Spillover from FDI to Domestic Firms across Six Regions in Vietnam
Abstract: 
 The article uses the latest firm-level data in Vietnam, from 2011 to 2015, to find fresh evidence on productivity spillovers from foreign direct investment across six regions in Vietnam. The finding indicates negative horizontal spillover as the most dominant channel in all regions. The positive backward spillover is compensated for by the large magnitude of negative horizontal and forward spillovers. Besides, absorptive capability really matters in productivity spillovers. Furthermore, total factor productivity growth at domestic firms within 100 sq. km. of foreign capital–intensive and administrative centers is similar to that of external firms under the effects of productivity spillover.
Journal: Emerging Markets Finance and Trade
Pages: 59-75
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1562892
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562892
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Template-Type: ReDIF-Article 1.0
Author-Name: Minh Ha Nguyen
Author-X-Name-First: Minh Ha
Author-X-Name-Last: Nguyen
Author-Name: Quan Minh Quoc Binh
Author-X-Name-First: Quan Minh Quoc
Author-X-Name-Last: Binh
Title: Entry Mode Choice of FDI Firms in Emerging Markets: An Evidence from Vietnam
Abstract: 
 The purpose of this article is to analyze and explain the entry mode choice of foreign investors when entering Vietnam. One reason for the difficulties of previous research in entry mode topics is the lack of data since data regarding FDI firms are rather difficult to collect. Using a unique data of 5236 foreign firms who made investments in Vietnam during the period from 2005 to 2016, this study contributes to the overall understanding of entry mode choice in emerging markets at firm level. The statistical results indicate that type of ownership, industry sector, and investment capital are positively associated with Equity Joint Ventures (EJV) and negatively with its Wholly Owned Subsidiaries (WOS) choices. In addition, project orientation, project duration, adjustment of project scale, investors from Africa and Latin America, and year of project establishment variable influence positively the MNE’s WOS choice and negatively its EJV choice.
Journal: Emerging Markets Finance and Trade
Pages: 76-84
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1496423
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1496423
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Template-Type: ReDIF-Article 1.0
Author-Name: Huu Thanh Vu
Author-X-Name-First: Huu Thanh
Author-X-Name-Last: Vu
Author-Name: Nguyen Minh Ha
Author-X-Name-First: Nguyen Minh
Author-X-Name-Last: Ha
Title: A Study on the Relationship Between Diversification and Firm Performance Using the GSEM Method
Abstract: 
 This study adds another perspective on corporate diversification and asset investment diversification, including related and unrelated asset investment diversification, and examines the relationship between this diversification, business diversification, and performance. Because business diversification includes related business and unrelated business diversification, we developed a hypothesis that related business acts as a mediating factor between related asset investment diversification and performance. Similarly, unrelated business plays a mediating role in the relationship between asset diversification and performance. We applied a general linear structural model (GSEM) to panel data on 470 firms listed on the Vietnamese stock exchange from 2008 to 2015. The empirical evidence demonstrates that related assets increase their performance through the mediating effects of related business. By contrast, unrelated assets show an insignificant impact on performance, and unrelated business does not play a mediating role between asset diversification and performance.
Journal: Emerging Markets Finance and Trade
Pages: 85-107
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1582413
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1582413
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Template-Type: ReDIF-Article 1.0
Author-Name: Thach Ngoc Pham
Author-X-Name-First: Thach Ngoc
Author-X-Name-Last: Pham
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc Hong
Author-X-Name-Last: Vo
Title: Aging Population and Economic Growth in Developing Countries: A Quantile Regression Approach
Abstract: 
 The economic effects and consequences of an aging population on economic growth in terms of productivity and demand have attracted great attention from policy makers, particular in emerging countries. This study examines the effect of an aging population on economic growth in 84 developing countries in the period 1971–2015, using panel fixed effects and quantile regression. The results confirm a negative effect on economic growth in the long run from having a high share of young people (14 years old and younger). However, in the long run, a positive relationship exists between the share of those 65 and older and economic performance. The quantile regression results confirm the importance of an aging population on economic growth at most percentiles. However, from lower to higher percentiles, the estimated magnitudes differ.
Journal: Emerging Markets Finance and Trade
Pages: 108-122
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1698418
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1698418
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Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Cong Thang
Author-X-Name-First: Nguyen Cong
Author-X-Name-Last: Thang
Author-Name: Vo The Anh
Author-X-Name-First: Vo The
Author-X-Name-Last: Anh
Author-Name: Pham Ngoc Thach
Author-X-Name-First: Pham Ngoc
Author-X-Name-Last: Thach
Author-Name: Do Thanh Trung
Author-X-Name-First: Do Thanh
Author-X-Name-Last: Trung
Author-Name: Vo Hong Duc
Author-X-Name-First: Vo Hong
Author-X-Name-Last: Duc
Title: Gender-Based Attitudes toward Income Inequality in the Asia-Pacific Region
Abstract: 
 Sustainable economic growth and development are generally associated with a harmonious society, where achievements from national economic growth benefit most, if not all, people. However, income inequality appears to exist regardless of the level of a country’s economic growth. As such, attitudes toward income inequality and its determinants in the process of achieving a harmonious society have attracted great attention from policy makers around the globe. However, the issue has not been thoroughly investigated in emerging markets. In addition, gender-based attitudes have largely been ignored. This study is conducted to examine attitudes toward income inequality in the Asia-Pacific region, with a focus on gender. The sample comprises 19 emerging and advanced countries, for which data were available. Various scenarios in relation to gender and income levels are considered. Findings from this study indicate that both emerging and advanced countries in the region have gender-based attitudes toward income inequality. In particular, social class appears to be a key and fundamental determinant across all countries in the region, especially in emerging markets, regardless of income level.
Journal: Emerging Markets Finance and Trade
Pages: 123-137
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1562894
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1562894
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Template-Type: ReDIF-Article 1.0
Author-Name: Vy Thi Tuong Nguyen
Author-X-Name-First: Vy Thi Tuong
Author-X-Name-Last: Nguyen
Author-Name: Loan Thanh Le
Author-X-Name-First: Loan Thanh
Author-X-Name-Last: Le
Title: ‘Without United States’ Trans-Pacific Partnership Agreement and Vietnam’s Apparel Industry
Abstract: 
 This study investigates the impacts of the ‘without-US’ Trans-Pacific Partnership (TPP) agreement on Vietnam’s apparel industry with two scenarios: (i) the TPP11 without the US and (ii) the likely killed TPP with Vietnam’s participation into the alternative free trade agreement (FTA) of the Regional Comprehensive Economic Partnership (RCEP). The impacts are analyzed through two main policies: tariff elimination and rule of origin, by using the ex-ante partial equilibrium model “Global Simulation Analysis of Industry-Level Trade Policy” (GSIM). The result shows that when the US withdraws from the TPP, export value and trade welfare contributed by the Vietnam’s apparel industry would remarkably reduce in comparison with the scenario of the full TPP12. However, if Vietnam joins the RCEP, the ability for Vietnam to comply with the origin regulation is quite feasible, which can slightly promote Vietnam’s apparel export into this FTA.
Journal: Emerging Markets Finance and Trade
Pages: 138-162
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1700362
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1700362
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Template-Type: ReDIF-Article 1.0
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc
Author-X-Name-Last: Hong Vo
Author-Name: Thuan Nguyen
Author-X-Name-First: Thuan
Author-X-Name-Last: Nguyen
Author-Name: Dao Thi-Thieu Ha
Author-X-Name-First: Dao Thi-Thieu
Author-X-Name-Last: Ha
Author-Name: Ngoc Phu Tran
Author-X-Name-First: Ngoc Phu
Author-X-Name-Last: Tran
Title: The Disparity of Revenue and Expenditure among Subnational Governments in Vietnam
Abstract: 
 Fiscal decentralization has attracted attention from government, academic studies, and international institutions with the aims of enhancing economic growth in recent years. One of the difficult issues is to measure satisfactorily the degree of fiscal decentralization across countries. The fiscal decentralisation index, the first of its kind, was recently developed in 2010. This newly developed index accounts for both fiscal autonomy and fiscal importance of subnational governments. We argue that while Vo’s index is an advance on current practice, it is still not perfect as it assumes there is no dispersion of revenue and expenditure across regions. In response to this weakness, fiscal entropy and fiscal inequality measures are developed using information theory. It is shown how fiscal inequality can be decomposed regionally and hierarchically. These ideas are illustrated with an emerging country data—Vietnam—pertaining to the national, provincial, and local levels of governments.
Journal: Emerging Markets Finance and Trade
Pages: 163-174
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1605896
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1605896
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Template-Type: ReDIF-Article 1.0
Author-Name: Thoa T. K. Tu
Author-X-Name-First: Thoa T. K.
Author-X-Name-Last: Tu
Author-Name: Uyen T. U. Nguyen
Author-X-Name-First: Uyen T. U.
Author-X-Name-Last: Nguyen
Title: State Ownership and the Relationship between Investment and Cash Flow: The Case of Vietnamese Listed Firms
Abstract: 
 The article examines the effect of state ownership on the relationship between investment and cash flow in Vietnam, a small transitional economy. Using a sample of companies listed on Vietnam’s stock exchanges, we find that the investment–cash flow relation for both state-owned and non-state-owned firms is U-shaped. In addition, state-owned companies have higher cash flow sensitivity of investment, which perhaps is due to their socioeconomic and political responsibilities, poor corporate governance, and agency problem. Moreover, the investment of high-growth companies, both with and without state ownership, has lower dependence on internal cash flow. Additionally, low-growth state-owned companies have higher cash flow sensitivity of investment than those without state ownership, suggesting inefficient investment by the former.
Journal: Emerging Markets Finance and Trade
Pages: 175-197
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1610874
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1610874
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Template-Type: ReDIF-Article 1.0
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc
Author-X-Name-Last: Hong Vo
Author-Name: Loan Thi-Hong Van
Author-X-Name-First: Loan Thi-Hong
Author-X-Name-Last: Van
Author-Name: Dai Binh Tran
Author-X-Name-First: Dai Binh
Author-X-Name-Last: Tran
Author-Name: Tan Ngoc Vu
Author-X-Name-First: Tan Ngoc
Author-X-Name-Last: Vu
Author-Name: Chi Minh Ho
Author-X-Name-First: Chi Minh
Author-X-Name-Last: Ho
Title: The Determinants of Gender Income Inequality in Vietnam: A Longitudinal Data Analysis
Abstract: 
 Despite a great effort from the Vietnamese government, women in Vietnam have generally been at the disadvantaged position to access education and development opportunities. As a result, the wage gaps between men and women exist. This study is conducted to investigate the gender income inequality in Vietnam in the 2004–2016 period using data from Vietnam Household Living Standards Surveys (VHLSS). The results indicate that the gender pay gap in Vietnam has decreased during the research period. Empirical findings also indicate that education, ethnicity, economic sectors, and geographic areas are main determinants causing wage differentials in Vietnam. Additionally, the gender pay gap, with the focus on the so-called “Within inequality”, is heterogeneous across the wage distribution using unconditional quantile regression approach. In particular, the gender pay gap is shown to be higher at the top and the bottom quantiles of the wage distribution, indicating that inequality is more severe among low-paid and high-paid wage earners. These findings suggest that the government‘s policies should focus on encouraging education and improving the national economy creating more jobs for women to reduce gender wage gap in Vietnam.
Journal: Emerging Markets Finance and Trade
Pages: 198-222
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1609443
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1609443
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Template-Type: ReDIF-Article 1.0
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc
Author-X-Name-Last: Hong Vo
Title: Portfolio Optimization and Diversification in China: Policy Implications for Vietnam and Other Emerging Markets
Abstract: 
 This article is conducted to examine risk, return, and portfolio optimization at the industry level in China over the period 2007–2016. On the ground of the classical Markowitz framework for portfolio optimization, the mean-semivariance optimization framework is established for China’s stock market at the industry level. Findings from this study indicate that healthcare sector plays a significant role among 10 industries in China on a stand-alone basis. In addition, a significant change of rankings among the sectors in term of risk is found when the mean-semivariance optimization framework is used. We also find that utilizing this new framework helps improve the optimal portfolios in relation to performance, measured by Sortino ratio, and diversification. A simulation technique, generally known as resampling method, is also utilized to check the robustness of the estimates. While the use of this resampling method appears not to improve the performance of optimal portfolios compared with the mean-semivariance framework for China, there is a remarkable advance in diversification of the optimal portfolios. Implications for investors and the governments in Vietnam and other emerging markets have emerged from the study.
Journal: Emerging Markets Finance and Trade
Pages: 223-238
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1659776
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1659776
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Template-Type: ReDIF-Article 1.0
Author-Name: Loan Thi-Hong Van
Author-X-Name-First: Loan Thi-Hong
Author-X-Name-Last: Van
Author-Name: Anh The Vo
Author-X-Name-First: Anh The
Author-X-Name-Last: Vo
Author-Name: Nhan Thien Nguyen
Author-X-Name-First: Nhan Thien
Author-X-Name-Last: Nguyen
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc Hong
Author-X-Name-Last: Vo
Title: Financial Inclusion and Economic GROWTH: An International Evidence
Abstract: 
 Policies on financial inclusion have attracted great attention from scholars, policymakers, and regulators, as financial inclusion has theoretically been acknowledged to have positive effect on economic growth. However, empirical evidence appears limited, especially for emerging markets. This article is conducted to provide a comprehensive insight between financial inclusion and economic growth in emerging markets. First, a multidimensional index is constructed so that a level of financial inclusion can be measured at the international level. Second, based on this newly developed index, the panel econometric technique is utilized to estimate the impact of financial inclusion on economic growth. Our finding supports a positive relationship between financial inclusion and economic growth. A stronger relationship is found for countries with low income and a lower degree of financial inclusion. Policy implications have been emerged that financial inclusion should be implemented for promoting economic growth and development in the emerging markets such as Vietnam.
Journal: Emerging Markets Finance and Trade
Pages: 239-263
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1697672
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1697672
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:1:p:239-263




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Cao
Author-X-Name-First: Wei
Author-X-Name-Last: Cao
Author-Name: Chaohui Jin
Author-X-Name-First: Chaohui
Author-X-Name-Last: Jin
Author-Name: Jingmei Zhao
Author-X-Name-First: Jingmei
Author-X-Name-Last: Zhao
Title: Spillover Effects of Import Trade Fluctuations for China and the US: A Global Perspective
Abstract: 
 This paper constructs an international trade network model to investigate the spillover effects of import decline in China and the US. Our results show that, first, research target countries can be divided into spillover blockers, absorbers, and amplifiers based on whether they transmit economic shocks. Second, for the same degree of decline in import in China and the US, export changes in the major world economies are affected more by the US than by China. In addition, the impact of import decline in the US on China is greater than that in China on the US. Meanwhile, China’s original economic shock could be amplified much more than that of the US. Third, in terms of the transmission of economic impact, Asian and European countries are largely affected, whereas countries in South America are least likely to be affected by economic shocks from China and the US.
Journal: Emerging Markets Finance and Trade
Pages: 264-284
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1672532
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1672532
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:1:p:264-284




Template-Type: ReDIF-Article 1.0
Author-Name: Zhe Ouyang
Author-X-Name-First: Zhe
Author-X-Name-Last: Ouyang
Author-Name: Xiaoqian Zhu
Author-X-Name-First: Xiaoqian
Author-X-Name-Last: Zhu
Author-Name: Yang Liu
Author-X-Name-First: Yang
Author-X-Name-Last: Liu
Author-Name: Peng Cheng
Author-X-Name-First: Peng
Author-X-Name-Last: Cheng
Title: How Does Firm and Board Chairman Celebrity Inﬂuence IPO Underpricing? Empirical Evidence from China
Abstract: 
 We explore the relationship between organizational celebrity, the board chairman’s celebrity and underpricing. Based on signaling theory, we ﬁnd that IPO underpricing is low when organizational celebrity or the board chairman’s celebrity is high. However, the negative association between board chairman celebrity and IPO underpricing pronounced when IPO ﬁrms show high performance. Using a sample of 289 initial public offerings over the period 2011–2016 in China, our results support these predictions. This study shows the importance of organizational celebrity and their leader’ celebrity in explaining variations in IPO underpricing.
Journal: Emerging Markets Finance and Trade
Pages: 285-295
Issue: 1
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1689811
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1689811
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Template-Type: ReDIF-Article 1.0
Author-Name: Honghai Yu
Author-X-Name-First: Honghai
Author-X-Name-Last: Yu
Author-Name: Pengfei Zhao
Author-X-Name-First: Pengfei
Author-X-Name-Last: Zhao
Author-Name: Wen Xiao
Author-X-Name-First: Wen
Author-X-Name-Last: Xiao
Author-Name: Libing Fang
Author-X-Name-First: Libing
Author-X-Name-Last: Fang
Title: Investing in Mutual Funds Using the Bayesian Framework: Evidence from China
Abstract: 
 We explore how to invest in the Chinese mutual fund market based on the Bayesian method. We extend the portfolio construction method by integrating additional information, such as nonbenchmark assets and longer-period historical data, and by incorporating investors’ prior beliefs about the mispricing rate and managerial skills. This study analyzes growth funds, value funds, and balanced funds in China and concludes that additional information can improve the accuracy of fund performance evaluation, which will assist the construction of a more effective fund portfolio. Furthermore, the empirical evidence shows that a fund portfolio constructed using the Bayesian method is effective in China’s mutual fund market, indicating that the Bayesian method can improve the performance of this kind of portfolio.
Journal: Emerging Markets Finance and Trade
Pages: 297-310
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1476234
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1476234
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:297-310




Template-Type: ReDIF-Article 1.0
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Dongtao Lin
Author-X-Name-First: Dongtao
Author-X-Name-Last: Lin
Author-Name: Jijia Fan
Author-X-Name-First: Jijia
Author-X-Name-Last: Fan
Author-Name: Xiaosu Li
Author-X-Name-First: Xiaosu
Author-X-Name-Last: Li
Author-Name: Pan Chen
Author-X-Name-First: Pan
Author-X-Name-Last: Chen
Title: Evaluation of Housing Price Control Policies Based on a Sensitivity Analysis and Nonstationary Markov Chain Simulation: Empirical Evidence from China
Abstract: 
 This study evaluates housing price control policies in China between 2006 and 2016. A panel regression is employed to diagnose the explicit effects of these policies on housing supply and demand, followed by a nonstationary Markov model and t-copula to assess the policy sensitivity of the real-estate sector and the banking sector. This paper presents two important discoveries. First, total social welfare, represented by the sector fundamentals, is extremely sensitive to even tiny shocks from policy adjustments. Second, the current policies effectively restrain the supply of housing but not housing demand. As a result, the current policies fail to achieve their intended outcome by, on the one hand, driving up housing prices with a declining supply of housing and stable demand and, on the other, harming total social welfare. The empirical economic conditions in China are consistent with our findings.
Journal: Emerging Markets Finance and Trade
Pages: 311-321
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1517644
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1517644
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:311-321




Template-Type: ReDIF-Article 1.0
Author-Name: Fumin Deng
Author-X-Name-First: Fumin
Author-X-Name-Last: Deng
Author-Name: Hui Zhu
Author-X-Name-First: Hui
Author-X-Name-Last: Zhu
Author-Name: Ying Huang
Author-X-Name-First: Ying
Author-X-Name-Last: Huang
Author-Name: Xuedong Liang
Author-X-Name-First: Xuedong
Author-X-Name-Last: Liang
Title: The Impact of Trade on Scale Efficiency in Grain and Oil-Bearing Plant Production in China
Abstract: 
 Taking advantage of annual data on the production of rice, wheat, maize (corn), soybeans, and oil-bearing plants in China, we calculate scale efficiencies of product yields and product output values from 1992 to 2016 using a variable return to scale–super efficiency model (VRS-SEM). The trade factors from supply and demand are verified using an error correction model (ECM). Apart from the description of different characteristics of products, the findings show the weak competiveness of grain and oil-bearing plants in international market, especially in soybean products as well as cost problems in scale production in the three major staple foods.
Journal: Emerging Markets Finance and Trade
Pages: 322-334
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1517645
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1517645
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:322-334




Template-Type: ReDIF-Article 1.0
Author-Name: Andrzej Cieślik
Author-X-Name-First: Andrzej
Author-X-Name-Last: Cieślik
Title: MNE Activity in Poland: Horizontal, Vertical or Both?
Abstract: 
 The purpose of this article is to validate empirically the theoretical predictions of the knowledge capital model of multinational enterprise and identify the reasons for undertaking international production in Poland. This model allows taking into account both horizontal and vertical reasons for foreign direct investment (FDI). The empirical implementation of the theoretical framework is based on the negative binomial model and the bilateral dataset covering 143 countries over the period 1995–2015 which yields a total of 3003 observations. In contrast to previous studies the actual data on differences in human capital per worker that come from the most recent edition of PennWorld Table 9.0 are employed as the measures of differences in relative factor endowments. The empirical evidence confirms the predictions of the knowledge capital model and points to the horizontal as well as vertical motives for undertaking FDI in Poland. In particular, our estimation results show that MNE activity in Poland is related to both differences in relative factor endowments and in market size which confirms the importance of both reasons for undertaking FDI in Poland. However, these reasons are different for different groups of parent countries.
Journal: Emerging Markets Finance and Trade
Pages: 335-347
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1549029
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1549029
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Template-Type: ReDIF-Article 1.0
Author-Name: HaiYue Liu
Author-X-Name-First: HaiYue
Author-X-Name-Last: Liu
Author-Name: YiXian Li
Author-X-Name-First: YiXian
Author-X-Name-Last: Li
Author-Name: Rui Yang
Author-X-Name-First: Rui
Author-X-Name-Last: Yang
Author-Name: XiaoPing Li
Author-X-Name-First: XiaoPing
Author-X-Name-Last: Li
Title: How Do Chinese Firms Perform Before and After Cross-Border Mergers and Acquisitions?
Abstract: 
 To evaluate the financial performance of Chinese cross-border mergers and acquisitions (M&As), this research examined 86 cross-border M&As from 2007 to 2012, which included the 5 years before and the 5 years after the merger dates. Eighty-one domestic M&As were also chosen as the control group to compare the performances of cross-border and domestic M&As. The difference in difference (DID) results revealed that, in general, the cross-border M&As did not improve the firms’ financial performances and that the domestic M&As performed better. The feasible generalized least squares (FGLS) regression results indicated that the CNY exchange rate appreciation, infrastructure，labor costs, formal institutional distances, and technological levels in the host countries are significantly related to post-merger performances over the long run, and firms that acquired resource-oriented foreign firms had better long-term financial performances; however, state-owned firms were more likely to have worse profitability after the cross-border M&As, and host countries located in “One Belt One Road” (OBOR) regions showed poorer post-merger performances. The study results could be of valuable assistance to Chinese firms considering future cross-border M&As.
Journal: Emerging Markets Finance and Trade
Pages: 348-364
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2018.1556636
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1556636
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Template-Type: ReDIF-Article 1.0
Author-Name: Feng Dai
Author-X-Name-First: Feng
Author-X-Name-Last: Dai
Author-Name: Ruixiang Liu
Author-X-Name-First: Ruixiang
Author-X-Name-Last: Liu
Author-Name: Shunfeng Song
Author-X-Name-First: Shunfeng
Author-X-Name-Last: Song
Title: Gains or Pains? Effects of US–China Trade on US Employment: Based on a WIOT Analysis from 2000 to 2014
Abstract: 
 This article examines the role of US–China trade in the changes of US employment. Through an input–output framework and structural decomposition analysis method, we decompose US employment and show the importance of all the determinants of employment in one place. The result shows that, over the period of 2000–2014, improvement in labor productivity was the dominant cause of US job losses, whereas only approximately 2% of the job decline was due to imports from China. The negative impact of imports from China for consumption demand is greater than for investment demand because imports from China for consumption demand have higher labor intensity. US employment depends on intermediate exports more than on final exports, and imports from China embody more services as intermediate inputs and, therefore, contribute indirectly to the employment of services in the US.
Journal: Emerging Markets Finance and Trade
Pages: 365-385
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1578208
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1578208
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:365-385




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyan Zhu
Author-X-Name-First: Xiaoyan
Author-X-Name-Last: Zhu
Author-Name: Yingqi He
Author-X-Name-First: Yingqi
Author-X-Name-Last: He
Title: Does Tourism Promote Economic Growth in the Ethnic Areas of China?
Abstract: 
 According to the tourism-led economic growth (TLEG) hypothesis, the development of tourism encourages economic growth. However, the effects of TLEG are not obvious in the areas of China predominantly populated by ethnic minority groups. The development of tourism might negatively affect factors of production because of local characteristics and hence impede economic growth. Panel data on twenty-nine provinces in China are examined to verify the TLEG theory in this study. The estimated generalized least squares (cross-section weights) method is applied to test the influence of tourism on human capital. Our empirical analysis shows that the development of tourism negatively affects human capital endogenously. Conclusions are provided at the end of this paper accordingly.
Journal: Emerging Markets Finance and Trade
Pages: 386-399
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1600503
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1600503
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:386-399




Template-Type: ReDIF-Article 1.0
Author-Name: Yuegang Song
Author-X-Name-First: Yuegang
Author-X-Name-Last: Song
Author-Name: Yaoguo Wu
Author-X-Name-First: Yaoguo
Author-X-Name-Last: Wu
Author-Name: Guoying Deng
Author-X-Name-First: Guoying
Author-X-Name-Last: Deng
Author-Name: Pengfei Deng
Author-X-Name-First: Pengfei
Author-X-Name-Last: Deng
Title: Intermediate Imports, Institutional Environment, and Export Product Quality Upgrading: Evidence from Chinese Micro-Level Enterprises
Abstract: 
 Based on matched data from the Chinese industrial enterprise database and General Administration of Customs (GAC) database for 2000–2013, this paper examines export manufacturers in the context of significantly varying institutional environments to investigate how intermediate imports and the institutional environment affect export product quality. The results show that, first, intermediate imports affect product quality through four channels: the competition effect, knowledge spillover effect, intermediate quality effect, and intermediate diversification effect. Second, improvement in the institutional environment has a direct and positive impact on product quality, as well as strengthening the effect of intermediate imports; in this sense, the two factors are complementary in influencing market share reallocation. Third, the investigation of the import duration impact on product quality from dynamic perspectives shows a U-shaped correlation. This paper provides a theoretical and practical basis for strengthening the international competitiveness of China’s export products and improving the regional institutional environment.
Journal: Emerging Markets Finance and Trade
Pages: 400-426
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1668765
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668765
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Template-Type: ReDIF-Article 1.0
Author-Name: Byoung-Jin Kim
Author-X-Name-First: Byoung-Jin
Author-X-Name-Last: Kim
Author-Name: Jin-Young Jung
Author-X-Name-First: Jin-Young
Author-X-Name-Last: Jung
Author-Name: Sung-Woo Cho
Author-X-Name-First: Sung-Woo
Author-X-Name-Last: Cho
Title: Listing Effect in Acquirer Returns and Economic Growth Uncertainty in the Target Country: The Case of Cross-border M&A from Emerging Economies
Abstract: 
 We empirically prove that the negative listing effect of mergers and acquisitions (M&A) is more pronounced in target countries with high gross domestic product (GDP) growth rate uncertainty than in countries without such uncertainty. We examine a sample of 343 non-financial firms that disclosed cross-border M&A between 2000 and 2019 in the Korea Exchange stock market and 49 countries where the target firms are located. We show that the listing effect caused by economic growth uncertainty in the target country is stronger for cross-border M&A during the global financial crisis or when the target firms are based in emerging countries.
Journal: Emerging Markets Finance and Trade
Pages: 427-443
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2020.1796625
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1796625
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:427-443




Template-Type: ReDIF-Article 1.0
Author-Name: Hongyan Geng
Author-X-Name-First: Hongyan
Author-X-Name-Last: Geng
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Author-Name: Hong Zhao
Author-X-Name-First: Hong
Author-X-Name-Last: Zhao
Title: The Effects of Going Public on Bank Risks: Evidence from China
Abstract: 
 Using data from China’s banks between 1995 and 2017, we employ propensity score matching and difference in differences approaches to investigate the effects of going public on bank risks, including insolvency risk, capital risk, liquidity risk, asset quality, credit risk, and prudential behavior, and obtain the following results. First, bank risks (except for insolvency risk) are improved after going public. Second, going public has stronger effects if a bank is listed on more than one stock exchange. Finally, both the single-listing effects and cross-listing effects of going public on bank risks are stronger in state-owned banks than in non-state-owned banks.
Journal: Emerging Markets Finance and Trade
Pages: 444-464
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1588726
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1588726
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:444-464




Template-Type: ReDIF-Article 1.0
Author-Name: Ting Ji
Author-X-Name-First: Ting
Author-X-Name-Last: Ji
Author-Name: Dongzhou Mei
Author-X-Name-First: Dongzhou
Author-X-Name-Last: Mei
Title: Export Diversification and Fiscal Procyclicality
Abstract: 
 This paper provides empirical evidence that more export diversification leads to less fiscal procyclicality, which is robust to different specifications and alternative measures after controlling for terms of trade, resource abundance, and institutional quality. We also find that countries that had previously left the fiscal procyclicality trap fell back again during the Great Recession and export structure was a highly correlated factor. We control for potential endogeneity with instrument variables and exploit within-country variations with panel data to further support our empirical findings. Altering fiscal procyclicality is a novel channel through which export structure affects economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 465-481
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1589446
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1589446
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:465-481




Template-Type: ReDIF-Article 1.0
Author-Name: Syed Riaz Mahmood Ali
Author-X-Name-First: Syed Riaz Mahmood
Author-X-Name-Last: Ali
Author-Name: Shaker Ahmed
Author-X-Name-First: Shaker
Author-X-Name-Last: Ahmed
Author-Name: Mohammad Nurul Hasan
Author-X-Name-First: Mohammad Nurul
Author-X-Name-Last: Hasan
Author-Name: Ralf Östermark
Author-X-Name-First: Ralf
Author-X-Name-Last: Östermark
Title: Predictability of Extreme Returns in the Turkish Stock Market
Abstract: 
 In this paper, we show that extreme returns can predict future returns in the Turkish stock market. We find that extreme return (high MAX) generating stocks show a lower performance in the next month in this market. More explicitly, there is a strong negative relationship between the firm’s maximum (MAX) daily returns over the previous month and its succeeding stock returns. Our results are robust in both firm-level cross-sectional, and portfolio-level analysis.
Journal: Emerging Markets Finance and Trade
Pages: 482-494
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1591949
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1591949
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Template-Type: ReDIF-Article 1.0
Author-Name: Cem Çebi
Author-X-Name-First: Cem
Author-X-Name-Last: Çebi
Author-Name: K.Azim Özdemir
Author-X-Name-First: K.Azim
Author-X-Name-Last: Özdemir
Title: Cyclical variation of the fiscal multiplier in Turkey
Abstract: 
 This paper investigates the cyclical variation in the government spending multiplier for Turkey from 1990:q1 to 2015:q4. We use a time series model, namely the local projection method, to estimate the variation in the fiscal multiplier under two different regimes: low and high growth regimes with respect to long-term economic growth. Our results confirm that fiscal policy is more effective in times of low growth than high growth. Turning to the components of government spending, we find that the government investment multiplier is larger than the government consumption multiplier in both regimes. This evidence supports the view that an expansionary fiscal policy via public investment has a more profound effect on output than via public consumption. However, we also find evidence that the influence of government consumption on GDP increases substantially in times of low growth. We, therefore, suggest that policymakers use public investment rather than public consumption to stimulate the economy during economic expansion and increase public consumption during economic slowdowns.
Journal: Emerging Markets Finance and Trade
Pages: 495-509
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1592748
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1592748
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:495-509




Template-Type: ReDIF-Article 1.0
Author-Name: Chunpeng Yang
Author-X-Name-First: Chunpeng
Author-X-Name-Last: Yang
Author-Name: Huihui Wu
Author-X-Name-First: Huihui
Author-X-Name-Last: Wu
Title: Investor Sentiment with Information Shock in the Stock Market
Abstract: 
 In this article, we develop an asset pricing model with investor sentiment and public information, in which there is a shock of public information on investor sentiment. We find that public information has a significant effect on asset price, and the impact of investor sentiment on asset price depends on the proportion of sentiment investors and the public information shock on investor sentiment; furthermore, the shock of public information on investor sentiment can significantly impact the asset price, price stability, and public information efficiency; more importantly, if there are sentiment investors in the market, there cannot be a market equilibrium in which price can fully reflect the public information. Our results highlight the combined effect of investor sentiment and public information on the asset price, the mechanism of public information shock on investor sentiment, and how the shock impacts the asset pricing.
Journal: Emerging Markets Finance and Trade
Pages: 510-524
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1593136
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1593136
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:510-524




Template-Type: ReDIF-Article 1.0
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Haiyue Liu
Author-X-Name-First: Haiyue
Author-X-Name-Last: Liu
Author-Name: Raja Nassar
Author-X-Name-First: Raja
Author-X-Name-Last: Nassar
Author-Name: Liang Li
Author-X-Name-First: Liang
Author-X-Name-Last: Li
Title: Institutional Information Manipulation and Individual Investors’ Disadvantages: A New Explanation for Momentum Reversal on the Chinese Stock Market
Abstract: 
 In this study, empirical evidence is presented to explain the momentum reversal phenomenon in the Chinese stock market in terms of the manipulation of institutional information. On the institutional “sell” side, we demonstrate that institutional traders send manipulated information to the market using a large volume of buy orders in order to boost the stock price and thus induce trading by retail investors. The reverse is also true on the institutional “buy” side. Thus instead of the traditional view of order flow information—“the more, the merrier”—the authors argue that “more is less” in the case of individual investors on the Chinese stock market. As a result, the empirical results presented in this study provide another feasible explanation for momentum reversal.
Journal: Emerging Markets Finance and Trade
Pages: 525-540
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1593825
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1593825
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:525-540




Template-Type: ReDIF-Article 1.0
Author-Name: Chun Liu
Author-X-Name-First: Chun
Author-X-Name-Last: Liu
Author-Name: Yi Zhang
Author-X-Name-First: Yi
Author-X-Name-Last: Zhang
Title: Religiosity and Political Connections of Private Firms in China
Abstract: 
 The extant literature on political connections has paid little attention to the role of entrepreneurial traits in firms’ pursuit of connections with government agencies or bureaucrats. Using a nationally representative survey of private enterprises in China, we investigate whether and how religious beliefs of entrepreneurs affect their firms’ reliance on political connections. We find that firms founded by religious entrepreneurs are significantly more likely to establish political connections compared to firms founded by nonreligious entrepreneurs. The positive relation between religiosity and political connections, however, is found to exist only in regions with weak market-supporting institutions. Considering the link between religiosity and risk aversion, our findings suggest that religious entrepreneurs, especially those in regions with underdeveloped institutions, may establish political connections so as to reduce the institutional risks in their business operations.
Journal: Emerging Markets Finance and Trade
Pages: 541-561
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1598366
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1598366
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:541-561




Template-Type: ReDIF-Article 1.0
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Kwanho Shin
Author-X-Name-First: Kwanho
Author-X-Name-Last: Shin
Author-Name: Shu Tian
Author-X-Name-First: Shu
Author-X-Name-Last: Tian
Title: Do Local Currency Bond Markets Enhance Financial Stability? Some Empirical Evidence
Abstract: 
 It is widely believed that local currency bond markets (LCBMs) can promote financial stability in emerging markets. In this article, we empirically test such conventional wisdom by analyzing and comparing six measures of financial vulnerability of emerging markets during two episodes of financial stress – global financial crisis and taper tantrum. We find that emerging markets, which experienced greater expansion of their LCBMs between the two episodes, experienced a greater improvement in financial stability, indicating a stabilizing role of LCBMs. Our evidence indicates that a gradual expansion of bank loans but not stock market development may also contribute to financial stability.
Journal: Emerging Markets Finance and Trade
Pages: 562-590
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1696190
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1696190
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:562-590




Template-Type: ReDIF-Article 1.0
Author-Name: So Jung Hwang
Author-X-Name-First: So Jung
Author-X-Name-Last: Hwang
Author-Name: Hyunduk Suh
Author-X-Name-First: Hyunduk
Author-X-Name-Last: Suh
Title: Analyzing Dynamic Connectedness in Korean Housing Markets
Abstract: 
 This study investigates regional housing market connectedness among the 16 first-tier administrative divisions in Korea and 25 districts in Seoul, the capital city. Time-varying parameter vector autoregressive model is used to capture time-varying nature of Diebold and Yilmaz (2014) connectedness network. Rapid increases in connectedness during the sample period are mostly associated with housing booms rather than downturns. The connectedness cycles for the whole country and for Seoul seem to diverge after the global financial crisis. During the 2006 and 2018 connectedness surge episodes, when housing booms were driven by the Seoul metropolitan area, Seoul and the surrounding Gyeonggi province had a strong influence on the whole country network. However, their impact was much weaker in 2010–2011 when the housing boom arose outside Seoul. The influence of Gangnam-3 districts in Seoul’s connectedness network is low overall, but tends to lead the total connectedness index by a few months.
Journal: Emerging Markets Finance and Trade
Pages: 591-609
Issue: 2
Volume: 57
Year: 2021
Month: 01
X-DOI: 10.1080/1540496X.2019.1649653
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1649653
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:2:p:591-609




Template-Type: ReDIF-Article 1.0
Author-Name: Shuhong Wang
Author-X-Name-First: Shuhong
Author-X-Name-Last: Wang
Author-Name: Xiaoli Sun
Author-X-Name-First: Xiaoli
Author-X-Name-Last: Sun
Author-Name: Malin Song
Author-X-Name-First: Malin
Author-X-Name-Last: Song
Title: Environmental Regulation, Resource Misallocation, and Ecological Efficiency
Abstract: 
 This study presents an ecological efficiency analysis by combining the potential of every area in China in terms of emissions reduction and energy savings with resource allocation. Changes in ecological efficiency are calculated. Environmental regulation and resource misallocation factors are introduced to identify key factors influencing ecological efficiency. The results indicate a U-shaped relationship between provincial relative environmental regulation strength and resource misallocation degree, where regulation could relieve resource misallocation somewhat and improve ecological efficiency. However, after the curve’s turning, ecological efficiency deteriorates. The study expands the research boundary of economics and ecology and provides a reference for policy-makers.
Journal: Emerging Markets Finance and Trade
Pages: 410-429
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2018.1529560
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1529560
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:3:p:410-429




Template-Type: ReDIF-Article 1.0
Author-Name: Lei Wang
Author-X-Name-First: Lei
Author-X-Name-Last: Wang
Author-Name: Ruyin Long
Author-X-Name-First: Ruyin
Author-X-Name-Last: Long
Author-Name: Hong Chen
Author-X-Name-First: Hong
Author-X-Name-Last: Chen
Title: Study on the Factors Related to Energy Performance Contracting for Urban Residential Building and their Effects in the World
Abstract: 
 To reduce energy consumption and promote the application of energy performance contracting (EPC), this study uses an interpretive structural modeling (ISM) method to propose the factors for implementing EPC in urban residential building and clarify the influences of various factors. The implementation of EPC in urban residential building is the objective. Results show that the 47 factors could be classified into four levels: core theme factors, intermediate supporting factors, cross-impact factors, and grassroots driver factors. They are reflected in supply side and demand side. Risk factor has the widest range of influences. Some factors affect multiple factors at higher levels. These results help identify participants, links, tools and environmental elements in implementation, understand the roles of intermediate factors, increase the emphasis on residents’ needs, and give full play to the promotions of grassroots factors.
Journal: Emerging Markets Finance and Trade
Pages: 631-652
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1578209
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1578209
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:3:p:631-652




Template-Type: ReDIF-Article 1.0
Author-Name: Yan Li
Author-X-Name-First: Yan
Author-X-Name-Last: Li
Author-Name: Qi Zhang
Author-X-Name-First: Qi
Author-X-Name-Last: Zhang
Author-Name: Ge Wang
Author-X-Name-First: Ge
Author-X-Name-Last: Wang
Author-Name: Xuefei Liu
Author-X-Name-First: Xuefei
Author-X-Name-Last: Liu
Author-Name: Benjamin McLellan
Author-X-Name-First: Benjamin
Author-X-Name-Last: McLellan
Title: Modeling and Policy Study for Information Asymmetry Problem of Photovoltaic Module Quality in China
Abstract: 
 With the growing concern over climate change and aided by technology development, photovoltaic (PV) installation has risen rapidly in China. Because PV modules are fully packed and the sites for PV installation may be remote from investors, it is difficult for investors to determine the actual quality of PV modules. To simulate the information asymmetry of PV quality and its impacts on market reaction, an agent-based model at social network scale is applied based on the data of Chinese PV market. To mitigate the quality problem while expanding the financing scale for PV projects, two policy options are proposed, including information disclosure and penalties. The simulation results indicate that investors are more sensitive to the negative attitudes of surrounding people, and that raising dividend ratios will drive both defaults and joining ratios higher. We further discuss policy implications of findings to ensure the prosperity of the PV financing market and the high quality of PV systems at the same time.
Journal: Emerging Markets Finance and Trade
Pages: 653-667
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1604337
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1604337
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:3:p:653-667




Template-Type: ReDIF-Article 1.0
Author-Name: Bingquan Liu
Author-X-Name-First: Bingquan
Author-X-Name-Last: Liu
Author-Name: Yongqing Li
Author-X-Name-First: Yongqing
Author-X-Name-Last: Li
Author-Name: Rui Hou
Author-X-Name-First: Rui
Author-X-Name-Last: Hou
Author-Name: Hui Wang
Author-X-Name-First: Hui
Author-X-Name-Last: Wang
Title: Assessing the Drivers of China’s CO2 Emissions Based on PDA
Abstract: 
 To explore which factors affect changes in carbon dioxide (CO2) emissions in China, based on production decomposition analysis (PDA), and data envelope analysis (DEA), this paper decomposes these changes into nine indicators. Then we measure the effects of these factors and analyze the effects at three levels: the nation, the main regions, and individual provinces. The results are as follows. First, since 2012 aggregate CO2 emissions in China have decreased, indicating the success of government efforts. Second, the effects of various factors on CO2 emissions in the eastern, central, and western regions differ significantly, emissions in the western region are high, and the eastern and central regions have the potential reduce their emissions. Third, the dominant contributors to CO2 emissions are economic growth, the structure of energy consumption, carbon emissions technology, and energy consumption efficiency, whereas the other factors are conducive to reductions in CO2 emissions. Based on our research results, we make some policy recommendations on reducing CO2 emissions in China to promote the coordinated and sustainable development of the economy and the environment.
Journal: Emerging Markets Finance and Trade
Pages: 668-683
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1598369
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1598369
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Template-Type: ReDIF-Article 1.0
Author-Name: Yan Song
Author-X-Name-First: Yan
Author-X-Name-Last: Song
Author-Name: Junjie Sun
Author-X-Name-First: Junjie
Author-X-Name-Last: Sun
Author-Name: Ming Zhang
Author-X-Name-First: Ming
Author-X-Name-Last: Zhang
Title: Research on Evolution in the Center of Gravity and a Contribution Decomposition of Energy–Related CO2 Emissions at the Provincial Level in China
Abstract: 
 First, a center of gravity model is used to explore the spatiotemporal evolution of CO2 emissions. Then, the contribution decomposition method is used to study the contribution of provincial regions to gravity movement. The movement in the center of gravity of CO2 emissions can be divided into roughly two stages: the first stage, 1995–2006, and the second stage, 2006–2015. In the first stage, the center of gravity moved to southwest mainly because of promotion of the northeastern region; in the second stage, the center of gravity moved to the northwest mainly because of the pull of the northwestern region.
Journal: Emerging Markets Finance and Trade
Pages: 684-697
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2018.1560260
File-URL: http://hdl.handle.net/10.1080/1540496X.2018.1560260
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:3:p:684-697




Template-Type: ReDIF-Article 1.0
Author-Name: Pinglin He
Author-X-Name-First: Pinglin
Author-X-Name-Last: He
Author-Name: Qiao Ya
Author-X-Name-First: Qiao
Author-X-Name-Last: Ya
Author-Name: Long Chengfeng
Author-X-Name-First: Long
Author-X-Name-Last: Chengfeng
Author-Name: Yuan Yuan
Author-X-Name-First: Yuan
Author-X-Name-Last: Yuan
Author-Name: Chen Xiao
Author-X-Name-First: Chen
Author-X-Name-Last: Xiao
Title: Nexus between Environmental Tax, Economic Growth, Energy Consumption, and Carbon Dioxide Emissions: Evidence from China, Finland, and Malaysia Based on a Panel-ARDL Approach
Abstract: 
 Based on the environmental Kuznets curve theory (EKC) and the double-dividend hypothesis of environmental tax, this paper aims to examine the relationship between environmental tax, economic growth, energy consumption, and carbon dioxide emissions in China, Finland, and Malaysia from 1985 to 2014 using panel autoregressive distribution lag (ARDL) models. This paper discovers an N-shaped relationship between the volume of carbon dioxide emissions and the value of the gross domestic product. Furthermore, this study confirms that the double-dividend effect of environmental tax exists in all three countries in the long run. Overall, this study argues that evidence from Finland and Malaysia on environmental taxes that help the country to save energy and reduce carbon dioxide emissions can provide a reference for China and other developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 698-712
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1658068
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658068
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Template-Type: ReDIF-Article 1.0
Author-Name: Mian Yang
Author-X-Name-First: Mian
Author-X-Name-Last: Yang
Author-Name: Yaru Hou
Author-X-Name-First: Yaru
Author-X-Name-Last: Hou
Author-Name: Fuxia Yang
Author-X-Name-First: Fuxia
Author-X-Name-Last: Yang
Title: Study on the Dual Targets of CO2 Emissions Reductions in China: Decoupling Analysis and Driving Forces
Abstract: 
 Reducing CO2 emissions is critical to sustainable economic development in China. In this article, we try to assess the implementation of dual controls policy on CO2 emissions within a unified analysis framework by matching the dual controls of CO2 emissions (total volume control and intensity control) at the practical level to the decoupling model (strong decoupling and weak decoupling) at the theoretical level. Then, the ST-LMDI method is used to explore the changes of the CO2 intensity and its driving factors within 4 “five-year plan”. The results indicate that: the dual controls mechanism on China’s CO2 emissions is gradually working up, with the decoupling index between CO2 emissions and the economic growth presenting an inverted U-shaped tendency. Besides, most provinces are narrowing the gap from the CO2 intensity control targets in 2020, with the energy intensity declining and the energy structure fluctuating.
Journal: Emerging Markets Finance and Trade
Pages: 713-726
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1649652
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1649652
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhengquan Guo
Author-X-Name-First: Zhengquan
Author-X-Name-Last: Guo
Author-Name: Xingping Zhang
Author-X-Name-First: Xingping
Author-X-Name-Last: Zhang
Author-Name: Yihong Ding
Author-X-Name-First: Yihong
Author-X-Name-Last: Ding
Author-Name: Xiaonan Zhao
Author-X-Name-First: Xiaonan
Author-X-Name-Last: Zhao
Title: A Forecasting Analysis on China‘S Energy Use and Carbon Emissions Based on A Dynamic Computable General Equilibrium Model
Abstract: 
 This paper constructs a dynamic computable general equilibrium model to forecast China‘s economy, energy use, and carbon emissions. The fossil energy sector and clean electricity sector are disaggregated in detail to obtain robust results. The analysis results show that the industry and energy structure will obviously change along with a high and stable economy growth trend by 2030. Although energy intensity and carbon emission intensity in China will decrease markedly, carbon emissions will keep rising and will not peak by 2030. Therefore, China‘s government must adopt effective measures to realize the commitment goal.
Journal: Emerging Markets Finance and Trade
Pages: 727-739
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1597704
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1597704
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Template-Type: ReDIF-Article 1.0
Author-Name: Xingping Zhang
Author-X-Name-First: Xingping
Author-X-Name-Last: Zhang
Author-Name: Wenfeng Liu
Author-X-Name-First: Wenfeng
Author-X-Name-Last: Liu
Author-Name: Hongyang Zhang
Author-X-Name-First: Hongyang
Author-X-Name-Last: Zhang
Author-Name: Jiahai Yuan
Author-X-Name-First: Jiahai
Author-X-Name-Last: Yuan
Title: Can China Realize the Grid Parity Target of Centralized Photovoltaic Power by 2020?
Abstract: 
 China has set an ambitious target of achieving the grid parity of solar power by 2020 in the 13th Five-Year Plan. This paper estimates the levelized costs of electricity (LCOE) of centralized photovoltaic power across regions in China with the actual situation in 2016 and simulation scenarios for 2020. Results demonstrate that the LCOEs of centralized photovoltaic power will decrease considerably during the period of 13th Five-Year. Few of them are competitive with generation side electric prices in 2016 basic scenario and 2020 pessimistic situation. Sensitivity analysis reveals that utilization hour, unit investment cost, and financing cost are key driving factors.
Journal: Emerging Markets Finance and Trade
Pages: 740-756
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1598371
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1598371
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenfeng Liu
Author-X-Name-First: Wenfeng
Author-X-Name-Last: Liu
Author-Name: Xingping Zhang
Author-X-Name-First: Xingping
Author-X-Name-Last: Zhang
Author-Name: Yinhe Bu
Author-X-Name-First: Yinhe
Author-X-Name-Last: Bu
Author-Name: Sida Feng
Author-X-Name-First: Sida
Author-X-Name-Last: Feng
Title: The Effectiveness of China’s Renewable Energy Policy: An Empirical Evaluation of Wind Power Based on the Framework of Renewable Energy Law and Its Accompanying Policies
Abstract: 
 This paper develops a fixed effect model to evaluate the effect of wind power policy using a panel dataset covering 30 provinces in China during the period 2000–2017 based on the framework of the Renewable Energy Law and its accompanying policies. The empirical results show that three mechanisms, the Total target mechanism, the Feed-in tariffs (FIT) mechanism, and the Special fund mechanism, are significant in improving wind generation and capacity. The Total target mechanism’s impact on wind capacity is greater than is that of generation, the effect of both the FIT mechanism and the Special fund mechanism is greater on wind generation than on capacity. The FIT decline mechanism and the Cost sharing mechanism have mutually reinforcing relationships in respect of wind development. The Mandatory connection and purchase mechanism’s effect on wind capacity is significant, whereas its effect on wind generation depends on the specific implementation policy. Conclusions and policy recommendations built on these findings are provided at the end of paper.
Journal: Emerging Markets Finance and Trade
Pages: 757-772
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1628016
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1628016
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiahai Yuan
Author-X-Name-First: Jiahai
Author-X-Name-Last: Yuan
Author-Name: Weirong Zhang
Author-X-Name-First: Weirong
Author-X-Name-Last: Zhang
Author-Name: Xiaoxuan Guo
Author-X-Name-First: Xiaoxuan
Author-X-Name-Last: Guo
Author-Name: Yu Ai
Author-X-Name-First: Yu
Author-X-Name-Last: Ai
Author-Name: Ruijin Zheng
Author-X-Name-First: Ruijin
Author-X-Name-Last: Zheng
Title: Deepening Supply-Side Structural Reforms in Coal Power with a Power Market
Abstract: 
 The new round of reforms in power system gradually liberalizes the wholesale market for power generation, but the current average dispatch model does not support the new market system. We use Guangdong Province as a case study to analyze the cost of new entry (CONE) and net revenue of new and old coal power plants. We find that the real CONE of low-efficiency plants that were put into production earlier is significantly lower than that of the new high-efficiency plants. Meanwhile, the fact that net revenues are higher for low-efficiency plants than high-efficiency plants has led to distortion in the incentives aimed at retiring old low-efficiency plants from the market, and new investment is economically justified under existing market rules. By simulating a market system, we find that the “scarce returns” of peak plants are depressed because of excessive capacity, which leads to losses from all coal power plants. Accelerating market reforms, including reshaping the market mechanism of short-term operations and long-term investment decision-making is key to the successful implementation of supply-side reform policies. They are important for ensuring both economic operations in the short-run wholesale market and the long-term sufficiency of the power supply via careful regulatory mechanisms.
Journal: Emerging Markets Finance and Trade
Pages: 773-785
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1644499
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1644499
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:3:p:773-785




Template-Type: ReDIF-Article 1.0
Author-Name: Wenjun Chen
Author-X-Name-First: Wenjun
Author-X-Name-Last: Chen
Author-Name: Yanlei Zhu
Author-X-Name-First: Yanlei
Author-X-Name-Last: Zhu
Author-Name: Yifei Li
Author-X-Name-First: Yifei
Author-X-Name-Last: Li
Author-Name: Na Zhao
Author-X-Name-First: Na
Author-X-Name-Last: Zhao
Author-Name: Zhanjun Lv
Author-X-Name-First: Zhanjun
Author-X-Name-Last: Lv
Title: Research on Grid Parity Predictions of Centralized Photovoltaic Electricity
Abstract: 
 Over the past decade, the photovoltaic (PV) industry in China has made great progress. However, this progress benefited from a series of subsidy policies, and with the continuous enlargement of the scale of centralized PV (CPV), the large subsidies have created great pressure on government finance, so achieving grid parity in CPV electricity is an urgent matter. This paper studies the grid parity of CPV electricity. First, this paper calculates the levelized cost of energy (LCOE) of CPV electricity. Second, using historical data and a dual learning curve, the paper predicts the LCOE of CPV electricity under scenarios with different resource zones and utilization times. Third, the paper predicts the LCOE of coal-fired electricity and draws conclusions based on changes in the price of coal and charcoal. Finally, the paper predicts when grid parity in CPV electricity in different resources areas will be achieved.
Journal: Emerging Markets Finance and Trade
Pages: 786-797
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1665015
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1665015
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Template-Type: ReDIF-Article 1.0
Author-Name: Bader S. Alhashel
Author-X-Name-First: Bader S.
Author-X-Name-Last: Alhashel
Title: Cross-Section of Returns in Frontier Markets: Evidence from the GCC Markets
Abstract: 
 Many variables have been used to explain a significant proportion of the cross-section of returns, mainly size and book-to-market. We investigate whether stock returns in the frontier markets of the GCC are driven by the same drivers. Additionally, we test other variables, such as β, leverage, momentum, and the price-to-earnings ratio. We conclude by examining which of the empirical asset pricing models (CAPM or three-factor) best describes returns in the GCC markets.
Journal: Emerging Markets Finance and Trade
Pages: 798-823
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1590195
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1590195
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:3:p:798-823




Template-Type: ReDIF-Article 1.0
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Yuanjing Ge
Author-X-Name-First: Yuanjing
Author-X-Name-Last: Ge
Author-Name: Chuan-Hao Hsu
Author-X-Name-First: Chuan-Hao
Author-X-Name-Last: Hsu
Author-Name: Hung-Gay Fung
Author-X-Name-First: Hung-Gay
Author-X-Name-Last: Fung
Title: How Did the Elimination of the Window Guidance Policy Affect IPO Performance in China? A Stochastic Dominance Analysis
Abstract: 
 This study uses data on all initial public offerings (IPO) listed on the three boards in China’s stock markets to investigate overpricing in the Chinese IPO market from 2009 to 2013, which was the only period during which the “window guidance” policy was suspended in China. We use stochastic dominance tests to compare IPO performance to that of corresponding market indexes and to test whether the policy change addresses earlier problems of underpricing. The results indicate that the Chinese IPO market is extremely overpriced, and on average IPOs perform worse than the secondary market, which implies that investors who invest in newly listed IPOs have a higher likelihood of losing money than they would by investing in the secondary market.
Journal: Emerging Markets Finance and Trade
Pages: 824-838
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1600504
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1600504
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:3:p:824-838




Template-Type: ReDIF-Article 1.0
Author-Name: Abdullah M. AlAwadhi
Author-X-Name-First: Abdullah M.
Author-X-Name-Last: AlAwadhi
Title: The Effect of Religiosity on Stock Market Speculation
Abstract: 
 This study investigates whether religiosity affects stock market speculation. We use data from the Gulf Cooperation Council (GCC) countries characterized by a high level of religiosity and clearly defined religious rules on investing. We find that during Ramadan, the stock markets of these countries encounter relatively lower levels of market volatility, idiosyncratic volatility, and trading frequency. We do not find significant changes in absolute returns during Ramadan compared with other months. However, a drop in volatility leads to higher risk-adjusted returns. Our results indicate that religiosity is negatively related to stock market speculation.
Journal: Emerging Markets Finance and Trade
Pages: 839-858
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1601079
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1601079
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Template-Type: ReDIF-Article 1.0
Author-Name: Haonan Zhang
Author-X-Name-First: Haonan
Author-X-Name-Last: Zhang
Author-Name: Xingping Zhang
Author-X-Name-First: Xingping
Author-X-Name-Last: Zhang
Author-Name: Changhong Zhao
Author-X-Name-First: Changhong
Author-X-Name-Last: Zhao
Author-Name: Jiahai Yuan
Author-X-Name-First: Jiahai
Author-X-Name-Last: Yuan
Title: Electricity Consumption and Economic Growth in BRI Countries: Panel Causality and Policy Implications
Abstract: 
 The purpose of this study is to estimate the relationships between electricity consumption and economic growth in 45 BRI countries during 1990–2015. The empirical results indicate that there are unidirectional short-run and long-run causality relationships running from economic growth to electricity consumption in all-countries and low and medium-income countries. A unidirectional long-run causality running from economic growth to electricity consumption is observed for high-income countries and the bi-directional short-run causality is found in OPEC countries. In the future, green power cooperation with consideration of host country conditions and environmental constraints should be promoted in BRI countries.
Journal: Emerging Markets Finance and Trade
Pages: 859-874
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1601551
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1601551
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Template-Type: ReDIF-Article 1.0
Author-Name: José Julián Cao-Alvira
Author-X-Name-First: José Julián
Author-X-Name-Last: Cao-Alvira
Author-Name: Lorena A. Palacios-Chacón
Author-X-Name-First: Lorena A.
Author-X-Name-Last: Palacios-Chacón
Title: Financial Deepening and Business Creation: A Regional Analysis of Colombia
Abstract: 
 Focusing on the individual regions of Colombia, we analyze the depth of the country’s financial sector and its incidence over business creation and economic growth. Financial deepening, measured by the ratio of time deposits to GDP and by the ratio of commercial bank loans to GDP, consistently shows a positive and significant relationship with business creation across the Colombian regions. These findings are also present when extending our analysis to study the impact of financial deepening on enterprise creation by industrial sectors. Lastly, regional new enterprise creation is found to be positively correlated with regional economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 875-890
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1602764
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1602764
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Template-Type: ReDIF-Article 1.0
Author-Name: Idries Mohammad Wanas Al-Jarrah
Author-X-Name-First: Idries Mohammad Wanas
Author-X-Name-Last: Al-Jarrah
Author-Name: Khalid Al-Abdulqader
Author-X-Name-First: Khalid
Author-X-Name-Last: Al-Abdulqader
Author-Name: Shawkat Hammoudeh
Author-X-Name-First: Shawkat
Author-X-Name-Last: Hammoudeh
Title: How Do Bank Features and Global Crises Affect Scale Economies? Evidence from the Banking Sectors of Oil-Rich GCC Emerging Markets
Abstract: 
 This study investigates the types of scale economies (SE) for the exchange-listed banks of the Gulf Cooperation Council (GCC) countries over the 2000–2016 period, using the stochastic frontier for modeling banking technology that explicitly incorporates managerial preferences for the bank risk taking. It explores how the levels of economies of scale (ES) are associated with banks’ features that include the business model, risk, profitability, and capital strength. The results underscore that ES are exhausted over the subperiod 2000–2008, while substantial ES are available over the subsequent 2009–2016 subperiod that followed the global financial crisis. The ES are substantial especially for the small- and middle-sized banks. Based on the geographical location, banks operating in Bahrain and UAE have shown the highest levels of ES, while those in Saudi Arabia and Oman have shown the least. Regarding bank specialization, the investment banks have shown the highest levels of ES, while commercial banks have indicated the least ES. Concerning the bank features, we find that the levels of ES are not strongly correlated with the ratio of securities-to-total assets, the profitability from lending activities and the equity-to-capital ratio. These outcomes underscore that many banks in the GCC countries, mainly in the aftermath of the global financial crisis, have failed to alter their scales of operations to land on the most efficient scale that minimizes the average cost. Thus, the financial reforms that aim to restrict the motives of banks to expand their scale of business to benefit from the too-big-to-fail (TBTF) status, especially during financial crises, are not justifiable as a valued goal.
Journal: Emerging Markets Finance and Trade
Pages: 891-913
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1602765
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1602765
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Template-Type: ReDIF-Article 1.0
Author-Name: Xuejun Jin
Author-X-Name-First: Xuejun
Author-X-Name-Last: Jin
Author-Name: Fangfei Zhu
Author-X-Name-First: Fangfei
Author-X-Name-Last: Zhu
Title: Global Oil Shocks and China’s Commodity Markets: The Role of OVX
Abstract: 
 This paper investigates the effects of global oil shocks on the returns and volatilities of Chinese commodities from 1997 to 2016. We identify the different causes of oil shocks by using a structural vector autoregressive (SVAR) model. Particularly, we employ the crude oil volatility index (OVX) issued by the Chicago Board Options Exchange (CBOE) to proxy for the oil volatility shock and differentiate it from oil price shocks. Results indicate that both the responses of returns and volatilities of China’s commodities differ depending on the underlying causes of global oil shocks. Furthermore, the OVX shock has significant negative effects on the returns and positive effects on the realized volatilities of Chinese commodities, while the impacts of oil shocks caused by changes in oil supply and global economic activity are insignificant and negligible, especially after the 2008 financial crisis.
Journal: Emerging Markets Finance and Trade
Pages: 914-929
Issue: 3
Volume: 57
Year: 2021
Month: 02
X-DOI: 10.1080/1540496X.2019.1658075
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658075
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Template-Type: ReDIF-Article 1.0
Author-Name: Bao-Jun Tang
Author-X-Name-First: Bao-Jun
Author-X-Name-Last: Tang
Author-Name: Yu-Jie Hu
Author-X-Name-First: Yu-Jie
Author-X-Name-Last: Hu
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Title: The Initial Allocation of Carbon Emission Quotas in China Based on the Industry Perspective
Abstract: 
 On December 19th, 2017, China’s Emissions Trading System (CETS) was officially launched, firstly only covering the power industry. Cap setting and allowance allocation are urgent issues for the government. Because of the different characteristics of sectors, this paper tries to propose a reasonable and effective allocation scheme from the industry perspective for the government. Firstly, it adopts traditional methods, namely grandfathering and benchmarking. Secondly, it proposes theoretical allocation schemes. Finally, the most effective scheme is selected for sectors. Results show that quotas of grandfathering scheme are larger than that of benchmarking scheme. Among four theoretical scenarios, quotas in the preferring capacity scenario are the lowest and those in the preferring potential scenario are the highest. Quotas of the manufacturing and electricity, gas, and water production and supply industries are higher. In the industrial sectors, quotas of the light and high-tech industries are lower. Results of regional quotas calculations in the preferring capacity scheme are consistent with the regional carbon intensity reduction target in the 13th Five-Year Plan Work Program for Controlling GHG Emissions. After comparing all schemes, this paper determines that theoretical scheme is the most effective for its balance on emissions reduction and development of sectors.
Journal: Emerging Markets Finance and Trade
Pages: 931-948
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1645006
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1645006
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiude Chen
Author-X-Name-First: Xiude
Author-X-Name-Last: Chen
Author-Name: Huiyang Li
Author-X-Name-First: Huiyang
Author-X-Name-Last: Li
Author-Name: Quande Qin
Author-X-Name-First: Quande
Author-X-Name-Last: Qin
Author-Name: Yulian Peng
Author-X-Name-First: Yulian
Author-X-Name-Last: Peng
Title: Market-Oriented Reforms and China’s Green Economic Development: An Empirical Study Based on Stochastic Frontier Analysis
Abstract: 
 The expanding of market-oriented reforms (MORs) over the past 40 years has provided steady momentum for China’s rapid economic growth. Based on the balanced panel data of 28 Chinese provinces from 1985–2015, an empirical analysis using stochastic frontier analysis was conducted to examine the impacts of MORs on the evolution of China’s green economic development. Energy efficiency is used to evaluate the degree of China’s green economic development. Results demonstrated that the average level of provincial energy efficiency was relatively low and the deviation of real energy efficiency from the optimal efficiency frontier was approximately 58%. This indicated China’s energy resources were extensively utilized. Provincial energy efficiency evolved dynamically in line with the degree of marketization. The MORs were the driving force of the improvements in China’s energy efficiency, and provided strong institutional support for China’s future green economy development.
Journal: Emerging Markets Finance and Trade
Pages: 949-971
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1694885
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694885
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Template-Type: ReDIF-Article 1.0
Author-Name: Jing-Li Fan
Author-X-Name-First: Jing-Li
Author-X-Name-Last: Fan
Author-Name: Xian Zhang
Author-X-Name-First: Xian
Author-X-Name-Last: Zhang
Author-Name: Jian-Da Wang
Author-X-Name-First: Jian-Da
Author-X-Name-Last: Wang
Author-Name: Qian Wang
Author-X-Name-First: Qian
Author-X-Name-Last: Wang
Title: Measuring the Impacts of International Trade on Carbon Emissions Intensity: A Global Value Chain Perspective
Abstract: 
 Global international trade has had a tremendous impact on global economic development and carbon dioxide (CO2) emissions. By making the link between embodied CO2 emissions and the global value chain in the context of global multiregional input–output models, this study constructs a macro carbon trade intensity index to measure the carbon efficiency of international trade. Empirical results on 14 major economies from 1995 to 2009 are presented as follows: (1) The characteristics of the carbon trade vary between developing economies (or transition economies) and developed economies. On average, developing and transition economies have an export carbon intensity (ECI) 3.5 times that of their import carbon intensity (ICI), whereas the latter have an ICI 2.0 times that of their ECI; (2) The three carbon intensity indices in almost all economies decreased compared with 1995; however, the degree of reduction vary from 2% to 52%; (3) China’s ECIs showed little change compared with those of India. Russia’s ECIs were higher than those of China and India. In addition, countries with higher intensity are generally developing and transition economies.
Journal: Emerging Markets Finance and Trade
Pages: 972-988
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1662783
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1662783
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Template-Type: ReDIF-Article 1.0
Author-Name: Rongji Huang
Author-X-Name-First: Rongji
Author-X-Name-Last: Huang
Author-Name: Tengfei Nie
Author-X-Name-First: Tengfei
Author-X-Name-Last: Nie
Author-Name: Yangguang Zhu
Author-X-Name-First: Yangguang
Author-X-Name-Last: Zhu
Title: Optimal Pricing and Information Provision in Supply Chain with Consumers’ Risk Perception
Abstract: 
 Emergency management plays an increasingly important role in the context of China’s economic transformation. This article studies the impact of risk perception consumer behavior on pricing strategies of the supplier and the retailer in a dyadic supply chain with emergency-dependent demand. The supplier, as a Stackelberg leader, specifies the wholesale price to the retailer, based on which, the retailer, who faces a market with an emergency, makes the optimal retail price as a response. In this setting, consumers are loss-averse and their utilities vary with the type and the intensity of emergency due to consumers’ risk perception behavior. In addition, two types of information, consumer’s demand and emergency intensity, are assumed to be possessed by the retailer and the supplier, respectively. How information sharing affects both sides’ pricing strategies is also analyzed in this article.
Journal: Emerging Markets Finance and Trade
Pages: 989-1007
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1675631
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1675631
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Template-Type: ReDIF-Article 1.0
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Author-Name: Xi Lin
Author-X-Name-First: Xi
Author-X-Name-Last: Lin
Title: Trade Imbalance, Heterogeneous Firms and Pollution Emissions: Evidence from China’s Manufacturing Sector
Abstract: 
 China’s trade imbalance and environmental pollution have become a focus of world interest. As firms are those that are emitting pollutants, do trade imbalances affect firm-level pollution emissions? In this study, we use data on Chinese manufacturing firms to investigate the impacts of trade imbalances on firms’ pollution emissions. Our results indicate that trade imbalances (export-to-import ratio) are positively related to firms’ pollution emissions. Specifically, trade surpluses lead to an increase in pollution emissions, whereas trade deficits reduce emissions. These impacts are mainly due to change in the behavior of individual firms, including the scale, factor composition, and technical effects. Trade imbalances have heterogeneous impacts on firms with different types of ownership, in different sectors, and different provinces. Our study presents the first evidence on the impacts of trade imbalances on firm-level pollution emissions.
Journal: Emerging Markets Finance and Trade
Pages: 1008-1033
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1612742
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1612742
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Template-Type: ReDIF-Article 1.0
Author-Name: Bingbing Zhang
Author-X-Name-First: Bingbing
Author-X-Name-Last: Zhang
Author-Name: Guangmeng Zhai
Author-X-Name-First: Guangmeng
Author-X-Name-Last: Zhai
Author-Name: Chuanwang Sun
Author-X-Name-First: Chuanwang
Author-X-Name-Last: Sun
Author-Name: Shuhua Xu
Author-X-Name-First: Shuhua
Author-X-Name-Last: Xu
Title: Re-Calculation, Decomposition and Responsibility Sharing of Embodied Carbon Emissions in Sino-Korea Trade: A New Value-Added Perspective
Abstract: 
 Based on a noncompetitive input-output analysis, this paper estimates the embodied carbon emissions in Sino-Korean trade from 2000 to 2014 from a new value-added perspective. In addition, using structural decomposition analysis, we decompose the factors driving embodied carbon emissions and analyze the carbon emissions responsibilities that China and Korea should each bear under “shared responsibility.” Our results show that the traditional statistical method overestimates the true level of embodied carbon emissions and the overestimation rate is about 60%. Moreover, the input technology structure effect and the export scale effect are two important factors accounting for the surplus in China’s embodied carbon emissions. In addition, under the principle of “shared responsibility,” the carbon emissions values in trade are lower. This study offers a new way to scientifically allocate the responsibility of embodied carbon emissions in trade, which can ease the surplus of embodied carbon in global value chains.
Journal: Emerging Markets Finance and Trade
Pages: 1034-1049
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1673161
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1673161
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Template-Type: ReDIF-Article 1.0
Author-Name: Jia-Jia Ou
Author-X-Name-First: Jia-Jia
Author-X-Name-Last: Ou
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Title: The Price of Pollution? A Distance Function Approach to Valuing Multiple Pollutants in China
Abstract: 
 To achieve green development, the Chinese government has taken a number of steps to reduce pollution. Several provinces of China thereby are implementing pilot pollution emission trading schemes. However, problems remain before establishing a nationwide pollution emission trading system, i.e., at what price do polluters acquire another emission allowance in the stage of initial quota allocation. In this context, shadow prices of emissions could provide the policymakers important information for the allowance prices. Besides, environmental protection policies often result in the reduction of several pollutants simultaneously. Thus, considering the provincial and sectoral significant differences in China, this paper employs a nonparametric output distance function approach including multiple undesirable outputs to estimate shadow prices of $${\rm{S}}{{\rm{O}}_{\rm{2}}}$$SO2 and $${\rm{N}}{{\rm{O}}_{\rm{x}}}$$NOx at national level, provincial level and sectoral level. Our results suggest that multiple pollutants should be taken into account and shadow prices should be set differently at national, provincial and sectoral levels.
Journal: Emerging Markets Finance and Trade
Pages: 1050-1067
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1668772
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668772
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Template-Type: ReDIF-Article 1.0
Author-Name: Lu-Tao Zhao
Author-X-Name-First: Lu-Tao
Author-X-Name-Last: Zhao
Author-Name: Zi-Jie Wang
Author-X-Name-First: Zi-Jie
Author-X-Name-Last: Wang
Author-Name: Shu-Ping Wang
Author-X-Name-First: Shu-Ping
Author-X-Name-Last: Wang
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Title: Predicting Oil Prices: An Analysis of Oil Price Volatility Cycle and Financial Markets
Abstract: 
 Given the importance of crude oil prices in the world economy, accurate price prediction has drawn extensive attention. Nevertheless, because of the complexity of the crude oil market, most traditional forecasting algorithms fail to meet the accuracy requirements. To achieve higher precision, this paper proposes a novel hybrid model for crude oil price forecasting by combining a Hodrick-Prescott filter with X12 methods and adjusting the order used. Application of our model on both West Texas Intermediate and Brent oil prices forecasting demonstrates its accuracy. The results of various forecasting performance evaluation criteria indicate that the model has stronger stability and better accuracy. The mechanism of seasonal and periodic factors is also analyzed, which provides remarkable references to other time-series predictions. Establishing two different types of predictive models that combine multiple knowledge effectively has obvious advantages over other models and provides more reliable cutting-edge information for designing a Chinese energy development strategy.
Journal: Emerging Markets Finance and Trade
Pages: 1068-1087
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1706045
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1706045
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Template-Type: ReDIF-Article 1.0
Author-Name: Xin Lv
Author-X-Name-First: Xin
Author-X-Name-Last: Lv
Author-Name: Xinyang Dong
Author-X-Name-First: Xinyang
Author-X-Name-Last: Dong
Author-Name: Weijia Dong
Author-X-Name-First: Weijia
Author-X-Name-Last: Dong
Title: Oil Prices and Stock Prices of Clean Energy: New Evidence from Chinese Subsectoral Data
Abstract: 
 This paper adopts an asymmetric BEKK-GARCH-M model to examine the heterogeneous and nonlinear relationship between oil and stock prices in the Chinese clean energy subsector. Three interesting findings are obtained. First, we find that the impact of oil prices on stock returns is stronger in the new energy vehicle sector than in other clean energy subsectors. This result could be explained by the direct substitution effect of fossil energy on new energy vehicles, which is larger than the indirect effect on other kind of renewable energy or nuclear power. Second, we prove that the relationship between oil and stock prices strengthened before the 2014 foil price decline, and the relationship became insignificant after the decline. Third, we detect significant bidirectional risk spillover effects between oil and several clean energy subsectors in the full sample.
Journal: Emerging Markets Finance and Trade
Pages: 1088-1102
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1689810
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1689810
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Template-Type: ReDIF-Article 1.0
Author-Name: Wilfredo Leiva Maldonado
Author-X-Name-First: Wilfredo Leiva
Author-X-Name-Last: Maldonado
Author-Name: Jussara Ribeiro
Author-X-Name-First: Jussara
Author-X-Name-Last: Ribeiro
Author-Name: Octavio Augusto Fontes Tourinho
Author-X-Name-First: Octavio Augusto Fontes
Author-X-Name-Last: Tourinho
Title: Testing Four Types of Bubbles in BRICS Exchange Rates
Abstract: 
 We test for the presence of four types of rational bubbles in the BRICS exchange rates against the US dollar. For the fundamental value of the exchange rate we use two structural specifications: the pure PPP rule, and a modified PPP rule where PPP is adjusted for the interest rate differential between the country and the US. For the bubble dynamics we consider four models: explosive bubbles, multiple bubbles, periodically collapsing bubbles of the Evans type, and intrinsic bubbles. We find evidence of the presence of at least one of these bubbles for Brazil, Russia, India, and South Africa, but none for China, confirming the results of other periodically recurring bubble tests for this dataset.
Journal: Emerging Markets Finance and Trade
Pages: 1103-1123
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1603542
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1603542
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Template-Type: ReDIF-Article 1.0
Author-Name: Luciane Franke
Author-X-Name-First: Luciane
Author-X-Name-Last: Franke
Author-Name: Marcos Tadeu Caputi Lélis
Author-X-Name-First: Marcos Tadeu Caputi
Author-X-Name-Last: Lélis
Author-Name: Alexsandro Marian Carvalho
Author-X-Name-First: Alexsandro Marian
Author-X-Name-Last: Carvalho
Author-Name: José Roberto Iglesias
Author-X-Name-First: José Roberto
Author-X-Name-Last: Iglesias
Title: The Impact of Chinese Exports on Brazilian and Mexican Exports: A Model Using Dynamic Panel Data
Abstract: 
 Since 2000, China has established its leading role in the world economy, while Latin American countries do not seem to have strengthened their role as exporters of industrialized products. Chinese economic growth poses a challenge for Latin American countries, particularly because of the exports of industrialized products. We explore the impact of China‘s exports performance in products with technological content from Brazil and Mexico, in the period 2001–2016. Our empirical study uses a two-stage dynamic panel data model, and our results indicate that Chinese exports displace exports from Brazil and Mexico only when China first begins to trade with the partner markets of Latin American countries. In addition, the results indicate that Brazil and Mexico will face a possible loss of market share with their trading partners.
Journal: Emerging Markets Finance and Trade
Pages: 1124-1140
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1609446
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1609446
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Template-Type: ReDIF-Article 1.0
Author-Name: Zilin Chen
Author-X-Name-First: Zilin
Author-X-Name-Last: Chen
Author-Name: Zhe Fei
Author-X-Name-First: Zhe
Author-X-Name-Last: Fei
Title: Characteristics-Based Portfolio Policy: Evidence from China
Abstract: 
 This study demonstrates the superiority of a characteristics-based portfolio policy in the Chinese equity market and proposes a novel approach for selecting characteristics. This policy models portfolio weight as a function of firm characteristics and estimates weights by optimizing investor utility. The policy’s performance in China is remarkable: a basic portfolio based on size, book-to-market, momentum, profitability, and investment characteristics achieves a Sharpe ratio of 1.05. A selection method for characteristics is proposed based on the redundancy test of corresponding factors. Selecting characteristics before portfolio construction improves the Sharpe ratio (alpha) of the portfolio by 37.48% (22.17%).
Journal: Emerging Markets Finance and Trade
Pages: 1141-1158
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1612741
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1612741
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Template-Type: ReDIF-Article 1.0
Author-Name: Li Wang
Author-X-Name-First: Li
Author-X-Name-Last: Wang
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Jian Zhang
Author-X-Name-First: Jian
Author-X-Name-Last: Zhang
Title: Does the Political Promotion of Local Officials Impede Corporate Innovation?
Abstract: 
 This study investigates the impact of government officials’ political promotion on the innovation of local firms in China. We find that local firms tend to avoid risky long-term investment in innovation when local government officials are conservative and short-term-oriented during promotion tournaments. Causality is established using the Chinese cities’ Air Quality Index (AQI) to construct the instrumental variable of local politicians’ promotion incentives. We further show that such negative effect is highly significant in state-owned enterprises, firms with political connections, and firms located in low-marketization regions. Our results are robust to a variety of model specifications and subsample analyses.
Journal: Emerging Markets Finance and Trade
Pages: 1159-1181
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1613223
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1613223
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Template-Type: ReDIF-Article 1.0
Author-Name: Bhanu Pratap Singh Thakur
Author-X-Name-First: Bhanu Pratap Singh
Author-X-Name-Last: Thakur
Author-Name: M Kannadhasan
Author-X-Name-First: M
Author-X-Name-Last: Kannadhasan
Author-Name: Parikshit Charan
Author-X-Name-First: Parikshit
Author-X-Name-Last: Charan
Author-Name: C. P. Gupta
Author-X-Name-First: C. P.
Author-X-Name-Last: Gupta
Title: Corruption and Firm Value: Evidence from Emerging Market Economies
Abstract: 
 We examine the effect of corruption on firm value using a comprehensive panel data set of 4236 firms with 38,763 firm-year observations from 16 emerging market economies during 2002–2015. By using fixed-effects panel data regression models, we find a significant negative relationship between firm value and corruption. The results are also robust to subsample analyses and to the alternate measure of firm value and corruption. Overall, our study provides evidence that corruption in emerging market economies has a negative impact on firm value. Furthermore, our study contributes to the existing literature on the drivers of firm value.
Journal: Emerging Markets Finance and Trade
Pages: 1182-1197
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1613643
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1613643
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Template-Type: ReDIF-Article 1.0
Author-Name: Tao Xiong
Author-X-Name-First: Tao
Author-X-Name-Last: Xiong
Author-Name: Zhongyi Hu
Author-X-Name-First: Zhongyi
Author-X-Name-Last: Hu
Title: Soybean Futures Price Forecasting Using Dynamic Model Averaging: Do the Predictors Change over Time?
Abstract: 
 This study uses the recently proposed dynamic model averaging (DMA) and dynamic model selection (DMS) framework to develop forecasting models of Chinese soybean futures price with eight predictors, which allows both coefficients and forecasting models to evolve over time. Specifically, covering an out-of-sample period from August 2, 2005 to May 26, 2017, experimental results show that the DMA and DMS outperform the time-varying parameter model, autoregressive model, linear regression (including all predictors), and random walk on the basis of the standard accuracy measures and Diebold-Mariano (DM) test. The best predictors for forecasting soybean futures price tend to be time-varying. Policymakers and investors should realize that there are many potential predictors whose predictive powers are strong but vary over time in Chinese soybean futures price forecasting.
Journal: Emerging Markets Finance and Trade
Pages: 1198-1214
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1618265
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1618265
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Template-Type: ReDIF-Article 1.0
Author-Name: Wei Peng
Author-X-Name-First: Wei
Author-X-Name-Last: Peng
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Author-Name: Ke Xiong
Author-X-Name-First: Ke
Author-X-Name-Last: Xiong
Title: What Determines the Subsidy Decision Bias of Local Governments? An Enterprise Heterogeneity Perspective
Abstract: 
 This paper evaluates whether enterprise heterogeneity affects the subsidy behavior of local governments for Chinese listed companies over the period 2007–2017. After using the logit and the Tobit regression analyses, the result reveals that enterprise heterogeneity significantly influences the fiscal subsidy selection strategy and policy bias. Local governments are more likely to subsidize high-tech enterprises, state-owned enterprises, and exporting enterprises. The profitability of an enterprise is negatively related subsidies, which confirms the helping-hand role played by local governments. The robustness of our findings is explored in a variety of extensions including quantile regression and investigation of regional heterogeneities.
Journal: Emerging Markets Finance and Trade
Pages: 1215-1231
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2019.1620099
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1620099
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Template-Type: ReDIF-Article 1.0
Author-Name: Yongbo Ge
Author-X-Name-First: Yongbo
Author-X-Name-Last: Ge
Author-Name: Hongyu Chen
Author-X-Name-First: Hongyu
Author-X-Name-Last: Chen
Author-Name: Liping Zou
Author-X-Name-First: Liping
Author-X-Name-Last: Zou
Author-Name: Zhuojun Zhou
Author-X-Name-First: Zhuojun
Author-X-Name-Last: Zhou
Title: Political Background and Household Financial Asset Allocation in China
Abstract: 
 Political background is an important factor in determining the household economic behavior. Using 2014–2018 households panel data from the China Family Panel Studies (CFPS), we investigate the effects of political background on China’s household asset allocation behavior. We find that political background has a significant positive impact on the financial market participation. Mediation analysis indicates that political background leads to higher household wealth, better social capital, and fewer credit constraints, thus promotes households investments. Further analysis shows that the marginal impact of political background on household investment behavior is more significant in Eastern and urban areas. Our results contribute to the existing literature on the relationship between the political background and the household investment behavior, also enhancing the understanding of the household portfolio heterogeneity.
Journal: Emerging Markets Finance and Trade
Pages: 1232-1246
Issue: 4
Volume: 57
Year: 2021
Month: 03
X-DOI: 10.1080/1540496X.2020.1865147
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1865147
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Template-Type: ReDIF-Article 1.0
Author-Name: Jim Huangnan Shen
Author-X-Name-First: Jim Huangnan
Author-X-Name-Last: Shen
Author-Name: Kent Deng
Author-X-Name-First: Kent
Author-X-Name-Last: Deng
Author-Name: Sarah Tang
Author-X-Name-First: Sarah
Author-X-Name-Last: Tang
Title: Re-Evaluating the ‘Smile Curve’ in Relation to Outsourcing Industrialization
Abstract: 
 In this paper, we argue that the widely used concept of the value-added driven ‘smile curve’ in the international business literature, which often illustrates a zero-sum game between interdependent nations in the global supply chain, requires revisiting. In particular, the U-shaped smile curve for the distribution of profitability among partners can be inverted if firms from the developing economies manage to obtain high productivity from their workers and have no high entry costs to the midstream industries that specialize in global supply chains. We construct an economic model and find that the theories proposed in the paper are broadly consistent with the empirical evidence. Our findings have some important implications for the current debate on industrialization strategies with particular reference to outsourcing industrialization for developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 1247-1270
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1694505
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694505
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoqin Zhao
Author-X-Name-First: Xiaoqin
Author-X-Name-Last: Zhao
Title: The Effect of Political Connections: Model Analysis and Quantitative Simulation
Abstract: 
 Based on a two-task principal-agent theoretical models, we model the input of building and maintaining political connections as non-productive activities. We measure the degree of change in the external environment. And the level of moral hazard on political connection managers is measured by the degree of incongruity between a politically connected manager’s income and investor interest. Our analysis using a quantitative simulation shows that, in the face of more external environmental change, managers can offset their own lost income by engaging in a high level of moral hazard. Political connections not only increase managers’ sensitivity to changes in the external environment but also alleviate the negative impact on their income. Moreover, investor revenue is not sensitive to changes in the external environment but is sensitive to managers’ moral hazards. In addition, the greater the changes in external environment and the greater the managers’ moral hazards, the lower the value of total social welfare. Hence, political connections have a negative impact on total social welfare.
Journal: Emerging Markets Finance and Trade
Pages: 1271-1283
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1612362
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1612362
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Template-Type: ReDIF-Article 1.0
Author-Name: Xi Tian
Author-X-Name-First: Xi
Author-X-Name-Last: Tian
Title: The Effect of Personality Traits on Entrepreneurial Development in Western China
Abstract: 
 This study uses the 2012 household skills survey conducted by the World Bank in Kunming, China, to investigate the relationship between personality traits and entrepreneurial development with a discrete choice model. The paper systematically examines whether different kinds of personality characteristics measured by the Big Five traits (extroversion, conscientiousness, agreeableness, emotional stability. and openness) and risk preference influence entrepreneurial development in western China. The analysis indicates that personalities have significant effects on entrepreneurship behavior in general. In particular, individuals with higher risk preferences, extroversion, emotional stability, and conscientiousness are associated with a higher probability of choosing entrepreneurship. However, other factors have negligible impacts on entrepreneurship in our results.
Journal: Emerging Markets Finance and Trade
Pages: 1284-1299
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1684256
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1684256
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Template-Type: ReDIF-Article 1.0
Author-Name: Li Kong
Author-X-Name-First: Li
Author-X-Name-Last: Kong
Author-Name: Huaitao Su
Author-X-Name-First: Huaitao
Author-X-Name-Last: Su
Title: On the Market Reaction to Capitalization of R&D Expenditures: Evidence from ChiNext
Abstract: 
 Based on 2009–2016 ChiNext data, this paper studies the relation between a company’s R&D expenditure capitalization and its business performance and the external market response to this decision. We find that, the more a company’s R&D expenditure is capitalized, the better its performance will be. In addition, the regression on the short-term market reaction shows that the increment of the development expenditure cannot lead to a direct market response. The regression results on the long-term market performance indicate that the market accepts the lagging of the R&D achievements and anticipates more intangible assets could be converted from these achievements. Overall, our results provide evidence that only the R&D expenditures that really form the intangible assets reflect the value of the capitalization and facilitate the sustainable innovation of ChiNext-listed companies.
Journal: Emerging Markets Finance and Trade
Pages: 1300-1311
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1668769
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668769
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Template-Type: ReDIF-Article 1.0
Author-Name: Jianmin Zhang
Author-X-Name-First: Jianmin
Author-X-Name-Last: Zhang
Author-Name: Nanjin Zhou
Author-X-Name-First: Nanjin
Author-X-Name-Last: Zhou
Title: The Family’s Push and Pull on Female Entrepreneurship: Evidence in China
Abstract: 
 Although the effects of family on performance are well documented in the literature on entrepreneurship, few accounts explore the underlying mechanism of influence that the family has on female entrepreneurial performance. We divide family factors into demands and resources and develop a conceptual framework to explore the mediating effects of family–work relationships and the moderating roles of two boundary attributes in the relationship between family and female entrepreneurial performance. Our research conducted in western China reveals that family demands have a negative effect on female entrepreneurial performance while family resources have a positive effect; family–work relationships partially mediate the effects that family demands and resources have on female entrepreneurial performance; women whose families have greater flexibility are less likely to suffer from the negative effect of family–work conflict on their performance; and those whose family boundaries are less permeable are more likely to achieve higher performance with the help of family–work enrichment.
Journal: Emerging Markets Finance and Trade
Pages: 1312-1332
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1697671
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1697671
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Template-Type: ReDIF-Article 1.0
Author-Name: He Gao
Author-X-Name-First: He
Author-X-Name-Last: Gao
Author-Name: Zheng Feng
Author-X-Name-First: Zheng
Author-X-Name-Last: Feng
Author-Name: Zhang Zhao
Author-X-Name-First: Zhang
Author-X-Name-Last: Zhao
Title: The Impact of Customer Bullying on Employees’ Job Performance: The Locus of Control as a Moderating Effect
Abstract: 
 This paper studies the impact of customer bullying on employees’ job performance at a sample of Chinese tourism industry companies, such as travel agencies and airlines, from the perspective of the moderating effects of employees’ locus of control. The results show that the locus of control negatively moderates the effect of customer bullying on employees’ job satisfaction, while job satisfaction plays a partially mediating role on the impact of customer bullying on employee’s job performance. That is, the higher the external locus of control, the lower the negative impact of customer bullying on employees’ job performance. The conclusions suggest that tourism industry companies can reduce the impact of customer bullying on employees’ job performance by selecting employees with an external locus of control personality, and offering specialized training to deal with customer bullying.
Journal: Emerging Markets Finance and Trade
Pages: 1333-1348
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1708322
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1708322
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:5:p:1333-1348




Template-Type: ReDIF-Article 1.0
Author-Name: Zhu Cheng
Author-X-Name-First: Zhu
Author-X-Name-Last: Cheng
Author-Name: Maozhu Jin
Author-X-Name-First: Maozhu
Author-X-Name-Last: Jin
Author-Name: Qijie Jiang
Author-X-Name-First: Qijie
Author-X-Name-Last: Jiang
Title: Research into the Competitiveness of Scenic Areas from the Perspective of Tourists: A Case Study of the Jiuzhai Valley
Abstract: 
 This paper examines empirical evidence on the causal relationship among tourists’ personalities, external stimuli, personal sentiments, and willingness to visit a tourist destination. First, we built a decision-making model, which consists of four latent constructs and four path hypotheses, based on classical conditioning, or the S-O-R (stimulus-organism-response) theory, in behavioral phycology. Then we obtained 600 valid questionnaires from tourists in the Jiuzhai Valley. Data were analyzed using structural equation modeling to examine the conceptual model and research hypotheses. We found that negative reports or opinions about a scenic area discourage potential tourists from going there in the future; beautiful scenery, a unique ecosystem, and unique or unusual customs at tourist destinations encourage tourists to visit; tourists often assessed the management ability of relevant organizations and the information technology functionality when making decisions to travel to a scenic area. Research on the competitiveness of scenic areas from the perspective of tourists contributes to a better understanding of the shortcomings of some scenic areas. This paper discussed some managerial implications for planning and additional development of scenic tourist destinations.
Journal: Emerging Markets Finance and Trade
Pages: 1349-1357
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1672530
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1672530
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Template-Type: ReDIF-Article 1.0
Author-Name: Jun Chen
Author-X-Name-First: Jun
Author-X-Name-Last: Chen
Author-Name: Lingling Yang
Author-X-Name-First: Lingling
Author-X-Name-Last: Yang
Title: A Bibliometric Review of Volatility Spillovers in Financial Markets: Knowledge Bases and Research Fronts
Abstract: 
 This paper uses the bibliometric method of knowledge mapping analysis to clearly present the knowledge base and research fronts of cross-market volatility spillovers. The results provide strong evidence that, first, the general theme of volatility spillovers can be divided into a variety of research topics, four of which are on the dynamics of volatility spillovers in world financial markets of various types based on multivariate GARCH or VAR models and construct a crucial knowledge base for this field; second, three research fronts can be identified using burst analysis, and they focus on examining spillover directions and magnitudes, testing volatility spillovers related to oil markets and international risk transmission mechanism of emerging markets; and, third, the major contributing scholars come from institutions in the United States,China and European economies. Our conclusions offer some recommendations for market practitioners in their risk management and policy-making.
Journal: Emerging Markets Finance and Trade
Pages: 1358-1379
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1695119
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695119
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:5:p:1358-1379




Template-Type: ReDIF-Article 1.0
Author-Name: Yu Ping Zhao
Author-X-Name-First: Yu Ping
Author-X-Name-Last: Zhao
Author-Name: Xi Chen
Author-X-Name-First: Xi
Author-X-Name-Last: Chen
Author-Name: Xiao-Hong Miao
Author-X-Name-First: Xiao-Hong
Author-X-Name-Last: Miao
Author-Name: Ying-Ran Tan
Author-X-Name-First: Ying-Ran
Author-X-Name-Last: Tan
Author-Name: Xiao-Yu Song
Author-X-Name-First: Xiao-Yu
Author-X-Name-Last: Song
Title: Never Forget Where You Started: To Prevent Pre-Retirement Corruption at China’s State-Owned Enterprises
Abstract: 
 The current study analyzes pre-retirement corruption among executives at state-owned enterprises (SOEs) based on the current institutional system of China from the perspective of expected utility, discussing the influence relationship of power utility and material desire utility. We conduct an empirical study to verify this theoretical assumption, finding that pre-retirement corruption among senior executives is significantly affected by a decline in social influence, which can significantly cause inflation in the material desires of executives at SOEs. The Chinese government’s anti-corruption activities and regulations on SOEs evidently have an inhibitory effect on pre-retirement corruption. Additional social posts by executives have no effect on the inflation of material desire. Based on our theoretical assumptions and empirical study, we also discuss how to prevent pre-retirement corruption among senior executives at SOEs in China.
Journal: Emerging Markets Finance and Trade
Pages: 1380-1398
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1643318
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1643318
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Template-Type: ReDIF-Article 1.0
Author-Name: Haixin Zhang
Author-X-Name-First: Haixin
Author-X-Name-Last: Zhang
Author-Name: Lili Ke
Author-X-Name-First: Lili
Author-X-Name-Last: Ke
Author-Name: Donghong Ding
Author-X-Name-First: Donghong
Author-X-Name-Last: Ding
Title: The Effect of Chinese Population Aging on Income Inequality: Based on a Micro-Macro Multiregional Dynamic CGE Modelling Analysis
Abstract: 
 This paper uses simulation results from a dynamic computable model as well as estimates by the United Nations of trends in China’s population in 2010–2050 to determine the impact of the aging of the population on changes in commodities and price factors at the macro level. Then, the paper uses a top-down and bottom-up cyclic link to connect macroeconomic variables to a micro-level family simulation model, based on the regional characteristics of the distribution of population aging in the country. The empirical results suggest that, with an aging population, the working population decreases, which induces increases in income inequality. Moreover, older families in western China would suffer from the most severe income inequality, and gaps between groups in different regions are progressively increasing as the population ages.
Journal: Emerging Markets Finance and Trade
Pages: 1399-1419
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1623781
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1623781
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Template-Type: ReDIF-Article 1.0
Author-Name: Yanzhen Wang
Author-X-Name-First: Yanzhen
Author-X-Name-Last: Wang
Author-Name: Xiumin Li
Author-X-Name-First: Xiumin
Author-X-Name-Last: Li
Author-Name: Dong Huang
Author-X-Name-First: Dong
Author-X-Name-Last: Huang
Author-Name: Aihua Wang
Author-X-Name-First: Aihua
Author-X-Name-Last: Wang
Title: Revision of the Effectiveness of China’s Sterilization Policies Considering the Role of the Reserve Requirement Ratio Adjustment
Abstract: 
 This paper integrates changes in the reserve requirement ratio with other related monetary policies and estimates the offset and sterilization coefficients to examine the effectiveness of China’s sterilization operations. The results show that China’s sterilization operations have been fairly effective and China has been able to control domestic money supply relatively well despite a limited degree of exchange rate flexibility. The results also indicate that the failure to take changes in reserve requirements ratio into account leads to a substantial underestimate of the effectiveness of China’s sterilization operations, illustrating that this policy is nonnegligible in studying China’s sterilization operations.
Journal: Emerging Markets Finance and Trade
Pages: 1420-1436
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1624160
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1624160
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Template-Type: ReDIF-Article 1.0
Author-Name: Yang-Chao Wang
Author-X-Name-First: Yang-Chao
Author-X-Name-Last: Wang
Author-Name: Jui-Jung Tsai
Author-X-Name-First: Jui-Jung
Author-X-Name-Last: Tsai
Author-Name: Xingyu Chen
Author-X-Name-First: Xingyu
Author-X-Name-Last: Chen
Title: The Impact of RMB Internationalization and International Situations on China’s Foreign Exchange Market: Dynamic Linkages between USD/CNY and SDR/CNY
Abstract: 
 With the RMB becoming the fifth international payment currency and its inclusion in the SDR currency basket, coupled with the opening of China’s capital market, RMB-related exchange rates have attracted increasing attention because of China’s RMB internationalization strategy. Using the DCC-GARCH model, we investigate how domestic (China) and international (USA, EU, UK, and Japan) policies and situations, including RMB internationalization, U.S. QE, European Debt Crisis, Brexit, and Abenomics, influence co-movement of the USD/CNY and SDR/CNY exchange rates from 2010 to 2017. We analyze the co-movement and provide explicit explanations for distinct areas (unrelated, long-term negative, and abruptly positive co-movement areas). Further, we find that RMB-related exchange rates remain largely influenced by domestic policies, while because of China’s opening-up policies they are also influenced by the international situations. Both US and EU policies exert a remarkable influence, but the effects of UK and Japan policies are decreasing.
Journal: Emerging Markets Finance and Trade
Pages: 1437-1454
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1624521
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1624521
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Template-Type: ReDIF-Article 1.0
Author-Name: Chuanwang Sun
Author-X-Name-First: Chuanwang
Author-X-Name-Last: Sun
Author-Name: Tiemeng Ma
Author-X-Name-First: Tiemeng
Author-X-Name-Last: Ma
Author-Name: Xiaoling Ouyang
Author-X-Name-First: Xiaoling
Author-X-Name-Last: Ouyang
Author-Name: Rong Wang
Author-X-Name-First: Rong
Author-X-Name-Last: Wang
Title: Does Service Trade Globalization Promote Trade and Low-Carbon Globalization? Evidence from 30 Countries
Abstract: 
 The purpose of this study is to investigate the effect of service trade globalization on low-carbon globalization. Two newly developed non-radial directional distance functions of UEI (Unified Efficiency Index) and EEPI (Energy-Environmental Performance Index) were adopted to evaluate energy and CO2 emission performances of 30 countries during the period 1980–2013. A multiple regression analysis was conducted based on the Tobit model. Results showed that: (1) Service trade openness has a positive effect on energy and CO2 emission efficiency, and the effect has been intensified with time. (2) Emerging service sectors promoted the improvement of energy and CO2 emission efficiency, while the traditional sectors hindered the efficiency improvement. (3) There existed a “catch-up” effect between less developed countries and developed countries on energy and CO2 emission efficiency. Policy implications are thus drawn on how to promote the improvement of energy and carbon emission efficiency in the context of low-carbon globalization.
Journal: Emerging Markets Finance and Trade
Pages: 1455-1473
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1627517
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1627517
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Template-Type: ReDIF-Article 1.0
Author-Name: Ruth Gimeno
Author-X-Name-First: Ruth
Author-X-Name-Last: Gimeno
Author-Name: Cristina Ortiz
Author-X-Name-First: Cristina
Author-X-Name-Last: Ortiz
Author-Name: José Luis Sarto
Author-X-Name-First: José Luis
Author-X-Name-Last: Sarto
Title: Mutual Fund Voluntary Portfolio Disclosure
Abstract: 
 A growing fraction of individual investors delegate their portfolio management to professional managers. As a result, the importance of transparency and investor protections have increased in financial markets. In Spain, management companies must report their mutual fund portfolios quarterly to investors. However, this information may be disclosed on a monthly basis to private information providers. In this study, we examine the influence of performance on voluntary portfolio disclosure from 2003 to 2013. The transparency and reporting strategies may differ from fund industries with different level of development, we will discuss the implications of the results for emerging markets. We find a positive significant relationship between the probability of fund portfolio disclosure and fund performance, and this effect is more significant when we consider risk-adjusted performance measures. The addition of some control variables in the model shows that the probability of the fund portfolio to be reported is positively related to fund age, management company size and fees and is negatively related to fund size.
Journal: Emerging Markets Finance and Trade
Pages: 1474-1488
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1629284
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1629284
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Template-Type: ReDIF-Article 1.0
Author-Name: Woongki Lee
Author-X-Name-First: Woongki
Author-X-Name-Last: Lee
Author-Name: James L. Park
Author-X-Name-First: James L.
Author-X-Name-Last: Park
Author-Name: Bumjean Sohn
Author-X-Name-First: Bumjean
Author-X-Name-Last: Sohn
Title: Aggregate Volatility Risk and Empirical Factors: An International Study
Abstract: 
 We study the aggregate volatility risk in international stock markets. We examine four regional (North America, Europe, Japan, and Asia Pacific) stock markets to see if the aggregate volatility risk is priced and find out its relationship with regional empirical factors. We find that the aggregate volatility risk is priced robustly across stocks in all regions but Japan. Within the intertemporal capital asset pricing model framework, we show that the aggregate volatility risk is closely connected with the momentum profits. Our theoretical framework coupled with the return and volatility spillover effects hints at an interesting explanation for the coexistence of global and local factors.
Journal: Emerging Markets Finance and Trade
Pages: 1489-1513
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1633305
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1633305
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:5:p:1489-1513




Template-Type: ReDIF-Article 1.0
Author-Name: Junmao Chiu
Author-X-Name-First: Junmao
Author-X-Name-Last: Chiu
Author-Name: Huimin Chung
Author-X-Name-First: Huimin
Author-X-Name-Last: Chung
Author-Name: Shih-Chang Hung
Author-X-Name-First: Shih-Chang
Author-X-Name-Last: Hung
Title: Voluntary Adoption of Audit Committees, Ownership Structure and Firm Performance: Evidence from Taiwan
Abstract: 
 Based on exogenous policy in corporate governance reform, this study examines how the voluntary adoption of audit committees affects firm performance and risk. We use a self-selection model to investigate the effect of voluntary adoption of audit committees on Tobin’s Q, return on assets, and idiosyncratic risk. Our results show that Taiwanese listed firms, especially those that are family controlled, have better performance and lower risk when they voluntarily adopt audit committees. Our results suggest that voluntary adoption of audit committees can reduce agency conflict and asymmetric information.
Journal: Emerging Markets Finance and Trade
Pages: 1514-1542
Issue: 5
Volume: 57
Year: 2021
Month: 04
X-DOI: 10.1080/1540496X.2019.1635449
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1635449
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Template-Type: ReDIF-Article 1.0
Author-Name: Haoyu Gao
Author-X-Name-First: Haoyu
Author-X-Name-Last: Gao
Author-Name: Huiyu Wen
Author-X-Name-First: Huiyu
Author-X-Name-Last: Wen
Author-Name: Shujiaming Yu
Author-X-Name-First: Shujiaming
Author-X-Name-Last: Yu
Title: Pandemic Effect on Analyst Forecast Dispersion: Earnings Uncertainty or Information Lockdown?
Abstract: 
 This study examines the COVID-19 pandemic effect on financial analysts’ forecast dispersion. Using public data on Chinese listed companies, we find that the unexpected inter-area mobility restrictions imposed due to COVID-19 significantly increase analysts’ forecast dispersion for firms in pandemic-exposed zones. The mechanism analysis shows that analysts’ site visits and face-to-face communication with target firms dramatically decrease during the COVID-19 pandemic, supporting the information lockdown hypothesis. The study also hypothetically discusses and empirically excludes earnings uncertainty explanations. Our findings add new insights to the emerging literature on the indirect economic costs of COVID-19.
Journal: Emerging Markets Finance and Trade
Pages: 1699-1715
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1903427
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1903427
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhaomin Ren
Author-X-Name-First: Zhaomin
Author-X-Name-Last: Ren
Author-Name: Shi Li
Author-X-Name-First: Shi
Author-X-Name-Last: Li
Title: Predictability of Analysts’ Forecast Revision under COVID-19: Evidence from Emerging Markets
Abstract: 
 Using stock market data from six emerging economies (that is, China, Brazil, India, Malaysia, the Philippines, and Russia), we find that analysts’ forecast revision, a significant anomaly in emerging markets during the past two decades, is disappeared during the COVID-19 pandemic. We formulate factor sorted portfolio and Fama–MacBeth regression to explain the disappearance. We find that the return predictability of analysts’ forecast revision is negatively correlated with the pandemic’s severity, whereas analysts have not provided sufficient information to investors under this severe pandemic. We supplement the theory of time-varying risk premium as well as sophisticated investors with fresh evidence.
Journal: Emerging Markets Finance and Trade
Pages: 1689-1698
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2020.1865149
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1865149
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Template-Type: ReDIF-Article 1.0
Author-Name: Xuesheng Chen
Author-X-Name-First: Xuesheng
Author-X-Name-Last: Chen
Author-Name: Caixia Liu
Author-X-Name-First: Caixia
Author-X-Name-Last: Liu
Author-Name: Feng Liu
Author-X-Name-First: Feng
Author-X-Name-Last: Liu
Author-Name: Mingjie Fang
Author-X-Name-First: Mingjie
Author-X-Name-Last: Fang
Title: Firm Sustainable Growth during the COVID-19 Pandemic: The Role of Customer Concentration
Abstract: 
 Due to the spread of coronavirus disease 2019 (COVID-19), business environmental uncertainty, a restricted flow of personnel and materials, and changes in consumer demand have impacted business operations and financial performance. This study investigates the relationship between COVID-19, customer concentration, and sustainable growth based on data from listed companies in China. The results reveal that COVID-19 has had a negative impact on sustainable growth, but customer concentration can mitigate this negative association. By emphasizing the moderating effect of customer concentration on the relationship between COVID-19 and sustainable growth, this study provides new insights for firms who are seeking to mitigate the negative shocks of COVID-19 and promote sustainable development.
Journal: Emerging Markets Finance and Trade
Pages: 1566-1577
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1904884
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1904884
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Template-Type: ReDIF-Article 1.0
Author-Name: Susan Sunila Sharma
Author-X-Name-First: Susan Sunila
Author-X-Name-Last: Sharma
Author-Name: Yezhou Sha
Author-X-Name-First: Yezhou
Author-X-Name-Last: Sha
Title: Special Issue on the Pandemic Research
Journal: Emerging Markets Finance and Trade
Pages: 1543-1546
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1921505
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1921505
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Template-Type: ReDIF-Article 1.0
Author-Name: Ghulame Rubbaniy
Author-X-Name-First: Ghulame
Author-X-Name-Last: Rubbaniy
Author-Name: Ali Awais Khalid
Author-X-Name-First: Ali Awais
Author-X-Name-Last: Khalid
Author-Name: Aristeidis Samitas
Author-X-Name-First: Aristeidis
Author-X-Name-Last: Samitas
Title: Are Cryptos Safe-Haven Assets during Covid-19? Evidence from Wavelet Coherence Analysis
Abstract: 
 This study adds to the inconclusive debate on safe-haven properties of cryptocurrencies during Covid-19 by analyzing the use of wavelet coherence framework on the global Covid-19 fear index, cryptocurrency implied volatility index (VCRIX), and cryptocurrency returns. Our findings show that a non-financial market-based proxy of market stress that represents fear of households and retail investors reveals cryptocurrencies as safe-haven assets; however, a financial market-based proxy of market turbulence exposes that cryptocurrencies behave like traditional assets during the times of Covid-19 pandemic. Our findings support that long-term investors can invest in the cryptocurrency market to hedge the risks during Covid-19 pandemic.
Journal: Emerging Markets Finance and Trade
Pages: 1741-1756
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1897004
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1897004
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Template-Type: ReDIF-Article 1.0
Author-Name: Pengpeng Yue
Author-X-Name-First: Pengpeng
Author-X-Name-Last: Yue
Author-Name: Aslihan Gizem Korkmaz
Author-X-Name-First: Aslihan Gizem
Author-X-Name-Last: Korkmaz
Author-Name: Zhichao Yin
Author-X-Name-First: Zhichao
Author-X-Name-Last: Yin
Author-Name: Haigang Zhou
Author-X-Name-First: Haigang
Author-X-Name-Last: Zhou
Title: Household-owned Businesses’ Vulnerability to the COVID-19 Pandemic
Abstract: 
 Using a new survey conducted with Chinese households on the effects of the COVID-19 pandemic by the Survey and Research Center for China Household Finance, this study provides descriptive evidence on the impact of COVID-19 on household-owned businesses. We use ordinary least squares and ordered probit regression methods for our analyses. The results show that the pandemic has a negative impact on the gross income of household-owned businesses.
Journal: Emerging Markets Finance and Trade
Pages: 1662-1674
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1899912
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1899912
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Template-Type: ReDIF-Article 1.0
Author-Name: Lu Jolly Zhou
Author-X-Name-First: Lu Jolly
Author-X-Name-Last: Zhou
Author-Name: Hua Qiu
Author-X-Name-First: Hua
Author-X-Name-Last: Qiu
Author-Name: Xinyu Zhang
Author-X-Name-First: Xinyu
Author-X-Name-Last: Zhang
Title: How Does the Market React to Corporate Philanthropic Behavior? —evidence from the COVID-19 Pandemic Shock
Abstract: 
 Based on 1,130 listed Chinese firms’ charitable donation data during the COVID-19, this paper used the Event Study to examine market reactions to the epidemic and utilized OLS and Heckman two-stage models to investigate the impact of charitable donations on corporate market performance. Results show that greater corporate charitable material and medical donations result in more favorable short-term market reaction but weaker in the long term. Moreover, the low-leveraged, non-pharmaceutical, and non-SOEs can obtain better short-term performance through philanthropic donations. Findings suggest that the negative market sentiment from the COVID-19 cannot be offset by the short-term positive effects of corporate donations.
Journal: Emerging Markets Finance and Trade
Pages: 1613-1627
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1898367
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1898367
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Template-Type: ReDIF-Article 1.0
Author-Name: Ping Zhang
Author-X-Name-First: Ping
Author-X-Name-Last: Zhang
Author-Name: Jieying Gao
Author-X-Name-First: Jieying
Author-X-Name-Last: Gao
Author-Name: Xingchao Li
Author-X-Name-First: Xingchao
Author-X-Name-Last: Li
Title: Stock Liquidity and Firm Value in the Time of COVID-19 Pandemic
Abstract: 
 This paper investigates the impact of stock liquidity on firm value in the time of COVID-19 pandemic. Using data from A-share listed companies in China, we calculate the firm value of Cumulative Abnormal Returns through the event study method and stock liquidity by the Amihud illiquidity. We find that significant negative relationships between stock liquidity and firm value exist in the first three days of the COVID-19 outbreak, while significant positive relationships in the following days. We also find that these negative relationships are more significant in severely impacted regions, small companies, and non-state-owned enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 1578-1591
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1898368
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1898368
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Template-Type: ReDIF-Article 1.0
Author-Name: Nihan Dalgıç
Author-X-Name-First: Nihan
Author-X-Name-Last: Dalgıç
Author-Name: Cumhur Ekinci
Author-X-Name-First: Cumhur
Author-X-Name-Last: Ekinci
Author-Name: Oğuz Ersan
Author-X-Name-First: Oğuz
Author-X-Name-Last: Ersan
Title: Daily and Intraday Herding within Different Types of Investors in Borsa Istanbul
Abstract: 
 This paper aims to explore the daily and intraday herd behavior of various investor groups trading in an emerging equity market, Borsa Istanbul (BIST). We analyze a one-year tick-by-tick order and trade data of BIST 100 Index stocks and document differences in herding behavior of investor groups considering market capitalization, market conditions, and announcements as well as daily and intraday periodicities. We find that nonprofessional investors (brokerage houses and domestic funds) tend to herd on large (small) stocks; their herding behavior mostly exhibits a U shape (an inverse U shape) during the day. All types of investors tend to herd in down markets on a daily basis while this behavior disappears, even inverts intraday.
Journal: Emerging Markets Finance and Trade
Pages: 1793-1810
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1641082
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1641082
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Template-Type: ReDIF-Article 1.0
Author-Name: Quanyun Song
Author-X-Name-First: Quanyun
Author-X-Name-Last: Song
Author-Name: Jun Du
Author-X-Name-First: Jun
Author-X-Name-Last: Du
Author-Name: Yu Wu
Author-X-Name-First: Yu
Author-X-Name-Last: Wu
Title: Bank Loans for Small Businesses in Times of COVID-19: Evidence from China
Abstract: 
 Using representative loan-level data in China, this paper shows that bank loans for small businesses are more generous and flexible during the pandemic. In places more severely affected by the pandemic, loans for small businesses have lower costs, shorter maturities, larger amounts, are more likely to be unsecured loans. Small businesses are also more likely to extend the loan repayment, while the probability of defaulting shows no significant differences. Although the easy monetary policies implemented by central banks help small business financing, the government should pay attention to the potential NPL concerns in the post-pandemic periods.
Journal: Emerging Markets Finance and Trade
Pages: 1652-1661
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1900820
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1900820
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Template-Type: ReDIF-Article 1.0
Author-Name: Pham Dinh Long
Author-X-Name-First: Pham
Author-X-Name-Last: Dinh Long
Author-Name: Pham Thi Bich Ngoc
Author-X-Name-First: Pham Thi Bich
Author-X-Name-Last: Ngoc
Author-Name: Holger Görg
Author-X-Name-First: Holger
Author-X-Name-Last: Görg
Title: Trade Liberalization and Labor Market Adjustments: Does Rent Sharing Matter?
Abstract: 
 Using a firm-level dataset, this article investigates the impact of trade liberalization on employment and wages in Vietnamese manufacturing during 2003–2008. Different from the previous researches, we consider indirect effects of trade liberalization via real output for the employment and via rent sharing for the wage adjustments. Overall, we find empirical evidence that trade liberalization has a negative, statistically significant, but minor in magnitude effect on employment and wage. The rent-sharing approach allows a further investigation of heterogeneity in bargaining power across firms by gender and skill composition for the wage response. There exist differences in gender and skill earnings gaps but trade liberalization can moderate these gaps.
Journal: Emerging Markets Finance and Trade
Pages: 1828-1841
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1643316
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1643316
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Template-Type: ReDIF-Article 1.0
Author-Name: Piotr Białowolski
Author-X-Name-First: Piotr
Author-X-Name-Last: Białowolski
Author-Name: Florian Chávez-Juárez
Author-X-Name-First: Florian
Author-X-Name-Last: Chávez-Juárez
Title: Household Financial Portfolios in an Emerging Economy⁠—The Case of Chile
Abstract: 
 This paper investigates household financial portfolios in Chile. We use latent class models to identify groups of households according to their financial behavior. The model reveals nine distinct behavioral groups. The two largest groups account for 40% of the population and represent mostly households lacking access to banking sector services. Overall, we find strong evidence of households mixing assets and debt, which contradicts the classical assumptions of the life-cycle theory. We demonstrate that a significant share of indebted households has credit in the informal sector even though they were able to save on regular basis and thus should seek credit in the formal market. Education debt seems to be equally present among different socio-economic groups.
Journal: Emerging Markets Finance and Trade
Pages: 1811-1827
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1642193
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1642193
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Template-Type: ReDIF-Article 1.0
Author-Name: Liangyu Zhang
Author-X-Name-First: Liangyu
Author-X-Name-Last: Zhang
Author-Name: Haolin Zhang
Author-X-Name-First: Haolin
Author-X-Name-Last: Zhang
Author-Name: Xinye Yu
Author-X-Name-First: Xinye
Author-X-Name-Last: Yu
Author-Name: Yongqi Feng
Author-X-Name-First: Yongqi
Author-X-Name-Last: Feng
Title: Will the Supporting Policies Help the Recovery of SMEs during the Pandemic of COVID-19? — Evidence from Chinese Listed Companies
Abstract: 
 Employing the method of fuzzy Regression Discontinuity Design (Fuzzy-RDD) with 12220 valid sample data from 2,444 enterprises and with data duration covering from February to June 2020, this paper studied the effectiveness of supporting policies for small and medium-sized enterprises (SMEs) during the COVID-19 in China. The study found that the policies which were implemented are beneficial for wholesale enterprises recovery. However, they are not beneficial for manufacturing, transportation and information transmission industries. Suggestions were put forward to the government about how to improve the support policies’ effectiveness for SMEs.
Journal: Emerging Markets Finance and Trade
Pages: 1640-1651
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1878021
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1878021
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Template-Type: ReDIF-Article 1.0
Author-Name: Di Yuan
Author-X-Name-First: Di
Author-X-Name-Last: Yuan
Author-Name: Feipeng Zhang
Author-X-Name-First: Feipeng
Author-X-Name-Last: Zhang
Author-Name: Fenghui Cui
Author-X-Name-First: Fenghui
Author-X-Name-Last: Cui
Author-Name: Shuo Wang
Author-X-Name-First: Shuo
Author-X-Name-Last: Wang
Title: Oil and BRIC Stock Markets before and after COVID-19: A Local Gaussian Correlation Approach
Abstract: 
 This paper investigates interdependence and contagion between oil and BRIC stock markets before and after COVID-19. We used a local Gaussian correlation approach to identify the asymmetric relationship and a bootstrap method to test contagion. The empirical results show that, except for China, the linkages between the crude oil markets and BRIC stock markets significantly increased in crashing markets during the COVID-19 pandemic. Contagion is identified from crude oil markets to the Indian stock market, and from West Texas Intermediate (WTI) futures to the Russian stock market.
Journal: Emerging Markets Finance and Trade
Pages: 1592-1602
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1904886
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1904886
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Template-Type: ReDIF-Article 1.0
Author-Name: Shixian Ling
Author-X-Name-First: Shixian
Author-X-Name-Last: Ling
Author-Name: Tianyue Pei
Author-X-Name-First: Tianyue
Author-X-Name-Last: Pei
Author-Name: Zhaohui Li
Author-X-Name-First: Zhaohui
Author-X-Name-Last: Li
Author-Name: Zhiping Zhang
Author-X-Name-First: Zhiping
Author-X-Name-Last: Zhang
Title: Impact of COVID-19 on Financial Constraints and the Moderating Effect of Financial Technology
Abstract: 
 The sudden outbreak of COVID-19 has made enterprises in various countries face extreme financial constraints. Using the quarterly data of Chinese listed companies from 2011 to 2020, we examine the impact of COVID-19 on financial constraints and the moderating effect of financial technology. We find that while COVID-19 has increased enterprises’ financial constraints, the development of financial technology can mitigate its negative impact. The results still hold under various robustness checks. While the COVID-19 pandemic is still ongoing, there is scope for the future development of financial technology to help protect and revive the global economy.
Journal: Emerging Markets Finance and Trade
Pages: 1675-1688
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1904883
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1904883
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Template-Type: ReDIF-Article 1.0
Author-Name: Yu Zhao
Author-X-Name-First: Yu
Author-X-Name-Last: Zhao
Author-Name: Hongyuan Zhang
Author-X-Name-First: Hongyuan
Author-X-Name-Last: Zhang
Author-Name: Yibing Ding
Author-X-Name-First: Yibing
Author-X-Name-Last: Ding
Author-Name: Sitong Tang
Author-X-Name-First: Sitong
Author-X-Name-Last: Tang
Title: Implications of COVID-19 Pandemic on China’s Exports
Abstract: 
 This study empirically analyzes various implications of the COVID-19 pandemic in China and trading partner countries on China’s exports by constructing an econometric model using COVID-19 pandemic data from China and its 21 trading partner countries (regions) from January 2019 to August 2020. The results show that (1) the COVID-19 pandemic in China has a significant negative effect on its export trade, (2) the COVID-19 pandemic situations in trading partner countries and regions generate significant positive effects on China’s total exports, and (3) the COVID-19 pandemic situation has a heterogeneous impact on China’s exports to different trading partners.
Journal: Emerging Markets Finance and Trade
Pages: 1716-1726
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1877653
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1877653
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Template-Type: ReDIF-Article 1.0
Author-Name: Hongyuan Zhang
Author-X-Name-First: Hongyuan
Author-X-Name-Last: Zhang
Author-Name: Yibing Ding
Author-X-Name-First: Yibing
Author-X-Name-Last: Ding
Author-Name: Jing Li
Author-X-Name-First: Jing
Author-X-Name-Last: Li
Title: Impact of the COVID-19 Pandemic on Economic Sentiment: A Cross-Country Study
Abstract: 
 This paper empirically analyzes the impact of the COVID-19 pandemic on economic sentiment by constructing an econometric model using monthly data from 36 countries from December 2019 to October 2020. The results of this study show: (1) After the outbreak of the COVID-19 pandemic, economic sentiment fluctuated greatly, and even turned pessimistic. (2) It has a significant negative impact on economic sentiment. (3) It, however, has a substantial positive impact on consumer confidence, a major negative impact on industrial confidence, and no significant impact on services confidence.
Journal: Emerging Markets Finance and Trade
Pages: 1603-1612
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1897005
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1897005
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Template-Type: ReDIF-Article 1.0
Author-Name: Yan Wu
Author-X-Name-First: Yan
Author-X-Name-Last: Wu
Author-Name: Chunlai Chen
Author-X-Name-First: Chunlai
Author-X-Name-Last: Chen
Title: The Impact of China’s Outward Foreign Direct Investment on Trade Intensity with Belt and Road Countries
Abstract: 
 This study uses country-level panel data covering 64 countries in the Belt and Road Initiative (BRI) for the period 2003–2015 and employs a dynamic panel system generalized method of moments (GMM) model with instrumental variable regression techniques to investigate empirically the impact of China’s outward foreign direct investment (OFDI) on trade intensity with BRI countries. The study finds that China’s OFDI on average has a positive impact on import intensity and a negative impact on export intensity with BRI countries. However, the impact of China’s OFDI on its trade intensity with BRI countries varies by country groups of resource-rich, high-income, and low-income countries in different periods. The regression results for different periods show that since the BRI was launched in 2013, China’s OFDI has strengthened bidirectional trade relations between China and BRI countries.
Journal: Emerging Markets Finance and Trade
Pages: 1773-1792
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1646124
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1646124
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Template-Type: ReDIF-Article 1.0
Author-Name: Tiezhu Sun
Author-X-Name-First: Tiezhu
Author-X-Name-Last: Sun
Author-Name: Weiwei Zhang
Author-X-Name-First: Weiwei
Author-X-Name-Last: Zhang
Author-Name: Xiaobo Xu
Author-X-Name-First: Xiaobo
Author-X-Name-Last: Xu
Author-Name: Li Zhang
Author-X-Name-First: Li
Author-X-Name-Last: Zhang
Title: Greenfield or M&A? The Role of Economic Policy Uncertainty in Home and Host Countries
Abstract: 
 This paper examines the impact of economic policy uncertainty in home and host countries on the choice of foreign establishment mode. Using 777 foreign subsidiary establishments made by Chinese firms from 2004 to 2015, we find that firms prefer M&A compared to greenfield investment as the establishment mode when the host country is experiencing high economic policy uncertainty. Firms that face high economic policy uncertainty in their home country prefer cross-border M&A when entering the host country. Economy policy uncertainty in the home country is the main factor when economic policy uncertainties in both the home and host countries are considered.
Journal: Emerging Markets Finance and Trade
Pages: 1628-1639
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1897003
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1897003
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoxu Kong
Author-X-Name-First: Xiaoxu
Author-X-Name-Last: Kong
Author-Name: Fei Jiang
Author-X-Name-First: Fei
Author-X-Name-Last: Jiang
Author-Name: Xuexin Liu
Author-X-Name-First: Xuexin
Author-X-Name-Last: Liu
Title: Strategic Deviance, Diversification and Enterprise Resilience in the Context of COVID-19: Heterogeneous Effect of Managerial Power
Abstract: 
 This article analyses the role of strategic deviance, diversification, their interaction, and managerial power on enterprise resilience (ER) during COVID-19. Using an event study approach and regression analysis based on the Chinese stock market, our findings show: (1) strategic deviance and diversification significantly, positively affect ER, while their interaction term’s effect is significantly negative; (2) when managers are powerful, diversification’s impact on ER is insignificant, while strategic deviance has a significant positive impact; (3) when managers are less powerful, strategic deviance’s influence on ER is not significant, while diversification is significant. Therefore, strong-managerial enterprises should adopt strategic deviance, while weaker-managerial enterprises should diversify.
Journal: Emerging Markets Finance and Trade
Pages: 1547-1565
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1904882
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1904882
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Template-Type: ReDIF-Article 1.0
Author-Name: Yichao Mo
Author-X-Name-First: Yichao
Author-X-Name-Last: Mo
Author-Name: Ding Liu
Author-X-Name-First: Ding
Author-X-Name-Last: Liu
Author-Name: Weihong Sun
Author-X-Name-First: Weihong
Author-X-Name-Last: Sun
Title: Deconstructing the Effects of SARS on China’s Real Economy: What are the Lessons for Monetary Policy?
Abstract: 
 This study examines the effects of the SARS outbreak on China’s real economy using structural vector autoregression models. We find that SARS has had both temporary and persistent adverse effects on output. The temporary effects lasted for only one-quarter and the prolonged effects for approximately two years. By further analyzing China’s monetary policy, we find that the accommodative quantity-based monetary policy has greatly hedged the temporary effects of SARS. However, the persistent effects of SARS could have been alleviated if China had eased the price-based monetary policy after the outbreak.
Journal: Emerging Markets Finance and Trade
Pages: 1727-1740
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1908258
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1908258
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Template-Type: ReDIF-Article 1.0
Author-Name: Yiwei Wang
Author-X-Name-First: Yiwei
Author-X-Name-Last: Wang
Author-Name: Ke Wang
Author-X-Name-First: Ke
Author-X-Name-Last: Wang
Author-Name: Quan-Jing Wang
Author-X-Name-First: Quan-Jing
Author-X-Name-Last: Wang
Title: The comovement between epidemics and atmospheric quality in emerging countries
Abstract: 
 This research examines the short- or long-term relationship between epidemics and atmospheric quality via panel data of 69 countries over the period 1990–2019. By employing the panel univariate LM unit root test, panel cointegration tests with multiple structural breaks, and FMOLS estimations as well as the panel vector error correction model (VECM), we find that a bi-directional relationship among variables exists in the full sample. More importantly, from a long-term perspective we also note that the impact of epidemics on atmospheric quality is negative. Therefore, we hypothesize that this may be related to the retaliatory emissions of companies after epidemics and poor government supervision. For a more in-depth investigation, we take CO2 emissions of the industrial and transportation sectors as the proxy variables and see that the more developed an economy is, the greater is the cointegration between epidemics and atmospheric quality. Our research offers implications for policy makers, such that improving atmospheric quality is an important way to prevent epidemics, and in order to alleviate and eliminate the spread of epidemics governments should pay more attention to environmental control.
Journal: Emerging Markets Finance and Trade
Pages: 1757-1772
Issue: 6
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1877133
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1877133
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Template-Type: ReDIF-Article 1.0
Author-Name: Li-Chuan Tsai
Author-X-Name-First: Li-Chuan
Author-X-Name-Last: Tsai
Author-Name: Ruhui Zhang
Author-X-Name-First: Ruhui
Author-X-Name-Last: Zhang
Author-Name: Cui-Fang Zhao
Author-X-Name-First: Cui-Fang
Author-X-Name-Last: Zhao
Title: Revisiting Corporate Political Connections Using Social Networks and Prediction of Post-IPO Performance
Abstract: 
 This paper studies political connections from the view of the social networks. We build social networks annually from 2009 to 2017, where firm leaders serve or served in the same government institutions are linked together. Empirically, the social network each year shares a similar structure and shows a small-world effect. Furthermore, we apply four network topologies, namely, degree centrality, betweenness centrality, closeness centrality, and the clustering coefficient, to measure the strength of political connections and utilize these new proxies to predict the post performance of initial public offerings (IPOs). We observe political network centrality has negative effects on the short-term and long-term post-IPO stock returns in that the leaders’ position on the political hierarchy is inversely related to the post-performance of IPO firms. This finding may be attributable to the argument of “grabbing hand” that the capability of an IPO firm on acquiring resources or information on the political network is positively correlated to the extent that government officials using their power to reap the private or political benefits instead of firm value maximization.
Journal: Emerging Markets Finance and Trade
Pages: 2120-2137
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1646125
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1646125
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Template-Type: ReDIF-Article 1.0
Author-Name: Lya Paola Sierra
Author-X-Name-First: Lya Paola
Author-X-Name-Last: Sierra
Author-Name: Pavel Vidal Alejandro
Author-X-Name-First: Pavel
Author-X-Name-Last: Vidal Alejandro
Title: The Impact of Emerging Asia´s Demand on the Pacific Alliance Countries
Abstract: 
 This article presents new evidence on the economic links between Asia and Latin America. Estimates from a Bayesian vector autoregression model show that key macroeconomic variables of the Pacific Alliance countries (Mexico, Peru, Chile, and Colombia) have a significant response to shocks on Emerging Asia’s demand. The spillover effects show that Peru is the country that is most vulnerable to income shocks in Emerging Asia. Nevertheless, developed economies’ shocks are still significant when it comes to explain the macroeconomic performances of Colombia, Chile, and especially, Mexico.
Journal: Emerging Markets Finance and Trade
Pages: 2023-2041
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1693362
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1693362
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:7:p:2023-2041




Template-Type: ReDIF-Article 1.0
Author-Name: Yiqiu Wang
Author-X-Name-First: Yiqiu
Author-X-Name-Last: Wang
Author-Name: Yunyi Zhu
Author-X-Name-First: Yunyi
Author-X-Name-Last: Zhu
Title: The Financing and Investment Crowding-out Effect of Zombie Firms on Non-zombie Firms: Evidence from China
Abstract: 
 Using a database on Chinese listed firms in 2006–2016, we identify Chinese zombie firms and the characteristics of their distribution by introducing the factors of government overprotection and bank credit support. We find that low-productivity zombie firms tie up abundant financial capital, and they have significant crowd-out effect on non-zombie firms. Furthermore, the crowding out of non-zombie firms by zombie firms are more severe among non-state-owned enterprises (non-SOEs), the manufacturing industries, the labor-intensive firms, and the regions with a high degree of marketization. Our study provides evidence that the prevalence of zombie firms exacerbates the misallocation of financial capital and market distortion and impedes the development of healthy industries.
Journal: Emerging Markets Finance and Trade
Pages: 1959-1985
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1711370
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1711370
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenli Huang
Author-X-Name-First: Wenli
Author-X-Name-Last: Huang
Author-Name: Jingyu Luo
Author-X-Name-First: Jingyu
Author-X-Name-Last: Luo
Author-Name: Yanhong Qian
Author-X-Name-First: Yanhong
Author-X-Name-Last: Qian
Author-Name: Yuqi Zheng
Author-X-Name-First: Yuqi
Author-X-Name-Last: Zheng
Title: The Impact of Decreased Margin Requirements on Futures Markets: Evidence from CSI 300 Index Futures
Abstract: 
 The purpose of this study is to investigate whether margin downregulations helped enhance the functions of index futures markets following the stock market crash in China in 2015. Using high-frequency trading data, we estimate the changes in the price discovery and volatility spillover relationships between the CSI 300 index and its futures. We find that reducing the margin ratio strengthens the lead role of futures in the lead–lag relationship and results in more volatility transmission from futures markets to the stock market. Furthermore, this paper shows that the expiration-day effect negatively influences the two functions.
Journal: Emerging Markets Finance and Trade
Pages: 2052-2064
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2020.1852925
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1852925
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Template-Type: ReDIF-Article 1.0
Author-Name: Ping Zhang
Author-X-Name-First: Ping
Author-X-Name-Last: Zhang
Author-Name: Yezhou Sha
Author-X-Name-First: Yezhou
Author-X-Name-Last: Sha
Author-Name: Yifan Xu
Author-X-Name-First: Yifan
Author-X-Name-Last: Xu
Title: Stock Market Volatility Spillovers in G7 and BRIC
Abstract: 
 With the global integration development, the linkage between countries is strengthened in the dynamic spillover effects between BRIC and G7 from 2009 to 2020. We find that G7 is the exporter of risk, and BRIC is the receiver of the risk. We build the spillover model from the DAG-SVAR model. In the static spillover analysis, the net spillover of G7 is higher than that of BRIC. In the dynamic spillover analysis, the total systemic spillover is highly consistent with the world’s risk events. We also consider the directional spillover between G7 and BRIC, and find the volatility spillover of G7 to other markets is higher than that of BRIC. Furthermore, we use the European Debt Crisis, the China-US Trade War, and the Covid-19 Pandemic to study the spillover network’s dynamic evolution. We find that the global financial market’s spillover network is enhanced, and the volatility net spillover increased rapidly after the corresponding events. Specifically, after the Wuhan lockdown, China’s net spillover increased sharply to 264%, ranked first globally, and the net volatility spillover connectedness increased substantially after the Covid-19 Pandemic.
Journal: Emerging Markets Finance and Trade
Pages: 2107-2119
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1908256
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1908256
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Template-Type: ReDIF-Article 1.0
Author-Name: Geoffrey Ngene
Author-X-Name-First: Geoffrey
Author-X-Name-Last: Ngene
Author-Name: Jinghua Wang
Author-X-Name-First: Jinghua
Author-X-Name-Last: Wang
Author-Name: M. Kabir Hassan
Author-X-Name-First: M. Kabir
Author-X-Name-Last: Hassan
Author-Name: Ivan Julio
Author-X-Name-First: Ivan
Author-X-Name-Last: Julio
Author-Name: Jung-Suk Yu
Author-X-Name-First: Jung-Suk
Author-X-Name-Last: Yu
Title: Oil and Sovereign Credit Risk: Asymmetric Nonlinear Dynamic Interactions
Abstract: 
 Changes in oil prices differently impact the macro fundamentals of oil-importing and oil-exporting countries. For the latter, oil price booms improve fiscal policy, real exchange rate due to the inflow of foreign currencies, sovereign creditworthiness and political stability since the state can fund social welfare programs. Resource reallocation occurs due to increased oil production. Conversely, declining oil prices harm oil-importing countries through the trade channel. This study takes the view that oil price returns and its volatility have asymmetric and nonlinear causal effects on the sovereign credit risk of oil-exporting and oil-importing countries. Changes in oil prices may need to be priced in sovereign credit risk. However, in some exceptional cases, changes in sovereign credit risk may need to be priced in pricing oil commodity. Asymmetric and nonlinear causal dynamics between oil and sovereign credit risk may help policymakers in alleviating the sovereign cost of debt capital and fiscal instabilities.
Journal: Emerging Markets Finance and Trade
Pages: 2006-2022
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1668775
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668775
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Template-Type: ReDIF-Article 1.0
Author-Name: Peng Peng
Author-X-Name-First: Peng
Author-X-Name-Last: Peng
Author-Name: Zhigang Xu
Author-X-Name-First: Zhigang
Author-X-Name-Last: Xu
Title: Why is Microfinance for the Poor Used by the Wealthy? Evidence from China
Abstract: 
 Although microfinance has been proposed as a strategy to help the poor escape poverty, its effectiveness depends on accurately targeting those who need help. This study considers anti-poverty microloans from profit-oriented MFIs, such as micro-banks, from the demand side, and examines the reasons for targeting deviations in financial poverty alleviation of developing countries. Survey data of 415 households in 5 poverty-stricken counties in China for 2 years show anti-poverty microloan targeting deviations exist because some poor have no loan demand due to their lack of “intelligence” or “aspirations,” and thus do not apply to micro-banks. Moreover, the local elite exploit microloans targeted for the poor by virtue of their own resource advantages. Therefore, to alleviate financial poverty, programs must strive to improve the poor’s intellect and aspirations. It is also necessary to develop differentiated strategies for different types of MFIs.
Journal: Emerging Markets Finance and Trade
Pages: 1890-1911
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1694898
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694898
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:7:p:1890-1911




Template-Type: ReDIF-Article 1.0
Author-Name: Liming Hou
Author-X-Name-First: Liming
Author-X-Name-Last: Hou
Author-Name: Shao-Chieh Hsueh
Author-X-Name-First: Shao-Chieh
Author-X-Name-Last: Hsueh
Author-Name: Shuoxun Zhang
Author-X-Name-First: Shuoxun
Author-X-Name-Last: Zhang
Title: Digital Payments and Households’ Consumption: A Mental Accounting Interpretation
Abstract: 
 We explain the stimulating effect of digital payments on households’ consumption using mental accounting theory. With the China Household Finance Survey (CHFS) data in 2017, we empirically identify that households who use digital payments spend 20.63% more than those with alternative payment methods. From the mental accounting perspective, we argue that using digital payments increase consumers’ transaction utility, facilitate intentional adjustment of mental accounts, and result in more unplanned consumption. The stimulating effect is more substantial on long-term consumption and among households with low self-control abilities. Moreover, the integrated financial services provide access to liquidity and help smooth consumption.
Journal: Emerging Markets Finance and Trade
Pages: 2079-2093
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1887727
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1887727
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:7:p:2079-2093




Template-Type: ReDIF-Article 1.0
Author-Name: Su-Yol Lee
Author-X-Name-First: Su-Yol
Author-X-Name-Last: Lee
Author-Name: Dong-Kwon Choi
Author-X-Name-First: Dong-Kwon
Author-X-Name-Last: Choi
Title: Does Corporate Carbon Risk Management Mitigate the Cost of Debt Capital? Evidence from South Korean Climate Change Policies
Abstract: 
 Firms are increasingly required to address carbon risk engendered by rising carbon emissions and climate change. This study examines how the capital market reacts to firms’ carbon risk management in South Korea. By combining related research streams including the cost of capital, agency problem, signaling theory, and strategic environmental management, we present a hypothesis on the effects of carbon risk management in conjunction with government carbon policies on the cost of debt capital. The results of regression analysis and analysis of variance on 3,491 South Korean Exchange samples from 2010 through 2015 indicate that firms’ carbon risk management decreases the cost of debt capital in the financial market. The findings of this study build a better theoretical and practical understanding of the outcomes of strategic choices to improve carbon risk management as well as the effects of government carbon emission reduction policies on a nationwide scale.
Journal: Emerging Markets Finance and Trade
Pages: 2138-2151
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1647419
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1647419
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Template-Type: ReDIF-Article 1.0
Author-Name: Na Wang
Author-X-Name-First: Na
Author-X-Name-Last: Wang
Author-Name: Liangliang Wang
Author-X-Name-First: Liangliang
Author-X-Name-Last: Wang
Author-Name: Lirong Zhang
Author-X-Name-First: Lirong
Author-X-Name-Last: Zhang
Author-Name: Yin Yu
Author-X-Name-First: Yin
Author-X-Name-Last: Yu
Title: Tax Shelters, Reputational Costs and CEO Turnover: Evidence from Tax-Violating Enterprises in China
Abstract: 
 This paper investigates whether executives will bear reputational costs as a result of using tax shelters within different ownership structures. Based on tax-violation events of Chinese listed firms, we find that CEOs in state-owned enterprises are more likely to bear reputational costs than CEOs in non-state-owned enterprises and that the penalty on executives always occurs in the current year rather than in the subsequent year. In addition, the individual reputational cost of tax avoidance is related to tax aggressiveness and regulatory punishment. The more severe the tax aggressiveness or the regulatory punishment is, the greater the reputational cost of tax avoidance is for CEOs in SOEs. Our findings not only provide direct empirical evidence for the research on the corporate reputational costs of tax avoidance in an agency framework, but they also have great significance for understanding “the Under-Sheltering Puzzle.”
Journal: Emerging Markets Finance and Trade
Pages: 1986-2005
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2020.1768070
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1768070
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Template-Type: ReDIF-Article 1.0
Author-Name: Yueshu Zhou
Author-X-Name-First: Yueshu
Author-X-Name-Last: Zhou
Author-Name: Yuanyuan Peng
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Peng
Author-Name: Rashid Latief
Author-X-Name-First: Rashid
Author-X-Name-Last: Latief
Title: The Impact of Non-Interest Business Development on the Performance of Chinese Rural Commercial Banks
Abstract: 
 Since being restructured, Chinese rural commercial banks (RCBs) have had two goals: supporting the agricultural sector and sustainable development. This paper aims to analyze the effect of non-interest business development on the performance of RCBs. Our sample consists of 107 RCBs in eight provinces in eastern China. The results of the study demonstrated a U-shaped relationship between non-interest income and the performance of RCBs. The main reason is that at different stages of business development, non-interest business other than fees and commissions has achieved economies of scale. Further analysis found the existence of threshold effects on the performance of RCBs from the development non-interest business. When the cost ratio of non-interest business is higher than 0.2213, non-interest business development has a significant effect on the performance of RCBs.
Journal: Emerging Markets Finance and Trade
Pages: 1859-1877
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1711369
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1711369
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:7:p:1859-1877




Template-Type: ReDIF-Article 1.0
Author-Name: Yating Zeng
Author-X-Name-First: Yating
Author-X-Name-Last: Zeng
Author-Name: Peixiang Guo
Author-X-Name-First: Peixiang
Author-X-Name-Last: Guo
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: The Impact of Government Subsidies on Company Debt Financing: New Evidence from Chinese Listed Companies
Abstract: 
 Based on a sample of listed companies in the Chinese A-share market from 2007 to 2016, this paper examines the impact of government subsidies on the debt financing of companies. The empirical results show that government subsidies have a significant surplus improvement effect on the company debt financing scale, and the surplus improvement effect is more significant than the implicit guarantee effect on the company debt financing scale. Meanwhile, government subsidies have a significant implicit guarantee effect on the costs of debt financing, and the implicit guarantee effect is more significant than the surplus improvement effect on the costs of debt financing. Further studies indicate that in companies with internal financing gaps, government subsidies have a significant surplus improvement effect on the debt financing scale and a significant implicit guarantee effect on debt financing costs.
Journal: Emerging Markets Finance and Trade
Pages: 1843-1858
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1627519
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1627519
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:7:p:1843-1858




Template-Type: ReDIF-Article 1.0
Author-Name: Yuanyuan Peng
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Peng
Author-Name: Rashid Latief
Author-X-Name-First: Rashid
Author-X-Name-Last: Latief
Author-Name: Yueshu Zhou
Author-X-Name-First: Yueshu
Author-X-Name-Last: Zhou
Title: The Relationship between Agricultural Credit, Regional Agricultural Growth, and Economic Development: The Role of Rural Commercial Banks in Jiangsu, China
Abstract: 
 This paper examines the relationship between different forms of agricultural credit, regional agricultural growth, and regional economic development. The sample we study consists of 51 rural commercial banks operating in Jiangsu Province, China. For analytical purposes, a random-effects (RE) model and the generalized method of moments (GMM) are employed to analyze agricultural credit’s relationship to regional agricultural and economic growth. Our results reveal that overall agricultural loans have a significant positive effect on both regional agricultural and economic growth. Furthermore, loans to farmers and rural enterprises also have a significant positive relationship to both regional agricultural and economic growth. Moreover, farmers’ microcredit loans and student loans, rural individual industrial and commercial household loans, and other types of loans to farmers also have a significant positive relationship to regional agricultural growth. The latter two types also have a significant positive relationship to regional economic growth. We conclude that promoting agricultural credit from rural commercial banks stimulates regional agricultural growth and overall economic development in Jiangsu Province.
Journal: Emerging Markets Finance and Trade
Pages: 1878-1889
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2020.1829408
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1829408
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Template-Type: ReDIF-Article 1.0
Author-Name: Junchang Pan
Author-X-Name-First: Junchang
Author-X-Name-Last: Pan
Author-Name: Jing Chi
Author-X-Name-First: Jing
Author-X-Name-Last: Chi
Title: How Does the Shanghai-Hong Kong Stock Connect Policy Impact the A-H Share Premium?
Abstract: 
 Using a monthly panel data of 56 cross-listed companies from November 2011 to November 2017, this study finds that the Shanghai-Hong Kong Stock Connect Policy significantly reduces the A-H share premium and price disparity after controlling for various factors. In addition, with the recent availability of the fund flow data between the two markets, this paper provides the new evidence that the imbalanced demand of these two markets is a main explanation for the A-H share premium variations.
Journal: Emerging Markets Finance and Trade
Pages: 1912-1928
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1694899
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694899
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Template-Type: ReDIF-Article 1.0
Author-Name: Afees A. Salisu
Author-X-Name-First: Afees A.
Author-X-Name-Last: Salisu
Author-Name: Juncal Cuñado
Author-X-Name-First: Juncal
Author-X-Name-Last: Cuñado
Author-Name: Kazeem Isah
Author-X-Name-First: Kazeem
Author-X-Name-Last: Isah
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Oil Price and Exchange Rate Behaviour of the BRICS
Abstract: 
 We attempt to predict the exchange rate returns of the BRICS (Brazil, Russia, India, China, and South Africa) countries with the global oil price using monthly datasets covering the period of 1973 to 2020. We formulate a predictive model that accounts for the salient features of the predictor and the predicted series in line with the recent literature. We establish that oil price is a good predictor of exchange rate returns for both net oil exporters (Brazil and Russia) and net oil-importers (South Africa and China). The consideration of asymmetries improves the predictability of an oil-based model for exchange rate movements and ignoring the same may lead to wrong conclusions. Finally, all the variants of the oil-based model outperform the benchmark model albeit with higher out-of-sample forecast gains with a nonlinear (asymmetric) model.
Journal: Emerging Markets Finance and Trade
Pages: 2042-2051
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2020.1850440
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1850440
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:7:p:2042-2051




Template-Type: ReDIF-Article 1.0
Author-Name: Tian Liu
Author-X-Name-First: Tian
Author-X-Name-Last: Liu
Author-Name: Guangwen He
Author-X-Name-First: Guangwen
Author-X-Name-Last: He
Author-Name: Calum G. Turvey
Author-X-Name-First: Calum G.
Author-X-Name-Last: Turvey
Title: Inclusive Finance, Farm Households Entrepreneurship, and Inclusive Rural Transformation in Rural Poverty-stricken Areas in China
Abstract: 
 Financial inclusion is an important part of inclusive rural transformation because it provides access to, and use of, capital to underserved rural households. However, with increased entrepreneurial activities, it begs the question as to the extent by which access to credit actually encourages entrepreneurial activities. Using survey data of 988 farm households in state impoverished counties of China, we find that financial inclusion plays an important role in inclusive rural transformation by facilitating farm households’ entrepreneurial activities in rural poverty-stricken areas in China. The survey provides evidence that the entrepreneurial decisions of farm households are positively affected by use of credit rather than access to credit. In addition, when it comes to entrepreneurial decisions, use of formal credit and use of informal credit have no statistical relationship, but operate under separate and statistically distinct channels. Moreover, entrepreneurship has a positive and significant causal effect on income of farm households.
Journal: Emerging Markets Finance and Trade
Pages: 1929-1958
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2019.1694506
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694506
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Template-Type: ReDIF-Article 1.0
Author-Name: Hailian Xiao
Author-X-Name-First: Hailian
Author-X-Name-Last: Xiao
Author-Name: Chuanli Zhou
Author-X-Name-First: Chuanli
Author-X-Name-Last: Zhou
Author-Name: Kaijie Zhuang
Author-X-Name-First: Kaijie
Author-X-Name-Last: Zhuang
Author-Name: Jin He
Author-X-Name-First: Jin
Author-X-Name-Last: He
Title: Convergence Analysis of Chinese Corporations’ Debt Leverage Utilizing the Nonlinear Time-varying Factor Model
Abstract: 
 This study adopts the nonlinear time-varying factor model and the Mann–Kendall non-parametric rank-sequence test to assess the convergence of non-financial listed companies’ debt leverage in China from 1998 to 2017. The results indicate that there is no overall convergence in the debt leverage of non-financial listed companies in China; however, most companies’ debt leverage converges by ratio within different clubs. In addition, the study reveals the heterogeneous characteristics, formation mechanism, and dynamic evolution of corporate leverage convergence, and provides new empirical evidence for “deleveraging” policies and new perspectives for corporate leverage research.
Journal: Emerging Markets Finance and Trade
Pages: 2065-2078
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2020.1870953
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1870953
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Template-Type: ReDIF-Article 1.0
Author-Name: Edib Smolo
Author-X-Name-First: Edib
Author-X-Name-Last: Smolo
Author-Name: Mansor H. Ibrahim
Author-X-Name-First: Mansor H.
Author-X-Name-Last: Ibrahim
Author-Name: Ginanjar Dewandaru
Author-X-Name-First: Ginanjar
Author-X-Name-Last: Dewandaru
Title: Impact of Bank Concentration and Financial Development on Growth Volatility: The Case of Selected OIC Countries
Abstract: 
 This study investigates the impact of bank concentration and financial development on economic volatility for the Organization of Islamic Cooperation (OIC) member countries. Employing dynamic panel models, we find no evidence that bank concentration is significantly related to economic volatility when it is entered independently in the models. Meanwhile, financial development lowers economic volatility. Extending the models to include market structure–financial development interaction, we note that the impact of bank concentration on volatility depends on the level of financial development within OIC countries. More specifically, the volatility-increasing effect of bank concentration tends to be moderated by financial development. Accordingly, in the wake of banking sector consolidation in these countries, policymakers and regulators in OIC countries should focus on further developing their financial markets such that the negative consequences of resulting market concentration can be mitigated.
Journal: Emerging Markets Finance and Trade
Pages: 2094-2106
Issue: 7
Volume: 57
Year: 2021
Month: 05
X-DOI: 10.1080/1540496X.2021.1903869
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1903869
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Template-Type: ReDIF-Article 1.0
Author-Name: Shimin Chen
Author-X-Name-First: Shimin
Author-X-Name-Last: Chen
Author-Name: Weifang Han
Author-X-Name-First: Weifang
Author-X-Name-Last: Han
Author-Name: Qifeng Zhang
Author-X-Name-First: Qifeng
Author-X-Name-Last: Zhang
Title: Predecessor versus Acquisition: Evidence of Business Combination under Common Control from China
Abstract: 
 We investigate the value relevance of two different accounting methods, predecessor vs. acquisition, for business combination under common control (BCUCC) in China. Based on the return and price models, we find that net income under the predecessor method is of higher value relevance than that under the acquisition method. Further analysis suggests that the difference appears to be driven by uncertainties in fair value estimation surrounding the BCUCC and that net incomes under predecessor method can better predict future earnings and future operating cash flows than under the acquisition method. Our research provides some initial evidence to support the use of the predecessor method in China, and at the same time, we discuss implications for the IASB standard setting project for the BCUCC.
Journal: Emerging Markets Finance and Trade
Pages: 2356-2369
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2020.1829407
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1829407
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Template-Type: ReDIF-Article 1.0
Author-Name: Huifeng Xu
Author-X-Name-First: Huifeng
Author-X-Name-Last: Xu
Author-Name: Xiaodong Xu
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Xu
Author-Name: Junli Yu
Author-X-Name-First: Junli
Author-X-Name-Last: Yu
Title: The Impact of Mandatory CSR Disclosure on the Cost of Debt Financing: Evidence from China
Abstract: 
 This paper studies the impact of mandatory corporate social responsibility (CSR) disclosures on cost of debt financing (COD) in China, using a quasi-natural experiment that mandates a subset of listed firms to issue CSR reports. We find that these firms exhibit cheaper debt financing after they are subject to this mandate and easier access to long-term bank loans, and the decrease in the COD is more pronounced among firms with longer CSR reports and higher CSR scores and that follow Global Reporting Initiative (GRI) guidelines. In addition, we introduce regulatory theory to verify firms that are politically connected enjoy a greater reduction in the COD after the mandate than those that are not politically connected. Our results have important implications for our understanding of the economic consequences of mandatory CSR disclosures from the perspective of the debt market.
Journal: Emerging Markets Finance and Trade
Pages: 2191-2205
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1657401
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1657401
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Template-Type: ReDIF-Article 1.0
Author-Name: Omair Haroon
Author-X-Name-First: Omair
Author-X-Name-Last: Haroon
Author-Name: Mohsin Ali
Author-X-Name-First: Mohsin
Author-X-Name-Last: Ali
Author-Name: Abdullah Khan
Author-X-Name-First: Abdullah
Author-X-Name-Last: Khan
Author-Name: Mudeer A. Khattak
Author-X-Name-First: Mudeer A.
Author-X-Name-Last: Khattak
Author-Name: Syed Aun R. Rizvi
Author-X-Name-First: Syed Aun R.
Author-X-Name-Last: Rizvi
Title: Financial Market Risks during the COVID-19 Pandemic
Abstract: 
 This article examines the nature of time-varying systematic risk for both Islamic and non-Islamic sectoral indices during COVID-19. The novelty lies in the analysis of behavioral changes in beta as the global health crisis moved from an epidemic to a pandemic. Using daily stock market return data on 10 different industry sectors, we show that both Islamic and conventional indices depict a similar pattern, but Islamic equities exhibit lower risk, indicating a subdued reaction to market movements. However, as the COVID-19 evolves from an epidemic to a pandemic the trend changes, with Consumer Services, Financials, Healthcare, and Oil & Gas sector betas depicting an overreaction in Islamic equities. These results remain robust to multiple additional tests. On this basis, we argue that a lower systematic risk of Islamic equities can offer portfolio diversification opportunities.
Journal: Emerging Markets Finance and Trade
Pages: 2407-2414
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2021.1873765
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1873765
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Template-Type: ReDIF-Article 1.0
Author-Name: Chengguo Zhao
Author-X-Name-First: Chengguo
Author-X-Name-Last: Zhao
Author-Name: Meng Li
Author-X-Name-First: Meng
Author-X-Name-Last: Li
Author-Name: Lei Zhuang
Author-X-Name-First: Lei
Author-X-Name-Last: Zhuang
Author-Name: Jun Wang
Author-X-Name-First: Jun
Author-X-Name-Last: Wang
Title: Platform Heterogeneity, Competitive Relationship, and Network Lending Efficiency
Abstract: 
 This study investigates the operation mechanism and pricing principle of network lending by comparing the characteristics of the financing mode of different financial platforms using theory of network economics. With data from over 400 P2P network lending platforms from October 2013 to May 2017, this study examines the financing efficiency of network lending platforms from the perspectives of transaction size and time. Empirical results show that the extrusion and demonstration effects of investors and borrowers are substantial, respectively, and competitive relationship changes over time. The identity background of these platforms influences network lending, but the efficiency of lending in a heterogeneous platform is minimal. It must reduce risks by optimizing the governance structure of network lending platforms.
Journal: Emerging Markets Finance and Trade
Pages: 2271-2289
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1694890
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694890
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Template-Type: ReDIF-Article 1.0
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name: Gen-Fu Feng
Author-X-Name-First: Gen-Fu
Author-X-Name-Last: Feng
Author-Name: Mingbo Zheng
Author-X-Name-First: Mingbo
Author-X-Name-Last: Zheng
Title: Government Fighting Pandemic, Stock Market Return, and COVID-19 Virus Outbreak
Abstract: 
 We investigate the effect of the governments’ responses to fighting the COVID-19 pandemic on the returns in the stock market index. Panel data of 20 countries are used spanning January 2 to July 21, 2020, for the dynamic panel model. The results indicate that the overall government response, containment and health, and stringency indices have a significantly positive effect on stock market returns. Specifically, government policy responses of shutting down workplaces, canceling public events, restricting public gatherings and international travel, providing income support, and implementing fiscal measures can increase stock market returns. Our evidence shows that the stock market does not react significantly to government interventions in the health system. We believe that our findings provide valuable information for policymakers and financial investors around the world.
Journal: Emerging Markets Finance and Trade
Pages: 2389-2406
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2021.1873129
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1873129
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Template-Type: ReDIF-Article 1.0
Author-Name: Shanshan Ma
Author-X-Name-First: Shanshan
Author-X-Name-Last: Ma
Author-Name: Wei Xing
Author-X-Name-First: Wei
Author-X-Name-Last: Xing
Author-Name: Xiaohua Liu
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Liu
Author-Name: Liyan Wang
Author-X-Name-First: Liyan
Author-X-Name-Last: Wang
Title: Advance Booking Discount for Risk-Averse Firm in the Presence of Spot Market
Abstract: 
 We consider a risk-averse firm that procure intermediate goods through forward contract as well as in a B2B spot market and then use those goods to produce seasonal products. We examine when and why a risk-averse firm implements advance booking discount program. The firm that adopts this program initially decides the optimal discount coefficient and subsequently determines the order quantity of the forward contract. During the selling season, the firm can trade the intermediate goods on the B2B spot market. Our study finds that if the product has a relatively low wholesale price and the coefficient of variation in demand is relatively high, it is optimal for the firm to sell the product with a discount prior to the selling season. By contrast, the firm should not offer a discount if the product has a low wholesale price where the coefficient of variation in demand is relatively low or a relatively high wholesale price.
Journal: Emerging Markets Finance and Trade
Pages: 2246-2258
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1623782
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1623782
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Template-Type: ReDIF-Article 1.0
Author-Name: Aline Damasceno Pellicani
Author-X-Name-First: Aline Damasceno
Author-X-Name-Last: Pellicani
Author-Name: Aquiles Elie Guimarães Kalatzis
Author-X-Name-First: Aquiles Elie Guimarães
Author-X-Name-Last: Kalatzis
Author-Name: Dante Mendes Aldrighi
Author-X-Name-First: Dante Mendes
Author-X-Name-Last: Aldrighi
Title: Family Control, Pyramidal Ownership and Investment-Cash Flow Sensitivity: Evidence from an Emerging Economy
Abstract: 
 We investigate the effect of pyramidal ownership and family control on the investment-cash flow sensitivity of Brazilian firms using financial constraint indexes to classify firms. For constrained firms, we find that family control does not directly influence the investment-cash flow sensitivity, while for unconstrained firms, family control has a negative effect on investment decisions. However, the active involvement of the controlling family on the board increases the investment-cash flow of unconstrained firms, possibly aggravating agency problems. Regarding pyramidal ownership, we provide evidence that is consistent with the idea of the internal transfer of funds among firms that possess the arrangement structure.
Journal: Emerging Markets Finance and Trade
Pages: 2426-2446
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1648249
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1648249
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Template-Type: ReDIF-Article 1.0
Author-Name: Na Gong
Author-X-Name-First: Na
Author-X-Name-Last: Gong
Author-Name: Wai Fong Boh
Author-X-Name-First: Wai Fong
Author-X-Name-Last: Boh
Author-Name: Anne Wu
Author-X-Name-First: Anne
Author-X-Name-Last: Wu
Author-Name: Tsuilin Kuo
Author-X-Name-First: Tsuilin
Author-X-Name-Last: Kuo
Title: Leniency Bias in Subjective Performance Evaluation: Contextual Uncertainty and Prior Employee Performance
Abstract: 
 This study examines the influence of contextual uncertainty on leniency biases exhibited in supervisors’ ratings of employees. We conduct a field study examining the performance evaluation of employees in two organizations in China over a four-year period. We focused on two key contextual factors that affect supervisors’ uncertainty in evaluating employees’ performance: supervisors’ span of control and employees’ job non-routineness. Our results show that different forms of uncertainty (supervisor span of control vs. job non-routineness) influence leniency bias, and they moderate prior employee performance on leniency bias in different ways. The study of leniency bias over a longitudinal period in two separate organizations provides a rare opportunity for examining the effect of context on leniency bias, compared to current studies on leniency bias, which tend to focus on lab settings or a single organization.
Journal: Emerging Markets Finance and Trade
Pages: 2176-2190
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1660161
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1660161
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Template-Type: ReDIF-Article 1.0
Author-Name: Feng Guan
Author-X-Name-First: Feng
Author-X-Name-Last: Guan
Author-Name: Usha R. Mittoo
Author-X-Name-First: Usha R.
Author-X-Name-Last: Mittoo
Author-Name: Zhou Zhang
Author-X-Name-First: Zhou
Author-X-Name-Last: Zhang
Title: Investment to Cash Flow Sensitivity: Evidence from Manufacturing and Energy Sectors
Abstract: 
 The persistent decline in investment-cash flow sensitivity (ICFS) in U.S. manufacturing firms has raised questions about what causes ICFS and its decline. We examine ICFS in U.S. and Canadian energy firms which have higher asset tangibility that changes little over time compared to manufacturing firms. We find that ICFS is dominated by investment–cash flow–tangible capital sensitivity and that there is no persistent ICFS decline in the energy sector. We further use two cycles of the oil price boom and bust (2004–2015) as a natural experiment to distinguish between financial constraint and asset tangibility explanations and find that the asset tangibility hypothesis can better explain the findings. Our findings have implications for emerging economies with the oil sector as the main driver of the economy and suggest that fiscal and economic policies could mitigate the adverse effects of these oil price shocks on the economy.
Journal: Emerging Markets Finance and Trade
Pages: 2206-2229
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1629902
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1629902
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:8:p:2206-2229




Template-Type: ReDIF-Article 1.0
Author-Name: Jiapeng Liu
Author-X-Name-First: Jiapeng
Author-X-Name-Last: Liu
Author-Name: Hong Qiu
Author-X-Name-First: Hong
Author-X-Name-Last: Qiu
Author-Name: Xiaoli Zhao
Author-X-Name-First: Xiaoli
Author-X-Name-Last: Zhao
Author-Name: Yingjun Zhu
Author-X-Name-First: Yingjun
Author-X-Name-Last: Zhu
Title: Modeling Optimal Pension Fund Asset Allocation in a Dynamic Capital Market
Abstract: 
 In this paper, we model optimal pension fund asset allocation strategy in a dynamic capital market by expanding the static capital market line in classical finance theory to a dynamic, time-varying capital market surface. We construct pension fund asset allocation model under certain market trend and solve for the best asset allocation path for pension funds. Using the optimal control theory (minimum principle) to verify the model, we obtain consistent conclusions. This model can not only adapt to the long-term market trend, but also capture market adjustment, and is consistent with the actual condition of pension fund investment.
Journal: Emerging Markets Finance and Trade
Pages: 2323-2330
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1603521
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1603521
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:8:p:2323-2330




Template-Type: ReDIF-Article 1.0
Author-Name: Xiuzhen Li
Author-X-Name-First: Xiuzhen
Author-X-Name-Last: Li
Author-Name: Xiangjin Wang
Author-X-Name-First: Xiangjin
Author-X-Name-Last: Wang
Author-Name: Yun Zhang
Author-X-Name-First: Yun
Author-X-Name-Last: Zhang
Author-Name: Xiao Miao
Author-X-Name-First: Xiao
Author-X-Name-Last: Miao
Title: Spatial Differences in Emission Reduction Effect of Servitization of Manufacturing Industry Export in China
Abstract: 
 Manufacturing servitization may reduce energy consumption and achieve low-carbonization of global value chain. We calculated and analyzed carbon emissions embodied in export and manufacturing servitization with China as research object, and found that spatial clustering characteristics of export-embodied carbon emissions and spatial differences in emission reduction effect were significant, and reduction effect of manufacturing servitization on export-embodied carbon emissions in eastern and northeastern China has a stronger role than in other regions. So countries should strengthen coordination of cross-regional inter-industry value chains, and reduce manufacturing emissions by improving servitization.
Journal: Emerging Markets Finance and Trade
Pages: 2331-2355
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2020.1799782
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1799782
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Template-Type: ReDIF-Article 1.0
Author-Name: Hai-Jie Wang
Author-X-Name-First: Hai-Jie
Author-X-Name-Last: Wang
Author-Name: Kang an
Author-X-Name-First: Kang
Author-X-Name-Last: an
Author-Name: Mingbo Zheng
Author-X-Name-First: Mingbo
Author-X-Name-Last: Zheng
Title: Who has done a better job in fighting the COVID-19 epidemic? Left or Right?
Abstract: 
 This research examines the impact of government ideology on fighting the COVID-19 pandemic based on the daily data of 143 countries from January 1, 2020 to January 31, 2021. By using the panel corrected standard errors model, the results show that a right-wing ruling party is linked with a greater number of new daily confirmed cases and deaths of COVID-19. This impact also appears in the samples of non-OECD countries and Asian countries, and the impact of government ideology on the COVID-19 epidemic is more pronounced in Asian countries. Moreover, we find that government ideology had no effect on COVID-19 before March 11, 2020, while after that time it played a significant role in controlling the epidemic, because of the announcement of a “global pandemic” from the World Health Organization on March 11. In sum, our findings deepen the understanding of the relationship between government ideology and COVID-19 epidemic.
Journal: Emerging Markets Finance and Trade
Pages: 2415-2425
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2021.1908259
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1908259
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Template-Type: ReDIF-Article 1.0
Author-Name: Bo Huang
Author-X-Name-First: Bo
Author-X-Name-Last: Huang
Author-Name: Xi Fang
Author-X-Name-First: Xi
Author-X-Name-Last: Fang
Title: Market Sentiment, Valuation Heterogeneity, and Corporate Investment: Evidence from China’s A-Share Stock Market
Abstract: 
 We study the heterogeneous valuation of Chinese A-share stocks caused by high or low market sentiment and its impact on corporate investment during 2005Q3–2015Q2. We divide stocks into three types based on sentiment betas. We find that for “speculative” (and “bond-like”) stocks, overvaluation from high (low) sentiment increases corporate investment, but undervaluation from low (high) sentiment can be arbitraged away; “investment-Q” sensitivity is relatively weak. For “rationally valued” stocks, corporate investment is positively correlated with valuation and has no consistent relationship with market sentiment. However, changes in market sentiment can reduce the reliance of managers’ investment decisions on valuation.
Journal: Emerging Markets Finance and Trade
Pages: 2230-2245
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1672531
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1672531
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:8:p:2230-2245




Template-Type: ReDIF-Article 1.0
Author-Name: Dekui Jia
Author-X-Name-First: Dekui
Author-X-Name-Last: Jia
Author-Name: Ruihai Li
Author-X-Name-First: Ruihai
Author-X-Name-Last: Li
Author-Name: Shibo Bian
Author-X-Name-First: Shibo
Author-X-Name-Last: Bian
Author-Name: Christopher Gan
Author-X-Name-First: Christopher
Author-X-Name-Last: Gan
Title: Financial Planning Ability, Risk Perception and Household Portfolio Choice
Abstract: 
 Using data from the 2014 China Family Panel Studies survey (CFPS), we investigate the effects of financial planning ability and risk perception on household portfolio choice. Our findings show that households with greater financial planning ability are more likely to invest in financial markets and hold a larger proportion of risky financial assets. The empirical results suggest that a higher level of risk perception leads to more market participation and risky assets holding. Compared with the insignificant effect of financial literacy, we find that financial planning ability significantly affects household investment earnings, and high financial planning ability tends to contribute to a positive investment return.
Journal: Emerging Markets Finance and Trade
Pages: 2153-2175
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1643319
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1643319
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Template-Type: ReDIF-Article 1.0
Author-Name: Yujiang Bi
Author-X-Name-First: Yujiang
Author-X-Name-Last: Bi
Author-Name: Guangyi Xin
Author-X-Name-First: Guangyi
Author-X-Name-Last: Xin
Title: Analysis of Economic Shock Effects between China and ASEAN: An Empirical Study Based on Multinational VAR
Abstract: 
 This paper investigates the interaction mechanism of economic and trade shocks between ASEAN (Association of Southeast Asian Nations) and China by building a GVAR model. The results indicate that the effects of China’s economic shocks on ASEAN are more distinct than ASEAN’s shocks on China. Negative shocks on China’s growth rate produce negative effects on ASEAN’s economic growth rate. The positive inflation shocks to China’s economy produce long-lasting and prominent impacts on ASEAN’s inflation rate and raise ASEAN’s import and export rate. When China’s export growth rate suffers a negative shock, ASEAN countries’ economic growth rate declines. When ASEAN countries suffer a negative shock, the effects on China’s growth rate, foreign trade, and inflation are quite moderate, but the renminbi depreciates rapidly.
Journal: Emerging Markets Finance and Trade
Pages: 2290-2306
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1623783
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1623783
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:8:p:2290-2306




Template-Type: ReDIF-Article 1.0
Author-Name: Wang Ping
Author-X-Name-First: Wang
Author-X-Name-Last: Ping
Author-Name: Feng Wang
Author-X-Name-First: Feng
Author-X-Name-Last: Wang
Author-Name: Aihua Wang
Author-X-Name-First: Aihua
Author-X-Name-Last: Wang
Author-Name: Yuncheng Huang
Author-X-Name-First: Yuncheng
Author-X-Name-Last: Huang
Title: Risk Early Warning Research on China’s Futures Company
Abstract: 
 Having effective and reliable risk management is essential for the development of futures trading companies in China. Research analyzing early warnings on related risks for futures trading companies in China have important theoretical and empirical value. In this paper, we take the period during which fluctuation in extreme market risk occurred as the verification period and design overall risk indicators and equations to measure market risk for futures trading companies. We built an early risk warning model using extreme learning machine technology. We tested our model’s validity using statistics from China’s futures market. Empirical evidence shows that our model is more accurate than models based on the support vector machine, logistic regression, and the back-propagation neural network.
Journal: Emerging Markets Finance and Trade
Pages: 2259-2270
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1689355
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1689355
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhukun Lou
Author-X-Name-First: Zhukun
Author-X-Name-Last: Lou
Author-Name: Siyu Chen
Author-X-Name-First: Siyu
Author-X-Name-Last: Chen
Author-Name: Yingya Jia
Author-X-Name-First: Yingya
Author-X-Name-Last: Jia
Author-Name: Xiaoyu Yu
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Yu
Title: Business Group Affiliation and R&D Investment: Evidence from China
Abstract: 
 This study investigates whether business group (BG) affiliation helps member firms overcome market imperfections in accessing capital for research and development (R&D). Using the data of Chinese listed firms, we find that BG affiliation is positively associated with firms’ R&D intensity. Moreover, the positive association between BG affiliation and R&D intensity is more pronounced when firms are affiliated to a larger BG or the firms’ own financial constraints are higher. We document that BG affiliation has stronger impacts on R&D investment in regions with lower-level marketization than in ones with higher marketization. Our findings provide new evidence for institutional void theory in China.
Journal: Emerging Markets Finance and Trade
Pages: 2307-2322
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1642195
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1642195
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Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Alawadhi
Author-X-Name-First: Ahmad
Author-X-Name-Last: Alawadhi
Author-Name: Nayef Al-Shammari
Author-X-Name-First: Nayef
Author-X-Name-Last: Al-Shammari
Author-Name: Wael Alshuwaiee
Author-X-Name-First: Wael
Author-X-Name-Last: Alshuwaiee
Title: Effects of the EU-GCC Economic Agreement on the Margins of Trade
Abstract: 
 In 1988, the European Union (EU) and the Gulf Cooperation Council (GCC) signed an economic agreement. In 1991, negotiations began on a Free Trade Agreement (FTA) between the two regions; those negotiations were suspended in 2008. This article investigates the effects of the 1988 EU-GCC Economic Agreement on the margins of trade between the two regions. Given the large size of trade between the EU and the GCC, there could be larger gains from more trade liberalization between the two regions. Therefore, a gravity model of international trade was applied to a set of extensive and intensive margins of bilateral trade flows among 57 countries representing the EU, GCC, and their major trade partners during the period of 1980–2015. The results suggest that the EU-GCC economic agreement led to significant, yet small increase in trade mainly along the extensive margin. Accordingly, these findings indicate that the proposed FTA can have a positive effect on trade for both blocs.
Journal: Emerging Markets Finance and Trade
Pages: 2370-2388
Issue: 8
Volume: 57
Year: 2021
Month: 06
X-DOI: 10.1080/1540496X.2019.1696188
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1696188
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:8:p:2370-2388




Template-Type: ReDIF-Article 1.0
Author-Name: Hakan Öztunç
Author-X-Name-First: Hakan
Author-X-Name-Last: Öztunç
Author-Name: Mehmet Orhan
Author-X-Name-First: Mehmet
Author-X-Name-Last: Orhan
Title: Gold Demand by Central Banks: A Comparative Study of Emerging Market and Advanced Economies
Abstract: 
 This study investigates the determinants of gold holdings by advanced and emerging market economies for a sample spanning a twenty-eight-year period from 1990 to 2017, including the recent global financial crisis. The dataset is interpreted using panel regression analysis with gold reserves as a dependent variable after fixing the coefficients of the cointegrating relation . Some of the factors affecting gold reserves are differentiated in selected emerging market and advanced economies. While most of the significant factors are common to both groups, energy imports seem to be the distinguishing indicator among the advanced economies. Advanced economies are ranked using the results of the panel corrected standard errors (PCSE) fixed-effects model, whereas emerging market economy results are given according to random effects. This is strongly supported by an economic rationale to hold sizable reserves of gold especially during periods of “heightened uncertainty.”
Journal: Emerging Markets Finance and Trade
Pages: 2687-2698
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1660160
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1660160
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2687-2698




Template-Type: ReDIF-Article 1.0
Author-Name: Morteza Ghasemzadeh
Author-X-Name-First: Morteza
Author-X-Name-Last: Ghasemzadeh
Author-Name: Mehdi Heydari
Author-X-Name-First: Mehdi
Author-X-Name-Last: Heydari
Author-Name: Gholamreza Mansourfar
Author-X-Name-First: Gholamreza
Author-X-Name-Last: Mansourfar
Title: Earning Volatility, Capital Structure Decisions and Financial Distress by SEM
Abstract: 
 The article investigates the relationship between earning volatility and capital structure and in particular, aims to contribute to prior research by examining the moderating role of financial distress on the relationship between earning volatility and capital structure. Thus, we employ a MIMIC model of Structural Equations Modeling (SEM) approach to examine the associations, which enables us to measure the earning volatility and capital structure by a few best indicators. Using 902 firm-year observations listed in the Tehran Stock Exchange (TSE) from 2006 to 2017, we find that earning volatility has a significant and negative impact on capital structure. In addition, the results indicate that financial distress significantly affects the relationship between earning volatility and capital structure. In short, when financial distress acts as a moderating variable, the relationship between earning volatility and capital structure is weaker than the time when there is no such variable.
Journal: Emerging Markets Finance and Trade
Pages: 2632-2650
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1663729
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1663729
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2632-2650




Template-Type: ReDIF-Article 1.0
Author-Name: Yongjun Tang
Author-X-Name-First: Yongjun
Author-X-Name-Last: Tang
Author-Name: Yuxin Shen
Author-X-Name-First: Yuxin
Author-X-Name-Last: Shen
Author-Name: Qinglong Yang
Author-X-Name-First: Qinglong
Author-X-Name-Last: Yang
Author-Name: Zhihui Zhao
Author-X-Name-First: Zhihui
Author-X-Name-Last: Zhao
Title: Evaluation and Effect of Carbon Disclosure Quality in China: Based on the Perspective of Investor Protection
Abstract: 
 To evaluate the carbon disclosure quality of China’s Shenzhen-Shanghai listed companies and its impact on investor protection, this paper constructs an evaluation index framework for carbon disclosure quality. The content analysis and principal component factor analysis methods were used to calculate the index score of the carbon disclosure quality, while empirical research on investor protection indexes was carried out by the method of variance weighting. This study found that an improvement in carbon disclosure quality can effectively protect the interests of investors, especially those of controlling shareholders and minority shareholders, but the degree of protection of large shareholders’ interests decreases with the improvement in the quality of carbon disclosure.
Journal: Emerging Markets Finance and Trade
Pages: 2542-2559
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1680539
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1680539
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2542-2559




Template-Type: ReDIF-Article 1.0
Author-Name: Fahad Ali
Author-X-Name-First: Fahad
Author-X-Name-Last: Ali
Author-Name: Muhammad Usman Khurram
Author-X-Name-First: Muhammad Usman
Author-X-Name-Last: Khurram
Author-Name: Yuexiang Jiang
Author-X-Name-First: Yuexiang
Author-X-Name-Last: Jiang
Title: The Five-Factor Asset Pricing Model Tests and Profitability and Investment Premiums: Evidence from Pakistan
Abstract: 
 Using an extensive sample of the Pakistani stock market over the 2003–2016 period, this paper is the first to evaluate and compare the performance of four most popular factor pricing models: the Fama and French three-factor model, Carhart’s four-factor model, the five-factor model proposed by Fama and French, and the six-factor model that adds momentum to the five-factor model. We also test different nested models and find that the five-factor model best explains the returns of anomaly portfolios and outperforms the other models. We note that the profitability factor significantly improves the description of average returns, whereas factor spanning tests show that the value and momentum factors are redundant for the Pakistani stock market. Our results are robust to alternative factor definitions, formation of test assets, and across sub-periods.
Journal: Emerging Markets Finance and Trade
Pages: 2651-2673
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1650738
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1650738
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2651-2673




Template-Type: ReDIF-Article 1.0
Author-Name: Chengyong Yu
Author-X-Name-First: Chengyong
Author-X-Name-Last: Yu
Author-Name: Rui Cheng
Author-X-Name-First: Rui
Author-X-Name-Last: Cheng
Author-Name: Cheng Zhang
Author-X-Name-First: Cheng
Author-X-Name-Last: Zhang
Author-Name: Huijuan Wang
Author-X-Name-First: Huijuan
Author-X-Name-Last: Wang
Title: Economic Development, Institutional Quality, and the Scale Effect Puzzle of Cross-Border M&As: Evidence from a Meta-Analysis Model
Abstract: 
 The existence of the scale effect puzzle of cross-border mergers and acquisitions (M&As) erodes the foundation of antitrust supervision and reduces large enterprises’ enthusiasm for pursuing cross-border M&As. This study investigates the puzzle of the scale effect from the perspective of economic development and institutional quality. Through the meta-analysis mean value technique and the meta-regression equation model, the study finds that the mean value of the cross-border M&A scale effect is positive and significant, indicating that cross-border M&A performance increases alongside the scale. In addition, the study provides evidence that the scale effect of cross-border M&A is declining as economic development and institutional quality increase, indicating that these factors are more conducive to small-scale companies seeking foreign acquisitions to become bigger and stronger.
Journal: Emerging Markets Finance and Trade
Pages: 2514-2541
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1694884
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694884
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2514-2541




Template-Type: ReDIF-Article 1.0
Author-Name: Huan Dou
Author-X-Name-First: Huan
Author-X-Name-Last: Dou
Author-Name: Antai Li
Author-X-Name-First: Antai
Author-X-Name-Last: Li
Author-Name: Yonggen Luo
Author-X-Name-First: Yonggen
Author-X-Name-Last: Luo
Title: Innovation in Business Groups: Evidence from China
Abstract: 
 This paper examines the innovation in companies within business groups. Compared with stand-alone companies, companies within business groups invest more in innovation activities. Further analysis shows that companies within business groups are supported by stronger cash flow from their parent companies and under competition pressure from peer firms within business groups. The effect is more pronounced in the firms in the high-tech industry and competitive regions. The results are consistent with various endogenous and robustness tests.
Journal: Emerging Markets Finance and Trade
Pages: 2503-2513
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2020.1859365
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1859365
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2503-2513




Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Author-Name: Chi Keung Marco Lau
Author-X-Name-First: Chi Keung Marco
Author-X-Name-Last: Lau
Author-Name: Fatma Öğücü Şen
Author-X-Name-First: Fatma Öğücü
Author-X-Name-Last: Şen
Author-Name: Shixuan Wang
Author-X-Name-First: Shixuan
Author-X-Name-Last: Wang
Title: Market Integration between Turkey and Eurozone Countries
Abstract: 
 This study examines the degree of integration of the Turkish economy and European markets as well as the nature of price convergences across major cities for common categories of goods. A series of unit root tests are performed to assess these price convergences by considering non-linearity, cross-sectional correlations, and structural breaks. We find that the Turkish and European markets are well-integrated. Moreover, Turkey’s highest rate of convergence occurs in the fresh fruits and vegetables (supermarkets) and canned goods (mid-priced stores) categories, suggesting arbitrage activities exist across common categories of goods.
Journal: Emerging Markets Finance and Trade
Pages: 2674-2686
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1658070
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658070
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2674-2686




Template-Type: ReDIF-Article 1.0
Author-Name: Safi Ullah Khan
Author-X-Name-First: Safi Ullah
Author-X-Name-Last: Khan
Author-Name: Attaullah Shah
Author-X-Name-First: Attaullah
Author-X-Name-Last: Shah
Author-Name: Mohammad Faisal Rizwan
Author-X-Name-First: Mohammad Faisal
Author-X-Name-Last: Rizwan
Title: Do Financing Constraints Matter for Technological and Non-technological Innovation? A (Re)examination of Developing Markets
Abstract: 
 Drawing on a rich data from the World Bank Enterprise Surveys from twenty-one countries, this paper finds consistent evidence of the role of financial frictions as an impediment to a firm’s likelihood of introducing technological innovations as well as soft forms (e.g., organizational-managerial and marketing innovations). After controlling for endogeneity concerns, we show that this empirical evidence is robust to alternative indicators of financing constraints, complementarity between innovation types, and various subsamples of potential innovators and non-innovators. Furthermore, in a first, we find that financing constraints’ impact decreases in the degree of innovation radicalness. In other words, the impact of financing constraints is stronger for incremental innovation than it is for radical innovations, highlighting the need to take into account the degree of innovation radicalness in assessing the finance-innovation nexus. These findings suggest a crucial role for bank-based financing in promoting various types of innovation in developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 2739-2766
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1695593
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695593
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2739-2766




Template-Type: ReDIF-Article 1.0
Author-Name: Zhenkun Wang
Author-X-Name-First: Zhenkun
Author-X-Name-Last: Wang
Author-Name: Zhihong Zhang
Author-X-Name-First: Zhihong
Author-X-Name-Last: Zhang
Author-Name: Han Zhang
Author-X-Name-First: Han
Author-X-Name-Last: Zhang
Title: Can Institutional Investors Improve Voluntary Management Earnings Forecasts?
Abstract: 
 We use data from 2010 to 2016 on listed companies in China to study the relationship between heterogeneous institutional investors and voluntary management earnings forecasts. We find that active institutional investors have a significantly negative influence on voluntary management earnings forecast only when the proportion of active institutional investors is in the upper 50 quartiles. Further studies show that, first, the inhibitory effect of active institutional investors on voluntary earnings forecasts mainly affects speculative active institutional investors and unstable active institutional investors. Second, boards that function better can significantly reduce the inhibitory effect of active institutional investors on the company‘s voluntary disclosures, and this inhibition occurs only with boards that do not have good governance. We also find that the overall shareholding of institutional investors significantly inhibits the company‘s voluntary management earnings forecasts, indicating that institutional investors should improve their supervision and governance role in voluntary management earnings forecasts at listed companies in China.
Journal: Emerging Markets Finance and Trade
Pages: 2560-2582
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1613644
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1613644
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2560-2582




Template-Type: ReDIF-Article 1.0
Author-Name: Nanyan Dong
Author-X-Name-First: Nanyan
Author-X-Name-Last: Dong
Author-Name: Fangjun Wang
Author-X-Name-First: Fangjun
Author-X-Name-Last: Wang
Author-Name: Junrui Zhang
Author-X-Name-First: Junrui
Author-X-Name-Last: Zhang
Title: Voluntary Management Earnings Forecasts and Value Relevance in Financial Reports
Abstract: 
 We propose a positive association between voluntary MEFs and the value relevance of earnings in audited financial reports based on the confirmation, signaling, and expectation management effects of voluntary MEFs. China is characterized by a weaker information environment, which provides a meaningful institutional setting for testing the usefulness of MEFs. We find that firms that provide voluntary MEFs have significantly higher value relevance of earnings and earnings components (i.e., operating cash flows and normal/abnormal accruals) in financial reports. We also find that the specificity of MEFs is associated with higher value relevance of earnings. In a placebo test, we do not find a similar relation between MEFs and the value relevance of balance-sheet items in most regressions, indicating that our findings are unlikely to be driven by other differences in fundamentals. Our findings are robust to different research designs and confirm the usefulness of voluntary MEFs in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 2478-2502
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1695121
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695121
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2478-2502




Template-Type: ReDIF-Article 1.0
Author-Name: Shangkun Liang
Author-X-Name-First: Shangkun
Author-X-Name-Last: Liang
Author-Name: Xiangqin Qi
Author-X-Name-First: Xiangqin
Author-X-Name-Last: Qi
Author-Name: Fu Xin
Author-X-Name-First: Fu
Author-X-Name-Last: Xin
Author-Name: Jingwen Zhan
Author-X-Name-First: Jingwen
Author-X-Name-Last: Zhan
Title: Pyramidal Ownership Structure and Firms’ Audit Fees
Abstract: 
 Using the sample of listed firms in China from 2004 to 2014, this paper investigates the impact of pyramidal ownership structure on firms’ audit fees. The results show that (1) generally, the greater the number of pyramidal layers, the more audit fees the firm pays; (2) compared with non-state-owned firms, this relationship is weaker in state-owned firms. Additional tests show that the number of pyramidal layers has a stronger impact on audit fees in firms whose voting rights and cash flow rights are separated. However, CEO duality and management ownership do not affect this relationship. Moreover, in state-owned firms, the positive relationship between the number of pyramidal layers and audit fees only exists in those firms whose ultimate controllers’ administrative level is lower. This paper expands the studies on the consequences of pyramidal ownership structure and introduces shareholding structure into the research on determinants of audit fees.
Journal: Emerging Markets Finance and Trade
Pages: 2447-2477
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1706479
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1706479
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2447-2477




Template-Type: ReDIF-Article 1.0
Author-Name: Yan Zhang
Author-X-Name-First: Yan
Author-X-Name-Last: Zhang
Author-Name: François Derrien
Author-X-Name-First: François
Author-X-Name-Last: Derrien
Author-Name: Xiaohui Wu
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Wu
Author-Name: Qi Zeng
Author-X-Name-First: Qi
Author-X-Name-Last: Zeng
Title: The Unintended Consequences of Regulations in Emerging Financial Markets: Evidence from the Chinese IPO Market
Abstract: 
 This paper explores the impact of regulations imposed by Chinese authorities on the development of the Chinese IPO market. Because of limits on prices and proceeds, the Chinese IPO market does not attract companies that need cash the most. Some regulations exclude firms from the domestic IPO market. Other regulations induce firms with large growth options to list abroad. Some IPO firms that raise large amounts of cash decide to pay large dividends shortly after going public. Investors interpret this behavior as evidence that they overestimated the growth options of these firms at the time of their IPO and react accordingly.
Journal: Emerging Markets Finance and Trade
Pages: 2583-2603
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1689118
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1689118
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2583-2603




Template-Type: ReDIF-Article 1.0
Author-Name: Angela C. Lyons
Author-X-Name-First: Angela C.
Author-X-Name-Last: Lyons
Author-Name: Josephine Kass-Hanna
Author-X-Name-First: Josephine
Author-X-Name-Last: Kass-Hanna
Title: Financial Inclusion, Financial Literacy and Economically Vulnerable Populations in the Middle East and North Africa
Abstract: 
 Using microdata from the 2014 Global Findex, along with macroeconomic indicators, we investigate financial inclusion for the MENA region. We find that economically vulnerable populations are significantly less likely to be financially included. Households living in MENA countries with higher levels of financial literacy are more likely to be engaged in positive savings behaviors and less likely to be borrowing, especially from informal sources. Financial literacy and other macro characteristics, however, do not relate to all individuals equally, especially for those most vulnerable. The findings have important implications for policies in the MENA region, where prolonged conflicts make financial inclusion an even more urgent, yet challenging, goal.
Journal: Emerging Markets Finance and Trade
Pages: 2699-2738
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1598370
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1598370
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2699-2738




Template-Type: ReDIF-Article 1.0
Author-Name: Zihui Xu
Author-X-Name-First: Zihui
Author-X-Name-Last: Xu
Author-Name: Pingui Rao
Author-X-Name-First: Pingui
Author-X-Name-Last: Rao
Title: Does Guarantee Network Reduce Firms’ Earnings Management?
Abstract: 
 Using data from China, this paper investigates the effect of a guarantee network on firms’ earnings management. The results suggest that guarantee networks significantly reduce earnings management and this effect is more pronounced under tight monetary policy. Further analyses suggest that guarantee networks reduce earnings management through supervision mechanism rather than financing mechanism and earnings management reduction effect depends on the property ownership and related-party guarantee of the network. Our study provides new insights on the positive effect of guarantee networks in China and contributes to the governance role of guarantee networks.
Journal: Emerging Markets Finance and Trade
Pages: 2604-2615
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2021.1939669
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1939669
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2604-2615




Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Mahmudul Karim
Author-X-Name-First: Muhammad Mahmudul
Author-X-Name-Last: Karim
Author-Name: Mansur Masih
Author-X-Name-First: Mansur
Author-X-Name-Last: Masih
Title: Do the Islamic Stock Market Returns Respond Differently to the Realized and Implied Volatility of Oil Prices? Evidence from the Time–Frequency Analysis
Abstract: 
 This paper makes an initial attempt to investigate the responsiveness of the Islamic stock market returns to the realized and implied volatility of oil prices at different investment horizons. The CBOE crude oil volatility index (OVX) is used for the implied volatility of oil price. The data are weekly from May 2007 to May 2017. The wavelet coherence analysis indicates that the negative effect of the implied volatility of oil price on Islamic stock market returns is more persistent compared to that of realized volatility across both time and scales. This finding tends to indicate that the Islamic stock market returns are more sensitive to the implied volatility of oil price compared to that of realized volatility. This may be due to the implied volatility, unlike the realized volatility, containing information of both historical volatility of oil spot prices and also predicted volatility. The results are plausible and have strong policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 2616-2631
Issue: 9
Volume: 57
Year: 2021
Month: 07
X-DOI: 10.1080/1540496X.2019.1663409
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1663409
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:9:p:2616-2631




Template-Type: ReDIF-Article 1.0
Author-Name: Jaesun Yun
Author-X-Name-First: Jaesun
Author-X-Name-Last: Yun
Author-Name: Jangkoo Kang
Author-X-Name-First: Jangkoo
Author-X-Name-Last: Kang
Author-Name: Kyung Yoon Kwon
Author-X-Name-First: Kyung Yoon
Author-X-Name-Last: Kwon
Title: US Economic Uncertainty and the Korean Stock Market Reaction
Abstract: 
 This paper examines whether US economic uncertainty is significantly priced in the Korean stock markets. Our results show that stocks highly sensitive to US economic uncertainty with positively or negatively large uncertainty betas have lower future returns. Motivated by the overpricing explanation, we suggest that these stocks are more likely to be exposed to greater divergence of opinions and thus overpriced. More importantly, we further suggest that the large proportion of retail investors which is a distinctive feature of the Korean stock markets contributes to overpricing by limiting arbitrage. Utilizing our unique intraday data, we measure limits to arbitrage with levels of retail trading, and find further supporting evidence that overpricing is significant only within stocks with high limits to arbitrage and in during high retail-sentiment period.
Journal: Emerging Markets Finance and Trade
Pages: 2946-2976
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1672151
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1672151
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Template-Type: ReDIF-Article 1.0
Author-Name: Shihua Chen
Author-X-Name-First: Shihua
Author-X-Name-Last: Chen
Author-Name: Wanying Cai
Author-X-Name-First: Wanying
Author-X-Name-Last: Cai
Author-Name: Khalil Jebran
Author-X-Name-First: Khalil
Author-X-Name-Last: Jebran
Title: Does Social Trust Mitigate Earnings Management? Evidence from China
Abstract: 
 We investigate whether social trust environment influences earnings management. Using a sample of Chinese firms during 2001–2016, we find strong evidence that social trust reduces earnings management. The results suggest that a high social trust environment enhances ethical managerial behavior and thereby reduce the likelihood of earnings management. Further, we find that the negative effect of social trust on earnings management is stronger for firms with weak legal environment and high media coverage. Our additional analysis also illustrates that social trust alleviates both accrual-based and real-activity earnings management. Our results remain valid to alternative measures of trust and earnings management and to a battery of robustness checks. Overall the findings demonstrate that social trust, as a social norm, influences corporate decisions.
Journal: Emerging Markets Finance and Trade
Pages: 2995-3016
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1675046
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1675046
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:10:p:2995-3016




Template-Type: ReDIF-Article 1.0
Author-Name: Yingjie Fu
Author-X-Name-First: Yingjie
Author-X-Name-Last: Fu
Author-Name: Antonio Alleyne
Author-X-Name-First: Antonio
Author-X-Name-Last: Alleyne
Author-Name: Yifei Mu
Author-X-Name-First: Yifei
Author-X-Name-Last: Mu
Title: Does Lockdown Bring Shutdown? Impact of the COVID-19 Pandemic on Foreign Direct Investment
Abstract: 
 This article investigates how the COVID-19 pandemic affected home and host countries’ FDI margins. Heckman estimation of monthly bilateral FDI data indicates the following: (1) The pandemic reduced both the FDI margins. (2) COVID-19 mortality in home countries reduced extensive FDI margin. (3) FDI was more sensitive to host countries’ pandemic situation for both OECD and emerging countries; moreover, in emerging countries, FDI was affected by its domestic pandemic control because they were typically the host countries. (4) The service sector’s FDI was severely affected by the pandemic than other sectors’ FDI.
Journal: Emerging Markets Finance and Trade
Pages: 2792-2811
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2020.1865150
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1865150
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:10:p:2792-2811




Template-Type: ReDIF-Article 1.0
Author-Name: Lan Thanh Archer
Author-X-Name-First: Lan Thanh
Author-X-Name-Last: Archer
Title: Formality and Financing Patterns of Small and Medium-Sized Enterprises in Vietnam
Abstract: 
 This study aims to examine the association between formality and financing patterns of small and medium-sized enterprises (SMEs) in an emerging country, using data from the Vietnam SME Survey in the period 2007–2013. A two-stage econometric approach is adopted to address endogeneity that mainly arises from the causal relationship between formality and financing accessibility. Empirical results show that formality does matter for financing patterns of SMEs: formality significantly increases the use of informal debt, equity funding, and retained earnings––but decreases the access to formal credit though the coefficient remains insignificant. Policy implications are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 2852-2869
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1658576
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658576
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Template-Type: ReDIF-Article 1.0
Author-Name: Hongru Zhang
Author-X-Name-First: Hongru
Author-X-Name-Last: Zhang
Author-Name: Zhiqiang Fang
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Fang
Title: Real Estate Time-to-construct, Housing Market Dynamics, and Aggregate Fluctuations in China
Abstract: 
 We study how construction delays determine the influence of various external shocks on China’s real estate market and macroeconomic fluctuations. We find that construction delays amplify housing price fluctuations due to demand-side shocks, but mitigate the effect of supply-side shocks; moreover, such delays weaken the influence of policy shock on output volatility, while increasing its influence on house price fluctuations. Under the presence of construction delays, loan-to-value ratio is more effective to stabilize housing market in the short run, whereas interest rate policy has more persistent impact over the longer term. To maintain both steady economic growth and stable housing prices, the government should encourage real estate enterprises to innovate and improve housing returns, while relaxing various approval processes to accelerate investment and encourage more timely supply of housing.
Journal: Emerging Markets Finance and Trade
Pages: 2907-2928
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1668767
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668767
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Template-Type: ReDIF-Article 1.0
Author-Name: Erick Meira de Oliveira
Author-X-Name-First: Erick Meira
Author-X-Name-Last: de Oliveira
Author-Name: Fernando Luiz Cyrino Oliveira
Author-X-Name-First: Fernando Luiz
Author-X-Name-Last: Cyrino Oliveira
Author-Name: Marcelo Cabus Klötzle
Author-X-Name-First: Marcelo Cabus
Author-X-Name-Last: Klötzle
Author-Name: Antonio Carlos Figueiredo Pinto
Author-X-Name-First: Antonio Carlos Figueiredo
Author-X-Name-Last: Pinto
Title: Dynamic Associations between GDP and Crude Oil Prices in Brazil: Structural Shifts and Nonlinear Causality
Abstract: 
 This paper puts forward an in-depth investigation of the nonlinear associations between Gross Domestic Product (GDP) and international crude oil prices using the Brazilian aggregate as case study. We provide evidence on the existence of two sharply defined regimes in the Brazilian GDP since 1947: the first, very oil-dependent in the short-run and marked by high fluctuations in the economy, is majorly presented until late-1990’s; the second, concerning the greater part of the first two decades of the 21st century, is characterized by periods of greater stability and less immediate dependency on oil prices. The results also suggest the presence of other forms of nonlinear associations between crude oil prices and the Brazilian GDP besides those related to regime shifts or due to conditional heteroscedasticity, an unprecedented result in the literature. Findings and economic implications are further discussed.
Journal: Emerging Markets Finance and Trade
Pages: 2767-2791
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1658072
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1658072
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Template-Type: ReDIF-Article 1.0
Author-Name: Deepa Bannigidadmath
Author-X-Name-First: Deepa
Author-X-Name-Last: Bannigidadmath
Author-Name: Philippus Albertus Truter
Author-X-Name-First: Philippus Albertus
Author-X-Name-Last: Truter
Title: Do Asymmetries in the Indian Equity Market Exist during the COVID-19?
Abstract: 
 This paper investigates the presence of asymmetry in correlations, betas and covariances between the market excess return and the excess return on each of the eleven industry, ten size, ten momentum and ten book-to-market portfolios. We arrive at three main findings. First, there is strong evidence of asymmetric covariance while the evidence for asymmetric correlations is weakest during COVID-19 period. Second, momentum and book-to-market portfolios exhibit strong evidence of asymmetry relative to the size and industry portfolios. Third, regardless of a single exceedance level or four exceedance levels, the downside correlations, betas and covariances are higher than the upside correlations, betas and covariances.
Journal: Emerging Markets Finance and Trade
Pages: 2838-2851
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2021.1891882
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1891882
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Template-Type: ReDIF-Article 1.0
Author-Name: Ernesto Rodriguez-Crespo
Author-X-Name-First: Ernesto
Author-X-Name-Last: Rodriguez-Crespo
Author-Name: Margarita Billon
Author-X-Name-First: Margarita
Author-X-Name-Last: Billon
Author-Name: Rocio Marco
Author-X-Name-First: Rocio
Author-X-Name-Last: Marco
Title: Impacts of Internet Use on Trade: New Evidence for Developed and Developing Countries
Abstract: 
 This paper investigates the impact of Internet use on bilateral trade flows using a gravity model and panel data for the period 1996–2014. First, we test the positive influence of Internet use on exports for aggregate data. Second, we test the impact of Internet use on bilateral flows separately for high-income countries and low- and middle-income countries. We find a significant and positive relationship between the Internet and bilateral exports for both groups of countries. The results also show that the impacts vary from 0.03% to 0.13% depending on the levels of income. Unlike previous studies, our findings suggest that the effect of Internet use is greater for bilateral trade flows among high-income countries. We contribute to the literature by investigating the differentiated impacts of Internet use for high-income economies and low- and middle-income countries. Our study uses panel data and covers the period of the greatest Internet diffusion.
Journal: Emerging Markets Finance and Trade
Pages: 3017-3032
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1676225
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1676225
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Template-Type: ReDIF-Article 1.0
Author-Name: Da Xu
Author-X-Name-First: Da
Author-X-Name-Last: Xu
Author-Name: Ye Guo
Author-X-Name-First: Ye
Author-X-Name-Last: Guo
Author-Name: Mengqi Huang
Author-X-Name-First: Mengqi
Author-X-Name-Last: Huang
Title: Can Artificial Intelligence Improve Firms’ Competitiveness during the COVID-19 Pandemic: International Evidence
Abstract: 
 We conduct a textual analysis of 0.9 million product announcements to examine how artificial intelligence (AI) is reshaping market competition during the COVID-19 pandemic. We find that the revenues for firms that were engaged in AI before the pandemic increased faster in 2020. This effect is potentially due to the increased human digital footprint and is stronger in developing countries and countries with better property rights protection. Overall, our study has implications for practitioners and policymakers about the benefits of applying AI and cautions against blindly pursuing AI without considering national backgrounds.
Journal: Emerging Markets Finance and Trade
Pages: 2812-2825
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2021.1899911
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1899911
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Template-Type: ReDIF-Article 1.0
Author-Name: Judy Hsu
Author-X-Name-First: Judy
Author-X-Name-Last: Hsu
Author-Name: Thuy Linh Cao
Author-X-Name-First: Thuy Linh
Author-X-Name-Last: Cao
Title: The Antecedents of Likelihood to Completion of Cross-Border M&As: An Empirical Analysis of ASEAN Countries
Abstract: 
 While cross-border mergers and acquisitions (M&As) are emerging in the Association of Southeast Asian Nations (ASEAN), a high percentage of M&As fails to complete. This research investigates the antecedents of likelihood to complete cross-border M&As between six ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam) and developed countries from 2000 to 2013. Our empirical results show that greater distances in law-regulation and country risk lead to lower probability of completion. In contrast, acquirers with bigger size, a higher percentage of stake sought, and cash payment enhance the likelihood of completion. Our findings propose implications for engaging in international business with ASEAN countries.
Journal: Emerging Markets Finance and Trade
Pages: 2888-2906
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1668766
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668766
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Template-Type: ReDIF-Article 1.0
Author-Name: Dengjin Zheng
Author-X-Name-First: Dengjin
Author-X-Name-Last: Zheng
Author-Name: Xin Dai
Author-X-Name-First: Xin
Author-X-Name-Last: Dai
Author-Name: Tianqi Lan
Author-X-Name-First: Tianqi
Author-X-Name-Last: Lan
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Author-Name: Jian Mou
Author-X-Name-First: Jian
Author-X-Name-Last: Mou
Title: The Negative Effect of Share Pledging by Controlling Shareholders under COVID-19
Abstract: 
 This paper tests the superimposed negative market reaction of listed companies with high-level share pledging by controlling shareholders to the coronavirus disease 2019 (COVID-19) pandemic and finds that it is alleviated in the pharmaceutical industry and when the share pledge funds are obtained from a brokerage firm or flow back to the listed companies. Furthermore, a low-quality information environment exacerbates the negative reaction, while high-level research and development (R&D) investment and free cash flow alleviate it. A possible mechanism underlying the results is that the “gray rhino” erodes the company’s operating efficiency. This paper provides timely and direct evidence regarding the capital market’s response to COVID-19.
Journal: Emerging Markets Finance and Trade
Pages: 2826-2837
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2021.1904885
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1904885
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Template-Type: ReDIF-Article 1.0
Author-Name: Guanghua Xie
Author-X-Name-First: Guanghua
Author-X-Name-Last: Xie
Author-Name: Jianlin Chen
Author-X-Name-First: Jianlin
Author-X-Name-Last: Chen
Author-Name: Ying Hao
Author-X-Name-First: Ying
Author-X-Name-Last: Hao
Author-Name: Jing Lu
Author-X-Name-First: Jing
Author-X-Name-Last: Lu
Title: Economic Policy Uncertainty and Corporate Investment Behavior: Evidence from China’s Five-Year Plan Cycles
Abstract: 
 Using China’s five-year plan (FYP), this study examines how state ownership affects corporate investment behavior during economic policy shifts. We find that non-state-controlled firms (NSCF) experience a larger increase in underinvestment under policy uncertainty and a larger increase in overinvestment after the policy uncertainty is resolved. However, the increase in overinvestment at state-controlled firms (SCF) is significantly more pronounced in the final years of an FYP. This differential change in investment behavior between SCF and NSCF is found primarily at firms that are politically unconnected, in policy-supported industries and low-marketization regions. Further analysis shows that SCF are associated with a higher increase in sales growth after an FYP. Our findings suggest that state ownership is helpful in obtaining policy benefits to improve investment behavior for SCF during policy shifts, but it also encourages these firms to engage in unprofitable but politically prioritized investment projects when such benefits substantially diminish.
Journal: Emerging Markets Finance and Trade
Pages: 2977-2994
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1673160
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1673160
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Template-Type: ReDIF-Article 1.0
Author-Name: Veronika Belousova
Author-X-Name-First: Veronika
Author-X-Name-Last: Belousova
Author-Name: Alexander Karminsky
Author-X-Name-First: Alexander
Author-X-Name-Last: Karminsky
Author-Name: Nikita Myachin
Author-X-Name-First: Nikita
Author-X-Name-Last: Myachin
Author-Name: Ilya Kozyr
Author-X-Name-First: Ilya
Author-X-Name-Last: Kozyr
Title: Bank Ownership and Efficiency of Russian Banks
Abstract: 
 The paper examines how the type of ownership affects the efficiency of Russian banks. Using bank-quarter data for selected banks in the period 2004–2015, we combine stochastic frontier analysis (SFA) methodology with an intermediary approach to assess both profit and cost efficiency scores. Our key findings show that foreign-owned banks are the most profit efficient, and state-owned banks efficiently manage costs compared to other banks. These results are robust when we consider these banks in terms of risk preferences and specialization.
Journal: Emerging Markets Finance and Trade
Pages: 2870-2887
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1668764
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668764
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Template-Type: ReDIF-Article 1.0
Author-Name: Ashima Goyal
Author-X-Name-First: Ashima
Author-X-Name-Last: Goyal
Author-Name: Gagan Goel
Author-X-Name-First: Gagan
Author-X-Name-Last: Goel
Title: Correlated Shocks, Hysteresis, and the Sacrifice Ratio: Evidence from India
Abstract: 
 In an emerging market with frequent shocks output sacrifice from disinflation depends not only on the Phillips curve slope but also on shifts in demand and supply. Introducing shocks and correlations between shocks in a Kalman filter-based estimation, the slope flattens, correlation between permanent supply and gap demand shocks is negative and a new decomposition of output between trend and output gap shocks is obtained. The slope is robust to parameter changes and business cycle turning points are tracked well, but the decomposition varies. More stable inflation expectation and rise in forward-looking behavior increase the volatility of trend growth and reduces the output gap. Inflation targeting had such effects in India. Estimated sacrifice ratio varies with the period and method, but it rises to 6.7 over 2011–17 if such hysteresis is included. Simultaneous equation estimation corroborates the results. In the estimation period, inflation targeting affected expectations but not inflation.
Journal: Emerging Markets Finance and Trade
Pages: 2929-2945
Issue: 10
Volume: 57
Year: 2021
Month: 08
X-DOI: 10.1080/1540496X.2019.1668770
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668770
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Template-Type: ReDIF-Article 1.0
Author-Name: Mustafa Caglayan
Author-X-Name-First: Mustafa
Author-X-Name-Last: Caglayan
Author-Name: Tho Pham
Author-X-Name-First: Tho
Author-X-Name-Last: Pham
Author-Name: Oleksandr Talavera
Author-X-Name-First: Oleksandr
Author-X-Name-Last: Talavera
Title: Dollarization, Pass-through, and Domestic Lending: Evidence from Turkish Banking
Abstract: 
 This article examines financial dollarization in Turkish banking sector during the 2002 Q4 – 2018 Q4 period. We find significant currency mismatch in banks’ balance sheets: banks happen to transfer less than 30% of their foreign denominated deposits into foreign denominated credit. In addition, banks with greater currency imbalance are more likely to extend their domestic denominated currency loans. Although raising funds in foreign currency to lend in domestic currency can help banks increase their profits, this also increases banks’ exposure to exchange rate risks. Further examination shows that banks continue facing great currency risk despite hedging through off-balance transactions.
Journal: Emerging Markets Finance and Trade
Pages: 3190-3201
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1678146
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1678146
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Template-Type: ReDIF-Article 1.0
Author-Name: Jianhua Ye
Author-X-Name-First: Jianhua
Author-X-Name-Last: Ye
Author-Name: Huaping Zhang
Author-X-Name-First: Huaping
Author-X-Name-Last: Zhang
Author-Name: Ceyuan Cao
Author-X-Name-First: Ceyuan
Author-X-Name-Last: Cao
Author-Name: Feifei Wei
Author-X-Name-First: Feifei
Author-X-Name-Last: Wei
Author-Name: Muruve Namunyak
Author-X-Name-First: Muruve
Author-X-Name-Last: Namunyak
Title: Boardroom Gender Diversity on Stock Liquidity: Empirical Evidence from Chinese A-share Market
Abstract: 
 The corporate governance effect of boardroom gender diversity has attracted more and more attention in theory and practice, but less attention is paid to whether boardroom gender diversity affects stock liquidity, which is the core indicator of capital market efficiency. Taking listed companies in Chinese A-share market during 2002 and 2017 as sample, this study focuses on the influence of boardroom gender diversity on stock liquidity. We find that (1)the boardroom gender diversity increases stock liquidity significantly; (2) the effect of boardroom gender diversity on stock liquidity is more significant in firms with more female director ownership than in firms with less female director ownership; and (3) the findings above are more significant in low investor sentiment period. This research enriches the researches on the drivers of stock liquidity and on the consequences of boardroom gender diversity. The conclusions of this article are also useful for the design of boardroom gender structure, and for improving the effect and efficiency of investor education.
Journal: Emerging Markets Finance and Trade
Pages: 3236-3253
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1684892
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1684892
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Template-Type: ReDIF-Article 1.0
Author-Name: Serdar Ozkan
Author-X-Name-First: Serdar
Author-X-Name-Last: Ozkan
Author-Name: Chadi Yaacoub
Author-X-Name-First: Chadi
Author-X-Name-Last: Yaacoub
Author-Name: Nasser El-Kanj
Author-X-Name-First: Nasser
Author-X-Name-Last: El-Kanj
Author-Name: Vladimir Dzenopoljac
Author-X-Name-First: Vladimir
Author-X-Name-Last: Dzenopoljac
Title: The Effect of IFRS Adoption on Corporate Cash Holdings: Evidence from MENA Countries
Abstract: 
 We investigate the relationship between IFRS adoption and firms’ cash holdings in ten Arab countries in the MENA. We first show that IFRS adoption reduces the cash holdings of the firms. The effect of IFRS adoption is robust for high-income countries in the Gulf region. This result implies that high-quality financial information reduces the information asymmetries; this, in turn, lowers the cost of capital and cash holdings. We suppose that strong macroeconomic conditions in Gulf countries facilitate the proper application of IFRS by weakening the incentives for earnings management. We also show that regardless of the income level of the countries, IFRS adoption reduces the cash holdings of large firms. Furthermore, we conclude that IFRS adoption is not able to reduce cash holdings in the case of high uncertainty (in terms of cash flow volatility of the firms) in the MENA.
Journal: Emerging Markets Finance and Trade
Pages: 3275-3300
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1693361
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1693361
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:11:p:3275-3300




Template-Type: ReDIF-Article 1.0
Author-Name: Xiaofeng Xu
Author-X-Name-First: Xiaofeng
Author-X-Name-Last: Xu
Author-Name: Chenglong Wang
Author-X-Name-First: Chenglong
Author-X-Name-Last: Wang
Author-Name: Jian Li
Author-X-Name-First: Jian
Author-X-Name-Last: Li
Author-Name: Chunming Shi
Author-X-Name-First: Chunming
Author-X-Name-Last: Shi
Title: Green Transportation and Information Uncertainty in Gasoline Distribution: Evidence from China
Abstract: 
 The green vehicle routing problem of distributing gasoline to retail gasoline stations in a way that is not just the most cost-effective overall but also reduces its own carbon emissions needs to account for uncertainty from multiple sources. Therefore, in this paper we study how to do this, simultaneously reducing the cost and minimizing the environmental impact in the presence of information uncertainty. Among the sources of uncertainty are random demand by gas stations and uncertain travel time to them by tankers, which we build into our model. We also design a three-stage heuristic algorithm. In the first stage, the chance constraints of the model are converted into their deterministic equivalents. In the second stage, gas stations are clustered, based on their distance and demand for gasoline. In the third stage, we use a genetic algorithm to solve the model based on the first two stages. Finally, we use our simulation results to propose how gas stations can optimize their cost of gasoline distribution.
Journal: Emerging Markets Finance and Trade
Pages: 3101-3119
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1708323
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1708323
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Template-Type: ReDIF-Article 1.0
Author-Name: Xinzhe Xu
Author-X-Name-First: Xinzhe
Author-X-Name-Last: Xu
Author-Name: Yulin Liu
Author-X-Name-First: Yulin
Author-X-Name-Last: Liu
Title: Family Discourse Right Conflict and Asset Allocation
Abstract: 
 This paper uses the data of the China Household Finance Survey(CHFS) 2013 to research the impact of family discourse right conflict on household asset allocation. The results show that discourse right conflict has a significant impact on family investment. In addition, the conclusion that households with a lower degree of discourse right conflict will hold less risky assets remains robust after replacement of the indicators of the conflict variable, changing of the model settings and the use of instrumental variables. We think there may exist an impact mechanism between discourse right conflict and asset allocation. With the increase in the level of discourse right conflict, family members may change their risk preferences because they want to gain higher family status by earning more.
Journal: Emerging Markets Finance and Trade
Pages: 3222-3235
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1679623
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1679623
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhi Su
Author-X-Name-First: Zhi
Author-X-Name-Last: Su
Author-Name: Xuan Mo
Author-X-Name-First: Xuan
Author-X-Name-Last: Mo
Author-Name: Libo Yin
Author-X-Name-First: Libo
Author-X-Name-Last: Yin
Title: Downside Risk in the Oil Market: Does It Affect Stock Returns in China?
Abstract: 
 In this paper, we investigate the impact of downside risk in the oil market on the expected stock returns in China’s A-share market, and find that downside risk positively influences the expected stock returns. This positive influence remains after controlling for various control variables. It is also robust under different stock market conditions and the financial crisis, and with high-frequency data as an alternative measure of downside risk. In addition, the positive relation is consistent across industries regardless of whether they are directly related to natural resources or only indirectly related to oil. We also find evidence of nonlinearity in the relation between the oil and stock markets. The positive relation can be explained by the global risk aversion of investors who are averse to downside risk in the oil market and thus demand compensation in the form of higher expected returns for holding stocks.
Journal: Emerging Markets Finance and Trade
Pages: 3139-3152
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2020.1796626
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1796626
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhaotian Chong
Author-X-Name-First: Zhaotian
Author-X-Name-Last: Chong
Author-Name: Dequn Zhou
Author-X-Name-First: Dequn
Author-X-Name-Last: Zhou
Author-Name: Qunwei Wang
Author-X-Name-First: Qunwei
Author-X-Name-Last: Wang
Title: Without Subsidy, Will Chinese Renewable Energy Power Generation Have a Bright Future?
Abstract: 
 As installed capacity of Chinese renewable energy (RE) power generation has been expanded rapidly, the gap between subsidies and funds is more and more huge. Chinese government has urgently sought other incentive policies in place of subsidy. Considering incentive policies such as RE quota scheme, green certificate trade, and subsidy in scenarios, the performances of RE power generations in the liberalized power market are measured in this article. Centralized renewable energy (CRE) and distributed renewable energy (DRE) generations are distinguished in this study. The results show that even if the subsidy is canceled, there will be no significant reversal of RE power generation. It is best to terminate subsidies after 48 months. With the interaction of the incentive policies, the on-grid market price is rising initially and then falling. The price of tradable green certificate (TGC) fluctuated with electricity demand. Subsidy influences the demand in the TGC market by affecting the amount of power generated by DRE, thereby affecting the profit of the CRE power generation. In addition, the changes in RE quota not only keep the price of TGC at a stable level, but also make the installed capacity of CRE power generation exceed the installed capacity of traditional energy power generation after 80 months.
Journal: Emerging Markets Finance and Trade
Pages: 3033-3066
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1696191
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1696191
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:11:p:3033-3066




Template-Type: ReDIF-Article 1.0
Author-Name: Wei Zhou
Author-X-Name-First: Wei
Author-X-Name-Last: Zhou
Author-Name: Shuai Lu
Author-X-Name-First: Shuai
Author-X-Name-Last: Lu
Author-Name: Jin Chen
Author-X-Name-First: Jin
Author-X-Name-Last: Chen
Author-Name: Qingjuan Chen
Author-X-Name-First: Qingjuan
Author-X-Name-Last: Chen
Author-Name: Sun Meng
Author-X-Name-First: Sun
Author-X-Name-Last: Meng
Title: E2E Double-Process Efficiency Analysis from the Perspectives of Energy Consumption and Environmental Treatment
Abstract: 
 Energy consumption and environmental treatment have always been hot issues. This paper focuses on these two issues in China and attempts to investigate them based on the energy-to-environment (E2E) double-process. To achieve this aim, this paper first develops two E2E double-process models. Moreover, an empirical study is conducted to evaluate the E2E double-process efficiencies based on the data of 30 provinces in China. The results show that: 1)The E2E double-process efficiency in China is stable. However, this efficiency is low with large differences among individual provinces. 2)The values of the E2E double-process efficiency and the E2E energy consumption efficiency of China are similar, and both values are lower than that of the E2E environmental treatment. 3)The E2E environmental treatment efficiency has a potential driving effect in each province of China. 4)The intermediate output is used as a complete or partial input could significantly affect the E2E double-process efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 3067-3100
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1697673
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1697673
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Template-Type: ReDIF-Article 1.0
Author-Name: Xianfang Su
Author-X-Name-First: Xianfang
Author-X-Name-Last: Su
Title: Can Green Investment Win the Favor of Investors in China? Evidence from the Return Performance of Green Investment Stocks
Abstract: 
 Green investment is a highly praised form of investment behavior in today’s China. The ecological value of green investment has reached a consensus, but its financial performance remains an open question. Based on a unique dataset of 77 green investment stocks covering the period from July 2012 to December 2017, this paper investigates the returns performance of green investments employing multifactor models and propensity score matching techniques. We find that green investment stocks underperform conventional stocks and offer less protection against extreme downside risk, which indicates that investors need to pay what amounts to a premium or supplemental cost for going green. Our empirical results point to some important implications for policymakers and investors.
Journal: Emerging Markets Finance and Trade
Pages: 3120-3138
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1710129
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Template-Type: ReDIF-Article 1.0
Author-Name: Khalid M. Kisswani
Author-X-Name-First: Khalid M.
Author-X-Name-Last: Kisswani
Title: The Dynamic Links between Oil Prices and Economic Growth: Recent Evidence from Nonlinear Cointegration Analysis for the ASEAN-5 Countries
Abstract: 
 This article investigates the asymmetric relationship between real oil prices and real GDP for selected ASEAN countries (ASEAN-5), using the nonlinear autoregressive distributed lag (NARDL) model. The sample data consist of annual frequencies from 1970 to 2015. Furthermore, the article pays attention to structural breaks in testing the asymmetric nexus. The empirical findings demonstrate long-run asymmetry for the ASEAN-5 countries, however, short-run asymmetry is found for Malaysia and Singapore only. Moreover, the empirical findings show that the increase in oil prices leads to positive effect on GDP for all countries (highly significant for all countries except for the Philippines), yet, such outcome does not go in line with the vast majority of the studies conducted. As for the direction of causality between oil prices and GDP, the article finds mixed results by using the Toda and Yamamoto noncausality test.
Journal: Emerging Markets Finance and Trade
Pages: 3153-3166
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1677463
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1677463
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Template-Type: ReDIF-Article 1.0
Author-Name: Dongwei He
Author-X-Name-First: Dongwei
Author-X-Name-Last: He
Author-Name: Kai You
Author-X-Name-First: Kai
Author-X-Name-Last: You
Author-Name: Wenqing Li
Author-X-Name-First: Wenqing
Author-X-Name-Last: Li
Author-Name: Jun Wu
Author-X-Name-First: Jun
Author-X-Name-Last: Wu
Title: Determinants of Technology Adoption: Evidence from the Chinese Banking Industry
Abstract: 
 The decision on online banking adoption is a strategic choice by banks with multiple purposes. Using panel data on banks with hand-collected information on adoption decisions from 2002 to 2016, this article is the first to examine the determinants of online banking adoption in China. We first construct a theoretical model to illustrate banks’ online service adoption strategy and then test the determinants of online banking adoption decisions. Our model compares the patterns of online banking adoption decisions at large national banks and small banks. The model and empirical results show that banks with a larger geographic market adopt online banking earlier, and banks’ online banking adoption may be motivated by having competitors that have already adopted this technology. We also find evidence that online banking is a substitute for physical branches. Our results shed light on the banks’ effective management of online and offline services.
Journal: Emerging Markets Finance and Trade
Pages: 3167-3189
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1678027
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1678027
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Template-Type: ReDIF-Article 1.0
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Author-Name: Ngoc Minh Thi Bui
Author-X-Name-First: Ngoc Minh Thi
Author-X-Name-Last: Bui
Title: Does Corruption in Exporter and Importer Country Influence International Trade?
Abstract: 
 We investigate whether bilateral exports of goods flowing from Vietnam to its 46 top trading partners are affected by corruption over the period 2000–2014. We capture the effects of corruption of Vietnam and her trade partners, separately using the corruption perception index (CPI) developed by Transparency International. The CPI captures both bureaucratic and political corruption perceptions. Our key results are as follows. We find that corruption in Vietnam has discouraged its bilateral export flows. The negative effect of corruption is highly significant in the long-run. In driving Vietnam’s exports, perceptions of corruption in Vietnam are found to be more potent than perceptions in importer countries. We find that the sign effects of corruption in Vietnam or trading partner countries (or importers) are not dependent on whether trading partners are developed or developing. However, we do find that corruption discourages developing countries more than developed countries from importing goods from Vietnam. We confirm the robustness of our results using the control of corruption (COC) measure of corruption extracted from the World Bank Database.
Journal: Emerging Markets Finance and Trade
Pages: 3202-3221
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1679116
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1679116
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Template-Type: ReDIF-Article 1.0
Author-Name: Zheng Jiang
Author-X-Name-First: Zheng
Author-X-Name-Last: Jiang
Author-Name: Shen Guo
Author-X-Name-First: Shen
Author-X-Name-Last: Guo
Author-Name: Huimin Shi
Author-X-Name-First: Huimin
Author-X-Name-Last: Shi
Title: State-owned Sector and the Effectiveness of Monetary Policy in China
Abstract: 
 Based on a standard two-sector New Keynesian sticky price model, we show that the response of sectoral output share to a monetary policy shock can be used to assess the relative price stickiness between the state-owned and private sectors in China. Specifically, the output share of the sector with more price stickiness increases to a positive monetary shock. A structural VAR analysis on the Chinese industrial data confirms that the price is stickier in the state-owned sector. This result implies that the real effect of monetary policy at the aggregate level in China would diminish along with the potential decline of the state-owned sector.
Journal: Emerging Markets Finance and Trade
Pages: 3254-3274
Issue: 11
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1693360
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1693360
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Template-Type: ReDIF-Article 1.0
Author-Name: Mingzhi Hu
Author-X-Name-First: Mingzhi
Author-X-Name-Last: Hu
Author-Name: Yinxin Su
Author-X-Name-First: Yinxin
Author-X-Name-Last: Su
Author-Name: Haiyong Zhang
Author-X-Name-First: Haiyong
Author-X-Name-Last: Zhang
Title: Migrant Entrepreneurship: The Family as Emotional Support, Social Capital and Human Capital
Abstract: 
 We examine how entrepreneurship among migrants in urban China is affected by household composition. Using microdata from the 2016 Chinese Labor-force Dynamics Survey, we find that after controlling for observables and regional-fixed effects, the probability of entrepreneurship increases by 1.4 percentage points for a one-unit increase in the number of family members living together. Such percentage points indicate a 7.87% increase in entrepreneurship rate relative to the national average. Results are robust to several specifications. We also provide explanations for the positive effect of family on entrepreneurship through which family provides emotional support, enhances social capital, and facilitates pooling of labor power.
Journal: Emerging Markets Finance and Trade
Pages: 3367-3386
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1693364
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1693364
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Template-Type: ReDIF-Article 1.0
Author-Name: Bufan Zhang
Author-X-Name-First: Bufan
Author-X-Name-Last: Zhang
Author-Name: Yifeng Wang
Author-X-Name-First: Yifeng
Author-X-Name-Last: Wang
Title: The Effect of Green Finance on Energy Sustainable Development: A Case Study in China
Abstract: 
 Green finance development is a comprehensive system with three aspects interacted: economic, environmental, and financial activities. Based on its internal mechanism, this paper constructs an evaluation system of green finance development, which fills the absence of existing studies on green finance development. The internal development of green finance is transformed into three subsystems by PSR (Pressure-State-Response) model, and the evaluation scores are calculated by the entropy weight method. As the applications of the evaluation system, the horizontal comparison and vertical trend of green finance development in different regions of China from 2004 to 2017 are analyzed, and the relationship between green finance and sustainable energy development can also be quantitatively analyzed. The results show that sustainable energy development can be promoted through the development of green finance, using various measures in dimensions of economic development, financial development, and environmental development.
Journal: Emerging Markets Finance and Trade
Pages: 3435-3454
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1695595
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695595
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Template-Type: ReDIF-Article 1.0
Author-Name: Ahmad Zubaidi Baharumshah
Author-X-Name-First: Ahmad Zubaidi
Author-X-Name-Last: Baharumshah
Author-Name: Siew-Voon Soon
Author-X-Name-First: Siew-Voon
Author-X-Name-Last: Soon
Author-Name: Mark E. Wohar
Author-X-Name-First: Mark E.
Author-X-Name-Last: Wohar
Title: Phillips Curve for the Asian Economies: A Nonlinear Perspective
Abstract: 
 This paper examines the impact of exchange-rate movements on inflation in eight Asian countries. Results from an open-economy Phillips curve are; first, the Markov-switching open-economy model confirm that the two-state Phillips curve outperforms alternative models to study inflation dynamics. There is considerable heterogeneity in the pass-through estimates for Asian countries, with Singapore exhibiting the lowest exchange rate pass-through (ERPT). Regime-dependent pass-through estimates are sensitive to average inflation and it should be factored in when forecasting inflation rates. Second, the extent of pass-through is considerably lower and far from complete in a low-inflation regime, endorsing Taylor hypothesis. Third, in the majority of the countries, we find support for global disinflation in domestic inflation that has strengthened over time. The main takeaway is that globalization matters for Asian inflation dynamics.
Journal: Emerging Markets Finance and Trade
Pages: 3508-3537
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1699789
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1699789
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Template-Type: ReDIF-Article 1.0
Author-Name: Milojko Arsić
Author-X-Name-First: Milojko
Author-X-Name-Last: Arsić
Author-Name: Zorica Mladenović
Author-X-Name-First: Zorica
Author-X-Name-Last: Mladenović
Author-Name: Aleksandra Nojković
Author-X-Name-First: Aleksandra
Author-X-Name-Last: Nojković
Title: Debt Uncertainty and Economic Growth in Emerging European Economies: Some Empirical Evidence
Abstract: 
 This study investigates the effects of public debt uncertainty on economic growth in 10 emerging European economies over 2000–2015 period. Public debt uncertainty reflects fiscal policy volatility and macroeconomic instability. It also creates uncertainty about the characteristics of future fiscal policy, which further causes the rise of uncertainty in household and business incomes. Increasing the risk of future incomes leads to the reduction of household consumption and corporate investments, which negatively influences economic growth. An empirical analysis of public debt uncertainty impact on economic growth is performed by time series and panel data approaches based on quarterly data. Our key result indicates the significant detrimental effect public debt uncertainty has had on the GDP growth in emerging European economies, especially during the Great Recession episode that started in 2008. Robustness of our econometric findings is confirmed by different estimation methods and model specifications.
Journal: Emerging Markets Finance and Trade
Pages: 3565-3585
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1700364
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1700364
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Template-Type: ReDIF-Article 1.0
Author-Name: Xinxin Ma
Author-X-Name-First: Xinxin
Author-X-Name-Last: Ma
Author-Name: Jie Cheng
Author-X-Name-First: Jie
Author-X-Name-Last: Cheng
Title: The Influence of Social Insurance on Wages in China: An Empirical Study Based on Chinese Employee-Employer Matching Data
Abstract: 
 This article uses China Employee-Employer Matching Survey data (CEES) to estimate the influence of social insurance contributions on workers’ wages. The results indicate firms may transfer the increased burden of social insurance onto their workers, and the negative effect of firms’ actual contribution rate is greater for poorly educated workers, migrant workers, non-manager group (manufacturing worker or clerks) and workers in the private sector, small firms, and labor-intensive firms than for their counterparts.
Journal: Emerging Markets Finance and Trade
Pages: 3337-3366
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1693363
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1693363
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:12:p:3337-3366




Template-Type: ReDIF-Article 1.0
Author-Name: Akoété Ega Agbodji
Author-X-Name-First: Akoété Ega
Author-X-Name-Last: Agbodji
Author-Name: Ablamba Ahoefavi Johnson
Author-X-Name-First: Ablamba Ahoefavi
Author-X-Name-Last: Johnson
Title: Agricultural Credit and Its Impact on the Productivity of Certain Cereals in Togo
Abstract: 
 The objective of this study is to analyze the impact of agricultural credit on maize, sorghum and paddy rice productivity in Togo. The results reveal that credit has a positive and significant impact on these productivities. This general result varies depending on the type of credit, however. In kind credit has a positive and significant impact on maize and sorghum productivity, but no significant impact on paddy rice productivity. In contrast, the impacts on productivity of credit in hard cash are negative with respect to maize, positive with respect to sorghum, and not significant with respect to paddy rice.
Journal: Emerging Markets Finance and Trade
Pages: 3320-3336
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1602038
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1602038
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:12:p:3320-3336




Template-Type: ReDIF-Article 1.0
Author-Name: Shaofang Li
Author-X-Name-First: Shaofang
Author-X-Name-Last: Li
Title: Quality of Bank Capital, Competition, and Risk-Taking: Some International Evidence
Abstract: 
 This study empirically investigates how bank capital and competitive conditions affect bank risk-taking. Using financial data of 7620 banks on 118 countries from 2001 to 2016, we show that banks with a higher Tier 1 ratio and a lower Tier 2 ratio are lower risk-takers. A bank with greater market power in a banking system tends to reduce its risk-taking activities. Our findings also highlight that the negative relationship between Tier 1 ratio and bank risk are more pronounced in more competitive conditions. During the financial crisis, Tier 1 capital acted as a stable funding source and reduced bank risk, but the evidence on Tier 2 capital shows that a higher Tier 2 ratio results in a higher level of risk and increases bank instability.
Journal: Emerging Markets Finance and Trade
Pages: 3455-3488
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1696189
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1696189
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:12:p:3455-3488




Template-Type: ReDIF-Article 1.0
Author-Name: Abdoulaye Seck
Author-X-Name-First: Abdoulaye
Author-X-Name-Last: Seck
Title: Heterogeneous credit constraints and smallholder farming productivity in the Senegal River Valley
Abstract: 
 Credit constraints come in various forms, to the extent that they translate ex ante into market entry barriers (mostly transaction cost, price, and risk constraints) or ex post into credit application rejection (quantity constraints). This article is concerned with the underlying generating mechanisms of such heterogeneity in credit constraints and the implications for farmers’ productivity in the Senegal River Valley. Results from an endogenous switching regression model based on farm-level data indeed indicate that both pre- and postapplication constraints are holding back farmers’ performance, with differential impact depending on whether the latter is based on the average treatment on the credit beneficiaries or on the nonbeneficiaries and on the productivity measure. This is in addition to significant differences in the generating factors of market entry barriers and credit application outcome. These results are suggestive of various policy options that would not only increase market participation and bring about its beneficial impact, but also contribute to improve smallholder farmers’ credit-worthiness.
Journal: Emerging Markets Finance and Trade
Pages: 3301-3319
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1601080
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1601080
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:12:p:3301-3319




Template-Type: ReDIF-Article 1.0
Author-Name: Joonhyun Kim
Author-X-Name-First: Joonhyun
Author-X-Name-Last: Kim
Title: Joint Analysis of Corporate Decisions on Timing and Medium of Earnings Announcements: Evidence from Korea
Abstract: 
 This study comprehensively investigates the management’s strategic behaviors in determining the timing and the disclosure medium for earnings announcements, utilizing the empirical setting in Korea. This study finds that firms tend to release bad earnings news on a delayed basis, without voluntary disclosure of preliminary earnings, on Friday or weekdays just before a holiday and during after-market hours, respectively. More importantly, firms employ multiple earnings announcement strategies jointly in a way to increase the number of strategies to hide earnings news as the earnings performance deteriorates. Further, there is evidence that the earnings announcement strategies are generally effective in avoiding or attracting the market attention as anticipated. Overall, this study provides new evidence supporting the managerial opportunism in earnings announcements by demonstrating that firm managers deliberately organize multiple options for announcements to maximize the possibility of adjusting the market attention for their purposes.
Journal: Emerging Markets Finance and Trade
Pages: 3538-3564
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1700110
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1700110
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Template-Type: ReDIF-Article 1.0
Author-Name: Ivan T. Kandilov
Author-X-Name-First: Ivan T.
Author-X-Name-Last: Kandilov
Author-Name: Aslı Leblebicioğlu
Author-X-Name-First: Aslı
Author-X-Name-Last: Leblebicioğlu
Author-Name: Ruchita Manghnani
Author-X-Name-First: Ruchita
Author-X-Name-Last: Manghnani
Title: Trade Liberalization and Investment in Foreign Capital Goods: A Look at the Intensive Margin
Abstract: 
 We evaluate the impact of trade liberalization on the intensive margin of the firm’s investment in foreign capital goods. To do so, we use Indian firm-level panel data from a period of a large-scale trade liberalization (1989–1997) to estimate an investment equation using the system-GMM estimator. Importantly, we control separately for the tariffs on capital goods, intermediate inputs and final goods, which allows us to estimate the price elasticity of investment in foreign capital goods. Consistent with theory, we find that reductions in the tariffs on capital goods, and intermediate inputs led to higher investment in foreign capital goods, whereas reduction in the output tariff resulted in lower investment. The impact of the capital goods tariffs is the largest.
Journal: Emerging Markets Finance and Trade
Pages: 3387-3410
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1694896
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694896
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:12:p:3387-3410




Template-Type: ReDIF-Article 1.0
Author-Name: Jinyu Chen
Author-X-Name-First: Jinyu
Author-X-Name-Last: Chen
Author-Name: Xuehong Zhu
Author-X-Name-First: Xuehong
Author-X-Name-Last: Zhu
Title: The Effects of Different Types of Oil Price Shocks on Industrial PPI: Evidence from 36 Sub-industries in China
Abstract: 
 Based on a structural vector autoregression (SVAR) model, we investigate the impacts of different types of oil price shocks on industrial producer price index (PPI) in China for the period from 1996:10 to 2017:6. The results show that an increase in oil prices caused by oil supply shocks has negative impacts on China’s industrial PPI, while industrial PPI and an increase in oil prices caused by aggregate demand and oil-specific demand shocks move in the same direction. There are significant inter-industry differences in the effect of oil price shocks on industrial PPI. Energy intensity is an important factor affecting the inter-industry differences in oil supply and oil-specific demand shocks, while the inter-industry differences in aggregate demand shocks are mainly affected by export dependence. A variance decomposition analysis reveals that the increase in oil prices driven by aggregate demand shocks has the most important influence on the PPIs in most sub-industries.
Journal: Emerging Markets Finance and Trade
Pages: 3411-3434
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1694897
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Template-Type: ReDIF-Article 1.0
Author-Name: Young Bin Ahn
Author-X-Name-First: Young Bin
Author-X-Name-Last: Ahn
Author-Name: Yoichi Tsuchiya
Author-X-Name-First: Yoichi
Author-X-Name-Last: Tsuchiya
Title: Asymmetric Loss of Macroeconomic Forecasts in South Asia: Evidence from the SPF Survey of India, Indonesia, and Singapore
Abstract: 
 This paper examines asymmetry of the loss function of professional forecasters for output growth, inflation, and exchange rate forecasts, based on the survey of professional forecasts (SPF) data of three South Asian countries (India, Indonesia, and Singapore). Our results provide India’s unbiased output growth forecasts and under-predicted inflation and exchange rate forecasts; Indonesia’s broadly unbiased forecasts; and Singapore’s under-predicted output growth forecasts and unbiased inflation and exchange rate forecasts. Testing the rationality of all three countries’ SPF forecasts, we find that all are rational under an asymmetric loss function but not under a symmetric loss function.
Journal: Emerging Markets Finance and Trade
Pages: 3489-3507
Issue: 12
Volume: 57
Year: 2021
Month: 09
X-DOI: 10.1080/1540496X.2019.1699788
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1699788
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Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Sawkat Hossain
Author-X-Name-First: Mohammed Sawkat
Author-X-Name-Last: Hossain
Author-Name: Md Hamid Uddin
Author-X-Name-First: Md Hamid
Author-X-Name-Last: Uddin
Author-Name: Sarkar Humayun Kabir
Author-X-Name-First: Sarkar Humayun
Author-X-Name-Last: Kabir
Title: Sukuk and Bond Puzzle: An Analysis with Characteristics Matched Portfolios
Abstract: 
 A sukuk is an Islamic financial asset structured to offer investors a cash flow equivalent to that of a bond. The difference between them is in their contractual mechanism: a bond constitutes a lender–borrower relationship between the holders and issuers whereas a sukuk constitutes a lessor-lessee, buyer-seller, or a partnership relationship. Therefore, we examine whether they are different assets in terms of their return and risk profile. Given the difference between them, it is also important to identify what drives sukuk returns. The study finds that sukuk returns are insignificantly different from those of bonds but have significantly higher risk. However, we find that sukuk investors are not sufficiently compensated for the higher risk. Overall, our study finds that sukuks’ market performance is unrelated to bond market performance, but the market performance of the industry in which the sukuk-financed project originates has a significant effect on sukuk performance.
Journal: Emerging Markets Finance and Trade
Pages: 3792-3817
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1706478
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1706478
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Template-Type: ReDIF-Article 1.0
Author-Name: Andrzej R. Stopczyński
Author-X-Name-First: Andrzej R.
Author-X-Name-Last: Stopczyński
Title: Estimating the Required Amount of a Bank’s Loss-Absorbing Capacity
Abstract: 
 The issue of banks’ loss-absorbing capacity (LAC) has been extensively discussed in recent years. That debate was triggered by the idea of a “bail in”: the use of certain bank’s liabilities to cover losses and recapitalization when it is failing or likely to fail. The objective of this article is to determine the volume of a bank’s equity and liabilities available for bail in that would ensure a feasible resolution. To determine that amount, we propose a general quantitative model, considering that the troubled bank must cover its losses (in any resolution path) and restore both its equity and LAC (in the event of recapitalization). One novelty of our approach is that it accounts for the decline in a bank’s size as a result of the resolution process and the time-varying regulatory regime (capital requirements). The approach presented in this article makes it possible to determine the amount of LAC required as well as the importance of capital constraints and buffers, which might play a key role in determining the best resolution path. The calculations based on the model under Basel II and Basel III regimes confirm the importance of the time-varying capital buffers to enhance bank resilience. However, if the losses are large, other regulatory actions are required to increase bank LAC.
Journal: Emerging Markets Finance and Trade
Pages: 3707-3720
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2020.1810012
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1810012
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Template-Type: ReDIF-Article 1.0
Author-Name: Adam Zaremba
Author-X-Name-First: Adam
Author-X-Name-Last: Zaremba
Author-Name: Alina Maydybura
Author-X-Name-First: Alina
Author-X-Name-Last: Maydybura
Author-Name: Anna Czapkiewicz
Author-X-Name-First: Anna
Author-X-Name-Last: Czapkiewicz
Author-Name: Marina Arnaut
Author-X-Name-First: Marina
Author-X-Name-Last: Arnaut
Title: Explaining Equity Anomalies in Frontier Markets: A Horserace of Factor Pricing Models
Abstract: 
 We are the first to compare the explanatory power of the major empirical asset pricing models over equity anomalies in the frontier markets. We replicate over 160 stock market anomalies in 23 frontier countries for years 1996–2017 and evaluate their performance with the factor models. The Carhart’s four-factor model outperforms both the recent Fama and French five-factor model and the q-model by Hou, Xue, and Zhan. Its superiority is driven by the ability to explain the momentum-related anomalies. Inclusion of additional profitability and investment factors lead to no further major improvement in the performance. Nonetheless, none of the models is able to fully explain the abnormal returns on all of the anomaly portfolios.
Journal: Emerging Markets Finance and Trade
Pages: 3604-3633
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1612361
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1612361
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Template-Type: ReDIF-Article 1.0
Author-Name: Serkan Akguc
Author-X-Name-First: Serkan
Author-X-Name-Last: Akguc
Author-Name: Naseem Al Rahahleh
Author-X-Name-First: Naseem
Author-X-Name-Last: Al Rahahleh
Title: Shariah Compliance and Investment Behavior: Evidence from GCC Countries
Abstract: 
 The literature is largely silent on questions pertaining to the long-term physical asset investment behavior of Shariah-compliant (SC) firms. In this paper, using a unique dataset of SC firms constructed from the S&P’s Compustat Global database, we examine the investment patterns of Shariah-compliant (SC) versus non-Shariah-compliant (NSC) firms in six Gulf Cooperation Council (GCC) countries during the period of 2000 to 2014. We show that SC firms invest significantly less than NSC firms and the effect of reduced investment is stronger among firms with higher investment opportunities. This investment behavior is partly attributable to SC firms’ relatively limited access to capital given the tendency to keep leverage at a low level. This robust empirical finding continues to hold when we use various model specifications, alternative definitions of long-term physical investment, and different subsamples, and even when we factor in the endogenous nature of the choice to comply with Shariah.
Journal: Emerging Markets Finance and Trade
Pages: 3766-3791
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1706164
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1706164
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Template-Type: ReDIF-Article 1.0
Author-Name: Bader S. Alhashel
Author-X-Name-First: Bader S.
Author-X-Name-Last: Alhashel
Author-Name: Fahad W. Almudhaf
Author-X-Name-First: Fahad W.
Author-X-Name-Last: Almudhaf
Title: Even in Emerging Markets, Technical Trading is Hazardous to Your Wealth
Abstract: 
 This paper tests for the ability of a variety of technical indicators to generate excess returns at the individual stock level in the seven emerging and frontier markets of the Gulf region. While technical indicators show some early profitability promise, after controlling for the data snooping bias using the False Discovery Rate (FDR) methodology and non-synchronous trading, we fail to find any predictive ability or profitability for technical analysis. We arrive at a similar finding when assessing the risk-adjusted performance of a portfolio composed of stocks chosen based on technical indicators. The findings go to show the failure of technical analysis on the stock level. The findings are also evidence of the Gulf region markets being at least weak-form efficient and carry implications for investors choice of investment tools.
Journal: Emerging Markets Finance and Trade
Pages: 3739-3765
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1706046
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1706046
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Template-Type: ReDIF-Article 1.0
Author-Name: Martin Feldkircher
Author-X-Name-First: Martin
Author-X-Name-Last: Feldkircher
Author-Name: Florian Huber
Author-X-Name-First: Florian
Author-X-Name-Last: Huber
Author-Name: Maria Teresa Punzi
Author-X-Name-First: Maria Teresa
Author-X-Name-Last: Punzi
Author-Name: Pornpinun Chantapacdepong
Author-X-Name-First: Pornpinun
Author-X-Name-Last: Chantapacdepong
Title: The Transmission of Euro Area Interest Rate Shocks to Asia -- Do Effects Differ When Nominal Interest Rates are Negative?
Abstract: 
 This paper proposes a non-linear factor-augmented vector autoregressive model to evaluate spillovers to Asia from an unexpected rate cut in the euro area. We focus on potential asymmetries in the transmission of the shock that could arise due to prevailing negative interest rates in the euro area. Our findings indicate significant and negative effects on short-and long-term interest rates throughout selected Asian economies. While the cross-country impact on yields is quite homogeneous when the policy rate in the euro area is positive, large heterogeneity emerges when the shock occurs under a negative interest rate environment in the euro area. For several countries, the effects on Asian long-term yields are stronger, this implies that not only relative yield differentials play a role for international investors but also the absolute yield level. In this sense, negative interest rate policies can act as an amplifier of international portfolio rebalancing.
Journal: Emerging Markets Finance and Trade
Pages: 3818-3834
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1709438
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1709438
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Template-Type: ReDIF-Article 1.0
Author-Name: Ewa Cieślik
Author-X-Name-First: Ewa
Author-X-Name-Last: Cieślik
Author-Name: Jadwiga Biegańska
Author-X-Name-First: Jadwiga
Author-X-Name-Last: Biegańska
Author-Name: Stefania Środa-Murawska
Author-X-Name-First: Stefania
Author-X-Name-Last: Środa-Murawska
Title: Central and Eastern European States from an International Perspective: Economic Potential and Paths of Participation in Global Value Chains
Abstract: 
 This article presents the Central and Eastern European (CCE) countries and their role in global value chains (GVCs). The analysis consists of two steps. Firstly, we evaluated the economic potential of CEE countries. Secondly, we assessed the role of CEE states in international production linkages. We tested the hypothesis that the higher economic potential expressed in a more business-friendly economy is found in a country most involved in GVC in the context of foreign trade exchange. Results confirm that the relation between economic potential and the involvement of GVCs is not obvious and depends on many factors.
Journal: Emerging Markets Finance and Trade
Pages: 3587-3603
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1602519
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1602519
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Template-Type: ReDIF-Article 1.0
Author-Name: Wiesław Dębski
Author-X-Name-First: Wiesław
Author-X-Name-Last: Dębski
Author-Name: Ewa Feder-Sempach
Author-X-Name-First: Ewa
Author-X-Name-Last: Feder-Sempach
Author-Name: Piotr Szczepocki
Author-X-Name-First: Piotr
Author-X-Name-Last: Szczepocki
Title: Time-Varying Beta—The Case Study of the Largest Companies from the Polish, Czech, and Hungarian Stock Exchange
Abstract: 
 The main goal of this article is to investigate empirically the Kalman approach to estimate the time-varying beta parameter as a systematic investment risk market in Poland, Czech Republic, and Hungary. In our research, we investigate the assessments of beta on the basis of seven specifications of time-varying beta for the 12 largest companies listed on the Warsaw Stock Exchange (Poland), 7 on Prague Stock Exchange (Czech Republic), and 11 on Budapest Stock Exchange (Hungary). The obtained results are compared with the estimates received on the basis of Sharpe’s linear model. Estimations are made using the maximum likelihood method for monthly data in the period 2005–2017. We are presenting the ranking of the used specifications according to three criteria of goodness of fit and the matrix of correlation coefficients between the results of these specifications. The results show that the Kalman filter estimators outperform the others.
Journal: Emerging Markets Finance and Trade
Pages: 3855-3877
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2020.1738188
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1738188
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Template-Type: ReDIF-Article 1.0
Author-Name: Yigit Atilgan
Author-X-Name-First: Yigit
Author-X-Name-Last: Atilgan
Author-Name: K. Ozgur Demirtas
Author-X-Name-First: K. Ozgur
Author-X-Name-Last: Demirtas
Author-Name: A. Doruk Gunaydin
Author-X-Name-First: A. Doruk
Author-X-Name-Last: Gunaydin
Title: Predicting Equity Returns in Emerging Markets
Abstract: 
 This study investigates the relation between firm-specific attributes and future equity returns in 23 emerging markets. Equal-weighted portfolio returns reveal strong evidence of short-term momentum (rather than reversal) and medium-term return momentum. We also find evidence that market beta, book-to-market ratio and downside risk metrics predict equity returns, however, these relations get weaker once value-weighting is used. In univariate regressions, smaller firms with higher idiosyncratic volatility, lottery-like characteristics and stock-specific downside risk are associated with higher future returns, however, these relations disappear in a multivariate setting. We conclude that the most robust cross-sectional effects are short- and medium-term return momentum.
Journal: Emerging Markets Finance and Trade
Pages: 3721-3738
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2020.1822808
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1822808
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Template-Type: ReDIF-Article 1.0
Author-Name: Bogumiła Brycz
Author-X-Name-First: Bogumiła
Author-X-Name-Last: Brycz
Author-Name: Tadeusz Dudycz
Author-X-Name-First: Tadeusz
Author-X-Name-Last: Dudycz
Author-Name: Katarzyna Włodarczyk
Author-X-Name-First: Katarzyna
Author-X-Name-Last: Włodarczyk
Title: Are Analysts Really Optimistic in Their Stock Recommendations? The Case of the Polish Capital Market
Abstract: 
 This paper examines the relation between the quality of forecasts and the types of analysts’ stock recommendations. Using hand-collected data on stock recommendations issued for companies listed on the Warsaw Stock Exchange (WSE) in the period 2005–2012, we find that, despite analysts’ clear tendency to issue positive stock recommendations, this tendency generally does not affect the quality of their forecasts in all types of stock recommendations. The accuracy of forecasts, however, decreases as the complexity of the forecasted items (revenue, EBIT, net income, and FCF) increases. We also find no clear difference in the level of analysts’ optimism (pessimism) in their forecasts between different types of stock recommendations, but analysts’ optimism is visible in the size of their forecasts’ overestimation. The findings can help in assessing the value of the stock recommendation on the WSE.
Journal: Emerging Markets Finance and Trade
Pages: 3649-3676
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1694886
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1694886
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:13:p:3649-3676




Template-Type: ReDIF-Article 1.0
Author-Name: Sabina Nowak
Author-X-Name-First: Sabina
Author-X-Name-Last: Nowak
Author-Name: Urszula Mrzygłód
Author-X-Name-First: Urszula
Author-X-Name-Last: Mrzygłód
Author-Name: Magdalena Mosionek-Schweda
Author-X-Name-First: Magdalena
Author-X-Name-Last: Mosionek-Schweda
Author-Name: Jakub M. Kwiatkowski
Author-X-Name-First: Jakub M.
Author-X-Name-Last: Kwiatkowski
Title: What Do We Know about Dividend Smoothing in This Millennium? Evidence from Asian Markets
Abstract: 
 We examined the smoothing pattern of dividends on publicly stock-listed companies in the so-called Asian Tigers – China, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand. Based on a panel of data comprising 702 companies from 2000 to 2015, we estimated the speed of dividend adjustment (SOA) using a generalized method of moments two-step estimator. Having implemented an improved procedure using a rolling regression, we obtained the SOA coefficient equal to 0.447, which confirmed a moderate level of dividend smoothing among the selected countries. Moreover, we examined the SOA’s drivers by employing a range of variables reflecting the companies’ and the countries’ characteristics. The most influential firm-level determinants of dividend smoothing in emerging Asian markets were payout ratio, retained earnings and level of risk proxied by the return on asset standard deviation. Additionally, we identified the relevance of the financial market sophistication and board efficacy as potential drivers of dividend smoothing.
Journal: Emerging Markets Finance and Trade
Pages: 3677-3706
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1711367
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1711367
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:13:p:3677-3706




Template-Type: ReDIF-Article 1.0
Author-Name: Xingquan Yang
Author-X-Name-First: Xingquan
Author-X-Name-Last: Yang
Author-Name: Wencong Li
Author-X-Name-First: Wencong
Author-X-Name-Last: Li
Author-Name: Yumei Fu
Author-X-Name-First: Yumei
Author-X-Name-Last: Fu
Title: Ultimate Ownership, Corporate Diversification, and Cash Dividends: Evidence from China
Abstract: 
 Using a sample of listed companies from the Chinese stock market between 2003 and 2017, this article investigates the effect of corporate diversification on cash dividend payments and the exacerbating effects of the ultimate controller. Our results show that diversification reduces cash dividend payments and that a state-owned controller exacerbates such adverse effects; this exacerbating role is especially significant in cases of greater government intervention and greater political mobility pressure on executives who seek political advancement. Further study also shows that an increased marketization process (MP) and government quality (GQ) mitigate the negative impact of diversification on dividend payments, and that the mitigating effects of MP and GQ are particularly prominent in state-owned enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 3878-3890
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2020.1848815
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1848815
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Template-Type: ReDIF-Article 1.0
Author-Name: Fang She
Author-X-Name-First: Fang
Author-X-Name-Last: She
Author-Name: Muhammad Zakaria
Author-X-Name-First: Muhammad
Author-X-Name-Last: Zakaria
Author-Name: Mahmood Khan
Author-X-Name-First: Mahmood
Author-X-Name-Last: Khan
Author-Name: Jun Wen
Author-X-Name-First: Jun
Author-X-Name-Last: Wen
Title: Purchasing Power Parity in Pakistan: Evidence from Fourier Unit Root Tests
Abstract: 
 The paper empirically examines the validity of purchasing power parity (PPP) in Pakistan. For this purpose, unit root properties of real exchange rates (RERs) of Pakistan against its 21 major trading partners are examined using Fourier ADF (FADF) and Fourier KPSS (FKPSS) unit root tests for the period 1983Q1 to 2014Q4. Fourier unit root tests are used as they consider multiple temporary structural breaks and nonlinearity of the data. FADF test rejects the null hypothesis of unit root (non-stationary) in three RER series, while FKPSS test rejects the null hypothesis of stationary in nine RER series. Thus, FADF unit root test provide support for PPP hypothesis in three exchange rate series, while FKPSS test validates PPP theory in 12 exchange rate series. For robustness analysis, PPP equation is also estimated using regression analysis. The regression results show that PPP hypothesis is valid for nine exchange rate series. These findings suggest that PPP hypothesis partially holds in Pakistan.
Journal: Emerging Markets Finance and Trade
Pages: 3835-3854
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1709820
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1709820
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Template-Type: ReDIF-Article 1.0
Author-Name: Tomasz Uryszek
Author-X-Name-First: Tomasz
Author-X-Name-Last: Uryszek
Title: Can Fiscal Paths Be Sustainable? Evidence from Poland
Abstract: 
 This article investigates the degree of long-term fiscal sustainability in Poland through two hypotheses: (I) an inability to generate primary surpluses and a significant grow of public debt volumes have hindered past attainment of fiscal sustainability and (II) the recurring problems with generating primary surpluses will block future fiscal sustainability. The research period covers yearly observations between 1999–2017, as well as forecasts for 2018–2028, which include estimations for different possible fiscal paths in Poland. The analysis are based on two different methods, both deriving from the idea of intertemporal budget constraint: primary gap indicator and Ponzi scheme estimations.
Journal: Emerging Markets Finance and Trade
Pages: 3634-3648
Issue: 13
Volume: 57
Year: 2021
Month: 10
X-DOI: 10.1080/1540496X.2019.1668768
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668768
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Template-Type: ReDIF-Article 1.0
Author-Name: Yanhui Jiang
Author-X-Name-First: Yanhui
Author-X-Name-Last: Jiang
Author-Name: Yun Hong
Author-X-Name-First: Yun
Author-X-Name-Last: Hong
Title: State Media, Institutional Environment, and Analyst Forecast Quality: Evidence from China
Abstract: 
 Analysts’ forecast quality in emerging markets is remarkably low and few influential factors are known. In this study, we use textual analysis to explore the impact of the state’s media – China Central Television (CCTV) – on analysts’ forecast quality. We find that analysts’ earnings forecasts are biased when CCTV news optimistically puts more emphasis on the economy, thus compromising the accuracy of the forecasts. CCTV’s impact is enormous in state-owned brokers and firms and firms facing less marketization. Investors can use CCTV’s impact on the analysts to act cautiously.
Journal: Emerging Markets Finance and Trade
Pages: 3929-3943
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1766443
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1766443
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Template-Type: ReDIF-Article 1.0
Author-Name: Jihong Liu
Author-X-Name-First: Jihong
Author-X-Name-Last: Liu
Author-Name: Chao Yan
Author-X-Name-First: Chao
Author-X-Name-Last: Yan
Author-Name: Yong Huang
Author-X-Name-First: Yong
Author-X-Name-Last: Huang
Title: Equity Misvaluation and SEO Initiation in China
Abstract: 
 Taking advantage of the regulative environment of seasoned equity offerings (i.e., SEOs) in China, we examine the dynamics of stock valuation in the lifecycle of SEOs, and their relationship with firms initiating SEOs. Employing various valuation approaches, we find robust evidence that SEOs are persistently overvalued. We also find that managers are more likely to initiate SEOs when their persistently overvalued stock prices are in an ascending channel. Our findings suggest that timing-seeking managers are conservative in initiating SEOs under the regulative screening. However, managers with remarkable market timing ability can beat the market and issue seasoned shares in overvalued prices.
Journal: Emerging Markets Finance and Trade
Pages: 4054-4069
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1793754
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1793754
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Template-Type: ReDIF-Article 1.0
Author-Name: Chao Zhou
Author-X-Name-First: Chao
Author-X-Name-Last: Zhou
Title: How Does Capital Intensity Affect the Relationship between Outward FDI and Productivity? Micro-evidence from Chinese Manufacturing Firms
Abstract: 
 Based on outward foreign direct investment (OFDI) data of Chinese manufacturing companies in the period of 2001–2016, this paper examines the impact of capital intensity on the casual relationship between OFDI and productivity. Results show that, first, the pre-entry productivity of OFDI firms is higher than that of non-OFDI firms only for labor-intensive firms but not for capital-intensive firms, which suggests the self-selection effect only holds for labor-intensive firms. Second, the post-entry productivity improvement of OFDI firms only gained by capital-intensive firms but not by labor-intensive OFDI firms, which suggests the learning-by-doing effect only holds for capital-intensive firms. One possible explanation for these results is that the OFDI purpose of capital-intensive firms is to achieve technical progress while the OFDI purpose of labor-intensive firms is to gain profits.
Journal: Emerging Markets Finance and Trade
Pages: 4004-4019
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1784138
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1784138
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Template-Type: ReDIF-Article 1.0
Author-Name: Evrim Akdoğu
Author-X-Name-First: Evrim
Author-X-Name-Last: Akdoğu
Author-Name: S. Burcu Avci
Author-X-Name-First: S. Burcu
Author-X-Name-Last: Avci
Author-Name: Serif Aziz Simsir
Author-X-Name-First: Serif Aziz
Author-X-Name-Last: Simsir
Title: Stock Price Reaction to Debt Offerings: The Turkish Evidence
Abstract: 
 We investigate the valuation effects of debt issues on the issuing firms’ common stock using a sample of Turkish issuers. For the sample of non-financial firms, we find no significant wealth effects for debt issues around the announcement dates. However, market reactions are more positive when information asymmetry between firm managers and outside investors is low, agency costs are high, and when debt issues are likely to carry positive information about firms’ prospects. These results support pecking order, signaling, and agency theories of capital structure. In additional tests, we find positive market reactions to debt issue announcements of financial firms.
Journal: Emerging Markets Finance and Trade
Pages: 4070-4088
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1798225
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1798225
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Template-Type: ReDIF-Article 1.0
Author-Name: Shuangyan Li
Author-X-Name-First: Shuangyan
Author-X-Name-Last: Li
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Mingbo Zheng
Author-X-Name-First: Mingbo
Author-X-Name-Last: Zheng
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name: Qiang Fu
Author-X-Name-First: Qiang
Author-X-Name-Last: Fu
Title: Financial Market Friction and Corporate Restructuring Activities in China
Abstract: 
 This study empirically investigates the effect of external financial market friction on restructuring activities, based on panel data of listed Chinese firms from 2004 to 2018. The results show that there is a positive correlation between financial market friction and the number of restructuring deals. We also find that high financial market friction increases preference for cash payments and the likelihood of mergers and acquisitions. These findings add to the restructuring literature by capturing heterogenous restructuring forms. They also deepen the understanding of the firm boundary theory, by suggesting that firms have incentives to increase their scopes when facing external market distress.
Journal: Emerging Markets Finance and Trade
Pages: 4089-4104
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1801409
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1801409
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:14:p:4089-4104




Template-Type: ReDIF-Article 1.0
Author-Name: Wenli Wang
Author-X-Name-First: Wenli
Author-X-Name-Last: Wang
Author-Name: Qian Sun
Author-X-Name-First: Qian
Author-X-Name-Last: Sun
Author-Name: Mingbo Zheng
Author-X-Name-First: Mingbo
Author-X-Name-Last: Zheng
Title: Marketization Level, Fiscal Input, and Rural Commercial Bank Performance
Abstract: 
 Based on the financial deepening theory and the imperfect competition market theory, this article analyzes the influence of marketization level on rural commercial bank’s financial performance as well as social performance by adopting the data of 36 rural commercial banks in China during the period 2012–2016 and further discusses the role of fiscal input in this relationship. We utilize a panel threshold model to examine the nonlinear influence. The empirical results show that the impact of marketization level on financial performance of rural commercial banks is nonlinear. Marketization exerts a greater positive impact on financial performance of rural commercial banks when marketization is low. In addition, marketization exerts an underlying effect on rural commercial bank’s social performance when the threshold of marketization is exceeded. Finally, fiscal input of the government plays an inhibitory role in this promotion relationship. Overall, we confirm that marketization plays a crucial role in rural commercial bank’s performance.
Journal: Emerging Markets Finance and Trade
Pages: 4105-4120
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1803825
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1803825
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:14:p:4105-4120




Template-Type: ReDIF-Article 1.0
Author-Name: Barkat Ullah
Author-X-Name-First: Barkat
Author-X-Name-Last: Ullah
Title: The Differential Effect of Corruption on Growth: Does Firm Origin Matter?
Abstract: 
 This study investigates whether the impact of firm-level corruption on growth varies based on origin of the firm. More specifically, I examine how corruption in the business environment affects growth for privatized former state-owned enterprises (SOEs) and originally private firms in transition economies. Employing Business Environment and Enterprise Performance Survey (BEEPS) data and using a sample of 15,103 unique firms in 30 Eastern European and Central Asian countries, I find that corruption hampers growth for private firms, but it is not detrimental to privatized firms’ growth. In fact, some evidence suggests that corruption helps privatized firms growing faster.
Journal: Emerging Markets Finance and Trade
Pages: 4036-4053
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1785861
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1785861
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Template-Type: ReDIF-Article 1.0
Author-Name: Sakib Amin
Author-X-Name-First: Sakib
Author-X-Name-Last: Amin
Author-Name: Tooraj Jamasb
Author-X-Name-First: Tooraj
Author-X-Name-Last: Jamasb
Author-Name: Manuel Llorca
Author-X-Name-First: Manuel
Author-X-Name-Last: Llorca
Author-Name: Laura Marsiliani
Author-X-Name-First: Laura
Author-X-Name-Last: Marsiliani
Author-Name: Thomas I. Renström
Author-X-Name-First: Thomas I.
Author-X-Name-Last: Renström
Title: Combining Private and Public Resources: Captive Power Plants and Electricity Sector Development in Bangladesh
Abstract: 
 Developing economies need to efficiently utilize both public and private resources to develop their energy sectors. The opportunity cost of failing to do so is high. This article uses a Dynamic Stochastic General Equilibrium (DSGE) approach to assess the integration of the Captive Power Plants (CPPs) in the power sector of Bangladesh. We find that if Bangladesh shut down the CPPs, the long-run industrial output and GDP would fall by 1.5% and 1.2%, respectively. The Impulse Response Functions (IRFs) show that the Bangladesh economy would be more vulnerable to oil price shocks without CPPs. In order to minimize distortion in the energy markets, the government could instead consider alternative reforms such as promoting the use of efficient production technologies or the replacement of fossil fuels with renewable energy sources.
Journal: Emerging Markets Finance and Trade
Pages: 3891-3912
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2019.1703107
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1703107
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:14:p:3891-3912




Template-Type: ReDIF-Article 1.0
Author-Name: Afees A. Salisu
Author-X-Name-First: Afees A.
Author-X-Name-Last: Salisu
Author-Name: Ibrahim Adeleke
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Adeleke
Author-Name: Lateef O. Akanni
Author-X-Name-First: Lateef O.
Author-X-Name-Last: Akanni
Title: Asymmetric and Time-Varying Behavior of Exchange Rate and Interest Rate Differential in Emerging Markets
Abstract: 
 This study assesses the nonlinearities in the nexus between exchange rate and interest rate differential in emerging economies of BRICS. We employ Panel Nonlinear Autoregressive Distributed Lag and Panel Threshold Regression (PTR) models. The study finds mixed result for asymmetry in the nexus. It also shows evidence for time-variation and the positive impact of interest rate differential on exchange rate gradually increases at higher economic activity and inflation regime. The implication is that interest rate differential has both asymmetric and time-varying effects on exchange rate which partly explains the continuous adjustment of monetary policy rates in many emerging markets. Finally, the role of economic productivity and domestic price level in the response of exchange rate to interest rate differentials across the BRICS should not be jettisoned to realize plausible outcomes.
Journal: Emerging Markets Finance and Trade
Pages: 3944-3959
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1766444
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1766444
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiang Deng
Author-X-Name-First: Xiang
Author-X-Name-Last: Deng
Author-Name: Xiang Cheng
Author-X-Name-First: Xiang
Author-X-Name-Last: Cheng
Author-Name: Zhiming Fu
Author-X-Name-First: Zhiming
Author-X-Name-Last: Fu
Title: Household Financial Decision-Making and Macroeconomic Fluctuations
Abstract: 
 This paper introduces household financial decision-making process into the classic financial intermediation model, which allows us to study the impact of households’ portfolio choice on the behavior of financial intermediation and the real economy. Our numerical results show that the incorporation of household financial decision helps stabilize the aggregate economy through the following channel. A negative shock of capital quality reduces the total assets of financial intermediaries and tightens their lending to enterprises. This leads to a decline in social investment and output. Then, the household responds to this by changing their asset composition, which alleviates the impact of the negative shock and thus stabilize the economy.
Journal: Emerging Markets Finance and Trade
Pages: 4143-4165
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2019.1710128
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1710128
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Template-Type: ReDIF-Article 1.0
Author-Name: Yunpeng Wang
Author-X-Name-First: Yunpeng
Author-X-Name-Last: Wang
Author-Name: Jingxin Sun
Author-X-Name-First: Jingxin
Author-X-Name-Last: Sun
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Title: Marketization, Competition, and Insurance Pricing: The Comprehensive Evidence from China
Abstract: 
 As a typical deviation from profit-maximizing, the revenue-maximizing behavior has explained the strategy of firms in many industries. This research first looks into the Chinese non-life insurance market and finds evidence of revenue-maximizing behavior of the non-life insurers. We construct a model based on game theory to reflect the revenue-maximizing behavior and calculate the Nash equilibrium of the game. The research finds that revenue-maximizing players will incur operation loss in the game; the insurers with less competitive strength will suffer more loss. The theoretical results are hence applied tests by case study on Chinese auto insurance industry. The panel cointegration test and the regression results reveal that a more liberalized regulatory regime will result in a lower price, while large insurers tend to take advantage of their market power to price at a higher level than smaller insurers, this finding corresponding to the result of our theoretical model.
Journal: Emerging Markets Finance and Trade
Pages: 3984-4003
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1771304
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1771304
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Template-Type: ReDIF-Article 1.0
Author-Name: Jian Wang
Author-X-Name-First: Jian
Author-X-Name-Last: Wang
Author-Name: Shangkun Yi
Author-X-Name-First: Shangkun
Author-X-Name-Last: Yi
Author-Name: Xiaoting Wang
Author-X-Name-First: Xiaoting
Author-X-Name-Last: Wang
Author-Name: Jun Yang
Author-X-Name-First: Jun
Author-X-Name-Last: Yang
Author-Name: Zhongzhong Jiang
Author-X-Name-First: Zhongzhong
Author-X-Name-Last: Jiang
Title: How Do Mutual Funds in China Exploit Investor Sentiment?
Abstract: 
 Mutual funds in China that invest heavily in stocks with high sentiment beta deliver poorer performance when standard risk factors and fund characteristics are controlled. However, these funds attract more new investment, which is somewhat puzzling. Funds adopting such a sentiment-catering strategy follow less idiosyncratic strategies and tend to increase risk taking. The impact of fund sentiment beta is more significant in bull markets than in bear markets, and more pronounced for growth and balanced funds than for value funds. Together, the findings suggest that Chinese mutual funds exploit investor sentiment for self-serving purposes.
Journal: Emerging Markets Finance and Trade
Pages: 4020-4035
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1784715
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1784715
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Template-Type: ReDIF-Article 1.0
Author-Name: Juyoun Ryoo
Author-X-Name-First: Juyoun
Author-X-Name-Last: Ryoo
Author-Name: Cheolwoo Lee
Author-X-Name-First: Cheolwoo
Author-X-Name-Last: Lee
Author-Name: Jin Q. Jeon
Author-X-Name-First: Jin Q.
Author-X-Name-Last: Jeon
Title: Multiple Credit Rating: Triple Rating under the Requirement of Dual Rating in Korea
Abstract: 
 The paper investigates a unique phenomenon where triple rating gained popularity while dual rating is required in Korea. Triple rating may improve information production by introducing increased competition among CRAs (credit rating agencies) while it may exacerbate rating inflation through more rating shopping and rating catering on the ground of greater bargaining power shifted toward the issuer. We examine the effect of triple rating on rating inflation, information production, and rating changes. Triple rating on average has a lower rating and a greater information production effect than dual rating after controlling for endogeneity. The rating level appears to be a significant factor in shaping the future rating mandates in triple rating. The propensity that splits are resolved through rating upgrades in triple rating significantly existed but has noticeably faded away since the strict regulatory changes in 2009.
Journal: Emerging Markets Finance and Trade
Pages: 3960-3983
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1768071
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1768071
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Template-Type: ReDIF-Article 1.0
Author-Name: Nguyet Thi Minh Phi
Author-X-Name-First: Nguyet Thi Minh
Author-X-Name-Last: Phi
Author-Name: Farhad Taghizadeh-Hesary
Author-X-Name-First: Farhad
Author-X-Name-Last: Taghizadeh-Hesary
Author-Name: Chuc Anh Tu
Author-X-Name-First: Chuc Anh
Author-X-Name-Last: Tu
Author-Name: Naoyuki Yoshino
Author-X-Name-First: Naoyuki
Author-X-Name-Last: Yoshino
Author-Name: Chul Ju Kim
Author-X-Name-First: Chul Ju
Author-X-Name-Last: Kim
Title: Performance Differential between Private and State-owned Enterprises: An Analysis of Profitability and Solvency
Abstract: 
 Motivated by the rise of state capitalism, the paper investigates the relationship between ownership identity and the performance of firms in terms of profitability and solvency. Using cross-sectional data covering over 25,000 firms worldwide and by employing various empirical methods, we find robust evidence that state-owned enterprises (SOEs) tend to be less profitable than private-owned enterprises. However, they appear to use debt for their financial need and are, thus, better leveraged. SOEs are also more labor-intensive and have higher labor costs. In addition, an improvement in institutional quality could benefit both SOEs and POEs. Thus, evidence from this study could be interpreted to mean that privatization could improve the performance of public firms; however, this process should come with several prior-privatization approaches. A study over a more extended period is needed before these results can be considered conclusive.
Journal: Emerging Markets Finance and Trade
Pages: 3913-3928
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1809375
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1809375
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Template-Type: ReDIF-Article 1.0
Author-Name: Qian Jia
Author-X-Name-First: Qian
Author-X-Name-Last: Jia
Author-Name: Chao Kevin Li
Author-X-Name-First: Chao Kevin
Author-X-Name-Last: Li
Author-Name: Yi Si
Author-X-Name-First: Yi
Author-X-Name-Last: Si
Title: Specifying Dividend Provisions in Response to Dividend Regulation: Evidence from China
Abstract: 
 By exploring a unique setting wherein all Chinese listed firms were mandated to specify dividend provisions, we find such dividend regulation generates costs to firms. In particular, low agency cost firms tend to strengthen their dividend provisions. Firms strengthening dividend provisions raise more equity than other firms, at least in a subsample with high dependence on equity. These firms incur higher costs than other firms when issuing equity. All these findings highlight the regulatory cost imposed by dividend regulation. In addition, investors downward revise their valuation of earnings if a firm misses its dividend provision, maintaining the observed separating equilibrium.
Journal: Emerging Markets Finance and Trade
Pages: 4121-4142
Issue: 14
Volume: 57
Year: 2021
Month: 11
X-DOI: 10.1080/1540496X.2020.1807321
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1807321
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Template-Type: ReDIF-Article 1.0
Author-Name: Xinxin Ma
Author-X-Name-First: Xinxin
Author-X-Name-Last: Ma
Author-Name: Ximing Chen
Author-X-Name-First: Ximing
Author-X-Name-Last: Chen
Title: Scenario Analysis on the Macroeconomic Impact of COVID-19: A Computable General Equilibrium Approach
Abstract: 
 This article uses the Computable General Equilibrium Model (CGE) of an open economy to analyze the impact of the COVID-19 pandemic on an open economy and industry sub-sectors, using the 2017 China Social Accounting Matrix (SAM) table data. The results have shown that, overall, the COVID-19 pandemic has harmed the economy extensively. The residential sector has been the most severely affected sector, particularly the hotels and catering services industries. Resident consumption demand is the most deeply affected part of all industries in all scenarios. Stabilizing employment and expanding demand is therefore an important mission for the government.
Journal: Emerging Markets Finance and Trade
Pages: 102-115
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1987213
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1987213
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Template-Type: ReDIF-Article 1.0
Author-Name: Ting Wang
Author-X-Name-First: Ting
Author-X-Name-Last: Wang
Author-Name: Shi-Cheng Pan
Author-X-Name-First: Shi-Cheng
Author-X-Name-Last: Pan
Author-Name: Xiang-Yan Zhu
Author-X-Name-First: Xiang-Yan
Author-X-Name-Last: Zhu
Author-Name: Bin Liao
Author-X-Name-First: Bin
Author-X-Name-Last: Liao
Title: Research on the Influence of Innovation Ability on the Level of University Scientific Research: A Case Study of the Nine-University Alliance in China
Abstract: 
 To examine scientific research and innovation and commercialization of scientific and technological achievements, we construct a two-stage data envelopment analysis(DEA) model with shared inputs, taking into account the capacity for university construction and the economic benefits of scientific research at colleges and universities. On the basis of this model, the paper explores overall and sub-stage efficiency changes at colleges and universities under two kinds of model. We find that the overall level of scientific research at colleges and universities varies greatly under the model of valuing innovation in science and technology and ignoring commercialization of scientific and technological achievements; the weaknesses in the scientific research system differ under the two models, but the changes in their efficiency are similar. Tsinghua University and the Harbin Institute of Technology have become effective in both models. We further find that the scientific research under a two-stage balanced model is better coordinated. Finally, the paper offers some suggestions on the current of colleges and universities.
Journal: Emerging Markets Finance and Trade
Pages: 134-144
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1636227
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1636227
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Template-Type: ReDIF-Article 1.0
Author-Name: Yarong Hao
Author-X-Name-First: Yarong
Author-X-Name-Last: Hao
Author-Name: Bin Dong
Author-X-Name-First: Bin
Author-X-Name-Last: Dong
Title: Determinants and Consequences of Risk Disclosure: Evidence from Chinese Stock Markets during the COVID-19 Pandemic
Abstract: 
 This study examines the determinants and consequences of firms’ disclosures related to the COVID-19 pandemic in annual financial reports in China. First, we find that firms with high growth opportunity or low stock liquidity tended to disclose COVID-19 pandemic information to mitigate information asymmetry. Second, our results show that voluntary risk disclosure significantly decreased stock risks due to the reduction of information asymmetry. We further find that stock price crash risks decreased for firms that reported risk information compared with those that did not. Our results suggest that detailed voluntary risk disclosure is needed to mitigate stock risks, especially in extreme situations.
Journal: Emerging Markets Finance and Trade
Pages: 35-55
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1964468
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1964468
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Template-Type: ReDIF-Article 1.0
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Author-Name: Lingyi Li
Author-X-Name-First: Lingyi
Author-X-Name-Last: Li
Author-Name: Jialing Jiang
Author-X-Name-First: Jialing
Author-X-Name-Last: Jiang
Title: The Impact of COVID-19 Pandemic on Emerging Country Stock Markets: Evidence of the Value Effect
Abstract: 
 We examine the impact of the COVID-19 pandemic on seven emerging stock markets by focusing on the value effect. Our results show that there are significant differences in the value premia before and during the pandemic. Furthermore, the traditional value proxies are no longer good predictors of future stock returns. To further capture the impact the pandemic’s progress on stock returns, we estimate Fama-MacBeth regressions by introducing proxies of the pandemic. We uncover heterogeneous responses of emerging markets to the pandemic. These findings provide a wealth of insights on the presence and driving force relevant to the value effect.
Journal: Emerging Markets Finance and Trade
Pages: 70-81
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1973423
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1973423
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:1:p:70-81




Template-Type: ReDIF-Article 1.0
Author-Name: Gonzalo Cortazar
Author-X-Name-First: Gonzalo
Author-X-Name-Last: Cortazar
Author-Name: Hector Ortega
Author-X-Name-First: Hector
Author-X-Name-Last: Ortega
Author-Name: Rodrigo Romero
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Romero
Title: How Valuable Is Market-and Firm-Specific Information for Calculating Bond Spreads in an Emerging Market?
Abstract: 
 The determinants of corporate bond credit spreads are investigated in Chile as an example of an emerging market with relatively few actors and thin trading. Both market-level and firm-level factors are considered. Three models previously used to analyze the highly developed US market are applied to Chilean inflation-indexed bond trade data, and the results for the two markets are compared. The determinants found to be significant for Chile form the basis for the design of a new multifactor regression model that is used to explain Chilean bond spreads. The results are evaluated with an out-of-sample test, and the root-mean-square error is calculated to compare the model’s results with those obtained by the method commonly applied in illiquid markets by repeating the last recorded transaction for days on which no data are available. The proposed formulation is found to reduce the degree of error.
Journal: Emerging Markets Finance and Trade
Pages: 164-179
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1650347
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1650347
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Template-Type: ReDIF-Article 1.0
Author-Name: Litan Wang
Author-X-Name-First: Litan
Author-X-Name-Last: Wang
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Title: VAT Rebate Policy and Export Performance: A Case Study of China’s Mechanical Goods Industry
Abstract: 
 Value-added tax (VAT) rebate policy plays an important role in China’s export growth strategy. In this paper, we extended the existing model by introducing the micro-mechanism of VAT rebates into their original framework. This extended model allows us to investigate the economic effect of VAT rebate policy. Our theoretical model suggests that, in the short term, raising the VAT rebate rate may decrease the price as well as the quantity of exports. To empirically examine our conclusions based on the theoretical model, we employ the provincial-level panel data on China covering the period 2012–2017 to analyze the role of VAT policy on exports from China’s mechanical goods industry. To address the issue of potential endogeneity, we adopt a propensity score matching (PSM) technique. Our empirical findings based on the panel data confirm that VAT rebates had a significantly negative effect on China’s mechanical goods exports. In particular, on average, a one-percentage-point increase in the VAT rebate rate decreases exports by 2.07%. Our results are robust to alternative bandwidths. Areas for future research are also identified.
Journal: Emerging Markets Finance and Trade
Pages: 180-194
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1668771
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1668771
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:1:p:180-194




Template-Type: ReDIF-Article 1.0
Author-Name: Yao Zhang
Author-X-Name-First: Yao
Author-X-Name-Last: Zhang
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Author-Name: Zefeng Xu
Author-X-Name-First: Zefeng
Author-X-Name-Last: Xu
Author-Name: Wenyun Yao
Author-X-Name-First: Wenyun
Author-X-Name-Last: Yao
Title: Who Obtained More Bank Loans after the Outbreak of COVID-19? Evidence from Chinese Listed Companies
Abstract: 
 One of the most serious risks from COVID-19 is a financial crisis for a company. Governments and central banks have used both fiscal and monetary tools on a large scale to alleviate the financial crises of companies. We build a cross-sectional model to explore who obtained more bank loans after the outbreak of COVID-19. Using data from China’s listed companies, we find that real estate companies and state-owned companies obtained more bank loans. In addition, there is no evidence that industries more severely affected by the virus obtained more bank loans. Our findings demonstrate that the misallocation of credit in China worsened after the outbreak of COVID-19.
Journal: Emerging Markets Finance and Trade
Pages: 11-23
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1929166
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1929166
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Template-Type: ReDIF-Article 1.0
Author-Name: Bao Wu
Author-X-Name-First: Bao
Author-X-Name-Last: Wu
Author-Name: Haiyan Liang
Author-X-Name-First: Haiyan
Author-X-Name-Last: Liang
Author-Name: Shifen Chan
Author-X-Name-First: Shifen
Author-X-Name-Last: Chan
Title: Political Connections, Industry Entry Choice and Performance Volatility: Evidence from China
Abstract: 
 Based on dataset of Chinese listed manufacturing firms over the period 2008–2019, we examine the effect of the choice of industry entry as a mediating factor between political connections and firm performance volatility. The empirical results suggest that politically connected firms have more performance volatility, and political connections increase the likelihood of entering an emerging industry of national strategic importance or subject to entrance regulations. We further find that this choice leads to performance volatility at politically connected firms. Moreover, development of the institutional environment can reduce the effectiveness of political connections.
Journal: Emerging Markets Finance and Trade
Pages: 290-299
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1904878
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1904878
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Template-Type: ReDIF-Article 1.0
Author-Name: Afees A. Salisu
Author-X-Name-First: Afees A.
Author-X-Name-Last: Salisu
Author-Name: Idris A. Adediran
Author-X-Name-First: Idris A.
Author-X-Name-Last: Adediran
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: A Note on the COVID-19 Shock and Real GDP in Emerging Economies
Abstract: 
 In this study, we estimate a multi-country Threshold-Augmented Global Vector Autoregressive (TGVAR) model to analyze the response of real GDP of emerging economies (Brazil, India, China, and South Africa) with reference to selected advanced economies (US, UK, & Germany) to the COVID-19 shock. The result of the counterfactual analysis beyond the 2019Q4 indicates that the impact of COVID-19 shock on real GDP is pervasive and more prevalent in the developed than the emerging economies. Our model forecasts real GDP growth of emerging countries more precisely, but we attribute the shortfalls in the projections for advanced economies to the efficacy of fiscal and unconventional monetary policies to speed up the recovery in these countries.
Journal: Emerging Markets Finance and Trade
Pages: 93-101
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1981854
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1981854
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Template-Type: ReDIF-Article 1.0
Author-Name: Yibin Zhang
Author-X-Name-First: Yibin
Author-X-Name-Last: Zhang
Author-Name: Jiangtao Hong
Author-X-Name-First: Jiangtao
Author-X-Name-Last: Hong
Author-Name: Xue Li
Author-X-Name-First: Xue
Author-X-Name-Last: Li
Author-Name: Victor Shi
Author-X-Name-First: Victor
Author-X-Name-Last: Shi
Title: The Impacts of Quality System Integration and Relationship Quality on Quality Performance in Supply Chains: An Empirical Investigation in China
Abstract: 
 Product-safety incidents and recalls such as automobile recalls by Toyota and a recall of sausages by Shuanghui have raised many quality management challenges and attracted increasing attention from practitioners and academics researchers in recent years. Traditional quality management and quality function development can no longer effectively address these problems, with competition moving from the firm level to the supply chain level. In this study, a holistic supply chain quality management framework on the relationship between supply chain quality system integration, supply chain relationship quality, and quality performance is proposed to improve quality management and mitigate the risk of product recalls. Then a structural equation model is used to analyze these relationships. To test this model empirically, we use survey data from manufacturers in consumer electronics, food, automobiles, pharmaceuticals, and toys in China. Our results show that supply chain quality management can help companies achieve high quality. Further, quality system integration and relationship quality have significant impacts on the quality of design and of conformance and are positively related to supply chain quality performance.
Journal: Emerging Markets Finance and Trade
Pages: 116-133
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1627196
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1627196
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Template-Type: ReDIF-Article 1.0
Author-Name: Alfredo Mendiola
Author-X-Name-First: Alfredo
Author-X-Name-Last: Mendiola
Author-Name: Luis Chavez-Bedoya
Author-X-Name-First: Luis
Author-X-Name-Last: Chavez-Bedoya
Author-Name: Thilo Wallenstein
Author-X-Name-First: Thilo
Author-X-Name-Last: Wallenstein
Title: Analyzing the Reaction of Mining Stocks to the Development of Copper Prices
Abstract: 
 Copper is considered one of the most important minerals in the world; however, most of the finance literature focus on determining the relationship between changes in gold spot prices and mining stock returns. To fill this literature gap, we analyze the impact of changes in copper spot and futures prices on the stock returns of copper mining firms. Considering a sample of high market-cap firms, we find evidence of a positive but inelastic relationship between copper stock returns and changes in copper prices. Additionally, we determine that the 2008–2009 global crisis influenced investors’ decisions thus generating a negative impact on copper stock returns. Finally, we provide evidence to reject the hypothesis of integrated markets; indeed, changes in copper prices have a larger impact on stock returns of copper mining firms traded in more developed markets (New York, Toronto, and London) compared with stocks traded in a less developed one (Lima).
Journal: Emerging Markets Finance and Trade
Pages: 244-266
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1703103
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1703103
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:1:p:244-266




Template-Type: ReDIF-Article 1.0
Author-Name: Zhixin Wang
Author-X-Name-First: Zhixin
Author-X-Name-Last: Wang
Author-Name: Qin Zhao
Author-X-Name-First: Qin
Author-X-Name-Last: Zhao
Author-Name: Xiangyu Zong
Author-X-Name-First: Xiangyu
Author-X-Name-Last: Zong
Title: Financial Constraints with the Outbreak of COVID-19 and the Equity Guarantee Swap
Abstract: 
 In order to further alleviate the financing constraints on SMEs and to reduce financing costs incurred following the outbreak of COVID-19, this article introduces an innovative financial arrangement called equity for guarantee swaps (EGS), which are based on widely used credit guarantee schemes (CGS). EGS can reduce information asymmetry and increase credit to SMEs, so that they can obtain more favorable financing conditions and alleviate liquidity difficulties. This helps to reverse the adverse impact of the pandemic. More importantly, from an academic perspective EGS demonstrate Pareto improvement over CGS.
Journal: Emerging Markets Finance and Trade
Pages: 82-92
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1980384
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1980384
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Template-Type: ReDIF-Article 1.0
Author-Name: Makram El-Shagi
Author-X-Name-First: Makram
Author-X-Name-Last: El-Shagi
Author-Name: Yizhuang Zheng
Author-X-Name-First: Yizhuang
Author-X-Name-Last: Zheng
Title: Money Demand in China: A Meta Study
Abstract: 
 In this paper, we reexamine the literature on money demand in China published both in English and Chinese language. Over the past 30 years, there has been a regular stream of papers assessing the Chinese money demand function. The literature mostly focuses on income elasticity, stability, and, especially important for China, the adequate choice and quality of data. In particular, regarding the stability of money demand, we find a substantial publication bias towards rejecting stability. When controlling for publication bias and focusing on longer time periods, our paper strongly suggests a stable long-run money demand in China.
Journal: Emerging Markets Finance and Trade
Pages: 145-163
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1643317
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1643317
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Template-Type: ReDIF-Article 1.0
Author-Name: Chao Liu
Author-X-Name-First: Chao
Author-X-Name-Last: Liu
Author-Name: Ruixue Zhang
Author-X-Name-First: Ruixue
Author-X-Name-Last: Zhang
Title: Dependence and Risk Spillover Effect of China’s Exchange Market
Abstract: 
 This study employs the GARCH-Copula-CoVaR and spillover index models to investigate the dependence and risk spillover effects among China’s financial markets before and after the “811” exchange rate reform. The findings show that the gold market is the largest risk spillover recipient to the exchange market and has the strongest dependence with the exchange market. The exchange market is greatly affected by the spillover effects of other financial markets, and the monetary market is the main source of these risk spillovers effects. The external spillover effects of the exchange market were significantly enhanced after the reform, but its influences on other financial markets are still weak. The exchange rate reform caused the RMB exchange rate to depreciate sharply and fluctuate violently within a period of time, but it did not have a significant impact on the spillover effect trends of the exchange market in the long term.
Journal: Emerging Markets Finance and Trade
Pages: 214-243
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1699052
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1699052
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Template-Type: ReDIF-Article 1.0
Author-Name: Haiqing Hu
Author-X-Name-First: Haiqing
Author-X-Name-Last: Hu
Author-Name: Di Chen
Author-X-Name-First: Di
Author-X-Name-Last: Chen
Author-Name: Qiang Fu
Author-X-Name-First: Qiang
Author-X-Name-Last: Fu
Title: Does a Government Response to COVID-19 Hurt the Stock Price of an Energy Enterprise?
Abstract: 
 This research examines the shock of a government response to COVID-19 on the stock prices of 30 international energy enterprises spanning from January 1, 2020 to December 31, 2020. Overall, the empirical results denote that a government response stringency index, containment and health index, and economic support index all have a statistically significant negative impact on their stock prices. The negative impact from the containment and health index is especially the greatest, implying that a government’s stringent responses have great negative effect on the stock prices of most energy enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 1-10
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1911803
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1911803
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Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Nogales
Author-X-Name-First: Ricardo
Author-X-Name-Last: Nogales
Author-Name: Pamela Cordova
Author-X-Name-First: Pamela
Author-X-Name-Last: Cordova
Title: On the Advantages and Feasibility of Weather Index-Based Crop Insurance Schemes in Bolivia
Abstract: 
 Weather index-based insurance schemes are gaining attention as instruments for agricultural risk management. A key difference between these insurance schemes and more traditional ones is that the former can cope more effectively with adverse selection and moral hazard issues, yielding less expensive insurance contracts. In this article, we argue that index-based crop insurance schemes can be particularly promising in Bolivia and discuss the essential technical requirements and methodological steps for igniting supply of these policies. Using daily rainfall data between 1967 and 2017, pilot insurance schemes for wheat and potato crops are developed for Anzaldo, one of Bolivia’s poorest agricultural-dependent rural municipalities. These policies are compared with the country’s current public fully subsidized crop-insurance program, which builds on traditional schemes. We prove that index-based schemes that offer variable reimbursing according to climate-induced crop damage allow to manage similar climate risks with significantly lower policy prices.
Journal: Emerging Markets Finance and Trade
Pages: 195-213
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1677226
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1677226
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Template-Type: ReDIF-Article 1.0
Author-Name: Jingxi Wang
Author-X-Name-First: Jingxi
Author-X-Name-Last: Wang
Author-Name: Lei Zhou
Author-X-Name-First: Lei
Author-X-Name-Last: Zhou
Author-Name: Shurong Yao
Author-X-Name-First: Shurong
Author-X-Name-Last: Yao
Title: The Impact of the Nutrition Improvement Program on Children’s Health in Rural Areas: Evidence from China
Abstract: 
 This study evaluated the nutrition improvement program (NIP) in China. A difference-in-differences model with propensity score matching was employed to diagnose the explicit effects of the NIP on the physical and mental health of students in rural areas, followed by a sensitivity analysis to validate the reliability of the results. Our findings suggest that the NIP improved the physical and mental health of students under compulsory education in rural areas. It was also found that NIP was more beneficial to students with financial difficulties, left-behind children in rural areas and children with one or more siblings. Based on our results, we suggest the government to implement NIP to narrow the health gap between urban and rural children.
Journal: Emerging Markets Finance and Trade
Pages: 267-289
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1706047
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1706047
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:1:p:267-289




Template-Type: ReDIF-Article 1.0
Author-Name: Pin Wang
Author-X-Name-First: Pin
Author-X-Name-Last: Wang
Author-Name: Linlin Xie
Author-X-Name-First: Linlin
Author-X-Name-Last: Xie
Author-Name: Di Wang
Author-X-Name-First: Di
Author-X-Name-Last: Wang
Title: Corporate Tax Integrity and the Market Reactions to Covid-19: Evidence from China
Abstract: 
 We compare the market reactions to the COVID-19 crisis of Chinese listed firms with high versus low tax integrity. We show negative market reactions to the crisis across all firms, which is consistent with investors expecting COVID-19 to negatively impact firms’ future prospects. Using tax-paying credit rating as a proxy for tax integrity, we find that the negative reaction to the COVID-19 crisis is significantly less for firms with high tax integrity, consistent with investors expecting tax integrity to benefit firms during the crisis. In contrast, we find no difference in the negative market reactions to the 2003 SARS outbreak for the same set of firms. As there was no tax credit rating disclosure in 2003, this serves as a control for the treatment effect. Overall, our results suggest that investors expect corporate tax integrity to mitigate the negative effect of exogenous crises such as COVID-19 on firms.
Journal: Emerging Markets Finance and Trade
Pages: 24-34
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1941861
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1941861
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoming Zhang
Author-X-Name-First: Xiaoming
Author-X-Name-Last: Zhang
Author-Name: Hegang Zhou
Author-X-Name-First: Hegang
Author-X-Name-Last: Zhou
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: Systemic Risk of China’s Financial Industry during the Spread of the COVID-19 Epidemic and the Breakdown of Crude Oil Negotiation
Abstract: 
 This research first adopts three indicators to measure the systemic risk of different financial industries in China. Second, we employ the Time Varying Parameter-Stochastic Volatility-Vector Auto Regression (TVP-SV-VAR) model to investigate the time-varying relationship among COVID-19 epidemic, crude oil price, and financial systemic risk. The results herein not only help us grasp the current level of systematic risk in China, but also can assist at improving the early warning risk indicators and enhance the risk management system. Lastly, this research can also help investors to make reasonable asset planning.
Journal: Emerging Markets Finance and Trade
Pages: 56-69
Issue: 1
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1968824
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1968824
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:1:p:56-69




Template-Type: ReDIF-Article 1.0
Author-Name: Fan Yang
Author-X-Name-First: Fan
Author-X-Name-Last: Yang
Author-Name: Jiayu Huang
Author-X-Name-First: Jiayu
Author-X-Name-Last: Huang
Author-Name: Yongbin Cai
Author-X-Name-First: Yongbin
Author-X-Name-Last: Cai
Title: Tone of Textual Information in Annual Reports and Regulatory Inquiry Letters: Data from China
Abstract: 
 This paper examines the impact of the tone used in the annual reports of listed companies on the probability of regulatory inquiries from 2014 to 2019. The empirical results verify that the more positive tone of the annual report, the more it can exert a psychological framing effect, which makes the regulator less likely to issue an annual report inquiry letter. Further analysis shows that this impact that the tone of annual reports has on the probability of a regulatory inquiry is significantly weakened when the company has irregularities or has been issued a modified audit opinion by the auditor. Overall, the results provide the basis for the government to regulate the information disclosure of the annual reports.
Journal: Emerging Markets Finance and Trade
Pages: 417-427
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1903870
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1903870
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:2:p:417-427




Template-Type: ReDIF-Article 1.0
Author-Name: Chen Weng
Author-X-Name-First: Chen
Author-X-Name-Last: Weng
Author-Name: Hui Wang
Author-X-Name-First: Hui
Author-X-Name-Last: Wang
Author-Name: Nico Heerink
Author-X-Name-First: Nico
Author-X-Name-Last: Heerink
Author-Name: Marrit van den Berg
Author-X-Name-First: Marrit
Author-X-Name-Last: van den Berg
Title: Credit Constraints and Rural Households’ Entrepreneurial Performance in China
Abstract: 
 Based on data from the China Household Finance Survey, this article investigates the relationship between formal sector credit constraints and rural households’ entrepreneurial performance. Using an endogenous switching regression model, we find that credit-constrained entrepreneurial households’ profits are significantly and positively affected by credit access, which is measured by total formal and informal production loans owed. With an extra RMB 10,000 in credit, constrained entrepreneurial households’ average profits would be raised from RMB 10,604 to RMB 10,732 (i.e. by 1.2%). Entrepreneurial profits of households that are not credit-constrained do not depend on loan sizes. Based on our findings, we stress the importance of the development of new-type rural financial institutions, proper compensations for expropriated land, and stimulating savings and investments in different types of assets for improving the performance of rural entrepreneurs.
Journal: Emerging Markets Finance and Trade
Pages: 570-583
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2020.1788538
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1788538
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Template-Type: ReDIF-Article 1.0
Author-Name: Kenan Ilarslan
Author-X-Name-First: Kenan
Author-X-Name-Last: Ilarslan
Author-Name: Munevvere Yildiz
Author-X-Name-First: Munevvere
Author-X-Name-Last: Yildiz
Title: The Effects of Terrorism and Economic Indicators on Bank Loans to the Private Sector: Evidence from Developing Countries
Abstract: 
 Herein, factors affecting domestic bank loans to the private sector are determined within the context of ten developing countries. The relationship between bank loans to the private sector and the gross domestic product (GDP), interest rates, exchange rates, and terrorist incidents is investigated using the autoregressive distributed lag bounds test and cointegration regression models. According to the results obtained from the models developed by applying annual data from 1970–2018, a positive relationship between domestic bank loans to the private sector, which is the endogenous variable, and the GDP, and a negative relationship with interest rates, terrorist incidents, and exchange rates are observed. Particularly in countries where terrorism is intense, investors giving up or postponing investments owing to the deterioration of the investment climate decreases loans to the private sector. Accordingly, terrorism should be considered and managed as an operational risk factor in the banking sector. We also find empirical evidence that capital control practices in some countries decrease bank loans to the private sector.
Journal: Emerging Markets Finance and Trade
Pages: 329-341
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1952070
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1952070
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:2:p:329-341




Template-Type: ReDIF-Article 1.0
Author-Name: Rui Fan
Author-X-Name-First: Rui
Author-X-Name-Last: Fan
Author-Name: Ruoyu Weng
Author-X-Name-First: Ruoyu
Author-X-Name-Last: Weng
Author-Name: Jianping Pan
Author-X-Name-First: Jianping
Author-X-Name-Last: Pan
Title: How Property Rights Affect Firm’s Labor Investment Efficiency? Evidence from a Property Law Enactment in China
Abstract: 
 The previous studies mainly focus on how property rights affect firm’s physical investment. Although the scale of labor investment is larger than physical investment, little is known about how property rights affect firm’s labor investment decision. In this paper, we exploit a property law enactment as an exogenous shock and use a difference-in-differences methodology with all the Chinese A-share firms from 2004 to 2010. We find that strong property rights enhance firm’s labor investment efficiency and the efficiency improvement derives from less underinvestment in labor. The effect of property rights on labor investment efficiency is more pronounced when firms face more government intervention and firms rely more on external finance before the enactment of property law. The results suggest that legal rights protection channel and financing convenience channel are potential mechanisms through which property rights influence labor investment efficiency. Overall, our results indicate that property rights play an important role in encouraging firms to invest in intangible assets and reshaping firm’s investment patterns.
Journal: Emerging Markets Finance and Trade
Pages: 381-397
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1987215
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1987215
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:2:p:381-397




Template-Type: ReDIF-Article 1.0
Author-Name: Xin Wang
Author-X-Name-First: Xin
Author-X-Name-Last: Wang
Author-Name: Jiacai Xiong
Author-X-Name-First: Jiacai
Author-X-Name-Last: Xiong
Author-Name: Jitao Ou
Author-X-Name-First: Jitao
Author-X-Name-Last: Ou
Title: Does Share Pledging Affect Management Earnings Forecasts?
Abstract: 
 We examine the impact of share pledging (SP) on management earnings forecasts (MEFs). Our findings suggest that an SP firm has more optimistic MEFs than a non-SP firm, suggesting that SP contributes to more optimistically biased MEFs. In addition, an SP firm is more likely to provide less specific MEFs than a non-SP firm. The results are robust to alternative measures of SP and MEFs and accounting for endogeneity. Additional analysis suggests that when the controlling shareholder has a high risk of losing control rights (the firm is located in a high marketization region or the stock has a high crash risk) or the corporate governance is poor, the impact of SP on optimistic MEFs and vague MEFs is magnified.
Journal: Emerging Markets Finance and Trade
Pages: 512-524
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2020.1776695
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1776695
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Template-Type: ReDIF-Article 1.0
Author-Name: Bing Wang
Author-X-Name-First: Bing
Author-X-Name-Last: Wang
Author-Name: Yuedong Li
Author-X-Name-First: Yuedong
Author-X-Name-Last: Li
Author-Name: Wenshuang Xuan
Author-X-Name-First: Wenshuang
Author-X-Name-Last: Xuan
Author-Name: Yihan Wang
Author-X-Name-First: Yihan
Author-X-Name-Last: Wang
Title: Internal Control, Political Connection, and Executive Corruption
Abstract: 
 This paper examines the effect of internal control with a focus on implicit corruption of executives. Using the data from Chinese listed companies since 2010, we find that internal control plays a significant role for preventing corruption, but it is weakened if executive has political connections. These political connections tend to be representative-type rather than official-type. Our findings also suggest that compared with state-owned enterprises, internal control mechanisms in non-state-owned ones are more likely to be weakened when executives with political connection. Furthermore, we provide evidence that as executives’ political connections getting tighter, internal control which can prevent corruption becomes less effective.
Journal: Emerging Markets Finance and Trade
Pages: 311-328
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1952069
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1952069
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Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel Augusto de Carvalho
Author-X-Name-First: Gabriel Augusto
Author-X-Name-Last: de Carvalho
Author-Name: Hudson Fernandes Amaral
Author-X-Name-First: Hudson Fernandes
Author-X-Name-Last: Amaral
Author-Name: Juliano Lima Pinheiro
Author-X-Name-First: Juliano Lima
Author-X-Name-Last: Pinheiro
Author-Name: Laíse Ferraz Correia
Author-X-Name-First: Laíse Ferraz
Author-X-Name-Last: Correia
Title: Pricing of Liquidity Risk: New Evidence from the Latin American Emerging Stock Markets
Abstract: 
 This paper aims to analyze whether the liquidity risk is priced in Latin-American emerging stock markets. For that, we test the performance of the liquidity augmented version of Fama-French three and five factor models and Carhart four factor model since there is not yet a consensus about their suitability for these markets. Two versions of a liquidity factor were constructed based on two proxies that consider different dimensions of liquidity and are more appropriate for low frequency data. The GRS statistics showed Latin American average returns are better explained by the liquidity augmented Fama-French five-factor model. When estimated by GMM-IVd, due to the possible endogenous problems caused by liquidity, the results of the models did not significantly change. The results were robust to the January Effect. Furthermore, when the sample period was divided into two subperiods, both were statistically significant, although the explanatory power was greater in the second subperiod.
Journal: Emerging Markets Finance and Trade
Pages: 398-416
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1991184
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1991184
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Template-Type: ReDIF-Article 1.0
Author-Name: Jia Luo
Author-X-Name-First: Jia
Author-X-Name-Last: Luo
Author-Name: Li Wang
Author-X-Name-First: Li
Author-X-Name-Last: Wang
Title: Does Managerial Foreign Experience Deter Corporate Fraud
Abstract: 
 We explore how managers with foreign experience affect corporate fraud in China. By employing a bivariate probit model with partial observability, we find that returnee managers significantly reduce the incidence of corporate fraud, and increase the probability of being detected, dependent on the given fraud. Improved corporate information environment may mainly drive our results. Furthermore, the impact of returnee managers on fraud deterrence also varies according to the different nature of foreign managerial experience, positions of returnee managers, and types of corporate frauds. Overall, we offer new evidence that returnee managers have an increased awareness of corporate fraud.
Journal: Emerging Markets Finance and Trade
Pages: 342-364
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1973424
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1973424
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Template-Type: ReDIF-Article 1.0
Author-Name: Guojin Chen
Author-X-Name-First: Guojin
Author-X-Name-Last: Chen
Author-Name: Yanzhen Liu
Author-X-Name-First: Yanzhen
Author-X-Name-Last: Liu
Author-Name: Yu Zhang
Author-X-Name-First: Yu
Author-X-Name-Last: Zhang
Title: Systemic Risk Measures and Macroeconomy Forecasting: Based on FQGLS Estimation with Structural Break
Abstract: 
 In this article, we study the forecasting power of 12 different systemic risk measures on the macroeconomic shocks in China. We employ the FQGLS estimation with structural break. The violation of classical assumptions is detected, and the significant difference between OLS and FQGLS estimations further highlights the importance of model specification. The combined forecasts significantly outperform the historical mean in out-of-sample predictions, although most of the individual forecasts cannot. That is, the macroeconomic shock is predictable by the systemic risk measures, but the noise overwhelms the signal coming from real systemic risk.
Journal: Emerging Markets Finance and Trade
Pages: 584-600
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2020.1807323
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1807323
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Template-Type: ReDIF-Article 1.0
Author-Name: Xuemei Zhou
Author-X-Name-First: Xuemei
Author-X-Name-Last: Zhou
Author-Name: Qiang Liu
Author-X-Name-First: Qiang
Author-X-Name-Last: Liu
Author-Name: Shuxin Guo
Author-X-Name-First: Shuxin
Author-X-Name-Last: Guo
Title: The 52-week High Momentum Strategy and Economic Policy Uncertainty: Evidence from China
Abstract: 
 This is the first study to examine the 52-week high momentum strategy that takes economic policy uncertainty (EPU) into account. Empirically, we find significant 52-week high momentum in China, the second-largest stock market in the world, and our findings confirm the results of the US. We hypothesize that anchoring biases could explain the 52-week high momentum and generate significant momentum profits in low EPU periods. The empirical results show strong 52-week high momentum in low EPU periods; there is virtually no momentum when EPU is high, which supports our prediction. Further investigations show that there are no long-run reversals for the 52-week high momentum, and the negative impact of EPU on the 52-week high momentum decreases and eventually vanishes over the long term. All evidence supports the hypothesis that the 52-week high momentum is attributed to anchoring biases, especially when we consider EPU.
Journal: Emerging Markets Finance and Trade
Pages: 428-440
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1904880
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1904880
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Template-Type: ReDIF-Article 1.0
Author-Name: Lean Yu
Author-X-Name-First: Lean
Author-X-Name-Last: Yu
Author-Name: Rongtian Zhou
Author-X-Name-First: Rongtian
Author-X-Name-Last: Zhou
Author-Name: Rongda Chen
Author-X-Name-First: Rongda
Author-X-Name-Last: Chen
Author-Name: Kin Keung Lai
Author-X-Name-First: Kin Keung
Author-X-Name-Last: Lai
Title: Missing Data Preprocessing in Credit Classification: One-Hot Encoding or Imputation?
Abstract: 
 Missing data has become an increasingly serious problem in credit risk classification. A one-hot encoding-based data preprocessing method is proposed to solve the missing data problem in credit classification. In this paradigm, the proposed missing-data preprocessing method is first used to deal with missing values to fill in the incomplete dataset. Then the classification and regression tree (CART) model is applied on the completed dataset to measure performances of different preprocessing methods. The experimental results indicate that the proposed one-hot encoding method performs the best when the missing rate is high. When missing rate is low, random sample (RS) imputation method performs better though it entails a greater computational cost than other imputation methods listed in this study. In particular, for high-missing-rate coupled with data-imbalance issue, the proposed one-hot encoding based imputation method shows not only high accuracy, but also great robustness and needs less of computational time.
Journal: Emerging Markets Finance and Trade
Pages: 472-482
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2020.1825935
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1825935
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Template-Type: ReDIF-Article 1.0
Author-Name: Chuanjian Luo
Author-X-Name-First: Chuanjian
Author-X-Name-Last: Luo
Author-Name: Ying Luo
Author-X-Name-First: Ying
Author-X-Name-Last: Luo
Author-Name: Wenhao Ma
Author-X-Name-First: Wenhao
Author-X-Name-Last: Ma
Author-Name: Jie Gao
Author-X-Name-First: Jie
Author-X-Name-Last: Gao
Title: Third Party Environmental Disclosure and Firm’s Green Innovation: Evidence from a Natural Experiment in China
Abstract: 
 This study examines whether third party environmental disclosure affect green innovation at the firm-level. We find that environmental disclosure promotes Chinese companies to carry out green innovations. We further demonstrate that environmental disclosure has a long-term positive impact on green innovation of companies. Our findings are robust to alternative measures and different model specifications. In addition, we show that the relationship between environmental disclosure and green innovation of companies is moderated by the stakeholder attention, company’s location, company’s ownership, company’s industry and financing constraints. Overall, our results provide clear policy implications by revealing that third party environmental disclosure can be used as a substitute for environmental regulations at this stage.
Journal: Emerging Markets Finance and Trade
Pages: 365-380
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1987214
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1987214
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Template-Type: ReDIF-Article 1.0
Author-Name: Liang Tang
Author-X-Name-First: Liang
Author-X-Name-Last: Tang
Author-Name: Yiyang Huang
Author-X-Name-First: Yiyang
Author-X-Name-Last: Huang
Author-Name: Jiali Liu
Author-X-Name-First: Jiali
Author-X-Name-Last: Liu
Author-Name: Xiangyu Wan
Author-X-Name-First: Xiangyu
Author-X-Name-Last: Wan
Title: Cost Stickiness and Stock Price Crash Risk: Evidence from China
Abstract: 
 Sticky cost will enhance variety of firms’ performance and uncertainty, does sticky cost list company increase or decrease stock price crash risk? Due to information and expected concerns, investors will consider sticky cost as companies’ capacity and risk. We examine the effect of sticky cost on firms’ stock price crash risk and find a negative association. This association mainly exists in firms with younger CEO, high level of product market competition, lower finance risk, poor performance, state-owned and concentrated ownership. We conclude that the sticky cost reduces the stock price crash risk. The conclusions have theoretical and practical significance for corporate governance and corporate strategy.
Journal: Emerging Markets Finance and Trade
Pages: 544-569
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2020.1787148
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1787148
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Template-Type: ReDIF-Article 1.0
Author-Name: Qing Liu
Author-X-Name-First: Qing
Author-X-Name-Last: Liu
Author-Name: Fei Pei
Author-X-Name-First: Fei
Author-X-Name-Last: Pei
Author-Name: Huaqing Wu
Author-X-Name-First: Huaqing
Author-X-Name-Last: Wu
Author-Name: Xianfeng Zhang
Author-X-Name-First: Xianfeng
Author-X-Name-Last: Zhang
Title: Trade Policy Uncertainty, Firm Heterogeneity and Export Mode
Abstract: 
 This paper develops a Melitz-style trade model to consider how trade policy uncertainty (TPU) affects the export mode of heterogeneous firms. With the reduction of TPU, firms are more likely to engage in ordinary exports, and the proportion of ordinary exports relative to processing exports increases. This effect is more pronounced for firms with medium productivity. Based on highly disaggregated product-level trade data and firm-level production data, this paper adopts econometric methods to empirically identify the impact of TPU on heterogeneous firms’ choice of export mode, which provides robust evidence for the prediction of the theoretical model. This paper also puts forward some policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 441-471
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1709170
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1709170
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Template-Type: ReDIF-Article 1.0
Author-Name: Qingzi Cao
Author-X-Name-First: Qingzi
Author-X-Name-Last: Cao
Author-Name: Hua Wang
Author-X-Name-First: Hua
Author-X-Name-Last: Wang
Author-Name: Lifang Cao
Author-X-Name-First: Lifang
Author-X-Name-Last: Cao
Title: “Business Tax to Value-added Tax” and Enterprise Innovation Output: Evidence from Listed Companies in China
Abstract: 
 This paper examined the impact of “Business Tax to Value-added Tax” on enterprises’ innovation output, substantive innovation and the related mechanism. We use a natural experiment involving China’s business tax changing to value-added tax (“BT to VAT”) and a mediating effect mechanism to identify any causality. The results reveal that “BT to VAT” reform has prompted enterprises to increase their innovation output and substantive innovation, and the level of R&D investment plays an intermediary role in the relationship between “BT to VAT” and the entire innovation output and the relationship between “BT to VAT” and the substantive innovation output of enterprises. Further analysis demonstrates that firms with different ownership types, in different industries and with different degrees of marketization respond differently to the “BT to VAT” policy. Our findings are only significant for non-state-owned enterprises, high-tech enterprises and enterprises in high-marketization degree area. This paper provides a theoretical and empirical basis for detailed analyses of the effects of “BT to VAT” policy, particularly the government’s subsequent improvement to the tax reform policy, to further stimulate enterprise investments in innovation as well as industrial upgrading.
Journal: Emerging Markets Finance and Trade
Pages: 301-310
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2021.1939671
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1939671
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Template-Type: ReDIF-Article 1.0
Author-Name: Yang Gao
Author-X-Name-First: Yang
Author-X-Name-Last: Gao
Author-Name: Wandi Zhao
Author-X-Name-First: Wandi
Author-X-Name-Last: Zhao
Author-Name: Mingjin Wang
Author-X-Name-First: Mingjin
Author-X-Name-Last: Wang
Title: The Comparison Study of Liquidity Measurements on the Chinese Stock Markets
Abstract: 
 The measurement of liquidity is the basis of research in market microstructure studies. Based on the intraday tick trading data on Chinese stock markets from 2009 to 2016, we run horseraces of monthly estimates of newly and widely employed low-frequency liquidity proxies in the literature against three types of bid-ask spread high-frequency benchmarks. The empirical results reveal that the closing percent quoted spread estimator has the smallest estimation error, and the FHT estimator has the highest correlation. Moreover, these two estimators win the majority of horseraces in terms of estimation error and correlation comparison with the high-frequency benchmarks. Meanwhile, we find that most liquidity estimators based on Roll’s model do not perform well. Because the performance metrics of estimation precision or correlation performance on related liquidity issues differ depending on the type of research, our study offers appropriate liquidity measures for different research purposes.
Journal: Emerging Markets Finance and Trade
Pages: 483-511
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2019.1709819
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1709819
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Template-Type: ReDIF-Article 1.0
Author-Name: Pengcheng Du
Author-X-Name-First: Pengcheng
Author-X-Name-Last: Du
Author-Name: Hua Cheng
Author-X-Name-First: Hua
Author-X-Name-Last: Cheng
Title: Banking Competition and Households’ Informal Financing: Evidence from China Household Finance Survey
Abstract: 
 This study explores the relationship between Chinese banking industry competition and Chinese households’ informal financing behavior. Using the China Household Finance Survey and bank branch data, this study uniquely provides insight on the so-called Chinese growth miracle, despite its underdeveloped formal financial system. Its results suggest that banking competition significantly impacts informal financing adoption, and that householders choose informal financing when they are formally financially constrained. This study has significant implications for policy makers as formal financing systems engage with the existing informal financial market, suggesting that policy makers should endeavor to balance and regulate this relationship.
Journal: Emerging Markets Finance and Trade
Pages: 525-543
Issue: 2
Volume: 58
Year: 2022
Month: 01
X-DOI: 10.1080/1540496X.2020.1784139
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1784139
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Template-Type: ReDIF-Article 1.0
Author-Name: Rakesh Padhan
Author-X-Name-First: Rakesh
Author-X-Name-Last: Padhan
Author-Name: K. P. Prabheesh
Author-X-Name-First: K. P.
Author-X-Name-Last: Prabheesh
Title: A Survey of Literature on Measurement of Financial Integration: Need, Challenges, and Classification
Abstract: 
 Through a survey of literature in the measurement of financial integration (FI), this study explores the historical footprints on the measurement of financial integration, key issues, and challenges. We document the evolution of measurements during 1980–2018 and extend the measurement classification with specific criteria associated with the measurements. Furthermore, this study identifies the strength and weaknesses of existing measurements and highlights the need and criteria for choosing an appropriate measure. Finally, our study concludes that as one of the pillars of globalization, appropriate quantification of FI is a major challenge and crucial for monitoring the level and effect of FI for an economy.
Journal: Emerging Markets Finance and Trade
Pages: 790-811
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2021.1911802
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1911802
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Template-Type: ReDIF-Article 1.0
Author-Name: Huayu Shen
Author-X-Name-First: Huayu
Author-X-Name-Last: Shen
Author-Name: Man Zhang
Author-X-Name-First: Man
Author-X-Name-Last: Zhang
Author-Name: Meisha Wang
Author-X-Name-First: Meisha
Author-X-Name-Last: Wang
Author-Name: Jun Zhang
Author-X-Name-First: Jun
Author-X-Name-Last: Zhang
Author-Name: Zilin Guo
Author-X-Name-First: Zilin
Author-X-Name-Last: Guo
Title: Does Teacher-Turned Businessmen Curb Accrual-Based Earning Management and Real Activity Manipulation
Abstract: 
 Using manually collected data in Chinese-listed firms from year 2008 to 2018, this paper studies that how does teacher-turned businessperson curb or improve accrual-based earning management and real activities manipulation. Results show that top management team (TMTs) with academic experience manage earning less through accruals and manipulating real operating activities. Further studies show that when firms with no-big4 auditors or less analysts tracking, TMTs with (out) foreign experience or political connection, the inhibition of academic experience on the earning management is more pronounced.
Journal: Emerging Markets Finance and Trade
Pages: 655-667
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1829586
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1829586
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Template-Type: ReDIF-Article 1.0
Author-Name: Xuemei Liu
Author-X-Name-First: Xuemei
Author-X-Name-Last: Liu
Author-Name: Zi Nie
Author-X-Name-First: Zi
Author-X-Name-Last: Nie
Author-Name: Bingcheng Li
Author-X-Name-First: Bingcheng
Author-X-Name-Last: Li
Title: Financial Mismatch and Default Risk: Evidence from Chinese Nonfinancial Listed Private Enterprises
Abstract: 
 Using China’s nonfinancial listed private enterprises as a sample, we discuss the impact of financial mismatch on default risk from the perspective of political connections. The findings suggest that financial mismatch significantly increases the default risk of private enterprises, and political connections can effectively alleviate the default risk caused by financial mismatch. Further mechanism tests show that financial mismatch aggravates private enterprises’ financing constraints and increases their default risk. Our findings provide a reference for alleviating private enterprises’ dilemma of difficult and expensive financing and preventing or resolving the major financial risk of enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 852-862
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2021.1926235
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1926235
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:3:p:852-862




Template-Type: ReDIF-Article 1.0
Author-Name: Muze Peng
Author-X-Name-First: Muze
Author-X-Name-Last: Peng
Author-Name: Yating Zeng
Author-X-Name-First: Yating
Author-X-Name-Last: Zeng
Author-Name: David C. Yang
Author-X-Name-First: David C.
Author-X-Name-Last: Yang
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: The Role of Smog in Firm Valuation
Abstract: 
 This paper examines the influence of smog on firm earnings and information content using the data of Chinese A share listed firms and the air quality monitoring data released by the China National Environmental Monitoring Center from 2013 to 2017. The empirical results show that smog will not only negatively influence the earnings of local firms, but also result in a decrease in the information content of their earnings for market valuations. This paper further tests the role of firm size in the influence mechanism of smog on earnings and information content. The results reveal the significant moderating effect of firm size in the influence mechanism, which is reflected by large-scale firms being more likely to suffer earnings decrease and less likely to suffer earnings information content decrease due to smog, while small-scale firms tend to experience the opposite.
Journal: Emerging Markets Finance and Trade
Pages: 883-895
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2021.1929165
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1929165
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Template-Type: ReDIF-Article 1.0
Author-Name: Rongting Sun
Author-X-Name-First: Rongting
Author-X-Name-Last: Sun
Author-Name: Kaiqi Wang
Author-X-Name-First: Kaiqi
Author-X-Name-Last: Wang
Author-Name: Xiangjin Wang
Author-X-Name-First: Xiangjin
Author-X-Name-Last: Wang
Author-Name: Jie Zhang
Author-X-Name-First: Jie
Author-X-Name-Last: Zhang
Title: China’s Carbon Emission Trading Scheme and Firm Performance
Abstract: 
 We empirically investigate the effect of emissions trading scheme (ETS) on the corporate performance of Chinese listed firms from 2010 to 2016, treating China’s pilot ETS as a quasi-natural experiment. Our difference-in-differences analysis shows that the ETS is significantly correlated with corporate performance of high-energy-consuming firms. While the policy effect strengthens in the first few years and then weakens by 2016. This indicates that ETS cannot sustainably and steadily affect the corporate performance. Finally, we find that ETS has a stronger impact on the performance of high-energy-consuming firms in regions with high governmental intervention and an underdeveloped legal system.
Journal: Emerging Markets Finance and Trade
Pages: 837-851
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2021.1925535
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1925535
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Template-Type: ReDIF-Article 1.0
Author-Name: Youliang Yan
Author-X-Name-First: Youliang
Author-X-Name-Last: Yan
Author-Name: Xixiong Xu
Author-X-Name-First: Xixiong
Author-X-Name-Last: Xu
Title: Does Entrepreneur Invest More in Environmental Protection When Joining the Communist Party? Evidence from Chinese Private Firms
Abstract: 
 This study examines the role of affiliation with the ruling Communist Party in corporate environmental investment. Using a nationwide survey of Chinese private firms, we find that the Party membership of private entrepreneurs has a positive effect on corporate environmental investment, which suggests that Party status severs as a communication bridge and goal coordinator between the government and firms, thus encouraging them to participate more in environmental activities. Furthermore, this effect is more prominent when firms are located in regions with stricter legal supervision and lower levels of corruption, involve in a government-created business association and have better performance in profitability. Mechanism tests show that entrepreneurs with Party membership will promote firms to form a closer government-firm interaction and develop a better sense of social responsibility. Our findings highlight the entrepreneur’s Party status as an important driver of environmentally responsible corporate decision-making.
Journal: Emerging Markets Finance and Trade
Pages: 754-775
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1848814
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1848814
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Template-Type: ReDIF-Article 1.0
Author-Name: Yalin Gong
Author-X-Name-First: Yalin
Author-X-Name-Last: Gong
Author-Name: Li Lai
Author-X-Name-First: Li
Author-X-Name-Last: Lai
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Author-Name: Xiaolan Xia
Author-X-Name-First: Xiaolan
Author-X-Name-Last: Xia
Title: Is Supplementary Pension Beneficial to Human Capital Investment? Evidence from China
Abstract: 
 We examine the impact of a supplementary pension insurance program (SPIP) and short-term compensation on firm-level human capital investment using a sample of Chinese firms from 2007 to 2018. The findings suggest that both SPIP and short-term compensation have positive effects on human capital investment, and the magnitude of SPIP is stronger than that of short-term compensation. Further analysis suggests that the impact of SPIP on human capital investment in a firm is magnified when the firm has high-quality employees. Our findings are robust after accounting for potential endogeneity concerns. When compared with short-term compensation, SPIPs contribute more to establishing a long-term relationship between a firm and its employees, which stimulates human capital investment.
Journal: Emerging Markets Finance and Trade
Pages: 739-753
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1843426
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1843426
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Template-Type: ReDIF-Article 1.0
Author-Name: Kai Tang
Author-X-Name-First: Kai
Author-X-Name-Last: Tang
Author-Name: Hai-Jie Wang
Author-X-Name-First: Hai-Jie
Author-X-Name-Last: Wang
Author-Name: Ning Wang
Author-X-Name-First: Ning
Author-X-Name-Last: Wang
Title: The Relationship between the Airport Economy and Regional Development in China
Abstract: 
 It is of great significance to enhance the coupling relationship between the airport economy and regional development in order to promote regional coordinated growth. Based on data of 35 major airport cities in China from 2004 to 2018, this research empirically analyzes the coupling relationship between the airport economy and regional development and puts forward the concept of the leap path. The results show that the degree of coupling between the airport economy and regional development presents a fluctuating upward trend, but on the whole it is still at a low level of maladjustment decline. It decreases from east to west by region, and the eastern region has entered a form of coordinated development. According to the coupling state of regional development and airport economy, each city needs to explore its own suitable leap path. Governments at all levels should invest more public resources into airport economic zones and promote the integrated development of “port-industry-city-region.” At the same time, governments can more actively explore the construction of an Air Silk Road and an airport-type-free trade port.
Journal: Emerging Markets Finance and Trade
Pages: 812-822
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2021.1911804
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1911804
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Template-Type: ReDIF-Article 1.0
Author-Name: Luxiu Zhang
Author-X-Name-First: Luxiu
Author-X-Name-Last: Zhang
Author-Name: Ruirui Zhao
Author-X-Name-First: Ruirui
Author-X-Name-Last: Zhao
Author-Name: Bo Wang
Author-X-Name-First: Bo
Author-X-Name-Last: Wang
Author-Name: Haizhi Wang
Author-X-Name-First: Haizhi
Author-X-Name-Last: Wang
Author-Name: Tianyu Zhao
Author-X-Name-First: Tianyu
Author-X-Name-Last: Zhao
Title: Bankruptcy Exemption and Peer-to-Peer Lending
Abstract: 
 The effects of personal bankruptcy law on the activities of traditional credit markets have attracted significant interests in many studies. In this study, we focus on the online Peer-to-Peer (P2P) lending market, and empirically investigate whether and to what extent personal bankruptcy law may affect the borrowing and lending activities in the P2P market. We find that state bankruptcy exemptions are positively associated with the likelihood of loan rejections and loan defaults. In addition, we document that state bankruptcy exmptions are associated with higher interest rates, and this effect is more prominent for wealthier borrowers. We also report that state bankruptcy exemptions are associated with smaller loan amount, and this effect is more prominent for borrowers with lower levels of assets. Our results are consistent with theories that state bankruptcy exemptions redistribute credit to wealthier borrowers.
Journal: Emerging Markets Finance and Trade
Pages: 863-882
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2021.1926979
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1926979
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Template-Type: ReDIF-Article 1.0
Author-Name: Shu-Heng Chen
Author-X-Name-First: Shu-Heng
Author-X-Name-Last: Chen
Author-Name: Xia-Ping Cao
Author-X-Name-First: Xia-Ping
Author-X-Name-Last: Cao
Author-Name: Kun-Ben Lin
Author-X-Name-First: Kun-Ben
Author-X-Name-Last: Lin
Author-Name: Jing-Bo Huang
Author-X-Name-First: Jing-Bo
Author-X-Name-Last: Huang
Author-Name: Yubing Zhang
Author-X-Name-First: Yubing
Author-X-Name-Last: Zhang
Author-Name: Hung-Wen Lin
Author-X-Name-First: Hung-Wen
Author-X-Name-Last: Lin
Title: Financial Transparency, Media Coverage, and Momentum in China
Abstract: 
 This paper digests the influences of financial transparency and media coverage in the Chinese stock market. In China, media performs under a regulatory system and media information is regarded as the direction of news. In addition, the Chinese market is dominated by retail investors and financial information is always manipulated, so the reliability of financial information is quite intriguing. The effect of ostensible financial information on the stock market through the media hype is a crucial issue. We employ media and transparency to analyze over 3,000 stocks in China. First of all, the Chinese stock market is characterized by significantly negative momentum profit and thus exhibits price reversal. However, when high media coverage and high transparency jointly come into play, the significantly negative momentum profit turns to be significantly positive. This dramatic change alters the price reversal to be price momentum. By contrast, low media coverage and low transparency still result in price reversal.
Journal: Emerging Markets Finance and Trade
Pages: 625-637
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1825936
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1825936
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Template-Type: ReDIF-Article 1.0
Author-Name: En-Ze Wang
Author-X-Name-First: En-Ze
Author-X-Name-Last: Wang
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: The Dynamic Correlation between China’s Policy Uncertainty and the Crude Oil Market: A Time-varying Analysis
Abstract: 
 This research investigates the dynamic correlation between China’s policy uncertainty and the crude oil markets (i.e. domestic and international markets) using monthly time-series data from May 2003 to December 2018. To consider the non-linear and dynamic properties, we adopt the time-varying parameter structural vector autoregression model (TVP-SVAR) to estimate the dynamic correlations between the time series. By employing four categorical policy uncertainty indices, i.e. monetary policy uncertainty index (MYPU), fiscal policy uncertainty index (FLPU), exchange rate policy uncertainty index (EXER), and trade policy uncertainty index (TEPU), our results reveal that the correlation between China’s policy uncertainty and real crude oil returns is time-varying and non-linear. Specifically, the independence between policy uncertainty and oil returns varies more constantly and at a high degree while the time-varying interaction between policy uncertainty and global oil production (global economic activity) varies at a lower frequency and at a low level. Furthermore, regarding the associations between categorical policy uncertainty and global oil returns, the average correlation of EXER (negative) is the strongest one, followed by FLPU (negative), then MYPU (positive), and finally TEPU (negative). Moreover, it is noteworthy that WTI (Daqing) crude oil prices are utilized to increase the robustness of our conclusions. Finally, we generally confirm the dynamic and negative correlation between China’s geopolitical risk and crude oil returns. It is evidently clear from the results that investors should pay close attention to the policy uncertainty to avoid the adverse impact of specific policy uncertainty on crude oil returns.
Journal: Emerging Markets Finance and Trade
Pages: 692-709
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1837106
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1837106
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Template-Type: ReDIF-Article 1.0
Author-Name: Yun Liu
Author-X-Name-First: Yun
Author-X-Name-Last: Liu
Author-Name: Xianhang Qian
Author-X-Name-First: Xianhang
Author-X-Name-Last: Qian
Author-Name: Qian Wu
Author-X-Name-First: Qian
Author-X-Name-Last: Wu
Title: Officials’ Turnover, Facial Appearance and FDI: Evidence from China
Abstract: 
 Using the data of turnover of Chinese city-level Party secretaries and mayors over the period 2001–2016, this paper explores the impact of officials’ turnover on foreign direct investment (FDI) inflows. We further measure the facial attractiveness score of the new official according to their official photographs and investigate the role of facial appearance of official. The results indicate that turnover of a Party secretary does not show a significant impact on FDI inflows, but in the year of a mayor’s turnover, there are fewer FDI inflows and the effect is greater when the new mayor has a lower level of facial appearance. Moreover, the impact of mayors’ turnover and facial appearance only exists in regions with lower investor protection.
Journal: Emerging Markets Finance and Trade
Pages: 896-906
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2021.1887728
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1887728
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Template-Type: ReDIF-Article 1.0
Author-Name: Yi Wei
Author-X-Name-First: Yi
Author-X-Name-Last: Wei
Author-Name: Jianguo Chen
Author-X-Name-First: Jianguo
Author-X-Name-Last: Chen
Author-Name: Carolyn Wirth
Author-X-Name-First: Carolyn
Author-X-Name-Last: Wirth
Title: Tunnelling, Fraudulent Financial Statements and Regulation Effects: Chinese Evidence
Abstract: 
 This study investigates the impact of regulatory intervention on tunneling through inter-corporate loans in Chinese fraudulent firms. We find fraudulent firms have significantly higher tunneling through inter-corporate loans than matching firms, and suggest that controlling shareholders are motivated to delay the recognition of the ensuing loss in the financial statements to make it more difficult for auditors to detect tunneling. In 2006, new CSRC regulation introduced responsibility by board chairman to resolve tunneling issues while the two Chinese stock exchanges initiated a ‘name and shame’ of tunneling individuals and amounts tunneled through public media. We find that tunneling balances in a sample of fraudulent firms reduce significantly after the announcement of this strict anti-tunneling regulation. Relative to a matched sample, fraudulent firms experienced improved operating performance and higher abnormal returns following the imposition of the new anti-tunneling regulations. We also find that informal institutions, such as social trust play an important role in mitigating tunneling. Overall, our results suggest the means by which Chinese regulatory mechanisms have been effective in protecting minority shareholders from expropriation by controlling shareholders.
Journal: Emerging Markets Finance and Trade
Pages: 614-624
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1816462
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1816462
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Template-Type: ReDIF-Article 1.0
Author-Name: Jinyan Shi
Author-X-Name-First: Jinyan
Author-X-Name-Last: Shi
Author-Name: Conghui Yu
Author-X-Name-First: Conghui
Author-X-Name-Last: Yu
Author-Name: Yanxi Li
Author-X-Name-First: Yanxi
Author-X-Name-Last: Li
Title: Beyond Linear: The Relationship between Corporate Social Responsibility and Market Reactions to Cross-Border Mergers and Acquisitions
Abstract: 
 By combining the stakeholder theory and shareholder theory, this study examines whether corporate social responsibility (CSR) influences market reactions to cross-border mergers and acquisitions (M&A) announcements. This study employs a sample of cross-border M&A conducted by Chinese-listed companies from 2010 to 2018. We find that the impact of CSR on cumulative abnormal returns (CAR) around the announcement of cross-border M&A is not monotonically positive or negative demonstrated in previous literatures, but a nonlinear U-shaped relation. This finding shows that compared with moderate level of CSR, acquirers with extremely low or high levels of CSR realize higher CAR, indicating the complementarity of the two long competitive theories. The U-shaped relation remains across a three-step procedure significance test and several robustness tests. This study advances the debate concerning which theory best explains the effect of CSR on CAR theoretically and provides a possible explanation for the existing contradictory evidences empirically owing to ignoring the level of CSR.
Journal: Emerging Markets Finance and Trade
Pages: 638-654
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1829409
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1829409
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Template-Type: ReDIF-Article 1.0
Author-Name: Shujin Zhu
Author-X-Name-First: Shujin
Author-X-Name-Last: Zhu
Author-Name: Yiding Tang
Author-X-Name-First: Yiding
Author-X-Name-Last: Tang
Author-Name: Xingzhi Qiao
Author-X-Name-First: Xingzhi
Author-X-Name-Last: Qiao
Author-Name: Wanhai You
Author-X-Name-First: Wanhai
Author-X-Name-Last: You
Author-Name: Cheng Peng
Author-X-Name-First: Cheng
Author-X-Name-Last: Peng
Title: Spatial Effects of Participation in Global Value Chains on CO2 Emissions: A Global Spillover Perspective
Abstract: 
 Using balanced panel data of 62 countries (regions) from 1995 to 2011, we explore the linkage between a country’s participation in global value chains (GVC) and its carbon emissions using spatial panel econometric models. We find: First, positive spatial dependency does exist between countries. Second, forward and backward GVC participation has different spatial spillover effects, with the latter causing most of the spillovers. Third, regarding industry heterogeneity, the manufacturing sector generates a stronger spatial spillover than the service sector. High-tech manufacturing sub-industries show stronger spillovers, compared to low-tech sub-industries. Finally, we propose policy suggestions for international relations and environmental governance.
Journal: Emerging Markets Finance and Trade
Pages: 776-789
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2021.1911801
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1911801
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Template-Type: ReDIF-Article 1.0
Author-Name: Chuangxia Huang
Author-X-Name-First: Chuangxia
Author-X-Name-Last: Huang
Author-Name: Shigang Wen
Author-X-Name-First: Shigang
Author-X-Name-Last: Wen
Author-Name: Xin Yang
Author-X-Name-First: Xin
Author-X-Name-Last: Yang
Author-Name: Jinde Cao
Author-X-Name-First: Jinde
Author-X-Name-Last: Cao
Author-Name: Xiaoguang Yang
Author-X-Name-First: Xiaoguang
Author-X-Name-Last: Yang
Title: Measurement of Individual Investor Sentiment and Its Application: Evidence from Chinese Stock Message Board
Abstract: 
 This paper investigates individual investor sentiment in Chinese stock message board Guba Eastmoney and its relation to the market returns and volatility. Focusing on measuring the sentiment, we propose a novel algorithm Semantic Orientation from Laplace Smoothed Normalized Pointwise Mutual Information(SO-LNPMI). We show that: (i) comparing to traditional methods, SO-LNPMI has higher accuracy and better adaptive property of probability estimate; (ii) negative sentiment is negatively correlated with market returns, whereas positive sentiment does not have any statistically significant impact on market returns; (iii) positive(negative) sentiment is negatively(positively) correlated with market volatility. Our results survive a range of robustness tests.
Journal: Emerging Markets Finance and Trade
Pages: 681-691
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1835637
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1835637
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Template-Type: ReDIF-Article 1.0
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: Ying Wang
Author-X-Name-First: Ying
Author-X-Name-Last: Wang
Author-Name: Xiaotuo Qiao
Author-X-Name-First: Xiaotuo
Author-X-Name-Last: Qiao
Author-Name: Yuanjing Ge
Author-X-Name-First: Yuanjing
Author-X-Name-Last: Ge
Title: Do CEO Attributes Create Value in IPO Price Revision? Evidence from China
Abstract: 
 This study investigates the influence of chief executive officer (CEO) attributes on price revisions in initial public offerings (IPOs) in China. Using samples of 628 firms from the ChiNext Board and 555 firms from the Small and Medium-Size Enterprises Board, we find that political connections, social networks, media exposure, tenure, and salary ratio of these CEOs significantly affect price revisions. In addition, political connections have great value for issuing firms, and media exposure plays a monitoring role in IPO pricing. Further, politically connected CEOs prefer setting high offering prices, leading to underperformance in the long term.
Journal: Emerging Markets Finance and Trade
Pages: 727-738
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1841627
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1841627
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Template-Type: ReDIF-Article 1.0
Author-Name: Shaoling Chen
Author-X-Name-First: Shaoling
Author-X-Name-Last: Chen
Author-Name: Tianjue Liu
Author-X-Name-First: Tianjue
Author-X-Name-Last: Liu
Author-Name: Qing Peng
Author-X-Name-First: Qing
Author-X-Name-Last: Peng
Author-Name: Yu Zhao
Author-X-Name-First: Yu
Author-X-Name-Last: Zhao
Title: Manager Sentiment Bias and Stock Returns: Evidence from China
Abstract: 
 Using textual analysis of Chinese listed firms from 2004 to 2017, we examine the role that managers’ sentiment plays in financial disclosures and its impact on firms’ future stock returns. We distinguish manager sentiment as either signal or noise according to its consistency with firm earnings. We find that good signal sentiment positively impacts stock returns, whereas bad signal sentiment and noisy sentiment that reflects overconfidence negatively impact stock returns. Further analysis shows that external supervision, internal control, and managers’ expertise contribute to improving the information quality of both signal and noisy sentiments, and the enactment of earnings forecast policy helps strengthen the signaling impact of manager sentiment.
Journal: Emerging Markets Finance and Trade
Pages: 823-836
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2021.1918543
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1918543
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Template-Type: ReDIF-Article 1.0
Author-Name: Yantuan Yu
Author-X-Name-First: Yantuan
Author-X-Name-Last: Yu
Author-Name: Lulu Han
Author-X-Name-First: Lulu
Author-X-Name-Last: Han
Author-Name: Jie Wu
Author-X-Name-First: Jie
Author-X-Name-Last: Wu
Author-Name: Weidong Zhao
Author-X-Name-First: Weidong
Author-X-Name-Last: Zhao
Author-Name: Yun Zhang
Author-X-Name-First: Yun
Author-X-Name-Last: Zhang
Title: Green Growth Effects of High-Speed Rail in China: The Role of Industrial Transformation
Abstract: 
 This paper presents the first empirical attempt to examine the impacts of high-speed rail (HSR) and industrial transformation on China’s ecological efficiency (EE), using a data set of 251 cities during 2003–2016. Results show that instituting HSR is beneficial to green growth; a one-point increase in HSR leads to approximately 2% growth in EE. The potential mechanism test indicates that HSR significantly improved EE through industrial transformation, and did so economically. We also found that HSR strengthened impacts of static and dynamic industrial transformation on EE. However, the productivity growth effect of HSR was not statistically significant.
Journal: Emerging Markets Finance and Trade
Pages: 668-680
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1833856
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1833856
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Template-Type: ReDIF-Article 1.0
Author-Name: Pragyanrani Behera
Author-X-Name-First: Pragyanrani
Author-X-Name-Last: Behera
Author-Name: Bikash Ranjan Mishra
Author-X-Name-First: Bikash Ranjan
Author-X-Name-Last: Mishra
Title: Determinants of Bilateral FDI Positions: Empirical Insights from ECs Using Model Averaging Techniques
Abstract: 
 Although FDI determinants have been broadly studied, there is a lack of consensus on theoretical and empirical analysis from the perspective of emerging countries (ECs) as sources. However, this study aims to address the model uncertainty and non-universality in the empirical findings by performing two model averaging techniques as Bayesian Model Averaging (BMA) and Weighted Average Least Squares (WALS) approach. Using a bilateral FDI position dataset for the period 2009–2016, we investigate the robust FDI determinants of 24 ECs in developed, emerging, and other developing countries both at the source and destination level separately. Our findings reveal that the estimated FDI determinants are remarkably heterogeneous with change in the destination. Accordingly, the policymakers of ECs frame somewhat different strategies to channelize their FDI positions.
Journal: Emerging Markets Finance and Trade
Pages: 710-726
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1837107
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1837107
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Template-Type: ReDIF-Article 1.0
Author-Name: Kejing Chen
Author-X-Name-First: Kejing
Author-X-Name-Last: Chen
Author-Name: Wenqi Guo
Author-X-Name-First: Wenqi
Author-X-Name-Last: Guo
Author-Name: Yanling Kang
Author-X-Name-First: Yanling
Author-X-Name-Last: Kang
Author-Name: Jing Wang
Author-X-Name-First: Jing
Author-X-Name-Last: Wang
Title: Does the Deleveraging Policy Increase the Risk of Corporate Debt Default: Evidence from China
Abstract: 
 This article investigates whether a deleveraging policy influences the risk of corporate debt default. We provide evidence that the deleveraging policy can increase the risk of corporate debt default by reducing the supply of credit funds and increasing the cost of debt financing, and the conclusions remain robust after controlling for endogeneity problems. Furthermore, we find that the impact of the deleveraging policy on corporate debt default risk is more significant for enterprises with poor operating performance, nonstate-ownership, backward capacity, and developed shadow banking areas. Those findings provide a theoretical basis for the macrodecision transition from deleveraging to stabilizing leverage.
Journal: Emerging Markets Finance and Trade
Pages: 601-613
Issue: 3
Volume: 58
Year: 2022
Month: 02
X-DOI: 10.1080/1540496X.2020.1809376
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1809376
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:3:p:601-613




Template-Type: ReDIF-Article 1.0
Author-Name: Bai Yunxia
Author-X-Name-First: Bai
Author-X-Name-Last: Yunxia
Author-Name: Muqing Qiu
Author-X-Name-First: Muqing
Author-X-Name-Last: Qiu
Title: Official Visit, Bank Credit and Maturity Mismatch: Evidence from Chinese Listed Firms
Abstract: 
 It is becoming increasingly common in recent years that Chinese government officials visit companies on site and the news about this spread widely on the Internet. Official visits can bring various benefits to companies in China, where the government still plays an important role in allocating economic resources, including bank credit. Based on the data of officials’ visits to Chinese listed firms during 2006–2019, this paper finds that firms’ access to short-term bank loans increases significantly after officials’ visits, which, in turn, significantly enhance the degree of maturity mismatch. Furthermore, the paper finds that the stock market reacts negatively to the maturity mismatch. However, firms’ stock return is discounted less for maturity mismatch both in short and long term when firms are visited by officials. The findings in this paper are helpful in profoundly understanding China’s economic system and Chinese government–enterprise relationship.
Journal: Emerging Markets Finance and Trade
Pages: 4361-4379
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1810013
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1810013
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Template-Type: ReDIF-Article 1.0
Author-Name: Afees A. Salisu
Author-X-Name-First: Afees A.
Author-X-Name-Last: Salisu
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: How Do Housing Returns in Emerging Countries Respond to Oil Shocks? A MIDAS Touch
Abstract: 
 In this study, we examine the response of housing returns in China, India and Russia to different oil shocks, generated from a more accurate estimation approach. Given the available data for the relevant variables, the MIDAS approach which helps circumvent aggregation problem in the estimation process is employed. We also extend the MIDAS framework to account for nonlinearities in the model. Expectedly, the housing returns of the countries considered respond differently to the variants of oil shocks. More importantly, the result indicates that housing returns in Russia serve as a good hedge against oil price risk while housing returns in China and India do not. We also find that modeling with the MIDAS framework offers better predictability than other variants with uniform frequency.
Journal: Emerging Markets Finance and Trade
Pages: 4286-4311
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1807322
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1807322
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Template-Type: ReDIF-Article 1.0
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Shan-Ju Ho
Author-X-Name-First: Shan-Ju
Author-X-Name-Last: Ho
Title: Family Management and Corporate Bond Spreads: Do Foreign and Government Ownerships Matter?
Abstract: 
 This research hand-collects data on family CEOs of family-controlled firms (named family management) to investigate the relation between family management and corporate bond spreads in Taiwan with a sample of 1,660 firms for the period 1996–2015. We show new evidence on the impact of financial constraints and CEOs’ characteristics on corporate bond spreads. Results find an impact of family management on increasing corporate bond spreads after considering firms’ and bonds’ characteristics. Moreover, the effect of family management on higher bond spreads is offset by firms under foreign or government ownership, as interacting family management with such ownership effect would give outside investors more assurance and protect minority shareholders from exploitation. Finally, firms’ financial constraints and CEOs’ weak characteristics lead to a detrimental impact of family management on bond spreads.
Journal: Emerging Markets Finance and Trade
Pages: 4448-4460
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1822811
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1822811
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:15:p:4448-4460




Template-Type: ReDIF-Article 1.0
Author-Name: Rong Xing
Author-X-Name-First: Rong
Author-X-Name-Last: Xing
Author-Name: Qing Li
Author-X-Name-First: Qing
Author-X-Name-Last: Li
Author-Name: Jingmei Zhao
Author-X-Name-First: Jingmei
Author-X-Name-Last: Zhao
Author-Name: Xiaoqing Xu
Author-X-Name-First: Xiaoqing
Author-X-Name-Last: Xu
Title: Media-based Corporate Network and Its Effects on Stock Market
Abstract: 
 We study the comoving patterns of relevant stocks in terms of media co-exposure in both normal and extreme market periods. For this purpose, we build a media-based corporate network in terms of 17,685 pieces of news articles released in 2014 that mentioned at least two stocks listed on the CSI 300 Index. Each node in the network represents a listed company. The edge weight between two nodes is determined by the number of news articles that mention these two firms. We find that the comoving patterns, which were discovered by the media co-exposure, of relevant stocks are stable in both normal and crisis periods. The stock performance of one listed firm is affected by its neighboring firms in the proposed media-based corporate network. These results are consistent with the theoretical models of noise and liquidity traders.
Journal: Emerging Markets Finance and Trade
Pages: 4211-4236
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2019.1695597
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695597
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Template-Type: ReDIF-Article 1.0
Author-Name: Sifei Li
Author-X-Name-First: Sifei
Author-X-Name-Last: Li
Author-Name: Feng Cao
Author-X-Name-First: Feng
Author-X-Name-Last: Cao
Author-Name: Jian Sun
Author-X-Name-First: Jian
Author-X-Name-Last: Sun
Author-Name: Qianqian Hu
Author-X-Name-First: Qianqian
Author-X-Name-Last: Hu
Title: Executive Political Connections, Information Disclosure Incentives, and Stock Price Crash Risk: Evidence from Chinese Non-State-Owned Enterprises
Abstract: 
 This paper examines whether and how executives’ political connections affect their incentives to withhold bad news, measured by the stock price crash risk. We find that political connections are negatively associated with the stock price crash risk. Moreover, we show that political connections reduce firms’ financial constraints and encourage firms to disclose more bad news to compete for government subsidies, which lowers managers’ incentives to hide bad news. We also find that the negative relationship between political connections and crash risk varies with external institutions. Our results are robust to numerous robustness tests.
Journal: Emerging Markets Finance and Trade
Pages: 4398-4407
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1816460
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1816460
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Template-Type: ReDIF-Article 1.0
Author-Name: Atilla Cifter
Author-X-Name-First: Atilla
Author-X-Name-Last: Cifter
Author-Name: Gokhan H. Akay
Author-X-Name-First: Gokhan H.
Author-X-Name-Last: Akay
Author-Name: F. İrem Doğan
Author-X-Name-First: F. İrem
Author-X-Name-Last: Doğan
Title: Oil Prices and Stock Returns in the MENA Countries: A Firm-level Data Analysis
Abstract: 
 This article analyzes the effect of oil prices on real stock returns in the MENA countries. We use a panel of stock indexes from nine MENA countries: Saudi Arabia, Kuwait, Qatar, Oman, Egypt, Tunisia, Israel, Jordan, and Morocco. We employ extended version of the arbitrage pricing theory by using the linear and nonlinear panel autoregressive distributed lag (ARDL) models, and the data consist of a balanced panel of 339 firms during the period 2005–2015. The results indicate that oil prices asymmetrically affect real stock returns in the short- and the long run, as well as at the industry levels. These results highlight the importance of asymmetric effect between macroeconomic factors and stock returns.
Journal: Emerging Markets Finance and Trade
Pages: 4350-4360
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1809374
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1809374
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Template-Type: ReDIF-Article 1.0
Author-Name: João Frois Caldeira
Author-X-Name-First: João
Author-X-Name-Last: Frois Caldeira
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Author-Name: Muhammad Tahir Suleman
Author-X-Name-First: Muhammad Tahir
Author-X-Name-Last: Suleman
Author-Name: Hudson S. Torrent
Author-X-Name-First: Hudson S.
Author-X-Name-Last: Torrent
Title: Forecasting the Term Structure of Interest Rates of the BRICS: Evidence from a Nonparametric Functional Data Analysis
Abstract: 
 In this article, we develop a nonparametric functional data analysis (NP-FDA) model to forecast the term-structure of Brazil, Russia, India, China and South Africa (BRICS). We use daily data over the period of January 1, 2010 to December 31, 2016. We find that, while it is in general difficult to beat the random-walk model in the shorter-horizons, at longer-runs our proposed NP-FDA approach outperforms not only the random-walk model, but also other popular competitors used in term-structure forecasting literature. In addition, the NP-FDA model is also found to produce economic gains, besides statistical gains, over the random-walk model. Our results have important implications for both policymakers aiming to stabilize the economy, and for optimal portfolio allocation decisions of financial market agents.
Journal: Emerging Markets Finance and Trade
Pages: 4312-4329
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1808458
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1808458
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiangyu Wei
Author-X-Name-First: Xiangyu
Author-X-Name-Last: Wei
Author-Name: Zhilong Xie
Author-X-Name-First: Zhilong
Author-X-Name-Last: Xie
Author-Name: Rui Cheng
Author-X-Name-First: Rui
Author-X-Name-Last: Cheng
Author-Name: Di Zhang
Author-X-Name-First: Di
Author-X-Name-Last: Zhang
Author-Name: Qing Li
Author-X-Name-First: Qing
Author-X-Name-Last: Li
Title: An Intelligent Learning and Ensembling Framework for Predicting Option Prices
Abstract: 
 Estimating option prices and implied volatilities are critical for option risk management and trading. Common strategies in previous studies have relied on parametric models, including the stochastic volatility model (SV), jump-diffusion model (JD), and Black-Scholes model (BS). However, these models are built on several strict and idealistic assumptions, including lognormality and sample-path continuity. In addition, previous studies on option pricing mainly relied on its own market-level indicators without considering the effect of other concurrent options. To address these challenges, we propose an intelligent learning and ensembling framework based on convolutional neural network (CNN). Specifically, the customized nonparametric learning approach is first utilized to estimate option prices. Second, several traditional parametric models are also applied to estimate these prices. The estimated prices are combined by a CNN to obtain the final estimations. Our experiments based on Chinese SSE 50 ETF options demonstrate that the proposed intelligent framework outperforms the traditional SV model, JD model, and BS model with at least 41.52% performance enhancement in terms of RMSE.
Journal: Emerging Markets Finance and Trade
Pages: 4237-4260
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2019.1695598
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695598
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Template-Type: ReDIF-Article 1.0
Author-Name: Chuan Luo
Author-X-Name-First: Chuan
Author-X-Name-Last: Luo
Author-Name: Qi Chen
Author-X-Name-First: Qi
Author-X-Name-Last: Chen
Author-Name: Yun Zhang
Author-X-Name-First: Yun
Author-X-Name-Last: Zhang
Author-Name: Yun Xu
Author-X-Name-First: Yun
Author-X-Name-Last: Xu
Title: The Effects of Trust on Policyholders’ Purchase Intentions in an Online Insurance Platform
Abstract: 
 This study investigates the three dimensions of trust belief on policyholders’ purchase intentions in a third-party online insurance platform. Extending existing studies, we further explore the antecedent factors of trust. We collected 332 samples from the insurance platform Zuihuibao. The results show that two dimensions of trust belief, ability and integrity, can significantly affect policyholders’ purchase intentions. Additionally, reputation, system quality, cooperation, financial risk and benefit serve as crucial antecedent factors that affect policyholders’ trust beliefs. The theoretical contributions and practical implications are discussed based upon the findings.
Journal: Emerging Markets Finance and Trade
Pages: 4167-4184
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2019.1695122
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695122
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Template-Type: ReDIF-Article 1.0
Author-Name: Yu Wang
Author-X-Name-First: Yu
Author-X-Name-Last: Wang
Author-Name: Xin Han
Author-X-Name-First: Xin
Author-X-Name-Last: Han
Author-Name: Yixuan Li
Author-X-Name-First: Yixuan
Author-X-Name-Last: Li
Author-Name: Furui Liu
Author-X-Name-First: Furui
Author-X-Name-Last: Liu
Title: Efficiency and Effect of Regulatory Policies on the Online Peer-to-peer (P2P) Lending Industry
Abstract: 
 We investigated the influential power of regulatory policies on 463 peer-to-peer lending platforms in China to understand the effectiveness of their regulatory policies. Our results showed that the influence of regulatory policies varies across platforms. Notably, 1) the platforms controlled by the listed firms face more difficulties than others with strict supervision; 2) the platforms with little registered capital and a shorter period of establishment are more susceptible to regulatory policies; and 3) the platforms with a short duration of debt transfer have a greater risk of bank runs and serious fluctuations in trading volume due to the policy release.
Journal: Emerging Markets Finance and Trade
Pages: 4272-4285
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2021.1882987
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1882987
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Template-Type: ReDIF-Article 1.0
Author-Name: Shu Chen
Author-X-Name-First: Shu
Author-X-Name-Last: Chen
Author-Name: Zhuo Huang
Author-X-Name-First: Zhuo
Author-X-Name-Last: Huang
Author-Name: Zhimin Qiu
Author-X-Name-First: Zhimin
Author-X-Name-Last: Qiu
Title: Heterogeneous Beliefs and the Beta Anomaly in the Chinese A-share Stock Market
Abstract: 
 The beta anomaly indicates that high-beta stocks earn low future returns. We confirm the existence of the beta anomaly in the Chinese A-share stock market and propose that heterogeneous beliefs and arbitrage limits play important roles in explaining the beta anomaly. We provide a new proxy for aggregate disagreement based on analysts’ earnings forecasts and find that the beta anomaly does not exist in stocks with low arbitrage limits and periods with low aggregate disagreement. Furthermore, a higher aggregate disagreement period leads to a more concave Security Market Line.
Journal: Emerging Markets Finance and Trade
Pages: 4424-4435
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1822809
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1822809
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Template-Type: ReDIF-Article 1.0
Author-Name: Qian Li
Author-X-Name-First: Qian
Author-X-Name-Last: Li
Author-Name: Mengting Guo
Author-X-Name-First: Mengting
Author-X-Name-Last: Guo
Title: Local Economic Performance, Political Promotion, and Stock Price Crash Risk: Evidence from China
Abstract: 
 This paper explores the association between promotion pressure on local officials and the risk of stock price crashes in China. Using local economic development data, we construct an index of performance pressure on local officials. Using data from 195 Chinese cities and 1,101 listed firms in those cities during 2006–2018, we find that performance pressure is negatively associated with the stock price crash risk. However, the negative association only exists for state-owned firms and is stronger for local officials with higher ex-ante promotion probability and those promoted after their current tenures. We also find that earnings management and over-investment are the underlying channels through which performance pressure affects crash risk. Our findings imply that the top-down assessment system for local officials in China has economic consequences for local firms.
Journal: Emerging Markets Finance and Trade
Pages: 4330-4349
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1809373
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1809373
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Template-Type: ReDIF-Article 1.0
Author-Name: Baban Eulaiwi
Author-X-Name-First: Baban
Author-X-Name-Last: Eulaiwi
Author-Name: Ahmed Al-Hadi
Author-X-Name-First: Ahmed
Author-X-Name-Last: Al-Hadi
Author-Name: Khamis Hamed Al-Yahyaee
Author-X-Name-First: Khamis Hamed
Author-X-Name-Last: Al-Yahyaee
Author-Name: Grantley Taylor
Author-X-Name-First: Grantley
Author-X-Name-Last: Taylor
Title: Investment Board Committee and Investment Efficiency in a Unique Environment
Abstract: 
 This study investigates the associations between investment efficiency and both the existence of a board investment committee (IC) and its expertise. Using a sample of industrial firms from six Gulf Cooperation Council (GCC) countries across the 2005–2018 period, we find that IC existence reduces both under- and overinvestment by these firms. We also find that financial expertise among committee members affects firms’ investment efficiency positively. These findings are consistent with the assertion that ICs assist with the monitoring and control of firms’ investments. We also find that ICs reduce over- and underinvestment in firms with high levels of foreign ownership concentration. Our finding that reliance on an investment committee enhances investment efficiency is consistent with the tenets of agency theory in firms dominated by government and family ownership structures. These results are robust to a battery of additional tests that use alternative measures of investment efficiency, and to tests for self-selection bias and endogeneity.
Journal: Emerging Markets Finance and Trade
Pages: 4408-4423
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1816461
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1816461
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Template-Type: ReDIF-Article 1.0
Author-Name: Shanshan Yao
Author-X-Name-First: Shanshan
Author-X-Name-Last: Yao
Title: “Who Should Be the Next CEO?” Desirable Successor Characteristics in Recovery from Financial Distress
Abstract: 
 The goal of this study is to understand which characteristics of CEO successors are most desirable in the recovery from financial distress. Using a sample of 316 non-financial firms experienced “special treatment” regulations with CEO turnover in China from 2002 to 2018, the results demonstrate that CEO experience and political connections have significant influence and can substitute for each other in the recovery process, while the effects of education background, finance experience, and banking relationships are insignificant. Finally, government subsidies play a partial mediating role between guanxi resources and recovery from financial distress.
Journal: Emerging Markets Finance and Trade
Pages: 4461-4472
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1828857
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1828857
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Handle: RePEc:mes:emfitr:v:57:y:2021:i:15:p:4461-4472




Template-Type: ReDIF-Article 1.0
Author-Name: Theshne Kisten
Author-X-Name-First: Theshne
Author-X-Name-Last: Kisten
Title: Monitoring Financial Stress in South Africa
Abstract: 
 This article develops a new index to monitor financial stability in South Africa over the period 1995–2017. Rather than selecting indicators based on deemed relevance, the novelty of our index lies in the selection and aggregation of financial indicators based on their incremental informational content, achieving the best balance between parsimony and efficacy. In addition, market sub-indices are weighted by time-varying cross-correlations among them, enabling the financial stress measure to focus on the systemic dimension of financial stress. While capturing the key episodes of financial stress in South Africa, the index also successfully captures other global and idiosyncratic risks that affect the financial markets in the country. Threshold vector autoregression models based on the full sample and sub-samples reveal nonlinearities and time-variation in the transmission of a financial shock to the real economy.
Journal: Emerging Markets Finance and Trade
Pages: 4380-4397
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1810014
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1810014
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Template-Type: ReDIF-Article 1.0
Author-Name: Yan Chen
Author-X-Name-First: Yan
Author-X-Name-Last: Chen
Author-Name: Zhilong Xie
Author-X-Name-First: Zhilong
Author-X-Name-Last: Xie
Author-Name: Wenjie Zhang
Author-X-Name-First: Wenjie
Author-X-Name-Last: Zhang
Author-Name: Rong Xing
Author-X-Name-First: Rong
Author-X-Name-Last: Xing
Author-Name: Qing Li
Author-X-Name-First: Qing
Author-X-Name-Last: Li
Title: Quantifying the Effect of Real Estate News on Chinese Stock Movements
Abstract: 
 Both traditional finance and modern behavioral finance consider that the volatility of the stock market comes from the release, dissemination and absorption of information from different views. With the rapid growth of Chinese housing prices and the public’s attention to the issue, listed firms related to Chinese real estate have come to represent one of the most important sectors in Chinese stock markets. In this study, we quantify news articles using natural language processing techniques and investigate the impact of regulatory policies and firm-specific news on real estate stocks in this active market covered by a large amount of information. Our three main findings are as follows: (1) the simple and effective quantitative measure of news emotion can be used to study the media-aware stock movements in the real estate sector of the Chinese stock market; (2) policy news leaks ahead of time, which leads to abnormal fluctuations in the stock market 14 days before the release of information, while the stock market fluctuates only slightly and briefly after the news release; and (3) news pessimism indicates downward pressure on market prices, and optimism tends to increase market prices. News-sensitive stocks perform better than other stocks, with a Sharpe ratio higher than 0.2.
Journal: Emerging Markets Finance and Trade
Pages: 4185-4210
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2019.1695596
File-URL: http://hdl.handle.net/10.1080/1540496X.2019.1695596
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Template-Type: ReDIF-Article 1.0
Author-Name: Chao Yang
Author-X-Name-First: Chao
Author-X-Name-Last: Yang
Author-Name: Qizhi Tao
Author-X-Name-First: Qizhi
Author-X-Name-Last: Tao
Author-Name: Jiangze Du
Author-X-Name-First: Jiangze
Author-X-Name-Last: Du
Author-Name: Stephen X. Gong
Author-X-Name-First: Stephen X.
Author-X-Name-Last: Gong
Title: The Impact of Corruption Investigations on Stock Price Crash Risk: Evidence from the Crackdown on “Tigers” in China
Abstract: 
 Using data on corrupt senior officials in China, we find that corruption investigations significantly increase the stock price crash risk for listed firms located in the provinces where the senior officials formerly worked, and the impact is positively related to the officials’ political level. Channel tests find that corruption investigations increase negative news, which results in an increase in crash risk. Additional tests document that state-owned enterprises and politically connected firms experience lower crash risk, and the impact is more significant in more-developed provinces. In addition, we find that firms directly associated with investigated officials experience negative cumulative abnormal returns.
Journal: Emerging Markets Finance and Trade
Pages: 4261-4271
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1859367
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1859367
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Template-Type: ReDIF-Article 1.0
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Chuanhao Wen
Author-X-Name-First: Chuanhao
Author-X-Name-Last: Wen
Author-Name: Huan Zheng
Author-X-Name-First: Huan
Author-X-Name-Last: Zheng
Title: Does China’s Environmental Protection Tax Law Effectively Influence Firms? Evidence from Stock Markets
Abstract: 
 This study uses stock market data to examine whether China’s Environmental Protection Tax Law (EPT Law) effectively influences firms’ environmental behavior. Using the event study methodology, we find that the Law generally affects listed firms. Though higher environmental tax rates are negatively associated with the Law’s effectiveness from the investors’ perspective, greater investment in research and development can reduce firms’ emissions and achieve greater compliance with a stringent environmental regime. Sub-sample tests show that the EPT Law has a greater impact on polluting firms than on nonpolluting firms, indicating that this policy effectively targeted polluters.
Journal: Emerging Markets Finance and Trade
Pages: 4436-4447
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1822810
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1822810
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Template-Type: ReDIF-Article 1.0
Author-Name: Shuang Zhao
Author-X-Name-First: Shuang
Author-X-Name-Last: Zhao
Author-Name: Wanbo Lu
Author-X-Name-First: Wanbo
Author-X-Name-Last: Lu
Author-Name: Muhammad Wajid Raza
Author-X-Name-First: Muhammad Wajid
Author-X-Name-Last: Raza
Author-Name: Dong Yang
Author-X-Name-First: Dong
Author-X-Name-Last: Yang
Title: Can Mixed-Frequency Data Improve the Higher-Order Moments Portfolio Performance?
Abstract: 
 In the presence of non-normally distributed asset returns, an optimal portfolio selection should consider higher-order (co-)moments when no sampling errors exist. However, the curse of dimensionality has already been a serious concern in mean-variance analyses; higher-order (co-)moments also face the same dilemma. This study uses mixed-frequency (MF) data under the assumption that stock returns are generated by a mixed-data sampling (MIDAS) regression model, which shows to provide well-improved estimates for the covariance, co-skewness, and co-kurtosis matrices for higher dimension. We discover that the new, improved estimates used in higher-order (co-)moment portfolio selections can dominate the other existing structured estimates from an out-of-sample perspective in most instances.
Journal: Emerging Markets Finance and Trade
Pages: 4473-4493
Issue: 15
Volume: 57
Year: 2021
Month: 12
X-DOI: 10.1080/1540496X.2020.1785862
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1785862
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Template-Type: ReDIF-Article 1.0
Author-Name: Shaopeng Cao
Author-X-Name-First: Shaopeng
Author-X-Name-Last: Cao
Author-Name: Zhenming Fang
Author-X-Name-First: Zhenming
Author-X-Name-Last: Fang
Author-Name: Wenyan Pu
Author-X-Name-First: Wenyan
Author-X-Name-Last: Pu
Author-Name: Yi-Yin Ruan
Author-X-Name-First: Yi-Yin
Author-X-Name-Last: Ruan
Title: Vertical Interlock and Firm Value: The Role of Corporate Innovation
Abstract: 
 This paper examines the impact of vertical interlock on firm value of listed firms in China. We find that vertical interlock significantly reduces firm value. Further, the negative effects are more pronounced when the type of vertical interlock is indirect and the interlocking position is board chairman. This association is robust to a series of robustness and endogeneity tests. Importantly, we find that reducing R&D investment caused by vertical interlock is tightly associated with the decline in firm value. Our results support the notion that vertical interlock appears to worsen corporate governance.
Journal: Emerging Markets Finance and Trade
Pages: 1061-1077
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1927699
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1927699
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Template-Type: ReDIF-Article 1.0
Author-Name: Yujuan Zhang
Author-X-Name-First: Yujuan
Author-X-Name-Last: Zhang
Author-Name: Lu Zhang
Author-X-Name-First: Lu
Author-X-Name-Last: Zhang
Title: Innovation Input on Enterprise Value: Based on the Moderating Effect of Ownership Structure
Abstract: 
 Using the listed firms in the Shanghai and Shenzhen A-share market of China (2010–2019) as the sample, we investigate the impact of innovation input on enterprise value and the moderating effect of equity ownership structure in between. We find that innovation input can significantly enhance firm value and over-concentrated ownership could negatively regulate the above relationship. Moreover, a higher degree of equity balance can positively regulate the relation between innovation input and firm value. Hence, firms in China should maintain a moderate concentration of equity and improve the checks and balances of equity to alleviate principal agent issues.
Journal: Emerging Markets Finance and Trade
Pages: 1078-1088
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1928492
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1928492
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Template-Type: ReDIF-Article 1.0
Author-Name: Jie Zhang
Author-X-Name-First: Jie
Author-X-Name-Last: Zhang
Author-Name: Kaiqi Wang
Author-X-Name-First: Kaiqi
Author-X-Name-Last: Wang
Author-Name: Weidong Zhao
Author-X-Name-First: Weidong
Author-X-Name-Last: Zhao
Author-Name: Yun Han
Author-X-Name-First: Yun
Author-X-Name-Last: Han
Author-Name: Xiao Miao
Author-X-Name-First: Xiao
Author-X-Name-Last: Miao
Title: Corporate Social Responsibility and Carbon Emission Intensity: Is There a Marketization Threshold Effect?
Abstract: 
 Using data of 30 provinces in mainland China for the period from 2010 to 2016, this study applies a threshold model to empirically test the effect of corporate social responsibility on regional carbon emission under different marketization levels. The results show that there is a significant negative correlation between CSR and carbon emission intensity, and the level of marketization has a clear threshold effect. However, the threshold effect differs depending on certain dimensions that can be influenced by policymakers. Strengthening government intervention and improving marketization levels, the impact of corporate social responsibility on carbon emission intensity can be significantly enhanced.
Journal: Emerging Markets Finance and Trade
Pages: 952-964
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2020.1854219
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1854219
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Template-Type: ReDIF-Article 1.0
Author-Name: Manning Gong
Author-X-Name-First: Manning
Author-X-Name-Last: Gong
Author-Name: Jin-hui Luo
Author-X-Name-First: Jin-hui
Author-X-Name-Last: Luo
Title: Transportation Infrastructure and Analyst Earnings Forecasts: Evidence from High-Speed Rails in China
Abstract: 
 This study examines the effect of high-speed rails on analyst earnings forecasts in Chinese context. The results based on a difference-in-difference design show that the introduction of high-speed rail improves analyst earnings forecast accuracy. The positive association is stronger for firms located in regions with less developed institutional environments, firms with fewer intangible assets, and firms located farther away from information centers. In addition, high-speed rails increase analysts’ likelihood and frequency of site visits. Overall, we extend the literature on economic geography and financial analysts, and shed lights on how transportation infrastructure facilitates information exchange in capital markets.
Journal: Emerging Markets Finance and Trade
Pages: 1125-1136
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1949980
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1949980
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Template-Type: ReDIF-Article 1.0
Author-Name: Go Yano
Author-X-Name-First: Go
Author-X-Name-Last: Yano
Author-Name: Maho Shiraishi
Author-X-Name-First: Maho
Author-X-Name-Last: Shiraishi
Title: Innovation Spillovers between Domestic Firms in China
Abstract: 
 This study aims to clarify whether innovation spillover effects can be observed between domestic firms in China. Using listed firms’ data and the R&D capital stock and R&D workers’ data at the industry level, we examined whether Chinese domestic firms benefited from spillovers from not only FDI firms but also from the other domestic firms in terms of their innovations. We found that state-owned enterprises benefited from the spillover effects on innovation input and output from the other domestic firms in China, whereas the spillover effects on the innovations of private firms (PEs) from the other domestic firms were conditional on their availability of financial resources and became larger as their available financial resources increased. Whether PEs could benefit from spillover effects through the human capital held by the other domestic firms was also conditional on their availability of financial resources.
Journal: Emerging Markets Finance and Trade
Pages: 1042-1060
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1926978
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1926978
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Template-Type: ReDIF-Article 1.0
Author-Name: Honghui Zhang
Author-X-Name-First: Honghui
Author-X-Name-Last: Zhang
Author-Name: Ying Zou
Author-X-Name-First: Ying
Author-X-Name-Last: Zou
Author-Name: Linyi Zhang
Author-X-Name-First: Linyi
Author-X-Name-Last: Zhang
Author-Name: Haojun Xiong
Author-X-Name-First: Haojun
Author-X-Name-Last: Xiong
Author-Name: Ziqin Xie
Author-X-Name-First: Ziqin
Author-X-Name-Last: Xie
Title: Absence of Controlling Shareholders and Litigation Risk: Evidence from China
Abstract: 
 Using 2003–2018 data from China, this study analyzes the effect of absence of controlling shareholders on litigation risk. The results show that companies without controlling owners face higher litigation risk, an association that exists mainly in respondent companies. Upon further analysis, we find that this negative effect is more pronounced when the ownership is highly dispersed, and less pronounced for companies with greater analyst followings. This study enriches litigation risk literature from the perspective of absence of controlling shareholders, and enlightens other related studies that focus on emerging economies.
Journal: Emerging Markets Finance and Trade
Pages: 1176-1190
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1973422
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1973422
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Template-Type: ReDIF-Article 1.0
Author-Name: Kun Yuan
Author-X-Name-First: Kun
Author-X-Name-Last: Yuan
Author-Name: Detao Zeng
Author-X-Name-First: Detao
Author-X-Name-Last: Zeng
Author-Name: Xiangyi Yuan
Author-X-Name-First: Xiangyi
Author-X-Name-Last: Yuan
Author-Name: Fei Lan
Author-X-Name-First: Fei
Author-X-Name-Last: Lan
Title: Real Earnings Management, Manipulation Incentives and Accounting Conservatism:Evidence from China
Abstract: 
 This study examines the effects of real earnings management on accounting conservatism, based on 2,121 A-share listed firms in Shanghai and Shenzhen from 2005 to 2017. The results indicate that real earnings management has a significant negative impact on listed firms’ accounting conservatism. The real earnings management based on loss avoidance, seasoned equity offerings (SEO), maintaining growth and reversing loss reduces accounting conservatism, while that based on earnings smoothing incentive improves accounting conservatism. Real earnings management of firms with poor corporate governance has a more significant impact on accounting conservatism than firms with good corporate governance. The findings also offer reference for further strengthening listed firms’ financial supervision, improving corporate governance structure, and promoting the healthy development of the securities market.
Journal: Emerging Markets Finance and Trade
Pages: 939-951
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2020.1852927
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1852927
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Template-Type: ReDIF-Article 1.0
Author-Name: Jun Huang
Author-X-Name-First: Jun
Author-X-Name-Last: Huang
Author-Name: Zhixin Duan
Author-X-Name-First: Zhixin
Author-X-Name-Last: Duan
Author-Name: Mingsheng Hu
Author-X-Name-First: Mingsheng
Author-X-Name-Last: Hu
Author-Name: Yun Li
Author-X-Name-First: Yun
Author-X-Name-Last: Li
Title: More Stable, More Sustainable: Does TMT Stability Affect Sustainable Corporate Social Responsibility?
Abstract: 
 Building on the TMT behavioral integration of upper echelon theory, this study explores whether the stability of top management team (TMT) affects sustainable corporate social responsible activities (CSR). We also examine how the TMT stability-sustainable CSR relationship is moderated by CEO power. Analyzing a dataset of publicly listed firms in China for the period of 2009–2017, we provide evidence that a relatively stable TMT engages in sustainable CSR. This finding supports the argument that a stable TMT focuses on long-term sustainable development. Moreover, the positive effect of TMT stability on sustainable CSR is pronounced only for firms with weak CEO power. Further analysis shows that a positive association between TMT stability and sustainable CSR occurs for firms in CSR-sensitive industries and in an environment with low economic uncertainty. We then confirm that TMT stability positively affects sustainable CSR by improving team cohesion, which in turn contributes to higher firm performance and lower operational risk.
Journal: Emerging Markets Finance and Trade
Pages: 921-938
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2020.1852926
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1852926
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenjun Tu
Author-X-Name-First: Wenjun
Author-X-Name-Last: Tu
Author-Name: Yongmin Zhang
Author-X-Name-First: Yongmin
Author-X-Name-Last: Zhang
Title: How Does Cultural Distance Matter in Long-term Value Creation of Cross-border Acquisitions?
Abstract: 
 This article explores the role of cultural distance on long-term value creation for Chinese acquirers based on a sample of Chinese cross-border acquisition (CBA) activities from 1999 to 2017. Our finding suggests that the long-term value creation after CBA is impeded by a greater cultural distance, and such a negative correlation is more prominent among acquirers in service or strategic emerging industries. However, this negative relationship can be mitigated by the capability of prior international acquisition experience in culturally similar countries or top managers’ overseas education experience. Through drawing upon institution-, resource/capability- and industry-based views, this article takes a step toward understanding the role of cultural distance in emerging-market enterprises' (EMEs)’ international acquisitions in the long run.
Journal: Emerging Markets Finance and Trade
Pages: 1027-1041
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1873125
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1873125
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Template-Type: ReDIF-Article 1.0
Author-Name: Di Yang
Author-X-Name-First: Di
Author-X-Name-Last: Yang
Author-Name: Jun Wen
Author-X-Name-First: Jun
Author-X-Name-Last: Wen
Author-Name: Renai Jiang
Author-X-Name-First: Renai
Author-X-Name-Last: Jiang
Author-Name: Sen Zhang
Author-X-Name-First: Sen
Author-X-Name-Last: Zhang
Title: Earnings management, Ownership concentration and Capitalization of Research & Development expenditure
Abstract: 
 This study investigates the relationship between earnings management (EM) and capitalization of research and development (R&D) expenditure from the perspective of major shareholders expropriation, using Modified Jones Model and Bidirectional Fixed Effect Model for the period 2009–2018. And the study further discusses the moderating effect of ownership concentration on the relationship between earnings management (EM) and capitalization of research and development (R&D) expenditure. Our results confirm that the level of accrued earnings management (EM) presents a positive impact on capitalization of research and development (R&D) expenditure. The effect of the shareholding ratio of the biggest shareholder on the relationship between accrued EM and capitalization of R&D expenditure is inverted U-shape.
Journal: Emerging Markets Finance and Trade
Pages: 1191-1205
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1980383
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1980383
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuchen Li
Author-X-Name-First: Yuchen
Author-X-Name-Last: Li
Author-Name: Wenhao Ma
Author-X-Name-First: Wenhao
Author-X-Name-Last: Ma
Title: Environmental Regulations and Industrial Enterprises Innovation Strategy: Evidence from China
Abstract: 
 This study examines whether environmental regulations affect innovation strategy of industrial enterprises. We show that strict environmental regulations negatively impact the innovation strategy of industrial enterprises, which leads the firms to be conservative, suggesting that the Porter hypothesis is not realized at this stage. We further demonstrate that environmental regulations have a long-term negative impact on company innovation strategy. Our findings are robust to when adjusting innovation strategy metrics and estimation method. In addition, strict environmental regulations have a more significant negative impact on heavy pollution enterprise. Overall, our results provide clear policy implications by revealing that achieving a win-win situation between environmental protection and enterprise innovation in emerging markets remains a challenge.
Journal: Emerging Markets Finance and Trade
Pages: 1147-1162
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1963227
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1963227
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Template-Type: ReDIF-Article 1.0
Author-Name: Shaofang Li
Author-X-Name-First: Shaofang
Author-X-Name-Last: Li
Title: The Impact of Capital Structure and Institutional Environment on Bank Competition: A Cross-Country Analysis
Abstract: 
 Using cross-country data for 1999–2019, we investigate how bank capital structure and institutional environment affect bank competition. Banks with a higher Tier 1 ratio have greater market power, and lowering activity restrictions and bank entry requirements enhances competition. Banking systems with greater capital stringency and official supervisory power tend to be more competitive. During financial crises, higher Tier 2 capital corresponds with greater market power. Foreign banks’ market power is sensitive to Tier 2 capital.
Journal: Emerging Markets Finance and Trade
Pages: 997-1007
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2020.1859366
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1859366
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Template-Type: ReDIF-Article 1.0
Author-Name: Hsu-Huei Huang
Author-X-Name-First: Hsu-Huei
Author-X-Name-Last: Huang
Title: Do Independent Directors Matter? Evidence from Regulatory Change in an Emerging Market
Abstract: 
 This research examines the operating performance of firms listed on the Taiwan stock exchange following the initial appointment of independent directors due to regulatory change. Although the firms appointing independent directors do not outperform the matched firms for all the sample firms, the results show that the appointment of independent directors does have a positive influence on the operating performance of firms in greater need of objective monitoring. Firms with lower growth opportunities, with a CEO concurrently serving as board chairman, with higher insider shareholdings, or with lower foreign institutional shareholdings tend to perform significantly better than their matched firms over the three-year period following the initial appointment of independent directors.
Journal: Emerging Markets Finance and Trade
Pages: 1137-1146
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1954502
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1954502
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Template-Type: ReDIF-Article 1.0
Author-Name: Irfan Ullah
Author-X-Name-First: Irfan
Author-X-Name-Last: Ullah
Author-Name: Hong-Xing Fang
Author-X-Name-First: Hong-Xing
Author-X-Name-Last: Fang
Author-Name: Mohib Ur Rahman
Author-X-Name-First: Mohib
Author-X-Name-Last: Ur Rahman
Author-Name: Amjad Iqbal
Author-X-Name-First: Amjad
Author-X-Name-Last: Iqbal
Title: CEO Military Background and Investment Efficiency
Abstract: 
 We identify an unexplored attribute of the CEO associated with corporate investment efficiency – military experience. We hypothesize that military experienced CEOs tend to reduce agency conflicts, are less likely to be self-interested, and have a higher tendency to take value-enhancing projects which lead to higher investment efficiency. We test our core hypotheses using a sample of Pakistani firms from 2009 to 2017 and find that CEOs’ with military experience have a positive influence on investment efficiency. This positive effect is more pronounced in reducing underinvestment problems, in the presence of strong competition, and when CEO has higher incentives, but weaker for state-owned firms. These conclusions remain valid to alternative measures, after addressing endogeneity issues, and additional analyses. Overall, our research advances the literature by providing new evidence that CEO military experience can have a significant influence on corporate decisions.
Journal: Emerging Markets Finance and Trade
Pages: 1089-1102
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1937115
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1937115
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Template-Type: ReDIF-Article 1.0
Author-Name: Chao Li
Author-X-Name-First: Chao
Author-X-Name-Last: Li
Author-Name: Zhao Zhao
Author-X-Name-First: Zhao
Author-X-Name-Last: Zhao
Author-Name: Han Li
Author-X-Name-First: Han
Author-X-Name-Last: Li
Title: Geographic Proximity and Information Efficiency of Capital Market: Evidence from China
Abstract: 
 This paper utilizes the launch of China’s high-speed railway (HSR) as an exogenous policy shock to identify the causality between geographic proximity and the information efficiency of capital markets. Since the HSR shortens geographic distances between investors and companies, it can improve the flow of information and reduce stock price synchronization. We adopt a difference-in-difference (DID) strategy to identify this causal effect and construct the time-varying minimum spanning tree as an instrumental variable to address the selection issue on HSR’s route placements. We find that HSR significantly reduces stock price synchronicity by 6.82%. Such effects are more remarkable in firms with fewer analyst reports, and inter-province HSR has a greater effect on firms than intra-province HSR. Further analysis of mechanisms shows that better geographical proximity improves the information efficiency of the capital market by facilitating institutional trading and improving companies’ information transparency.
Journal: Emerging Markets Finance and Trade
Pages: 1163-1175
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1971072
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1971072
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Template-Type: ReDIF-Article 1.0
Author-Name: Thiago Christiano Silva
Author-X-Name-First: Thiago Christiano
Author-X-Name-Last: Silva
Author-Name: Tércio Braz
Author-X-Name-First: Tércio
Author-X-Name-Last: Braz
Author-Name: Diego Raphael Amancio
Author-X-Name-First: Diego Raphael
Author-X-Name-Last: Amancio
Author-Name: Benjamin Miranda Tabak
Author-X-Name-First: Benjamin Miranda
Author-X-Name-Last: Tabak
Title: Financial Literacy and the Perceived Value of Stress Testing: An Experiment Using Students in Brazil
Abstract: 
 We run an experiment to test how consumers of banking services value stress tests performed by their banks. We query respondents about the extent to which they would be willing to trade profitability if banks conduct stress tests, maybe for greater bank financial stability. Our paper connects and innovates in the banking literature by providing empirical evidence of the value of communicating bank stress tests routines to the public from the consumer perspective rather than the regulator’s usual perspective or of the bank itself. By performing stress tests and communicating them to their customers, we find that consumers accept lower remuneration rates of their deposits, suggesting they value stress testing. Our experimental design also contains several queries to estimate the degree of financial literacy of respondents. By combining both perspectives, we find that respondents with higher financial literacy levels are more conservative and replace more profitable banks with less profitable banks that perform and communicate stress testing routines to the public. We explicitly consider measurement error in our data collection process of respondents’ rather subjective financial literacy indicator by introducing external instruments. Such consideration aims at mitigating attenuation bias. We also run several robustness tests with subsets of our sample and non-linear models, such as Probit.
Journal: Emerging Markets Finance and Trade
Pages: 965-996
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2020.1856070
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1856070
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Template-Type: ReDIF-Article 1.0
Author-Name: Feriansyah Feriansyah
Author-X-Name-First: Feriansyah
Author-X-Name-Last: Feriansyah
Author-Name: Noer Azam Achsani
Author-X-Name-First: Noer Azam
Author-X-Name-Last: Achsani
Author-Name: Tony Irawan
Author-X-Name-First: Tony
Author-X-Name-Last: Irawan
Author-Name: Lukytawati Anggraeni
Author-X-Name-First: Lukytawati
Author-X-Name-Last: Anggraeni
Title: The Impact of Fiscal and Monetary Policies on the Real Sector under Globalization
Abstract: 
 This paper examines the effects of fiscal and monetary policies on the real sector under globalization by using the dynamic panel System-Generalized Method of Moments estimator technique with a sample of 79 countries during the 1998–2018 period. The paper primarily aimed to evaluate the roles of fiscal and monetary policies on the real sector by considering aspects of globalization. The results demonstrate that globalization has significantly distorted the role of expansionary fiscal policy on the real sector. Further, the role of monetary policy on the real sector has remained reliable under globalization in developing countries but not in developed countries. Moreover, the effects of economic globalization through trade and financial liberalization on the reliability of fiscal and monetary policies were also investigated. In accordance with the effects of globalization, trade and financial liberalization were found to distort the role of fiscal policy on the real sector; however, under trade liberalization, monetary policy was more effective for the industrial and service sectors than fiscal policy.
Journal: Emerging Markets Finance and Trade
Pages: 1103-1124
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2021.1949281
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1949281
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Template-Type: ReDIF-Article 1.0
Author-Name: Min Wang
Author-X-Name-First: Min
Author-X-Name-Last: Wang
Author-Name: Jie He
Author-X-Name-First: Jie
Author-X-Name-Last: He
Author-Name: Peng Xu
Author-X-Name-First: Peng
Author-X-Name-Last: Xu
Title: Ultimate Control Rights and Corporate Fraud: Evidence from China
Abstract: 
 This study uses the Shapley-Shubik Power Index to measure the ultimate control rights of companies listed on China’s main board market and empirically tests the effect of ultimate control rights on corporate fraud. We confirm that ultimate control rights have a significant restraining effect on corporate fraud. Specifically, the greater the ultimate control rights, the lower the probability of fraud and the fewer the number of frauds. Furthermore, we find that under different fraud subjects, fraud types, and fraud severity, this restraining effect still exists. In addition, we also find the ultimate control rights are negatively associated with fraud propensity, and are positively associated with fraud detection.
Journal: Emerging Markets Finance and Trade
Pages: 1206-1213
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2020.1845647
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1845647
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Template-Type: ReDIF-Article 1.0
Author-Name: Mehmet Balcilar
Author-X-Name-First: Mehmet
Author-X-Name-Last: Balcilar
Author-Name: George Ike
Author-X-Name-First: George
Author-X-Name-Last: Ike
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: The Role of Economic Policy Uncertainty in Predicting Output Growth in Emerging Markets: A Mixed-Frequency Granger Causality Approach
Abstract: 
 We employ time series data to empirically determine the causal relationship between economic policy uncertainty and the GDP growth rates of seven emerging market economies while controlling for the effect of oil price, interest rates, and the CPI. Due to differences in sampling frequencies between the GDP series and other variables, a multi-horizon mixed frequency VAR model is specified. This model fully exploits the recently developed mixed frequency Granger causality test in order to circumvent the distorting effects of temporal aggregation. The empirical results show a strong statistical evidence for causality flowing from EPU to GDP in Brazil, Chile, and India in the mixed frequency case while weak statistical evidence is found for Colombia, Mexico, and Russia. For comparative analysis, the low-frequency Granger causality test is also employed and strong statistical evidence of causality flowing from EPU to GDP in Brazil, Chile, India, Mexico is uncovered. Analyzing the causal patterns uncovered in both specifications show that the low-frequency Granger causality results are less intuitively appealing than those that are obtained from the mixed frequency Granger causality test specifications. The results have empirical as well as policy implications which are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 1008-1026
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2020.1860747
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1860747
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:4:p:1008-1026




Template-Type: ReDIF-Article 1.0
Author-Name: Yi He
Author-X-Name-First: Yi
Author-X-Name-Last: He
Author-Name: Shengdao Gan
Author-X-Name-First: Shengdao
Author-X-Name-Last: Gan
Author-Name: Liang Xiao
Author-X-Name-First: Liang
Author-X-Name-Last: Xiao
Title: The Value of Customers’ Geographic Information in Chinese Corporate Bond Issuance
Abstract: 
 Based on a sample from the Chinese corporate bond market, this paper investigates how bond investors respond to customers’ geographic information, including customers’ geographic dispersion and distance. Using the detailed locations of issuing firms and their five main customers, we find a significantly positive relationship between customers’ geographic dispersion/distance and the costs of corporate bonds. This association is robust after both the endogeneity issues are controlled for and a series of robustness checks are conducted. The effects are less pronounced when issuers are audited by Big10 accounting firms and when issuers have high-quality customers. In sum, we apply cluster theory, transaction cost economics and information transfer in risk-asset pricing and find that bondholders demand different risk premiums after gaining access to customers’ geographic information.
Journal: Emerging Markets Finance and Trade
Pages: 907-920
Issue: 4
Volume: 58
Year: 2022
Month: 03
X-DOI: 10.1080/1540496X.2020.1850439
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1850439
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:4:p:907-920




Template-Type: ReDIF-Article 1.0
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Kwanho Shin
Author-X-Name-First: Kwanho
Author-X-Name-Last: Shin
Author-Name: Shu Tian
Author-X-Name-First: Shu
Author-X-Name-Last: Tian
Title: Household Debt, Corporate Debt, and the Real Economy: Some Empirical Evidence
Abstract: 
 The rapid accumulation of private debt is widely viewed as a major risk to financial and economic stability. This article systematically and comprehensively assesses the effect of private debt buildup on economic growth. In the spirit of the existing study that separately examines the effects of two types of private debt – household debt and corporate debt – on growth in advanced economies, we specifically provide new evidence on the growth-private debt nexus in both advanced and emerging market economies (EMEs). Moreover, we construct financial peaks in terms of the speed of debt accumulation rather than crisis dates and find that in both advanced and EMEs, corporate debt buildups cause more financial peaks than household debt buildups. Furthermore, corporate debt-induced financial recessions inflict a bigger damage on output than household debt-induced financial recessions in EMEs. Overall, our evidence suggests that policymakers would do well to closely monitor not only household debt but also corporate debt.
Journal: Emerging Markets Finance and Trade
Pages: 1474-1490
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1895114
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1895114
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Template-Type: ReDIF-Article 1.0
Author-Name: Dong Wook Seo
Author-X-Name-First: Dong Wook
Author-X-Name-Last: Seo
Author-Name: Seung Hun Han
Author-X-Name-First: Seung Hun
Author-X-Name-Last: Han
Title: Corruption and Corporate Cash Holdings
Abstract: 
 In this study, we examine the relation between corruption and corporate cash holding policy using data from 35,288 firms in 44 countries. The results indicate a non-linear relation between corruption and corporate cash holdings with a negative coefficient of the cubic term of corruption. Specifically, in developed (frontier) countries with low (high) level of corruption, we find a negative relation, whereas in emerging countries with moderate level of economic development and corruption, we find a positive relation. Thus, we suggest that corruption is an important variable that affects corporate cash holding policy by the level of economic development.
Journal: Emerging Markets Finance and Trade
Pages: 1441-1455
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1890022
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1890022
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Template-Type: ReDIF-Article 1.0
Author-Name: Dohyoung Kwon
Author-X-Name-First: Dohyoung
Author-X-Name-Last: Kwon
Title: What Drives Emerging Stock Market Returns? A Factor-Augmented VAR Approach
Abstract: 
 This paper explores the dynamic relationship between global economic factors and emerging stock returns within a factor-augmented VAR model. I find that favorable global growth and stock market shocks have significant positive effects on emerging equity returns, whereas global uncertainty and US dollar exchange rate shocks cause a substantial fall in the returns. Global oil shocks lead to a transient increase in emerging stock returns, followed by a gradual decline. Variance decomposition analysis implies that the global uncertainty shock is the most important in the short run, explaining more than 30% of the fluctuation in emerging stock returns, while the US dollar exchange rate shock becomes the most critical in the long run, explaining more than 40%. These findings have crucial implications for international investors, as well as for policymakers in emerging market economies.
Journal: Emerging Markets Finance and Trade
Pages: 1215-1232
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2020.1860748
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1860748
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhenghui Li
Author-X-Name-First: Zhenghui
Author-X-Name-Last: Li
Author-Name: Hao Dong
Author-X-Name-First: Hao
Author-X-Name-Last: Dong
Author-Name: Christos Floros
Author-X-Name-First: Christos
Author-X-Name-Last: Floros
Author-Name: Athanasios Charemis
Author-X-Name-First: Athanasios
Author-X-Name-Last: Charemis
Author-Name: Pierre Failler
Author-X-Name-First: Pierre
Author-X-Name-Last: Failler
Title: Re-examining Bitcoin Volatility: A CAViaR-based Approach
Abstract: 
 The article aims to explore the heterogeneous feature in the determination of Bitcoin volatility using a Markov regime-switching model and test its forecasting ability. The forecasting methodology of the risk measurement of Bitcoin’s returns is based on the Conditional Autoregressive Value at Risk models (CAViaR) approach. Our results show that Bitcoin’s volatility is significantly related to the volatility of the crypto-asset’s return and the main determinants of volatility are speculation, investor attention, market interoperability and the interaction between speculation and market interoperability. In addition, we present evidence that investors’ attention is the main source of volatility. Speculation and the interaction term are related in a “U-shaped” form, whereas investor attention and market interoperability show a linear trend on the volatility of Bitcoin.
Journal: Emerging Markets Finance and Trade
Pages: 1320-1338
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1873127
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1873127
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Template-Type: ReDIF-Article 1.0
Author-Name: Man Dang
Author-X-Name-First: Man
Author-X-Name-Last: Dang
Author-Name: Viet Anh Hoang
Author-X-Name-First: Viet Anh
Author-X-Name-Last: Hoang
Author-Name: Khoi Nguyen Tran
Author-X-Name-First: Khoi Nguyen
Author-X-Name-Last: Tran
Author-Name: Darren Henry
Author-X-Name-First: Darren
Author-X-Name-Last: Henry
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Does Media Attention Lower Debt Financing? International Evidence
Abstract: 
 This article examines the association between media attention and debt financing through a number of channels associated with information asymmetry reduction and whether this relationship changes with cross-country institutional environment characteristics. Focusing on a comprehensive international dataset, we find that overall media coverage is negatively related to firm leverage levels. Media-focused variables directly associated with information asymmetry levels, including press-initiated news, non-financial news, and the extent of positive news sentiment, are also negatively related to firm leverage ratios. Furthermore, the country-level institutional environment provided a substituting rather than legitimizing influence on the relationship between media news coverage and firm financing decision-making.
Journal: Emerging Markets Finance and Trade
Pages: 1233-1261
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2020.1861936
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1861936
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Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Kefei You
Author-X-Name-First: Kefei
Author-X-Name-Last: You
Title: Stock Market Linkages between the Asean Countries, China and the US: A Fractional Integration/cointegration Approach
Abstract: 
 This paper examines stock market integration between the five ASEAN countries and both the US and China in turn, over the period from November 2002 to August 2020. The linkages between both aggregate and financial sector stock indices (both weekly and monthly) are analyzed using fractional integration and fractional cointegration methods. Further, recursive cointegration analysis is carried out for the weekly series to study the impact of the 2007–8 global financial crisis and the 2015 China stock market crash on the pattern of stock market co-movement. The main findings are the following. All stock indices exhibit long-range dependence. There is cointegration between the five ASEAN countries and the US but almost none between the former and China, except between Indonesia and China in the case of the financial sector. The 2007–8 global financial crisis and the 2015 Chinese stock market plunge weakened the linkages between the ASEAN five and both China and the US. The implications of these results for market participants and policy makers are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 1502-1514
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1898366
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1898366
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhiyang Hui
Author-X-Name-First: Zhiyang
Author-X-Name-Last: Hui
Author-Name: Hongyan Fang
Author-X-Name-First: Hongyan
Author-X-Name-Last: Fang
Title: Does Non-controlling Large Shareholder Monitoring Improve CEO Incentives?
Abstract: 
 This paper investigates the influence of non-controlling large shareholders (NLSs) on CEO pay-performance sensitivity (PPS), using over 2,000 Chinese firms. We find that NLSs’ equity ownership or Shapley value is positively related to CEO PPS, suggesting that cash-flow rights or real voting power of NLSs help align the interests between CEOs and shareholders. This positive impact is more prominent when the benefit of monitoring is larger. There is also preliminary evidence that different types of NLSs boost CEO incentives through different channels. Overall, our study helps understand the monitoring role of NLSs in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 1262-1275
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2020.1865148
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1865148
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Template-Type: ReDIF-Article 1.0
Author-Name: Jun Xie
Author-X-Name-First: Jun
Author-X-Name-Last: Xie
Author-Name: Nan Hu
Author-X-Name-First: Nan
Author-X-Name-Last: Hu
Author-Name: Bin Gao
Author-X-Name-First: Bin
Author-X-Name-Last: Gao
Author-Name: ChunZhi Tan
Author-X-Name-First: ChunZhi
Author-X-Name-Last: Tan
Title: Representativeness Heuristic in Stock Market: Measurement and Its Predictive Ability
Abstract: 
 This paper measures representativeness heuristic by the irrational part of time-varying Hurst exponent, and empirically tests the validity of measurement including its predictive ability for one-month-ahead excess return in the Chinese stock market. Our preliminary analyses suggest that the representativeness heuristic is a “new” firm-specific characteristic and is possibly related (not consistent) with momentum. It confirms that the measurement of representativeness heuristic is valid. Further researches show that the representativeness heuristic has the predictive ability for one-month-ahead excess return. Meanwhile, multiple robustness tests are constructed to prove these results.
Journal: Emerging Markets Finance and Trade
Pages: 1276-1287
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2020.1866533
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1866533
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Template-Type: ReDIF-Article 1.0
Author-Name: Mariano González-Sánchez
Author-X-Name-First: Mariano
Author-X-Name-Last: González-Sánchez
Title: Term Structure of Risk Factor Premiums Used for Pricing Asset: Emerging vs. Developed Markets
Abstract: 
 The aim of this empirical study was to estimate and compare the term structure of risk factor premiums in developed and emerging markets. Most studies use dividend and variance swap data, but as that information is not available for all markets, we use wavelet decomposition of the observed return to calculate sensitivity to risk factors and obtain a term structure for risk factor premiums. The results show that only the market risk factor (for both types of markets) and the conservative minus aggressive factor (only for developed markets) show a term structure for risk premiums.
Journal: Emerging Markets Finance and Trade
Pages: 1339-1358
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1873128
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1873128
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Template-Type: ReDIF-Article 1.0
Author-Name: Jianhui Jian
Author-X-Name-First: Jianhui
Author-X-Name-Last: Jian
Author-Name: Xiaojie Fan
Author-X-Name-First: Xiaojie
Author-X-Name-Last: Fan
Author-Name: Shiyong Zhao
Author-X-Name-First: Shiyong
Author-X-Name-Last: Zhao
Title: The Green Incentives and Green Bonds Financing under the Belt and Road Initiative
Abstract: 
 Since the proposal of the “Belt and Road” initiative, the concept of green development has been running through it. As an important part of green financial instruments, green bonds have become increasingly popular in recent years. This study takes the issuance of green bonds in China as the research object and examines the response of bond and stock market to the issuance of a green bond. The empirical results show that there are green incentives in the Chinese capital market. We also studied the economic impact of the Belt and Road Initiative on the issuance of green bonds. The results show that the Belt and Road Initiative reduces the cost of bond issuance. Our findings help to analyze the literature on the impact of ESG behavior on company performance and company value. Finally, the study made policy recommendations to improve the effectiveness of China’s green bonds and provide sustainable financial support for the “Belt and Road” initiative.
Journal: Emerging Markets Finance and Trade
Pages: 1430-1440
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1887726
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1887726
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Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Fong Pan
Author-X-Name-First: Wei-Fong
Author-X-Name-Last: Pan
Author-Name: Xinjie Wang
Author-X-Name-First: Xinjie
Author-X-Name-Last: Wang
Author-Name: Shixuan Wang
Author-X-Name-First: Shixuan
Author-X-Name-Last: Wang
Title: Measuring Economic Uncertainty in China†
Abstract: 
 This study develops a new economic uncertainty (EU) index based on Chinese newspapers to address the media coverage bias of existing measures. We investigate how the EU affects China’s macroeconomy. Our results suggest that the EU reduces aggregate output. We find that uncertainty predicts fluctuations in economic activity and actual economic activity also predicts EU, but nonlinearly. Furthermore, we show that uncertainty in the United States leads to uncertainty in China, implying that negative EU on the Chinese economy is coming from the U.S. Finally, we conduct some asset-pricing tests, showing that EU can predict stock returns and commands risk premium. Our results are helpful for both researchers and policymakers to stabilize the economy and financial markets in China.
Journal: Emerging Markets Finance and Trade
Pages: 1359-1389
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1873764
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1873764
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Template-Type: ReDIF-Article 1.0
Author-Name: Duc Nguyen Nguyen
Author-X-Name-First: Duc Nguyen
Author-X-Name-Last: Nguyen
Author-Name: Quynh-Nhu Tran
Author-X-Name-First: Quynh-Nhu
Author-X-Name-Last: Tran
Author-Name: Quang-Thai Truong
Author-X-Name-First: Quang-Thai
Author-X-Name-Last: Truong
Title: The Ownership Concentration − Innovation Nexus: Evidence From SMEs Around The World
Abstract: 
 This study investigates whether ownership concentration improves or impedes firm innovation using a sample of small and medium-sized enterprises (SMEs) spanning 95 countries worldwide. We find that higher ownership concentration is associated with a lower likelihood of introducing innovative activities. Further, results reveal that concentrated ownership has detrimental impacts on innovation for firms with a higher degree of asymmetric information and firms led by less experienced managers. We also show that the negative association between ownership concentration and innovation only exists for financially constrained firms (i.e., younger enterprises and SMEs with high financing obstacles) and those with the highly concentrated ownership structure. Lastly, evidence suggests that institutional development alleviates the negative impact of ownership concentration on innovation.
Journal: Emerging Markets Finance and Trade
Pages: 1288-1307
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2020.1870954
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1870954
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaolu Liu
Author-X-Name-First: Xiaolu
Author-X-Name-Last: Liu
Author-Name: Jidong Yang
Author-X-Name-First: Jidong
Author-X-Name-Last: Yang
Title: The Cost of Poor Institutions: Estimations Based on Chinese Firm Flows
Abstract: 
 This study estimates the cost of poor institutions using cross-provincial firm investments in China based on its unique land policies. We find that provinces with better institutions attract more firm investment and that institutions are substitutive with land price distortion. Firms with high (low) labor productivity move primarily between provinces with better (inferior) institutions. This stratification effect suggests that a poor institutional environment has dynamic costs, hindering technology diffusion from provinces with good institutions to those with poor institutions. The results imply that it is difficult to achieve industrial upgrades by factor price distortion rather than institutional environment improvements.
Journal: Emerging Markets Finance and Trade
Pages: 1308-1319
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1873126
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1873126
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Template-Type: ReDIF-Article 1.0
Author-Name: William Mbanyele
Author-X-Name-First: William
Author-X-Name-Last: Mbanyele
Author-Name: Fengrong Wang
Author-X-Name-First: Fengrong
Author-X-Name-Last: Wang
Title: Board Interlocks and Stock Liquidity: New Evidence from an Emerging Market
Abstract: 
 This study examines the implications of board interlocks on stock liquidity using a sample of listed Brazilian firms. The instrumental variable two-stage least squares estimation is used to minimize endogeneity concerns. This study provides evidence that board interlocks are positively related to stock liquidity. Our cross-sectional study findings reveal that the impact of board interlocks on stock liquidity is more pronounced for firms with high uncertainty, in competitive industries, and with poor governance. Our findings suggest that board interlocks aid businesses in accessing external capital from potential investors.
Journal: Emerging Markets Finance and Trade
Pages: 1415-1429
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1882988
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1882988
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Template-Type: ReDIF-Article 1.0
Author-Name: Yaya Li
Author-X-Name-First: Yaya
Author-X-Name-Last: Li
Author-Name: Yongli Li
Author-X-Name-First: Yongli
Author-X-Name-Last: Li
Author-Name: An Pan
Author-X-Name-First: An
Author-X-Name-Last: Pan
Author-Name: Xue Pan
Author-X-Name-First: Xue
Author-X-Name-Last: Pan
Author-Name: Eleonora Veglianti
Author-X-Name-First: Eleonora
Author-X-Name-Last: Veglianti
Title: The Network Structure Characteristics and Determinants of the Belt & Road Industrial Robot Trade
Abstract: 
 This study applies the social network analysis method and quadratic assignment procedure (QAP) model to explore the network structure characteristics and determinants of the Belt & Road industrial robot trade from 2001 to 2018. The results show that the Belt & Road industrial robot trade relationship shows a feature of “steady growth”, and the accessibility and trade efficiency of the intraregional trade are constantly improved. The Belt & Road industrial robot trade network has an obvious core-periphery structure. A few countries such as China, Turkey, and India occupy the core position, and more than half of the countries are weak semiperipheral countries and peripheral countries. The technical distance of industrial robots is the main factor that affects the development of the Belt & Road industrial robot trade network. Besides, a larger technical distance, a larger development distance of the manufacturing industry, a larger economic distance, a closer geographic distance and having a common language and culture are the factors that can promote the industrial robot trade. Moreover, policy recommendations are proposed according to the results.
Journal: Emerging Markets Finance and Trade
Pages: 1491-1501
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1897315
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1897315
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Template-Type: ReDIF-Article 1.0
Author-Name: Shufeng Li
Author-X-Name-First: Shufeng
Author-X-Name-Last: Li
Author-Name: Rui Huang
Author-X-Name-First: Rui
Author-X-Name-Last: Huang
Author-Name: Wenjie Huo
Author-X-Name-First: Wenjie
Author-X-Name-Last: Huo
Author-Name: Qijing Li
Author-X-Name-First: Qijing
Author-X-Name-Last: Li
Title: Does the Leadership of the Board of Directors Affect Corporate Performance? Based on the Empirical Research of China’s SMEs
Abstract: 
 This study takes the chairman as the starting point to study whether the chairman-CEO duality can affect the performance, with a sample of 3568 the board of directors of the listed company leadership characteristics and performance during 2008–2018 in NEEQ market. The results found that the chairman as CEO is conducive to improving the business performance. Through the sample study of enterprise size division, it is found that in small enterprises, the chairman as CEO has a more significant positive impact on business performance than in large enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 1456-1473
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1891881
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1891881
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Template-Type: ReDIF-Article 1.0
Author-Name: Qun Zhang
Author-X-Name-First: Qun
Author-X-Name-Last: Zhang
Author-Name: Jingde Chen
Author-X-Name-First: Jingde
Author-X-Name-Last: Chen
Author-Name: Peihui Zhang
Author-X-Name-First: Peihui
Author-X-Name-Last: Zhang
Author-Name: Hao Liu
Author-X-Name-First: Hao
Author-X-Name-Last: Liu
Title: How does the business cycle affect firm innovation? Evidence from China’s listed companies
Abstract: 
 This article investigates how the business cycle affects firm innovation performance by examining patent data for China’s listed companies from 2003 to 2017. The empirical results show that firms apply for more patents and receive more patent authorizations during economic recessions than during expansions. We uncover the mechanism underlying the countercyclical pattern of firm innovation performance by examining how the business cycle affects it through the moderating role of firm leverage while higher market concentration increases its sensitivity to the dynamics of the business cycle. We also find the more pronounced effect in state-owned firms and the positive effect of policy support on patent authorization performance, thus providing alternative explanations for the rise of firm innovation in China.
Journal: Emerging Markets Finance and Trade
Pages: 1390-1414
Issue: 5
Volume: 58
Year: 2022
Month: 04
X-DOI: 10.1080/1540496X.2021.1877132
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1877132
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Template-Type: ReDIF-Article 1.0
Author-Name: Haiyue Liu
Author-X-Name-First: Haiyue
Author-X-Name-Last: Liu
Author-Name: Yile Wang
Author-X-Name-First: Yile
Author-X-Name-Last: Wang
Author-Name: Lei Zhang
Author-X-Name-First: Lei
Author-X-Name-Last: Zhang
Title: The Herd Effect and Cross-Border Mergers and Acquisitions by Chinese Firms
Abstract: 
 An analysis of firm level data from 393 completed Chinese firm cross-border mergers and acquisitions (CMA) from 2002 to 2019 revealed that there was a herd effect in Chinese CMA activities. The heterogeneity factors in the host country effects on the herd index found that the political environment was a significant positive herd effect determinant and exchange rate volatility, openness degree, and cultural distances were negative determinants. This research sheds light on Chinese firm CMA decision-making, which could assist in the development of appropriate policies to assist firms achieve better performances.
Journal: Emerging Markets Finance and Trade
Pages: 1537-1549
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1903866
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1903866
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Template-Type: ReDIF-Article 1.0
Author-Name: Ya-Chi Lin
Author-X-Name-First: Ya-Chi
Author-X-Name-Last: Lin
Author-Name: Chan-Hui Lin
Author-X-Name-First: Chan-Hui
Author-X-Name-Last: Lin
Author-Name: Shin-Hui Chen
Author-X-Name-First: Shin-Hui
Author-X-Name-Last: Chen
Author-Name: Kuo-Chun Yeh
Author-X-Name-First: Kuo-Chun
Author-X-Name-Last: Yeh
Title: Youth’s Overseas Employment and Entrepreneurship: The Case of Taiwan
Abstract: 
 Taiwan’s brain drain has been a significant concern due to China’s strong economic drawing power, and the situation may have worsened over the past decade. In the literature, the causes and influence of human capital outflow are uncertain, but the outflow of younger workers can be a problem for the future domestic economic growth. This paper explores the determinants for Taiwan’s youth overseas employment and entrepreneurship using the questionnaire administered in 2015 for residents between 20–45 years old. A binary logit model and robustness tests investigate the push and pull factors directing Taiwan’s youth to go abroad. Corresponding to changes in Taiwan’s economic diplomatic policy, we focus on China (including the mainland, Hong Kong, and Macao) and Southeast Asia (including Australia, India, and other Oceanic economies) as the two main destination areas. The data do not show clear evidence to support Taiwan’s brain drain by 2016, especially in the case of employees with a master’s education or above in high tech and financial sectors. In contrast, personal considerations, such as broadening international vision and resolving career bottlenecks are more important influences for Taiwan’s youth to seek employment in China.
Journal: Emerging Markets Finance and Trade
Pages: 1667-1676
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1917362
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1917362
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Template-Type: ReDIF-Article 1.0
Author-Name: Fai Lim Loi
Author-X-Name-First: Fai Lim
Author-X-Name-Last: Loi
Author-Name: Zhuo Qiao
Author-X-Name-First: Zhuo
Author-X-Name-Last: Qiao
Title: The Effects of a Structural Reform on Corporate Outcomes in China: A Generalized Propensity Score Matching Approach
Abstract: 
 In March 2010, the China Securities Regulatory Commission (CSRC) launched a reform introducing both margin trading and short selling into China’s stock market. This paper examines the impact of this reform on corporate outcomes in the short run and long run. In our analysis, we adopt a generalized propensity score (GPS) matching method that allows treatment effects to change over time. Our empirical results not only indicate that the reform positively bolstered stock trading activities, but also constrained managers’ behavior, such as their method of earnings management. We think that disclosure policies adopted by managers can influence stock trading activities. This study has several important implications that policymakers might find useful. We provide evidence supporting the CSRC to allow more firms to join the reform.
Journal: Emerging Markets Finance and Trade
Pages: 1590-1601
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1904881
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1904881
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Template-Type: ReDIF-Article 1.0
Author-Name: Yahui Liu
Author-X-Name-First: Yahui
Author-X-Name-Last: Liu
Author-Name: Kunhai Du
Author-X-Name-First: Kunhai
Author-X-Name-Last: Du
Author-Name: Yugang Yin
Author-X-Name-First: Yugang
Author-X-Name-Last: Yin
Title: Do Analysts’ Social Ties Affect the Textual Information in Their Reports? Evidence from China
Abstract: 
 We develop insights into how analysts’ social ties affect their objectivity and the information content of reports, based on quantitative measures of social ties and textual information content. Using a sample ranges from January 2006 to December 2016 in China, we show that with wide social ties to fund managers, analysts’ ability to burnish their reputation with informative reports and to achieve career success with optimistic stock ratings is enhanced. Further evidence indicates that the trade-off between reputation and career success is dynamic. Specifically, after being elected as New Fortune stars, analysts attach more importance on textual information and are less subjective on stock ratings. These findings are robust across various robustness tests. Overall, our evidence highlights the role of social ties in the information-dissemination process in China A-share stock markets from the perspective of analysts and fund managers.
Journal: Emerging Markets Finance and Trade
Pages: 1615-1628
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1915277
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1915277
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Template-Type: ReDIF-Article 1.0
Author-Name: Seun Young Park
Author-X-Name-First: Seun Young
Author-X-Name-Last: Park
Author-Name: Soo Yeon Park
Author-X-Name-First: Soo Yeon
Author-X-Name-Last: Park
Title: Information Shock and Dividend Policy in Family-controlled Firms: Evidence from Korea
Abstract: 
 This paper aims to investigate whether the International Financial Reporting Standards (IFRS) used as an exogenous information shock relates to a firm’s dividend policy as a result of the improved information environment in the emerging Korean market. More specifically, utilizing a large sample of KOSPI-listed firms over the period 2000–2018, we examine whether the propensity and the level of dividend payments around the Korean IFRS (K-IFRS) adoption have changed and further how the family involvement affects such association. Our results show that firms tend to decrease the propensity and the level of dividend payments after the mandatory K-IFRS adoption. Moreover, we find that family-controlled firms have a significantly positive association with dividend payouts after the K-IFRS adoption. Our evidence can be shared with other emerging markets, where prevailing family firms have the characteristics of concentrated ownership and strong control power in an immature market with weak legal protection for outside shareholders.
Journal: Emerging Markets Finance and Trade
Pages: 1771-1793
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1926234
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1926234
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Template-Type: ReDIF-Article 1.0
Author-Name: Liu Yang
Author-X-Name-First: Liu
Author-X-Name-Last: Yang
Author-Name: Wanli Li
Author-X-Name-First: Wanli
Author-X-Name-Last: Li
Author-Name: Jiaming Li
Author-X-Name-First: Jiaming
Author-X-Name-Last: Li
Title: Confucianism and Earnings Management: Evidence from China
Abstract: 
 Using a sample of Chinese listed firms from 2007 to 2017, this paper examines the impact of Confucianism on earnings management. We find that Confucianism is significantly negatively associated with earnings management. Further analyses suggest that the inhibitory effect of Confucianism on earnings management is more pronounced when firms have weak monitoring mechanisms such as poorer corporate governance, lower institutional ownership, and less analyst coverage. Moreover, only Confucianism has a significant restraining effect on earnings management after controlling for both Confucianism and religion. Overall, our study not only contributes to the literature on earnings management from the perspective of informal systems but also deepens our understanding of the economic consequences of Confucianism at the firm-level.
Journal: Emerging Markets Finance and Trade
Pages: 1525-1536
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1900819
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1900819
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Template-Type: ReDIF-Article 1.0
Author-Name: Pin Wang
Author-X-Name-First: Pin
Author-X-Name-Last: Wang
Author-Name: Ali Zhou
Author-X-Name-First: Ali
Author-X-Name-Last: Zhou
Author-Name: Yi Wang
Author-X-Name-First: Yi
Author-X-Name-Last: Wang
Title: Corporate Tax Integrity and the Cost of Debt: Evidence from China
Abstract: 
 This study examines whether and how tax integrity affects the cost of debt. Whereas most previous studies capture firms’ trust indirectly, we capture a firm’s earned trust more directly by using its tax-paying credit rating as a proxy. We find that tax integrity is negatively related to the cost of debt. We also examine whether the firm ownership affects the relationship between a firm’s tax integrity and the cost of debt, and find a negative effect that is only significant for non-state-owned enterprises. Finally, we identify business risk as a channel through which tax integrity affects the cost of debt.
Journal: Emerging Markets Finance and Trade
Pages: 1702-1711
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1921731
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1921731
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhaohui Lou
Author-X-Name-First: Zhaohui
Author-X-Name-Last: Lou
Author-Name: Shujie Yao
Author-X-Name-First: Shujie
Author-X-Name-Last: Yao
Author-Name: Xinwen Zhang
Author-X-Name-First: Xinwen
Author-X-Name-Last: Zhang
Title: The Optimal Patent Portfolio of The Technology Standards Alliances in Innovation Competition
Abstract: 
 Unlike the dominant theories based on the rigid assumption that “technology standards must contain only essential patents”, this paper discusses the standard alliances that are engaged in their cumulative innovation. Its focus is particularly on a more realistic setting that a standard alliance should contain both the essential and the non-essential patents. We use the essential-patent’s ratio, which denotes the percentage of the essential patents in the total patents in a standard, as the cumulative innovation model’s core variable. The mathematical analysis illustrates that the essential-patent’s ratio performs an important role in the arguments’ standards. There is an optimal portfolio that maximizes the alliances’ efficiency in an innovation competition. It implies that the social welfare effects depend on the dynamic trade-off between the long-term technical gap caused by the technological upgrades’ missing opportunities and the short-term welfare losses that consumers may suffer. The patents’ and antitrust laws should tolerate a certain number of non-essential patents being contained by the technology standards.
Journal: Emerging Markets Finance and Trade
Pages: 1794-1805
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1918544
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1918544
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Template-Type: ReDIF-Article 1.0
Author-Name: Shuangyan Li
Author-X-Name-First: Shuangyan
Author-X-Name-Last: Li
Author-Name: Anum Shahzadi
Author-X-Name-First: Anum
Author-X-Name-Last: Shahzadi
Author-Name: Genfu Feng
Author-X-Name-First: Genfu
Author-X-Name-Last: Feng
Title: Top Executives’ Multi-Background and M&A Decisions: Evidence from Chinese-Listed Firms
Abstract: 
 This paper investigates the effect of top executives’ multi-background, namely political, financial, and academic backgrounds on firms’ M&A decisions. Using data on M&A deals of Chinese listed firms from 2008 to 2018. The results show that top executives with political links are more likely to be involved in a firm’s M&A activities. Executives’ financial background has little impact on M&A decisions except that those executives having working experience in policy banks promote M&A. Executives with a broader academic background are less likely to undertake M&A. We further check the moderating effect of state ownership between executives’ backgrounds and M&A decisions and find that their backgrounds have a stronger impact on M&A decisions in SOEs than that in non-SOEs. Our main results are robust after considering firms’ geographic location and the policy effect of 2008 during the global financial crisis. Overall, our findings suggest that executives’ political, financial, and academic backgrounds play different but significant roles in making M&A decisions.
Journal: Emerging Markets Finance and Trade
Pages: 1602-1614
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1908257
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1908257
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenhui Jiang
Author-X-Name-First: Wenhui
Author-X-Name-Last: Jiang
Author-Name: Hai Zhang
Author-X-Name-First: Hai
Author-X-Name-Last: Zhang
Author-Name: Yuanyuan Lin
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Lin
Title: Trade Sustainability and Efficiency under the Belt and Road Initiative: A Stochastic Frontier Analysis of China’s Trade Potential at Industry Level
Abstract: 
 This study calculates the export trade potential and trade efficiency of China to countries along the Belt and Road within the HS 2-digit code sectors; the influencing factors are also analyzed using the one-step method. The stochastic frontier gravity model is applied on a dataset including 35 countries during 2009–2017. The results indicated that the trade resistance of China’s export to countries along the Belt and Road has increased over time, while there is still huge trade potential at various industries. Moreover, trade efficiency is high in mechanical and electrical products, iron or steel articles, and furniture and bedding. Low-efficiency products include live animals, cork, vegetable plaiting materials, tin, and arms. To further improve the trade efficiency, it is necessary to strengthen the cooperation with the countries along the Belt and Road in infrastructure construction and investment based on the free trade area. These findings have great significance for the sustainable and high-quality development of the Belt and Road initiative.
Journal: Emerging Markets Finance and Trade
Pages: 1740-1752
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1925246
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1925246
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Template-Type: ReDIF-Article 1.0
Author-Name: Shan Lu
Author-X-Name-First: Shan
Author-X-Name-Last: Lu
Author-Name: Yu Wang
Author-X-Name-First: Yu
Author-X-Name-Last: Wang
Author-Name: Xueyong Liu
Author-X-Name-First: Xueyong
Author-X-Name-Last: Liu
Author-Name: Cheng Jiang
Author-X-Name-First: Cheng
Author-X-Name-Last: Jiang
Title: Multi-layer and Parallel-connected Graph Convolutional Networks for Detecting Debt Default in P2P Networks
Abstract: 
 This paper presents a multilayer and parallel-connected graph convolutional networks (MPGCNs) method to explore whether a debtor–creditor relationship network helps to detect the default risk in peer-to-peer (P2P) lending. Results show that: (1) The debtor–creditor relationship network reflects lenders’ risk preference and borrowers’ successful loan information. (2) The proposed MPGCNs method can detect default risk accurately. Therefore, considering the structure of the debtor–creditor relationship network is helpful for P2P lending regulators and government supervisors to control risk.
Journal: Emerging Markets Finance and Trade
Pages: 1688-1701
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1921730
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1921730
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Template-Type: ReDIF-Article 1.0
Author-Name: Tian Wen
Author-X-Name-First: Tian
Author-X-Name-Last: Wen
Author-Name: Ping Li
Author-X-Name-First: Ping
Author-X-Name-Last: Li
Author-Name: Yunbi an
Author-X-Name-First: Yunbi
Author-X-Name-Last: an
Title: Information Transmission between China’s IH and SGX FTSE A50 Stock Index Futures Markets: The Role of Trading Restrictions
Abstract: 
 After China’s stock market crash in 2015, the Chinese government imposed a series of trading restrictions on the stock index futures market. This paper examines how the relative informational role of China’s IH stock index futures and the SGX FTSE China A50 index futures varies when market trading mechanisms are subject to these major changes. We find that imposing the trading restrictions on IH futures substantially undermines their role in price discovery and volatility spillover, and renders them more susceptible to the fluctuations of A50 futures. Importantly, even after the trading restrictions are greatly eased at a later date, the importance of IH futures in price discovery and volatility spillover relative to that of A50 futures remains at a level much lower than before. Changes in liquidity and trading volumes imply that imposing the trading restrictions on IH futures drives investors to flee the IH futures market, but relaxing these restrictions is not able to attract investors back, making it difficult for IH futures to resume its important role in information transmission.
Journal: Emerging Markets Finance and Trade
Pages: 1639-1650
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1917360
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1917360
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhiqiang Lu
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Lu
Author-Name: Junjie Wu
Author-X-Name-First: Junjie
Author-X-Name-Last: Wu
Author-Name: Hongyu Li
Author-X-Name-First: Hongyu
Author-X-Name-Last: Li
Author-Name: Duc Khuong Nguyen
Author-X-Name-First: Duc Khuong
Author-X-Name-Last: Nguyen
Title: Local Bank, Digital Financial Inclusion and SME Financing Constraints: Empirical Evidence from China
Abstract: 
 This paper investigates the impact of local banks and digital financial inclusion on Small and Medium-sized Enterprise (SME) financing constraints. Using data from Chinese SMEs for the period 2007–2017, our robust results find that (1) SMEs’ financing constraints are negatively associated with the proportion of local bank branches and the degree of digital financial inclusion; (2) the effect of local banks is more pronounced for firms which are small, transparent, and located in the regions less dependent on bank credit; and (3) local bank branches and digital financial inclusion have a substitution effect on alleviating SMEs’ financial constraints. The findings shed light on how digital finance technologies could influence traditional SME-bank relationships and have important policy and managerial implications.
Journal: Emerging Markets Finance and Trade
Pages: 1712-1725
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1923477
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1923477
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaohui He
Author-X-Name-First: Xiaohui
Author-X-Name-Last: He
Author-Name: Min Xiao
Author-X-Name-First: Min
Author-X-Name-Last: Xiao
Title: Customer Information Disclosure and Collateral Loan: Evidence from Chinese Listed Companies
Abstract: 
 How supply chain information can help a company is given considerable attention by academic and practical circles. As boosting in the Chinese capital market, there is a higher demand for loans. Our study uses 2007–2017 Chinese listed company data to study whether information about major customers affecting the company’s reliance on collateral loan, which reflects the incremental value for banks assessing credit risks. The results found that the detailed customer information disclosed by the company can send positive signals to the bank of a high-quality information environment and reduce its dependence on collateral loans. While customer concentration is one of the credit risk factors for banks, which increases the company’s dependence on collateral loans instead. Further research found that a benign customer relationship can alleviate the risk effect brought by customer concentration.
Journal: Emerging Markets Finance and Trade
Pages: 1515-1524
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1898943
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1898943
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Template-Type: ReDIF-Article 1.0
Author-Name: Federico Mejía-Posada
Author-X-Name-First: Federico
Author-X-Name-Last: Mejía-Posada
Author-Name: Diana C. Restrepo-Ochoa
Author-X-Name-First: Diana C.
Author-X-Name-Last: Restrepo-Ochoa
Author-Name: Juan E. Isaza
Author-X-Name-First: Juan E.
Author-X-Name-Last: Isaza
Title: Do Investors React to Terrorism and Peace in Colombia?
Abstract: 
 This paper studies the impact of terrorist attacks on the returns and volatility of Colombian stock returns using an event study methodology in a GARCH model framework. It also investigates the impact of the 2016 peace accord between the Colombian government and the FARC, an army of leftist narco-guerrillas, on the same characteristics of the financial market. Results show that the COLCAP index, a market-capitalization weighted index that includes the 25 most liquid stocks listed in the Colombia’s stock exchange, has a significant negative abnormal return of 0.1% 1 day after a bombing attack occurs, that continues to accumulate down to −0.18% 3 days after. Furthermore, events associated with the peace accord, exhibit a significant positive abnormal return of 0.58% on the event date that continues to accumulate up to 1.02% the day after. In addition, cumulative abnormal volatility (CAV) is statistically insignificant both after terrorist attacks and peace-associated events.
Journal: Emerging Markets Finance and Trade
Pages: 1550-1565
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1903867
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1903867
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Template-Type: ReDIF-Article 1.0
Author-Name: Bofu Deng
Author-X-Name-First: Bofu
Author-X-Name-Last: Deng
Author-Name: Li Ji
Author-X-Name-First: Li
Author-X-Name-Last: Ji
Author-Name: Zhongmin Liu
Author-X-Name-First: Zhongmin
Author-X-Name-Last: Liu
Title: The Effect of Strategic Corporate Social Responsibility on Financial Performance: Evidence from China
Abstract: 
 This study uses the perspective of corporate strategy to examine the relationship between corporate social responsibility and corporate financial performance in China. Following the theoretical business strategy framework and resource-based theory, we adopt the ordinary least squares method to conduct a multiple regression analysis of the relationship between CSR and CFP under different strategy types. We find that for prospectors, CSR is positively correlated with CFP. However, for defenders, it is negatively correlated. Our results remain robust after a series of robustness tests and controlling endogeneity. Our findings help to explain the inconsistent results obtained in the literature, extend our understanding of CSR and the consequences of corporate strategy, and provide a reference for international investors and emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 1726-1739
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1925245
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1925245
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Template-Type: ReDIF-Article 1.0
Author-Name: Gloria Claudio-Quiroga
Author-X-Name-First: Gloria
Author-X-Name-Last: Claudio-Quiroga
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Andoni Maiza-Larrarte
Author-X-Name-First: Andoni
Author-X-Name-Last: Maiza-Larrarte
Title: The Impact of China’s FDI on Economic Growth: Evidence from Africa with a Long Memory Approach
Abstract: 
 This paper deals with the relationship between Foreign Direct Investment from China in Africa and the growth level in five African countries. Based on the high degrees of persistence observed in the data, we use techniques based on long memory models, and our results indicate that of the five countries examined, namely Kenya, Zimbabwe, Zambia, Nigeria and South Africa, only for Nigeria do we find a significant positive relationship between the two variables though under some assumptions, this evidence is also found in the cases of Kenya and South Africa. Several arguments are put forward at the end of the article to justify these results.
Journal: Emerging Markets Finance and Trade
Pages: 1753-1770
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1926233
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1926233
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Template-Type: ReDIF-Article 1.0
Author-Name: Li Du
Author-X-Name-First: Li
Author-X-Name-Last: Du
Author-Name: Xuesong Qian
Author-X-Name-First: Xuesong
Author-X-Name-Last: Qian
Title: Nexus of Interest Rate Liberalization and Loan Pricing: Evidence from Entrusted Loans in China
Abstract: 
 Using a sample of entrusted loans, a typical type of shadow banking in China, from 2008 to 2017, we examine the impact of interest rate liberalization on loan pricing applying a different-in-difference approach. We find that the spreads of private and non-equity affiliated enterprises have decreased significantly with interest rate liberalization. The effect of the liberalization process is also heterogeneous, considerably reducing the spread of financially constrained entities and those who are located in financially developed provinces. This study will help to evaluate the interest rate liberalization reform and provide new evidence on loan pricing of shadow banking.
Journal: Emerging Markets Finance and Trade
Pages: 1566-1577
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1903868
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1903868
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Template-Type: ReDIF-Article 1.0
Author-Name: Qiong Zhou
Author-X-Name-First: Qiong
Author-X-Name-Last: Zhou
Author-Name: Yanling Lian
Author-X-Name-First: Yanling
Author-X-Name-Last: Lian
Author-Name: Tiancheng Hu
Author-X-Name-First: Tiancheng
Author-X-Name-Last: Hu
Title: The Role of Top Management Team in Oversea Location Choice: Evidence from Chinese Firms’ Investments in European Industrial Clusters
Abstract: 
 This article investigates the role of firm’s top management team (TMT) in its location strategy in oversea investment decision. From the perspective of the upper-echelon theory and knowledge-based view, we study how knowledge-related characteristics of TMTs, such as education background, foreign experience and R&D experience affect the firm’s oversea location choice to invest in an industrial cluster. Using data of OFDI cases from Chinese firms to European sub-national regions from 2006 to 2016, we find that: (1) TMT’s education background has a positive effect on firm’s OFDI decision in industrial clusters; (2) TMT’s foreign experience has a positive effect on firm’s OFDI decision in industrial clusters; (3) TMT’s R&D background increases the firm’s likelihood to invest in industrial clusters. Our findings provide implications related to the effects of TMT characteristics on emerging market firms’ oversea investment activities.
Journal: Emerging Markets Finance and Trade
Pages: 1677-1687
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1920392
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1920392
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Template-Type: ReDIF-Article 1.0
Author-Name: Chengda Liu
Author-X-Name-First: Chengda
Author-X-Name-Last: Liu
Author-Name: Hui Liu
Author-X-Name-First: Hui
Author-X-Name-Last: Liu
Title: Can Trustees Be Trusted? Relation Between Corporate Bond Trustees and Credit Spreads
Abstract: 
 To protect the interest of the investors, the corporate bond market in China has implemented a trustee system. However, before the first bond default happened in 2014, implicit government guarantee for the issuers ensured a market with zero default. In recent years, the rising amount of corporate bond defaults has ignited concerns about the credit risk and brings China’s underdeveloped trustee system to authorities’ attention. Based on the textual content of the trustee reports from 2013 to 2018, this paper examines the association between the textual content of trustee reports and the credit spreads. Results show that the extent of risk disclosure in trustee reports is positively correlated with the credit spreads. Furthermore, a higher positivity of the trustee reports is associated with lower credit spreads. These results reveal the monitoring and informational role of the trustees in China. Also, incremental explanatory power of the trustees lends support for improving corporate bond risk management.
Journal: Emerging Markets Finance and Trade
Pages: 1651-1666
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1917361
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1917361
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoxia Liu
Author-X-Name-First: Xiaoxia
Author-X-Name-Last: Liu
Author-Name: Jinyun Yang
Author-X-Name-First: Jinyun
Author-X-Name-Last: Yang
Author-Name: Ran Di
Author-X-Name-First: Ran
Author-X-Name-Last: Di
Author-Name: Minghui Li
Author-X-Name-First: Minghui
Author-X-Name-Last: Li
Title: CFO Tenure and Classification Shifting: Evidence from China
Abstract: 
 Little is known about the effect of CFO (chief financial officer) tenure and earnings management using classification shifting. Based on upper echelons theory, this paper empirically investigates the impact of CFO tenure on classification shifting using data on Chinese A-share listed companies from 2009 to 2015. The results show that CFO tenure is negatively related to classification shifting, indicating that CFOs with longer tenures can mitigate the classification shifting behavior. Further tests show that firms have higher levels of classification shifting when CFOs are in the early or final years of their tenure. This research helps to understand the relationship between CFO tenure and earnings management.
Journal: Emerging Markets Finance and Trade
Pages: 1578-1589
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1904879
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1904879
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Template-Type: ReDIF-Article 1.0
Author-Name: Seungho Lee
Author-X-Name-First: Seungho
Author-X-Name-Last: Lee
Author-Name: Chong-Sup Kim
Author-X-Name-First: Chong-Sup
Author-X-Name-Last: Kim
Title: The Impact of Deep Preferential Trade Agreements on (Global Value Chain) Trade: Who Signs Them Matters
Abstract: 
 This paper investigates the impact of deep preferential trade agreements (PTAs) on total and global value chain (GVC) trade flows. We employ an augmented gravity equation that includes three-dimensional fixed effects, using a panel dataset covering the 1995–2015 period that includes newly available data for the policy areas covered by existing PTAs. Results show that the presence of PTAs has an overall positive impact on (GVC) trade flows and that deep PTAs are more effective in increasing (GVC) trade flows than shallow PTAs. These results confirm the need to consider the heterogeneity of agreements when estimating the effect of PTAs on (GVC) trade flows. However, the channels through which deep integration influences (GVC) trade flows differ across PTA signatories. We find that the heterogeneous effects of deep PTAs across the income level and geographical origin of bilateral signatories are driven by different groups of provisions in PTA agreements.
Journal: Emerging Markets Finance and Trade
Pages: 1629-1638
Issue: 6
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1917359
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1917359
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Template-Type: ReDIF-Article 1.0
Author-Name: Brian Yutao Wang
Author-X-Name-First: Brian Yutao
Author-X-Name-Last: Wang
Author-Name: Chongluan Lu
Author-X-Name-First: Chongluan
Author-X-Name-Last: Lu
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Author-Name: Haishan Yu
Author-X-Name-First: Haishan
Author-X-Name-Last: Yu
Title: Majority Shareholders’ Stock Sales, Dual Agency Conflicts, and Management Earnings Forecasts
Abstract: 
 This paper examines whether and how stock sales by majority shareholders in China affect the management earnings forecasts (MEFs) of listed firms. It shows that managers choose the type of disclosure, the timing, and the forecast characteristics to help majority shareholders sell their stocks for higher profits. The findings imply that the selected characteristics of MEFs matched with the majority stockholders’ stock sales decrease the quality of information disclosure and reduce the efficiency of capital allocation in Chinese capital market.
Journal: Emerging Markets Finance and Trade
Pages: 1883-1897
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1939670
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1939670
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Template-Type: ReDIF-Article 1.0
Author-Name: Junjie Wang
Author-X-Name-First: Junjie
Author-X-Name-Last: Wang
Author-Name: Chen Liu
Author-X-Name-First: Chen
Author-X-Name-Last: Liu
Author-Name: Yichen Pan
Author-X-Name-First: Yichen
Author-X-Name-Last: Pan
Author-Name: Siyi Liu
Author-X-Name-First: Siyi
Author-X-Name-Last: Liu
Title: Geographical Dispersion and Investment Efficiency
Abstract: 
 Our study reconciles the mixed effects of geographical dispersion within corporations on investment efficiency based on listed firms in China from 2007–2019. The results show that geographical dispersion of subsidiaries can effectively improve the overall investment efficiency for the corporation, which support the hypothesis of mitigating the attenuation effect of operating distance. Then, we carry out cross-sectional tests from the perspectives of information transfer costs and institutional differences. The results show that the above influence is more significant when either the parent and subsidiary firms are not located in the high-spee5d rail network or the institutional background difference between the parent and subsidiary firms is big. After controlling the endogenous problem and measurement error, the baseline results remain the same. Furthermore, we verify the inverted U-shaped relationship between geographical dispersion and investment efficiency. The conclusions not only supplement the related literature on geographical distance and investment efficiency, but also provide important inspiration for management, policy makers.
Journal: Emerging Markets Finance and Trade
Pages: 1848-1859
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1938536
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1938536
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:1848-1859



Template-Type: ReDIF-Article 1.0
Author-Name: Jingjing Tang
Author-X-Name-First: Jingjing
Author-X-Name-Last: Tang
Author-Name: Haijian Zeng
Author-X-Name-First: Haijian
Author-X-Name-Last: Zeng
Author-Name: Fangying Pang
Author-X-Name-First: Fangying
Author-X-Name-Last: Pang
Author-Name: Lanke Huang
Author-X-Name-First: Lanke
Author-X-Name-Last: Huang
Title: Military Political Connection and Firm Value—Empirical Evidence from a Natural Experiment in Thailand
Abstract: 
 This paper uses the exogenous shock- Thailand military coup on May 22, 2014-as a natural experiment to test the impact of military political connections on the value of Thai’s listed firms. Results show that the military coup will bring significant benefits to the share price of listed firms with military political connections. Moreover, the DID estimations show that the military rule can significantly increase the Tobin’s Q of military political affiliates after the military coup. The main influential mechanism is that, after the military is in power, the listed firms will hire personnel with military background to enter the management. This move will bring long-term financing convenience to the military politically connected firms and enable them to use more funds to capital investment and R & D activities.
Journal: Emerging Markets Finance and Trade
Pages: 1898-1912
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1944852
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1944852
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Template-Type: ReDIF-Article 1.0
Author-Name: Levent Erdoğan
Author-X-Name-First: Levent
Author-X-Name-Last: Erdoğan
Author-Name: Reşat Ceylan
Author-X-Name-First: Reşat
Author-X-Name-Last: Ceylan
Author-Name: Mutawakil Abdul-Rahman
Author-X-Name-First: Mutawakil
Author-X-Name-Last: Abdul-Rahman
Title: The Impact of Domestic and Global Risk Factors on Turkish Stock Market: Evidence from the NARDL Approach
Abstract: 
 The study investigates the short-run and long-run asymmetric effects of the global economic policy uncertainty, real oil prices, and country-specific geopolitical risk on real stock returns in Turkey by using the nonlinear autoregressive distributed lag (NARDL) framework over the pre-COVID-19 period of 1997:01–2019:12 and full-sample period of 1997:01–2020:12. The empirical findings indicate the following results. Firstly, global economic policy uncertainty leads to depress real stock returns for both sample periods. Secondly, negative real oil price changes, in the long run, have relatively greater effects compare to positive changes on real stock returns, whereas positive oil price changes affect negatively in the short-run for the full-sample period. Thirdly, the country-specific geopolitical risk exerts positive effects on the real stock returns in the long run for both periods. The overall results suggest that the Turkish real stock returns react more to the bad news caused by the global factors than the domestic one.
Journal: Emerging Markets Finance and Trade
Pages: 1961-1974
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1949282
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1949282
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:1961-1974



Template-Type: ReDIF-Article 1.0
Author-Name: Hyunjin Oh
Author-X-Name-First: Hyunjin
Author-X-Name-Last: Oh
Author-Name: Jinha Park
Author-X-Name-First: Jinha
Author-X-Name-Last: Park
Author-Name: Bumjoon Kim
Author-X-Name-First: Bumjoon
Author-X-Name-Last: Kim
Title: Managerial Ability and Bond Rating: A Focus on Controlling Shareholders’ Ownership Structure
Abstract: 
 Although managerial ability is important for credit risk assessment, it is unclear whether local credit rating agencies consider it an independent risk factor. We examine how Korean agencies evaluate the impact of managerial ability on bond rating depending on controlling shareholders’ ownership structure. We identify controlling shareholders using family-owned businesses (chaebols). The results show that the positive effect of managerial ability on bond rating is diminished in chaebol firms, especially those with a high control–ownership wedge, compared to non-chaebol firms. These findings suggest that managerial ability carries higher weight in the rating process for firms with better ownership structure.
Journal: Emerging Markets Finance and Trade
Pages: 2093-2107
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1995349
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1995349
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Template-Type: ReDIF-Article 1.0
Author-Name: Yukun Pan
Author-X-Name-First: Yukun
Author-X-Name-Last: Pan
Author-Name: Rui Zhao
Author-X-Name-First: Rui
Author-X-Name-Last: Zhao
Title: Does Mandatory Disclosure of CSR Reports Affect Accounting Conservatism? Evidence from China
Abstract: 
 Using China’s mandatory CSR reporting program as a quasi-experiment, we examine the changes in accounting conservatism in an emerging market setting and find that the implementation of mandatory CSR policy significantly decreased accounting conservatism among firms that are required to release CSR reports. Further analyses reveal that this effect is driven by stakeholders’ concern about information asymmetry and that CSR engagement helps improve a firm’s information environment and lower the information gap. Moreover, we demonstrate that mandatory CSR reporting benefits more for firms with weaker corporate governance and greater information asymmetry. Our results hold after considering the entropy balance, a modified sample, an alternative sample period, and an alternative measure of accounting conservatism while controlling for the effect of confounding events. Overall, these findings provide evidence regarding the consequences of mandatory CSR reporting to financial reports, especially in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 1975-1987
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1949283
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1949283
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhi-fang Su
Author-X-Name-First: Zhi-fang
Author-X-Name-Last: Su
Author-Name: Yi-zheng Fu
Author-X-Name-First: Yi-zheng
Author-X-Name-Last: Fu
Author-Name: Mei-Yuan Chen
Author-X-Name-First: Mei-Yuan
Author-X-Name-Last: Chen
Title: Impacts of a Gender Ratio Change on China’s Wage Income Distributions
Abstract: 
 This study examines the possible effects of a gender ratio change on China’s wage income distributions with the unconditional quantile estimation. Using data from the China Health and Nutrition Survey for 1989–2011, the unconditional wage income distributions before and after a change in gender ratio are studied graphically. The estimated wage income density functions are confirmed to be skewed to the right and leptokurtic. An increase in gender ratio increases wage income and mitigate wage income inequality. We conclude that, other things being equal, the decreasing trend in gender ratio will enhance the wage income inequality.
Journal: Emerging Markets Finance and Trade
Pages: 2066-2078
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1956899
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1956899
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:2066-2078



Template-Type: ReDIF-Article 1.0
Author-Name: James Nguyen
Author-X-Name-First: James
Author-X-Name-Last: Nguyen
Author-Name: Richard Parsons
Author-X-Name-First: Richard
Author-X-Name-Last: Parsons
Title: A Study of Market Efficiency in Emerging Markets Using Improved Statistical Techniques
Abstract: 
 This article helps resolve the current unsatisfying and inclusive studies covering the efficiency of stock markets in developing countries. Previous studies have used limited data and partial statistical tests. We use a large, unique data set, across 12 countries, and a comprehensive set of traditional and recent statistical methods as well as powerful multiple-break unit root and spectral analysis tests, many of which have never been used to evaluate the efficient market hypothesis (EMH) in emerging markets. Our results confirm the rejection of the EMH for emerging markets. Our findings have important implications for investors and policy makers, suggesting the possibility for excess profits in these markets.
Journal: Emerging Markets Finance and Trade
Pages: 2004-2016
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1949981
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1949981
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:2004-2016



Template-Type: ReDIF-Article 1.0
Author-Name: Tingting Ni
Author-X-Name-First: Tingting
Author-X-Name-Last: Ni
Author-Name: Xinyue Wang
Author-X-Name-First: Xinyue
Author-X-Name-Last: Wang
Author-Name: Yuetang Wang
Author-X-Name-First: Yuetang
Author-X-Name-Last: Wang
Title: How Do Tax Incentives Lead to Investment Shifting? Evidence from China
Abstract: 
 Corporate VAT planning, though difficult to observe, has become more prominent. By considering the Chinese VAT transition as an external policy shock, this article adopts a difference-in-difference model to study this issue for the period 2006–2009. The results indicate that companies, in particular companies with high financing constraints and low type I agency costs, had investment-shifting behavior, so as to reduce the tax burden. Compared with agency costs, financing constraints have a greater influence on firms’ shifting. Further, the market has a positive attitude toward shifting of high financing constraints companies, but a negative attitude toward that of high agency costs companies.
Journal: Emerging Markets Finance and Trade
Pages: 2079-2092
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1956900
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1956900
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:2079-2092



Template-Type: ReDIF-Article 1.0
Author-Name: Xinting Li
Author-X-Name-First: Xinting
Author-X-Name-Last: Li
Author-Name: Baochen Yang
Author-X-Name-First: Baochen
Author-X-Name-Last: Yang
Author-Name: Yunpeng Su
Author-X-Name-First: Yunpeng
Author-X-Name-Last: Su
Author-Name: Yawei Qi
Author-X-Name-First: Yawei
Author-X-Name-Last: Qi
Author-Name: Yunbi An
Author-X-Name-First: Yunbi
Author-X-Name-Last: An
Title: Macro Factors and Bond Returns in China
Abstract: 
 As a central issue in macro-finance studies, the spanning hypothesis has always been the focus of research. Previous studies have focused on whether this hypothesis holds true in developed markets, while paying little attention to that in emerging markets. Because of their unique monetary systems, governments in most emerging markets play a key role in bond returns. This study identifies macroeconomic factors for forecasting excess returns in emerging government bond markets under spanning hypothesis. We find that in previous research, government intervention factors employed in excess returns forecasting have no additional predictive ability, as they are already incorporated in current yields. Using dynamic factor analysis, we find that macroeconomic information, including pure macroeconomic activities and financial factors, has robust incremental predictive power for in-sample and out-of-sample bond excess returns.
Journal: Emerging Markets Finance and Trade
Pages: 1871-1882
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1941860
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1941860
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:1871-1882



Template-Type: ReDIF-Article 1.0
Author-Name: Başak Tanyeri
Author-X-Name-First: Başak
Author-X-Name-Last: Tanyeri
Author-Name: Tanseli Savaser
Author-X-Name-First: Tanseli
Author-X-Name-Last: Savaser
Author-Name: Naime Usul
Author-X-Name-First: Naime
Author-X-Name-Last: Usul
Title: The Stock and CDS Market Consequences of Political Uncertainty: The Arab Spring
Abstract: 
 We investigate how political unrest affects asset prices in the context of the Arab Spring. Abnormal returns in the major stock-market indices of Arab Spring countries average −1.1% on key days of Arab Spring and abnormal changes in credit default spreads average 1.4%. There is significant reaction to region wide as well as local protests indicating a spillover with protests in neighboring countries affecting investors’ perception of local political instability and the pricing of assets. Once protests start locally, investors start paying more attention to what is happening at home than in the region. The significant stock market reaction to region-wide protests in Arab Spring countries indicates a spill-over where investors price an increase in the probability of political turmoil in one country when there are protests in neighboring countries. The decline in stock market indices coupled with the increase in credit default spreads indicates that investors anticipate and ex-ante price how current political uncertainty will affect firm value.
Journal: Emerging Markets Finance and Trade
Pages: 1821-1837
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1937116
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1937116
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:1821-1837



Template-Type: ReDIF-Article 1.0
Author-Name: Xuelian Li
Author-X-Name-First: Xuelian
Author-X-Name-Last: Li
Author-Name: Yuxin Xie
Author-X-Name-First: Yuxin
Author-X-Name-Last: Xie
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: Life Insurance Policy Loans, Technology Choices, and Strategic Asset-liability Matching Management
Abstract: 
 We develop a two-stage contingent claim model to evaluate a life insurer’s equity. The model sequentially determines the optimal guaranteed rate and the optimal technology choice for strategic asset-liability matching management. We show that increases in policy loans decrease the insurance businesses at a reduced guaranteed rate. The shrinking life insurance businesses discourage the insurer from using advanced technology. However, we find that an increase in advanced technology involvement enhances insurance businesses at an increased guaranteed rate. An increase in the policy loan also increases the policyholder protection when considering the optimal guaranteed rate and technology choice strategies.
Journal: Emerging Markets Finance and Trade
Pages: 1838-1847
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1937117
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1937117
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:1838-1847



Template-Type: ReDIF-Article 1.0
Author-Name: Zheng Lei
Author-X-Name-First: Zheng
Author-X-Name-Last: Lei
Author-Name: Guo Xuemeng
Author-X-Name-First: Guo
Author-X-Name-Last: Xuemeng
Author-Name: Fu Xiangfei
Author-X-Name-First: Fu
Author-X-Name-Last: Xiangfei
Title: How Does Analyst Coverage Affect Corporate Social Responsibility? Evidence from China
Abstract: 
 Using archival data of Chinese A-share listed companies from 2009 to 2018, this article examines the influence of analyst coverage on corporate social responsibility (hereinafter refer as CSR) performance. Main results suggest that sell-side analysts can significantly promote Chinese listed companies’ CSR activities. Several robustness tests are employed and proved the solidity of main conclusions. Mechanism tests show that the investor recognition channel plays a dominant role in explaining the positive effect of analyst coverage. Additional analysis further illustrates that stock exchanges’ regulatory practices concerning firms’ CSR activities can strengthen the investor recognition channel.
Journal: Emerging Markets Finance and Trade
Pages: 2036-2049
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1952071
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1952071
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:2036-2049



Template-Type: ReDIF-Article 1.0
Author-Name: Jinghua Wang
Author-X-Name-First: Jinghua
Author-X-Name-Last: Wang
Author-Name: Ning Mao
Author-X-Name-First: Ning
Author-X-Name-Last: Mao
Title: Does Financialization of Non-Financial Corporations Promote or Prohibit Corporate Risk-Taking?
Abstract: 
 We investigate how the financialization of nonfinancial corporations (NFCs) affects corporate risk-taking. We find that NFCs’ financialization has an adverse effect on corporate risk-taking, supporting the “crowding-out” effect. Short-term financial investments undermine firms’ incentives to chase risky but profitable investment projects. The negative association between NFCs’ financialization and corporate risk-taking is more pronounced in state-owned enterprises and firms with lower institutional ownership, showing that financialization leads managers to become more myopic and reduce long-term investments. Further, the sensitivity of financialization and corporate risk-taking varies with financial asset classification. We address both selection and endogeneity concerns.
Journal: Emerging Markets Finance and Trade
Pages: 1913-1924
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1944853
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1944853
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:1913-1924



Template-Type: ReDIF-Article 1.0
Author-Name: Donghyun Park
Author-X-Name-First: Donghyun
Author-X-Name-Last: Park
Author-Name: Arief Ramayandi
Author-X-Name-First: Arief
Author-X-Name-Last: Ramayandi
Author-Name: Shu Tian
Author-X-Name-First: Shu
Author-X-Name-Last: Tian
Title: Debt Buildup and Currency Vulnerability: Evidence from Global Markets
Abstract: 
 Debts have risen rapidly since the global financial crisis. While the literature acknowledges that rapid debt buildups can harm the economy and exacerbate recessions, their impact on currency vulnerability is still empirically under-investigated. This study examines how public and private debt buildups are related to currency depreciation pressure by analyzing the evidence from 59 advanced and emerging markets. Our results suggest that both private and public debt exacerbates currency vulnerability, but the effect of private debt is more robust and consistently significant. We also find that excessive private debt buildup is more harmful in emerging markets, and greater dependence on external financing exacerbates the impact of debt buildup on currency stress. Overall, the evidence highlights the importance of a comprehensive debt surveillance framework that monitors both public and private debt buildup, especially in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 2017-2035
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1949982
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1949982
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:2017-2035



Template-Type: ReDIF-Article 1.0
Author-Name: Li-Jun Liu
Author-X-Name-First: Li-Jun
Author-X-Name-Last: Liu
Author-Name: Jing-qi Zhang
Author-X-Name-First: Jing-qi
Author-X-Name-Last: Zhang
Title: Uncertainties of Trade Environment, Market Economy Status, and Anti-Dumping Investigations—Evidence from China
Abstract: 
 Based on the in-depth analysis of the characteristics of anti-dumping investigations against China from the industry and country concentration degree, this paper finds that NES countries were still the main initiators of anti-dumping investigations, and the industrial sector was the concentrated area. On this basis, this paper adopts the comprehensive feasible generalized least squares method and negative binomial regression to empirically examine factors in anti-dumping investigations against China. The results show that market economic status is not the most critical factor in anti-dumping investigations against China, and the domestic economic situation of importers has a stronger impact.
Journal: Emerging Markets Finance and Trade
Pages: 1925-1937
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1944854
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1944854
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Template-Type: ReDIF-Article 1.0
Author-Name: Panpan Wang
Author-X-Name-First: Panpan
Author-X-Name-Last: Wang
Author-Name: Yishi Li
Author-X-Name-First: Yishi
Author-X-Name-Last: Li
Author-Name: Sixu Wu
Author-X-Name-First: Sixu
Author-X-Name-Last: Wu
Title: Time-varying Effects of U.S. Economic Policy Uncertainty on Exchange Rate Return and Volatility in China
Abstract: 
 We examine the mean and volatility spillover effects of U.S. economic policy uncertainty (EPU) on the RMB exchange rate return and the effects’ time-varying features corresponding to the 2015 “8.11” RMB exchange rate reform and the Sino–U.S. trade friction. We find that rising U.S. EPU amplifies the RMB exchange rate return’s volatility at the volatility spillover level while driving the RMB’s appreciation against the USD at the mean spillover level. After the reform’s implementation, the U.S. EPU’s mean spillover on the RMB exchange rate return disappears, while the volatility spillover increases and is further enhanced by trade friction.
Journal: Emerging Markets Finance and Trade
Pages: 1807-1820
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1937114
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1937114
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Template-Type: ReDIF-Article 1.0
Author-Name: Chunding Li
Author-X-Name-First: Chunding
Author-X-Name-Last: Li
Author-Name: Donglin Li
Author-X-Name-First: Donglin
Author-X-Name-Last: Li
Title: When Regional Comprehensive Economic Partnership Agreement(RCEP) Meets Comprehensive and Progressive Trans-Pacific Partnership Agreement(CPTPP): Considering the “Spaghetti Bowl” Effect
Abstract: 
 This paper constructs a large-scale computable general equilibrium model with 26 countries and regions. The model is embedded in the global value chain, trade costs are introduced, and the trade effects of the Regional Comprehensive Economic Partnership Agreement (RCEP) and the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) under three different scenarios are simulated and analyzed. The simulation results show that in the context of superimposed consideration of the global value chain and the “spaghetti bowl” effect, the trade promotion effect of RCEP and CPTPP on member states has declined. The trade effect of some members may still be impaired, but at the same time, the trade agreement’s “exclusive effect” will also decline. Becoming a joint member of RCEP and CPTPP will result in greater benefits than joining only one trade agreement or not joining a trade agreement. Therefore, it is valuable to speed up the construction of a trade agreement network. When the spaghetti bowl effect is not taken into consideration, the trade promotion effects of RCEP and CPTPP are more prominent than when the spaghetti bowl effect is considered. For nonmembers, regardless of the situation, joining a trade agreement can result in greater benefits.
Journal: Emerging Markets Finance and Trade
Pages: 1988-2003
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1949284
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1949284
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Template-Type: ReDIF-Article 1.0
Author-Name: Suling Feng
Author-X-Name-First: Suling
Author-X-Name-Last: Feng
Author-Name: Huimin Liu
Author-X-Name-First: Huimin
Author-X-Name-Last: Liu
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Title: Research on the Risk of the Online Lending Market in China: A New Perspective Based on MF-DCCA
Abstract: 
 This paper examines the risk in the online lending market by analyzing the cross-correlation between formal (Shibor) and informal lending markets (including online and offline lending markets) in China using the multifractal detrended cross-correlation analysis (MF-DCCA) approach by employing time series data of interest rates covering the period from July 20, 2015, to January 17, 2020. The results reveal cross-correlations between Shibor and offline lending markets and between the online and offline lending markets in both the short and long terms. In addition, the nonlinear Granger causality test showed significant bidirectional causality between Shibor and the offline lending interest rate, and offline lending was the cause of online lending. No obvious causality relationships were noted between Shibor and online lending. The cross-correlation analysis for markets supported further strengthening of regulations of online lending markets.
Journal: Emerging Markets Finance and Trade
Pages: 1860-1870
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1938537
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1938537
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiuli Sun
Author-X-Name-First: Xiuli
Author-X-Name-Last: Sun
Title: Human Capital, Radical Product Innovation, and Product Proliferation: Evidence from China
Abstract: 
 This paper examines how firm-level human capital indicators influence product innovation using firm-level enterprise survey data from China conducted by the World Bank. The human capital indicators we use include the number of highly educated workers, the general manager’s education and tenure, and the management team’s education and age. We use the Logit, Negative Binomial, and linear Hurdle estimators to estimate the knowledge production function models that are augmented by our human capital variables. We find that human capital indicators have much more important effects in mid-sized cities than in metropolitan cities where R&D is the most important factor. Radical product innovation involves more human capital than product proliferation. Also, GM’s tenure has a positive effect on product innovation in mid-sized cities, while it has a negative effect in metropolitan cities. After taking the endogeneity of human capital indicators into account, our results still hold. Finally, we also examine moderating effects of market instability and competition.
Journal: Emerging Markets Finance and Trade
Pages: 1938-1950
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1945437
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1945437
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Template-Type: ReDIF-Article 1.0
Author-Name: Jaeouk Kim
Author-X-Name-First: Jaeouk
Author-X-Name-Last: Kim
Title: Wage and Leverage : Worker-Level Evidence from Korea
Abstract: 
 This paper provides new empirical evidence on the wage and leverage relationship, which supports the notion of strategic leverage. Unlike in previous papers, I use worker-firm matched data of Korea and find a significant negative relationship between wage and leverage. I argue that this negative relationship stems from Korean labor market conditions closer to the price-taking workers and price-setting firms. I further find that the relative bargaining power of workers significantly affects the wage and leverage relationship. Among the directors and union members, the negative relationship between wage and leverage becomes weaker. Finally, the relationship between the two remains significant after possible endogeneity concerns are accounted for by the instrumental variable approach.
Journal: Emerging Markets Finance and Trade
Pages: 1951-1960
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1947792
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1947792
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Template-Type: ReDIF-Article 1.0
Author-Name: Xuemei Yuan
Author-X-Name-First: Xuemei
Author-X-Name-Last: Yuan
Author-Name: Yihong Sun
Author-X-Name-First: Yihong
Author-X-Name-Last: Sun
Author-Name: Xinsheng Lu
Author-X-Name-First: Xinsheng
Author-X-Name-Last: Lu
Title: SHIBOR Fluctuations and Stock Market Liquidity: An MF-DCCA Approach
Abstract: 
 This paper examines the nonlinear and dynamic cross-correlations between SHIBOR and Chinese stock market liquidity by employing MF-DCCA method. The cross-correlations display weak persistence and multifractal characteristics, explaining the variations in the relationship between them. The multifractality strength of the cross-correlations decreases after a recent liberalization reform. Moreover, interest rates have a significantly strong influence on stock market liquidity during tight monetary policy and emergencies, indicating the asymmetric and time-varying impact of interest rates on stock market liquidity. In addition, the effectiveness of interest rate transmission decreases in the period of the COVID-19 pandemic.
Journal: Emerging Markets Finance and Trade
Pages: 2050-2065
Issue: 7
Volume: 58
Year: 2022
Month: 05
X-DOI: 10.1080/1540496X.2021.1954503
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1954503
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Template-Type: ReDIF-Article 1.0
Author-Name: Bin Meng
Author-X-Name-First: Bin
Author-X-Name-Last: Meng
Author-Name: Haibo Kuang
Author-X-Name-First: Haibo
Author-X-Name-Last: Kuang
Author-Name: Liang Lv
Author-X-Name-First: Liang
Author-X-Name-Last: Lv
Author-Name: Lidong Fan
Author-X-Name-First: Lidong
Author-X-Name-Last: Fan
Author-Name: Hongyu Chen
Author-X-Name-First: Hongyu
Author-X-Name-Last: Chen
Title: A Novel Credit Rating Model: Empirical Analysis from Chinese Small Enterprises
Abstract: 
 This article establishes a novel credit rating model for small enterprises, thereby solving the problem that commercial banks cannot accurately obtain financial information about small enterprises or reasonably evaluate the credit risk of small enterprise loans. Through the identification of default status and removal of redundant information for indicator screening, this article adopts a weighting method that can be used to classify small enterprises. The empirical results show that the discriminant precision of default status by the credit rating system of China’s small enterprises, constructed by this article, is up to 91.9%. The weighting results show that in the credit rating of small enterprises, financial indicators cannot reflect all the liabilities, and the role of qualitative indicators in credit ratings is more important. This article empowers 30 indicators based on the principle of distinguishing different types of customers, classifies customers into nine different levels, and avoids the unreasonable phenomenon that default customers have higher credit scores than non-default customers. The results can help commercial banks to distinguish customers of different significance levels.
Journal: Emerging Markets Finance and Trade
Pages: 2368-2387
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1984226
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1984226
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:8:p:2368-2387



Template-Type: ReDIF-Article 1.0
Author-Name: Aysu Çelgin
Author-X-Name-First: Aysu
Author-X-Name-Last: Çelgin
Author-Name: Elif Akbostancı
Author-X-Name-First: Elif
Author-X-Name-Last: Akbostancı
Title: Construction of an Economic Activity Indicator for Turkey
Abstract: 
 In this paper, a monthly economic activity indicator is constructed for the Turkish economy for the period of 1988–2020. A dynamic factor modeling framework is utilized in the process. The variables are first categorized into five types as activity (hard data), activity (survey-based data or soft data), trade, employment, and financial variables. After determining the candidate variables for each category, data selection is finalized by using the hard-thresholding method. Results indicate that our monthly economic activity indicator is successful in detecting the past recessionary periods of the Turkish economy and providing timelier information about the course of economic activity.
Journal: Emerging Markets Finance and Trade
Pages: 2229-2242
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1971073
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1971073
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:8:p:2229-2242



Template-Type: ReDIF-Article 1.0
Author-Name: Nawaf Almaskati
Author-X-Name-First: Nawaf
Author-X-Name-Last: Almaskati
Title: Oil, Foreign Exchange Swaps and Interest Rates in the GCC Countries
Abstract: 
 We examine the relationship between oil prices, foreign exchange (FX) swaps and local interbank offered rates in the six Gulf Cooperation Council (GCC) countries. We also investigate the potential hedging and diversification benefits from adding oil positions to portfolios containing GCC FX swaps or interest rate positions. Our findings confirm that oil predicts, and in some cases causes, movements in the various GCC FX swaps and interbank offered rates. We also find that the Saudi FX swap market has the highest volatility spillover from the oil market compared to other markets in the region. Furthermore, our analysis shows a significant change in liquidity conditions in the GCC FX swap markets following a sudden shift in oil prices. Lastly, we document the presence of significant risk reduction benefits from adding oil exposure to portfolios of GCC FX swaps or interest rates with risk going down by at least half in the case of the GCC FX swaps.
Journal: Emerging Markets Finance and Trade
Pages: 2388-2406
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1990751
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1990751
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Template-Type: ReDIF-Article 1.0
Author-Name: Yongkil Ahn
Author-X-Name-First: Yongkil
Author-X-Name-Last: Ahn
Author-Name: Yoshikatsu Shinozawa
Author-X-Name-First: Yoshikatsu
Author-X-Name-Last: Shinozawa
Author-Name: Kazuo Yamada
Author-X-Name-First: Kazuo
Author-X-Name-Last: Yamada
Title: Corporate Debt Mix and Long-term Firm Growth in Japan
Abstract: 
 This paper examines how firms change debt financing channels in line with the development of financial markets. In this aim, a data set of Japanese listed firms from 1965 (with more than 10% of annual GDP growth) to 2015 (almost 0% GDP growth) is used. We find a long-term change in the debt mix from internal debt financing (e.g., trade credits) to external debt financing (e.g., public bonds). Furthermore, we document that the firm growth rate is positively related to bond financing and negatively associated with trade credits. These associations are not conditional on interlocking business relationships with Keiretsu. The findings imply that the role of established firms’ internal financing channels diminishes as financial markets develop along with economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 2139-2152
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1961739
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1961739
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Template-Type: ReDIF-Article 1.0
Author-Name: Ernest Owusu Boakye
Author-X-Name-First: Ernest Owusu
Author-X-Name-Last: Boakye
Author-Name: Kari Heimonen
Author-X-Name-First: Kari
Author-X-Name-Last: Heimonen
Author-Name: Juha Junttila
Author-X-Name-First: Juha
Author-X-Name-Last: Junttila
Title: Assessing the Commodity Market Price and Terms of Trade Exposures of Macroeconomy in Emerging and Developing Countries
Abstract: 
 This paper provides novel evidence on commodity market exposure, i.e., the impacts of commodity price and terms of trade fluctuations on macro performance amongst 46 emerging and developing countries (EMDCs) in Africa, Asia and the Latin American and Caribbean (LAC) region. We estimate the exposure of six macroeconomic variables to the commodity prices and terms of trade. Our results indicate that in overall terms, there is a strong and statistically significant long-run relationship between the vector of analyzed world trade prices and macro variables in all EMDCs. However, based on the short-term reactions, only about 10% of the macroeconomic variation amongst the EMDCs is due to commodity market-related exposures. Our results also indicate that the commodity market exposure is not unanimous across countries, amongst regions, or especially between measures of exposure.
Journal: Emerging Markets Finance and Trade
Pages: 2243-2257
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1971074
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1971074
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Template-Type: ReDIF-Article 1.0
Author-Name: Lu Zhao
Author-X-Name-First: Lu
Author-X-Name-Last: Zhao
Author-Name: Xuhan Wu
Author-X-Name-First: Xuhan
Author-X-Name-Last: Wu
Author-Name: Zhitao Wang
Author-X-Name-First: Zhitao
Author-X-Name-Last: Wang
Title: Targeted Poverty Alleviation Information Disclosure and Equity Financing Cost
Abstract: 
 This study analyses the market response of listed companies’ Targeted poverty alleviation information disclosure on the basis of equity financing cost. Results show investors’ positive feedback to such disclosure and reduced equity financing cost. Moreover, mediation effect tests show that the decrease of information asymmetry between investors and companies plays a part of the mediating role. These findings indicate that Targeted poverty alleviation has a policy spillover effect, and listed companies’ participation can balance social welfare and self-interest. This study enriches research on corporate Targeted poverty alleviation’s economic consequences and provides new evidence for corporate social responsibility information disclosure–equity financing cost relationship.
Journal: Emerging Markets Finance and Trade
Pages: 2181-2190
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1964950
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1964950
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Template-Type: ReDIF-Article 1.0
Author-Name: Hao-Chang Yang
Author-X-Name-First: Hao-Chang
Author-X-Name-Last: Yang
Author-Name: Ferry Syarifuddin
Author-X-Name-First: Ferry
Author-X-Name-Last: Syarifuddin
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name: Hai-Jie Wang
Author-X-Name-First: Hai-Jie
Author-X-Name-Last: Wang
Title: The Impact of Exchange Rate Futures Fluctuations on Macroeconomy: Evidence from Ten Trading Market
Abstract: 
 This research empirically analyzes the impact of foreign exchange futures volatility on macroeconomic variables by using data of ten trading markets from 2011 to 2020.1 Our findings illustrate that the volatility of foreign exchange futures significantly affects various macroeconomic indicators. In particular, as the volatility of foreign exchange futures increases, it reduces government budget revenue, increases the inflation rate, and has a positive impact on net exports and total reserves. Moreover, this research conducted robustness tests by replacing independent variables and conducting a sub-sample regression to ensure the reliability of the regression results.
Journal: Emerging Markets Finance and Trade
Pages: 2300-2313
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1976636
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1976636
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Template-Type: ReDIF-Article 1.0
Author-Name: Chao Zhu
Author-X-Name-First: Chao
Author-X-Name-Last: Zhu
Author-Name: Yuwei Zhang
Author-X-Name-First: Yuwei
Author-X-Name-Last: Zhang
Author-Name: Zhen Yi
Author-X-Name-First: Zhen
Author-X-Name-Last: Yi
Title: Measuring the Time Series of High-Frequency Risk Attitude from Volatility Risk Premium: The Case of Emerging Markets
Abstract: 
 This study establishes a state-space model and measures the time-varying relative risk aversion using the volatility risk premium from stock market data. This model can measure the time series of high-frequency risk aversion. Based on the stock market data of Brazil, Russia, India, and China, the measurement results of this study show that during the period between January 1, 2009, and December 31, 2020, the mean values of the corresponding implied risk aversion coefficients are 5.6543, 5.7561, 7.5345, and 6.3675, respectively. Our method can solve the mismatch between low-frequency risk aversion and high-frequency market data.
Journal: Emerging Markets Finance and Trade
Pages: 2407-2422
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1990752
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1990752
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Template-Type: ReDIF-Article 1.0
Author-Name: Yongtao Shen
Author-X-Name-First: Yongtao
Author-X-Name-Last: Shen
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Author-Name: Min Gong
Author-X-Name-First: Min
Author-X-Name-Last: Gong
Author-Name: JiQiang Huang
Author-X-Name-First: JiQiang
Author-X-Name-Last: Huang
Title: The Urbanization–Environmental Pollution Nexus: An Analysis Based on a Spatial Perspective
Abstract: 
 This paper analyzes the impact of urbanization on environmental pollution by using provincial and municipal panel data from 2004 to 2015 in China. Using the spatial Durbin model, the study finds a notable difference between the impact of urbanization on residential and industrial wastewater and waste gas. Urbanization in China will significantly improve the emissions of residential wastewater and industrial waste gas in local and neighboring provinces. The effective improvement of energy use, or energy efficiency, plays a key role in reducing environmental pollution and can effectively curb the emission of pollutants.
Journal: Emerging Markets Finance and Trade
Pages: 2355-2367
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1980382
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1980382
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:8:p:2355-2367



Template-Type: ReDIF-Article 1.0
Author-Name: Shusong Ba
Author-X-Name-First: Shusong
Author-X-Name-Last: Ba
Author-Name: Wei Wei
Author-X-Name-First: Wei
Author-X-Name-Last: Wei
Author-Name: Hongmin Yuan
Author-X-Name-First: Hongmin
Author-X-Name-Last: Yuan
Title: How Does Active Change Affect Investment Efficiency? Evidence from Monthly Account-level Data on Chinese Online Platform
Abstract: 
 Using the monthly mutual fund transaction data of individual investors on a large Chinese Fintech platform, the paper studies how does active change in risk-taking affect investment efficiency. In this paper, active change is found to have a positive and significant effect on investment efficiency, which is measured by expected Sharpe ratio. The empirical evidence supports the “smart money” effect in fund market. One possible channel is that individual investors obtain higher investment efficiency by chasing fund market trends. And it’s interesting to find that the effect of active change on investment efficiency is heterogeneous. The increasing financial cognition of investors weakens the effect of active change, while the risk aversion strengthens it. Moreover, long-term investor education plays an important role in guiding investment behaviors.
Journal: Emerging Markets Finance and Trade
Pages: 2191-2202
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1965984
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1965984
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:8:p:2191-2202



Template-Type: ReDIF-Article 1.0
Author-Name: Hongwei Dong
Author-X-Name-First: Hongwei
Author-X-Name-Last: Dong
Title: The Impact of Trade Facilitation on the Networks of Value-Added Trade——Based on Social Network Analysis
Abstract: 
 This study uses the social network analysis to construct the value-added trade networks of 42 countries from 2008 to 2014 and studies the impact of trade facilitation on the value-added trade networks from different perspectives. At the macro level, trade facilitation contributes to the increase of the density of value-added trade networks. At the micro level, trade facilitation of a country significantly promotes the country’s degree centrality, betweenness centrality and closeness centrality in the trade networks. At the meso level, the impact of trade facilitation on countries in different community is different, with the impact on European Community greater than on Asia Pacific Community. Our results highlight the important role of trade facilitation in promoting a country’s influence in the trade networks and sustaining the stability of the world trade.
Journal: Emerging Markets Finance and Trade
Pages: 2290-2299
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1974393
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1974393
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:8:p:2290-2299



Template-Type: ReDIF-Article 1.0
Author-Name: Dinkneh Gebre Borojo
Author-X-Name-First: Dinkneh Gebre
Author-X-Name-Last: Borojo
Author-Name: Jiang Yushi
Author-X-Name-First: Jiang
Author-X-Name-Last: Yushi
Author-Name: Miao Miao
Author-X-Name-First: Miao
Author-X-Name-Last: Miao
Title: The Impacts of Economic Policy Uncertainty on Trade Flow
Abstract: 
 This paper examines the impacts of economic policy uncertainty (EPU) on the trade flow of 143 countries, considering the EPU of exporter and importer countries and the income heterogeneity of the sample countries for over 2000–2019. Besides, it considered the mediating role of regional trade agreements (RTAs) in the EPU-trade nexus. Our results of the two-step Heckman sample selection model imply that the intensive and extensive margins of trade are adversely affected by the exporter and importer countries’ EPU. However, the negative effects of EPU of exporter countries on trade performance turn to positive when the mediating role of the RTAs is controlled. Also, the counterfactual simulation analysis is conducted to compute illustrative distance equivalents of improving the EPU to the average performing country in the sample. Finally, the marginal effect of EPU with respect to GDP per capita results indicates that the higher levels of per capita income seem to decrease the negative effect of EPU on trade. Our findings are robust after we run sensitivity analysis using the Poisson pseudo-maximum likelihood (PPML) to control heterogeneity and zero-valued observations issues. Finally, based on the findings, policy implications are forwarded.
Journal: Emerging Markets Finance and Trade
Pages: 2258-2272
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1971075
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1971075
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Template-Type: ReDIF-Article 1.0
Author-Name: Wei Xu
Author-X-Name-First: Wei
Author-X-Name-Last: Xu
Author-Name: Bo Cheng
Author-X-Name-First: Bo
Author-X-Name-Last: Cheng
Author-Name: Mengying You
Author-X-Name-First: Mengying
Author-X-Name-Last: You
Author-Name: Junli Yu
Author-X-Name-First: Junli
Author-X-Name-Last: Yu
Title: Economic Growth, Urban Governance, and Environment Protection
Abstract: 
 We empirically examine the impact of economic growth on air pollution and the regulating effect of urban governance. The results show that there is an inverse “U” relationship between economic growth (GDP) and regional sulfur dioxide(SO2) emissions, and urban governance have a weak regulating effect. Further research has found that extensive growth at the expense of the environment can cause an increase in the profitability of regional enterprises, which is more obvious in state-owned and state-controlled enterprises. In this paper, we embed urban governance into the analytical framework, enriching the research literature on environmental governance, and providing empirical evidence for relevant policy setting.
Journal: Emerging Markets Finance and Trade
Pages: 2218-2228
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1967740
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1967740
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Template-Type: ReDIF-Article 1.0
Author-Name: Yawei Zhang
Author-X-Name-First: Yawei
Author-X-Name-Last: Zhang
Author-Name: JunJie Wu
Author-X-Name-First: JunJie
Author-X-Name-Last: Wu
Author-Name: Yuwei Fan
Author-X-Name-First: Yuwei
Author-X-Name-Last: Fan
Title: The Effect of Perceived Organizational Support toward the Environment on Team Green Innovative Behavior: Evidence from Chinese Green Factories
Abstract: 
 This study contributes to our understanding regarding how to increase manufacturing enterprises’team green innovative behavior based on the social cognition theory. Based on structural equation models and 408 questionnaires from green factories located in China, we revealed that perceived organizational support toward the environment (POS-E)has a positive influence on team environmental knowledge learning and team green innovative behavior. Team environmental knowledge learning positively affects team green self-efficacy, which, in turn, positively affects team green innovative behavior. The intermediary connection between team environmental knowledge learning and team green self-efficacy plays a significant role in mediating the relationship between POS-E and team green innovative behavior.
Journal: Emerging Markets Finance and Trade
Pages: 2326-2341
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1977121
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1977121
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Template-Type: ReDIF-Article 1.0
Author-Name: Haicheng Shu
Author-X-Name-First: Haicheng
Author-X-Name-Last: Shu
Author-Name: Yu Wang
Author-X-Name-First: Yu
Author-X-Name-Last: Wang
Author-Name: Jie Yuan
Author-X-Name-First: Jie
Author-X-Name-Last: Yuan
Title: Evaluating the Performance of Factor Pricing Models for Different Stock Market Trends: Evidence from China
Abstract: 
 This paper examines the performance of three famous factor pricing models in markets of bull, bear, and consolidation in China. Empirical results show that these models explain the time-series variations in portfolio returns in bearish market reasonably well, but fail to explain the cross-sectional variations. Another two findings are revealed by instability tests. First, the three models are more unstable in trending (i.e., bearish and bullish) markets under time-series regression due to the higher stock price synchronicity. Second, greater instability causes the unitary parameter estimates less reliable and brings about difficulties in explaining the cross-sectional portfolio returns in trending markets.
Journal: Emerging Markets Finance and Trade
Pages: 2153-2180
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1964949
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1964949
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Template-Type: ReDIF-Article 1.0
Author-Name: Shufang Zheng
Author-X-Name-First: Shufang
Author-X-Name-Last: Zheng
Author-Name: Fengxiu Zhou
Author-X-Name-First: Fengxiu
Author-X-Name-Last: Zhou
Author-Name: Huwei Wen
Author-X-Name-First: Huwei
Author-X-Name-Last: Wen
Title: The Relationship between Trade Liberalization and Environmental Pollution across Enterprises with Different Levels of Viability in China
Abstract: 
 This study investigates the varying effects of trade liberalization on environmental pollution from the perspective of enterprise viability. We find that trade liberalization significantly reduces pollution emissions, and the environmental effect on low viability and high viability enterprises varies. Our results also indicate that the emissions trading policy enhances the abating effect of trade liberalization on environmental pollution in both high viability and low viability enterprises, whereas the voluntary environmental policy reduces this effect. This study not only extends the applicability of new structural economics but also presents empirical evidence for further market opening and actions to improve the environment.
Journal: Emerging Markets Finance and Trade
Pages: 2125-2138
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1961738
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1961738
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Template-Type: ReDIF-Article 1.0
Author-Name: Tingting Ni
Author-X-Name-First: Tingting
Author-X-Name-Last: Ni
Author-Name: Xinyue Wang
Author-X-Name-First: Xinyue
Author-X-Name-Last: Wang
Author-Name: Yuetang Wang
Author-X-Name-First: Yuetang
Author-X-Name-Last: Wang
Author-Name: Mengheng Li
Author-X-Name-First: Mengheng
Author-X-Name-Last: Li
Title: Can the Deferred Donation Deduction Policy Promote Corporate Charitable Donations? Empirical Evidence from China
Abstract: 
 This paper uses a sample of Chinese listed companies and adopts the difference-in-difference method to empirically study the impact of China’s deferred tax deduction policy on corporate charitable donations. Overall, it finds that the deferred deduction policy does not increase enterprises’ tendency to donate; instead, it reduces their donation intensity. When we distinguish enterprises by their type of ownership, we see that among non-state-owned enterprises, the deferred deduction policy has significantly increased the tendency to donate and reduced the donation intensity, but its impact on state-owned enterprises is not evident. In addition, this policy has significantly increased small-value donation enterprises’ tendency to donate, but reduced high-tax enterprises’ tendency.
Journal: Emerging Markets Finance and Trade
Pages: 2203-2217
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1967140
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1967140
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Template-Type: ReDIF-Article 1.0
Author-Name: Wenli Wang
Author-X-Name-First: Wenli
Author-X-Name-Last: Wang
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Author-Name: Yunpeng Wang
Author-X-Name-First: Yunpeng
Author-X-Name-Last: Wang
Title: Capital Supervision, Information Disclosure and Risk-taking—Evidence from Rural Commercial Banks in China
Abstract: 
 Based on yearly data of 44 rural commercial banks in China from 2012 to 2019, this research empirically investigates the impact of capital supervision and information disclosure on the risk-taking of rural commercial banks, and further explores the mechanisms through which capital supervision affects the risk-taking of said banks. The empirical results show that both capital supervision and information disclosure negatively affect their risk-taking. Moreover, the test of the mechanism suggests that capital supervision influences rural commercial banks’ risk-taking through indirectly changing lending behavior. Our study offers important policy implications for regulators to reduce the risk-taking of rural commercial banks.
Journal: Emerging Markets Finance and Trade
Pages: 2273-2289
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1971076
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1971076
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Template-Type: ReDIF-Article 1.0
Author-Name: Yizhong Wu
Author-X-Name-First: Yizhong
Author-X-Name-Last: Wu
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Author-Name: Diyun Peng
Author-X-Name-First: Diyun
Author-X-Name-Last: Peng
Title: Short Sales and Corporate Investment Efficiency: Evidence from China
Abstract: 
 This research assesses the effect of short sales on investment efficiency in China by applying the DID method. Results show that short sales can improve investment efficiency and that the effect is more pronounced for companies with low information transparency, low governance capacity, low audit quality, and high management performance pressure. Evidence reveals that the impact of short sales varies under different market sentiments. Our findings support the beneficial role of short sales on the information and governance environment. Governments and investors can thus pay more attention to short sales, as they help in their role of accelerating information dissemination.
Journal: Emerging Markets Finance and Trade
Pages: 2342-2354
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1977122
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1977122
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhao-jing Liu
Author-X-Name-First: Zhao-jing
Author-X-Name-Last: Liu
Author-Name: Xuan-mei Cheng
Author-X-Name-First: Xuan-mei
Author-X-Name-Last: Cheng
Title: Offspring Education, Regional Differences and Farmers’ Subjective Well-being
Abstract: 
 In this paper, we use Chinese Social Survey (CSS) (2015) data to examine the influence of offspring education on the subjective well-being of farmers in China with the gologit method. We also test this relationship after accounting for the importance of farmers’ sense of equity regarding urban-rural, regional differences. Our analysis implies that to some extent offspring education has a positive association with farmers’ subjective well-being. Specifically, farmers with more educated children are more likely to have a positive outlook on life. Moreover, regional differences and farmers’ sense of fairness between urban and rural areas also affect the subjective well-being of farmers.
Journal: Emerging Markets Finance and Trade
Pages: 2109-2124
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1960818
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1960818
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Template-Type: ReDIF-Article 1.0
Author-Name: Liangcheng Wang
Author-X-Name-First: Liangcheng
Author-X-Name-Last: Wang
Author-Name: Yuye Ding
Author-X-Name-First: Yuye
Author-X-Name-Last: Ding
Author-Name: Yixing Liu
Author-X-Name-First: Yixing
Author-X-Name-Last: Liu
Title: Foreign Residency Rights and Overseas Investment
Abstract: 
 We examine whether firms in the emerging market whose controlling persons have foreign residency rights are more likely to invest overseas inefficiently. Using a sample from China’s private listed companies in 2010–2017, we find a positive association between foreign residency rights and overseas investment. The association is more pronounced in controlling persons without actual overseas experience, and the overseas investment performance is worse. The finding is robust to alternative measures and controlling for endogeneity. Overall, our study contributes to the literature on foreign residency rights in the emerging market by providing empirical evidence that the foreign residency rights of controlling persons in China induce inefficient overseas investment.
Journal: Emerging Markets Finance and Trade
Pages: 2314-2325
Issue: 8
Volume: 58
Year: 2022
Month: 06
X-DOI: 10.1080/1540496X.2021.1977120
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1977120
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Template-Type: ReDIF-Article 1.0
Author-Name: Lirong Chen
Author-X-Name-First: Lirong
Author-X-Name-Last: Chen
Author-Name: Siyi Liu
Author-X-Name-First: Siyi
Author-X-Name-Last: Liu
Author-Name: Xin Liu
Author-X-Name-First: Xin
Author-X-Name-Last: Liu
Author-Name: Jiani Wang
Author-X-Name-First: Jiani
Author-X-Name-Last: Wang
Title: The Carbon Emissions Trading Scheme and Corporate Environmental Investments: A Quasi-natural Experiment from China
Abstract: 
 This study examines the relationship between the carbon emissions trading scheme (ETS) and corporate environmental investments. Using a panel data set of Chinese listed firms from 2010 to 2018, we find that the ETS implementation leads to a significant increase in corporate environmental investments. Furthermore, our path analysis shows that the ETS can help improve corporate environmental and financial performance through its impact on environmental investments. Finally, we find that the positive effect of the ETS is more pronounced for firms participating in carbon markets with higher liquidity, for firms facing higher regulatory pressure, and for those that are less able to pass through emissions costs to customers. Overall, the results provide evidence on the effectiveness of China’s ETS in driving environmental investments.
Journal: Emerging Markets Finance and Trade
Pages: 2670-2681
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2009338
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2009338
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Template-Type: ReDIF-Article 1.0
Author-Name: Ivan F. Julio
Author-X-Name-First: Ivan F.
Author-X-Name-Last: Julio
Author-Name: Jorge M. Oviedo
Author-X-Name-First: Jorge M.
Author-X-Name-Last: Oviedo
Title: The Asymmetric Effects of Argentina’s Fiscal Deficits on the Real Exchange Rate
Abstract: 
 According to standard theoretical frameworks such as Real Business Cycle (RBC’s) models or new-Keynesian theories, the real exchange rate should appreciate in response to an increase in government spending. However, the empirical literature finds mixed results. We offer an answer to this puzzle by analyzing the impact of the composition of the fiscal deficit. Using a dynamic stochastic general equilibrium model with a government and an external sector, we quantify the differential impact on the real exchange rate generated by an increase in public consumption expenditure, public investment, and tax reduction. We calibrate and simulate the model for Argentina and find that the fiscal deficit originated in tax reduction can improve the real exchange rate. In contrast, one generated by an increase in spending deteriorates the real exchange rate. In particular, this depreciation is more significant when the spending is directed toward public consumption than when used for public investment. We argue that quantifying these different effects on the exchange rate within a dynamic stochastic general equilibrium framework is an essential exercise of political economy for highly dollarized emerging economies that exhibit higher inflation pass-through.
Journal: Emerging Markets Finance and Trade
Pages: 2567-2601
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2004888
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2004888
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Template-Type: ReDIF-Article 1.0
Author-Name: Jorge A. Muñoz Mendoza
Author-X-Name-First: Jorge A.
Author-X-Name-Last: Muñoz Mendoza
Author-Name: Sandra M. Sepúlveda Yelpo
Author-X-Name-First: Sandra M.
Author-X-Name-Last: Sepúlveda Yelpo
Author-Name: Carmen L. Veloso Ramos
Author-X-Name-First: Carmen L.
Author-X-Name-Last: Veloso Ramos
Author-Name: Carlos L. Delgado Fuentealba
Author-X-Name-First: Carlos L.
Author-X-Name-Last: Delgado Fuentealba
Title: Impacts of Earnings Management and Institutional-financial Development on Capital Structure Choice in Latin-American Markets
Abstract: 
 We analyzed the effects of accruals-based earnings management practices and institutional-financial qualities of countries on the financing policy of Latin American companies. We used panel data on a sample of 983 companies between 1995 and 2017. Our results indicate that positive discretionary accruals reduce leverage and increase debt maturity. These findings suggest that accounting manipulation activities favor managerial entrenchment and seek to avoid external supervision and liquidity risk. The institutional and financial development of countries promotes leverage and long-term debt issuances. However, its effects do not mitigate the impact of accounting manipulation activities on this policy. The IFRS adoption is an effective means of control that attenuates the effects of earnings management on capital structure. These results are relevant for investors and policymakers due to their implications for firms’ corporate governance and financial policy design.
Journal: Emerging Markets Finance and Trade
Pages: 2695-2709
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2010536
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2010536
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Template-Type: ReDIF-Article 1.0
Author-Name: R. Scott Hacker
Author-X-Name-First: R. Scott
Author-X-Name-Last: Hacker
Author-Name: Yvonne Umulisa
Author-X-Name-First: Yvonne
Author-X-Name-Last: Umulisa
Title: Commonalities in the Movements of Inflation Rates among Countries in the East African Community
Abstract: 
 In this study, we investigate the degree to which inflation-rate movements for countries in the East African Community (EAC) have become more similar, which is an important issue for the EAC’s goal of creating a common currency. For the five EAC countries (excluding South Sudan), we find that comovements in inflation rates generally became more similar between 1995 and 2018. A decrease in the correlations of the three largest EAC members with the rest of the EAC (from each of their perspectives) after 2013 is concerning for a smoothly running monetary union.
Journal: Emerging Markets Finance and Trade
Pages: 2493-2504
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.1997738
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1997738
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Template-Type: ReDIF-Article 1.0
Author-Name: Han Long
Author-X-Name-First: Han
Author-X-Name-Last: Long
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name: Sujeetha Jegajeevan
Author-X-Name-First: Sujeetha
Author-X-Name-Last: Jegajeevan
Author-Name: Kai Tang
Author-X-Name-First: Kai
Author-X-Name-Last: Tang
Title: Can Central Bank Mitigate the Effects of the COVID-19 Pandemic on the Macroeconomy?
Abstract: 
 Facing with the enormous economic loss resulting from the unexpected outburst of the COVID-19 pandemic, central banks around the world began to show a great activeness and implement numerous monetary policies to help mitigate the negative shocks and recover the economy. This paper aims at investigating the impact of the COVID-19 pandemic on the macroeconomy and whether central bank activeness have helped mitigate the negative shock of the COVID-19. Using the panel fixed effects model and monthly data of 38 countries from January 2020 to June 2021, this paper finds that the COVID-19 pandemic has increased inflation and unemployment apparently. More importantly, central bank activeness has a positive effect on reducing the growing pressure from the COVID-19 on inflation, while it cannot mitigate the shock of the COVID-19 on unemployment rate. Specially, government others measure, including containment and health, and stringency policies, have little effect in mitigating the negative impact of the pandemic on inflation and unemployment. Our findings suggest that the central bank activeness have heterogeneous effects on different macroeconomic indicators, and cannot mitigate the hurts of the COVID-19 pandemic for all macro indicators during the pandemic.
Journal: Emerging Markets Finance and Trade
Pages: 2652-2669
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2007880
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2007880
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Template-Type: ReDIF-Article 1.0
Author-Name: Jihyun Eum
Author-X-Name-First: Jihyun
Author-X-Name-Last: Eum
Title: Impact of Chinese Renminbi on Korean Exports: Does Quality Matter?
Abstract: 
 This study examines the impact of changes in the Chinese exchange rate on Korean exports considering the characteristics of products exported. We use import data from OECD countries from 2002 to 2014 and find that Korea’s exports of products having a greater competition further decline as renminbi depreciates. On the other hand, Korean exports of products having a greater complementarity degree with Chinese are more likely to increase as renminbi depreciates. In addition, the degree of negative impacts become smaller once Korean export products have a relatively higher quality than those of China.
Journal: Emerging Markets Finance and Trade
Pages: 2423-2437
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.1991786
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1991786
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Template-Type: ReDIF-Article 1.0
Author-Name: Hui Peng
Author-X-Name-First: Hui
Author-X-Name-Last: Peng
Author-Name: Jingjing Wang
Author-X-Name-First: Jingjing
Author-X-Name-Last: Wang
Author-Name: Ling Wen
Author-X-Name-First: Ling
Author-X-Name-Last: Wen
Author-Name: Pan Ding
Author-X-Name-First: Pan
Author-X-Name-Last: Ding
Author-Name: Yangjin Zhu
Author-X-Name-First: Yangjin
Author-X-Name-Last: Zhu
Title: Is the Development of Inclusive Finance Truly Able to Alleviate Poverty?——an Empirical Study Based on Spatial Effect and Threshold Effect
Abstract: 
 The inclusive finance can impose significantly varying effects on poverty alleviation. Based on the data extracted from 31 provinces across China from 2007 to 2017, the spatial panel model and the threshold regression model were established, so as to explore the spatial effect and the threshold effect between inclusive finance and poverty alleviation. Moreover, this study attempts to reveal the influencing mechanism of these two effects imposed by the inclusive finance. The study finds that: First, the inclusive finance can impose significant effects on the poverty relief efforts. Second, the threshold effect can be evidently shown given that the inclusive finance facilitates both capital inflows and outflows. However, in the longer run, the capital inflows will exceed the outflow. In the meantime, the spatial effects are revealed from the aspects of spatial heterogeneity and spatial dependence. Judging from the research findings, the Chinese authority shall pay closer attention to the development of the western regions, so as to narrow the developmental gap of inclusive finance among regions. In addition, we shall attach importance to guiding the capital inflows while reducing the capital outflows so as to speed up the crossing of the threshold.
Journal: Emerging Markets Finance and Trade
Pages: 2505-2521
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2002141
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2002141
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Template-Type: ReDIF-Article 1.0
Author-Name: Lin Pan
Author-X-Name-First: Lin
Author-X-Name-Last: Pan
Author-Name: Meixiang Guo
Author-X-Name-First: Meixiang
Author-X-Name-Last: Guo
Author-Name: Chengai Li
Author-X-Name-First: Chengai
Author-X-Name-Last: Li
Author-Name: Huichao Xu
Author-X-Name-First: Huichao
Author-X-Name-Last: Xu
Title: Does Social Trust Affect Analysts’ Forecast? Evidence from China
Abstract: 
 Using a sample of companies listed in the Chinese stock market between 2007 and 2019, this article investigates the effect of social trust on analysts’ forecasts. Our results show that regional social trust can lower analysts’ forecast errors and analysts’ forecast dispersion, that is, it improves analysts’ forecast quality. The institutional environment and state-owned property exacerbate these positive effects. Furthermore, the role of social trust in improving the quality of analysts’ forecasts is more significant in listed companies with a poor information environment. We also find that social trust improves analysts’ forecast quality by improving earnings quality. After some robustness tests, our main conclusions are still valid. Overall, the findings reveal social trust affects analyst’s forecasts.
Journal: Emerging Markets Finance and Trade
Pages: 2538-2552
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2002143
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2002143
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Template-Type: ReDIF-Article 1.0
Author-Name: Kijin Kim
Author-X-Name-First: Kijin
Author-X-Name-Last: Kim
Author-Name: Paul Mariano
Author-X-Name-First: Paul
Author-X-Name-Last: Mariano
Author-Name: Jerome Abesamis
Author-X-Name-First: Jerome
Author-X-Name-Last: Abesamis
Title: Trade Impact of Reducing Time and Costs at Borders in the Central Asia Regional Economic Cooperation Region
Abstract: 
 Trade facilitation, by reducing trade costs and raising the efficiency of moving goods across borders, is integral to international trade. Using novel data on bilateral time and cost measures for trade facilitation in the Central Asia Regional Economic Cooperation (CAREC) Program, this study estimates the trade impact of reducing time and costs at border crossing points within CAREC. The gravity model estimations show that reducing time by 10% at the inbound border increases trade among CAREC countries by 1 − 2%. Trade impact of reduction in time and costs at the inbound border is estimated to be higher than that at the outbound border. We also find that the trade impact of reducing time at the inbound border increases with the severity of time bottleneck and the trade impact is more effective in recent year since 2013.
Journal: Emerging Markets Finance and Trade
Pages: 2602-2619
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2007877
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2007877
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhixiao Wang
Author-X-Name-First: Zhixiao
Author-X-Name-Last: Wang
Author-Name: Qin Wang
Author-X-Name-First: Qin
Author-X-Name-Last: Wang
Author-Name: Mingli Xu
Author-X-Name-First: Mingli
Author-X-Name-Last: Xu
Title: Short Debt Maturity and Corporate Investment: New Evidence from Chinese Listed Firms
Abstract: 
 Using a dataset on Chinese listed firms, we study the impact of short debt maturity on capital expenditures. In contrast to the empirical findings from most of the previous works that rely on the US firm-level datasets, our results show that firms invest less rather than invest more when they have relatively shorter debt maturity. We argue that in an economy where short-term bank loans are the major financing resource, such as that of China, firms with shorter debt maturity tend to suffer more from potential rollover risks and hence are more likely to reduce their near future capital expenditures. Such an overhang effect generated by short-term debt becomes stronger when firms present worse financial health, as rollover risks are likely to be more serious when firms’ assets-in-place deteriorate.
Journal: Emerging Markets Finance and Trade
Pages: 2453-2473
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.1991788
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1991788
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Template-Type: ReDIF-Article 1.0
Author-Name: Hui Hong
Author-X-Name-First: Hui
Author-X-Name-Last: Hong
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Title: Optimal Margin Levels for Margin Buying in China: An Extreme Value Method
Abstract: 
 There are different types of margin requirements for margin buying and this paper focuses on setting both initial and maintenance margin levels. By using the data of stock portfolio returns over the period from March 31, 2010 to December 31, 2020, the research computes and compares margins derived by several margin setting methods using extreme value theory (EVT) for margin buying in China. Important findings are summarized as follows. First, the VaR-x method generates more accurate forecasts of both unconditional and conditional margin levels than the parametric and the Hill non-parametric methods particularly given lower probabilities of margin violation. This is robust to different portfolios, market conditions and sample periods. Second, margins derived actually vary over time, becoming higher (lower) when market volatility increases (decreases). The findings have important economic and practical implications.
Journal: Emerging Markets Finance and Trade
Pages: 2553-2566
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2002144
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2002144
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Template-Type: ReDIF-Article 1.0
Author-Name: Zheng-Zheng Li
Author-X-Name-First: Zheng-Zheng
Author-X-Name-Last: Li
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Author-Name: Meng Nan Zhu
Author-X-Name-First: Meng Nan
Author-X-Name-Last: Zhu
Title: How Does Uncertainty Affect Volatility Correlation between Financial Assets? Evidence from Bitcoin, Stock and Gold
Abstract: 
 This paper deciphers the correlation of volatility between Bitcoin, stock and gold, in the context of uncertainty. The wavelet analysis results indicate that the selected assets are primarily positively correlated with each other, specifically in periods when the economic policy uncertainty (EPU) is high. Furthermore, the logit regression confirms that the EPU and categorial EPU indices have heterogeneous effects on the interdependence between Bitcoin, the S&P 500 and gold. Therefore, our findings provide insights for policy-makers to reduce the adverse impact of uncertainty on financial asset volatility.
Journal: Emerging Markets Finance and Trade
Pages: 2682-2694
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2009339
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2009339
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Template-Type: ReDIF-Article 1.0
Author-Name: Afees A. Salisu
Author-X-Name-First: Afees A.
Author-X-Name-Last: Salisu
Author-Name: Rangan Gupta
Author-X-Name-First: Rangan
Author-X-Name-Last: Gupta
Title: Commodity Prices and Forecastability of International Stock Returns over a Century: Sentiments versus Fundamentals with Focus on South Africa
Abstract: 
 We forecast real stock returns of South Africa over the monthly period of 1915:01 to 2021:03 using real oil, gold and silver prices, based on an autoregressive type distributed lag model that controls for persistence and endogeneity bias. Oil price proxies for fundamentals, while gold and silver prices capture sentiments. We find that the metrics for fundamentals and sentiments both predict real stock returns of South Africa, with nonlinearity, modeled by decomposing these prices into their respective positive and negative counterparts, playing an important role in terms of forecasting when a longer out-of-sample period spanning over three-quarters of a century is used. When compared to fundamentals, sentiments, particularly real gold prices, have a relatively stronger role to play in forecasting real stock returns. Further, the predictability of stock returns emanating from fundamentals and sentiments is in line with the findings over the same period derived for two other advanced markets namely, the United Kingdom (UK) and the United States (US), but the stock market of another emerging economy, i.e., India covering 1920:08 to 2021:03, unlike South Africa, is found to be completely unpredictable.
Journal: Emerging Markets Finance and Trade
Pages: 2620-2636
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2007878
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2007878
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Template-Type: ReDIF-Article 1.0
Author-Name: Fu-Wei Huang
Author-X-Name-First: Fu-Wei
Author-X-Name-Last: Huang
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Title: Insurer Investment, Life Insurance Policy Choices, and Policy Surrender
Abstract: 
 This study develops a contingent framework to examine the contract issuance of alternative unit-linked insurance plans (ULIPs) considering policy surrender. We show that the extension of the aggressive/conservative-plan policy surrender date enhances policyholder protection and insurer default risk when the two optimal guaranteed rates of the programs remain fixed. Increasing aggressive-plan policy surrenders improves policyholder protection and insurer survival when the optimal invested-asset interest rate remains unchanged. Increasing conservative-plan policy surrenders negatively impacts policyholder protection but supports insurer survival. Our results complement the literature by demonstrating that ULIPs are relevant to policyholder protection and insurer survival in the asset-liability matching management.
Journal: Emerging Markets Finance and Trade
Pages: 2637-2651
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2007879
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2007879
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Template-Type: ReDIF-Article 1.0
Author-Name: Rui Jiang
Author-X-Name-First: Rui
Author-X-Name-Last: Jiang
Author-Name: Conghua Wen
Author-X-Name-First: Conghua
Author-X-Name-Last: Wen
Title: A Comparison between Parametric and Nonparametric Volatility Forecasting of Stock Index Futures in China
Abstract: 
 In this study, the volatilities of CSI300 index futures, SSE50 index futures, and CSI500 index futures are modeled and predicted based on both parametric and nonparametric modeling approaches. Four ARMA-GARCH-type models and four HAR-type models are taken as the framework of volatility prediction. The last one-third of transaction data are used as the testing sample and the rolling window approach is adopted for prediction. The best predictive models for these three stock index futures vary with the properties of the futures, while volatility prediction based on the HAR-type models always has a higher accuracy than the ARMA-GARCH-type models. Moreover, we find that the property of target assets influences the performance of models, and the choice of extended models in prediction is suggested to be based on the peculiarity in the sample.
Journal: Emerging Markets Finance and Trade
Pages: 2522-2537
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.2002142
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2002142
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Template-Type: ReDIF-Article 1.0
Author-Name: Jingbin He
Author-X-Name-First: Jingbin
Author-X-Name-Last: He
Author-Name: Jingchi Liao
Author-X-Name-First: Jingchi
Author-X-Name-Last: Liao
Author-Name: Xinru Ma
Author-X-Name-First: Xinru
Author-X-Name-Last: Ma
Author-Name: Fei Wu
Author-X-Name-First: Fei
Author-X-Name-Last: Wu
Title: Which Trades of Institutional Investors are More Informed in the Post-IPO Market? Evidence from China
Abstract: 
 Using comprehensive transaction-level data from China, we document that institutional investors that have participated into the IPO pricing process trade at more profitable prices in the post-IPO market than other institutional investors do, resulting in higher profitability. The outperformance is more pronounced for firms with higher information asymmetry. We also document that participating institutions are able to identify more good trading opportunities ahead of others and that this ability become stronger when trading firms with higher information asymmetry. The outperformance and trading ability of participating institutions alleviates in periods before the expiration of lock-up and when retail sentiment is higher. Overall, our results imply that participating institutions possess information advantages over other institutions in post-IPO trading.
Journal: Emerging Markets Finance and Trade
Pages: 2438-2452
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.1991787
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1991787
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Template-Type: ReDIF-Article 1.0
Author-Name: Haishan Yu
Author-X-Name-First: Haishan
Author-X-Name-Last: Yu
Author-Name: Xiaowen Liu
Author-X-Name-First: Xiaowen
Author-X-Name-Last: Liu
Author-Name: Yisihong Zhou
Author-X-Name-First: Yisihong
Author-X-Name-Last: Zhou
Title: The Effects of Zombie Firms on the Financial Information Transparency of Other Firms
Abstract: 
 Zombie firms have strong negative effects on society. This paper empirically investigates the effects of zombie firms on the financial information transparency of normal firms and finds that zombie firms significantly reduce the financial information transparency of these normal firms, thus also reducing their performance. Further analysis reveals that zombie firms have more obvious negative effects on the financial information transparency of firms without political connections, firms in poor legal environments, and firms in highly competitive industries.
Journal: Emerging Markets Finance and Trade
Pages: 2474-2492
Issue: 9
Volume: 58
Year: 2022
Month: 07
X-DOI: 10.1080/1540496X.2021.1995350
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1995350
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Template-Type: ReDIF-Article 1.0
Author-Name: Wei Jiang
Author-X-Name-First: Wei
Author-X-Name-Last: Jiang
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Title: Exchange Rate Fluctuations and the Quality of Products Imported by Chinese Manufacturing Firms
Abstract: 
 Based on firm-level Chinese Customs and Industrial Production micro data for 2000–2013, this study investigates the impact of exchange rate fluctuations on the quality of products imported by Chinese manufacturing firms. The empirical results show that exchange rate appreciation upgrades the quality of imported products through the price effect, new product variety effect, and competitive effect channels, and by improving the quality of exported products. Our empirical results are robust after considering several potential problems. Furthermore, we find that the quality of products imported by firms with lower productivity, fewer financing constraints, non-core products, low market share, foreign-invested and private enterprises and countries with higher level of economic development upgrade more in respond to exchange rate appreciation. These results imply that exchange rate appreciation is an important way to encourage firms to upgrade the quality of imported products.
Journal: Emerging Markets Finance and Trade
Pages: 2751-2763
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2002140
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2002140
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Template-Type: ReDIF-Article 1.0
Author-Name: Ionel Bostan
Author-X-Name-First: Ionel
Author-X-Name-Last: Bostan
Author-Name: Ovidiu-Constantin Bunget
Author-X-Name-First: Ovidiu-Constantin
Author-X-Name-Last: Bunget
Author-Name: Alin-Constantin Dumitrescu
Author-X-Name-First: Alin-Constantin
Author-X-Name-Last: Dumitrescu
Author-Name: Valentin Burca
Author-X-Name-First: Valentin
Author-X-Name-Last: Burca
Author-Name: Aura Domil
Author-X-Name-First: Aura
Author-X-Name-Last: Domil
Author-Name: Dorel Mates
Author-X-Name-First: Dorel
Author-X-Name-Last: Mates
Author-Name: Oana Bogdan
Author-X-Name-First: Oana
Author-X-Name-Last: Bogdan
Title: Corporate Disclosures in Pandemic Times. The Annual and Interim Reports Case
Abstract: 
 The paper examines if COVID-19 crisis has brought changes in companies’ approach on corporate reporting, with focus on annual reports. The research method is based on text mining techniques in order to build measures of readability and tone of uncertainty of annual reports, given the information published by the companies listed on four stock exchanges from Europe, namely the Bucharest Stock Exchange, ATHEX Stock Exchange, IBEX-35, and WIG-20 between 2017–2020. Findings emphasize, through text mining, multivariate analysis, and topic modeling, that the analyzed reports are less extensive in times of pandemic and tend to become more generic. Among firms’ financial performance metrics considered in our models, we found that there is a significant association only between annual reports textual characteristics and respectively, firm size, price earnings ratio and accruals reported. We prove as well significant stock exchange effects and industry effects. Our results show a slight decrease in annual reports readability, while the tone of uncertainty is more prominent within firms listed on less mature stock exchanges.
Journal: Emerging Markets Finance and Trade
Pages: 2910-2926
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2014316
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2014316
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Template-Type: ReDIF-Article 1.0
Author-Name: Yonghyun Kwon
Author-X-Name-First: Yonghyun
Author-X-Name-Last: Kwon
Author-Name: Seung Hun Han
Author-X-Name-First: Seung Hun
Author-X-Name-Last: Han
Author-Name: Young Woo Koh
Author-X-Name-First: Young Woo
Author-X-Name-Last: Koh
Title: Production Suspension, Corporate Governance, and Firm Value
Abstract: 
 This study investigates the effects of planned and unplanned production suspension on firm value. We find that the increased business risk caused by the production suspension negatively affects firm value. Additionally, good corporate governance alleviates the negative effect of planned suspensions, while only firm-specific factors affect unplanned suspensions. Moreover, among firms facing unplanned suspensions, those with strong governance recover faster than firms with weak governance because the former have stable managerial structures. Finally, business group-affiliated firms cope with planned production suspensions well, whereas they are more vulnerable to unplanned suspensions. The result suggests that the group-level supplier-demander relationships have potential business risk owing to low flexibility in unexpected business situations.
Journal: Emerging Markets Finance and Trade
Pages: 2711-2735
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.1984227
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1984227
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Template-Type: ReDIF-Article 1.0
Author-Name: Yuehua Zuo
Author-X-Name-First: Yuehua
Author-X-Name-Last: Zuo
Author-Name: Yuwei Hu
Author-X-Name-First: Yuwei
Author-X-Name-Last: Hu
Author-Name: Xiaojun Liu
Author-X-Name-First: Xiaojun
Author-X-Name-Last: Liu
Author-Name: Huixian Zhao
Author-X-Name-First: Huixian
Author-X-Name-Last: Zhao
Title: Corporate Misconduct and Analyst Forecasting Accuracy: Evidence from China
Abstract: 
 This paper studies the impact of corporate misconduct on analyst forecasting accuracy in emerging markets. Using a unique dataset from China, we find that analyst forecasting accuracy decreases when firms are involved in corporate misconduct. We address potential endogeneity by employing the propensity score matched (PSM) procedure and IV regression, and our findings are proven robust. Channel analyses show that corporate misconduct is related to the increased earnings management, weak internal control quality, the reduction in site visits by institutional investors and coverage by star analysts, indicating that our results are driven by a worsened information environment for analysts. Further tests reveal that firms who commit more corporate misconduct, more severe misconduct, or information disclosure violations result in less reliable analyst forecasting accuracy. Thus, our research provides policy implication by showing that corporate irregularities reduce information efficiency of capital market and disrupt the market integrity.
Journal: Emerging Markets Finance and Trade
Pages: 3006-3022
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2022.2057220
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2057220
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhihao Wang
Author-X-Name-First: Zhihao
Author-X-Name-Last: Wang
Author-Name: Kezhi Liao
Author-X-Name-First: Kezhi
Author-X-Name-Last: Liao
Author-Name: Yu Zhang
Author-X-Name-First: Yu
Author-X-Name-Last: Zhang
Title: Does ESG Screening Enhance or Destroy Stock Portfolio Value? Evidence from China
Abstract: 
 This article investigates the impact of ESG screening on the portfolio value of four risk weighting models in the Chinese stock market from July 2012 to June 2019. Using a novel ESG rating data of CSI 300 composite stock, we show that: (i) ESG screening undermines the portfolio value of the equal-weighted (EW), value-weighted (VW), minimum variance (MVP), and reward-to-return (RRT) model. Portfolio models in the High-ESG group have the lowest out-of-sample return, Sharpe ratio, and cumulative wealth. (ii) After adjusting for asset pricing models, portfolio models in the High-ESG group generally produce the lowest out-of-sample risk-adjusted return per IVOL. (iii) ESG screening harms portfolio value by excluding stocks with favorable risk-return characteristics, leading to a conservative investment style, which is costly both for non-ESG-motivated and ESG-motivated investors. Our findings reveal that although ESG investment is becoming a significant trend, portfolio managers should be aware of the opportunity cost to apply ESG screening in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 2927-2941
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2014317
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2014317
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Template-Type: ReDIF-Article 1.0
Author-Name: Wei-Qiang Huang
Author-X-Name-First: Wei-Qiang
Author-X-Name-Last: Huang
Author-Name: Peipei Liu
Author-X-Name-First: Peipei
Author-X-Name-Last: Liu
Title: Identifying Sovereign Risk Spillover Channels: A Spatial Econometric Approach
Abstract: 
 We apply novel spatial econometric techniques to investigate spillovers in sovereign risk for 41 advanced and emerging economies during 2004–2019. We find that sovereign risk spillover channels that play major roles in various periods are different. Real linkages (trade, financial, and geography) and information channel both play major roles in spillover effects during the full sample period. During the financial crisis period, only business connections (trade and financial) have an effect, while only the geographical distance channel did not have an effect during the European debt crisis period. We also assess the relative importance of the direct and indirect effects of macroeconomic variables. We observe that the long-term effects are larger than the short-term effects. Ultimately, our analysis emphasizes the importance of considering multiple channels when analyzing sovereign risk spillovers.
Journal: Emerging Markets Finance and Trade
Pages: 2820-2836
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2010539
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2010539
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Template-Type: ReDIF-Article 1.0
Author-Name: Huan Lin
Author-X-Name-First: Huan
Author-X-Name-Last: Lin
Author-Name: Yu Chen
Author-X-Name-First: Yu
Author-X-Name-Last: Chen
Author-Name: Chao He
Author-X-Name-First: Chao
Author-X-Name-Last: He
Title: Short Selling and Information Quality: Evidence from Natural Experiments in an Emerging Market
Abstract: 
 Using a comprehensive sample of Chinese-listed firms and the generalized difference-in-differences (DID) approach, we find that information quality significantly improves after an exogenous removal of short selling ban. Treated firms engage less in accruals management and experience fewer restatements. Auditors exert more effort and spend more time in auditing financial statements. We further demonstrate that the improvement of information quality is driven by increased investor attention and media coverage of the treated firms. The results are more pronounced in firms with lower institutional ownership and in non-state-owned firms.
Journal: Emerging Markets Finance and Trade
Pages: 2803-2819
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2010538
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2010538
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Template-Type: ReDIF-Article 1.0
Author-Name: Xinjie Wang
Author-X-Name-First: Xinjie
Author-X-Name-Last: Wang
Author-Name: Ge Wu
Author-X-Name-First: Ge
Author-X-Name-Last: Wu
Author-Name: Zhiqiang Xiang
Author-X-Name-First: Zhiqiang
Author-X-Name-Last: Xiang
Author-Name: Jianyu Zhang
Author-X-Name-First: Jianyu
Author-X-Name-Last: Zhang
Title: Air Pollution and Media Slant: Evidence from Chinese Corporate News
Abstract: 
 This paper examines the impact of air pollution on the media slant of publicly listed firms in China. Using a large panel of air quality and media data at the city level, we find that lower air quality generally leads to a more negative media slant. When the air quality falls from lightly polluted to heavily polluted, the number of negative sentences in a news article increases by about 1%. Our subsample analysis shows that the effect of air pollution on media slant is similar for news articles covering large and small firms, SOE and non-SOE firms and for official and non-official newspaper articles. Furthermore, the effect of air pollution on media slant is stronger for firms in heavy polluting industries. These results suggest that air pollution affects media slant.
Journal: Emerging Markets Finance and Trade
Pages: 2880-2894
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2013196
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2013196
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Template-Type: ReDIF-Article 1.0
Author-Name: Xinxin Ma
Author-X-Name-First: Xinxin
Author-X-Name-Last: Ma
Title: Social Insurances and Risky Financial Market Participation: Evidence from China
Abstract: 
 Using four-wave national longitudinal survey data, this study estimates the influence of pension and medical insurance on risky financial market participation for individuals aged ≥ 45 years in China. Three key findings emerge. First, both pension and medical insurance positively affect the probability of holding risky financial assets and their shares. However, both insurances’ influences are almost insignificant when addressing the heterogeneity problem. Second, pension’s positive effect is greater for lower-risk financial assets (bonds) than for higher-risk financial assets (stocks), but the results are reversed for medical insurance. Third, the influences of social insurance differ by age and the hukou group, as well as by the type of pension and medical insurance.
Journal: Emerging Markets Finance and Trade
Pages: 2957-2975
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2019011
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2019011
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:10:p:2957-2975



Template-Type: ReDIF-Article 1.0
Author-Name: Jinqiang Xu
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Xu
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Title: China’s Aid to Africa and Dual Marginal of Recipient Countries’ Exports
Abstract: 
 This paper research the impact of China’s aid to Africa on the products export to China of recipient countries by decomposing the export growth into extensive and intensive margins. Studies have proved that China’s aid to Africa contributes to the growth of export to China of recipient countries, and the growth of export of products is reflected in the extensive margin. Next, we also use a series of robustness tests to prove the robustness of the researched results in this paper. At the same time, we use the interaction term of China’s fiscal expenditure data and the number of China’s aid to Africa as an instrumental variable to eliminate the potential endogenous problems. Finally, the results of mechanism test show that China’s aid to Africa will promote the growth of product export and the dual marginal growth of product export by improving the infrastructure of recipient countries and enhancing the industrialization level of recipient countries. In addition, China’s aid to Africa shows that China’s efforts to shoulder its role as a responsible power in building a community of a shared future for humanity and promoting development of all countries.
Journal: Emerging Markets Finance and Trade
Pages: 2992-3005
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2024165
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2024165
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Template-Type: ReDIF-Article 1.0
Author-Name: Dongxu Li
Author-X-Name-First: Dongxu
Author-X-Name-Last: Li
Author-Name: Erzhuo Liu
Author-X-Name-First: Erzhuo
Author-X-Name-Last: Liu
Author-Name: Yunwei Li
Author-X-Name-First: Yunwei
Author-X-Name-Last: Li
Title: Macroeconomic News and Risk Exposure to Foreign Exchange Rate Evidence from Chinese Listed Firms
Abstract: 
 This paper estimates the exchange rate exposure of Chinese listed firms across industries and tests whether their risk exposure to foreign exchange rates is shaped by macroeconomic news. Using a sample of 2321 Chinese listed firms from 2007 to 2020, we use six alternative models to estimate firms’ exposure to foreign exchange risk and their variations following macroeconomic news. We find that the risk exposure to foreign exchange rates significantly responds to macroeconomic news. The response is larger to news about GDP and international trade, and the response is particularly strong during the times of the Global Financial Crisis, the US-China trade war and the outbreak of COVID-19. Across different currencies, firms are more sensitive to the US dollar exchange rate risk. Across different industries, firms in technology-intensive industries are more sensitive to foreign exchange risk. Overall, the findings in this paper shed light upon the risk management of multinational firms in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 2783-2802
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2010537
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2010537
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Template-Type: ReDIF-Article 1.0
Author-Name: Ce Guo
Author-X-Name-First: Ce
Author-X-Name-Last: Guo
Author-Name: Xijian Wang
Author-X-Name-First: Xijian
Author-X-Name-Last: Wang
Author-Name: Gecheng Yuan
Author-X-Name-First: Gecheng
Author-X-Name-Last: Yuan
Title: Digital Finance and the Efficiency of Household Investment Portfolios
Abstract: 
 In recent years, how to increase the property income of Chinese households has aroused widespread attention. Our study focuses on the impact and impact mechanism of digital finance on household investment portfolio efficiency in China. Our study reveals that digital finance in China can promote household investment portfolio efficiency. Digital finance development mainly affects household investment efficiency by influencing financial literacy and investor sentiment. Further, we found that household wealth had an inverted U-shaped effect on the impact of digital finance on household investment efficiency. And the enhancement of households’ preference for overconsumption inhibited the impact of digital finance on household investment portfolio efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 2895-2909
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2013197
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2013197
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Template-Type: ReDIF-Article 1.0
Author-Name: Jing Wang
Author-X-Name-First: Jing
Author-X-Name-Last: Wang
Author-Name: Xiaohua Yu
Author-X-Name-First: Xiaohua
Author-X-Name-Last: Yu
Author-Name: Kaiyu Lyu
Author-X-Name-First: Kaiyu
Author-X-Name-Last: Lyu
Author-Name: Jan-Henning Feil
Author-X-Name-First: Jan-Henning
Author-X-Name-Last: Feil
Title: The Impact of Mobile Finance Use on Livelihoods of Farmers in Rural China
Abstract: 
 Mobile finance plays an important role in supporting productive activities and improving the basic livelihoods of rural households. Using three-round panel data and employing control function approach to address the self-selection bias issue, this study shows that mobile finance use significantly increases farmers’ livelihoods, measured by farm income and per capita consumption in China, with a larger marginal effect for smallholders and credit-constrained farmers. We further divide mobile finance into two types and reveal that the mobile payment use plays a larger role in farm income, while the mobile banking use has a larger impact on household consumption.
Journal: Emerging Markets Finance and Trade
Pages: 2867-2879
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2013195
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2013195
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Template-Type: ReDIF-Article 1.0
Author-Name: Yin-Siang Huang
Author-X-Name-First: Yin-Siang
Author-X-Name-Last: Huang
Author-Name: You-Xun Lu
Author-X-Name-First: You-Xun
Author-X-Name-Last: Lu
Title: Coronation Day of Financial Market, Investor Attention, and Stock Return: A Perspective of Local and Global Media
Abstract: 
 We give the highest-priced stock an eye-catching heading, “Stock King,” and refer to the event that a new stock becomes the stock with the highest share price as the Stock King change event. Using data from Taiwan Stock Exchange, we divide news media into local and global media and examine how these two media react to Stock King change events, thereby affecting the return of the whole financial market and the Stock King itself. The novel finding of our study is that local and global media have very different implications on the return of the market and the Stock King. Specifically, local media coverage is more effective in increasing the whole market return, while global media coverage has a significant effect on the Stock King’s return. Finally, as for the relationship between these two media, when Stock King change events occur, our results show that local media reports have a spillover effect on global media coverage.
Journal: Emerging Markets Finance and Trade
Pages: 2837-2850
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2010540
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2010540
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Template-Type: ReDIF-Article 1.0
Author-Name: Lei Yin
Author-X-Name-First: Lei
Author-X-Name-Last: Yin
Author-Name: Di Wang
Author-X-Name-First: Di
Author-X-Name-Last: Wang
Author-Name: Yanyan Li
Author-X-Name-First: Yanyan
Author-X-Name-Last: Li
Title: Effectiveness of Tax Policies in Corporate Restructuring: Evidence from China
Abstract: 
 As an international practice, tax policies generally provide the required support to corporate restructuring. Accordingly, we used the regression discontinuity approach to analyze and evaluate the effectiveness of China’s tax policies in corporate restructuring in recent years. The study results revealed that developing policies in a targeted manner can promote corporate restructuring. Furthermore, the development of policies in China in 2014 has resulted in a compound effect. Therefore, the Chinese government may consider further improving the tax support for corporate restructuring through the following strategies: lowering the threshold for applying restructuring tax incentives, improving the design of restructuring tax policies, improving tax services, and strengthening tax supervision of high-risk restructuring issues.
Journal: Emerging Markets Finance and Trade
Pages: 2942-2956
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2016389
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2016389
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Template-Type: ReDIF-Article 1.0
Author-Name: Zhaolan Wang
Author-X-Name-First: Zhaolan
Author-X-Name-Last: Wang
Author-Name: Ziqin Xie
Author-X-Name-First: Ziqin
Author-X-Name-Last: Xie
Author-Name: Chen Chen
Author-X-Name-First: Chen
Author-X-Name-Last: Chen
Title: Executives with Economic Management Education Backgrounds and Stock Price Crash Risk: Evidence from Chinese A-share Markets
Abstract: 
 This paper sheds light on the impact of executives’ backgrounds on their firms’ stock price crash risk. Specifically, it finds that hiring executives with economic management education backgrounds can significantly increase firms’ stock price crash risk. Robustness and endogeneity tests confirm this finding. Further analysis reveals that the observed impact is greatest for non-state-owned firms, firms with low management shareholding ratios, and firms facing performance pressure. Hiring chairmen with economic management education backgrounds will carries a higher risk of a share-price crash. These findings enhance understanding of the formation of and factors influencing stock price crash risk.
Journal: Emerging Markets Finance and Trade
Pages: 2764-2782
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2009798
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2009798
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Template-Type: ReDIF-Article 1.0
Author-Name: Bing Ye
Author-X-Name-First: Bing
Author-X-Name-Last: Ye
Author-Name: Jinjian Yuan
Author-X-Name-First: Jinjian
Author-X-Name-Last: Yuan
Author-Name: Yonghao Guan
Author-X-Name-First: Yonghao
Author-X-Name-Last: Guan
Title: Internet Finance, Financing of Small and Micro Enterprises and the Macroeconomy
Abstract: 
 With regard to lending to small and micro enterprises (SMEs), the cost of traditional finance is mainly marginal. By contrast, the cost of Internet finance is mainly fixed, and the average cost of Internet finance is largely reduced. From the perspective of cost structure and size changes, we build dynamic equilibrium models. We prove that the transition from traditional to Internet finance will increase the number of SMEs obtaining loans and the aggregate output. We also conduct a quantitative analysis with the result revealing that Internet finance will increase China’s credit-access SMEs by 619.91% and aggregate output by 2.72%.
Journal: Emerging Markets Finance and Trade
Pages: 2851-2866
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2013194
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2013194
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Template-Type: ReDIF-Article 1.0
Author-Name: Daejung Yang
Author-X-Name-First: Daejung
Author-X-Name-Last: Yang
Author-Name: Kyongwook Choi
Author-X-Name-First: Kyongwook
Author-X-Name-Last: Choi
Title: Home Bias of Korean Resident Bond Investors: The Role of FX Hedging
Abstract: 
 This paper analyzes the home bias of Korean resident bond investors, as their overseas bond investments have rapidly increased after 2000. For this purpose, we introduce the Won/invested currency swap basis (interest rate differential adjusted FX swap return) and the Won/invested currency uncovered basis (interest rate differential adjusted expected FX spot return) along with the interest rate gap based on CIP and UCIP respectively in order to address the return factors in detail. The model coefficients are estimated by the static pooled OLS and the dynamic system GMM over the period of 2002–2018 and 2009–2018 respectively. With these estimation results, we have obtained the following implications. First, it is expected that the level of home bias will decline as Korean resident overseas bond investments increase, as the factors that have traditionally caused home bias continue to mitigate. Second, when Korean residents invest in overseas bond markets, the FX risk has partially hedged at the country level. This suggests that the rapid in/out flows for overseas bond transactions make a significant impact on the FX swap rates as well as spot rates. Third, both groups of investors have taken into heavy consideration both the FX swap basis (or the FX uncovered basis) related to the invested currency/USD as well as to Won/USD. Our findings suggest that the policy makers need to reconsider their conventional monitoring methods which are focused on the Won/USD transactions.
Journal: Emerging Markets Finance and Trade
Pages: 2736-2750
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.1997739
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1997739
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Template-Type: ReDIF-Article 1.0
Author-Name: Fan Jiang
Author-X-Name-First: Fan
Author-X-Name-Last: Jiang
Author-Name: Huan Liu
Author-X-Name-First: Huan
Author-X-Name-Last: Liu
Author-Name: Qiankun Gu
Author-X-Name-First: Qiankun
Author-X-Name-Last: Gu
Author-Name: Ling Zhu
Author-X-Name-First: Ling
Author-X-Name-Last: Zhu
Title: Why a Firm Hires Former Regulators: Governance Improvement or Regulation Circumvention?
Abstract: 
 We investigate the effects of hiring former officials of the China Securities Regulatory Commission (CSRC) on a firm’s misconduct likelihood. Using the CSRC’s enforcement actions data from 2008 to 2015, we find that revolving-door directors significantly increase a firm’s ex ante misconduct likelihood. Further analysis shows that the effect of revolving-door directors is more significant in firms with higher administrative ranks for revolving-door directors and firms without financial expertise. Our findings are consistent with the “regulation circumvention” hypothesis, which suggests that revolving-door directors may help regulated firms to game the system after they join the regulated firms. Moreover, to establish causality, we adopt the number of direct flights from Beijing to the firm’s headquarters as the instrument variable. Our results are robust to a variety of model specifications.
Journal: Emerging Markets Finance and Trade
Pages: 2976-2991
Issue: 10
Volume: 58
Year: 2022
Month: 08
X-DOI: 10.1080/1540496X.2021.2021178
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2021178
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Template-Type: ReDIF-Article 1.0
Author-Name: Dongni Chang
Author-X-Name-First: Dongni
Author-X-Name-Last: Chang
Author-Name: Wanming Chen
Author-X-Name-First: Wanming
Author-X-Name-Last: Chen
Author-Name: Xiujun Tai
Author-X-Name-First: Xiujun
Author-X-Name-Last: Tai
Author-Name: Yanwu Si
Author-X-Name-First: Yanwu
Author-X-Name-Last: Si
Title: The Impact of Financial Literacy on Rural Household Self-Employment: The Mediating Role of Financial Ability
Abstract: 
 Focusing on rural household self-employment, this paper analyzes the relation between financial literacy and self-employment in China. More importantly, it tests the mediating role of farmers’ financial ability regarding asset proliferation and borrowing capacity in this relationship. We draw the following conclusions. First, financial literacy has a significant positive impact on the self-employment of poor rural households. Second, financial ability plays an intermediary role in the relation between financial literacy and self-employment. Third, the borrowing ability of rural households has a strong intermediary effect on the relation between objective financial literacy and self-employment.
Journal: Emerging Markets Finance and Trade
Pages: 3297-3308
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2043152
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2043152
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:11:p:3297-3308



Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoke Zhang
Author-X-Name-First: Xiaoke
Author-X-Name-Last: Zhang
Author-Name: Xuankai Zhao
Author-X-Name-First: Xuankai
Author-X-Name-Last: Zhao
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Title: Does It Pay to Be Responsible? The Performance of ESG Investing in China
Abstract: 
 The capital market in China has progressed rapidly within the realm of ESG and sustainability. This study investigates whether and how ESG investing works in China. The portfolio-level analysis shows that both high- and low-level ESG portfolios can earn higher abnormal returns, which implies a non-linear relationship between ESG and portfolio excess returns. In stock-level analysis, the effect of ESG on future stock returns varies by pillar and sector. Governance and social pillars work in opposite directions to predict returns. In the secondary (tertiary) sector, higher ESG scores predict lower (higher) returns. Furthermore, we find that higher ESG performance is associated with worse future profitability, which impairs firm value, and lower cost of equity capital, which increases firm value.
Journal: Emerging Markets Finance and Trade
Pages: 3048-3075
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2026768
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2026768
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Template-Type: ReDIF-Article 1.0
Author-Name: Yan Xue
Author-X-Name-First: Yan
Author-X-Name-Last: Xue
Author-Name: Caidong Jiang
Author-X-Name-First: Caidong
Author-X-Name-Last: Jiang
Author-Name: Yunxia Guo
Author-X-Name-First: Yunxia
Author-X-Name-Last: Guo
Author-Name: Jianmin Liu
Author-X-Name-First: Jianmin
Author-X-Name-Last: Liu
Author-Name: Haitao Wu
Author-X-Name-First: Haitao
Author-X-Name-Last: Wu
Author-Name: Yu Hao
Author-X-Name-First: Yu
Author-X-Name-Last: Hao
Title: Corporate Social Responsibility and High-quality Development: Do Green Innovation, Environmental Investment and Corporate Governance Matter?
Abstract: 
 Under the network public opinion ecology in the Omni-media Era, corporate social responsibility (CSR) performance can provide important internal and external environmental support for improving corporate development quality. Based on the data of Chinese listed companies from 2010 to 2019, this paper evaluates the impact and mechanism of CSR on corporate high-quality development. The results show that CSR significantly promotes the improvement of corporates’ development quality. The results remain robust in altering variables, controlling more urban and corporate-level variables, and solving endogeneity. Mechanism analysis indicates that CSR can promote the high-quality development of corporates by improving green innovation, environmental investment, and corporate governance. Heterogeneity analysis shows that the incentive effect of CSR on corporate high-quality development is more obvious in non-state-owned corporates and when the market is in a “bull market.” This paper provides feasible ideas for adjusting the operating behavior of Chinese listed companies and government policy orientation.
Journal: Emerging Markets Finance and Trade
Pages: 3191-3214
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2034616
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2034616
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Template-Type: ReDIF-Article 1.0
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Jyh-Jiuan Lin
Author-X-Name-First: Jyh-Jiuan
Author-X-Name-Last: Lin
Author-Name: Xuelian Li
Author-X-Name-First: Xuelian
Author-X-Name-Last: Li
Author-Name: Zehe Song
Author-X-Name-First: Zehe
Author-X-Name-Last: Song
Title: Guaranteed Rate-setting Behavior, Life Insurance Premium, and Policyholder Protection
Abstract: 
 This study explores the determinants of an insurer’s guaranteed rate based on a contingent claim model. According to the model development, we structure and estimate the guaranteed rate setting and policyholder protection equations. A time-series approach explains the guaranteed rate-setting behavior and insurance stability captured by policyholder protection from 1990 to 2018. The evidence suggests that derivatives, life insurance premiums, administrative costs, and federal income tax affect the insurer’s guaranteed rate-setting behavior. Increasing life insurance premiums and administrative costs in asset-liability matching management significantly enhance policyholder protection, contributing to insurance stability.
Journal: Emerging Markets Finance and Trade
Pages: 3076-3089
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2026769
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2026769
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Template-Type: ReDIF-Article 1.0
Author-Name: Garima Goel
Author-X-Name-First: Garima
Author-X-Name-Last: Goel
Author-Name: Saumya Ranjan Dash
Author-X-Name-First: Saumya Ranjan
Author-X-Name-Last: Dash
Author-Name: Robert Brooks
Author-X-Name-First: Robert
Author-X-Name-Last: Brooks
Author-Name: Sowmya Subramaniam
Author-X-Name-First: Sowmya
Author-X-Name-Last: Subramaniam
Title: Asymmetric effect of FEARS Sentiment on Stock Returns: Short-sale constraints, limits to arbitrage, and behavioural biases
Abstract: 
 This paper examines the implications of short-sale constraints, limits to arbitrage, and behavioral biases on the FEARS sentiment and stock returns asymmetric relationship. Our results indicate a strong negative relationship between FEARS sentiment and stock return. Our findings show that short-sell and arbitrage constraint attenuates the potential impact of sentiment on return behavior. We find that the FEARS sentiment influences behavioral biases and the trading activity of market participants.
Journal: Emerging Markets Finance and Trade
Pages: 3119-3135
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2028618
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2028618
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Template-Type: ReDIF-Article 1.0
Author-Name: Shuangyan Li
Author-X-Name-First: Shuangyan
Author-X-Name-Last: Li
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Xinyu Peng
Author-X-Name-First: Xinyu
Author-X-Name-Last: Peng
Title: The Impact of Financialization on Mergers and acquisitions:Evidence from Chinese Manufacturing Listed Firms
Abstract: 
 This paper studies a correlation between financialization and mergers and acquisitions (M&As). Using firms-level panel data of Chinese manufacturing listed firms over the period from 2013 to 2018, we find that financialization has a statistically significant reducing effect on the number of M&A deals. In addition, we find in non-stated-owned enterprises that the negative impact of financialization on M&A deals is more significant than that of state-owned enterprises (SOEs). Lastly, the regression models and independent variables are changed to demonstrate the robustness of the conclusions.
Journal: Emerging Markets Finance and Trade
Pages: 3152-3163
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2031969
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2031969
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Template-Type: ReDIF-Article 1.0
Author-Name: Xueman Xiang
Author-X-Name-First: Xueman
Author-X-Name-Last: Xiang
Author-Name: Biao Yi
Author-X-Name-First: Biao
Author-X-Name-Last: Yi
Title: Directors’ Foreign Experience and Firm Innovation
Abstract: 
 This paper investigates whether board directors with foreign experience promote firm innovation. The evidence suggests that firms with a larger proportion of directors with foreign experience on their board have better innovation outcomes, both quantity and quality. This finding remains for various robustness tests. We propose three potential underlying channels behind and verify them. The findings show that the positive effect of directors’ foreign experience on firm innovation is stronger for highly innovative industries and more pronounced when foreign experience is gained in highly innovative countries, supporting the advising channel. Besides, independent directors exert a greater effect on innovation than non-independent directors, supporting the monitoring channel. Furthermore, directors with foreign experience provide more failure-tolerant CEO incentives as they lower CEO turnover-performance sensitivity and CEO pay-for-performance sensitivity, supporting the insurance channel. Overall, our paper provides robust and comprehensive evidence for the impact of directors’ foreign experience on firm innovation.
Journal: Emerging Markets Finance and Trade
Pages: 3248-3264
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2037417
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2037417
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Template-Type: ReDIF-Article 1.0
Author-Name: Kegui Wang
Author-X-Name-First: Kegui
Author-X-Name-Last: Wang
Author-Name: Juxian Wang
Author-X-Name-First: Juxian
Author-X-Name-Last: Wang
Author-Name: Nan Dong
Author-X-Name-First: Nan
Author-X-Name-Last: Dong
Title: Government Intervention and Debt Financing Costs: Evidence from Government-Guided Funds
Abstract: 
 Few studies examine how government intervention influences debt financing costs. We use firm ownership by government-guided funds (“GG funds” or “GGFs”) as a proxy for government intervention and explore whether and how GG funds influence debt financing costs. Using a 2009–2020 sample of A-share listed firms in China, we find that GG funds significantly increase debt financing costs, mainly because firms held by GGFs signal more information regarding their poor financial situation and performance to debt providers, which thus charge higher interest rates for loans. Moreover, this effect is stronger for firms located in the eastern region, for firms with a higher market index and for non-SOEs (vs. SOEs). Overall, we provide evidence that the government plays an important monitoring role in debt financing costs through GGF ownership.
Journal: Emerging Markets Finance and Trade
Pages: 3284-3296
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2042249
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2042249
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Template-Type: ReDIF-Article 1.0
Author-Name: Myounghwa Sim
Author-X-Name-First: Myounghwa
Author-X-Name-Last: Sim
Author-Name: Jangkoo Kang
Author-X-Name-First: Jangkoo
Author-X-Name-Last: Kang
Author-Name: Hee-Eun Kim
Author-X-Name-First: Hee-Eun
Author-X-Name-Last: Kim
Author-Name: Eunmee Lee
Author-X-Name-First: Eunmee
Author-X-Name-Last: Lee
Title: The Momentum Strategies and Salience: Evidence from the Korean Stock Market
Abstract: 
 This study compares momentum strategies based on traditional, idiosyncratic, rank, and sign momentum measures in the Korean stock market. We find that the traditional momentum strategy underperforms and suffers long-term return reversals, while other strategies (idiosyncratic, rank, and sign) exhibit stable profits. We employ a direct measure of salience and suggest that the unprofitability of the traditional momentum strategy in the Korean market can be explained by the salience effect. We further show that the traditional momentum strategy can be profitable after excluding stocks with salient payoffs in the formation period.
Journal: Emerging Markets Finance and Trade
Pages: 3177-3190
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2034615
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2034615
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:11:p:3177-3190



Template-Type: ReDIF-Article 1.0
Author-Name: Liurui Deng
Author-X-Name-First: Liurui
Author-X-Name-Last: Deng
Author-Name: Yiwen Zhao
Author-X-Name-First: Yiwen
Author-X-Name-Last: Zhao
Title: Investment Lag, Financially Constraints and Company Value—Evidence from China
Abstract: 
 We develop a valuation model of companies under financing constraints and investment time lags. Moreover, we investigate the specific time lag effect of investment on company value through Panel-VAR models using data from 622 companies listed on the Shanghai and Shenzhen stock exchanges in China from 2011–2019. The impact of cash flow and debt financing cost on company value is also dissected. The results indicate a one-period time lag effect for the investment. Cash flow is more valuable to finance-constrained companies than to non-financing constrained companies. The debt financing costs of finance-constrained companies is positively related to company value.
Journal: Emerging Markets Finance and Trade
Pages: 3034-3047
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2021.2025047
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2025047
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Template-Type: ReDIF-Article 1.0
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Wenzhe Zhang
Author-X-Name-First: Wenzhe
Author-X-Name-Last: Zhang
Author-Name: Gaowen Kong
Author-X-Name-First: Gaowen
Author-X-Name-Last: Kong
Title: Does Government Decentralization Shape Firms’ Pollution Emissions? Evidence from a Natural Experiment in China
Abstract: 
 This study investigates whether and how government decentralization affects firms’ pollution emissions. To identify causality, we introduce a triple-difference strategy based on a natural experiment launched by the central government of China, i.e., the “Province-Managing-County” fiscal reform, which aims to eliminate the prefecture government as the intermediate layer between province and county. We show that the PMC fiscal reform increases firms’ pollution emissions. Our findings are particularly pronounced for firms located in Eastern China and in provinces with high-level marketization. Welfare analysis exhibits that decentralization-induced pollution on PM2.5 leads to around 449–663 increase in death every year at the county-level.
Journal: Emerging Markets Finance and Trade
Pages: 3136-3151
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2029400
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2029400
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Template-Type: ReDIF-Article 1.0
Author-Name: Qiankun Gu
Author-X-Name-First: Qiankun
Author-X-Name-Last: Gu
Author-Name: Wanfa Lin
Author-X-Name-First: Wanfa
Author-X-Name-Last: Lin
Author-Name: Yan Sheng
Author-X-Name-First: Yan
Author-X-Name-Last: Sheng
Author-Name: Haoyu Wang
Author-X-Name-First: Haoyu
Author-X-Name-Last: Wang
Title: Corporate Private Information and Credit Ratings: Evidence from Corporate Geographic Distance
Abstract: 
 This paper uses the geographic distance between corporate locations and headquarters of credit rating agency as a proxy for corporate private information acknowledged by rating agency, to investigate the effect of corporate private information on its credit ratings. Our samples include the Chinese institutional and corporate bond’s credit ratings from 2008 to 2018. Results indicate the geographic distance is negatively associated with the corporate private information accessed by rating agency, leading to a higher information asymmetry, worse institutional and corporate bonds’ credit rating and lower quality of the rating information content. Results remain solid and significant after controlling for the implicit guarantee of the government, corporate public information, ownership structure and analysts’ skills. We find corporate private information generates more values for corporates whose information environments are more complex, reflected in more business segments and less covered analysts. We also find the open of high-speed railway in China facilitates rating agency’s access to corporate private information, thus reducing the impact of geographic distance, while the lockdown periods of Covid-19 pandemic in China suddenly increase the cost of collecting private information and thus aggravating the distance effect.
Journal: Emerging Markets Finance and Trade
Pages: 3215-3232
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2034617
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2034617
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Template-Type: ReDIF-Article 1.0
Author-Name: Xiaoyin Wei
Author-X-Name-First: Xiaoyin
Author-X-Name-Last: Wei
Author-Name: Ellie Chapple
Author-X-Name-First: Ellie
Author-X-Name-Last: Chapple
Author-Name: Natalie Elms
Author-X-Name-First: Natalie
Author-X-Name-Last: Elms
Author-Name: Yanyan Huang
Author-X-Name-First: Yanyan
Author-X-Name-Last: Huang
Title: The Impact of CEOs’ Social Capital on China’s Qualified Foreign Institutional Investors’ Holdings
Abstract: 
 The phenomenon of underinvestment in foreign equity securities is widely acknowledged as equity home bias. Relying on China’s sociological characteristics to explain this equity home bias, this research investigates whether CEOs’ social capital is a factor affecting the investment decisions of qualified foreign institutional investors (QFIIs). The empirical results show that CEOs’ elite university network (i.e., CEOs’ elite networks from the top 2 universities in China – Peking University & Tsinghua University) are significantly negatively related to QFIIs’ holdings whereas CEOs’ political connections (i.e., CEOs’ formal position interlock & political background) are significantly positively related to QFIIs’ investment. The findings also show that QFIIs prefer to invest in cross-listed firms with higher capitalization and enhanced performance. Our research confirms the central view of social capital theory that social networks have value, but also supplements the literature by finding that social capital may have greater benefit for CEOs rather than shareholders.
Journal: Emerging Markets Finance and Trade
Pages: 3265-3283
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2040985
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2040985
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:11:p:3265-3283



Template-Type: ReDIF-Article 1.0
Author-Name: Haishan Yu
Author-X-Name-First: Haishan
Author-X-Name-Last: Yu
Author-Name: Wendai Lv
Author-X-Name-First: Wendai
Author-X-Name-Last: Lv
Author-Name: Huan Liu
Author-X-Name-First: Huan
Author-X-Name-Last: Liu
Author-Name: Jingda Wang
Author-X-Name-First: Jingda
Author-X-Name-Last: Wang
Title: Economic Policy Uncertainty and Corporate Bank Credits: Evidence from China
Abstract: 
 This paper studies the relationship between economic policy uncertainty (EPU) and corporate bank credits for Chinese listed companies. We find that high EPU reduce the corporate bank credits. The negative association is less obvious in state-owned companies, that is, SOEs have a higher capacity to resist uncertainty than non-SOEs. Further research indicates that the positive effect of state-owned status on bank credit lines during times of rising EPU is stronger among companies facing more severe financing constraints.
Journal: Emerging Markets Finance and Trade
Pages: 3023-3033
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2021.2021179
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.2021179
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Template-Type: ReDIF-Article 1.0
Author-Name: Mudeer A Khattak
Author-X-Name-First: Mudeer A
Author-X-Name-Last: Khattak
Author-Name: Noureen Khan
Author-X-Name-First: Noureen
Author-X-Name-Last: Khan
Author-Name: Mohsin Ali
Author-X-Name-First: Mohsin
Author-X-Name-Last: Ali
Author-Name: Syed Aun R. Rizvi
Author-X-Name-First: Syed Aun R.
Author-X-Name-Last: Rizvi
Title: Market Concentration, Bank’s Pricing Power, and Deposit Rates: Evidence from Dual Banking System
Abstract: 
 This research studies i) the impact of banks pricing power and market concentration on the bank’s deposit rate, ii) if the impact differs for Islamic banks, and iii) the importance of banks power and market concentration while impacting the deposit rates behavior. The sample of this study consists of 120 banks from 2007 to 2018. Banks’ pricing power appears to be reducing the deposit rates and market concentration shows no significant impact on banks’ deposit rate. Pricing power negatively impacts the conventional banks’ deposit rates, while Islamic banks are severely impacted by concentration in the market. The impact of banks’ power on deposit rates is greater in concentrated markets.
Journal: Emerging Markets Finance and Trade
Pages: 3103-3118
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2027238
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2027238
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:11:p:3103-3118



Template-Type: ReDIF-Article 1.0
Author-Name: Xue Tan
Author-X-Name-First: Xue
Author-X-Name-Last: Tan
Author-Name: Miaowei Peng
Author-X-Name-First: Miaowei
Author-X-Name-Last: Peng
Author-Name: Jingwei Yin
Author-X-Name-First: Jingwei
Author-X-Name-Last: Yin
Author-Name: Zongfeng Xiu
Author-X-Name-First: Zongfeng
Author-X-Name-Last: Xiu
Title: Does Local Governments’ Environmental Information Disclosure Promote Corporate Green Innovations?
Abstract: 
 Using the pollution information transparency index (PITI) as a measure of environmental information disclosure by the local governments in China, we find that the higher the pollution information transparency, the more likely green innovations are to occur. Channel tests show that environmental information disclosure by the local governments promotes corporate green innovations through political pressure channel and law enforcement channel. Moreover, the environmental information disclosure has long-term effects on corporate green innovations, and the relationship between environmental information disclosure and corporate green innovations is more pronounced with firms owned by local governments and private firms than central government-owned firms. We also show that firms with fewer agency problems are inclined to have more green innovations.
Journal: Emerging Markets Finance and Trade
Pages: 3164-3176
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2033723
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2033723
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Template-Type: ReDIF-Article 1.0
Author-Name: Shuangyan Li
Author-X-Name-First: Shuangyan
Author-X-Name-Last: Li
Author-Name: Dan Wang
Author-X-Name-First: Dan
Author-X-Name-Last: Wang
Author-Name: Hao Dong
Author-X-Name-First: Hao
Author-X-Name-Last: Dong
Author-Name: Qiang Fu
Author-X-Name-First: Qiang
Author-X-Name-Last: Fu
Title: Blockchain Development and Corporate Performance in China: The Role of Ownership
Abstract: 
 This research investigates the short-term and long-term performance and volatility of publicly traded firms engaged in blockchain business. In particular, it examines how ownership structure impacts performance and volatility in such firms. We manually collected the data of Chinese A-listed companies participating in blockchain development during 2013–2018 as samples, and find that both short- and long-term performance and volatility significantly decrease among these firms after involvement in blockchain business. Ownership concentration has a positive correlation with stock returns, return on assets, and volatilities, whereas the state as a controlling shareholder strengthens these positive links.
Journal: Emerging Markets Finance and Trade
Pages: 3090-3102
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2026770
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2026770
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:11:p:3090-3102



Template-Type: ReDIF-Article 1.0
Author-Name: Kai Peng
Author-X-Name-First: Kai
Author-X-Name-Last: Peng
Author-Name: Qiankun Gu
Author-X-Name-First: Qiankun
Author-X-Name-Last: Gu
Author-Name: Yi Hu
Author-X-Name-First: Yi
Author-X-Name-Last: Hu
Author-Name: Shuchang Jin
Author-X-Name-First: Shuchang
Author-X-Name-Last: Jin
Author-Name: Juan Ni
Author-X-Name-First: Juan
Author-X-Name-Last: Ni
Title: Is Goodwill Attritional? Survival Analysis of the M&A Goodwill of A-Share Listed Company from 2007 to 2017
Abstract: 
 The subsequent measurement of goodwill in mergers and acquisitions has been controversial for a long time in academia and practice. This article attempts to propose a new conceptual view of the “attrition” of goodwill to improve the subsequent measurement model of goodwill. In this paper, the survival analysis method is introduced into the study of goodwill impairment decision-making and the influencing factors of economic life for the first time. Through the non-parametric analysis of Kaplan-Meier survival function, Nelson-Aalen cumulative risk function and risk rate function estimation, it is found that goodwill has the characteristics of wasting: the goodwill impairment risk of M&A projects is in an inverted U-shape and the goodwill starts to be impaired in the 3rd year on average within the 95% confidence interval, and the impairment risk rate reaches the highest (up to 8%) in the fifth year, and the probability of no impairment for 10 consecutive years is about 50%. Further regression analysis based on the survival risk model shows that human factors such as the pre-acquisition valuation level of the acquirer, management motivation and external supervision distort the impairment decision.
Journal: Emerging Markets Finance and Trade
Pages: 3233-3247
Issue: 11
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2035718
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2035718
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:11:p:3233-3247

Template-Type: ReDIF-Article 1.0
# input file: MREE_A_2057219_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Chong Chen
Author-X-Name-First: Chong
Author-X-Name-Last: Chen
Author-Name: Huijie Cui
Author-X-Name-First: Huijie
Author-X-Name-Last: Cui
Author-Name: Yanan Zhang
Author-X-Name-First: Yanan
Author-X-Name-Last: Zhang
Title: CEO Duality and Bank Loan Contracting: Evidence from China
Abstract: 
 This paper investigates the impact of CEO duality on bank loan contracting costs. Using hand-collected data of China’s loan contracting terms throughout 2004–2020, we find that CEO duality leads to stricter loan contracting terms, shown as higher adjusted loan rates and shorter loan maturity. The results hold after we perform robustness tests including change analyses, propensity score matching analyses, as well as tests based on exogenous CEO turnovers. The positive relationship between duality and loan costs is more pronounced among firms with higher internal and external uncertainties. We further find that information asymmetry and CEO entrenchment are possible channels through which CEO duality increases bank loan contracting costs. Overall, the evidence supports the agency theory view that CEO duality increases firm’s credit risk, thus leading to stricter bank loan contracting terms.
Journal: Emerging Markets Finance and Trade
Pages: 3526-3540
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2057219
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2057219
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Template-Type: ReDIF-Article 1.0
# input file: MREE_A_2037416_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Di Wang
Author-X-Name-First: Di
Author-X-Name-Last: Wang
Author-Name: Zhanchi Wu
Author-X-Name-First: Zhanchi
Author-X-Name-Last: Wu
Author-Name: Bangzhu Zhu
Author-X-Name-First: Bangzhu
Author-X-Name-Last: Zhu
Title: Controlling Shareholder Characteristics and Corporate Debt Default Risk: Evidence Based on Machine Learning
Abstract: 
 The influence of controlling shareholder characteristics on corporate risk has been a popular topic for discussion in academic and theoretical circles. However, current research lacks systematic and quantitative conclusions based on predictive ability, as it only focuses on the causal relationship between a single characteristic of the controlling shareholder and corporate risk. This paper utilizes the back propagation neural network based on gray wolf algorithm (GWO-BP) method in the machine learning algorithm for the first time and takes the listed companies that publicly issue bonds in the Chinese bond market as a research sample. It summarizes the qualities of controlling shareholders from the perspective of controlling shareholders’ risk-taking and benefits expropriation and examines multi-dimensional controlling shareholder characteristics for predicting the debt default risk of companies. This research established that: (1) Overall, the characteristics of controlling shareholders can improve the ability to predict the debt default of a company; (2) The features of the investment portfolio of the controlling shareholder have a higher degree of predicting the debt default risk of a company,while the properties of equity structure and related transactions have a lower degree of predicting the risk of corporate debt default.This research not only uses machine learning methods to study controlling shareholders in China from a more comprehensive perspective but also provides a useful incentive for bondholders to protect their interests.
Journal: Emerging Markets Finance and Trade
Pages: 3324-3339
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2037416
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2037416
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Template-Type: ReDIF-Article 1.0
# input file: MREE_A_2050903_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Zilong Song
Author-X-Name-First: Zilong
Author-X-Name-Last: Song
Author-Name: Ying Liu
Author-X-Name-First: Ying
Author-X-Name-Last: Liu
Author-Name: Jiaxin Wang
Author-X-Name-First: Jiaxin
Author-X-Name-Last: Wang
Title: Mandatory internal control and earnings management
Abstract: 
 This paper examines whether the mandatory implementation of an internal control system influences listed firms’ earnings management in China. We use firms that are mandated for implementing internal control as the treatment group, and firms that do not implement internal control as the control group. We find that the mandatory implementation of an internal control system results in an increase in both real and accrual-based earnings management. We also find that the extra institutional compliance cost induced by implementing a mandatory internal control system was the main cause of the increase in earnings management. Our conclusions thus provide empirical evidence that differs from that on the developed market regarding the research about mandatory internal control and earnings management.
Journal: Emerging Markets Finance and Trade
Pages: 3439-3453
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2050903
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2050903
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Template-Type: ReDIF-Article 1.0
# input file: MREE_A_2040986_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Xiaofang Han
Author-X-Name-First: Xiaofang
Author-X-Name-Last: Han
Author-Name: Hanwen Xu
Author-X-Name-First: Hanwen
Author-X-Name-Last: Xu
Author-Name: Cheng Zhang
Author-X-Name-First: Cheng
Author-X-Name-Last: Zhang
Author-Name: Yuxin Shen
Author-X-Name-First: Yuxin
Author-X-Name-Last: Shen
Author-Name: Xiaoxi Lu
Author-X-Name-First: Xiaoxi
Author-X-Name-Last: Lu
Title: Will the Narrowing Pay Gap in Chinese State-owned Enterprises Improve Internal Control Quality?
Abstract: 
 This paper examines the impact of pay gap on the quality of the internal control. Using state-owned enterprises listed in China from 2012 to 2019 as samples, we find new evidence of an inverted U-shaped relationship between the pay gap and internal control quality, which includes the executives’ internal pay gap, external pay gap, and executives-employees pay gap. Furthermore, we also find that there is an inverted U-shaped relationship between the pay gap and the internal control quality in state-owned enterprises with commercial competition, but we don’t find similar results for the samples of state-owned enterprises with specific functions. In addition, we provide evidence that the pay gap not only has a direct impact on internal control quality but also has an indirect impact on internal control quality through agency costs. This study supplements research on internal control quality from the perspective of incentives.
Journal: Emerging Markets Finance and Trade
Pages: 3340-3354
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2040986
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2040986
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Template-Type: ReDIF-Article 1.0
# input file: MREE_A_2054324_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Min Cui
Author-X-Name-First: Min
Author-X-Name-Last: Cui
Author-Name: Ning Wang
Author-X-Name-First: Ning
Author-X-Name-Last: Wang
Title: The Effects of Industry Growth and Government Efficiency on Environmental Quality: The Global Perspective
Abstract: 
 This research uses the panel cointegration and panel-based error correction models to investigate the causality among environmental quality, government efficiency, and industry growth for the period 2002–2020 for 126 countries. The results indicate that a long-term equilibrium cointegrated relationship exists among the variables. Government efficiency has a positive effect on environmental quality, while industry growth only can have a positive effect on EHI. Moreover, the negative influence of industry growth is quite serious in non-OECD countries. Lastly, increases in government efficiency and industry growth in the long run promote environment quality, but in the short run they are not significant.
Journal: Emerging Markets Finance and Trade
Pages: 3516-3525
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2054324
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2054324
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Template-Type: ReDIF-Article 1.0
# input file: MREE_A_2045941_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Yijia Song
Author-X-Name-First: Yijia
Author-X-Name-Last: Song
Author-Name: Xingda Chen
Author-X-Name-First: Xingda
Author-X-Name-Last: Chen
Author-Name: Xitao Li
Author-X-Name-First: Xitao
Author-X-Name-Last: Li
Author-Name: Mingyue Zhang
Author-X-Name-First: Mingyue
Author-X-Name-Last: Zhang
Title: The Nexus between Bank Foreign Expansion and Efficiency: The Moderating Effects of Host Country Regulation and Competition
Abstract: 
 Does Chinese bank efficiency benefit or suffer from foreign expansion? To investigate the causal relationship between banks foreign expansion and efficiency, we analyze 431 overseas branches of Chinese banks from 2007 to 2020. After decomposing the efficiency, we find strong, consistent evidence that such foreign expansion reduces cost efficiency due to the agency problem, while improving profit efficiency to retain the long-term bank–client relationship. Furthermore, to examine moderating effects, we consider regulations and competition among host countries. Ultimately, stringent regulations and less competition are found to be key factors impacting the loss and gain of cost and profit efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 3377-3394
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2045941
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2045941
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:12:p:3377-3394



Template-Type: ReDIF-Article 1.0
# input file: MREE_A_2053330_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Meili Tang
Author-X-Name-First: Meili
Author-X-Name-Last: Tang
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Author-Name: Ning Zhang
Author-X-Name-First: Ning
Author-X-Name-Last: Zhang
Title: Influencing Mechanism of Human Resource Management Strength on Creative Self-Efficacy: A Dual-Moderation Model
Abstract: 
 We develop a dual-moderation model to verify the effect of human resource management strength on creative self-efficacy by using 384 data from three companies in Zhejiang and Jiangsu provinces in China. The results show that human resource management strength has a positive effect on creative self-efficacy. Perceived insider status and psychological safety respectively play a negative moderating role between the relationship of human resource management strength and creative self-efficacy. Besides, psychological safety can strengthen the negative moderating role of perceived insider status in the relationship between human resource management strength and creative self-efficacy.
Journal: Emerging Markets Finance and Trade
Pages: 3504-3515
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2053330
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2053330
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# input file: MREE_A_2051810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Zhaochen Li
Author-X-Name-First: Zhaochen
Author-X-Name-Last: Li
Author-Name: Fuhua Yuan
Author-X-Name-First: Fuhua
Author-X-Name-Last: Yuan
Author-Name: Jinghai Zheng
Author-X-Name-First: Jinghai
Author-X-Name-Last: Zheng
Author-Name: Angang Hu
Author-X-Name-First: Angang
Author-X-Name-Last: Hu
Title: Learning by Consuming: Human Capital Consumption as an Approach to Compensating Economic Efficiency
Abstract: 
 As economic development moves to the stage of urbanization and knowledge-orientation, consumption is increasingly important for economic efficiency. This study proposes a Learning by Consuming Model which divides consumption into daily consumption and human capital consumption, combing consumption and human capital to measure consumption’s effect on economic efficiency. We compare trends in international consumption and conduct empirical tests using a fixed effects model based on panel data for 118 countries from 1970 to 2019. The results suggest that consumption can be regarded as an approach of human capital accumulation, thereby improving economic efficiency and leading to increased growth. Human capital consumption is key to growth model’s transition to the developed economy.
Journal: Emerging Markets Finance and Trade
Pages: 3473-3486
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2051810
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2051810
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# input file: MREE_A_2045940_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Monique B. Reid
Author-X-Name-First: Monique B.
Author-X-Name-Last: Reid
Author-Name: Pierre L. Siklos
Author-X-Name-First: Pierre L.
Author-X-Name-Last: Siklos
Title: How Firms and Experts View The Phillips Curve: Evidence from Individual and Aggregate Data from South Africa
Abstract: 
 Heterogeneity is now a regular part of macroeconomic theory, but disaggregated data about firm expectations remain scarce. A survey of firms and financial analysts in South Africa provides forecasts of inflation and other macroeconomic variables. We estimate a variety of inflation and wage growth-based Phillips curves, which reflect differences in how firms and financial analysts view the link between inflation and real economic activity, as well as heterogeneity across firms. South African Phillips curves have become flatter, but backward-looking factors remain more relevant for firms. Rising real wage growth exceeds expected and past inflation and wage growth since the GFC.
Journal: Emerging Markets Finance and Trade
Pages: 3355-3376
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2045940
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2045940
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# input file: MREE_A_2050904_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Yue Xu
Author-X-Name-First: Yue
Author-X-Name-Last: Xu
Author-Name: Rubin Hao
Author-X-Name-First: Rubin
Author-X-Name-Last: Hao
Author-Name: Qiankun Gu
Author-X-Name-First: Qiankun
Author-X-Name-Last: Gu
Author-Name: Kang Wang
Author-X-Name-First: Kang
Author-X-Name-Last: Wang
Title: The Coverage of Investor-paid Rating Agency and Audit Pricing
Abstract: 
 This paper examines how credit rating agencies affect audit fee. We find robust evidence that the coverage of investor-paid rating agency increases audit fee. The coverage of investor-paid rating agency increases bad news disclosure and makes the tone of media reports on the firm more negative. Auditors get informed and more aware of the firm’s risk, resulting in higher audit fee. Our findings suggest that the monitoring roles of auditors and credit rating agencies are complementary to each other. The cross-sectional analyses suggest that the effect of investor-paid rating agency on audit fee is more prominent for firms with high risk and poor corporate governance. To sum up, the coverage of investor-paid rating agency has a spillover effect on other participants in capital markets.
Journal: Emerging Markets Finance and Trade
Pages: 3454-3472
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2050904
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2050904
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# input file: MREE_A_2045942_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Hua Yin
Author-X-Name-First: Hua
Author-X-Name-Last: Yin
Author-Name: Qing Xie
Author-X-Name-First: Qing
Author-X-Name-Last: Xie
Author-Name: Dinggen Zhou
Author-X-Name-First: Dinggen
Author-X-Name-Last: Zhou
Title: Does a Stronger Business Environment Increase Export Variety?
Abstract: 
 Optimizing the business environment is a new competitive edge to global economies in international competition and cooperation. Export variety is an important basis for the implementation of a country’s foreign trade diversification strategy. However, the impact of the business environment on export diversity remains unclear. Using World Bank Doing Business data and detailed product data of 145 countries from 2010 to 2018, we investigate the effects of the business environment on the export variety of home countries. We separate regulatory variables based on different stages of a firm’s life cycle and examine which regulatory factors of doing business influence export variety. The results show that business environment improvement promotes export variety through an increase in foreign direct investment (FDI). The improvement of the business environment promotes the export variety mainly in non-high-income countries but not in high-income countries. Dealing with construction permit negatively affect export variety, while trading across borders and resolving insolvency improve export variety.
Journal: Emerging Markets Finance and Trade
Pages: 3395-3415
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2045942
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2045942
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# input file: MREE_A_2049970_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Rongbing Xiao
Author-X-Name-First: Rongbing
Author-X-Name-Last: Xiao
Author-Name: Guangzhong Li
Author-X-Name-First: Guangzhong
Author-X-Name-Last: Li
Author-Name: Yulan Wu
Author-X-Name-First: Yulan
Author-X-Name-Last: Wu
Title: Environmental Protection Tax and Corporate Capital Structure
Abstract: 
 We utilize the environmental protection tax law as an exogenous shock to the tax of environmental protection to investigate the relationship between environmental issues and corporate capital structure. Our findings show that, following the adoption of this tax law, polluting firms are more likely to reduce their leverage. This phenomenon is more pronounced in polluting firms with excess cash, financially constrained firms, or financially distressed firms. Overall, we find that the environmental protection tax reduces corporate leverage by increasing corporate outlays and crowding out debt interest expenses.
Journal: Emerging Markets Finance and Trade
Pages: 3416-3424
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2049970
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2049970
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# input file: MREE_A_2060075_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chih-Wei Wang
Author-X-Name-First: Chih-Wei
Author-X-Name-Last: Wang
Author-Name: Pei-Chin Hong
Author-X-Name-First: Pei-Chin
Author-X-Name-Last: Hong
Title: The Dimension of Bank Liquidity Creation: Culture Viewpoint
Abstract: 
 This study investigates the effects of Hofstede’s four cultural indices (power distance, individualism, uncertainty avoidance, and masculinity) on bank liquidity creation using an international sample of 26,539 banks across 58 countries. We find that power distance, uncertainty avoidance, and masculinity decrease asset-side and off-balance sheet liquidity, but increase liability-side liquidity. By contrast, individualism increases asset-side and off-balance sheet liquidity but decreases liability-side liquidity. After excluding U.S. banks, our findings remain robust, suggesting that national culture is an important determinant of bank liquidity creation and that bank risk-taking has important implications that link national culture and bank liquidity creation. Regarding policymaking, our results indicate that the government should introduce regulations that restrict off-balance liquidity.
Journal: Emerging Markets Finance and Trade
Pages: 3567-3588
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2060075
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2060075
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# input file: MREE_A_2031968_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Liuyun Pan
Author-X-Name-First: Liuyun
Author-X-Name-Last: Pan
Author-Name: Wei Mao
Author-X-Name-First: Wei
Author-X-Name-Last: Mao
Author-Name: Xiaoping Pan
Author-X-Name-First: Xiaoping
Author-X-Name-Last: Pan
Author-Name: Quanxi Liang
Author-X-Name-First: Quanxi
Author-X-Name-Last: Liang
Title: Influence of Foreign Investors on Corporate Real Activities Manipulation in Emerging Markets: Evidence from China
Abstract: 
 Whether foreign investors can play a prominent monitoring role as shareholders in emerging markets is a controversial issue. This study investigates the effect of foreign ownership on corporate real activities manipulation in China. We find that, even after correcting for the potential endogeneity issues, foreign investors help to decrease corporate real earnings management, and this effect is explained by the disciplinary and monitoring roles of foreign investors. We also find that foreign institutional investors have greater influence on real earnings management than domestic institutional investors do. Further evidence shows that foreign ownership affects firm value via real earnings management.
Journal: Emerging Markets Finance and Trade
Pages: 3309-3323
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2031968
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2031968
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# input file: MREE_A_1788537_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Yinfeng Liang
Author-X-Name-First: Yinfeng
Author-X-Name-Last: Liang
Author-Name: Chenyan Cai
Author-X-Name-First: Chenyan
Author-X-Name-Last: Cai
Author-Name: Yangchen Huang
Author-X-Name-First: Yangchen
Author-X-Name-Last: Huang
Title: The Effect of Corporate Social Responsibility on Productivity: Firm-Level Evidence from Chinese Listed Companies
Abstract: 
 The recent promotion of Corporate Social Responsibility (CSR) by China has coincided with a marked increase in the number of its listed firms. To what extent can the disclosure of CSR reports benefit corporate productivity? This article empirically explores the impact of CSR on firm-level Total Factor Productivity (TFP) as well as the possible influence approaches and mechanisms. Following previous literature, several predictive models are built to draw the following conclusions: (1) CSR significantly promotes TFP; (2) the impact of CSR on TFP of family firms is greater than that of non-family firms; (3) CSR has a larger positive impact on firms releasing CSR reports voluntarily than on those releasing under compulsion; (4) CSR has a greater impact on private firms than on state-owned ones, while it has little effect on foreign-funded ones; (5) The impact of CSR on TFP is robust in high-tech firms, non-high-tech firms, coastal firms, non-coastal firms, industrial firms, and service firms. Besides, this article finds that financing constraints operate as a major channel for CSR to affect TFP, while firms’ irregularity acts only as an important channel. Additionally, 2SLS method is employed to deal with possible endogenous problems, finding that our conclusions remain robust.
Journal: Emerging Markets Finance and Trade
Pages: 3589-3607
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2020.1788537
File-URL: http://hdl.handle.net/10.1080/1540496X.2020.1788537
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# input file: MREE_A_2057846_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Mian Cheng
Author-X-Name-First: Mian
Author-X-Name-Last: Cheng
Author-Name: Li Ji
Author-X-Name-First: Li
Author-X-Name-Last: Ji
Author-Name: Zijian Xu
Author-X-Name-First: Zijian
Author-X-Name-Last: Xu
Title: How Does Organization Capital Alleviate SMEs’ Financial Constraints? Evidence from China
Abstract: 
 This study investigates whether and how organization capital affects corporate financial constraints faced by Chinese small- and medium-sized enterprises (SMEs). Using SMEs listed on the Shenzhen Stock Exchange from 2001 to 2019, we find that organization capital significantly alleviates corporate financial constraints and that information asymmetry and operational efficiency are two possible mediators of the relationship. This effect is more pronounced for high-tech and growth-stage firms, consistent with the said mediation effect. Besides, we perform propensity score matching, instrumental variable regressions, and several robustness checks to address possible endogeneity concerns and measurement errors.
Journal: Emerging Markets Finance and Trade
Pages: 3541-3553
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2057846
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2057846
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# input file: MREE_A_2051812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Zhixiao Wang
Author-X-Name-First: Zhixiao
Author-X-Name-Last: Wang
Author-Name: Qin Wang
Author-X-Name-First: Qin
Author-X-Name-Last: Wang
Title: Multiple large shareholders and leverage adjustment: New evidence from Chinese listed firms
Abstract: 
 In this paper, we use a dataset of Chinese-listed firms to explore the potential value-enhancing or value-destroying role of multiple large shareholders in determining dynamics of capital structure decisions of firms. We estimate a modified partial adjustment model of leverage and find that firms with multiple large shareholders present a lower speed of leverage adjustment. The relatively more convincing explanation is that the high coordination costs among large shareholders can weaken the efficiency of monitoring managers who have incentives to deviate capital structure dynamics from the optimal strategy. In further analysis, we show that the negative impact of multiple large shareholders on speed of leverage adjustment is much weaker when managerial compensation is more tied to firm performance. Overall, this study provides new empirical evidence to underline the potential value-destroying role of multiple large shareholders and emphasizes the importance of firms improving their corporate governance mechanisms to mitigate the potential negative impact of ownership dispersion.
Journal: Emerging Markets Finance and Trade
Pages: 3487-3503
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2051812
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2051812
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# input file: MREE_A_2058929_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Yongbin Cai
Author-X-Name-First: Yongbin
Author-X-Name-Last: Cai
Author-Name: Mengzhe Li
Author-X-Name-First: Mengzhe
Author-X-Name-Last: Li
Title: CEO-CFO Tenure Consistency and Cash Holdings
Abstract: 
 This study investigates whether CEO-CFO tenure consistency impacts corporate cash holdings. We find that a company’s cash holdings increase when CEO and CFO have the same tenure. The positive relationship between CEO-CFO tenure consistency and cash holdings is more obvious in companies with CEO duality, a smaller proportion of independent directors, and more serious agency problems. Further evidence shows that CEO-CFO tenure consistency decreases the value of cash holdings.
Journal: Emerging Markets Finance and Trade
Pages: 3554-3566
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2058929
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2058929
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# input file: MREE_A_2050462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Chi-Wei Su
Author-X-Name-First: Chi-Wei
Author-X-Name-Last: Su
Author-Name: Lidong Pang
Author-X-Name-First: Lidong
Author-X-Name-Last: Pang
Author-Name: Muhammad Umar
Author-X-Name-First: Muhammad
Author-X-Name-Last: Umar
Author-Name: Oana-Ramona Lobonţ
Author-X-Name-First: Oana-Ramona
Author-X-Name-Last: Lobonţ
Title: Will Gold Always Shine amid World Uncertainty?
Abstract: 
 This article investigates whether gold will always shine amid world uncertainty or not. The quantile on quantile (QQ) approach is employed to detect the mutual relationship between the world uncertainty index (WUI) and gold price (GP). We find the impacts of WUI on GP, in different quantiles, varies and runs in cycles. The positive influence that ripples from WUI toward GP indicates that gold will shine over economic or political chaos periods. However, this viewpoint cannot be recognized when considering the negative impacts of the WUI on GP. Also, by evaluating the compound influence from GP to WUI, we suggest that the gold market acts as a barometer of global risk according to the market states.
Journal: Emerging Markets Finance and Trade
Pages: 3425-3438
Issue: 12
Volume: 58
Year: 2022
Month: 09
X-DOI: 10.1080/1540496X.2022.2050462
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2050462
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# input file: MREE_A_2061348_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yongsheng Yi
Author-X-Name-First: Yongsheng
Author-X-Name-Last: Yi
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Author-Name: Jihong Xiao
Author-X-Name-First: Jihong
Author-X-Name-Last: Xiao
Author-Name: Xunxiao Wang
Author-X-Name-First: Xunxiao
Author-X-Name-Last: Wang
Title: Forecasting the Chinese Stock Market Volatility with G7 Stock Market Volatilities: A Scaled PCA Approach
Abstract: 
 In this study, we forecast the realized volatility (RV) of the Chinese stock market using the heterogeneous autoregressive (HAR) model and various extended models. To extract the volatility information from the G7 stock markets, we employ a newly proposed approach, the scaled principal component analysis (SPCA), to produce a diffusion index and extend the HAR benchmark (HAR-SPCA). To validate the effectiveness of the SPCA approach, we employ three other dimension reduction approaches, the kitchen sink model, and five popular forecast combinations to deal with multivariate information and make competing forecasts. The results suggest that the combined volatility information from the G7 stock markets significantly predicts Chinese stock market volatility. More importantly, the forecasts from the HAR-SPCA model are steadily more accurate than the benchmark and other competing models under various evaluation criteria. Finally, our results are persistent to various robustness checks and the evaluation of portfolio performance.
Journal: Emerging Markets Finance and Trade
Pages: 3639-3650
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2061348
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2061348
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# input file: MREE_A_2073813_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Francisco López Herrera
Author-X-Name-First: Francisco
Author-X-Name-Last: López Herrera
Author-Name: Jaime González Maiz Jiménez
Author-X-Name-First: Jaime
Author-X-Name-Last: González Maiz Jiménez
Author-Name: Adán Reyes Santiago
Author-X-Name-First: Adán
Author-X-Name-Last: Reyes Santiago
Title: Forecasting Performance of Different Betas: Mexican Stocks before and during the COVID-19 Pandemic
Abstract: 
 This study comparatively evaluated the forecasting performance of a constant beta and two time-varying beta process specifications. Returns for 23 stocks were forecasted for several horizons in 2019–2020. The autoregressive and random walk betas showed superior forecasting performance before and during the COVID-19 pandemic, respectively. In a Diebold–Mariano test, the constant beta specification never dominated both time-varying beta models. Beta specification type should be considered when forecasting based on capital asset pricing or market models, particularly during crises. Results of rolling regressions based on arbitrage pricing theory considering other risk factors suggest time-varying systematic risk factors beyond market risks.
Journal: Emerging Markets Finance and Trade
Pages: 3868-3880
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2073813
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2073813
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# input file: MREE_A_2060074_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Qiannan Zhang
Author-X-Name-First: Qiannan
Author-X-Name-Last: Zhang
Author-Name: Xiaowen Huang
Author-X-Name-First: Xiaowen
Author-X-Name-Last: Huang
Author-Name: Miraj Ahmed Bhuiyan
Author-X-Name-First: Miraj
Author-X-Name-Last: Ahmed Bhuiyan
Author-Name: Zekai Huang
Author-X-Name-First: Zekai
Author-X-Name-Last: Huang
Title: Influence of Economic and Financial Openness in Urban Agglomerations of Major Bay Areas
Abstract: 
 This paper examines how four indicators of economic/financial openness, namely, trade openness, actual tariff rate, financial openness, and investment openness have shaped the world’s four major bay area’s urban agglomerations. The study considers four key bay areas, New York, Tokyo, San Francisco and Guangdong-Hong Kong-Macao, over the period 2005–2018. Using the panel data fixed effect model analysis, our study finds that: the interaction of comprehensive openness, investment openness, trade openness and comprehensive openness plays a positive role in economic growth, while the actual tariff rate and financial openness play a negative role. In the long run, each bay area should expand their opening-up to the outside world and promote economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 3689-3710
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2060074
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2060074
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# input file: MREE_A_2050902_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Haoyue Huang
Author-X-Name-First: Haoyue
Author-X-Name-Last: Huang
Author-Name: Li Yu
Author-X-Name-First: Li
Author-X-Name-Last: Yu
Author-Name: Jian Zhang
Author-X-Name-First: Jian
Author-X-Name-Last: Zhang
Title: Mandatory CSR Disclosure and Pay Gap: Evidence from China
Abstract: 
 This paper investigates whether mandatory corporate social responsibility (CSR) disclosures impact pay gaps between executives and rank-and-file employees in China. The study shows that CSR disclosure requirements attenuate the pay gap. This impact is more significant among companies with higher information asymmetry, with stronger employee bargaining power, and located in provinces with better legal environments. Finally, we show that a lower pay gap encourages economic growth by improving innovation and productivity.
Journal: Emerging Markets Finance and Trade
Pages: 3781-3812
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2050902
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2050902
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:13:p:3781-3812



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# input file: MREE_A_2067475_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Mingli Zeng
Author-X-Name-First: Mingli
Author-X-Name-Last: Zeng
Author-Name: Kang Luo
Author-X-Name-First: Kang
Author-X-Name-Last: Luo
Title: The Impact of Green Development on Modernization in China: Evidence from 108 Cities in the Yangtze River Economic Belt
Abstract: 
 Building a stronger modern socialist country is China’s second centenary goal, and ecological beauty is the innovation of the connotation of modernization. How to realize the drive toward modernization with green development is an urgent topic. Based on the municipal panel data of the Yangtze River Economic Belt from 2009–2019 in China and selecting the air circulation coefficient and river network density as instrumental variables, this research examines the impact mechanism of green development on modernization. The results show the following: (1) green development significantly promotes modernization; (2) green development indirectly promotes the improvement of modernization through technological innovation, foreign capital flow, and talent attraction; and (3) the promotion of green development to modernization is affected by the urban size, and medium-sized cities benefit most. The study results provide empirical support and a decision-making basis for promoting the win-win situation of green development and modernization construction.
Journal: Emerging Markets Finance and Trade
Pages: 3664-3688
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2067475
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2067475
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# input file: MREE_A_2073814_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ning Ding
Author-X-Name-First: Ning
Author-X-Name-Last: Ding
Author-Name: Irfan Ullah
Author-X-Name-First: Irfan
Author-X-Name-Last: Ullah
Author-Name: Khalil Jebran
Author-X-Name-First: Khalil
Author-X-Name-Last: Jebran
Title: Foreign Experienced CEOs’ and Financial Statement Comparability
Abstract: 
 This research examines whether the characteristics of top management teams are related to financial statement comparability. Considering the foreign experienced CEOs (FCEOs) in Chinese listed firms from 2005 to 2018, we show that it can increase financial statement comparability. We argue that firms led by FCEOs will enhance information environment and governance mechanisms by minimizing agency issues, consequently generating more comparable financial statements. Through further investigation, we find that the relationship between FCEOs and comparability is stronger when CEOs possess a financial and accounting background and when they have overseas professional experiences. fthe relationship is weaker with the existence of higher economic policy uncertainty. Finally, we identify financial reporting as an important channel that explains the relationship between FCEOs and comparability. Findings remain consistent after numerous robustness checks and supplementary investigations comprising lag of independent variables, generalized method of moment, instrumental variable approach, propensity score matching, and alternative comparability measures. Overall, the findings suggest that CEOs’ foreign experiences are associated with corporate outcomes.
Journal: Emerging Markets Finance and Trade
Pages: 3751-3769
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2073814
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2073814
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Handle: RePEc:mes:emfitr:v:58:y:2022:i:13:p:3751-3769



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# input file: MREE_A_2072202_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yuwei Liu
Author-X-Name-First: Yuwei
Author-X-Name-Last: Liu
Author-Name: Sheng Ma
Author-X-Name-First: Sheng
Author-X-Name-Last: Ma
Author-Name: Xuesong Tang
Author-X-Name-First: Xuesong
Author-X-Name-Last: Tang
Title: Independent Director Networks and Executive Perquisite Consumption——“Collusion” or “Coordination” in Governance?
Abstract: 
 Prior research documents that the network of independent directors brings abundant resources and information advantages. Does it raise the possibility of executives engaging in rent-seeking? This paper investigates the specific impact of the independent director network on executive perquisite consumption in China. The results show that the more substantial the network of independent directors is, the greater the degree of executive perquisite consumption. Different ownership types result in different mechanisms; director network centrality primarily increases the entertainment component of executive perquisite consumption in SOEs, implying “cooperation in governance” and exhibiting inverted U-shaped nonlinear features; director network centrality increases the supplementary component of monetary compensation for executive perquisite consumption in nSOEs, illustrating “coordination in governance.” Moreover, the “Eight Rules” and intense external supervision effectively restrain “collusion” of SOEs.
Journal: Emerging Markets Finance and Trade
Pages: 3824-3839
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2072202
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2072202
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# input file: MREE_A_2072203_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Afees A. Salisu
Author-X-Name-First: Afees A.
Author-X-Name-Last: Salisu
Author-Name: Jean Paul Tchankam
Author-X-Name-First: Jean Paul
Author-X-Name-Last: Tchankam
Author-Name: Idris A. Adediran
Author-X-Name-First: Idris A.
Author-X-Name-Last: Adediran
Title: Out-of- Sample Stock Return Predictability of Alternative COVID-19 Indices
Abstract: 
 We explore the predictive value of the various indices developed to capture COVID-19 pandemic for daily stock return predictability of 24 Emerging Market economies (based on data availability). We identify eight measures of COVID-19 indices, namely, the uncertainty due to pandemics and epidemics (UPE) index, Global Fear Index (GFI), COVID index, vaccine index, medical index, travel index, uncertainty index and aggregate COVID-19 sentiment index. We find that, out of the considered measures, the GFI consistently offers the best out-of-sample forecast gains followed by the aggregate COVID-19 sentiment index while the UPE index offers the least predictability gains. The outcome generally improves after controlling for oil price but the ranking of forecast performance remains the same and robust to multiple forecast horizons and alternative forecast evaluation methods. We infer that the relative predictive powers of the indices are proportional to the extent to which the indices truly measure the pandemic.
Journal: Emerging Markets Finance and Trade
Pages: 3739-3750
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2072203
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2072203
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# input file: MREE_A_2072205_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chen-Kai Zhou
Author-X-Name-First: Chen-Kai
Author-X-Name-Last: Zhou
Title: Identifying the Impact of Exchange Rate Volatility on Corporate Credit Risk: Firm-level Evidence from China
Abstract: 
 This study aims to provide direct evidence of exchange rate volatility’s impact on corporate credit risk by using data from Chinese listed companies. I adopt an identification strategy based on regional heterogeneity across the country and obtain robust results, showing that higher exchange rate volatility increases corporate credit risk, mainly by worsening firms’ profitability and financial flexibility. Additionally, I find that the impact of exchange rate volatility on corporate credit risk through the above channels is primarily concentrated in large enterprises, state-owned enterprises (SOEs), and capital-intensive enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 3853-3867
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2072205
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2072205
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# input file: MREE_A_2072204_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Wei Chen
Author-X-Name-First: Wei
Author-X-Name-Last: Chen
Author-Name: Rui Li
Author-X-Name-First: Rui
Author-X-Name-Last: Li
Author-Name: Yinhong Yao
Author-X-Name-First: Yinhong
Author-X-Name-Last: Yao
Title: Return and Volatility Spillovers among Sector Indexes in Shanghai-Shenzhen-Hong Kong Stock Markets: Evidence from the Time and Frequency Domains
Abstract: 
 The opening of Shanghai-Hong Kong Stock Connect (SH-HK) Program and Shenzhen-Hong Kong Stock Connect (SZ-HK) Program has changed the relationship between stock markets, and caused more challenges to the risk management and asset portfolio. Therefore, this paper applies the DY and BK methods to analyze the static and dynamic spillovers of Shanghai, Shenzhen and Hong Kong stock markets from the time and frequency perspectives. Based on 29 sector indexes from three markets ranging from June 15, 2011 to December 31, 2020, three conclusions are obtained. The implementation of the SH-HK Program and the SZ-HK Program has enhanced the spillover effects of return and volatility among Chinese Mainland stock markets and Hong Kong stock market. The Shanghai Energy, the Shanghai Material and the Shanghai Industrial are always obvious net senders of spillover, while the Hang Seng telecommunications, the Hang Seng real estate construction industry and the Hang Seng public utilities are always net receivers. The spillover mainly occurs in the short term. These results would be beneficial to risk supervision and portfolio optimization.
Journal: Emerging Markets Finance and Trade
Pages: 3840-3852
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2072204
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2072204
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# input file: MREE_A_2051811_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Veysel Avsar
Author-X-Name-First: Veysel
Author-X-Name-Last: Avsar
Author-Name: Oguzhan Batmaz
Author-X-Name-First: Oguzhan
Author-X-Name-Last: Batmaz
Title: Legal, Financial, and Strategic Forces in Cross-border Delivery Terms
Abstract: 
 Drawing on three-dimensional (HS6 product-destination-year) data on delivery terms in exports from Turkey, this study comprehensively explores the determinants of INCOTERMS clauses in three dimensions: legal, financial, and strategic. We show that a larger share of foreign sales occurs on high seller risk responsibility delivery terms when the export destination has better regulations, easier customs clearance, and high financing costs. Our findings also suggest the influence of bargaining power and experience on delivery terms. That is, the share of exports transacted on high supplier responsibility terms decreases with the number of export destinations served but increases with the number of products shipped to a particular export market in the past.
Journal: Emerging Markets Finance and Trade
Pages: 3609-3621
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2051811
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2051811
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# input file: MREE_A_2059349_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Alex Backwell
Author-X-Name-First: Alex
Author-X-Name-Last: Backwell
Author-Name: Kalind Ramnarayan
Author-X-Name-First: Kalind
Author-X-Name-Last: Ramnarayan
Title: Volatility Level Dependence and Linear-Rational Term Structure Models
Abstract: 
 We outline a subclass of linear-rational term structure models, based on CEV dynamics. A tractable and arbitrage-free term structure results from the linear-rational aspect of the model, independently of the term-structure volatility dynamics that follow from the CEV specification. This specification is devised to capture a flexible degree of volatility-level dependence, i.e., the degree to which yield-curve volatility depends on yield levels. We estimate the model based on a panel of South African swap rates, and extract the degree of volatility-level dependence inherent in the time series of rates, without interference from the shape of the swap curve. The CEV exponent parameters are found to be essential for matching the low degree of volatility-level dependence that tends to be observed in the high interest-rate environments of emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 3622-3638
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2059349
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2059349
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# input file: MREE_A_2068410_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Weitao Shen
Author-X-Name-First: Weitao
Author-X-Name-Last: Shen
Author-Name: Chen Yang
Author-X-Name-First: Chen
Author-X-Name-Last: Yang
Author-Name: Binyun Huang
Author-X-Name-First: Binyun
Author-X-Name-Last: Huang
Title: Impact of Managerial Discretion “Stranglehold” on Enterprises Investment Efficiency: Based on Heterogeneous Stochastic Frontier Model
Abstract: 
 This study examined how managerial discretion “stranglehold” influences enterprise investment efficiency (IE) using a heterogeneous stochastic frontier model of 2010–2019 data of listed companies in the Shanghai and Shenzhen A-share markets. CEO’s salary and stockholding can improve IE, but cannot reduce investment risk (IR). CEO duality and redundant resources neither improve IE nor reduce IR. Organizational inertia can reduce IR but not IE. Capital intensity increases IR whereas environmental richness reduces it; both cannot improve IE. Constrained managerial discretion brings investment expenditures to 15–25% below optimal. Relatively, large, non-state-owned, and manufacturing enterprises have higher IE and lower IR.
Journal: Emerging Markets Finance and Trade
Pages: 3711-3725
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2068410
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2068410
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# input file: MREE_A_2070472_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bingyu Zhao
Author-X-Name-First: Bingyu
Author-X-Name-Last: Zhao
Author-Name: Wanping Yang
Author-X-Name-First: Wanping
Author-X-Name-Last: Yang
Author-Name: Jun Wen
Author-X-Name-First: Jun
Author-X-Name-Last: Wen
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Title: The Financial Market in China under the COVID-19
Abstract: 
 The main aim of this study is to investigate the effects of COVID-19 on financial markets in China. Results of correlation analysis indicate that higher financial correlation among provinces emerged after the official announcement regarding COVID-19 in China. The Minimum Spanning Tree (MST) results after the pandemic announcement denote that Shanghai, Beijing, Jiangsu, Zhejiang, and Chongqing become the new cores, and the overall linking type exhibits cluster mode, which is varied from the intertwined connection mode. In addition, through Ensemble Empirical Mode Decomposition (EEMD) and Wavelet analysis, we found that financial markets in China are more susceptible to unexpected incidents.
Journal: Emerging Markets Finance and Trade
Pages: 3726-3738
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2070472
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2070472
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# input file: MREE_A_2072200_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhanchi Wu
Author-X-Name-First: Zhanchi
Author-X-Name-Last: Wu
Author-Name: Yu Yuan
Author-X-Name-First: Yu
Author-X-Name-Last: Yuan
Title: Exchange Inquiry Letters and Stock Price Informativeness: Evidence from China
Abstract: 
 Using the data of China A-share listed firms from 2015 to 2019, we examine the effect of exchange inquiry letter regulation on stock price informativeness. It is found that the stock prices of inquired firms contain more firm-level information after the receipt of inquiry letter. Further research demonstrates that attracting investors’ attention to more firm-specific information is the potential channel through which inquiry letters improve stock price informativeness. This paper provides empirical evidence for the effectiveness of exchange inquiry letter regulation, which has significant implications for listed firms improving information disclosure and for regulators playing a better role in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 3813-3823
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2072200
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2072200
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# input file: MREE_A_2063047_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chuan Zhang
Author-X-Name-First: Chuan
Author-X-Name-Last: Zhang
Author-Name: Jie Liu
Author-X-Name-First: Jie
Author-X-Name-Last: Liu
Title: Mandatory Resignation of Politician-Directors and Company Violations: Evidence from China
Abstract: 
 This study analyzes whether the loss of political connections in Chinese listed firms affects the incidence of company violations. Using the partially observable bivariate probit model, the results indicate that the mandatory resignation of politician-directors is 1) negatively related to ex ante violation tendency and 2) positively associated with ex post violation detection. Moreover, this effect emerges as more pronounced when the politician-directors in question are senior officials, incumbent officeholders, or those whose administrative jurisdiction includes the listed companies they serve. Combined, these findings provide a new perspective from which management can effectively govern companies.
Journal: Emerging Markets Finance and Trade
Pages: 3651-3663
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2063047
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2063047
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# input file: MREE_A_2073815_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Renji Sun
Author-X-Name-First: Renji
Author-X-Name-Last: Sun
Author-Name: Kung-Cheng Ho
Author-X-Name-First: Kung-Cheng
Author-X-Name-Last: Ho
Author-Name: Chiu-Lan Chang
Author-X-Name-First: Chiu-Lan
Author-X-Name-Last: Chang
Author-Name: Sijia Luo
Author-X-Name-First: Sijia
Author-X-Name-Last: Luo
Title: How Does Analyst Coverage Influence Corporate Leverage Adjustment: Evidence from China
Abstract: 
 This study investigates the influence of analyst coverage on corporate leverage adjustment (CLA) in China. We analyzed 26,673 firm-year observations from the Shanghai and Shenzhen stock exchanges from 2000 to 2020 and found that analyst coverage had a negative impact on CLA, which was stronger in firms with poor performance. We posit that analyst forecast divergence and pressure-induced managerial myopia are possible mechanisms through which analyst coverage influences CLA. Our study contributes to the dynamic trade-off model literature by demonstrating that analyst coverage is also a determinant of CLA. Furthermore, our findings help regulators and investors to comprehensively understand the role of analysts in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 3881-3897
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2073815
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2073815
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# input file: MREE_A_2068411_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lianjun Li
Author-X-Name-First: Lianjun
Author-X-Name-Last: Li
Author-Name: Tingting Ni
Author-X-Name-First: Tingting
Author-X-Name-Last: Ni
Author-Name: Jian Ma
Author-X-Name-First: Jian
Author-X-Name-Last: Ma
Author-Name: Mengheng Li
Author-X-Name-First: Mengheng
Author-X-Name-Last: Li
Title: Does Professional Management of a Family Business Affect Its Financing Channels? Evidence from China
Abstract: 
 Despite developing rapidly in the Chinese market, family firms still face financing issues. This article uses Chinese family firms that went public from 2007 to 2019 as a sample and empirically examines whether professional management of a family business affects its financing channels. Our results indicate that the degree of professional management has a significantly negative impact on the internal financing rate and a significantly positive effect on increasing the external financing rate. In addition, industry competition intensifies the positive correlation between the degree of professional management and external financing.
Journal: Emerging Markets Finance and Trade
Pages: 3770-3780
Issue: 13
Volume: 58
Year: 2022
Month: 10
X-DOI: 10.1080/1540496X.2022.2068411
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2068411
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# input file: MREE_A_2077100_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lin Xiao
Author-X-Name-First: Lin
Author-X-Name-Last: Xiao
Author-Name: Yong Ye
Author-X-Name-First: Yong
Author-X-Name-Last: Ye
Author-Name: Keyu Luo
Author-X-Name-First: Keyu
Author-X-Name-Last: Luo
Title: The Effect of Organizers on Analysts’ Forecasts: Evidence from Conference Calls in China
Abstract: 
 We inspect the impact of conference call organizers on the quality of analysts’ forecasts. Organizers affect the information delivery through conference calls with the composition of audiences, the preparation of managers, and the frame of questions. Using manually collected information of conference calls in China, we discover that conference calls refine analysts’ forecast quality. Further evidence indicates that brokerage firms, as the organizer of the call, significantly improve analysts’ forecast quality. Specifically, brokerage firms show a positive relationship with forecast accuracy and a negative relationship with forecast dispersion. However, neither top brokerages nor star analysts show a distinct advantage in delivering information when they act as the organizer and the host.
Journal: Emerging Markets Finance and Trade
Pages: 4172-4188
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2077100
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2077100
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# input file: MREE_A_2082282_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Oğuz Öztunalı
Author-X-Name-First: Oğuz
Author-X-Name-Last: Öztunalı
Author-Name: Orhan Torul
Author-X-Name-First: Orhan
Author-X-Name-Last: Torul
Title: The Evolution of Intergenerational Educational Mobility in Turkey
Abstract: 
 We investigate the role of intergenerational transmission in educational outcomes and inequalities for cohorts born between 1951 and 1985 in Turkey via the Turkish Statistical Institute’s Intergenerational Transmission of Disadvantages Module in 2011. Our results show that Turkey has a relatively low degree of intergenerational educational mobility. Further, the primary measures of intergenerational educational mobility – the regression and correlation coefficients via years of schooling – exhibit a U-shape over the sample period. Our first decomposition exercise reveals that the early cohorts’ improving intergenerational mobility stems mainly from the educational improvements of descendants born to low-educated fathers. In contrast, the recently increasing intergenerational correlation stems from the disproportionately favorable university prospects of descendants born to university graduate fathers. Moreover, we decompose the correlation coefficient via a second methodology and show that 91% of the correlation stems from within-subgroup correlations. Specifically, the contribution of urban (rural) males and females average 32% and 44% (7% and 8%), respectively.
Journal: Emerging Markets Finance and Trade
Pages: 4033-4049
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2082282
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2082282
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# input file: MREE_A_2084379_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Anna Burova
Author-X-Name-First: Anna
Author-X-Name-Last: Burova
Author-Name: Alexey Ponomarenko
Author-X-Name-First: Alexey
Author-X-Name-Last: Ponomarenko
Author-Name: Svetlana Popova
Author-X-Name-First: Svetlana
Author-X-Name-Last: Popova
Author-Name: Andrey Sinyakov
Author-X-Name-First: Andrey
Author-X-Name-Last: Sinyakov
Author-Name: Yulia Ushakova
Author-X-Name-First: Yulia
Author-X-Name-Last: Ushakova
Title: Measuring Heterogeneity in Banks’ Interest Rate Setting in Russia
Abstract: 
 We use credit registry data on all corporate loans issued by Russian banks since 2017 to decompose bank interest spreads into a common factor, borrower- and lender-specific components. We find that the variation in loan rates associated with lender-specific factors (heterogeneity of banks) and borrower-specific factors (heterogeneity of borrowers) is substantial. We use the bank-specific components identified to measure the fragmentation of the corporate credit market in Russia. The results indicate that heterogeneity in banks’ interest rate setting is high and increased in the early stage of the pandemic. Finally, our results suggest that banks tightened non-interest loan conditions during the pandemic.
Journal: Emerging Markets Finance and Trade
Pages: 4103-4119
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2084379
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2084379
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# input file: MREE_A_2121570_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: The Editors
Title: Correction
Journal: Emerging Markets Finance and Trade
Pages: 4189-4189
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2121570
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2121570
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# input file: MREE_A_2083496_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Duo Shang
Author-X-Name-First: Duo
Author-X-Name-Last: Shang
Author-Name: Dongliang Yuan
Author-X-Name-First: Dongliang
Author-X-Name-Last: Yuan
Author-Name: Dehui Li
Author-X-Name-First: Dehui
Author-X-Name-Last: Li
Author-Name: Libo Fan
Author-X-Name-First: Libo
Author-X-Name-Last: Fan
Title: The Effects of Nonstate Shareholder on the Excess Perquisites: Evidence from Chinese Mixed Ownership Reform
Abstract: 
 Excess perquisites have hindered the high-quality development of state-owned enterprises, while mixed ownership reform can improve corporate governance by acquiring shareholdings and appointing directors, supervisors, and managers. This paper empirically tests the impact of mixed ownership reform on excess perquisites and the path. The results show that mixed ownership reform can restrain excess perquisites, and this restraining effect is more significant in competitive industries and local SOEs. Further research shows that mixed ownership reforms can strengthen shareholders’ supervisory power and weaken executives’ control power. The relevant findings still hold after a series of robustness tests and endogeneity tests.
Journal: Emerging Markets Finance and Trade
Pages: 4001-4013
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2083496
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2083496
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# input file: MREE_A_2088348_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ahmed Al-Hadi
Author-X-Name-First: Ahmed
Author-X-Name-Last: Al-Hadi
Author-Name: Baban Eulaiwi
Author-X-Name-First: Baban
Author-X-Name-Last: Eulaiwi
Author-Name: Lien Duong
Author-X-Name-First: Lien
Author-X-Name-Last: Duong
Author-Name: Grantley Taylor
Author-X-Name-First: Grantley
Author-X-Name-Last: Taylor
Author-Name: Saurav Dutta
Author-X-Name-First: Saurav
Author-X-Name-Last: Dutta
Title: Family Power and Corporate Investment Efficiency
Abstract: 
 This study examines the relationship between family power and corporate investment efficiency in Gulf Cooperative Council (GCC) countries. Family power in firms is manifested in how much decision-making power is concentrated in the hands of family members who are active either on the board of directors, or as executives of a firm. Using a unique measure of “family power,” we contribute to a growing interest in the role of family influence in the GCC emerging markets, where firms and business practices are typically controlled by families. We find that increased family power reduces firms’ level of under- and over-investment. We assert that this relation arises because firms are able to exhibit high levels of family power through socioemotional wealth preservation in reducing both management agency costs and earnings management.
Journal: Emerging Markets Finance and Trade
Pages: 4149-4161
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2088348
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2088348
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# input file: MREE_A_2079974_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhongju Liao
Author-X-Name-First: Zhongju
Author-X-Name-Last: Liao
Author-Name: Ping Liu
Author-X-Name-First: Ping
Author-X-Name-Last: Liu
Title: Market-based Environmental Policy Instrument Mixes and Firms’ Environmental Innovation: A Fuzzy-set Qualitative Comparative Analysis
Abstract: 
 This study analyzed the antecedents of firms’ environmental innovation considering policy instrument mixes. Selecting 209 firms as the research sample and employing the fuzzy-set qualitative comparative analysis method, we examined the effect of five types of market-based environmental policy instruments on firms’ environmental innovation. We found that environmental innovation was not contingent on any individual condition, but resulted from the mix of the five market-based environmental policy instruments, which formed four paths and three models, namely, incentives-punishment, financial support, and subsidies-demand. The study has implications in improving the applicability of policies and formulating an effective environmental policy framework.
Journal: Emerging Markets Finance and Trade
Pages: 3976-3984
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2079974
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2079974
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# input file: MREE_A_2075258_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yeni Januarsi
Author-X-Name-First: Yeni
Author-X-Name-Last: Januarsi
Author-Name: Tsung-Ming Yeh
Author-X-Name-First: Tsung-Ming
Author-X-Name-Last: Yeh
Title: Accounting Comparability and Earnings Management Strategies: Evidence from Southeast Asian Countries
Abstract: 
 We examined the effect of accounting comparability on the use of accrual earnings management (AEM) and real earnings management (REM) among five members of the Association of Southeast Asian Nations. Analyzing 1,195 listed non-financial companies from 2014 to 2017, we find that more comparable accounting information between firms induces managers to engage in more REM and less AEM, supporting the substitute hypothesis. The results remain similar under the robustness tests. Our results suggest that reporting and legal environment factors may affect cost-benefit considerations versus incentives for using earnings management strategies.
Journal: Emerging Markets Finance and Trade
Pages: 3913-3927
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2075258
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2075258
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# input file: MREE_A_2086041_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ratikant Bhaskar
Author-X-Name-First: Ratikant
Author-X-Name-Last: Bhaskar
Author-Name: Shashank Bansal
Author-X-Name-First: Shashank
Author-X-Name-Last: Bansal
Title: Nineteen Years of Emerging Markets Finance and Trade: A Bibliometric Analysis
Abstract: 
 This study draws a bibliographic profile of Emerging Markets Finance and Trade (EMFT) from bibliographic metadata, and provides a comprehensive overview of EMFT. We used scientometric techniques to analyze the publication and citation trends of EMFT. EMFT published 2049 cutting-edge documents between 2002 and 2020, with 12674 citations, which shows its influence in the academic field. The descriptive bibliometric analysis shows the publication and citation trends and the most prolific authors of EMFT. This study also presents the bibliographic coupling of authors, their affiliated institutions and countries, the co-citation of journals, and the co-occurrence of words from different sources. The study, with the help of network analysis, also identifies the major themes discussed in EMFT, develops seven clusters of EMFT publications, and analyzes their content.
Journal: Emerging Markets Finance and Trade
Pages: 4120-4135
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2086041
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2086041
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# input file: MREE_A_2083497_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sohail Mansha
Author-X-Name-First: Sohail
Author-X-Name-Last: Mansha
Author-Name: Aamir Inam Bhutta
Author-X-Name-First: Aamir
Author-X-Name-Last: Inam Bhutta
Author-Name: Gianluca Antonucci
Author-X-Name-First: Gianluca
Author-X-Name-Last: Antonucci
Author-Name: Chee-Wooi Hooy
Author-X-Name-First: Chee-Wooi
Author-X-Name-Last: Hooy
Title: Do Political Connections Matter for Firm Trade Credit?
Abstract: 
 We examine two types of political connections on trade credit of Pakistani firms over 2009–2015; parliamentarian connections are divided into the senate, national assembly, and provincial level, while bureaucrat connections cover civil and military officers and individuals working on government committees. We documented evidence that parliamentarian connections have significant preferential access to trade credit while bureaucratic political connections decrease the firm’s access to trade credit. These findings are more pronounced in the presence of CEO political connection. Our results stay robust using alternative proxies and accounting for endogeneity and time-invariant concerns. Additional analysis reveals that politically connected firms with higher leverage and low market power use more trade credit. Moreover, low economic developed regions decrease the benefits of political connections to access trade credit.
Journal: Emerging Markets Finance and Trade
Pages: 4014-4032
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2083497
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2083497
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# input file: MREE_A_2084378_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiao Chang
Author-X-Name-First: Xiao
Author-X-Name-Last: Chang
Author-Name: Jingya Li
Author-X-Name-First: Jingya
Author-X-Name-Last: Li
Author-Name: Zongyuan Li
Author-X-Name-First: Zongyuan
Author-X-Name-Last: Li
Title: Revisit the Nexus between Saving and Inequality in Labor Intensive Economies: Evidence from China
Abstract: 
 Using an extended overlapping generations (OLG) model, we theoretically prove that functional inequality resulting from weak labor bargaining power can be a key driver of high saving rates, as observed in China and other labor-abundant Asian emerging markets. Income distribution that favors capital over labor may attract excess capital investments and hence lead to high saving rates. The link between inequality and saving is especially prominent for the household sector because excess return on capital motivates the working-age population to increase their retirement savings. We also find empirical support for our theoretical predictions using China’s sectoral-level data.
Journal: Emerging Markets Finance and Trade
Pages: 4091-4102
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2084378
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2084378
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# input file: MREE_A_2082867_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiaoyun Gong
Author-X-Name-First: Xiaoyun
Author-X-Name-Last: Gong
Author-Name: Shenwei Mo
Author-X-Name-First: Shenwei
Author-X-Name-Last: Mo
Author-Name: Xiaofeng Quan
Author-X-Name-First: Xiaofeng
Author-X-Name-Last: Quan
Author-Name: Cheng Xue
Author-X-Name-First: Cheng
Author-X-Name-Last: Xue
Title: Technological Knowledge Spillover in Business Groups: Evidence from China
Abstract: 
 We examine the spillover effect of technological knowledge within business groups using a sample of Chinese A-share listed companies from 2007–2019. We find the parent company’s technological knowledge stock improves its subsidiaries’ innovation outputs. The lower communication cost resulting from the opening of a high-speed railway between a parent company and its subsidiaries effectively promotes the transfer of technological knowledge. Heterogeneity tests show that the spillover effects are more significant in business groups where the parent company has lower asset specificity or centralized control. Overall, our evidence suggests that business groups are essential in promoting innovative activities, primarily through technological knowledge spillover.
Journal: Emerging Markets Finance and Trade
Pages: 4050-4064
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2082867
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2082867
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# input file: MREE_A_2073816_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xixiong Xu
Author-X-Name-First: Xixiong
Author-X-Name-Last: Xu
Author-Name: Lingling Duan
Author-X-Name-First: Lingling
Author-X-Name-Last: Duan
Author-Name: Cuiliang Lin
Author-X-Name-First: Cuiliang
Author-X-Name-Last: Lin
Title: Early Experience Within Tizhi System, Policy Perception and Corporate Innovation: Evidence from Chinese Private Firms
Abstract: 
 Drawing on the imprinting theory, this study examines the role of entrepreneurs’ Tizhi system experience in corporate innovation. Using survey data from 4276 Chinese private firms, we find that entrepreneurs’ early experience within the Tizhi system exerts a positive impact on corporate innovation. This effect is more pronounced in entrepreneurs with pro-social value, firms with party branch, and provinces with strong preference for innovation. Further channel tests provide evidence that entrepreneurs with Tizhi system experience have sharper policy perception and that makes them have stronger confidence and motivation for innovation. These findings shed light on how an entrepreneur’s early experience affects corporate behavior in transitional economies, and contribute to the literature in the field of corporate innovation.
Journal: Emerging Markets Finance and Trade
Pages: 3899-3912
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2073816
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2073816
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# input file: MREE_A_2073818_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jun Wen
Author-X-Name-First: Jun
Author-X-Name-Last: Wen
Author-Name: Xin-Xin Zhao
Author-X-Name-First: Xin-Xin
Author-X-Name-Last: Zhao
Author-Name: Chyi-Lu Jang
Author-X-Name-First: Chyi-Lu
Author-X-Name-Last: Jang
Author-Name: Ya-Hui Huang
Author-X-Name-First: Ya-Hui
Author-X-Name-Last: Huang
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Title: Differential Assessment for the Effect of Government Epidemic Prevention Policies on Controlling the COVID-19: The Experience of Taiwan
Abstract: 
 The effect of government epidemic prevention policies on controlling COVID-19 is of great importance to health, politics, and development economics. This paper thus investigates the impacts of government responses on confirmed cases related to COVID-19 in Taiwan for the period January 1, 2020 to May 13, 2021 by employing ordinary least squares (OLS) estimation. Overall, our empirical results indicate that there is a significantly impact of government responses on COVID-19 pandemic spread in Taiwan. In addition, the speed of government responses would significantly affect confirmed cases of COVID-19 in Taiwan. The earlier government epidemic prevention responses led to fewer confirmed cases. After conducting a series of robustness checks, the above conclusions are still robust.
Journal: Emerging Markets Finance and Trade
Pages: 3928-3938
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2073818
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2073818
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# input file: MREE_A_2079975_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hao Shu
Author-X-Name-First: Hao
Author-X-Name-Last: Shu
Author-Name: Weiqiang Tan
Author-X-Name-First: Weiqiang
Author-X-Name-Last: Tan
Title: Investor Limited Attention, Opinion Divergence, and Post-earnings-announcement Drift: Evidence from China
Abstract: 
 The study provides new evidence for the limited attention theory in explaining post-earnings-announcement drift (PEAD) by using the data of stocks listed in Shanghai and Shenzhen A-shares from 2000 to 2020. We introduce two types of inattentive investors: one ignores the market or industry information, while the other ignores the dividend information in a theoretical model and show that the effect of investors’ opinion divergence induced by inattentive investors drives the post-earnings-announcement drift (PEAD). The empirical test supports the testable hypothesis based on the model. When investors’ expectations of future stock prices are more inconsistent, the PEAD effect is more significant after the earnings announcement. Furthermore, the findings remain robust after a series of robustness tests, including the transformation of the variable definitions and the replacement of the study interval. And this positive relationship between opinion divergence and PEAD is more significant in the groups with low information transparency and poor corporate governance. The study provides new and direct evidence of investors’ concerns about the impact of market efficiency and regulators’ recommendations to promote the long-term development of China’s financial markets.
Journal: Emerging Markets Finance and Trade
Pages: 3985-4000
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2079975
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2079975
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# input file: MREE_A_2083952_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Yu Meng
Author-X-Name-First: Yu
Author-X-Name-Last: Meng
Author-Name: Hongyan Geng
Author-X-Name-First: Hongyan
Author-X-Name-Last: Geng
Author-Name: Jincheng Zhang
Author-X-Name-First: Jincheng
Author-X-Name-Last: Zhang
Title: Does the Audit Committee Moderate the Effects of non-interest Activities on Bank Risks in China?
Abstract: 
 Using Chinese data from 2000 to 2019, we investigate whether the audit committee moderates the effects of non-interest activities on bank risks. Three main results emerge. First, insolvency risk, portfolio risk, leverage risk, and return on assets (ROA) volatility increase if banks increase their non-interest income share. Second, the negative effects of non-interest activities on bank risks are weaker in banks with more financial expertise or longer board tenure of audit committee members. Channel tests show that the audit committee mitigates the risks from non-interest activities by increasing bank supervision. Finally, when we divide non-interest activities into trading activities and commission and fee activities, the results show that more financial expertise or longer board tenure for audit committee members mainly weaken the negative effects of trading activities on bank risks.
Journal: Emerging Markets Finance and Trade
Pages: 4079-4090
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2083952
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2083952
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# input file: MREE_A_2064741_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Fei Lan
Author-X-Name-First: Fei
Author-X-Name-Last: Lan
Author-Name: Tao Liu
Author-X-Name-First: Tao
Author-X-Name-Last: Liu
Author-Name: Minghuan Li
Author-X-Name-First: Minghuan
Author-X-Name-Last: Li
Title: Research on the Influence of Constructing National Innovation Demonstration Zone on Urban Innovation Level in China
Abstract: 
 This article, using panel data of 264 cities in China (2005–2018), empirically analyzes the influence of National Innovation Demonstration Zone on urban innovation level and its spatial heterogeneity across difference-in-differences model. The research shows that the construction of National Innovation Demonstration Zone can significantly promote urban innovation level, but innovation effect is particularly significant in central and western cities and low-grade cities where innovation foundation is relatively weak. Finally, this article puts forward corresponding policy suggestions according to research conclusions to further improve urban innovation level.
Journal: Emerging Markets Finance and Trade
Pages: 4162-4171
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2064741
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2064741
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# input file: MREE_A_2073817_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chong Chen
Author-X-Name-First: Chong
Author-X-Name-Last: Chen
Author-Name: Yongsi He
Author-X-Name-First: Yongsi
Author-X-Name-Last: He
Author-Name: Kai Wang
Author-X-Name-First: Kai
Author-X-Name-Last: Wang
Author-Name: Shuo Yan
Author-X-Name-First: Shuo
Author-X-Name-Last: Yan
Title: The Impact of early-life Natural Disaster Experiences on the Corporate Innovation by CEOs
Abstract: 
 We examine the relationship between CEO early-life natural disaster experience and corporate innovation. As China has a strict household registration system, we measure CEOs’ early-life natural disaster experience via defining CEOs’ birthplaces based on their official ID and linking it to the Chinese natural disaster database. We find that firms with CEOs who were exposed to natural disasters are less innovative. Importantly, we use textual analysis techniques to document two possible channels through which CEO natural disasters experience to stymie corporate innovation: CEO shortsightedness and risk-averse. Our results are robust to the instrumental variable approach, alternative definitions of early-life time windows and innovation, as well as difference-in-differences test based on CEO turnover events. Taken together, this study sheds light on the relationship between natural disasters and management’s myopia behavior.
Journal: Emerging Markets Finance and Trade
Pages: 3953-3975
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2073817
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2073817
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# input file: MREE_A_2075259_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhengxia He
Author-X-Name-First: Zhengxia
Author-X-Name-Last: He
Author-Name: Changshuai Cao
Author-X-Name-First: Changshuai
Author-X-Name-Last: Cao
Author-Name: Chao Feng
Author-X-Name-First: Chao
Author-X-Name-Last: Feng
Title: Media Attention, Environmental Information Disclosure and Corporate Green Technology Innovations in China’s Heavily Polluting Industries
Abstract: 
 
Green technology innovation is an effective way to overcome the constraints of combining resources and environment. This paper focuses on the impacts of media attention and corporate environmental information disclosure on green technology innovation of China’s 487 listed heavily polluting companies from 2007 to 2019. The corporate environmental information disclosure was measured using text analytics and data mining and considering the impacts of political connections. The results indicate that: (1) both positive and negative media attention and the quality of environmental information disclosure significantly contribute to corporate green technology innovation, with negative media attention having a more substantial impact than positive media attention; (2) The environmental information disclosure of China’s heavily polluting industries acts as a mediator in the impact of negative media attention on enterprise green technology innovation; (3) Political connection as a moderating factor has a major suppressive impact on the mediating model. This paper enriches the research relevant to the drivers of green technology innovation in enterprises. It also provides new ideas for exploring the research on the influence on green technology innovation behavior from the perspective of political connections.
Journal: Emerging Markets Finance and Trade
Pages: 3939-3952
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2075259
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2075259
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# input file: MREE_A_2083498_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Danyun Tang
Author-X-Name-First: Danyun
Author-X-Name-Last: Tang
Author-Name: Yukun Pan
Author-X-Name-First: Yukun
Author-X-Name-Last: Pan
Author-Name: Dawei Liang
Author-X-Name-First: Dawei
Author-X-Name-Last: Liang
Author-Name: Rui Zhao
Author-X-Name-First: Rui
Author-X-Name-Last: Zhao
Title: Does Short Selling Affect Corporate Payout Policy Evidence from China
Abstract: 
 Using China’s short-selling pilot program as an exogenous shock, we provide evidence that removal of short selling constraint has significantly increased firms’ dividend payout. This positive effect is more pronounced for firms with weak monitoring and firms with more information opacity, suggesting that short selling plays an important governance role in investor protection and information disclosure. This association is robust to a series of robustness checks. Furthermore, we find that firms with active short selling activities are more likely to increase the dividend payout, small firms or big firms both show significant increase in dividends after introduced into pilot list, but the effect is weaker for those engaged in repurchase shares. Overall, this study sheds light on the role of short-selling on firms’ payout policy in the emerging market.
Journal: Emerging Markets Finance and Trade
Pages: 4065-4078
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2083498
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2083498
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# input file: MREE_A_2088346_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ilhang Shin
Author-X-Name-First: Ilhang
Author-X-Name-Last: Shin
Author-Name: Sorah Park
Author-X-Name-First: Sorah
Author-X-Name-Last: Park
Title: Do Labor Unions Affect Income Smoothing Through R&D Management?
Abstract: 
 Using the firm-level labor union data unique to Korea, this study examines the influence of labor unions on firms’ income smoothing activities through R&D expense adjustment. We show that unionized firms have greater extent of income smoothing through R&D adjustment, suggesting that labor unions impose pressure on management to smooth out fluctuation in earnings path. Also, we find evidence that the positive association between labor union and income smoothing via R&D expense is significant only for non-chaebol firms. These findings add to the existing literature on the impact of labor unions, one of important stakeholders, on firms’ accounting choices and financial reporting behavior.
Journal: Emerging Markets Finance and Trade
Pages: 4136-4148
Issue: 14
Volume: 58
Year: 2022
Month: 11
X-DOI: 10.1080/1540496X.2022.2088346
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2088346
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# input file: MREE_A_2089559_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hao-Chang Sung
Author-X-Name-First: Hao-Chang
Author-X-Name-Last: Sung
Author-Name: Lisi Shi
Author-X-Name-First: Lisi
Author-X-Name-Last: Shi
Title: Empirical Pricing Kernel and Option-Implied Risk Aversion in China 50 ETF
Abstract: 
 Based on an analysis of the China 50 ETF options and their underlying assets, we measure the empirical pricing kernel and implied risk aversion. By employing a Markov-switching GARCH model, the estimated results show a monotonically decreasing pricing kernel under a high-volatility regime and a U-shaped pricing kernel under a low-volatility regime. The implied risk aversion is inversely S-shaped under both high- and low-volatility regimes. However, the implied risk aversion under the low-volatility regime has a wide range. Investors’ risk aversion perspective helps explain patterns of pricing kernels and risk aversion estimates. Finally, we find that implied risk aversion is predictive of short-term (excess) market returns based on in-sample and out-of-sample tests.
Journal: Emerging Markets Finance and Trade
Pages: 4286-4299
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2089559
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2089559
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# input file: MREE_A_2151898_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yezhou Sha
Author-X-Name-First: Yezhou
Author-X-Name-Last: Sha
Author-Name: Kung-Cheng Ho
Author-X-Name-First: Kung-Cheng
Author-X-Name-Last: Ho
Author-Name: Cheng Yan
Author-X-Name-First: Cheng
Author-X-Name-Last: Yan
Title: Prevention of Financial Risk, the International Conference on Preventing Major Finance Risk and Fostering High-Quality Growth Special Issue
Journal: Emerging Markets Finance and Trade
Pages: 4191-4194
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2151898
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2151898
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# input file: MREE_A_2093104_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Keyi Lan
Author-X-Name-First: Keyi
Author-X-Name-Last: Lan
Author-Name: Sichao Ma
Author-X-Name-First: Sichao
Author-X-Name-Last: Ma
Author-Name: Yuchao Peng
Author-X-Name-First: Yuchao
Author-X-Name-Last: Peng
Author-Name: Fanzhi Wang
Author-X-Name-First: Fanzhi
Author-X-Name-Last: Wang
Title: Blessing in Disguise: Policy Uncertainty and Bank Systemic Risk
Abstract: 
 Does higher policy uncertainty lead to higher financial risk? This study provides evidence of the opposite. Based on a sample of 16 listed banks from 2011 to 2020 in China, we find that economic policy uncertainty has a significant negative impact on bank systemic risk and that the effect is more pronounced for small and unprofitable banks. Further analysis shows that the decline in bank systemic risk is due to the lower asset and liability structural similarity between banks. This study uncovers a volunteer mechanism of preventing bank systemic risk under policy uncertainty.
Journal: Emerging Markets Finance and Trade
Pages: 4271-4285
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2093104
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2093104
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# input file: MREE_A_2082868_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jason Z. Ma
Author-X-Name-First: Jason Z.
Author-X-Name-Last: Ma
Author-Name: Hung-Yi Huang
Author-X-Name-First: Hung-Yi
Author-X-Name-Last: Huang
Author-Name: Qi Zhu
Author-X-Name-First: Qi
Author-X-Name-Last: Zhu
Author-Name: Xixi Shen
Author-X-Name-First: Xixi
Author-X-Name-Last: Shen
Title: Corporate Social Responsibility Disclosure, Market Supervision, and Green Investment
Abstract: 
 As a crucial business practice, corporate social responsibility (CSR) has attracted the attention of companies and market participants worldwide. This study examines the effects of CSR disclosure on green investment and analyses whether effects vary during China’s stock market crash. The results reveal a mismatch between green investment and CSR disclosure and that the market supervisions act as a moderator. Furthermore, we observe that the nature of CSR disclosure as a self-interested tool becomes highly pronounced during extreme risk events. This observation suggests that a company facing downside market risk will compromise many of its environmental performances. Accordingly, we propose improved measures for regulators and investors in response to the gap between CSR disclosure and actual environmental performance.
Journal: Emerging Markets Finance and Trade
Pages: 4389-4398
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2082868
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2082868
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# input file: MREE_A_2070002_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Wanshan Wu
Author-X-Name-First: Wanshan
Author-X-Name-Last: Wu
Author-Name: Lijun Wang
Author-X-Name-First: Lijun
Author-X-Name-Last: Wang
Author-Name: Yaman Omer Erzurumlu
Author-X-Name-First: Yaman Omer
Author-X-Name-Last: Erzurumlu
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Author-Name: Gaoju Yang
Author-X-Name-First: Gaoju
Author-X-Name-Last: Yang
Title: Effects of Country and Geopolitical Risks on Income Inequality: Evidence from Emerging Economies
Abstract: 
 Income inequality is rising due to the risks and uncertainties related to the COVID-19 pandemic and other risks. This paper examines the effects of country risks (measured by economic/financial and political risks) and geopolitical risks on the income inequality in the panel dataset of 19 emerging market economies from 1985 to 2020. It is observed that all risk measures are positively related to income inequality. This evidence is also valid when different empirical models and estimation procedures are considered. The results are also robust for including various controls, excluding the extreme observations in the dataset, and considering the countries at the different income levels and regions.
Journal: Emerging Markets Finance and Trade
Pages: 4218-4230
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2070002
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2070002
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# input file: MREE_A_2063718_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Biao Guo
Author-X-Name-First: Biao
Author-X-Name-Last: Guo
Author-Name: Zhen Wang
Author-X-Name-First: Zhen
Author-X-Name-Last: Wang
Author-Name: Shuyu Fan
Author-X-Name-First: Shuyu
Author-X-Name-Last: Fan
Title: Does the Listing of Options Improve Forecasting Power? Evidence from the Shanghai Stock Exchange
Abstract: 
 This study uses model-free implied volatility and risk-neutral skewness to test the information content of options. Using the CSI 300 ETF options traded on the Hong Kong Exchange, New York Stock Exchange, and Shanghai Stock Exchange (SSE), we find that information content indeed matters and differs before and after the listing of the options on the SSE; forecasting power improved in relation to return, volatility, and tail risk predictions. The findings demonstrate the information effectiveness of China’s options markets and have strong guidance implications for policy regulation, investment, and financial market risk management in emerging economies with derivative markets.
Journal: Emerging Markets Finance and Trade
Pages: 4300-4308
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2063718
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2063718
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# input file: MREE_A_2106212_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Wenwei Guo
Author-X-Name-First: Wenwei
Author-X-Name-Last: Guo
Author-Name: Jing Tang
Author-X-Name-First: Jing
Author-X-Name-Last: Tang
Author-Name: Hongjin Zhu
Author-X-Name-First: Hongjin
Author-X-Name-Last: Zhu
Author-Name: Xiaowen Ma
Author-X-Name-First: Xiaowen
Author-X-Name-Last: Ma
Title: Time-Frequency Spillover Effect of Domestic and Foreign Commodity Markets on China’s Price Levels
Abstract: 
 In this study, a dynamic spillover index method based on generalized variance decomposition is used to measure the volatility and return spillover effects of futures and spot markets on China’s price levels (consumer and producer price indices) at different time-frequencies. The results indicate that both domestic and foreign futures and spot markets exerted time-varying volatility and return spillover effects on China’s price levels and that major global crises aggravate the overall volatility and return spillover effect of the global futures and spot markets. In addition, the spillover effect of domestic and foreign futures and spot markets on China’s price levels is asymmetrical. The results of this study also indicate that the longer the frequency of a cycle is, the stronger the spillover effect of each market on price fluctuations is, and the weaker the return spillover effect is. Finally, the results demonstrate that China can use a combination of monetary easing and credit tightening to control inflation more effectively.
Journal: Emerging Markets Finance and Trade
Pages: 4207-4217
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2106212
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2106212
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# input file: MREE_A_2094760_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jing-Wen Chang
Author-X-Name-First: Jing-Wen
Author-X-Name-Last: Chang
Author-Name: Huang-Ping Yen
Author-X-Name-First: Huang-Ping
Author-X-Name-Last: Yen
Author-Name: Sijia Luo
Author-X-Name-First: Sijia
Author-X-Name-Last: Luo
Title: How to Prevent Time Preference Risk: Evidence from Tax Avoidance
Abstract: 
 This paper investigates whether future time reference in languages affects corporate tax avoidance. Consisting of 265,652 firm-year observations, we cover 42 countries during the 1989 to 2020 periods. The results show that those firms have relatively low cash effective tax rates when their country’s language does not distinguish grammatically between future and present events. Thus, adopting IFRS accounting and the local legal environment could moderate this condition. Our findings remain after considering endogeneity problems and implementing a series of robustness tests. Moreover, we provide additional evidence regarding the effects of formal institutions on tax avoidance and a new approach for regulators to encourage tax compliance and evaluate their local legal environments to more effectively reducing financial risk.
Journal: Emerging Markets Finance and Trade
Pages: 4247-4260
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2094760
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2094760
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# input file: MREE_A_2066995_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jianda Wang
Author-X-Name-First: Jianda
Author-X-Name-Last: Wang
Author-Name: Jun Zhao
Author-X-Name-First: Jun
Author-X-Name-Last: Zhao
Author-Name: Kangyin Dong
Author-X-Name-First: Kangyin
Author-X-Name-Last: Dong
Author-Name: Xiucheng Dong
Author-X-Name-First: Xiucheng
Author-X-Name-Last: Dong
Title: Is Financial Risk A Stumbling Block to the Development of Digital Economy? A Global Case
Abstract: 
 This paper constructs a series of digital economy indexes and explores the impact of financial risk on the development of the global digital economy based on panel data of 121 countries for the period 2003–2019. Furthermore, we analyze regional heterogeneity and asymmetry. The main findings indicate that: (1) an increase of financial risk by 1% can impede the development of the global digital economy by 0.085%; (2) in high-income, upper-middle income, and lower-middle income countries, financial risk negatively affects the global digital economy; (3) financial risk has shown a significantly negative impact on the digital economy from 2009 to 2019; and (4) the financial risk has higher negative effects on the digital economy at the lower quantiles.
Journal: Emerging Markets Finance and Trade
Pages: 4261-4270
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2066995
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2066995
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# input file: MREE_A_2083953_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tao Kong
Author-X-Name-First: Tao
Author-X-Name-Last: Kong
Author-Name: RenJi Sun
Author-X-Name-First: RenJi
Author-X-Name-Last: Sun
Author-Name: Guanglin Sun
Author-X-Name-First: Guanglin
Author-X-Name-Last: Sun
Author-Name: Youtao Song
Author-X-Name-First: Youtao
Author-X-Name-Last: Song
Title: Effects of Digital Finance on Green Innovation considering Information Asymmetry: An Empirical Study Based on Chinese Listed Firms
Abstract: 
 Large capital investment, extended R&D cycle, and high uncertainties characterize green innovations. Consequently, financial risks easily emerge during firms’ green innovation process. This study utilizes data from Chinese A-share listed companies from 2011 to 2019 to examine the effects of digital finance on firms’ green innovation. The findings reveal that digital finance exerts significant and positive influence on green innovation. Digital finance institutions alleviate information asymmetry in the green innovation market through digital technologies such as big data analysis of firm behavior to directly promote firms’ innovation behavior. The internal mechanism analysis reveals that digital finance indirectly promotes green innovation by improving the quality of firms’ environmental information disclosure and reducing financial constraints. The heterogeneity analysis indicates that the promotional effect of digital finance on green innovation is more prominent in larger and state-owned enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 4399-4411
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2083953
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2083953
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# input file: MREE_A_2069488_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yi Fang
Author-X-Name-First: Yi
Author-X-Name-Last: Fang
Author-Name: Yanru Wang
Author-X-Name-First: Yanru
Author-X-Name-Last: Wang
Author-Name: Yingyu Zhao
Author-X-Name-First: Yingyu
Author-X-Name-Last: Zhao
Title: Risk Spillover of Global Treasury Bond Markets in the Time of COVID-19 Pandemic
Abstract: 
 We employ the state-dependent local projection method to identify the dynamic risk aggravation effects on Treasury market volatilities and risk spillovers under both local and global COVID-19 pandemic shocks. We find that emerging markets suffer more instability as risk receivers during the pandemic. Local pandemic shock sharpens the risk spillover mainly in the short run, especially when global risk is high, while global pandemic shock aggravates spillover in the medium run led by economic depression expectations. The results are not only helpful to encourage governments to deepen cooperation in combating the pandemic but also alert authorities to pay more attention to imported financial risk.
Journal: Emerging Markets Finance and Trade
Pages: 4309-4320
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2069488
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2069488
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# input file: MREE_A_2069487_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ping Wei
Author-X-Name-First: Ping
Author-X-Name-Last: Wei
Author-Name: Yinshu Qi
Author-X-Name-First: Yinshu
Author-X-Name-Last: Qi
Author-Name: Xiaohang Ren
Author-X-Name-First: Xiaohang
Author-X-Name-Last: Ren
Author-Name: Kun Duan
Author-X-Name-First: Kun
Author-X-Name-Last: Duan
Title: Does Economic Policy Uncertainty Affect Green Bond Markets? Evidence from Wavelet-Based Quantile Analysis
Abstract: 
 This paper investigates the wavelet-based quantile dependence between Economic Policy Uncertainty (EPU) and green bond markets over 2014–2021. We first determine how the connectivity between EPU and green bonds differs across different investment horizons by decomposing EPU and green bond series into various frequency bands. Next, we provide a quantile-based framework to characterize the reliance between EPU and green bond markets across various market circumstances. Our findings show that the Granger causality from EPU to the green bond market is non-linear and varies across time scales. Our results benefit policymakers with a policy design to mitigate systematic volatility caused by external shocks in the green bond markets.
Journal: Emerging Markets Finance and Trade
Pages: 4375-4388
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2069487
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2069487
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# input file: MREE_A_2068412_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Guoliang Chen
Author-X-Name-First: Guoliang
Author-X-Name-Last: Chen
Author-Name: Jianchun Fang
Author-X-Name-First: Jianchun
Author-X-Name-Last: Fang
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Author-Name: Sercan Pekel
Author-X-Name-First: Sercan
Author-X-Name-Last: Pekel
Title: Measuring Uncertainty in Export Destinations And Its Impact on Economic Growth: Evidence from Turkey
Abstract: 
 Using data from the World Uncertainty, the World Trade Uncertainty, and the World Pandemic Uncertainty indices for 142 countries, this paper introduces three new indicators for measuring Turkey’s export markets’ uncertainty from 1996Q1 to 2021Q3. The indicators measure uncertainty in Turkey’s export destinations. After introducing three indicators of uncertainty for export markets, we investigate their effects on economic performance. It is found that all uncertainty indicators are negatively related to economic growth. Specifically, an increase in export destinations’ uncertainty leads to a slower growth rate of two quarters. Pandemic-induced uncertainty also negatively affects economic growth. The implications for the role of risks and uncertainties, such as financial, geopolitical, and political risks, are also discussed.
Journal: Emerging Markets Finance and Trade
Pages: 4231-4246
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2068412
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2068412
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# input file: MREE_A_2069490_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chunyang Wang
Author-X-Name-First: Chunyang
Author-X-Name-Last: Wang
Author-Name: Sujuan Zhao
Author-X-Name-First: Sujuan
Author-X-Name-Last: Zhao
Author-Name: Haitao Zheng
Author-X-Name-First: Haitao
Author-X-Name-Last: Zheng
Author-Name: Yiyi Bai
Author-X-Name-First: Yiyi
Author-X-Name-Last: Bai
Title: Does Financial Constraint Hinder Firm Growth?
Abstract: 
 Financial constraint is a major obstacle for firm growth in emerging economies. Using a World Business Environment Survey (WEBS) dataset, we find that formal financing constraint hampers firm growth. Small firms suffer more than large ones from financial constraint, whereas there is no significant difference between state-owned enterprises (SOEs) and non-SOEs. Our results are robust when we use collateral constraint as an instrumental variable for formal financial constraint. We provide supporting evidence for the promulgation of financial liberalization, which can help alleviate financial constraint, enhance firm growth, and therefore improve economic resilience and prevent financial risks in an emerging economy such as China.
Journal: Emerging Markets Finance and Trade
Pages: 4195-4206
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2069490
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2069490
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# input file: MREE_A_2069489_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yixing Zhang
Author-X-Name-First: Yixing
Author-X-Name-Last: Zhang
Author-Name: Xiaomeng Lu
Author-X-Name-First: Xiaomeng
Author-X-Name-Last: Lu
Author-Name: Qiu Zhong
Author-X-Name-First: Qiu
Author-X-Name-Last: Zhong
Title: Pandemic, Precautionary Saving, and Household Portfolio Choice: Evidence from China
Abstract: 
 We examine the short-term impact of the COVID-19 pandemic on household asset allocation in China. The results show that in the first quarter of 2020, households generally save more. Basically, higher regional risk generates stronger motivation to increase precautionary savings. Households generally adapt to more conservative asset allocation strategies, the demand for low-risk asset increases, while the demand for high-risk and high-liquidity asset decreases. We find significant regional differences in household allocation strategies for high-risk and low-risk assets. These results could be due to the regional heterogeneity of time allocations.
Journal: Emerging Markets Finance and Trade
Pages: 4338-4349
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2069489
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2069489
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# input file: MREE_A_2065917_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhenzhen Long
Author-X-Name-First: Zhenzhen
Author-X-Name-Last: Long
Author-Name: Yang Zhao
Author-X-Name-First: Yang
Author-X-Name-Last: Zhao
Title: The Risk Spillover Effect of COVID-19 Breaking News on the Stock Market
Abstract: 
 The COVID-19 pandemic outbreak, an exogenous shock, affected the world economy and financial markets in 2020. We investigate the COVID-19 breaking news impact on the Chinese stock market, identifying the risk spillover channels using an event analysis and orthogonal decomposition method. Our results show: (1) the COVID-19 breaking news impact on the stock market is significant despite its relatively short duration, more pronounced for industries associated with shutdowns and travel restrictions during the pandemic. (2) It significantly impacts the risk spillovers across industries; spillover directions reflect the “flight-to-quality” behavior of investors. (3) It mainly impacts the stock market through the investor sentiment channel. To mitigate this, regulators should take adequate measures to prevent panic and build investor confidence.
Journal: Emerging Markets Finance and Trade
Pages: 4321-4337
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2065917
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2065917
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# input file: MREE_A_2078698_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Long Jin
Author-X-Name-First: Long
Author-X-Name-Last: Jin
Author-Name: Changchun Pan
Author-X-Name-First: Changchun
Author-X-Name-Last: Pan
Author-Name: Yan Li
Author-X-Name-First: Yan
Author-X-Name-Last: Li
Author-Name: Xinmiao Liu
Author-X-Name-First: Xinmiao
Author-X-Name-Last: Liu
Title: How Can FinTech Reduce Corporate Zombification Risk?
Abstract: 
 Based on data from China’s A-share listed companies from 2011 to 2018, in this paper, we examine the impact of FinTech on corporate zombification risk. We find that FinTech can reduce corporate zombification risk; for each unit increase in FinTech, the probability of a company becoming a zombie firm decreases by 7.8%. In addition, FinTech can reduce corporate zombification risk by improving the efficiency of bank credit and government subsidies. Furthermore, the breadth of FinTech coverage and the depth of application can reduce corporate zombification risk, but the degree of digitization fails to play a role. Finally, not only can FinTech reduce corporate zombification risk, but it can also inhibit the contagion effect of zombie firms in the industry.
Journal: Emerging Markets Finance and Trade
Pages: 4350-4360
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2078698
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2078698
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# input file: MREE_A_2103403_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yuhang Zheng
Author-X-Name-First: Yuhang
Author-X-Name-Last: Zheng
Author-Name: Jiaying Peng
Author-X-Name-First: Jiaying
Author-X-Name-Last: Peng
Author-Name: Xiangzhong Wei
Author-X-Name-First: Xiangzhong
Author-X-Name-Last: Wei
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Title: Low-Carbon Transition of Enterprises and Financial Market Stability: From the Perspective of Stock Price Crash Risk
Abstract: 
 This study aimed to assess the effect of corporate low-carbon transition on financial market stability. For this purpose, this study used the panel data of nonfinancial companies listed on China’s A shares from 2007 to 2020, considering stock price crash risk. The results revealed that the low-carbon transition of enterprises intensifies the risk of stock price crashes. The positive correlation between the low-carbon transition of enterprises and the stock price crash risk is more significant for companies lacking environmental information disclosure and green innovation, in addition to companies in high-polluting industries and noncarbon emission pilot areas. The conclusions were confirmed to be robust by introducing other control variables into the model, conducting instrumental variables test, and using the difference-in-differences method.
Journal: Emerging Markets Finance and Trade
Pages: 4361-4374
Issue: 15
Volume: 58
Year: 2022
Month: 12
X-DOI: 10.1080/1540496X.2022.2103403
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2103403
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# input file: MREE_A_2095899_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yiming Hu
Author-X-Name-First: Yiming
Author-X-Name-Last: Hu
Author-Name: Wen Li
Author-X-Name-First: Wen
Author-X-Name-Last: Li
Author-Name: Aiping Zhang
Author-X-Name-First: Aiping
Author-X-Name-Last: Zhang
Title: Political Promotion Incentives and Firm Risk: Evidence from State-owned Enterprises in China
Abstract: 
 Top executives in state-owned enterprises (SOEs) in China can be promoted to government sectors. This is regarded as political promotion. Using hand-collected turnover data for top executives in SOEs and adopting a time-varying difference-in-differences design, we find that firm risk is significantly lower in the years immediately before the political promotion of top executives, when their incentives for political promotions are stronger. Moreover, strong industry tournament incentives counteract the impact of political promotion incentives on firm risk. This study supplements tournament theory and enhances our understanding of how different incentive mechanisms interact and affect firms’ choices vis-à-vis their risk-taking activities.
Journal: Emerging Markets Finance and Trade
Pages: 156-169
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2095899
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2095899
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# input file: MREE_A_2088349_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Qing He
Author-X-Name-First: Qing
Author-X-Name-Last: He
Author-Name: Dongxu Li
Author-X-Name-First: Dongxu
Author-X-Name-Last: Li
Title: State Common Ownership and Bank Governance: Evidence from CEO Turnovers in China
Abstract: 
 Using hand-collected data of bank loans and CEO turnovers in China, we investigate whether common ownership compromises creditors’ governance role when borrowers underperform. Unlike prior literature on the overall lack of bank monitoring on state-owned enterprises (SOEs) in China, we argue that such governance inefficiency exists only among the lending relationships where the bank and the firm are ultimately owned by the same government agency (i.e., state common ownership). The effects are greater for the firms with a board director from the lending bank, with ownership in the bank’s shares, and with political connections. Overall, this paper revisits the functions of state-owned business groups in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 170-191
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2088349
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2088349
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# input file: MREE_A_2089017_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yu He
Author-X-Name-First: Yu
Author-X-Name-Last: He
Author-Name: Huan Zheng
Author-X-Name-First: Huan
Author-X-Name-Last: Zheng
Title: Market Reactions to the Announcement of China’s Resource Tax Law
Abstract: 
 This study employs event study methodology to examine the impacts of China’s Resource Tax Law on corporate firms, from the perspective of stock traders. Our results demonstrate that most sectors experience negative market reactions from 41 to 121 trading days around the announcement rather than immediately. Regarding the determinants of market reactions, we find that research and development (R&D) investments are positively related to cumulative abnormal returns. Moreover, our additional tests show that R&D investments have different impacts on various subsamples. Further, the empirical results remain robust when controlling for potential endogeneity issues.
Journal: Emerging Markets Finance and Trade
Pages: 1-14
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2089017
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2089017
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# input file: MREE_A_2089558_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jian Chen
Author-X-Name-First: Jian
Author-X-Name-Last: Chen
Author-Name: Di Zhao
Author-X-Name-First: Di
Author-X-Name-Last: Zhao
Author-Name: Man-Lin Kang
Author-X-Name-First: Man-Lin
Author-X-Name-Last: Kang
Title: Urban Land Expansion, Interior Spatial Population Distribution, and Urban Economic Growth: Evidence from China
Abstract: 
 Based on prefecture-level data from China over the period 1999–2018, our study aims to identify the impact of urban land expansion on economic growth conditional on the spatial population distribution within a city. Controlling the potential path dependence impact of the urban economy with a lagged explanatory variable in the designed model, and primarily based on the generalized method of moments, the empirical results show that it is the relative urban land expansion rather than the net expansion that is disadvantageous to urban economic growth. The interior spatial population distribution, which is primarily measured as the relative proportion of the population residing outside the main urban area, boosts urban economic growth directly as well as promoting it indirectly by alleviating the negative impact of urban relative land expansion. Our results provide a theoretical basis for alleviating the population–land contradiction and reducing the risk of urban economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 27-38
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2089558
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2089558
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# input file: MREE_A_2089019_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chun He
Author-X-Name-First: Chun
Author-X-Name-Last: He
Author-Name: Yun-Peng Wang
Author-X-Name-First: Yun-Peng
Author-X-Name-Last: Wang
Author-Name: Kai Tang
Author-X-Name-First: Kai
Author-X-Name-Last: Tang
Title: Impact of Low-Carbon City Construction Policy on Green Innovation Performance in China
Abstract: 
 This research constructs a double difference model to test the impact of LCCP on green innovation by using urban panel data of 276 cities in China from 2005 to 2019. Findings show that LCCP effectively improves the level of green innovation performance, and the conclusion is robust. Its effect is more obvious in cities with high scientific and educational levels as well as big cities or eastern cities of the country. LCCP enhances the performance of urban green innovation by driving technological innovation, upgrading the industrial structure, and optimizing urban public services. This research is significant for realizing high-quality economic development.
Journal: Emerging Markets Finance and Trade
Pages: 15-26
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2089019
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2089019
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# input file: MREE_A_2090833_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dan Huang
Author-X-Name-First: Dan
Author-X-Name-Last: Huang
Author-Name: Dong Lu
Author-X-Name-First: Dong
Author-X-Name-Last: Lu
Author-Name: Xiaofeng Quan
Author-X-Name-First: Xiaofeng
Author-X-Name-Last: Quan
Author-Name: Cunyu Xing
Author-X-Name-First: Cunyu
Author-X-Name-Last: Xing
Title: Non-Controlling Shareholders and Innovation: Evidence from Chinese State-Owned Enterprises
Abstract: 
 We examine the effect of non-controlling shareholders (NCSs) on innovation in Chinese state-owned enterprises (SOEs). Using a sample of Chinese SOEs during 2007–2016, we find that the voting rights of NCSs positively relate to SOEs’ innovation. Furthermore, we distinguish the identities of NCSs in terms of state-owned attributes and show that this positive relationship is concentrated in SOEs whose NCSs are state-owned. Additionally, we find that the effect of NCSs is more pronounced in financially constrained SOEs, and that SOEs with influential NCSs reduce inefficient investments while make more R&D investments. Overall, our results indicate that influential NCSs have a positive effect on SOEs’ innovation through retaining more resources for innovation projects, and this effect varies somewhat depending on the state-owned attributes of NCSs.
Journal: Emerging Markets Finance and Trade
Pages: 39-59
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2090833
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2090833
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# input file: MREE_A_2093105_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Wei Tu
Author-X-Name-First: Wei
Author-X-Name-Last: Tu
Author-Name: Juan He
Author-X-Name-First: Juan
Author-X-Name-Last: He
Title: Can Digital Transformation Facilitate Firms’ M&A: Empirical Discovery Based on Machine Learning
Abstract: 
 Combining with Transaction Cost Economics theory, we attempt to analyze the impact of digital transformation on mergers and acquisitions (M&A) from a micro perspective. With the help of machine learning methods, we construct a measure of corporate digital transformation, based on which we use management discussion and analysis data from the annual reports of Chinese listed companies from 2010 to 2019 to find that corporate digital transformation can significantly promote M&A; heterogeneity analysis shows that digital transformation has a more significant effect on promoting M&A among private enterprises and companies with higher analyst coverage; and mechanism analysis shows that digital transformation influences M&A through reducing internal organizational costs; the findings have implications for understanding the role played by digital transformation in corporate boundary expansion and the impact among different firms.
Journal: Emerging Markets Finance and Trade
Pages: 113-128
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2093105
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# input file: MREE_A_2089015_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Qingfeng Cai
Author-X-Name-First: Qingfeng
Author-X-Name-Last: Cai
Author-Name: Dongxu Li
Author-X-Name-First: Dongxu
Author-X-Name-Last: Li
Author-Name: Shaowen Shu
Author-X-Name-First: Shaowen
Author-X-Name-Last: Shu
Title: Are Academic Leaders Less Aggressive? Evidence from Corporate Expansion
Abstract: 
 Using a sample of 2406 Chinese listed firms among which 491 have scholar chairmen, we find that compared with the firms without scholar chairmen, those with scholar chairmen are less likely to overinvest, less acquisitive, and the firms tend to hold more cash and less leverage. These results suggest that corporate leaders with academic work experience are less aggressive. These results remain robust after we utilize alternative proxies to measure chairmen’s academic achievements, and we use the number of top universities (Project 985/211 University) in the firm’s head-quarter province as the instrument for identification. Overall, this paper helps us better understand the role of academic leadership in corporate governance.
Journal: Emerging Markets Finance and Trade
Pages: 218-237
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2089015
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2089015
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# input file: MREE_A_2088350_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Yu Meng
Author-X-Name-First: Yu
Author-X-Name-Last: Meng
Title: Anti-corruption Campaigns and Pay-performance Sensitivity: Evidence from Chinese Listed Companies
Abstract: 
 We explore whether anti-corruption campaigns affect pay-performance sensitivity (PPS) in Chinese listed companies. Using a detailed anti-corruption data set at the city level from 2012 to 2018, we find that anti-corruption campaigns lead CEOs to shield (justify) their compensation by increasing pay-performance sensitivity. This result passes a series of robustness tests and endogeneity concerns. Furthermore, channel tests show that anti-corruption campaigns increase pay-performance sensitivity via the deterrence effect and the contagion effect. Cross-sectional tests show that the positive relationship between anti-corruption campaigns and PPS is more pronounced in larger firms and firms that belong to oligopoly markets.
Journal: Emerging Markets Finance and Trade
Pages: 192-217
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2088350
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2088350
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# input file: MREE_A_2093103_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Meng-Fen Hsieh
Author-X-Name-First: Meng-Fen
Author-X-Name-Last: Hsieh
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Meng-Fen Shen
Author-X-Name-First: Meng-Fen
Author-X-Name-Last: Shen
Title: Ownership Structure, Diversification, and Bank Performance: International Evidence
Abstract: 
 This research utilizes ultimate controlling shareholders to examine whether ultimate ownership structure (bank, industrial company, mutual fund, financial company, and state) and/or income diversification affect bank performance via a total sample of 6,053 commercial banks in six regions (advanced countries, Asia, Latin America, the Middle East and North Africa, Sub-Saharan Africa, and Transit countries). First, taking the group of advanced countries for example, banks can increase their profit under the ownership types of banking institution, mutual fund, and financial company, whereas the interaction of income diversity and ownership is negatively linked with bank performance. Second, the ownership types of banking institution and state help reduce banks’ risk taking, but non-interest income diversity is adversely favorable for risk. Third, banks with mutual funds as controlling shareholders exhibit higher risk, while non-interest income diversity mitigates their risk-taking behavior.
Journal: Emerging Markets Finance and Trade
Pages: 90-112
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2093103
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2093103
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# input file: MREE_A_2094238_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Weiwei Yang
Author-X-Name-First: Weiwei
Author-X-Name-Last: Yang
Author-Name: Huobao Xie
Author-X-Name-First: Huobao
Author-X-Name-Last: Xie
Title: Do Private Strategic Investors Improve Capital Allocation Efficiency of SOEs? Evidence from China
Abstract: 
 Introducing private strategic investors (PSIs) is an important way for Chinese state-owned enterprises (SOEs) to implement mixed-ownership reform today. Based on the data of the Chinese listed SOEs, this study assesses the impact of PSIs on SOEs’ capital allocation efficiency manifested in sensitivity of investment to growth opportunities. We find that PSIs could significantly improve capital allocation. In particular, the shareholding ratio and top management ratio of PSIs have an inverted U-shaped and positive impact on capital allocation, respectively. Furthermore, we investigate four underlying mechanisms based on principal–agency and resource perspectives. Finally, we investigate the effects of heterogeneous PSIs, and discover that PSIs from regions with higher levels of marketization yield greater benefits. Prior to 2013, foreign PSIs played a more positive role than their domestic counterparts, but this became the opposite after 2013.
Journal: Emerging Markets Finance and Trade
Pages: 129-155
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2094238
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2094238
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# input file: MREE_A_2091434_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Juan Camilo Galvis-Ciro
Author-X-Name-First: Juan Camilo
Author-X-Name-Last: Galvis-Ciro
Author-Name: Claudio Oliveira de Moraes
Author-X-Name-First: Claudio Oliveira
Author-X-Name-Last: de Moraes
Author-Name: Jaime García-Lopera
Author-X-Name-First: Jaime
Author-X-Name-Last: García-Lopera
Title: The Macroeconomic Impact on Bank’s Portfolio Credit Risk: The Colombian Case
Abstract: 
 This paper explores the determinants of credit risk for the Colombian economy, a small emerging economy in Latin American. Using a sample of 28 large banks over the 2009–2019 period and the dynamic data panel approach, we find that the macroeconomic environment’s deterioration affects the credit risk perception held by banks as measured through non-performing loans and loan loss provisions. On the other hand, a better political environment brought about by peace accords smoothed such an impact. Estimates indicate different reactions when distinguishing by loan type. Business credit depends heavily on unemployment, while consumer credit risk is more sensitive to the interest rate. In the case of mortgage loans, economic growth and the unemployment rate are the most critical variables to mitigate risk. These results shed light on the impact of the economic environment on credit lines with different features.
Journal: Emerging Markets Finance and Trade
Pages: 60-77
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2091434
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2091434
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Handle: RePEc:mes:emfitr:v:59:y:2023:i:1:p:60-77



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# input file: MREE_A_2089016_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shaopeng Cao
Author-X-Name-First: Shaopeng
Author-X-Name-Last: Cao
Author-Name: Ji (George) Wu
Author-X-Name-First: Ji (George)
Author-X-Name-Last: Wu
Author-Name: Chunfeng Wang
Author-X-Name-First: Chunfeng
Author-X-Name-Last: Wang
Author-Name: Zhenming Fang
Author-X-Name-First: Zhenming
Author-X-Name-Last: Fang
Author-Name: Xin Cui
Author-X-Name-First: Xin
Author-X-Name-Last: Cui
Title: Academic Independent Director Abnormal Resignations and R&D Investment: Evidence from China
Abstract: 
 We examine the effects of academic independent directors abnormal resignations on a firm’s R&D investment. We manually collect the resignations data of 3,964 academic independent directors (IDAs), and find that the abnormal resignations of IDAs reduce firms’ R&D investment. The results remain significant after employing a series of endogenous checks and robustness tests. Furthermore, we find that the lack of advising and resourcing channels caused by abnormal resignations are the primary mechanisms for the decline of the R&D investment. Our main finding is more pronounced for non-state-owned enterprises, firms with numerous independent directors, and firms with high profitability and low degrees of financial constraints. We contribute to the literature by proving that the abnormal resignations of IDAs not only decrease firms’ R&D investment but also further reduce the innovation quality and firm value over the long run. Overall, this paper supports that IDAs have positive contributions to R&D investment and firms’ value.
Journal: Emerging Markets Finance and Trade
Pages: 238-264
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2089016
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2089016
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# input file: MREE_A_2093102_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Fengjiao Lin
Author-X-Name-First: Fengjiao
Author-X-Name-Last: Lin
Author-Name: Zhigang Qiu
Author-X-Name-First: Zhigang
Author-X-Name-Last: Qiu
Title: Sentiment Beta and Asset Prices: Evidence from China
Abstract: 
 This article examines the relationship between sentiment beta and stock returns in Chinese stock market. Stocks with low (negative) sentiment beta significantly outperform those with high (positive) sentiment beta. When arbitrage is highly restricted or the stocks are difficult to value, the negative relationship between sentiment beta and stock returns is more pronounced. Further investigation shows that the results are mainly driven by periods of crisis and low economic policy uncertainty (EPU). In general, there exists an against minus catering sentiment (AMC) pricing factor in China.
Journal: Emerging Markets Finance and Trade
Pages: 78-89
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2093102
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2093102
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# input file: MREE_A_2147787_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nan Lin
Author-X-Name-First: Nan
Author-X-Name-Last: Lin
Author-Name: Ruoyu Weng
Author-X-Name-First: Ruoyu
Author-X-Name-Last: Weng
Author-Name: Rui Fan
Author-X-Name-First: Rui
Author-X-Name-Last: Fan
Title: The Effect of Mandatory Clawback Provisions on Corporate Innovation: Quasi-Experimental Evidence from China
Abstract: 
 
The clawback provisions adoption has received increasing attention in recent studies. Based on US setting, several studies find that voluntary clawback provisions may impede corporate innovation. Exploiting a policy experiment that requires SOEs to adopt mandatory clawback provisions in China, we find that adopting mandatory clawback provisions enhances corporate innovation. The cross-sectional tests show that the effect is stronger in firms with more related party transactions and in firms with less institutional investors, suggesting that improving corporate governance is a plausible channel through which clawback provisions affect corporate innovation. Overall, our study indicates that mandatory clawback provisions may play an active role in countries with weak corporate governance.
Journal: Emerging Markets Finance and Trade
Pages: 265-280
Issue: 1
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2147787
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2147787
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# input file: MREE_A_2096434_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chinmaya Behera
Author-X-Name-First: Chinmaya
Author-X-Name-Last: Behera
Author-Name: Badri Narayan Rath
Author-X-Name-First: Badri Narayan
Author-X-Name-Last: Rath
Title: The Interconnectedness between COVID-19 Uncertainty and Stock Market Returns in Selected ASEAN Countries
Abstract: 
 This paper examines the interconnectedness between the COVID-19 uncertainty index and stock returns in selected ASEAN countries. Results from the study, which uses the dynamic connectedness approach, show that on average, 47.06% of a shock on one index spills over to all other indices. This indicates that stock market returns are highly interconnected to the COVID-19 uncertainty index in ASEAN countries. However, the COVID-19 uncertainty index is not a predictor of stock returns in the ASEAN countries chosen for the study.
Journal: Emerging Markets Finance and Trade
Pages: 515-527
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2096434
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2096434
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# input file: MREE_A_2106843_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Author-Name: Boxu Zhou
Author-X-Name-First: Boxu
Author-X-Name-Last: Zhou
Author-Name: Tsung-Yu Yang
Author-X-Name-First: Tsung-Yu
Author-X-Name-Last: Yang
Author-Name: Chin-Hsien Yu
Author-X-Name-First: Chin-Hsien
Author-X-Name-Last: Yu
Author-Name: Jinsong Zhao
Author-X-Name-First: Jinsong
Author-X-Name-Last: Zhao
Title: The Impact of Urbanization on CO2 Emissions in China: The Key Role of Foreign Direct Investment
Abstract: 
 By adopting the dynamic panel threshold approach, this study assesses how foreign direct investment (FDI) shapes the causality between urbanization and CO2 emissions in China from 1996–2018. The results suggest that a rise in the pace of urbanization increases CO2 emissions, but this harmful effect becomes weaker after achieving a certain level of foreign capital. We also find that the more developed the technology, financial and government sectors, the more it can promote urbanization to reduce CO2 emissions. These results offer policy implications for China’s urban planning and environmental policy.
Journal: Emerging Markets Finance and Trade
Pages: 451-462
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2106843
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2106843
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# input file: MREE_A_2096433_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yi Li
Author-X-Name-First: Yi
Author-X-Name-Last: Li
Author-Name: Jingjing Deng
Author-X-Name-First: Jingjing
Author-X-Name-Last: Deng
Author-Name: Zongyi Hu
Author-X-Name-First: Zongyi
Author-X-Name-Last: Hu
Author-Name: Bibang Gong
Author-X-Name-First: Bibang
Author-X-Name-Last: Gong
Title: Economic Policy Uncertainty, Industrial Intelligence, and Firms’ Labour Productivity: Empirical Evidence from China
Abstract: 
 In this paper, we empirically explore the impact of uncertainty in economic policy and industrial intelligence on firms’ labor productivity, as well as the possible methods and mechanisms of influence. After theoretical inference, we employ regression models with sample data collected from A-share companies in the manufacturing industry listed on the Shanghai and Shenzhen stock exchanges between 2007 and 2019. We find that firms’ labor productivity experiences a significant decrease under economic policy uncertainty. However, the negative effect of economic policy uncertainty shocks on labor productivity in regions with high industrial intelligence levels is effectively mitigated. These differential changes in the impact of economic policy uncertainty shock on labor productivity between areas with high and low industrial intelligence levels are found primarily for firms in high-technology and highly specialized sectors, sectors with strong financial constraints. Besides, we perform further analysis which indicates that the upgrading of human capital operates as an essential channel for economic policy uncertainty shocks and industrial intelligence to affect firms’ labor productivity. Overall, our findings illustrate that implementing economic policies in a stable and transparent way and developing intelligent technology can improve firms’ labor productivity.
Journal: Emerging Markets Finance and Trade
Pages: 498-514
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2096433
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2096433
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# input file: MREE_A_2099268_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dai Yuhui
Author-X-Name-First: Dai
Author-X-Name-Last: Yuhui
Author-Name: Lu Zhang
Author-X-Name-First: Lu
Author-X-Name-Last: Zhang
Title: Regional Digital Finance and Corporate Financial Risk: Based on Chinese Listed Companies
Abstract: 
 Using digital inclusive finance data from Peking University, this paper empirically examines the relationship between regional digital finance development and the financial risk of listed companies. The mechanism test finds that digital finance development can significantly reduce corporate financial risk. Digital finance has a resource effect and governance effect, reducing corporate financial risk by alleviating corporate financing constraints and reducing inefficient investment. Heterogeneity tests show that the reduction effect of digital finance on corporate financial risk is more significant in SMEs, private firms, and firms with non-overconfident managers.
Journal: Emerging Markets Finance and Trade
Pages: 296-311
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2099268
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2099268
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# input file: MREE_A_2088347_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: JuXian Wang
Author-X-Name-First: JuXian
Author-X-Name-Last: Wang
Author-Name: Tianyi Dong
Author-X-Name-First: Tianyi
Author-X-Name-Last: Dong
Author-Name: Jinbu Zhai
Author-X-Name-First: Jinbu
Author-X-Name-Last: Zhai
Title: Goodwill Impairment, Loss Avoidance Effects and Subsequent Corporate M&A Decisions
Abstract: 
 Against the background of increasingly serious goodwill impairment, it is important to explore the comprehensive effects triggered by goodwill impairment. This paper explores the economic consequences of goodwill impairment from the perspective of subsequent merging and acquisition (M&A) decision, and attempts to interpret it from the psychological theory of loss aversion effects. The empirical results show that: (1) the firms with goodwill impairment experience decreasing significantly M&A scale and frequency in the future; (2) the results above are more pronounced for the corporates with those managers who are not over-confident, and have more defensive strategies, and higher financing constraints; (3) goodwill impairment improves firm’s investment efficiency by reducing over-investment, and improves subsequent M&A performance. Above results imply that goodwill impairment may prompt managers to be more cautious in M&A activities, and make more value-added subsequent acquisitions. Our findings have important implications for understanding the comprehensive impact of goodwill impairment on corporate M&A decision-making.
Journal: Emerging Markets Finance and Trade
Pages: 479-497
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2088347
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2088347
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# input file: MREE_A_2097065_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiaoqian Zhang
Author-X-Name-First: Xiaoqian
Author-X-Name-Last: Zhang
Author-Name: Zhiwei Wang
Author-X-Name-First: Zhiwei
Author-X-Name-Last: Wang
Title: Implicit Government Guarantee and Corporate Investment: Evidence from China’s Belt and Road Initiative
Abstract: 
 Implicit government guarantee results in financing convenience and distorting corporate investment. The effects on MCB’s credit spread and corporate investment are studied in this paper based on China’s bond market from 2010 to 2020. The implicit government guarantee lies in MCBs whose financing costs are significantly lower than those of POEs. The inefficiency of corporate investment also exists in MCBs with investment reductions. But this inefficiency has been corrected by China’s recent major national strategy, the Belt and Road Initiative. We provide direct evidence from three perspectives, provinces along BRI routes, city-level features of China-Europe Railway Express and bond-level funding purposes. This paper reveals that implicit government guarantee could only reduce the funding cost, while major national strategy is helpful to promote corporate investment.
Journal: Emerging Markets Finance and Trade
Pages: 528-541
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2097065
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2097065
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# input file: MREE_A_2103401_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yuanfang Wang
Author-X-Name-First: Yuanfang
Author-X-Name-Last: Wang
Author-Name: Chunfang Cao
Author-X-Name-First: Chunfang
Author-X-Name-Last: Cao
Author-Name: Dan Liu
Author-X-Name-First: Dan
Author-X-Name-Last: Liu
Title: Political Party System and Enterprise Innovation: Is China Different?
Abstract: 
 A significant feature of corporate governance in China is the participation of party organizations, reflecting the involvement of the Chinese political party system in enterprises. Using a sample of A-share market listed central state government owned enterprises (hereinafter referred to as “CSOEs”) from 2003 to 2020, this study examines the influence of China’s political party system and state-owned assets supervision system on enterprise innovation. The empirical results show that the participation of party organizations in corporate governance can significantly promote CSOEs’ innovation, especially in the case of CSOEs with weak state-owned assets supervision. The party organization’s role in promoting innovation is mainly achieved through the board of directors and senior management, rather than through the cooperation of the board of supervisors. We also find that this role exists in both substantive and strategic innovations, but mainly exists in areas with weak market allocation resources. Our findings contribute to the literature examining the determinants of firm innovation, and have practical implications for corporate governance in developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 376-390
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2103401
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2103401
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# input file: MREE_A_2103400_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Guanglai Zhang
Author-X-Name-First: Guanglai
Author-X-Name-Last: Zhang
Author-Name: Wenmei Liao
Author-X-Name-First: Wenmei
Author-X-Name-Last: Liao
Author-Name: Yayun Ren
Author-X-Name-First: Yayun
Author-X-Name-Last: Ren
Author-Name: Yantuan Yu
Author-X-Name-First: Yantuan
Author-X-Name-Last: Yu
Title: Impact of Environmental Regulation on Firm Exports: Evidence from a Quasi-Natural Experiment in China
Abstract: 
 To estimate the short term effect of environmental regulation on firm exports, this study considers China’s 2003 City Air Pollution Prevention and Control Program (CAPPCP) in a quasi-natural experiment with microdata from 2000–2007. Using the difference-in-differences (DID) and matching DID methods, our findings indicate that CAPPCP reduced firm exports by 6.2% and 12.3%, respectively. A mechanism analysis examines the three channels through which CAPPCP affects firm exports: total factor productivity, production costs, and factor endowments. Furthermore, a heterogeneity analysis reveals that non-state-owned firms, small-scale firms, and firms in highly polluting industries have stronger negative responses to environmental regulations.
Journal: Emerging Markets Finance and Trade
Pages: 363-375
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2103400
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2103400
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# input file: MREE_A_2097867_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Trinh Q. Long
Author-X-Name-First: Trinh Q.
Author-X-Name-Last: Long
Author-Name: Peter Morgan
Author-X-Name-First: Peter
Author-X-Name-Last: Morgan
Title: Economic Policy Uncertainty and Industrial Linkage in Japan: A Granger Causality in Quantile Test
Abstract: 
 This article examines the relationship between economic policy uncertainty and industrial linkage in Japan. Using a VAR-based connectedness approach to measure the monthly industrial linkage across 15 groups of Japanese industries, we examine the Granger causality in quantile between the industrial linkage and Japan’s monthly economic policy uncertainty (EPU) and its four components including fiscal policy uncertainty, monetary policy uncertainty, trade policy uncertainty, and exchange rate uncertainty during the period from January 1987 to May 2021. We find that changes in economic policy uncertainty and all four components Granger cause changes in industrial linkage, and this result is robust and consistent across nearly all quantiles. We do not find evidence of the Granger causality running from industrial linkage to economic policy uncertainty. However, considering all quantiles, changes in industrial linkage Granger cause the change in each of the four policy uncertainty.
Journal: Emerging Markets Finance and Trade
Pages: 561-588
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2097867
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2097867
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# input file: MREE_A_2099267_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Huan Dou
Author-X-Name-First: Huan
Author-X-Name-Last: Dou
Author-Name: Jiangrong Hou
Author-X-Name-First: Jiangrong
Author-X-Name-Last: Hou
Author-Name: Xu Chuan Xu
Author-X-Name-First: Xu Chuan
Author-X-Name-Last: Xu
Author-Name: Gege Zhu
Author-X-Name-First: Gege
Author-X-Name-Last: Zhu
Title: The Impact of Enterprise Annuity on Stock Price Crash Risk
Abstract: 
 With the aggravation of aging problem, it is practically significant to promote enterprise annuity and explore its economic consequence. Using Chinese A-share listed companies from 2008 to 2017 as sample, we find that enterprise annuity can significantly reduce stock price crash risk. Further analysis indicates that the negative impact is pronounced in the companies with lower managerial ownership, less independent directors, lower management power and better institutional condition. Our conclusions have proved that enterprise annuity can encourage employees to participate in corporate governance actively and thus reduce stock price crash risk.
Journal: Emerging Markets Finance and Trade
Pages: 463-478
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2099267
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2099267
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# input file: MREE_A_2103399_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Flights-to-quality from EM Bonds to safe-haven US Treasury Securities: A time-frequency Analysis
Abstract: 
 We study 2001–2020 flight-to-quality episodes encompassing two planetary-scale crises: the Global Financial Crisis (GFC) of 2007–2008 and the coronavirus-triggered global meltdown. We focus on time-frequency lead-lag nexuses between holding emerging market (EM) debt and investing in relatively risk-free US Treasuries. Wavelet coherency along with the phase-difference approach is used. Our results reveal varying lead-lag patterns and low-coherence zones between EM bonds and US Treasuries, which imply the existence of appealing diversification attributes. The flights-to-quality during the crisis periods, such as the GFC and COVID-19 pandemic, emphasize the safe-haven characteristics of US Treasures. They also evidence that the post-Covid tightening of credit spreads to the pre-crisis levels is faster than the post-GFC recovery. We demonstrate that for EM debt investors, the US Treasury market allows for dynamic risk mitigation strategies during both global crises.
Journal: Emerging Markets Finance and Trade
Pages: 338-362
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2103399
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2103399
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# input file: MREE_A_2096435_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chao Li
Author-X-Name-First: Chao
Author-X-Name-Last: Li
Author-Name: Mian Wu
Author-X-Name-First: Mian
Author-X-Name-Last: Wu
Author-Name: Wenli Huang
Author-X-Name-First: Wenli
Author-X-Name-Last: Huang
Title: Environmental, Social, and Governance Performance and Enterprise Dynamic Financial Behavior: Evidence from Panel Vector Autoregression
Abstract: 
 This research applies panel vector autoregression method (PVAR) to analyze the annual panel data of Chinese A-share listed companies over the period 2009–2020, to study the relationship between enterprise ESG performance and enterprise dynamic financial behavior, by using Sino-Securities’ ESG performance data. The main findings of the research include: first, there is a positive interaction between investment and ESG performance. Second, financial factors (e.g., cash flow) have a positive effect on ESG performance, while ESG performance has a positive effect to fundamental factors (e.g., sales revenue). The above significant effects are maintained mainly in enterprises with low ESG performance. Third, the sensitivity of investment-cash flow with low ESG performance form is significant.
Journal: Emerging Markets Finance and Trade
Pages: 281-295
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2096435
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2096435
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# input file: MREE_A_2103404_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lili Fu
Author-X-Name-First: Lili
Author-X-Name-Last: Fu
Author-Name: Liyuan Pan
Author-X-Name-First: Liyuan
Author-X-Name-Last: Pan
Author-Name: Jingmei Zhao
Author-X-Name-First: Jingmei
Author-X-Name-Last: Zhao
Title: Can Passive Investors Improve Corporate Social Responsibility? Evidence from Chinese Listed Firms
Abstract: 
 Using Hexun’s CSR rating data from 2010 to 2020 for Chinese firms, this study finds a positive relationship between index fund ownership and corporate social responsibility, and this enhancement is significantly stronger in firms in competitive industries. After controlling for endogeneity and exploiting a series of robustness checks, the results remain unchanged. The mechanisms by which index funds influence corporate social responsibility could be their long investment horizon and attraction for analyst coverage. This study provides new empirical evidence on the positive governance effect of passive investors from a CSR perspective.
Journal: Emerging Markets Finance and Trade
Pages: 404-419
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2103404
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2103404
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Handle: RePEc:mes:emfitr:v:59:y:2023:i:2:p:404-419



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# input file: MREE_A_2099270_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dan Zhang
Author-X-Name-First: Dan
Author-X-Name-Last: Zhang
Author-Name: Yunpeng Wang
Author-X-Name-First: Yunpeng
Author-X-Name-Last: Wang
Author-Name: Xinyu Peng
Author-X-Name-First: Xinyu
Author-X-Name-Last: Peng
Title: Carbon Emissions and Clean Energy Investment: Global Evidence
Abstract: 
 Under the premise of the detrimental effects of carbon emission on the global climate, the role of governments in promoting clean energy investment has become more important, and monetary policy as one government tool has drawn greater attention among the public. Our research successfully develops a new model that links clean energy investments with monetary policies and carbon emissions in 9 Asian economies spanning the period from 1996 to 2018. First, from the results of cointegration tests, we find a long-term relationship among the variables. Second, using FMOLS estimators, our paper reveals that expansionary monetary policy promotes clean energy investment and that its effect is stronger in developing countries. Third, we find a positive relationship between CO2 emissions and clean energy investment in the full sample but the relationship becomes negative in developing countries. Accordingly, the paper offers suggestions on possible policy initiatives to improve clean energy investment.
Journal: Emerging Markets Finance and Trade
Pages: 312-323
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2099270
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2099270
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# input file: MREE_A_2101360_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Xiaodong Xiao
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Xiao
Author-Name: Yaobin Liu
Author-X-Name-First: Yaobin
Author-X-Name-Last: Liu
Title: Is China’s Environmental Governance Model a win-win for Energy Conservation and Economic Development?
Abstract: 
 Since its industrialization, China has been continuously promoting environmental governance, and it is worth studying whether this measure has been effective. In this paper, we use industrial pollution control to represent China’s environmental governance. Further, we use growth drag caused by energy consumption to describe a win-win situation for energy conservation and economic development. This paper theoretically analyzes the impact of environmental governance on growth drag by incorporating the former into the growth drag model. Thereafter, using data from 283 cities for the period between 2003 and 2017, this paper applies the dynamic panel data model to investigate whether China’s industrial pollution control can achieve a win-win situation and its transmission mechanism. The results show that industrial pollution control can alleviate growth drag, implying that China’s environmental governance can achieve a win-win situation. However, the effect is more significant in Eastern China and areas with high industrial pollution control intensity. The transmission mechanism analysis shows that industrial pollution control achieves a win-win situation by improving technological innovation, promoting human capital accumulation, and optimizing manufacturing development, of which improving technological innovation is the most significant.
Journal: Emerging Markets Finance and Trade
Pages: 324-337
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2101360
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2101360
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# input file: MREE_A_2104635_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yanling Peng
Author-X-Name-First: Yanling
Author-X-Name-Last: Peng
Author-Name: Li Zhou
Author-X-Name-First: Li
Author-X-Name-Last: Zhou
Author-Name: Qinwen Wang
Author-X-Name-First: Qinwen
Author-X-Name-Last: Wang
Author-Name: Rong Kong
Author-X-Name-First: Rong
Author-X-Name-Last: Kong
Author-Name: Hong Fu
Author-X-Name-First: Hong
Author-X-Name-Last: Fu
Author-Name: Yuehua Zhang
Author-X-Name-First: Yuehua
Author-X-Name-Last: Zhang
Author-Name: Calum G. Turvey
Author-X-Name-First: Calum G.
Author-X-Name-Last: Turvey
Title: Optimal Debt and Risk Balancing Behavior of Rural Households in China: Evidence from a Discrete Choice Experiment
Abstract: 
 Using an in-the-field discrete choice experiment on 336 farmers from rural China, this study aims to determine whether farmers optimize debt according to the optimal capital structure models and assess whether there is evidence of risk balancing behavior among Chinese farmers when they make financing decisions under risk constraints. Results suggest that farmers will increase leverage with greater profits, reduced interest rates, reduced business risk, lower risk aversion, and increasing prudence; they will reduce credit demand with increased collateral requirements, shorter repayment terms, and reduced loan usage flexibility. We also found significant heterogeneity among farmers and substantial differences across areas.
Journal: Emerging Markets Finance and Trade
Pages: 436-450
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2104635
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2104635
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# input file: MREE_A_2103402_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kai Lisa Lo
Author-X-Name-First: Kai Lisa
Author-X-Name-Last: Lo
Author-Name: Huizhu Liu
Author-X-Name-First: Huizhu
Author-X-Name-Last: Liu
Author-Name: Fei Xia
Author-X-Name-First: Fei
Author-X-Name-Last: Xia
Author-Name: Jackson Jinhong Mi
Author-X-Name-First: Jackson Jinhong
Author-X-Name-Last: Mi
Title: The Impact of Interfirm Cooperative R&D on Firm Performance: Evidence from Chinese Publicly Listed Companies
Abstract: 
 With the development of the economy, collaborative R&D has become an important tool for Chinese companies to improve their performance. This paper explores the relationship between inter-firm collaborative R&D and firm performance in terms of both financial performance and technological innovation performance. Using panel data of more than 1,300 Chinese listed companies from 2007 to 2016 and using multiple regression analysis, we find that inter-firm collaborative R&D has a positive impact on technological innovation performance and potential market competitiveness, but a negative impact on profitability indicators. In addition, we further divided the companies into technology “leaders” and “followers,” and the results showed that the benefits of collaborative R&D are greater for the followers.
Journal: Emerging Markets Finance and Trade
Pages: 391-403
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2103402
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2103402
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# input file: MREE_A_2097066_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jiangyuan Wang
Author-X-Name-First: Jiangyuan
Author-X-Name-Last: Wang
Author-Name: Da Ke
Author-X-Name-First: Da
Author-X-Name-Last: Ke
Author-Name: Xingjian Lai
Author-X-Name-First: Xingjian
Author-X-Name-Last: Lai
Title: Tax Enforcement and Corporate Social Responsibility: Evidence from a Natural Experiment in China
Abstract: 
 This study investigates the effect of tax enforcement on corporate social responsibility (CSR) performance. By using the Third Phase of China’s Golden Tax Project as an exogenous shock to conduct a difference–in–differences estimation, we find that tax enforcement has a sizable positive effect on CSR performance, which is mainly achieved through improving the performance of corporations in fulfilling their responsibilities to their employees, suppliers, customer and consumer rights, and the environment. Our findings are robust to different specifications and endogeneity problems. One possible mechanism driving our results is that tax enforcement reduces corporate tax evasion, which further promotes CSR performance. Our results are particularly significant for firms in highly competitive industries or firms with high levels of business risk. Furthermore, the improved CSR performance influenced by tax enforcement ultimately increases the total factor productivity, market value, and shareholder returns of firms.
Journal: Emerging Markets Finance and Trade
Pages: 542-560
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2097066
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2097066
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# input file: MREE_A_2098012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Karmen Naidoo
Author-X-Name-First: Karmen
Author-X-Name-Last: Naidoo
Author-Name: Marta Bengoa
Author-X-Name-First: Marta
Author-X-Name-Last: Bengoa
Author-Name: Erika Kraemer-Mbula
Author-X-Name-First: Erika
Author-X-Name-Last: Kraemer-Mbula
Author-Name: Fiona Tregenna
Author-X-Name-First: Fiona
Author-X-Name-Last: Tregenna
Title: Firm Innovation and Employment in South Africa: Examining the Role of Export Participation and Innovation Novelty
Abstract: 
 This paper studies the effects of process innovation and product innovation on firm-level employment in South Africa. We contribute through two novel extensions, analyzing how export status and the degree of novelty of innovation affect the innovation-employment relationship. We find process innovation to be more employment generating than product innovation. Furthermore, both process and product innovations have larger positive effects on employment growth for exporting firms relative to non-exporting firms. Finally, firms that introduce radical innovations that are new to the market, experience a higher positive employment effect than firms that introduce innovations that are new to only the firm.
Journal: Emerging Markets Finance and Trade
Pages: 589-604
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2098012
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2098012
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# input file: MREE_A_2103405_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Pankaj Kumar Maskara
Author-X-Name-First: Pankaj Kumar
Author-X-Name-Last: Maskara
Author-Name: Emre Kuvvet
Author-X-Name-First: Emre
Author-X-Name-Last: Kuvvet
Title: To Fight or Not to Fight: A Study on the Likelihood of Investor-State Disputes between Two Countries
Abstract: 
 This study investigates the importance of the relative positioning of foreign investors’ country and that of the host country in investor-state disputes. We find that investors accustomed to strong institutions at home are more likely to file a dispute against a host state with poorer institutions. Investment disputes are less likely among politically aligned nations and when the host country is dependent on the investor’s country for its exports. Familiarity, facilitated by geographically proximity and language similarity is associated with higher instances of disputes. Our findings highlight the need for a nuanced approach to foreign investment policymaking and reforms that is responsive to the relative positioning of the parties involved.
Journal: Emerging Markets Finance and Trade
Pages: 420-435
Issue: 2
Volume: 59
Year: 2023
Month: 01
X-DOI: 10.1080/1540496X.2022.2103405
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2103405
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# input file: MREE_A_2119808_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kae-Yih Tzeng
Author-X-Name-First: Kae-Yih
Author-X-Name-Last: Tzeng
Title: Forecasting Volatilities of Asian Markets Using U.S. Macroeconomic Variables
Abstract: 
 Extensive in-sample and out-of-sample studies are conducted to investigate the predictive power of 20 US macroeconomic variables for 11 Asian stock market volatility using data from July 1997 to April 2019 and rigorous econometric exercises. The in-sample reports VIX, commercial paper-Treasury bill spreads, Purchasing Managers’ Index in the manufacturing sector, and divided-price ratio as powerful predictors. The out-of-sample reports VIX, divided-price ratio and Purchasing Managers’ Index in the manufacturing sector as powerful predictors. We find that combination forecasting methods enhance predictability of Asian stock market volatility when aggregating information in all macroeconomic variables.
Journal: Emerging Markets Finance and Trade
Pages: 676-687
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119808
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119808
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# input file: MREE_A_2119844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Leticia Castaño
Author-X-Name-First: Leticia
Author-X-Name-Last: Castaño
Author-Name: José E. Farinós
Author-X-Name-First: José E.
Author-X-Name-Last: Farinós
Author-Name: Ana M. Ibáñez
Author-X-Name-First: Ana M.
Author-X-Name-Last: Ibáñez
Title: From an Emerging to a Consolidated European REIT Market. The Case of the Underpricing of Spanish Direct Listing REITs
Abstract: 
 This study analyzes the underpricing in a sample of 41 Real Estate Investment Trusts (REIT) that went public in the Spanish market between 2013 and 2019. Results show a significant underpricing on the initial day even though none of the flotations were carried out through an Initial Public Offering but instead through a direct listing. This underpricing is not accounted for by theories on information asymmetry but by certain signaling theories related to capital structure, by investor sentiment and market peculiarities. This research provides additional insights for international investors in one of the largest European REIT markets.
Journal: Emerging Markets Finance and Trade
Pages: 921-936
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119844
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119844
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# input file: MREE_A_2108698_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jinqiang Xu
Author-X-Name-First: Jinqiang
Author-X-Name-Last: Xu
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Title: Does China’s Aid Promote Recipient Countries to be Embedded in Global Value Chains
Abstract: 
 Although aid is an important tool for facilitating the integration of developing countries into global value chains (GVCs), there is lack of empirical research to support this view. This study thus examines the impact of China’s aid on the development of GVCs in recipient countries. The conclusions of this study are as follows: (1) China’s aid can significantly promote recipient countries to transform into GVCs. (2) The improvement of infrastructure in recipient countries is the main channel through which China’s aid affects the degree of integration of recipient countries’ GVCs. (3) Aid type, technology distance, and trade complementarity have a certain heterogeneity in the current study’s research results. From the perspective of GVCs, this study proves the effectiveness of foreign aid in the economic development of recipient countries and helps expand the research boundary of foreign aid.
Journal: Emerging Markets Finance and Trade
Pages: 848-862
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2108698
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2108698
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# input file: MREE_A_2113332_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xu Li
Author-X-Name-First: Xu
Author-X-Name-Last: Li
Author-Name: Xiuling Li
Author-X-Name-First: Xiuling
Author-X-Name-Last: Li
Author-Name: Zhitao Wang
Author-X-Name-First: Zhitao
Author-X-Name-Last: Wang
Title: Can Mixed-Ownership Reform of State-Owned Enterprises Restrain Excessive Perquisite Consumption by Executives?
Abstract: 
 This article uses China’s listed SOEs from 2013–2020 as samples and conducts empirical analysis on the relationship between the mixed-ownership Mixed ownership reform and excessive perquisite consumption by executives. Findings of this study show that SOE mixed-ownership reforms can significantly restrains excessive perquisite consumption by executives. Nevertheless, simply changing the diversity of share ownership does not significantly affect excessive perquisite consumption. Testing mediation found that improving internal control quality is one channel for restraining excessive perquisite consumption by executives. According to the heterogeneity test, it is found that in the local SOEs group and the group of executives with less power, the mixed-ownership Mixed ownership reform has a more significant restraining effect on excessive perquisite consumption by executives. This study supplements the literature on the economic implications of mixed-ownership Mixed ownership reform, and it also provides a definite policy reference for Mixed ownership reform.
Journal: Emerging Markets Finance and Trade
Pages: 641-655
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2113332
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2113332
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# input file: MREE_A_2108318_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Liqi Yi
Author-X-Name-First: Liqi
Author-X-Name-Last: Yi
Author-Name: Tao Li
Author-X-Name-First: Tao
Author-X-Name-Last: Li
Author-Name: Xinyu Zhang
Author-X-Name-First: Xinyu
Author-X-Name-Last: Zhang
Author-Name: Qiyu Huang
Author-X-Name-First: Qiyu
Author-X-Name-Last: Huang
Author-Name: Yuze Ma
Author-X-Name-First: Yuze
Author-X-Name-Last: Ma
Author-Name: Peng Wang
Author-X-Name-First: Peng
Author-X-Name-Last: Wang
Title: CEO Power and Corporate Green Governance from the Perspective of Input-output Efficiency
Abstract: 
 Chief executive officer (CEO) plays a key role in corporate green governance, this paper innovatively studies the impact of CEO’s power on corporate green governance from the perspective of efficiency. In the first stage, BCC-DEA model is utilized to measure corporate green input-output efficiency, input redundancy and output deficiency. In the second stage, we examine the relation between the power of CEO and the green governance efficiency of Chinese listed companies using an unbalanced panel data for the seven years 2013–2019. Our results support the idea that powerful CEO is influential in mobilizing corporate resources and improving green governance efficiency, and this relationship is amplified when the CEO has high social responsibility awareness. The research results support the positive impact of powerful CEOs in corporate green governance, and also conducive to appeal board and management to strengthen CEOs’ awareness of social environmental protection.
Journal: Emerging Markets Finance and Trade
Pages: 836-847
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2108318
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2108318
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# input file: MREE_A_2119840_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guo Feng
Author-X-Name-First: Guo
Author-X-Name-Last: Feng
Author-Name: Xinjie Hu
Author-X-Name-First: Xinjie
Author-X-Name-Last: Hu
Author-Name: Kai Wang
Author-X-Name-First: Kai
Author-X-Name-Last: Wang
Author-Name: Shuo Yan
Author-X-Name-First: Shuo
Author-X-Name-Last: Yan
Title: Executives’ Foreign Work Experience and International Knowledge Spillovers: Evidence from China
Abstract: 
 This study conducts a quantitative study on international knowledge spillovers by executives with foreign work experiences at Chinese firms. We use companies’ foreign patent citations as a proxy for international knowledge inflows and match the data with companies’ executives with foreign work experience. The results show that executives with overseas work experience generate international knowledge inflows to the firm; this linkage is influenced by the innovation capacities of the outflow countries and specific positions of the firm’s executives. The knowledge inflows enhance firms’ innovation capacities, as evidenced by an increase in the number of patent applications and citations.
Journal: Emerging Markets Finance and Trade
Pages: 754-771
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119840
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119840
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# input file: MREE_A_2109960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Junho Hwang
Author-X-Name-First: Junho
Author-X-Name-Last: Hwang
Author-Name: Eunyoung Cho
Author-X-Name-First: Eunyoung
Author-X-Name-Last: Cho
Title: Pension Fund Trading Behavior and the Index Inclusion: Evidence from the Korean Stock Market
Abstract: 
 In this paper, we study the trading effect of Korean pension funds on price change around index inclusions. We find that pension funds strategically respond to index composition changes, and their demand for newly included stocks is high and persistent. The liquidity providers for the demand of pension funds are individual investors. We also find the significant and positive effect of pension funds’ trading on newly included stocks’ prices following the announcement date. On the other hand, we could not find evidence of a positively persistent relationship between the trades of different types of investors and newly added stock returns. Overall, our findings highlight that the trading of pension funds can be an important explanatory factor for the index inclusion effects.
Journal: Emerging Markets Finance and Trade
Pages: 605-622
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2109960
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2109960
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# input file: MREE_A_2119805_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaodong Liu
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Liu
Author-Name: Bing Han
Author-X-Name-First: Bing
Author-X-Name-Last: Han
Author-Name: Luanfeng Li
Author-X-Name-First: Luanfeng
Author-X-Name-Last: Li
Title: Impact of Investor Sentiment on Portfolio
Abstract: 
 This study integrated investor sentiment into the binary system of the mean-variance portfolio model, to clarify the method affecting asset pricing through investor sentiment. The theoretical deduction and empirical research demonstrated that, investor sentiment can promote the vertical movement of the minimum variance set. This can lead to effective portfolio drift and subsequent changes in the investor recognized required rate of return. These findings, verified through theoretical conclusions and empirical evidence, explain investors’ extrapolated expectations and their behavior in positive feedback trading.
Journal: Emerging Markets Finance and Trade
Pages: 880-894
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119805
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119805
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# input file: MREE_A_2106844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wei Cui
Author-X-Name-First: Wei
Author-X-Name-Last: Cui
Author-Name: Yongli Zhang
Author-X-Name-First: Yongli
Author-X-Name-Last: Zhang
Title: On the Monotonically Increasing Effect of Trust on Chinese Household Wealth
Abstract: 
 This paper studies the relationship between trust and household wealth. Using cross-sectional data from the China Family Panel Studies, we find a monotonically positive effect of trust on household net wealth while controlling for economic, demographic, geographic, and psychological factors and correcting for endogeneity problems. Furthermore, we find that highly trusting individuals are less likely to be cheated in our sample. These results are in contrast with existing studies that establish a hump-shaped curve between trust and individual net worth. We attribute the difference to culture. Through more thorough analysis, we find that the positive effect of trust on wealth is mediated through participation in financial markets.
Journal: Emerging Markets Finance and Trade
Pages: 895-905
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2106844
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2106844
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# input file: MREE_A_2106845_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pin Wang
Author-X-Name-First: Pin
Author-X-Name-Last: Wang
Author-Name: Linlin Xie
Author-X-Name-First: Linlin
Author-X-Name-Last: Xie
Author-Name: Gege Zhu
Author-X-Name-First: Gege
Author-X-Name-Last: Zhu
Author-Name: Yu Guan
Author-X-Name-First: Yu
Author-X-Name-Last: Guan
Title: Corporate Tax Integrity and Financial Constraints: Evidence from China
Abstract: 
 This study examines how corporate tax integrity affects financial constraints. In the past, scholars have captured corporate’s trust in an indirect way, and our paper fills this void. To capture the earned trust of enterprises in a more direct way, we use a firm’s tax integrity level as a proxy for its earned trust. Our results show that corporate tax integrity is negatively related to financial constraints. Further, we examine whether social trust in the regions where the corporate is located will affect the relationship between firm’s tax integrity and financial constraints, the result suggests that corporate tax integrity has a stronger effect on financing constraints of firms located in high social trust regions. Finally, we further find that firms’ business risk is a channel where corporate tax integrity affects financial constraints.
Journal: Emerging Markets Finance and Trade
Pages: 906-920
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2106845
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2106845
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# input file: MREE_A_2119809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jun Huang
Author-X-Name-First: Jun
Author-X-Name-Last: Huang
Author-Name: Feifei Han
Author-X-Name-First: Feifei
Author-X-Name-Last: Han
Author-Name: Yun Li
Author-X-Name-First: Yun
Author-X-Name-Last: Li
Title: Dose Regulatory Uncertainty Affect Corporate Financialization? Based on the Perspective of the Changes of CSRC’s Chairman
Abstract: 
 Based on the perspective of the changes of CSRC’s chairman, this paper investigates the relationship between regulatory uncertainty and corporate financialization. We find that the regulatory uncertainty positively affects corporate financialization through increasing firms’ financialization motivation. Specifically, both the decline of regulatory policy continuity and regulatory intensity caused by changes of CSRC’s chairman improve corporate financialization. The positive relationship between regulatory uncertainty and corporate financialization is more pronounced in non-state-owned firms and firms in non-strategic emerging industries. These findings have implications for listed firms and policy-makers to prevent firms transforming from substantial to fictitious.
Journal: Emerging Markets Finance and Trade
Pages: 698-721
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119809
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119809
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# input file: MREE_A_2119841_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chunyang Lu
Author-X-Name-First: Chunyang
Author-X-Name-Last: Lu
Title: Do Shareholder Networks Influence Insider Trading? Evidence from China
Abstract: 
 Motivated by the social network theories, we examine whether and how shareholder networks affect insider trading. We find that shareholder networks negatively affect insider trading based on a sample of Chinese listed firms from 2009 to 2019. Our results suggest that improving stock pricing efficiency and strengthening corporate governance are two channels through which shareholder networks negatively affect insider trading. Cross-sectional tests show that the relation is more pronounced in firms that have weaker legal environments and less investor attention. Furthermore, expanding shareholder networks attenuates the profitability of insider trading.
Journal: Emerging Markets Finance and Trade
Pages: 772-785
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119841
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119841
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# input file: MREE_A_2106847_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hong Hong
Author-X-Name-First: Hong
Author-X-Name-Last: Hong
Author-Name: Zhichao Wang
Author-X-Name-First: Zhichao
Author-X-Name-Last: Wang
Author-Name: Yi Xiong
Author-X-Name-First: Yi
Author-X-Name-Last: Xiong
Title: Is “Well-Paid Employment” Worth It? Evidence from Corporate Investment in China
Abstract: 
 This study investigates the effect of employee compensation on corporate investment decisions using a sample of Chinese listed companies during the period 2007–2019. We find that the improvement of employee compensation competitiveness reduces the overall investment level, but improves the investment efficiency, which supports the capital-skill complementarity theory and the liquidity constraint theory, rather than the displacement theory. We use the social insurance law as a quasi-natural experiment, and the adjustment of the personal income tax rate as an instrumental variable to relieve the endogeneity concern. In addition, cross-sectional analysis and mechanism analysis show that employee compensation competitiveness can crowd out enterprise investment and improve investment efficiency by increasing liquidity constraints, thereby improving the quality of human capital and increasing innovation. Overall, this study provides insights into how employee compensation reduces corporate investment and increases corporate investment efficiency in developing countries.
Journal: Emerging Markets Finance and Trade
Pages: 800-817
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2106847
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2106847
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# input file: MREE_A_2119802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lingyun Liu
Author-X-Name-First: Lingyun
Author-X-Name-Last: Liu
Author-Name: Ching-Ter Chang
Author-X-Name-First: Ching-Ter
Author-X-Name-Last: Chang
Author-Name: Hong Zhou
Author-X-Name-First: Hong
Author-X-Name-Last: Zhou
Author-Name: Binqing Xiao
Author-X-Name-First: Binqing
Author-X-Name-Last: Xiao
Author-Name: Xin Zhang
Author-X-Name-First: Xin
Author-X-Name-Last: Zhang
Title: The Relationship between Physical Financing and Formal Financing from the Perspective of Contractual Arrangements in Rural China
Abstract: 
 We examined the impact of contractual arrangements on the relationship between physical and formal financing under a theoretical analytical framework of “contractual arrangement-prestige channel-financing structure,” based on the survey data of rice growers in Jiangsu Province, China. We found that physical and formal financing have different relationships. Specifically, though they present a strong substitutability under oral contractual arrangements, they may complement each other under formal contractual arrangements through the prestige channel. Therefore, the government is suggested to give farmers preferential options by encouraging or supporting physical financing, rather than replacing or weakening it with government-led financial support policies.
Journal: Emerging Markets Finance and Trade
Pages: 656-675
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119802
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119802
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# input file: MREE_A_2108316_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guosheng He
Author-X-Name-First: Guosheng
Author-X-Name-Last: He
Author-Name: Jiang Hu
Author-X-Name-First: Jiang
Author-X-Name-Last: Hu
Author-Name: Yugang Yin
Author-X-Name-First: Yugang
Author-X-Name-Last: Yin
Author-Name: Yahui Liu
Author-X-Name-First: Yahui
Author-X-Name-Last: Liu
Title: Why Firms in Concentrated Industries are Overpriced in China?
Abstract: 
 Firms in concentrated industries (FCIs) might not be as valuable as they priced. Using a product-based monopoly measure for individual firms, we find that FCIs are prone to being overpriced in China stock market. This overpricing cannot be dismissed by varying proxies for arbitrage constraints and risks. Alternatively, it can be attributed to immoderate optimism on FCIs. In line with the optimism explanation, we find that FCIs suffer more serious fundamental declines in high economic policy uncertainty periods and that, the overpricing is corrected during earning announcements. These findings are robust across alternative model specifications and variable constructions.
Journal: Emerging Markets Finance and Trade
Pages: 818-835
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2108316
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2108316
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# input file: MREE_A_2119842_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lu-Xuan Sun
Author-X-Name-First: Lu-Xuan
Author-X-Name-Last: Sun
Author-Name: Miao Wang
Author-X-Name-First: Miao
Author-X-Name-Last: Wang
Author-Name: Yin-Shuang Xia
Author-X-Name-First: Yin-Shuang
Author-X-Name-Last: Xia
Author-Name: Chao Feng
Author-X-Name-First: Chao
Author-X-Name-Last: Feng
Title: The Realistic Way to the Decoupling of Carbon Dioxide Emissions from Economic Growth in China’s Service Sector
Abstract: 
 Service sector development in China has increased the demand for energy and, potentially, carbon dioxide (CO2) emissions. However, there are no studies on decoupling and its determinants in China’s service sector from the point of view of technology and efficiency. A decoupling indicator based on the extended Kaya identity and production decomposition analysis was innovatively adopted to examine the relationship between service CO2 emissions and economic growth. The results show that: (1) the decoupling state of China’s service sector fluctuated from 2000 to 2008, was stable from 2008 to 2012 in the expansive coupling state, and finally stepped onto a stable state of weak decoupling from 2012 to 2019; and (2) during the sample period, the rapid expansion of the economy scale was the primary inhibiting factor for decoupling, while the decline in potential energy intensity and the progress in energy-saving technology effect was the key promoters. Furthermore, scenario analysis indicates that the possibility of decoupling energy growth from service CO2 emissions significantly relies on technological progress and efficiency improvements. China should focus on technology and efficiency, reduce energy intensity, and strengthen provincial cooperation to reduce service CO2 emissions.
Journal: Emerging Markets Finance and Trade
Pages: 786-799
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119842
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119842
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# input file: MREE_A_2113331_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zunguo Hu
Author-X-Name-First: Zunguo
Author-X-Name-Last: Hu
Author-Name: Lijie Deng
Author-X-Name-First: Lijie
Author-X-Name-Last: Deng
Author-Name: Jun Mao
Author-X-Name-First: Jun
Author-X-Name-Last: Mao
Author-Name: Jiahao Xie
Author-X-Name-First: Jiahao
Author-X-Name-Last: Xie
Title: Heterogeneity in the Effect of Environmental Protection Expenditure in China: Causal Inference from Machine Learning
Abstract: 
 The amount of fiscal expenditure on environmental governance in various regions of China in recent years has increased greatly, but its effect on environmental protection is often controversial in existing research. The conflicting finding is largely due to endogenous problems or selection bias. Generally, the cities with high smog pollution have been encountering environmental protection expenditure (EPE) shocks more greatly since 2011. To estimate the causal effects of EPE shocks more accurately, this research uses new machine learning to the estimate heterogeneous treatment effect of the EPE shock on urban air pollution from 216 cities in China, from 2011 to 2018. Empirical results from causal forests show the following. First, the positive EPE shock has contributed to China’s short-term improvements in air pollution. Long-term causality has not been confirmed statistically, though there is a strong correlation between an increase in EPE and a decrease in PM2.5. Second, a positive EPE shock leads to deterioration of smog in low-income and above-medium smog areas in the long term. Third, the positive EPE shock is conducive to the long-term improvement of air quality in moderately industrialized areas, but it does not lead to the long-term improvement of urban air pollution with a high or low degree of industrialization. Similarly, an EPE shock in cities with medium population density improves air quality for a long time, but runs the opposite in cities with high or low population density.
Journal: Emerging Markets Finance and Trade
Pages: 623-640
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2113331
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2113331
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# input file: MREE_A_2108699_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: C. T. Vidya
Author-X-Name-First: C. T.
Author-X-Name-Last: Vidya
Author-Name: Srividhya Mummidi
Author-X-Name-First: Srividhya
Author-X-Name-Last: Mummidi
Author-Name: Bandi Adarsh
Author-X-Name-First: Bandi
Author-X-Name-Last: Adarsh
Title: Effect of the COVID-19 Pandemic on World Trade Networks and Exposure to Shocks: A Cross-Country Examination
Abstract: 
 This study uses trade network analysis and forward shock propagation models to analyze the structure and positioning of international trade networks and their exposure to shocks before and during the COVID-19 pandemic. We include aggregate and sector-wise merchandise exports for the top 20 countries. The results reveal no discernible changes in the overall trade connectivity and intensity. Consumer goods, food and beverages, and industrial supplies indicate a high trade density. However, capital goods, fuels, and lubricants indicate a massive decline. Accordingly, countries should initiate and coordinate timely sector-wise policies to achieve resilience to shocks. Better trade facilitation measures and reduction in trade restrictions are essential.
Journal: Emerging Markets Finance and Trade
Pages: 863-879
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2108699
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2108699
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# input file: MREE_A_2119812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jiaomei Tang
Author-X-Name-First: Jiaomei
Author-X-Name-Last: Tang
Author-Name: Yayun Ren
Author-X-Name-First: Yayun
Author-X-Name-Last: Ren
Author-Name: Yongliang Zhao
Author-X-Name-First: Yongliang
Author-X-Name-Last: Zhao
Author-Name: Xiaotong Zhang
Author-X-Name-First: Xiaotong
Author-X-Name-Last: Zhang
Title: Analysis on the Motivation and Welfare of International Conflicts in Trade Dependence
Abstract: 
 This article explores the trade dependency of international conflict and post-conflict welfare changes in third-party nations based on the likelihood of international conflict breakout and its magnitude using international conflict and bilateral trade data for 174 countries. In our research, we discovered that trade dependency has an inverted U-shaped connection with the likely and size of international conflict, whereas trade asymmetry has a non-linear association with the likelihood and magnitude of international conflict. Further investigation finds that the impact of trade dependency on international conflict is stronger in strategic sectors than in other industries, and that trade dependence asymmetry in strategic industries has no substantial impact on international conflict. In the short and long run, trade in third-party nations following international conflict has substitution effect on conflict countries. The conclusions of this article offer fresh perspectives on how to enhance economic and trade cooperation while also settling international issues.
Journal: Emerging Markets Finance and Trade
Pages: 737-753
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119812
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119812
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# input file: MREE_A_2119810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guohui Chen
Author-X-Name-First: Guohui
Author-X-Name-Last: Chen
Author-Name: Jie Zhang
Author-X-Name-First: Jie
Author-X-Name-Last: Zhang
Title: Regional Inequality in ASEAN Countries: Evidence from an Outer Space Perspective
Abstract: 
 The ASEAN countries are in a golden stage of development, although the uneven regional development remains a prominent challenge to integrated growth. The study tries to investigate regional inequality in ASEAN countries from an outer space perspective. It first estimates the relationship between nighttime light intensity and GDP per capita for the 10 ASEAN countries at the national level, based on which it predicts regional incomes at the subnational level to assess regional inequality and explores the affecting factors. The results indicate that regional inequality in the ASEAN region and economic development present an inverted N-shaped relationship. The overall inequality of the region is largely attributed to the uneven development between countries. It is also found that transportation, urbanization, openness, mineral rents, and tax revenue are all significantly relevant to regional inequality.
Journal: Emerging Markets Finance and Trade
Pages: 722-736
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119810
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119810
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# input file: MREE_A_2119845_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhongju Liao
Author-X-Name-First: Zhongju
Author-X-Name-Last: Liao
Author-Name: Xiang Zhu
Author-X-Name-First: Xiang
Author-X-Name-Last: Zhu
Title: The Role of Different Fiscal Policies in Inducing Environmental Innovation and Enhancing Firm Competitiveness
Abstract: 
 This study examines the relationship between three fiscal policy instruments, environmental innovation, and firms’ competitiveness. We select panel data of firms listed on heavy energy consumption in China’s manufacturing sector as the sample. The results show that environmental taxes have positive impacts on firms’ incremental environmental innovation but negative impacts on firms’ radical environmental innovation, while tax incentives have a positive impact on firms’ radical environmental innovation and environmental subsidies have negative impacts on firms’ incremental environmental innovation. In addition, only radical environmental innovations have a positive impact on firm competitiveness.
Journal: Emerging Markets Finance and Trade
Pages: 688-697
Issue: 3
Volume: 59
Year: 2023
Month: 02
X-DOI: 10.1080/1540496X.2022.2119845
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119845
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# input file: MREE_A_2127313_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zuguang Wu
Author-X-Name-First: Zuguang
Author-X-Name-Last: Wu
Author-Name: Xiaoxuan Hou
Author-X-Name-First: Xiaoxuan
Author-X-Name-Last: Hou
Author-Name: Xianglong Meng
Author-X-Name-First: Xianglong
Author-X-Name-Last: Meng
Author-Name: Meng Wang
Author-X-Name-First: Meng
Author-X-Name-Last: Wang
Title: Mixed Ownership Reform, Government Intervention, and Earnings Quality: Empirical Evidence from Pilot Enterprises in China
Abstract: 
 Using a sample of mixed ownership pilot enterprises in China from 2014 to 2018, we find that mixed ownership reform (MOR) can improve earnings quality. Thus, improving earnings quality (reducing market friction) is a specific mechanism through which MOR affects economic growth. We also find that the effect of government intervention on earnings quality varies across regions. In high-marketization regions, government intervention cater to the market and it has little or marginal effect on the effect of MOR on earnings quality. However, in low-marketization regions, government weakens the effect of MOR on earnings quality. MOR and reduced government intervention have complementary effects on earnings quality. MOR is not a one-size-fits-all formula, and it should be tailor-made according to local conditions (such as marketization levels).
Journal: Emerging Markets Finance and Trade
Pages: 1129-1139
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2127313
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2127313
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# input file: MREE_A_2128750_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yewon Kim
Author-X-Name-First: Yewon
Author-X-Name-Last: Kim
Author-Name: Sera Choi
Author-X-Name-First: Sera
Author-X-Name-Last: Choi
Author-Name: Bum-Joon Kim
Author-X-Name-First: Bum-Joon
Author-X-Name-Last: Kim
Title: How Does a Firm’s Earnings Response Coefficient Vary with Managerial Ability? Evidence from Korea
Abstract: 
 This study investigates managerial ability’s effect on firms’ earnings response coefficients (ERCs). We find that ERC increases with managerial ability, suggesting that investors more favorably perceive earnings from competent managers. Further, managerial ability influences ERC via the information environment; the influence is positive only for firms with better information environments. Meanwhile, since foreign investors have incentive to improve the information environment to overcome their informational asymmetry, the positive managerial ability-ERC association is more pronounced when firms have higher foreign ownership. These results indicate that managerial ability is an important determinant of ERC and that the information environment explains their relationship.
Journal: Emerging Markets Finance and Trade
Pages: 1104-1114
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2128750
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2128750
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# input file: MREE_A_2128754_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhen Qi
Author-X-Name-First: Zhen
Author-X-Name-Last: Qi
Author-Name: Meili Liao
Author-X-Name-First: Meili
Author-X-Name-Last: Liao
Author-Name: Chien Chi Chu
Author-X-Name-First: Chien Chi
Author-X-Name-Last: Chu
Title: The Effect of Corporate Site Visits on Senior Executive Forced Turnover
Abstract: 
 Using 2012–2019 Chinese stock market data, this study examined the impact of corporate site visits (CSVs) on senior executive forced turnover. We found that the number of CSVs is negatively associated with the probability of senior executive forced turnover. For more investor participants and more questions asked during CSVs, senior executive forced turnovers are less likely to occur. Institutional investors have a more significant impact on senior executive forced turnover. This effect is dominated by the non-state-owned enterprises or companies with poor performance, high asset tangibility, and weak insider power. The results can guide policymakers who regulate investor relations and informal corporate governance.
Journal: Emerging Markets Finance and Trade
Pages: 1025-1041
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2128754
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2128754
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# input file: MREE_A_2128753_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jianling Xu
Author-X-Name-First: Jianling
Author-X-Name-Last: Xu
Author-Name: Jiao Hong
Author-X-Name-First: Jiao
Author-X-Name-Last: Hong
Author-Name: Zhiyuan Zhou
Author-X-Name-First: Zhiyuan
Author-X-Name-Last: Zhou
Title: Local Attention to Environment and Green Innovation: Evidence from Listed Manufacturing Companies in 120 Cities in China
Abstract: 
 This paper conducts a textual analysis of the reports on the work of local governments to measure local governments’ attention to environmental governance and study the impact of these concerns on corporate green innovation. We find evidence that local governments’ attention to the environment will significantly improve corporate green innovation, and the government can promote the green technology innovation of enterprises by providing support and strengthening supervision. Further research shows that the uniformity between the central and local governments and environmental attention pressure from higher-level government reinforce the influence of local environmental attention on corporate green innovation.
Journal: Emerging Markets Finance and Trade
Pages: 1062-1073
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2128753
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2128753
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# input file: MREE_A_2120766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zisong Sun
Author-X-Name-First: Zisong
Author-X-Name-Last: Sun
Author-Name: Changshuai Cao
Author-X-Name-First: Changshuai
Author-X-Name-Last: Cao
Author-Name: Zhengxia He
Author-X-Name-First: Zhengxia
Author-X-Name-Last: He
Author-Name: Chao Feng
Author-X-Name-First: Chao
Author-X-Name-Last: Feng
Title: Examining the Coupling Coordination Relationship between Digital Inclusive Finance and Technological Innovation from a Spatial Spillover Perspective: Evidence from China
Abstract: 
 For this study, we focused on the synergistic development mechanism between digital inclusive finance (DIF) and technological innovation (TI); we also investigated the center-of-gravity shift model, the coupling coordination degree model, and the spatial simultaneous equation model to empirically examine the coupling coordination relationship and spatial interaction effects between them. The results revealed the following. First, the development hub of DIF points to a trend of moving toward the central region and then gradually falling back to the southeast coastal region, while the development hub of TI exhibits an overall locational characteristic of moving in the southeast coastal direction. The coupled and coordinated development of the two regions has clear temporal and spatial features: Over time, the growth rate of the coupled and coordinated degree changes from fast to slow, the growth rate gradually shrinks, and the coupled and coordinated development of the eastern and southern regions is better than that of the western and northern regions. Spatial econometric analysis indicates that DIF and TI form inter-circle diffusion. Spillover and proximity effects exist between the two. Further decomposition of the impacts implies that the spillover effect is much greater than the marginal effect.
Journal: Emerging Markets Finance and Trade
Pages: 1219-1231
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2120766
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2120766
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# input file: MREE_A_2119843_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qianqian Li
Author-X-Name-First: Qianqian
Author-X-Name-Last: Li
Author-Name: Zhengtang Zhao
Author-X-Name-First: Zhengtang
Author-X-Name-Last: Zhao
Author-Name: Tingting Chen
Author-X-Name-First: Tingting
Author-X-Name-Last: Chen
Title: Social Insurance Contribution Rate Reduction Policy and Enterprise Innovation: Evidence from China
Abstract: 
 Taking the enforcement of the Notice on the Phased Reduction of Social Insurance Contribution Rates as a quasi-natural experiment, the impact of the reduction policy of social insurance contribution rates on enterprise innovation was examined with a difference-in-difference (DID) model based on the data of A-share listed companies from 2007 to 2018 in China. Our study revealed that the implementation of the policy significantly boosted enterprise innovation. In addition, tests of potential mechanisms indicated that implementing the policy greatly reduced the actual social insurance contribution of enterprises and released more funds, thus promoting the innovation of enterprises. This study of the relationship between social insurance contribution rates and enterprise innovation proved that further implementation of policies to reduce taxes and fees could alleviate burdens on enterprises and stimulate innovation.
Journal: Emerging Markets Finance and Trade
Pages: 1012-1024
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2119843
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119843
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# input file: MREE_A_2127315_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tongyu Wang
Author-X-Name-First: Tongyu
Author-X-Name-Last: Wang
Author-Name: Shangmei Zhao
Author-X-Name-First: Shangmei
Author-X-Name-Last: Zhao
Author-Name: Wentao Wang
Author-X-Name-First: Wentao
Author-X-Name-Last: Wang
Author-Name: Haijun Yang
Author-X-Name-First: Haijun
Author-X-Name-Last: Yang
Title: How Does Exogenous Shock Change the Structure of Interbank Network?: Evidence from China under COVID-19
Abstract: 
 This paper utilizes China’s interbank deposit system under COVID-19 to examine how interbank network changes with considerable uncertainty surrounding exogenous shock. We investigate the interbank network in China by specifying the core-periphery pattern to disentangle the network development and the pandemic onset. In order to model the interbank deposit system, maximum entropy and partition-based approach are employed to estimate the bilateral exposures for banks and identify the network structure, respectively. We find that the four largest global systemically important banks (G-SIBs) in the world play a critical role in bearing interbank burden under this crucial period by increasing interbank assets and decreasing interbank liability. By comparing the situations before and after the outbreak of the pandemic in stress-testing, the empirical evidence shows that the number of cores and capital of them is declined in 2020Q2; however, the topological structure of the network is increasingly similar to a typical core-periphery pattern, and the changed interbank network can better absorb the loss and interrupt the contagion of systemic risk.
Journal: Emerging Markets Finance and Trade
Pages: 937-958
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2127315
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2127315
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# input file: MREE_A_2123219_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chao Deng
Author-X-Name-First: Chao
Author-X-Name-Last: Deng
Author-Name: Congcong Liang
Author-X-Name-First: Congcong
Author-X-Name-Last: Liang
Author-Name: Yun Hong
Author-X-Name-First: Yun
Author-X-Name-Last: Hong
Author-Name: Yanhui Jiang
Author-X-Name-First: Yanhui
Author-X-Name-Last: Jiang
Title: CCTV News’ Asymmetric Impact on the Chinese Stock Market during COVID-19: A Combination Analysis Based on the SVAR and NARDL Models
Abstract: 
 This study uses the structural vector autoregression (SVAR) and nonlinear autoregressive distributed lag (NARDL) models to examine the long- and short-term asymmetric effects of structural state media shocks on the Chinese stock market. The findings, obtained using Xinwen Lianbo as a stand-in for state media, indicate that attention shocks on Xinwen Lianbo have an asymmetrical impact on the aggregate stock market returns in both the short and long run. The sectoral and overall stock market results are similar, with CCTV having a stronger impact in the first half of the pandemic. Employing other COVID-19 news measurements, we validated our primary findings and discovered that the price function differs among various state media’s attention to COVID-19.
Journal: Emerging Markets Finance and Trade
Pages: 1232-1246
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2123219
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2123219
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# input file: MREE_A_2089018_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chang Liu
Author-X-Name-First: Chang
Author-X-Name-Last: Liu
Author-Name: Yinglan Zhao
Author-X-Name-First: Yinglan
Author-X-Name-Last: Zhao
Title: Analysis of the non-linear relationship between Interest Rate Distortions in China’s Shadow Banking System and short-term Capital Flows
Abstract: 
 Using semiparametric generalized additive models, we studied how the market-based interest rates in China’s shadow banking system and interest rate distortion affect the country’s short-term capital flows. We used big data of shadow banking products to calculate the shadow banking interest rate and the interest rate distortion index. We improved the indirect measurement method for capital flows and used the bounds testing cointegration approach to measure China’s monthly short-term capital flows. With the calculated data, we estimated the nonlinear impact of shadow banking interest rate spreads and interest rate distortion on short-term capital flows. Results indicate that a higher shadow banking interest rate spread creates greater short-term capital inflows and the degree of interest rate distortion has a non-linear inverted U-shaped effect on short-term capital flows. Thus, the Chinese government should proceed with interest rate liberalization to eliminate the current “dual-track interest rate system” and strengthen the monitoring of cross-border capital flows so as to reduce the risks of abnormal short-term capital flows.
Journal: Emerging Markets Finance and Trade
Pages: 1042-1061
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2089018
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2089018
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# input file: MREE_A_2127314_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Donghui Shi
Author-X-Name-First: Donghui
Author-X-Name-Last: Shi
Author-Name: Hua Zhuang
Author-X-Name-First: Hua
Author-X-Name-Last: Zhuang
Author-Name: Ang Yang
Author-X-Name-First: Ang
Author-X-Name-Last: Yang
Title: Innovation, Profit-Seeking, and the Formation of High Value-Added Companies: An Empirical Study on China’s Listed Manufacturing Companies
Abstract: 
 Increasing the value-added ratios (VARs) of manufacturing companies or industries is an important proposition of many governments’ industrial upgrading strategies. Since the VAR has never been the goal of profit-seeking enterprises, whether innovation, which plays an important role in achieving profitability objectives, also has an impact over the VAR, has become a noteworthy issue. Using data from China’s listed manufacturing companies from 2012 to 2019, we conducted an empirical study to analyze the impact of R&D intensities on the VARs, which was further explained under the policy of additional tax deductions for R&D expenses. We found that there is a time lag in the impact of a company’s R&D activities on its VAR: Only when its current-year R&D intensity has been changed for over 1 year, can it incur a significant positive impact on the corporate VAR. And this positive impact grows over time. Moreover, such impact is independent of profitability and thus, although R&D is a profit-motivated activity, increasing the R&D intensity could indeed increase a company’s VAR, and facilitate the formation of a high value-added company.
Journal: Emerging Markets Finance and Trade
Pages: 1262-1280
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2127314
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2127314
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# input file: MREE_A_2119801_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Panpan Lv
Author-X-Name-First: Panpan
Author-X-Name-Last: Lv
Author-Name: Hu Xiong
Author-X-Name-First: Hu
Author-X-Name-Last: Xiong
Title: Financial Openness and Firm Innovation: Evidence from China
Abstract: 
 This paper investigates whether and how financial openness affects firm innovation. Based on the data of Chinese listed companies and provincial panel data from 2007 to 2019, we find that there is a positive relationship between financial openness and firm innovation, and this effect is more pronounced in state-owned enterprises (SOEs) or firms with concentrated-ownership. In addition, we identify that financial openness can promote firm innovation through easing financial constraints and improving absorptive capacity.
Journal: Emerging Markets Finance and Trade
Pages: 998-1011
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2119801
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119801
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# input file: MREE_A_2127316_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jingru Hou
Author-X-Name-First: Jingru
Author-X-Name-Last: Hou
Author-Name: Xin Shi
Author-X-Name-First: Xin
Author-X-Name-Last: Shi
Author-Name: Ran Tao
Author-X-Name-First: Ran
Author-X-Name-Last: Tao
Title: Exchange Comment Letters and Corporate Social Responsibility: Evidence from China
Abstract: 
 How does regulatory oversight shape corporate social responsibility (CSR)? Using a sample of Chinese A-share listed firms spanning 2014 to 2019, we investigate the oversight role of stock exchanges by examining the effects of comment letters (CLs) on CSR. We find that receiving CLs positively correlates with the increment of CSR performance. Both investors’ attention and state ownership moderate this relation positively. Additionally, the positive relation is more pronounced in the subsample in a weak legal environment. Taken together, we provide causal evidence that supports the oversight role of CLs and the impression management theory of CSR.
Journal: Emerging Markets Finance and Trade
Pages: 1140-1160
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2127316
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2127316
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# input file: MREE_A_2127312_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: An Pan
Author-X-Name-First: An
Author-X-Name-Last: Pan
Author-Name: Wenna Zhang
Author-X-Name-First: Wenna
Author-X-Name-Last: Zhang
Author-Name: Zhangqi Zhong
Author-X-Name-First: Zhangqi
Author-X-Name-Last: Zhong
Title: How Does FDI Affect Cities’ Low-Carbon Innovation? The Moderation Effect of Smart City Development
Abstract: 
 Analyzing data from 285 Chinese cities for the period 2005–2016, we examined the impact of foreign direct investment (FDI) on low-carbon innovation, and explored smart city development’s (SCD) moderating role. We found that FDI had a significant positive effect, while SCD played a positive moderating role. Specifically, SCD’s moderating role occurred through three channels: information and communication technology, smart finance, and smart government. Moreover, SCD may maximize innovation advantages and facilitate low-carbon innovation resource flow into more efficient departments. Finally, FDI may improve low-carbon innovation, while SCD may maximize the spillover effect of FDI on low-carbon innovation.
Journal: Emerging Markets Finance and Trade
Pages: 1247-1261
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2127312
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2127312
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# input file: MREE_A_2138706_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jun Huang
Author-X-Name-First: Jun
Author-X-Name-Last: Huang
Author-Name: Yun Li
Author-X-Name-First: Yun
Author-X-Name-Last: Li
Author-Name: Ming Dai
Author-X-Name-First: Ming
Author-X-Name-Last: Dai
Author-Name: Feifei Han
Author-X-Name-First: Feifei
Author-X-Name-Last: Han
Title: Risk Perception and Audit Fees: How Do Auditors Respond When Working with Hometown CEOs?
Abstract: 
 This study examined how auditors respond to hometown CEOs using social identity theory. We found that hometown CEOs negatively affect audit fees through the reputation concerns and information advantages mechanisms, reflected as lower financial information and litigation risks in their firms. Moreover, this negative relationship is more pronounced among firms immersed in a stronger clan culture, non-state-owned firms, and those whose CEOs enjoy longer tenures, while it is less pronounced in firms whose CEOs possess foreign residency rights. These findings have implications for firms’ executive employment, auditors’ pricing decisions, and regulators’ policy-making decisions.
Journal: Emerging Markets Finance and Trade
Pages: 1179-1204
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2138706
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2138706
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# input file: MREE_A_2106846_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ling-Yun He
Author-X-Name-First: Ling-Yun
Author-X-Name-Last: He
Author-Name: Geng Huang
Author-X-Name-First: Geng
Author-X-Name-Last: Huang
Title: Export Liberalization and Firm’s Energy Efficiency: Theory and Evidence
Abstract: 
 Since international trade is developing rapidly and the world is facing serious problem of energy shortages, this paper focuses on analyzing if export liberalization can help to improve the country’s energy efficiency. In this paper, we establish the theoretical trade model at micro-level and study how export liberalization affects energy use performance of the firm. Then, we employ data of Chinese exporters to conduct empirical analysis. Our results suggest export liberalization can improve energy use performance of the firm, which shows that export liberalization has positive effects on firm’s energy use performance. The results of mechanism test suggest that export liberalization can improve firms’ productivity and increase firms’ innovation ability, which can further help to increase firms’ energy use efficiency. Altogether, this paper gives evidence on the effects of export liberalization on energy use performance, which reveals the importance of trade liberalization in solving the global energy problems.
Journal: Emerging Markets Finance and Trade
Pages: 977-997
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2106846
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2106846
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# input file: MREE_A_2119811_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mingbo Zheng
Author-X-Name-First: Mingbo
Author-X-Name-Last: Zheng
Author-Name: Qiang Du
Author-X-Name-First: Qiang
Author-X-Name-Last: Du
Author-Name: Quan-Jing Wang
Author-X-Name-First: Quan-Jing
Author-X-Name-Last: Wang
Title: Nexus between Green Finance and Renewable Energy Development in China
Abstract: 
 Renewable energy development is essential to energy structure transition and environmental emission reduction, and promoting renewable energy development via green financial instruments has been an effective approach to attain the objective of carbon neutrality in China. This research explores the bi-directional cointegration relationship between green finance and renewable energy development by adopting provincial data of China from 2005 to 2018. Results indicate a long-run bi-directional comovement exist between green finance and renewable energy development. This cointegration relationship appears in the eastern and central provinces of China, but is absent for western provinces. The pooled mean group estimators show that green finance cannot promote renewable energy development in the short run, whereas it does so in the long run for both the eastern and central provinces. Our research presents implications for emerging economies to initiate and design green financial instruments and renewable energy measures.
Journal: Emerging Markets Finance and Trade
Pages: 1205-1218
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2119811
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119811
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# input file: MREE_A_2128752_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Longfang Chen
Author-X-Name-First: Longfang
Author-X-Name-Last: Chen
Author-Name: Hao Wu
Author-X-Name-First: Hao
Author-X-Name-Last: Wu
Title: Measuring the Level of Regional Economic Synergistic Development and Its Driving Factors
Abstract: 
 Using the case of 21 cities of Guangdong Province, China, this study uses the Harken model to evaluate the level of regional economic synergistic development from 2000 to 2019 and three economic synergistic development drivers, including comparative advantage, economic linkage, and industry. The study finds that the regional industrial division of labor is the main regional economic synergistic development driver in Guangdong. It also finds that the overall level of synergistic development has evolved from an intermediate diffusion stage to an advanced, symbiotic one. However, apparent differences exist in the gradient of the East Guangdong – West Guangdong – North Guangdong – Pearl River Delta. The results of this study and their implications are also explained.
Journal: Emerging Markets Finance and Trade
Pages: 1161-1178
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2128752
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2128752
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# input file: MREE_A_2128667_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoyu Wang
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Wang
Author-Name: Qi Gao
Author-X-Name-First: Qi
Author-X-Name-Last: Gao
Author-Name: Xingtong Fang
Author-X-Name-First: Xingtong
Author-X-Name-Last: Fang
Author-Name: Lili Hao
Author-X-Name-First: Lili
Author-X-Name-Last: Hao
Title: Spillover Effects of the Sci-Tech Innovation Board Registration System on the Quality of Information Disclosure
Abstract: 
 This study investigates whether the Sci-Tech Innovation Board registration system has spillover effects on companies listed on other boards. The results show that the registration system significantly improves the quality of accounting information disclosure by the companies on the Main and SME Boards that remain under the approval system. The spillover effects are more significant for companies that are non-state-owned, audited by non-Big 4 firms, or in the same industries as the companies on the Sci-Tech Innovation Board compared with other companies. The findings provide evidence to improve the subsequent registration system reforms and the level of information disclosure quality.
Journal: Emerging Markets Finance and Trade
Pages: 959-976
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2128667
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2128667
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# input file: MREE_A_2128751_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chia-Lin Chang
Author-X-Name-First: Chia-Lin
Author-X-Name-Last: Chang
Author-Name: Yu-Hui Wang
Author-X-Name-First: Yu-Hui
Author-X-Name-Last: Wang
Author-Name: Kuo-I Chang
Author-X-Name-First: Kuo-I
Author-X-Name-Last: Chang
Title: Revival Duration and Determinants of ASEAN Machinery Trade During COVID-19 Pandemic and the Global Financial Crisis
Abstract: 
 This study performs survival analysis to evaluate duration of revived and new machinery import and the hazard ratios (HRs) of covariates related to the global financial crisis (GFC) and COVID-19 pandemic in the Association of Southeast Asian Nations (ASEAN). The results indicate that large tariff margins decreased the possibility of disruption (HR: 0.8024) to Japanese import from ASEAN countries after revived during the COVID-19 pandemic and increased the possibility of disruption (HR: 1.0338) to Chinese import from ASEAN countries of new import during the GFC.
Journal: Emerging Markets Finance and Trade
Pages: 1089-1103
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2128751
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2128751
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# input file: MREE_A_2129965_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yongbin Cai
Author-X-Name-First: Yongbin
Author-X-Name-Last: Cai
Author-Name: Mengzhe Li
Author-X-Name-First: Mengzhe
Author-X-Name-Last: Li
Author-Name: Siyuan Guo
Author-X-Name-First: Siyuan
Author-X-Name-Last: Guo
Author-Name: Xingheng Nan
Author-X-Name-First: Xingheng
Author-X-Name-Last: Nan
Title: Former CEO Director and Audit Fees
Abstract: 
 This study investigates the relationship between former chief executive officer (CEO) directors and audit pricing. We find that the former CEO directors negatively impact the company’s audit fees. The results do not change after conducting a series of robustness tests. Former CEO directors reduce the company’s operating risk, improve the company’s earnings quality, and reduce the company’s audit fees. Meanwhile, they are more effective at monitoring in companies with less analyst following, lower proportion of female directors, and non-family firms, thus reducing audit fees. Further evidence shows that larger auditors are more likely to reduce audit fees for their clients that have former CEOs retained on the board of directors.
Journal: Emerging Markets Finance and Trade
Pages: 1074-1088
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2129965
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2129965
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# input file: MREE_A_2138704_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chun Tang
Author-X-Name-First: Chun
Author-X-Name-Last: Tang
Author-Name: Xiaoxing Liu
Author-X-Name-First: Xiaoxing
Author-X-Name-Last: Liu
Author-Name: Guangyi Yang
Author-X-Name-First: Guangyi
Author-X-Name-Last: Yang
Title: How Does Carbon Market Affect Corporate Risk-Taking? — Evidence from China
Abstract: 
 China’s newly launched national carbon emission trading market is attracting attention from all parties. Taking the corporate behavior as an entry point, this paper studies the impact of this carbon market on corporate risk-taking by constructing the difference-in-differences (DID) model. We find that the running of the national carbon market significantly increases participating companies’ risk-taking. Meanwhile, this positive effect is more pronounced for state-owned enterprises and those with longer operating. Further research examines the moderating effects of the constraint and incentive channels. The results indicate that, when participating in the national carbon market, firms with lower financing constraints or stronger internal incentives are more willing to take risks.
Journal: Emerging Markets Finance and Trade
Pages: 1115-1128
Issue: 4
Volume: 59
Year: 2023
Month: 03
X-DOI: 10.1080/1540496X.2022.2138704
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2138704
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# input file: MREE_A_2136942_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tugay Karadag
Author-X-Name-First: Tugay
Author-X-Name-Last: Karadag
Author-Name: Gulhayat Golbasi Simsek
Author-X-Name-First: Gulhayat
Author-X-Name-Last: Golbasi Simsek
Title: A Time-Varying Copula Approach to Investigate the Dependence Structures of BRICS Stock Markets Before and After COVID-19
Abstract: 
 In this study, changes in the dependence structures of BRICS countries’ stock markets before and after the World Health Organization’s Covid-19 emergency declaration were examined using the time-varying (TV) copula method. The return series of the stock markets were divided into two periods, namely before COVID-19 (BC) and after COVID-19 (AC). The novel time-varying flexy copula (TVFC) proposed in the study provides a more flexible structure and produces better results than the TV single copula and the TV optimal copula in comparative analyses. In addition, risk spillovers between market indices were explored using the CoVaR-Copula method. According to the results, the interdependence coefficients of all countries were higher in the AC period than in the BC period with the exception of the China – South Africa pair. Moreover, the dependence coefficient of India with other BRICS countries was quite high compared to the other pairs. Based on the risk spillover results, it was concluded that the Chinese stock market index was the index least affected by the other BRICS countries in the AC period compared to the BC period.
Journal: Emerging Markets Finance and Trade
Pages: 1475-1486
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2136942
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2136942
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# input file: MREE_A_2136941_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhihui Lv
Author-X-Name-First: Zhihui
Author-X-Name-Last: Lv
Author-Name: Chun-Kei Tsang
Author-X-Name-First: Chun-Kei
Author-X-Name-Last: Tsang
Author-Name: Niklas F. Wagner
Author-X-Name-First: Niklas F.
Author-X-Name-Last: Wagner
Author-Name: Wing Keung Wong
Author-X-Name-First: Wing Keung
Author-X-Name-Last: Wong
Title: What is an Optimal Allocation in Hong Kong Stock, Real Estate, and Money Markets: An Individual Asset, Efficient Frontier Portfolios, or a Naïve Portfolio? Is This a New Financial Anomaly?
Abstract: 
 To test for arbitrage opportunities and market efficiency in the Hong Kong money, stock, and real estate markets, we find that the money market stochastically dominates both the stock and real estate markets. Furthermore, the real estate market dominates the stock market, the money market dominates nearly all the efficient frontier portfolios, none of the efficient portfolios dominates the money market, and the money market also dominates the equal-weighting portfolio. This infers that in some cases investors could achieve higher expected ex-ante utility by investing in an individual asset rather than a portfolio. Our conclusions drawn from the pre-COVID-19 period are the same as those drawn from the entire period and the conclusions drawn from the COVID-19 period are the same as those drawn from the entire period except that the money market only stochastically dominates some of the efficient frontier portfolios. Our findings question diversification benefits in the Hong Kong capital market during our sample period, including both the pre-COVID-19 and COVID-19 periods.
Journal: Emerging Markets Finance and Trade
Pages: 1554-1571
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2136941
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2136941
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# input file: MREE_A_2147783_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yongzhen Guo
Author-X-Name-First: Yongzhen
Author-X-Name-Last: Guo
Author-Name: Shengzhi Yang
Author-X-Name-First: Shengzhi
Author-X-Name-Last: Yang
Author-Name: Yinghuan Wang
Author-X-Name-First: Yinghuan
Author-X-Name-Last: Wang
Author-Name: Zhihong Yi
Author-X-Name-First: Zhihong
Author-X-Name-Last: Yi
Title: Star Analysts’ Voting in Emerging Market: A Perspective of Analysts’ Optimistic Bias
Abstract: 
 
We examine the effect of fund managers’ voting on the optimistic bias of sell-side analysts by exploiting the exogenous event of New Fortune Magazine suspending the Sixteenth Star Analyst Contest. Our results show that the disappearance of voting makes analysts face less pressure from funds, which leads to less optimistic bias and lower error in earnings forecasts. Moreover, the effect is more pronounced in the samples of analysts who work in small brokerages and have less star experience. Further, we find that analysts reduce listed firm joint site visits with small fund managers but still conduct single site visits, suggesting analysts are diligent but not catering to small fund managers anymore. In addition, we find the opposite result as the effect of the cancelation reverses. In general, our findings indicate that the voting right of the star analyst ranking has become a self-interest tool for fund managers, driving analysts to provide biased reports and soft services, becoming another source of pressure for analysts.
Journal: Emerging Markets Finance and Trade
Pages: 1498-1518
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2147783
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2147783
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# input file: MREE_A_2128755_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maobin Wang
Author-X-Name-First: Maobin
Author-X-Name-Last: Wang
Author-Name: Tao Ye
Author-X-Name-First: Tao
Author-X-Name-Last: Ye
Title: Do Firms’ Social Media Fake News Clarifications Mitigate the PEAD Anomaly? Evidence from a Policy Experiment in China
Abstract: 
 Combating fake news about the stock market is a major issue in the social media era. We examine the impact of a firm’s social media fake news clarification on the PEAD using a 2010 Chinese policy experiment, which enabled firms to promptly respond to fake rumors on social media platforms. We find that a firm’s clarification of fake news on social media is negatively associated with PEAD, and its effect varies with certain dimensions of firm characteristics. Our evidence suggests that firms can play an active role in combating fake news on social media and in improving information efficiency in the stock market.
Journal: Emerging Markets Finance and Trade
Pages: 1281-1299
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2128755
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2128755
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# input file: MREE_A_2119806_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Huifang Cheng
Author-X-Name-First: Huifang
Author-X-Name-Last: Cheng
Author-Name: Chenxiang Hong
Author-X-Name-First: Chenxiang
Author-X-Name-Last: Hong
Author-Name: Hongyi Li
Author-X-Name-First: Hongyi
Author-X-Name-Last: Li
Author-Name: Yi Zhang
Author-X-Name-First: Yi
Author-X-Name-Last: Zhang
Title: Does the China-U.S. Trade Imbalance Stem from Difference in the Comparative Advantages of Service Trade? Empirical Analysis Based on SVAR Model
Abstract: 
 China-U.S. trade imbalance is one of the most complex macroeconomic issues. Based on the data from 1992 to 2020, we combine a two-period consumption decision-making theory and use the SVAR model to explore the reason and mechanism of the China-U.S. trade imbalance. We find that the difference in comparative advantages of service trade is an important reason for the China-U.S. trade imbalance, and the difference in consumption rate is an important mechanism. Furthermore, we support these arguments with the stylized facts of China’s bilateral trade imbalance with other G20 countries. These findings may be a more reasonable explanation for the long-term existence of the huge China-U.S. trade imbalance.
Journal: Emerging Markets Finance and Trade
Pages: 1444-1463
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2119806
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119806
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# input file: MREE_A_2147781_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kyung-Jin Choi
Author-X-Name-First: Kyung-Jin
Author-X-Name-Last: Choi
Author-Name: HeuiJu Chun
Author-X-Name-First: HeuiJu
Author-X-Name-Last: Chun
Author-Name: Dong-Hwa Lee
Author-X-Name-First: Dong-Hwa
Author-X-Name-Last: Lee
Title: Determinants of Households’ Intention to Take Out or Convert to a Trust-Type Home Pension: Evidence from South Korea
Abstract: 
 
This study analyzes the determinants of Korean households’ intention to take out a trust-type home pension (Korean reverse mortgage) or switch from a collateral-type home pension to a trust-type home pension. Using a proportional odds logit model, we analyzed 2018 survey data on home pension demand. Trust-type home pension enrollment is most significantly influenced by homeowners’ relationship with children after enrollment, followed by homeowners’ need for retirement-related financial education. The presence (or absence) of a homeowner’s spouse most significantly influenced conversion intention, affirming that for homeowners with a spouse, their priority in pension selection was securing their spouse’s future entitlement.
Journal: Emerging Markets Finance and Trade
Pages: 1538-1553
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2147781
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2147781
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# input file: MREE_A_2119804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongyi Chen
Author-X-Name-First: Hongyi
Author-X-Name-Last: Chen
Author-Name: Pierre Siklos
Author-X-Name-First: Pierre
Author-X-Name-Last: Siklos
Title: Oceans Apart? China and Other Systemically Important Economies
Abstract: 
 China has been considered a systemically important economy for at least a decade. As policymakers worldwide grapple with sluggish growth there is relatively little evidence about whether the G4, which consists of the US, the Eurozone, Japan, and includes China, as a block contributes to global economic performance in a manner that is not possible when China is left out or treated exogenously. We estimate a series of panel factor and standard VARs because these are well suited to exploit cross-country links. We estimate the relative impact of domestic and global factors on these four economies. First, it is essential to treat China in a model of the G4, on a level playing field with the US, the Eurozone, and Japan to better understand how shocks among these economies interact with each other. Second, we find that domestic and global shocks can reinforce each other. Indeed, global monetary shocks explain up to 60% of variation in commodity demand and real economic conditions. We also report that there is a trade-off between domestic monetary and financial conditions. We recommend that policymakers to reexamine the potential benefits from greater policy cooperation.
Journal: Emerging Markets Finance and Trade
Pages: 1349-1371
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2119804
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2119804
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# input file: MREE_A_2138325_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yu-Qi Liu
Author-X-Name-First: Yu-Qi
Author-X-Name-Last: Liu
Author-Name: Chao Feng
Author-X-Name-First: Chao
Author-X-Name-Last: Feng
Title: How Do Economic Freedom and Technological Innovation Affect Green Total-Factor Productivity? Cross-Country Evidence
Abstract: 
 Green development has become a global concern. Using a panel of 67 countries from 1995–2019, the purpose of this study is to examine whether and how economic freedom and technological innovation affect green total factor productivity (GTFP), and the interaction effect of both on GTFP. The results show that economic freedom and technological innovation play a positive influence on GTFP in both the global panel and the regional panels at different income levels, and this significant effect should be particularly important for high-income countries. Interestingly, the interaction effect of economic freedom and technological innovation has a negative effect on the global GTFP. This negative effect is also present in the middle-income country panel, but is not significant in the high-income panel. This study reveals that the environmental significance of economic freedom should receive attention.
Journal: Emerging Markets Finance and Trade
Pages: 1426-1443
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2138325
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2138325
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# input file: MREE_A_2149259_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tram T. B. Nguyen
Author-X-Name-First: Tram T. B.
Author-X-Name-Last: Nguyen
Author-Name: Dong Li
Author-X-Name-First: Dong
Author-X-Name-Last: Li
Author-Name: Jiehong Zhou
Author-X-Name-First: Jiehong
Author-X-Name-Last: Zhou
Title: Critical Success Factors for Safer Food Supply Chains: Qualitative Evidence from Chinese and Vietnamese Fishery Manufacturers
Abstract: 
 
Food manufacturers must monitor food safety along the supply chain until it reaches the final customers, necessitating a successful food safety management system (FSMS). Underpinned by critical success factors (CSFs) theory, the context of Asian fishery supply chains is employed in this study to investigate manufacturers’ in-depth knowledge of CSFs for FSMS implementation. Various CSFs from three levels, including organization, market, and food-safety governance, are qualitatively identified and explained how they contribute to FSMS implementation through semi-structured interviews, numerous field trips and cross-national case analyses. Among 18 identified CSFs, human resource is the most concerning component among the organizational-level CSFs, especially, employees’ commitment, awareness, knowledge, and involvement. Supplier management and external market support from stakeholders play essential roles in ensuring high-quality and safer inputs for food businesses. Interestingly, food-safety governance affects FSMS as evidence to authorities that enterprises comply with requirements and offer competitive advantages for firms in international trading. The study findings broaden the understanding of CSF theory in food safety management and explain their impacts in the natural setting. Multiple study directions are suggested for a more proactive approach enabling food managers to identify improvement opportunities, as highlighted and exhibited by field study insights from practitioners.
Journal: Emerging Markets Finance and Trade
Pages: 1607-1623
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2149259
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2149259
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# input file: MREE_A_2147782_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenfei Li
Author-X-Name-First: Wenfei
Author-X-Name-Last: Li
Author-Name: Cen Wu
Author-X-Name-First: Cen
Author-X-Name-Last: Wu
Title: Government Intervention and Labor Investment Efficiency: Evidence from China’s Industrial Policy
Abstract: 
 
This study examines whether government intervention via industrial policy affects labor investment efficiency. Covering two of China’s Five-Year Plans spanning 2006–2015, we find that indirect government intervention via industrial policy results in lower employee numbers and higher labor investment efficiency. The effect is stronger in state-owned enterprises (SOEs), especially in SOEs controlled by local government, and in regions with weaker market-based institutions. The effect operates through reducing over-hiring, but not reducing under-hiring, under-firing, or over-firing. Overall, our results indicate that indirect government intervention via industrial policy improves labor investment efficiency by alleviating local Chinese governments’ intervention on firms.
Journal: Emerging Markets Finance and Trade
Pages: 1487-1497
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2147782
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2147782
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# input file: MREE_A_2151836_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Linyi Zhang
Author-X-Name-First: Linyi
Author-X-Name-Last: Zhang
Author-Name: Lin Wan
Author-X-Name-First: Lin
Author-X-Name-Last: Wan
Author-Name: Qinlin Wu
Author-X-Name-First: Qinlin
Author-X-Name-Last: Wu
Author-Name: Mengfei Wan
Author-X-Name-First: Mengfei
Author-X-Name-Last: Wan
Title: Unrelated Shareholder Alliance and Related Party Transaction: Evidence from China
Abstract: 
 
Using a manually collected dataset from 2006 to 2020 in China, we investigate the relationship between unrelated shareholder alliance (SA) and related party transactions (RPTs). We reveal that unrelated SA could reduce listed firms’ RPTs, which have plagued the capital markets for years. This negative association is more pronounced in abnormal RPTs, which typically indicates tunneling. Further, the negative relationship between SA and RPTs is more pronounced in state-owned enterprises. Overall, our findings indicate that alliance is not a tool for unrelated shareholders to collude, but is a means for unrelated shareholders to cooperate.
Journal: Emerging Markets Finance and Trade
Pages: 1640-1654
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2151836
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2151836
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# input file: MREE_A_2148463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: K. P. Prabheesh
Author-X-Name-First: K. P.
Author-X-Name-Last: Prabheesh
Author-Name: Sanjiv Kumar
Author-X-Name-First: Sanjiv
Author-X-Name-Last: Kumar
Title: How Do the Financial Markets Respond to India’s Asset Purchase Program? Evidence from the COVID-19 Crisis
Abstract: 
 This study examines the impacts of India’s unconventional monetary policy on the exchange rate, stock market, and bond market during the COVID-19 crisis. The Reserve Bank of India announced an asset purchase programs (APPs) four times during the pandemic. Using daily data from January 1, 2019, to August 13, 2021, and applying the EGARCH methodology, this study finds that the APPs effectively reduced the yield rate in the bond market and its volatility. However, the first two announcements did not impact the financial market significantly. In contrast, the third and fourth announcements helped to compress the yield rate and its volatility. Further, the AAPs also helped to restrain the exchange rate depreciation and its volatility. Overall findings suggest that APPs had a desired impact on the targeted variables.
Journal: Emerging Markets Finance and Trade
Pages: 1591-1606
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2148463
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2148463
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# input file: MREE_A_2137374_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mengting Zhang
Author-X-Name-First: Mengting
Author-X-Name-Last: Zhang
Author-Name: Feng Yu
Author-X-Name-First: Feng
Author-X-Name-Last: Yu
Author-Name: Changbiao Zhong
Author-X-Name-First: Changbiao
Author-X-Name-Last: Zhong
Title: How State Ownership Affects Firm Innovation Performance: Evidence from China
Abstract: 
 Innovation plays a vital role in economic development. This paper examined the effect of state ownership on firm innovation as well as the moderating roles of R&D capability and marketization by Chinese firm-level data from Chinese Industrial Enterprises (2008–2011) and listed companies (2007–2016). The theoretical and empirical study verified that state ownership positively influences firm innovation, and firm’s R&D capability and the degree of marketization have significant positive moderate effect. The result was robust in a series of checks such as using lagged data, adopting alternative identification methods and variables, and using independent replication. The conclusion provided implications for the management of Chinese firms. The unique innovation pattern of Chinese firms also provided enlightening experience to other emerging economies.
Journal: Emerging Markets Finance and Trade
Pages: 1390-1407
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2137374
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2137374
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# input file: MREE_A_2136943_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hua Zhang
Author-X-Name-First: Hua
Author-X-Name-Last: Zhang
Author-Name: Kexuan Han
Author-X-Name-First: Kexuan
Author-X-Name-Last: Han
Title: Analysis of the Evolution of the Status of ”The Belt and Road” in the World Trade Dependence Network
Abstract: 
 Examining the Interdependence in the international trade pattern from the perspective of linkage and development is conducive to grasping and optimizing “the Belt and Road” co-construction strategy from the overall and dynamic perspective.By constructing the trade dependence network of 183 countries and the multiple period difference-in-differences model, this paper analyzes the dynamic evolution law of the status along “the Belt and Road,” and finds that the world trade dependence network shows an orderly and multi-polar trend of change, and the trade status of “the Belt and Road” has gradually increased in recent years; The intra-regional compactness index of participating countries shows a more obvious stratification phenomenon and strong group attributes; The distribution of the core degree of the participating countries shows the obvious structural characteristics of “core-middle-edge;” The effective implementation of “the Belt and Road” Initiative is a significant reason for the increased dependence of participating countries. The above-mentioned research organically combines the practice of “the Belt and Road” construction with the changes in the world trade dependence network, and provides a possible theory and policy reference for more effectively promoting the construction of “the Belt and Road” from the perspective of relationship.
Journal: Emerging Markets Finance and Trade
Pages: 1300-1322
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2136943
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2136943
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# input file: MREE_A_2138703_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gan-Ochir Doojav
Author-X-Name-First: Gan-Ochir
Author-X-Name-Last: Doojav
Title: Macroeconomic Effects of Covid-19 in a Commodity-Exporting Economy: Evidence from Mongolia
Abstract: 
 This article examines macroeconomic effects and transmission mechanisms of Covid-19 in Mongolia, a developing and commodity-exporting economy, by estimating a Bayesian structural vector autoregression on quarterly data. We find strong cross-border spillover effects of Covid-19 passing through changes in commodity markets and the Chinese economy. Our estimates suggest that China’s GDP and copper price shocks respectively account for three-fifths and one-fifths of the drop in real GDP in 2020Q1. The recovery observed for 2020Q2-2021Q1 is primarily due to positive external shocks. However, disruptions in credit and labor markets have been sustained in the economy. Two-thirds of the fall in employment in 2021Q1 could be attributed to adverse labor demand shocks. We also reveal novel empirical evidence for the balance sheet channel of the exchange rate, the financial accelerator effects, and an indirect channel of wage shock to consumer price passing through bank credit.
Journal: Emerging Markets Finance and Trade
Pages: 1323-1348
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2138703
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2138703
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# input file: MREE_A_2148462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Trinh Q. Long
Author-X-Name-First: Trinh Q.
Author-X-Name-Last: Long
Author-Name: Peter J. Morgan
Author-X-Name-First: Peter J.
Author-X-Name-Last: Morgan
Title: Monetary Policies and Financial Stress During the COVID-19 Pandemic: An Event Study Analysis
Abstract: 
 
Using an event study design, this paper examines the effects of announcements of financial policies, especially monetary policies, on a measure of financial stress in some advanced and emerging economies during the COVID-19 pandemic period. We construct a daily financial stress index for 15 countries during the period from April 1, 2019 to September 30, 2021 . Our results show that announcing financial policies of any type increased financial stress on the day the policy was announced but the effect faded away rather quickly. Moreover, different types of financial policy announcements had different effects on the financial stress subindices. We also find that each component of financial stress responds to the announcement of financial policies differently and announcements of financial policies affect financial stress in most of the countries in our sample, but to different degrees.
Journal: Emerging Markets Finance and Trade
Pages: 1572-1590
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2148462
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2148462
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# input file: MREE_A_2133960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hongmei Ma
Author-X-Name-First: Hongmei
Author-X-Name-Last: Ma
Author-Name: Yiwen Sun
Author-X-Name-First: Yiwen
Author-X-Name-Last: Sun
Author-Name: Lingxiao Yang
Author-X-Name-First: Lingxiao
Author-X-Name-Last: Yang
Author-Name: Xiuzhen Li
Author-X-Name-First: Xiuzhen
Author-X-Name-Last: Li
Author-Name: Yun Zhang
Author-X-Name-First: Yun
Author-X-Name-Last: Zhang
Author-Name: Fang Zhang
Author-X-Name-First: Fang
Author-X-Name-Last: Zhang
Title: Advanced Human Capital Structure, Industrial Intelligence and Service Industry Structure Upgrade ——Experience from China’s Developments
Abstract: 
 This study investigates the relationship between advanced human capital structure, industrial intelligence, and service industry structure based on China’s development from provincial data from 2008 to 2019. It finds that the advanced human capital structure can significantly promote the structural development of the service industry. Meanwhile, there is some heterogeneity in the impact of advanced human capital structure on the service industry. In the eastern region and high level of elemental market development in China, advanced human capital structure has a more significant contribution to the service industry structure upgrade. More importantly, industrial intelligence will play a positive moderating effect on the process of upgrading the human capital structure to the service sector structure. Further, the effect of advanced human capital structure on the service industry’s development depends on the threshold of industrial intelligence. When industrial intelligence exceeds the threshold, it can strengthen the “promotion effect” of advanced human capital structure.
Journal: Emerging Markets Finance and Trade
Pages: 1372-1389
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2133960
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2133960
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# input file: MREE_A_2136940_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fei Guo
Author-X-Name-First: Fei
Author-X-Name-Last: Guo
Author-Name: Shi He
Author-X-Name-First: Shi
Author-X-Name-Last: He
Author-Name: Zhitao Lin
Author-X-Name-First: Zhitao
Author-X-Name-Last: Lin
Title: Truths and Myths About the Finance-Growth Nexus in China: A Meta-Analysis
Abstract: 
 Drawing on a unique
dataset of 520 estimates from 32 studies, we analyze the effect of financial development on economic growth in China quantitatively using a meta-regression analysis. We find that the effect of financial development on economic growth, corrected for publication biases, is positive and statistically significant and that banking-sector development plays a dominant role in the economic growth of China. Moreover, there is weak evidence of the existence of Type-I publication bias and strong evidence of the existence of Type-II publication bias. We also find that sample size, the language of the studies, the empirical model, and the use of data from different regions are the sources of the heterogeneity of the estimates.
Journal: Emerging Markets Finance and Trade
Pages: 1408-1425
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2136940
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2136940
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# input file: MREE_A_2149260_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoxuan Wang
Author-X-Name-First: Xiaoxuan
Author-X-Name-Last: Wang
Author-Name: Xinjie Wang
Author-X-Name-First: Xinjie
Author-X-Name-Last: Wang
Author-Name: Suyang Zhao
Author-X-Name-First: Suyang
Author-X-Name-Last: Zhao
Title: The Co-Movements of Credit Default Swap Spreads in China
Abstract: 
 
In this paper, we study systemic risk in China using information from the credit default swap (CDS) data of Chinese firms. We find a large time variation in CDS spreads. More importantly, firms’ CDS spreads co-move with each other and the first three principal components (PCs) explain 94% of the time-series variation in CDS spreads. We further identify a set of economic risk factors that drive the co-movement of CDS spreads. Large external economic shocks shift a significant proportion of the variance explanation power from the factors related to China’s domestic economic condition to foreign trade and money supply. Our results reveal the sources and dynamics of systemic risk in China.
Journal: Emerging Markets Finance and Trade
Pages: 1624-1639
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2149260
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2149260
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# input file: MREE_A_2147785_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qiongyu Huang
Author-X-Name-First: Qiongyu
Author-X-Name-Last: Huang
Author-Name: Xiaoshan Huang
Author-X-Name-First: Xiaoshan
Author-X-Name-Last: Huang
Author-Name: Gaowen Kong
Author-X-Name-First: Gaowen
Author-X-Name-Last: Kong
Title: Can the Belt and Road Initiative Promote the Dezombification of Firms?
Abstract: 
 
Based on China’s supply-side structural economic reforms, this paper examines the impact of the Belt and Road Initiative (BRI) on the formation of zombie firms. We find that the BRI significantly inhibits the formation of zombie firms by easing financial constraints and optimizing investment efficiency. Our findings are robust to different model specifications and samples. Further investigations find that the impact of the BRI is pronounced for private enterprises, manufacturing enterprises and enterprises with more intense market competition. Overall, our results provide clear policy implications by shedding light on the role of the BRI in optimizing the allocation of resources.
Journal: Emerging Markets Finance and Trade
Pages: 1519-1537
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2147785
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2147785
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# input file: MREE_A_2122709_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Neluka Devpura
Author-X-Name-First: Neluka
Author-X-Name-Last: Devpura
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Title: The COVID-19 Pandemic and Chinese Insurance Firms: A Panel Predictability Analysis
Abstract: 
 This paper examines whether the COVID-19 pandemic predicts Chinese insurance firms’ stock excess returns. COVID-19 is proxied using three indices: the stringency index, containment and health indices, and the government support index. We use monthly data from January 2020 to September 2020 on 64 insurance firms. Using a newly developed factor-augmented panel predictability model, we find that COVID-19 is a statistically insignificant predictor of excess returns. Our results are robust to the use of different control predictors such as macro variables, financial indicators and Fama-French factors.
Journal: Emerging Markets Finance and Trade
Pages: 1464-1474
Issue: 5
Volume: 59
Year: 2023
Month: 04
X-DOI: 10.1080/1540496X.2022.2122709
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2122709
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# input file: MREE_A_2147779_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chia-Wei Chin
Author-X-Name-First: Chia-Wei
Author-X-Name-Last: Chin
Title: Business Strategy and Financial Opacity
Abstract: 
 
In this study, we investigate whether different types of business strategy are related to financial opacity and, if so, whether financial constraints and decreasing production demand exacerbate or mitigate financial opacity. Using a sample of listed firms in Taiwan from 2013 to 2018, we find that defenders mitigate financial opacity through loss avoidance and exacerbate financial opacity through aggressive earnings, especially when they face lower financial constraints and during decreasing production demand. However, prospectors do not exacerbate financial opacity by smoothing earnings especially when they face higher financial constraints and their production demand is increasing. Our study should be of interest to researchers and financial statement users, as well as others concerned with understanding the effects of different types of business strategy on different levels of financial opacity.
Journal: Emerging Markets Finance and Trade
Pages: 1818-1834
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2147779
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2147779
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# input file: MREE_A_2149261_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yong Ye
Author-X-Name-First: Yong
Author-X-Name-Last: Ye
Author-Name: Yazhen Chen
Author-X-Name-First: Yazhen
Author-X-Name-Last: Chen
Author-Name: Lin Xiao
Author-X-Name-First: Lin
Author-X-Name-Last: Xiao
Author-Name: Keyu Luo
Author-X-Name-First: Keyu
Author-X-Name-Last: Luo
Title: A Plausible Way to Induce Interfirm Knowledge Spillovers Based on Informal Networks: Evidence from Analysts
Abstract: 
 
By documenting information flows from analysts to covered firms, this paper provides robust evidence that firms connected by informal networks of shared analysts exhibit greater knowledge spillovers, and are largely influenced by firms’ absorptive capacity. In cross-sectional tests, we demonstrate that the spillover is greater for analysts with higher industry specialization and forecast activity intensity. In addition, the effect varies with firm pairs’ industry homogeneity and geographic proximity. Finally, by focusing on the real effect of shared analysts on corporate innovation, we find that shared analysts can facilitate the covered firms’ upward convergence in R&D expenditure. Collectively, this paper provides emerging capital market evidence for the function of informal networks based on shared analysts regarding firms’ innovation decisions through knowledge spillovers.
Journal: Emerging Markets Finance and Trade
Pages: 1720-1733
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2149261
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2149261
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# input file: MREE_A_2153590_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wei Jia
Author-X-Name-First: Wei
Author-X-Name-Last: Jia
Author-Name: Alexander Nuetah
Author-X-Name-First: Alexander
Author-X-Name-Last: Nuetah
Author-Name: Xian Xin
Author-X-Name-First: Xian
Author-X-Name-Last: Xin
Title: Home Bias: How Has It Affected the Border Effects of China’s Trade?
Abstract: 
 
This study aimed to analyze the impact of home bias on China’s trade border effects by constructing a pure exchange computable general equilibrium model. The results indicate that the border effects of external import, export, and trade in China are 6.96 times, 4.62 times, and 5.60 times their respective counterparts in interregional trade. On elimination of national bias, the border effects of China’s external import, export, and trade fell by 96.37%, 93.71%, and 95.18%, respectively, while border effects of China’s interregional trade became 8.06%. By eliminating regional bias, the border effects of China’s external imports, exports, and trade decreased by 3.63%, 6.29%, and 4.82%, respectively.
Journal: Emerging Markets Finance and Trade
Pages: 1882-1895
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2153590
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2153590
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# input file: MREE_A_2153592_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qunyang Du
Author-X-Name-First: Qunyang
Author-X-Name-Last: Du
Author-Name: Fangxing Zhou
Author-X-Name-First: Fangxing
Author-X-Name-Last: Zhou
Author-Name: Tianle Yang
Author-X-Name-First: Tianle
Author-X-Name-Last: Yang
Author-Name: Min Du
Author-X-Name-First: Min
Author-X-Name-Last: Du
Title: Digital Financial Inclusion, Household Financial Participation and Well-Being: Micro-Evidence from China
Abstract: 
 
Though financial inclusion has drawn a lot of attention lately, especially in emerging markets, it remains unclear how it affects household well-being. This study investigates the connection between digital financial inclusion (DFI) and household well-being using two databases in China. The findings suggest that DFI is positively associated with household well-being. Mechanism analysis reveals that a rise in DFI facilitates household financial participation, thereby increasing the probability of household well-being. Our further empirical analysis demonstrates that groups with lower education and income levels are more significantly affected by DFI regarding household well-being. Overall, the research provides empirical evidence for the assertion that expanding financial inclusion in the digital economy era can promote social fairness and provide a basis for a vigorous expansion of financial inclusion in emerging economies.
Journal: Emerging Markets Finance and Trade
Pages: 1782-1796
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2153592
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2153592
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# input file: MREE_A_2159371_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Binyuan Luo
Author-X-Name-First: Binyuan
Author-X-Name-Last: Luo
Author-Name: Yongkai Ma
Author-X-Name-First: Yongkai
Author-X-Name-Last: Ma
Author-Name: Wei Chen
Author-X-Name-First: Wei
Author-X-Name-Last: Chen
Title: Whether Consumers Should Participate in Co-Creation First?
Abstract: 
 Over the past few years, value co-creation between firms and consumers has gotten increased attention. In this work, analytical models were developed to systematically study the underlying reason for the participation of consumers in the co-creation process, as well as examine the conditions under which both firm and consumers benefit. From the extracted result, it was demonstrated that under certain conditions, consumers are willing to participate in value co-creation firstly. Interestingly, firm obtains the highest profit and consumers get the second highest surplus. As a result, both parties’ welfare increase since the depth of interaction between firm and consumers and the breadth of interaction between consumers is enhanced. Our work provides some new management insights on the practice of the value co-creation.
Journal: Emerging Markets Finance and Trade
Pages: 1936-1959
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2159371
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2159371
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# input file: MREE_A_2128668_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dan Wang
Author-X-Name-First: Dan
Author-X-Name-Last: Wang
Author-Name: Wei-Qiang Huang
Author-X-Name-First: Wei-Qiang
Author-X-Name-Last: Huang
Title: Forecasting Chinese macroeconomy with volatility connectedness of financial institutions
Abstract: 
 Systemic risk emphasizes the impact on the real economy and is popularly measured by a network interconnectedness approach. We test, for the first time, whether the volatility connectedness of financial institutions is a significant predictor of Chinese macroeconomy. The connectedness is derived from volatility spillover networks and is measured by total connectedness introduced in Diebold and Yilmaz (2014), which reflects the effects of risk transmission and systemic risk in the financial system. Both in-sample and out-of-sample analyses show that an increase in total connectedness among financial institutions stably and strongly forecasts a slowdown in China’s economic activity over the next three to twelve months, when controlling for many factors. Furthermore, including the total connectedness into the regression models improves the macroeconomy forecasts accuracy. Our results are robust to alternative measures of total connectedness.
Journal: Emerging Markets Finance and Trade
Pages: 1797-1817
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2128668
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2128668
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# input file: MREE_A_2148464_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yue Hu
Author-X-Name-First: Yue
Author-X-Name-Last: Hu
Author-Name: Haosheng Guo
Author-X-Name-First: Haosheng
Author-X-Name-Last: Guo
Author-Name: Wenli Huang
Author-X-Name-First: Wenli
Author-X-Name-Last: Huang
Author-Name: Yueling Xu
Author-X-Name-First: Yueling
Author-X-Name-Last: Xu
Title: Yield Forecasting by Machine Learning Algorithm: Evidence from China’s A-share Market
Abstract: 
 
This study uses five machine learning algorithms (Stochastic gradient descent (SGD), Decision tree, Random forest, Gradient boosting decision tree (GBDT), and Convolutional neural networks (CNN)) to explore their prediction effects on China’s stock market. It constructs a monthly rolling model for stock return prediction. Selecting stocks of the CSI 300 index from January to June 2021 as specific monthly samples and classifying three factors – fundamentals, volatility(risk) and technical indicators, the results demonstrate that (1) machine learning brings favorable investment returns in simulated quantitative trading of China’s A-share market (2) the technical indicator factor is the most valuable, with the momentum technical factor having greatest influence, followed by the volatility (risk) factor and fundamental factors. Therefore, this study has a critical reference value and is significant in guiding yield forecasting in intricate stock markets.
Journal: Emerging Markets Finance and Trade
Pages: 1767-1781
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2148464
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2148464
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# input file: MREE_A_2156281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xuesheng Chen
Author-X-Name-First: Xuesheng
Author-X-Name-Last: Chen
Author-Name: Caixia Liu
Author-X-Name-First: Caixia
Author-X-Name-Last: Liu
Author-Name: Zhangxin (Frank) Liu
Author-X-Name-First: Zhangxin (Frank)
Author-X-Name-Last: Liu
Author-Name: Yongkang (Stanley) Huang
Author-X-Name-First: Yongkang (Stanley)
Author-X-Name-Last: Huang
Title: Corporate Financial Portfolio and Distress Risk: Forewarned is Forearmed
Abstract: 
 
This paper explores how corporate financial portfolio influences distress risk. We define distress risk as a dummy variable determined by whether firms need external subsidies to repay the interest payable. Spanning our analysis with 3,698 listed firms in China between 2007 and 2019, our findings are twofold. First, financial portfolio is associated with less distress risk. Second, the impact is more pronounced for firms with higher levels of liquidity of financial portfolio. We provide evidence that corporate financial portfolio prevents distress risk by reducing financial expenses and by improving investment income. Our findings post a challenge to the existing view in China that financial portfolio would harm corporate operation. The implication is that companies could allocate more liquid financial assets than illiquid ones to mitigate forewarned risk.
Journal: Emerging Markets Finance and Trade
Pages: 1852-1864
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2156281
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2156281
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# input file: MREE_A_2140572_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guangrui Liu
Author-X-Name-First: Guangrui
Author-X-Name-Last: Liu
Author-Name: Qianqian Wu
Author-X-Name-First: Qianqian
Author-X-Name-Last: Wu
Author-Name: Hongyong Zhou
Author-X-Name-First: Hongyong
Author-X-Name-Last: Zhou
Author-Name: Yunsong Wang
Author-X-Name-First: Yunsong
Author-X-Name-Last: Wang
Title: The Catering Effect of Green Mergers and Acquisitions in Heavy Pollution Industries
Abstract: 
 We examine the motivation for green mergers and acquisitions (green M&As) in heavily polluting firms by considering the relationship between investors’ green M&A preferences and managerial decisions. Using data on green M&As conducted by heavily polluting firms in China for the 2008–2019 period, we construct an index of investors’ green M&A preferences, and find that when investors give a higher (lower) premium to green M&As, heavily polluting firms prefer to implement (avoid) green M&As. The relationship is time-varying, consistent with the catering effect. Simultaneously, when compared with non-SOEs, SOEs have a stronger green M&A catering effect. Finally, we find that managers can use investor preference as a substitute for media supervision to promote green M&A of heavily polluting firms.
Journal: Emerging Markets Finance and Trade
Pages: 1865-1881
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2140572
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2140572
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# input file: MREE_A_2149262_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gaowen Kong
Author-X-Name-First: Gaowen
Author-X-Name-Last: Kong
Author-Name: Jiating Huang
Author-X-Name-First: Jiating
Author-X-Name-Last: Huang
Author-Name: Shasha Liu
Author-X-Name-First: Shasha
Author-X-Name-Last: Liu
Title: Digital Transformation and Within-Firm Pay Gap: Evidence from China
Abstract: 
 
This paper examines the effect of digital transformation on pay gap between executives and employees using a large panel of listed companies in China spanning 2013–2020. Baseline results show that digital transformation of enterprises can largely increase the pay gap. Mechanism tests show that the digital transformation of enterprises increases the income of executives and ordinary employees, and the income of executives is increasing faster than ordinary employees. Furthermore, employee’s skill level is an important influence mechanism of the effect of digital transformation on within pay gap. Heterogeneity analysis finds that this effect is more pronounced in firms with fierce industry competition, traditional firms, large firms, and firms with lower shareholdings of executives. Lastly, we find that the pay gap induced by digital transformation enhances corporate performance. Overall, this study complements the determinants of compensation structure from a new perspective of digital transformation.
Journal: Emerging Markets Finance and Trade
Pages: 1748-1766
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2149262
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2149262
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# input file: MREE_A_2159370_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Liqi Yi
Author-X-Name-First: Liqi
Author-X-Name-Last: Yi
Author-Name: Tao Li
Author-X-Name-First: Tao
Author-X-Name-Last: Li
Author-Name: Qiyu Huang
Author-X-Name-First: Qiyu
Author-X-Name-Last: Huang
Author-Name: Zidong Wang
Author-X-Name-First: Zidong
Author-X-Name-Last: Wang
Author-Name: Yuze Ma
Author-X-Name-First: Yuze
Author-X-Name-Last: Ma
Author-Name: Ting Zhang
Author-X-Name-First: Ting
Author-X-Name-Last: Zhang
Title: Research on the Impact of Corporate Social Responsibility on Sustainable Performance: A Multi-dimensional Balance Perspective
Abstract: 
 Corporate social responsibility (CSR) emphasizes the coexistence between enterprises and stakeholders so as to achieve the coordinated development of economy, society and environment. Based on the concept of CSR and triple bottom line, this article innovatively puts forward the concept of triple performance balance, which refers to the coordinated development level of corporate economic, social and environmental performance, and tests the impact of CSR fulfillment on corporate balance development. In order to examine the comprehensive balance consequences of CSR, this paper takes Chinese listed companies as samples, and the method of coefficient of variation, ordinary least squares regression as well as grouping test are employed. The results shown that CSR is conductive to the balance development of corporate triple performance, and the attributes of state-owned enterprises and mature period enterprises are beneficial to exerting the positive role of CSR on balance performance. Finally, this research emphasizes the balanced view of corporate responsibility to realize the harmonious and sustainable development of enterprise and society.
Journal: Emerging Markets Finance and Trade
Pages: 1919-1935
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2159370
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2159370
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# input file: MREE_A_2147784_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Minying Cheng
Author-X-Name-First: Minying
Author-X-Name-Last: Cheng
Author-Name: Jun Liu
Author-X-Name-First: Jun
Author-X-Name-Last: Liu
Author-Name: Zezhou Chen
Author-X-Name-First: Zezhou
Author-X-Name-Last: Chen
Title: The Effect of Venture Capital on Invested Firms’ Social Responsibility: Evidence from Venture Capital’s Exits
Abstract: 
 The impact of venture capital firms (VCs) on invested firms’ shareholder benefits is extensively examined in the literature, but few studies consider VCs’ impact on invested firms’ other stakeholder benefits. In this paper, we use the exit of VCs from a 2010 to 2017 sample of Chinese listed firms as a shock in a difference-in-differences analysis to investigate VCs’ influence on invested firms’ corporate social responsibility (CSR). We find that CSR decreases significantly after VCs’ exits, particularly if VCs are not state-owned or are short-term investors in firms. A further analysis shows that VCs’ exits affect firms’ shareholder, creditor, employee, and environmental benefits. VCs improve CSR by alleviating their agency costs and reducing their financial constraints, both of which increase significantly after VCs’ exit from firms. The effect of VCs on CSR also appears to improve corporate performance, implying that this positive effect is consistent with shareholder benefits.
Journal: Emerging Markets Finance and Trade
Pages: 1668-1689
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2147784
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2147784
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# input file: MREE_A_2147786_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qianlong Yu
Author-X-Name-First: Qianlong
Author-X-Name-Last: Yu
Author-Name: Xiaoyi Xiao
Author-X-Name-First: Xiaoyi
Author-X-Name-Last: Xiao
Author-Name: Yimin Li
Author-X-Name-First: Yimin
Author-X-Name-Last: Li
Title: Research on Corporate Bond Risk Premium and Default Based on Voluntary Dual Ratings Selection
Abstract: 
 
This study examines the key influencing factors of voluntary dual ratings selection in corporate bond financing and the effect of dual ratings on risk premium and default risk, based on corporate bond data issued from 2016 to 2021. It shows that the worse the bond issuers’ credit qualifications, the more likely they are to seek dual ratings before issuance. Compared to a single credit rating, the risk premium for a bond with dual ratings is lower, and the effect becomes more significant in the low-rated and non-listed company samples. There are dual ratings before bond issuance, and the higher the average credit rating level of the bond, the lower the bond’s default risk. The research findings provide a theoretical basis and empirical evidence for the practice of voluntary dual ratings in China, expand research on the influencing mechanism of bond issuance pricing in the context of voluntary dual ratings selection, and examine the information content of credit ratings from the perspective of their ability to predict bond default.
Journal: Emerging Markets Finance and Trade
Pages: 1690-1706
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2147786
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2147786
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# input file: MREE_A_2138702_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hui Wang
Author-X-Name-First: Hui
Author-X-Name-Last: Wang
Author-Name: Keke Sun
Author-X-Name-First: Keke
Author-X-Name-Last: Sun
Author-Name: Shu Xu
Author-X-Name-First: Shu
Author-X-Name-Last: Xu
Title: Does Housing Boom Boost Corporate Financialization?—Evidence from China
Abstract: 
 This paper provides a fresh look to investigate the linkage between rising house prices and corporate financialization. We match data of house prices in 237 cities with publicly listed non-financial and non-real estate companies to establish the causal relationship and further examine the underlying mechanism. The empirical study confirms that rising housing prices have a positive impact on corporate financialization, thereby emphasizing the significance of the housing boom for corporate financialization. We find that the deterring effect is stronger for firms with high cash holdings and is primarily driven by manufacturing firms. In addition, this study explores the potential mechanism generated by financing constraints and investment opportunities. The empirical results show that the housing price boom plays a significant role in promoting corporate financialization by releasing financing constraints.
Journal: Emerging Markets Finance and Trade
Pages: 1655-1667
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2138702
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2138702
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# input file: MREE_A_2153591_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hansol Lee
Author-X-Name-First: Hansol
Author-X-Name-Last: Lee
Author-Name: Dongjoon Choi
Author-X-Name-First: Dongjoon
Author-X-Name-Last: Choi
Author-Name: Ho-Young Lee
Author-X-Name-First: Ho-Young
Author-X-Name-Last: Lee
Author-Name: Inkyung Yoon
Author-X-Name-First: Inkyung
Author-X-Name-Last: Yoon
Title: CEO Overconfidence, Loan-Loss Provisions, and the Effect of Country Corruption: An International Investigation
Abstract: 
 
This study examines the relationship between CEO overconfidence and bank recognition of loan-loss provisions (LLPs) and the effect of country corruption level on this relationship by analyzing cross-country data. We use a sample of 3,047 financial institutions in 53 different countries over 2013–2018. The results reveal that overconfident CEOs are more likely to recognize lower LLPs, suggesting that they overestimate (underestimate) favorable (unfavorable) outcomes of loan collection. Furthermore, we find that lower country-level corruption attenuates this relationship. We further show that overconfident CEOs reduce only the recognition of discretionary components of LLPs.
Journal: Emerging Markets Finance and Trade
Pages: 1835-1851
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2153591
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2153591
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# input file: MREE_A_2159372_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jun Wang
Author-X-Name-First: Jun
Author-X-Name-Last: Wang
Author-Name: Chengjuan Liao
Author-X-Name-First: Chengjuan
Author-X-Name-Last: Liao
Author-Name: Jie Xiong
Author-X-Name-First: Jie
Author-X-Name-Last: Xiong
Author-Name: Chengbo Wang
Author-X-Name-First: Chengbo
Author-X-Name-Last: Wang
Title: Deepening of Free Trade Agreements and International Trade: Evidence from China
Abstract: 
 The expansion of FTA rules from the border to the “depth” within the border can promote the reduction of trade barriers between member countries. Yet, this can also increase the cost of compliance. Hence, this research examines the impact of FTA deepening on China’s import and export trade based on the trade data between China and 21FTA partner countries over the period of 2005–2018. This paper introduces the FTA deepening index, constructs a structural gravity model, and empirically applies PPML estimation and instrumental variable methods. The results show that FTA deepening promotes the growth of China’s international trade, and the effect on promoting imports is greater than that of export promotion. Additionally, a heterogeneity test between countries and products is carried out. Based on this, our results reveal that FTA deepening has a more significant promoting effect on China’s trade imports from developed countries and has a more significant restraining effect on China’s exports to developed countries. Furthermore, we demonstrate that the depth of FTA has a less positive impact on China’s agricultural trade than on industrial products.
Journal: Emerging Markets Finance and Trade
Pages: 1960-1975
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2159372
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2159372
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# input file: MREE_A_2156282_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaofang Chen
Author-X-Name-First: Xiaofang
Author-X-Name-Last: Chen
Author-Name: Qin Li
Author-X-Name-First: Qin
Author-X-Name-Last: Li
Author-Name: Wei Cui
Author-X-Name-First: Wei
Author-X-Name-Last: Cui
Author-Name: Yu Hu
Author-X-Name-First: Yu
Author-X-Name-Last: Hu
Title: Institutional Investor Network Embedding and Firms’ Total Factor Productivity
Abstract: 
 
The improvement of total factor productivity (TFP) can improve the production efficiency of enterprises and ultimately promote high-quality economic development. This paper takes Chinese A-share listed companies from 2007 to 2020 to examine the impact of institutional investor network embedding on Firms’ TFP. The study finds that institutional investor network embedding can promote the growth of Firms’ TFP. Institutional investor network embedding improves Firms’ TFP by improving information transparency and firms’ innovation level, alleviating agency problems, and playing an active role in supervision and governance. The positive impact of institutional investor network embedding on TFP is more significant among firms with low audit quality and corporate governance level. This conclusion holds true using alternative variables, changing the construction standard of institutional investor network, and using propensity score matching and the Heckman two-stage methods. This paper enriches the research on the influencing factors of Firms’ TFP and the economic consequences of institutional investor networks.
Journal: Emerging Markets Finance and Trade
Pages: 1896-1918
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2156282
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2156282
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# input file: MREE_A_2152279_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jinhua Zhang
Author-X-Name-First: Jinhua
Author-X-Name-Last: Zhang
Author-Name: Yiting Zheng
Author-X-Name-First: Yiting
Author-X-Name-Last: Zheng
Author-Name: Yafen Ye
Author-X-Name-First: Yafen
Author-X-Name-Last: Ye
Author-Name: Yimin Xu
Author-X-Name-First: Yimin
Author-X-Name-Last: Xu
Title: The Moderating Role of Foreign Institutional Investors on Stock Market Volatility: Evidence from China
Abstract: 
 
Foreign shareholding can result in stock market volatility, especially in immature financial markets. With quarterly data from 1,348 listed companies held by Qualified Foreign Institutional Investors (QFIIs) from 2006 (Q1) to 2020 (Q4), we investigate the dynamic time-varying impact of QFII ownership on China A-share market volatility using an online support vector quantile regression. Our results indicate that QFIIs have an unsystematically destabilizing effect. This effect is asymmetric under different market conditions. QFIIs demonstrate more procyclicality during normal times, and less procyclicality during times of financial stress. The results of network density analysis confirm that volatility risk will stabilize as risk spill-over will decrease when QFIIs gradually expand their shareholdings and strengthen their interconnections in the China A-share market.
Journal: Emerging Markets Finance and Trade
Pages: 1734-1747
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2152279
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2152279
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# input file: MREE_A_2149258_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mariya Gubareva
Author-X-Name-First: Mariya
Author-X-Name-Last: Gubareva
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Author-Name: Tamara Teplova
Author-X-Name-First: Tamara
Author-X-Name-Last: Teplova
Author-Name: Dang K. Tran
Author-X-Name-First: Dang K.
Author-X-Name-Last: Tran
Title: Decoupling Between the Energy and Semiconductor Sectors During the Pandemic: New Evidence from Wavelet Analysis
Abstract: 
 
We study the impact of COVID-19 on the pairwise dependence between three indices, the COVID-19 Media Coverage Index, MSCI World Semiconductor Index, and the MSCI World Energy Index, as well as investigate the respective volatility spillovers. We find intervals of weak, moderate, and strong coherence between the Media Coverage Index and returns and volatility of semiconductor and energy sector companies. Low coherence intervals indicate a diversification potential of investments in these sectors and in their volatility-based products during periods of systemic crises such as the financial turmoil induced by COVID-19. Our results provide evidence that after the escalation of the pandemic in early 2020, the energy sector cedes its leading role in terms of volatility to the semiconductor industry. We report on appealing hedging attributes related to the decoupling between the trends in the global semiconductor industry and the global energy sector accelerated by the COVID-19 triggered crisis.
Journal: Emerging Markets Finance and Trade
Pages: 1707-1719
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2149258
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2149258
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# input file: MREE_A_2156279_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: John Beirne
Author-X-Name-First: John
Author-X-Name-Last: Beirne
Author-Name: Nuobu Renzhi
Author-X-Name-First: Nuobu
Author-X-Name-Last: Renzhi
Author-Name: Ulrich Volz
Author-X-Name-First: Ulrich
Author-X-Name-Last: Volz
Title: Non-Bank Finance and Monetary Policy Transmission in Asia
Abstract: 
 
Focusing on Asian economies over the period 2006 to 2019, we find that while non-bank finance appears to complement rather than substitute credit provision by the traditional banking sector, weaker regulatory quality is an important driving factor. Moreover, while we find that central bank policy rates countercyclically affect credit provision by non-banks, impulse responses to monetary policy shocks with and without non-bank finance indicate that the effectiveness of monetary policy as a transmission channel to GDP growth, inflation, house prices, and traditional bank credit is weakened in the presence of non-bank finance. Our paper has implications for monetary policy implementation, potentially incorporating non-banks into central bank operations and liquidity provision, as well as for financial supervisors on mitigating regulatory arbitrage.
Journal: Emerging Markets Finance and Trade
Pages: 1976-1991
Issue: 6
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2156279
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2156279
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# input file: MREE_A_2181064_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xinghe Liu
Author-X-Name-First: Xinghe
Author-X-Name-Last: Liu
Author-Name: Jun Gao
Author-X-Name-First: Jun
Author-X-Name-Last: Gao
Author-Name: Zeyi Chen
Author-X-Name-First: Zeyi
Author-X-Name-Last: Chen
Author-Name: Yuqing Huang
Author-X-Name-First: Yuqing
Author-X-Name-Last: Huang
Title: Depoliticization and Stock Price Crash Risk: Evidence from China
Abstract: 
 Using the enactment of Document No. 18 as a quasi-natural event, we take a sample of Chinese A-share listed companies from 2010 to 2017 to test the impact of depoliticization on stock price crash risk based on the difference-in-differences (DID) model. Our results show that depoliticization reduces future stock price crash risk more significantly among non-state-owned enterprises. Furthermore, depoliticization can mitigate stock price crash risk through the effects of financing needs, censorship risk and agency cost.
Journal: Emerging Markets Finance and Trade
Pages: 2313-2327
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2181064
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2181064
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# input file: MREE_A_2171724_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jiaying Fan
Author-X-Name-First: Jiaying
Author-X-Name-Last: Fan
Author-Name: Kai Wang
Author-X-Name-First: Kai
Author-X-Name-Last: Wang
Author-Name: Lidong Wu
Author-X-Name-First: Lidong
Author-X-Name-Last: Wu
Title: Monitoring the Type I Agency Problem or the Type II Agency Problem? Directors Appointed by Non-State Shareholders and the CEO Turnover–Performance Sensitivity
Abstract: 
 In China’s state-owned listed companies, there exists the type I agency problem primarily caused by owners’ absence and insiders’ control, as well as the type II agency problem of the infringement on the interests of small and medium-sized shareholders by the largest shareholders. Our research examines the relationship between directors appointed by non-state shareholders and the CEO turnover–performance sensitivity, so as to clarify whether directors appointed by non-state shareholders are more inclined to monitor the type I agency problem or the type II agency problem. Using the sample of state-owned listed companies from 2006 to 2016, we find that directors appointed by non-state shareholders are more likely to monitor the type II agency problem, as demonstrated by significantly reducing the CEO turnover–performance sensitivity. Our research also finds that directors appointed by non-state shareholders play more important role in reducing the CEO turnover–performance sensitivity when the company has a high degree of separation of ownership and control, operates in the non-regulated industry, and has a large number of following security analysts. Besides, we perform propensity score matching, instrumental variable regressions, placebo test and several robustness checks to address possible endogeneity concerns and measurement errors.
Journal: Emerging Markets Finance and Trade
Pages: 2160-2189
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2171724
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2171724
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# input file: MREE_A_2171725_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhuang Wang
Author-X-Name-First: Zhuang
Author-X-Name-Last: Wang
Author-Name: Hongman Liu
Author-X-Name-First: Hongman
Author-X-Name-Last: Liu
Title: Can Export Market Diversification Mitigate Agricultural Export Volatility? A Trade Network Perspective
Abstract: 
 Using the social network analysis (SNA) method to calculate the level of agricultural export market diversification in various countries, this study examined the impact of agricultural export market diversification on export volatility from the supply network perspective based on HS6-digit agricultural export data. We identified that the agricultural export market diversification significantly reduces the export volatility. Specifically, the effect of diversifying the export market of processed agricultural products in stabilizing export volatility is greater than that of primary agricultural products. The stabilizing effect of emerging markets and developing countries or regions is more evident than developed countries or regions. Moreover, the export market diversification can stabilize the volatility of agricultural exports through two mechanisms: increasing the international market share and extending the export duration.
Journal: Emerging Markets Finance and Trade
Pages: 2234-2251
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2171725
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2171725
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# input file: MREE_A_2177100_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jiejin Xia
Author-X-Name-First: Jiejin
Author-X-Name-Last: Xia
Author-Name: Helian Xu
Author-X-Name-First: Helian
Author-X-Name-Last: Xu
Title: The Impact of Country Image on Firms’ Exports: Evidence from China
Abstract: 
 This study examines the impact of China’s perceived country image on its firms’ exports based on highly disaggregated data from 2002 to 2016. Using a composite indicator that accounts for historical wars as an instrument of country image, we find that the improvement in China’s perceived image significantly increases firms’ exports, and this effect on developing destinations is approximately 3.4 times that on developed destinations. Further analysis shows that exports from foreign-owned and privately owned domestic firms are more sensitive to China’s perceived image. The effect of country image on exports is stronger for neighboring countries and has a greater impact on consumer goods. We identify two channels through which country image affects exports, one by enhancing consumer preferences and the other by reducing trade barriers.
Journal: Emerging Markets Finance and Trade
Pages: 2102-2117
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2177100
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2177100
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# input file: MREE_A_2179873_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhiyang Hui
Author-X-Name-First: Zhiyang
Author-X-Name-Last: Hui
Title: Supply-Chain Concentration and Inefficient Investment
Abstract: 
 This paper investigates the influen7ce of supply-chain concentration on inefficient investment. We find that concentrated supply chains significantly foster inefficient investment and distort investments in an under-investing way. It suggests that a concentrated supply-chain base detriments investment efficiency. Nevertheless, the adverse impact is mitigated when switching costs are higher, information environment is more transparent, and CEO risk-taking incentives are higher. We also compare the effects in different types of firms and find that SOEs are less vulnerable to supply-chain concentration in terms of underinvestment. Overall, our study sheds light on the economic implications of supply-chain concentration in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 2129-2144
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2179873
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2179873
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# input file: MREE_A_2172318_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoquan Wang
Author-X-Name-First: Xiaoquan
Author-X-Name-Last: Wang
Author-Name: Haowen Jia
Author-X-Name-First: Haowen
Author-X-Name-Last: Jia
Author-Name: Yu Yan
Author-X-Name-First: Yu
Author-X-Name-Last: Yan
Author-Name: Ruojin Zhang
Author-X-Name-First: Ruojin
Author-X-Name-Last: Zhang
Title: Will Marriage Promote Insurance Purchase? —— Empirical Evidence on the Effect of Marital Status on Family’s Demand for Commercial Personal Insurance in China
Abstract: 
 The risk-sharing function of marriage reduces demand for commercial personal insurance, but the increase in wealth, risk, and information sharing between spouses promotes it. Using data from the 2019 China Household Financial Survey, this study empirically found that compared with single households, married households were more likely to buy commercial personal insurance. We found that household income, social interaction, and household size were the main influencing mechanisms. Heterogeneity analyses showed that marriage significantly increased personal insurance demand if the household head was male, well educated, or middle-aged. Also, marriage had a heterogeneous influence on households with different demographics.
Journal: Emerging Markets Finance and Trade
Pages: 2298-2312
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2172318
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2172318
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# input file: MREE_A_2161301_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiuzhen Li
Author-X-Name-First: Xiuzhen
Author-X-Name-Last: Li
Author-Name: Lulu Han
Author-X-Name-First: Lulu
Author-X-Name-Last: Han
Author-Name: Lingxiao Yang
Author-X-Name-First: Lingxiao
Author-X-Name-Last: Yang
Author-Name: Tiezhu Zhang
Author-X-Name-First: Tiezhu
Author-X-Name-Last: Zhang
Title: Green Development Efficiency and Spatial Characteristics of Urban Clusters: A Case of Yangtze River Delta City Cluster
Abstract: 
 Green development efficiency has become an important research topic as many countries are striving to transform development model. This study conducts static measurement and dynamic decomposition analysis of the green development efficiency of the Yangtze River Delta in China using a DEA-Malmquist model. The result shows that the green development efficiency of the Yangtze River Delta is generally on an upward trend, but varies considerably within the region. Moreover, this study analyses the influencing factors and spatial effects of green development efficiency using the spatial Durbin model, which shows that there are obvious spatial correlations and spatial dependencies in the green development efficiency of the Yangtze River Delta city cluster, and the influencing factors such as financial development and industrial structure have a positive effect on the city’s green development efficiency and have a positive spillover effect on the surrounding areas. However, technological innovation has a negative spillover effect on green development efficiency. Finally, this study proposes to improve the regional coordination mechanism of green technological innovation, guide the development of financial agglomeration and leverage the spatial spillover effect. In addition, industry structure transformation should be further facilitated, and the development of advanced manufacturing clusters should be supported.
Journal: Emerging Markets Finance and Trade
Pages: 1993-2007
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2161301
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2161301
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# input file: MREE_A_2172320_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Cheng Chen
Author-X-Name-First: Cheng
Author-X-Name-Last: Chen
Author-Name: Jian Xu
Author-X-Name-First: Jian
Author-X-Name-Last: Xu
Title: Product Competition and Firm Overcapacity: Evidence from China
Abstract: 
 We exploit the competition policy in China to test whether product competition affects firm’s overcapacity. By introducing the shock of enacting of the Chinese Anti-Monopoly Law, our difference-in-differences estimation shows that the overcapacity of firms with larger market power has a significant decrease. The possible explanations are that the product competitions significantly increase after the monopoly activities and local protectionism are prohibited, which lead to the reduction of zombie firms, and the decline of firms’ bank loans and over-investment inefficiency. The effects are more pronounced to stated-owned firms, political connected firms, firms in cities with lower regional marketization and firms under industries with less competition. Overall, this study provides timely policy implications for central regulators concerned with the outcomes of the enforcement for the anti-monopoly policy and the solutions for the overcapacity problems.
Journal: Emerging Markets Finance and Trade
Pages: 2038-2055
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2172320
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2172320
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# input file: MREE_A_2170698_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chi-Chuan Lee
Author-X-Name-First: Chi-Chuan
Author-X-Name-Last: Lee
Author-Name: Jian Zhang
Author-X-Name-First: Jian
Author-X-Name-Last: Zhang
Author-Name: Chin-Hsien Yu
Author-X-Name-First: Chin-Hsien
Author-X-Name-Last: Yu
Author-Name: Lei Fang
Author-X-Name-First: Lei
Author-X-Name-Last: Fang
Title: How Does Geopolitical Risk Affect Corporate Innovation? Evidence from China’s Listed Companies
Abstract: 
 Unlike most previous studies focused on the impact of domestic risk on firms’ innovation activities, this research places more effort on identifying whether and how geopolitical risk affected corporate innovation behavior in China over the period 2003–2019. By constructing firm-level panel data that combine financial information with data on geopolitical risk and patenting activity, we find that geopolitical risk exerts a negative impact on firms’ innovation activity through increased external financing costs and by reducing firms’ willingness to raise capital. This inhibitory effect is more pronounced for companies with high innovation capability, export-oriented firms, and firms facing higher macro-risk exposure. In addition, political connection can alleviate these restricting effects of geopolitical risk on firm innovation. Knowledge of these impacts should help firm managers, government, and policymakers to develop more efﬁcient development strategies and mitigate the impact of such risk on corporate operations.
Journal: Emerging Markets Finance and Trade
Pages: 2217-2233
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2170698
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2170698
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# input file: MREE_A_2172321_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Siqin Wang
Author-X-Name-First: Siqin
Author-X-Name-Last: Wang
Author-Name: Jun Wen
Author-X-Name-First: Jun
Author-X-Name-Last: Wen
Author-Name: Xiuyun Yang
Author-X-Name-First: Xiuyun
Author-X-Name-Last: Yang
Author-Name: Peidong Deng
Author-X-Name-First: Peidong
Author-X-Name-Last: Deng
Author-Name: Ning Wang
Author-X-Name-First: Ning
Author-X-Name-Last: Wang
Title: Impacts of Digital Trade Restrictiveness on Green Technology Innovation: An Empirical Analysis
Abstract: 
 Using data covering 50 countries from 2014 to 2018, this study investigates the impact of digital trade restrictiveness (DTR) on green technology innovation (GTI). Our findings indicate that DTR has a detrimental impact on GTI. We further show that this negative effect can be explained through channels of international technology collaboration (ITC) and international technology diffusion (ITD). Finally, our group tests results indicate that increasing innovation input, promoting democracy and setting up carbon trading markets can mitigate the negative impact of DTR on GTI.
Journal: Emerging Markets Finance and Trade
Pages: 2079-2101
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2172321
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2172321
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# input file: MREE_A_2177507_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dawei Liang
Author-X-Name-First: Dawei
Author-X-Name-Last: Liang
Author-Name: Yue Xu
Author-X-Name-First: Yue
Author-X-Name-Last: Xu
Author-Name: Yan Hu
Author-X-Name-First: Yan
Author-X-Name-Last: Hu
Author-Name: Qianqian Du
Author-X-Name-First: Qianqian
Author-X-Name-Last: Du
Title: Intraday Return Forecasts and High-Frequency Trading of Stock Index Futures: A Hybrid Wavelet-Deep Learning Approach
Abstract: 
 We propose a novel hybrid wavelet-deep learning (DB-BLSTM) model to cope with the complex periodicity and nonlinearity issues in high-frequency data, which make the traditional linear time-series prediction models not applicable and result in weak predictability. The DB-BLSTM model we initiated in the paper can significantly outperform other deep learning models in predicting the intraday trends of Chinese stock index futures for both in-sample and out-of-sample tests. Trading strategies based on the DB-BLSTM models can achieve excellent excess returns and impressive return compensation relative to risks, and at the same time they can effectively control drawdown risk.
Journal: Emerging Markets Finance and Trade
Pages: 2118-2128
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2177507
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2177507
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# input file: MREE_A_2171726_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yihan Wang
Author-X-Name-First: Yihan
Author-X-Name-Last: Wang
Author-Name: Zhihong Zhang
Author-X-Name-First: Zhihong
Author-X-Name-Last: Zhang
Author-Name: Fan Zhang
Author-X-Name-First: Fan
Author-X-Name-Last: Zhang
Author-Name: Yiying Wang
Author-X-Name-First: Yiying
Author-X-Name-Last: Wang
Title: When Controlling Persons Have Shelters: The Effect of Foreign Residency Rights on Tax Credit Ratings
Abstract: 
 This paper examines the influence of controlling persons’ foreign residency rights on corporate tax credit ratings (TCRs). The empirical results show that corporate TCRs decrease when the controlling person obtains foreign residency rights. The mechanism analysis indicates that there are three main channels, i.e. more tax avoidance behaviors, more earnings management and a higher frequency of violations. Our findings demonstrate that the controlling person’s foreign residency rights are an indicator worthy of supervisors’ attention. Tax authorities could strengthen the inspection of foreign-related tax activities.
Journal: Emerging Markets Finance and Trade
Pages: 2252-2268
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2171726
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2171726
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# input file: MREE_A_2167488_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fengli Kang
Author-X-Name-First: Fengli
Author-X-Name-Last: Kang
Author-Name: Qiaomao Yu
Author-X-Name-First: Qiaomao
Author-X-Name-Last: Yu
Author-Name: Mengfei Wan
Author-X-Name-First: Mengfei
Author-X-Name-Last: Wan
Title: Corporate Innovation Incentive Policy During Business Cycles: Fiscal Subsidies or Tax Incentives?
Abstract: 
 This paper empirically tests the incentive effect of fiscal policy on corporate innovation from 2007 to 2019 in China. With data from A-share-listed companies in the China Stock Market & Accounting Research (CSMAR) and Wind databases and GDP data from the National Bureau of Statistics of China (NBSC), the paper uses the Hodrick – Prescott (HP) filter method and a panel fixed effects model to empirically test the incentive effect of fiscal and tax policies on corporate innovation, compares the incentive differences between tax incentives and fiscal subsidies across different business cycles, and conducts heterogeneity analysis. The study finds that although fiscal subsidies and tax incentives promote enterprise innovation, the innovation incentive effect of fiscal subsidies is greater during an economic downturn than during an upturn. In contrast, tax incentives are stronger during an economic upturn than during a downturn. The results of this research may help to develop economic policies and to guide the precise implementation of tax and fee reductions.
Journal: Emerging Markets Finance and Trade
Pages: 2190-2203
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2167488
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2167488
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# input file: MREE_A_2179875_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yao Gao
Author-X-Name-First: Yao
Author-X-Name-Last: Gao
Author-Name: Jian Xu
Author-X-Name-First: Jian
Author-X-Name-Last: Xu
Title: Bank Competition and Firm Labor Investment Efficiency: Evidence from China
Abstract: 
 This study examines the impacts of bank competition on firms’ labor investment efficiency. Using geographic location data of commercial bank branches in China, we find that the firms located within more bank branches, namely facing greater bank competition, have higher labor investment efficiency. The possible explanation behind this effect is that the rising bank competition intensity leads to increases in firms’ loans from local banks and decreases in their financial constraints, which improve firms’ labor investment efficiency. Our findings are more pronounced in non-state-owned firms, small firms, and firms with low cash ratios. We provide timely policy implications for central regulators concerned with the consequences of banking deregulation on firms’ labor investment performance.
Journal: Emerging Markets Finance and Trade
Pages: 2283-2297
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2179875
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2179875
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# input file: MREE_A_2168477_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ying Tang
Author-X-Name-First: Ying
Author-X-Name-Last: Tang
Author-Name: Lu Xu
Author-X-Name-First: Lu
Author-X-Name-Last: Xu
Author-Name: Shijun Guo
Author-X-Name-First: Shijun
Author-X-Name-Last: Guo
Author-Name: Andrea Moro
Author-X-Name-First: Andrea
Author-X-Name-Last: Moro
Title: Trade Credit and Firm Efficiency: Evidence from Chinese Manufacturing Firms
Abstract: 
 Our work focuses on the impact of trade credit financing on firm efficiency exploiting a sample of Chinese manufacturing listed firms for the period 2004 to 2018. We find that trade credit significantly improves firm efficiency. This positive association is stronger in firms located in regions with higher levels of social trust, during periods with higher economic policy uncertainty and in times of economic downturn. We reveal three economic mechanisms underlying our baseline findings: alleviating financial constraints, mitigating agency conflicts, and reducing transaction costs.
Journal: Emerging Markets Finance and Trade
Pages: 2204-2216
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2168477
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2168477
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# input file: MREE_A_2172319_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuming Zhang
Author-X-Name-First: Yuming
Author-X-Name-Last: Zhang
Author-Name: Han Liu
Author-X-Name-First: Han
Author-X-Name-Last: Liu
Author-Name: Shuang Li
Author-X-Name-First: Shuang
Author-X-Name-Last: Li
Author-Name: Chao Xing
Author-X-Name-First: Chao
Author-X-Name-Last: Xing
Title: The Digital Transformation Effect in Trade Credit Uptake: The Buyer Perspective
Abstract: 
 Combined with buyer market theory, we attempt to analyze the relationship between digital transformation and trade credit financing from an advantage acquisition perspective. Using financial and text data from the annual reports of Chinese listed companies from 2010–2020, we find that digital transformation has a significant promotion effect on firm trade credit financing. This result is robust after accounting for a series of endogeneity and other tests. A further examination reveals that operation efficiency, information transparency, and reputation are inducement mechanisms. We also find that the promotion effect is particularly more pronounced for state-owned firms in areas with sound product market development and supply chains with lower supplier concentration. These findings have implications for understanding the role played by digital transformation in trade credit financing.
Journal: Emerging Markets Finance and Trade
Pages: 2056-2078
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2172319
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2172319
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# input file: MREE_A_2154599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sangwon Lee
Author-X-Name-First: Sangwon
Author-X-Name-Last: Lee
Title: Sectoral Impact of the COVID-19 Outbreak and Value of Business Group Affiliated Firms in Korea
Abstract: 
 
I show that chaebol-affiliated firms in industries heavily (less) affected by the COVID-19 outbreak experienced on average larger (smaller) declines in value than did their industry peers during the COVID-19 “crisis” period in early 2020. Although those in heavily affected industries saw larger increases in value during the “recovery” period in mid-2020, they did not outperform similar non-chaebol firms throughout the crisis and recovery periods, unlike chaebol-affiliated firms in less affected industries. I also find evidence that chaebol-affiliated firms in less affected industries were subsidized by other affiliates via related party transactions following the COVID-19 outbreak. Overall, I document that the value of business group affiliation during a crisis for minority shareholders is conditional on industry performance.
Journal: Emerging Markets Finance and Trade
Pages: 2008-2024
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2154599
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2154599
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# input file: MREE_A_2147780_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Amrit Panda
Author-X-Name-First: Amrit
Author-X-Name-Last: Panda
Author-Name: Soumya Guha Deb
Author-X-Name-First: Soumya
Author-X-Name-Last: Guha Deb
Title: IPO Underpricing and Short-Term Performance: A Comparative Analysis During the COVID-19 Pandemic and Tranquil Periods in a Cross-Country Setting
Abstract: 
 
This study presents a comparative analysis of under-pricing and short-term performance of IPOs issued during the COVID-19 pandemic period and the pre-pandemic tranquil decade (2009 to 2019) in a cross-country setup. We find evidence of higher underpricing of IPOs issued during COVID-19 which, however, gets corrected shortly. Factors, such as underwriter reputation, percentage of the net proceeds to the company, new shareholder participation, industry affiliation of the issuing firm and the severity of the pandemic in respective countries seem to affect these patterns. Our results are robust and remain mostly unaltered through a series of robustness tests.
Journal: Emerging Markets Finance and Trade
Pages: 2145-2159
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2022.2147780
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2147780
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# input file: MREE_A_2172317_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ruping Wang
Author-X-Name-First: Ruping
Author-X-Name-Last: Wang
Author-Name: Zhen Pan
Author-X-Name-First: Zhen
Author-X-Name-Last: Pan
Author-Name: Liu Yang
Author-X-Name-First: Liu
Author-X-Name-Last: Yang
Title: The “Debt Trap” or the “Benefit Pie” View of China’s Belt and Road Initiative on Host Countries: Evidence from Chinese Enterprises’ Outward Foreign Direct Investment
Abstract: 
 The Belt and Road Initiative (BRI) attracts many Chinese multinational enterprises (MNEs) to invest abroad, but China’s intention behind this policy has raised heated disputes. Drawing on an institution-based view and theories of emerging market multinational enterprises (EMNEs), we analyze whether the initiative undermines host countries’ financial conditions through outward foreign direct investment (OFDI). Using the time-varying Difference-in-Differences model based on Chinese enterprises’ investment data from 2009 to 2020, we find the BRI facilitates Chinese OFDI to host countries but with no significant increase in distressed debt. Chinese OFDI eschews heavily indebted countries and shows little relevance to the growth of the BRI countries’ non-repayable debt, which contradicts the “debt-trap” argument.
Journal: Emerging Markets Finance and Trade
Pages: 2269-2282
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2172317
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2172317
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# input file: MREE_A_2171263_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jiajie Yu
Author-X-Name-First: Jiajie
Author-X-Name-Last: Yu
Author-Name: Shuang Meng
Author-X-Name-First: Shuang
Author-X-Name-Last: Meng
Title: Survive and Thrive: The Duration of Cultural Goods Exports from China
Abstract: 
 This paper employs survival analysis to examine the duration of cultural goods exports from China. We use disaggregated product-level data from 1995 to 2020 to explore the export dynamics of Chinese cultural goods and investigate the determinants. We find that most of the export relationships are short-lived, with a median duration of one year. However, if Chinese cultural goods can survive in the foreign market during the early stage, they will face a lower probability of failure and tend to survive for a longer period. In addition, we show that cultural distance is more of an obstacle to the exports of cultural goods under the framework of the gravity model. These findings survive a variety of robustness checks and have important policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 2025-2037
Issue: 7
Volume: 59
Year: 2023
Month: 05
X-DOI: 10.1080/1540496X.2023.2171263
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2171263
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# input file: MREE_A_2026767_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Changyuan Xia
Author-X-Name-First: Changyuan
Author-X-Name-Last: Xia
Author-Name: Junjie Yang
Author-X-Name-First: Junjie
Author-X-Name-Last: Yang
Author-Name: Na He
Author-X-Name-First: Na
Author-X-Name-Last: He
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Title: COVID-19, Supply Chain Breakdowns, and Firm Value
Abstract: 
 By exploiting the lockdown of Wuhan on January 23, 2020, during the COVID-19 pandemic and the disclosure of public firms’ top five suppliers, we examine the impact of a supply chain disruption on stock returns. Our findings suggest that firms with major suppliers in Wuhan experience significantly worse cumulative abnormal returns than those whose suppliers are not located in Wuhan. The results are robust to alternative estimation methods, event windows, and supply chain disruption metrics. Our findings suggest that supply chain disruption contributes to negative stock returns and highlight the importance of supply chain disruption on firm value.
Journal: Emerging Markets Finance and Trade
Pages: 2370-2382
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2022.2026767
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2026767
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# input file: MREE_A_1990750_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rui Wang
Author-X-Name-First: Rui
Author-X-Name-Last: Wang
Author-Name: Haomin Wang
Author-X-Name-First: Haomin
Author-X-Name-Last: Wang
Author-Name: Yi Chen
Author-X-Name-First: Yi
Author-X-Name-Last: Chen
Title: COVID-19 Shock and Interest Expense Stickiness: Evidence from Chinese Listed Firms
Abstract: 
 The COVID-19 pandemic subjected firms to liquidity pressure and financing difficulties. Our study examines bank credit availability in response to the pandemic by testing the firm’s interest expense stickiness. We found that interest expense stickiness was widespread in Chinese listed firms, particularly in state-owned enterprises and large firms. Moreover, interest expenses were stickier during COVID-19 compared to before COVID-19. Interest expense stickiness gradually increased in private and small firms after the COVID-19, indicating that banks provided more credit support for these firms after their sharp revenue declines. Finally, we found that the stronger interest expense stickiness could improve firm’s performance.
Journal: Emerging Markets Finance and Trade
Pages: 2356-2369
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2021.1990750
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1990750
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# input file: MREE_A_2186176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tian Ma
Author-X-Name-First: Tian
Author-X-Name-Last: Ma
Author-Name: Cunfei Liao
Author-X-Name-First: Cunfei
Author-X-Name-Last: Liao
Author-Name: Fuwei Jiang
Author-X-Name-First: Fuwei
Author-X-Name-Last: Jiang
Title: Global, Developed and Emerging Stock Market: Which Characteristic Matters?
Abstract: 
 This paper compares the explanations and predictabilities of 35 firm-level characteristics in stock returns between developed and ṆṆemerging stock markets using instrumented principal components analysis (IPCA). In contrast to the weak performance of the global model in each region, the local model performs better with lower mispricing errors at the individual and portfolio levels and exhibits significant differences across markets. Eleven characteristics significantly contribute to the global model’s performance, and each region has unique important characteristics, such as the change in gross property, plants, and equipment plus inventory in developed markets and the sale-to-book enterprise value in emerging markets. The incremental predictability of local characteristics is approximately 18% in developed regions and 7% in emerging markets. Openness and culture help explain the pricing differences in the local characteristics and factor models.
Journal: Emerging Markets Finance and Trade
Pages: 2617-2636
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2186176
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2186176
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# input file: MREE_A_2192346_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lu Yang
Author-X-Name-First: Lu
Author-X-Name-Last: Yang
Author-Name: Shigeyuki Hamori
Author-X-Name-First: Shigeyuki
Author-X-Name-Last: Hamori
Author-Name: Xiaojing Cai
Author-X-Name-First: Xiaojing
Author-X-Name-Last: Cai
Title: A Multiple Timescales Conditional Causal Analysis on the Carbon-Energy Relationship: Evidence from European and Emerging Markets
Abstract: 
 This study aims to investigate the nexus between European and emerging markets in terms of multiple-timescale conditional analysis of the carbon-energy relationship. The findings identified the price movements of fossil fuels, Granger-caused movements in the carbon price, and movements in the carbon price Granger-caused movements in the electricity price. Furthermore, it was determined that in the long term, the crude oil and gas markets may increase and the coal market may decrease their causal influence on the carbon market. Finally, the role of the carbon market in the conditional Granger-causal network was observed to weaken during Phase III of the European Union Emissions Trading Scheme. These findings imply asymmetric information spillover between the European and emerging markets, particularly in the long term.
Journal: Emerging Markets Finance and Trade
Pages: 2775-2785
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2192346
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2192346
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# input file: MREE_A_2190845_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maria Semenova
Author-X-Name-First: Maria
Author-X-Name-Last: Semenova
Title: Do Smart Depositors Avoid Inefficient Bank Runs? An Experimental Study
Abstract: 
 This paper investigates whether being smart makes depositors less prone to getting involved in a bank run. We conduct a series of experiments with students, modeling the a-la Diamond-Dybvig deposit market with liquidity shocks, changing macroeconomic conditions, and risk-based investment technologies. Our results suggest that smarter depositors – those having better academic achievements – choose the strategy of avoiding early withdrawals more frequently, adding to the evidence that higher financial literacy may prevent coordination failures in deposit markets. We also suggest that panic withdrawals are more probable in markets with poorer economic conditions, but depositors show weak sensitivity to bank investment risks.
Journal: Emerging Markets Finance and Trade
Pages: 2710-2726
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2190845
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2190845
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# input file: MREE_A_1974392_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jyh-Horng Lin
Author-X-Name-First: Jyh-Horng
Author-X-Name-Last: Lin
Author-Name: Ching-Hui Chang
Author-X-Name-First: Ching-Hui
Author-X-Name-Last: Chang
Author-Name: Shi Chen
Author-X-Name-First: Shi
Author-X-Name-Last: Chen
Title: Risk-averse insurer capped-risk sensitive lending during the COVID-19 pandemic
Abstract: 
 This paper develops a contingent claim model of a risk-averse life insurer’s equity with various borrowing-firm credit risk features. The insurer’s lending function with various financial technology involvements creates the need to model equity as a capped/naked call option in insurer-borrowing firms. As a result, the insurer benefits from the capped-risk lending strategy yielding a higher interest margin. However, either the severe novel coronavirus (COVID-19) pandemic or the substantial risk aversion deteriorates policyholder protection. In addition, stringent insurer capital regulation reduces the insurer’s interest margin, thus increasing policyholder protection and contributing to insurance stability but discouraging insurer financial technology involvements.
Journal: Emerging Markets Finance and Trade
Pages: 2344-2355
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2021.1974392
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1974392
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# input file: MREE_A_2186171_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chen Ma
Author-X-Name-First: Chen
Author-X-Name-Last: Ma
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Author-Name: Yixin Chen
Author-X-Name-First: Yixin
Author-X-Name-Last: Chen
Title: Parent–Subsidiary Company Geographic Distance and Corporate Innovation Performance: Inhibitive or Stimulative?
Abstract: 
 The implementation of innovation-driven and regional collaborative development strategies of China has injected new vitality into corporate trans-regional operation and collaborative innovation. Accordingly, listed companies expand the distance between parent and subsidiary in space geographically. This paper discusses the effect of geographic distance between parent and subsidiary companies on corporate innovation. The results show that parent – subsidiary company geographic distance has a significant positive effect on corporate innovation performance. The results still hold following a battery of endogeneity test and robustness check. We also find that government subsidies, information acquisition, and construction of internal capital markets are the mechanisms for the effect to work. In addition, the stimulative effect of parent – subsidiary geographic distance on corporate innovation performance is more pronounced for SOEs, under better intellectual property protection, and for eastern and central China. This paper not only refines the research on corporate innovation at the spatial level for parent and subsidiary companies, but also provides a framework for corporations to implement regional collaborative development and to adhere to a belief in innovation. It can also assist the government in creating a unified national market.
Journal: Emerging Markets Finance and Trade
Pages: 2507-2532
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2186171
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2186171
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# input file: MREE_A_2185095_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Seiwoong Hong
Author-X-Name-First: Seiwoong
Author-X-Name-Last: Hong
Author-Name: Frederick Dongchuhl Oh
Author-X-Name-First: Frederick Dongchuhl
Author-X-Name-Last: Oh
Author-Name: Donglim Shin
Author-X-Name-First: Donglim
Author-X-Name-Last: Shin
Title: Internal Capital Markets and R&D Investment: Evidence from Korean Chaebols
Abstract: 
 This study examines how internal capital markets (ICMs) within business groups affect the financing of research and development (R&D) investments, focusing on Korean chaebols. We find that, on average, chaebol-affiliated firms exhibit lower R&D investment – cash flow sensitivity than standalone firms do. We also find that an affiliated firm’s R&D expenditure is significantly positively associated with the net amount of equity capital received from other affiliates but not significantly related to its own cash flow. These findings indicate that ICMs effectively mitigate affiliated firms’ R&D financing constraints. We further find that this financing constraint mitigation is more pronounced during financial crises and for high-tech firms. Finally, we find that, for chaebols, greater ICM effectiveness leads to better innovative performance. Overall, our study highlights the importance of ICMs for promoting corporate innovation via the reduction of R&D financing constraints.
Journal: Emerging Markets Finance and Trade
Pages: 2493-2506
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2185095
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2185095
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# input file: MREE_A_2072201_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuming Zhang
Author-X-Name-First: Yuming
Author-X-Name-Last: Zhang
Author-Name: Chao Xing
Author-X-Name-First: Chao
Author-X-Name-Last: Xing
Author-Name: Xiaohan Guo
Author-X-Name-First: Xiaohan
Author-X-Name-Last: Guo
Title: The Shielding Effect of Access to Finance on Small and Medium-Sized Enterprises during the COVID-19 Crisis: Comparing Fintech and Traditional Finance
Abstract: 
 The COVID-19 outbreak has caused a considerable cash crunch among small and medium-sized enterprises (SMEs). In this context, we explore whether financial technology (fintech) and traditional finance could produce a shielding effect on SMEs to reduce the impact of COVID-19. Utilizing a unique dataset of China’s SMEs in the pre- and post-periods of the COVID-19 pandemic in 2020, we find that in regions with a well-developed fintech and traditional finance environment and in SMEs that utilize more fintech and traditional finance instruments, the pandemic has had less of an impact on the cash shortage. More importantly, this study indicates that fintech is more effective in reducing the negative impact of the pandemic and helping SMEs recover in the post-pandemic period. Our analyses may shed light on the crisis management and economic reconstitution of SMEs.
Journal: Emerging Markets Finance and Trade
Pages: 2383-2397
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2022.2072201
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2072201
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# input file: MREE_A_2126277_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Viral V. Acharya
Author-X-Name-First: Viral V.
Author-X-Name-Last: Acharya
Author-Name: V. Ravi Anshuman
Author-X-Name-First: V. Ravi
Author-X-Name-Last: Anshuman
Author-Name: K. Kiran Kumar
Author-X-Name-First: K. Kiran
Author-X-Name-Last: Kumar
Title: Foreign Fund Flows and Equity Prices During COVID-19: Evidence from India
Abstract: 
 We study the period of the COVID-19 outbreak to assess the impact of foreign institutional investor (FII) flows on asset prices in an emerging market. In a dataset of stock-level foreign fund flows on Indian equities, we show that stocks experiencing abnormally high innovations in foreign fund flows face a permanent price increase (an “information” effect), whereas stocks experiencing abnormally low (negative) innovations in foreign fund flows suffer a partly transient price decline. During the COVID-19 outbreak, the immediate price effects were exaggerated and followed by higher transient volatility. Our methodology shows the efficacy of stabilization policies, initiated notably by the Federal Reserve, in dampening the relation of foreign fund flows and equity prices in the immediate aftermath of the COVID-19 outbreak.
Journal: Emerging Markets Finance and Trade
Pages: 2422-2439
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2022.2126277
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2126277
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# input file: MREE_A_2190842_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jian Fu
Author-X-Name-First: Jian
Author-X-Name-Last: Fu
Author-Name: Shiying Ding
Author-X-Name-First: Shiying
Author-X-Name-Last: Ding
Author-Name: Xiaofen Yu
Author-X-Name-First: Xiaofen
Author-X-Name-Last: Yu
Title: How to Increase the Participation of Private Organizations in the Construction of Affordable Housing? Evidence from Hangzhou, China
Abstract: 
 The participation of private organizations in the construction of affordable housing is important to ensure a sustainable housing development. This paper uses structural equation modeling (SEM) to investigate the main determinants of private organizations’ participation in affordable housing in Hangzhou, China. Our results show that both internal factors (such as value identity, sense of responsibility, profit-seeking tendency, herd mentality, size of organization and knowledge, and experience) and external factors (such as legal system, project profit, policy incentive, financial support, and supporting facilities) significantly impact the participation of private organizations in the construction of affordable housing. Policy implications of these findings are discussed.
Journal: Emerging Markets Finance and Trade
Pages: 2440-2455
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2190842
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2190842
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# input file: MREE_A_1931113_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yifei Gong
Author-X-Name-First: Yifei
Author-X-Name-Last: Gong
Author-Name: Yanchun Xia
Author-X-Name-First: Yanchun
Author-X-Name-Last: Xia
Author-Name: Xuehua Xia
Author-X-Name-First: Xuehua
Author-X-Name-Last: Xia
Author-Name: Yan Wang
Author-X-Name-First: Yan
Author-X-Name-Last: Wang
Title: Management Earnings Forecasts Bias, Internal Control, and Stock Price Crash Risk: New Evidence from China
Abstract: 
 Using a sample of Chinese listed firms over 2012–2018, we find robust evidence that management earnings forecasts bias is positively associated with crash risk, and this effect mainly exists in optimistic bias. Furthermore, higher levels of internal control can reduce management earnings forecasts bias and then reduce crash risk. Specifically, among the five components of internal control, risk assessment and communication are the main channels. In addition, the effect of internal control in weakening management earnings forecasts bias on stock price crash risk is more pronounced in firms with mandatory disclosure, timely disclosure and bad news. Our research shows that internal control plays an important role in mitigating stock price crash risk caused by management earnings forecasts bias.
Journal: Emerging Markets Finance and Trade
Pages: 2331-2343
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2021.1931113
File-URL: http://hdl.handle.net/10.1080/1540496X.2021.1931113
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# input file: MREE_A_2186175_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuqiang Cao
Author-X-Name-First: Yuqiang
Author-X-Name-Last: Cao
Author-Name: Zhe Zhang
Author-X-Name-First: Zhe
Author-X-Name-Last: Zhang
Author-Name: Ke Peng
Author-X-Name-First: Ke
Author-X-Name-Last: Peng
Author-Name: Lihua Liu
Author-X-Name-First: Lihua
Author-X-Name-Last: Liu
Author-Name: Meiting Lu
Author-X-Name-First: Meiting
Author-X-Name-Last: Lu
Title: The Establishment of Circuit Courts and Corporate Fraud
Abstract: 
 This paper examines the impact of the establishment of circuit courts on corporate fraud. Using a quasi-natural experiment in China and the difference-in-differences approach, we find that corporate fraud is significantly lower following the establishment of circuit courts. The reduction in fraud is more pronounced for companies with poor internal and external governance and weak information disclosures. The mechanism analysis shows that circuit courts increase litigation risks faced by companies and deter corporate fraud. Overall, the findings suggest that circuit courts are an effective legal institution to constrain corporate fraud.
Journal: Emerging Markets Finance and Trade
Pages: 2600-2616
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2186175
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2186175
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# input file: MREE_A_2186173_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hui Zhou
Author-X-Name-First: Hui
Author-X-Name-Last: Zhou
Title: Can Short Selling Improve the Quality of Information Disclosure in Clarification Announcements by Firms Faced with Market Rumors?
Abstract: 
 Using a sample of clarification announcements by Chinese listed companies and a difference-in-differences approach, this paper discusses the impact of short selling on corporate clarifications. The results show that short selling pressure disciplines managers’ clarification behaviors. Pilot firms are more likely than non-pilot firms to release timely, detailed, and technical clarification announcements, indicating that the ex-ante pressure of short selling improves the quality of information disclosure in clarifications. The results are robust to the use of a propensity score matching sample, the exclusion of extraordinary sample periods, controlling for the category of rumors, and the adoption of the double selection approach. The disciplinary effect of short selling on the quality of information disclosure in clarifications is more significant for companies with higher CEO equity-based incentive ratios, higher stock liquidity, and higher media coverage than for other companies. More intensive short selling activities, implying an increased ex-post threat of short selling, also lead to improvement in the disclosure of clarifications. Additional research shows that the improved disclosure increases stock price informativeness, and short selling enhances this effect.
Journal: Emerging Markets Finance and Trade
Pages: 2548-2576
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2186173
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2186173
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# input file: MREE_A_2190848_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yan Yu
Author-X-Name-First: Yan
Author-X-Name-Last: Yu
Author-Name: Yi-Tsung Lee
Author-X-Name-First: Yi-Tsung
Author-X-Name-Last: Lee
Title: Can Inquiry Letters Make R&D Information Pricing More Effective? Evidence from China
Abstract: 
 There are information transfer motives and earnings management motives for the disclosure of R&D expense information. These two motives contradict each other, which can cause distortion of corporate R&D expense information and lead to mispricing of R&D information. In this paper, we investigate the market reaction to R&D expense inquiry letters (hereafter, RDILs) and their impact mechanism from the perspective of correcting R&D information mispricing by using Chinese A-share listed companies from 2015 to 2019. We find that RDILs have a significantly negative market reaction, suggesting that they have additional information content. Mechanism analyses indicate that this information content is affected by the inquiry letter characteristics and the R&D characteristics of the inquired firm. The findings of this paper have implications for how developing countries can use capital markets to stimulate corporate innovation, and for the establishment of proactive inquiry mechanisms to address the mispricing of innovation information. Exchanges in other countries should consider their use.
Journal: Emerging Markets Finance and Trade
Pages: 2747-2774
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2190848
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2190848
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# input file: MREE_A_2186174_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jie Zhang
Author-X-Name-First: Jie
Author-X-Name-Last: Zhang
Author-Name: Jie Sun
Author-X-Name-First: Jie
Author-X-Name-Last: Sun
Author-Name: Wen Li
Author-X-Name-First: Wen
Author-X-Name-Last: Li
Author-Name: Yun Zhang
Author-X-Name-First: Yun
Author-X-Name-Last: Zhang
Title: Research on Implementation Effectiveness of Command-and-Control Environmental Regulations: Evidence from the Basin Ecological Compensation Policy of China
Abstract: 
 Using the Propensity Score Matching (PSM) and Differences-in-Differences (DID) models, this study evaluates the effects of the Basic Ecological Compensation (BEC), an incentivized command-and-control environment regulation formulated by the Weihe River Basin of China for environmental protection, on the comprehensive performance of prefecture-level cities along the Weihe River Basin from 2009 to 2019. Results show that the BEC policy can improve the performance of the Weihe River Basin and that fiscal decentralization has a positive regulatory effect on the policy. We suggest improving compensation mechanisms and standards, appropriately intensifying fiscal decentralization, and popularizing successful experiences of provinces.
Journal: Emerging Markets Finance and Trade
Pages: 2577-2599
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2186174
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2186174
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# input file: MREE_A_2186172_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yubin Wang
Author-X-Name-First: Yubin
Author-X-Name-Last: Wang
Author-Name: Xiaoyang Wang
Author-X-Name-First: Xiaoyang
Author-X-Name-Last: Wang
Author-Name: Jianhe Liu
Author-X-Name-First: Jianhe
Author-X-Name-Last: Liu
Author-Name: Mingyuan Xu
Author-X-Name-First: Mingyuan
Author-X-Name-Last: Xu
Author-Name: Yuanfang Zang
Author-X-Name-First: Yuanfang
Author-X-Name-Last: Zang
Title: What Leads to the Changes of Volatility Spillover Effect Between Chinese and American Soybean Futures Markets?
Abstract: 
 This paper examines the volatility spillover between the soybean futures contracts traded in the US Chicago Board of Trade (CBOT) and China Dalian Commodity Exchange (DCE) through a normalized Copula – GARCH(1,1) - t model with structural changes. The structural change points are identified through a combination of Bayesian diagnosis with Z-test. The study finds that the volatility spillover exists between the DCE and CBOT soybean futures and weakens through time. We further identify seven structural change points in the volatility spillover relationship, suggesting it is going through significant structural changes. The changes are related to major social-political events including the trade conflict between China and the US, the COVID-19 pandemic and the Russia-Ukraine war.
Journal: Emerging Markets Finance and Trade
Pages: 2533-2547
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2186172
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2186172
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# input file: MREE_A_2108317_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wei Chen
Author-X-Name-First: Wei
Author-X-Name-Last: Chen
Author-Name: Qian Zhao
Author-X-Name-First: Qian
Author-X-Name-Last: Zhao
Author-Name: Matthew Quayson
Author-X-Name-First: Matthew
Author-X-Name-Last: Quayson
Author-Name: Hongyan Du
Author-X-Name-First: Hongyan
Author-X-Name-Last: Du
Author-Name: Haomin Wang
Author-X-Name-First: Haomin
Author-X-Name-Last: Wang
Title: Electricity Quality Emergency Investment with a Bargaining Contract in the Electricity Supply Chain under the COVID-19 Pandemic
Abstract: 
 This paper explores the decentralized, centralized and bargaining models of a supply chain involving an electricity generator and a retailer. We found that the investment cost coefficient negatively impacts the supply chain profits but positively affects price decisions. In contrast, the probability of meeting the COVID-19 emergency positively impacts the supply chain profit and negatively affects price decisions. We contribute by designing a bargaining contract for energy supply chain firms to improve profits on low investment, thereby improving their financial health and competitive advantage. The results imply that financial managers can bridge the revenue gap in COVI9 19 period.
Journal: Emerging Markets Finance and Trade
Pages: 2398-2421
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2022.2108317
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2108317
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# input file: MREE_A_2181071_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shengyi Yang
Author-X-Name-First: Shengyi
Author-X-Name-Last: Yang
Title: Decision-Making of Discretionary Goodwill Impairments—Evidence from Publicly Listed Firms in China
Abstract: 
 With the wave of M&A, total amount of goodwill balances has been accumulated to an enormous number in Chinese capital market. This study uses new independent variables to examine the determinants of goodwill impairments and to study the decision-making of discretionary goodwill impairments. First, this study investigates short-term and long-term market reaction of goodwill impairment announcements from 2019 to 2021 by using the event study method. Results indicate that goodwill impairments are only significantly associated with short-term cumulative abnormal return, on average. Then, based on the panel data of companies with goodwill balance from 2007 to 2020, logistic regression findings indicate that the companies without risk of financial loss have a higher probability of withdrawing goodwill impairments, on average; companies with stable operation have a higher probability of withdrawing goodwill impairments, on average. Result shows the discretion was used in goodwill impairments decision-making.
Journal: Emerging Markets Finance and Trade
Pages: 2470-2492
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2181071
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2181071
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# input file: MREE_A_2227014_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gang Kou
Author-X-Name-First: Gang
Author-X-Name-Last: Kou
Title: Financial Innovation Under COVID-19: Lessons Learned & Solutions
Journal: Emerging Markets Finance and Trade
Pages: 2329-2330
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2227014
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2227014
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# input file: MREE_A_2190841_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lei Wang
Author-X-Name-First: Lei
Author-X-Name-Last: Wang
Author-Name: Zhiying Liu
Author-X-Name-First: Zhiying
Author-X-Name-Last: Liu
Author-Name: Yixian Wang
Author-X-Name-First: Yixian
Author-X-Name-Last: Wang
Author-Name: Wei Ai
Author-X-Name-First: Wei
Author-X-Name-Last: Ai
Author-Name: Yunbi An
Author-X-Name-First: Yunbi
Author-X-Name-Last: An
Title: Executive Compensation Incentives and Corporate R&D Investments: An Analysis Based on the Moderating Effect of Managerial Power
Abstract: 
 Using data on Chinese A-share listed companies, this paper explores the interactive effects of managerial power and executive compensation incentives on corporate R&D investments. We find that higher executive monetary compensation and perquisite consumption help increase corporate R&D investments, while a large compensation gap within the management team can inhibit corporate R&D investments. We further show that managerial power has different moderating effects on the relation between management incentives and corporate R&D investments. Managerial power weakens the positive effects of explicit and implicit incentives of executives on corporate R&D investments, while it strengthens the negative effect of the compensation gap within the management team on corporate R&D investments.
Journal: Emerging Markets Finance and Trade
Pages: 2664-2693
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2190841
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2190841
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# input file: MREE_A_2190847_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kuo Zhou
Author-X-Name-First: Kuo
Author-X-Name-Last: Zhou
Author-Name: Yunqing Tao
Author-X-Name-First: Yunqing
Author-X-Name-Last: Tao
Author-Name: Shuai Wang
Author-X-Name-First: Shuai
Author-X-Name-Last: Wang
Author-Name: Haotian Luo
Author-X-Name-First: Haotian
Author-X-Name-Last: Luo
Title: Does Green Finance Drive Environmental Innovation in China?
Abstract: 
 The importance of green finance has been fully discussed, however, there is surprisingly little direct evidence of the effects of green finance on eco-friendly practices in firms. We explore the effect of green finance on environmental innovation at the firm level using unbalanced data on Chinese A-share listed firms excluding financial firms during 2008–2019. We find compelling evidence of a significant positive effect of green finance on firm environmental innovation. An examination of underlying mechanisms further show that green finance can be effective in by easing the financing constraints, alleviating information asymmetric, and strengthening environmental regulation. Our analyses also show that the effect is particularly pronounced in subsamples of central and western China, non-state-owned enterprises (non-SOEs), and large-sized firms. This paper proves the Porter effect of green finance and provides timely implications for regulators concerned with green development.
Journal: Emerging Markets Finance and Trade
Pages: 2727-2746
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2190847
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2190847
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# input file: MREE_A_2186747_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qi Zhang
Author-X-Name-First: Qi
Author-X-Name-Last: Zhang
Author-Name: Yao Zheng
Author-X-Name-First: Yao
Author-X-Name-Last: Zheng
Author-Name: Cong Zhou
Author-X-Name-First: Cong
Author-X-Name-Last: Zhou
Title: Disclosing for Promotion or Perquisites: Local Government Financial Disclosure Strategy
Abstract: 
 How to stimulate local officials to improve the financial disclosure quality is a fundamental question of the public accountability theory. Based on the manually collected data on disclosure quality of provincial final accounts report in China, this study examines the influence of provincial leaders’ utility goals on final accounts disclosure strategies. We find that provincial leaders voluntarily disclose higher-quality final accounts information in the first and last years of their tenure relative to other years. Furthermore, excellent governance performance and stronger position change expectations significantly increase the improvement degree of final accounts disclosure quality in the last years of the term. We also document that officials’ voluntary improvement in the final accounts disclosure quality directly leads to an increase in public satisfaction and trust in the government. Moreover, the voluntary improvement in the final accounts disclosure quality significantly strengthens the positive relationship between the governance performance and the promotion probability. Overall, based on the distinction between mandatory disclosure requirements and officials’ voluntary disclosure motives, this paper, from the perspective of officials’ utility goals, empirically investigates the micrologic behind local government’s financial disclosure decisions in authoritarian countries.
Journal: Emerging Markets Finance and Trade
Pages: 2637-2663
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2186747
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2186747
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# input file: MREE_A_2190844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhaobin Fan
Author-X-Name-First: Zhaobin
Author-X-Name-Last: Fan
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Author-Name: Ying Zhou
Author-X-Name-First: Ying
Author-X-Name-Last: Zhou
Title: The Asymmetric Effects of Deep Preferential Trade Agreements on Bilateral GVC Participation Levels
Abstract: 
 Although deepening of preferential trade agreements (PTAs) can promote the global value chain (GVC) participation of member countries, we argue that this effect is asymmetric for countries, which are at different levels of economic development. Specifically, deepening of PTAs has a stronger positive impact on GVC participation level of developing member countries than that of developed member countries. Furthermore, compared to the commodity provisions of PTAs, deepening of the factor provisions is more likely to generate a significant asymmetric effect. Empirical analysis using panel data, which covers 43 countries (including some emerging economies) over the 2000–2014 period, supports our predictions. Our findings are also confirmed by a series of robustness tests including the consideration for potential endogeneity issue.
Journal: Emerging Markets Finance and Trade
Pages: 2694-2709
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2190844
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2190844
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# input file: MREE_A_2181070_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jishun Zhou
Author-X-Name-First: Jishun
Author-X-Name-Last: Zhou
Author-Name: Xiaoyu Hong
Author-X-Name-First: Xiaoyu
Author-X-Name-Last: Hong
Title: What You Import Matters
Abstract: 
 This study examines whether the type of imported good affects manufacturing upgrading. Based on city-level data for China from 2003 to 2013, we show that the expansion of imports significantly promotes the upgrading of the manufacturing industry. Parts imports, capital goods imports, and consumer goods imports are positively associated with manufacturing upgrading, while primary goods imports have a negative impact. The mechanism test shows that technology improvement and consumption expansion are important channels. The regression results at the disaggregated industry level further confirm these channels.
Journal: Emerging Markets Finance and Trade
Pages: 2456-2469
Issue: 8
Volume: 59
Year: 2023
Month: 06
X-DOI: 10.1080/1540496X.2023.2181070
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2181070
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# input file: MREE_A_2216841_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yun-Zhi Hu
Author-X-Name-First: Yun-Zhi
Author-X-Name-Last: Hu
Author-Name: Hai-Feng Wang
Author-X-Name-First: Hai-Feng
Author-X-Name-Last: Wang
Author-Name: Yu-Ting Wang
Author-X-Name-First: Yu-Ting
Author-X-Name-Last: Wang
Author-Name: Xiao-Fan Hu
Author-X-Name-First: Xiao-Fan
Author-X-Name-Last: Hu
Title: Does Childhood Left-Behind Experience Affect New Generation of Migrant Workers’ Willingness to Settle in Towns and Cities?
Abstract: 
 This paper investigates whether the experience of being left during childhood affects the new generation of migrant workers’ willingness to settle in towns and cities and its internal mechanism from a life-cycle perspective. Using the 2017 China Migrants Dynamic Survey, we found that the experience of being left behind during childhood has a significantly negative impact on people’s willingness to settle in towns and cities, and it has an impact through the individual’s education level, health status, financial situation and social skills. Furthermore, heterogeneity analysis reveals that the abovementioned effects were more notable in the samples left-behind experience with female, high frequency of mobility, short period of mobility, cross-provincial, and being left behind when both parents are working in cities. These findings add to the research on population migration.
Journal: Emerging Markets Finance and Trade
Pages: 3330-3346
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2216841
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2216841
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# input file: MREE_A_2218517_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hossein Dastkhan
Author-X-Name-First: Hossein
Author-X-Name-Last: Dastkhan
Author-Name: Hanieh Salehi Rad
Author-X-Name-First: Hanieh
Author-X-Name-Last: Salehi Rad
Title: Financial Linkage via Idiosyncratic Shocks: A Case in an Emerging Market
Abstract: 
 Slow diffusion of information in inefficient markets can lead to the transmission of idiosyncratic shocks and make some financial linkages among firms. Using monthly data from 250 firms on Tehran Stock Exchange, we predict the links originated from the idiosyncratic shocks. We use the extracted links for two purposes. In the first step, we examine whether considering the idiosyncratic shocks can lead to a positive abnormal return. In addition, we investigated how the idiosyncratic shocks can help to solve the puzzle of idiosyncratic volatility in the Tehran Stock Exchange. The results show that a portfolio with more shocks yields a significant positive abnormal return. The results also show that using the average idiosyncratic shocks cannot help to solve the puzzle of idiosyncratic volatility. Since the first step results show the significant effect of slow information diffusion on asset returns, we can examine the idiosyncratic shocks as a risk propagation channel in the financial network. Using the network theory, we investigate the idiosyncratic shocks contagion in the financial market. We consider the centrality measures to identify the most vulnerable and systemically important firms and sectors in the financial system. The results show that the portfolios consisting of vulnerable firms can make an abnormal positive alpha with the expense of high systemic risk.
Journal: Emerging Markets Finance and Trade
Pages: 3347-3361
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2218517
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218517
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# input file: MREE_A_2088351_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wanfang Xiong
Author-X-Name-First: Wanfang
Author-X-Name-Last: Xiong
Author-Name: Mengming Dong
Author-X-Name-First: Mengming
Author-X-Name-Last: Dong
Author-Name: Cheng Xu
Author-X-Name-First: Cheng
Author-X-Name-Last: Xu
Title: Institutional Investors and Corporate Social Responsibility: Evidence from China
Abstract: 
 In this paper, we examine the effect of institutional investors on corporate social responsibility (CSR). We use data on Chinese listed firms from 2010–2018 and find that (1) institutional investors significantly enhance CSR; (2) institutional investors are more inclined to affect CSR engagement through improving firms’ information transparency, internal control, and making more site visits; (3) this positive relationship is more profound for state-owned enterprises, politically connected firms, and firms with low financial constraint; and (4) only long-term institutional investors can drive CSR performance. We use three instrumental variables to address endogenous concerns and the results still hold. Overall, our findings indicate that institutional investors can have a social effect.
Journal: Emerging Markets Finance and Trade
Pages: 3281-3292
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2022.2088351
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2088351
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# input file: MREE_A_2212839_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kousik Ganguly
Author-X-Name-First: Kousik
Author-X-Name-Last: Ganguly
Author-Name: Ajay Kumar Mishra
Author-X-Name-First: Ajay Kumar
Author-X-Name-Last: Mishra
Author-Name: Katarzyna Platt
Author-X-Name-First: Katarzyna
Author-X-Name-Last: Platt
Title: Do Political Connections Pay? Evidence from India
Abstract: 
 This article examines the influence of political proximity and cash-holding behavior of Indian firms on firm value and operating performance. Using a robust data set of political donations and connections for listed Indian firms around three general elections in India from 2009 to 2019, we find that firms with political connections show higher performance than their nonconnected peers. We also observe that politically connected Indian firms with higher cash holdings achieve substantially better valuations over time. Our results are robust and consistent after controlling for various factors. The article coincides with the introduction of electoral bonds through an amendment in Finance Bill 2017, which formalized the corporate financing of political parties and will likely strengthen the corporate-political linkages via more substantial donations. Overall, the article introduces political proximity/connection as a new indirect factor influencing firm performance.
Journal: Emerging Markets Finance and Trade
Pages: 3241-3265
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2212839
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2212839
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# input file: MREE_A_2212840_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Huan Liu
Author-X-Name-First: Huan
Author-X-Name-Last: Liu
Author-Name: Nan Sun
Author-X-Name-First: Nan
Author-X-Name-Last: Sun
Author-Name: Yongwei Ye
Author-X-Name-First: Yongwei
Author-X-Name-Last: Ye
Author-Name: Yunqing Tao
Author-X-Name-First: Yunqing
Author-X-Name-Last: Tao
Author-Name: Yiwei Kan
Author-X-Name-First: Yiwei
Author-X-Name-Last: Kan
Title: The Impact of Corporate Public Market Share Repurchases on Capital Market Information Efficiency
Abstract: 
 Combining data on share repurchases conducted by Chinese listed companies in the public market, this study explores the impact of corporate share repurchases on capital market information efficiency. The research results show that share repurchases effectively improve the information efficiency of the capital market. The mechanism test finds that share repurchases improve the capital market information efficiency by increasing stock liquidity and improving the market information environment. In addition, the heterogeneity test finds that the positive impact of share repurchases on the information efficiency of the capital market is more significant after the launch of the new Company Law in 2018 and in a bear market. Overall, this study provides a theoretical reference on the government’s efforts to improve the basic capital market system with the aim of high-quality capital market development.
Journal: Emerging Markets Finance and Trade
Pages: 3220-3240
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2212840
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2212840
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# input file: MREE_A_2216843_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Pengpeng Yue
Author-X-Name-First: Pengpeng
Author-X-Name-Last: Yue
Author-Name: Yaru Bai
Author-X-Name-First: Yaru
Author-X-Name-Last: Bai
Author-Name: Linlin Yu
Author-X-Name-First: Linlin
Author-X-Name-Last: Yu
Author-Name: Jun Zhou
Author-X-Name-First: Jun
Author-X-Name-Last: Zhou
Title: Frozen Economy During COVID-19
Abstract: 
 This article collects a novel dataset by combining COVID-19 statistics with the measurement of economic activities in different sectors to investigate the “freezing” effect of the pandemic on the economy. We exploit the latest data on COVID-19 from January 2020 to April 2022. Our main findings indicate that there is a significant negative relationship between COVID-19 and a set of economic indicators in the corporate sector, household sector, and financial sector, which implies the economy has become frozen during the COVID-19 pandemic. To be specific, COVID-19 and resultant business closures, labor shortages, logistics blocks, demand reduction, and financial vulnerability inevitably impair the vibrancy and resilience of economic activities.
Journal: Emerging Markets Finance and Trade
Pages: 3266-3280
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2216843
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2216843
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# input file: MREE_A_2218968_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lunwen Wu
Author-X-Name-First: Lunwen
Author-X-Name-Last: Wu
Author-Name: Di Gao
Author-X-Name-First: Di
Author-X-Name-Last: Gao
Author-Name: Wanxuan Su
Author-X-Name-First: Wanxuan
Author-X-Name-Last: Su
Author-Name: Dawei Liang
Author-X-Name-First: Dawei
Author-X-Name-Last: Liang
Author-Name: Qianqian Du
Author-X-Name-First: Qianqian
Author-X-Name-Last: Du
Title: A Trading Strategy Based on Analysts’ Industry Analyses – Evidence from Textual Analyses of Analyst Reports in Chinese Stock Market
Abstract: 
 Applying a deep-learning method that is efficient in differentiating the order of words, we extract the tone of analysts’ industry analyses to measure analyst expertise and aggregate it at industry level as OPNI. Based on OPNI, we successfully construct the industry hedging portfolio that longs industries with highest OPNI and shorts industries with lowest OPNI, which generates significant and robust abnormal returns. Furthermore, we find that the industry hedging portfolio based on industry-level numerical forecasts cannot generate significant returns. Additionally, in mechanism analyses, we find that the informativeness of analysts’ industry analyses is driven by its predictability on industry-level unexpected revenues and earnings. Our findings suggest that industry analyses in analysts’ reports contain incremental value about their industry expertise, which is beyond analysts’ quantitative forecasts.
Journal: Emerging Markets Finance and Trade
Pages: 3378-3389
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2218968
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218968
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# input file: MREE_A_2212842_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoran Huang
Author-X-Name-First: Xiaoran
Author-X-Name-Last: Huang
Author-Name: Weilong Kang
Author-X-Name-First: Weilong
Author-X-Name-Last: Kang
Title: Disagreement Motivated Trading: The Bright Side of Share Pledges
Abstract: 
 We study the impact on stock liquidity of share pledges by controlling shareholders. Using 2SLS and a regulatory change that exogenously increases pledging activities, we document a positive causal link between pledging and stock liquidity. These baseline results are robust to a variety of tests using alternative data frequency, variable definitions, model specifications, and sample selection. Further, we find that the channel of dispersion of opinions among investors explains the findings. In further discussion, our study finds that share pledging is also associated with lower liquidity risk. Our empirical findings contradict the regulatory concern that share pledges by controlling shareholders will deteriorate the company’s information environment.
Journal: Emerging Markets Finance and Trade
Pages: 3161-3200
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2212842
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2212842
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# input file: MREE_A_2218963_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohammad Alipour-Vaezi
Author-X-Name-First: Mohammad
Author-X-Name-Last: Alipour-Vaezi
Author-Name: Kamran Rezaie
Author-X-Name-First: Kamran
Author-X-Name-Last: Rezaie
Author-Name: Reza Tavakkoli-Moghaddam
Author-X-Name-First: Reza
Author-X-Name-Last: Tavakkoli-Moghaddam
Title: Proposing a Novel Data-Driven Optimization Methodology to Calculate the Insurance Premium in the Iranian Health Insurance Industry
Abstract: 
 This study aims to manage the two most common and critical disruptions of Iranian health insurance (declining market share and errors in predicting the indemnities) by proposing a novel data-driven methodology for calculating its insurance premium. Here, using the optimal machine learning algorithm selected using a Bayesian best-worst method, insurers are classified based on their preparedness for causing disruptions. Then, the indemnity of each group of insureds is predicted. Finally, the appropriate premium for each group of insureds is calculated separately using a new mathematical optimization model. The results of our real-life case study guarantee the insurer’s profitability and reduction of its bankruptcy risk even by announcing lower premiums.
Journal: Emerging Markets Finance and Trade
Pages: 3362-3377
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2218963
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218963
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# input file: MREE_A_2210720_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jie Ma
Author-X-Name-First: Jie
Author-X-Name-Last: Ma
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Title: The Role of Green Finance in Green Innovation: Global Perspective from 75 Developing Countries
Abstract: 
 Green finance provides an important impetus to green innovation and sustainable development. This study investigates the connection between green finance and green innovation using cross-country panel data that cover 75 developing countries from 2000 to 2019. First, we find that green finance significantly boosts the number of green patent applications in developing countries, which is crucial for promoting green development. Second, we divide countries according to whether they are members of the Regional Comprehensive Economic Partnership or the Belt and Road Initiative, and their environmental performance. Heterogeneity results show in countries with poor environmental performance, non-RCEP member countries, and non-BRI member countries that the contribution of green funding is more obvious and significant. Furthermore, we consider several cross-items to explore how green finance influences green innovation differently depending on the circumstance, such as the degree of corruption, political stability, and government effectiveness. Overall, our findings highlight the key role that green finance plays in advancing green innovation, particularly for emerging economies that urgently need a policy foundation for green innovation and sustainable development.
Journal: Emerging Markets Finance and Trade
Pages: 3109-3128
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2210720
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2210720
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# input file: MREE_A_2212841_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jun Yin
Author-X-Name-First: Jun
Author-X-Name-Last: Yin
Author-Name: Xingquan Yang
Author-X-Name-First: Xingquan
Author-X-Name-Last: Yang
Title: How Does Corporate Social Responsibility Affect Corporate Cash Holdings?
Abstract: 
 Does CSR reflect the “self-interest tool” of management or the “value tool” of shareholders? This paper seeks to examine the impact of CSR on corporate cash holdings in China’s stock markets. This paper presents evidence that CSR significantly increases corporate cash holdings, and our findings remain consistent after a series of robustness tests. Mechanism analysis shows that CSR mainly affects cash holding by optimizing corporate governance, which is reflected in that CSR improves the efficiency of investment and increases dividend and R&D investment. Furthermore, CSR has a spillover effect and value enhancement effect that can improve cash holdings at the industry level and also enhance corporate market value.
Journal: Emerging Markets Finance and Trade
Pages: 3201-3219
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2212841
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2212841
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# input file: MREE_A_2203808_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joseph Kopecky
Author-X-Name-First: Joseph
Author-X-Name-Last: Kopecky
Title: Many Unions, One Estimate? Disaggregating the Currency Union Effect on Trade
Abstract: 
 A large literature estimates the impact of currency unions on trade. Often ignored in these estimates are the dramatic differences in the characteristics of countries adopting common currencies, hidden by aggregation into a single currency union effect. I show that currency unions have substantial differences in their observable characteristics, relative to non-unions, making them a poor comparison group for estimation of policy treatment. Further, these differences are heterogeneous across individual currency unions, making one aggregate estimate likely inappropriate. Using inverse propensity score methods, I find that adjusting these gravity equation estimates to account these differences, both via weighting and via sample adjustment, meaningfully impacts the estimated policy effects. I find a wide range of currency union effects across individual, disaggregated, currency unions. My results suggest that future work on currency unions, and other macroeconomic policies, should be careful to check for such underlying heterogeneity when estimating policy effects.
Journal: Emerging Markets Finance and Trade
Pages: 3293-3315
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2203808
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2203808
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# input file: MREE_A_2206518_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuqiang Cao
Author-X-Name-First: Yuqiang
Author-X-Name-Last: Cao
Author-Name: Zhiwu Chen
Author-X-Name-First: Zhiwu
Author-X-Name-Last: Chen
Author-Name: Meiting Lu
Author-X-Name-First: Meiting
Author-X-Name-Last: Lu
Author-Name: Zihui Xu
Author-X-Name-First: Zihui
Author-X-Name-Last: Xu
Author-Name: Yizhou Zhang
Author-X-Name-First: Yizhou
Author-X-Name-Last: Zhang
Title: Does FinTech Constrain Corporate Misbehavior? Evidence from Research and Development Manipulation
Abstract: 
 Industrial policy plays a significant role in driving firm innovation. However, prior research presents evidence that firms may strategically cater to the policy in the process of implementation to gain favorable policy outcomes. This study examines how the development of FinTech affects firms’ research and development (R&D) manipulation behavior and innovation performance. Using a sample of Chinese listed firms from 2008 to 2020, we find a negative relationship between local FinTech development and manipulation in firms’ R&D. We also find the mitigating impact of FinTech is attributed to its dual role of reducing information asymmetry and easing financing constraints and is more pronounced for firms located in regions with higher marketization, non-state and politically connected enterprises, and small and medium-sized enterprises. Additional tests suggest that FinTech significantly improves the quality and efficiency of firm innovation, which ultimately enhances corporate value. Overall, our findings provide new insights supporting the development of FinTech.
Journal: Emerging Markets Finance and Trade
Pages: 3129-3151
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2206518
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2206518
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# input file: MREE_A_2212838_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yu Ma
Author-X-Name-First: Yu
Author-X-Name-Last: Ma
Author-Name: Peiyan Chen
Author-X-Name-First: Peiyan
Author-X-Name-Last: Chen
Author-Name: Wenxuan Wang
Author-X-Name-First: Wenxuan
Author-X-Name-Last: Wang
Author-Name: Rundong Luo
Author-X-Name-First: Rundong
Author-X-Name-Last: Luo
Author-Name: Jin Yue
Author-X-Name-First: Jin
Author-X-Name-Last: Yue
Title: Effect of Parental Education Level on the Risky Financial Asset Allocation of Offspring Families
Abstract: 
 Using data from the China Household Finance Survey, this study investigates how parental education level affects the risky financial asset allocation of offspring households via the Probit and Tobit models. Results show that the parents” education level significantly and positively impacts the probability and proportion of risky financial assets investment in offspring families and are still robust after using instrumental variables for the endogeneity test. The mechanism test shows that parents” educational level can improve the investment probability and proportion of risky financial assets of children’s families by increasing the income of children’s families and the education level of the heads of children’s families.
Journal: Emerging Markets Finance and Trade
Pages: 3152-3160
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2212838
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2212838
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# input file: MREE_A_2206516_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jiaxin Wang
Author-X-Name-First: Jiaxin
Author-X-Name-Last: Wang
Author-Name: Hongyan Huang
Author-X-Name-First: Hongyan
Author-X-Name-Last: Huang
Author-Name: Zilong Song
Author-X-Name-First: Zilong
Author-X-Name-Last: Song
Author-Name: Xiaofan Hu
Author-X-Name-First: Xiaofan
Author-X-Name-Last: Hu
Author-Name: Jian Ding
Author-X-Name-First: Jian
Author-X-Name-Last: Ding
Title: Information Security Governance and Stock Price Synchronization: Evidence from ISO27001 Certification of Internet Firms
Abstract: 
 The protection of user data, trade secrets, and other proprietary information held by Internet firms is of increasing concern to all sectors. In this paper, we investigate the relationship between information security governance (ISO) and stock price synchronization (SYN) in Chinese Internet firms from the perspective of information security. We find that strengthening ISO increases the occurrence of simultaneous upward and downward movement in stock price, thereby increasing SYN. Mechanism analysis demonstrates how ISO affects the firm-specific information content of stock price by acting on proprietary information. The business motivation for seeking technology and the host country’s low institutional quality can hence the positive correlation between ISO and SYN when firms conduct overseas operations. Meanwhile, in Internet firms with higher proprietary cost and weaker external governance, the positive correlation between ISO and SYN is more pronounced. Overall, this paper provides new evidence for the economic consequences of ISO from a new perspective of SYN.
Journal: Emerging Markets Finance and Trade
Pages: 3316-3329
Issue: 10
Volume: 59
Year: 2023
Month: 08
X-DOI: 10.1080/1540496X.2023.2206516
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2206516
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# input file: MREE_A_2199116_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jala Youssef
Author-X-Name-First: Jala
Author-X-Name-Last: Youssef
Author-Name: Chahir Zaki
Author-X-Name-First: Chahir
Author-X-Name-Last: Zaki
Title: On the Determinants and Outcomes of IMF Loans in Low- and Middle-Income Countries: Do Politics Matter?
Abstract: 
 The objective of this paper is to analyze the economic and political determinants of IMF loans in low- and middle-income countries and their impact on economic growth. Our contribution is threefold. First, we use the IMF Monitoring of Fund Agreements database along with international political economy factors to analyze IMF lending determinants through a Heckman two-stage selection procedure. Second, we use the predicted values of determinants of IMF lending to explain the consequences of this lending on growth. We also investigate how the domestic political regime of the recipient country would affect the outcomes of these loans. Third, we study the dynamic effects of IMF loans on economic growth using the local projection method. Our main findings show that economic and political proximity to the IMF major shareholders matter for the likelihood of obtaining an IMF non-concessional loan. Furthermore, most of the loans exert a negative effect on the trend component of GDP, confirming that such loans can stabilize the economies in the short term without improving the long-run steady growth. The analysis of the dynamic effects of loans also confirmed these findings. Finally, democratic regimes compared to autocratic ones improve the effects of these loans on economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 2834-2850
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2199116
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2199116
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# input file: MREE_A_2202794_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Junli Shi
Author-X-Name-First: Junli
Author-X-Name-Last: Shi
Title: Digital Technology and Value Chain Agglomeration: Evidence from East Asia
Abstract: 
 Digital technology reshapes the value chain (VC), driving value chain agglomeration (VCA). This study conducted an analysis of East Asia using a data factor flow model. The findings highlight that data researcher flow facilitates VCA while data capital flow restrains it, thus producing a VCA structure with duality. Moreover, the influence of digital technology on VCA is heterogeneous at national and industrial levels. Furthermore, the mechanism analysis employing the cross-term method shows that commodity trade intensity and trade cost have a positive role in data researcher flow on VCA, while regionalization impels the influence of data capital flow on VCA. In this case, the study provides useful insights for breaking the duality of East Asian value chain agglomeration (EAVCA) and offers empirical evidence for emerging economies to strengthen digital-driven development and achieve VC climbing by utilizing EAVCA.
Journal: Emerging Markets Finance and Trade
Pages: 2866-2881
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2202794
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2202794
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# input file: MREE_A_2199115_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qinqin Zhuang
Author-X-Name-First: Qinqin
Author-X-Name-Last: Zhuang
Author-Name: Weijie Luo
Author-X-Name-First: Weijie
Author-X-Name-Last: Luo
Author-Name: Yupeng Li
Author-X-Name-First: Yupeng
Author-X-Name-Last: Li
Title: How Does COVID-19 Affect Corporate Research and Development? Evidence from China
Abstract: 
 This paper examines how COVID-19 affects firm research and development (R&D) using the data of Chinese-listed companies from 2018 to 2020. Our results show that COVID-19 significantly inhibits firm R&D input. However, such significant evidence mainly exists on firms classified as private enterprises, with smaller size, or belonging to high-technology industries. Moreover, we find evidence that the epidemic reduces firm revenue but, in the meantime, increases the financing constraint, leading to less R&D investment. The conclusion of this study provides a theoretical basis and practical reference for enterprises to make better decisions on innovative activities.
Journal: Emerging Markets Finance and Trade
Pages: 3011-3023
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2199115
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2199115
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# input file: MREE_A_2199122_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Boyang Liu
Author-X-Name-First: Boyang
Author-X-Name-Last: Liu
Title: Digital Technology and Corporate Social Responsibility: Evidence from China
Abstract: 
 While the rapid development of digital technology has attracted great attention from researchers, media, and policymakers, whether and how the adoption of digital technology shapes corporate social responsibility (CSR) remain unclear. In this study, we examine the effects of digital technologies on CSR based on listed firms in China’s stock markets from 2009 to 2019. We find that digital transformation significantly promotes CSR. This result is unchanged when we further introduce an exogenous shock, China’s 4 G-LTE policy, to identify the causality. Mechanistical analysis shows that digital technology helps companies improve pollution control capabilities and internal control efficiency, thereby improving CSR performance. Cross-sectionally, the above promotion effect is more significant in firms with low financing constraints and greater regulatory pressure. Overall, this study sheds new light on firms fulfilling their social responsibilities in the digital era.
Journal: Emerging Markets Finance and Trade
Pages: 2967-2993
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2199122
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2199122
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# input file: MREE_A_2202795_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ionel Bostan
Author-X-Name-First: Ionel
Author-X-Name-Last: Bostan
Author-Name: Marilen-Gabriel Pirtea
Author-X-Name-First: Marilen-Gabriel
Author-X-Name-Last: Pirtea
Author-Name: Claudiu Boțoc
Author-X-Name-First: Claudiu
Author-X-Name-Last: Boțoc
Author-Name: Eugen-Axel Mihancea
Author-X-Name-First: Eugen-Axel
Author-X-Name-Last: Mihancea
Title: The Analysis of Non-Linear Dividend Hypothesis: International Evidence
Abstract: 
 The main aim of this paper is to examine the non-linear relationship between financial performance and level of dividends for a recent period and an international sample. Subsidiary, we have included some firm characteristics to revisit their influence over the level of dividends paid. Using both GMM and Quantile Regression, we found that there is a non-linear relationship between the level of dividends paid and financial performance. Among the dividend theories, the signaling effect theory, the lifecycle theory, and the catering theory of dividends are supported through our results.
Journal: Emerging Markets Finance and Trade
Pages: 2882-2893
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2202795
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2202795
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# input file: MREE_A_2203809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yonggen Luo
Author-X-Name-First: Yonggen
Author-X-Name-Last: Luo
Author-Name: Junshan Duan
Author-X-Name-First: Junshan
Author-X-Name-Last: Duan
Author-Name: Antai Li
Author-X-Name-First: Antai
Author-X-Name-Last: Li
Author-Name: Jiaoyang Shao
Author-X-Name-First: Jiaoyang
Author-X-Name-Last: Shao
Title: Blockchain Information Disclosure and Trade Credit
Abstract: 
 Blockchain technology is an important part of the infrastructure of the digital economy. We investigate the relationship between blockchain information disclosure and trade credit. Using Python to extract the information from MD&A, the results show that blockchain information disclosure significantly increases an enterprise’s trade credit. This effect is stronger for enterprises with weak bargaining power and those located in areas with high social trust. The mechanism of the effect is improved corporate governance and reduced information asymmetry, which reduce default risk. The results are consistent when we consider heterogeneity issues. Our research clarifies the significant role of blockchain technology in the real economy.
Journal: Emerging Markets Finance and Trade
Pages: 3036-3059
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2203809
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2203809
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# input file: MREE_A_2202796_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tian Ma
Author-X-Name-First: Tian
Author-X-Name-Last: Ma
Author-Name: Cunfei Liao
Author-X-Name-First: Cunfei
Author-X-Name-Last: Liao
Author-Name: Fuwei Jiang
Author-X-Name-First: Fuwei
Author-X-Name-Last: Jiang
Title: Weather Sentiment Index and Stock Return Predictability: Evidence from China
Abstract: 
 This paper introduces a weather-related sentiment (mood) index (WSI) for the Chinese stock market based on precipitation and temperature data with the PLS method. We find that the WSI is negatively correlated with the equity market and has strong predictive power that is far greater than that of other market and macroeconomic variables. The predictability also holds under the characteristic-mimicking portfolios. The driving force of the WSI’s predictive power appears to stem from its ability to predict future cash flow, which reflects investor preference.
Journal: Emerging Markets Finance and Trade
Pages: 2894-2905
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2202796
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2202796
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# input file: MREE_A_2195537_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiao Chang
Author-X-Name-First: Xiao
Author-X-Name-Last: Chang
Author-Name: Nian Liu
Author-X-Name-First: Nian
Author-X-Name-Last: Liu
Author-Name: Chun Kwok Lei
Author-X-Name-First: Chun Kwok
Author-X-Name-Last: Lei
Author-Name: Qingbin Zhao
Author-X-Name-First: Qingbin
Author-X-Name-Last: Zhao
Author-Name: Xinhua Gu
Author-X-Name-First: Xinhua
Author-X-Name-Last: Gu
Title: Current Account Imbalances, Income Inequality, and Financial Instability: Asian Experiences
Abstract: 
 From Asian experiences in financial crises of 1997–08 and 2007–09, this study finds that higher income inequality can worsen current account imbalances and exacerbate external vulnerability. Capital flows, volatile though they are, are the effect, not the cause, of variations in economic fundamentals. We show that credit-based growth with the aid of foreign financing is prone to financial fragility while export-oriented growth on the basis of domestic saving is good for financial stability. Given the rising international political tensions, our result suggests that Asian emerging markets should reduce inequality and boost demand to achieve sustainable credit and balanced growth. By doing so, Asia can effectively help alleviate global imbalances and lower financial risk.
Journal: Emerging Markets Finance and Trade
Pages: 2802-2814
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2195537
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2195537
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# input file: MREE_A_2206517_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Weihong Chen
Author-X-Name-First: Weihong
Author-X-Name-Last: Chen
Author-Name: Xi Zhong
Author-X-Name-First: Xi
Author-X-Name-Last: Zhong
Author-Name: Hailin Lan
Author-X-Name-First: Hailin
Author-X-Name-Last: Lan
Title: Performance Shortfall Scope and Emerging Economy enterprises’ Overseas R&D
Abstract: 
 Based on the Behavioral Theory of the Firm and upper echelon theory, this study examines the impact of performance shortfall scope on emerging economy enterprises’ (EEEs) overseas research and development (R&D). First, this study suggests that the broader the performance shortfall scope is, the less likely EEEs are to implement overseas R&D. Moreover, this study suggests that top management team (TMT) tenure weakens the negative impact of performance shortfall scope on EEEs’ overseas R&D. Meanwhile, CEO duality enhances the above relationship. Based on the empirical data pertaining to Chinese listed manufacturing enterprises from 2003 to 2020, this study confirms the arguments put forward. This study is the first of its kind to examine the relationship between performance shortfall scope and EEEs’ overseas R&D.
Journal: Emerging Markets Finance and Trade
Pages: 2954-2966
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2206517
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2206517
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# input file: MREE_A_2210721_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xia Fang
Author-X-Name-First: Xia
Author-X-Name-Last: Fang
Author-Name: Zhenyu Yang
Author-X-Name-First: Zhenyu
Author-X-Name-Last: Yang
Author-Name: Yun Zhang
Author-X-Name-First: Yun
Author-X-Name-Last: Zhang
Author-Name: Chen Guo
Author-X-Name-First: Chen
Author-X-Name-Last: Guo
Title: Adverse Effects of Data Breach on Public Companies: A Study Based on Interpersonal Gossip Theory
Abstract: 
 The ability to effectively curb the adverse effects of data breach has become an urgent issue for enterprises. Employing interpersonal gossip theory, this study argues that the mechanism relating to information transparency and control provided by companies helps mitigate the adverse effects of data breach on these companies. Using listed companies in China with data breach in 2011–2020 as the treatment group and firms without data breach as the control group. We test the two-period PSM-DID model and find that transparency and control can effectively suppress the adverse effects of data breach on companies’ stock price and revenue. Specifically, the mechanism test found that: transparency and control inhibit the adverse effects of data breach by reducing negative rhetoric. The heterogeneity test found that firms with low institutional investor ownership significantly reduce the adverse effects of data breach by using transparency and control, while the dampening effect only occurs in state-owned enterprises with a high level of transparency. This study contributes to understanding the importance of establishing data security systems in firms and provides insights into the governance of data breach in listed firms.
Journal: Emerging Markets Finance and Trade
Pages: 3094-3107
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2210721
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2210721
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# input file: MREE_A_2203807_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jing Zhao
Author-X-Name-First: Jing
Author-X-Name-Last: Zhao
Author-Name: Liang Zhu
Author-X-Name-First: Liang
Author-X-Name-Last: Zhu
Title: Does Network Embeddedness Deter Corporate Fraud? Evidence from China
Abstract: 
 This study examines the impact of social networks on corporate fraud. We contend that firms’ network embeddedness increases the expected cost of fraud, which in turn reduces the likelihood of committing fraud. Using data on the network of Chinese listed firms between 2007 and 2019, we find evidence that firms with a higher degree of network embeddedness are less likely to engage in fraudulent activities, suggesting the governance role of social networks. Further analyses reveal that this negative relationship is stronger when the firm faces more intense market competition, has more interactions with partners, or receives more media coverage. Our findings are robust to instrument variable regression, controlling for firm-fixed effects, alternative measures of network embeddedness, and addressing the partial observation problem. This study provides novel insights into the determinants of corporate fraud from a network perspective.
Journal: Emerging Markets Finance and Trade
Pages: 2906-2927
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2203807
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2203807
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# input file: MREE_A_2195538_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Amrit Pathak
Author-X-Name-First: Amrit
Author-X-Name-Last: Pathak
Author-Name: Shawn Leu
Author-X-Name-First: Shawn
Author-X-Name-Last: Leu
Author-Name: Mahinda Siriwardana
Author-X-Name-First: Mahinda
Author-X-Name-Last: Siriwardana
Title: Trade Liberalization and Manufacturing Productivity in Nepal: Examining a Small Open Developing Economy
Abstract: 
 This study examines the trade-productivity nexus using manufacturing industry data during Nepal’s rapid trade reform period that intensified from the early 1990s. Productivity improvements from trade liberalization only accrue to large industries and the highly efficient industries along the productivity quantiles. Methodologically, the results indicate that one should examine distributional variations as well as conditional mean variations to capture all relevant industry productivity responses to trade policy changes. These results imply that there is ample opportunity for Nepal to continue reaping benefits from the trade liberalization process as more industries grow in size and become more efficient over time.
Journal: Emerging Markets Finance and Trade
Pages: 2815-2833
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2195538
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2195538
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# input file: MREE_A_2202792_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Weihong Sun
Author-X-Name-First: Weihong
Author-X-Name-Last: Sun
Author-Name: Huating Lai
Author-X-Name-First: Huating
Author-X-Name-Last: Lai
Author-Name: Ding Liu
Author-X-Name-First: Ding
Author-X-Name-Last: Liu
Title: Tracking China’s Fiscal Sustainability: A Time-Frequency Perspective
Abstract: 
 This paper evaluates China’s fiscal sustainability by examining national and regional revenue-expenditure nexuses from a time-frequency perspective. Our analysis is novel since research on China in this respect remains limited, and existing literature largely neglects time-frequency dependencies. We employ wavelet techniques to identify the time-frequency relationship between government revenue and expenditure from 1952 to 2020. We find that the national and regional revenue-expenditure nexuses are frequency-dependent and time-varying, providing a possible explanation for the mixed patterns emerging from the analyses based on traditional methods. In addition, the medium- and long-term national and regional revenue-expenditure nexuses in recent years predominantly support the institutional separation hypothesis. These findings indicate that China’s fiscal risk is rising and urge for fundamental reforms to safeguard budgetary sustainability.
Journal: Emerging Markets Finance and Trade
Pages: 2851-2865
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2202792
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2202792
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# input file: MREE_A_2195536_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zao Sun
Author-X-Name-First: Zao
Author-X-Name-Last: Sun
Author-Name: Yangzi Li
Author-X-Name-First: Yangzi
Author-X-Name-Last: Li
Author-Name: Pang Paul Wang
Author-X-Name-First: Pang Paul
Author-X-Name-Last: Wang
Title: Cultural Differences and Bilateral Trade: An Empirical Study Based on Industrial Data from OECD and BRIICS Countries
Abstract: 
 This study extends the cross-sectional gravity function in the Eaton and Kortum model to a panel-data model based on 36 OECD and six BRIICS countries from 2010 to 2018 and introduce heterogeneous technology to measure the competitiveness of each country by interaction fixed effects. The results illustrate that the total cultural distance between countries significantly impedes bilateral trade, as it increases trade costs. The conclusions are robust with instrumental variables, alternative measurement of cultural differences, and extended time window estimation. And the effects present heterogeneity in sub-dimensions of cultural distance and sub-industries.
Journal: Emerging Markets Finance and Trade
Pages: 2787-2801
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2195536
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2195536
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# input file: MREE_A_2210717_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Linyan Wang
Author-X-Name-First: Linyan
Author-X-Name-Last: Wang
Author-Name: Xiaoxu Sui
Author-X-Name-First: Xiaoxu
Author-X-Name-Last: Sui
Author-Name: Yun Feng
Author-X-Name-First: Yun
Author-X-Name-Last: Feng
Author-Name: Huijuan Zhang
Author-X-Name-First: Huijuan
Author-X-Name-Last: Zhang
Author-Name: Bingda Zhang
Author-X-Name-First: Bingda
Author-X-Name-Last: Zhang
Title: The Role of Non-Managerial Inside Debt in Firm Risk and the Cost of Debt
Abstract: 
 This study investigates the impact of non-managerial inside debt on managerial risk-taking decisions and the cost of debt. We propose a theoretical model demonstrating that non-managerial inside debt can reduce firm risk by influencing managers’ risk-taking decisions and that non-managerial inside debt is inversely related to the firm’s cost of debt. From the proposed model, we develop an empirical hypothesis that indicates the negative relationship between non-managerial inside debt and the cost of debt. We test the hypothesis empirically and find evidence to support the model. The paper adds a novel theoretical model to the literature that shows the significance of non-managerial inside debt in firm risk-taking and capital raising.
Journal: Emerging Markets Finance and Trade
Pages: 3076-3093
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2210717
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2210717
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# input file: MREE_A_2205545_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Xueli Wen
Author-X-Name-First: Xueli
Author-X-Name-Last: Wen
Title: How Does Exchange Rate Policy Uncertainty Affect Corporate Performance: Evidence from China
Abstract: 
 This research investigates the role of China’s exchange rate policy uncertainty in manufacturing corporate performance using the fixed effect model and quantile regression model. The findings indicate that an exchange rate policy fluctuation constrains better-performing corporates, but is adverse for those with inferior performance. Government subsidy appears to explain the positive impact, and the effect is enhanced or alleviated somehow by corporate governance, growth, and financial constraints. Exchange rate policy fluctuation also significantly pushes corporates to adjust and upgrade their business, which improves their performance accordingly. Additionally, positive shocks significantly stimulate corporate performance, while negative shocks including global financial crisis and COVID-19 epidemic hinder corporate development. Overall, the risk confrontation ability of Chinese manufacturing enterprises presents a positive upward trend. The China government should thus issue more positive exchange rate policies that could send positive signals to the market and increase the openness of its manufacturing industry. More corporate-friendly policies can be launched, such as adjusting the amount of subsidies for manufacturing enterprises in a timely manner and helping manufacturing enterprises, especially more mature ones, deal with exchange rate policy uncertainty risks.
Journal: Emerging Markets Finance and Trade
Pages: 3060-3075
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2205545
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2205545
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# input file: MREE_A_2190846_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fanyong Guo
Author-X-Name-First: Fanyong
Author-X-Name-Last: Guo
Author-Name: Shan Su
Author-X-Name-First: Shan
Author-X-Name-Last: Su
Author-Name: Shihu Zhong
Author-X-Name-First: Shihu
Author-X-Name-Last: Zhong
Title: Can Investors Gain Incremental Information Through Online Searching? Evidence from China
Abstract: 
 This study investigates the impact of investors’ online searching on the pricing efficiency of the capital market from the perspective of stock price synchronization. Using the Chinese firms listed in the Shanghai and Shenzhen Stock Exchanges from 2013 to 2019, we find that the more investors’ online searches there are, the less serious the stock price synchronization issue is. Consistent with the notion that online search facilitates the inclusion of more company-specific information in stock prices, we find that the effect of investors’ online searching on weakening the company’s stock price synchronization is more pronounced for companies with worse stock liquidity and higher separation of control rights and cash flow rights. Moreover, we demonstrate that investors’ online searching can weaken stock price synchronization by reducing irrational herding behavior. A further examination of the herding behavior of different investors reveals that online searching mainly plays a role in reducing the herding behavior of individual investors. Collectively, these results indicate that online searching is important for investors to gain greater access to valuable information.
Journal: Emerging Markets Finance and Trade
Pages: 2994-3010
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2190846
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2190846
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# input file: MREE_A_2203806_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Seun-Young Park
Author-X-Name-First: Seun-Young
Author-X-Name-Last: Park
Author-Name: Hyejeong Shin
Author-X-Name-First: Hyejeong
Author-X-Name-Last: Shin
Title: Global Diversification, Real Earnings Management, and Future Performance: Evidence from Korea
Abstract: 
 Research has generally focused on demonstrating real earnings management (REM) stemming from managerial opportunism using the agency framework. Examining a sample of firms on the Korea Composite Stock Price Index from 2011 to 2019, we explore the benefits of REM. Empirical results show a positive relationship between corporate globalization and the extent of REM, and corporate globalization mitigates the negative relationship between REM and future (operating and market) performance, observed only in firms with a low incentive to engage in REM for zero earnings. Global firms with more operational flexibility may strategically utilize REM to avoid temporary crises and perform better in the future.
Journal: Emerging Markets Finance and Trade
Pages: 3024-3035
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2203806
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2203806
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# input file: MREE_A_2203810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hsuan-Lien Chu
Author-X-Name-First: Hsuan-Lien
Author-X-Name-Last: Chu
Author-Name: Nai-Yng Liu
Author-X-Name-First: Nai-Yng
Author-X-Name-Last: Liu
Author-Name: Albert Tsang
Author-X-Name-First: Albert
Author-X-Name-Last: Tsang
Title: Country-Level Institutions and Transparency of Directors’ Information Disclosure: The Role of the Labor Market
Abstract: 
 This study investigates whether country-level institutions related to the labor market affect firms’ disclosure of information about their directors. Our findings, based on a sample of public companies domiciled in 46 countries, show that the level of disclosure of directors’ information, particularly information on their remuneration, is lower for firms in countries with better developed labor markets. We further find that in countries with more stringent labor regulations, firms are less likely to disclose both directors’ remuneration and biographical information. Firms in countries with better labor systems (e.g. greater mobility in the labor market and more effective social dialogue) make more such disclosures. Overall, our findings suggest that better developed country-level institutions related to the labor market disincentivize firms from disclosing information about directors. However, different types of country-level institutions have different impacts on firms’ incentives to make such disclosures. Our study provides valuable insights into how labor market development affects the alignment of boards’ incentives with those of stakeholders such as employees and how external pressure from employees affects a firm’s strategic actions regarding disclosing directors’ information.
Journal: Emerging Markets Finance and Trade
Pages: 2928-2953
Issue: 9
Volume: 59
Year: 2023
Month: 07
X-DOI: 10.1080/1540496X.2023.2203810
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2203810
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# input file: MREE_A_2223933_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xinrong Xiao
Author-X-Name-First: Xinrong
Author-X-Name-Last: Xiao
Author-Name: Xu Liu
Author-X-Name-First: Xu
Author-X-Name-Last: Liu
Author-Name: Jian Liu
Author-X-Name-First: Jian
Author-X-Name-Last: Liu
Title: ESG Rating Dispersion and Expected Stock Return in China
Abstract: 
 ESG rating dispersion has left responsible investors in great confusion and posed non-negligible barriers to sustainable investment. Despite its importance, there is a lack of research on the role of ESG rating dispersion in portfolio decisions and asset pricing for the Chinese capital market. We reveal the negative return predictability of ESG rating dispersion, which cannot be solely attributed to common risk exposures. We also consider two potential mechanisms based on institutional investor demand and belief dispersion underlying this negative relation. Our findings have important practical implications for asset managers seeking to optimize financial performance while investing responsibly.
Journal: Emerging Markets Finance and Trade
Pages: 3422-3437
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2223933
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2223933
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# input file: MREE_A_2218970_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoying Xu
Author-X-Name-First: Xiaoying
Author-X-Name-Last: Xu
Author-Name: Jiang Du
Author-X-Name-First: Jiang
Author-X-Name-Last: Du
Author-Name: Xinshu Gong
Author-X-Name-First: Xinshu
Author-X-Name-Last: Gong
Title: The Impact of Digital Economy on Innovation Efficiency of New Energy Enterprises: Evidence from the Perspective of Innovation Value Chain
Abstract: 
 Based on the perspective of the innovation value chain, this paper divides the technological innovation of new energy enterprises into research and development and results transformation stages, uses the panel data of listed Chinese new energy enterprises from 2016 to 2021 to test the impact of urban digital economy development on the two-stage innovation efficiency, and examines the moderating role of organizational inertia and entrepreneurship on the relationship between the two. The study found that the development of the digital economy has significantly improved the efficiency of enterprises’ two-stage innovation, but its role in promoting the stage of research and development is more obvious; Organizational inertia and entrepreneurship have a positive moderating effect on the relationship between the two; Further research found that there are regions, urban class and population size, and enterprise nature differences in the impact of digital economy development on the efficiency of two-stage innovation of enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 3402-3421
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2218970
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218970
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# input file: MREE_A_2164463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Vagner Naysinger Machado
Author-X-Name-First: Vagner Naysinger
Author-X-Name-Last: Machado
Author-Name: Igor Bernardi Sonza
Author-X-Name-First: Igor Bernardi
Author-X-Name-Last: Sonza
Author-Name: Wilson Toshiro Nakamura
Author-X-Name-First: Wilson Toshiro
Author-X-Name-Last: Nakamura
Author-Name: Johnny Silva Mendes
Author-X-Name-First: Johnny Silva
Author-X-Name-Last: Mendes
Title: Does Foreign Experience Influence Executive Compensation in Emerging Markets?
Abstract: 
 This article examines the effects of foreign experience on the remuneration policy of companies listed in an emerging market. Applying regressions by GMM-Sys method in 230 Brazilian firms between 2010 and 2018, we find that an international academic experience cause executives to receive lower salaries. However, companies valued the experience of working abroad with more generous compensation. These relationships are consistent for total, base, variable, stock and option compensation and direct and indirect benefits, even when we moderate by the executive´s tenure and age.
Journal: Emerging Markets Finance and Trade
Pages: 3656-3670
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2022.2164463
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2164463
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# input file: MREE_A_2228460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yuyang Zhao
Author-X-Name-First: Yuyang
Author-X-Name-Last: Zhao
Author-Name: Wenwu Cai
Author-X-Name-First: Wenwu
Author-X-Name-Last: Cai
Author-Name: Cheng Xiang
Author-X-Name-First: Cheng
Author-X-Name-Last: Xiang
Title: City Reputation and Stock Price Crash Risk: Evidence from China’s National Civilized City Award
Abstract: 
 As a top honor for the overall civilization of cities in mainland China, the National Civilized City (NCC) award reflects good city reputation of the award-winners. This study investigates whether and how NCC awards affect stock price crash risk. Using a staggered difference-in-differences model, we find that the NCC award significantly reduces local firms’ future crash risk. This effect is more pronounced among firms with a better corporate reputation, inferior internal governance, and weaker external monitoring. Mechanism tests show that the NCC award reduces crash risk by mitigating management opportunism and alleviating information opacity.
Journal: Emerging Markets Finance and Trade
Pages: 3636-3655
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2228460
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2228460
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# input file: MREE_A_2228465_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Taoqin Chen
Author-X-Name-First: Taoqin
Author-X-Name-Last: Chen
Author-Name: Lu Zhou
Author-X-Name-First: Lu
Author-X-Name-Last: Zhou
Author-Name: Kangjuan Lv
Author-X-Name-First: Kangjuan
Author-X-Name-Last: Lv
Title: How Do Higher Educated Employees Affect Firms’ Investment Efficiency in China?
Abstract: 
 China’s higher education expansion increases firms’ human capital input in terms of the number of educated employees, while its quality undergoes questioning. It is unknown what employees with higher education bring to the firm in China. Considering that investment decision is one of the most important drivers of firm value, we examine how employees with higher education affect firms’ investment efficiency in this paper. We document that the number of employees with higher education increases by 89% from 2008 to 2021. We further find that more employees with higher education are associated with higher investment efficiency through mitigating over- and underinvestment. This association is stronger for firms with high product market competition, low customer concentration, state-owned enterprises, and high senior manager education. Collectively, the results suggest that the information inputs channel, monitoring channel and up-and-down communications channel are likely underlying mechanisms through which higher educated employees affect firms’ investment decisions. Overall, our paper sheds light on the real effect of higher educated employees on firms’ investment efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 3610-3635
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2228465
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2228465
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# input file: MREE_A_2223932_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenwen Zhang
Author-X-Name-First: Wenwen
Author-X-Name-Last: Zhang
Author-Name: Yi-Bin Chiu
Author-X-Name-First: Yi-Bin
Author-X-Name-Last: Chiu
Title: Dynamic Threshold Effect of Financial Development on the Country Risks–Subsidies–Firm Performance Nexus: Evidence from Chinese Renewable Energy Firms
Abstract: 
 Using multifaceted financial development indicators and a dynamic panel threshold model, this study finds that different regimes of financial development have different effects on Chinese renewable energy firm performance through the interactive channel of country risks and subsidies. A high level of composite financial development strengthens the positive interaction effect between composite risk and subsidies on renewable energy firm performance, and a high level of banking sector development and stock market development, respectively, weakens and strengthens the negative interaction effect between composite risk and subsidies on renewable energy firm performance. Further, these threshold effects of financial development on renewable energy firm performance are also different when using economic, political, and financial risk indicators, and they also change with different ownership attributes. Thus, the Chinese government needs to improve the level of composite financial development and create a stable composite risk environment to achieve fully the potential of subsidies in promoting renewable energy firm performance.
Journal: Emerging Markets Finance and Trade
Pages: 3516-3530
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2223932
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2223932
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# input file: MREE_A_2226793_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fuxing Zhang
Author-X-Name-First: Fuxing
Author-X-Name-Last: Zhang
Author-Name: Yan Yuan
Author-X-Name-First: Yan
Author-X-Name-Last: Yuan
Author-Name: Wanting Rong
Author-X-Name-First: Wanting
Author-X-Name-Last: Rong
Title: Household Registration System Reform and Firm Innovation: Evidence from China’s Scaled Industrial Firms
Abstract: 
 China has relaxed its household registration system (HRS), making it easier for rural-to-urban migrants to settle in cities. By improving the stability of high-educated workers in firms, the HRS reform should enhance these firms’ innovation. We investigate how the HRS reform influenced scaled industrial enterprises’ innovation by exploiting the staggered HRS reform in different cities from 1998 to 2007. We find that the HRS reform significantly increased these firms’ innovation output, measured by patent counts. We further find that this positive effect mainly existed among knowledge-intensive firms.
Journal: Emerging Markets Finance and Trade
Pages: 3468-3486
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2226793
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2226793
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# input file: MREE_A_2218969_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yan Yu
Author-X-Name-First: Yan
Author-X-Name-Last: Yu
Author-Name: Yi-Tsung Lee
Author-X-Name-First: Yi-Tsung
Author-X-Name-Last: Lee
Title: Spillover Effects of Preventive Regulation and Corporate R&D Investment Catering: Evidence from China
Abstract: 
 This paper explores the spillover effect of proactive preventive regulation represented by R&D expense inquiry letters (hereafter, RDILs) and its impact mechanism. Using deterrence theory and Chinese A-share listed firms from 2015–2020, we find that the industry receiving RDILs has a regulation effect on the R&D investment intensity catering motive of the non-receiving firms in the industry. That is, there is an industry spillover effect of RDILs regulation. The results of the regulatory mechanism analysis show that the industry spillover effect of RDILs regulation is more pronounced for non-receiving firms with more severe R&D manipulation intensity or weaker product market competitive positions. Further analysis shows that the inclusion of peer comparison questions in the RDILs increases the industry spillover effect of the inquiry letter regulation. We also find that the industry spillover effects of RDILs regulation result in higher future innovation quality for non-receiving firms. Overall, our study enriches our understanding of the effectiveness of inquiry letter regulation and provides some guidance for regulators’ regulatory practice.
Journal: Emerging Markets Finance and Trade
Pages: 3391-3401
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2218969
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218969
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# input file: MREE_A_2226324_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yun Zhang
Author-X-Name-First: Yun
Author-X-Name-Last: Zhang
Author-Name: Xia Fang
Author-X-Name-First: Xia
Author-X-Name-Last: Fang
Author-Name: Zhenyu Yang
Author-X-Name-First: Zhenyu
Author-X-Name-Last: Yang
Author-Name: Yuchen Sun
Author-X-Name-First: Yuchen
Author-X-Name-Last: Sun
Author-Name: Qiuyu Wang
Author-X-Name-First: Qiuyu
Author-X-Name-Last: Wang
Title: Green Finance, Technological Innovation, and Energy Efficiency Improvements: Evidence from China’s Green Finance Reform Pilot Zone
Abstract: 
 Improving energy efficiency is an important pathway for the development of green and low-carbon economy. Based on the evidence from China’s green finance reform pilot zone, we apply the data of Chinese prefecture-level cities from 2005 to 2020 to analyze the action mechanism among green finance, technological innovation and energy efficiency. We find that green finance effectively promotes energy efficiency. Moreover, the analysis of action mechanism reveals that while green finance can drive green technology innovation, only high-quality green technology innovation (green invention patents) can significantly increase energy efficiency. The heterogeneity analysis reveals that green finance has a more significant effect on increasing energy efficiency in regions with large-scale economic development and weak environmental regulation. Furthermore, digital technology can amplify the driving effect of green finance on energy efficiency, and the higher the level of digital technology development, the greater the driving effect of green finance. The findings provide empirical evidence and policy implications for building a market-based green financial system and promoting green and efficient development in regions.
Journal: Emerging Markets Finance and Trade
Pages: 3531-3549
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2226324
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2226324
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# input file: MREE_A_2223931_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yingying Chang
Author-X-Name-First: Yingying
Author-X-Name-Last: Chang
Author-Name: Xingqiang Du
Author-X-Name-First: Xingqiang
Author-X-Name-Last: Du
Author-Name: Quan Zeng
Author-X-Name-First: Quan
Author-X-Name-Last: Zeng
Title: Does Information Blocking on Internet Matter Corporate Over-Investment: Evidence from a Quasi-Natural Experiment in China
Abstract: 
 Focusing on Google’s withdrawal from mainland China as a unique setting, this study investigates the impact of information blocking on corporate over-investment. Using a sample of Chinese firms during the period of 2007 to 2014 and employing a difference-in-difference (DID) approach, our findings reveal that corporate over-investment is significantly higher for the treatment firms (firms with high international sales) in the post-period of Google’s withdrawal than that in the pre-period of Google’s withdrawal, suggesting that overseas information blocking boosts corporate over-investment for firms with more global business. Moreover, the positive relation between Google’s exit and firm-level over-investment is less pronounced for cross-listed firms than for non-cross-listed firms, implying that cross listing plays a crucial role in breaking overseas information blockade on internet search for domestic investors. Above findings are still valid after using alternative measures to capture over-investment and the treatment group. Mechanism analysis and heterogeneity tests show that Google’s exit may exacerbate agency conflicts and thus leads to an increase in corporate over-investment. Our study provides an important reference for the understanding of the roles of internet search in information transmission and corporate governance.
Journal: Emerging Markets Finance and Trade
Pages: 3577-3609
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2223931
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2223931
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# input file: MREE_A_2226795_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wenjun Xue
Author-X-Name-First: Wenjun
Author-X-Name-Last: Xue
Author-Name: Feifei Wang
Author-X-Name-First: Feifei
Author-X-Name-Last: Wang
Title: An Investigation of the Nonlinear and Asymmetric Spillover Effects of U.S. Economic Policy Uncertainty on Bond Return Volatility of Emerging Markets
Abstract: 
 This paper investigates the nonlinear and asymmetric relationships between the U.S. economic policy uncertainty (EPU) index and the volatility of bond returns in 36 emerging markets (EMs) using panel quantile regression methods. Our findings indicate that the spillover effects of the U.S. EPU on the volatility of bond returns are strong in EMs, particularly in the upper quantiles of volatility, and are substantial in magnitude. We also explore the impact of the U.S. monetary policy uncertainty (MPU) index and fiscal policy uncertainty (FPU) indices on the volatility of bond returns in 36 EMs, and observe a positive correlation between both the U.S. MPU and the U.S. FPU and bond return volatility in EMs. Of all the spillover effects, the U.S. MPU has the largest magnitude. Additionally, our results demonstrate that the spillover effects induced by three U.S. policy uncertainties are sensitive to the macroeconomic environment, with a stronger impact during financial crises and in countries with high degrees of financial openness.
Journal: Emerging Markets Finance and Trade
Pages: 3487-3515
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2226795
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2226795
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# input file: MREE_A_2223935_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sunyang Hu
Author-X-Name-First: Sunyang
Author-X-Name-Last: Hu
Author-Name: Yifeng Wang
Author-X-Name-First: Yifeng
Author-X-Name-Last: Wang
Title: Quality of Financial Information Disclosure and Efficiency of Resource Allocation Under Dual-Track System: Empirical Evidence of Registration System Reform in China
Abstract: 
 This study examined the listed companies in China’s National Equities Exchange and Quotations (NEEQ) from 2014 to 2021 to investigate the influence of the financial disclosure quality of IPO companies on the speed of passing in different systems of registration and approval from the perspective of resource allocation efficiency. In the trial registration system, high-quality financial disclosure was found to significantly improve IPO enterprises’ speed of passing, while venture capital and its characteristic variables enhanced the relationship between the financial disclosure quality and speed of passing; Distinguishing between regional marketability and firm characteristics attributes reveals that the contribution of venture capital to the relationship between financial disclosure quality and speed of passing is more pronounced in the sample of firms in low marketability regions, high technology, and smaller size. In addition, further research shows that the enterprises with high financial disclosure quality in the registration system sample have higher long-term excess returns after listing. Finally, the conclusion is still robust after using the generalized tendency matching score (GPSM) and instrumental variable method (IV) to eliminate endogenous interference. The conclusion provides empirical support and a theoretical basis for reforming the registration and issuance system in emerging market countries.
Journal: Emerging Markets Finance and Trade
Pages: 3438-3467
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2223935
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2223935
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# input file: MREE_A_2223929_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ying Zhou
Author-X-Name-First: Ying
Author-X-Name-Last: Zhou
Author-Name: Zijun Luo
Author-X-Name-First: Zijun
Author-X-Name-Last: Luo
Author-Name: Xu Tian
Author-X-Name-First: Xu
Author-X-Name-Last: Tian
Title: The Impact of Animal Disease Outbreaks on China’s Meat Imports
Abstract: 
 We assess the effect of three animal disease outbreaks on China’s meat imports from 1992 to 2017, namely foot-and-mouth disease (FMD) for swine, bovine spongiform encephalopathy (BSE) for cattle, and highly pathogenic avian influenza (HPAI) for poultry. Using system-GMM and FGLS estimators, we find that outbreaks of animal diseases in exporting countries reduce China’s import of the meat products. Additionally, we find positive trade diversion and substitution effects in both FMD and HPAI but negative effects in BSE. Although these results indicate that China can accommodate its meat consumption needs through international trade now, we are skeptical that it can continue to do so if animal husbandry practices do not improve in China. This calls for major meat exporters to improve production efficiency and reduce the prevalence of animal diseases. With increasing environmental pressure and high dependency on imported feed caused by the expanding livestock sector, we recommend a sustainable diet by encouraging less consumption of meat.
Journal: Emerging Markets Finance and Trade
Pages: 3550-3576
Issue: 11
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2223929
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2223929
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# input file: MREE_A_2229940_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Yunqing Tao
Author-X-Name-First: Yunqing
Author-X-Name-Last: Tao
Author-Name: Shuai Wang
Author-X-Name-First: Shuai
Author-X-Name-Last: Wang
Author-Name: Dong Chen
Author-X-Name-First: Dong
Author-X-Name-Last: Chen
Title: Unintended Consequences of Social Insurance Law on Stock Price Crash Risk: Quasi-Natural Experimental Evidence from China
Abstract: 
 This study studies whether the Social Insurance Law implemented in 2011 affects the stock price crash risk. Using the data of Chinese listed companies from 2006 to 2018, this study uses the difference-in-difference method to show that the Social Insurance Law significantly reduces stock price crash risk, and when the tax department collects social insurance premiums, this inhibitory effect still exists, which depends on its taxation efforts. Mechanism analysis find that Social Insurance Law reduces agency costs and improves the transparency of enterprises, indicating that the behavior of enterprises to hide and hoard bad news is reduced. Finally, these effects are more pronounced for enterprises with poor corporate governance, enterprises in regions with poor marketization, and enterprises with lower media attention. Overall, this study provides new insights into reducing systemic financial risks and improving financial market stability.
Journal: Emerging Markets Finance and Trade
Pages: 3689-3714
Issue: 12
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2229940
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2229940
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# input file: MREE_A_2232935_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Song Zhan
Author-X-Name-First: Song
Author-X-Name-Last: Zhan
Title: Ultimate Control Rights, Nationalization and Firm Performance: Evidence from China
Abstract: 
 This study extends the empirical literature on nationalization by examining the determinants and consequences of state takeovers among China listed firms in which ultimate control has been transferred from private owners to the government. This study finds that state takeovers are more likely in firms with poor performance and higher leverage. Moreover, privatization of central state-owned enterprises is most likely to be reversed. Contrary to popular belief about government interventions, state takeovers lead to higher profitability and labor productivity. These results suggest that government takeovers could address market failures and enhances firms’ performance in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 3731-3740
Issue: 12
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2232935
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2232935
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# input file: MREE_A_2223930_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Seda Bilyay-Erdogan
Author-X-Name-First: Seda
Author-X-Name-Last: Bilyay-Erdogan
Author-Name: Belma Öztürkkal
Author-X-Name-First: Belma
Author-X-Name-Last: Öztürkkal
Title: The Role of Environmental, Social, Governance (ESG) Practices and Ownership on Firm Performance in Emerging Markets
Abstract: 
 This paper investigates: (i) the effect of environmental, social, and governance (ESG) engagement and ownership attributes on firm performance and (ii) whether different ownership attributes (institutional, foreign, and state ownership) moderate the association between ESG engagement and firm performance. Employing an extensive sample from 22 emerging countries worldwide, we provide cross-country evidence that ESG engagement and its three pillars, i.e. environmental, social, and governance pillars, enhance firm performance, proxied with ROA and Tobin’s Q. Moreover, institutional and foreign ownership positively impact firm performance. We present novel evidence that the positive impact of superior ESG engagement on firm performance is lower for higher institutional ownership companies than lower institutional ownership companies, but greater for higher foreign ownership companies than lower foreign ownership companies.
Journal: Emerging Markets Finance and Trade
Pages: 3776-3797
Issue: 12
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2223930
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2223930
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# input file: MREE_A_2229939_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Wei Jiang
Author-X-Name-First: Wei
Author-X-Name-Last: Jiang
Author-Name: Yaqin Wang
Author-X-Name-First: Yaqin
Author-X-Name-Last: Wang
Author-Name: Churen Sun
Author-X-Name-First: Churen
Author-X-Name-Last: Sun
Author-Name: Pengyang Zhang
Author-X-Name-First: Pengyang
Author-X-Name-Last: Zhang
Title: U.S. FDI in China and the Rise of the U.S. Right Wing
Abstract: 
 This study examined the effect of the U.S. FDI in China on the rise of the U.S. right wing. We constructed the instrumental variables of the U.S. FDI in China and took deindustrialization as an intermediary variable to investigate the mechanism. On one hand, the U.S. FDI in China had a promotion effect on the rise of the U.S. right wing. On the other hand, the positive effect was indirectly caused by deindustrialization. Although the U.S. FDI in China contributed to the rise of the U.S. right wing, the rise of right wing should not be solely blamed on China.
Journal: Emerging Markets Finance and Trade
Pages: 3671-3688
Issue: 12
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2229939
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2229939
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# input file: MREE_A_2236285_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Deokki Ko
Author-X-Name-First: Deokki
Author-X-Name-Last: Ko
Author-Name: Wonho Cho
Author-X-Name-First: Wonho
Author-X-Name-Last: Cho
Title: Financial Experts on the Outside Boards, Financial Stress in Foreign Exchange Markets, and Firm Employment
Abstract: 
 This study examines the role of financial experts on the outside boards on firm-level employment decisions under financial stress in foreign exchange markets (FSIFX). Using firm-level data from the manufacturing industry in South Korea from 2001 through 2019, we observe in the Korean FSIFX a negative relationship with employment. We also find that including a financial expert as an outside director plays a significant role in varying the FSIFX-employment relationship. Specifically, the presence of a financial expert on the firm’s outside board contributes to reducing the negative effects of FSIFX on employment. Moreover, these findings are particularly noteworthy for firms that carry steep export ratios.
Journal: Emerging Markets Finance and Trade
Pages: 3741-3756
Issue: 12
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2236285
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2236285
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# input file: MREE_A_2226325_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lina Yan
Author-X-Name-First: Lina
Author-X-Name-Last: Yan
Author-Name: Yao Hu
Author-X-Name-First: Yao
Author-X-Name-Last: Hu
Author-Name: Minghuan Li
Author-X-Name-First: Minghuan
Author-X-Name-Last: Li
Author-Name: Kam C. Chan
Author-X-Name-First: Kam C.
Author-X-Name-Last: Chan
Title: Does Credit Rating Provide Incremental Predictive Power on a Firm’s Future Financial Distress? Evidence from China
Abstract: 
 We examine the incremental predictive power of credit rating on a firm’s future financial distress using a sample of Chinese credit ratings from 2008 to 2019. Our findings suggest that such credit ratings, especially those using investor-pay mode, improve the incremental predictive power of firms’ future financial distress. Specifically, a one notch rating level increase of issuer-pay (investor-pay) credit rating translates into 1.69% (10.24%) lower probability of financial distress. The findings are robust to using a propensity score matching sample and an alternative metric for financial distress. Additional analysis suggests that the incremental predictive power of credit rating on financial distress is more salient for subsamples of credit ratings 1) issued by credit rating agencies (CRAs) with large market shares, 2) when a CRA has a low likelihood of collusion with a firm, or 3) when a firm receives both investor-pay and issuer-pay credit rating.
Journal: Emerging Markets Finance and Trade
Pages: 3798-3812
Issue: 12
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2226325
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2226325
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# input file: MREE_A_2229942_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yanjing Ge
Author-X-Name-First: Yanjing
Author-X-Name-Last: Ge
Author-Name: Xiaoyan Xiong
Author-X-Name-First: Xiaoyan
Author-X-Name-Last: Xiong
Title: Does CFO Background Affect Internal Control Quality? Evidence from China
Abstract: 
 With scientific progress and intense environmental changes, soft power has received increasing attention, and human initiatives can greatly influence society. Corporate CFOs play a crucial role in the process of internal control of enterprises. Therefore, this study selected the data of A-share listed companies in China from 2010–2021 as the research sample. Taking the CFOs’ background characteristics as the independent variable and the nature of property rights as the moderating variable, this study established regression models based on the professional and financial background to explore the relationship with the dependent variable, internal control quality. It was found that the CFO’s professional and financial background was positively related to the quality of internal controls, and the CFO’s background characteristics significantly improved the quality of internal controls in non-state-owned enterprises compared to state-owned enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 3715-3730
Issue: 12
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2229942
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2229942
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# input file: MREE_A_2236287_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yong Ma
Author-X-Name-First: Yong
Author-X-Name-Last: Ma
Author-Name: Hongming Zhang
Author-X-Name-First: Hongming
Author-X-Name-Last: Zhang
Author-Name: Yuanyuan Wang
Author-X-Name-First: Yuanyuan
Author-X-Name-Last: Wang
Title: Insider Sales and Corporate Bond Yield Spread: Evidence from China
Abstract: 
 We study whether and how insider sales affect a firm’s bond yield spreads. By examining insider sales and corporate bond yield spreads from 2011 to 2022 in the Chinese market, we find robust evidence that insider sales have a significant and important impact on corporate bond yield spreads. A one-standard-deviation increase in insider sales resulted in an increase of 11.82 bps in corporate bond yield spread. Further analysis suggests that while both the information asymmetry channel and the tunneling channel exist, bond investors do not believe that excess return from insider sales would reduce fund occupancy and alleviate default risk. We also find that ownership structure matters for the impact of insider sales on corporate bond yield spreads, where insiders in firms with more concentrated ownership structures tend to tunnel or withhold private information, whereas a more balanced ownership has the opposite effect. There is also weak evidence that the impact of insider sales on corporate bond yield spreads is larger in private firms than in state-owned ones. In addition, institutional investor ownership weakens the role of insider sales in bond pricing and, in particular, weakens the response of bond investors to insider sales in private firms.
Journal: Emerging Markets Finance and Trade
Pages: 3757-3775
Issue: 12
Volume: 59
Year: 2023
Month: 09
X-DOI: 10.1080/1540496X.2023.2236287
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2236287
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# input file: MREE_A_2094761_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peidong Deng
Author-X-Name-First: Peidong
Author-X-Name-Last: Deng
Author-Name: Jun Wen
Author-X-Name-First: Jun
Author-X-Name-Last: Wen
Author-Name: Wei He
Author-X-Name-First: Wei
Author-X-Name-Last: He
Author-Name: Yin-E Chen
Author-X-Name-First: Yin-E
Author-X-Name-Last: Chen
Author-Name: Yun-Peng Wang
Author-X-Name-First: Yun-Peng
Author-X-Name-Last: Wang
Title: Capital Market Opening and ESG Performance
Abstract: 
 This research uses a quasi-natural experiment of the Shanghai-Hong Kong Stock Connect trading system and takes 2011–2019 A-share listed companies as the sample to construct a DID model that empirically proves the improvement effect of capital market opening on corporate ESG performance through external monitoring mechanisms. This effect is also heterogeneous due to firm characteristics. This study presents the Shanghai-Hong Kong Stock Connect trading system as a breakthrough, reveals the mechanism of capital market opening on ESG, and provides new empirical evidence for the study of micro-firm behavior.
Journal: Emerging Markets Finance and Trade
Pages: 3866-3876
Issue: 13
Volume: 59
Year: 2023
Month: 10
X-DOI: 10.1080/1540496X.2022.2094761
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2094761
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# input file: MREE_A_2247139_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Moau Yong Toh
Author-X-Name-First: Moau Yong
Author-X-Name-Last: Toh
Author-Name: Ali Albada
Author-X-Name-First: Ali
Author-X-Name-Last: Albada
Author-Name: Sin Huei Ng
Author-X-Name-First: Sin Huei
Author-X-Name-Last: Ng
Title: Effect of Country Governance on Cross-Border Renewable Energy Investment and Climate Actions in Emerging Countries
Abstract: 
 This study investigates the effect of country governance on climate actions, specifically climate-change mitigation and adaptation, through cross-border renewable energy investment (CB-REI). Using data from 74 emerging countries from 2008 to 2019, we find that the control of corruption, regulatory quality, citizens’ voices and accountability are the key governance pillars that attract CB-REI, which enhances climate actions. Heterogeneity analyses reveal that the CB-REI channel effect is more evident in countries with higher governance quality and carbon emission levels. This study offers policy implications pertaining to governance-related obstacles for CB-REI in emerging countries and their transition toward low-emissions, climate-resilient pathways.
Journal: Emerging Markets Finance and Trade
Pages: 3813-3827
Issue: 13
Volume: 59
Year: 2023
Month: 10
X-DOI: 10.1080/1540496X.2023.2247139
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2247139
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# input file: MREE_A_2138326_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jianhong Cao
Author-X-Name-First: Jianhong
Author-X-Name-Last: Cao
Author-Name: Siong Hook Law
Author-X-Name-First: Siong Hook
Author-X-Name-Last: Law
Author-Name: Desheng Wu
Author-X-Name-First: Desheng
Author-X-Name-Last: Wu
Author-Name: Xiaodong Yang
Author-X-Name-First: Xiaodong
Author-X-Name-Last: Yang
Title: Impact of Local Government Competition and Land Finance on Haze Pollution: Empirical Evidence from China
Abstract: 
 Taking 269 prefecture-level cities in China from 2004 to 2017 as the sample dataset, this research employs spatial analysis techniques to investigate the roles of local government competition and land finance on haze pollution. The paper concludes that a significant spatial spillover and time lag are associated with haze pollution. Local government competition and land finance positively relate to haze pollution in the local area, but also produce the same effect on neighboring areas. Local government competition positively moderates the contribution of land finance to haze pollution both locally and in neighboring areas. Moreover, the role of local government competition on haze pollution is significantly negative in the east region, while significantly positive in the central-west region. The impact of land finance on haze pollution in the east region is negative but insignificant, while significantly positive in the central-west region. Local government competition positively and negatively moderates the role of land finance in the east region on haze pollution, while in the central-west region the role is significantly positive. This study provides new research ideas and empirical reference evidence for alleviating haze pollution, which is valuable for accelerating the improvement of China’s environmental quality.
Journal: Emerging Markets Finance and Trade
Pages: 3877-3899
Issue: 13
Volume: 59
Year: 2023
Month: 10
X-DOI: 10.1080/1540496X.2022.2138326
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2138326
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# input file: MREE_A_2138705_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yechi Ma
Author-X-Name-First: Yechi
Author-X-Name-Last: Ma
Author-Name: Zheng Fu
Author-X-Name-First: Zheng
Author-X-Name-Last: Fu
Author-Name: Weixian Jiang
Author-X-Name-First: Weixian
Author-X-Name-Last: Jiang
Author-Name: Yuhong Liu
Author-X-Name-First: Yuhong
Author-X-Name-Last: Liu
Author-Name: Zilong Wang
Author-X-Name-First: Zilong
Author-X-Name-Last: Wang
Title: The Impact of China’s Overseas Emigration Network on Outward Foreign Direct Investment
Abstract: 
 Emigrants can reduce information asymmetry and provide community enforcement of contracts across international boundaries. This study investigates the impact of China’s overseas emigration network on OFDI with a particular focus on the intensive and extensive margins of OFDI. Using data from 116 countries during the 2005–2019 period, we find that more emigrants in a given country promote both the intensive and extensive margins of OFDI and thus promote OFDI into that country. Furthermore, we find that the positive effects of the emigration network on OFDI only exist among non-high income host countries and non-Belt and Road host countries. Finally, during periods of high global economic policy uncertainty, the positive effect of the emigration network on the extensive margin and OFDI is mitigated.
Journal: Emerging Markets Finance and Trade
Pages: 3928-3939
Issue: 13
Volume: 59
Year: 2023
Month: 10
X-DOI: 10.1080/1540496X.2022.2138705
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2138705
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# input file: MREE_A_2128749_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shu-Chin Lin
Author-X-Name-First: Shu-Chin
Author-X-Name-Last: Lin
Author-Name: Yi-Chen Wu
Author-X-Name-First: Yi-Chen
Author-X-Name-Last: Wu
Title: Finance in a More Globalized Economy
Abstract: 
 This paper empirically examines whether globalization affects the level, volatility and structure of financial development as well as the competition and credit composition of the banking sector. Using dynamic panel estimation techniques, we find, in a sample of advanced and developing countries, that both trade and financial openness promote financial development, raise financial volatility, and result in a more market-based financial system, the effects that moderate with increased openness. It is also found that both trade and financial openness lead to a more competitive, less concentrated banking industry and a greater share of household credit relative to enterprise credit, the effects that dampen with increased openness.
Journal: Emerging Markets Finance and Trade
Pages: 3900-3914
Issue: 13
Volume: 59
Year: 2023
Month: 10
X-DOI: 10.1080/1540496X.2022.2128749
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2128749
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# input file: MREE_A_2135372_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jing Zhang
Author-X-Name-First: Jing
Author-X-Name-Last: Zhang
Author-Name: Shreya Pal
Author-X-Name-First: Shreya
Author-X-Name-Last: Pal
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Title: Does Financial Development Promote Economic Globalization? Evidence from the Top and the Bottom Globalized Emerging Economies
Abstract: 
 This paper examines the role of financial development in economic globalization using balanced panel data from 1984 to 2016. The empirical analysis considers Europe and Central Asia (ECA) and South Asia (SA) as the top and the bottom globalized emerging economies, respectively. Financial development promotes economic globalization in the top globalized developing regions in the long run. The growth in financial institutions also improves economic globalization in the ECA. The opposite finding is reported in the SA economies. The findings suggest that ‘financial development-led economic globalization should not be overlooked by the policymakers of the top globalized developing regions.
Journal: Emerging Markets Finance and Trade
Pages: 3915-3927
Issue: 13
Volume: 59
Year: 2023
Month: 10
X-DOI: 10.1080/1540496X.2022.2135372
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2135372
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# input file: MREE_A_2250904_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jun Ren
Author-X-Name-First: Jun
Author-X-Name-Last: Ren
Author-Name: Shengxian Gao
Author-X-Name-First: Shengxian
Author-X-Name-Last: Gao
Author-Name: Dongliang Pan
Author-X-Name-First: Dongliang
Author-X-Name-Last: Pan
Title: Revealing the Default Risks in MSMEs Financial Leasing: Identification and Underlying Mechanism
Abstract: 
 We explored the default risk of small and medium-sized financial leasing businesses in China based on real transactions of a Chinese financial leasing company from 2018 to 2021. The results show that there is a negative relationship between the financing scale and the default risk of lessee companies. The management cost of financial leasing business moderates the relationship between the business scale and the risk of overdue default. In addition, the improvement of industry competition is expected to select financially sound MSMEs for lessees. These enterprises have demonstrated higher risk resistance in obtaining large-scale financial leasing services. We provide novel insights into the risk management of Chinese financial leasing companies and offer policy recommendations for regulation and development.
Journal: Emerging Markets Finance and Trade
Pages: 3828-3841
Issue: 13
Volume: 59
Year: 2023
Month: 10
X-DOI: 10.1080/1540496X.2023.2250904
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2250904
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# input file: MREE_A_2250907_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chao Yan
Author-X-Name-First: Chao
Author-X-Name-Last: Yan
Author-Name: Ziyi Zhang
Author-X-Name-First: Ziyi
Author-X-Name-Last: Zhang
Author-Name: Yi Feng
Author-X-Name-First: Yi
Author-X-Name-Last: Feng
Title: COVID-19 Pandemic, Corporate Investment and the Real Option Value
Abstract: 
 The outbreak of COVID-19 has a huge negative impact on the firms’ business activities. This paper investigates the effects of COVID-19 pandemic on corporate investment and firm value from the real option perspective. Based on the real options-based model (ROM) proposed by Zhang (2000), we find that COVID-19 crisis accelerates low-profitability firms to reduce investment and exercise put options timely, thereby increasing the value of put options. This finding mainly exists in areas where the COVID-19 pandemic was worse and firms that did not receive government subsidies related to COVID-19. We also find that the value of put options is more pronounced for non-state-owned enterprises and firms with higher internal control quality. However, we do not find the change of growth option value of high-profitability firms during the COVID-19, which indicates that it is difficult for high-profitability firms to grasp the investment expansion opportunities under the pandemic. Our study sheds light on the applicability of ROM and the importance of real option in firm valuation under the major public emergencies.
Journal: Emerging Markets Finance and Trade
Pages: 3842-3865
Issue: 13
Volume: 59
Year: 2023
Month: 10
X-DOI: 10.1080/1540496X.2023.2250907
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2250907
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# input file: MREE_A_2156280_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jian Liu
Author-X-Name-First: Jian
Author-X-Name-Last: Liu
Author-Name: Xin Hu
Author-X-Name-First: Xin
Author-X-Name-Last: Hu
Author-Name: Lizhao Yan
Author-X-Name-First: Lizhao
Author-X-Name-Last: Yan
Title: Structural Change Features and Influencing Factors of China’s Carbon Price
Abstract: 
 
The existence of structural change features can lead to the failure of traditional econometric methods. This research uses the Bai-Perron test to diagnose the structural change point of the price series in China’s pilot carbon market. It uses an impulse response function to analyze the interaction between carbon prices and energy prices, stock price indices, power industry index, and similar asset prices. The results show structural change points in all five carbon markets during the operation period, and the timing of these structural change points relates to an economic situation and compliance period. In addition, the impact mechanisms of the stock price index, similar asset price, and power industry index on the price of China’s pilot carbon market change significantly before and after the structural change points, but the impact of energy price does not change except for the Hubei carbon market.
Journal: Emerging Markets Finance and Trade
Pages: 3952-3967
Issue: 14
Volume: 59
Year: 2023
Month: 11
X-DOI: 10.1080/1540496X.2022.2156280
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2156280
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# input file: MREE_A_2164188_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zhiyang Shen
Author-X-Name-First: Zhiyang
Author-X-Name-Last: Shen
Author-Name: Jiayi Chen
Author-X-Name-First: Jiayi
Author-X-Name-Last: Chen
Author-Name: Kaixuan Bai
Author-X-Name-First: Kaixuan
Author-X-Name-Last: Bai
Author-Name: Yixuan Li
Author-X-Name-First: Yixuan
Author-X-Name-Last: Li
Author-Name: Yuxin Cui
Author-X-Name-First: Yuxin
Author-X-Name-Last: Cui
Author-Name: Malin Song
Author-X-Name-First: Malin
Author-X-Name-Last: Song
Title: The Digital Impact on Environmental Performance: Evidence from Chinese Publishing
Abstract: 
 Digital technology has a significant impact on most industries in the 21st century. The publishing industry is also facing digital transformation, and the traditional paper business is considered polluted and wasteful as it generates carbon emissions. To compare the influence of digital paperless business with the traditional one on environmental performance in publishing, this paper adopts a refined weak disposability model initially introduced by Kuosmanen (2005). The main novelty of the paper is to include two types of desirable outputs in production technology: one is linked to generating undesirable outputs while another is not. Two additional economic assumptions can be imposed on environmental production technology, namely, weak disposability and null-jointness, respectively. We apply the refined model to assess the economic and environmental performance of the publishing industry in China. The paper business generates carbon emissions while the digital outputs (paperless business) may not produce pollution. The empirical results indicate that a vast potential improvement is detected for the digital outputs while limited progress is allowed for traditional outputs. Furthermore, we use the entropy method to obtain a comprehensive digital technology indicator and further explore its influence on performance in the publishing industry.
Journal: Emerging Markets Finance and Trade
Pages: 3982-3998
Issue: 14
Volume: 59
Year: 2023
Month: 11
X-DOI: 10.1080/1540496X.2022.2164188
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2164188
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# input file: MREE_A_2170697_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lizhao Yan
Author-X-Name-First: Lizhao
Author-X-Name-Last: Yan
Author-Name: Zhao Wu
Author-X-Name-First: Zhao
Author-X-Name-Last: Wu
Author-Name: Jian Liu
Author-X-Name-First: Jian
Author-X-Name-Last: Liu
Author-Name: Kok Lay Teo
Author-X-Name-First: Kok Lay
Author-X-Name-Last: Teo
Title: Pricing and Carbon Mitigation in a Dual-Channel Supply Chain: A Dynamic Game Approach
Abstract: 
 Considering the low-carbon preference of consumers, this paper establishes a dynamic decision-making model to study the dynamic pricing decisions and carbon emission reduction decisions of dual channel supply chain members, and discusses the impact of carbon emission reduction on prices and profits. It is found that the distributor’s and the producer’s carbon mitigation can have a positive or negative impact on the distribution price, the direct sales price and the wholesale price. When the competition between the distributor and the producer is not fierce, these three prices will increase with the increase of their carbon mitigation. When the producer’s carbon mitigation effort has a positive impact on the distribution channel demand, the distributor’s profit will increase with the increase of the producer’s carbon mitigation effort. On the other hand, when the producer’s carbon mitigation effort has a negative effect on the distribution channel demand, the distributor’s profit will decrease with the increase of the producer’s carbon mitigation effort. In addition, the distributor’s profit is more sensitive to the producer’s carbon emissions. When the producer and the distributor jointly reduce emissions, appropriate coordination strategies are needed to coordinate the supply chain.
Journal: Emerging Markets Finance and Trade
Pages: 3999-4011
Issue: 14
Volume: 59
Year: 2023
Month: 11
X-DOI: 10.1080/1540496X.2023.2170697
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2170697
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# input file: MREE_A_2140573_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Longguang Yang
Author-X-Name-First: Longguang
Author-X-Name-Last: Yang
Author-Name: Fengshuang Hou
Author-X-Name-First: Fengshuang
Author-X-Name-Last: Hou
Author-Name: Huihong Shi
Author-X-Name-First: Huihong
Author-X-Name-Last: Shi
Title: A Study of Bitcoin-Based Intraday Volatility Forecasting for Cross-Market Spreads
Abstract: 
 This study provides a volatility estimation based on cross-market spreads by analyzing the behavior of Bitcoin cross-market arbitrageurs. This study crawls real-time price data from different exchanges for empirical analysis and verifies the accuracy and validity of the method employed by comparing it with the existing mainstream methods. The following conclusions are drawn: 1) The more exchanges that can be utilized, the smaller the Bitcoin price volatility, and the larger the cross-market spread, the better the estimation effect of the proposed method; and 2) Volume had no significant effect on the estimation using our method.
Journal: Emerging Markets Finance and Trade
Pages: 3941-3951
Issue: 14
Volume: 59
Year: 2023
Month: 11
X-DOI: 10.1080/1540496X.2022.2140573
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2140573
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# input file: MREE_A_2164691_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yizao Chen
Author-X-Name-First: Yizao
Author-X-Name-Last: Chen
Author-Name: Shihua Huang
Author-X-Name-First: Shihua
Author-X-Name-Last: Huang
Title: CEO Reputation and Corporate Risk-Taking: Managerial Competence or Managerial Defence?
Abstract: 
 This study uses China’s A-share listed companies as a research sample to empirically examine the impact of CEO reputation on corporate risk-taking. Our study finds that CEO reputation is positively associated with corporate risk-taking; that is, it supports the managerial competence hypothesis. Furthermore, the concrete path of CEO reputation affecting enterprise risk-taking is shown by the fact that enterprises with a higher CEO reputation reflect higher degrees of innovation (including innovation investment and output), frequency of mergers and acquisitions, capital expenditures, and excessive debt. Heterogeneity analysis shows that the effect of CEO reputation on corporate risk-taking is present only in firms with a higher degree of CEO reputation and a lower level of external governance, and there are no statistically significant differences in the above effects across the nature of property rights. We also find that CEOs with better reputations have higher compensation levels and lower board dissent, which is also consistent with the managerial competence hypothesis. An analysis of the economic consequences shows that a CEO’s reputation can ultimately increase firm value by promoting corporate risk-taking. In addition, the effect of CEO reputation on firm risk reverses to a negative relationship when the CEO is older and has a longer tenure, thereby exhibiting the managerial defense characteristics of reputation.
Journal: Emerging Markets Finance and Trade
Pages: 4028-4053
Issue: 14
Volume: 59
Year: 2023
Month: 11
X-DOI: 10.1080/1540496X.2022.2164691
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2164691
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# input file: MREE_A_2164464_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maoyong Cheng
Author-X-Name-First: Maoyong
Author-X-Name-Last: Cheng
Author-Name: Yang Qu
Author-X-Name-First: Yang
Author-X-Name-Last: Qu
Title: Does Operational Risk Management Benefit from FinTech?
Abstract: 
 We discover the impacts of FinTech on operational risk in the context of Chinese commercial banks from 2008 to 2019. Based on the massive amount of data collected manually, we find that FinTech and its subtypes, except for mobile internet, significantly reduce operational risk. Specifically, the baseline results reveal that for one unit increase in the FinTech index, the decrease in operational risk is about 1.414 units. For different types of FinTech, artificial intelligence (AI) has the most significant impact on operational risk, and for an increase of one unit of the AI index, operational risk is reduced by 4.033 units. Moreover, we find that the impact of FinTech on operational risk mainly comes from the interest, leases, and dividend component and the services component; the influence of FinTech on operational risk is greater in state-owned banks compared to other commercial banks with other ownership structures. Our main results hold for an array of endogeneity and robustness tests.
Journal: Emerging Markets Finance and Trade
Pages: 4012-4027
Issue: 14
Volume: 59
Year: 2023
Month: 11
X-DOI: 10.1080/1540496X.2022.2164464
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2164464
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# input file: MREE_A_2167489_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yan Qiu
Author-X-Name-First: Yan
Author-X-Name-Last: Qiu
Author-Name: Zhi Wang
Author-X-Name-First: Zhi
Author-X-Name-Last: Wang
Author-Name: Mingbo Zheng
Author-X-Name-First: Mingbo
Author-X-Name-Last: Zheng
Title: Can Digital Finance Improve Corporate Environmental Performance? Evidence from Heavy Polluting Listed Companies in China
Abstract: 
 In the context of the digital transformation of China’s financial system and the synergistic growth of its economic environment, this research explores the impact of digital finance development on the environmental performance of enterprises. Through empirical analysis of data gathered from A-share heavy polluters from 2011 to 2020, our findings show that digital finance effectively improves the environmental performance of heavy polluters. The conclusions remain robust after controlling for endogeneity issues and running a series of robustness tests. The mechanism test reveals that the effects of financing and innovation are important channels through which digital finance influences industrial environmental performance. Furthermore, heterogeneity analysis shows that the beneficial influence of digital finance on the environmental performance of firms is enhanced when firms are smaller, have non-state ownership, are located in East China, and have a lower level of financial development. These findings expand upon the factors that influence corporate environmental performance and provide empirical evidence that heavy-polluting companies should fully grasp the opportunities of digital finance development and improve their environmental performance in order to achieve higher-quality development.
Journal: Emerging Markets Finance and Trade
Pages: 4054-4074
Issue: 14
Volume: 59
Year: 2023
Month: 11
X-DOI: 10.1080/1540496X.2023.2167489
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2167489
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# input file: MREE_A_2161817_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Barsha Nibedita
Author-X-Name-First: Barsha
Author-X-Name-Last: Nibedita
Author-Name: Mohd Irfan
Author-X-Name-First: Mohd
Author-X-Name-Last: Irfan
Title: The Dynamic Nexus Among Energy Diversification and Carbon Emissions in the E7 Economies: Investigating the Moderating Role of Financial Development
Abstract: 
 This study investigates the role of financial development in moderating the impact of energy diversification on carbon emissions reduction, using a sample of seven major emerging (E7) economies over the period 1995–2018. A panel cointegration test is employed to investigate any long-run equilibrium relationship among variables. The moderating effect is uncovered using a panel autoregressive distributed lag (ARDL) model. The results from the cointegration test reveal the presence of a long-run equilibrium linkage among financial development, energy diversification, and carbon emissions. The panel ARDL model results indicate that the carbo
n emissions reduction effect of energy diversification is strengthened by an increased level of financial development in the long-run. Notably, a 1% increase in energy diversification accompanied by a 1% increase in financial development favorably moderates the carbon emissions reduction impact by about 2.11%. This finding is novel and contributes to our understanding of how financial development moderates the carbon emissions reduction effect of energy diversification. Based on this finding, appropriate policy recommendations are suggested to achieve energy transition goals in the E7 economies.
Journal: Emerging Markets Finance and Trade
Pages: 3968-3981
Issue: 14
Volume: 59
Year: 2023
Month: 11
X-DOI: 10.1080/1540496X.2022.2161817
File-URL: http://hdl.handle.net/10.1080/1540496X.2022.2161817
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# input file: MREE_A_2195535_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nana Xu
Author-X-Name-First: Nana
Author-X-Name-Last: Xu
Author-Name: Zhifang He
Author-X-Name-First: Zhifang
Author-X-Name-Last: He
Author-Name: Fangzhao Zhou
Author-X-Name-First: Fangzhao
Author-X-Name-Last: Zhou
Author-Name: Wenjie Ding
Author-X-Name-First: Wenjie
Author-X-Name-Last: Ding
Author-Name: Jiaqi Chen
Author-X-Name-First: Jiaqi
Author-X-Name-Last: Chen
Title: Mechanisms Underlying Geopolitical Shocks and Stock Price Crash Risk: Evidence from China
Abstract: 
 Geopolitical uncertainty imposes a significant impact on stock prices in the stock market. We construct dynamic estimations of geopolitical risk exposure of individual stocks listed in China and examine the relationship between individual geopolitical risk and future stock price crash risk. Our results show that geopolitical risk is a more prominent macro factor than economic policy uncertainty measure that affects stock price crash risk. Investigating the underlying mechanism, we find that firms with highly synchronized stock prices, low analyst coverage ratio, low institutional holdings, and large investor heterogeneity tend to be affected more by geopolitical shocks, leading to future stock price crashes. This study shows the importance of promoting efficient information transmission system and improving corporate governance.
Journal: Emerging Markets Finance and Trade
Pages: 4194-4203
Issue: 15
Volume: 59
Year: 2023
Month: 12
X-DOI: 10.1080/1540496X.2023.2195535
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2195535
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# input file: MREE_A_2178844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Chuan Zhang
Author-X-Name-First: Chuan
Author-X-Name-Last: Zhang
Author-Name: Dan Ma
Author-X-Name-First: Dan
Author-X-Name-Last: Ma
Title: Can the Social Network Hinder the Impact of COVID-19 on Economic Uncertainty? New Evidence from China
Abstract: 
 This study investigates the impact of the COVID-19 pandemic on economic uncertainty and its spillover network based on social network analysis. The study constructs the inter-provincial Chinese economic uncertainty spillover network using a mixed frequency dataset and the provincial social network using microblog user data. Furthermore, the temporal exponential random graph model is used to analyze the impact of COVID-19 and social network during three periods. The results show that the COVID-19 pandemic significantly affects China’s provincial economic uncertainty and social network significantly hinders economic uncertainty spillover networks. The inhibitory effect of social networks on uncertainty spillover network has regional heterogeneity, which is more significant in provinces severely affected by the pandemic and strictly controlled.
Journal: Emerging Markets Finance and Trade
Pages: 4088-4106
Issue: 15
Volume: 59
Year: 2023
Month: 12
X-DOI: 10.1080/1540496X.2023.2178844
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2178844
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# input file: MREE_A_2172316_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qingfeng Cai
Author-X-Name-First: Qingfeng
Author-X-Name-Last: Cai
Author-Name: Dongxu Li
Author-X-Name-First: Dongxu
Author-X-Name-Last: Li
Author-Name: Shijie Wang
Author-X-Name-First: Shijie
Author-X-Name-Last: Wang
Title: Heterogeneous Market Reactions to Pandemic Announcements: Evidence from China
Abstract: 
 This study finds that market reactions are overall positive to World Health Organization (WHO)’s announcing COVID-19 a pandemic. The effect is greater among firms with more financial flexibility. We found the positive market reactions are explained by market expectation of government emergency interventions. Market reactions are more positive in regions with a more supportive government and with higher density of state-owned banks. Results imply that government interventions relieve the financial constraints of the private sector through credit lending. Finally, in the first quarter of 2020, only financially flexible firms are able to increase cash holdings.
Journal: Emerging Markets Finance and Trade
Pages: 4075-4087
Issue: 15
Volume: 59
Year: 2023
Month: 12
X-DOI: 10.1080/1540496X.2023.2172316
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2172316
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# input file: MREE_A_2179874_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Shengqiang Zuo
Author-X-Name-First: Shengqiang
Author-X-Name-Last: Zuo
Author-Name: Jun Feng
Author-X-Name-First: Jun
Author-X-Name-Last: Feng
Title: Institutional Segmentation, Inequality in Work Opportunities, and Income in Digital Labor Markets: Evidence Based on Witkey Transactions
Abstract: 
 Digital technologies are rapidly transforming the world of work, creating digital labor markets. Based on transaction cost theory and labor market segmentation theory, this study adopts binary logistic and multiple regression models and uses EPWK transaction data (n = 21,808) to empirically examine the institutional segmentation phenomenon of digital labor markets. This study finds institutional segmentation existing in such markets, owing to differences in the Witkey level among employees, thus leading to inequality in work opportunities and labor remuneration income. Further, transaction mode and task type moderate the segmentation phenomenon. Suggestions are offered to reduce institutional segmentation by improving the platform system.
Journal: Emerging Markets Finance and Trade
Pages: 4125-4137
Issue: 15
Volume: 59
Year: 2023
Month: 12
X-DOI: 10.1080/1540496X.2023.2179874
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2179874
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# input file: MREE_A_2192347_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammad Abubakr Naeem
Author-X-Name-First: Muhammad Abubakr
Author-X-Name-Last: Naeem
Author-Name: Zaheer Anwer
Author-X-Name-First: Zaheer
Author-X-Name-Last: Anwer
Author-Name: Sitara Karim
Author-X-Name-First: Sitara
Author-X-Name-Last: Karim
Author-Name: Aviral Kumar Tiwari
Author-X-Name-First: Aviral Kumar
Author-X-Name-Last: Tiwari
Title: Are Exchange Rate Contagions Asymmetric? Evidence from Emerging Market Economies
Abstract: 
 In view of increasing importance of emerging market currencies in the global foreign exchange markets and the growing concerns regarding the vulnerability of these currencies to global crises, we assess the connectedness of 16 emerging currencies by employing asymmetric domains of time and frequency spanning March 2011 to January 2022. We first notice bidirectional interconnectedness (both positive and negative) among three clusters of sampled exchange rates. The currency contagions follow divergent directions during crisis periods. During US debt selling crisis, there is a short-run negative contagion pointing to the appreciation of currencies. Following the Chinese financial market crisis, emerging market currencies demonstrated devaluation. There is long-run positive contagion (devaluation) in response to European Debt Crisis, Russian Ruble Crisis, Brazilian economic crisis, and Argentinian monetary crisis. The sampled exchange rates demonstrate negative long-run connectedness (appreciation) after COVID-19. The major transmitters to total connectedness are South Africa, Poland, and Mexico and major receivers include Thailand, the Philippines, Malaysia, India, Indonesia, and Egypt. In the long run, China is emerging as a significant transmitter. Our study draws significant policy and practical implications for regulators, investors, and financial market participants.
Journal: Emerging Markets Finance and Trade
Pages: 4107-4124
Issue: 15
Volume: 59
Year: 2023
Month: 12
X-DOI: 10.1080/1540496X.2023.2192347
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2192347
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# input file: MREE_A_2190843_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hao Zheng
Author-X-Name-First: Hao
Author-X-Name-Last: Zheng
Author-Name: Chao Feng
Author-X-Name-First: Chao
Author-X-Name-Last: Feng
Author-Name: Jun Yang
Author-X-Name-First: Jun
Author-X-Name-Last: Yang
Title: Examining the Internal-Structural Effects of Internet Development on China’s Urban Green Total Factor Productivity
Abstract: 
 In the era of widespread internet access, green development has also entered an era of big data. Using panel data of 282 prefecture-level cities in China from 2003 to 2019, this study adopts slacks-based measure (SBM) directional distance function and Global Malmquist-Luenberger (GML) index to calculate the green total factor productivity (GTFP) and its decomposition (i.e. technological progress, scale efficiency, and resource allocation efficiency). On this basis, econometric models are used to study the internal-structural effects of internet development on China’s urban GTFP. It is found that: (1) Internet development plays a positive role in promoting urban GTFP; (2) specifically, internet development is proven to achieve this effect simultaneously by inducing technological innovations, optimizing economic scale, and improving resource allocation efficiency. Among these, inducing technological innovations is the most important path; (3) there are distinct regional heterogeneous effects of internet development on China’s urban GTFP. Based on the above results, corresponding policy suggestions are provided.
Journal: Emerging Markets Finance and Trade
Pages: 4174-4193
Issue: 15
Volume: 59
Year: 2023
Month: 12
X-DOI: 10.1080/1540496X.2023.2190843
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2190843
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# input file: MREE_A_2185096_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Qing Yang
Author-X-Name-First: Qing
Author-X-Name-Last: Yang
Author-Name: Mingbo Zheng
Author-X-Name-First: Mingbo
Author-X-Name-Last: Zheng
Author-Name: Yunliang Wang
Author-X-Name-First: Yunliang
Author-X-Name-Last: Wang
Title: The Role of CBDC in Green Finance and Sustainable Development
Abstract: 
 Central bank digital currency (CBDC) has been the global hot issue in financial and money filed, and is expected to serve as the core digital infrastructure in the future. The environmental impact of CBDC is essential to sustainable development, and it remains debates to scholars, entrepreneurs, and policymakers. This article aims in exploring how CBDC in China affects green finance and sustainable development practically through an empirical investigation on CBDC pilot program. The results suggest that CBDC significantly promotes the issuing of green bonds. Specifically, CBDC increases green bonds issuing more in manufacturing industries, and in state-owned enterprises. Moreover, CBDC is found to decrease SO2 emission, NOx emission, Smoke emission, and improve green land ratio, which is beneficial to sustainable development. Our findings offer a preliminary exposition about the environmental impact of CBDC. We argue that, CBDC is useful to accelerate green finance and hence advances sustainable development, which needs future robust empirical examination. We present some implications of issuing CBDC for policymakers around the world.
Journal: Emerging Markets Finance and Trade
Pages: 4158-4173
Issue: 15
Volume: 59
Year: 2023
Month: 12
X-DOI: 10.1080/1540496X.2023.2185096
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2185096
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# input file: MREE_A_2181663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Juan Tan
Author-X-Name-First: Juan
Author-X-Name-Last: Tan
Author-Name: Xing-Yun Zou
Author-X-Name-First: Xing-Yun
Author-X-Name-Last: Zou
Title: Water-Related Technological Innovations and Water Use Efficiency: International Evidence
Abstract: 
 Water-related technological innovations have been increasingly recognized in recent years as promising techniques to solve the water crisis, raising attention in the academic communities of water research and sustainable development. This research thus investigates the relationship between water-related technological innovations and water use efficiency and makes the following contributions. First, this paper validates the significant improvement effects of water-related technological innovations on water use efficiency and notes that such influences will persist over the next 6 years. This finding comes from a panel fixed effects model on a sample of 75 countries from 1997 to 2019 and is verified by a series of robustness tests. In addition, this paper shows that the above improvement impacts are heterogeneous among different countries, and that the impacts are significantly positive in low-income, left-wing, and democratic countries. Lastly, our empirical findings offer an important reference for policymakers to improve water use efficiency and mitigate the water crisis.
Journal: Emerging Markets Finance and Trade
Pages: 4138-4157
Issue: 15
Volume: 59
Year: 2023
Month: 12
X-DOI: 10.1080/1540496X.2023.2181663
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2181663
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# input file: MREE_A_2210715_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Weihong Xie
Author-X-Name-First: Weihong
Author-X-Name-Last: Xie
Author-Name: Yukun Zou
Author-X-Name-First: Yukun
Author-X-Name-Last: Zou
Author-Name: Haizhen Guo
Author-X-Name-First: Haizhen
Author-X-Name-Last: Guo
Author-Name: Yongjian Wang
Author-X-Name-First: Yongjian
Author-X-Name-Last: Wang
Title: Digital Innovation and Core Competence of Manufacturing Industry: Moderating Role of Absorptive Capacity
Abstract: 
 In the digital economy era, traditional manufacturing enterprises face a significant challenge due to fierce competition regarding products, channels, digital technology, management, and core competencies. As a result, many enterprises strive to leverage digital technology to gain new processes, products, services, and business models, thereby enhancing their competitive edge. This paper mainly focuses on how digital innovation based on different value-creation methods can help enterprises build their core competence. Using a sample of 254 questionnaires from manufacturing enterprises in China, this study investigates whether and how efficiency-based, convergence-based, and generativity-based digital innovation supports the development of core competence using ordinary least squares (OLS) regression. Further, this paper examines the moderating effect of absorptive capacity. The empirical results indicate that digital innovation encourages the establishment of core competence, and absorptive capacity strengthens the role of efficiency-based digital innovation but inhibits convergence-based and generativity-based digital innovation. This study contributes to a clearer understanding of the significance of digital innovation for Chinese manufacturing enterprises and provides useful insights for other countries to rethink their innovation models.
Journal: Emerging Markets Finance and Trade
Pages: 185-202
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2210715
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2210715
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# input file: MREE_A_2210714_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Xiaoyan Li
Author-X-Name-First: Xiaoyan
Author-X-Name-Last: Li
Author-Name: Ying Sun
Author-X-Name-First: Ying
Author-X-Name-Last: Sun
Author-Name: Yuantao Xie
Author-X-Name-First: Yuantao
Author-X-Name-Last: Xie
Title: Exploring the Effect of Policies on Environmental Pollution Liability Insurance in China’s Highly Polluting Industries: Applying Ajzen’s Theory of Planned Behavior
Abstract: 
 This paper investigates the effects of different types of government policies related to environmental pollution liability insurance (EPLI) and how these policies promote the demand for EPLI of polluting enterprises. Based on the theory of planned behavior (TPB), we establish a research framework to analyze the effects and mechanisms of the three different policies (mandatory, incentive, and monitoring policies). Our empirical results suggest that the mandatory and monitoring policies can effectively promote companies to buy insurance, but the incentive policies have no significant impact on the insurance demand overall. Furthermore, companies with more positive environmental attitudes are not sensitive to mandatory policies. Although the overall effect of incentive policies is not significant, they have a significant positive impact on the EPLI demand of non-state-owned companies. The monitoring policies prompt enterprises to purchase insurance by strengthening information disclosure and compliant production.
Journal: Emerging Markets Finance and Trade
Pages: 165-184
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2210714
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2210714
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# input file: MREE_A_2198085_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Gen-Fu Feng
Author-X-Name-First: Gen-Fu
Author-X-Name-Last: Feng
Author-Name: Xudong Li
Author-X-Name-First: Xudong
Author-X-Name-Last: Li
Title: The Roles of Anti-Monopoly on Green Innovation: Evidence from the Chinese Manufacturing Industry
Abstract: 
 This research investigates the impact of anti-monopoly law on green innovation by analyzing data on 2539 manufacturing listed firms in China from 2003–2020. The empirical findings first show that implementation of the anti-monopoly law has a significant inhibitory effect on green technology innovation. Second, the inhibitory effect of the anti-monopoly law on green innovation mainly exists in state-owned monopolies and regions with a higher degree of marketization. Finally, the anti-monopoly law affects the green technological innovation of monopolies mainly by reducing monopoly power, strengthening financing constraints, and increasing business risks. The findings herein provide a valuable empirical basis for policymaking bureaus to improve anti-monopoly laws.
Journal: Emerging Markets Finance and Trade
Pages: 1-18
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2198085
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2198085
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# input file: MREE_A_2199119_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Yuxue Chi
Author-X-Name-First: Yuxue
Author-X-Name-Last: Chi
Author-Name: Zhongbo Jing
Author-X-Name-First: Zhongbo
Author-X-Name-Last: Jing
Author-Name: Zhidong Liu
Author-X-Name-First: Zhidong
Author-X-Name-Last: Liu
Author-Name: Liyao Qi
Author-X-Name-First: Liyao
Author-X-Name-Last: Qi
Title: The Financial Impact of COVID-19 from the Perspective of Media Coverage: Evidence from China
Abstract: 
 This paper merges three textual models to construct a series of indicators, which can yield more refined proxies for financial media coverage, to measure the impacts of COVID-19 on Chinese financial markets. Results show that the basic indicator Granger causes the volatilities of bond and stock markets and contributes more to the stock market after the outbreak of COVID-19. Next, four specific market-related indicators have significant effects on the corresponding financial market after the outbreak. Finally, the policy-related indicator has a significant effect on four financial markets after the outbreak, and it causes greater volatility in the stock market. This paper can help the government to stabilize the financial market by managing financial media attention.
Journal: Emerging Markets Finance and Trade
Pages: 44-58
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2199119
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2199119
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# input file: MREE_A_2207702_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Xinkuo Xu
Author-X-Name-First: Xinkuo
Author-X-Name-Last: Xu
Author-Name: Jingsi Li
Author-X-Name-First: Jingsi
Author-X-Name-Last: Li
Author-Name: Danyang Yin
Author-X-Name-First: Danyang
Author-X-Name-Last: Yin
Title: How and Why Does Green Bond Have Lower Issuance Interest Rate? Evidence from China
Abstract: 
 This paper studies the issuing pricing character of green bonds with the evidence from China and further analyzes the reason why green factor affects bond issuing pricing by analyzing credit rating’s intermediary effect and exploring the mediating of policy incentives and third-party green certification. Furthermore, heterogeneity analysis is conducted to analyze how green factor impacts on bond issuing pricing at different quantiles and for companies in different industries or with different ownership. The findings include: (1) Green factor generally reduces the issuance interest rate of green bonds, though this effect is not significant at the low quantiles or at the early development stage. (2) Green factor’s impact on bond issuing pricing occurs partly by improving bond credit rating, fully by this way for companies in the construction industry, but directly for companies in other industries. (3) For non-state-owned companies, green factor has direct effect on bond issuing pricing, but this effect is not significant for state-owned companies. (4) Third-party green certification and incentive policies enhance the reducing effect of green factor on the issuance interest rate. This study provides a theoretical reference for environment-friendly investors, financiers with green projects and the regulators caring about green finance.
Journal: Emerging Markets Finance and Trade
Pages: 138-148
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2207702
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2207702
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# input file: MREE_A_2199118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Jui-Jane Chang
Author-X-Name-First: Jui-Jane
Author-X-Name-Last: Chang
Author-Name: Pao-Hsien Huang
Author-X-Name-First: Pao-Hsien
Author-X-Name-Last: Huang
Author-Name: Ting-Pin Wu
Author-X-Name-First: Ting-Pin
Author-X-Name-Last: Wu
Title: Pricing and Risk Management of Multi-Assets Financial Instruments to Natural Disasters
Abstract: 
 COVID-19 not only led to a significant loss of human lives but also brought indelible economic loss. To transfer the natural disaster risk, a variety of financial instruments written on the environmental phenomena have been developed and issued by financial institutions. The gamma distribution family is characterized by sparsity, heavy tail, and high skewness; thus, it has been widely used to model the data of environmental phenomena. To exploit the versatility of the gamma distribution, Vitiello and Poon propose the pricing model for financial instruments under the general equilibrium risk neutral valuation relationship (RNVR) framework. Though the VP model is capable of pricing financial instruments, their underlying is limited to a single asset. However, the vast majority of firms face various risks and prefer more efficient and cheaper ways to hedge these risks and maintain financial stability. To price multiple-asset financial instruments, this study extends the single-asset VP model to a multi-asset VP model (MVP) under the RNVR framework. Based on the MVP model, this study demonstrates two applications to price basket options and spread options. To manage the pricing of financial instruments that do not have closed-form pricing formulas, this study develops the Monte Carlo simulation method within the MVP model framework. For risk management, this study provides hedge ratios for market practitioners to manage their risk exposures.
Journal: Emerging Markets Finance and Trade
Pages: 19-43
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2199118
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2199118
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# input file: MREE_A_2210716_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Chi Keung Lau
Author-X-Name-First: Chi Keung
Author-X-Name-Last: Lau
Author-Name: Gupteswar Patel
Author-X-Name-First: Gupteswar
Author-X-Name-Last: Patel
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: Bimal Kishore Sahoo
Author-X-Name-First: Bimal Kishore
Author-X-Name-Last: Sahoo
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Title: Effectiveness of Fiscal and Monetary Policies in Promoting Environmental Quality: Evidence from Five Large Emerging Economies
Abstract: 
 Growing climate change concern invites policy responses from all corners. Governments and central banks in emerging market economies pose interests in environmental urgencies. This paper reexamines fiscal and monetary policies’ effects on environmental quality in five large emerging economies (Brazil, Russia, India, China, and South Africa) from 1990 to 2018. Effects of population, economic growth, and technology on CO2 emissions are also estimated. According to the Pooled Mean Group-Autoregressive Distributed Lag estimations, Panel Fully Modified Ordinary Least Squares, and Driscoll-Kraay estimations, expansionary fiscal and monetary policies significantly improve environmental quality. Technology also promotes environmental quality. However, economic and population growth degrade the natural environment in the long run. The paper also discusses potential policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 203-215
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2210716
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2210716
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# input file: MREE_A_2212837_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Feng Wei
Author-X-Name-First: Feng
Author-X-Name-Last: Wei
Author-Name: Lei Zhou
Author-X-Name-First: Lei
Author-X-Name-Last: Zhou
Title: Firms’ Engagement in Poverty Alleviation Campaign and Stock Price Crash Risk: Evidence from China
Abstract: 
 This study explores the relationship between firms’ engagement in poverty-alleviation campaigns and stock price crash risk. We use a large sample of Chinese firms listed on Shanghai and Shenzhen stock markets and find that firms’ engagement in poverty alleviation campaigns is positively associated with future stock price crash risk. Moreover, the positive relationship between firms’ engagement in poverty alleviation campaigns and crash risk is more pronounced for state-owned enterprises and firms with relatively concentrated ownership. However, this is less pronounced for those with higher analyst and media coverage. Our results are consistent with the agency theory, suggesting that engaging in poverty alleviation campaign may facilitate managers’ bad news hoarding behavior and increase stock price crash risk.
Journal: Emerging Markets Finance and Trade
Pages: 149-164
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2212837
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2212837
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# input file: MREE_A_2206515_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Baochen Yang
Author-X-Name-First: Baochen
Author-X-Name-Last: Yang
Author-Name: Chunying Guo
Author-X-Name-First: Chunying
Author-X-Name-Last: Guo
Author-Name: Ying Fan
Author-X-Name-First: Ying
Author-X-Name-Last: Fan
Title: Institutional Investor Networks and ESG Performance: Evidence from China
Abstract: 
 This paper examines whether and how the network centrality of institutional investors affects firms’ sustainability development. Using data from the Chinese market, we find that central institutional investors in the social network significantly increase firms’ overall ESG performance. For the environmental, social, and governance pillars of ESG, we find that environmental performance is more likely to be driven by central institutional investors. We further show that central institutional investors act as active monitors and resource providers, enhancing firms’ ESG performance by improving corporate internal control quality, promoting the corporate information environment, alleviating financing constraints, and increasing green innovation capability. Furthermore, the relationship between centrality and ESG performance is considerably more pronounced for firms with political connections or under a high degree of industry competition but more diminished in periods of high economic policy uncertainty.
Journal: Emerging Markets Finance and Trade
Pages: 113-137
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2206515
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2206515
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# input file: MREE_A_2210719_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Weiqi Liu
Author-X-Name-First: Weiqi
Author-X-Name-Last: Liu
Author-Name: Zuojun Wen
Author-X-Name-First: Zuojun
Author-X-Name-Last: Wen
Title: The Time Secret of Chinese A-Share Systematic Risk: Overnight and Intraday
Abstract: 
 Based on all daily A-share data from January 2006 to December 2021, this study examines the relationship between overnight and intraday returns and market beta using Fama-Macbeth regressions and panel regressions to explore the reasons for the weak correlation between systematic risk and full-day returns in the Chinese A-share market. The results show that the overnight risk premium of the Chinese A-share market is significantly negative. The intraday risk premium is negligible when portfolios are sorted by beta, industry and Book-to-Market ratios, and stock characteristics. The slope of the securities market line (SML) tends to zero due to the interaction of the uncertain intraday risk premium and the negative correlation between overnight returns and market risk.
Journal: Emerging Markets Finance and Trade
Pages: 99-112
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2210719
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2210719
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# input file: MREE_A_2210718_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Qihang Xue
Author-X-Name-First: Qihang
Author-X-Name-Last: Xue
Author-Name: Caiquan Bai
Author-X-Name-First: Caiquan
Author-X-Name-Last: Bai
Author-Name: Jinmeng Shi
Author-X-Name-First: Jinmeng
Author-X-Name-Last: Shi
Author-Name: Dequn Cui
Author-X-Name-First: Dequn
Author-X-Name-Last: Cui
Title: Regional Integrity and Corporate Green-Technology Innovation: Evidence from Deadbeat Borrowers in China
Abstract: 
 Corporate green-technology innovation (GTI), an inevitable choice for sustainable development in China and the world, has attracted widespread attention in academic circles. However, prior studies have ignored the critical impact of informal institutions on GTI. The present study introduces the concept of regional integrity, as an important informal institution. It analyzes whether, how, and the extent to which levels of regional integrity can influence GTI in firms. Based on data derived from people known to have defaulted on orders issued by the Supreme People’s Court and green patent-licensing data from listed companies between 2013 and 2020, we show that a decline in regional integrity levels can significantly inhibit GTI. We use instrumental-variable method to overcome a potential endogeneity problem; after a series of robustness tests, the conclusions remain valid. Further analysis shows that lower levels of regional integrity can hinder corporate GTI by reducing the willingness of firms to disclose environmental information and diminishing the impact of environmental regulations. We also find that, for firms whose directors and general managers do not hold concurrent posts, state-owned firms, and utility patents, lower levels of regional integrity have a more significant inhibitory effect on GTI.
Journal: Emerging Markets Finance and Trade
Pages: 83-98
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2210718
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2210718
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# input file: MREE_A_2199121_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231209T012025 git hash: e41d04c31c
Author-Name: Haoyu Gao
Author-X-Name-First: Haoyu
Author-X-Name-Last: Gao
Author-Name: Yiling Ouyang
Author-X-Name-First: Yiling
Author-X-Name-Last: Ouyang
Author-Name: Huiyu Wen
Author-X-Name-First: Huiyu
Author-X-Name-Last: Wen
Title: Pricing the Pandemic: Evidence from the Bond Market in China
Abstract: 
 This study investigates whether and how the pandemic is priced in the bond market in China. Using the city-level COVID-19 cases on a daily basis, we find a significant positive relationship between the pandemic outbreak and corporate credit spreads, implying that investor risk perception on pandemic exposure attracts a premium. Consistent with the default risk channel, corporate financial resilience alleviates pandemic pricing. Information asymmetry and tail risk can amplify the pricing effect because of reduced investor risk-bearing capacity. These findings are robust in addressing endogeneity concerns. We contribute to the emerging literature on the pandemic effect on credit markets.
Journal: Emerging Markets Finance and Trade
Pages: 59-82
Issue: 1
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2199121
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2199121
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# input file: MREE_A_2213377_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Deepa Bannigidadmath
Author-X-Name-First: Deepa
Author-X-Name-Last: Bannigidadmath
Author-Name: MHA Ridhwan
Author-X-Name-First: MHA
Author-X-Name-Last: Ridhwan
Author-Name: Fiskara Indawan
Author-X-Name-First: Fiskara
Author-X-Name-Last: Indawan
Title: Global Uncertainty and Economic Growth – Evidence from Pandemic Periods
Abstract: 
 This paper investigates whether global uncertainty predicts economic growth rates using a global sample of 136 countries. We use the panel regression model and find strong evidence that global uncertainty negatively predicts the economic growth rate. Further, the negative impact of global uncertainty on economic growth rates is amplified during pandemic periods versus non-pandemic periods. Our main findings hold after a range of robustness tests.
Journal: Emerging Markets Finance and Trade
Pages: 345-357
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2213377
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2213377
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# input file: MREE_A_2218519_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jun Wen
Author-X-Name-First: Jun
Author-X-Name-Last: Wen
Author-Name: Siqin Wang
Author-X-Name-First: Siqin
Author-X-Name-Last: Wang
Author-Name: Shaohua Yang
Author-X-Name-First: Shaohua
Author-X-Name-Last: Yang
Author-Name: Xia Chen
Author-X-Name-First: Xia
Author-X-Name-Last: Chen
Title: International Sanctions and Innovation : Empirical Evidence from China’s A-Share Listed Companies
Abstract: 
 Based on data from A-share listed companies in China from 1990 to 2018, this research explores the impact of international sanctions on enterprise technological innovation and their mechanism. Findings demonstrate that international sanctions have a significant inhibitory impact on enterprise technological innovation and are still valid after several robustness tests and endogeneity treatments. Analysis of heterogeneous enterprises presents that the inhibitory effect is mitigated in state-owned enterprises (SOEs) and monopoly industry enterprises, but intensifies in high-tech enterprises. Further mechanism analysis notes that the inhibitory effect is partly transmitted by weakening the internal and external financing capacities of companies.
Journal: Emerging Markets Finance and Trade
Pages: 263-281
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2218519
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218519
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# input file: MREE_A_2218962_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Li Ji
Author-X-Name-First: Li
Author-X-Name-Last: Ji
Author-Name: Wei Zhang
Author-X-Name-First: Wei
Author-X-Name-Last: Zhang
Title: Official Turnover, Political Connections and Enterprise Subsidies: Evidence from China
Abstract: 
 This paper investigates the role of political connections in Chinese industrial enterprises receiving government fiscal subsidies. Using data on local officials and enterprises in China, we empirically examine how changes in political connections – due to turnover of key local government officials – impact enterprise subsidies. We find that enterprise subsidies decrease significantly in the year when local officials’ turnover. However, subsidies change less significantly when the local party secretary is promoted locally or has greater incentives for promotion. The impact of changing political connections is greater for non-state-owned enterprises and large-scale enterprises. Our research helps understand the dynamics between local governments and markets in China. It also has important implications for regulating how subsidies are distributed.
Journal: Emerging Markets Finance and Trade
Pages: 282-291
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2218962
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218962
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# input file: MREE_A_2215891_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Xiaoyan Niu
Author-X-Name-First: Xiaoyan
Author-X-Name-Last: Niu
Author-Name: Baoqi Li
Author-X-Name-First: Baoqi
Author-X-Name-Last: Li
Author-Name: Guohua Ni
Author-X-Name-First: Guohua
Author-X-Name-Last: Ni
Author-Name: Zhenling Chen
Author-X-Name-First: Zhenling
Author-X-Name-Last: Chen
Title: Exploring the Nexus of Enterprise Ownership Structure and Food Safety Incidents: Evidence from China
Abstract: 
 Enterprises with different ownership structures adopt diverse strategies to respond to food safety incidents (FSIs). This study explores the nexus between enterprise ownership structure and the effect of FSIs using 2,896 cases from February 2004 to February 2017. The estimated results show that the FSIs of state-owned enterprises have a greater social impact than those of foreign-funded and private enterprises. The government may adopt a “censorship” strategy to handle FSIs in state-owned enterprises, resulting in a time-lag effect. This strategy will bring substantial economic losses to not only its own sector but also other food sectors. For foreign-funded enterprises with FSIs, their rapid responses prevents significant economic losses. These findings provide empirical and theoretical support for strengthening food regulations and creating immediate response mechanisms for state-owned enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 388-400
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2215891
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2215891
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# input file: MREE_A_2213378_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jiajia Cheng
Author-X-Name-First: Jiajia
Author-X-Name-Last: Cheng
Author-Name: Zhuangxiong Yu
Author-X-Name-First: Zhuangxiong
Author-X-Name-Last: Yu
Author-Name: Pundarik Mukhopadhaya
Author-X-Name-First: Pundarik
Author-X-Name-Last: Mukhopadhaya
Author-Name: Yang Yang
Author-X-Name-First: Yang
Author-X-Name-Last: Yang
Title: The Global Financial Crisis and China’s Export in Belt and Road Countries: An Analysis Using Product-Level Data
Abstract: 
 Using SITC-3 product-level data from the CEPII-BACI database, we find that the share of imports from China by countries in the one-belt region slowed down significantly after the global financial crisis (GFC) in 2008, which predates the Belt and Road Initiative (BRI), while there was no slowdown in the one-road region. Analysis using the difference-in-differences (DID) method reveals that the GFC inhibited China’s export to countries in the one-belt region and this effect has become stronger over time. This conclusion remains robust for other control groups over various time segment points and different product dimensions. Further analysis shows that the slowdown of China’s export expansion in landlocked countries, and in Europe, and the Middle East is the main contributing factor to the post-crisis slowdown in Chinese exports in the one-belt countries. Mechanism analysis shows that shrinkage in the geographical import networks of the one-belt countries, which has been aggravated by countries’ concentration of import sources and relative trade proximity with China, explains the slowdown in general. Heterogeneous analyses reveal that after the GFC, the share of imports from China fell least in primary and resource-based products, then in medium-tech and high-tech products, and fell most in low-tech products.
Journal: Emerging Markets Finance and Trade
Pages: 217-232
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2213378
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2213378
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# input file: MREE_A_2217327_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yuqing Feng
Author-X-Name-First: Yuqing
Author-X-Name-Last: Feng
Author-Name: Mengxi He
Author-X-Name-First: Mengxi
Author-X-Name-Last: He
Author-Name: Yaojie Zhang
Author-X-Name-First: Yaojie
Author-X-Name-Last: Zhang
Title: Market Skewness and Stock Return Predictability: New Evidence from China
Abstract: 
 Market skewness is an important indicator of market risk. We decompose market skewness into good and bad skewness and further study the relationship between various skewness and the stock market returns in China. Empirical results show that good skewness can significantly predict stock market returns in- and out-of-sample. Furthermore, compared to macroeconomic variables and variance variables, good skewness can provide complementary or dominant information. We also find that good skewness can provide helpful information in predicting stock market returns beyond what market skewness and bad skewness provide. A mean-variance investor can obtain sizable economic gains by using good skewness. The economic source of predictability is the cash flow channel.
Journal: Emerging Markets Finance and Trade
Pages: 233-244
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2217327
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2217327
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# input file: MREE_A_2218967_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Daniel Ferreira Caixe
Author-X-Name-First: Daniel Ferreira
Author-X-Name-Last: Caixe
Author-Name: Pedro Cesar Pestana Pavan
Author-X-Name-First: Pedro Cesar Pestana
Author-X-Name-Last: Pavan
Author-Name: Natália Diniz Maganini
Author-X-Name-First: Natália Diniz
Author-X-Name-Last: Maganini
Author-Name: Hsia Hua Sheng
Author-X-Name-First: Hsia Hua
Author-X-Name-Last: Sheng
Title: Foreign Institutional Ownership and Firm Value: Evidence of “Locust Foreign Capital” in Brazil
Abstract: 
 In this paper, we investigate the role of institutional investors on firm value in Brazil. Given this purpose, we construct a longitudinal dataset of Brazilian companies in which 2,019 distinct institutional investors from 47 countries had equity holdings from 2009 to 2018. In contrast with previous studies, panel data regressions indicate that foreign institutional ownership decreases corporate value, even when we mitigate for endogeneity concerns through the generalized method of moments estimator. Additionally, the negative effect of foreign institutional ownership on firm value is greater during times of high political uncertainty. Our findings suggest that foreign institutional investors may induce family-controlling shareholders to adopt short-term strategies that destroy company value, which is consistent with the “locust foreign capital” view.
Journal: Emerging Markets Finance and Trade
Pages: 310-327
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2218967
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218967
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# input file: MREE_A_2218964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Hao-Chang Yang
Author-X-Name-First: Hao-Chang
Author-X-Name-Last: Yang
Author-Name: Chun-Ping Chang
Author-X-Name-First: Chun-Ping
Author-X-Name-Last: Chang
Author-Name:  Sahminan
Author-X-Name-First: 
Author-X-Name-Last: Sahminan
Author-Name: Arnita Rishanty
Author-X-Name-First: Arnita
Author-X-Name-Last: Rishanty
Author-Name: Quan-Jing Wang
Author-X-Name-First: Quan-Jing
Author-X-Name-Last: Wang
Title: The Nexus Between Monetary Policy, Innovation Efficiency, and Total Factor Productivity-Evidence from Global Panel Data
Abstract: 
 This research explores the impact of monetary policy on the growth rate of total factor productivity (TFPG) and innovation efficiency (IE) through panel data of 30 countries from 1983 to 2018 by the bias-corrected fixed-effect dynamic (BCFE) model. We find that tight monetary policy negatively impacts the growth rate of total factor productivity (TFPG) and innovation efficiency (IE), which is still valid after a series of robustness tests. We then perform sub-sample regressions, and the results show that countries with higher government efficiency, higher financial development, and stricter environmental policy can reduce the negative impact of tightening monetary policy on total factor productivity and innovation efficiency. Our research illustrates that a tightening monetary policy not only adversely impacts total factor productivity but also influences the main driving force of its growth-innovation efficiency.
Journal: Emerging Markets Finance and Trade
Pages: 292-309
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2218964
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218964
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# input file: MREE_A_2218516_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Maochuan Wang
Author-X-Name-First: Maochuan
Author-X-Name-Last: Wang
Author-Name: Xixiong Xu
Author-X-Name-First: Xixiong
Author-X-Name-Last: Xu
Author-Name: Heng Zhan
Author-X-Name-First: Heng
Author-X-Name-Last: Zhan
Title: Does Confucianism Influence Business Strategy?
Abstract: 
 This study examines the effect of Confucianism, an influential cultural belief and ethical philosophy in East Asia, on business strategy. Employing a large-scale archival dataset of Chinese public firms covering 2007 to 2020, we provide evidence that Confucianism is positively associated with analytical-oriented strategies. Our empirical findings remain intact after accounting for alternative Confucianism measures, controlling formal institutions and religions, instrumental variable methods, and other approaches to addressing endogeneity and robustness issues. Cross-sectional analyses further reveal that the documented effect is more evident for non-state-owned firms, firms with executives lacking overseas experience, and those operating in higher economic policy uncertainty. Overall, our study sheds light on how traditional culture, an important dimension of informal institutions, shapes corporate strategic decisions in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 245-262
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2218516
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218516
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# input file: MREE_A_2218966_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Aifan Ling
Author-X-Name-First: Aifan
Author-X-Name-Last: Ling
Author-Name: Jia Zhou
Author-X-Name-First: Jia
Author-X-Name-Last: Zhou
Author-Name: Shaojie Lai
Author-X-Name-First: Shaojie
Author-X-Name-Last: Lai
Author-Name: Kai Xing
Author-X-Name-First: Kai
Author-X-Name-Last: Xing
Title: Is There a Bright Side to the Aggregate Volatility Risk of the Bank System? ---A New Perspective from Corporate Innovation Quality in China
Abstract: 
 In this paper, we apply the banking sector volatility connectedness proposed by Diebold and Yilmaz 2014 to measure the dynamic aggregate volatility risk of the bank system. Using this measure, we study how the aggregate volatility risk of the bank system affects the innovation quality of non-financial listed firms in China. This study finds a positive relationship between the banking sector volatility connectedness and corporate innovation quality. Financial constraints and bank supervision are two plausible channels through which banking sector volatility connectedness could affect corporate innovation quality. In addition, the positive effect of banking sector volatility connectedness on firm innovation quality is suppressed for bank-related firms, and during high economic policy uncertainty and post-2015 stock market crash periods. The results are consistent to a battery of robustness test. Our empirical results present a novel finding that an appropriate high aggregate volatility risk of the bank system has a bright side for company innovation.
Journal: Emerging Markets Finance and Trade
Pages: 371-387
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2218966
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2218966
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# input file: MREE_A_2216842_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Qinghua Song
Author-X-Name-First: Qinghua
Author-X-Name-Last: Song
Author-Name: Qiming Zhong
Author-X-Name-First: Qiming
Author-X-Name-Last: Zhong
Author-Name: Songlin Zeng
Author-X-Name-First: Songlin
Author-X-Name-Last: Zeng
Title: Intellectual Property Protection, Financial Innovation and Corporate Innovation: Evidence from a Quasi-Natural Experiment in China
Abstract: 
 Using China’s staggered intellectual property pilot and demonstration city (IPPDC) policy and the difference-in-differences method, this study assesses the effect of intellectual property (IP) protection on corporate innovation. The policy significantly stimulates corporate innovation investment and quality due to enhanced IP administrative enforcement after policy implementation. Financial innovation mitigates information asymmetry and negative spillovers, promoting treated firms’ technological development. By substituting high-failure-tolerance institutional investors, IP pledge financing helps treated firms to fund innovation activities. This study reveals the IP protection effect on corporate innovation, providing insights for emerging economies to formulate public policies and finance systems to achieve innovation-driven development.
Journal: Emerging Markets Finance and Trade
Pages: 358-370
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2216842
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2216842
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# input file: MREE_A_2223934_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Zuoxiang Zhao
Author-X-Name-First: Zuoxiang
Author-X-Name-Last: Zhao
Author-Name: Shreya Pal
Author-X-Name-First: Shreya
Author-X-Name-Last: Pal
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Title: Effects of Financial and Trade Globalization on Total Factor Productivity Growth in Emerging Economies
Abstract: 
 This article considers the annual sample from 1984 to 2019 in a panel dataset of 20 emerging economies (i.e. Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Kuwait, Malaysia, Mexico, Peru, the Philippines, Poland, Saudi Arabia, South Africa, Thailand, and Turkey) given by Morgan Stanley Capital International (MSCI), to explore the effects of trade and financial globalization on total factor productivity (TFP) growth. It considers domestic credit to the private sector by banks as a percentage of gross domestic product (GDP), labor force, and total gross fixed capital formation as a percentage of GDP as control variables in the total factor productivity function. The article considers the direct effects of trade and financial globalization. It also checks the moderating impact of domestic credit on TFP. The long-run estimation shows that domestic credit, labor force, and financial globalization reduce TFP growth, whereas investments and trade globalization enhance it. Interestingly, their moderating effect enhances TFP in the long run. The policy implications are also discussed.
Journal: Emerging Markets Finance and Trade
Pages: 328-344
Issue: 2
Volume: 60
Year: 2024
Month: 01
X-DOI: 10.1080/1540496X.2023.2223934
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2223934
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# input file: MREE_A_2236286_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Haoyue Zhang
Author-X-Name-First: Haoyue
Author-X-Name-Last: Zhang
Author-Name: Siyi Liu
Author-X-Name-First: Siyi
Author-X-Name-Last: Liu
Author-Name: Junan Gong
Author-X-Name-First: Junan
Author-X-Name-Last: Gong
Author-Name: Jiaxun Song
Author-X-Name-First: Jiaxun
Author-X-Name-Last: Song
Title: Fund Performance and Risk Shifting: Evidence from Bank-Affiliated Funds in China
Abstract: 
 Using the China’s stock open-end mutual fund data from 2005 to 2020, this paper finds that bank-affiliated funds outperform unaffiliated funds with similar risk shifting levels. We find that risk shifting of bank-affiliated fund managers is more sensitive to previous performance ranking. Coherently, we collect compensation policy data from 62 fund companies, it is shown that the risk shifting behavior is preliminarily related to the motivational compensation policies. Furthermore, our findings also suggest that skilled bank-affiliated managers are prone to aggrandize the portfolio risk shifting levels to pursue future prominent performance.
Journal: Emerging Markets Finance and Trade
Pages: 478-499
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2236286
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2236286
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# input file: MREE_A_2228461_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Chaoyong Qin
Author-X-Name-First: Chaoyong
Author-X-Name-Last: Qin
Author-Name: Meng Zhang
Author-X-Name-First: Meng
Author-X-Name-Last: Zhang
Author-Name: Chengxinge Yang
Author-X-Name-First: Chengxinge
Author-X-Name-Last: Yang
Title: Can National Big Data Comprehensive Experimental Zones Boost the Development of Regional Green Finance? Evidence from China
Abstract: 
 Considering national big data comprehensive experimental zones’ (NBDCEZs) construction as a quasi-natural experiment, we employ a multi-period difference-in-differences method, investigating NBDCEZs’ impact on green finance. Based on China’s provincial panel data from 2008 to 2020, we find that NBDCEZs have a significant positive impact on green finance. Furthermore, high regional innovation capacity and foreign direct investment can enhance this effect, which differs depending on China’s five main economic circles, pilot zone types, and urban characteristics. Besides providing implications on utilizing digital technology for green finance, our study benchmarks China’s practices for other emerging countries, looking to develop green finance.
Journal: Emerging Markets Finance and Trade
Pages: 541-556
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2228461
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2228461
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# input file: MREE_A_2228464_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Xuefeng Mou
Author-X-Name-First: Xuefeng
Author-X-Name-Last: Mou
Author-Name: Shi Li
Author-X-Name-First: Shi
Author-X-Name-Last: Li
Title: Real Estate Regulation and Default Risk on Financial Lease Contracts
Abstract: 
 This paper investigates the impact of China’s regulatory restrictions on financing for real estate development enterprises on the default risk across the industry value chain. We estimate the policy’s treatment effect using unique data on contracts of financial leasing firms. Our findings indicate a reduction of 6.9% in the default probability of real estate-related leasing contracts, with shorter contract durations and smaller contracts a heightened susceptibility to the policy’s impact. These results provide valuable insight into how financial institutions serving the real estate sector can optimize their risk management strategies in response to regulatory policies. Furthermore, our study highlights the importance of a well-defined and quantifiable financing policy in effectively managing risk across the industry value chain in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 617-630
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2228464
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2228464
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# input file: MREE_A_2226322_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: You-Xun Lu
Author-X-Name-First: You-Xun
Author-X-Name-Last: Lu
Author-Name: Yin-Siang Huang
Author-X-Name-First: Yin-Siang
Author-X-Name-Last: Huang
Author-Name: Che-Chun Hsu
Author-X-Name-First: Che-Chun
Author-X-Name-Last: Hsu
Title: The Impact of Economic Freedom on Bank Loan Spreads: Evidence from the Financial Crisis
Abstract: 
 This paper empirically analyzes the impact of economic freedom on loan spreads from the perspective of borrowing firms. We highlight the role of economic freedom in reducing firms’ borrowing costs during the global financial crisis. Our key prediction is that higher economic freedom leads to a decline in bank loan spreads during the financial crisis. As the ongoing COVID-19 has severely damaged financial markets, our findings contribute to the literature on how to mitigate the adverse economic impact of the pandemic. Finally, our results also show that the implications of all the components of economic freedom vary across different economic regions.
Journal: Emerging Markets Finance and Trade
Pages: 417-435
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2226322
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2226322
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# input file: MREE_A_2228463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: K. P. Prabheesh
Author-X-Name-First: K. P.
Author-X-Name-Last: Prabheesh
Author-Name: Yoga Affandi
Author-X-Name-First: Yoga
Author-X-Name-Last: Affandi
Author-Name: Iman Gunadi
Author-X-Name-First: Iman
Author-X-Name-Last: Gunadi
Author-Name: Sanjiv Kumar
Author-X-Name-First: Sanjiv
Author-X-Name-Last: Kumar
Title: Impact of Public Debt, Cashless Transactions on Inflation in Emerging Market Economies: Evidence from the COVID-19 Period
Abstract: 
 This study empirically analyzes the impact of public debt and cashless transactions on inflation in emerging market economies during the COVID-19 pandemic. Our research question is primarily motivated by the extensive fiscal spending and cashless transactions in these economies during the pandemic and the inflation spike in the mid of 2021. We use monthly data from 10 sample emerging market economies and panel vector auto-regressive models for analysis. Our findings show that (1) public debt has a positive impact on the inflation rate in the EMEs, and (2) cashless transaction exhibits a positive effect on overall inflation. (3) Further, cashless transactions and public debt are found to have a positive and significant impact on inflation in specific sectors such as Clothes and Footwear, Energy, and Transport.
Journal: Emerging Markets Finance and Trade
Pages: 557-575
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2228463
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2228463
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# input file: MREE_A_2228466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Chi Keung Lau
Author-X-Name-First: Chi Keung
Author-X-Name-Last: Lau
Author-Name: Dongna Zhang
Author-X-Name-First: Dongna
Author-X-Name-Last: Zhang
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Title: Support Policies for Small Businesses During the Covid-19 Crisis: Evidence from Club Convergence Clustering Approach
Abstract: 
 This paper examines the small business net revenue club convergence clustering dynamics in 51 states in the United States during the first wave of the Covid-19 pandemic. Our analysis is based on the daily data from January 10, 2020, to June 8, 2020. The results indicate that there was only one club convergence for all states during the first wave of the Covid-19 pandemic. This evidence implies that the support policies enacted during the Covid-19 crisis for small and medium-sized enterprises were effective.
Journal: Emerging Markets Finance and Trade
Pages: 401-416
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2228466
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2228466
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# input file: MREE_A_2228462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yao-Bin Liu
Author-X-Name-First: Yao-Bin
Author-X-Name-Last: Liu
Author-Name: Wei-Feng Deng
Author-X-Name-First: Wei-Feng
Author-X-Name-Last: Deng
Author-Name: Kang Luo
Author-X-Name-First: Kang
Author-X-Name-Last: Luo
Author-Name: Ming-Yuan Tang
Author-X-Name-First: Ming-Yuan
Author-X-Name-Last: Tang
Title: Impact of Environmental Taxation on Financial Performance of Energy-Intensive Firms: The Role of Digital Transformation
Abstract: 
 In the new wave of the scientific and technological revolution, clean production and digital transformation are the primary directions of development for energy-intensive industries. In this study, we examined the impact of the 2016 Chinese Environmental Protection Tax Law (EPTL2016) on energy-intensive firms’ financial performance and explored the role of digital transformation using panel data from Chinese A-share-listed companies. Using the difference-in-differences method, we found that the EPTL2016 has significantly improved energy-intensive firms’ financial performance by incentivizing their digital transformation but has at the same time moderated the economic benefits of digital transformation. Moreover, state-owned enterprises have been more effective at improving their financial performance through digital transformation under the pressure of the EPTL2016. From a regional perspective, the EPTL2016 has enhanced energy-intensive firms’ financial performance primarily through digital transformation in regions with better digital infrastructure, and through green transformation in regions highly dependent on resource and in regions with stricter environmental governance.
Journal: Emerging Markets Finance and Trade
Pages: 598-616
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2228462
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2228462
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# input file: MREE_A_2226323_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ke Yang
Author-X-Name-First: Ke
Author-X-Name-Last: Yang
Author-Name: Lin Song
Author-X-Name-First: Lin
Author-X-Name-Last: Song
Author-Name: Xin-Xin Zhao
Author-X-Name-First: Xin-Xin
Author-X-Name-Last: Zhao
Author-Name: Yi-Wei Wang
Author-X-Name-First: Yi-Wei
Author-X-Name-Last: Wang
Title: Overseas Investment, Corporate Social Responsibility and Market Value: Based on the Host Country Heterogeneity Perspective
Abstract: 
 Based on the quasi-experimental method of Difference in Difference with Propensity Score Matching (PSM-DID), this paper analyzed the relationship between overseas investment, host country characteristics, and corporate social responsibility (CSR) with the sample of Chinese A-share listed companies. We find that: (1) overseas investment strategies can improve the CSR performance. (2) the effect of corporate overseas investment on CSR is more pronounced for the host country located in Asia, or with more complete legal and economic systems and closer cultural backgrounds. (3) overseas investment can reduce the negative impact of the disadvantages of outsiders on the enterprise value by better fulfilling their employees and social responsibilities, thus helping enterprises to enhance the market value. The findings suggest that overseas investment enterprises implement differentiated CSR strategies to unleash development vitality and create market value.
Journal: Emerging Markets Finance and Trade
Pages: 436-455
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2226323
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2226323
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# input file: MREE_A_2229941_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Changhwan Choi
Author-X-Name-First: Changhwan
Author-X-Name-Last: Choi
Author-Name: Chune Young Chung
Author-X-Name-First: Chune Young
Author-X-Name-Last: Chung
Author-Name: Jun Myung Song
Author-X-Name-First: Jun Myung
Author-X-Name-Last: Song
Title: Local Institutional Investors and Corporate Monitoring: Evidence from Cross-Listed Korean Stocks in the US Market
Abstract: 
 Using Korean firms that are cross-listed in the US market, this paper investigates whether there are standalone effects of geographic and market proximity of institutional investors on monitoring performance. We find that Korean institutional ownership is negatively associated with earnings management while the US institutional ownership has no impact on earnings management. This suggests that there is the geographic proximity advantage over the market proximity advantage in the emerging markets. Furthermore, we also show that the impact of geographic proximity is stronger for firms with high informational opacity.
Journal: Emerging Markets Finance and Trade
Pages: 456-477
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2229941
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2229941
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# input file: MREE_A_2242568_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Wen Yue
Author-X-Name-First: Wen
Author-X-Name-Last: Yue
Title: Human Capital and Firm Innovation: Evidence from China’s Higher Education Expansion in the Late 1990s
Abstract: 
 In this paper, we take the “university enrollment expansion” policy implemented by the Chinese government in 1999 as a quasi-natural experiment and use the difference-in-differences method to identify the effect of human capital expansion on firm innovation. Findings suggest that human capital expansion significantly improves firm innovation performance. More innovation is realized by promoting firms’ invention patent applications than their design and utility model patent applications. Further analysis highlights the varying impact of human capital expansion on the innovation performance of firms of different types, thus indicating significant heterogeneity. This study enriches the innovation literature on the drivers of firm innovation by identifying the role of human capital while providing new empirical evidence from the perspective of firm innovation to further understand the microeconomic effects of human capital.
Journal: Emerging Markets Finance and Trade
Pages: 500-518
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2242568
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2242568
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# input file: MREE_A_2236284_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Xiaohan Ma
Author-X-Name-First: Xiaohan
Author-X-Name-Last: Ma
Author-Name: Hui Lin
Author-X-Name-First: Hui
Author-X-Name-Last: Lin
Title: Predicting Stock Market Crises Using Stock Index Derivatives: Evidence from China
Abstract: 
 The article offers a comprehensive analysis of the early warning capability of China’s stock index derivatives for the first time. A rolling window logit model is employed to predict stock market crises using data from CSI 300 index futures and SSE 50 ETF options. The findings demonstrate that (1) stock index derivatives play a vital role in predicting stock market crises; (2) short-term forecasts are better predicted by near-month derivatives contracts, whereas for long-term warnings, far-month contracts tend to perform better; and (3) in-the-money calls and out-of-the-money puts are superior to at-the-money options in predicting stock market crises. The insights provided by this article can assist emerging countries in establishing and utilizing derivatives markets more efficiently.
Journal: Emerging Markets Finance and Trade
Pages: 576-597
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2236284
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2236284
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# input file: MREE_A_2226320_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jianhui Jian
Author-X-Name-First: Jianhui
Author-X-Name-Last: Jian
Author-Name: Fan Yang
Author-X-Name-First: Fan
Author-X-Name-Last: Yang
Author-Name: Minglang Liu
Author-X-Name-First: Minglang
Author-X-Name-Last: Liu
Author-Name: Yi Liu
Author-X-Name-First: Yi
Author-X-Name-Last: Liu
Title: Cost of Equity Capital and Annual Report Tone Manipulation
Abstract: 
 This paper empirically studies the relationship between the cost of equity capital and annual report tone of listed firms’ annual reports from 2007 to 2019 in China. It is discovered that the greater the firm’s cost of equity capital, the more positive the tone of the manipulated annual report. In addition, in firms with lower quality of accounting information and higher degree of industry competition, the impact of cost of equity capital on the degree of tone manipulation is more significant, indicating that the impact of cost of equity capital on the positive tone disclosure of annual report is a deliberate manipulation behavior. The heterogeneity analysis shows that the cost of equity capital has a more significant impact on the tone manipulation of corporate annual reports in non-state-owned corporates than in state-owned corporates. Further analysis shows that the increase of the cost of equity capital will lead to the decline of investor’s confidence and corporate value and is also the mechanism of the cost of equity capital affecting the annual report note manipulation. Further analysis shows that the increase of the cost of equity capital will lead to the decline of investor’s confidence and corporate value, which is also the mechanism of the cost of equity capital affecting the annual report note manipulation.
Journal: Emerging Markets Finance and Trade
Pages: 519-540
Issue: 3
Volume: 60
Year: 2024
Month: 02
X-DOI: 10.1080/1540496X.2023.2226320
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2226320
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# input file: MREE_A_2253979_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Haijie Wang
Author-X-Name-First: Haijie
Author-X-Name-Last: Wang
Author-Name: Jingxue Zhang
Author-X-Name-First: Jingxue
Author-X-Name-Last: Zhang
Title: Spatio-Temporal Patterns and Driving Factors of Green Development Level of Urban Agglomerations in the Yellow River Basin
Abstract: 
 Promoting green development (GD) is key for the Yellow River Basin (YRB) to step into the phase of high-quality development. This study constructs a green development level (GDL) evaluation system based on the PSR (Pressure-State-Response) model, and estimates the GDL of urban agglomerations (UAs) in the YRB from 2008 to 2019 using the entropy weight-TOPSIS model. Then the Moran’I and the Theil index are adopted to explore the spatio-temporal patterns of the GDL, and the Geo-detector is used to investigate the driving factors of the GDL. The results suggest that: (1) The GDL of UAs in the YRB is characterized by “low growth” and “unbalanced,” with a general pattern of “east-west prominence but central collapse”. (2) The GDL in the YRB shows significant spatial correlation characteristic. (3) The main sources of regional variation of the GDL in the UAs is inter-group differences in 2008–2013 and intra-group differences in 2014–2019. (4) The main driver of the differences of the GDL is economic development, and the effect of the interaction of any two driving factors is greater than that of the single factor.
Journal: Emerging Markets Finance and Trade
Pages: 724-743
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2253979
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2253979
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# input file: MREE_A_2251649_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yu Hao
Author-X-Name-First: Yu
Author-X-Name-Last: Hao
Author-Name: Shiyao Liu
Author-X-Name-First: Shiyao
Author-X-Name-Last: Liu
Author-Name: Aiai Zhao
Author-X-Name-First: Aiai
Author-X-Name-Last: Zhao
Author-Name: Guoyao Yan
Author-X-Name-First: Guoyao
Author-X-Name-Last: Yan
Title: How Does Digital Financial Inclusion Affect Energy Usage? Evidence from Prefecture-Level Cities in China
Abstract: 
 Promoting the synergetic growth of the economy, energy, and environment is crucial in the context of China’s digital revolution. This research assesses the impact of digital financial inclusion on energy consumption, considering spatial dimensions and exploring the mechanisms involved in this relationship. The findings reveal the following: (1) As digital financial inclusion spreads, there is a decrease in energy use. This effect exhibits spatial spillover. (2) The depth of use dimension in digital financial inclusion significantly influences energy consumption. This influence is particularly notable in underdeveloped areas and cities with lower levels of innovation and entrepreneurship capacity. (3) Industrial agglomeration serves as a mechanism through which digital financial inclusion impacts energy consumption. Consequently, the development of digital financial inclusion should complement energy policies, providing increased support to underdeveloped regions while promoting the adjustment and transfer of industrial structure.
Journal: Emerging Markets Finance and Trade
Pages: 769-792
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2251649
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2251649
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:4:p:769-792



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# input file: MREE_A_2258260_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ying Lin
Author-X-Name-First: Ying
Author-X-Name-Last: Lin
Author-Name: Quan-Jing Wang
Author-X-Name-First: Quan-Jing
Author-X-Name-Last: Wang
Author-Name: Mei-Qi Zheng
Author-X-Name-First: Mei-Qi
Author-X-Name-Last: Zheng
Title: Nexus Among Digital Economy, Green Innovation, and Green Development: Evidence from China
Abstract: 
 Green development is an essential requirement for the high-quality development. In the context of the new round of technological revolution, the digital economy has injected new momentum into China’s high-quality economic development. This article aims to clarify the relationships among digital economy, green innovation, and green development using Westerlund and Edgerton (2007) cointegration test as well as pooled mean group (PMG) estimation and utilizing yearly data from 274 cities in China from 2011 to 2019. Overall, the results confirm the existence of cointegration relationships between green development and green innovation, between green development and digital economy, as well as between digital economy and green innovation, and support that digital economy and green innovation can affect the green development in the long-term positively. Additionally, while digital economy positively affects the green development in the short-run, green innovation cannot affect the green development. Furthermore, while the long-run positive impact of digital economy and green innovation on green development is generally established among eastern, central, and western regions, the short-run impact of such two factors on green innovation varies among different regions, seeing as both two variables exert no significant impact on green development in western region. Empirical findings offer important policy implications for the policymakers to attach more importance on the emerging economy model such as digital economy or green innovation, which can bring about long-term green development.
Journal: Emerging Markets Finance and Trade
Pages: 704-723
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2258260
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2258260
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# input file: MREE_A_2244142_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Lijun Jiang
Author-X-Name-First: Lijun
Author-X-Name-Last: Jiang
Author-Name: Huwei Wen
Author-X-Name-First: Huwei
Author-X-Name-Last: Wen
Title: Two Aspects of Digitalization Affecting Financial Asset Allocation: Evidence from China
Abstract: 
 The digital economy has a significant influence on the financial behavior of enterprises. According to the panel data of A-share listed enterprises in the manufacturing industry from 2010 to 2020, we discuss how manufacturing enterprises allocate their financial assets in the process of digitalization from the perspective of operating profit and risk taking. The results reveal that ICT investment significantly reduces financial asset allocation, while digital transformation improves the financial asset allocation of manufacturing enterprises. Because ICT investment increases operating profit from the main business, manufacturing enterprises reduce the allocation of short-term and long-term financial assets. We thus propose two phenomena: precautionary saving and substitutional investment. As digital transformation increases risk taking, financial assets are elevated by manufacturing enterprises for the precautionary saving motivation, boosting the short-term financial assets in their portfolios. These findings are further supported by the heterogeneity of innovation characteristics and ownership.
Journal: Emerging Markets Finance and Trade
Pages: 631-649
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2244142
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2244142
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# input file: MREE_A_2253978_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Shuxin Zheng
Author-X-Name-First: Shuxin
Author-X-Name-Last: Zheng
Author-Name: Yugang Yin
Author-X-Name-First: Yugang
Author-X-Name-Last: Yin
Author-Name: Yahui Liu
Author-X-Name-First: Yahui
Author-X-Name-Last: Liu
Title: Firm Product Similarity and Stock Price Comovement: Evidence from China
Abstract: 
 This article examines the effect of firm product similarity on stock price comovement. Using the financial data and annual reports of listed firms in the Chinese A-share market from January 2001 to December 2021, we find that firms with greater product similarity experience synchronized movements in their stock prices. This effect is driven by firm fundamentals, as demonstrated through major international events (Global Financial Crisis, European Sovereign Debt Crisis, and Trade Dispute between China and the U.S.) and domestic events (Two Sessions about the Deepening Overall Reform, and Central Economic Conference following the COVID-19 Outbreak). We also show that firms that release earnings announcements earlier contribute to the comovement of stock prices within their product-similarity cluster. Our findings are robust across various tests and provide insights into the dynamics of the Chinese A-share market.
Journal: Emerging Markets Finance and Trade
Pages: 808-824
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2253978
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2253978
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# input file: MREE_A_2250903_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Guanglin Sun
Author-X-Name-First: Guanglin
Author-X-Name-Last: Sun
Author-Name: Ting Li
Author-X-Name-First: Ting
Author-X-Name-Last: Li
Author-Name: Yijing Su
Author-X-Name-First: Yijing
Author-X-Name-Last: Su
Author-Name: Dan Shi
Author-X-Name-First: Dan
Author-X-Name-Last: Shi
Title: Digital Economy, Institutional Environment, and the Credit Risks of Commercial Banks
Abstract: 
 Most emerging economies are in a transition period, and an imperfect institutional environment will lead to inefficient supervision mechanisms in the digital economy. Based on data representing the experiences of China’s listed commercial banks from 2013 to 2021, this study empirically examines the impact of the digital economy on credit risk by using a panel fixed-effect model. The findings indicate that the development of the digital economy helps to reduce credit risk faced by commercial banks. Institutional variables, such as financial supervision and the legal institutional environment, have significant mediation effects of the digital economy. By increasing the intensity of financial supervision and improving the legal institutional environment, the digital economy can reduce the credit risk faced by commercial banks. Interestingly, the effect of the digital economy on credit risk is not uniform across all banks. State-owned commercial banks benefit more from the digital economy in terms of reducing their credit risk than on non-state-owned banks. The inhibitory effect of the digital economy on the credit risk of commercial banks is significant in eastern China but not in central and western China.
Journal: Emerging Markets Finance and Trade
Pages: 650-662
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2250903
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2250903
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# input file: MREE_A_2247140_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jianmin Liu
Author-X-Name-First: Jianmin
Author-X-Name-Last: Liu
Author-Name: Shichen Wang
Author-X-Name-First: Shichen
Author-X-Name-Last: Wang
Author-Name: Yude Xu
Author-X-Name-First: Yude
Author-X-Name-Last: Xu
Author-Name: Lingsha Cheng
Author-X-Name-First: Lingsha
Author-X-Name-Last: Cheng
Title: Digital Economy Development and Corporate Bankruptcy Risk: Based on the Perspective of Institutional Isomorphism
Abstract: 
 Digital economy development gives birth to new market norms and competition rules, which push digital transformation and further form the legitimacy isomorphism effect to decrease corporate bankruptcy risk. Using a sample of Chinese listed firms from 2011 to 2019, this study investigated how digital economy development influences corporate bankruptcy risk. We observe a negative relationship between digital economy development and bankruptcy risk. This negative relationship is more pronounced in firms when the degree of digital transformation, managerial incentive and internal supervision is expected to be high.Additionally, the risk effect of digital economy is more pronounced for firms with more media coverage, lower urban wealth, industry competition, and better government governance. Our study has implications for research on the microeconomic consequences of digital economy development and the factors influencing corporate bankruptcy risk, providing empirical evidence for bankruptcy risk management in the digital economy era.
Journal: Emerging Markets Finance and Trade
Pages: 793-807
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2247140
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2247140
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:4:p:793-807



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# input file: MREE_A_2251652_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Qingduo Zeng
Author-X-Name-First: Qingduo
Author-X-Name-Last: Zeng
Author-Name: Tao Bing
Author-X-Name-First: Tao
Author-X-Name-Last: Bing
Author-Name: Li Li
Author-X-Name-First: Li
Author-X-Name-Last: Li
Author-Name: Yang Xu
Author-X-Name-First: Yang
Author-X-Name-Last: Xu
Title: Data Factor and Financial Market Equilibrium
Abstract: 
 In this paper, we develop a novel asset pricing model in which data factor is incorporated into the fundamental value to explore its impact on financial market equilibrium. It is shown that high precision of data can attenuate the fundamental risk and increase the trading intensity, thus enhancing price informativeness and liquidity along with reducing the cost of capital. Furthermore, we discover that there is a positive relationship between real investment efficiency and the correlation coefficient of data factor with productivity. Our results emphasize the important role of data factor in stock pricing and real investment, as well as reveal the internal impact mechanism of data factor on equilibrium properties, which complement the existing empirical evidences and have significant implications on data application.
Journal: Emerging Markets Finance and Trade
Pages: 663-677
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2251652
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2251652
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# input file: MREE_A_2253975_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Yonggen Luo
Author-X-Name-First: Yonggen
Author-X-Name-Last: Luo
Author-Name: Na Tian
Author-X-Name-First: Na
Author-X-Name-Last: Tian
Author-Name: Deli Wang
Author-X-Name-First: Deli
Author-X-Name-Last: Wang
Author-Name: Wenqi Han
Author-X-Name-First: Wenqi
Author-X-Name-Last: Han
Title: Does Digital Transformation Enhance Firm’s ESG Performance? Evidence from an Emerging Market
Abstract: 
 We examine the impact of digital transformation on a firm’s ESG performance using data from listed firms in China. Leveraging the recent advances in textual analysis, we quantify the extent of a firm’s digital transformation. The results show that digital transformation enhances a firm’s ESG performance. Moreover, results remain robust after addressing endogeneity problems and several robustness tests. In addition, we validate potential mechanisms that the digital transformation mainly improves the ESG performance of firms by improving the level of environmental performance, corporate social responsibility, and corporate governance. To examine the economic consequence, we find that digital transformation gains more government subsidies and analysts’ attention increasing the management’s positive tone at the earnings communication conferences by improving the firm’s ESG performance. Heterogeneity analysis suggests that the effect of digital transformation on ESG performance is stronger for firms in severely polluting industries and executives with information technology experience.
Journal: Emerging Markets Finance and Trade
Pages: 825-854
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2253975
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2253975
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# input file: MREE_A_2250902_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Jian Liu
Author-X-Name-First: Jian
Author-X-Name-Last: Liu
Author-Name: Xin Kang
Author-X-Name-First: Xin
Author-X-Name-Last: Kang
Author-Name: Wei Wang
Author-X-Name-First: Wei
Author-X-Name-Last: Wang
Title: Fintech’s Impact on Green Total Factor Productivity of High Carbon Enterprises
Abstract: 
 Effectively improving the green total factor productivity (GTFP) of high-carbon enterprises is the key to adhering to green development and achieving the dual-carbon goal. This study examines the relationship between fintech and enterprises’ GTFP based on an SBM-undesirable model with data from eight high-carbon industries in China from 2006 to 2020, and addresses the endogeneity issue with instrumental variables and propensity matching scores. It has been discovered that for every 1% increase in the level of fintech development in a city, there will be a 1.08% increase in the GTFP of local high-carbon enterprises; fintech boosts GTFP by reducing financing constraints and promoting green technological advances to promote the green transformation of high-carbon enterprises across the board; and the role of fintech in boosting GTFP is more pronounced in the midwestern regions, non-resource cities, cities with weaker environmental regulations, and non-state-owned enterprises. Overall, the development of fintech contributes to the environment and economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 744-768
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2250902
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2250902
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# input file: MREE_A_2247141_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Ya-Chi Lin
Author-X-Name-First: Ya-Chi
Author-X-Name-Last: Lin
Title: Taiwan’s Electricity Demand Under the COVID-19 and Supply Chain Disruption
Abstract: 
 Our research aims to find the alteration in electricity consumption during supply chain disturbance following the COVID-19 pandemic, while seeking to elucidate the island-wide power blackout in Taiwan in May 2021. The inquiries addressed are as follows: initially, the income elasticity of electricity consumption decreases over time. We present evidence indicating a decoupling between electricity consumption and GDP, linked to higher overseas production ratio of export orders being produced. Secondly, as a result of the supply chain disruption, the income elasticity of electricity consumption escalates, and Taiwan experiences GDP growth. Electricity consumption increases rise through both channels. Lastly, utilizing a nonlinear model for prediction yields more accurate projections, potentially averting power outages.
Journal: Emerging Markets Finance and Trade
Pages: 688-703
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2247141
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2247141
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# input file: MREE_A_2244140_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857
Author-Name: Xiangrong Li
Author-X-Name-First: Xiangrong
Author-X-Name-Last: Li
Author-Name: Maojun Zhang
Author-X-Name-First: Maojun
Author-X-Name-Last: Zhang
Author-Name: Jiangxia Nan
Author-X-Name-First: Jiangxia
Author-X-Name-Last: Nan
Author-Name: Qingyuan Yang
Author-X-Name-First: Qingyuan
Author-X-Name-Last: Yang
Title: Predicting Financial Distress Using a MIDAS Hazard Model: Evidence from Listed Companies in China
Abstract: 
 This study aims to predict financial distress in an emerging country using data on ST listed companies in China from 2001 to 2021. A new Aalen hazard model with mixed data sampling (MIDAS) is adopted to investigate the impact of monthly macroeconomic variables and quarterly financial variables on financial distress. The empirical results show that the current ratio, operating profit ratio, current capital ratio, retention ratio, profit ratio and income ratio of listed companies have a significant impact on the time-varying intensity of financial distress. The consumer price index has a negative relation with the intensity of financial distress, while the production price index and credit spreads have a positive influence. Finally, the results of the robustness tests are consistent with those with different lag orders.
Journal: Emerging Markets Finance and Trade
Pages: 678-687
Issue: 4
Volume: 60
Year: 2024
Month: 03
X-DOI: 10.1080/1540496X.2023.2244140
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2244140
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# input file: MREE_A_2266111_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Shunyu Su
Author-X-Name-First: Shunyu
Author-X-Name-Last: Su
Author-Name: Yezhou Sha
Author-X-Name-First: Yezhou
Author-X-Name-Last: Sha
Title: Good (Bad) News and the Probability of Informed Trading: Evidence from Illegal Insider Trading
Abstract: 
 We present a closed-form solution connecting the probability of informed trading ($PIN$PIN) to the overlooked parameter that signaling private information is good or bad. Estimating $PIN$PIN using illegal insider trading data, we find it sensitive to the certainty of positive private information in addition to the existed explanations, offering a new explanation for $PIN$PIN‘s limitations in prior literature.
Journal: Emerging Markets Finance and Trade
Pages: 1077-1086
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2266111
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2266111
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# input file: MREE_A_2266115_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Gaowen Kong
Author-X-Name-First: Gaowen
Author-X-Name-Last: Kong
Author-Name: Lihua Liu
Author-X-Name-First: Lihua
Author-X-Name-Last: Liu
Author-Name: Dongmin Kong
Author-X-Name-First: Dongmin
Author-X-Name-Last: Kong
Author-Name: Jian Zhang
Author-X-Name-First: Jian
Author-X-Name-Last: Zhang
Title: High-Speed Rails, Labor Mobility and Within-Firm Pay Gap
Abstract: 
 The intrafirm pay gap plays a significant role in firm outcomes and prior research focuses on examining its determinants based on firm characteristics and institutional factors, with limited understanding of how labor mobility, driven by improvements in transportation, affects the pay gap. This study utilizes the opening of high-speed rails (HSRs) as an exogenous shock of the improvement of transportation infrastructure and finds that HSRs substantially increase the within-firm pay gap, especially for firms located in small cities. Mechanism tests reveal that the widening pay gap can be attributed to the decreased employee’s wages, driven by the increased supply of low skilled labors. The effect is more pronounced in labor-intensive firms, and those with weaker employee bargaining power. Overall, we provide implications for regulators and management who are concerned about pay inequity.
Journal: Emerging Markets Finance and Trade
Pages: 1018-1034
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2266115
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2266115
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# input file: MREE_A_2266114_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ye Zhou
Author-X-Name-First: Ye
Author-X-Name-Last: Zhou
Author-Name: Juejin Chen
Author-X-Name-First: Juejin
Author-X-Name-Last: Chen
Title: Macro-Prudential Policy and Bank Systemic Risk: Cross-Country Evidence Based on Emerging and Advanced Economies
Abstract: 
 This study examines the effects of macro-prudential policy on bank systemic risk by using a cross-country panel data of 65 economies. We find that: (1) macro-prudential policy mitigates bank systemic risk by decreasing the individual risk of banks and systemic linkage between banks; (2) the effect is stronger for banks with larger sizes, wider geographical regions of operation, and more diversified business services; (3) the effect is stronger in countries with less-developed or less-open financial systems, more concentrated banking industries, and emerging economies; (4) the policy-risk relationship is stronger when credit is more crunched, monetary policy is looser, a financial crisis occurs, or after the subprime crisis.
Journal: Emerging Markets Finance and Trade
Pages: 1035-1047
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2266114
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2266114
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# input file: MREE_A_2260543_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yong Jiang
Author-X-Name-First: Yong
Author-X-Name-Last: Jiang
Author-Name: Seema Narayan
Author-X-Name-First: Seema
Author-X-Name-Last: Narayan
Author-Name: Yi-Shuai Ren
Author-X-Name-First: Yi-Shuai
Author-X-Name-Last: Ren
Author-Name: Chao-Qun Ma
Author-X-Name-First: Chao-Qun
Author-X-Name-Last: Ma
Title: The International Oil Price in the Context of the COVID-19 Pandemic Outbreak: Evidence from BRICS and US
Abstract: 
 This study applies a quantile cointegration model to investigate if COVID-19 outbreaks in the BRICS (China, India, Russia, Brazil, and South Africa) and the United States have a long-run equilibrium relationship with the dynamics of oil prices. (1) The standard cointegration models are unstable, indicating the possibility of structural breaks and nonlinearity in the relationship between the COVID-19 pandemic and oil prices; (2) The results of the quantile cointegration model suggest the COVID-19 pandemic and oil prices are nearly cointegrated over whole quantiles of the oil price distribution for the United States, Russia, South Africa, and Brazil. However, the long-run equilibrium relationship between the COVID-19 pandemic and oil prices in China is more likely to occur in the lower quantiles of the oil price distribution; (3) For India, the equilibrium link exists only across the two higher quantiles (0.7 and 0.8 quantiles) of the oil price distribution. Finally, our research has significant policy implications for the governments of the world’s largest countries that are concerned about the impact of the COVID-19 pandemic outbreak on oil prices.
Journal: Emerging Markets Finance and Trade
Pages: 983-1001
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2260543
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2260543
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# input file: MREE_A_2266110_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fulei Yan
Author-X-Name-First: Fulei
Author-X-Name-Last: Yan
Author-Name: Beibei Chen
Author-X-Name-First: Beibei
Author-X-Name-Last: Chen
Author-Name: Yuxin Yang
Author-X-Name-First: Yuxin
Author-X-Name-Last: Yang
Title: ICT, Financial Inclusion and the Informal Economy: Evidence from Selected Latin American and Caribbean Countries
Abstract: 
 Exploring effective tools to control the rampant expansion of the informal economy is critical to achieving the Sustainable Development Goals (SDGs). Based on balanced panel data for 19 selected Latin American and Caribbean countries for the period 2008–2017, this study employs fixed-effects estimation, limited information maximum likelihood estimation, and system generalized method of moments estimation to investigate the direct and indirect effects of information and communication technologies (ICT) diffusion on the size of the informal economy. The findings suggest that ICT diffusion can significantly reduce the size of the informal economy in LAC. Moreover, the dampening effect of ICT on the informal economy is more significant in countries with lower levels of financial inclusion. Accordingly, we recommend strengthening ICT sector development to enhance financial deepening and government efficiency and thus reduce informality in LAC.
Journal: Emerging Markets Finance and Trade
Pages: 1002-1017
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2266110
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2266110
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# input file: MREE_A_2266113_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Mohammad Hossein Dehghani
Author-X-Name-First: Mohammad Hossein
Author-X-Name-Last: Dehghani
Author-Name: Monireh Ravanbakhsh
Author-X-Name-First: Monireh
Author-X-Name-Last: Ravanbakhsh
Title: Heterogeneous Intermediary Asset Pricing in Iran’s Stock Market: Privately-Owned vs. State-Owned
Abstract: 
 In Iran’s stock market, this paper examines a new dimension of heterogeneity: ownership type, using an intermediary asset pricing model. When only state-owned intermediaries are considered, the price for exposure to capital ratio shocks is negative; thus, the group is not a marginal investor. Considering only privately-owned intermediaries has greater explanatory power than considering both types, and the price for capital risk is positive in both cases. We propose a new criterion to represent the sector with even greater explanatory power: a group of privately-owned intermediaries with positive capital risk prices when tested individually.
Journal: Emerging Markets Finance and Trade
Pages: 1048-1063
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2266113
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2266113
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# input file: MREE_A_2200882_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yubin Wu
Author-X-Name-First: Yubin
Author-X-Name-Last: Wu
Author-Name: Fu’an Shi
Author-X-Name-First: Fu’an
Author-X-Name-Last: Shi
Author-Name: Yongyu Wang
Author-X-Name-First: Yongyu
Author-X-Name-Last: Wang
Title: Driving Impact of Digital Transformation on Total Factor Productivity of Corporations: The Mediating Effect of Green Technology Innovation
Abstract: 
 Based on the data of Chinese A-share listed companies from 2010 to 2020, this article examines the driving effect of Digital Transformation of Corporations (DTC) on Total Factor Productivity (TFP) and selects Green Technology Innovation of Corporations (GTIC) as the mediating variable to test the mechanism of action of Digital Transformation of Corporations driving corporate TFP improvement. It is found that Digital Transformation of Corporations can significantly promote corporate TFP improvement; mechanism analysis shows that Digital Transformation of Corporations drives TFP improvement by promoting Green Technology Innovation of Corporations.
Journal: Emerging Markets Finance and Trade
Pages: 950-966
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2200882
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2200882
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# input file: MREE_A_2258259_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Lin Mu
Author-X-Name-First: Lin
Author-X-Name-Last: Mu
Author-Name: Gonglin Yuan
Author-X-Name-First: Gonglin
Author-X-Name-Last: Yuan
Author-Name: Tianshan Yang
Author-X-Name-First: Tianshan
Author-X-Name-Last: Yang
Title: Does China’s Existing Regional Knowledge Base Stimulate or Hinder Diversification into FinTech: The Role of Local ICTs Base
Abstract: 
 The strand research of regional branching identifies relatedness as a key driver of new specializations in a region. The purpose of the present paper is to extend the regional branching framework by investigating how a regional knowledge base of information and communication technologies (ICTs) and others (non-ICTs) influences the specialization of financial technology (FinTech) in China at the city level. Accordingly, the empirical analysis focuses on the relationship between relatedness and FinTech diversification using panel data spanning the period 2008–2021 covering 247 China’s cities. We obtain that the role of ICTs relatedness is positively relevant in explaining the emergence and development of new FinTech domains. However, non-ICT relatedness is a negative factor in the process of FinTech diversification, which we attribute to the fact that FinTech is less reliant on other knowledge base except ICT sectors. Additionally, the effects of ICTs relatedness are higher in peripheral cities compared to core cities in promoting FinTech diversification.
Journal: Emerging Markets Finance and Trade
Pages: 935-949
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2258259
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2258259
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# input file: MREE_A_2260545_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Huimin Liu
Author-X-Name-First: Huimin
Author-X-Name-Last: Liu
Author-Name: Yupeng Shi
Author-X-Name-First: Yupeng
Author-X-Name-Last: Shi
Author-Name: Baowen Sun
Author-X-Name-First: Baowen
Author-X-Name-Last: Sun
Author-Name: Xuze Yang
Author-X-Name-First: Xuze
Author-X-Name-Last: Yang
Title: Agglomeration of the Digital Services Industry and Digital Transformation: Evidence from China
Abstract: 
 This study examines the relationship between the agglomeration of the digital service industry (ADS) and listed companies’ digital transformation in China. We analyze panel data from 282 prefecture-level cities and listed companies for 2010–2019. The results reveal that ADS has an indirect positive effect on listed companies’ digital transformation by improving firms’ innovation inputs and decreasing their operating costs. These findings hold after using instrumental variables to solve the endogeneity problem and conducting robustness tests. Digital services is the only producer service industry whose agglomeration influences listed companies’ digital transformation. The impact of ADS on digital transformation is strongest in manufacturing, non-state-owned, and small and medium-sized enterprises.
Journal: Emerging Markets Finance and Trade
Pages: 855-869
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2260545
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2260545
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# input file: MREE_A_2267739_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rui Chen
Author-X-Name-First: Rui
Author-X-Name-Last: Chen
Author-Name: Jinye Li
Author-X-Name-First: Jinye
Author-X-Name-Last: Li
Title: How Do Short-Term Cross-Border Capital Flows Affect Bank Risk-Taking? Evidence from China
Abstract: 
 This study examines the impact of short-term cross-border capital flows on banks’ risk-taking using panel quarterly data from all 37 A-share listed commercial banks in China. We demonstrate that short-term cross-border capital flows increase both ex ante and ex post risk-taking by banks. The impact of short-term cross-border capital flows upon banks’ ex ante and ex post risk-taking is heterogeneous across different kinds of commercial banks and at different phases of the financial cycle. Besides, short-term cross-border capital flows exhibit a non-linear effect on banks’ ex ante risk-taking and ex post risk-taking with changes in capital account openness.
Journal: Emerging Markets Finance and Trade
Pages: 1064-1076
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2267739
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2267739
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# input file: MREE_A_2266109_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ping Zhang
Author-X-Name-First: Ping
Author-X-Name-Last: Zhang
Author-Name: Na Cao
Author-X-Name-First: Na
Author-X-Name-Last: Cao
Author-Name: Jieying Gao
Author-X-Name-First: Jieying
Author-X-Name-Last: Gao
Title: Mergers and Acquisitions, Synergy, and Corporate Innovation: Evidence from China
Abstract: 
 Mergers and acquisitions (M&As) and innovation as essential business development strategies have attracted much interest in the capital market. A difference-in-differences model employing Chinese listed firms indicates that M&As significantly enhance corporate innovation. The potential mechanisms lie in the fact that M&As generate synergy in finance, corporate governance, and information. Complementary evidence shows that the M&A effect on innovation is heterogeneous across payment methods and goodwill. We conclude that synergies obtained from combining and restructuring are important drivers of innovation capabilities.
Journal: Emerging Markets Finance and Trade
Pages: 870-898
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2266109
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2266109
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# input file: MREE_A_2260544_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Shuhai Niu
Author-X-Name-First: Shuhai
Author-X-Name-Last: Niu
Author-Name: Kexin Zhang
Author-X-Name-First: Kexin
Author-X-Name-Last: Zhang
Author-Name: Juan Zhang
Author-X-Name-First: Juan
Author-X-Name-Last: Zhang
Author-Name: Yanchao Feng
Author-X-Name-First: Yanchao
Author-X-Name-Last: Feng
Title: How Does Industrial Upgrading Affect Urban Ecological Efficiency? New Evidence from China
Abstract: 
 The upgrade of industrial structure is one type of momentum for improving urban ecological efficiency, and exploring the nexus between them can help implement the concept of green development. Using data from 284 cities in China between 2004 and 2019, this research employs a series of econometric models to examine how improving industrial structure contributes to the growth of urban ecological efficiency. The research results reveal that urban ecological efficiency can be significantly improved by industrial structure upgrade, while ecological efficiency is inhibited by low-quality GDP and financial development models and insignificantly decreased by industrial structure rationalization. In addition, industrial structure upgrading has failed to play a mediating role in promoting eco-efficiency through technological innovation and the reduction of pollutant emission intensity. Moreover, officials’ turnover plays a negative moderating influence on the role of industrial upgrading in increasing ecological efficiency, while environmental regulation plays the opposite role. This study further conducts triple heterogeneity tests including city size, resource endowment, and regional heterogeneity, which provide a feasible way for further implementation of relevant policies.
Journal: Emerging Markets Finance and Trade
Pages: 899-920
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2260544
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2260544
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# input file: MREE_A_2259058_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Joseph J. French
Author-X-Name-First: Joseph J.
Author-X-Name-Last: French
Author-Name: Philipp D. Schaberl
Author-X-Name-First: Philipp D.
Author-X-Name-Last: Schaberl
Author-Name: Rodrigo Taborda
Author-X-Name-First: Rodrigo
Author-X-Name-Last: Taborda
Title: Fund Flows, Stock Markets, and Economic Policy Uncertainty: From the Perspective a CIVET Nation
Abstract: 
 We investigate the relationships among economic policy uncertainty (EPU), equity fund flows (EFF), and the Colombian stock market. Results show adverse impacts of domestic, global, and regional EPUs on Colombia’s stock returns and EFF. Global and regional EPUs transmit to Colombian EPU which makes the market vulnerable to uncertainty shocks. A global EPU shock reduces returns by 2.2% the following month, raises Colombian EPU by 12%, and reduces EFF by 0.24%. Furthermore, heightened EPU increases liquidity and reduces stock returns. Our results suggest a feedback loop where uncertainty shocks increase trading, fuel domestic uncertainty, and reduce equity prices.
Journal: Emerging Markets Finance and Trade
Pages: 967-982
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2259058
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2259058
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# input file: MREE_A_2266116_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Huan Zhou
Author-X-Name-First: Huan
Author-X-Name-Last: Zhou
Author-Name: Ying Ji
Author-X-Name-First: Ying
Author-X-Name-Last: Ji
Title: Personality Traits and Household Entrepreneurship: Evidence from China
Abstract: 
 Household entrepreneurship can not only promote the sustainable development of the national economy, but also reduce unemployment. However, the urban-rural dual pattern leads to systematic differences in household entrepreneurship. This heterogeneity complicates the relationship between personality traits and household entrepreneurship. In order to study this complex relationship, this study empirically analyzed the influence of personality traits on entrepreneurial decisions and entrepreneurial returns of urban and rural households. Specifically, this study adopts the well-known “Big Five” personality classification criteria in the literature and constructs Probit, Tobit, and Heckman models based on the data of Chinese Family Panel Studies (CFPS) in 2016 and 2018. The results determine those factors beneficial for entrepreneurship, and the return of entrepreneurship depends upon the optimism, rigorousness, and preciseness of the householder. Additionally, the unrestricted intention of the household’s head is not conducive to entrepreneurship. The relevant departments should thoroughly acknowledge the influence of personality traits on the effectiveness of policies while making relevant policies involving household entrepreneurship.
Journal: Emerging Markets Finance and Trade
Pages: 921-934
Issue: 5
Volume: 60
Year: 2024
Month: 04
X-DOI: 10.1080/1540496X.2023.2266116
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2266116
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# input file: MREE_A_2276746_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ying Fu
Author-X-Name-First: Ying
Author-X-Name-Last: Fu
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Weiqi Dai
Author-X-Name-First: Weiqi
Author-X-Name-Last: Dai
Author-Name: Emma Su
Author-X-Name-First: Emma
Author-X-Name-Last: Su
Title: When Do Second-Generation Returnees Affect Family Firms’ Entrepreneurial Risk-Taking? The Moderating Role of Managerial Discretion
Abstract: 
 We posit that the dual identities of second-generation returnees present a complex situation regarding their influence on family firms’ entrepreneurial risk-taking (ERT). On one hand, their status as returnees may have a positive effect on firms’ ERT. On the other hand, their potential successor role may limit their ability to exert influence on ERT due to constraints imposed by the first generation, the firm and the home environment. To unravel the puzzling relationship between second-generation returnees and a family firm’s ERT, we examine conditions under which second-generation returnees promote or inhibit a firm’s ERT. In order to frame these conditions, we draw upon the upper echelon theory and the concept of managerial discretion. Our study of 270 family firms in China reveals that second-generation returnees holding higher managerial positions, operating in high-growing markets, or in institutionally underdeveloped regions are empowered to have a stronger positive impact on a family firm’s ERT. This research contributes to our knowledge of generational involvement, returnee executives, and the upper echelon theory.
Journal: Emerging Markets Finance and Trade
Pages: 1281-1300
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2276746
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2276746
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# input file: MREE_A_2284315_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Zeshuang Xiao
Author-X-Name-First: Zeshuang
Author-X-Name-Last: Xiao
Title: Does Supply Chain Finance Improve the Corporate Investment Efficiency of New Energy Firms? Evidence from China
Abstract: 
 This research investigates how supply chain finance (SCF) affects the investment efficiency of new energy firms by adopting a sample of Chinese listed new energy enterprises from 2011 to 2019. With the help of data envelopment analysis (DEA) combined with the Banker-Charnes-Cooper (BCC) model, we calculate efficiency values and analyze the regression results of the Tobit model, and find that SCF significantly boosts the investment efficiency of new energy corporations by improving their cash-holding position. The results of mechanism analysis also suggest that both supply chain concentration and digital finance positively magnify the relation between SCF and corporate efficiency. After comparing the impact in the new energy firms with different characteristics, we conclude that the SCF effect in promoting corporate investment efficiency is more prominent for non-state-owned new energy enterprises located in the western region that have low equity concentration. The conclusions of this paper shed new light on the fusion of the SCF business into building a new energy industry cluster.
Journal: Emerging Markets Finance and Trade
Pages: 1130-1147
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2284315
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284315
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# input file: MREE_A_2267735_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Kai Tang
Author-X-Name-First: Kai
Author-X-Name-Last: Tang
Author-Name: Kun Zhang
Author-X-Name-First: Kun
Author-X-Name-Last: Zhang
Title: The Effects of Low-Carbon Governance on Energy-Environmental Efficiency: Evidence from China’s Low-Carbon City Pilot Policy
Abstract: 
 Energy-environmental efficiency directly relates to global climate change and sustainable development. The research applies a staggered DiD design to estimate the effects of low-carbon governance on energy-environmental efficiency via panel data of 284 cities in China. Results show that low-carbon governance significantly improves both unified energy-environmental efficiency and pure energy-environmental efficiency. Heterogeneity analysis reveals that low-carbon governance in central cities has no significant effect on energy-environmental efficiency, while that in peripheral cities can improve energy-environmental efficiency, which indirectly confirms the law of decreasing returns to scale. At the same time, low-carbon governance in both resource-based and non-resource-based cities improves energy-environmental efficiency. However, among resource-based cities, low-carbon governance in growth and mature cities facilitates energy-environmental efficiency, while this effect disappears in declining and regeneration cities. Mechanism tests suggest that low-carbon governance immediately improves energy-environmental efficiency through intensive energy use and carbon emission reduction channels. The intermediate effect channels are mainly driven by fiscal decentralization, industrial structure upgrading, industrial agglomeration, innovation, and marketization, where fiscal decentralization plays a dominant role.
Journal: Emerging Markets Finance and Trade
Pages: 1227-1245
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2267735
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2267735
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# input file: MREE_A_2273996_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xudong Li
Author-X-Name-First: Xudong
Author-X-Name-Last: Li
Author-Name: Gen-Fu Feng
Author-X-Name-First: Gen-Fu
Author-X-Name-Last: Feng
Author-Name: Wai Yan Shum
Author-X-Name-First: Wai Yan
Author-X-Name-Last: Shum
Author-Name: Kam Hung Chui
Author-X-Name-First: Kam Hung
Author-X-Name-Last: Chui
Title: The Impacts of Digital Transformation on Labor Income Share: Evidence from China
Abstract: 
 This paper uses the data of Chinese A-share listed companies to study whether enterprise digital transformation will affect the labor income share. The research results show that enterprise digital transformation greatly increasing the labor income share, and our inferences unchanged after a wide battery of robustness tests. Further studies show that the mechanism of digital transformation to increase labor income share is to expand the scale of employment and increase the proportion of highly skilled labor in the total labor force. Subsample study shows that digital transformation only raises the labor income share of larger scale and higher competitive position enterprises. The research can provide policy references for developing digital economy and improving development quality.
Journal: Emerging Markets Finance and Trade
Pages: 1265-1280
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2273996
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2273996
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# input file: MREE_A_2278645_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fábio Duarte
Author-X-Name-First: Fábio
Author-X-Name-Last: Duarte
Author-Name: Ricardo Emanuel-Correia
Author-X-Name-First: Ricardo
Author-X-Name-Last: Emanuel-Correia
Author-Name: Sabrina Tomé
Author-X-Name-First: Sabrina
Author-X-Name-Last: Tomé
Author-Name: Ana Paula Matias Gama
Author-X-Name-First: Ana Paula Matias
Author-X-Name-Last: Gama
Title: Launching Prosocial Crowdfunding Campaigns: The Final Countdown
Abstract: 
 Prosocial crowdfunding has achieved a growing audience by providing a financing source for entrepreneurs in the microfinance space. Using data from Kiva, a leading prosocial crowdfunding platform, we examined whether there is a right time to launch a crowdfunding campaign. This is the first study to unravel the role of temporal patterns in securing funds in emerging markets. Our results indicate a reverse turn-of-the-month effect on the fully funded campaigns. We further identified a “positive winter prosocial effect” and a “positive first-half-of-the-week effect” on successful fundraising. As such, our study highlights relevant similarities between financial markets and crowdfunding.
Journal: Emerging Markets Finance and Trade
Pages: 1209-1226
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278645
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278645
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# input file: MREE_A_2270135_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Le Zhang
Author-X-Name-First: Le
Author-X-Name-Last: Zhang
Author-Name: Baogui Xin
Author-X-Name-First: Baogui
Author-X-Name-Last: Xin
Title: E-Commerce and Preferential Credit to Enable Farmers’ Cooperative Financing
Abstract: 
 Agricultural cooperatives are pivotal in promoting agricultural industrialization but face capital shortages, needing strategic financing selection between bank loans and e-commerce. This paper uses Stackelberg game theory to examine cooperatives’ and enterprises’ optimal decision-making and motivations under different financing. It scrutinizes preferences for financing methods and explores bank credit policies and e-commerce interest rates in channel selection. Findings suggest that developing favorable policies, like encouraging green credit and e-commerce support for farmers, could significantly improve cooperatives’ financing. Expanding digital initiatives in supply chains could also enable more sustainable models. This research illuminates cooperatives’ complex decision-making and offers insights to bolster agricultural finance systems.
Journal: Emerging Markets Finance and Trade
Pages: 1246-1264
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2270135
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2270135
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# input file: MREE_A_2278649_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Marina Zavertiaeva
Author-X-Name-First: Marina
Author-X-Name-Last: Zavertiaeva
Author-Name: Evgeniya Shenkman
Author-X-Name-First: Evgeniya
Author-X-Name-Last: Shenkman
Author-Name: Ekaterina Kazarina
Author-X-Name-First: Ekaterina
Author-X-Name-Last: Kazarina
Title: Does Independence of Board Committees Enhance Corporate Performance? The Case of Russia
Abstract: 
 This article analyzes the service of independent directors on audit, compensation, nomination, and strategy committees as a driver of book- and market-based performance using a sample of 77 Russian listed non-financial firms during the period 2009–2019. We address endogeneity using the Heckman correction procedure and instrumental variables. We find that committee independence not only positively affects firm performance but also moderates the relationship between committee structure and firm outcomes. Thus, the positive impact of government experience and female ownership on firm performance may be enhanced by the independence of certain committees.
Journal: Emerging Markets Finance and Trade
Pages: 1316-1332
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278649
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# input file: MREE_A_2273514_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Huai Qian
Author-X-Name-First: Huai
Author-X-Name-Last: Qian
Author-Name: Bingkun Yang
Author-X-Name-First: Bingkun
Author-X-Name-Last: Yang
Author-Name: Weihua Huang
Author-X-Name-First: Weihua
Author-X-Name-Last: Huang
Title: Empirical Analysis of the “China‒US factor” in Stock Market Linkages
Abstract: 
 This article studies the economic impact of China and the U.S. from 2011 to 2023 through stock market linkages. A bivariate VAR model is used for nonlinear Granger causality analysis. The results show that the U.S. economy’s dominance remains unshaken, impacting the world economy. Despite China’s progress and significant role in the global economy, it cannot yet impact the U.S. economy. Understanding this is crucial for global economic patterns, the political state, and enriching global economic stability and development.
Journal: Emerging Markets Finance and Trade
Pages: 1118-1129
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2273514
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2273514
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# input file: MREE_A_2267737_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Arthur Dassan
Author-X-Name-First: Arthur
Author-X-Name-Last: Dassan
Author-Name: Joelson Oliveira Sampaio
Author-X-Name-First: Joelson Oliveira
Author-X-Name-Last: Sampaio
Author-Name: Vinícius Augusto Brunassi Silva
Author-X-Name-First: Vinícius Augusto Brunassi
Author-X-Name-Last: Silva
Author-Name: Rodrigo De-Losso
Author-X-Name-First: Rodrigo
Author-X-Name-Last: De-Losso
Title: Does Private Means Better? A Water and Sanitation Quasi-Experimental Design
Abstract: 
 This paper compares water and sanitation services in municipalities that entered into a concession arrangement with a private operator versus those in a comparable control group that continued with a public operator. We explore five variables of interest: average tariff; water coverage; sewage collection; sewage treatment; and water losses. Our empirical strategy improves on existing techniques: after controlling for municipality idiosyncrasies, we adopt a difference-in-differences model with nearest-neighbor matching to evaluate private sector management impacts on these variables. We find a large drop in tariff after the concession switching to a private operator, but tariff increases are greater than public operator during the first four years. There is economical and statistical evidence of increasing sewage collection and treatment over time, but only economical evidence of improvements in water coverage; and no convincing evidence of reduction in water losses. The results suggest huge positive economic impact of switching services from public to private.
Journal: Emerging Markets Finance and Trade
Pages: 1087-1105
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2267737
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2267737
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# input file: MREE_A_2284303_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yi Yang
Author-X-Name-First: Yi
Author-X-Name-Last: Yang
Author-Name: Jing Pu
Author-X-Name-First: Jing
Author-X-Name-Last: Pu
Author-Name: Zhiwei Yuan
Author-X-Name-First: Zhiwei
Author-X-Name-Last: Yuan
Author-Name: Liming Cheng
Author-X-Name-First: Liming
Author-X-Name-Last: Cheng
Title: Environmental Protection Tax, Environmental Monitoring Agency Behavior and Green Technology Innovation of Resource-Based Enterprises: Empirical Evidence from China
Abstract: 
 This paper explores the impact of environmental protection tax on green technology innovation of Chinese resource-based enterprises and behavior of third-party environmental monitoring institutions. It uses game theory to analyze participants’ strategy selections, and uses the triple difference method to empirically test the promotion effect. Our robust results find that (1) Chinese environmental tax policy effectively promotes the green innovation of resource-based enterprises and standardizes the behavior of third-party monitoring institutions; (2) local governments’ actions such as increasing environmental protection tax, penalizing third-party monitoring agencies for violations, and promoting public preference for green consumption, all contribute to accelerating enterprises’ green innovation; (3) the central government’s increased regulation of local governments has a positive impact on enterprises and third-party monitoring institutions.
Journal: Emerging Markets Finance and Trade
Pages: 1301-1315
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2284303
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284303
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# input file: MREE_A_2277383_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Qingquan Xin
Author-X-Name-First: Qingquan
Author-X-Name-Last: Xin
Author-Name: Lu Shi
Author-X-Name-First: Lu
Author-X-Name-Last: Shi
Author-Name: Chi Zhang
Author-X-Name-First: Chi
Author-X-Name-Last: Zhang
Title: Mandatory Disclosure of R&D Expenditures and Analyst Forecasts
Abstract: 
 Using a natural experiment mandatorily requiring listed firms to disclose R&D activities in the context of China, this paper quantifies the effects of such mandatory disclosure on analyst forecasts, and show that mandatory R&D disclosure significantly decreases analyst forecast accuracy and increases the dispersion of analyst forecasts. Then, we present the underlying mechanisms driving our findings: the ability of analysts and detailed R&D information. Finally, our results are more pronounced in state-owned enterprises and industries with little competition. We show the economic significance of mandatory R&D information disclosure on capital markets. Overall, this study contributes to the literature by evaluating the unintended consequences of mandatory R&D information disclosure on analyst forecasts.
Journal: Emerging Markets Finance and Trade
Pages: 1162-1181
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2277383
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2277383
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# input file: MREE_A_2284307_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chunhui You
Author-X-Name-First: Chunhui
Author-X-Name-Last: You
Author-Name: Jing Wang
Author-X-Name-First: Jing
Author-X-Name-Last: Wang
Title: Investor Sentiment, Financing Constraints, and Earnings Persistence
Abstract: 
 Based on the background of investor sentiment volatility in the capital market, this article empirically examines the relationship between investor sentiment and corporate earnings persistence and its impact mechanism using a first-order autoregressive model with a sample of Chinese A-share non-financial listed companies from 2007 to 2019. It is found that rising investor sentiment helps improve corporate earnings persistence when investor sentiment is moderate, with financing constraints playing a part in mediating the effect. The test of heterogeneity in corporate life cycle and nature of ownership found that rising investor sentiment significantly mitigates the financing constraints in growth stage and non-state enterprises, which in turn improves their earnings persistence.
Journal: Emerging Markets Finance and Trade
Pages: 1148-1161
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2284307
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284307
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# input file: MREE_A_2278643_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sanjiv Kumar
Author-X-Name-First: Sanjiv
Author-X-Name-Last: Kumar
Author-Name: K.P. Prabheesh
Author-X-Name-First: K.P.
Author-X-Name-Last: Prabheesh
Title: Assessing the Effects of Macroprudential Policy on the Indian Macroeconomy
Abstract: 
 This study examines the impact of macroprudential policy (MaPP) on macroeconomic conditions. Using data from 2004–2005 to 2019–2020, this study finds that increased use of MaPP is associated with higher consumption and economic growth. However, this study does not find a significant effect on inflation. From a threshold perspective, the study reveals that MaPP has a positive impact on consumption and economic growth up to a threshold level of 34.00; however, above this level, MaPP has a negative impact on both variables. Similarly, MaPP has a positive impact on inflation rates below the threshold level but has a negative impact above it. From a tail risk perspective, MaPP has a positive impact on the bottom quantile of economic growth.
Journal: Emerging Markets Finance and Trade
Pages: 1182-1208
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278643
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278643
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# input file: MREE_A_2270136_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Qianhua Lei
Author-X-Name-First: Qianhua
Author-X-Name-Last: Lei
Author-Name: Qiao Zhang
Author-X-Name-First: Qiao
Author-X-Name-Last: Zhang
Author-Name: Huili Chen
Author-X-Name-First: Huili
Author-X-Name-Last: Chen
Title: Does the Shareholding Proportion of Large Shareholders Affect the Horizontal Organizational Structure? Evidence from Listed Companies in China
Abstract: 
 This paper examines how the shareholding proportion of large shareholders affects the horizontal organizational structure of business groups. We empirically find that as the shareholding proportion of large shareholders increases, the number of subsidiaries decreases, which provides evidence of the alignment effect and risk aversion of large shareholders. Our results are robust to various robustness tests. The mechanism tests further verify the alignment effect and risk aversion of large shareholders, showing that as ownership becomes more concentrated, large shareholders tend to reduce agency problems and avoid risks. This study enhances the understanding of horizontal expansion in pyramidal organizational structures.
Journal: Emerging Markets Finance and Trade
Pages: 1106-1117
Issue: 6
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2270136
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2270136
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# input file: MREE_A_2236288_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Aizhen Chen
Author-X-Name-First: Aizhen
Author-X-Name-Last: Chen
Author-Name: Dongyan Zhao
Author-X-Name-First: Dongyan
Author-X-Name-Last: Zhao
Author-Name: Haijie Wang
Author-X-Name-First: Haijie
Author-X-Name-Last: Wang
Title: Intermediaries’ Imports and Export Product Quality: A Perspective of Supply Chain Network Correlation
Abstract: 
 This article investigates how intermediaries’ imported inputs affect nondirect import firms’ product quality. Based on WIOD input‒output tables and microlevel China customs trade data, the result shows that intermediaries can significantly improve nondirect import firms’ export quality mainly through imported quality rather than imported quantity. In addition, the promotion effect of intermediaries’ import quality is greater for nondirect import firms with a larger scale, higher export intensity and longer export year; the imported quality of ordinary intermediaries has a greater effect than that of professional intermediaries. Furthermore, the imported quality of intermediaries is also conducive to alleviating the negative effect of the quality directly imported by peer firms in the same industry. This study not only explores intermediaries’ supporting role in the supply chain but also puts forward some policy implications of export product quality upgrading for SMEs.
Journal: Emerging Markets Finance and Trade
Pages: 1511-1536
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2236288
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2236288
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# input file: MREE_A_2278657_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Caixia Liu
Author-X-Name-First: Caixia
Author-X-Name-Last: Liu
Author-Name: Xuesheng Chen
Author-X-Name-First: Xuesheng
Author-X-Name-Last: Chen
Author-Name: Fenghui Cui
Author-X-Name-First: Fenghui
Author-X-Name-Last: Cui
Author-Name: Zhangxin (Frank) Liu
Author-X-Name-First: Zhangxin (Frank)
Author-X-Name-Last: Liu
Title: Debt Financing and Labor Employment in China: An Inverted U-Shaped Relationship
Abstract: 
 This study examines whether debt financing affects firm labor employment. Using Chinese listed companies between 2007 and 2021, we identify an inverted U-shaped relationship between debt financing and labor employment. Increased debt financing tends to boost labor employment. However, this positive influence gradually diminishes until a critical point is reached and the relationship turns negative thereafter, suggesting that there is a best balance between debt financing and labor employment. This inverted U-shaped association is also influenced by firm profitability and financial risk, with the former steepening the relationship and the latter making it smoother. Moreover, the impact of debt financing on labor employment is more pronounced in large firms, non-state-owned enterprises, labor-intensive companies, and firms with high solvency. Our findings imply that companies can effectively harness the positive effects of debt financing on labor employment by strategically adjusting their capital and labor resources.
Journal: Emerging Markets Finance and Trade
Pages: 1432-1446
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278657
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278657
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# input file: MREE_A_2256942_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yueqin Lan
Author-X-Name-First: Yueqin
Author-X-Name-Last: Lan
Author-Name: Jie Wei
Author-X-Name-First: Jie
Author-X-Name-Last: Wei
Author-Name: Xiaohan Duan
Author-X-Name-First: Xiaohan
Author-X-Name-Last: Duan
Title: The Effects of the Digital Economy on Carbon Emission: Evidence from China
Abstract: 
 This study used Chinese provincial panel data from 2011 to 2019 to analyze the impact of the digital economy on carbon emissions and the mediating effect of industrial structure. The key findings are as follows: (1) industrial structure has a mediating effect on the influence of the digital economy on carbon emissions; (2) the direct impact of the digital economy on local carbon emissions is greater than the indirect impact on nearby carbon emissions; and (3) the digital economy has a noticeable effect on carbon emissions in the eastern and central regions of China, but not in the western region.
Journal: Emerging Markets Finance and Trade
Pages: 1468-1483
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2256942
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2256942
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# input file: MREE_A_2284298_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zhilin Wu
Author-X-Name-First: Zhilin
Author-X-Name-Last: Wu
Author-Name: Haiming Long
Author-X-Name-First: Haiming
Author-X-Name-Last: Long
Author-Name: Lei Shi
Author-X-Name-First: Lei
Author-X-Name-Last: Shi
Author-Name: Hui Song
Author-X-Name-First: Hui
Author-X-Name-Last: Song
Title: The Impact of Digital Economy on Firm Performance: Evidence from China
Abstract: 
 This paper employs a multidimensional fixed effects model and examines the impact of the digital economy on the performance of firms in traditional industries. We have identified a pattern similar to the “IT productivity paradox” observed in the United States during the 1980s. Using data from A-share listed Chinese firms from 2011–2019, we find that the digital economy significantly reduces the short-term performance of firms by intensifying market competition and increasing adjustment costs. On the contrary, the digital economy improves firms’ long-term performance through accumulation of human capital and greater innovation capability. Competitive strategies strengthen the effect of the digital economy on the long-term performance of firms. Additionally, our research demonstrates that technology-intensive firms and small firms experience more pronounced negative effects in the short term but firms with high-tech titles suffer smaller shocks than other technology-intensive firms. These findings presents novel perspectives on the influence of the digital economy on firm performance, offering valuable insights for managers, investors, and policymakers involved in economic decision-making.
Journal: Emerging Markets Finance and Trade
Pages: 1407-1431
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2284298
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284298
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# input file: MREE_A_2284288_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Gao Dongxi
Author-X-Name-First: Gao
Author-X-Name-Last: Dongxi
Author-Name: Chen Xiaoxiong
Author-X-Name-First: Chen
Author-X-Name-Last: Xiaoxiong
Author-Name: Zhao Jiayue
Author-X-Name-First: Zhao
Author-X-Name-Last: Jiayue
Author-Name: Guo Wei
Author-X-Name-First: Guo
Author-X-Name-Last: Wei
Title: Tax Incentives, Factor Allocation and Within-Firm Pay Gap: Evidence from a Quasi-Natural Experiment in China
Abstract: 
 This paper investigates the effect of China’s accelerated depreciation policy on within-firm pay gap. We exploit a firm-level panel data from China’s A-share listed companies and estimate the policy effects by constructing a difference-in-differences model. Results show that the accelerated depreciation policy significantly increases the within-firm pay gap of firms of pilot industries than those of non-pilot industries, and this finding continues to hold after accounting for other contemporaneous shocks and is robust to a battery of robustness checks. Our mechanism tests demonstrate that, the rank-and-file employees replaced by the use of capital rather than executives, dominates the positive nexus between within-firm pay gap and accelerated depreciation policy. This effect is more pronounced for firms with higher tax burden, stronger financing constraint and higher capital intensity. We also find that China’s accelerated depreciation policy improves overall capital allocation efficiency and labor allocation efficiency. Our findings provide a deep understanding of the link between tax incentives and within-firm pay gap, especially from the perspective of factor allocation.
Journal: Emerging Markets Finance and Trade
Pages: 1549-1577
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2284288
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284288
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# input file: MREE_A_2281414_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hongpian Jie
Author-X-Name-First: Hongpian
Author-X-Name-Last: Jie
Author-Name: Xiaohui Liu
Author-X-Name-First: Xiaohui
Author-X-Name-Last: Liu
Title: Price Regulation, Exchange Rate Regulation and the Purchasing Power Parity: Empirical Evidence from China
Abstract: 
 This paper compiles a market-based price index by accounting for the impact of price regulation. We then use the parallel market exchange rate and market-based price index to test Purchasing Power Parity (PPP) over a more extended period (1952–2019) in China. We find weak evidence support PPP when official data are used. However, we fail to find evidence against PPP when the parallel market exchange rate and the market-based price index are used. Moreover, the half-life of the RMB real exchange rate is approximately one year, substantially lower than the consensus estimates of 3–5 years.
Journal: Emerging Markets Finance and Trade
Pages: 1537-1548
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2281414
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2281414
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# input file: MREE_A_2278651_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Tarifa Almulhim
Author-X-Name-First: Tarifa
Author-X-Name-Last: Almulhim
Author-Name: Norah Almubarak
Author-X-Name-First: Norah
Author-X-Name-Last: Almubarak
Author-Name: Noorah Aljabr
Author-X-Name-First: Noorah
Author-X-Name-Last: Aljabr
Title: How to Comprehensively Evaluate Firm Performance from Operational, Financial, and Sustainability Perspectives? A Two-Stage Data Envelopment Analysis Approach
Abstract: 
 This study proposes a two-stage modeling framework to evaluate the efficiency of firm performance based on sustainability (environmental, social, and governance (ESG)), operational and financial measures. Diverging from previous studies, this study conceptualizes firm performance as two serially linked stages, with operational performance as the first stage and market performance as the second stage. Acknowledging that ESG activities may reflect firm value and that these activities depend on a firm’s operational performance, ESG scores are modeled simultaneously as an output of the operational performance stage and as an input for the market stage. Under this performance appraisal framework, two-stage data envelopment analysis models capturing overall and stage-level efficiency are constructed. The application of the proposed modeling framework is demonstrated using a sample of large Saudi listed firms as a case study of an emerging market. The main conclusion is that ESG legislation, regulations, and disclosure guidelines should be well defined in emerging markets to increase the overall efficiency of listed firms’ performance.
Journal: Emerging Markets Finance and Trade
Pages: 1447-1467
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278651
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278651
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# input file: MREE_A_2284304_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Bhushan Praveen Jangam
Author-X-Name-First: Bhushan Praveen
Author-X-Name-Last: Jangam
Author-Name: Badri Narayan Rath
Author-X-Name-First: Badri Narayan
Author-X-Name-Last: Rath
Author-Name: Masagus M Ridhwan
Author-X-Name-First: Masagus M
Author-X-Name-Last: Ridhwan
Title: Does Global Value Chain Integration Enhance Export Competitiveness? Evidence from Indonesia’s Industry-Level Analysis
Abstract: 
 We investigate the association between global value chain (GVC) integration and export competitiveness for 34 Indonesian industries from 2007 to 2020. Using panel unit root, panel cointegration, panel long-run estimator, and panel granger causality, we find the following key findings: First, we find that GVC integration and export competitiveness are cointegrated or share a long-term association. Second, we find that GVC integration favorably impacts export competitiveness over time. Third, we confirm the existence of a unidirectional causal link between GVC integration and export competitiveness. Fourth, we also discover results linked with the kind of GVC integration (forward, backward, and two-sided) and the industry type (manufacturing, services, labor-intensive and capital-intensive industries). These findings aid policymakers in the formulation of suitable measures to enhance GVC integration to strengthen the export competitiveness of Indonesian industries.
Journal: Emerging Markets Finance and Trade
Pages: 1578-1598
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2284304
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284304
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# input file: MREE_A_2278659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xiaohan Liu
Author-X-Name-First: Xiaohan
Author-X-Name-Last: Liu
Author-Name: Jianmin Liu
Author-X-Name-First: Jianmin
Author-X-Name-Last: Liu
Author-Name: Yu Hao
Author-X-Name-First: Yu
Author-X-Name-Last: Hao
Title: Climate Change Shocks and Credit Risk of Financial Institutions: Evidence from China’s Commercial Banks
Abstract: 
 As global climate risk is looming in recent years, the climate risks faced by financial institutions are also increasing. Effectively quantifying and assessing climate-related financial risks is of great significance for financial institutions to establish risk management mechanisms. Accordingly, choosing Chinese commercial bank data from 2007 to 2019, this paper quantitatively evaluates the influence of climate change shock on the banks’ credit risk by taking the annual temperature fluctuation in cities as the core index to characterize the climate change degree. It is found that annual average temperature rise can significantly increase the credit risk level of commercial banks. Heterogeneity analysis indicates that small-scale banks, rural commercial banks, and commercial banks with higher marketization levels are more sensitive to climate change. Further analysis shows summer and autumn temperature changes have the most prominent impact on banks’ credit risk. Moreover, there is no obvious nonlinear relationship or lagged effects between annual temperature change and banks’ credit risk in our dataset.
Journal: Emerging Markets Finance and Trade
Pages: 1392-1406
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278659
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278659
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# input file: MREE_A_2278650_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chao Feng
Author-X-Name-First: Chao
Author-X-Name-Last: Feng
Author-Name: Yu-Qi Liu
Author-X-Name-First: Yu-Qi
Author-X-Name-Last: Liu
Author-Name: Jun Yang
Author-X-Name-First: Jun
Author-X-Name-Last: Yang
Title: How Does Financial Development Affect Global Energy Security? A Functional Data Analysis
Abstract: 
 As an important foundation for national economic and social development, the energy sector can be affected by financial developments complexly. Using data for 60 countries from 1995–2019 and functional data analysis (FDA) technique, this study explores the dynamic impact of financial development on energy security. The main results suggest that the direction and extent of energy security influenced by financial developments are not singular. Financial developments have contributed to energy security around 2010 and 2015, and the opposite around 2013 and 2017. In addition, the 2008 financial crisis may lead to a deeper degree of uncertainty in the impact of financial development on energy security thereafter. Further analysis also shows that the dynamic process of the impact differed across regions and across income levels. The impact is more significant in the Americas, Europe, and Asia Pacific, and to a lesser extent in Africa and the Middle East. Meanwhile, lower-middle income countries’ energy security is more volatile to financial developments than countries in other income categories.
Journal: Emerging Markets Finance and Trade
Pages: 1484-1497
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278650
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278650
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# input file: MREE_A_2278654_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Min Zhang
Author-X-Name-First: Min
Author-X-Name-Last: Zhang
Author-Name: Xin Jin
Author-X-Name-First: Xin
Author-X-Name-Last: Jin
Author-Name: Yuanheng Li
Author-X-Name-First: Yuanheng
Author-X-Name-Last: Li
Author-Name: Xiaoyi Tang
Author-X-Name-First: Xiaoyi
Author-X-Name-Last: Tang
Title: Influence of Financial Support on Regional Innovation Across Different Phases of the COVID-19 Pandemic
Abstract: 
 The financial market and regional innovation have been severely affected by the COVID-19 pandemic. This paper investigates the impact of financial support on regional innovation at different stages of the COVID-19 pandemic from 2019 to 2021 in China. Before the pandemic, bank support positively influenced regional innovation quantity and quality, while government support had a positive effect on quantity. Throughout COVID-19, both types of support promoted regional innovation quantity and quality. In the post-pandemic era, bank support had a modest positive impact on quantity, while government support influenced both quantity and quality. Evidences from other countries support these findings. The study guides decision-makers to mitigate the pandemic’s impact on regional innovation with specific guidance for government and banking institutions.
Journal: Emerging Markets Finance and Trade
Pages: 1333-1348
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278654
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278654
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# input file: MREE_A_2278655_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ying Lin
Author-X-Name-First: Ying
Author-X-Name-Last: Lin
Author-Name: Lei Li
Author-X-Name-First: Lei
Author-X-Name-Last: Li
Author-Name: Jun Wen
Author-X-Name-First: Jun
Author-X-Name-Last: Wen
Title: Industrial Disasters, Financial Constraints, and Innovation: Firm-Level Evidence from China
Abstract: 
 This paper presents empirical evidence on the impact of industrial disasters on firm-specific innovation, focusing on the role of financial constraints. Using panel data of manufacturing firms in China from 2000 to 2013, our two-way fixed effects analyses confirm a statistically negative effect of industrial disasters on innovation in both the short run and the long run, and the negative effect is enhanced with the frequency of disasters. Another prefecture-level city panel from 2000 to 2019 further confirms the long-run and frequency-enhanced negative effect. The mechanism analysis shows that industrial disasters significantly increase interest rates and reduce bank lending to firms, which in turn reduces innovation. Moreover, ownership and size discrimination lead to asymmetric innovation effects on firms in the short and long run. Our results provide empirical evidence for the government to better allocate reconstruction funds and ensure firm innovation in the post-disaster period.
Journal: Emerging Markets Finance and Trade
Pages: 1377-1391
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278655
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278655
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# input file: MREE_A_2281420_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zhujia Yin
Author-X-Name-First: Zhujia
Author-X-Name-Last: Yin
Author-Name: Luohan Wei
Author-X-Name-First: Luohan
Author-X-Name-Last: Wei
Author-Name: Zhifang He
Author-X-Name-First: Zhifang
Author-X-Name-Last: He
Author-Name: Xin Yang
Author-X-Name-First: Xin
Author-X-Name-Last: Yang
Title: Can Executives’ Foreign Experience Promote Corporate Green Innovation? —Evidence from Chinese Energy Firms
Abstract: 
 Green innovation is an important driving force for energy firms to improve their competitive advantage and an important path to achieve the goals of “carbon neutrality” and “carbon peaking.” This paper examines whether and how executives’ foreign experience influences green innovation in Chinese energy firms. Using data on the foreign experience of executives, we discover that the foreign executives’ experience is positively correlated with corporate green innovation. Potential mechanisms analyses imply that enhancement of environmental ethics and comprehensive competency are two important channels by which foreign experience of executives influences green innovation. In addition, moderating effects indicate that the positive association between the foreign experience of executives and green innovation is dominant in energy firms with fewer financing constraints, state-owned energy firms, and firms with less market competition. Finally, we find that the positive impact of executives’ foreign experience on corporate green innovation is different in aspects such as the subindustries, whether executives have U.S. experience, length of stay abroad, the age of executives going abroad and positions, while there is no significant difference in different types of foreign experience. In summary, these results imply that executives’ foreign experience is a crucial factor in fostering green innovation of energy firms.
Journal: Emerging Markets Finance and Trade
Pages: 1349-1376
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2281420
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2281420
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# input file: MREE_A_2278661_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Bruno Ćorić
Author-X-Name-First: Bruno
Author-X-Name-Last: Ćorić
Title: Consumption Disasters: A Global Dataset
Abstract: 
 A number of studies suggest that macro-finance models incorporating the risk of extremely large drops in consumption can explain many financial phenomena. This literature is based on the data for a limited number of countries and a relatively small number of disasters in the post-World War II period. Our study constructs a global dataset on consumption disasters. We identify 498 consumption disasters in 212 countries after World War II and provide data on the probability, size, and duration of disasters for the total sample and different groups of countries. We also explore the recovery of consumption after disasters.
Journal: Emerging Markets Finance and Trade
Pages: 1498-1510
Issue: 7
Volume: 60
Year: 2024
Month: 05
X-DOI: 10.1080/1540496X.2023.2278661
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278661
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# input file: MREE_A_2287496_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jieyi Lu
Author-X-Name-First: Jieyi
Author-X-Name-Last: Lu
Author-Name: Wanfa Lin
Author-X-Name-First: Wanfa
Author-X-Name-Last: Lin
Author-Name: Huiyu Guo
Author-X-Name-First: Huiyu
Author-X-Name-Last: Guo
Author-Name: Jinyu Luo
Author-X-Name-First: Jinyu
Author-X-Name-Last: Luo
Title: Investor-Paid Rating Agency, Information Disclosure, and Stock Price Crash Risk
Abstract: 
 This paper examines the impact of investor-paid rating agency on stock price crash risk. The findings reveal a substantial 127.6% reduction in the stock price crash risk for stocks tracked by investor-paid rating agency compared to those without such tracking. As for the mechanism, the following of investor-paid rating agency reduces earnings management, induces more negative information disclosure, and improves information disclosure quality. The impact of investor-paid rating agency is more pronounced in firms with poorer corporate governance. Further analysis indicates that the impact of investor-paid rating agency increases with the frequency of rating tracking and the rating difference between issuer-paid rating agency and investor-paid rating agency, while stock market reaction induced by investor-paid rating agency has little effect on the baseline result. Moreover, the tracking of investor-paid rating agency facilitates the information flow between the bond market and stock market, and improves analyst forecast performance. In summary, we suggest that investor-paid rating agency tracking acts as a valid passive monitoring mechanism to alleviate principal-agent problems and provide information on firms’ downside risk.
Journal: Emerging Markets Finance and Trade
Pages: 1815-1840
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2287496
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2287496
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# input file: MREE_A_2278652_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jing Lu
Author-X-Name-First: Jing
Author-X-Name-Last: Lu
Author-Name: Taoxuan Wang
Author-X-Name-First: Taoxuan
Author-X-Name-Last: Wang
Author-Name: Yiming Yuan
Author-X-Name-First: Yiming
Author-X-Name-Last: Yuan
Author-Name: Hangyu Chen
Author-X-Name-First: Hangyu
Author-X-Name-Last: Chen
Title: Do Industrial Robots Improve Export Product Quality of Multi-Product Enterprises? Evidence in China
Abstract: 
 Based on an endogenous quality selection model, we investigate the effect of industrial robots on the export product quality of China’s multi-product enterprises. The main finding is that there is a nonlinear “inverted U-shaped” relationship between industrial robot applications and export quality. Industrial robots mainly affect export quality through the “productivity improvement effect” and “innovation inhibition effect.” The influence channels exhibit heterogeneity, contingent on industries, growth stages, and import orders. We further find that the entry of new products, improvement in the quality of existing products, and reallocation of internal resources within the enterprise account for product quality change in general.
Journal: Emerging Markets Finance and Trade
Pages: 1691-1715
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2278652
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278652
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# input file: MREE_A_2278663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Lili Kang
Author-X-Name-First: Lili
Author-X-Name-Last: Kang
Author-Name: Fei Peng
Author-X-Name-First: Fei
Author-X-Name-Last: Peng
Author-Name: Sajid Anwar
Author-X-Name-First: Sajid
Author-X-Name-Last: Anwar
Title: Cultural Heterogeneity of Top Management Teams, Cross-Border Acquisitions, and Financial Performance of Chinese Publicly Listed Companies
Abstract: 
 Using data from Chinese publicly listed companies (PLCs) over the 2010–2017 period, this paper examines the impact of cultural heterogeneity within the top management team (TMT) on the post-acquisition performance of cross-border acquisitions (CBAs). TMT cultural heterogeneity is measured as the cultural distance between the board chairperson and chief executive officer (CEO), based on the south-rice-north-wheat cultural dichotomy in traditional China in 1916. Overall, we find that TMT cultural heterogeneity can increase the likelihood of CBAs. However, it also has a significantly negative impact on both the market performance and profitability of privately-owned Chinese PLCs after the CBAs. To provide a comprehensive analysis, we also explore the moderating effects of state ownership and high-tech industries. The results reveal that TMT cultural heterogeneity can actually improve the market performance of CBAs conducted by state-owned PLCs, and it can enhance the profitability performance of CBAs within the high-tech industry. Our analysis highlights the significance of TMT cultural heterogeneity during the post-acquisition integration process following CBAs.
Journal: Emerging Markets Finance and Trade
Pages: 1748-1761
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2278663
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2278663
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# input file: MREE_A_2250906_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Lina Yan
Author-X-Name-First: Lina
Author-X-Name-Last: Yan
Author-Name: Zi Nie
Author-X-Name-First: Zi
Author-X-Name-Last: Nie
Author-Name: Yajun Deng
Author-X-Name-First: Yajun
Author-X-Name-Last: Deng
Title: Can Reverse Mixed-Ownership Reform Reduce the Cost of Equity Financing of Private Enterprises?
Abstract: 
 How to leverage the advantages of state-owned capital to promote the high-quality development of private enterprises is a central issue of mixed-ownership reform. We empirically explore the effect of reverse mixed-ownership reform on the cost of equity financing for private enterprises and the underlying mechanism from two perspectives: equity structure and high-level governance using fixed-effect and IV regressions. We find that reverse mixed-ownership reform significantly reduces the cost of equity financing for private enterprises. The mediation effect tests suggest that the improvement of information disclosure quality and equity liquidity partially play intermediary roles in the relation between the reform and the equity financing cost. Heterogeneity tests suggest that cost of equity financing for private enterprises are significantly reduced for firms operating in highly competitive industry environment and firms located in regions with lower level of marketization. We contribute to the understanding of the economic consequences of reverse mixed-ownership reform and provide policy insights for further advancing the reform in private enterprises while effectively harnessing the advantages of state-owned capital.
Journal: Emerging Markets Finance and Trade
Pages: 1716-1731
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2250906
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2250906
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# input file: MREE_A_2284308_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Li-Yang Guo
Author-X-Name-First: Li-Yang
Author-X-Name-Last: Guo
Author-Name: Si-Qi Yu
Author-X-Name-First: Si-Qi
Author-X-Name-Last: Yu
Author-Name: Yong-Qiu Wu
Author-X-Name-First: Yong-Qiu
Author-X-Name-Last: Wu
Author-Name: Chao Feng
Author-X-Name-First: Chao
Author-X-Name-Last: Feng
Author-Name: Jun Yang
Author-X-Name-First: Jun
Author-X-Name-Last: Yang
Title: Emissions Trading Scheme Brings Transition Risks to Industrial Supply Chain in China
Abstract: 
 Emissions trading scheme (ETS) is a market-oriented measure to promote green transition. In order to determine systemic risk among ETS pilots and industrial supply chain in China, this study applies a financial network approach on a system consisting of 7 emission allowances and 27 commodities. The empirical findings confirm that ETS poses transition risks to industrial supply chain by creating new information channels between emission allowances and commodities. Such channels are generated by the extensive financial connections within the ETS-commodity system. The degree of financial connection dynamically responds to shocks from institutional events of ETS, transaction adjustments for commodities, and extreme risk event like COVID-19. Analysis of connection structure shows that most of the products within the ETS-commodity system differ in the ability to generate financial connections. The bidirectional connection feedbacks between them and their connectors exhibit asymmetry. Several centrality indicators also screen out systemically important products from multiple scales. The findings could have policy implications for related authorities, manufacturers and investors.
Journal: Emerging Markets Finance and Trade
Pages: 1643-1657
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2284308
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284308
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# input file: MREE_A_2284312_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jung Joo La
Author-X-Name-First: Jung Joo
Author-X-Name-Last: La
Title: General Equilibrium Effects of the Adoption of a Dual-Class Share Structure by an Innovative Firm in Korea
Abstract: 
 This study examines the general equilibrium effects of the adoption of a dual-class share structure by an innovative firm in Korea. In contrast to previous studies, which are performed from a microeconomic perspective and focus on empirical analyses, this study is performed from a macroeconomic perspective and uses a theoretical approach based on a dynamic general equilibrium model. The calibrated results obtained using data from Korea show that the adoption of a dual-class share structure by an innovative firm increases real gross domestic product, total real consumption, social welfare, and total innovation ability by 0.63%, 1.23%, 1.23%, and 2.22%, respectively, but decreases the probability of failure to defend management rights by 6.44%. In contrast, the adoption of a dual-class share structure by a non-innovative firm has a much weaker effect because a non-innovative firm does not invest in innovation.
Journal: Emerging Markets Finance and Trade
Pages: 1658-1669
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2284312
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284312
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# input file: MREE_A_2284300_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zuoxiang Zhao
Author-X-Name-First: Zuoxiang
Author-X-Name-Last: Zhao
Author-Name: Ding Han
Author-X-Name-First: Ding
Author-X-Name-Last: Han
Author-Name: Shreya Pal
Author-X-Name-First: Shreya
Author-X-Name-Last: Pal
Author-Name: Mantu Kumar Mahalik
Author-X-Name-First: Mantu Kumar
Author-X-Name-Last: Mahalik
Author-Name: Giray Gozgor
Author-X-Name-First: Giray
Author-X-Name-Last: Gozgor
Title: Financial Development Convergence: Evidence from Top and Bottom Globalised Developing Economies
Abstract: 
 This paper investigates the pattern of the financial development convergence for the top (Europe and Central Asia) and the bottom (South Asia) globalized developing regions from 1984 to 2016. We employ the Philips-Sul club convergence approach to measure the financial development convergence’s speed. The results validate the convergence of financial development in all countries, including the top and bottom of globalized developing regions. Interestingly, the speed of financial development convergence is less in the bottom globalized developing region than in the top globalized developing region. However, these results vary across developing regions in the case of financial institutions and financial markets. Therefore, solid financial market governance can provide a productive and efficient financial system, particularly in the bottom globalized economies.
Journal: Emerging Markets Finance and Trade
Pages: 1599-1622
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2284300
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284300
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# input file: MREE_A_2284302_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Haojing Guo
Author-X-Name-First: Haojing
Author-X-Name-Last: Guo
Author-Name: Siyuan Tang
Author-X-Name-First: Siyuan
Author-X-Name-Last: Tang
Author-Name: Zhe Wei
Author-X-Name-First: Zhe
Author-X-Name-Last: Wei
Title: The Information Role of Investors’ Site Visits in Management Forecasts
Abstract: 
 Prior research mainly focuses on how investors acquire private information through corporate site visits. Rarely evidence shows whether firms can obtain external information from investors’ site visits. We hypothesize and find that investors’ site visits are positively associated with management forecast qualities (i.e. accuracy and precision). This association is stronger when investors have an external information advantage or more information demand. We also find that improving management forecasts of investors’ site visits is more pronounced when firms have better governance. Our study highlights the information role of investors’ site visits which can further benefit firms’ operations and support recent governors’ advice to maintain investor related activities better.
Journal: Emerging Markets Finance and Trade
Pages: 1762-1794
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2284302
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284302
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# input file: MREE_A_2291153_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xun Han
Author-X-Name-First: Xun
Author-X-Name-Last: Han
Author-Name: Jiaxue Qiao
Author-X-Name-First: Jiaxue
Author-X-Name-Last: Qiao
Author-Name: Lingfeng Meng
Author-X-Name-First: Lingfeng
Author-X-Name-Last: Meng
Author-Name: Sara Hsu
Author-X-Name-First: Sara
Author-X-Name-Last: Hsu
Title: Central Bank Communication and Leverage Differentiation of Non-Financial Enterprises
Abstract: 
 As an expectation management policy, central bank communication can affect corporate market expectations, thus effectively guiding corporate investment and financing behavior. Based on the quarterly data of non-financial listed enterprises from 2007 to 2020, this paper analyzes the relationship between central bank communication and non-financial corporate leverage differentiation. The results show that central bank communication can reduce corporate leverage differentiation. The increase in the degree of bank credit discrimination can further amplify the inhibitory effect of central bank loose communication on the leverage differentiation of non-financial enterprises. The mechanism analysis shows that central bank communication can affect the leverage differentiation of non-financial enterprises by reducing financial mismatches, stabilizing the market expectation mechanism, and reducing managers’ myopia. The results of the extended analysis show that the central bank’s loose communication can inhibit the degree of leverage differentiation between zombie firms and non-zombie firms, and improve the dynamic adjustment speed of corporate capital structure.
Journal: Emerging Markets Finance and Trade
Pages: 1623-1642
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2291153
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2291153
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# input file: MREE_A_2287492_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Liuyang Ren
Author-X-Name-First: Liuyang
Author-X-Name-Last: Ren
Author-Name: Xi Zhong
Author-X-Name-First: Xi
Author-X-Name-Last: Zhong
Title: Trick or Treat? The Effect of CEO Relative Pay on Corporate Social Irresponsibility
Abstract: 
 CEO pay structure critically impacts a wide range of strategic choices, including corporate social irresponsibility (CSI), a pervasive and seriously damaging behavior. While the impact of CEO pay structure on CSI has received attention and focus, existing studies need to pay more attention to the potential role of CEO relative pay structure. Based on the behavioral agency theory, this study examines the impact of CEO underpayment and overpayment on CSI. Using panel data on listed companies in China from 2008 to 2019, we find that relative CEO underpayment is significantly positively correlated with CSI, and relative CEO overpayment is significantly negatively correlated with CSI. In addition, we find that industry-level managerial discretion strengthens the positive (negative) relationship between relative CEO underpayment (overpayment) and CSI.
Journal: Emerging Markets Finance and Trade
Pages: 1795-1814
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2287492
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2287492
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:8:p:1795-1814



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# input file: MREE_A_2290542_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sibei Yan
Author-X-Name-First: Sibei
Author-X-Name-Last: Yan
Author-Name: Iny Hwang
Author-X-Name-First: Iny
Author-X-Name-Last: Hwang
Author-Name: Hyung-Rok Jung
Author-X-Name-First: Hyung-Rok
Author-X-Name-Last: Jung
Author-Name: Taejin Jung
Author-X-Name-First: Taejin
Author-X-Name-Last: Jung
Title: Abnormal Disclosure Tone in MD&A and Analysts’ Earnings Forecast: Evidence from China
Abstract: 
 This study examines the association between abnormal disclosure tone in the Management Discussion and Analysis (MD&A) section of annual reports and analysts’ forecasting behavior. Using analysts’ forecast data of Chinese listed firms from 2008 to 2020, we find that analysts can discern abnormal tone in managers’ disclosures, leading to a downward revision of earnings estimates and an enhancement of forecast accuracy. Moreover, we observe that abnormal tone in the MD&A section attracts analysts’ attention as they navigate the challenges posed by tone management and diminished information transparency. Collectively, this paper enhances our understanding of analysts’ forecasting behavior concerning the extent of tone management observed in MD&A disclosures within emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 1858-1874
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2290542
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2290542
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:8:p:1858-1874



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# input file: MREE_A_2256944_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hsiao-Fen Hsiao
Author-X-Name-First: Hsiao-Fen
Author-X-Name-Last: Hsiao
Author-Name: Tingyong Zhong
Author-X-Name-First: Tingyong
Author-X-Name-Last: Zhong
Author-Name: Tzu-Ching Weng
Author-X-Name-First: Tzu-Ching
Author-X-Name-Last: Weng
Author-Name: Chia Ying Lu
Author-X-Name-First: Chia Ying
Author-X-Name-Last: Lu
Title: Managerial Power and Investment Inefficiency: Reconciling Theory and Evidence
Abstract: 
 The extant corporate investment literature documented that agency conflicts of managers from making optimal investment decisions. This study aims to investigate the influence of managerial power on the efficiency of investment strategy. The analysis, we obtained an unbalanced panel comprising 35 conglomerates (206 companies), conducted in the period 2005 to 2014. The empirical find that managers in good subsidiaries tend to be more conservative and are apt to underinvest. However, in bad subsidiaries, managers having stronger power are more likely to overinvest. Due to the contingency perspective of corporation targets in good subsidiaries, managers may increase their investments to expand firm size and control more resources. On the contrary, low-power managers tend to underinvest their businesses since they lack complete decision-making power.
Journal: Emerging Markets Finance and Trade
Pages: 1732-1747
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2256944
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2256944
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:8:p:1732-1747



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# input file: MREE_A_2290538_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Shao-Chieh Hsueh
Author-X-Name-First: Shao-Chieh
Author-X-Name-Last: Hsueh
Author-Name: Shuying Jiang
Author-X-Name-First: Shuying
Author-X-Name-Last: Jiang
Author-Name: Shuoxun Zhang
Author-X-Name-First: Shuoxun
Author-X-Name-Last: Zhang
Title: Digital Finance and Settlement for Long Term: Evidence from Rural-Urban Migrants
Abstract: 
 This paper studies whether digital financial development encourages rural-urban migrants to settle down for a longer period of time. Using data from the China Migrants Dynamic Survey (CMDS) for periods 2014–2018, our results support an overall facilitating effect in the decision to stay for the long-term from a digital finance perspective. The effect of digital finance is more pronounced for migrants who are internet users, above high-school education, younger than 35 years old, with urban hukou, or intra-provincial migrants. Moreover, the availability of the formal finance supports long-term settlement for migrants who are older than 35, inter-provincial migrants, or self-employed.
Journal: Emerging Markets Finance and Trade
Pages: 1841-1857
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2290538
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2290538
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# input file: MREE_A_2284322_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Wenli Huang
Author-X-Name-First: Wenli
Author-X-Name-Last: Huang
Author-Name: Nan Zhang
Author-X-Name-First: Nan
Author-X-Name-Last: Zhang
Author-Name: Yong Chen
Author-X-Name-First: Yong
Author-X-Name-Last: Chen
Author-Name: Yueling Xu
Author-X-Name-First: Yueling
Author-X-Name-Last: Xu
Title: Research on the Efficacy of the iVIX Index Based on VIX Pricing
Abstract: 
 Amidst rising trading volumes, there’s evident demand for volatility trading. This study assists Chinese stakeholders in understanding the iVIX’s functionality, offering insights for investments and policy-making. Building on the VIX option pricing model, the research introduces a novel approach: the mean-reverting logarithmic stochastic volatility Hawkes jump model (MLSVHJ). Using VIX call option data from March 9, 2020, to March 18, 2021, the MLSVHJ model outperformed four others during 2020’s three US market crashes. Additionally, this model’s parameters aligned well with theoretical expectations. However, the positive correlation observed between the iVIX and the Shanghai Composite Index prompts a reevaluation of applying global VIX standards directly to China.
Journal: Emerging Markets Finance and Trade
Pages: 1670-1690
Issue: 8
Volume: 60
Year: 2024
Month: 06
X-DOI: 10.1080/1540496X.2023.2284322
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2284322
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# input file: MREE_A_2293971_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ying Hao
Author-X-Name-First: Ying
Author-X-Name-Last: Hao
Author-Name: Zhe Lu
Author-X-Name-First: Zhe
Author-X-Name-Last: Lu
Author-Name: Chong Ning
Author-X-Name-First: Chong
Author-X-Name-Last: Ning
Author-Name: Jiahuan Li
Author-X-Name-First: Jiahuan
Author-X-Name-Last: Li
Author-Name: Zi Wei
Author-X-Name-First: Zi
Author-X-Name-Last: Wei
Title: Do CEOs Realize the Negative Impact of Air Pollution? Evidence from Voluntary CEO Turnovers
Abstract: 
 We examine whether air pollution surrounding corporate headquarters affects CEO turnover. We assume that CEOs tend to have higher quality of life requirements and are more sensitive to air pollution. Using the data of A-share listed companies in China from 2000 to 2019, we empirically find that compared to CEOs experiencing clean air, those exposed to air pollution are more likely to depart and relocate to areas with better air quality. Additionally, these results are more pronounced when CEOs come from relatively less polluted overseas regions and when firms are located in regions with a higher degree of economic development, and they operate in highly competitive industries. These findings expand upon the factors that influence CEO turnover and provide empirical evidence that regional air pollution will bring about the flow of human capital, or even the loss of talents.
Journal: Emerging Markets Finance and Trade
Pages: 1956-1970
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2293971
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2293971
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:1956-1970



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# input file: MREE_A_2298259_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Shao-Chieh Hsueh
Author-X-Name-First: Shao-Chieh
Author-X-Name-Last: Hsueh
Author-Name: Shuoxun Zhang
Author-X-Name-First: Shuoxun
Author-X-Name-Last: Zhang
Title: Distance and Financial Connection: Dynamics in Private Firms’ Bank Loan Availability
Abstract: 
 This study investigates the impact of borrower-lender distance on credit availability for private firms. Utilizing an extensive loan record history, we categorize loans into initial and subsequent borrowings. Our analysis reveals a consistent trend: loan size diminishes with increasing distance, even after accounting for Fintech effects. A noteworthy finding is the divergent role of financial connections. During initial borrowings, they mitigate the adverse effects of distance, while in subsequent borrowings, they become a positive signal to lenders, particularly post-soft information insights. These insights highlight intricate dynamics in credit availability, emphasizing the evolving roles of technology and financial connections in shaping lending relationships for private firms.
Journal: Emerging Markets Finance and Trade
Pages: 2026-2047
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2298259
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2298259
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:2026-2047



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# input file: MREE_A_2298255_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Yinfan Chen
Author-X-Name-First: Yinfan
Author-X-Name-Last: Chen
Author-Name: Yeni Huang
Author-X-Name-First: Yeni
Author-X-Name-Last: Huang
Author-Name: Mengyao Wen
Author-X-Name-First: Mengyao
Author-X-Name-Last: Wen
Title: Accounts Receivable Reform and Financing Constraints: Evidence from China’s A-Share Market
Abstract: 
 The commercial bill, as a regulated commercial credit mode, offers better creditor protection, more financing channels, and stronger bargaining power in financing. This paper creatively constructs bills receivable index in the micro level of enterprises and examines the potential impact of billing of accounts receivable on the financing constraints faced by enterprises. This paper also explores the mechanism that causes the impact and check whether the establishment of the Shanghai Commercial Paper Exchange Corporation (SHCPE) has had positive effects. The results show that billing can alleviate the financing constraints of enterprises due to its benefits offered by the commercial bill. Furthermore, the establishment of the Shanghai Commercial Paper Exchange Corporation (SHCPE) can lead to the development of a standardized and transparent bill market, further alleviating the financing constraints. The study also reveals that billing of accounts receivable affects financing constraints mainly by enhancing the quality of debt-like assets and reducing information asymmetry between enterprises and the outside world. For enterprises with longer maturity structure, the effect of billing on the alleviation of financing constraints is more significant.
Journal: Emerging Markets Finance and Trade
Pages: 2000-2025
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2298255
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2298255
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:2000-2025



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# input file: MREE_A_2298251_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Idris A. Adediran
Author-X-Name-First: Idris A.
Author-X-Name-Last: Adediran
Author-Name: Phebian N. Bewaji
Author-X-Name-First: Phebian N.
Author-X-Name-Last: Bewaji
Author-Name: Olajide O. Oyadeyi
Author-X-Name-First: Olajide O.
Author-X-Name-Last: Oyadeyi
Title: Climate Risk and Stock Markets: Implications for Market Efficiency and Return Predictability
Abstract: 
 In this study, we set out to construct a daily frequency climate risk index with the aim to explore the impacts of climate risk on the stock markets of advanced and emerging countries and green stocks. We adopt an approach similar to the Sharpe ratio to demonstrate the pricing of climate risk into stocks and therefore reexamine the (in)efficiency of these markets. We specify an econometric model to evaluate the predictive content of the climate risk index for stock returns. We find compelling evidence of market efficiency when climate risk is priced into the stocks and market inefficiency otherwise. Results from the predictability analyses indicate that about 85% of advanced stock markets, 17% of emerging stock markets, and 100% of green stocks have the capacity to protect investors against climate risk. Forecast evaluations reveal that the climate risk index is a good predictor of the stock returns only after controlling for the macroeconomic environment. We explore several robustness checks and highlight both investment and policy implications.
Journal: Emerging Markets Finance and Trade
Pages: 1908-1928
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2298251
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2298251
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:1908-1928



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# input file: MREE_A_2300630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Hao Liu
Author-X-Name-First: Hao
Author-X-Name-Last: Liu
Author-Name: Xue Tang
Author-X-Name-First: Xue
Author-X-Name-Last: Tang
Author-Name: LiYuan Liu
Author-X-Name-First: LiYuan
Author-X-Name-Last: Liu
Author-Name: Hui Lai
Author-X-Name-First: Hui
Author-X-Name-Last: Lai
Title: Foreign Institutional Investors and Corporate Green Innovation: Evidence from an Emerging Economy
Abstract: 
 This study investigates the impact of foreign institutional investors (FIIs) on corporate green innovation. We manually collected data on foreign institutional ownership (FIO) from 34 international jurisdictions between 2009 and 2020. We find that FIO has a positive, robust, and causal effect on the green innovation practices of Chinese listed companies. Moreover, our heterogeneity analyses indicate that this positive effect is more pronounced for FIIs originating from jurisdictions exhibiting greater environmental consciousness of and advancements in green technology as well as for those FIIs committed to the United Nations—supported Principles of Responsible Investment. Furthermore, we provide evidence suggesting that environmental information disclosure and monitoring serve as potential mechanisms through which FIIs catalyze corporate green innovation.
Journal: Emerging Markets Finance and Trade
Pages: 2096-2109
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2300630
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2300630
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# input file: MREE_A_2295001_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Zhujia Yin
Author-X-Name-First: Zhujia
Author-X-Name-Last: Yin
Author-Name: Yijie Sheng
Author-X-Name-First: Yijie
Author-X-Name-Last: Sheng
Author-Name: Xinheng Liu
Author-X-Name-First: Xinheng
Author-X-Name-Last: Liu
Author-Name: Xiaoguang Yang
Author-X-Name-First: Xiaoguang
Author-X-Name-Last: Yang
Title: Annual Report Readability and Opportunistic Insider Selling—Evidence from China
Abstract: 
 Using a panel dataset of Chinese A-share listed firms during 2007–2021, we specify a fixed-effects model to examine whether and how annual report readability affects opportunistic insider selling. Our empirical findings show that lower readability of annual reports induces insiders to make more opportunistic sales. Further analysis reveals that stock overvaluation is the channel through which the readability of annual reports affects opportunistic insider sales. In addition, this effect is more pronounced among firms with less analyst coverage, higher retail concentration, and non-SOEs.
Journal: Emerging Markets Finance and Trade
Pages: 1929-1941
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2295001
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2295001
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:1929-1941



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# input file: MREE_A_2292198_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Xindong Zhang
Author-X-Name-First: Xindong
Author-X-Name-Last: Zhang
Author-Name: Jie Tian
Author-X-Name-First: Jie
Author-X-Name-Last: Tian
Author-Name: Yanna Lyu
Author-X-Name-First: Yanna
Author-X-Name-Last: Lyu
Author-Name: Yanhong Gong
Author-X-Name-First: Yanhong
Author-X-Name-Last: Gong
Title: Technological Diversity in M&A Network and High-Quality Development of Enterprises
Abstract: 
 This study breaks through the homogeneity of mergers and acquisitions (M&A) and the dyadic relationship between the acquirer and the target firm. We consider the network content of technological diversity that reflects both acquirers–target firms and target firms–target firms. The study empirically explores the impact and mechanism of technological diversity in M&A network on the high-quality development of enterprises (HQDE). Our study reveals that technological diversity in M&A network has an inverted U-shaped effect on HQDE. Mechanism analysis shows that the technological diversity in M&A network affects HQDE through both the quantity and quality of technological innovation. The findings provide novel insights to enable acquirers to select appropriate target firms and overcome technological innovation dilemmas, thus advancing toward high-quality development.
Journal: Emerging Markets Finance and Trade
Pages: 1875-1889
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2292198
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2292198
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:1875-1889



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# input file: MREE_A_2296925_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Wei Mao
Author-X-Name-First: Wei
Author-X-Name-Last: Mao
Author-Name: Kai Zhao
Author-X-Name-First: Kai
Author-X-Name-Last: Zhao
Author-Name: Tianyu Zhang
Author-X-Name-First: Tianyu
Author-X-Name-Last: Zhang
Author-Name: Jianwei Tan
Author-X-Name-First: Jianwei
Author-X-Name-Last: Tan
Title: Sino-US Strategic Competition and Cross-Border M&As by Chinese Enterprises: Evidence from Public Opinion Big Data
Abstract: 
 This study investigates the effect of bilateral political relations on cross-border M&As in the context of Sino-US strategic competition. Based on 996 cross-border M&A cases of Chinese enterprises over the period 2001–2020, our econometric analysis reveals that, in general, Sino-US strategic competition reduces the completion rate of Chinese enterprises’ cross-border M&As. This effect is stronger for M&As in strategic industries and targets owned by government, suggesting direct government intervention. Moreover, M&As with higher investment irreversibility or in B2C industries are more exposed to this negative impact, suggesting investor and consumer caution with declining political affinity. However, in the long run, such a competition contrarily contributes to the improvement of the performance of Chinese enterprises. These findings challenge policymakers and scholars with a new emerging M&A theoretical framework regarding institutional uncertainty and risk.
Journal: Emerging Markets Finance and Trade
Pages: 1942-1955
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2296925
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2296925
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:1942-1955



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# input file: MREE_A_2298266_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chien-Chiang Lee
Author-X-Name-First: Chien-Chiang
Author-X-Name-Last: Lee
Author-Name: Ting-Hsuan Chen
Author-X-Name-First: Ting-Hsuan
Author-X-Name-Last: Chen
Author-Name: Meng-Feng Yen
Author-X-Name-First: Meng-Feng
Author-X-Name-Last: Yen
Title: The Dissemination of Politically-Motivated False Information and Its Influence on the Stock Market
Abstract: 
 The rapid growth of online media and communities has increased and accelerated the spread of unverified and false information (“fake news”), with significant political, economic, and social impacts, leading the European Commission to promulgate a “Code of Practice on Disinformation.” Identifying and countering such false information is time- and labor-intensive, and could benefit from the development of tools that automatically identify and flag such information. This study explores the use of deep learning techniques to detect fake news, using decreases in the incidence of emotional vocabulary and subjectivity to enhance detection accuracy, and examines potential correlations between the emotional sentiment of news content and the movement of stock price indexes. Empirical results show that deep learning techniques can be used to effectively detect fake news, with multiple trainings effectively improving detection accuracy and reducing the loss rate. In addition, increased objectivity and the use of fewer words with high emotional sentiment increases news credibility. Finally, news sentiment was found to be correlated with the movement of three of five stock indexes examined.
Journal: Emerging Markets Finance and Trade
Pages: 2048-2067
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2298266
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2298266
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:2048-2067



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# input file: MREE_A_2297925_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Feng Guo
Author-X-Name-First: Feng
Author-X-Name-Last: Guo
Author-Name: Chen Yang
Author-X-Name-First: Chen
Author-X-Name-Last: Yang
Author-Name: Shiyu Feng
Author-X-Name-First: Shiyu
Author-X-Name-Last: Feng
Title: The Impact of Digital Economy on Green Technology Innovation and Its Mechanism: Evidence from 274 Cities in China
Abstract: 
 The digital economy is gradually emerging as a new driving force and engine for high-quality economic development. In the context of reaching carbon peak and carbon neutrality, can the digital economy empower the development of urban green technology innovation? Based on the panel data of 274 cities in China from 2011 to 2019, this paper measures the development level of digital economy at the city level and employs the two-way fixed effect model to empirically analyze the impact of digital economy on urban green technology innovation. The results indicate that: (1) Digital economy development exert a significant positive impact on urban green technology innovation. This conclusion still holds after a series of robustness tests. (2) Digital economy enhances urban green technology innovation by optimizing human capital structure, enhancing the level of financial and credit investment, and strengthening public environmental concern. (3) Heterogeneity analyses show that the digital economy has a greater positive effect on green technology innovation in the eastern region and non-resource cities. The higher the level of intellectual property protection and the better the development of the factor market, and the lower the intensity of environmental regulation, the greater the positive effect of the digital economy on urban green technology innovation. These findings are not only of great practical significance for accelerating the development of green technology innovation in China, but also serve as a reference for other developing countries to utilize the digital economy to empower the development of green technology innovation.
Journal: Emerging Markets Finance and Trade
Pages: 1971-1985
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2297925
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2297925
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# input file: MREE_A_2298253_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jing Liu
Author-X-Name-First: Jing
Author-X-Name-Last: Liu
Title: The Effect of Local Internet Development on Employees’ Salary: Evidence from China
Abstract: 
 Using empirical data from China, this study examines the impact of local internet development on non-executive employees’ salaries. Research findings show that internet development can increase employees’ salary and pay-performance sensitivity. This effect can be more significant in non-state-owned enterprises (Non-SOEs for short), firms faced with fierce competition, and firms paid little attention to employee protection. Mechanism analysis finds that the positive impact of internet development on increasing total factor productivity and reducing information asymmetry can partly interpret the effect. From the perspective of employees’ salaries, this study sheds light on the impact of technological progress on micro-production relations.
Journal: Emerging Markets Finance and Trade
Pages: 1986-1999
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2298253
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2298253
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Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:1986-1999



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# input file: MREE_A_2298269_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jiao Hong
Author-X-Name-First: Jiao
Author-X-Name-Last: Hong
Author-Name: Hu Xiong
Author-X-Name-First: Hu
Author-X-Name-Last: Xiong
Author-Name: Zhiyuan Zhou
Author-X-Name-First: Zhiyuan
Author-X-Name-Last: Zhou
Title: Does Supply Chain Network Centrality Enhance or Impede Firm Innovation: Evidence from China
Abstract: 
 This study mainly investigates the effects of supply chain network centrality on firm innovation output. We uncover that supply chain network centrality has a negative impact on firm innovation. The negative impact of network centrality on corporate innovation quantity is stronger when economic policy uncertainty is higher and the firm belongs to high-tech industries. Similarly, the detrimental effect of network centrality on corporate innovation quality is magnified when the level of marketization is lower and the firm belongs to high-tech industries. Firms with high supply chain network centrality are associated with more severe short-sightedness, higher transaction costs, and greater operational risks, and thus inhibits firm innovation output.
Journal: Emerging Markets Finance and Trade
Pages: 2068-2080
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2298269
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2298269
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:2068-2080



Template-Type: ReDIF-Article 1.0
# input file: MREE_A_2298278_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Guangming Gong
Author-X-Name-First: Guangming
Author-X-Name-Last: Gong
Author-Name: Ni Yang
Author-X-Name-First: Ni
Author-X-Name-Last: Yang
Author-Name: Ming Yang
Author-X-Name-First: Ming
Author-X-Name-Last: Yang
Author-Name: Liang Xiao
Author-X-Name-First: Liang
Author-X-Name-Last: Xiao
Title: Do Government-Based Customers Promote Green Innovation? Evidence from China
Abstract: 
 This study investigates whether and how government-based customers affect corporate green innovation based on institutional theory and the resourced-based view. Using data from Chinese listed companies and hand-collected government-based customers among firms’ top five customers by distinguishing ultimate property rights, we find that government-based customers can promote upstream firms’ green innovation. This result is robust after conducting a series of robustness checks and controlling for endogeneity issues. Mechanism tests show that enhancing environmental awareness and providing resource support are two mechanisms through which government-based customers affect corporate green innovation. Further tests indicate that non-state-owned enterprises, heavily polluting industries, and fierce market competition can strengthen the positive impact of government-based customers on corporate green innovation. Overall, these findings suggest that government-based customers are a contributing factor for corporate green innovation, which deepens our understanding of the relationship between the government and enterprises in emerging markets.
Journal: Emerging Markets Finance and Trade
Pages: 2081-2095
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2298278
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2298278
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:2081-2095



Template-Type: ReDIF-Article 1.0
# input file: MREE_A_2293973_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sedjro Aaron Alovokpinhou
Author-X-Name-First: Sedjro Aaron
Author-X-Name-Last: Alovokpinhou
Author-Name: Pholile Dladla
Author-X-Name-First: Pholile
Author-X-Name-Last: Dladla
Author-Name: Christopher Malikane
Author-X-Name-First: Christopher
Author-X-Name-Last: Malikane
Title: International Evidence on the Interest Rate Effect in Dynamic IS Curves
Abstract: 
 A number of studies have found little evidence of the effect of the interest rate in dynamic IS curves. We show that this is due to de-trending. The interest rate has a weak effect on the output gap even when controlling for wealth effects. However, when the IS curve is formulated in an error-correction form, we find a significant interest rate effect. Furthermore, we find that the nominal interest rate explains output dynamics better. Lastly, there are significant effects of long-term interest rates in emerging markets, which may justify the use of yield curve control policies in these economies.
Journal: Emerging Markets Finance and Trade
Pages: 1890-1907
Issue: 9
Volume: 60
Year: 2024
Month: 07
X-DOI: 10.1080/1540496X.2023.2293973
File-URL: http://hdl.handle.net/10.1080/1540496X.2023.2293973
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:1890-1907