An Investigation of the Informational Role of Short Interest in the Nasdaq Market

This paper examines the relationship between the level of short interest and stock returns in the Nasdaq market from June 1988 through December 1994. We find that heavily shorted firms experience significant negative abnormal returns ranging from −0.76 to −1.13 percent per month after controlling for the market, size, book–to–market, and momentum factors. These negative returns increase with the level of short interest, indicating that a higher level of short interest is a stronger bearish signal. We find that heavily shorted firms are more likely to be delisted compared to their size, book–to–market, and momentum matched control firms.     

Learning from Neighbours

When payoffs from different actions are unknown, agents use their own past experience as well as the experience of their neighbours to guide their decision making. In this paper, we develop a general framework to study the relationship between the structure of these neighbourhoods and the process of social learning.
We show that, in a connected society, local learning ensures that all agents obtain the same payoffs in the long run. Thus, if actions have different payoffs, then all agents choose the same action, and social conformism obtains. We develop conditions on the distribution of prior beliefs, the structure of neighbourhoods and the informativeness of actions under which this action is optimal. In particular, we identify a property of neighbourhood structures—local independence—which greatly facilitates social learning. Simulations of the model generate spatial and temporal patterns of adoption that are consistent with empirical work.     

China's one belt one road initiative: The impact of trade facilitation versus physical infrastructure on exports

The One Belt One Road (OBOR) project is perhaps China's most significant international relations initiative in recent times. It is based on openness, harmony, inclusivity, mutual benefit and market operations and aims to connect the economically vibrant East Asia and the developed Europe by land and by sea, and in the process, it brings growth and development to tens of countries along the modern Silk routes. In this paper, we compare the impact of the main initiatives of OBOR, namely enhancements in physical infrastructure and improvements in border administration, on the trade of countries that have signed on to this project, especially countries along the six economic corridors. We find overwhelming evidence that shows improvements in border administration has the greatest impact on exports of corridor countries. Although physical infrastructure is important for trade, the Chinese government should place equal attention to improvements in trade facilitation to ensure trade routes operate seamlessly across the various corridors.     

Selling to the urban Chinese in East Asia: Do CSR and value orientation matter?

Most multinationals have a presence in the East Asian region and target the urban Chinese population. In an effort to win over the loyalty of consumers, Corporate Social Responsibility (CSR) has been used increasingly as a marketing strategy. This paper explores how personal values influence the attitude and behavior towards CSR among Chinese consumers. By collecting data from three major East Asian cities — Hong Kong, Shanghai and Singapore, and employing factor, cluster, conjoint and correspondence analyses, the authors demonstrate that Confucian value orientation can be a powerful antecedent of CSR support.     

The persistence of knowledge‐based advantage: an empirical test for product performance and technological knowledge

Resource‐based theory maintains that intrinsic characteristics of resources and capabilities, such as their tacitness, complexity, and specificity, prevent imitation and thereby prolong exceptional performance. There is little direct evidence to verify these claims, yet a substantial literature encourages firms to formulate competitive strategies around resources with these attributes. Further, work outside the resource‐based tradition suggests that these attributes can slow innovation, and it is not clear when this effect outweighs the benefits of inimitability. This paper seeks to clarify whether and how the complexity, tacitness, and specificity of a firm's knowledge affect the persistence of its performance advantages. We find that the complexity and tacitness of technological knowledge are useful for defending a firm's major product improvements from imitation, but not for protecting its minor improvements. The design specificity of technological knowledge delayed imitation of minor improvements in this study. Copyright © 2002 John Wiley & Sons, Ltd.     

Malaysia – Trade Policy Review 2006

The Trade Policy Review (TPR) is an important document for small open economies like Malaysia. It provides an outsider perspective of its trade policies and implementation. In this paper we provide an update of the Malaysian economy emphasising the degree of competitiveness vis‐à‐vis other Asian counterparts. We also discuss the issue of regional and bilateral trading agreements involving Malaysia with a focus on the services sector. Finally, we briefly consider the issue of tariff protection – an issue raised by many commentators of the TPR.     

Exploring the factors of cluster linkages that influence innovation performance of firms in a cluster

Clusters being considered as the proponents of innovation, there is a reasonable consensus among researchers and policy-makers that they are the sources of innovation. Therefore, of late, both researchers and policy-makers have increasingly focused on demystifying the factors driving innovation among the firms in a cluster, especially in a high-tech cluster. At the surface level, researchers have identified that the dynamism through interactions of a firm with other firms and associated institutions is one of the key drivers of innovation in a firm residing in a cluster. However, the factors that constitute degree of cluster interactions of firms that determine their innovation levels have not been explored adequately. Bengaluru being one of the highly ranked global hubs of technological innovation in Asia, houses densely interconnected network of high-tech manufacturing firms. It is in the context of Bengaluru cluster that this paper discerned the factors constituting degree of cluster linkages of firms that differentiated the innovation performance among the firms in a cluster. It was found that the ability of a firm to integrate global value chain both vertically and horizontally through extra-cluster linkages determines the innovation performance of a firm in a cluster.