NO MARGINAL ARBITRAGE OF THE SECOND KIND FOR HIGH PRODUCTION REGIMES IN DISCRETE TIME PRODUCTION–INVESTMENT MODELS WITH PROPORTIONAL TRANSACTION COSTS

We consider a class of production–investment models in discrete time with proportional transaction costs. For linear production functions, we study a natural extension of the no‐arbitrage of the second kind condition introduced by Rásonyi. We show that this condition implies the closedness of the set of attainable claims and is equivalent to the existence of a strictly consistent price system under which the evaluation of future production profits is strictly negative. This allows us to discuss the closedness of the set of terminal wealth in models with nonlinear production, functions which may admit arbitrages of the second kind for low production regimes but not marginally for high production regimes.     

Using Signals to Initiate Importer-Exporter Relationships: Evidence from Vietnamese Importers

ABSTRACT

Purpose: Realizing the existence of information asymmetry in export markets and the use of signals to distinguish high-qualified sellers from low-qualified sellers, this study investigates the effects of signal consistency and signal clarity on exporter credibility, and subsequently, importer relationship intention.

Methodology: Using a survey data set collected from a systematic sample of 418 Vietnamese importers, the authors tested a model hypothesizing the impact of signal consistency and signal clarity on exporter credibility, and subsequently, on importer relationship intention.

Findings: The authors found that signal consistency and clarity have a positive impact on exporter credibility. Signal consistency also enhances the level of signal clarity. They also found that exporter credibility underlies importer relationship intension.

Research Implications: Under the condition of information asymmetry, importers face difficulties in identifying and evaluating the best supplier among available suppliers in order to make the most appropriate selection decision. The findings confirm that signal clarity and consistency can help exporters to overcome such problems. Exporters should ensure that all signals sent to importers are clear and consistent over time to encourage importers to build long-term business relationships with them.

Contributions: The findings of this study add to the literature on signaling in exporter–importer relationships and can serve as an initiation for further research in the area in transitioning economies.     

The impact of foreign investors on the risk-taking of Japanese firms

Consistent with a bank-centered governance system, Japanese firms exhibit an exceptionally low level of performance variability. The increased involvement of foreign investors motivated by shareholder value is thus likely to have triggered a major shift in their risk-taking behavior. My results confirm this assumption as all standard measures of performance volatility appear to have significantly increased with the level of foreign ownership. Controlling for endogeneity provides higher point estimates supporting anecdotal evidence that foreign investors have targeted firms taking unusually low risk. Overall, the evidence highlights the considerable impact that this category of investors can have on a firm’s decisions and, by consequence, on its performance.     

The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam

This study investigates the effects of human capital, social capital and their interaction on the performance of 1,398 Vietnamese new-born firms. Operating profit is used as the measure of success. Human capital is captured by individual-level professional education, start-up experience, and learning. Whereas the first two dimensions of human capital are measured with traditional indicators, we define learning as the ability to accumulate knowledge to conduct innovation activities (new product introduction, product innovation and process innovation). Social capital is measured as benefits obtained from personal strong-tie and weak-tie networks. Key findings are threefold: (i) human capital strongly predicts firm success, with learning exhibiting a statistically significant positive association with operating profit, (ii) benefits from weak ties outweigh those from strong ties, (iii) interaction of human capital and social capital displays a statistically significant positive effect on new-firm performance.     

Intermediate levels of property rights and the emerging housing market in Ho Chi Minh City,Vietnam

Vietnam introduced a Policy of Renovation (‘Doi Moi’ Policy) to restructure the economy in 1986. Under this policy, the Land Use Right Certificate was introduced as a form of tenure for agricultural land and urban land, according to the Land Laws of 1987 and 1993, respectively. However, by 2001, most properties and/or land in Vietnam still did not have a legal title. Although Vietnam's land reforms in the 1990s provided some of the weakest private rights among the transition countries, big cities like Ho Chi Minh City are presently homes to thriving housing markets. Transactions of ‘property without a physical entity and legal title’ in the real estate market show how property ownership can be formed in order to operate within different institutional contexts. This paper highlights that ‘intermediate levels of property rights’ are the driving forces behind the thriving housing market in Ho Chi Minh City.     

Characterization of Normal Distribution Related to Two Samples Based on Regression

Characterization of normal distribution related to two samples based on second conditional moments has been obtained. This characterization has been transformed to a characterization based on the UMVU estimators of the density function. These results are generalized to k samples from normal distributions. Finally applications of these characterization results to goodness-of-fit test are discussed.     

Investigation of factors affecting the diffusion of mobile telephone services: An empirical analysis for Vietnam

This paper analyzes the diffusion of mobile telecommunications services in Vietnam and examines how telecommunications regulation and potential substitute/complement services affect the growth of the number of mobile telephone subscribers. Using a logistic diffusion model, it is found that fixed telephone services are a complement while data services have a negative relation to mobile telephone services in Vietnam. As for regulation, the policy of introducing competition has been found to be the most effective in influencing the adoption of mobile services. Another important result is that the estimated potential market is roughly 76% of the total population. The findings suggest that suitable regulation that guarantees competition in the mobile telecommunications market in a developing country such as Vietnam is one of the most important factors for a positive diffusion process.     

Affluent mature consumers: Preference and patronisation for financial services

Mature consumers have long been recognised as an important segment of market that no marketers of financial-service providers could ignore. The segment itself, however, is not homogeneous. Our study further segments the market basing on income and contrasts the differences between upscale mature consumers and lower scale ones in terms of their preference and patronisation for financial services. The study based on two large-scale studies designed to generate information that would fill gaps in our existing knowledge about upscale older consumers. Implications are discussed for marketers of financial services to fine-tune their differentiation strategies.     

越南“入世”之大家谈

经过多年艰难的谈判，越南终于在去年11月正式加入了WTO。这一成就将把越南带进一个以法律为基础的贸易系统，并给来自世界各地的企业提供新的商机。