Prospects for ASEAN-China Free Trade Area： A Qualitative and Quantitative Analysis

The current global financial and economic crisis is giving new life to initiatives that promote closer economic integration among East Asian countries. A significant example is the ASEAN- China Free Trade Area （.4 CFTA）, which is set to come into effect around 2010..4CFTA aims to boost trade between two economies that are partners as well as competitors： ASEAN and China. In the present paper, we use insights from customs union theory in a qualitative analysis considering whether,4CFTA would benefit both sides. We also apply a computable general equilibrium model to perform a quantitative analysis of the same issue. Both our qualitative and quantitative analyses provide grounds for guarded optimism regarding A CFTA ＇s prospects as a vehicle for strengthening the economic partnership between ASEAN and China.     

Why Narrative Ads Work: An Integrated Process Explanation

We propose and test an integrated process explanation for why narrative ads in general are more persuasive than non-narrative ads. A study involving a random sample of 25 narrative and 25 non-narrative TV commercials and 484 nonstudent research participants confirmed that a set of four process variables—emotive response, ad hedonic value, ad credibility, and perceived goal facilitation—collectively mediate the positive effects of narrative (versus non-narrative) ads on attitude toward the ad (A_ad) and brand attitudes. The results also supported moderated mediation processes, with type of featured product and product involvement as important moderators. Implications for theory as well as practice are discussed.     

Dividends and Market Signalling: an Analysis of Corporate Insider Trading

This study tests the multiple‐signal theory of dividends of John and Lang (1991) in the context of a European market. Our evidence shows that investors are more sensitive to insider trading signals than to signalled changes in existing dividends. In effect, the insider sales signal is universally understood as bad news. After controlling for the quality of a firm's investment opportunities, investors are found to penalise dividend outflows by mature firms that exhibit more informed insider sales activity. Finally, we offer an innovative exploration of the role of earnings announcements in market reaction to the dividend signal.     

Determining the number of factors after stationary univariate transformations

A very common practice when extracting factors from non-stationary multivariate time series is to differentiate each variable in the system. As a consequence, the ratio between variances and the dynamic dependence of the common and idiosyncratic differentiated components may change with respect to the original components. In this paper, we analyze the effects of these changes on the finite sample properties of several procedures to determine the number of factors. In particular, we consider the information criteria of Bai and Ng (Econometrica 70(1):191–221, 2002), the edge distribution of Onatski (Rev Econ Stat 92(4):1004–1016, 2010) and the ratios of eigenvalues proposed by Ahn and Horenstein (Econometrica 81(3):1203–1227, 2013). The performance of these procedures when implemented to differentiated variables depends on both the ratios between variances and dependencies of the differentiated factor and idiosyncratic noises. Furthermore, we also analyze the role of the number of factors in the original non-stationary system as well as of its temporal and cross-sectional dimensions. Finally, we implement the different procedures to determine the number of common factors in a system of inflation rates in 15 euro area countries.     

Food consumption,lifestyle patterns,and body mass index of a group of white South African students

There is worldwide concern that higher education students are increasingly engaging in unhealthy eating and lifestyle practices. A total of 488 white students participated in a study aimed at investigating the current food consumption and related lifestyle patterns of students at a South African residential university. The respondents’ self‐reported weight and height was used to calculate their body mass index (BMI). Closed and open‐ended questions measured aspects of the respondents’ usual eating patterns and lifestyles. The meal patterns and composition confirmed Western‐orientated food practices, as the majority consumed three meals a day, with in‐between meal snacking, and a different meal pattern over weekends. Respondents’ food intake was further characterized by a low intake of fruit, vegetables, and dairy products and frequent consumption of foods high in fat, sugar, and sodium. Although the majority (66.8%) of the study group were classified as normal weight according to their BMI, when comparing males and females, more males than females were overweight and obese. Only 54% of the males had a normal weight compared to 82% of the females. There was, however, no statistically significant difference (p = 0.149) between how males and females in the different BMI groups felt about their weight. The study also explored the relationships between the respondents’ BMI, gender, food consumption patterns, and type of residence. The features of the food consumption patterns were depicted according to whether breakfast was eaten or not; snacking activity between meals; the consumption of ready‐prepared convenience meals, fast foods; home‐cooked meals; and eating out. There were no statistical significant differences between the BMI categories of males and females regarding their habit to eat breakfast or not; and to snack between meals either during the morning, in the afternoon or after supper. Similarly, no statistical significant differences were noted when relating the BMI categories of the gender groups to the frequency of consumption of ready‐prepared, convenience type meals, fast foods, and home‐cooked meals. However, a statistical significant difference (p‐value 0.006) was found between BMI categories per gender and general frequency of eating out. No statistical differences was noted between BMI categories, gender and place of residence irrespective of the type, whether the student lived with parents, independently in a flat or apartment, or a house with friends or a room, or in a university residence.     

Job Securityand Product Market Competition

In the present paper, we relate the extent of job security offered to incumbent managers to the extent of competition among firms in the product market, where the extent of job security is measured by the probability that an incumbent manager continues to be employed by his current firm and the extent of competition is measured by the degree of differentiation between competing brands. We demonstrate that when competition between firms intensifies and "on-the-job training" is relatively more conducive to reducing the variable costs of production, firms tend to offer reduced (increased) job security to incumbent managers, provided that the degree of differentiation between competing products is sufficiently large (small), respectively. If "on-the-job training" is relatively more conducive to reducing the fixed costs of production, however, the previous result is reversed.