Transmission of Stock Returns and Volatility between the U.S. and Japan: Evidence from the Stock Index Futures Markets

In this paper, we examine the nature of transmission of stock returns and volatility between the U.S. and Japanese stock markets using futures prices on the S&P 500 and Nikkei 225 stock indexes. We use stock index futures prices to mitigate the stale quote problem found in the spot index prices and to obtain more robust results. By employing a two-step GARCH approach, we find that there are unidirectional contemporaneous return and volatility spillovers from the U.S. to Japan. Furthermore, the U.S.'s influence on Japan in returns is approximately four times as large as the other way around. Finally, our results show no significant lagged spillover effects in both returns and volatility from the Osaka market to the Chicago market, while a significant lagged volatility spillover is observed from the U.S. to Japan. This revised version was published online in August 2006 with corrections to the Cover Date.     

Distinct Flavor of Menglianggu

In 1960s,a movie named Red Sun became popular quickly throughout China,and itstheme song -Everyone Loves My Hometown(谁不说俺家乡好) - was also knownto all the Chinese people as one of the best.This movie tells the story that happened inMenglianggu(孟良崮).Talking about Menglianggu,Menglianggu Campaign is a topic which can't be avoided.     

For Mountain-Climbing Enthusiasts,Taishan Is a Must

For many mountain-climbing enthusiasts,Mount Taishan(泰山 tài shah) is a must. Previously called "Daishan Mountain",Mount Taishan is also known as "the Great Peak","the Great Mountain" and "the Eastern Mountain".It is a perfect combination of culture and natural landscape,and can also be considered as the symbol of the Chinese nation.     

Are Stars’ Opinions Worth More? The Relation Between Analyst Reputation and Recommendation Values

Using 1994–2009 data, we find that All-American (AA) analysts’ buy and sell portfolio alphas significantly exceed those of non-AAs by up to 0.6 % per month after risk-adjustments for investors with advance access to analyst recommendations. For investors without such access, top-rank AAs still earn significantly higher (by 0.3 %) monthly alphas in buy recommendations than others. AAs’ superior performance exists before (as well as after) they are elected, is not explained by market overreactions to stars, and is not significantly eroded after Reg-FD. Election to top-AA ranks predicts future performance in buy recommendations above and beyond other previously observable analyst characteristics. Institutional investors actively evaluate analysts and update the AA roster accordingly. Collectively, these results suggest that skill differences among analysts exist and AA election reflects institutional investors’ ability to evaluate and benefit from elected analysts’ superior skills. Other investors’ opportunity to profit from the stars’ opinions exists, but is limited due to their timing disadvantage.     

Innovation and the Operational Performance of Newly Established Small and Medium Enterprises in Taiwan

New Enterprises have been sprouted out prosperously in Taiwan. According to business income tax data, 143 thousand new enterprises were established between 1996–1998, which accounts for about 25% of total number of enterprises, and 98.68% of these new enterprises are SMEs.In this research, a randomly sampled 1,047 new enterprises which established after 1996 were surveyed through telephone. The survey discovered that three-quarters of these new enterprises adopted at least one out of nine types of innovative activities which were listed in the questionnaire.The logistic regression results of this study show that three main areas of innovation which were grouped from the nine activities by principal component analysis all had a positive relationship with operational performance of new enterprises. Innovative action had the biggest impact on sales growth, whilst the cultivation of an innovative atmosphere and the ability to innovate within the organization had the biggest impact on profits. In short, entrepreneurs in Taiwan are actively innovating, and this innovation is reflected in the performance of their enterprises.     

Effects of Preferred Stock Re-rating on Common Stock Prices: Further Evidence

This study examines the price reactions of common stocks to changes in preferred stock ratings, with focuses on firms with less information available in the market as well as on firms with a relatively larger proportion of preferred stock financing. Emphasis on differential information and the relative size of preferred stocks across firms provide a more powerful test of the effect of rating changes on stock prices. Contrary to previous studies that report no price effect on common stocks due to preferred stock re-ratings, these results show that for low-information firms and for firms with a larger proportion of preferred stocks in their capital structure, a preferred stock rating downgrade exerts significant negative price effect on common stocks during the two-day announcement period. Our findings also have implications for future studies of other firm-specific events such as security offerings, stock repurchases, and convertible calls.     

Antecedents of intention to use CUSS system: moderating effects of self-efficacy

The current research attempts to examine the antecedent factors of personal innovativeness, switching costs, and switching barriers affecting flight passengers’ attitude toward the common-use self-service (CUSS) usage which in turn affects their behavioral intention. This research also tests the moderating effect of self-efficacy on the relationships between the antecedents and attitude toward CUSS usage. The results from a survey of 523 respondents from the Taiwanese Taoyuan International Airport indicate that the antecedent factors of personal innovativeness and switching barriers have positive and negative influences, respectively on attitude toward CUSS usage which in turn positively affects the behavioral intention. In addition, self-efficacy plays an important moderating role on the relationships between switching barriers and switching costs on attitude toward CUSS usage. In this article, personal innovativeness is investigated on affecting consumer behavior in the acceptance of IT related innovations. Implications for future research are discussed and limitations noted.     

Economic Growth and Medicare Funding Systems

This article compares the long-run effects of changes in health conditions, population growth, price of medical care, and Medicare indemnity rate on capital formation and medical expenditures under fully funded and pay-as-you-go Medicare. Surprisingly, it is found that population growth, rising medical prices, and increasingly adverse health conditions may or may not raise medical expenditures in the long run. Moreover, the directions of some of these effects under the pay-as-you-go Medicare system are reversed under the fully funded system. Finally, it is shown that fully funded Medicare results in higher steady-state capital than pay-as-you-go Medicare; however, the welfare effect of the former may or may not be higher than that of the latter in general. (JEL H550 , E620 )