Technical trading rules for nonlinear dynamics of stock returns: evidence from the G-7 stock markets

This paper explores a possible link between an asymmetric dynamic process of stock returns and profitable technical trading rules. Using the G-7 stock market indexes, we show that the dynamic process of daily index returns is better characterized by nonlinearity arising from an asymmetric reverting property. The asymmetric reverting property of stock returns is exploitable in generating profitable buy and sells signals for technical trading strategies. The bootstrap analysis shows that not all nonlinearities generate profitable buy and sell signals, but rather only the nonlinearities generating a consistent asymmetrical pattern of return dynamics can be exploitable for the profitability of the trading rules. The significant positive (negative) returns from buy (sell) signals are a consequence of trading rules that exploit the asymmetric nonlinear dynamics of the 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 trading strategies in stock market investments.     

Pitting real options theory against risk diversification theory: International diversification and joint ownership control in economic crisis

This study examines how MNE divestment decisions differ according to real options vs. risk diversification perspectives. We develop competing hypotheses in relation to international diversification and joint ownership control. Empirical results give consistent support to the real options perspective. We find that large MNEs with greater international diversification are less likely to divest their subsidiaries during times of economic crisis. The negative effect of joint ownership control is however manifested in both crisis-stricken and non-crisis country subsidiaries as well as in their interaction effect.     

Cointegration,dynamic structure,and the validity of purchasing power parity in African countries

The purpose of this paper is to test the validity of the purchasing power parity (PPP) in Africa in the context of a multivariate error-correction model. This approach allows for the consideration of long-run elasticities as well as the dynamics of the short-run adjustment of exchange rates to changes in domestic and foreign prices. Monthly data for fourteen African countries are used, and the period examined is 1973:4 through 2007:7 (i.e., 412 observations). Results from long-run cointegration analysis, short-run error correction models, persistence profile analysis and variance decomposition all confirm the validity of PPP in these moderate-to-high inflation countries, where estimates of half-life deviations from PPP are found to be outside the range suggested by Rogoff (1996).     

Are predictable improvements in TFP contractionary or expansionary: Implications from sectoral TFP?

We investigate the effects of predictable changes in TFP at the sectoral level. Our findings can reconcile the seemingly contradictory findings in the literature. Shocks to predictable changes in investment-sector TFP are also found important for US business cycle fluctuations.     

How does industry use social networking sites? An analysis of corporate dialogic uses of Facebook,Twitter, YouTube,and LinkedIn by industry type

This study examines the corporate dialogic uses of four types of social networking sites (SNSs) (Facebook, Twitter, YouTube, and LinkedIn) with the public and their differences by industry type. The results suggest that corporations have integrated SNS uses, and use SNSs in different ways according to the characteristics and purposes provided by each SNS. In most cases, retailers and communications and transportation companies actively use SNSs and frequently interact with the public. In addition, Facebook was the leading tool for the dialogic feedback loop, as the dialogic interaction index of Facebook was much higher than that of Twitter.     

Across the threshold: Role of performance and compatibility in innovative new products' market penetration

Both academicians and practitioners agree that there exists a critical threshold to cross for an innovative new product to be able to achieve ultimate market penetration. In this article, the authors characterize the threshold as depending upon innovation characteristics: performance and compatibility, in particular. Based on the insights from evolutionary games, several numerical simulations are conducted to investigate how the critical threshold changes as each parameter representing the innovation characteristics undergoes a change. The analysis results confirm that relative advantage and compatibility are of critical influence in impacting the threshold and thus the successful market entry. Moreover, the effect size was different depending on the size of the firm's proprietary customer base. Based on the findings, discussion on new product design strategies for companies having different market positions (i.e., new start-up firms, established firms, and incumbent market leaders) is provided.     

The changing age distribution in Indonesia and some consequences

"Beginning with a discussion of the sources and quality of Indonesian age data by sex, this paper examines the changes in the functional age groups of the population of Indonesia from 1971 to the year 2005, and the implications of these changes for education, labour force participation, dependency ratios and fertility. Data for the period 1971 to 1985 are based on actual enumerations, while those for the period 1990 to 2005 are based on projections. Although the provisional totals of the 1990 Census had been released before the publication of this paper, their breakdown by age was still not available. The functional age categories discussed in the paper include the pre-school years, the primary and intermediate school ages, the teenage years, the reproductive ages of women, the principal working ages and the post-work years. It concludes with a discussion of various policy and planning implications of these changes."     

An object-oriented optimal savings system: HYPER-SAVINGS

This research develops an intelligent dynamic savings investment system called HYPER-SAVINGS which can construct the best savings portfolio embracing all types of products from multiple banks. Since the major model in HYPER-SAVINGS is the 0–1 integer programming (IP) model, we need to interpret information about investors, products, institutions and the current financial situation for the formulation of the IP model. This has become possible by adopting the knowledge-based integer programming modeling aid, UNIK-IP, which allows the formulation of an IP model at a semantic level using logical operators such as EITHER–OR and IF–THEN, and automatically transforms them to a so-called base level model which can be solved by the IP solver. HYPER-SAVINGS also provides the capability of sensitivity analysis at a semantic level to adjust to dynamic situational changes. Since the system is expected to collect the information from various banks through the Internet and filters out dominated products before formulation, HYPER-SAVINGS can provide the architecture for the international meta-bank on the Internet. © 1997 John Wiley & Sons, Ltd.     

The Relationship between Mutual TSI and Interfirm Contracts: The Moderating Effect of Strong Ties

ABSTRACT

Purpose: This study examines the influence that tie strength has on contractual relationships between exchange parties with specific investments and also explores the role of network intensity in contractual relationships between buyers and suppliers. We hypothesize that the relationship between transaction-specific investments (TSIs) and contracts is moderated by network intensity.

Methodology: An empirical test is carried out by analyzing buyer–supplier relationships of manufacturing companies. The construct measures were based on those obtained from prior research, and the reliability and validity were established using exploratory and confirmatory factor analysis. The overall measurement model was then assessed with structural equation modeling using AMOS.

Findings: We focus primarily on contract variables as a governance mechanism that can be affected by the strength of ties among firms and the results of our empirical study indicate that supplier TSIs improve the use of informal contracts while the use of formal contracts undermines the effect on supplier TSIs. In addition, we found that firms with weak ties with their partners in the network are more likely to use both formal and informal contracts than those with strong ties.

Contribution: Our study has several contributions. First, our research improves the understanding of the relationship between TSIs and the choice of contracts as a governance mechanism, especially for mutual TSIs. Second, our research improves our understanding of the network strength in the context of business-to-business relationships extending the understanding of the relationship intensity among firms in a network. Third, we focused on the effects of network intensity on contractual relationships.