Testing Monetary Policy Intentions in Open Economies

Temple (2002) argues that the inflation level used in Romer (1993) lacks power in revealing the policy intentions of monetary authorities, Temple also points out that Romer's use of the openness-inflation correlation cannot be explained by time consistency theory. In this article, we demonstrate that more open economies experience less inflation volatility and persislence. We attribute our findings to the hypothesis that monetary authorities in more open economies adopt more aggressive monetary policies. This pattern emerges strongly after 1990. Our results indicate that the near-universal regime shift in 1990 is not just a simple process of increased monetary policy aggressiveness, but an increased response to economic openness.     

Morphing: The Linkage of Inward Private Equity and Outward Ventures

Private equity is impacting the global economy and competitive landscape of multinational enterprises (MNEs) worldwide. In this pioneering study, we find an important new pattern for global interfirm connections: an inward private equity investment is inductive for emerging MNEs to conduct an outward venture. This inward‐outward linkage implies that emerging MNEs are more likely to undergo a series of organizational changes after receiving private equity investments. These changes include restructuring their boards of directors, rebuilding their top management teams, reconfiguring their corporate resources, reframing the industry structure, and altering competitive dynamics. These organizational changes induce emerging MNEs to modify their strategies such as speeding up the internationalization process, locating additional outward ventures in advanced economies, and choosing more complex entry modes, particularly cross‐border mergers and acquisitions (M&As). We describe this type of evolving internationalization of emerging MNEs as a “morphing” process with in‐depth case studies on emerging Chinese MNEs including Lenovo, Zoomlion, Geely, Alibaba.com, Huawei, NVC Lighting, and BYD. © 2014 Wiley Periodicals, Inc.     

Investments,incentives, and innovation: geographical clustering dynamics as drivers of sustainable entrepreneurship

Small Business Economics - This study attempts to fill the literature gap regarding sustainable entrepreneurship viewed through geographical clustering lenses by examining how institutional factors...     

Factor pricing in commodity futures and the role of liquidity

This paper empirically investigates the pricing factors and their associated risk premiums of commodity futures. Existing pricing factors in equity and bond markets, including market premium and term structure, are tested in commodity futures markets. Hedging pressure in commodity futures markets and momentum effects is also considered. This study combines these factors to discuss their importance in explaining commodity future returns, while the literature has studied these factors separately. One of the important pricing factors in equity and bond markets is liquidity, but its role as a pricing factor in commodity futures markets has not yet been studied. To our knowledge, this research is the first to study liquidity as a pricing factor in commodity futures. The risk premiums of two momentum factors and speculators’ hedging pressure range from 2% to 3% per month and are greater than the risk premiums of roll yield (0.8%) and liquidity (0.5%). The result of a significant liquidity premium suggests that liquidity is priced in commodity futures.     

Executive compensation in Asia: A critical review and outlook

In this research we conduct a systematic and critical review of the literature on executive compensation in Asian countries. We discuss the particular characteristics of executive compensation in Asia in terms of pay criteria, contingency factors, and implications for performance and turnover. We thereby highlight the unique contributions of Asian studies to the mainstream Western research in executive compensation, and call for future research integrating agency theory and the institution-based view in examining pay variances across different institutions.     

Impact of Payment Technology on Seasonality of Currency in Circulation: Evidence from the USA and India

Journal of Quantitative Economics - This paper examines the impact of payment technology on seasonality in currency in circulation. We specify that total transaction in a period follows a Gompertz...     

Political issues in advertising polysemy: the case of gay window advertising

This study draws on minority consumers’ interpretations of purposefully polysemic commercials to explore political issues in the consumption of advertising, and highlights the sociopolitical role of niche-targeted advertising as a powerful cultural institution in informing and defining identities. The study focusses on how lesbian, gay male, and bisexual consumers make sense of gay-oriented, yet strategically polysemic, gay window commercials. Findings suggest that participants understood these messages through the lens of their unique subcultural sensitivity and in relation to their closeted experience and consciousness of marginalization. The political meanings of niche-targeted advertising are accentuated as these minority consumers negotiate the cultural tensions of their subcultural identity and their struggle between seeking subcultural validation and seeking mainstream assimilation.     

Do economic statistics contain information to predict stock indexes futures prices and returns? Evidence from Asian equity futures markets

This research examines the impact of local and international market factors on the pricing of stock indexes futures in East Asian countries. The purpose of this paper is to present a study of the significant factors that determine the major stock indexes futures’ prices of Hong Kong, Malaysia, Singapore, South Korea and Taiwan. This study first investigates the relationships between Hang Seng Index Futures, KLCI Futures, SiMSCI Futures, KOSPI Futures, Taiwan Exchange Index Futures and local interest rates, dividend yields, local exchange rates, overnight S&P500 index and a newly constructed index, Asian Tigers Malaysia Index (ATMI). 11 years historical data of stock indexes futures and the economic statistics are studied; 10 years in-sample data are used for testing and developing the pricing models, and 1 year out-of-sample data is used for the purpose of verifying the predicted values of the stock indexes futures. Using simple linear regressions, local interest rates, dividend yields, exchange rates, overnight S&P500 and ATMI are found to have significant impact on these futures contracts. In this research, the next period close is predicted using simple linear regression and non-linear artificial neural network (ANN). An examination of the prediction results using nonlinear autoregressive ANN with exogenous inputs (NARX) shows significant abnormal returns above the passive threshold buy and hold market returns and also above the profits of simple linear regression (SLR). The empirical evidence of this research suggests that economic statistics contain information which can be extracted using a hybrid SLR and NARX trading model to predict futures prices with some degree of confidence for a year forward. This justifies further research and development of pricing models using fundamentally significant economic determinants to predict futures prices.