Trading and Ordering Patterns of Market Participants in High Frequency Trading Environment: Empirical Study in the Japanese Stock Market

In this study, we investigate ordering patterns of different types of market participants in Tokyo Stock Exchange (TSE) by examining order records of the listed stocks. Firstly, we categorize the virtual servers in the trading system of TSE, each of which is linked to a single trading participant, by the ratio of cancellation and execution in the order placement as well as the number of executions at the opening of the afternoon session. Then, we analyze ordering patterns of the servers in the categories in short intervals for the top 10 highest trading volume stocks. By classifying the intervals into four cases by returns, we observe how different types of market participants submit or execute orders in the market situations. Moreover, we investigate the shares of the executed volumes for the different types of servers in the swings and roundabouts of the Nikkei 225 index, which were observed in September in 2015. The main findings of this study are as follows: Server type A, which supposedly includes non-market making proprietary traders with high-speed algorithmic strategies, executes and places orders along with the direction of the market. The shares of the execution and order volumes along with the market direction increase when the stock price moves sharply. Server type B, which presumably includes servers employing a market making strategy with high cancellation and low execution ratio, shifts its market making price ranges in the rapid price movements. We observe that passive servers in Server type B have a large share and buy at low levels in the price falls. Also, Server type B, as well as Server type A, makes profit in the price falling days and particularly, the aggressive servers in the server type make most of the profit. Server type C, which is assumed to include servers receiving orders from small investors, constantly has a large share of execution and order volume.     

Outsourcing,Occupational Restructuring,and Employee Well‐Being: Is There a Silver Lining?

This study examines the relationship between outsourcing and various aspects of employee well‐being by devoting special attention to the role of occupational restructuring as a conveying mechanism. Using linked employer–employee data, we find that offshoring involves job destruction, especially when the destination is a low‐wage country. In such circumstances, staying employees’ job satisfaction is reduced. However, the relationship between outsourcing and employee well‐being is not entirely negative. Our evidence also shows that offshoring to high‐wage countries stimulates the vertical mobility of employees in affected firms in a manner that improves perceived well‐being, particularly in terms of better prospects for promotion.     

Armington elasticities in intermediate inputs trade: a problem in using multilateral trade data

Abstract.  In this paper we find that the estimates of Armington elasticities (the elasticity of substitution between groups of products identified by country of origin) obtained from multilateral trade data can differ from those obtained from bilateral trade data. In particular, the former tends to be higher than the latter when trade consists largely of intermediate inputs. Given that the variety of intermediate inputs traded across borders is increasing rapidly and that the effect of this increase is not adequately captured in multilateral trade data, the evidence shows that the employment of multilateral trade data to estimate Armington elasticities needs caution. JEL classification: F14, C51     

Productivity, efficiency, scale economies and technical change: A new decomposition analysis of TFP applied to the Japanese prefectures

This paper aims to examine the productivity change of the Japanese economy using the data pertaining to the 47 prefectures during the period 1981–2000. The decomposition analysis of the Hicks–Moorsteen–Bjurek productivity index is conducted to explore the sources of the productivity change. In summary, technical change and efficiency change are two of the most important components driving procyclical productivity. We find that relative their importance varies over periods. Supply shocks captured by technical change component caused upturns in productivity in the mid and late 1980s and in 1999 and 2000. Supply shocks also caused downturns in the early and mid 1990s. On the other hand, demand shocks captured by efficiency change component drove upturns of productivity in 1984, 1990 and 1996, when supply shocks were not detected. J. Japanese Int. Economies 19 (4) (2005) 617–634.     

Branding Strategies of Born Globals

Born global companies have now been studied for a decade. However, little has been written specifically about the challenges facing born globals in their branding endeavours. This research examines the branding strategies of 30 Finnish small and medium-sized born globals. The experience, qualities and global orientation of the founder and the top management team are found important for the success of the born globals in their branding achievements. A key argument is that business-to-business and business-to-consumer born globals differ as to their branding strategies and approaches. The analysis reveals a major imperative; branding strategies are dynamic and depend on the globalisation degree.     

Current accounts of Japanese airports

The paper examines the current account of 41 major airports. When we exclude depreciation costs, only seven airports are profitable. When depreciation is excluded, only three airports are making profits. Airports managed by local governments are very difficult to sustain financially without subsidies. Airports with more than 5.2 million passengers are profitable when depreciation is taken into account, however most local airports have fewer than 2.5 million passengers. When depreciation costs are excluded, airports need at least 2.7 million passengers to be viable.     

The globalization strategies of business-to-business born global firms in the wireless technology industry

This paper discusses the globalization process of business-to-business born globals in a rapidly growing industry, the wireless technology industry. Deviations in these patterns in regards to the mainstream pattern of internationalization and earlier born global literature are discussed. Furthermore, the roles of the founders and managers, the networks, the financial resources of the companies, and the innovations behind the companies under consideration are analyzed. A conceptual framework and propositions explaining the product, operation and market strategies of born globals are developed. The results suggest that born globals in the wireless sector do in fact deviate from the traditional internationalization process in many areas. Their expansion even to distant markets is rapid and they apply advanced product strategies at an early stage. However, their business operations are found to proceed at a more conventional pace and the notable difference from traditional firms is the rapid establishment of sales and marketing subsidiaries. Results emphasize the key role of the resources and capabilities of born globals in influencing the advancement of product categories, operation strategies, and global market presence. Born global firms were found to lack the resources and capabilities accumulated by traditionally internationalizing firms, and they therefore need to acquire them either through the earlier experience of the founding team, which should be complementary in nature, or from external domestic and international network actors.