Credit growth,current account and financial depth

Exploring the determinants and dynamics of the current account balance is one of the priorities of academic literature and policy circles. Although the effects of structural variables are deeply analysed, a lesser attention has been paid to the impact of financial variables. Drawing on standard empirical current account models and with a large sample of industrial and developing countries, we report a significant deterioration in the current account balance in case of an increase in the credit growth. Moreover, we find that this link is substantially stronger for the developing ones motivating a closer examination. Therefore, we further advance our analysis and show that credit growth causes a stronger impact on the current account balance for lower levels of financial depth. In other words, at the early stages of financial development, acceleration in the credit growth might cause a larger deterioration in the current account balance; thus, it might be suggested that monetary policy and macro-prudential measures aimed at preventing financial excess might be more effective to reduce the external imbalances at the early stages of financial deepening.     

Interest rate reforms,financial deepening and economic growth in Tanzania: a dynamic linkage

In this paper we examine the dynamic relationship between interest rate reforms and economic growth in Tanzania using two tests. In the first test, we examine the impact of interest rate reforms on financial deepening using a financial deepening model. In the second test, we examine whether the financial deepening, which results from interest rate reforms, Granger‐causes economic growth – using a trivariate model. The empirical findings of our results reveal that there is a significant positive relationship between interest rate reforms and economic growth in Tanzania. However, the results fail to find any support for finance‐led growth.     

Unraveling the interplay of review depth,review breadth,and review language style on review usefulness and review adoption

To examine whether long reviews are uniformly more useful to readers, this study utilizes the experimental design approach to investigate the interplay of review depth, review breadth, and review language style on readers’ perceived usefulness and adoption intention of online hotel reviews. Drawing on the results from two experiments, review depth is proven to exert a positive impact on readers’ review usefulness and adoption intention. The moderating role of review breadth is verified, and the positive effect of review depth on review usefulness is attenuated (accentuated) when review breadth is high (low). The moderating role of review language style is also confirmed, and the result shows longer reviews written in literal language are considered more useful to readers than those written in figurative language. Being one of the first studies examining the interplay of review content and review style on review usefulness, this study provides important theoretical and practical contributions.     

Liquidity in auction and specialist market structures: Evidence from the Italian bourse

Several studies find that bid-ask spreads for stocks listed on the NYSE are lower than for stocks listed on NASDAQ. While this suggests that specialist market structures provide greater liquidity than competing dealer markets, the nature of trading on the NYSE, which comprises a specialist competing with limit order flow, obfuscates the comparison. In 2001, a structural change was implemented on the Italian Bourse. Many stocks that traded in an auction market switched to a specialist market, where the specialist controls order flow. Results confirm that liquidity is significantly improved when stocks commence trading in the specialist market. Analysis of the components of the bid-ask spread reveal that the adverse selection component of the spread is significantly reduced. This evidence suggests that specialist market structures provide greater liquidity to market participants.     

Time-Varying Arrival Rates of Informed and Uninformed Trades

We propose a dynamic econometric microstructure model of trading,and we investigate how the dynamics of trades and trade compositioninteract with the evolution of market liquidity, market depth,and order flow. We estimate a bivariate generalized autoregressiveintensity process for the arrival rates of informed and uninformedtrades for 16 actively traded stocks over 15 years of transactiondata. Our results show that both informed and uninformed tradesare highly persistent, but that the uninformed arrival forecastsrespond negatively to past forecasts of the informed intensity.Our estimation generates daily conditional arrival rates ofinformed and uninformed trades, which we use to construct forecastsof the probability of information-based trade (PIN). These forecastsare used in turn to forecast market liquidity as measured bybid-ask spreads and the price impact of orders. We observe thatPINs vary across assets and over time, and most importantlythat they are correlated across assets. Our analysis shows thatone principal component explains much of the daily variationin PINs and that this systemic liquidity factor may be importantfor asset pricing. We also find that PINs tend to rise beforeearnings announcement days and decline afterwards.     

Volatility,Depth, and Order Composition: Evidence from a Pure Limit Order Futures Market

This paper investigates market behaviors (such as volatility, depth, and volume) and order-flow decomposition in a pure limit order futures market, the Taiwan Futures Exchange. The results are different from those in equity markets due to relatively high adverse selection costs in futures markets. We show that a volatility (depth) increase is followed by a depth (volatility) decrease; a market order increase (decrease) subsequently induces higher (lower) volatility; and a limit order increase (decrease) results in more (less) market orders and limit orders. When the upside (downside) volatility rises, buyers decrease (increase) subsequent limit bid orders, and sellers increase (decrease) limit ask orders.     

跨国汽车公司供应链深度嵌入及其驱动力分析

文章指出,随着供应链由早期的销售嵌入发展演变为研发—采购—生产—销售—管理的供应链深度嵌入与整合,跨国汽车公司在华供应链已构成其全球供应链网络的重要组成部分,并在区域性市场上发挥着极为重要的作用。文章认为,供应链深度嵌入及其链网整合,主要缘于市场和低成本战略的经济驱动以及中国产业发展的政策驱动。     

Importance of early snowfall for Swedish ski resorts: Evidence based on monthly data

Since the early 1970s, Sweden has experienced an almost uninterrupted surge in demand for downhill skiing. However, from the 2009/2010 season, lift ticket sales have stagnated. With the use of monthly data, this study investigates the role of snow depth and economic factors in the demand for downhill skiing in Sweden. The empirical approach is based on a seemingly unrelated regression model, allowing snow conditions, but not economic factors to differ during the season. The estimates show that an early season increase in natural snow depth by 10 cm raises the growth rate of lift ticket sales by 9 percentage points in the same period. Further, the results indicate that downhill skiing is characterised by low income and price elasticities, implying weak impacts on demand for such changes. The price increase of lift tickets exceeds that of the inflation rate. The recent decline in demand might indicate changed leisure preferences.     

Economic policy uncertainty,CDS spreads,and CDS liquidity provision

Using a news-based index of economic policy uncertainty (EPU), we find that EPU is positively associated with credit default swap (CDS) spreads and negatively associated with the number of liquidity providers in the CDS market. A 10% increase in EPU leads to an 8.4% increase in CDS spreads and a 4.0% decrease in the number of liquidity providers. Furthermore, the effects of EPU are persistent and robust after controlling for macroeconomic variables. Our results are also robust to different econometric methodologies. Overall, our findings suggest that, when EPU is high, investors find credit protection more costly and difficult to purchase.     

Factors affecting the breadth and depth of e-procurement use in small and medium enterprises

Organizations differ in the range of e-procurement functionalities they use (breadth of use) and in how much they rely on e-procurement (depth of use). Nonetheless, factors affecting the breadth and the depth of e-procurement use have never been studied in a single context. Therefore, it is unclear whether the differences between the effects discovered in past studies are due to the difference between the breadth and the depth of use, or to the difference between contexts. We test the effects of factors potentially affecting the breadth and the depth of e-procurement use in a single context, using data from 151 small and medium enterprises (SMEs) in the manufacturing sector in New Zealand. The results indicate that the breadth and the depth of use of e-procurement in business organizations are influenced by different factors. Perceived relative advantage of using e-procurement, plus external pressure from suppliers and competitors to use e-procurement, result in the use of a broader range of e-procurement functionalities – in a greater breadth of e-procurement use. However, the extent of an organization’s reliance on e-procurement in organizational purchasing (i.e., depth of e-procurement use) is driven by compatibility of e-procurement with organizational values, practices, technology infrastructure, and strategy. Arguing that in order to benefit fully from e-procurement, an organization needs to integrate it deeply into its operations, we conclude that managers evaluating new e-procurement technologies should consider their compatibility with organizational norms and practices.