• The Southeast Asian review
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• v.21 no.3
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• pp.139-203
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• 2011

This paper attempts to review of recent development of ASEAN financial integration and to evaluate it and predict its future aspect. For this purpose, we first examine the historic aspect of ASEAN financial integration such as ASEAN financial service open agreement or ASEAN capital market forum report and currently agreed integration plan. In addition, we study the development stages of ASEAM member countries in terms of its economic size or income level. Finally, we look at the financial market and institutional aspect of ASEAN member countries and the recent development of global financial market. From these analyses, we find several important facts. First, it is true that ASEAN, in general, will enjoy the effect of expanding regional investment and improving the quality of financial service through the financial integration. We think that its long term benefit is too large for ASEAN member states to avoid. Second, as a result, it is certain that ASEAN will corporate further to make its financial market to be integrated in the future. Third, however, despite these benefits and continuing efforts, we expect that it will be very difficult for ASEAN to reach a stage of financial integration as suggested in the Blueprint of ASEAN Economic Community by the year of 2015. The large difference among member states in term of economic and financial development will not allow for them to reach a single goal within a short time. Instead, we expect the following scenario for the integration process will hold. First, ASEAN will reach an agreement on the institutional framework by 2015 and afterwards, slowly the markets will begin to integrate. Second, at the earlier stage, not all but some countries will start the integration process. We expect that the financial market of ASEAN 5 will first be integrated and other 5 will join to it later.

• KIEE International Transactions on Power Engineering
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• v.3A no.1
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• pp.53-60
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• 2003

At present the electric power industry in Korea is going through a major restructuring process. The restructuring is motivated by a desire to reduce electricity supply costs, to attract new in-vestment in modern generation, transmission and distribution facilities, and to stimulate innovation in the wholesale production and the retail supply of electricity. The experience to date shows that restructuring of electric power industry in the US, however, is marred with a number of problematic market performances including unreasonably high prices at wholesale. This paper investigates the important role of Power Exchange for stabilizing electric power industry in transition by offering various financial products. These financial products are used for risk hedging by the market participants. The paper focuses on the risk hedging by an individual supplier and derives an explicit decision rule that incorporates the attitude towards the risks. In addition to providing the financial products for risk hedging by market participants, the Power Exchange plays another very important role of financial safeguard system. Because of its unique characteristics, the Power Exchange is well suited for financial surveillance where it performs the early detection of unsound financial (and to a large extent operational) practices on the part of any system users and protect the system integrity and the market participants from the consequences of a default in the clearing structure.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.759-770
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• 2021

Using a DCC - GARCH model analysis, this paper examines the existence of financial contagion from the U.S. stock market to the Vietnamese and the Philippine stock markets during the global financial crisis and the COVID-19 pandemic crisis. We use daily data from the S&P 500 (U.S.), VN-Index (Vietnam), and the PSEi (the Philippines). As a result, there is no evidence of contagion from the U.S stock market to the Philippine stock market that can be found during global financial crisis, while the Vietnamese market is influenced by this effect. Besides, both these developing stock markets (the Vietnamese and Philippine stock markets) are influenced by the contagion effect in COVID-19 pandemic crisis. Another finding is that the contagion effect during the coronavirus pandemic crisis in Vietnam is smaller than that during the global financial crisis, however, the opposite is the case for the Philippines. It is noticed that the Philippines seems to be more affected by the contagion effect from the COVID-19 pandemic than Vietnam at the time of this study. Because financial contagion is important for monetary policy, asset pricing, risk measurement, and portfolio allocation, the findings in this paper may give some useful information for policymakers and investors.

• Economic Analysis
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• v.25 no.3
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• pp.70-99
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• 2019

Using a stochastic volatility-in-mean VAR model consisting of the KOSPI index, the foreign exchange rate, the government bond rate, and the credit spread, this study investigates the effects of financial market uncertainty on financial markets. We find that higher uncertainty has recessionary effects on financial markets. The effects are especially stronger in equity markets and in won-dollar exchange markets. We also find that the effects of uncertainty become stronger during times of financial market stress compared to normal times. Finally, the results imply that financial market uncertainty may potentially affect the real sector, too.

• Korean Management Science Review
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• v.29 no.3
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• pp.23-43
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• 2012

Enacted for enhancing the competitiveness of the Korean capital market and financial industry, Capital Market Consolidation Act (CMCA) was intended to induce considerable changes such as adopting the concept of financial investment products, regulating financial investment functionally, extending financial investors' business areas and intensifying protection for investors. Employing DEA (Data Envelopment Analysis), this study measures and compares the efficiencies of domestic financial companies between the before and after the enactment of the Consolidation Act. We categorize the financial companies into 4 groups (banks, life insurance companies, property and casualty insurance companies and securities companies) depending on their business types, and evaluate how much and in which direction the Consolidation Act affects the efficiency of each group respectively. The study shows that there is no significant difference between the average efficiency of banks and that of property and casualty insurance companies due to the trade-off between opportunities and threats of the Act. To the contrary, it shows that the respective average efficiencies of life insurance companies and securities companies moved in the opposite directions to a considerable extent. Through empirical tests, we demonstrate the effect of the Act on the efficiency of Korean financial companies, and suggest the countermeasures for each financial group against the Act.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.11-18
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• 2020

This paper analyzes factors affecting enterprise's financial risk listed on the Vietnam stock market. The panel data of research sample includes 524 non-financial listed enterprises on the Vietnam stock market for a period of eleven years, from 2009 to 2019. The Generalized Least Square (GLS) is employed to address econometric issues and to improve the accuracy of the regression coefficients. In this research, financial risk is measured by the Alexander Bathory model. Debt structure, Solvency, Profitability, Operational ability, Capital structure are independent variables in the study. Firm Size, firm age, growth rate are control variables. The model results show that in order to prevent and limit financial risk for enterprises listed on the Vietnam Stock Market, attention should be paid to variables reflecting Liability structure ratio, Quick Ratio, Return on Assets, Total asset turnover, Accounts receivable turnover, Net assets ratio and Fixed assets ratio. The empirical results show that there are differences in the impact of these factors on the financial risk in state-owned enterprises and non-state enterprises listed on the Vietnam stock market. The findings of this article are useful for business administrators, helping business managers make the right financial decisions to improve the efficiency of financial risk management in enterprises.

• Korea Trade Review
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• v.45 no.4
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• pp.195-205
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• 2020

This study investigates the effects of financial development on the foreign direct investment (FDI) flow in host countries. Using bilateral FDI data from 34 OECD source countries to 146 host countries, we performed panel data analysis based on a gravity FDI equation. We hypothesized that the financial development would increase the volume of FDI flows. The results suggest that the well-functioning finance market of source countries as well as a better accessable financial market of host countries contribute to the increase in FDI of OECD in their partner countries. We found also that the financial development effects of source countries are larger than those of host countries. This result shows that the financial development can play a crucial role to impact the FDI inflows as push factor in source country than as a pull factor in host countries.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.241-250
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• 2020

This study examines the relationship between the attributes of board structure and the likelihood of financial distress for the non-financial sector of an emerging market characterized by concentrated ownership and family-controlled business. The present study utilized panel logistic regression to estimate the relationship between board structure attributes and the likelihood of financial distress. We used Altman Z-Score as a proxy for firm financial distress, as this tool measures the financial distress inversely. The study finds a significant relationship between board size and the likelihood of financial distress. The results show that a one-unit increase in board size would decrease the probability of financial distress by 3.4%. Further, we observe that a greater level of board independence is associated with a lower likelihood of financial distress. A one-unit increase in board independence would decrease the probability of financial distress by 20.4%. We also find a significant positive impact of leverage on the likelihood of financial distress. The present study contributes to the body of literature on board structure attributes and likelihood of financial distress in emerging markets, like Pakistan. Furthermore, the findings would be beneficial for corporate policymakers and investors in formulating corporate financial strategy and predicting business failure.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.9
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• pp.169-178
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• 2020

In this paper, we provide an overview of financial development in Vietnam. Particularly, a new approach of this study is to measure financial development through improvements in depth, efficiency and access of the banking system and stock market. Further, the study examines the factors significantly affecting financial development in Vietnam. The data are collected in Vietnam, an emerging country with a limited financial development. We employ the Autoregressive Distributed Lag (ARDL) approach, which generates a high reliability and suits data characteristics of emerging countries like Vietnam. We observe that Vietnam's banking system plays a key role in supplying credits to the economy while the nascent stock market at a limited size shows its potential for a considerable growth in the future. We also find the influential determinants of financial development in Vietnam including real estate market (RE), economic growth (EG), consumer price index (CPI), and global financial crisis (GFC). These findings are essential for Vietnamese authorities in providing practical solutions in order to build a sustainable and synchronous financial development. They are also first empirical evidence relating to an overview of financial development in an emerging country, so they are not only valuable to Vietnam but also crucial to other emerging economies.

• Journal of Korea Society of Digital Industry and Information Management
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• v.4 no.4
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• pp.113-125
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• 2008

This paper investigates the spillover effects(co-movements) between korean and U.S stock market by KOSPI and DJIA Index. Especially it compare to the pre- and post period of U.S. financial crisis resulted from sub-prime mortgage loan. The main results are as follows. First, the spillover effects of DJIA(U.S. market) to KOSPI(Korean market) are strong. This result accord with the former researches on this subject. Second, spillover effects are more strong after U.S. financial crisis. A possible reason for this phenomenon is a trend which the major investors such as foreign and institutional investors in domestic stock market have more attention to U.S. stock market. Third, the spillover effects appear in the opposite direction, that is KOSPI(Korean Stock Market) to DJIA(U.S. Stock Market). It seems to be the results of asian stock market's growing infIuences to European and U.S Markets.