• The Journal of Industrial Distribution & Business
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• v.4 no.2
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• pp.13-19
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• 2013

Purpose - The paper tested the relationship between the stock markets of the Middle East and the USA with the oil price and US dollar index as threshold variables. Research design, data, and methodology - The stock price indices of the USA, the Middle East (Abu Dhabi, Jordan), WTI spot crude oil price, and US dollar index were daily returns in the research period from May 21, 2001 to August 9, 2012. Following Hansen (1999), the panel threshold regression model was used. Results - With the US dollar index as the threshold variable, a negative relationship existed between the stock price indices of Jordan and the USA but no significant result was found between the stock price indices of Abu Dhabi and the USA. Conclusions - The USA is an economic power today:even if it has a closer relationship with the US stock market, the dynamic US economy can learn about subsequent developments and plan in advance. Conversely, if it has an estranged relationship with the US stock market, thinking in a different direction and different investment strategies will achieve good results.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.465-471
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• 2021

The study investigates the dynamic correlation of cryptocurrencies and equity in Vietnam and tests the safe-haven property of them from the perspective of the stock market in Vietnam during the pandemic crisis by applying the dynamic conditional correlation (DCC) GARCH model and regression with a dummy variable, respectively. This study employs time series data on the daily dataset from September 2014 to September 2021 with the focus on the two most popular cryptocurrencies - Bitcoin and Litecoin. The results show that the dynamic conditional correlations between cryptocurrencies and equity in Vietnam increased during the pandemic, however, in most periods, positive dynamic correlations often dominate. Besides, the regression results also indicate that Bitcoin and Litecoin act as weak safe-haven investments for stocks in Vietnam during the COVID-19 turmoil. They are more suitable for diversification purposes although the dynamic correlations between them and the stock index in Vietnam vary stronger during the pandemic crisis than before. The findings of this study suggest that in the period of pandemic crisis, cryptocurrencies are not concerned as effective safe-haven assets for stock in Vietnam. Instead, cryptocurrencies are only playing a potential role in diversification benefit in this economy.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.11
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• pp.191-201
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• 2021

This article examines the role of financial development in economic growth in a number of transitional economies where the financial systems were newly established or reformed only in the early 1990s to facilitate their transition from centrally planned economies to market-based ones. Based on a dataset collected from 29 transitional economies and 5 Asian developing economies covering the period 1990-2020, an empirical endogenous growth model is specified and estimated using the generalized method of moments (GMM). Three measures of financial development are used to investigate the relative role of the banking system and stock exchange market in the process of transition and growth. The results show that the three measures of financial development are crucial determinants of economic growth in transitional economies but the link seems to be in an inverted U-shape. This suggests the existence of thresholds for different channels of the financial sector to expand to positively influence growth. When becoming too large relative to the size of the economy, the financial system would have become a factor not conducive to growth. The growth convergence hypothesis is also confirmed and the impacts of other growth determinants are overall consistent with the extant literature.

• Asia-Pacific Journal of Business
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• v.9 no.4
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• pp.157-180
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• 2018

This paper empirically analyzes how working conditions of employees and executives affect Korean companies' survival. To this end, a survival analysis based on the accelerated failure time model is conducted from the end of December 2012 to the end of September 2018 on the 2012 year-end financial data for corporations whose common stocks have ever been listed either in the KOSPI market or in the KOSDAQ market with fiscal year ending at the end of December. The analysis shows that the average wage level per employee and the number of executives relative to the number of employees threaten while the average duration of service for female employees prolongs firm survival. Here, the average wage level per employee has turned out to worsen firm survivability regardless of the gender of employees in question while the average duration of service improves firm survivability only in case the employees are female: the average duration of service for male employees or the entire employees has turned out not to have any statistically significant influence on firm survival. The average compensation per executive and the percentage of temporary employees have turned out not to have any statistically significant influence on firm survival while the percentage of female employees has shown statistically significant positive influence on firm survival in some, although not all, models employed in our study. These results are expected to be a good reference in the course of our reaching agreements regarding the improvement of working conditions either between firms and employees or among the members of the entire society.

• Asia-Pacific Journal of Business
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• v.10 no.1
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• pp.55-72
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• 2019

Natural disasters and transient resource extraction cause new environmental problems and the waste of resources has also become a big problem. Because these kinds of environmental damage and pollution are harmful to human beings, the problem of environmental protection has become a global issue. In this situation, most consumers prefer Eco-Friendly products that benefit their health and can reduce environmental pollution as well. Businesses also try to develop marketing strategies that position products focused on the environment. At this point, the study has categorized extrinsic properties of Eco-Friendly products into brand images, the reliability of Eco-marks, advertisement views, and researches how the properties have effects on the perceived values and perceived risk in the process of consuming and how the perceived values and perceived risk have implications for purchasing intention. The consumer's perceived values are classified into emotional, social and Eco-friendly values. On the research of existing Chinese consumers or organic milk products, this study explains how the Chinese consumers make an assessment of the extrinsic property of Eco-Friendly products in the Chinese market and provide strategic implications to the Chinese market entrants.

• Asia-Pacific Journal of Business
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• v.10 no.2
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• pp.27-41
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• 2019

Following the methodology of Ben-Rephael, Kadan and Wohl (2015), this paper examines whether firm-level liquidity premium exists and whether the premium exhibits a long-term trend in the Korean stock market. The results show that over the whole sample period (1998-2018), a liquidity premium of 0.083% exists in the cross-section of stocks. Interestingly, the pricing of liquidity declines significantly over the sample period. Sub-period analysis indicates that liquidity is priced mainly in the first sub-period (1998-2004) with a significant monthly premium of 0.304%, while the pricing of liquidity becomes weaker or insignificant in the second (2005-2011) and the third (2012-2018) period. I also find that the significance of the liquidity premium in the first period is attributed to small stocks. To explore underlying reasons that might affect the decline in the liquidity premium, I decompose liquidity premium into the product of firm-level liquidity and the sensitivity of expected stock returns on liquidity. The results reveal that the long-term decline is explained by both an increase in firm-level liquidity and a decrease in the sensitivity of expected returns on liquidity.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.291-306
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• 2020

Purpose - This study attempts to expand the realm of country-of-origin theory to incorporate the relevant cultural-psychological variables (i.e., ethnocentricism and psychological distance). Design/methodology/approach - This sttudy verified the effects of the two antecedent variables on the consumers' purchase intention of Korean prducts. For this purpose, the study implemented survey questionnaire mathod on respondents living in Liaoning Province of China. Findings - The study result confirmed the relationship betweencountry image, product attitude, and purchase intention of Korean products. Also, the study found that ethnocentrism adversely affects Chinese consumers' purchase decision on Korean products. Finally, the study confirmed the that psychological distance moderates the relationship between country image (ad product image) on purchase intention. Research implications or Originality - The study provides useful implications on the studies focusing on the country-of-origin effect in that it confirmed the effets of cultural-pychological variables such as ethnocentrism and psychological distance. The result also offers useful corporate strategies for the companies entering Chinese market particularly in segmenting the market based on such cultural-psychological variables.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.11-19
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• 2021

This study aims to analyze the causality relationship between sectoral stock markets (agricultural, financial, industrial, and mining sectors) and economic growth in the short and long term as well as to analyze whether it has similar types or not. The data used is quarterly time-series data (first quarter 2009 to fourth 2019). To determine the causality relationship, this study conducts a variable and multivariate causality test. The results of the varying granger causality test show that there is only a one-way relationship, where the economic growth of the agriculture sector affects its shares. A one-way relationship also occurs in stocks of the industrial sector, which has an influence on economic growth. The multivariate causality test shows that the economic growth of the agricultural sector has a two-way causality relationship, and it also exists between the industrial sector and the financial sector stock markets. The two-way causality relationship between the stock market and sectoral economic growth is a convergence towards long-term equilibrium. The findings of this study suggest that the government through the Financial Services Authority and the Indonesia Stock Exchange have to maintain stability in the stock market as a supporter of the national economy.

• Korea Trade Review
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• v.44 no.6
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• pp.187-199
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• 2019

Vietnam's economic growth has progressed rapidly since Doi Moi. Vietnam is a key driving force for global economic growth on behalf of China. Therefore, this study analyzed the factors of Vietnam's economic growth by using time series variables after Doi Moi. Study results show that educational expenditures affect ODA in the short term. In the long run, GDP and FDI are causally related to ODA. Based on the above findings, it can be seen that FDI and ODA played a significant role in Vietnam's economic growth. This finding suggests that in order for Vietnam's economy to grow further, the capital market should be more open to foreigners so that FDI and ODA can flow more smoothly. Since the inflow of FDI is also linked to educational expenditure, it is important to understand that the workforce is being upgraded in the Vietnamese labor market.

• Asia-Pacific Journal of Business
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• v.11 no.1
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• pp.1-16
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• 2020

Purpose - The purpose of this research is to investigate the determinants of bakery revisit intention. This research selects Paris Baguette as the research context because the market share of Paris Baguette was the highest in Korean bakery market. Design/methodology/approach -This research employed revisit intention as the dependent variable, while this research chooses six attributes to account for revisit intention. Six attributes are price fairness, taste, product variety, accessibility, display, and membership. This research uses survey as the main instrument. For the data collection, online survey using Google survey form was implemented. The survey participants are domestic consumers of Paris Baguette. The number of observation is 245. For the data analysis, this study used frequency analysis, correlation matrix, exploratory factor analysis, reliability analysis, and multiple regression model. There are four control variables, which contains age, gender, visiting frequency, and monthly income. Findings - The results shows that price fairness, taste, product diversity, and accessibility are significant attributes with the positive effect. Among the significant attributes, taste presented the highest magnitude to explain the revisit intention. However, membership and display appeared as non-significant attributes to account for bakery revisit intention. Research implications or Originality - This study provides the bakery managers with the information to design their service and product. This study also contributes to the literature by understanding the consumer behavior more in the domain of bakery service.