scholarly journals The early bird and the late bird: which catches more worms in Australia?

2019 ◽  
Vol 15 (4) ◽  
pp. 658-668
Author(s):  
Nirodha Imali Jayawardena ◽  
Akihiro Omura ◽  
Bin Li
Keyword(s):  
Design Methodology ◽  
Price Volatility ◽  
Investment Strategy ◽  
Trading Strategy ◽  
Optimal Time ◽  
Individual Investors ◽  
Content Type ◽  
Day Trading ◽  
Buying In ◽  
Practical Implications

Purpose The purpose of this paper is to examine what the optimal time is in a typical trading day for investors to buy/sell stocks in the Australian stock market. Design/methodology/approach The study mainly focuses on the S&P/ASX200. Each trading day, between 10:00 a.m. and 4:00 p.m., is divided into 30-min blocks. The effectiveness of easily implementable trading strategy to purchase the index in the morning and sell at the close is tested. The study controls for the excess overnight price volatility to improve the effectiveness of the investment strategy. This trading strategy is compared against other 66 possible day-trading combinations. Findings The results show that the trading strategy of buying in the first 30 min of the trading session and close off the position during the last 30 min obtains higher returns than other 66 strategies. Practical implications The day-trading strategy proposed in this study is very simple and therefore can be easily implemented by investors including individual investors. Originality/value To the best of our knowledge, this is the first study which constructs a trading strategy using the J- or U-shaped intraday return pattern.

Moderation effect on Islamic banking preferences in UAE

2018 ◽  
Vol 36 (1) ◽  
pp. 41-67 ◽  
Author(s):  
Mohammed Hersi Warsame ◽  
Edward Mugambi Ireri
Keyword(s):  
Design Methodology ◽  
Islamic Banking ◽  
Individual Investors ◽  
Content Type ◽  
Moderation Effect ◽  
Moderation Effects ◽  
Bank Managers ◽  
Convenience Sampling ◽  
Conventional Banks ◽  
Practical Implications

Purpose The purpose of this paper is to examine the direct and indirect moderation effects of demographic and socio-economic(s) factors on the adoption of Islamic banking in UAE. Design/methodology/approach Convenience sampling was done on the residents of Sharjah, Dubai, and Abu Dhabi. A closed-ended questionnaire with 30 items was designed and pre-tested before the start of the study. Path analysis and moderation testing were the main analytical approach. A total of 320 respondents completed the survey. Findings The research revealed that demographic and socio-economic(s) moderators may have direct and indirect moderation effects on the adoption of the Islamic banking in the UAE, which indicates the importance of these factors in the provision of Islamic banking products and services in the UAE. Practical implications This study further revealed that these moderators have huge practical implications for Islamic bank managers and marketers as they can exploit these demographics to enhance their market share in the UAE. Social implications In UAE, minimal attention has been directed toward the role moderators would play in the criterion that individual investors would use in the adoption of Islamic banking products and services in a cosmopolitan environment that is experiencing competition from conventional banks. Originality/value An extensive review of the existing literature on the adoption of Islamic banking reveals that no empirical research has been undertaken to explore the role played by demographic and socio-economic(s) moderators in the adoption of Islamic banking in UAE and internationally. This study attempts to fill this gap.

Buying in or selling out?

2015 ◽  
Vol 31 (2) ◽  
pp. 7-9
Keyword(s):  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Gulf War ◽  
Content Type ◽  
Full Effect ◽  
Pertinent Information ◽  
The City ◽  
Buying In ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – The day before the fall of Baghdad in the second Gulf War, one of the strangest, most surreal images involved the then External Affairs Minister of Iraq proclaiming that, in the distance, the explosions and smoke that could be clearly be seen from the city were not the attacks of Western allied troops, but the successful attacks of Iran’s own army on allied positions. Despite the howls of derision from the Western press who knew full well that what he was saying was flatly wrong, he maintained his line until the last moment before “shock and awe” had its full effect. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Gross profitability and momentum

2018 ◽  
Vol 44 (8) ◽  
pp. 992-1011
Author(s):  
Ajay Bhootra
Keyword(s):  
Design Methodology ◽  
Investment Strategy ◽  
Superior Performance ◽  
Momentum Strategy ◽  
Short Side ◽  
Content Type ◽  
Strong Performance ◽  
Potential Factors ◽  
Combined Strategy ◽  
Practical Implications

Purpose The purpose of this paper is to examine the combined performance of momentum and a gross profitability-based strategy. The motivation stems from the strong performance of momentum on the short side and profitability on the long side, suggesting a potentially superior combined strategy. Gross profitability is also a measure of firm quality, so that another motivation is to contribute to a growing literature on factor-based investing that includes momentum and quality as potential factors. Design/methodology/approach The empirical approach employed in the paper is standard in the asset pricing literature. The firms are sorted into portfolios based on profitability and momentum, and the combined performance is studied through independent double sorting. Both value-weighted and equally weighted returns are reported in case of key empirical results. Findings The combined strategy results in superior performance. Specifically, the strategy produces results 2.75 greater than the momentum strategy, and about four times as high as the profitability strategy. The strategy also has much higher Sharpe ratio that improves further when combined with size and value strategies. Research limitations/implications The research has significant implications for academics and practitioners alike. A new investment strategy that has not been explored in the literature is presented. The superior performance of the strategy presents a challenge for the market efficiency, and would be of interest to academics and practitioners working in the area of investment management. Practical implications There has been a growing interest in multi-factor investing in recent years. The paper documents that superior performance is achieved by combining two of the popular factors, namely profitability and momentum. Originality/value The research is the first to study the combined performance of profitability and momentum, and provide evidence on the superiority of the combined strategy.

Flights of fancy

2015 ◽  
Vol 31 (2) ◽  
pp. 22-24 ◽  
Keyword(s):  
Design Methodology ◽  
Price Volatility ◽  
Economic Consequences ◽  
Way Of Life ◽  
Content Type ◽  
Competitive Edge ◽  
Oil Price Volatility ◽  
Pertinent Information ◽  
Fierce Competition ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – Fierce competition is an unfortunate way of life in the world of business. It is obviously more intense in some industries than in others. One such sector is aviation. It does not matter whether the company is a budget carrier or the company is one marketed as full service. Securing a competitive edge is tough either way. The aviation sector is more vulnerable than most to the economic consequences of oil price volatility. That hardly helps the situation. Fuel accounts for around 40 per cent of the costs of running an airline, and profits invariably take a sizeable hit when prices are high; like in 2012, when oil soared to over $100 per barrel. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The selection of popular trading strategies

2015 ◽  
Vol 41 (6) ◽  
pp. 563-581
Author(s):  
Yi-Tsai Chung ◽  
Tung Liang Liao ◽  
Yi-Chein Chiang
Keyword(s):  
Stock Markets ◽  
Design Methodology ◽  
Investment Strategy ◽  
Relative Performance ◽  
Investment Strategies ◽  
Data Set ◽  
Content Type ◽  
Portfolio Managers ◽  
Practical Implications ◽  
Selection Of

Purpose – The relative performance of five popular nonzero-investment strategies, including Size, book-to-market ratios, earnings-to-price (E/P) ratios, cash flow-to-price (CF/P) ratios and dividend-to-price ratios, and their corresponding zero-investment strategies (also known as premiums) are first examined altogether for equally weighted (EW) and value-weighted (VW) methods to check whether a certain strategy (or some strategies) could be recommended to portfolio managers as the best (better) strategy (strategies). The paper aims to discuss these issues. Design/methodology/approach – This paper uses the stochastic dominance (SD) approach, a non-parametric test, to investigate the relative performance among various strategies and help investors search for the best or better strategy (strategies). Findings – The main results show that both the highest E/P and CF/P strategies (and their corresponding premiums) generally produce higher returns than the other three strategies (and their corresponding premiums) through allocating investors’ capital between the risky and risk-free assets for the EW and VW methods, respectively. Research limitations/implications – This study only examines US stock markets by SD approach, whether the results are consistent with non-US markets still needs further investigation. The findings imply that investors can benefit by investing in the highest E/P or CF/P stocks (or their corresponding premiums) to make more profit or less loss for US stock markets. Practical implications – First, the SD findings suggest that investors or portfolio managers can allocate their funds between risky and risk-free assets to maximize their profits. Next, the simulation results again prove that the profits of each nonzero-investment or zero-investment strategy for EW portfolios are higher than those of each corresponding strategy for VW portfolios. Finally, the findings imply that portfolio managers or investors can invest in the highest E/P or CF/P stocks (or their corresponding premiums) to make more profit or less loss. Originality/value – This study first uses an extensive data set (1952-2009) to examine the relative performance of nonzero-investment strategies and their corresponding zero-investment strategies for the five popular indicators altogether for the EW and VW methods with the SD approach for US stock markets. Moreover, the results reveal that the investors or portfolio managers can invest in the highest E/P and/or CF/P portfolios (or their corresponding premiums) to make more profit or less loss.

Perception alignment hypothesis: causality of herding?

2016 ◽  
Vol 8 (3) ◽  
pp. 194-204 ◽  
Author(s):  
Viktoria Dalko
Keyword(s):  
Stock Market ◽  
Conceptual Framework ◽  
Design Methodology ◽  
Trading Strategy ◽  
Market Manipulation ◽  
Content Type ◽  
Behavioral Biases ◽  
Change Perception ◽  
Successful Execution ◽  
Practical Implications

Purpose The purpose of this paper is to uncover an institutional reason behind herding and the key to successful execution of the accumulation-lift-distribution (ALD) trading strategy. Design/methodology/approach The paper proposes the perception alignment hypothesis (PAH), which is based on a large number of empirical episodes. Extensive empirical and theoretical literature of 79 articles is reviewed. These are selected from previously unrelated fields of prosecuted cases in market manipulation, sell-side analysts’ recommendations and internet rumors. These studies are put into a unifying conceptual framework. Findings The proposed PAH can explain some herding episodes that were generated for the purpose of executing ALD. Practical implications The value of the approach is that while behavioral biases are hard to change, perception alignment can be more responsive to regulation. Originality/value This paper is the first to propose the PAH. It provides an explanation for the causality of herding that complements the traditional literature on the psychological weaknesses of investors. This paper opens a debate on whether the stock market is fully competitive because investors have behavioral biases and certain institutions take advantage of those biases.

Do IPO filing prices reflect firm quality?

2019 ◽  
Vol 45 (4) ◽  
pp. 499-512
Author(s):  
Jaclyn J. Beierlein ◽  
James Nelson
Keyword(s):  
Institutional Investors ◽  
Design Methodology ◽  
Institutional Investor ◽  
Ordinary Least Squares ◽  
Individual Investors ◽  
Firm Characteristics ◽  
Ceteris Paribus ◽  
Content Type ◽  
Underwriter Reputation ◽  
Practical Implications

Purpose Prior research suggests that institutional investors prefer higher priced stock, while individual investors prefer lower priced stock. The purpose of this paper is to examine whether the IPO filing price reflects firm characteristics that are commonly associated with quality, including size, age, earnings, underwriter reputation and venture capital backing. Design/methodology/approach The authors used t-tests, Wilcoxon rank sum tests, logistic and ordinary least squares regressions to test the hypotheses. Findings The authors find that IPO filing prices are positively related to measures of quality, except venture backing, which impacts prices non-linearly. Ceteris paribus, small (large) venture backed firms’ filing prices are set significantly lower (higher). Research limitations/implications Firm managers set IPO filing prices high when they believe the firm is likely to attract institutional investors due to its size, quality and certification, and will set prices low otherwise. Practical implications Individual investors should be wary of IPO firms with lower prices. Managers should be cognizant of the positive relationship between IPO quality and price. Originality/value This study provides evidence that IPO prices reflect firm quality and may be set deliberately to attract individual investors when institutional investor demand is expected to be low. It also provides evidence that venture backing affects IPO prices non-linearly, consistent with the grandstanding hypothesis.

scholarly journals Proposed models for unit trust waqf and the parameters for their application

2019 ◽  
Vol 11 (1) ◽  
pp. 62-81 ◽  
Author(s):  
Syahnaz Sulaiman ◽  
Aznan Hasan ◽  
Azman Mohd Noor ◽  
Muhd Issyam Ismail ◽  
Nazrul Hazizi Noordin
Keyword(s):  
Design Methodology ◽  
Conceptual Models ◽  
Investment Strategy ◽  
Online Resources ◽  
Individual Investors ◽  
Journal Articles ◽  
Content Type ◽  
Secondary Sources ◽  
Asset Class ◽  
Unit Trust

Purpose This paper aims to present the viability of unit trust waqf (Islamic endowment) as an alternative asset class for waqf creation. Design/methodology/approach This paper starts with the conceptual exploration of the literature in the areas of waqf. The sources of the literature cover authentic sources of the Qurʾān and ḥadīth, as well as secondary sources such as books, journal articles and online resources. Findings This paper provides the conceptual framework of five models of unit trust waqf and their investment management parameters. Originality/value The novelty of this paper lies in its attempt to highlight the importance of waqf investment strategy in ensuring sustainable returns for waqf. It does so by introducing the conceptual models of unit trust waqf as viable mechanisms to pool more cash waqf from individual investors. The sustainability of the capital waqf assets in the form of unit trusts is maintained through the parameters for its application proposed towards the end of the paper.

Consumer value creation through WhatsApp use

2019 ◽  
Vol 32 (4) ◽  
pp. 455-471
Author(s):  
Jorge Cruz-Cárdenas ◽  
Jorge Guadalupe-Lanas ◽  
Ekaterina Zabelina ◽  
Andrés Palacio-Fierro ◽  
Margarita Velín-Fárez ◽  
...  
Keyword(s):  
Latin American ◽  
Value Creation ◽  
Emotional Support ◽  
Design Methodology ◽  
Instant Messaging ◽  
Role Performance ◽  
Content Type ◽  
Consumer Value ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to understand in-depth how consumers create value in their lives using WhatsApp, the leading mobile instant messaging (MIM) application. Design/methodology/approach The study adopts the perspective of customer-dominant logic (CDL) and uses a qualitative multimethod design involving 3 focus groups and 25 subsequent in-depth interviews. The research setting was Ecuador, a Latin American country. Findings Analysis and interpretation of the participants’ stories made it possible to identify and understand the creation of four types of value: maintaining and strengthening relationships; improving role performance; emotional support; and entertainment and fun. In addition, the present study proposes a conceptual model of consumer value creation as it applies to MIM. Practical implications Understanding the way consumers create value in their lives using MIM is important not only for organizations that offer MIM applications, but also for those companies that develop other applications for mobile phones or for those who wish to use MIM as an electronic word-of-mouth vehicle. Originality/value The current study is one of the first to address the topic of consumer behavior in the use of technologies from the perspective of CDL; this perspective enables an integrated qualitative vision of value creation in which the consumer is the protagonist.

scholarly journals Advantages and potential challenges of data management in e-maintenance

2019 ◽  
Vol 25 (3) ◽  
pp. 378-396 ◽  
Author(s):  
Arian Razmi-Farooji ◽  
Hanna Kropsu-Vehkaperä ◽  
Janne Härkönen ◽  
Harri Haapasalo
Keyword(s):  
Data Management ◽  
Design Methodology ◽  
Management Practices ◽  
Future Research ◽  
Conceptual Approach ◽  
Content Type ◽  
Different Types ◽  
Maintenance Systems ◽  
Industry Leader ◽  
Practical Implications

Purpose The purpose of this paper is twofold: first, to understand data management challenges in e-maintenance systems from a holistically viewpoint through summarizing the earlier scattered research in the field, and second, to present a conceptual approach for addressing these challenges in practice. Design/methodology/approach The study is realized as a combination of a literature review and by the means of analyzing the practices on an industry leader in manufacturing and maintenance services. Findings This research provides a general understanding over data management challenges in e-maintenance and summarizes their associated proposed solutions. In addition, this paper lists and exemplifies different types and sources of data which can be collected in e-maintenance, across different organizational levels. Analyzing the data management practices of an e-maintenance industry leader provides a conceptual approach to address identified challenges in practice. Research limitations/implications Since this paper is based on studying the practices of a single company, it might be limited to generalize the results. Future research topics can focus on each of mentioned data management challenges and also validate the applicability of presented model in other companies and industries. Practical implications Understanding the e-maintenance-related challenges helps maintenance managers and other involved stakeholders in e-maintenance systems to better solve the challenges. Originality/value The so-far literature on e-maintenance has been studied with narrow focus to data and data management in e-maintenance appears as one of the less studied topics in the literature. This research paper contributes to e-maintenance by highlighting the deficiencies of the discussion surrounding the perspectives of data management in e-maintenance by studying all common data management challenges and listing different types of data which need to be acquired in e-maintenance systems.

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