Diversification effect of ship investment funds in South Korea

2019 ◽  
Vol 23 (1) ◽  
pp. 62-74 ◽  
Author(s):  
Jae-Boong Lee ◽  
Su-Han Woo ◽  
Jeong Seok Song ◽  
Byeongchan Seong ◽  
Keun-Sik Park
Keyword(s):  
Stock Prices ◽  
Correlation Coefficients ◽  
Investment Fund ◽  
Short Term ◽  
Investment Funds ◽  
Policy Makers ◽  
Content Type ◽  
Cointegration Tests ◽  
The Government

Purpose The purpose of this paper is to examine the diversification effect of the Korean Ship Investment Fund (KSF) under Markowitz portfolio theory by analyzing short-term and long-term relationships with stocks and bonds. Design/methodology/approach For this purpose, unit root, correlation and cointegration tests are performed. Monthly data from 2004 to 2015 for stocks, bonds and KSFs are obtained for this study. Findings The correlation coefficients indicate that KSFs are uncorrelated with stocks and negatively correlated with bonds, and no long-term equilibrium relationships exist with all three variables by the Johansen and Engle-Granger cointegration tests. Research limitations/implications This paper makes contribution to the literature as follows: first, whereas the previous literature investigated diversification effect of ship investment using freight indices or freight rates which are not able to represent returns from ship investment, this study is the first study to use actual stock prices of the KSFs to the authors’ best knowledge; and second, diversification effect of ship investment represented by KSFs is empirically verified in the both short term and long term. Practical implications Policy-makers and managers of shipping companies can have sound ground that the KSFs are alternative and attractive assets to investors. It is also shown that the KSFs have potential to improve risk and return structure of investors on their own regardless of existence of incentives. Therefore, decisions of policy-makers can be made free from expectations for stronger incentives provided by the government. In addition, those countries that do not have such a ship investment platform may consider introducing a similar ship investment fund in order to revitalize the capital markets of the country. Originality/value This study holds its significance in investigating diversification properties of the KSFs for the first time in Korea since the KSFs were introduced.

Brazil faces stagnation risk in 2017

2017 ◽  
Keyword(s):  
Government Spending ◽  
Pension Reform ◽  
Investment Decisions ◽  
Fiscal Crisis ◽  
New Wave ◽  
Short Term ◽  
Business Investment ◽  
Content Type ◽  
The Government

Subject The risk that the Brazilian economy will stagnate, rather than recover, this year. Significance The recent passage of legislation freezing government spending and the ambitious pension reform currently under discussion in Congress are the flagship policies of the government of President Michel Temer. Both seek to defuse Brazil’s fiscal time bomb in the long term. However, they offer little support to immediate expansion in an economy that not only has been in recession since the second quarter of 2014 but is also locked in a low-growth trap will few apparent short-term escape routes. Impacts Popular dissatisfaction may trigger a new wave of demonstrations, further weakening the government. As long as the fiscal crisis persists, the government’s ability to stimulate the economy will be limited. Political risk will be a crucial factor in business investment decisions in Brazil.

South Africa's Mboweni will aid Ramaphosa reform push

2018 ◽  
Keyword(s):  
South African ◽  
Credit Rating ◽  
Short Term ◽  
Content Type ◽  
Rating Agencies ◽  
Reserve Bank ◽  
Freedom Fighters ◽  
Left And Right ◽  
The Government

Significance A former South African Reserve Bank (SARB) governor and minister of labour, Mboweni faces a crucial first few weeks in his new post as the government attempts to placate rating agencies and engineer an economic turnaround. Mboweni’s initial moves may be determined by Moody’s credit rating review expected today. Impacts In the short term, Mboweni’s appointment will be a boost for Ramaphosa’s bid for fiscal consolidation and growth. In the medium-to-long term, Mboweni will likely prove a more polarising figure inside the ANC than Nene. Allegations linking the Economic Freedom Fighters with a major banking scandal could give Mboweni and the ANC an early political 'win'. Mboweni's previous social media utterances could be further exploited by opponents, both left and right, in the months ahead.

scholarly journals Implementasi Kebijakan Penanggulangan Banjir dI DKI Jakarta 2013-2017

2018 ◽  
Vol 15 (1) ◽  
pp. 78-87
Author(s):  
Gilang Ramdhan
Keyword(s):  
Policy Implementation ◽  
Prevention Policy ◽  
Medium Term ◽  
Short Term ◽  
Policy Makers ◽  
Flood Prevention ◽  
Government Organization ◽  
Long Time ◽  
The Government

The flood problem is the long-time housework which is continuously done by the DKI Jakarta Government, to overcome the problem of the flood as the output from the policy of DKI Jakarta Government is the implementation of the flood prevention policy, both short-term, medium-term and long-term programs. In the implementation of the policy there are factors that can hamper and support the success of policy implementation there are communication, resources, bureaucratic or implementing attitude, and organizational structure including bureaucratic workflow. In terms of communication the real obstacle is the government are still difficult to establish communication with intermediary parties as one of the stakeholders. In terms of bureaucratic attitudes emphasized the independence of the apparatus to policy makers who have an important role in the success of policy implementation. In the government organization of DKI Jakarta itself has been applied innovation with the yellow, blue, and orange “soldiers” that can support the success of policy implementation. But unfortunately from DKI government's own policy environment does not yet have the full support of Jakarta DPRD so it can hamper the policies to be published by the executive. The conclusion of this paper is the government of DKI has a scope of problems that must be well compromised and which is still a wedge is the communication aspect, both internal and external so that the implementation of flood prevention policy in Jakarta can run well.

The long-term linkages between direct and indirect property in Australia

2015 ◽  
Vol 33 (4) ◽  
pp. 374-392 ◽  
Author(s):  
Jaime Yong ◽  
Anh Khoi Pham
Keyword(s):  
Moving Average ◽  
Property Market ◽  
Short Term ◽  
Content Type ◽  
Property Data ◽  
Cointegration Tests ◽  
Causality Tests ◽  
Asset Portfolio ◽  
Asset Classes

Purpose– Investment in Australia’s property market, whether directly or indirectly through Australian real estate investment trusts (A-REITs), grew remarkably since the 1990s. The degree of segregation between the property market and other financial assets, such as shares and bonds, can influence the diversification benefits within multi-asset portfolios. This raises the question of whether direct and indirect property investments are substitutable. Establishing how information transmits between asset classes and impacts the predictability of returns is of interest to investors. The paper aims to discuss these issues.Design/methodology/approach– The authors study the linkages between direct and indirect Australian property sectors from 1985 to 2013, with shares and bonds. This paper employs an Autoregressive Fractionally Integrated Moving Average (ARFIMA) process to de-smooth a valuation-based direct property index. The authors establish directional lead-lag relationships between markets using bi-variate Granger causality tests. Johansen cointegration tests are carried out to examine how direct and indirect property markets adjust to an equilibrium long-term relationship and short-term deviations from such a relationship with other asset classes.Findings– The authors find the use of appraisal-based property data creates a smoothing bias which masks the extent of how information is transmitted between the indirect property sector, stock and bond markets, and influences returns. The authors demonstrate that an ARFIMA process accounting for a smoothing bias up to lags of four quarters can overcome the overstatement of the smoothing bias from traditional AR models, after individually appraised constituent properties are aggregated into an overall index. The results show that direct property adjusts to information transmitted from market-traded A-REITs and stocks.Practical implications– The study shows direct property investments and A-REITs are substitutible in a multi-asset portfolio in the long and short term.Originality/value– The authors apply an ARFIMA(p,d,q) model to de-smooth Australian property returns, as proposed by Bond and Hwang (2007). The authors expect the findings will contribute to the discussion on whether direct property and REITs are substitutes in a multi-asset portfolio.

Costa Rica’s pandemic response faces political hurdles

2020 ◽  
Keyword(s):  
Informal Sector ◽  
Low Income ◽  
Financial Assistance ◽  
Short Term ◽  
Content Type ◽  
Tourism Sector ◽  
Pandemic Response ◽  
The Government ◽  
The Imf

Significance In August, it asked the IMF for a USD1.75bn credit under the Extended Fund Facility. This will come on top of the USD504mn approved by the IMF for emergency financial assistance in May. Costa Rica's problems stem from a combination of long-term weaknesses and the short-term impacts of the COVID-19 pandemic. Impacts The tourism sector will be slow to recover, further hurting the economy and the fiscal position. Insufficient support for the informal sector will leave much of the country’s workforce struggling. Poverty will probably increase as the government struggles to expand social programmes to protect low-income households.

Greek coalition will play politics at debt talks

2016 ◽  
Keyword(s):  
Debt Relief ◽  
Short Term ◽  
Trade Off ◽  
Content Type ◽  
High Interest ◽  
Political Position ◽  
The Government ◽  
Opinion Polls ◽  
Staff Level

Significance The government, with half an eye on a snap election, is determined not to accede to prolonged austerity without the trade-off of significant debt relief. Timing is all. The coalition partners are faring badly in opinion polls but do not face high-interest debt repayments before mid-2017, allowing them to prolong negotiations while they try to improve their political position. Impacts The government and Greece’s creditors are deeply divided over how long primary surpluses must be maintained and how to use them. Greece has been given limited short-term debt relief through adjustments to repayment conditions. There are no commitments regarding medium- or long-term measures and no haircut on the country’s mountainous aggregate debt. The IMF will rejoin the bailout once there is a staff-level agreement but insists that the numbers must add up.

Israel’s 2019 budget assumptions have long-term risks

2018 ◽  
Keyword(s):  
Fiscal Policy ◽  
Prime Minister ◽  
Short Term ◽  
State Budget ◽  
Content Type ◽  
Coalition Stability ◽  
The Government

Significance The Knesset (parliament) approved the 2019 state budget on March 15, over nine months early. The 480-billion-shekel (138-billion-dollar) spending package is mildly expansionary at a time when the economy is near capacity -- and locks in fiscal policy far in advance. However, Prime Minister Binyamin Netanyahu was determined to pass the budget now to avoid rifts that could bring down the government before scheduled elections in November 2019. Impacts Approval of the 2019 budget should help the Netanyahu government achieve short-term coalition stability. Major expenditure hikes on education, health and transport will reverse years of underspending. Replacement of Governor Karnit Flug after mild criticism of the government could damage the Bank of Israel’s perceived independence.

Integration between the Asian REIT markets and macroeconomic variables

2016 ◽  
Vol 34 (1) ◽  
pp. 68-82 ◽  
Author(s):  
Wei Kang Loo ◽  
Melati Ahmad Anuar ◽  
Suresh Ramakrishnan
Keyword(s):  
Policy Implementation ◽  
Portfolio Management ◽  
Short Term ◽  
Causality Test ◽  
Policy Makers ◽  
Content Type ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Johansen Cointegration Test

Purpose – The purpose of this paper is to examine the long-run relationship and short-term linkage between the Asian REIT markets and their respective macroeconomic variables. Design/methodology/approach – The data collected comprised total return REIT Index from Japan, Hong Kong, Singapore, Malaysia, Thailand, Taiwan and South Korea and their macroeconomic variables from the date of availability of the data until December 2014. The macroeconomic variables are either available in monthly or quarterly basis, they will be separately tested with REIT Index respectively to their frequency. All the variables are tested for its stationarity prior to the investigation of their long-run relationship and short-term linkage using Johansen cointegration test and Granger causality test. Findings – The results showed that certain of the emerging REIT markets show a higher degree of integration with macroeconomic variables in the long run. This implies that the emerging REIT markets are more sensitive towards the change in macroeconomic environment in relative to the developed REIT markets. Practical implications – The paper implied that the distinction of each market structure and their unique way of policy implementation. The findings can assists policy makers to understand about the significance of policy implementation on the Asian REIT markets prior to decision making and also for the portfolio management my asset managers. Originality/value – The paper is one of the few attempts at assessing the long-term relationship and short term linkage between the Asian REIT markets and the macroeconomic variables.

Socio economic and psychological dimensions of migration-induced exclusion of the elderly in Kerala, India: an empirical analysis

2016 ◽  
Vol 12 (1) ◽  
pp. 51-65
Author(s):  
Damodaran Rajasenan ◽  
M. S. Jayakumar ◽  
Bijith George Abraham
Keyword(s):  
The Elderly ◽  
Policy Framework ◽  
Policy Makers ◽  
Content Type ◽  
Left Behind ◽  
Emerging Culture ◽  
Principal Factors ◽  
Working Groups ◽  
The Government ◽  
Role Of The Government

Purpose – The purpose of this paper is to link the multifarious problems of the elderly in a socio-economic and psychological framework. Design/methodology/approach – The universe of the sample is elderly left behind in emigrant households in Kerala. In total, 600 samples were mustered using multistage stratified random sampling method. The paper, with the aid of factor analysis, χ2 and correspondence analysis, blemish the principal factors responsible for the migration-induced exclusion of the elderly. Findings – The empirical result derived from the study shows that migration-induced exclusion is all pervasive in Kerala. The elderly left behind yearn for the presence of their children rather than the emigration and concomitant remittances. Research limitations/implications – The findings of the study are helpful to the policy makers to understand the issues faced by the elderly and include all stakeholders concerned to find a solution to tackle these problems faced by the elderly due to emigration of their children. Practical implications – The study is practically relevant in developing appropriate policy framework in Kerala as it illumines the role of the government to overcome the exclusionary trend and other manifold problems of the elderly. Social implications – The study sheds light to a new social problem developing in the state in the form of elderly exclusion owing to emigration of the young working groups in regional dimensions, demographic levels, community angles and the emerging culture of old age home in the Kerala economy and society. Originality/value – The study is a unique one and tries to situate the principal factors responsible for the emigration-induced exclusion of the elderly in Kerala with empirical evidence.

Italy's politics without policy: Balancing Atlanticism and Europeanism in the Middle East

Modern Italy ◽  
2008 ◽  
Vol 13 (2) ◽  
pp. 135-153 ◽  
Author(s):  
Raffaella A. Del Sarto ◽  
Nathalie Tocci
Keyword(s):  
Foreign Policy ◽  
Middle East ◽  
The United States ◽  
The European Union ◽  
Short Term ◽  
The Government ◽  
Specific Interests ◽  
Policy Shifts ◽  
The Eu

Focusing on Italy's Middle East policies under the second Berlusconi (2001–2006) and the second Prodi (2006–2008) governments, this article assesses the manner and extent to which the observed foreign policy shifts between the two governments can be explained in terms of the rebalancing between a ‘Europeanist’ and a transatlantic orientation. Arguing that Rome's policy towards the Middle East hinges less on Italy's specific interests and objectives in the region and more on whether the preference of the government in power is to foster closer ties to the United States or concentrate on the European Union, the analysis highlights how these swings of the pendulum along the EU–US axis are inextricably linked to a number of underlying structural weaknesses of Rome's foreign policy. In particular, the oscillations can be explained by the prevalence of short-term political (and domestic) considerations and the absence of long-term, substantive political strategies, or, in short, by the phenomenon of ‘politics without policy’ that often characterises Italy's foreign policy.

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