Adaptive market hypothesis and investor sentiments: global evidence

2020 ◽  
Vol 46 (11) ◽  
pp. 1407-1436
Author(s):  
Abhinava Tripathi ◽  
Vipul Vipul ◽  
Alok Dixit
Keyword(s):  
Financial Markets ◽  
Market Efficiency ◽  
Global Market ◽  
Asia Pacific ◽  
Momentum Effect ◽  
Return Distribution ◽  
Asia Pacific Region ◽  
Content Type ◽  
Reversal Effect ◽  
Global Evidence

PurposeThe purpose of this study is to investigate the adaptive market hypothesis (AMH) for 21 major global market indices for the period 1998–2018. These market indices cover the 16 largest global financial markets.Design/methodology/approachQuantile-regression methodology is employed to examine the market efficiency of a large number of financial markets from America, Europe and the Asia–Pacific region.FindingsThe results show that the returns in higher quantiles are negatively autocorrelated, and those in lower quantiles are positively autocorrelated. This evidence is stronger for the tails of return distribution. The positive autocorrelation (momentum effect) suggests market underreaction, and the negative autocorrelation (reversal effect) suggests overreaction. Overall, market efficiency appears to be time-varying and conditioned to the state of the market.Originality/valueThis study offers considerable evidence in favor of the AMH, for a large number of financial markets. These markets are substantially different from each other in terms of geography, nature of operation and size of the economy. The results from this study would be helpful to the academics, regulators and practitioners interested in financial markets.

Heuristic biases in investment decision-making and perceived market efficiency

2018 ◽  
Vol 10 (1) ◽  
pp. 85-110 ◽  
Author(s):  
Syed Zulfiqar Ali Shah ◽  
Maqsood Ahmad ◽  
Faisal Mahmood
Keyword(s):  
Financial Markets ◽  
Market Efficiency ◽  
Negative Impact ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Investment Strategy ◽  
Individual Investors ◽  
Content Type ◽  
Specific Investment ◽  
The Relationship

Purpose This paper aims to clarify the mechanism by which heuristics influences the investment decisions of individual investors, actively trading on the Pakistan Stock Exchange (PSX), and the perceived efficiency of the market. Most studies focus on well-developed financial markets and very little is known about investors’ behaviour in less developed financial markets or emerging markets. The present study contributes to filling this gap in the literature. Design/methodology/approach Investors’ heuristic biases have been measured using a questionnaire, containing numerous items, including indicators of speculators, investment decisions and perceived market efficiency variables. The sample consists of 143 investors trading on the PSX. A convenient, purposively sampling technique was used for data collection. To examine the relationship between heuristic biases, investment decisions and perceived market efficiency, hypotheses were tested by using correlation and regression analysis. Findings The paper provides empirical insights into the relationship of heuristic biases, investment decisions and perceived market efficiency. The results suggest that heuristic biases (overconfidence, representativeness, availability and anchoring) have a markedly negative impact on investment decisions made by individual investors actively trading on the PSX and on perceived market efficiency. Research limitations/implications The primary limitation of the empirical review is the tiny size of the sample. A larger sample would have given more trustworthy results and could have empowered a more extensive scope of investigation. Practical implications The paper encourages investors to avoid relying on heuristics or their feelings when making investments. It provides awareness and understanding of heuristic biases in investment management, which could be very useful for decision makers and professionals in financial institutions, such as portfolio managers and traders in commercial banks, investment banks and mutual funds. This paper helps investors to select better investment tools and avoid repeating expensive errors, which occur due to heuristic biases. They can improve their performance by recognizing their biases and errors of judgment, to which we are all prone, resulting in a more efficient market. So, it is necessary to focus on a specific investment strategy to control “mental mistakes” by investors, due to heuristic biases. Originality/value The current study is the first of its kind, focusing on the link between heuristics, individual investment decisions and perceived market efficiency within the specific context of Pakistan.

scholarly journals Who guarantees the quality of the quality assurance agencies? The exploration of the establishment and growth of the Asia-Pacific Quality Register (APQR)

2017 ◽  
Vol 11 (2) ◽  
pp. 58-67 ◽  
Author(s):  
Jianxin Zhang ◽  
Jagannath Patil
Keyword(s):  
Higher Education ◽  
Quality Assurance ◽  
Design Methodology ◽  
Asia Pacific ◽  
Qualitative Assessment ◽  
Future Prospects ◽  
Asia Pacific Region ◽  
Content Type ◽  
Quality Register

Purpose After the “quantity era,” today higher education has entered into the “quality era” and as “the gate keepers of quality,” quality assurance agencies (QAAs) are playing more and more irreplaceable important roles and their social status are becoming more and more prominent. However, how to guarantee the quality of the QAAs? Who can review the QAAs? The purpose of this paper is based exploration of these questions. Design/methodology/approach Following the founding of the European Quality Assurance Register (EQAR) for Higher Education, the Asia Pacific Quality Register (APQR) became the second in the international quality assurance (QA) networks to implement QA register, in 2015 with initiative of Asia-Pacific Quality Network. Findings This paper first retrospects the history and process of APQR, and subsequently the implementation of APQR is described in detail from the two aspects of the criteria and the procedure, and at the end, the paper concludes with a summary of the three characteristics of this first formal implement of APQR: APQR is an international register open to all the QAAs; APQR emphasizes characteristics evaluation of diversity; and APQR highlights the combination of quantitative assessment and qualitative assessment. Originality/value Today on the international stage of QA, APQR has emerged as “the watchman of quality” in the Asia-Pacific region as counterpart of EQAR in Europe. How far away does such newly emerging form of guaranteeing the QAAs’ quality go forward, what is its future prospects and other concerning issues, are some of the question that need enthusiastic attention and contribution.

Help us to help you

2019 ◽  
Vol 35 (10) ◽  
pp. 29-30
Keyword(s):  
Asia Pacific ◽  
Asia Pacific Region ◽  
Content Type ◽  
Pertinent Information ◽  
Short And Long Term ◽  
Long Term Performance ◽  
Performance Gains ◽  
Term Performance ◽  
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 This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Hotels in the Asia-Pacific region have yet to fully utilize social media to promote their CSR initiatives. This means there is huge potential for improved stakeholder engagement, leading to short- and long-term performance gains. Originality The briefing saves busy executives, strategists 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.

Overcoming trade logistics challenges: Asia-Pacific experiences

2015 ◽  
Vol 27 (3) ◽  
pp. 444-466 ◽  
Author(s):  
Ben Shepherd ◽  
Shintaro Hamanaka
Keyword(s):  
Design Methodology ◽  
Good Practice ◽  
Asia Pacific ◽  
Case Method ◽  
Policy Reforms ◽  
Case Study Method ◽  
Asia Pacific Region ◽  
Policy Makers ◽  
Content Type

Purpose – The purpose of this paper is to identify major challenges that Asia-Pacific policy makers face in drawing up international logistics policies, and to seek possible solutions to the problems. Design/methodology/approach – Case study method: the paper includes seven case studies that attempt to address various types of logistics challenges. The paper introduces both intra- and extra-regional examples of the ways in which those challenges have been overcome in particular contexts through concerted action by government and the private sector. Findings – There are a lot of interesting experiences of overcoming logistics challenges, both inside and outside the Asia-Pacific region. Good practice experiences can be replicated by other countries in the region. Originality/value – While there have been a lot of discussions on logistics policy reforms, this paper is one of the first attempts that clearly link challenges with concrete case experiences where those are overcome. The paper discusses very practical issues in an analytically sound manner, using case method.

Herding behaviour and Islamic market efficiency assessment: case of Dow Jones and Sukuk market

2019 ◽  
Vol 13 (1) ◽  
pp. 24-41
Author(s):  
Emna Mnif ◽  
Bassem Salhi ◽  
Anis Jarboui
Keyword(s):  
Financial Markets ◽  
Market Efficiency ◽  
Hurst Exponent ◽  
Efficiency Index ◽  
Parameter Method ◽  
Content Type ◽  
Efficiency Assessment ◽  
Time Varying Parameter ◽  
Activity Types ◽  
The Impact

Purpose The purpose of this paper is to present the Islamic stock and Sukuk market efficiency and focus on the presence of investor herding behaviour (HB) captured by Hurst exponent estimation. Design/methodology/approach The Hurst exponent was estimated with various methods. The authors studied the evolving efficiency of the “Dow Jones” indices from 1 January 2010 to 30 December 2016 using a rolling sample of the Hurst exponent. In addition, they used a time-varying parameter method based on the Hurst of delayed returns. After that, the robust Hurst method was considered. In the next step, the efficiency of the different activity types of Islamic bonds was studied using an efficiency index. Finally, the Hurst exponent estimates were applied to assess the presence of HB. Findings The results show that, firstly, there’s a strong correlation between the “DJIM” and “DJSI” prices and returns. Secondly, by using robust Hurst estimate, it is observed that the “DJIM” is the most efficient market. The Hurst exponent estimation results show that HB is more intensive in the Islamic stock market. These results indicate also the inexistence of this behaviour in the studied Sukuk market. Research limitations/implications Sukuk as Islamic financial assets is recent. Their relative time series are not long enough to apply the long memory approach. Furthermore, this work can be extended to study other Islamic financial markets. Practical implications Herding affects risk-return characteristics of assets and has an impact on asset pricing models. Practitioners are interested in understanding herding and its timing as it might create profitable trading opportunities. Social implications This work analyses the impact of Islamic principles on the financial markets and their ability to understand some behavioural biases. Originality/value This study contributes to the literature by identifying the efficiency and the presence of HB with Hurst exponent estimation in Islamic markets.

scholarly journals Graduate work-readiness challenges in the Asia-Pacific region and the role of HRM

2018 ◽  
Vol 37 (2) ◽  
pp. 121-137 ◽  
Author(s):  
Prikshat Verma ◽  
Alan Nankervis ◽  
Soegeng Priyono ◽  
Noorziah Mohd Salleh ◽  
Julia Connell ◽  
...  
Keyword(s):  
Asia Pacific ◽  
Educational Institutions ◽  
Work Readiness ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Content Type ◽  
Future Production ◽  
Key Stakeholders ◽  
National Economic

Purpose The purpose of this paper is to focus on graduate work-readiness challenges in three Asia Pacific economies (Malaysia, Indonesia and Australia), and the roles of three main stakeholders (government, employers and industry) in the process. The intention of the paper is to design a stakeholder-oriented HRM model to address the identified graduate work-readiness challenges. Design/methodology/approach A qualitative triangulation method comprising interviews and focus groups was used with participant samples for each country – Australia (19), Indonesia (19) and Malaysia (15). Stakeholder-oriented HRM theory underpins the conceptual framework for the paper. Findings All three countries are currently experiencing difficulties attracting graduates with the required portfolio of qualifications, skills and personal capabilities. The reported effects include: constraints on national economic growth, future production structures, and long-term socio-economic development. Based on a review of the work-readiness and stakeholder-oriented HRM theory literature, it is posited that graduate work-readiness challenges can be effectively addressed by HR professionals in partnership with other key stakeholders. Research limitations/implications The study sought the input of only three stakeholder groups for ascertaining graduate work readiness challenges, there is a strong case to include other groups including students/parents and secondary schools. Social implications Bridging the graduate skills gap between government, employers and educational institutions is an important area in which HR professionals can contribute by reducing the mismatch between demand and supply through influencing and balancing the interests and goals of key stakeholders. Originality/value This study makes a contribution to the extant literature as it explores the role of HR professionals in relation to a multiple stakeholder strategy to address these challenges in the less-explored Asia Pacific region.

Household food providers’ attitudes to the regulation of food marketing and government promotion of healthy foods in five countries in the Asia Pacific region

2018 ◽  
Vol 120 (6) ◽  
pp. 1236-1249 ◽  
Author(s):  
Anthony Worsley ◽  
Wei Chun Wang ◽  
Rani Sarmugam ◽  
Quynh Pham ◽  
Judhiastuty Februhartanty ◽  
...  
Keyword(s):  
Personal Values ◽  
Asia Pacific ◽  
Food Marketing ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Online Questionnaire ◽  
Cross Sectional ◽  
Content Type ◽  
Future Studies ◽  
Household Food

Purpose The purpose of this paper is to understand middle class household food providers’ attitudes to the regulation of food marketing and the promotion of healthy food practices. Design/methodology/approach A cross-sectional, online questionnaire survey was administered to 3,925 urban respondents in Indonesia, Melbourne, Shanghai, Singapore and Vietnam. Cross-tabulation, confirmatory factor analyses and multiple regression analyses were employed. Findings Most respondents supported government communications to promote healthy eating and to a lesser extent, regulatory measures to control unhealthy food marketing. Personal values and country of residence were more strongly associated with the respondents’ views than demographic variables. Overall, strongest support for nutrition promotion and for stricter regulation of food marketing was seen in Shanghai, Indonesia and Vietnam. Broadly, two groups were identified across the region: those who held equality-nature or tradition-security-conformity personal values, who disapproved of food marketing but supported government health promotion campaigns, and, those with stronger hedonist values who held opposite views. Research limitations/implications First, a wider range of personal values could be included in future studies to better represent Asian values. Second, changes in population views could be assessed in future longitudinal studies. Finally, future studies should include dietary assessments and the views of people from a variety of socio-economic and cultural backgrounds. Practical implications These findings suggest that health policy makers and communicators need to frame their communications to match the world views of household food providers in their countries. Originality/value The study provides confirmation of attitude-values theories within five different countries in the Asia Pacific region and demonstrates the importance of personal values and country of residence in influencing food providers’ views.

Antecedents of work readjustment of professional returnees: evidence from Vietnam

2019 ◽  
Vol 12 (1) ◽  
pp. 58-72
Author(s):  
Hung Trong Hoang ◽  
Nga Thi Thuy Ho
Keyword(s):  
Home Country ◽  
Empirical Studies ◽  
Subjective Norm ◽  
Asia Pacific ◽  
Asia Pacific Region ◽  
Developed Country ◽  
Content Type ◽  
The Relationship ◽  
Overseas Work ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the factors influencing work readjustment of Vietnamese returnees who used to study and/or work in a developed country and are currently working in different positions in their home country. Design/methodology/approach Data for this study were collected through a survey of 433 returnees using both paper-based and online surveys. Multiple regression was used to test the relationships in the model. Findings The findings show that while the length of time spent overseas, work expectations and subjective norm significantly affect work readjustment, the influences of age, gender and length of time since return on work readjustment are not supported. Practical implications The findings provide useful insights for home country government and managers of returnees developing repatriation programs that help returnees deal with the issue of poor work readjustment. Originality/value Empirical studies on cross-cultural re-entry adjustment of both self-initiated repatriates and international students are scarcely investigated. Most prior studies focused on individual factors (such as gender, age, duration in overseas and since return), research on the effect of work expectation on work readjustment is still scant. Most prior studies focused on examining the relationship between work expectation and work readjustment of company repatriates, however, this relationship in the context of returnees, especially in the Asia-Pacific region, has not been investigated. Furthermore, this study is the first to examine the influence of subjective norm on work readjustment of returnees.

scholarly journals Asian Infrastructure Investment Bank

2015 ◽  
Vol 01 (04) ◽  
pp. 667-685 ◽  
Author(s):  
Petra G. Kubalkova
Keyword(s):  
Global Market ◽  
Asia Pacific ◽  
Infrastructure Investment ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Investment Bank ◽  
Economic Determinants ◽  
Bretton Woods ◽  
Asian Infrastructure Investment Bank ◽  
Economic Volatility

The Chinese-led Asian Infrastructure Investment Bank (AIIB) faces monumental challenges derived from institutional and financial accountability, as well as the ability to deliver on its promises of increased economic integration in the Asia-Pacific region. Nevertheless, China is resolute in cementing its economic position in the global market and expanding its regional influence. The main justification for instituting AIIB is to provide secured loans to underdeveloped Asia-Pacific countries ineligible to obtain funds through other global financial institutions. However, by lessening loan barriers, AIIB’s approach threatens to give rise to regional economic volatility — a vice adamantly despised under the Bretton Woods system. The pivotal element that defines AIIB’s outcome is a well-diversified cofounding member cohort insistent on implementing sound regulatory measures. AIIB needs a divergent membership that considers the socio-economic determinants of individual requestors, allowing for well-diversified and well-balanced opinions on operating principles. Without this element China might be subjugating its clients, the Asia-Pacific countries, to yet another form of manipulation that was shunned under the Bretton Woods system. Would this be another subtle attempt of Chinese influence for a stake in regional hegemony under a guise of alleviating the impoverished regions of Asia-Pacific? Transparency, emphasis on operating principles enacted with democratic accord and accountability should serve as guiding blocks of the well-diversified cofounding cohort. These measures would hold China to its vows of increased prosperity in the Asia-Pacific region, which it is attempting to deliver through AIIB. This paper examines the advantages of the AIIB as well as drawbacks that could place the Asia-Pacific countries into another “golden straitjacket” if these propositions are not taken into consideration.

Sign in / Sign up

Export Citation Format

Share Document