scholarly journals The evaluation of the effectiveness of high-dividend strategies in Asia-Pacific Economic Cooperation economies

2021 ◽  
Vol 37 (1) ◽  
pp. 166-186
Author(s):  
Andrey Stolyarov ◽  
◽  
Ilya Sorokin ◽  
◽  
Keyword(s):  
Papua New Guinea ◽  
Abnormal Returns ◽  
Asia Pacific ◽  
Investment Strategies ◽  
Investment Portfolio ◽  
Market Growth ◽  
Developed Markets ◽  
Relevant Today ◽  
Cross Country ◽  
Different Levels

Investment strategies related to the use of high-dividend shares have been known for more than 30 years. Despite this, they remain relevant today. A large number of studies on this topic are devoted to studying the effectiveness of high-dividend strategies within one market, and cross-country studies evaluate a small number of markets. The aim of this paper is to evaluate the effectiveness of high-dividend strategies in the markets of all APEC economies, with the exception of Brunei and Papua New Guinea. The time horizon of the study is from 2002 to the present. We applied well-known modifications of the classic high-dividend strategy and modifications developed by the authors. We test hypotheses regarding the influence of various factors, such as the number of shares in a portfolio, the month of portfolio formation,classifying the economy as developed or developing, and the return on high-dividend portfolios. We also test the hypothesis that the significance of the high-dividend anomaly exists in various markets, but decreases over time. The results show different levels of effectiveness of high-dividend strategies and the different impact of the factors on the markets of developed and developing APEC economies. We found that high-dividend strategies are generally more effective in emerging markets, but in case of market growth, high-dividend strategies increase their abnormal returns only in developed markets. At the same time, the authors conclude that the number of shares in a high-dividend portfolio directly affects the result of its work. The results have theoretical and practical value, and can be applied in compiling a real investment portfolio.

scholarly journals Enterprise Multiple and Future Returns of the Brazilian Stock Market

2017 ◽  
Vol 10 (3) ◽  
pp. 431
Author(s):  
Rafael Igrejas ◽  
Raphael Braga Da Silva ◽  
Marcelo Cabus Klotzle ◽  
Antonio Carlos Figueiredo Pinto ◽  
Paulo Vitor Jordão da Gama Silva
Keyword(s):  
Risk Factors ◽  
Stock Market ◽  
Cross Section ◽  
Predictive Power ◽  
Abnormal Returns ◽  
Strong Relationship ◽  
Investment Strategy ◽  
Emerging Countries ◽  
Investment Strategies ◽  
Developed Markets

The estimation of cross-section returns for defining investment strategies based on financial multiples has been proven to be relevant following Fama and French’s (1992) research. One of the challenges for such studies is to identify the main variables that are suitable for explaining the returns in a particular context because the variables that are widely used in developed markets behave differently in emerging countries. In this study, we analyze the predictive power of the EV/EBITDA multiple in the context of the Brazilian stock market. The results show that the analyzed multiple has a strong relationship with the future returns of companies listed on the BM&F BOVESPA index between 2005 and 2013. For the period under review, the investment strategy of purchasing stocks when EV/EBITDA was low and selling stocks when EV/EBITDA was high showed abnormal returns of 15.94% per year, even after controlling for risk factors.

scholarly journals The Impact of COVID-19 Lockdowns on Sustainable Indexes

2021 ◽  
Vol 13 (4) ◽  
pp. 1846 ◽  
Author(s):  
Helen Chiappini ◽  
Gianfranco Vento ◽  
Leonardo De Palma
Keyword(s):  
Abnormal Returns ◽  
Nonparametric Tests ◽  
Market Growth ◽  
Bear Market ◽  
Global Pandemic ◽  
Screening Strategies ◽  
The Usa ◽  
Sustainable Investment ◽  
Sustainable Investments ◽  
The Impact

This paper analyzes the response of sustainable indexes to the pandemic lockdown orders in Europe and the USA, contributing to both the research on the effects of the global pandemic outbreak and the resiliency of sustainable investments under market distress. Our results demonstrate that sustainable indexes were negatively impacted by lockdown orders; however, they did not show statistically significant different abnormal returns compared to traditional indexes. Similarly, our empirical results confirm that sustainable screening strategies (negative, positive, best in class) did not have an influence during such announcements. These results are robust across several model specifications and robustness tests, including nonparametric tests, generalized autoregressive conditionally heteroskedastic (GARCH) estimation of abnormal returns, and alternative events. The findings suggest that investors do not have to pay the price for the investments in sustainable assets when a bear market occurs; consequently, ceteris paribus, these investments appear suitable for financial-first investors. Such results have relevant practical consequences in terms of sustainable investment attractiveness and market growth.

scholarly journals Cuba – Asia y Oceanía: historical relations

2021 ◽  
Vol 8 (4) ◽  
pp. 79-91
Author(s):  
Ruvislei Gonzalez Saez
Keyword(s):  
The United States ◽  
Asia Pacific ◽  
Diplomatic Relations ◽  
Asia Pacific Region ◽  
Relevant Today ◽  
Academic Exchange ◽  
Political Perspective ◽  
Structure Of Trade ◽  
Agriculture And Food ◽  
Economic Ties

The countries of Asia and Oceania occupy a prominent place in Cuba’s foreign policy orientation, which is especially relevant today when the country is facing another strengthening of restrictions by the United States, as well as trying to overcome the crisis caused by the Covid-19 pandemic. The author analyzes the history and potential of Cuba’s cooperation with Asia, which is the most dynamic region in the world economy, in order to demonstrate the level of existing interaction and the prospects of emerging opportunities. The article provides an overview of the process of Cuba’s establishing diplomatic relations with the countries of Asia and Oceania, reflecting on both the incentives and the difficulties that accompanied this dynamic. The author looks at different areas of cooperation with the countries of the region, including health care (exchange of medical professionals, support by sharing medical brigades, shipments of diagnostic equipment and medications), agriculture and food security, academic exchange, etc. Particular attention is paid to trade, where economic ties with key partners are examined, taking into account the structure of trade. In conclusion, the research stresses the essential importance of developing already consolidated and trending relations between Cuba and the Asia-Pacific region, both with its “giants” and with the smaller states. This thesis is also supported by political preconditions, in particular by the fact that, from the political perspective, the countries of the region have expressed support and agreement with Cuba in many bilateral and multilateral aspects, especially those related to the condemnation of the U.S. economic and financial embargo against Cuba.

scholarly journals "When I am in Japan, I feel as though I'm not disabled": A cross-cultural adjustment study of trainees with disabilities from Asia-Pacific regions

2016 ◽  
Vol 36 (4) ◽  
Author(s):  
Miho Iwakuma ◽  
Masako Okuhira ◽  
Satomi Nasu
Keyword(s):  
Cultural Adjustment ◽  
Cross Cultural ◽  
Asia Pacific ◽  
The Internet ◽  
Previous Knowledge ◽  
Individuals With Disabilities ◽  
Host Culture ◽  
Adjustment Processes ◽  
The Cross ◽  
Different Levels

This study aims to examine the cross-cultural adjustment processes of trainees with disabilities from Asia-Pacific regions, with the aim to explore factors that influence cross-cultural adjustments and uncover experiences by individuals with disabilities. We interviewed a total of 13 trainees, some of whom were interviewed multiple times. Several factors (e.g., affluence of the Japanese lifestyle, maintaining contact with home via the Internet, and/or previous knowledge of the host culture) greatly affected their transitions to Japan. Notably, participant adjustments were made on several different levels, including physical, social, and attitudinal.

scholarly journals Sovereign Wealth Funds’ Affiliation and Acquisition Premium: Evidence from the Asia-Pacific Region

2019 ◽  
Vol 8 (1) ◽  
pp. 25-49
Author(s):  
Ali Awais Khalid ◽  
Ghulame Rubbaniy ◽  
Muhammad Faisal Rizwan ◽  
Hassan Rauf Chaudhry
Keyword(s):  
Bargaining Power ◽  
Asia Pacific ◽  
Asia Pacific Region ◽  
Sovereign Wealth Funds ◽  
Sectoral Analysis ◽  
The North ◽  
Target Firms ◽  
Country Analysis ◽  
Cross Country ◽  
Acquisition Premium

This study aims to extend the signaling theory, by offering the buy-side sovereign wealth fund’s (SWF) affiliation as a signal of the acquisition premium. Using the mergers and acquisitions (M&As) deals’ data from Asia-Pacific, over the period from 2000-2017, the results reveal that the effect of buy-side SWF’s affiliation, on the acquisition premium of target firms is negative, and statistically significant in the North Asian region. Our cross-country analysis shows a negatively significant effect of the buy-side SWF’s affiliation on the acquisition premium in China. The findings of our sectoral analysis report a significantly adverse effect of SWF’s affiliation on the acquisition premium in the energy and cyclical goods sector. This suggests that the SWFs are likely to be more influential in M&As deals that are conducted in the strategic sectors. Our findings demonstrate that the buy-side SWF’s affiliation can be used as a signal of quality. That is to say that this affiliation increases the bargaining power of buyers to reduce the acquisition premium for targets. The findings are particularly important for the managers of firms managing SWFs’ investments, as they can negotiate better deals with the targets due to the managers’ affiliation with the SWFs.

Signaling Effect of Shifts in Dividend Policy: Evidence from Indian Capital Markets

2018 ◽  
Vol 6 (2) ◽  
pp. 142-153 ◽  
Author(s):  
Mohit Gupta ◽  
Navdeep Aggarwal
Keyword(s):  
Capital Markets ◽  
Dividend Policy ◽  
Abnormal Returns ◽  
Weak Form ◽  
Event Window ◽  
Developed Markets ◽  
Time Period ◽  
Signaling Effect ◽  
Study Methodology ◽  
Event Study Methodology

Empirical evidence suggests that a large number of studies support the signaling impact of dividends, but the results are more pronounced in developed markets as compared to emerging markets, where because of the weak form of market efficiency, signaling impact is not well-established. This study tests this hypothesis in Indian capital markets, in terms of signaling impact due to shifts in dividend policy. The study has defined the shift in dividend policy as an increase or a decrease of dividend by 20 percent from the previous dividend payout rate. Standard event study methodology was applied on 129 such events in the selected time period and these events were further classified according to market capitalization. Large-cap stocks displayed the presence of significant abnormal returns in the pre-event period, whereas the mid-cap stocks displayed the same in the post-event period. The results of the small-cap stocks mirrored that of large-cap stocks but they are the only ones in which cumulative average abnormal returns were found to be significantly displaying the lagged response toward the event. The decrease in dividend rate by 20 percent or more did not result in average abnormal returns in either pre-event or post-event window.

Financial liberalization and the behavior of reversals in emerging market economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Fayyaz Munir ◽  
Shahrin Saaid Shaharuddin ◽  
Mohd Edil Abd Sukor ◽  
Mohamed Albaity ◽  
Izlin Ismail
Keyword(s):  
Emerging Markets ◽  
Financial Liberalization ◽  
Emerging Market ◽  
Asia Pacific ◽  
Emerging Market Economies ◽  
Investment Strategies ◽  
Content Type ◽  
Market Economies ◽  
Contrarian Strategy ◽  
Fund Managers

PurposeThis paper investigates the behavior of contrarian strategy payoffs under varying degrees of financial liberalization in the context of Asia-Pacific emerging market namely China, India, Indonesia, Korea, Malaysia, Pakistan, Philippines and Thailand for the period 1997–2017. These markets represent economies that display a gradual change in the degree of financial liberalization instead of fully opening their markets to foreign investors at once.Design/methodology/approachUsing a daily dataset of 2,468 firms and four different measures of the degree of financial liberalization, the paper employs portfolio formation, panel regressions and binary modeling methods to reveal the impact of partial and complete financial liberalization on contrarian returns.FindingsThis paper documents a negative relationship between the degree of financial liberalization and contrarian strategy payoffs. The results further indicate that small-sized emerging markets reveal more significant and higher contrarian returns as compared to their larger counterparts. Moreover, the returns are significantly higher during negative market states, higher volatility and crises periods. The study findings are consistent with the investor-base broadening hypothesis.Practical implicationsThe findings may serve as a useful input for investors and fund managers to devise contrarian investment strategies in emerging market economies. Together, the study provides additional insights for policymakers in managing financial liberalization and integration policies within their respective countries.Originality/valueThis study provides a novel viewpoint by examining the relationship between the degree of financial liberalization and contrarian strategy payoffs. The authors contribute to the existing debate by shifting the discussion to the investor-based broadening argument in which small and less liberalized emerging markets offer opportunities for investors and fund managers to produce abnormal contrarian returns that cannot be earned by other conventional investment strategies.

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