Survey of Private Sector Trade Credit Developments

Policy Papers ◽  
2009 ◽  
Vol 09 ◽  
Author(s):  
Keyword(s):  
Private Sector ◽  
Emerging Markets ◽  
Trade Credit ◽  
Emerging Market ◽  
Advanced Country ◽  
Trade Finance ◽  
Structural Differences ◽  
The Cost

In response to the dearth of information on trade finance, the Fund has undertaken a survey of major advanced country and emerging market banks. The results suggest that the cost of trade finance is rising globally, but that provision is falling in emerging markets while staying stable in advanced countries, possibly reflecting structural differences in markets.

scholarly journals An Analysis and Comparison of Multi-Factor Asset Pricing Model Performance during Pandemic Situations in Developed and Emerging Markets

Mathematics ◽  
2022 ◽  
Vol 10 (1) ◽  
pp. 142
Author(s):  
Konstantin B. Kostin ◽  
Philippe Runge ◽  
Michel Charifzadeh
Keyword(s):  
Emerging Markets ◽  
Factor Model ◽  
Five Factor Model ◽  
Emerging Market ◽  
Model Performance ◽  
Research Area ◽  
Emerging Countries ◽  
Developed Markets ◽  
The Cost ◽  
Three Factor

This study empirically analyzes and compares return data from developed and emerging market data based on the Fama French five-factor model and compares it to previous results from the Fama French three-factor model by Kostin, Runge and Adams (2021). It researches whether the addition of the profitability and investment pattern factors show superior results in the assessment of emerging markets during the COVID-19 pandemic compared to developed markets. We use panel data covering eight indices of developed and emerging countries as well as a selection of eight companies from these markets, covering a period from 2000 to 2020. Our findings suggest that emerging markets do not generally outperform developed markets. The results underscore the need to reconsider the assumption that adding more factors to regression models automatically yields results that are more reliable. Our study contributes to the extant literature by broadening this research area. It is the first study to compare the performance of the Fama French three-factor model and the Fama French five-factor model in the cost of equity calculation for developed and emerging countries during the COVID-19 pandemic and other crisis events of the past two decades.

Comparative analyses of mean-variance and mean-semivariance approaches on global and local single factor market model for developed and emerging markets

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehmet Emin Yildiz ◽  
Yaman Omer Erzurumlu ◽  
Bora Kurtulus
Keyword(s):  
Emerging Markets ◽  
Stock Returns ◽  
Risk Measures ◽  
Emerging Market ◽  
Cost Of Equity ◽  
Content Type ◽  
The Cost ◽  
Global And Local ◽  
Insight Into ◽  
Better Than

PurposeThe beta coefficient used for the cost of equity calculation is at the heart of the valuation process. This study conducts comparative analyses of the classical capital asset pricing model (CAPM) and downside CAPM risk parameters to gain further insight into which risk parameter leads to better performing risk measures at explaining stock returns.Design/methodology/approachThe study conducts a comparative analysis of 16 risk measures at explaining the stock returns of 4531 companies of 20 developed and 25 emerging market index for 2000–2018. The analyses are conducted using both the global and local indices and both USD and local currency returns. Calculated risk measures are analyzed in a panel data setup using a univariate model. Results are investigated in country-specific and model-specific subsets.FindingsThe results show that (1) downside betas are better than CAPM betas at explaining the stock returns, (2) both risk measure groups perform better for emerging markets, (3) global downside beta model performs better than global beta model, implying the existence of the contagion effect, (4) high significance levels of total risk and unsystematic risk measures further support the shortfall of CAPM betas and (5) higher correlation of markets after negative shocks such as pandemics puts global CAPM based downside beta to a more reliable position.Research limitations/implicationsThe data are limited to the index securities as beta could be time varying.Practical implicationsResults overall provide insight into the cost of equity calculation and emerging market assets valuation.Originality/valueThe framework and methodology enable us to compare and contrast CAPM and downside-CAPM risk measures at the firm level, at the global/local level and in terms of the level of market development.

scholarly journals Cost Drivers for Food Retailers in Developed and Emerging Markets

2018 ◽  
Vol 11 (6) ◽  
pp. 100-111
Author(s):  
V. B. Frolova ◽  
T. F. Khan
Keyword(s):  
Regression Analysis ◽  
Emerging Markets ◽  
Emerging Market ◽  
Cost Driver ◽  
Cost Drivers ◽  
Developed Markets ◽  
Food Retailers ◽  
The Cost ◽  
Cost Factors ◽  
Financial Result

The subject of research is a set of methodological and practical aspects of assessing the cost factors of food companies. The study of the above factors is becoming relevant under the current conditions of environment instability and the necessity to stimulate investment, given the low elasticity of demand for products in this sector. The purpose of the research was to confirm the hypothesis of a variety of cost drivers that form the financial result of companies in a developed and emerging markets by an example of 39 food retailers in an emerging market and 48 companies in developed markets based on a system approach and the comparison method using elements of factor and correlationand-regression analysis. The research findings obtained are as follows: the choice of indicators for the regression analysis of cost factors mostly of a multiplicative type is substantiated; the research was carried out using the indicator of financial result less the tangible assets depreciation; to clarify the results of the research, the elements of the comparative analysis were applied, with the companies classified into four groups where Lenta and X5 were in the group of the most efficient companies of the first quantile, and Dixie fell into the group of the fourth quantile companies that had difficulty in generating their own funds; the cost drivers of food retailers in emerging and developed markets were identified. It is concluded that the cost driver of food retailers in developed markets is profitability of sales, and in emerging markets it is the share of capital inputs in sales revenues. It has been established that the growth rate of consumer consumption plays a key role in the retail market of all countries. At the same time, there is a market tendency to oust small companies by large players whose assets have a higher level of investment demand. The novelty of the research lies in using by the authors the EBITA profitability indicator in the regression model, where EBITA is the profit before tax, interest and intangible assets depreciation.

scholarly journals Determinants of Corporate Hedging: Evidence from Emerging Market

2016 ◽  
Vol 8 (12) ◽  
pp. 151 ◽  
Author(s):  
Cigdem Vural-Yavas
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Negative Relationship ◽  
Financial Derivatives ◽  
The Other ◽  
Growth Opportunities ◽  
Corporate Hedging ◽  
Coverage Ratio ◽  
Using Data ◽  
The Cost

<p>The main purpose of this study is to understand the determinants of corporate hedging in emerging markets. The dependent variable, hedging, is estimated by a categorical variable. This process necessitates the usage of logistic regression. The analysis is conducted using data from non-financial companies listed in Borsa Istanbul (BIST) between 2010 and 2014. Evidence reveals that the cost of underinvestment has the highest impact on the likelihood of hedging. Firms with higher cost of underinvestment are more likely to use financial derivatives. The second most important determinant of hedging is growth opportunities. Interestingly, firms with greater growth opportunities are less likely to use derivatives in emerging markets. Results indicate that firm size, foreign sales, profitability, and dividend yield are the other predictors that increase the likelihood of hedging. On the other hand, growth opportunities, free-float rate, interest coverage ratio, and leverage have a negative relationship with the possibility of using financial derivatives.</p>

Cost Complexity of Pricing Decisions for Exporters in Developing and Emerging Markets

2001 ◽  
Vol 9 (3) ◽  
pp. 19-40 ◽  
Author(s):  
Mary Anne Raymond ◽  
John F. Tanner ◽  
Jonghoon Kim
Keyword(s):  
United States ◽  
Emerging Markets ◽  
Emerging Market ◽  
The United States ◽  
International Markets ◽  
Future Research ◽  
Pricing Strategies ◽  
Pricing Decisions ◽  
Difficult Time ◽  
The Cost

As previously protected and emerging markets continue to open up for international trade, export firms often have a difficult time developing marketing strategies, particularly pricing strategies. However, few studies focus on the pricing practices of export firms, which makes it difficult to understand whether the same pricing strategies apply across markets, particularly in emerging markets. Using a framework of price complexity, the authors examine and compare the cost variables that are factored into price (price complexity) by export firms in the United States and Korea. The authors also investigate and compare some important noncost factors that influence pricing decisions for exporters in both their domestic and international markets. The results show that firms from the United States, a developed market, tend to factor more cost variables into price than do firms from an emerging market such as Korea. On the basis of the results of the study, the authors discuss implications for exporters and future research directions.

Expatriate academics in Malaysia: motivation, adjustment, and retention

2018 ◽  
Vol 37 (3) ◽  
pp. 299-308 ◽  
Author(s):  
Christopher Richardson ◽  
Hsin-Wei Wong
Keyword(s):  
Emerging Markets ◽  
Host Country ◽  
Design Methodology ◽  
Public Universities ◽  
Emerging Market ◽  
Motivating Factors ◽  
Structured Interviews ◽  
Advanced Country ◽  
Content Type ◽  
Advanced Economies

Purpose Existing studies on expatriate academics (EAs) are primarily set in advanced-country settings, thus overlooking the EA experience in developing and emerging markets. With this in mind, the purpose of this paper is to investigate the motivating factors behind EAs taking up jobs in Malaysia, and their adjustment and retention experiences in their host country. Design/methodology/approach The authors conducted semi-structured interviews with 17 EAs working in four public universities in Malaysia. Findings Among the chief motivating factors for expatriation were familiarity with the country, the perceived desirable cultural/religious environment, and favourable research environment. Adjustment-wise, there was something of a mixed experience, with most adjusting well socially, but many citing disappointment with work. Such sentiment has contributed to reducing retention plans among several of the respondents. Originality/value The study explores the EA experience in the context of an emerging market. At present much of the literature focuses on EAs working in advanced economies. This paper indicates that the motivation, adjustment, and retention cognition of EAs in emerging markets may not be entirely consistent with what previous studies have suggested.

Banks, Firms and Trade Finance Infrastructure in Albania

2016 ◽  
Vol 1 (4) ◽  
pp. 192
Author(s):  
Dorina Çumani
Keyword(s):  
International Trade ◽  
Trade Credit ◽  
Critical Role ◽  
Political Risk ◽  
Risk Profile ◽  
Trade Finance ◽  
Domestic Trade ◽  
Business Opportunities ◽  
Political Unrest ◽  
Risk Situation

Firms engaged in international trade face tosome risks, which are either not present or less present for the domestic trade. All, firms- SMEs or Companies contain elements of risk, but when they trade internationally, the risk profile is different than trading home. These include commercial risk, political risk, exchange and the country risks, such asthe possibility ofwar, political unrest, or unexpected import bans or tariffs, act. Banks play a critical role in facilitating international trade by guaranteeing international payments and reducing the risk of trade transactions in exports or imports. The effect of insured trade credit on trade is very strong and remains stable over the cycle, in crisis and non-crisis periods (WTO, 2012). By shortening the time of production, delivery, approved credit, the risk situation can be improved and in the same way as liquidity and profitability (Anders Grath 2008). If Albanian traders control the risks they can expanding exports into new markets and it can be very profitable. Using trade finance and reducing risks Albanian firms will be able to develop and take advantage of business opportunities. The trade finance infrastructure of Albaniaisthe institutions, laws, regulations and other systems related to the following three activities

Commodities in International and Emerging Markets

2018 ◽  
Author(s):  
Kamal Smimou
Keyword(s):  
Business Cycle ◽  
Emerging Markets ◽  
Emerging Market ◽  
Trading Strategies ◽  
Emerging Nations ◽  
Economic Significance ◽  
Portfolio Strategy ◽  
Bond Portfolio ◽  
The Business Cycle ◽  
Global Investors

This chapter seeks to elucidate the relations of U.S.-listed global commodity futures, the business cycle, and stocks and bonds of emerging markets. It shows that global investors poised to benefit from investing in emerging market securities can concurrently learn from and better understand the dynamic intermarket relations when establishing such trading strategies. Investment in emerging markets can enhance the performance and sturdiness of an equity or bond portfolio strategy. Evidence lends support to the conjecture that a subtle contemporaneous and occasionally trailing effect exerted by the movement of global commodities on the business cycle exists. Global commodities also affect equity and bond market dynamics. The evidence also reveals differences in terms of economic significance and magnitude among selected emerging nations and across various commodities.

Consumer Behavior in Emerging Markets

2018 ◽  
pp. 218-240 ◽  
Author(s):  
Raquel Castaño ◽  
David Flores
Keyword(s):  
Consumer Behavior ◽  
Emerging Markets ◽  
Emerging Market ◽  
High Income ◽  
Future Research ◽  
Psychological Processes ◽  
Developed Markets ◽  
Contextual Characteristics ◽  
Initial Framework

Emerging markets are substantially different from markets in high-income, industrialized societies. While many aspects of consumer behavior are the result of inherent psychological processes and are, thus, generalizable across countries and cultures, the specific contextual characteristics of emerging markets can significantly influence other aspects of consumer behavior. In this chapter, we explore the behavior of emerging market consumers. This chapter reviews the existing literature and proposes an initial framework delineating the main differences between emerging markets and developed markets consumers that describe how consumers in these societies recognize a need for, select, evaluate, buy, and use products. The chapter discusses the issues and contributions of the research on emerging consumers and presents implications of extant research for international managers. Finally, the chapter elaborates on an agenda for future research in this area.

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