The Effects from The U.S. and Japan to Emerging Stock Markets in Asia and Vietnam

The subprime mortgage crisis in the U.S. in mid-2008 suggests that stock prices volatility do spillover from one market to another after international stock markets downturn. The purpose of this paper is to examine the magnitude of return and volatility spillovers from developed markets (the U.S. and Japan) to eight emerging equity markets (India, China, Indonesia, Korea, Malaysia, the Philippines, Taiwan, Thailand) and Vietnam. Employing a mean and volatility spillover model that deals with the U.S. and Japan shocks and day effects as exogenous variables in ARMA(1,1), GARCH(1,1) for Asian emerging markets, the study finds some interesting findings. Firstly, the day effect is present on six out of nine studied markets, except for the Indian, Taiwanese and Philippine. Secondly, the results of return spillover confirm significant spillover effects across the markets with different magnitudes. Specifically, the U.S. exerts a stronger influence on the Malaysian, Philippine and Vietnamese market compared with Japan. In contrast, Japan has a higher spillover effect on the Chinese, Indian, Korea, and Thailand than the U.S. For the Indonesian market, the the return effect is equal. Finally, there is no evidence of a volatility effect of the U.S. and Japanese markets on the Asian emerging markets in this study.

Does Online Ratings Matter? An Integrated Framework to Explain Gratifications Needed for Continuance Shopping Intention in Pakistan

Due to the phenomenal growth of e-commerce, online shopping has recently become a worldwide trend. This fosters many online shopping platforms to enter into Asian emerging markets, which evolves a need to understand online decision-making processes in this particular context. Addressing this gap, our study initialized an integrated framework based on Uses and Gratification theory and the Cognitive–Affect–Behavior paradigm to examine the impact of gratification elements on customer satisfaction and convenience enforcing continuance shopping intention. Moreover, we also conceptualize the moderating role of online ratings in our study. In total, 317 valid questionnaires from Pakistani online shoppers were incorporated to statistically test our model using the Structural Equation Modeling (SEM) approach in Amos. Besides, the results confirm the positive impact of layout and functionality on customer satisfaction and convenience, while the impact of PEEIM has been found insignificant. Furthermore, customer satisfaction and convenience are found to be the imperative predictors of continuance shopping intention. Our findings exhibit that a high level of online rating strengthens the direct effect of satisfaction and convenience on continuance intention. Theoretical and practical implications for future scholars and e-commerce shopping platforms are discussed.

Intellectual capital, bank stability and risk-taking: evidence from Asian emerging markets

Purpose The purpose of this paper is to investigate the impact of intellectual capital (IC) efficiency on the banks’ risk-taking and stability of Asian emerging markets. Design/methodology/approach This study uses a sample of 204 listed banks from 12 Asian emerging countries for the period 2010 to 2019. Data were analyzed using Ordinary Least Squares regression and checked for robustness using system generalized methods moment (GMM) estimation. The dependent variable of bank stability is measured using Z-score-based return on assets (ROA) and return on equity (ROE). The second dependent variable of bank risk is proxied by the standard deviation of ROA, ROE, non-performing loans and loan loss provision. Findings The results suggest the IC efficiency has no association with bank risk-taking and stability. The findings lend no support to the resource-based theory. The robustness of this result is confirmed by the system GMM estimation. However, support is found for the competition fragility view as high market power is associated with low risk-taking. The IC subcomponents, human capital efficiency (HCE) report a negative coefficient for bank risk-taking thereby having no support for the hypothesized relationships. Diversified banks with a higher deposit to total asset ratio resort to high risk-taking. Research limitations/implications IC efficiency does not have an impact on the bank’s risk-taking behavior and stability for Asian banks. Managers can use these findings to improve their IC and boost investor confidence. Regulatory authorities should increase its monitoring function of banks when the GDP decreases as risk-taking behavior are galvanized during this period. Originality/value This research is one of the first to provide empirical evidence of IC efficiency’s relationship with bank stability and bank risk-taking. The implications are useful for policymakers, managers and governing bodies to enhance the banks’ IC efficiency.

Foreign Direct Investment Spillovers and Economic Growth: Evidence from Asian Emerging Countries

Research on FDI in promoting economic growth has been the focus of recent decades, especially in developing countries. Foreign direct investment can be one of the main objectives in increasing economic growth. FDI is assumed to indirectly contribute to economic growth through a spillover effect on the absorption capacity of a country by increasing the stock of human capital and the quality of institutions. This study aims to analyze the spillover effect of FDI on economic growth in Asian emerging markets. The data were analyzed using dynamic panel regression (GMM) during 2008-2017 period with STATA 14 software.The results in this study strongly indicate that the spillovers of FDI is proven to be able to drive economic growth through human capital and institutions in Asian emerging markets.

Liquidity Synchronization, Its Determinants and Outcomes under Economic Growth Volatility: Evidence from Emerging Asian Economies

This study investigates the country-level determinants of liquidity synchronization and degrees of liquidity synchronization during economic growth volatility. As a non-diversifiable risk factor, liquidity co-movement shock spreads market-wide and thus disrupts the overall functioning of the financial market. Firms in Asian markets operate in legal and regulatory environments distinct from those of firms analyzed in the previous literature. Comprehensive analyses of liquidity synchronicity in emerging markets are limited. A major knowledge gap pertaining to Asian emerging markets serves as the primary motivation for this study. Seven Asian emerging economies are selected from the MSCI emerging market index: Bangladesh, China, India, Indonesia, Malaysia, Pakistan and the Philippines for analysis from 2010 to 2019. The empirical findings show high levels of liquidity synchronicity in weaker economic and financial environments with low GDP growth, high inflation and interest rates and underdeveloped financial systems taking the form of low levels of private credit. Liquidity synchronicity is also affected by poor investor protection, political instability, weak rule of law and government ineffectiveness. Moreover, levels of liquidity synchronicity are higher in a period of economic growth volatility.

Market Manipulation in East-Asian Markets: A Regulatory Overview

This paper systematically reviews and examines the regulatory perspective of market manipulation in East Asian emerging markets. Keywords such as market manipulation, corporate fraud, market misconduct, financial regulations, corporate governance practices, institutional quality, and enforcement system for a search in the prominent academic literature databases are used. The studies related to the market misconduct and regulatory overview tied with these keywords are identified and selected for the systematic review. The review of extant literature suggests that the regulators are playing an important role in regulating the market to prevent market manipulation and market misconduct. The review also suggests that emerging economies are facing the issue of low institutional quality, absence of law enforcement agencies in the enforcement process, and definitional vagueness in relation to market manipulation. However, the findings suggest that enforcement mechanisms against market manipulation may discourage market abuses in both emerging and developed markets. The findings of this research offer some challenges and future directions in case of future market manipulation that potentially affect the market integrity of the firms. Notably, the technological changes in the financial markets often lead to regulatory challenges.

The Effect of On-the-Job Training and Education Level of Employees on Innovation in Emerging Markets

This study investigates the effects of on-the-job training and education level of employees on innovation in emerging markets using sample firms from BEEPS 2013 (Business Environment and Enterprise Performance Survey 2013) datasets provided by the World Bank. The Heckman two-stage regression model is used in order to control for endogeneity over a final sample of 10,366 firms in Eastern Europe and Central Asia. To estimate innovation of firms, five indicators of innovation (product, process, organizational, marketing innovation, and R&D investments) are considered. The results of the study suggest that both on-the-job training and education level of employees have significant and positive impact on all forms of innovation. This finding implies that firms in Eastern European and Central Asian emerging markets can promote innovation by offering more on-the-job training programs or recruiting more educated employees.

Predictors of fast-fashion-oriented impulse buying: The case of Vietnamese millennials

During the last few years, global fast fashion retailers have been penetrating Asian emerging markets and Vietnam is not an exception. This study explores both external and internal factors, contributing to the fashion-oriented impulse buying of Vietnamese millennials and then investigates the impact of these determinants on fashion-oriented impulse purchase. Both qualitative and quantitative approaches were conducted in the empirical study. It is found that emotion and hedonic value along with fashion involvement, sensory cues and in-store promotion respectively influence fast-fashion oriented impulse purchase. These findings help fast fashion retailers understand the impulse buying behavior of young Vietnamese consumers so that they can effectively elaborate retailing-mix strategy to boost the sales and thus sustainably grow the business.