ISSN: 1813-0534
 

 

 

 

 

 


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Volume 3 No 2 August 2007

FINANCE IN VIETNAM POST 1986

Vo, Xuan Vinh*School of Economics - University of New South Wales
Nguyen, Van DinhBusiness School - National Economics University – Hanoi - Vietnam

ABSTRACT

This paper documents the Doi Moi economic reform process in the financial sector in Vietnam over the last two decades and investigates the impacts of financial development, financial investments including foreign direct investment, domestic state and private investment on economic performance. This paper also provides analyses for the benefits and costs of the open economy of which Vietnamese government aims to achieve. In addition, we discuss the problem associated with the increased trend of Vietnamese financial integration and provide comparison with other countries in the Asia-Pacific regions.


A Static Relatedness Analysis of U.S., Japan, and Hong Kong Stock Markets Returns Volatility: Using the Trivariate Asymmetric GARCH Model

Wann-Jyi Horng, Associate Professor, Department of Hospital and Health Care Administration, Chia Nan University of Pharmacy & Science, Taiwan.
Ju-Lan Tsai, Graduate Student, Graduate School of Finance, Lung-Ting University, Taiwan

ABSTRACT 

This paper studies the association and the model construction of the U.S., the Japan, and Hong Kong stock markets. In this paper we will use the heavy-tailed Student’s t distribution to analyze the proposed model, then construct a trivariate asymmetric GARCH (1, 2) model to evaluate the association and there exists an asymmetrical effect among the three stock markets. The result of empirical analyses also shows that U.S. stock market returns positively affect the Japan and Hong Kong stock market returns, and the volatility of the three stock market returns interact with one another. Furthermore, U.S stock market returns of one day before affect the stock markets of the Japan and Hong Kong. The empirical result also discovers that the U.S., Japan, and Hong Kong stock price market return volatilities have an asymmetrical phenomenon in the sample period.
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Valuing Private Equity—The Case of Huntsman Chemical
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Susanne Behrendt and Joel N. Morse, University of Baltmore,USA

ABSTRACT

In the first section, we present the theory and the motivations of private equity valuation. Three of the most commonly used valuation techniques are explained in detail. In the second section, we apply the suggested valuation methodologies to a real-life example, the Huntsman Corporation. The unique contribution of this paper is to test several valuation methods by applying them to a company that went public. Thus for Huntsman, a rich data set is available, as well subsequent traded prices, which facilitate comparing the results of the techniques of private equity valuation to the market’s subsequent valuation. The recent wave of private equity buyout activity makes the valuation techniques of the paper relevant.
 

 

 

BANKING RETURNS AND MONETARY VARIABLES IN PERIODS OF ECONOMIC STABILITY: AUSTRALIAN EVIDENCE

John Simpsion,JohnEvans ,Curtin University of Technology,Australia and Malaysia

 ABSTRACT 

The purpose of this study is to examine dynamic interactions and long-term equilibrium relationships between banking stock returns and key monetary variables in a period of relative economic stability, post financial deregulation in Australia. The importance of the study lies in its demonstration of banking market efficiency under these environments supporting rational expectations in Australian banking. Vector autoregressive models are applied to analyse optimally lagged data. In a bivariate bank stock returns model which includes interest rates and exchange rates there is evidence of cointegration. Consistent with theory, Australia’s bank stock returns and long-term interest rates are negatively related. Long-term interest rates are exogenous. The study is also important as it demonstrates that in these environments, interest rates and exchange rates assist in the forecasting of Australian bank returns. In accordance with theory, contractionary monetary policy implementation leads to lower banking stock returns and expansionary policy will have the opposite effect.

 

 

An Empirical Study of Closed-end Funds and Open-end Funds

Howard Qi, Michigan Technological University

Maria Alikakos, former student in the Department of Finance at f Syracuse University
Yu Cai, Michigan Technological University

ABSTRACT 

Previous studies show that the managerial ability may be a driving force in the fund performance. Open-end and closed-end funds have different mechanisms for changes in investors’ beliefs about managerial ability. Open-end funds are forced to have their price equal to NAV each day and investors move their capital in and out of the fund, while closed-end funds adjust their returns. Some predict that closed-end fund managers are more likely to have established reputation. Taken together, if true, closed-end funds should on average exhibit better performance when risk and return are considered. Our empirical study aims at this issue head on. Our findings support the managerial-factor line of theories.


Fuzzy Underwriting Systematic Risk of Insurance : Some Evidence from Taiwan
 

Li-Hua Lai, Department of Risk Management and Insurance
National Kaohsiung First University of Science and Technology Kaohsiung, Taiwan

ABSTRACT 

The purpose of this paper is to construct and evaluate the fuzzy underwriting systematic risk made by major lines in Taiwan¢s P/L insurance company, including the insurances of fire, automobile damage, marine cargo and aviation are the symmetric or asymmetric triangular fuzzy numbers. The data was used to study fuzzy underwriting systematic risk modes of the insurance company investigated, and we determinate the lower and upper limits of the fuzzy underwriting systematic risk associated to the various alpha-level of the fuzzy numbers. Our results show that the best-fitting parameters of the model from our data are the asymmetric triangular fuzzy numbers. The skew factors and ranking with risk attitudes of the evaluator to the underwriting risk in each line are determined, which could be used to perform the forecasting of the underwriting systematic risk. These results may be found in other countries.



Willingness to Take Financial Risk and Creditworthiness Evaluation
 

Thien Sang Lim, Zatul Karamah A.B.U. and Zaiton Osman
School of Business and Economics, Universiti Malaysia Sabah

 ABSTRACT 

In view of the rising bankruptcy cases, the authors suggest that banks should include the determinants of willingness to take financial risk in creditworthiness evaluation process. This call is made as financial risk taking activities involving borrowers and guarantors could adversely affect their current and future ability to fulfil loan repayment obligations. The research found that if all else is held constant; there is significant difference between genders in term of willingness to take financial risks. Significant differences also exist between the singles and those who are married. Consistent with literature, the study found the level formal education and financial knowledge relate positively to willingness to take financial risks. Same relationship is also found between level of income and financial risk taking. The study found an interesting finding that contradicts with literature and western evidence. It is found that birth order correlates negatively to willingness to take risk. The contradiction may be caused by the different in the norms and values between the east and the west.


 

A behavioural approach to the traditional finance paradigm: Behavioural finance and its underlying theories

Takemi Fujikawa
University of Western Sydney, Australia

ABSTRACT

Behavioural finance is a relatively new field of finance that studies behaviour of financial practitioners and the subsequent effect on financial markets. Behavioural finance provides a key to solve a question on the existence of inefficient financial market and irrational investors on the market. This paper provides an introduction to behavioural finance, focusing on some underlying theories which behavioural finance is based on.





Using Horizontal Mechanisms to Improve Supply Chain Performance

Dr. Archie Lockamy III, Samford University School of Business, Birmingham, Alabama
Dr. Kevin McCormack, North Carolina State University, College of Management, Raleigh, North Carolina USA

ABSTRACT

  Supply chain management (SCM) is often described as a philosophy focused on improved horizontal intra- and inter-organizational integration. The research literature theorizes that improved supply chain integration should result in enhanced supply chain processes, which should lead to superior supply chain performance. Sales and Operations Planning (S&OP) is a process that provides management with the ability to strategically direct its businesses to achieve competitive advantages by integrating customer-focused marketing plans for new and existing products with the management of the supply chain. Additionally, horizontal mechanisms are frequently deployed within the S&OP process. These mechanisms are defined as structural overlays (such as roles and groups) and non-structural devices (such as physical co-location) that are designed to facilitate intra- and inter-organizational collaboration and integration. This study investigates the following horizontal mechanisms deployed within the S&OP process and examines their relationship to supply chain performance: informal mechanisms, formal mechanisms, integrator roles, and network mechanisms. The results show that the use of informal mechanisms to enhance collaboration and integration has the strongest relationship to supply chain performance, followed by formal mechanisms, integrator roles, and network mechanisms. Using these results, the study discusses the implications of the findings and suggests several avenues for future research.



OPTIMAL INVENTORY MANAGEMENT DECISIONS WITH A FLUCTUATING CURRENCY EXCHANGE RATE MODEL

Tekle Wanorie, Northwest Missouri State University,USA.

ABSTRACT

This paper examines inventory acquisition decisions utilizing a currency exchange rate model. Many nations, especially the so-called emerging economies, often import raw materials and commodities from other nations. Companies in these nations face fluctuations resulting from a fall or rise in local currency. In addition to the purchase price, these companies are also expected to pay importation duties. At any give time, t, the purchaser would observe the exchange rate and decide whether to place an order. If any order is to be placed, should it include quantity to cover the demand for the period after the lead time or include the demand for multiple periods thereafter?



Logistics Outsourcing: The Use of Third Party Logistics Services in Malaysia

Abdul Latif Salleh, Faculty of Business & Accountancy University of Malaya, Malaysia

ABSTRACT

As globalization emerged as a major force shaping business strategies, many firms have embarked on a mission of developing products for a global market. Such development has led to dramatic growth in external trades and increasing demand for logistics services. The need to source components globally and the increasing emphasis on time-based competition have, in turn, called for improved performance on the part of logistics service providers. The use of third party logistics service providers has gained prominence in this context. This paper examines the usage of third party logistics services among companies in Malaysia. An exploratory study was carried out to determine the extent to which Malaysian firms use the services of logistics companies, the decision making process involved in choosing logistics providers, and the impacts of such services on the firms involved.



FACTORS INFLUENCING VOLUNTARY ANNUAL REPORT DISCLOSURE BY TRADING AND SERVICES COMPANIES: MALAYSIAN EVIDENCE

Hafiza Aishah Hashim, Universiti Malaysia Terengganu, Malaysia

ABSTRACT

 This study examines the factors that influence the extent of the voluntary disclosures contained in the annual reports of trading and services sector in Malaysia. The four variables tested are firm size, assets-in-place, profitability and type of auditor. The empirical evidence suggests that firm size and profitability are statistically related to the level of information voluntarily disclosed by trading and services companies in Malaysia. These findings are consistent with the predictions of agency theory. However, no significant effects due to asset-in-place and type of auditor are found in this study.


 

Customer-Choice in Globalize e-Marketing: Why Crafting and Executing Ethics Matters for ‘Trusted’ Online Transactions

Mohammed M. Nadeem, National University, CA, USA

 ABSTRACT

 As more and more e-marketing processes and transactions are moved online, the marketing managers who lead and manage it are at the forefront of decisions with serious ethical implications. The debate over leadership in crafting and executing ethics in global e-marketing is not new. What is new is the central role of trust, and technology in some of the most important e-marketing ethic issues of the day in a globalize world: the ownership of personal data, and the obligations created by extended e-marketing partnerships. How these controversies impact mature, growth, and emerging markets and the related processes involved with technology continues to grow? What ethical issues are senior marketing executives grappling with in connection with cutting-edge online transactions? And where does e-marketing leadership go for guidance on ethically ambiguous situations? Far from self-evident, the answers are critical for all the stakeholders of global organizations interested in a sustainable competitive advantage.



The law of small numbers: Sequential decision making under ambiguity

Takemi Fujikawa, University of Western Sydney, Australia

Abstract

 This paper investigates sequential decision making experimentally. I present an economics experiment and its results to show remarkable findings. The experiment was conducted under the situation in which the payoff distribution available to the subjects was limited to either favourable distribution or unfavourable distribution. Experimental results revealed that the law of small numbers was observed.




Testing the Mean for Business Data: A Non-traditional Approach
 

Jiajuan Liang,Pawel Mensz,Wentworth Boynton College of Business,University of New Haven,U.S.A.

 ABSTRACT 

Testing the mean for business data is a major topic in elementary business statistics teaching and applications. Traditional tests such as the two-sample t-test and the F-test in one-way analysis of variance for comparing two or more population means require two conditions: sample data are independently collected and have equal variances for all populations. However, it is quite common that business data collected at different times or from different sources may not satisfy the independence condition or the equal-variance condition and therefore, traditional tests for comparing the means of this type of data are no longer statistically justifiable. In this paper, we introduce a series of F-tests that are applicable to both independent and dependent data from different populations with equal or unequal variances. The tests were developed by using the technique in multivariate statistics. The performance of the new F-tests is studied by the Monte Carlo method. Applications of the new F-tests are illustrated by two real business data sets.



Improving the accuracy of the preference rating in conjoint analysis A combinatorial optimization approach

P.K. Viswanathan
G. Balasubramanian
M.J. Xavier

.ABSTRACT 

Modeling of consumer preferences involving multi-attribute alternatives has been one of the major activities in consumer research for the past three decades. In this context, conjoint analysis is a powerful contender for predicting consumer preferences for multi-attribute options in a wide variety of products and services. There are various methods of extracting consumer utilities. Changes in the utilities associated with the attributes chosen can lead to discovery of new market segments or innovative product design.

The purpose of this paper is to show how by adopting an optimization approach, it is possible to improve the accuracy of the utilities as well as the goodness of fit of the estimated response variable in terms of its closeness to the actual values. As the improvement in the predictive power of utilities has a significant impact on the emerging market segments, we focus our discussion in this paper on the alternative models and the results under the optimization platform with the help of a case study in mutual funds .


Issues and Motivations Surrounding Internet Use in Kuwait

Hasan A. Abbas, Department of Quantitative Methods and Information Systems College of Business Administration, Kuwait University, KUWAIT

 ABSTRACT

Advances in the internet have brought about a revolution in the information world with an impact youn various aspects of every day. However, although there are many advantages for the use of internet, there are stll several problems and issues that arise on many levels, e.g., technical, political, ethical, and social. This field study is carried out to achieve three objectives. First, to examine the nature of emerging problematic issues surrounding the use of the internet in Kuwait. Secondly, to explore the motivating factors that cause internet use by Kuwaiti people. Thirdly, to explore associations between the study’s demographical variables and the found factors of problematic issues. These objectives have been measured in a previous study done by the author (Abbas and Alshawwaf, 2003). This study, however, reviews possible chages that might have occurred in the period between both studies. The study was carried out by using a questionnaire. The findings of this study have direct implications in increasing our understanding about the prevailing internet issues and challenges, which could hinder the successful implementation of electronic commerce in Kuwait in particular and the Gulf region in general.



Using a Sociometric Approach to Examine the Relationships between Communication Technology Use, Organizational Structure, Individual Characteristics and Performance


Roslin V Hauck, Illinois State University,USAn

ABSTRACT

With the explosion in the use of communication technologies in organizations, there is a growing need to better understand how these technologies are actually being used. While much of the research studying technology use have looked primarily at individuals and how they use technology, the proposed research takes a different approach by looking at the patterns or networks of electronic communication between individuals. Taking this sociometric approach will not only allow for the investigation of communication technology use, but will also describe these effects in terms of the existing organizational structures. This study addresses two key research questions. The first deals with comparing the patterns of communication technology use with the organizational structure that currently exists. The second question examines the social networks created from the use of communication technology to uncover and describe the individuals who serve as potential knowledge assets in the organization. The significance of this interdisciplinary research is to greatly enhance tour understanding of social networks in organizations, leading to implications to both practitioners and researchers involved in technology adoption and organizational behavior.
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Total Quality Management and Islamic Leadership Communication on Job Satisfaction in the Technical Organizations in Melaka

Dr. Raja Roslan Raja Abd. Rahman
Prof. Dato’ Abu Bakar Mohd. Yusof
Datuk Prof. Madya Dr. Abu Bakar Mohd. Diah
Universiti Teknikal Malaysia Melaka
Ayer Keroh, Melaka

 ABSTRACT

 Total Quality Management (TQM) leads a positive impact on job satisfaction, facilitates the employees' ability to work together, and leads the staff to improve their work and builds leadership communication in the technical organizations at Melaka. While, in term style of leadership communication, most of middle management such as manager and assistant manager and executives level in are practicing the good leadership communication. There is existing a two-way communication amongst the staff especially in the meeting, discussions, and teamwork. In order to make sure quality management achieve the objectives, the good leadership communication amongst the staff and the involvement of the staff in quality practice is important. This because leadership communication is most important tool and is at the heart of all organizational operations. Leadership communication can be the basis for understanding, cooperation, teamwork and positive action, without it such goals would be undermined. It is not only in the one way communication but it is better in the two-way communication. Two-way communications can gives more change to the staff to involve in discussion or meeting. When this achieve, the environment in the organization like a 'family spirit'. Obviously, there is a positive significance between leadership communication and quality management in Islamic perspectives on job satisfaction amongst the staff in the technical organizations at Melaka.

 

A Kolb-Based Experiential Learning Strategy towards the Development of Students Competency

Norasmah Othman,Universiti Kebangsaan Malaysia,Malaysia
Rohaila Yusof,Universiti Pendidikan Sultan Idris,Malaysia

ABSTRACT

The purpose of this paper is to suggest to accounting educators to explore the possible application of experiential learning strategy in order to improve students’ competency. Previous studies indicated that the traditional way of delivering accounting courses was not effective enough in improving students’ performance and perceptions towards accounting courses. An overview of the results of past research revealed the two types of skills needed to be emphasized in teaching and learning of accounting. This study links the views on the theory of development to the Rainsbury Competency Model in explaining the inadequacy of course delivery in accounting programmes. A combination of cognitive and behavioral skills is seen as vital towards competency development. A pre-experimental data on a total number of 145 Introductory Accountings students were cited as an example of the existence of problems in students analytical and behavioral skills. Kolb’s Model of experiential learning has gained some attention in teaching courses which involved practical work such as nursing and engineering. This theory presents alternative ways on how students perceive and process information which is lacking in the traditional teaching strategy. Accounting education is a discipline which is being criticized as too technical and lacking emphasis on the holistic aspect of education. A well-planned application of the Kolb theory should provide an alternative method of training students in accounting programmes.

 

 

Exploring the Characteristics of Technology-based Firms: Malaysian Multimedia Super Corridor (MSC).

Izaidin Abdul Majid, Universiti Teknikal Malaysia Melaka,
Kamariah Ismail, Universiti Teknologi Malaysia
Amir Aris,Universiti Teknikal Malaysia,Melaka.

ABSTRACT

This study explores the common characteristics of Malaysian-owned firms in the Malaysian Multimedia Super Corridor (MSC) as a new phenomenon in the Malaysian business context. The MSC is considered as Malaysia’s engine of growth in the knowledge-based economy, which is perceived as essential in the pursuit of making Malaysia globally competitive. In short, this study is investigating the product of a government policy initiative. The policy initiative is seen as advancing the country to the 2020 vision and the specific measure is to create cluster of firms in related technologies with a view to developing something like the Silicon Valley of Malaysia.

The common characteristics of high-tech Malaysian-owned SMEs operating in the MSC which were explored in this study include the firms age, the founding team members, sales, corporate structure, main business activities and the impact of the Asian financial crisis of the 1990s had on the firms. This will provide some descriptive analysis of the firms in order to present a clear picture and better understanding of the nature of the sample firms.

 

 



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