Search

Purpose Although most empirical studies find that competitive bidding can reduce the interest cost, the municipal bond primary market is dominated by negotiating offerings. The purpose of this paper is to investigate this dilemma by empirically testing two hypotheses: self-selection bias and decision inertia hypotheses. Design/methodology/approach Logistic regressions and Heckman procedures are used to examine data from the California municipal bond primary market. Findings The paper finds that while information asymmetry does affect the selection of underwriting approach, self-selection bias cannot explain the cost difference between the two sale approaches. On the other hand, decision inertia has the highest explanatory power in the selection of sale approaches. Originality/value This paper provides a new explanation for the “competitive sale dilemma” from the perspective of decision inertia. The authors document that state and local governments show a greater propensity of adhering to previous choices, particularly in a context in which the outcome is uncertain or actors have little knowledge in comparing the outcome of the alternatives.

Using the China Household Finance Survey data in 2011, the estimation results of structural equation modeling demonstrate that the respondents with higher time preference rate have a significant higher probability of investing in stocks, which implies that the short-term households will prefer stock investment. The social insurance programs and insurance policies held by the family will have a significantly direct positive effect in promoting stock investment and also a significantly direct positive effect on the respondent’s time preference, which could further indirectly increase the family’s stock investment. These results show that the safety-net built by the Chinese government, including the social security and commercial insurance, is very likely to attract more short-term investors into the stock market. These empirical results provide new evidences to explain the extreme volatility of Chinese stock market and also testify the policy effect of building an environment for people to possess property income in China.

This paper attempts to analyze the status of primary market response in Nepal using secondary data collected from annual reports of various capital market institutions of 22 years starting from 1993/94 to 2014/15. This paper follows descriptive research design and analysis has been carried out throughout accordingly. The study concludes that the total capital mobilization has been increasing during the study period implying there is transfer of capital from surplus sectors to the productive investments gradually. Ordinary shares including rights offerings has found more active in the primary market than that of other alternative market mechanisms. It means preference shares, debentures, mutual funds and citizen unit schemes have been found still unorganized in Nepal. initial public offerings is mainly dominated by the ordinary shares has been highly oversubscribed during the study period except in few cases. This particular case shows the public response towards primary market is found good. However, when we go through all other indicators the primary market has still found unsystematic, vulnerable and even small in size. There are a very limited number of merchant bankers as financial intermediary in the primary market. The liberalization policy has brought major changes in regulatory and institutional framework but the primary market has yet to be improved and advanced so that the corporate houses can benefit by designing optimum capital structure and investors are also benefitted by developing appropriate investment portfolios. More specifically, the primary market more dynamic ofter the introduction of federal republic system since 2006/07 in Nepal, though it is still unstable.The Journal of Nepalese Business Studies Vol. X No. 1 December 2017, Page: 56-68

In the wake of steadily declining oil prices, the naira-dollar (Nigeria-US) exchange rate came under severe pressure, leading to extreme volatility in the foreign exchange rate. This study seeks to explore volatility spillovers between stock market returns and the exchange rate due to speculation of foreign investors in the stock market. We employed a multivariate GARCH model (VARMA-AGARCH model) to model the transmission mechanism of mean return, return spillover and shock spillover between the stock market and the foreign exchange market, using their return series. Results indicate the presence of a transmission mechanism between these markets. Shock spillovers however showed a stronger uni-directional transmission of shocks from the stock market to the foreign exchange market without breakpoints. When breakpoints were considered, a bi-directional spillover pattern was observed across both markets. We thus bring into perspective the role played by foreign portfolio investors in determining the exchange rate of a small, open, emerging market economy. Short term capital flows into emerging market securities may thus distort the long-run equilibrium of the foreign exchange market.

This study explores and analyzes the correlation between enterprise–bank relationships and market quality to mitigate information asymmetry problems in the securities market. Loans issued by domestic and foreign banks to a sample of companies listed on the Taiwan Stock Exchange are examined to determine the quality of the enterprise–banking relationships according to the dimensions of loan limit, syndicated loan guarantees, and loan interest rates. Market quality is empirically analyzed according to bid–ask spread, market depth, and transient volatility. The results reveal that improvements to the quality of enterprise–bank relationships is reflected in the quality of information in the stock market, and requires reducing information asymmetry between buyers and the sellers. The findings of this study provide insights into the implications of enterprise–bank relationships and may serve as a reference for the general public about reducing information asymmetry when making investment decisions and for competent authorities when formulating policies.

Contribution of fisheries in the national economy of Bangladesh is substantial, particularly with reference to food consumption, nutrition, employment and export. The present study was designed to determine the changes of prices of marine fish at different levels of market and to determine various problems relating to marine fish marketing system in Bangladesh. This study used purposive sampling and data were collected from 168 stakeholders using interview schedule considering 10 major species of marine fish during 2014. Primary, secondary and consumer market were considered in the study. The study revealed that both marketing margins as well as marketing profit are relatively higher in consumer market followed by primary and secondary markets, where baparis and aratders are involved. Marketing costs for per kg of marine fish were estimated to be Tk 8.55, 1.10 and 4.50 for beparis, aratdars and retailers, respectively. Average marketing cost was lower in primary market (Tk 8.86/kg) compared to secondary market (Tk 9.99/kg) and consumer market (Tk 12.29/kg). The marketing system of marine fish in Bangladesh is yet to be developed and since this is facing a lot of problems including post-harvest losses, poor physical facilities, etc. Government and department of fisheries should take necessary action for development of marketing system of marine fishes.The Agriculturists 2017; 15(2) 79-87

The investor recognition hypothesis and the bonding hypothesis, which help us understand the market quality of stocks that are cross-listed on different stock markets, imply improved market efficie...

The aim of the study was to assess the co-existence of housing price limits eligibility for participation in the MdM program with indicators of income availability of housing in voivodship cities of Poland. Methodology of the study: The study examines the relation of price limits (qualifying the flat to participate in the program) to the average real estate market prices in voivodeship cities of Poland. The calculated indicators were compared with housing income availability indicators and the number of contracts established under the MdM program. The analysis was based on data of Bank Gospodarstwa Krajowego, National Polish Bank, and Local Data Bank for the years 2014-2015. Results: The research indicated that the price limit indicators under the MdM program were higher in cities with higher income housing availability on the secondary market, which, however, did not take place in the primary market. Potentially, it could have influenced greater use of funds under the program in cities with higher income housing availability. The analysis of the participation rates under the program indicates, however, that such a structure did not translate into regional variations in the use of support under the program.

Grocery auctions, as an outgrowth of the inefficiencies of the industrialized food system, repurpose unwanted, damaged, and overstock food that has been removed from the primary market. Based on ethnographic research conducted at grocery auctions in Maryland and Mississippi, this article examines how the spoils and waste of the capitalist industrialized food system are transformed into valued food. During the competitive play of bidding, the divergent needs and motivations of distributers and consumers intersect and collectively determine the value of food: distribution, rather than production, emerges as a central force in the creation of value. Focusing on the generative potential of value, I argue that the social dimensions of distribution enacted through bidding render the value-making process itself visible and expose the products of the industrialized food system as contested sites of engagement rather than hegemonic markers of value.

This research explores the time-to-sell (TTS) of green real estate. We employ data on primary market transactions in six newly developed multi-story condominiums—of which three are green a...

The phenomenon that often occurs when a company conducts an Initial Public Offering (IPO) is underpricing, which means that the stock price determination in the primary market is lower than the price of the same stock after being traded on the secondary market. This study examined the effect of firm size, firm age, public accountant reputation and profitability of the underpricing. The population in this research are the companies that did the Initial Public Offering (IPO) in Indonesian Stock Exchange in the period of 2017-2020. The selection of the sample in this study using the purposive sampling method and retrieved 147 samples from 192 companies who are doing an initial public offering in BEI 2017-2020. This research use the multiple linear regression analysis. The results from t-test (partially) showed that public accountant reputation significantly effected on underpricing. While the firm size, firm age and profitability didn’t significantly effected the underpricing. The results from F-test (simultaneously) showed that firm size, firm age, public accountant reputation and profitability significantly effected the underpricing. Keywords: Firm Age; Firm Size; Profitability; Public Accountant Reputation; Underpricing.

Purpose- Companies have to open up to new markets in order to develop and increase their competitiveness in the face of globalization and technological revolution. Target market selection is an important issue that needs to be addressed with priority in terms of efficient use of resources. Methodology- The problem of market selection is a multi-criteria decision-making problem due to its nature which requires the evaluation of different and sometimes conflicting criteria in the decision-making process. In real life problems decision makers’ choices and point of views can be vague which led to the development of fuzzy methods. The Fuzzy VIKOR method considers the uncertainties in the decisionmaking process, setting a compromise solution that provides the maximum group benefit for the majority and minimum individual regret for the opponent. Findings- In this study, Fuzzy VIKOR method is used to select primary market selection with the decision makers’ from 8 fresh fruitvegetable exporter companies and a compromise solution is found. Conclusion- In this study, Fuzzy VIKOR method is used to determine the target market selection for fresh fruit-vegetable companies. As a result of the evaluations made with the 8 exporting firms in the fresh fruit and vegetable sector, a compromise solution has been proposed as to which of the 5 target markets - UK, Netherlands, Saudi Arabia and Hong Kong - will be prioritized or the market will be selected in terms of expanding the existing market share.

This paper addresses the issue of impacts of central banks’ independence on stock market volatility. Using a simple theoretical macroeconomic model, we analytically find a positive link between stock prices volatility and central bank independence. By applying panel data analysis on a set of 29 countries from 1998 to 2005, sufficient evidence for this positive relationship is provided using two different measures of stock market volatility.

Using a broad sample of earnings announcements, we show that the initial stock market's response substantially increases and the post†earnings announcement drift becomes much weaker in the presence of more active pre†earnings option trading. We find that the strongest initial stock market's response originates from those announcements with higher pre†earnings option trading, fewer competing announcements, and made on non†Fridays. Our interpretation is that the heightened investor attention, as captured by higher pre†earnings option trading, fewer competing announcements, and non†Friday announcements, accelerates the stock market's response and mitigates the stock market under†reaction.

This article traces the development and expansion of early computer systems for managing and disseminating ‘real-time’ market data at the most influential stock market in the United States, the New York Stock Exchange (NYSE). It follows electronic media at the NYSE over a roughly ten-year period, from the time of the deployment of a computer called the Market Data System (MDS) through debates surrounding the National Market System and the passage of the 1975 Securities Acts Amendments. Building on research at the archives of the NYSE and the Securities and Exchange Commission (SEC), this history emphasizes the regulatory and managerial contexts in which market data became computerized. The SEC viewed market automation as both necessary for the viability of the securities industry and a mechanism for expanding regulatory oversight over the venues of stock trading. Moving from the MDS to later technical projects in the late 1960s and early 1970s, this article charts the changing meaning of electronic governance in a market increasingly conceptualized as a technical object. Adding to recent work in the social studies of finance and financial technologies, this history sites early NYSE computerization programs within managerial efforts to consolidate control over the clerical labor of financial markets, and in contests between regulatory and market institutions. It concludes by exploring the differing forms of electronic governance activated in these efforts to bring computers into the market.

We investigate the validity of two conjectures regarding the impact of cross-listing on managers' propensity to listen to the market in mergers and acquisitions (MA as a result, managers tend to ignore market signals in M&A deals. We find that managers of cross-listed firms from strong shareholder protection countries are more likely to listen to the market. Further analysis indicates that the likelihood to listen to the market differs by host market. While we do not find an association between cross-listing and listening to the market for firms cross-listed on the US regulated exchanges, there is some evidence that cross-listing on unregulated market affects the propensity to follow market signals. We find that listening to the market improves firm value and the impact is enhanced post cross-listing due to improvement in stock price informativeness.

In recent times political events started to exert more and more significant impact on national financial systems due to sharpening of political problems in various countries. Undoubtedly, their influence can be followed in price dynamics of stocks which are trading in the securities market. The need to understand political news impact on the market as a whole and its separate industries is faced by investors and market agents for proper orientation in market environment. Since this issue provides rather controversial results in different studies, the authors set the aim to investigate the Russian market with the use of GARCH models. Such approach allowed determining precisely the political events’ influence on return and volatility of market assets as well as leverage and clusterization effects. The obtained results may be beneficial for investors, operating in the Russian stock market, other market agents and specialists in the field of financial science.

We consider a profit-maximizing original equipment manufacturer (OEM) that produces a new product for the primary market. At the end of the first stage of product use, the OEM collects the used products (cores) and remanufactures them if they are eligible for remanufacturing; otherwise, the OEM sends them to material recycling. In the US and most European countries, the product take-back regulation mandated by the government holds the OEM accountable for the proper and safe treatment of end-of-life products in order to reduce their harmful environmental effects, and sets a collection rate target. In this paper, we take the collection rate of used products as an endogenous variable satisfying the set target and consider the uncertainty of the amount of collected cores qualified for remanufacturing. We formulate the problem and derive several optimal remanufacturing strategies for the OEM, depending on the inverse operating cost and new product manufacturing cost with and without the take-back regulation. Our major findings are: (i) The OEM should adopt the maximum (minimum) collection rate when the inverse operating cost is extremely low (high). (ii) A combination of the inverse operating cost and new product manufacturing cost leads to the optimal collection rate, thereby determining the new and remanufactured product prices, and remanufacturing quantity. (iii) A comparison between the cases with and without the take-back regulation indicates that, counter-intuitively, regulating the collection rate may not necessarily hurt the OEM.

One of the phenomena that occur in Indonesia capital market is underpricing. The underpricing phenomenon occurs when IPO shares are priced lower in the primary market than the closing price on the secondary market. The high level of underpricing can be detrimental to the company because the additional capital obtained through the IPO is not optimal, while the beneficiaries are investors because they get the initial return. This study purpose was to examine the influence of the components of Good Corporate Governance which include the board of commissioners, the independent board of commissioners, the board of directors and ownership concentration, non-financial variables, namely underwriter reputation and financial variables, namely Return On Assets (ROA) on underpricing. Samples were taken using the purposive sampling method. The number of samples finally used was 123 companies from all company sectors that conducted IPOs on the Indonesia Stock Exchange in the 2016-2019 period and experienced underpricing. This study used secondary data obtained from the prospectus, annual report, e-bursa and IDX Factbook in 2016-2019. The results of the multiple linear regression test show that variables including the board of commissioners, independent board of commissioners, board of directors and ROA have a significant negative effect on underpricing which means the larger/higher these variables can minimize underpricing. While the concentration of ownership and underwriter’s reputation did not influence underpricing.

We conduct an extensive study of underpricing in the euro area bond market and find strong evidence of underpricing. In cross-sectional regressions we find patterns that are consistent with bookbuilding-based theories of underpricing and inconsistent with liquidity-based explanations. The underpricing has increased considerably during the financial crisis and has remained at an elevated level since. We also show that secondary market liquidity in the euro area bond market is significantly lower in the post-crisis period than pre-crisis. These results are consistent with recent US evidence and may represent unintended side effects of new regulation enacted in the wake of the financial crisis, such as Basel III and the Volcker Rule. Furthermore, our evidence suggests that the ECB’s corporate sector purchase programs has led to a decrease in underpricing.

We study how the stock market in China responds to announcements by an environmental risk index and find that China’s stock market penalizes firms associated with unfavourable environmental news if...

A tie-in contract has frequently come under scrutiny for its role as an exclusionary device. A firm that is a monopolist in a primary market can utilize such contracts to exclude a more efficient rival in a secondary market. When the firms sell through competing retailers, the leveraging firm may offer tie-in contracts to the retailers inducing them to purchase both primary and secondary products entirely from it such that the rival is excluded. We examine whether such tie-in contracts are profitable for an incumbent firm under different conditions of (i) the ability to commit to prices by the upstream firms and (ii) downstream competition among the retailers. We show that when retailers compete in prices, then regardless of whether the entrant is able to commit to its own prices, an exclusionary tie-in strategy is profitable (not profitable) for the incumbent when it is able (unable) to commit to prices. However, when retailers compete in quantities, the entrant’s commitment ability does matter. Specifically, an exclusionary tie-in strategy (i) may be unprofitable for an incumbent when both upstream firms are able to commit to their prices, depending on the degree of cost advantage of the entrant; (ii) is always profitable when it alone can commit to its price; and (iii) is unprofitable when both upstream firms cannot commit to their prices. Our results extend to situations where the products are complementary or substitutes and where the retailers may be asymmetric in nature.

This study explores the impact of investment characteristics, mainly investment location relative to the firm's primary market, on financing choices by real estate investment trusts (REITs). Using a large sample of commercial property acquisitions, we show that REITs are 4-8% less likely to use secured (mortgage) debt when acquiring properties in their primary markets than elsewhere. The documented evidence supports a demand-side story for the relation between investment characteristics and financing. Moreover, the evidence is consistent with the hypothesis that REITs avoid mortgage financing in their primary markets to preserve operational flexibility in those markets. This article is protected by copyright. All rights reserved

We perform a comparative study on the gold-stock market relationship in U.S. stock market as a developed market and in Iran stock market as an emerging market. By considering appropriate variables for emerging markets and by providing a more proper methodology, we improve earlier studies. According to our findings, the relationship between stock market returns and gold price returns does not follow any specific regimes and that this relationship changes in short and long term returns. It is necessary to mention that in the present research, we did not consider this relationship in major structural changes in the economies and instead considered usual economic circumstances that investors are regularly faced with in their investment decisions.

Electronic trading has transformed foreign exchange markets over the past decade, and the pace of innovation accelerates. This formerly two-tier market (namely, the interdealer and customer market) is now evolving into a multi-tier market and transaction costs are only a fraction of their former level. Entirely new agents have joined the fray, including retail and high-frequency traders, while foreign exchange trading volumes have almost tripled to 5.3 trillion dollars daily according to Bank for International Settlements 2013. Market concentration among dealers has risen reflecting the heavy investments in technology. This paper outlines the players in this market and the structure of their interactions. It also presents new evidence on how that structure has changed over the past two decades. Throughout, it highlights issues relevant to market regulation and exchange rate modelling.

Conventional wisdom argues that competitive bidding, compared to negotiated sale, can reduce the interest cost of municipal bonds in the primary market. Studies correcting for self-selection bias have mixed findings. However, these studies are subject to some potential methodological issues. This study circumvents these pit-falls and provides an estimate of the heterogeneous average treatment effect (ATE). After correcting for the endogeneity bias of sale method and its interaction effect, on average competitive sale still significantly lowers the interest rate, but the interest cost advantage decreases as issuer experience increases.

Purpose The purpose of this paper is to investigate the real effects of primary and secondary equity markets on the post-issue operating performance of initial public offering (IPO) firms. Design/methodology/approach The author utilizes the intended use of proceeds as a proxy variable for the primary market and the investment-to-price sensitivity and the informativeness of stock prices as alternative proxy variables for the secondary market. The compositional data, and non-parametric quantile regressions which are more robust to outliers than standard least square regressions, are employed for Indonesian equity market over the period of 1999-2013. Findings While confirming that firm operating performance can be explained by the firm’s motivation to go public, the author also shows that the operating performance is positively affected by investment-to-price sensitivity and negatively affected by stock price informativeness. The stock prices affect investment decisions by the way that the more liquid a stock is, the more informative its price is, and the more relevant stock prices are in investment decisions. These findings still hold after controlling for ownership structure. Originality/value Departing from the existing literature, the author investigates the role of primary and secondary equity markets for firm performance in an integrated framework because both markets interact closely in reality. The author shows that public listed firms can benefit both from the capital-raising function of the primary market and from the informational role of the stock prices of the secondary market. A measure of stock price informativeness, 1−R2, however, must be understood in the context of thin trading in the sense that the level of liquidity affects the level of stock price informativeness.

We examine the role of venture capitals (VC) in Chinese entrepreneurial firms surrounding their initial public offerings (IPOs) on ChiNext. We find VCs are more likely to invest in entrepreneurial firms close to their registered location. Unlike developed countries, Chinese VCs cannot significantly improve firms' corporate governance and operating performance on ChiNext. These results indicate these VCs are more free-riders rather than value-added investors. The empirical findings suggest Chinese government should restructure ChiNext or reform primary market regulations to encourage VCs to make more value-added activities and improve the financing environment of small to medium-sized enterprises. VCs are still new on the ChiNext.

Two essential imperfections determine the degree of the financial sector development in an economy: lending frictions, which constrain the ability to extend loans to borrowers; and, trading frictions, which constrain the trading of these loans in secondary markets. I develop a dynamic general equilibrium model where long-term investment is the engine of growth to study macroeconomic consequences of financial development. In the model, long-term loans are extended to entrepreneurs in a primary market and then traded in a secondary market among financiers. In competitive equilibria, reductions in either lending or trading frictions enlarge the financial sector. Although financial deepening through low-cost lending is always welfare improving, financial deepening stimulated by low-cost trading could be detrimental to the society. I illustrate that a model qualitatively consistent with the U.S. financial development episode of the last 30 years should exhibit disproportionately large reductions in trading frictions relative to lending frictions.

India has seen a marked change in spectrum policy over the past decade from a legacy administrative regime to a more market oriented one wherein it has adopted auctions in the primary market, trading in the secondary market and has liberalised spectrum to make it technology and service neutral. It has faced numerous challenges, constraints, and legacy issues in its transition, thus providing a rich context for analysis. Using the case study of India, we developed a framework that highlights the various dimensions to be considered while migrating from an administrative to a market regime for spectrum management. The framework also helps to assess the current orientation of a spectrum policy regime and provides a direction for adopting a higher market orientation. We used the framework in the Indian context to show that while India had adopted market mechanisms, it had a low level of market orientation.

This study investigates the nexus between institutional quality and stock market development. The Autoregressive Distributed Lag Model (ARDL (1,1)) and ARDL bounds testing procedure (Pesaran et al., 2001) was adopted for the estimation. We used annual time series data that covers the periods 1985 to 2013. Institutional quality is measured with corruption control, democratic accountability and bureaucratic quality, while stock market development is measured with market capitalization ratio. The institutional quality captures the degree of transparency and the level of investors' confidence while market capitalization measures overall performance. In addition, we also accounted for the influence of the banking sector (proxy: ratio of credit to the private sector). We control for the influence of variables such as stock market liquidity and per capita income. The results of the bounds test suggest that institutional quality and market development move together in the long run. Further investigation also shows that corruption control and democratic accountability are key institutional measures that impact significantly on stock market development, suggesting that institutional quality promotes the degree of transparency and investors' confidence. Other variables such as stock market liquidity, bureaucratic quality and per capita income were also found to be important determinants of stock market development in Nigeria. Hence, given the above findings, the relevant authorities should increase their efforts to control the level of corruption through the enhancement of the regulatory framework that could ensure accountability and efficient monitoring of the market actors for the sustainability of investors' confidence and the promotion of stock market development in Nigeria.

This article discusses the segments of contemporary labour markets and identifies the causes of evolution and the present-day manifestations and mechanisms of segmentation. To this end, changes occurring in the world today and the progress of research into labour market phenomena over the last 25 years are analysed. The article also provides an insight into the various types of labour market segmentation that underlie its functioning, i.e. competition-driven segmentation, informational segmentation, network-based segmentation and behavioural segmentation. The theoretical underpinning of the article is the concept of a dual labour market made up of a primary market and a secondary market. The analysis offers two main conclusions. Firstly, the labour market segmentation that we observe today causes an expansion of its secondary segment. Secondly, to identify the contemporary face of labour market segmentation, many extensive studies of the institutional, economic, social and psychological aspects of this process are necessary.

PurposeBecause of chronic financial crises experienced during past several decades repeatedly and a failure to protect investors’ rights as a result, the world is looking for an alternative form of stock market for quite some time so that interests of all relevant stakeholders can be safeguarded. At the same time, from the perspectives of devout Muslims, the current form of stock market restricts a Muslim to make investments in the market because of several unsatisfying provisions from the viewpoint of the Islamic law known asShariah. This study aims to provide the criteria under which conditions of the IslamicShariahpermit making investments in the stock market. Hand in hand with that primary discussion, it has been eluded briefly why the IslamicShariahprinciples offer a better alternative against conventional practices of the stock market.Design/methodology/approachThis is a descriptive study based on the literature review.FindingsThis study explores the basic Islamic principles of investment in the stock market by revisiting the norms laid down byShariahand current global practices of Islamic stock market and indexes.Originality/valueThis study will work as a guideline for investors and market authorities to understand the originalShariahrulings and the benchmark rulings for investment or establishing full-fledged Islamic stock markets, indexes and mutual funds.

It is well-established that a manufacturer’s commonality decisions between related products are driven by trade-offs between cost savings from standardization and demand effects of customization. Prior research has examined these trade-offs in the context of product line design for a single geography where cannibalization is a primary concern. However, the insights from a single market may not readily apply when serving related products for different geographies where cannibalization ceases to be a concern. The downside of commonality for geographically separated markets arises from a mismatch in customer preferences, which results in disutilities. In this paper we model the trade-off between the consumer-side disutilities and the cost-side scale economies in the presence of demand uncertainty, and derive the optimal extent of commonality between products for both the markets in the context of two product development strategies: (i) primary market centric design (PMD) and (ii) design for multiple markets (DFM). Our insights from analytical and numerical analysis show that when consumers are very picky and market uncertainty is low, the DFM strategy outperforms the PMD strategy. Counter to the practice of introducing primary market centric products into emerging markets our study demonstrates the need for more customization, especially in small, but uncertain markets. Our research has important implications for automakers in integrating the diversity in tastes while making commonality decisions for multiple markets.

This study analyzes volatilities in the relations between stock mar-ket, bond market, and foreign exchange market in Vietnam from April 2014 through December 2015. Particularly, we address the questions of whether there exist sudden changes in correlations be-tween the markets to respond to volatility shocks and whether these changes are temporary or extended. By using VAR(p) – FIEGARCH(1,d,1) – cDCC and PELT approaches in combination with a regression estimation with dummy variables, our empirical results validate the interdependence between the markets, which is found to vary over time. More importantly, volatility shocks give rise to sudden changes in their correlations, and at certain times these are long-lasting. Investors and policy makers in Vietnam should accordingly have due consideration of long-term spillovers.

Due to increased globalization and economic integration in the global economy, contagion effects have been considered an important matter for the investors and policymakers. In the wake of the global financial crisis of September 2008, Islamic financial products were thrust into the spotlight as alternatives to the shaken conventional equity markets. The objective of this study is to discover the Islamic stock market dynamics of Bangladesh with the global Islamic stock markets such as Saudi Arabia, UAE, Kuwait, Europe, UK and Japan. For understanding long run relationship or the theoretical relationships among the Islamic stock market and short run co-movements among Islamic stocks, Johansen co-integration test and Vector Error Correction model (VECM) have been applied respectively. Furthermore, the investigation on short run dynamics is also carried through Impulse Response Function (IRF) analyses. The study found that the Japanese Islamic Stock market is affected to changes in other Islamic stock markets while Kuwait stock market is the leader in the sense it affects other stock market greatly. Bangladeshi Islamic stock market is found to be marginally affecting other stock markets but not as strong as Kuwait. Global Islamic stock market seems to have very little impact to Bangladesh Islamic stock market. The evidence of co-integration and short run dynamics help a diversification benefit may be derived from the cross boarder investment. The empirical evidence of co-integration and short run dynamic relationship found in this study will help investors in making efficient investment decisions and also enhance their understanding of market behavior.

From 1990s to the end of 2006 there have been two stock exchanges in Croatia - an official stock exchange in Zagreb and a so-called alternative capital market in Varaždin. The Zagreb stock exchange had a dominant role in the Western Balkan region until 2008, when its market capitalisation significantly decreased because of the influence of the global financial crisis and the economic downturn of the country. This paper analyses gradual regulatory and institutional development of the Croatian capital market, emergence and strengthening of institutional investors and assets under their management, key market development indicators related to market supply and demand and investor protection mechanisms. The research presented in this paper has shown the crucial role of regulation in attracting investors and sustaining their presence in the market. It also recommends more active role of regulation and stock exchange towards the issuers and small investors to encourage constant supply of corporate securities.