International Journal of Business and Emerging Markets (7 papers in press)
Factors affecting Market Adoption toward Futures Derivatives in Vietnam
by Phan Tran Trung Dzung, Nguyen Thi Ha Thanh, To Phuong Anh
Abstract: Customers behavioural intention research frameworks are widely employed to predict adoption toward a new product. To understand the behavioural intentions related to investment and derivatives markets, the purpose of this study is to adapt the TPB model to investigate factors affecting market adoption towards futures products, which is a newly established derivatives market in Vietnam, using cross-disciplinary approach. Using primary data collected from 142 investors in Hanoi, statistical tests results indicated that TPB indicators such as attitudes, subjective norms, perceived behavioural control, experience were significant predictors of investment intentions. The findings are consistent with prior research works and provide evidence of experience as further supporting the theory of planned behaviour on evaluating market adoption.
Keywords: Consumer Behaviour; Derivatives; Futures; Market Adoption; TPB.
Jakarta Sharia Stock Index and international Sharia leading stock indices: comparison of Sharia screening processes
by Dwiraptono Agus Harjito, Athaya Reisya Nabila, Zuraidah Mohd Sanusi
Abstract: This research examines whether Jakarta Islamic Index (JII) adopts a financial screening process that can be considered more liberal than the financial screening process applied by Dow Jones Islamic Market (DJIM), S&P 500 Sharia, FTSE Sharia Global Equity Index, AMIRI Capital and MSCI Islamic Index. In this study, 180 Sharia-compliant firms listed in JII from 2010 to 2015 are screened using the formula of liquidity ratio, interest ratio and debt ratio adopted by the selected Sharia index providers. This finding shows that the highest percentage originates from MSCI in which 43 companies are considered to be Sharia-compliant. Meanwhile, only three companies are deemed to be Sharia-compliant according to DJIM and S&P. Given the fact that only less than 50% of firms passed, the screening process under each selected Sharia stock index, it can be concluded that JII applies more liberal financial screening criteria when compared to the other index providers.
Keywords: Sharia-compliant stock; financial screening; quantitative screening.
Does corporate governance enhance bank efficiency in Taiwan?
by Chang-Sheng Liao
Abstract: The purpose of this study is to investigate the relationship between bank efficiency and corporate governance in Taiwan. It aims to explain the effects of ownership structure, institutional investors' structure and manager turnover. The empirical results provide weak evidence to support the proposition that independent directors can improve bank efficiency. This study broke down the structure of institutional investors and found that when a higher percentage of banks were owned by domestic corporations, the efficiency-augmentation hypothesis was supported, whereas when a higher percentage of banks were owned by domestic trust funds, the efficiency-abatement hypothesis was supported. This study also found that in the Taiwanese banking industry in general, top executives of poorly performing banks are not more likely to lose their jobs and that, sometimes, boards did not appoint top executives based on ability but rather tended to appoint them based on the personal preferences of family board members.
Keywords: corporate governance; ownership structure; top executive turnover; X-efficiency; Taiwan.
Engineered wood products as substitutes in the Canadian building construction industry
by Shashi K. Shahi, Mathew Leitch, Mohamed Dia
Abstract: Engineered and reconstituted wood products play an important role in building construction, and have positive environmental impacts. However, the wood products compete with other construction material (concrete and steel) in terms of prices in the Canadian building construction industry, and the price competition has not been explored in past literature. In order to promote the use of wood and wood-based products, there is a need to understand how prices influence the choice of construction material. We estimated the own and cross-price elasticities of demand of construction material in Canada using standard log-linear regression models with consumption and price data from 1990 to 2017. Our study shows that engineered and reconstituted wood products are substitutes for cement and steel, and hence there is a need to focus on the development of these value-added forest products, to create sustainable local economies that are economically viable, environmentally sound and socially responsible.
Keywords: building construction industry; construction material; engineered wood products; EWP; price elasticity; sustainability; wood-based products.
The impact of economic cyclicality on financial risks: evidence of Islamic microfinance institutions
by Nur Nabilah Mohamed, Ruhaini Muda, Salwana Hassan, Nordin Abu Bakar
Abstract: Loan portfolio is the largest asset component and a source of risk that a microfinance institution needs to treat carefully. The quality of the loan portfolio is very crucial as the loans are typically not backed by any physical collateral. Having dual roles of achieving social and financial objectives, lenders require the microfinance institutions to have long-term financial sustainability. The study aims to gauge whether financial risks of Islamic and conventional microfinance institutions are pro-cyclical to economic conditions. The study utilises the dataset of 39 microfinance institutions for Afghanistan, Bangladesh and Pakistan from 2007 to 2013. Findings indicate that financial risks are pro-cyclical with economic conditions for both Islamic and conventional banking institutions. However, Islamic microfinance institutions are exposed to a higher financial risk during an economic downturn. This implies that Islamic microfinance institutions should improve the quality of their portfolio to preserve sustainability and resilience.
Keywords: Islamic microfinance institutions; financial risks; default risk; economic cyclicality.
Hospital choice by Indian customers - empirical testing of a standardised model of service provider selection criteria
by Ganesan Palanisamy, Lallu Joseph, Sivakumar Alur
Abstract: This study's purpose was to understand and test a modified model of service-provider selection-criteria in hospital service settings. Using a thorough literature review, the study developed an instrument using scaled items under eight identified hospital selection criteria. The study covered 55 hospitals in Indian cities. All of the eight hospital selection criteria studied positively influenced customer choice. The results validate the applicability and relevance of the standardised model in healthcare context. The moderation analysis highlights that patient's gender and age do not moderate the eight selection criteria for hospital choice. Hospital marketing, operations, administration, and planning can be better with understanding of factors that increase patient satisfaction.
Keywords: patients; hospital choice; criteria; service provider; Indian.
Examining the impact of coronavirus on stock markets: investigating the cointegration and transmission of shocks between China and the world's largest stock markets
by Naveed Ul Haq, Abid H.K. Shirwani
Abstract: This study's focal point is to access the financial aspects of coronavirus on China and the world's largest stock markets by analysing the cointegration and the transmission of shocks from the Chinese stock market to the whole world. This study employs unit root test, Johansen cointegration test, vector error correction model, Granger causality test, variance decomposition and impulse response function test, to find the long-run and short-run relationship and transmission of shocks for the period from January 2012 to March 2020. Findings of the study observe the long-run relationship between stock markets. The short-run results reveal that the previous day's stock prices of Hong Kong and the US stock market show a positive relationship with China stock market. Granger causality results show only unidirectional long-run causality running from the UK, Hong Kong and Japan. Short-run causality results indicate the bidirectional causality among China and other major stock markets.
Keywords: COVID-19; financial aspects of coronavirus; stock markets; cointegration; vector error correction model; vector error correction causality; stock markets; shocks.