This chapter investigates the correlation dynamics in the equity markets of 13 Asia-Pacific countries, Europe and the US using the asymmetric dynamic conditional correlation GARCH model (AG-DCC-GARCH) introduced by Cappiello, Engle, and Sheppard (2006). We find significant variation in correlation between markets through time. Stocks exhibit asymmetries in conditional correlations in addition to conditional volatility. Yet asymmetry is less apparent in less integrated markets. The Asian crisis acts as a structural break, with correlations increasing markedly between crisis countries during this period though the bear market in the early 2000s is a more significant event for correlations with developed markets. Our findings also provide further evidence consistent with increasing global market integration. The documented asymmetries and correlation dynamics have important implications for international portfolio diversification and asset allocation.
Purpose – We study the investment behavior of foreign institutional investors operating in China. A detailed analysis of foreign institutional investors is examined, along…
Purpose – We study the investment behavior of foreign institutional investors operating in China. A detailed analysis of foreign institutional investors is examined, along with a comparison of domestic Chinese investors.
Methodology/approach – We adopt annual Chinese stock market data for the period 2003–2009 for both foreign and domestic funds to analyze the industrial preference of foreign funds and compare the different preferences between foreign funds and domestic Chinese funds in relation to financial characteristic and corporate governance indicators.
Findings – The analysis reveals that foreign funds have a preference for a range of sectors such as transportation, metals and nonmetals, and machinery, as opposed to industries with a requirement for local knowledge. The portfolios of domestic Chinese funds are distributed more evenly across sectors, compared to foreign funds. The comparative analysis reveals that the companies foreign funds invest in are significantly different from those firms favored by domestic funds in terms of size, profit, and management compensation.
Social implications – These empirical findings highlight the differences between foreign and domestic funds investment preferences and has implications for policy makers aiming to attract foreign investors to emerging markets.
Originality/value of chapter – Our chapter not only provides an introduction on the QFII scheme in China, but also examines the impact of a comprehensive range of firm-level characteristics, financial and corporate governance indicators, on the investment decisions of foreign and domestic funds in emerging markets.
This paper investigates the validity of the expectations hypothesis for the term structure of interest rates in the context of the deposit interest rates in Kuwait. The…
This paper investigates the validity of the expectations hypothesis for the term structure of interest rates in the context of the deposit interest rates in Kuwait. The data set covers average inter local bank interest rates on deposits of Kuwaiti Dinar (KD) with maturity of one, three and six months from the period June 1994 to August 2008. We utilize Johansen procedures to examine the relationship between spot and forward rates. Our findings show that the spot and forward rates are cointegrated for all cases, the one month interest rates, the three month interest rates as well as the six month interest rates. The explanation of this relationship indicates that the expectations hypothesis of the term structure of interest rates is accepted for the case of Kuwait.
Institutional investors have increasingly gained importance since the early 1990s. The assets under management in these funds have increased threefold since 1990 to reach…
Institutional investors have increasingly gained importance since the early 1990s. The assets under management in these funds have increased threefold since 1990 to reach more than US$45 trillion in 2005, including over US$20 trillion in equity (Ferreira & Matos, 2008). Further, the value of institutional investors' assets represents roughly 162.6% of the OECD gross domestic product in 2005 (Gonnard, Kim, & Ynesta, 2008). Given the magnitude of institutional investors' holdings relative to the world market capitalization, challenging questions on the economic role of these investors have been raised. One such question concerns their impact on the stability of stock markets. On the one hand, active strategies of buying and selling shares by these investors may contribute to moving stock prices away from their fundamental values. On the other hand, if all institutional investors react to the same information in a timely manner, they are in fact helping to increase market efficiency by speeding up the adjustment of prices to new fundamentals (for competing theories on the role of institutional investors, see, e.g., Lakonishok, Shleifer, & Vishny, 1992). This view of institutional investors as “efficiency drivers” generated considerable debate for many years (see, e.g., Ferreira & Laux, 2007; French & Roll, 1986).
Perhaps the most significant development in the global business arena in the post-war period has been the emergence of the Asia-Pacific rim countries as a significant…
Perhaps the most significant development in the global business arena in the post-war period has been the emergence of the Asia-Pacific rim countries as a significant economic force.
The purpose of this paper is to identify issues in the long-term development of project workers, their career paths, their contribution to organizational success and their…
The purpose of this paper is to identify issues in the long-term development of project workers, their career paths, their contribution to organizational success and their need for equity of opportunity. The long-term development of project workers, their career paths and their contribution to organizational success is explored.
A qualitative research design using semi-structured interviews was employed to gain an understanding of social and human issues related to careers in project management (PM). By researching the lived experiences and feelings of those pursuing a career in PM the aim was to gain insight into the career journeys and experiences of practicing project managers.
Those who choose to pursue a career in PM have the personal characteristics and sufficiently high levels of self-efficacy to deal effectively with the uncertainty inherent in the nature of projects and of project-based employment.
Participants were drawn from current project practitioners. As a result, the views of those who have worked on projects and chosen not to continue their career in the area have not been gathered.
Predictions are that there will be a continuing demand for project managers with the capabilities required to deliver successful projects. The challenge for organizations is to create an environment that will encourage greater numbers of people to embrace the uncertainty of project. The findings reported provide insight into how organizations might attract, develop and retain the project expertise they require for success.
This research provides further understanding into the lived experience of project managers, with a focus on those who have unexpectedly found themselves pursuing a career in PM.
The social innovation of devolving HRM responsibilities to line managers results in many debates about how well they implement HRM practices. The implementation…
The social innovation of devolving HRM responsibilities to line managers results in many debates about how well they implement HRM practices. The implementation constraints line managers perceive in their HRM role are researched by taking organisational contingencies into consideration.
We present four case studies in which our findings are based on quantitative and qualitative data from the cases. The qualitative data allow us to explain some of our quantitative results in terms of organisational differences.
The HRM implementation effectiveness as perceived by line managers depends on the line managers’ span of control, his/her education level and experience and his/her hierarchical position in the organisation. Each HRM implementation constraint knows additional organisational contingencies.
We did not consider possible influences of one organisational characteristic on another, and the effect of this combined effect on the HRM implementation factors. In order to overcome this limitation, we would suggest using a structural equation model (SEM) in future research.
This chapter offers HR professionals solutions on how to structure the organisation and design the HRM role of line managers in order to implement HRM practices effectively.
We see many differences on how HRM implementation is managed in organisations. This chapter offers solutions to policy makers on how to equalise the HRM role of line managers.
The focus of this chapter is on the line manager (instead of HR managers) as implementer of HRM and the impact of organisational contingencies on HRM implementation.
The aim of the article is to analyse HR devolution from HR departments to the line. Two important problems are addressed. The first problem concerns the disregard for the…
The aim of the article is to analyse HR devolution from HR departments to the line. Two important problems are addressed. The first problem concerns the disregard for the changes in line management that comes with HR devolution. The second problem addressed deals with the lack of studies of organisational contingencies.
The paper presents and analyses an in‐depth case study of a radically projected firm within the Tetra Park group where a new HR‐oriented management role has been created to replace the traditional line management role. Based on the case study findings, the paper elaborates on the new approach to line management and how a new management role is moulded in the context of project‐based organisations.
Based on literature studies, the paper identifies four key challenges for HRM in project‐based organisations that are critical for the development of the new approach to line management in such settings. Based on case study observations, it analyses the creation of a new management role – the so called “competence coach” – in project‐based organisation within the Tetra Park group. It argues that the new approach adopted points to the need of breaking out of traditional conceptions of line management, and of developing the concept of an HR‐oriented management role that is a legitimate player in the HR organisation of a firm.
The paper provides a rich case description of a project‐based firm in a HRM perspective. The descriptions and the analysis give practical as well as theoretical implications of HRM issues that arise in project‐based firms, and of changes in line management as a way of developing the capabilities to handle these issues.