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Open Access
Article
Publication date: 5 December 2016

Yongbum Kim and Jayoung Choi

This paper aims to examine the role of a large competitor’s entry and level of innovativeness in consumer adoption of new products.

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Abstract

Purpose

This paper aims to examine the role of a large competitor’s entry and level of innovativeness in consumer adoption of new products.

Design/methodology/approach

This paper is based on a comparison between market uncertainty and technological uncertainty. This paper henceforth defines and analyzes the following key factors affecting the purchase intention of small- and medium-sized enterprise (SME) new products: type of new products and entry of large competitors. The study further verifies mediator variables that exert impacts: uncertainties regarding both technology and market.

Findings

The findings are as follows: purchase intention of SME new products does vary according primarily to the product types and entry of large competitors. More specifically, the entry of large competitors reduces uncertainties about really new products, thereby positively affecting SME new products.

Originality/value

There was no causal relationship found, however, on incrementally new products. Further findings clarify that the mediator variables affecting reciprocal interactions between purchase intention of SME new products and the entry of large competitors hold valid only for market uncertainties and not for technological uncertainties.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 10 no. 1
Type: Research Article
ISSN: 2071-1395

Keywords

Open Access
Article
Publication date: 25 November 2022

Ahamuefula Ephraim Ogbonna and Olusanya Elisa Olubusoye

This study aims to investigate the response of green investments of emerging countries to own-market uncertainty, oil-market uncertainty and COVID-19 effect/geo-political risks…

1001

Abstract

Purpose

This study aims to investigate the response of green investments of emerging countries to own-market uncertainty, oil-market uncertainty and COVID-19 effect/geo-political risks (GPRs), using the tail risks of corresponding markets as measures of uncertainty.

Design/methodology/approach

This study employs Westerlund and Narayan (2015) (WN)-type distributed lag model that simultaneously accounts for persistence, endogeneity and conditional heteroscedasticity, within a single model framework. The tail risks are obtained using conditional standard deviation of the residuals from an asymmetric autoregressive moving average – ARMA(1,1) – generalized autoregressive conditional heteroscedasticity – GARCH(1,1) model framework with Gaussian innovation. For out-of-sample forecast evaluation, the study employs root mean square error (RMSE), and Clark and West (2007) (CW) test for pairwise comparison of nested models, under three forecast horizons; providing statistical justification for incorporating oil tail risks and COVID-19 effects or GPRs in the predictive model.

Findings

Green returns responds significantly to own-market uncertainty (mostly positively), oil-market uncertainty (mostly positively) as well as the COVID-19 effect (mostly negatively), with some evidence of hedging potential against uncertainties that are external to the green investments market. Also, incorporating external uncertainties improves the in-sample predictability and out-of-sample forecasts, and yields some economic gains.

Originality/value

This study contributes originally to the green market-uncertainty literature in four ways. First, it generates daily tail risks (a more realistic measure of uncertainty) for emerging countries’ green returns and global oil prices. Second, it employs WN-type distributed lag model that is well suited to account for conditional heteroscedasticity, endogeneity and persistence effects; which characterizes financial series. Third, it presents both in-sample predictability and out-of-sample forecast performances. Fourth, it provides the economic gains of incorporating own-market, oil-market and COVID-19 uncertainty.

Details

Fulbright Review of Economics and Policy, vol. 2 no. 2
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 15 November 2021

Jun Sik Kim

This study investigates the impact of uncertainty on the mean-variance relationship. We find that the stock market's expected excess return is positively related to the market's…

1103

Abstract

This study investigates the impact of uncertainty on the mean-variance relationship. We find that the stock market's expected excess return is positively related to the market's conditional variances and implied variance during low uncertainty periods but unrelated or negatively related to conditional variances and implied variance during high uncertainty periods. Our empirical evidence is consistent with investors' attitudes toward uncertainty and risk, firms' fundamentals and leverage effects varying with uncertainty. Additionally, we discover that the negative relationship between returns and contemporaneous innovations of conditional variance and the positive relationship between returns and contemporaneous innovations of implied variance are significant during low uncertainty periods. Furthermore, our results are robust to changing the base assets to mimic the uncertainty factor and removing the effect of investor sentiment.

Details

Journal of Derivatives and Quantitative Studies: 선물연구, vol. 30 no. 1
Type: Research Article
ISSN: 1229-988X

Keywords

Open Access
Article
Publication date: 19 May 2021

Saadan A. Edson and Adam M. Akyoo

An increasing demand of agricultural intensification and value addition necessitates the use of improved inputs such as improved seed. Smallholder farmers contribute about 70% of…

Abstract

An increasing demand of agricultural intensification and value addition necessitates the use of improved inputs such as improved seed. Smallholder farmers contribute about 70% of agricultural production in Tanzania. Agriculture sector in Tanzania contributes about 24.1% of the GDP, 30% of exports and 65% of industrial raw materials. Thus, agriculture development, economic growth and industrialization are inseparable. Due to the nature of the product, smallholder farmers cannot judge the overall excellence of seed at the time of buying. This paper assessed quality uncertainty in maize and vegetable seed and its implication for market exchange between farmers and seed sellers in Kilolo district, Iringa Tanzania. The study used a random sample of 130 smallholder farmers and representatives from ten seed companies. Asymmetric information prevails between the two trading sides, i.e. sellers and buyers, leading into quality uncertainty. Moreover, product augmentation is profoundly overlooked whereby most of seed companies have not augmented their products. Because an improved seed is a quintessential example of an experience good, quality uncertainty of some crop varieties under field conditions favored some seed brands to be used more by farmers compared to others. This paper offers a thorough deduction on quality uncertainty under farmers' field condition and its implication on market exchange. It adds information in the body of knowledge on how an improved seed can contribute to sustainable production of food and industrial raw materials, which is a step towards desired industrialization agenda in Tanzania.

Details

Emerald Open Research, vol. 1 no. 6
Type: Research Article
ISSN: 2631-3952

Keywords

Open Access
Article
Publication date: 1 July 2021

Matteo Foglia and Peng-Fei Dai

The purpose of this paper is to extend the literature on the spillovers across economic policy uncertainty (EPU) and cryptocurrency uncertainty indices.

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Abstract

Purpose

The purpose of this paper is to extend the literature on the spillovers across economic policy uncertainty (EPU) and cryptocurrency uncertainty indices.

Design/methodology/approach

This paper uses cross-country economic policy uncertainty indices and the novel data measuring the cryptocurrency price uncertainties over the period 2013–2021 to construct a sample of 946 observations and applies the time-varying parameter vector autoregression (TVP-VAR) model to do an empirical study.

Findings

The findings suggest that there are cross-country spillovers of economic policy uncertainty. In addition, the total uncertainty spillover between economic policies and cryptocurrency peaked in 2015 before gradually decreasing in the following periods. Concomitantly, the cryptocurrency uncertainty has acted as the “receiver.” More importantly, the authors found the predictive power of economic policy uncertainty to predict the cryptocurrency uncertainty index. This paper’s results hold robust when using alternative measurement of cryptocurrency policy uncertainty.

Originality/value

This study is the first research that deeply investigates the association between two uncertainty indicators, namely economic policy uncertainty and the cryptocurrency uncertainty index. We provide fresh evidence about the dynamic connectedness between country-level economic policy uncertainty and the cryptocurrency index. Our work contributes a new channel driving the variants of uncertainties in the cryptocurrency market.

Details

Journal of Asian Business and Economic Studies, vol. 29 no. 1
Type: Research Article
ISSN: 2515-964X

Keywords

Content available
Article
Publication date: 14 March 2022

Sofiane Laribi and Emmanuel Guy

The article investigates factors associated with the relative success in adopting two specific alternative marine energies (liquefied natural gas [LNG] and electric batteries) in…

Abstract

Purpose

The article investigates factors associated with the relative success in adopting two specific alternative marine energies (liquefied natural gas [LNG] and electric batteries) in the Norwegian ferry market. This specific market segment is an interesting case study as its national-flagged fleet boasting the largest number of ships using alternative marine energies in comparison with the other countries of the region and the world.

Design/methodology/approach

A database tracking the yearly deployment of ships using a different combination of LNG and electric batteries was built from shipping lines’ online information and grey literature. The technological adoption approach was used to categorize different groups of users at each step of the adoption process and identify which factors separate the early adopters from the other groups of end-users. The compiled data allow tracing the changing distribution of Norwegian ferry operators along the conceptualized technology adoption curve.

Findings

Results indicated that the Norwegian ferry market matches required conditions to pass the “chasm” of uncertainties associated with transitioning to new technology. Some disparities between the adoption of LNG and the electric batteries in the Norwegian ferry markets are observed.

Originality/value

To the authors’ knowledge, no study has explored the adoption of new energies in the maritime industry based on the technology adoption process through a similar perspective. The analysis is helpful to shed light on the barriers associated with a high level of uncertainties when it comes to adopting new marine energies.

Details

Maritime Business Review, vol. 8 no. 1
Type: Research Article
ISSN: 2397-3757

Keywords

Open Access
Article
Publication date: 24 October 2022

Joanne Jin Zhang, Charles Baden-Fuller and Jing Zhang

This study aims to explore how entrepreneurial firms' networking logics may change under different types of perceived uncertainty. The arrival of new knowledge from the…

Abstract

Purpose

This study aims to explore how entrepreneurial firms' networking logics may change under different types of perceived uncertainty. The arrival of new knowledge from the entrepreneurial firm's network may alter the perceived technology and market uncertainty that in turn determines how the firm adopts or combines the two opposing logics of causation and effectuation. Focusing on the roles of external advisors recruited by the firms, the study probes the details of the cyclical process and the mechanism through which networking logics are altered.

Design/methodology/approach

In this study the authors conducted a 3-year longitudinal multiple case study of 12 United Kingdom (UK) high-tech start-ups from prefounding to A-round funding with 54 semistructured interviews and meeting observations.

Findings

The knowledge of external advisors with distinct experience often reshapes the entrepreneurial firm's perceptions of uncertainty, leading to logics change in network development. The authors identify two types of knowledge brought by external advisors and discover how these can influence three networking logic pathways under different levels of technology and market uncertainty.

Originality/value

The study is one of the first to map the paths of changing logics along with different types of uncertainty in the context of entrepreneurial network development. The study unpacks one of the key mechanisms of networking logic changes: the knowledge and expertise of those advisors recruited by the entrepreneurial firms. The process model of changing logics contributes to the effectuation literature and entrepreneurial network research.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 9
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 2 May 2023

Michaelia Widjaja, Gaby and Shinta Amalina Hazrati Havidz

This study aims to identify the ability of gold and cryptocurrency (Cryptocurrency Uncertainty Index (UCRY) Price) as safe haven assets (SHA) for stocks and bonds in both…

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Abstract

Purpose

This study aims to identify the ability of gold and cryptocurrency (Cryptocurrency Uncertainty Index (UCRY) Price) as safe haven assets (SHA) for stocks and bonds in both conventional (i.e. stock indices and government bonds) and Islamic markets (i.e. Islamic stock indices and Islamic bonds (IB)).

Design/methodology/approach

The authors employed the nonadditive panel quantile regression model by Powell (2016). It measured the safe haven characteristics of gold and UCRY Price for stock indices, government bonds, Islamic stocks, and IB under gold circumstances and level of cryptocurrency uncertainty, respectively. The period spanned from 11 March 2020 to 31 December 2021.

Findings

This study discovered three findings, including: (1) gold is a strong safe haven for stocks and bonds in conventional and Islamic markets under bearish conditions; (2) UCRY Price is a strong safe haven for conventional stocks and bonds but only a weak safe haven for Islamic stocks under high crypto uncertainty; and (3) gold offers a safe haven in both emerging and developed countries, while UCRY Price provides a better safe haven in developed than in emerging countries.

Practical implications

Gold always wins big for safe haven properties during unstable economy. It can also win over investors who consider shariah compliant products. Therefore, it should be included in an investor's portfolio. Meanwhile, cryptocurrencies are more common for developed countries. Thus, the governments and regulators of emerging countries need to provide more guidance around cryptocurrency so that the societies have better literacy. On top of that, the investors can consider crypto to mitigate risks but with limited safe haven functions.

Originality/value

The originality aspects of this study include: (1) four chosen assets from conventional and Islamic markets altogether (i.e. stock indices, government bonds, Islamic stock indices and IB); (2) indicator countries selected based on the most used and owned cryptocurrencies for the SHA study; and (3) the utilization of UCRY Price as a crypto indicator and a further examination of the SHA study toward four financial assets.

Details

European Journal of Management and Business Economics, vol. 33 no. 1
Type: Research Article
ISSN: 2444-8451

Keywords

Open Access
Article
Publication date: 15 August 2022

Ismail Olaleke Fasanya

In this paper, the author examines the role of uncertainty due to pandemic on the predictability of sectoral stock returns in South Africa. This is motivated by the ongoing global…

Abstract

Purpose

In this paper, the author examines the role of uncertainty due to pandemic on the predictability of sectoral stock returns in South Africa. This is motivated by the ongoing global pandemic, COVID-19, in predicting sector stock returns.

Design/methodology/approach

The study considers estimation of dynamic panel data with dynamic common correlated effects estimator and two pair-wise forecast measures, namely Campbell and Thompson (2008) and Clark and West (2007) tests in dealing with the nested predictive models.

Findings

The results show that pandemic uncertainty has a negative and statistically significant effect on the different sector returns, implying that sector stock returns decline as the pandemic outbreak becomes more pronounced. While the single predictor model consistently outperforms the historical average model both for in-sample and out-of-sample, controlling for other macroeconomic variables effect improves the forecast accuracy of infectious diseases uncertainty. These results are consistently robust to both the in-sample and out-of-sample forecast periods, outliers and heterogeneity. These results have implications for portfolio diversification strategies, which we set aside for future research.

Originality/value

The empirical literature is satiated with studies on how news can predict economic and financial variables, however, the role of uncertainty due to infectious diseases in the stock return predictability especially at the sectoral level is less understudied, this is the main contribution of the study.

Details

African Journal of Economic and Management Studies, vol. 14 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 22 December 2023

Eric B. Yiadom, Valentine Tay, Courage E.K. Sefe, Vivian Aku Gbade and Olivia Osei-Manu

The performance of financial markets is significantly influenced by the political environment during general elections. This study investigates the effect of general elections on…

Abstract

Purpose

The performance of financial markets is significantly influenced by the political environment during general elections. This study investigates the effect of general elections on stock market performance in selected African markets.

Design/methodology/approach

Prior studies have been inconsistent in determining whether electioneering events negatively or positively influence stock market performance. The study utilized panel data set with annual observations from 1990 to 2020. The generalized method of moments (GMM) is employed to investigate the effect of electioneering and change in government on key stock market performance indicators, including stock market capitalization, stock market turnover ratio and the value of stock traded.

Findings

The study finds that electioneering activities generally have a positive impact on the performance of the stock market, whereas a change in government has a negative impact. As a result, the study recommends that stakeholders of the stock market remain vigilant and actively monitor electioneering events to devise and implement effective policies aimed at mitigating political risks during general elections. By adopting these measures, investor confidence can be significantly enhanced, fostering a more robust and secure investment environment.

Originality/value

The study investigates a neglected section of the literature by highlighting not only the effect of elections on stock market indicators but also possible change in government during elections.

Details

Journal of Humanities and Applied Social Sciences, vol. 6 no. 1
Type: Research Article
ISSN: 2632-279X

Keywords

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