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This paper aims to examine whether the US influences the ASEAN + 3 financial market integration.

A two-stage cointegration test is used in the estimation by using equity indices from selected member economies and the USA.

The finding of this study shows that the equity markets of ASEAN + 3 are integrated especially after the Asian crisis period reflecting the regional cooperation. There is a strong market nexus between ASEAN + 3 and the USA, but the ASEAN + 3 financial cooperation agreement does not depend on the US financial market.

The study offers invaluable policy implications for developing the nexus in the regional equity markets.

The purpose of this paper is to examine the nexus between Asian and the US short-term financing rates and compare them between pre- and post-Asian financial crisis.

The short-term financing rate is used in the estimation by employing two-stage cointegration test.

The result of the empirical study shows several outcomes; the short-term financing rates among the selected Asian countries are not highly correlated during pre-crisis period, but the rates become strongly associated during the post-crisis period. The US financing rate has significant influence on the Asian rate during both periods. Asian financing rates are not integrated by the influence of the USA, rather regional cooperation and financial initiatives lead the regional financing rate to be integrated.

The empirical finding of the study offers significant policy implications for strengthening regional economic bonding and developing the financial systems.

The purpose of this paper is to investigate the validation of the ASEAN+3 financial cooperation agreement among its members. In particular, it examines the long- and short-run relationships among the stock market indices of eight countries: China (CH), Japan (JP),Korea (KR), Malaysia (MY), Indonesia (ID), Philippines (PH), Thailand (TH), and Singapore (SG).

The study applied a global VAR and vector error correction model (VECM) model to investigate this relationship using daily data over the period from first March 1992 to end of September 2013. The study period has been separated into pre-1997/1998 financial crisis period (1992-1997) and post-1997/1998 crisis period (1999-2013).

The findings show that the stock markets in the ASEAN region are integrated during both periods of financial crises. However, the markets are moving toward better integration, particularly during the post-crisis period. This is supported by the results of the error correction which indicated that most ASEAN+3 stock market indices adjust quickly within the short run to a shock in the long-run equilibrium relationships in the region during both the pre- and post-crisis periods. In addition, the results of the VECM causality test showed that a short-run relationship exists among the ASEAN+3 stock market indices.

The results of this study therefore have two implications: first, for investors in terms of construction of the portfolio diversification strategies across difference stock markets in Asian region, and second, for policy makers, as the study presents an understanding of financial exposure in their countries as consequences of changes that occur in the other stock market indices in the ASEAN region.

The investors can find the potential sectors for the portfolio investments.

The paper is one of the pioneers to examine the validity of ASEAN+3 financial cooperation agreement.

The purpose of this paper is to investigate the expected outcomes, both of positive and negative returns occurred by shariá credit instruments in global Islamic banks. The annual panel data from 2005 to 2012 is collected from 40 Islamic banks from 12 countries and value at risk (VaR) technique is employed in the investigation process. The findings of this study indicate several outcomes: first, majority of Islamic banks use debt-based financing (DBF) and avoid asset-based financing (ABF) due to the lack of secured rate of fixed returns and collateral. Second, the ABF financing shows the positive returns. Third, interestingly, DBF financing faces higher credit risk compared to ABF even DBF secures its financing through tight policy implementation. Finally, this paper comes up with policy recommendations for the further reduction of credit risks and improvement of bankers’ confidence level in implementing the ABF financing policy.

VaR on panel data.

Shariá credit instruments play an important role.

Data findings.

Fully original.

The purpose of this article is to demonstrate that granting general amnesty to thousands of black-money holders in Bangladesh has failed to make any positive impact on the development of its securities market. Rather, such a move or mercy by the successive governments over the years has basically increased corruption in the country.

The article relies on both primary and secondary materials. An archival analysis of the materials has been carried out in this research.

The major findings are that whitening black money is legally flawed, morally indefensible and economically unsound; the ultimate outcome of the whitening opportunity appears to be the protection of corruption, the prevention of which is imperative for the sustainable development of the national economy of Bangladesh; and no credible evidence has been found to support the underlying assumption that this immunity offered over the past four decades has benefited the economy.

Its originality is evident in the analysis of the materials in a cohesive way to prove a hypothesis that the immunity granted to the black-money holders has been a flawed initiative of the successive governments of Bangladesh to increase investment.

After completion of the case study, students will be able to analyse the path of the entrepreneurship from idea generation to market development to scaling up business, examine the impact of start-ups like Ergos on India’s agriculture value chain, discuss the challenges faced by tech entrepreneurs in growing a business, identify problems solved by Grain Bank Model and evaluate digitisation of farming’s custodial services such as warehousing, market linkages and loans.

The case study discusses how founders of Ergos, India-based leading digital AgriTech start-up, Kishor Kumar Jha and Praveen Kumar, started one of the unique models in the AgriTech landscape in India. After noticing the grim condition of small and marginal farmers in Bihar, India. Kishor and Praveen decided to put their banking and corporate experience to use in the farming sector. Ergos aimed to empower farmers by providing them with a choice on when, how much quantity, and at what price they should sell their farm produce, thus maximising their income. As a result, Ergos launched the grain bank model, which provided farmers with doorstep access of end-to-end post-harvest supply chain solutions by leveraging a robust technology platform to ensure seamless service delivery. Ergos faced many challenges in its journey related to financing, marketing and distribution. Amidst these developments, it remained to be seen how Kishor and Praveen would be able to realise their goal to serve over two million farmers across India by 2025 and create a sustainable income for them through its GrainBank Platform.

This case study was written for use in teaching graduate and postgraduate management courses in entrepreneurship and business strategy.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship