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This paper reappraises the global and regional integration for 6 Southeast Asian stock markets. A time‐varying analysis based on Barari (2004) suggests that Malaysia, South Korea and Thailand have shown significant movement towards international financial integration.The estimates based on TARCH model imply significant support for returns and volatility spillover effects from the World as well as regional markets to all the stock markets except Pakistan. The stock market liberalization measures such as First Country Fund, First Depository Receipt, and First Cross Listing appeared to have induced more positive return spillover effects from the World to India, Indonesia and South Korea. These results have policy implication for the international portfolio investors in sense that portfolio diversification advantages are rather less in Malaysia, South Korea compared to India and Pakistan which still provide higher returns through portfolio diversification.

This chapter examines a multifactor model for stock returns in nine Asian markets (Japan, China, South Korea, Hong Kong, Taiwan, Singapore, Indonesia, Malaysia, and Thailand). The authors develop a model using the market risk premium, size, book-to-market, profitability, investment, momentum, price-to-earnings ratio, and dividend yield factors for each market. The empirical results suggest that this eight-factor model can better explain the variations of stock returns than the original Fama–French three-factor model. Factor-based models using local data outperform those using data from US markets. In addition, the evidence suggests that the eight-factor model can better explain stock returns when the market is under stress.

Climate change during the next century is likely to significantly influence forest ecosystems in the western United States, including indirect effects on forest and shrubland fire regimes. Further exacerbation of fire hazards by the warmer, drier summers projected for much of the western U.S. by climate models would compound already elevated fire risks caused by 20th century fire suppression. This has potentially grave consequences for the urban–wildland interface in drier regions, where residential expansion increasingly places people and property in the midst of fire-prone vegetation. Understanding linkages between climate variability and change, therefore, are central to our ability to forecast future risks and adapt land management, allocation of fire management resources, and suburban planning accordingly. To establish these linkages we review previous research and draw inferences from our own retrospective work focused on 20th century climate–fire relationships in the U.S. Pacific Northwest (PNW). We investigated relationships between the two dominant modes of climate variability affecting the PNW, which are Pacific Decadal Oscillation (PDO) and El Niño/Southern Oscillation (ENSO), and historic fire activity at multiple spatial scales. We used historic fire data spanning most of the 20th century for USDA Forest Service Region 6, individual states (Idaho, Oregon, and Washington), and 20 national forests representative of the region's physiographic diversity. Forest fires showed significant correlations with warm/dry phases of PDO at regional and state scales; relationships were variable at the scale of individual national forests. Warm/dry phases of PDO were especially influential in terms of the occurrence of very large fire events throughout the PNW. No direct statistical relationships were found between ENSO and forest fires at regional scales, although relationships may exist at smaller spatial scales. However, both ENSO and PDO were correlated with summer drought, as estimated by the Palmer Drought Severity Index (PDSI), and PDSI was correlated with fire activity at all scales. Even moderate (±0.3°C decadal mean) fluctuations in PNW climate over the 20th century have influenced wildfire activity based on our analysis. Similar trends have been reported for other regions of the western U.S. Thus, forest fire activity has been sensitive to past climate variability, even in the face of altered dynamics due to fire suppression, as in the case of our analysis. It is likely that fire activity will increase in response to future temperature increases, at the same or greater magnitude as experienced during past climate variability. If extreme drought conditions become more prevalent we can expect a greater frequency of large, high-intensity forest fires. Increased vulnerability to forest fires may worsen the current fire management problem in the urban–wildland interface. Adaptation of fire management and restoration planning will be essential to address fire hazards in areas of intermingled exurban development and fire-prone vegetation. We recommend: (1) landscape-level strategic planning of fire restoration and containment projects; (2) better use of climatic forecasts, including PDO and ENSO related predictions; and (3) community-based efforts to limit further residential expansion into fire-prone forested and shrubland areas.

This chapter examines dynamic connectedness among emerging Asian equity markets as well as explores their linkages vis-à-vis other major global markets. We find that international equity markets are tightly integrated. Measuring connectedness based on a generalized Vector Autoregressive (VAR) model, more than half of all total forecast error variance in equity return and volatility shocks come from other markets as opposed to country own shocks. When examining the degree of connectedness over time, we find that international stock markets have become increasingly connected, with a gentle upward trend since the Asian financial crisis (AFC) but with a rapid burst during the global financial crisis (GFC). Despite the growing importance of Asian emerging markets in the world economy, we find that their influence on advanced economies are still relatively small, with no significant increase over time. During the past decade, advanced markets have been consistently net transmitters of shocks while emerging Asian markets act as net receivers. Based on the nature of equity shock spillovers, we also find that advanced countries are still tightly connected among themselves while intraregional connectedness within Asia remains strong. By investigating whether uncertainty plays an important role in explaining the degree of stock market connectedness, we find that economic policy uncertainty (EPU) from the US is an important source of financial shock spillover for the majority of international equity markets. In contrast, US financial market uncertainty as proxied by the VIX index drives equity market spillovers only among advanced economies.

This chapter used empirical data from five developed markets and five emerging markets to perform an examination of anomalies using common financial economic approaches along with more innovative econometric models. Of the methodologies used to test for anomalies, the data-driven panel and quantile regressions were empirically found to be better suited over the traditionally common approaches to describe the non-linear, switching behavior of the anomalies. In the developed markets, the statistically significant small firms (size) had the highest average returns. In the developing markets, the lower price-to-earnings (P/E) ratios (value) had the highest average returns. In addition, the research found (1) a small country effect, (2) sales had a negative relationship with returns, and (3) a lower (higher) book-to-market (B/M) was associated with higher returns in the developed (developing) markets, indicating investors received a higher premium for growth (value) equities. The semi-strong form of the efficient market hypothesis was also found to be violated. The anomalies’ behavior varied between sorted portfolios, industries, and developed to emerging markets; though it was found to be consistent through time (not disrupted by bear or bull markets).

This paper aims to give a brief review on behavioral economics and behavioral finance and discusses some of the previous research on agents' utility functions, applicable risk measures, diversification strategies and portfolio optimization.

The authors also cover related disciplines such as trading rules, contagion and various econometric aspects.

While scholars could first develop theoretical models in behavioral economics and behavioral finance, they subsequently may develop corresponding statistical and econometric models, this finally includes simulation studies to examine whether the estimators or statistics have good power and size. This all helps us to better understand financial and economic decision-making from a descriptive standpoint.

The research paper is original.

Notwithstanding the extensive body of literature, there is still confusion surrounding the concept of “network” since it encompasses a variety of inter‐organisational relationships. By adopting the Mintzberg’s approach on organisational structures and co‐ordination mechnisms, this work proposes a framework for the classification of the main network structures, analysing the interdependency forms and co‐ordination mechanism of each of them. The work provides some illustrative examples of the various network structures and the co‐ordination mechanisms operating on them.

The purpose of this paper is to study correlations between the national real estate investment trusts (REIT) markets in the USA and the four Asia‐Pacific countries of Australia, Hong Kong, Japan and Singapore, and document the extent to which the time variation present in these correlations can be explained from a set of 11 economic and financial factors. Both US dollar and local currency returns are used.

Time‐varying correlations are estimated using a DCC‐GARCH model that allows for asymmetries in both the correlations and volatilities. The correlations are then regressed on a set of four economic and seven financial factors, and tests of statistical significance are conducted in order to discriminate between relevant and irrelevant explanatory variables. The authors estimate a fixed‐effects panel regression as well as individual regressions for each dynamic correlation.

Significant time variation is found in the four REIT correlation series. Panel regressions suggest that REIT correlations rise with increases in the interaction of national inflation rates and with higher global equity market uncertainty. It is also found that REIT correlations fall with increases in the US default risk premium and global equity market volume. Relaxing the structure imposed by the panel data model, individual regressions confirm most of the results, although there are some exceptions. It is also found that there are no substantial differences in the dynamics of the correlation coefficients when switching from the US dollar to local currency denominated returns.

Investors in real estate securities across national markets should take into account information about the credit spread, the volatility and volume of global equity markets, and inflation rates when modeling correlations. These variables may alert the investors to the possibility that, under a set of circumstances, investing in real estate across different markets may not provide the expected diversification benefits. Another implication relates to the impact of currency hedging. It appears that the impact of switching from US dollar to local currency denominated returns does not substantially change the time dynamics of the correlations, or the importance of explanatory variables.

Although considerable progress has been made in modelling time‐varying correlations between various REIT markets, to the authors' knowledge, this is one of the first papers to investigate the underlying causes of the co‐movement, especially between the US and Asia‐Pacific markets. The paper's results will help investors and risk managers make better choices by identifying those factors that have more systematic effects on the change in the REIT correlations, rather than more transient forces.

The focus of this article is a cross‐national comparison of the role the study of marketing theory should play in the marketing education process. This study also examines whether the status of marketing theory differs from marketing academicians in the United States, Europe, and the Pacific Basin.