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1 – 10 of over 11000The aim of this paper is to assess the thinning notion in a case study while acknowledging the hybrid nature of regional identities with the past. In The Netherlands, a process…
Abstract
Purpose
The aim of this paper is to assess the thinning notion in a case study while acknowledging the hybrid nature of regional identities with the past. In The Netherlands, a process can be observed in which regions actively claim their uniqueness to ensure their development and relevance. It seems that regions adopt similar modern labels in their regional marketing, suggesting a so-called thinning of identities away from traditional thick identities.
Design/methodology/approach
The paper is based on a content analysis of promotional texts and interviews with politicians to analyse the context, aims and perceptions of the regional marketing. It stresses an approach which sees identities as balanced between the present and the past.
Findings
In line with the thinning notion, this case study shows indeed a creation of new thin elements and an exclusion of traditional thick elements in the regional marketing. However, it was also found that the marketing entails creative links between both characteristics, which suggest a tempering of the thinning notion.
Practical implications
The results show that linking traditional with utilitarian elements might capacitate traditional regions to allocate the resources for regional marketing more effectively.
Originality/value
Despite the fact that studies acknowledge identities as neither thick nor thin, the thinning notion seems to examine both elements as a dichotomy within regions, which does not follow the nature of identities as interconnected in time. Then, the value of this study must be found in the way it goes behind such a dichotomy by presenting an integrative analysis of thin and thick characteristics.
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The purpose of this study is to examine the impact of thin trading on the day‐of‐the‐week effect in the emerging equity markets of the United Arab Emirates (UAE). Researchers have…
Abstract
Purpose
The purpose of this study is to examine the impact of thin trading on the day‐of‐the‐week effect in the emerging equity markets of the United Arab Emirates (UAE). Researchers have stated that emerging markets are typically characterized by low liquidity, thin trading and possibly less well‐informed investors with access to unreliable information and considerable volatility. It is well known that thin trading can affect the results of empirical studies on patterns of equity markets by introducing a serious bias into the results.
Design/methodology/approach
This study applies a stochastic dominance approach to detect the day‐of‐the‐week effect. The reason for utilizing this approach is that the parametric tests are not strictly appropriate for assets with non‐normally distributed returns. In fact, stochastic dominance is a useful tool for making comparisons among distributions without relying on parametric assumptions.
Findings
The findings indicate that there is day‐of‐the‐week effect in published daily prices, while daily effect vanishes when data are corrected to remove any measurement bias arising from thin trading. The stochastic dominance results show that the day‐of‐the‐week effect in the UAE equity markets is not present when we correct raw data for thin and infrequent trading.
Originality/value
There has been no research in the literature testing the day‐of‐the‐week effect on the emerging financial markets in the UAE. The study provides empirical evidence on their degree of market efficiency. If the day‐of‐the‐week effect exists, this means that the Abu Dhabi Securities Markets and the Dubai Financial Markets are inefficient. These results will help investors to develop a good investment strategy
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While it has been claimed in many empirical studies that the political futures market can forecast better than the polls, it is unclear upon which our forecast should be based…
Abstract
While it has been claimed in many empirical studies that the political futures market can forecast better than the polls, it is unclear upon which our forecast should be based. Standard practice seems to suggest the use of the closing price of the market, as a reflection of the continuous process of information revealing and aggregation, but we are unsure that this practice applies to thin markets. In this chapter, we propose a number of reconstructions of the price series and use the closing price based on these reconstructed series as the forecast. We then test these ideas by comparing their forecasting performance with the closing price of the original series. It is found that forecasting accuracy can be gained if we use the closing price based on the smoothing series rather than the original series. However, there is no clear advantage by either using more sophisticated smoothing techniques, such as wavelets, or using external information, such as trading volume and duration time. The results show that the median, the simplest smoothing technique, performs rather well when compared with all complications.
After adjusting for thin trading, this study seeks to examine the market efficiency for six emerging stock markets in the Gulf Cooperation Council (GCC) countries: Bahrain…
Abstract
Purpose
After adjusting for thin trading, this study seeks to examine the market efficiency for six emerging stock markets in the Gulf Cooperation Council (GCC) countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Design/methodology/approach
This study uses the LOMAC single variance ratio (VR) test and the Wright's rank and sign VR tests to examine informational efficiency after correcting the data for thin trading that typically characterizes these indexes.
Findings
As the observed indexes in thinly traded markets may not represent the true underlying index value, there is a systematic bias toward rejecting the efficient market hypothesis. The results of this study show that after removing the effect of infrequent trading the random walk hypothesis was not rejected in all GCC equity markets.
Originality/value
To the best of the author's knowledge this is the first study that applies the Wright's rank and sign VR tests after adjusting for thin trading in GCC equity market.
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Hans Lind and Bo Nordlund
The purpose of this paper is to discuss how the concepts market value (MV) and exit price should be interpreted in thin markets and how accounting rules may need to change to take…
Abstract
Purpose
The purpose of this paper is to discuss how the concepts market value (MV) and exit price should be interpreted in thin markets and how accounting rules may need to change to take this into account.
Design/methodology/approach
This is a conceptual paper using hypothetical examples as a base for the conclusions.
Findings
In a thin market, actors can have rather different reservation prices. The price will then be set through bargaining and the agreed price could be considerable above the reservation price of the actor with the second highest reservation price. The exit price should then be below what the MV was before the transaction and below the entry price, and according to the current accounting rules, the value in the balance sheet should then be below the price paid. The authors’ experience is, however, that this rarely happens in practice.
Research limitations/implications
The limitation of the paper is that it is a conceptual paper and not based a systematic empirical study of accounting practices.
Practical implications
The results of the paper indicate that there is a need to revise the current accounting rules. Possible changes are discussed.
Originality/value
As far as the authors know, this is the first paper that looks at problems in the current value concepts related to differences in reservation prices in thin markets.
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Emmanuel Joel Aikins Abakah, Paul Alagidede, Lord Mensah and Kwaku Ohene-Asare
The purpose of this paper is to re-examine the weak form efficiency of five African stock markets (South Africa, Nigeria, Egypt, Ghana and Mauritius) using various tests to assess…
Abstract
Purpose
The purpose of this paper is to re-examine the weak form efficiency of five African stock markets (South Africa, Nigeria, Egypt, Ghana and Mauritius) using various tests to assess the impact of non-linearity effect and thin trading which are prevalent in African markets on market efficiency.
Design/methodology/approach
The weekly returns of S&P/IFC return indices for five African countries over the period 2000-2013 were obtained from DataStream and analyzed. The study adopted the newly developed Non-Linear Fourier unit root test advanced by Enders and Lee (2004, 2009) which allows for an unknown number of structural breaks with unknown functional forms and non-linearity in data generating process of stock prices series to test the Random Walk Hypothesis (RWH) for the five markets, and an augment regression model.
Findings
In light of the empirical evidence the author(s) using Non-linear Fourier Unit Root Test only fail to reject the RWH for South Africa, Nigeria and Egypt leading to the conclusion that these markets follow the RWH and weak-form efficient whilst Ghana and Mauritius are weak-form inefficient. Besides, evaluating non-linear models without adjusting for thin trading effect shows that, South Africa and Ghana markets are weak-form efficient while Nigeria, Egypt and Mauritius are not. However, after accounting for thin trading effect, the author(s) find that South Africa and Egypt markets follow the RWH. The findings imply that market efficiency results depend on the methodology used.
Originality/value
This paper provides further evidence on stock market efficiency in emerging markets. The finding suggests that thin trading and non-linearity effect influences markets efficiency tests in African stock markets. Thus, recent structural adjustment and liberalization policies have not enhanced stock market operations in Africa. This paper therefore has implications for policy makers and international investors.
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Nicholas Kraiger and Warwick Anderson
For firms listed on the New Zealand Stock Exchange, which is a relatively thinly traded market, the purpose of this paper is to examine the nature of stock returns associated with…
Abstract
Purpose
For firms listed on the New Zealand Stock Exchange, which is a relatively thinly traded market, the purpose of this paper is to examine the nature of stock returns associated with a dividend omission announcement when computations specifically address thin trading, and whether specific firm characteristics affect the likelihood and nature of a dividend omission.
Design/methodology/approach
First, event study analysis is used to check if dividend omissions actually do impact share prices in terms of short-term abnormal returns and longer-term cumulative abnormal returns (CARs) in a thinly traded market. Second, binomial logistic regression analysis is used to determine what, if any, company characteristics are associated with the decision to omit a dividend. Third, multinomial logistic regression analysis is employed to determine what firm characteristics are associated with continuing (or ending) a phase of no dividends before a dividend resumption.
Findings
Dividend omissions generate immediate negative abnormal returns, and there is a longer-term persistence of negative CARs. The size and duration of these abnormal returns are smaller, but still significant, when thin-market-specific methodology is employed. With respect to firm characteristic, smaller firms, firms with decreased earnings, a higher level of extraordinary charges, greater leverage and firms with a higher book-to-market value are associated with a greater likelihood of making an omission. With respect to the length of time between an omission and resumption of dividend payments, earnings decreases, a higher book-to-market value, a higher level of extraordinary charges and a decrease in firm debt level become significant.
Originality/value
This paper adds value in two dimensions. First, it considers dividend omissions in three different, but inter-connected ways. Second, the use of multinomial logistic regression to examine an aspect of the non-payment hiatus breaks new ground.
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Purpose – I suggest that we conceptualize labor markets as observable social networks, in which workplaces are the nodes and people moving between workplaces are the edges. The…
Abstract
Purpose – I suggest that we conceptualize labor markets as observable social networks, in which workplaces are the nodes and people moving between workplaces are the edges. The movement of people delivers the actionable information as to what the supply, demand, and going wage for labor might be. Labor market networks are hypothesized to be quite thin thus leading to substantial wage setting autonomy within workplaces, consistent with contemporary observations in both economics and sociology as to the weakness of labor market signals.Method – This paper reviews theoretical and empirical work in economics, sociology, and network science and develops a network image of labor market structure and function. Hypotheses derived from economic, sociological, and network theories are proposed to explain workplace-level wage setting.Findings – Information flow, trust in information, information variance, collusion, and status beliefs are all proposed as important network properties of labor markets. The paper outlines an observational strategy to make labor markets scientifically observable.Originality – Economists and sociologists often refer to labor markets as mechanisms setting the price of labor but rarely observe them. This paper outlines a strategy for making the invisible hand of the market scientifically observable.
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This paper examines the Random Walk Hypothesis (RWH) for aggregate New Zealand share market returns, as well as the CRSP NYSE‐AMEX (USA) index during the 1980‐2001 period. Using…
Abstract
This paper examines the Random Walk Hypothesis (RWH) for aggregate New Zealand share market returns, as well as the CRSP NYSE‐AMEX (USA) index during the 1980‐2001 period. Using several indices, we rely on the variance‐ratio test and find evidence to support the rejection of the RWH with some evidence of a momentum effect. However, we find evidence to suggest the behaviour of share prices to be time‐dependent in New Zealand. For example, we find the indices tested were closer to random after the 1987 share market crash. Further analysis showed even stronger results for periods subsequent to the passage of the Companies Act 1993 and the Financial Reporting Act 1993. We also find evidence that indices based on large capitalisation stocks are more likely to follow a random walk compared to those based on smaller stocks. For the USA index, we find stronger evidence of random behaviour in our sample period compared to the earlier period examined by Lo and Mackinlay (1988)
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Philippos Nikiforou, Thomas Dimopoulos and Petros Sivitanides
The purpose of this study is to investigate how the degree of overpricing (DOP) and other variables are associated with the time on the market (TOM) and the final selling price…
Abstract
Purpose
The purpose of this study is to investigate how the degree of overpricing (DOP) and other variables are associated with the time on the market (TOM) and the final selling price (SP) for residential properties in the Paphos urban area.
Design/methodology/approach
The hedonic pricing model was used to examine the association of TOM and SP with various factors. The association of the independent variable of DOP and other independent variables with the two dependent variables of TOM and SP were investigated via ordinary least squares (OLS) regression models. In the first set of models the dependent variable was TOM and in the second set of models the dependent variable was SP. A sample of N = 538 completed transactions from Q1 2008 to Q2 2019 was used to estimate the optimum DOP that a seller must apply on the current market value of a property in order to achieve highest SP price in the shortest TOM.
Findings
The results of this study also suggest that the degree of overpricing in thin and less transparent markets is higher than that in transparent markets with high property transaction volumes. In mature markets like the USA and the UK where the actual sold prices are published, the DOP is around 1.5% which is much lower than the 11% DOP identified in this study.
Practical implications
It was found that buyers are willing to pay more for the same house in a bigger plot than a bigger house in the same plot. The outcome is that smaller houses sell faster at a higher price per square meter than larger houses. Smaller houses are more affordable than larger houses.
Social implications
There is a large pool of buyers for smaller houses than bigger houses. Higher demand for smaller houses results in a higher price per square meter for smaller houses than the price per square meter for bigger houses. Respectively the TOM for smaller houses is shorter than the TOM for bigger houses.
Originality/value
The database used is unique, from an estate agent located in Paphos that managed to sell more than 27,000 properties in 20 years. This data set is the most accurate information for Cyprus' property transactions.
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