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Article
Publication date: 28 February 2015

Young Sook Suh

This study examines how FX OTC derivatives transactions of foreign banks’ branches funded by short term borrowings affect the volatility of stock markets and FX markets in…

Abstract

This study examines how FX OTC derivatives transactions of foreign banks’ branches funded by short term borrowings affect the volatility of stock markets and FX markets in Korea based on historical data. It founds that they use call money for FX-derivatives trading, rather than borrowings from their Head Quarter. This result also proves that their derivatives trading is funded by call market increasing stock markets’ volatility in Korea, even if foreign banks’ branches have been using various funding sources. Also the role of foreign banks’ branches as FX money supplier for the korean local banks effects to stock markets by increasing the volatility via call markets. On the other hands, derivatives liabilities of foreign banks’ branches tend to increase volatility of the korean stock markets, but their derivatives assets tend to decrease the volatility. This result together with O/N dollar call volatility should be regarded as a kind of liquidity risk because they could give serious impacts to Korean financial markets if shocks break out. When considering the main revenue source of foreign banks’ branches, derivatives trading creates much higher leverage effects to them than korean local banks, and their roles in financial and capital markets of Korea this study provides with a reason that regulators should give complex and multilateral attentions to foreign banks’ branches.

Details

Journal of Derivatives and Quantitative Studies, vol. 23 no. 1
Type: Research Article
ISSN: 2713-6647

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Article
Publication date: 11 September 2017

Nurul Shahnaz Mahdzan, Rozaimah Zainudin and Sook Fong Au

The purpose of this paper is to examine the level of understanding of Islamic banking concepts and the factors that influence Islamic banking adoption in Malaysia, based…

Abstract

Purpose

The purpose of this paper is to examine the level of understanding of Islamic banking concepts and the factors that influence Islamic banking adoption in Malaysia, based on Rogers’ (1983; 2003) Diffusion of Innovation. Specifically, the impact of perceived attributes and other variables (understanding, consumer innovativeness and bank personnel’s professionalism) on Islamic banking adoption is examined.

Design/methodology/approach

A quantitative approach using a sample of 200 working MBA students in a leading public university in Malaysia was used. The instrument used was a self-administered questionnaire survey.

Findings

The level of understanding of various Islamic banking concepts is below average. A logistic regression reveals that the understanding of Islamic banking concepts and perceived advantage significantly influences the adoption of Islamic banking services.

Research limitations/implications

The small sample size of 200 individuals may render the findings ungeneralizable. Future studies may use a larger sample from across Malaysia and incorporate other independent variables, such as religiosity and Islamic financial literacy.

Practical implications

The Malaysian government can provide tax incentives and conduct educational roadshows on Islamic banking. Educating prospective consumers on the advantages of Islamic banking as opposed to conventional banking would provide more objective benefits that would boost the adoption of Islamic banking.

Originality/value

The results of this paper will be useful for Islamic financial institutions to increase their marketing and promotional efforts to keep pace with stiff competition within the industry.

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Article
Publication date: 3 June 2020

Deepika Jhamb, Arun Aggarwal, Amit Mittal and Justin Paul

Conventionally, consumers perceive luxury products as a means of displaying their wealth and prosperity. Consumption of luxury products has usually been considered the…

Abstract

Purpose

Conventionally, consumers perceive luxury products as a means of displaying their wealth and prosperity. Consumption of luxury products has usually been considered the prerogative of the Western world. Although there are a number of studies capturing the pre-purchase and purchase behaviour of consumers, there is a dearth of quality studies that have been conducted in this field to understand the post-purchase behaviour of consumers towards luxury brands, especially in the context of young shoppers in an emerging market context. Studying the post-purchase behaviour of shoppers is important to understand their experience with the brand. A negative experience could lead to a post-purchase dissonance, which in turn could lead to an unbalanced or distorted attitude towards the brand and other marketing stimuli. Keeping this in consideration, the purpose of this study is to explore the experiences and attitudes of young shoppers in India towards luxury consumption.

Design/methodology/approach

The study captured responses from young shoppers of Chandigarh and its satellite cities located in the relatively prosperous northwest region of India. The data were collected from 200 participants through a structured questionnaire that was based on an adapted “Attitude towards the concept of luxury” scale by Dubois and Laurent (1994) and “Brand Experience” Scale by Brakus et al. (2009). The structural equation modeling technique was applied to test the proposed model.

Findings

The empirical results indicate that sensory, intellectual, behavioural and affective experience play a significant role in building the attitude of consumers towards luxury brands.

Research limitations/implications

The study selected university students from Chandigarh (India) Tricity region as target respondents, which may limit the generalisability of the results to other target respondents in different regions of India or other countries.

Practical implications

The study is useful for researchers, academicians, marketers and retailers of luxury brands, as it gives fresh insights into understanding the consumer behaviour of a young segment towards the consumption of luxury brands in the post-purchase scenario, especially in the context of an emerging market.

Originality/value

The uniqueness of the study lies in the fact that it examines the post-purchase behaviour of a segment consisting of young, educated and aspirational individuals in one of the world’s fastest-growing major economies.

Details

European Business Review, vol. 32 no. 5
Type: Research Article
ISSN: 0955-534X

Keywords

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