Volume 5, Issue 2

An empirical study on the dynamic relationship among returns, trading volume, open interests of mini gold futures and mini gold spot's returns

Chunghyo Hong

This paper investigate the inter-relations among mini gold futures, returns, trading volume and open interests, and mini fold spot market’s returns covering the period from Septmeber 13, 2010 to July 31, 2013. For this purpose we employ Granger causality test based on the vector autoregressive model. Considering the co-integration relationship among the four variables we incorporate the error correction term into the VAR model. The main empirical results are as follows. First, we find a co-integration relationship among the four variables in mini gold spot and futures markets with a statistically significant level. Second, we also find that there is a bilateral influences between the changes of trading volume and open interest of mini gold futures and returns of mini gold futures, but the impact from trading volume and open interest to returns of mini gold futures are more greater than that from returns to trading volume and open interest of min gold futures market. Third, the trading volume and open interest of mini gold futures market do not have an impact on the return of mini gold spot market with a statistically significant level. Fourth, the mini gold futures` open interest has relatively greater impact on the returns of mini gold futures than mini gold futures’ trading volume changes. These empirical results are consistent with those of Copeland(1976, 1977), Hiemstra and Jones(1994) and Tse(1999) and we infer that these results support the sequential arrival of information hypothesis.

Keyword: mini gold futures & spot, trading volume, VAR, Granger causality

Corporate Diversification, Information Asymmetry and Analyst Coverage

Sanglae Lee, Sanggark Nam, Cheolho Park

This paper empirically analyse the effect of information asymmetry on diversification thorugh analyst coverage during the period from 2006 to 2010. Expanding of the information asymmetry between firm and investor by diversification increase the risk of cash flow expectation for the investment that will grow up the information gap. However, analysts as crucial information intermediaries can mitigate information asymmetry between manager and investor. By empirical results, we find out that diversified firms are more discounted than specialized firms, although the difference is not significant. However, the difference of non-analyst covered firm’s excess value between unrelated diversification and related diversification is significantly negative. On the other hand, the difference disappear under analyst coverage. It suggests that the firms with the more unrelated segments have a higher information asymmetry.

Keyword: Corporate Diversification, Information Asymmetry and Analyst Coverage, Excess Value

Export Marketing Strategies For Nepalese Ready Made Garment Industries

Bishow Prakash Adhikari, Jiyoung Jeong, Kishor Koirala

Nepalese ready-made garment(RMG) industry is the largest industrial sector of the country and a major source of foreign currency that draws an important role in the economy of Nepal. The study is conducted to investigate the export status of Nepalese RMG, marketing strategies, and future need for improvement of marketing strategies. Both the primary and secondary data were used in the present study. This study shows the decreasing export trend of Nepalese RMG since 2003. The current marketing strategies, electric power cut and political instabilities are the major causes of decreasing production and export of RMG. Until now, marketing is the neglected part of the Nepalese garment industry. The most effective marketing strategies that the Nepalese RMG companies implementing are ‘Competitor Profiling and Competitiveness Analysis’ ; however we found that the current strategies implemented is outdated and needs and effective change. Thus, there is an urgent need of review and change of marketing strategies. Our study concluded that ‘After Sales Follow-up’ strategy had primary efficiency even though least implemented, followed by ‘Market and Costumer Profiling’ and ‘Competitors Profiling and Competitiveness Analysis’. The government and the RMG business sector should jointly work together to maintain international competitiveness in the global RMG market.

Keyword: Ready-made garment, Export, Marketing Stratege, Nepal

The Influences of the Number and Reasonability of Surcharges on Purchase Intention in Partitioned Pricing

Sojin Park

This study investigated effects of the number of surcharges and reasonability of surcharges on consumers’ purchase intention in partitioned pricing strategy. This study is based on a 2x2 factorial design with the number of surcharges (base price and one surcharge vs. base price and three surcharges) and the level of consumers’ perceived reasonability of surcharges (high vs. low). The dependent variable is consumers’ purchase intention. The data was analyzed with 2-way ANOVA. This research found two significant main effects and an interaction effect. Consumers’ purchase intention was higher in one surcharge condition than in three surcharge condition. Besides consumers’ purchase intention was higher in high level of reasonability group than in low level of reasonability group. When the level of consumers’ perceived reasonability of surcharges was low, consumers’ purchase intention was decreased significantly in three surcharge condition. However, when the level of consumers’ perceived reasonability of surcharges was high, consumers’ purchase intention was slightly decreased in three surcharge condition. This research suggests marketers should consider the number of surcharges and reasonability of surcharges in partitioned pricing strategy.

Keyword: partitioned pricing strategy, number of surcharges, reasonability of surcharges, purchase intention

Marketing Strategies for Seasonality in Turkish Tourism

Jiyoung Jeong, Pianpian Yang

Seasonality is one of the most distinctive features of tourism worldwide and is generally considered as the main problem in the tourism industry. This article takes tourism in Turkey as an example to illustrate possible ways to deal with seasonality pattern from a marketing point of view via providing three different strategies. Strategy 1 proposes mitigation of the degree of seasonality problem by attracting elder visitors who are not restricted by holiday’s seasons and have their own traveling preferences, and those who have a large potentiality to increase the number of visitors in “off-peak” such as China, Korea, and Japan. It investigates each target market’s characteristics and gives corresponding marketing suggestions. In contrast, strategy 2 presents increment of the degree of seasonality pattern by increasing German and Russian visitors who are the top two countries having most visitors in Turkey. Further, it describes and analyzes the characteristics of German and Russian visitors and proposes corresponding marketing suggestions. Strategy 3 combines strategy 1 and strategy 2 that are two plausibly contradicted strategies purported to decrease seasonality in “off-peak” season and to augment seasonality in “peak” season. Our eventual goal is to raise the total profitability and competitiveness of the tourism industry from a marketing point of view. This article provides a new insight into seasonality patterns in the tourism industry and strategies suggested from this article would be generalized into other countries, especially Mediterranean countries.

Keyword: Seasonality, Tourism, Turkey, Target Customers, Marketing Suggestions

The Effect of Chinese Consumers` Consmopolitanism on Purchase Intention to Global Products

Seungjun Lee, Nakhwan Choi, Na Meng, Chimid-Ochiv Nyambayar

This study investigates the antecedents and consequences of Chinese consumers’ cosmopolitanism which affect purchase intention to global products. The first result is that three variables (need for uniqueness, environmentalism, and materialistic SNI) which are investigated by this study positively affect the developing of the cosmopolitanism. Secondly, the cosmopolitanism has a positive impact on conspicuous and hedonic disposition in terms of consumption. Lastly, these tendencies could probably exert their influence over the purchase intention to global products. Therefore, the results indicate that the three variables help to build the cosmopolitanism in the Chinese market and support that purchase of global product is positively influenced through the cosmopolitanism.

Keyword: cosmopolitanism, need for uniqueness, environmentalism, and materialistic SNI

A Analysis of Dynamic Relationship between Macroeconomic Variables and Household Debt

Hyuntak Oh, Wooseok Kim, Inseob Im

Consistently increasing household debt has been realized as one of the most important problems in global economy and finance and that especially in the season of expansion of world economy’s uncertainty. This study analyzes the dynamic relationship of macroeconomic variables and household debt using VAR model. For this study, Impulse response and Variance decomposition are used, based on the result of VAR model estimate. Variables are the depository financial institution’s household debt, non-depository financial institution’s household debt, depository financial institution’s household lending rate, non-depository financial institution’s household lending rate, index of housing trading price, index of housing chartered price and consumer price index. Analysis period is October 2003 to August 2012 and monthly data are used. The result of this study shows household debt in Korea is faced with ruinous limitation. Household debt are strongly affected by HTPI and HCPI(the index of housing trading price and housing chartered price) because household asset are composed about 72% of real estate. Also, the CPI(consumer price index) affects household debt. This reason may be that household net income has not increased conspicuously. Reducing household debt is very important task in Korea, but it must be cautious about that reducing household debt without other countermeasures for the household economy because another problems will be brought up like consumption recession, household’s liquidity risk and deterioration of household credit rating, etc.

Keyword: Household debt, VAR model, HTPI, HCPI, CPI, Household Economy