International Research Journal of Finance and Economics  Issue 131  March, 2015

 

Customer Satisfaction and Its Impact on MNEs' Financial Performance	7-19
Chunmei Bai
Abstract: This study reviews customer satisfaction and its impacton firms’ performance (i.e. market share, profitability, stock/security prices, etc) under the international market environment.It is essential for MNEs to develop good customer satisfaction since higher customer satisfaction would eventually lead to higher profitability for firms, and could also benefit the stock/security prices or stockholder values. In the international market,culture is an important factor which would impact the development of customer satisfaction for MNEs since customers come from different countries with different culture background. Furthermore, history ties betweenhost and home countries of MNEs may also play a significant role for forming customer satisfaction relationship, which is one kind of customer satisfaction. In addition, the relationship between customer satisfaction and market share may be positive or negative, depending on the homogeneity of customer preference and the market nature. Keywords: Marketing; Customer Satisfaction; Performance; Profitability; Culture; Historical Ties
Determinants of Intraday Return and Volatility of Argentinean ADRs	20-28
Aliaa Bassiouny
Abstract: This paper examines the determinants of intraday returns and of volatility of Argentinean ADRs using intraday data from 3 January 2008 till 31 December 2009. Results of an autoregressive GARCH model reveal that the main determinants of return Argentinean ADRs are the US stock market (host market), Buenos Aires stock exchange (home market) and the local underlying shares. The foreign exchange rate doesn’t affect ADR returns. The US stock market is found to have a significant impact on ADR returns and conditional volatility during our sample period highlighting the importance of trading location on ADR returns. Keywords: ADR returns; Volatility Transmission JEL Classification: F3; G11; G15
Equity Stock Market in Africa: Empirical Evidence from Random Walk Hypothesis	29-51
Romuald N Kenmoe S and Eric Dongmo Guefack
Abstract: In this paper, weak-form market hypothesis is tested for some relevant African stock markets: Egypt, Kenya, Mauritius, Morocco, Nigeria, South Africa, and Tunisia. Using daily and weekly data which span the period 2000 to 2012. The sample was divided into three parts, corresponding to the entire sample, the period before and after the financial crisis 2007/2008. We have used autocorrelation test, runs test, Augmented Dickey-Fuller (ADF), Phillips-Perron (PP) and Kwiatkowski, Phillips, Schmidt and Shin (KPSS) unit root test and parametric and nonparametric multiple variance tests. The empirical results show that African stock markets are not weak-form efficient using daily data; the South African one is characterized by a martingale difference sequence. We find that most of the stocks tend to comply with weak-form efficiency when only weekly data are used. Keywords: Variance ratio test, Random walk, Parametric and Nonparametric test, Heteroskedasticity, African stock markets. JEL Classification: G01, G14, C01
CAMELS Performance Rating Model: Comparative Analysis of the Performance of Deposit Banks Operating in Turkey with Sector Average for the Period between 2006 and 2011	52-69
Nuray Islatince
Abstract: As the leading actors of the financial system, the banks have a significant importance in the sector, it is quite important to thoroughly analyze the solidity of their financial structure and their performance. In this study, the performances of the public, private and foreign capital deposit banks operating in Turkish banking sector in the period between 2006 and 2011 were measured using CAMELS performance rating model and compared with the sector average. CAMELS performance rating model is introduced in the first part of the study. In the second part, combined CAMELS value and sector average were calculated using Stata 13 program in the analysis of the data regarding Turkish banking system; and the results were expressed and interpreted creating graphs on Excel spreadsheet program. Keywords: Banking Sector, CAMELS, Performance analysis, Deposit bank. JEL Classification Codes: G21, G32
The Effect of “Reverse” Dual-Listing on Stock Liquidity	70-79
Zvika Afik, Galla Salganik, Victoria Sher and Rami Yosef
Abstract: Liquidity risk significantly affects trading in financial markets, and thus it has been vastly researched and documented in the academic literature. There are also many dozens of prior studies on cross-traded stocks. These two issues are the focus of this paper, in a rather unique setup, in which Israeli firms, initially issuing their stocks in a U.S. exchange, are encouraged by the Israeli regulator to cross-list their stocks in the Tel Aviv Stock Exchange – their “domestic” market. This is a “reverse” move compared to most other dual-listings in which firms seek trading in foreign markets after initially issuing equity in their domestic market. Using liquidity measures, mainly liquidity VaR and ILLIQ, we find on average a mixed effect in the market, predominantly of increased liquidity. Keywords: Liquidity, liquidity risk, dual listing
Dividend Policy Ratios and Jordanian Industrial Sectors’ Performance	80-90
Lina Warrad
Abstract: Nowadays, companies are trying to attract investors in order to maximize value of company. Increasing of profit and returns improvement is as an important ways for maximizing value of company. In Amman Stock exchange, industrial companies are trying to increase their annual returns in order to encourage investors to invest for common share. Investors in share market are trying to lead their wealth in order to achieve maximum of income in the market. This study applied to verify the effect of dividend policy that expressed by earnings per share (EPS), dividends per share (DPS) and dividend yield (DY) on industrial sectors’ performance that expressed by return on asset (ROA) and return on equity (ROE) at Amman Stock Exchange during the period from 2009 to 2012. The study found that there is significant effect of dividend policy ratios on Jordanian Industrial sectors’ return on asset (ROA). There is significant effect of earning per share on Jordanian industrial sectors’ return on asset (ROA), there is significant effect of dividend per share on Jordanian industrial sectors’ return on asset (ROA), and there is significant effect of dividend yield on Jordanian industrial sectors’ return on asset (ROA). Also the study showed and there is significant effect of dividend policy ratios on Jordanian Industrial sectors’ return on equity (ROE). There is no significant effect of earning per share on Jordanian industrial sectors’ return on equity (ROE); there is significant effect of dividend per share on Jordanian industrial sectors’ return on equity (ROE), there is significant effect of dividend yield on Jordanian industrial sectors’ return on equity (ROE). Finally, the study contribute to add that Glass and Ceramic Industries s Sector has the lowest earning per share, dividend per share, dividend yield, return on asset and return on equity, while Mining and Extraction sector has the highest earning per share, dividend per share. Tobacco and Cigarettes sector has the highest dividend yield, return on asset and return on equity. Keywords: Earnings per Share (EPS), Dividends per Share (DPS), Dividend Yield (DY), Return on Asset (ROA), Return on Equity (ROE), Amman Stock Exchange (ASE)
Quanto Barrier Options	91-105
Son-Nan Chen, Hong Ming Chen and Chien-Hsiu Lin
Abstract: In this paper, we discuss the pricing models of put and call barrier options with four types of quanto and in-out parity. We use in-out parity to obtain the quanto barrier option results. The analytic price formulas for 16 European-style quanto barrier options are derived, including those of a foreign stock barrier option with a strike in a foreign currency, foreign stock barrier option with a strike in the domestic currency, quanto barrier option with a given exchange rate, and foreign currency quanto barrier option. Keywords: Quanto option, Barrier option, In-Out Parity, Put-Call parity. JEL Classification: C02, G13
Identify and Ranking the Factors Affecting Recruitment and Retention of Corporate Customers within Banking System	106-118
Majid Esmaeilpour and Hadis Azargoon
Abstract: Customers are considered as key factor in banks' activities. Recruitment and retention of corporate customers pave the way for continuous growth and development of banks. Hence, today recruitment and retention of corporate customers pave the way to realize all aims, strategies and resources at successful banks. This will not be possible without examination of customers' demands and awareness from factors affecting recruitment and retention of corporate customers. The present paper considers this point which factors affect recruitment and retention of corporate customers in banking system and how is the priority given to these factors? The present paper is an applied research type, for which a descriptive survey has been used for data collection. The statistical population consists of corporate customers at branches of Bank Melli-city of Bushehr selected using simple random sampling method. The questionnaire has been used as data collection instrument, that the validity and reliability of it has been confirmed. Using exploratory factor analysis, eight factors have been recognized as factors affecting recruitment and retention of corporate customers. The results of this study indicated that reputation and security are the most important factors affecting recruitment and retention of corporate customers, yet diversity at banking services is the least important factor affecting recruitment and retention of corporate customers. Keywords: Recruitment of customer; Retention of customer, Factors affecting recruitment and retention of corporate customers, Corporate customers.
Performance of Technical Trading Rules: Evidence from the Thai Stock Index	119-131
Piyapas Tharavanij, Vasan Siraprapasiri, Kittichai Rajchamaha and Kaipichit Ruengsrichaiya
Abstract: This paper investigates the profitability of technical trading rules in the Stock Exchange of Thailand (SET). The data cover a period of fourteen years from January 2000 to December 2013. The instrument investigated is the stock market index (SET index). Trading strategies studied include Moving Average Convergence-Divergence (MACD), Relative Strength Index (RSI), Stochastic Oscillator (STO) and Stochastic Oscillator crossing its own moving average (STOD). Results are then compared to the benchmark of a passive Buy-and-Hold (BH) strategy. Our results show that strategies based on MACD and STOD outperform a BH strategy, while those based on RSI and STO underperform. These profitable strategies are also much less risky than a BH strategy as measured by the Highest Open Drawdown (HOD), which is the maximum drop from an initial equity investment. In fact, the MACD strategies even yield net positive returns after transaction costs. With optimized parameters, profitable strategies yield even higher average returns with lower risks. Overall, our empirical results support the notion that the stock market is at least close to weak-form efficient as popular technical trading strategies (except the MACD strategies) could not earn excess returns after transaction costs. Keywords: Technical Analysis, Trading System, Trading Rule JEL Classification Codes: G12, G14
Acquisition Activities of Public Sector Banks in India and its Impact on Shareholders’ Wealth	132-140
S.Venkatesan and K.Govindarajan
Abstract: This paper examines the stock market reaction to announcement of acquisition deals of Public sector banks in India between 1995 and 2006 in creating additional wealth to shareholders. To evaluate the wealth creation to the shareholders, Abnormal returns and Cumulative abnormal returns are calculated using Market model with BSE 100 index as benchmark. The results of the analysis show that acquisition activities of Public sector banks have a significant positive impact on shareholders’ wealth. According to the results, the maximum gain to the shareholders is found to be only in post-event periods and not in pre-event periods against leakage of information. Keywords: Event study, Abnormal Returns, Cumulative Abnormal Returns, Market Model