International Research Journal of Finance and Economics  Issue 169  September, 2018

 

Equitization and Its Impact on Firm Performance in A Transition Economy	7-22
Nguyen Van Tan
Abstract: This study examines the importance related theories explaining the impact of privatization on firm performance after privatization, from which the author outlines the possibility of applying these theories to explain firm performance after equitization in Vietnam. In addition, this study provides an overview of equitization progress in Vietnam as well as an overview of the methods used to assess the impact of privatization on firm performance after privatization which can be applicable to the case of equitization in Vietnam. Through the quantitative approach with the application of propensity score matching and differences-in-differences techniques, the study proposes a new method though regression models for assessing the impact of equatization on firm performance of equitized state own enterprises in Vietnam. The results of the study show that previous studies still have several limmitations in methods to assess the impact of privatization on firm performance after privatization. In addition, the results of the study show that equitisation does not always have positive impact on firm performance of equitized state-owned enterprises after equitization in Vietnam. Keywords: Equitization, privatization, firm performance, IPO. JEL Classification: G34
Information Environment of IFRS Adoption and Cost of Debt Capital: Evidence from South Africa	23-37
Michael Yeboah and Andras Takacs
Abstract: Purpose: This paper examines the economic consequences of the cost of debt capital of IFRS adoption and information environment of South Africa listed mining and manufacturing firms. Approach: The study uses 49 firms of firm-year observations of 637 for the period 2001-2014. Both OLS, as well as panel data estimation techniques, are employed as the main data analysis. We theorize that the inherent quality of IFRS adoption effect will reduce the cost of debt capital, as quality macroeconomic factors reduce the cost of debt capital. Findings: Results showed that IFRS and information asymmetry achieve positive and significant relationships with the cost of debt capital, representing an increase in the cost of debt. Macroeconomic factors have no significant overall effects on the cost of debt capital under IFRS, such factors are crucial for accounting standards outcome. Originality: Our study is one of the few to examine the effect of IFRS adoption of analyst following, information asymmetry and managerial opportunism in a South African context. Our results are also particularly relevant for policy decisions in light of the increased interest by debt-holders and policymakers, in the relationship between IFRS and raising debt capital option in mining and manufacturing firms in South Africa. Keywords: Cost of debt capital, Macroeconomic factors, IFRS, Panel data regression, South Africa. JEL Classification: M41; N67; N17; E44; C33
Equitization and Firm Performance in Vietnam: Theory and Practice	38-56
Nguyen Van Tan
Abstract: This study examines roles of privatization theories explaining firm performance after privatization in certain countries and in Vietnam, whereby the author suggests the possibility of applying these theories to explain the impact of equitization in Vietnam. In addition, this study also provides an overview of equitization process in Vietnam in terms of stages theory approach. Empirical studies show that privatization does not always help businesses to operate more efficiently after privatization, especially in Vietnam. Through the application of qualitative research methodology to revise previous theories and empirical studies, the author concludes that empirical studies have different results on the effect of privatization on firm performance after privatization due to the lack of suitable theory to explain the cyclical effect of privatization on firm performance after privatization. Privatization stage is also a determinant of firm performance after privatization. The author proposes to develop a new theory to explain the stage nature of privatization program and new methods for measuring the impact of equitization on firm performance in Vietnam as well as in other countries. Keywords: Equitization, privatization, firm performance, IPO. JEL Classification: L25
Fiscal Policy in a Fixed Exchange Rate Regime	57-69
Chung-Fu Lai
Abstract: In this paper, the New Open Economy Macroeconomics is used as the analytical framework for establishing a two-country model which fits the imperfectly competitive market structure and has a micro-foundation in order to explore the long-term effects of government spending shock on the macroeconomic variables (e.g. consumption, output, price, and terms of trade) in a fixed exchange rate regime. This paper also attempts to explain the roles of consumption home bias. Through theoretical derivation and simulated analysis, we found that, under a fixed exchange rate regime, over a long-term, without considering the behavior of the consumption home bias, government spending shows a positive relation with the output, but a negative relation with consumption, price index and terms of trade. Once the asymmetry of consumption bias behaviors, such as “consumers of both countries have consumption bias towards the products produced in the home country” is considered, the relation of government spending with consumption, output and price will be reversed. Keywords: Fiscal Policy, Consumption Home Bias, Fixed Exchange Rate Regime, New Open Economy Macroeconomics. JEL Classification: E62, F41
The Effects of Tariff Shocks in a New Open Economy Macroeconomics Model with Consumption Home Bias	70-83
Chung-Fu Lai and Yi-Wen Tseng
Abstract: The analytical framework of this paper is based on the New Open Economy Macroeconomics with the purpose to explore the long-term effects of the tariff policy on the various macroeconomic variables (such as, consumption, output, prices, exchange rate, terms of trade, etc.), and to explain the role of consumption home bias. Through theoretical derivation and simulation analysis, we found that there is a negative correlation between the tariff policy and the exchange rate, the effects of tariff policy on the variables of consumption, output, price index and terms of trade would be influenced by the home (foreign) consumers’ preference behavior of imported and exported goods. When there exist asymmetry in consumption bias behaviors of the home and foreign country, reversals may occur as a result of the tariff policy on consumption, output, price index and terms of trade. Keywords: Tariff Shocks, Consumption Home Bias, Micro-Foundation, New Open Economy Macroeconomics. JEL Classification:
Transportation Costs, Country Size and Exchange Rate Dynamics	84-95
Chung-Fu Lai
Abstract: This paper examines how exchange rate dynamics will be affected by an increase in the transportation cost, and investigates the role of country size with a two-country New Open Economy Macroeconomics. According to the results of theoretical analysis, we find that if the size of home country is larger (smaller) than the foreign country, a mis-adjustment (undershooting) path of exchange rate possesses with the higher transportation cost, if two countries are of equal size, the transportation cost doesn't affect the short-run exchange rate, but an increase in the transportation cost reduces long-run exchange rate. Furthermore, this paper also finds that an increases in the transportation cost increases the extent of exchange rate volatility with the higher the elasticity of the marginal utility of real money demand, the lower the elasticity of substitution between goods, the lower the percentage of local firms with pricing-to-market, or the lower the percentage of foreign firms with pricing-to-market, this is because the degree of correlation between money demand and consumption is lower with the existence of transportation cost, hence the exchange rate must present the excessive adjustment in order to re-achieve the new equilibrium position of the money market. Keywords: Transportation Costs, Exchange Rate Dynamics, New Open Economy Macroeconomics, Pricing-to-Market, Country Size. JEL Classification: F19, F41
Costumer Loyalty of E-Marketing, Regarding to Brand Image, Service Quality, and Trust	96-112
Isma Azis Riu, Muhammad Asdar, Haris Maupa and Jusni
Abstract: This study may contribute to the body of relationship marketing knowledge to find out either the influence of brand image, online service quality, and trust on customer loyalty and the mediating role of e-marketing usage in the value–loyalty relationship, or the issue of the ambiguous effect of e-marketing usage on loyalty. The overall moderating effects of e-marketing usage upon customer loyalty have been found to be insignificant. The study involves an application to a rapidly developed small medium industry in South Sulawesi Province, online services, to test the propositions. The research sites are in Makassar, Pare-pare, Palopo, Bulukumba, and Bone. The population of this research is all companies doing online business in South Sulawesi in the form of small business that market their products through Facebook, BlackBerry Messenger, Instagram, Whatsapp, Line, Path, and some internet blog. The sample selection for this research were 125 small online businesses engaged in the production and marketing of food products, beverages, convection, and souvenirs. Researchers have recently called for devoting more efforts to understanding customer loyalty on online services (Zeithaml, & Bitner, 2003). The present study attempts to reduce this gap by investigating the interrelationships among the four constructs in the setting of business to consumer electronic commerce. E-marketing practices can alter corporate strategy in a business strategy. At least there are new factors that can affect the assessment of a business. The research conducted by Chiou et al (2002) showed a significant positive influence between trust and customer loyalty. In addition, e-marketing can improve its services and provide accommodation through a network of computers or gadgets anywhere and anytime quickly, easily and safely as they are supported by a strong security system. According to Nilsson et.al (2001) online business services strengthen customer satisfaction and business performance, online business services according to Yen Yen et.al (2001) build trust and customer loyalty to dominate the market. The result in, the quality of online services and has an effect on the customer loyalty, but the brand image, trust, and the use of e-marketing have no effect on customer loyalty. Brand Image, trust and the quality of online services do not affect the use of E-marketing. There is strong mediation of the use of e-marketing toward the influence of brand image, trust, and online service quality on the loyalty. Keywords: Brand Image, Trust, Online Services Quality. The Use of e-marketing, Customer Loyalty, Online Business SMEs. JEL Classification:
Performance Evaluation and Stock Selection based on Technical Indicators-RSI, MFI, MACD, Awesome, Momentum and Stochastic Indicators	113-129
Middi Appala Raju and Middi Venkata Sai Rishita
Abstract: An Index is a thorough measure of market patterns, planned for financial specialists who are worried with general securities exchange value developments. An Index contains stocks that have expansive liquidity and market capitalization. The Index esteem analyzes the day's market capitalization opposite base capitalization and demonstrates how costs all in all have moved over a timeframe. Use of technical indicators to trade in the stock market, commodity market or forex market is not new and it is in use for the past many decades but yet not many people use them as they find them little tricky and complex to understand. The main aim of this study is to use different technical indicators for the purpose of stock trading on Indian Stock Exchanges in cash market and evaluate the performance of selected technical indicators. For this study six important technical indicators namely Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Money Flow Index (MFI), Stochastic Oscillator, Awesome Oscillator & Momentum Oscillator. In this study six technical indicators are used and trades are taken according to them but it is wise to keep in mind the human factor cannot be separated from trading strategies where there is money involved. Apart from this human can take decisions in situation which are beyond the capabilities of any indicator. Keywords: Market Pattern: Index: Human Factor: Technical Indicators; Market Capitalization: Stochastic. JEL Classification: