American Markets Research Articles

Multifractal Analysis of the Interaction between Chinese and American Stock Markets

In this paper, we select yield series of the SSE index and the S & P 500 index as the research object. Firstly, we take the financial crisis as the dividing point, and decompose the whole sample period into three periods: before the financial crisis, during the financial crisis, and after the financial crisis. Secondly, the degree of interaction between Chinese and American stock markets was tested and calculated in stages, and the cross-correlation relationship became more significant after the financial crisis. Then the MF-DCCA method is used to analyze the multifractal interaction of the whole period. It is found that the interaction relationship is multifractal in the short-term and long-term, and shows stronger in the short-term. In addition, the interaction relationship is persistent for small fluctuations in the short-term, and it is anti-sustainability in the case of large fluctuations; it is persistent in all fluctuations in the long run. Finally, the multifractal analysis was carried out for the three periods. It was found that during the financial crisis, the interaction had stronger multifractality and volatility, and the risk was higher.

Branding Strategy for Entry into New Latin American Markets An Institutional and Cultural Approach; Bimbo Case

The main objective of this article is to analyze theories of institutions and culture approach, and relevant aspects that could influence entrepreneurs in entering new Latin markets. Using a qualitative research methodology, this research analyzed the application of branding strategies used by �Bimbo� one of the most influential companies in the baking industry worldwide, to enter new Latin American markets including Argentina, Brazil and Peru. Graphic forms of some banding strategies are revised and analyzed in this paper as well as the branding process. This paper concludes by deliberating the successes of Bimbo in entering new markets. It discusses all major success factors identified in the strategy in which included culture, consumption habits, customs, values and laws; fundamental aspects to be considered in entering a new Latin market.

Adaptive efficiency of the Mexican Stock Exchange

PropósitoEste documento analiza la eficiencia adaptativa del mercado para la relación precio-volumen de las empresas que cotizan en la Bolsa Mexicana de Valores. El periodo bajo estudio es de 1982 a 2015. Para detectar causalidad y determinar la eficiencia adaptativa del mercado, se aplicó una prueba lineal y dos no-lineales. Existen pocos documentos en la literatura que estudien la relación precio-volumen en mercados latinoamericanos. Como tal, este documento puede ser de interés e importancia tanto para académicos como para profesionales de las finanzas.MetodologíaSe aplicó la prueba de causalidad no-paramétrica de Diks y Panchenko y la prueba de bicorrelación cruzada de Brooks y Hinich.HallazgosDerivado de la prueba DP, los hallazgos muestran que existe causalidad no-lineal bidireccional en 25.71% de las empresas bajo estudio, comparado a un 8% cuando se aplica la prueba de causalidad lineal de Granger. Por lo tanto, existe evidencia de eficiencia en forma débil del mercado. De la pruba BH, se muestra evidencia de eficiencia adaptativa del mercado, dado que el 71.42% de las empresas exhibieron alguna forma de dependencia no-lineal en ciertos periodos de tiempo. Con estos resultados, el proceso de información debe ser mejor estudiado para una mayor comprensión de las políticas regulatorias del mercado y mejores herramientas para la toma de decisiones por los inversionistas.OriginalidadEste documento complementa los estudios sobre la relación precio-volumen y la eficiencia en un mercado latinoamericano.

Co-Movements between Latin American and US Stock Markets: Convergence After the Financial Crisis?

Since 1980, the world has been undergoing a continuous process of integration in different aspects, and financial markets are no exception to this development. Even though global integration is gradual, specific events can accelerate this trend. This article shows that after the financial crisis of 2008, which was especially acute in the United States, the Latin American stock markets have exhibited a higher level of convergence, as measured by the correlation between the annual returns of their stock market indices. Additionally, we find convergence in the coefficient of co-movements between Latin American and the US stock markets using dynamic linear models at the regional level. In particular, we uncover consistent movements between the daily annual returns of the Latin American indices and the S&P index after the financial crisis. This kind of convergence might signal an acceleration of the virtual integration process in Latin America stock markets located in different countries, which has seen slow development since its beginning a few years ago.RESUMENPrincipalmente a partir de los años 1980, el mundo está enfrentando un continuo proceso de integración en diversos aspectos y los mercados financieros no son una excepción en cuanto a este desarrollo. A pesar de ser una integración gradual, encontramos eventos específicos que pueden ayudar a acelerar esta tendencia. Este trabajo muestra que después de la crisis de 2008, que ocurrió principalmente en Estados Unidos, los mercados de valores latinoamericanos presentaron un nivel más alto de convergencia, medido especialmente por la correlación entre los retornos anuales de los índices de sus bolsas de valores. Además, mediante el uso de modelos lineares dinámicos al nivel regional, también encontramos convergencia en el coeficiente de los comovimientos entre los mercados de valores de América Latina y EE.UU. Este tipo de convergencia puede ser una señal para que aceleremos el proceso de integración virtual en los mercados de valores de América Latina, ubicados en varios países, que ha tenido una evolución lenta desde su inicio, algunos años atrás.RESUMONotadamente a partir dos anos 1980, o mundo começou a presenciar um processo contínuo de integração em diversos aspectos e o mercado financeiro não é uma exceção neste avanço. Apesar de a integração global ser gradual, podemos encontrar eventos específicos, capazes de ajudar a acelerar esta tendência. O presente trabalho mostra que após a crise financeira de 2008, ocorrida principalmente nos Estados Unidos, os mercados acionários da América Latina apresentaram um índice mais elevado de convergência, medido pela correlação entre os retornos anuais dos índices de suas bolsas de valores. Também encontramos convergência no coeficiente dos comovimentos entre os mercados acionários da América Latina e EUA, com o uso de modelos lineares dinâmicos no âmbito regional. Constatamos, especificamente, movimentos consistentes nos retornos anuais diários dos índices latino-americanos e do índice S&P, após a crise financeira. Esse tipo de convergência pode ser um sinal da aceleração do processo de integração virtual nos mercados acionários da América Latina, situados em diversos países, que têm apresentado desenvolvimento lento desde seu início, alguns anos atrás.

Analysis of the Differences and Linkage between Chinese and American Stock Markets

This paper compares the stock markets of China and the United States from several aspects, such as the first class IPO market mechanism, secondary security market mechanism, and the market supervision mechanism. Overall, China’s stock market lags behind the United States stock market. Then, this paper expounds the transmission channel of stock market linkage and the related theory of stock market linkage. Through the trade between countries, the economic spillover effect, the gradual increase of transnational listing, and the globalization of stock companies, the paper explores the related ways of Chinese and American stock markets from four aspects, and tries to analyze the formation mechanism of the linkage between China and America stock markets in four channels: International trade, financial capital, policy and expectation. Finally, a conclusion is drawn: With the development of China’s economy and opening of the stock market system, the stock market linkage between China and the United States is increasing gradually.

Branding Strategy for Entry to New Latin American Markets an Institutional and Cultural approach Bimbo Case

Branding Strategy for Entry to New Latin American Markets an Institutional and Cultural approach Bimbo Case

An Evaluation of the Effects of Motivation, Satisfaction on Destination Loyalty: Case Study Tourism Malaysia

In tourism literature, stimulation of motivation on tourist journey is one of the vital aspect. This study analyzed the satisfaction and loyalty based on a sample of 200 respondents from four regions, namely Southeast Asia, West Asia, Europe and America. The selection of four regions was due to several reasons which are, i) market for Southeast Asia is the leading supplier of arrivals, ii) Western Asian markets showed an increase in the arrival of the high impact of the September 11th incident, iii) European and American Markets were to represent the market of developed countries. This study, based on the method of Strutural Equatation Model (SEM) using Statistical Package for Social Science version (SPSS 21.0) and Analysis of Moment Structures 5 (AMOS 5) as a tool of analysis. SEM methods used to test the analysis of cause, and effect variables are independent and dependent variables as well as specific information to estimate the structural equation model based on variance value. It was used to test Exploratory Factor Analysis (EFA) and AMOS 5 used to test Confirmatory Factor Analysis (CFA). Results of this study found that the assessment made by foreign visitors to the Malaysia tourism products and services is positive. As a result, the experience will create loyalty to Malaysia's tourism industry in the form of repeat visits (β: 0.547, t-test: 7.472 ***) and promote the destination to friends and relatives that have the potential to make visits (β: 0.794, the t-test: 8.623 ***). However, it was found that the value of the coefficient of regression for stimulus push is low for satisfaction (β: 0.228, t-test: 1.976 **). This findings could be used as guidance to the authorities and operators, policy makers in knowing real satisfaction that stimulates tourist arrivals to Malaysia.Int. J. Soc. Sc. Manage. Vol. 4, Issue-2: 137-147

Internationalization Strategies Underlying the Performance of Foreign Banks in Latin American Markets

ABSTRACTIn this article, we evaluate the internationalization strategies underlying the performance of foreign banks in Latin American countries. Based on a multiple case study, we investigated the organizational paths in the study countries, the market segments served and performance. Our results show that it is possible to consider both economic and behavioral perspectives in this kind of analysis in order to map the entry modes and features of large banks in the study countries. We observed that some banks may have similar strategies in local markets, with particular emphasis on local adaptation, while others seem to promote the development of previous corporate characteristics.

Model-Based versus Model-Free Implied Volatility:Evidence from North American, European, and Asian Index Option Markets

The Black–Scholes (BS) implied volatility is well known to be a rather noisy forecast of future volatility. On the one hand, it has the advantage of potentially incorporating current information that cannot be captured by any statistical technique that relies on historical data. On the other hand, it is “risk neutral,” meaning that the market’s true volatility forecasts are distorted by risk preferences. But no other pricing model has taken the place of BS, so the forecasting performance “horse race” has been between BS IVs versus statistical models such as GARCH. In recent years, “model-free” implied volatility (MFIV) is becoming more common. MFIV is extracted from the entire set of current option prices without the need to assume any specific pricing model. That is certainly a desirable property, but there are a variety of methodological issues in calculating and using MFIV. In this article, Biktimirov and Wang conduct a serious horse race among these models, looking at how much each one contributes to forecast accuracy in predicting future volatility in 13 major international stock markets over a 10-year period. The winner, somewhat surprisingly, is BS IV, both in terms of in-sample “encompassing” models that include several forecasts in the same combined specification and also in out-of-sample forecasting.

Model-Based versus Model-Free Implied Volatility: Evidence from North American, European, and Asian Index Option Markets

Model-Based versus Model-Free Implied Volatility: Evidence from North American, European, and Asian Index Option Markets

Value Premium and Country Risk as Conditional Risk Factors in Major Latin American Markets

ABSTRACTAsset pricing is a widely explored theme in the financial literature. Nevertheless, the value premium phenomenon remains controversial because although it is easily detected in developed and emerging markets, little is actually known about the economic forces that explain its existence. In this context, this article aims to identify the value premium in major Latin American markets, as well as to determine whether the country risk could be considered an additional risk factor for conditional returns in the region that is not yet captured by the value premium. To this end, a model containing five factors, developed by adding the country risk factor to the model presented by Carhart (1997), was proposed. The statistical procedure adopted was that of Fama and French (1993) for the period between 1994 and 2012, and the data used were those from nonfinancial companies listed on the stock exchanges of Argentina, Brazil, Chile, and Mexico. We confirmed the existence of the value premium in three of the four markets analyzed: Argentina, Brazil, and Chile. The country risk and the value premium were significant factors in explaining conditional returns in only one of these countries, Brazil.

Regional Supplier Associations as the Producers of Transnational Club Goods in Latin American and Caribbean Utility Markets

There is growing the consensus that regional regulatory agencies provide regional club goods, however; there is little evidence of the impact of the collaborations of the utility providers themselves in the literature. Our study analyzes whether regional networks such as the Caribbean Electric Utility corporation contribute to solving energy issues in Latin America and the Caribbean. Networks of operators provide cross -border services, and operating as a single entity improves the lobbying opportunities of operators to influence policy. Results suggest that utilities that formed linkages or cooperation regionally are likely to benefit from such collaborations, but a comprehensive approach to capacity building and reform is needed to address the regions energy issues.

: Oli (Strategies for Korean Smes to Break into Latin American Markets: Based on the Oli Paradigm)

Korean Abstract: 중남미 지역이 안정적인 성장을 계속하며 한국기업에 기회의 땅으로 다가오고 있다. 본 연구는 중남미 국가 가운데 우리의 중소기업들이 가장 효과적으로 접근하거나 진출할 수 있는 남미 대륙의 서북쪽 태평양 연안에 위치한 콜롬비아와 페루, 칠레의 안데스(Andean) 3국을 연구 분석의 대상국으로 삼았다.중남미 국가 가운데 이들 안데스 3국은 우리나라와 자유무역협정(FTA)을 맺은 중남미의 유일한 3국일 뿐만 아니라, 태평양에 자리한 지리적 위치와 성장 잠재력 측면에서도 우리 중소기업들이 진출하기에 양호한 조건을 보유하고 있다. 특히 최근 이들 안데스 3국과 멕시코 4개국은 ‘태평양동맹(Alianza del Pacifico)’을 창설해 중남미 대륙의 태평양 연안 지역을 대표하는 강력한 경제공동체로 급부상하고 있다.이 연구의 목적은 중남미 국가 가운데 안데스 3국의 경제 현황, 인프라, 산업구성, 정부정책 등을 분석하여 한국 중소기업의 진출 유망 분야와 유망 지역을 선정한 후, 한국 중소기업의 산업 분야별 현지 시장에서의 경쟁력을 평가하여 한국 중소기업의 현지국 진출방안과 관련정책을 모색하는 데 있다.이를 위해 본 연구는 우리 기업의 중남미 안데스 3국에 대한 수출입 통계와 투자동향, 현지국의 경쟁환경 등을 심층 분석하여 관련 중소기업의 진출 가능성을 검토하는 한편, 해외직접투자이론 가운데 하나인 OLI 패러다임(절충이론)과 단계적 진입이론 등을 통해 한국 중소기업의 중남미 지역 수출과 투자 현상을 설명하고 진출 확대방안을 탐색한다.English Abstract: Central and South America is approaching to Korea companies as a land of opportunities continuing a stable growth. This research covered the three countries around northwest-pacific, Colombia, Peru and Chile (“Andean three countries”), where our SMEs can access or enter into its market in the most effective way.Among Central and South American countries, Andean three countries not only signed the Free Trade Agreement with Korea but also have a great condition in order that our SMEs can make inroad to its market in view of both geographical position and potentiality of growth. In particular, Andean three countries and Mexico established the economy community, the Pacific Alliance (Alianza del Pacifico), and its economic community is strongly emerging as a representative of Pacific coast of Central and South America.The main purpose of this research is: (a) to analyze the present condition of economy, infrastructure, industrial composition, government policy, etc, (b) to evaluate the competitiveness of Korean SMEs in each industry field of local market after choosing the promising field and area to make inroad for their business, and (c) to seek the plans for expansion of Korean SMEs' business in the local market and the related policies.

Impacts Of The 2008 Financial Crisis On South American Equity Markets

This paper examines the transmission of the 2008 US financial crisis to four Latin American stock markets using daily stock returns from 2006 to 2009, analyzing returns before and during the 2008 financial crisis. The empirical evidence presents a financial integration by showing persistently higher volatility during the crisis period. This indicates that most of the stock markets in this study were severely hit by the US financial crisis. However, the evidence shows that Chile was less impacted by the 2008 financial crisis. The results here could be useful in international portfolio diversification decision-making in South American region.

Chinese Competition and Brazilian Exports of Manufactures

In recent years concerns have been raised over the impact of Chinese competition on Latin American exports, particularly those from Mexico. This article shows that Brazilian manufactured exports too have been negatively affected, and that this has been reflected in the “primarization” of Brazilian exports and a declining share in the import markets of its major customers. A variety of different indicators were used to analyse the extent to which Brazilian exports have faced competition from China. Constant Market Share analysis was then applied to estimate the quantitative significance of Chinese competition for Brazilian exports. This shows that Brazil has lost markets to China in the USA, in the EU and in its major Latin American markets, particularly since 2004. This has occurred not only in low-technology products but also increasingly in high-technology products, and Brazil has not been able to compensate for losses to China through increasing exports of more sophisticated products. It was also found that Chinese competition intensified in the Latin American market following the global financial crisis.

Quality Evaluation of Medicinal Products and Health Foods Containing Chaste Berry (<i>Vitex agnus-castus</i>) in Japanese, European and American Markets

The aim of present study was to evaluate the qualities of chaste berry (fruit of Vitex agnus-castus L.) preparations using HPLC fingerprint analysis. Seven medicinal products 1 from Japan and 6 from Europe, and 17 health foods, 6 from Japan and 11 from the United States were analyzed. HPLC profile and 26 authentic peaks were compared medicinal products and health foods. Whereas medicinal products had similar HPLC profiles, health foods had various profiles and each peak was also greatly different. The measured amounts of two markers in 5 traditional medicinal products, agnuside and casticin specified in the European Pharmacopoeia (EP), the U.S. Pharmacopoeia (USP) or the WHO monographs of chaste berry, were much lower than those in 2 medicinal products defined as "well-established use" by the European Medicines Agency. The amounts of two markers for 17 health foods differed in a great deal from 14-5054% and 3-1272%, respectively. Furthermore the amount ratios of two markers, agnuside/casticin, in about half of the health foods were remarkably larger than the standard crude drug and the ratios were closer to one of the related Chinese herbs, Vitex negundo L. It is concluded that a combination of HPLC fingerprints and the amount ratios of the marker compounds of chaste berry preparations serves as a useful tool to evaluate the qualities of these preparations.

Does Corporate Governance Influence Earnings Management in Latin American Markets?

Although US and European research has documented improvement in earnings quality associated with corporate governance characteristics, the situation in Latin America is questionable, given the business environment in which firms operate, which is characterized by controlling family ownership and weak legal protection. The purpose of this study is to examine the relation between the internal mechanisms of Corporate Governance and Earnings Management measured by discretionary accrual. We use a sample of listed Latin American non-financial companies from the period 2006–2009. Our results show how in the Latin American context the role of external directors is limited and that Boards which meet more frequently take a more active position in the monitoring of insiders, so showing a lower use of manipulative practices. In addition, we find a non-linear relation between insider ownership and discretionary accruals, also pointing to the fact that ownership concentration may be a manipulative practices constrictor mechanism only when the ownership of main shareholders is moderate. The findings have important policy implications since this is, to the best of our knowledge, the first study to analyze the relation between the effectiveness of the government and the earnings management behavior. As policy implications, we document how when a country implements controls aimed at reducing corruption, strengthening the rule of law or improving the effectiveness of government, this leads to a reduction in firm earnings management.

Modelling Dependence in Latin American Markets Using Copula Functions

Two important issues in the analysis of association among financial markets are the degree of dependence and the underlying shape commanding the cross-market dependencies, so that any model used to describe this association must cope with both the issues. In the study presented in this article, we approach the modelling of dependence in two stages. The first stage is based on modelling the dependence between the returns of two assets by means of a single Archimedean copula, whereas the second one takes advantage of the mixture between copulas to gain the necessary flexibility to capture different tail dependence patterns. Both stages have been followed in modelling the dependence among the daily returns of seven Latin American country indices, a regional index and a worldwide index. Our findings have important implications for portfolio risk management. JEL Classification: G11, G15

The Main World Wine Exporters and their Development Strategies in the American and Soviet Markets: Comparison and Evolutionary Trends

The Main World Wine Exporters and their Development Strategies in the American and Soviet Markets: Comparison and Evolutionary Trends

Translating the Watcher’s Voice: Junot Díaz’s The Brief Wondrous Life of Oscar Wao into Spanish

This article offers an analysis of the Spanish translation of The Brief Wondrous Life of Oscar Wao by Dominican-American author Junot Díaz. We look at how the translation by Cuban author Achy Obejas affects the narrative situation, and in particular the solidarity relation between narrator and narratee. In the original, this solidarity relation depends on various forms of intra- and interlingual heteroglossia, which define the narrator’s voice as ethnically and racially marked. While the translation does to some degree neutralize this narrative voice, we argue that the Spanish version does not so much reduce as displace the solidarity effects embedded in the ST onto the relation between the implied author and reader of the TT. We further point attention to some of the differences between the two editions of the translation, directed at European and Latin American markets (Mondadori) and the North American market (Vintage Español) respectively. Surprisingly, the latter uses various paratextual insertions to construct an implied reader at some remove from the bilingual milieu in which the novel is set, and with which many Spanish-language readers in North America are highly familiar.