Market Breadth Research Articles

The integration and challenges of digital economy with the tourism industry: Evidence from the Yellow River Basin in China

As the global economic landscape evolves, the digital economy becomes a central domain, gradually deepening and widening its confluence with diverse fields. This study aims to systematically explain the intricacies and dynamics of the amalgamation of the digital economy with tourism within the Yellow River Basin. The study builds an evaluative framework based on integrative development mechanisms; this study measures the combined development between the tourism industry and the digital economy between 2011 and 2021. After this quantification, it delves into their unified growth spatiotemporal nuances and discerns impediments based on an obstacle degree analysis. As far as development is concerned, a paradigm of “dual-track convergence” is observed in the Basin, showcasing the gradual ascension of digitalization and diversification of tourism. Regarding the coupling coordination degree (CCD), the nexus between the two exhibits temporal dynamics of a “spiral ascent followed by a transient descent” and a spatial “U-shaped differentiation,” undoubtedly reflecting the vivacity and heterogeneity inherent in their integration.Regarding impediments, the analysis reveals a multifaceted dynamism of barriers across various strata. Systemically, the tourism sector encounters escalating hindrances, with digital infrastructure and market breadth constituting predominant sectoral bottlenecks. On the indicator plane, critical limiting factors include tourism's foreign exchange earnings, the influx of inbound tourists, the proliferation of web pages, e-commerce turnover, and the count of corporate entities within the software and information technology services domain. This study is based on the theory of collaborative development and offers nuanced recommendations by dissecting the co-progress of tourism and the digital economy. The insights tendered herein profoundly impact China and the global community in fostering the common proliferation in both fields.

Can Academic Startups be Broad? How Problem Formulation Shapes Market Breadth Among Startups in AI

Can Academic Startups be Broad? How Problem Formulation Shapes Market Breadth Among Startups in AI

The man in the middle—liquidity provision under central clearing in the credit default swap market: A regression discontinuity approach

AbstractIn this study, I analyze the effect of central clearing on credit default swap (CDS) market breadth, depth, and resiliency using a regression discontinuity design. I find evidence for a decrease in absolute bid–ask spreads and bid–ask spread resiliency and an increase in gross trading volume with the beginning of central clearing. However, we observe positive effects of central clearing on CDS market liquidity only for CDS contracts of high fundamental and liquidity risk. Further results indicate that lower trading frictions, that is, counterparty risk and regulatory capital charges, may explain the positive effects of central clearing on CDS market liquidity.

Herding for profits: Market breadth and the cross-section of global equity returns

This paper shows that market breadth, i.e. the difference between the average number of rising stocks and the average number of falling stocks within a portfolio, is a robust predictor of future stock returns on market and industry portfolios for 64 countries for the period between 1973 and 2018. We link the market breadth with herd behavior and show that high market breadth portfolios significantly outperform low market breadth portfolios, and that this effect is robust to effects such as size, style, volatility, skewness, momentum, and trend-following signals. In addition, the role of market breadth is particularly strong among markets characterized by high limits to arbitrage, following bullish periods, and in collectivistic societies, supporting behavioral explanations of the phenomenon. We also examine practical implications of the effect and our results indicate that the effect may be employed for equity allocation and market timing, although frequent portfolio rebalancing can lead to higher transaction costs that may affect profitability.

The Arms Index aka TRIN

In this paper we provide an in-depth analysis of the socalled Arms Index (aka. TRIN) which is named after Richard Arms who introduced this technical indicator in 1967. It became a fundamental indicator widely used and published in online and print media, Wall Street Journal and CNBC for example. The index is used as a market breadth indicator, used to interpret overbought and oversold market environments. A critical analysis of this index and a more detailed look at the mathematics shows some flaws which we address and helps interpret the value and range of this indicator.

Herding for Profits: Market Breadth and the Cross-Section of Global Equity Returns

This paper shows that market breadth, i.e. the difference between the average number of rising stocks and the average number of falling stocks within a portfolio, is a robust predictor of future stock returns on market and industry portfolios for 64 countries for the period between 1973 and 2018. We link the market breadth with herd behavior and show that high market breadth portfolios significantly outperform low market breadth portfolios, and that this effect is robust to effects such as size, style, volatility, skewness, momentum, and trend-following signals. In addition, the role of market breadth is particularly strong among markets characterized by high limits to arbitrage, following bullish periods, and in collectivistic societies, supporting behavioral explanations of the phenomenon. We also examine practical implications of the effect and our results indicate that the effect may be employed for equity allocation and market timing, although frequent portfolio rebalancing can lead to higher transaction costs that may affect profitability.

Research on the Efficiency Mechanism of P2P in China Based on Financial Function

Based on the data of Internet Finance, the paper analyzes the efficiency mechanism of P2P lending from the aspect of financial function. Through comparing and analyzing the data between the P2P lending platforms, combined with China's current economic situation, and expounds the efficiency mechanism of P2P lending from five aspects, including market breadth, market depth, capital utilization efficiency, information asymmetry and risk reducing. On this basis, the current risks of P2P lending platform are summarized, relevant solutions are proposed.

Advertising and Investor Recognition of Banking Firms: Evidence from Taiwan

This study examines the effect of advertising expenditure on strengthening a firm’s intangible capital and firm value by attracting the public on the firm’s visibility and then investigates the role of advertising expenditures on a banking firm’s market value, liquidity, and breadth of ownership. The empirical results find that the advertising has a significantly positive effect on banking firm’s share value, liquidity, and institutional holdings. Consequently, this study concludes that advertising benefits banking firms through increased investor perceptions of such firms. In particular, the findings provide additional support for the home bias phenomena, in which investors prefer to invest in familiar stocks.

The “Necessity” of New Position Limits in Agricultural Futures Markets: The Verdict from Daily Firm‐level Position Data

AbstractRegulators are proposing new position limits in U.S. commodity futures markets while the actual impact of long‐only index funds on futures prices continues to be debated. Researchers have noted the data limitations—frequency and market breadth—associated with using data compiled by the U.S. Commodity Futures Trading Commission (CFTC). This research addresses these shortfalls by using daily position data for a specific long‐only index fund. The empirical analysis focuses on the firm‐level position data across 13 U.S. agricultural futures markets. The firm‐level data are shown to be representative of the overall index fund industry. Empirical tests fail to find any evidence linking the firm's trading with market returns. However, there does appear to be a consistent negative relationship between the firm's roll transactions and changes in calendar price spreads. Notably, the direction of this impact runs contrary to the price‐pressure hypothesis. The results of this study, and others, indicate that a clear verdict can be reached—new limits on speculation in agricultural futures markets are unnecessary.

개방형 웹 애플리케이션 스토어 연동을 위한 프로토콜의 설계 및 구현

Recently, because the portable devices became popular, it is easily to see that each person carries more than just one portable device and the use of the smartphone stretches as time goes by. After the smartphone has propagated rapidly, the total usage of the smartphone applications has also increased. But still, each application store has a different platform to develop and to apply an application. The application store is divided into two big markets, the Android and the Apple. So the developers have to develop their application by using these two different platforms. Developing into two different platforms almost makes a double development cost. And for the other platforms, the weakness is, which still have a small market breadth like Bada is not about the cost, but about drawing the proper developers for the given platform application development. The web application is rising up as the solution to solve these problems, reducing the cost and time in developing applications for every platform. For web applications don`t need to make a vassal relationship with application markets platform. Which makes it possible for an application to operate properly in every portable devices and reduces the time and cost in developing. Therefore, all of the application markets could be united into one big market through a protocol which will connect each web applications market. But, still there is no standard for the web application store and no current web application store is possible to interlock with other web application stores. In this paper, we are trying to suggest a protocol by developing a prototype and prove that this protocol can supplement the current weakness.

The Place of Financial Markets in the Development Process: Evidence from Nigeria

The paper examines the place of financial markets in the development process in Nigeria. The paper used descriptive approach and discovered that financial markets play fundamental role in the development process. However, the overall performance of the Nigeria’s financial market despite some expansion in recent times has been below its potential. In particular, as propellers of economic development, the markets have not been able to meet their goals such as accelerating industrial development, promoting the rate of investment, generating employment opportunities, providing services that help accelerate poverty reduction, promoting human capital development, and accelerating agricultural productivity. Some of the challenges confronting the Nigeria’s financial markets include; dearth of instruments and lack of market breadth and depth, the oligopolistic structure of the markets, dependence on government, slow growth of the secondary market and information gap and asymmetry. It was therefore recommended that the financial markets should be reformed and effectively harnessed as tools of economic development, and policy makers should create the enabling environment for financial markets to thrive to propel Nigeria to the path of development with a view to achieving Vision 20:2020.

Mutual Fund Performance Persistence, Market Efficiency, and Breadth

In this study we use a comprehensive database of mutual funds and study performance persistence across different styles, regions, and asset classes. While we find strong evidence of performance persistence for some markets, there is weak or no evidence for other markets. Contrary to popular belief, we find no relation between performance persistence and market efficiency. Performance persistence appears to be positively related to market breadth. Our results are inconsistent with anecdotal evidence that the added value of active management is concentrated in less efficient markets. Instead, our results indicate that managerial skill is more pronounced in markets that offer more investment opportunities.

Process-based vs. product-based innovation: Value creation by nanotech ventures

Nanotechnology is frequently heralded as the next wave of technological advance, poised to enable radical innovation across many industries. But as yet little is known about how firms will ultimately create that value. We do know that nanotechnology is based on process innovation, a category of innovation less well understood than product innovation. And we know that new ventures are an important vehicle for commercializing radical technology. As new ventures seek to commercialize nanotechnology, they evolve value creation strategies to better link fundamental scientific advance with the creation of value for users and investors. This paper asks “How do the successful value creation strategies of technology ventures differ in process vs. product-based innovation?”An investigation of 12 ventures representing the extremes of value creation through process-based (nanotech) and product-based (fuel cell) innovation reveals significant differences in their value creation challenges, in the mechanisms of technology–market matching and alliance building, and in their levels of experimentation. Ventures exploiting process innovation faced greater uncertainty in their value chain positioning, market breadth, customization, and the changes required of their customers in contrast to product-based ventures. Our evidence shows that nanotechnology ventures benefit from prioritizing technology–market matching, alliance building and experimenting with technologies in new value networks.

Competing for underwriting market share: The case of commercial banks and securities firms

This study analyzes changes in the underwriting market share of securities firms and commercial banks over a 20-year period that encompasses the deregulation period of 1989–1999. The study finds that, after controlling for firm combination effects, there is no evidence that commercial banks gained share at the expense of ranked traditional underwriters. There is strong evidence that market breadth helps both securities firms and commercial banks to gain market share, whereas greater share in the underwriting of a specific security has the opposite effect on next year's market share. There is supportive but limited evidence that high-volume years favor commercial banks, whereas low-volume years favor prestigious underwriters. The influence of firm-specific factors is limited to a few markets, which may explain the stickiness of underwriting market share of ranked firms over time.

Trading Aggressiveness and Market Breadth Around Earnings Announcements

In a single market, liquidity supply has two dimensions--price measured by the quoted spread, and quantity measured by the quoted depth. A third liquidity dimension, market breath, should be added when multiple markets quote the same security and there are enforceable regulatory penalties for a violation of price priority. We define the breadth of the market as the number of quoting market centers matching the best prices, by side of the market. Regulation NMS introduced a price priority rule mandating that orders be routed to the exchange with the best prices, which, in turn, led to the establishment of high speed communications connections between markets. We study liquidity around earnings announcements for NYSE firms. We find that liquidity suppliers significantly decrease market breath prior to earnings announcements, and that large uninformed liquidity demanders significantly increase their use of Intermarket Sweep Orders (ISOs). ISOs are a more aggressive and expensive trading strategy. In post Regulation NMS markets, we show that market breadth is an important measure of liquidity and significantly affects the level of aggressive trading in the market.

Marketing strategy antecedents of value adding by foreign subsidiaries

PurposeThe purpose of this paper is to extend the knowledge of marketing strategy antecedents of industrial value adding in foreign markets. It attempts to answer the following two questions: how is the marketing strategy of a foreign subsidiary associated with the extent of its value‐adding activity? Is there an association between the extent of value‐adding activity and financial performance of the subsidiary?Design/methodology/approachA model is developed and hypotheses are tested. Data are collected from 191 subsidiaries of Swedish manufacturing firms in Germany, the UK, and the USA.FindingsProduct‐market breadth and market experience positively affect the extent of foreign value adding. Also, market experience has a moderating effect and strengthens the positive association between product‐market breadth and the extent of value adding. A foreign subsidiary's financial performance is positively associated with the number of value‐adding activities of the subsidiary.Research limitations/implicationsThe study shows that the marketing strategy of a foreign subsidiary needs to be acknowledged to understand the antecedents of foreign value‐adding activity. In addition, the extent of value‐adding activity contributes to the implementation of an effective international strategy.Practical implicationsAn industrial firm wanting to implement an effective international marketing strategy needs to pay attention to the links between the marketing strategy of a foreign subsidiary and the extent of the subsidiary's value‐adding activity.Originality/valueThe study is unique in that it applies a subsidiary perspective and focuses on foreign subsidiary strategy associations. The study both extends the common approach, which argues that the value adding of a foreign subsidiary is determined only by the corporate marketing strategy, and explores associations with foreign subsidiary performance.

How many independent bets are there?

The benefits of portfolio diversification are a central tenet implicit in modern financial theory and practice. Linked to diversification is the notion of breadth. Breadth is correctly thought of as the number of independent bets available to an investor. Conventionally, applications using breadth frequently assume only the number of separate bets. There may be a large discrepancy between these two interpretations. We utilise a simple singular-value decomposition and the Kaiser–Guttman stopping criterion to select the integer-valued effective dimensionality of the correlation matrix of returns. In an emerging market such as South Africa, we document an estimated breadth that is considerably lower than anticipated. This lack of diversification may be because of market concentration, exposure to the global commodity cycle and local currency volatility. We discuss some practical extensions to a more statistically correct interpretation of market breadth and its theoretical implications for both global and domestic investors.

Market Breadth, Trin Statistic,and Market Returns

This article investigates the predictability and profitability of two technical indicators that have been well known to practicing analysts for a long time but have yet to be thoroughly examined in the literature: the market breadth and the trin statistic. We find that these indicators show strong predictive power for returns in the near future, but the predictability does weaken drastically or even disappear in the most recent decade. We also investigate profits of the trading strategies based on these indicators and find that they stem mainly from frequent trading. These indicators may present profitable opportunities for investors who can trade small stocks with low transaction costs.

Is sibling rivalry good or bad for high technology organizations?

Inter-unit competition, 1 1 Inter-unit and intra-firm competition is used interchangeably throughout the paper. generally, evokes mixed feelings among both academicians and business executives. Executive policies promoting inter-unit competition create a double-edged sword of pressures for line managers for enhanced competitiveness. In this paper, I highlight the significance and importance of inter-unit competition in high technology organizations. I propose that the autonomy to choose market breadth facilitates and promotes inter-unit competition and that this relationship is further strengthened by evaluating units using objective criteria. In addition, I identify both internal and external conditions under which inter-unit competition may be beneficial or harmful (not beneficial) to the unit and hence, the organization. Several important theoretical and practical contributions are identified.

How does new venture strategy matter in the environment–performance relationship?

Drawing on environmental determinism and environmental management perspectives, this study examines the roles of strategy in the relationship between environment and performance in new ventures. With data from 184 ventures in China's high technology industries, I found that new venture strategies play differential roles in dealing with different environmental dimensions to affect performance. In particular, the results suggest that marketing differentiation strategy plays a significant role in mediating the positive effect of perceived industry growth on performance. Market breadth and marketing alliance strategies significantly moderate the negative impact of perceived environmental hostility on performance. Product innovation strategy plays both mediating and moderating roles in the environment–performance relationship. Theoretical and managerial implications are discussed.