Open Market Research Articles

Multivariate Regression Analysis of the Impact of Open Market Share Repurchase Activity on the Malaysian Market

This research thesis revolves around the need to understand the relationship between share repurchases and the share price behavior of companies listed on Bursa Malaysia on a more recent basis given the economic stability in Malaysia and throughout the world from 2017 to 2021. It started in the West and reached maturity in the 1980s in the United States, but it only began in Malaysia in the 1990s. The studies of share repurchase are still considered an infant in Malaysia as in other countries throughout the world, companies pursue share repurchases for several reasons mainly to signal undervaluation, reward shareholders, defend against the takeover, utilize financial resources efficiently, and many more motives that are interesting for researchers to look at. Unlike other studies that look at announcement dates, since an announcement does not mean the companies will implement the transactions, this research is important since it looks at and analyzes the actual effective repurchase day done by established firms which is are most crucial aspect in analyzing the consequences and the results are that it shows positive abnormal mean returns for most of the companies. Event study methodology was used since this is the best empirical research method and as empirical evidence to analyze abnormal returns from all the other studies. The days observed are 120 days before and after the announcement. Returns for the estimation window, event window (repurchase day), and post-event window were analyzed to see the effects of price movement on repurchase activities at Bursa Malaysia (BSKL).

Research on the Relationship Between Average Cigarette Price per Box and Government Procurement in City A Based on a Regression Model

This study aims to analyze and predict the relationship between the average price per box in the cigarette market of City A and government procurement, providing a scientific basis and support for decision-making. By reviewing relevant theories and literature, qualitative prediction methods, regression prediction models, and other related theories were explored. Through the analysis of annual cigarette sales data and government procurement data in City A, a comprehensive understanding of the development of the tobacco industry and the economic trends of tobacco companies in the county was obtained. By predicting and analyzing the average price per box of cigarette sales across different years, corresponding prediction results were derived and compared with actual sales data. The prediction results indicate that the correlation coefficient between the average price per box of cigarette sales and government procurement is 0.982, implying that government procurement accounts for 96.4% of the changes in the average price per box of cigarettes. These findings offer an in-depth exploration of the relationship between the average price per box of cigarettes in City A and government procurement, providing a scientific foundation for corporate decision-making and market operations.

Driving Forces of Strategic Outsourcing in Telecommunication Companies in Tanzania

Abstract This article aims to evaluate the driving forces of outsourcing strategies on the organizational performance of mobile network operators in mainland Tanzania. The objectives are to identify the driving forces of outsourcing and determine the challenges of outsourcing in telecommunication companies. The article adopted a descriptive cross-sectional survey. The selection of mobile companies is based on high market share and operation period. Findings show that customer needs for high-quality services, high-rated change in service, reduction of operational expenditure, and accessing the world’s capability are among the major driving forces for outsourcing. Dependability, loss of security, hidden costs, and selection of competent partners to mention a few are the challenges faced by telecom companies. It is noted that outsourcing enables network operators to advance their organizational performance in terms of operating cost, productivity, profitability, and market share. However, customer satisfaction suffers due to the inconsistency of the quality of service offered. Therefore, it is advised that mobile operators closely monitor outsourcing service providers to ensure that agreed service levels are met, thereby, safeguarding the reputation of the company to customers.

Wildlife trade at Belén and Modelo market, Peru: defining a baseline for conservation monitoring

IntroductionDomestic wildlife markets have important nutritional, medicinal, cultural, and financial significance for local communities, but the scale and diversity of wildlife trade that passes through them is also associated with negative impacts on biodiversity, poor animal welfare, and potential human health risk. To design, and monitor the effectiveness of, interventions to ameliorate such impacts, an understanding of the species sold at the markets and their purpose is required, together with a robust (and potentially flexible) baseline. Here we focus on Belén (the largest open wildlife market in the Peruvian Amazon) and Modelo market, in Iquitos, Peru.MethodsWe surveyed wildlife products for sale at both markets approximately weekly over a year, using two different survey methods (open and discreet). To provide a baseline to support future conservation monitoring, we estimated a number of different market metrics (including indices of product availability, volume (observed per survey), and price), for the most frequently observed species ‘groups’, and compared indices of trade volume with daily river water levels. To provide a complete understanding of the range of species involved, we also described all threatened species recorded at the markets, the products sold, and their uses, including those that were only observed occasionally.ResultsBoth markets sold predominantly wild meat, and some pets; at Belén Market >30% observations were of decorative, spiritual, or medicinal products. At least 71 unique species (including mammals, reptiles, birds, and invertebrates) were observed in total. The most frequently observed species ‘groups’ were: lowland paca, peccaries, caiman, river turtles, boas, yellow footed tortoise, parrots, and brocket deer. 27.7% of species were threatened or Near Threatened globally or nationally but there was no evidence that discreet surveys increased their detection. Daily river water levels were positively correlated with indices of trade volume for lowland paca, caiman, and yellow-footed tortoise, and negatively correlated with indices of trade volume for parrots and river turtle eggs.DiscussionBeyond providing a comparative dataset, and insights regarding the apparent availability and value of a diversity of products (including food items, live pets, and other decorative, spiritual, and medicinal items), we suggest that simulations using these data could be used to optimize future monitoring efforts. Finally, our observations of correlations of per survey trade volumes of some species with daily river water levels in Iquitos may inform optimal time of year for species- specific surveys.

Capital market opening, digital transformation and corporate risk-taking ——empirical evidence from Shanghai Shenzhen-Hong Kong stock connect

"Shanghai-Hong Kong stock connect" and "Shenzhen-Hong Kong stock connect", as important policies for the two-way opening of China's capital market, have positive effects on expanding investment channels for investors and improving market liquidity. Taking Shanghai Shenzhen-Hong Kong stock connect as a quasi natural experiment, this paper examines the impact of capital market opening on corporate risk-taking and its mechanism by using a multi period DID model. The empirical results show that the Shanghai Shenzhen-Hong Kong stock connect can reduce corporate risk-taking, and digital transformation plays a positive moderating role between the two; the mechanism analysis finds that the Shanghai Shenzhen-Hong Kong stock connect reduces corporate risk-taking by increasing analysts' attention, and this indirect impact process is also positively moderated by digital transformation. The heterogeneity test finds that the impact of Shanghai Shenzhen-Hong Kong stock connect on corporate risk-taking is mainly reflected in the companies with higher product market competition and faster regional marketization process. The above conclusions provide empirical evidence for the effectiveness of the capital market opening policy at micro level, and provide enlightenment for the role of digital transformation in promoting healthy development of the capital market.

Unravelling the EU’s promotional integration strategy in the MENA region: a dialectical analysis of the Agadir and GAFTA Agreements

Given the rhetoric of the EU on the necessity of economic integration for the MENA region, this article sheds light on the ‘puzzling’ fragmentation in its regional integration strategy through the cases of the GAFTA and Agadir Agreements. It problematises mainstream analyses and employs a dialectical approach based on the philosophy of internal relations, aiming to surpass existing critical literature that has only partially illuminated facets of the EU’s strategy. The article situates the EU strategy within the dynamics of neoliberal capitalism (and its interconnected tensions) and considers its spatial and temporal scales. It argues that the complex interplay of developments at the EU scale, global competition scale and MENA scale across three distinct time frames (1995–2003, 2004–11, 2012–21) has shaped the EU’s fragmented strategy. On the EU scale, while Brussels presents itself as a leading proponent of neoliberal ideology for global market openness, it strategically elevates the Agadir Agreement at the expense of the GAFTA to meet its economic needs. The global competitive dynamics, however, have constrained this preference, as the EU has been contested by the US in the Agadir Agreement area and China and, to a lesser extent, Russia in other GAFTA member states. Lastly, the agency of MENA states has been noticeable, since the EU encounters difficulties in influencing GAFTA’s regulatory framework and dealing with the diverse interests of state elites in the region. We conclude that the dialectical method of the article holds promise for analysing the regional integration strategies of other global powers.

Asymmetries in Federal Reserve Objectives

Abstract Abstract This paper uses evidence from the Federal Open Market Committee’s Summary of Economic Projections to show that US monetary policymakers have objectives over unemployment and inflation outcomes that are not well-approximated through a conventional quadratic loss function. Rather, policymakers derive material costs (benefits) from overshooting (undershooting) their long-run inflation and unemployment goals. The trade-off between the resultant downward tilts in unemployment and inflation played a key role in shaping the evolution of monetary policy choices since the Great Recession.

A game-based power system planning approach considering real options and coordination of all types of participants

With the ongoing advancement of global power marketization, the increasing diversity of stakeholders in the power market and their interactions have a significant impact on power system planning and operation. Traditional methods employ game theory to describe the interactions among market participants. However, these approaches fail to include all relevant participant types and overlook the long-term uncertainty value of planning schemes. Therefore, this paper proposes a game theory-based power system planning approach considering real options (RO) and coordination of all types of participants. First, the dynamic gaming interaction among supply-transmission-demand is studied, and the independent system operator is integrated into the game planning framework based on the overall perspective of power market operation. Moreover, the new power supply, grid planning, and operation of distributed generation (DG) are taken as decision variables based on the RO theory, and a game decision model of all participants in the power system planning considering the investment uncertainty is constructed. Finally, the iterative search algorithm is employed to solve the model, and the framework is validated based on the IEEE 30-bus system. The results indicate that through collaborative planning involving various market participants, Generation Companies and Transmission Companies expand their investments to maximize profits, while large power consumers reduce their investment in DG and instead increase their direct power purchases to lower costs. Moreover, these participants are inclined to pursue projects with higher asset value volatility, which further enhances their profit. By integrating RO theory with game theory, the proposed approach establishes a comprehensive planning framework that effectively addresses investment uncertainty. This integration enables market participants to make more optimal decisions, ultimately leading to an enhancement in the long-term economic performance of the power system.

Research on the Impact of Labor Resource Allocation on Green Technology Innovation

Facing increasingly severe environmental pollution and resource scarcity, China has accelerated its pace of green and low-carbon transformation. Green technological innovation helps economic development by reducing ecological pollution and lowering resource consumption. As an important factor of production for social development, the labor force plays a very significant role in optimizing the economic development structure of our country and achieving high-quality leapfrog development. This article explores the relationship between the allocation of labor resources and green technology innovation based on the aforementioned practical motivations, from both theoretical mechanisms and empirical perspectives. Using provincial panel data from China between 2000 and 2021, a spatial Durbin model was constructed to empirically test the spatial spillover effects of labor resource allocation on green technology innovation and to draw relevant conclusions. Subsequently, to further investigate the heterogeneous impact of labor resource allocation on green technology innovation, China was divided into three major regions—eastern, central, and western—and empirical model tests were conducted on separate samples. The following conclusions have been drawn: Over time, during the 22 years from 2000 to 2021, China's overall labor resource allocation has shown an overall upward trend; China's green technology innovation capability has significantly improved, but regional development is uneven, with a large gap in development between the eastern, central, and western regions; through the study of the spatial Durbin model on the impact of labor resource allocation efficiency on green technology innovation, the results indicate that labor resource allocation has a significant main effect and spillover effect on green technology innovation, meaning that the improvement in labor resource allocation efficiency will promote the increase in the level of local green technology innovation, while the decline in labor resource allocation efficiency will inhibit the increase in the level of local green technology innovation; the impediment effect of the decline in labor resource allocation efficiency on regional green technology innovation varies significantly across different regions, with the central region being the most prominent, followed by the western region, and then the eastern region. Based on the conclusions, the following suggestions are made: Regions should strengthen cooperation and exchanges to promote the coordinated development of green technology innovation. Eastern provinces and cities with a higher level of green technology innovation should lead the surrounding provinces and cities with weaker development, actively engage in cooperation and exchanges in infrastructure and green technology, and establish a more orderly and open green technology trading market, thereby promoting the coordinated development of green technology innovation between regions; adopt market-oriented approaches to remove barriers to the autonomous and orderly flow of labor factors. Give the market a decisive role in resource allocation, reasonably play the role of the government, promote the rational and orderly flow of capital and labor resources between regions, and improve the efficiency of resource allocation.

Corporate finance, collateralized borrowing, and monetary policy

We construct a monetary model in which entrepreneurs facing uncertainty in input costs and returns of projects may finance investment internally and with bank credit. Entrepreneurs using money as a down payment and bonds as collateral can reduce the default probability. Working through these key channels, lower nominal policy rates and open market sales can reduce the real lending rate. The central bank’s private asset purchases improve availability of credit and compress risk spreads. Our model identifies the risk-reducing channel of private asset purchases—the policy functions as if the government had supplied more bonds, and the increased collateralizable bonds are allocated more to corporate borrowings with a higher lending risk. Risk-retention requirements associated with asset purchases are essential to welfare. As uncertainty with respect to input costs and investment returns intensifies, the central bank should lower the optimal risk-retention rate to encourage lending and reduce business failures.

Characteristics of financial capital flow circulation and the risk transmission effect in China

Financial capital is an important force driving China's economic modernisation. Examining the characteristics of financial capital flow circulation across sectors and risk transmission laws is crucial in guiding financial market operations and deepening financial system reforms. This study establishes a 2011–2020 China matrix that includes capital fund flow statements for non-financial corporations, financial institutions, the general government, households, and foreign sources and examines changes in capital flow circulation by developing a financial flow multiplier system model to measure the direct and indirect transmission effects of capital flows between sectors from the perspective of liabilities. Results show that China's overall scale of financial capital flows has increased, but fluctuations have emerged in the last decade. The sectors' financing structure has changed significantly, with financial institutions remaining the primary capital inflow and outflow sectors of the financial market; however, the proportion of liability and investment in the household sector has increased, resulting in increased risk transmission. Moreover, the sectoral fund surpluses and shortages are highly volatile and uncertain, with non-financial enterprises serving as the primary drivers of real-economy investment. The capital flow from financial services to the real economy shows a fluctuating growth trend, primarily flowing to non-financial corporations; however, the proportion exhibits a downwards trend. Finally, we find that the flow transmission relationship between different sectors and financial transactions in the financial market is complex, with both direct and indirect risk transmission effects between sectors. Changes of financial institutions' liabilities significantly affect the liabilities and investments of other sectors.

Sustainable Development Strategy of Enterprises in International Markets: Opportunities and Challenges

A sustainable development strategy for businesses in international markets is crucial for achieving success in the globalized world. Scholars and practitioners emphasize that companies must pay attention to the economic, social, and environmental aspects of sustainable development. This implies the importance of developing strategies that help ensure economic profitability, maintain relationships with stakeholders, and reduce negative impacts on the environment. The experts' attention is focused on the performance of Ukrainian companies in international markets in the period from 2022 to 2024, during the full-scale aggression against Ukraine. Due to the significant obstacles and barriers that currently exist, these companies need support for sustainable development in international markets. In our research, we have developed new strategies to ensure the sustainable development of Ukrainian enterprises. These approaches cover various areas of activity, including the following aspects: establishing crisis communication with customers and stakeholders, who are provided with important information about the market situation and the company's actions; expanding international marketing by searching for new markets for products and services to reduce dependence on specific markets and risks; increasing sales through intensified marketing activities, market analysis and search for new opportunities for sales growth; building a positive image of the company through information and communication activities; ensuring competitiveness in the international market by improving goods and services. The study segmented the markets of grain importers and identified Segment A, which does not require financial investments in its development. This segment consists of the markets of Spain, China, and Romania, where grain importers in 2023 were characterized by significant purchases and successful market operations. Segment B includes the markets of Egypt, Turkey, Italy, the Netherlands, Poland, Hungary, Portugal, Bangladesh, Israel, Germany, Lebanon, Tunisia, and Indonesia, where investments are needed to develop the promotion of goods and services, in particular, to improve marketing strategies, build partnerships with local companies and organizations, and implement innovative production technologies. Segment C included a set of markets that were assessed by several indicators, and eight international markets were identified as potential import partners: Japan, Korea, Vietnam, Algeria, Morocco, Malaysia, the United Kingdom, and Thailand. In assessing the attractiveness of new international markets, it was found that the markets of Korea, Malaysia, and the United Kingdom are the most suitable for Ukrainian enterprises. In this regard, we have developed recommendations on the strategy of marketing international business diversification of Ukrainian companies in these markets. If these recommendations are followed and a strategic approach to international diversification is applied, Ukrainian companies can successfully expand their business presence in South Korea, Malaysia, and the United Kingdom. Keywords: international diversification, sustainable development strategy, sales volumes, information and communication activities, potential import partners, attractiveness of new international markets, market convergence.

Additional revenues estimation in a market-based redispatch: An opportunity for flexibility

The technical constraints in the transmission networks are exerting significant strain on the functioning of electricity markets as the share of variable renewable energy sources is increasing. To manage this issue, the transition to a nodal pricing market has been proposed in the literature. Given that the current structure of the European Union electricity market corresponds to a zonal pricing, the transition to nodal pricing would imply fundamental changes in its market structure. In order to avoid the latter, this study develops a method to identify locational price signals in a decentralized market with zonal pricing and subsequent market-based redispatch. To this end, first, nodes with structural technical constraints are identified –using energy programmes–. Then, the additional revenues of physical units located at these nodes are estimated –using electricity prices–. Finally, this strategic information will guide the development of flexibility solutions –manageable generation capacity and demand response– in these geographic locations, mimicking the main advantage of nodal pricing. Our methodology has been empirically tested on the Spanish power system, using hourly data from the System Operator and Market Operator for four full years, from 2019 to 2022. The results show a higher and constant economic revenue in certain nodes of this system –upward redispatch price is 74.90% higher than day-ahead market price–. Thus, this method can be used by market participants to evaluate publicly available data from a decentralized market with zonal pricing and subsequent market-based redispatch, and obtain essential information to make the best investment decisions.

Configurations of institutional enablers that foster inclusive entrepreneurship: A fuzzy-set qualitative comparative analysis

Inclusive entrepreneurship, which represents an integrated approach to entrepreneurship and social inclusion, has increasingly received attention for its expected capacity to simultaneously foster economic growth and mitigate inequality. This study examines how the configuration of institutional enablers, which encompass several characteristics involving markets, finance, policy, education, and knowledge, fosters inclusive entrepreneurship outcomes. The results of a fuzzy-set qualitative comparative analysis using 69 country cases indicate that institutional enablers—excluding market openness—jointly affect inclusive entrepreneurship outcomes. This study provides evidence that such effects vary depending on the level of a country's economic development. As one of the first to explore the topic of inclusive entrepreneurship, this study has significant implications for academics, practitioners, and policymakers.

Humour and laughter as indicators of meeting leadership style in FOMC meetings

This study explores the manifestation of meeting leadership styles through humour and laughter in Federal Open Market Committee (FOMC) meetings, focusing on differences across the tenures of Chairs Greenspan, Bernanke and Yellen. Quantitative and qualitative analyses of meeting transcripts from 1987 to 2017 highlight the role of humour. The study explores various functions of laughter and finds that laughter frequency and initiation of laughter differ among the chairs, reflecting their distinct leadership styles. The findings suggest that a more facilitative leadership style is marked by higher frequencies of laughter tokens. This research contributes to understanding the dynamics of meeting leadership and the strategic use of humour in professional settings.

The Role Mechanism of Social Preferences and Price Advantage in the Market Economy

In today's market economy environment, social preferences and price advantage, as two core driving forces, directly influence market operation and development trajectories. As consumer demand becomes increasingly diversified, social preferences intuitively reflect deep-seated cultural identity and value orientations, even guiding market trends. Price advantage, as the cornerstone of market competition, also impacts corporate production and development. These two elements intertwine: social preferences infuse emotional and cultural content into pricing strategies, while price advantage becomes an effective means to satisfy social preferences and achieve market penetration. A deep understanding and skillful application of these mechanisms are crucial for companies to navigate the complex and ever-changing market environment and achieve sustainable development.

Open Innovation and Market Orientation in Mexican SMEs Automotive Industry

Nowadays open innovation is becoming a business strategy that is gaining more and more attention from the scientific and business community. However, although the term open innovation was introduced in 2006, little is known about the relationship between open innovation and market orientation, since there are relatively few studies published in the literature that have been oriented in its analysis and discussion. Therefore, the main objective of this research is to fill this gap in the literature and explore the link that exists between open innovation and market orientation, through a research framework that consists of 4 measurement scales, 24 items, 1 hypothesis and an extensive review of the literature. Likewise, a self-administered questionnaire was distributed to a sample of 300 small and medium-sized manufacturing companies in the automotive industry in Mexico, analyzing the data set using confirmatory factor analysis and structural equation models. The results obtained suggest that open innovation has significant positive effects on the market orientation of companies that make up the manufacturing industry.

Exploratory research on the internationalization speed of small and medium-sized enterprises

ABSTRACT The emergence of multinational corporations (MNCs) and their impact on the post–World War II economy has led to studies on the internationalization of companies, including MNCs. Traditional theories, such as internalization theory and the stage model, have explained internationalization processes. However, some companies, known as “born globals,” adopt a leapfrog strategy, rapidly entering international markets. This study, focusing on Thai MNCs, examines how these companies, despite limited resources, achieve growth through effective timing, pace, and the process of internationalization. Findings suggest that strategic partnerships significantly accelerate the timing and pace of internationalization. Considering internationalization, company managers should join formal networks to learn about the international market and export operations to find strategic partners. In promoting networking, the government should try to incorporate companies and organizations that can serve as strategic partners. The government should also provide small and medium-sized enterprises with information from this perspective and foster international entrepreneurial orientation.

Dampak Perubahan Kebijakan Moneter Terhadap Stabilitas Mata Uang di Negara Berkembang

This study aims to determine the impact of monetary policy changes on currency stability in developing countries. This research approach collects data through literature studies, which involve reading literature from various sources including books, journals and reports using qualitative and deductive approaches. The findings in this study are In implementing monetary policy, the central bank has a crucial role in achieving economic stability in a developing country, some of these roles include controlling inflation, maintaining currency stability, regulating interest rates, maintaining balanced economic growth, providing certainty and guidance going forward, conducting open market operations, and stabilizing the financial system. Changes in monetary policy in a developing country will have an impact on currency stability in that country. Therefore, appropriate and effective monetary policy can help maintain currency stability, and can help control inflation, encourage economic growth, and increase export competitiveness.

Quantifying the impact of flexibility asset location on services in the distribution grid: Power system and local flexibility market co-simulation

This research investigates the effectiveness of incorporating locational sensitivity factors into local flexibility market clearing mechanisms for effective congestion management and voltage regulation in distribution grids. A centralized local flexibility market optimization model is developed that considers technical and economic constraints. The study aims to explore the requirements for data availability, data quality, and reliable data exchange that can facilitate a broader range of flexibility services, thereby promoting the development of a local flexibility market. Sensitivity factors, including power transfer distribution factors, voltage sensitivity coefficients and transformer sensitivity coefficients, are used to quantify the impact of flexibility asset locations on congestion management and inform clearing rules. These static metrics are insufficient for establishing effective local flexibility market clearing rules when flexibility is procured by distribution system operators. The approach considers the state of the grid when calculating the sensitivity coefficients, which leads to a more accurate evaluation of flexibility bids, especially with regard to the impact of location on congestion management. The proposed mechanism for clearing the local flexibility market assumes continuous communication between the proposed local flexibility market operator and the distribution system operator for dynamic, iterative market clearing, which ensures the protection of grid data and a more accurate bid evaluation. The study demonstrates that the inclusion of locational information significantly increases the effectiveness of the proposed local flexibility market-based congestion management. The developed simulator for the proposed local flexibility market provides valuable insights into the interaction between the proposed local flexibility market and the distribution grid. The research results, derived from selected use cases, emphasize the importance of location-based sensitivity factors in the proposed local flexibility market clearing for distribution grids. The proposed approach offers a promising solution for optimizing congestion management and voltage regulation while ensuring efficient integration of distributed energy resources into distribution grids.