Rational Market Research Articles

The development of multifunctional agriculture in farming regions of China: Convergence or divergence?

The multifunctionality paradigm, in particular, represented a facilitator of sustainable agricultural development. There arises a question of whether or not the different areas would evolve in a common direction. This study attempts to examine the dynamics and performances of multifunctional agriculture (MFA) in farming regions of China by using the multi-criteria comprehensive appraisal method and convergence analysis. The integrated function and multifunctionality of agriculture in the Huang-Huai-Hai Plain are assessed, based on which the evolving trend is investigated. The findings reveal that from 1990 to 2015, the multifunctionality of agriculture in the Huang-Huai-Hai Plain was strengthened, displaying clear agglomeration in larger metropolitan regions, which has been a characteristic of MFA in regions with a thriving economy. The supply function for agricultural products arose during 1990–2000, then maintained steady, while suffering a recession in Beijing-Tianjin-Hebei urban agglomeration and Jiaodong Peninsula. The function of social security generally continued to increase, presenting a spatially surging trend from north to south and from east to west. The function of facilitating agricultural economic development was also enhanced, especially in the clusters including the Beijing-Tianjin urban agglomeration, the Jiaodong Peninsula, and the northern Jiangsu Province. The function of ecological conservation displayed obvious spatial heterogeneity, and the functional index manifests no apparent variation. The σ coefficients of each functional index indicate that path dependence, which excludes the function of social security when there are regional disparities, is a crucial characteristic of the evolution process of the MFA subdimensions. Areas with low multifunctionality do not grow faster than areas with high multifunctionality, and they are differentiated in terms of their performance. The “catch-up effect” is clearly apparent when external forces intervene, as evidenced by the absolute and conditional β convergence. These findings have important ramifications for the creation of policies that, in line with the market rationality of territorial division, encouraging MFA in peri-urban and economically developed areas while fostering large-scale and industrialized farming in distant areas.

Management of the organization process of the company strategic partnership: marketing aspect

Introduction. The process of marketing formation of partnerships between the subjects of economic activity entering into the interaction is investigated and the methodical approach to numerical evaluation of this process is justified taking into account aspects of their production activity. As the environment becomes more complex, increasingly competitive and less predictable, a company, if it wants to survive, must operate at the higher level and involve a wide range of capabilities. Development of multiple capabilities and achieving benefits across a range of activity indicators puts managerial dilemmas at the company which cannot be solved as a simple compromise. The company must be effective today and at the same time adapt to the future; it must produce low-value goods and innovations; she needs to use the vast resources of the large corporation and demonstrate entrepreneurial talent; they must achieve high levels of reliability and consistency and be flexible adapting to changes. The purpose of the paper is to substantiate theoretical and methodological foundations and develop practical recommendations for the formation of marketing strategy of the industrial company on the basis of partnerships. Results. A methodological approach to the formation and development of the network marketing structure based on partnerships in the supply and sales channels of industrial products has been developed. The model of the organization process management of the strategic partnership of the company was substantiated, which involves highlighting of the company-integrator, which has the greatest degree of influence on the participants of the supply and sales channel on the principles of flexible partnership marketing. Conclusion. Thus, the starting point for building partnerships is to determine the specific demand, supply and other factors of the internal and external environment of the companies involved in this channel. It is expediently to determine the general approach of creating such a channel on the example of specific companies. But in order to solve the tasks of a particular company, it is necessary to develop a methodology to justify the choice of a particular form or its combinations, which provides the most rational marketing strategy for each enterprise from a number of partners in a particular industry.

Effect of Fraud and Corruption on Capital Market Performance in Nigeria

The study examined the effect of fraud and corruption on capital market performance. The core purpose of this research work is to investigate the effect of fraud and corruption on Nigeria's Capital Market Performance. The study used secondary data sourced from the Nigeria Exchange Group and the transparency index from 1999 to 2018. Transparency Index, Corruption Perception Index, and Total Fraud were the independent variables and the dependent variables are all share index and stock value traded. A time-series data methodological approach was adopted. The study used secondary data sourced from the Nigeria Exchange Group and the transparency index from 1999 to 2018. The study employed the Error Correction Model (ECM) as the estimation technique. The study found that fraud and corruption has a negative effect on all share index but a positive effect on stock value traded in Nigeria. The granger causality test also shows a unidirectional causality between fraud and corruption on capital market performance in Nigeria. The results suggest that fraud and corruption reduce investors' confidence in the market and can discourage investment in the market. The study recommends among others there should be cooperation between the appropriate law enforcement agencies and anti-corruption bodies with the Securities and Exchange Commission (SEC) to provide an equitable and rational market for all classes of investors. The whistleblowing scheme should be strengthened and made to be effective in the capital market.

Study on the Informatization Construction of Public Stomatological Medical Institutions in China

With the deepening of healthcare system reform in China, the competition in the oral healthcare market is becoming stronger day by day. The public hospital is the main body of the medical service system in China, its degree of informatization greatly affects rational market competition and then affects the allocation of resources and the quality of medical service. By analyzing the problems existing in the current informatization of China’s public stomatological medical institutions, this paper discusses how to strengthen the informatization of China’s public stomatological medical institutions, and puts forward targeted optimization measures, to provide a reference for the innovation and development of smart hospital construction of the stomatological industry.

Price Volatility Spillovers Among Major Wheat Markets in the World

This research determined price volatility spillovers among major wheat markets in the world using time series data (1966-2018) of six major wheat producing countries in the world. The data were sourced from FAO and UNCTAD databanks and were analyzed using descriptive statistics, multiple regression, unit root test and GARCH models. The findings showed that there is low and high persistence in the wheat prices of Canada and USA; and, Australia and India, respectively. Thus, it was established that the prices in the former markets were characterized by short memory; the effect of shock is temporary as the prices return to the attractor level within a short period. However, bad news on the prices of the latter markets has pronounced effect and takes a longer period for the price series to normalize. On the other hand, French and Chinese market price series exhibited an explosive pattern; the price series have infinite memory and the effect of innovation is permanent as price series will not normalize. Therefore, it can be concluded that the future trade of wheat is useful in the market given the persistence behavior of the prices as their price trends are tailored towards a rational expectation rather than a naïve expectation. However, for the market prices that are explosive, the market participants should focus on rational market expectation as a trade barometer.

Why do Funds Make More When They Trade More?

In this paper, we introduce a conditional measure of skill, the correlation between funds’ residual trades, net of common trading motives, and future news about the stocks traded. Using this measure, we show that the average mutual fund manager in the cross-section has stock-picking skill. This result is robust to different benchmarks and is mainly driven by the manager’s ability to predict a firm’s cash-flow news. This skill has short-term persistence and is distinctly related to traditional measures of performance. Importantly, consistent with Berk and Green [2004, Mutual Fund Flows and Performance in Rational Markets, Journal of Political Economy 112(6), 1269–1295] fund flows are increasing with respect to managerial skill after controlling for fund performance.

THE EFFECT OF INFLATION AND IDR EXCHANGE RATE ON NET ASSETS VALUE OF STOCK MUTUAL FUNDS IN INDONESIA WITH THE ROLE OF IDX COMPOSITE AS MEDIATING VARIABLE

Net Asset Value (NAV) is the rational market value of a mutual fund's securities and other assets with fewer liabilities. Net Asset Value can be used as a benchmark in monitoring the results of a mutual fund. Mutual fund results and performance cannot be separated from various internal and external factors. This study purposes to analyze the character of IHSG/ IDX Composite in mediating the effect of inflation and the rupiah exchange rate on the equity mutual funds’ NAV in Indonesia during the period of 2015-2019. This study benefits panel data with path analysis techniques by using the Smart PLS. The results show that inflation influences negatively and insignificantly on Equity Mutual Funds’ NAV. IDX Composite has negative and insignificant effect on Equity Mutual Funds’ NAV, and the Rupiah Exchange Rate have the positive and significant influence on Equity Mutual Funds’ NAV. The value of the coefficient of determination is 49.8%, which means how much the Equity Funds’ NAV can be explained by Inflation, IDX Composite, and Rupiah Exchange Rate. Moreover, the remaining 50.2% is effected by other variables.

Politics Against (De)politicization: The Basis and Crisis of Contemporary Student Movements in India

In the context of worldwide student protests against neoliberal economic agenda and depoliticizing market rationality, the essay seeks to understand the basis of ongoing student protests in India. On the basis of a case study of a radical left student organization from the state of West Bengal, India, the essay demonstrates that the dynamics of student protests in India is rooted in resistances against a state-sponsored depoliticization. The resistance is also against a structure of domination, legal and extra-legal that sustains such depoliticization in campuses as well as in the society at large. Borrowing framework from the studies in subjectivity, the essay argues that the basis of Indian student protests is anchored in a historically grounded subjectivity where students have often been called upon as a young citizen, responsible to the nation and people. At the same time, the crisis of these protests is born out of the lack of having a contemporary form of the said political subjectivity, enabling a re-articulation of the historical relationship between student, people and state-nation.

Revisiting the Long-Run Dynamic Linkage between Dividends and Share Price with Advanced Panel Econometrics Techniques

The log-linearized present value model (PVM) has been widely used in corporate finance to understand the long-run relationship between share price and dividends using panel data. However, the application of recently established panel econometric approaches that account for slope heterogeneity and cross-section dependency in the recent literature regarding the long-run link between share price and dividends in an Indian setting is limited. This paper re-examines the log-linearized PVM in an Indian setting using newly developed panel unit root, cointegration, and long-run dynamic estimation approaches. This study employed a panel dataset of 60 Bombay Stock Exchange (BSE)-listed Indian firms paying regular dividends for 28 years (1990–2017). The study found unit root, cointegration, and a long-run relationship between dividend and share price series for Indian firms during a 28-year sample period. By demonstrating the presence of a long-run link between share price and dividends, this paper contributes to the literature on the PVM, which is crucial in comprehending market rationality and share price behavior in India. This paper also discusses issues related to panel data, such as cross-section dependency and slope heterogeneity, as well as panel econometric approaches that can be applied in the appropriate settings.

Making it work: women, land and labour in West Karbi Anglong, Assam

ABSTRACT The article seeks to understand how the deepening logic of neoliberal governmentality transforms the lives, labour and access to resources such as land, for women in West Karbi Anglong, Assam, Northeast India. It explores new forms of social (in)equality and mobility in gender relations and community dynamics in Sixth Schedule districts, tracing the evolving conjuncture between community, state and the market. We approach this question in two ways: first, how the neoliberal market rationality reconstitutes and is reconstituted by existing customs of inheritance, patterns of labour, notions of community and belonging, and gender relations; second, the strategies that women adopt in a context where forms of women’s work and modes of access to resources such as land are going through rapid changes. The aim is to encourage critical reflections on women’s access/rights to land and their labour in the Sixth Schedule areas, and what changes with the neoliberal turn.

Wind power resources and China's sustainable development roadmap: Evidence from China

Orderly and rational market transaction is the foundation for the healthy development of industries, to analyze the market competitive behaviors and the choice of trading strategies in China's wind power industry, this paper adopted the data of Chinese listed wind power firms in 2011–2020. The research found that (a) the upstream firms as a whole in the wind power industry chain behave as the provider of net trade credit; (b) significant negative correlation between cash inflow and financial capacity of upstream enterprises; (c) the upstream market stands in a dynamic market competitive condition, the upstream firms with either relatively strong or relatively weak financial capacities contest for the market shares by constantly changing their trade preference strategies.

Informational Price Cascades and Non-Aggregation of Asymmetric Information in Experimental Asset Markets

We report on experimental markets which generate an abject failure of the aggregation of asymmetric information. While realized prices have zero correlation with fundamental values, surprisingly, these are not highly volatile. The non-aggregation of information manifests as prices which lock into home grown norms that we call informational price cascades. Our results are in stark contrast to previous experiments testing fully revealing rational expectations equilibrium under asymmetric information and others examining social learning in asset markets when there is a rational market maker. Our experiments incorporate the asset and information structures from the latter into the decentralized private information setting and double auction trading mechanism of the former. Information only starts to aggregate when either each private signal is revealed to half of the traders, or all private signals are simultaneously released early in the asset’s issue.

The Politics of Rationality in Early Neoliberalism: Max Weber, Ludwig von Mises, and the Socialist Calculation Debate.

Initiated by Mises and popularized by Hayek, the socialist calculation debate staked a political position on a methodological axiom: the "irrationality" of state planning. This article argues that Weber's typology of "formal" vs. "substantive" rationality at once drew from Austrian School marginalism and helped frame Mises and Hayek's critiques in the calculation debate. In turn, this debate shaped an anti-socialist front among the early neoliberals before their vaunted gatherings in Paris and Mont Pèlerin. Through social scientific interventions, early neoliberalism split economics (qua market rationality) from politics (qua social justice) so as to place the latter beyond the epistemological pale.

Time-Varying Research on Investors’ Trading Psychology Rational and Irrational Market Sentiment Based on the Perspective of 5G Networks and Information Economics

Amid the ongoing rapid digitalization, consistent advancements in technologies such as 5G have become crucial. The demand for 5G technologies is expected to surge owing to the continued hybrid work culture, and 5G stock will emerge from the stocks of older tech and telecom companies. However, the COVID-19 epidemic continues to spread globally, causing a major impact on China’s macroeconomy and the stock market. It has a significant impact on the trading behavior of investors in 5G stock. Based on the framework of information economics and 5G Networks, we use the TVP-VAR model to empirically analyze the time-varying effects of rational and irrational market sentiment on investor herd behavior and overconfidence. The results show that rational market sentiment can always suppress herding behavior and overconfidence, while irrational market sentiment intensifies investors’ herd behavior most of the time, suppressing overconfidence in the short term and turning it into a positive effect in the medium term, and its long-term effects have almost disappeared. Compared with rational market sentiment, irrational market sentiment has a more direct and significant impact on herd behavior. The absolute values of the impulse responses of both market sentiments to the impact of overconfidence are relatively close. In addition, both market sentiments have typical characteristics of vulnerability to investor psychology. After the epidemic spread, both market sentiments accelerate the generation of overconfidence, while the positive impact on herd behavior gradually decreases. Our research shows that in the environment of information asymmetry, although investors will restrain their irrational conformity psychology, they still have not demonstrated their reasonable investment capabilities. Our conclusions will provide some references for government regulatory agencies and market investors under the background of the epidemic.

DEVELOPMENT AND IMPLEMENTATION OF A RATIONAL MARKETING STRUCTURE OF PRODUCTION ENTERPRISES

The most important branch of the national economy of the country, designed to meet the needs of the population with fruits, berries, vegetables at affordable prices, is the fruit and vegetable industry. Compared with others, this industry faces more complex tasks associated not only with the need to produce products, but also as best as possible to preserve them, to make high quality food products with biologically active substances. The article is devoted to the role of marketing in the fruit and vegetable subcomplex. It has been determined that the implementation of marketing principles of doing business in the horticultural complex allows producers to respond faster to changes and increase competitiveness. The changes in the structure of filling the market of fruit and vegetable products by directions of production and marketing activities have been studied. Peculiarities of the influence of marketing communications are presented. Modern forms of marketing of fruit and vegetable industry enterprises are reflected. The paper presents the algorithm of marketing application for the fruit and vegetable industry. The purpose of scientific research is to develop a rational marketing model for the effective functioning of processing enterprises. Methodology. In the process of research and development of the rational marketing structure of production enterprises the following methods were used: methods of economic analysis, grouping, graphical method and method of comparison. Results. The article defines the main directions of building of effective functioning of competitive marketing potential of processing enterprises in market conditions. The article analyzes a number of studies of domestic scientists on the definition of the concept of "marketing of the enterprise". Science novelty. The article reveals its essence, defines the main elements of marketing potential and the importance of the need to manage the marketing potential at the processing enterprises. The main factors determining the policy of effective management of marketing potential at the enterprise have been revealed and the level of use of marketing potential at processing enterprises has been determined. The application of strategic approach to the management of marketing potential in processing enterprises is proposed. The necessity of creating cooperatives as one of the effective ways of entering the market of organically produced food to jointly solve production, social and other problems has been substantiated. Value/originality. The main scientific provisions of the article can be used in the work of enterprises involved in the processing industry.

Research on the Trading Arrangement and Clearing Model of Medium- and Long-Term Inter-Provincial Markets Considering Security Constraints

In the process of deepening market-oriented reform, the most important thing in China is building a national unified electricity market system under a high renewable energy penetration scenario. The new round of market-oriented reform proposes to establish an inter-provincial electricity-trading arrangement. Due to imperfect market mechanisms and immature inter-provincial electricity markets, we investigate the electricity market operation system of the national unified electricity market. Existing transmission commitments, trading cycles, market participants, strategic bids, and clearing and settlement mechanisms are analyzed for inter-provincial medium- and long-term markets. For security reasons of interchange schedules, we propose a novel inter-provincial market-clearing model based on static security regions, which consider inter-provincial electricity transmissions and direct current power flows. The proposed market-clearing model is simulated and verified in a 3-bus system and an IEEE 30-bus system. The proposed clearing model and rational market theory are conducive not only to promoting renewable energy consumption but also to improving the linkages between inter-provincial medium- and long-term markets.

Economic and sanitary crisis and performance of health and insurance plans: similarities and singularities between Brazil and the United States

The economic crisis that began in the United States in 2008 and its impact in Brazil starting in 2014 preceded the health crisis triggered by the COVID-19 pandemic. Considering these three time intervals, this article analyzes the susceptibility of health plan and insurance companies to economic cycles of recession in Brazil and the United States. There is evidence of a relationship between periods of economic crisis and retraction of actions and services in national health systems. However, both the United States and Brazil showed a growth in the number of health and insurance plans. The vectors driving the expansion of the private market in both countries have similarities and singularities. The "Obamacare" marks the beginning of the inclusion of population segments in the coverage of programs that use private care schemes, funded with government resources. In Brazil, despite negative general economic indices and reduction in the public health budget, health plan companies increased revenues and profits, even in the context of the pandemic and the growing economic crisis in the country. Business strategies to attract foreign investors were combined with actions to obtain credits from public institutions and increase tax deductions and exemptions, preserving financial gains. A comparison between the impacts of the financial crisis on the Brazilian and American private health markets allowed us to identify the weaknesses of our universal public system absorbed by market rationality.

The Authoritarian Temptation, and Its Radical Left Expressions

Abstract No political regime can be entirely immune from authoritarian temptations. This article focuses on the distinctive sources and dynamics that apply to post-revolutionary regimes. To prevail in bringing about radical and irreversible change they will require an effective security apparatus that overcomes the backlash that will arise from the previous order. These security requirements provide the first source of authoritarian temptation, but there are three more. Once the regime is firmly established the new rulers can choose what restraints on their conduct to accept. It is tempting to dispense with healthy channels of feedback. Moreover, even the most successful of revolutionary regimes polarise opinion between the old order and the new. And when material hardships arise loyalty may be rewarded above market rationality. In conjunction these amount to a serious set of authoritarian temptations. But there are also some countervailing considerations. A durably successful radical regime must counterbalance the requirements for unity and discipline against the need for creativity and adaptability. Initial emancipatory ambitions may be updated and renewed in order to inspire future generations and legitimise the revolutionary process. Such regimes can seesaw between authoritarian and empowering tendencies, rather than relying on repression alone to keep them in existence. Their legitimation strategy will contain three main components: i) reaffirming and updating their emancipatory origins; ii) downplaying/excusing any authoritarian “deviations”; iii) projecting future prospects for inclusionary development.

Investor sentiment and liquidity in emerging stock markets

PurposeBehavioral finance and market microstructure studies suggest that the investor sentiment and liquidity are related. This paper aims to examine the aggregate sentiment–liquidity relationship in emerging markets (EMs) for both the sample period and crisis period. Then, it verifies this relationship, using the asymmetric sentiment.Design/methodology/approachThis study uses a sample consisting of stocks listed on the SSE Shanghai composite index (348 stocks), the JKSE (118 stocks), the IPC (14 stocks), the RTS (12 stocks), the WSE (106 stocks) and FTSE/JSE Africa (76 stocks). This is for the period ranging from February, 2002 until March, 2021 (230 monthly observations). We use the panel data and apply generalized method-of-moments (GMM) of dynamic panel estimators.FindingsThe empirical analysis shows the following results: first, it demonstrates a significant relationship between the aggregate investor sentiment and the stock market liquidity for the sample period and crisis one. Second, referring to the asymmetric sentiment, we have empirically given proof that the market is significantly more liquid in times of the optimistic sentiment than it is in times of the pessimistic sentiment. Third, using panel causality tests, we document a unidirectional causality between the investor sentiment and liquidity in a direct manner through the noise traders and the irrational market makers and also a bidirectional causality in an indirect channel.Practical implicationsThe results reported in this paper have implications for regulators and investors in EMs. Firstly, the study informs the regulators that the increases and decreases in the stock market liquidity are related to the investor sentiment, not financial shocks. We empirically evince that the traded value is higher in the crisis. Secondly, we inform insider traders and rational market makers that the persistence of increases in the trading activity in both quiet and turbulent times is associated with investor participants such as noise traders and irrational market makers.Originality/valueThe originality of this work lies in employing the asymmetric sentiment (optimistic/pessimistic) in order to denote the sentiment–liquidity relationship in EMs for the sample period and the 2007–2008 subprime crisis.

Research on Curriculum Examination Mode of Cultivating Students’ Independent Learning Ability – Taking Hotel Management Major (Specialty Direction on Tobacco) as an Example

Scientific and reasonable examination mode can not only make effective evaluation and feedback, but also play an important role in cultivating students' good learning habits and shaping their social and vocational adaptability. Meanwhile, it is also an important method of cultivating students' innovative spirit and creative ability. Specialty direction on tobacco emphasizes cultivating senior disciplinary talents who will engage in tobacco promotion and rational use, tobacco marketing and tobacco enterprise management. So it is necessary to practice various and effective examination modes to make students master the knowledge they have learned well and truly achieve the aim of professional training. Thus the students may become qualified talents with professional quality of tobacco industry.