Market Selection Research Articles

Analysis of Selectivity and Timing Skills of Fund Managers

There have been massive research works done on the concept of market timing and selectivity skills that are applied by the fund managers to optimize the returns to the fundholders/investors/clientele. The fact that still remains unidentified/studied is the factor(s) that are influential enough for the maximization of returns. There is a general perception that investors will only look upon the returns but the very factor that may influence that return is yet to be analyzed. This study focuses on gaining an insight into whether there is any correlation that exists between the fund manager’s selection or/and market timing abilities that, in turn, can be useful to the investors also in finding out which fund and fund manager to be trusted for investment.

Изучение рыночного отбора в России и мире: проблемы измерения, национальная специфика и методы стимулирования

This article is devoted to the model of replicator dynamics as an evolutionary theory of competition between firms in economics. We describe in detail how to test this model based on empirical data, as well as the advantages and disadvantages of these methods. The results of testing the replicator dynamics model serve as a measure of the intensity of market selection in an economy. An overview of studies that have tested the replicator dynamics model abroad and in Russia is given. A number of conclusions is drawn about the specificity of functioning of market selection in Russia, in particular, about the presence of a large number of low-performing companies (zombie firms). Several proposals are also being made to stimulate competition in order to accelerate economic growth. In the conclusion, we suggest ways on how to improve the model of replicator dynamics taking into account value chains, and provide information about changes in the assessment of market selection based on world input-output data.

Export country selection with fuzzy AHP and PROMETHEE - a case study of a shoe sole manufacturer

With the advancement of technology and communication, international business gives opportunity for firms to expand its coverage beyond its domestic markets. The research is a case study of a shoe sole manufacturer in Indonesia sought to expand its business to international market. Seven potential countries were shortlisted, and 15 sub-criteria were identified for the export market selection of the studied company. The study employed combination of fuzzy AHP and PROMETHEE for its analysis. Fuzzy AHP was used to calculate weight of (sub)-criteria, whilst PROMETHEE was used for ranking the alternatives. Two scenarios were performed using different preference functions in PROMETHEE to gain insights and ensure stability of the recommendation. Using PROMETHEE's stability interval, sensitivity analysis was also performed and recommended two stages of export plan. As the first stage it recommended three countries (Italy, China and Thailand) as the starting export countries for the studied company.

On building up a closer psychic distance as a fundamental ground of relationship between India and Korea: Focusing on Jeonlanam-Do in Korea

The Uppsala model (Johanson and Wiedersheim-Paul, 1975) identifies cultural differences, market attractiveness, and core competence of nations or firms as the key factors affecting international market selection. Among these three factors, psychic distance caused by cultural differences is regarded as the most important factor. However, the psychic distance between India and Korea is not very close. The main objective of this paper is to examine the ways to boost economic relationships between India and Korea by building up a closer relationship of psychic distance. We suggest Jeonlanam-Do including Gwangju Metropolitan City (JDGC) in Korea as a stepping stone to make both countries' psychic distance closer as JD has several common grounds of intangible assets with India which includes its adherence to democracy, human rights and peace; the diverse food culture; and the religious zeal to Buddhism. We propose these common interests as a way to enhance the awareness of national brand 'India' in Korea which will attribute to a strategically developed economic relationship between Korea and India.

Como as Capacidades de Marketing Determinam a Escolha dos Modos de Entrada no Estrangeiro e a Seleção dos Países de Destino

Objetivo: Neste artigo analisamos, conceitualmente, a influência das capacidades de marketing como antecedentes de duas decisões basilares na internacionalização das empresas: a seleção do modo de entrada no estrangeiro e do país de destino.Método: Utilizamos a tipologia com quatro tipos de capacidades de marketing – especializadas, multifuncionais, arquiteturais e dinâmicas – para observar como podem, de modos diferenciados, conduzir a diferentes escolhas de países de destino (localização) e modos de entrada.Principais resultados: Propomos que capacidades de marketing de nível mais alto induzem a internacionalização para países mais desenvolvidos e usando modos de entrada de maior controle e comprometimento de recursos, e em contraste, capacidades de nível mais baixo a escolha de mercados de desenvolvimento idêntico ou inferior e a modos de entrada de menor controle e comprometimento de recursos.Relevância/originalidade – O nosso trabalho explora uma possível relação das capacidades de marketing detidas pelas empresas e sua influência quanto a escolha do modo de entrada em mercados externos e quanto a seleção do país de destino.Contribuições teóricas: Necessário Complementamos a literatura existente sobre o papel das capacidades na internacionalização das empresas, especificamente observando as capacidades de marketing que se revelam mais próximas do mercado, em contraste com pesquisa sobre competências baseadas em conhecimento tecnológico ou inovação, operacionais ou capacidades de fazer arbitragem entre mercados.

Ban, Boom, and Echo! Entrepreneurship and Initial Coin Offerings

Regulatory spillovers occur when regulation in one country affects either the expected regulatory approach and/or entrepreneurial finance markets in other countries. Drawing on institutional theory, we investigate the global implications of a regulatory spillover on entrepreneurship. We argue that regulatory spillovers have both short- and long-term effects on the number and quality of entrepreneurial finance initiatives such as Initial Coin Offerings (ICOs). Based on a sample of 3,838 ICOs in 108 countries, we find that a regulatory ban of ICOs in one country causes a short-term increase in the number of low-quality ICOs in other countries and a long-term drop in the number of ICOs albeit with a higher average quality. Overall, a restrictive regulation triggered a process of increased market selection.

Interlink between factor and product markets: Opportunity for the future of Indian agriculture

Farm households' choice of where to sell the product (marketing channel) is endogenous to the decision of where to buy inputs (selection of an input source). Using the latest National Sample Survey Office (NSSO) Situation Assessment Survey data, and endogenous switching probit regression (ESPR), this study evaluates the impact of input market selection on the choice of (formal) product market. Compared to farm households selling to informal markets, those selling to formal product markets had significantly higher profit per unit of land. Households buying inputs from formal sources like cooperatives and government agencies were 50% more likely to choose formal channels.

Market Selection and the Absence of Arbitrage

A central conjecture of behavioural finance is that arbitrage opportunities appear as a result of systematic irrational investment behaviour and persist since real-world arbitrage trades actually involve costs and risks due to market frictions and non-fundamental risk. This paper shows that the no-arbitrage condition can emerge from the market selection process even if systematic irrational trading behaviour occurs permanently and there are no strategic arbitrage trades. The model consists of two types of agents and two assets. Dividends are independently and identically distributed over time. Both types of agents invest positive amounts of wealth into each asset and keep portfolio weights constant. Arbitrage opportunities naturally occur in the short and medium term depending on how both types invest but disappear in the long run if both types survive the market selection process - regardless of both types' portfolios and initial wealth distribution. A necessary condition for arbitrage opportunities to persist is that one type of agents drives the other one out of the market.

Analysis of the International Market Selection Strategies of Liquor Companies in the Context of “The Belt and Road”

世界科学出版社（World Science Publishing-WSP）立足国际，积极配合中国“走出去”出版战略，大力推进版权输出与引进，并不断拓展国际间的交流与合作，取得显著成绩。WSP国际图书出版项目力倡中国科研人员出版英文图书，出版社具有丰富的国际传播资源与雄厚的编辑、翻译、出版力量，拥有一批著名的中外翻译专家、出版专家，及一支精通国际出版的编辑、翻译和国际营销队伍。探索“科学进步”与“社会进步”是人类永恒主题，WSP推崇以科学信仰引领学术方向，遵循各国法律和地方法规，能够协助您优质、快捷、低

The wisdom of the crowd in dynamic economies

The wisdom of the crowd applied to financial markets asserts that prices represent a consensus belief that is more accurate than individual beliefs. However, a market selection argument implies that prices eventually reflect only the beliefs of the most accurate agent. In this paper, we show how to reconcile these alternative points of view. In markets in which agents naively learn from equilibrium prices, a dynamic wisdom of the crowd holds. Market participation increases agents' accuracy, and equilibrium prices are more accurate than the most accurate agent.

Who Will Bear the Brunt of Lockdown Policies? Evidence from Tele-Workability Measures Across Countries

Lockdowns imposed around the world to contain the spread of the COVID-19 pandemic arehaving a differential impact on economic activity and jobs. This paper presents a new indexof the feasibility to work from home to investigate what types of jobs are most at risk. Weestimate that over 97.3 million workers, equivalent to about 15 percent of the workforce, areat high risk of layoffs and furlough across the 35 advanced and emerging countries in oursample. Workers least likely to work remotely tend to be young, without a college education,working for non-standard contracts, employed in smaller firms, and those at the bottom of theearnings distribution, suggesting that the pandemic could exacerbate inequality. Crosscountryheterogeneity in the ability to work remotely reflects differential access to and use oftechnology, sectoral mix, and labor market selection. Policies should account fordemographic and distributional considerations both during the crisis and in its aftermath.

Enterprise product sales market selection model

Efficient sales logistics is the foundation of sustainability of enterprises in the real economy. This is due to the fact that it is the closing link in the logistics system, production of goods and provides a choice of distribution channels and their participants. The choice of distribution channels, first of all, involves the determination of markets for the products manufactured by the enterprise. Due to the need to ensure the effectiveness of this choice of taking into account a large number of various factors, the solution to this problem involves the use of formalized models and techniques. The article proposes a model and methodology that provides a reasonable choice of markets for the products of an enterprise in the real sector of the economy at the initial stage of forming its marketing logistics strategy. The model is based on a formal apparatus of statistical conclusions based on nonparametric statistics. This made it possible to take into account the inherent uncertainty of the source information inherent in the considered selection problem. The proposed model may be useful for digitalization in the field of logistics management of enterprises in the real sector of the economy.

Strategic Market Selection for Exporting Weapon Systems: Korean Case

Strategic Market Selection for Exporting Weapon Systems: Korean Case

Job Hopping and Adverse Selection in the Labor Market

AbstractA model of employer learning (both symmetric and asymmetric) about worker ability from job histories is constructed, and testable implications are derived to detect asymmetric learning empirically. The model predicts that early-career bad job matches are particularly damaging when learning is asymmetric. Analysis of NLSY79 data reveals that job hopping is associated with lower wages for college graduates, controlling for measured ability, labor market experience, and current job tenure. Suggestive of asymmetric learning, the effect is strongest for job tenures less than one year and for early-career workers, and mitigated when job hopping severs matches that were formed during economic downturns. (JEL D82, J31, J63)

Thematic analysis of short-term renter preferences for housing market in Kuala Lumpur, Malaysia

PurposeThe purpose of this paper is to propose a short-term renters’ preference profile for peer-to-peer (P2P) accommodation selection in the housing market in Kuala Lumpur, Malaysia. The emergence of P2P accommodation was initiated by the concept of a sharing economy, allowing the peer provider to share personal properties with the peer end-users. As the housing market has become more competitive, understanding the preference profile among short-term renters is advantageous to offer a matching marketing mix to the targeted customers.Design/methodology/approachThis study uses qualitative method associated with thematic analysis. A total of 10,509 reviews on Airbnb were gathered from 377 properties in Kuala Lumpur Federal Territory from 2013 to 2017. Thematic analysis assisted by NVivo software was applied to analyse the empirical data. In total, 14 attributes were identified which could be categorised into 5Ps. The concept of 5Ps adopted from modern marketing is commonly used to categorise the strategies in the marketing process. In the current context, 5Ps is used to categorise the preference of the short-term renter in their selection of P2P accommodation including product, price, promotion, process and people.FindingsThis paper has developed a preference profile for P2P accommodation selection in Malaysia’s housing market. In total, 14 attributes were identified and categorised into the 5Ps of marketing mix. The results showed that the majority of short-term renters were concerned mostly with product (73.2 per cent), followed by people (14.5 per cent), process (10.1 per cent), price (2.0 per cent) and promotion (0.2 per cent).Originality/valueThis study contributes to existing literature with a novel case in Malaysia’s housing market by identifying the short-term renter’s preference in the P2P accommodation selection in the Malaysian housing market, specifically in Kuala Lumpur. The preference profile provides guidance for property owners and developers in the housing market to offer the right product in enhancing the marketability and rentability of the property.

International Market Selection of NonProfit Organisations (NPOs): Do we need a new theory?

Despite the growth in the number of NPOs operating abroad, very few studies have been devoted to understanding the international market selection of NPOs. The objective of this paper is to highlight the differences between the for-profit (FPO) and non-profit sectors and thereby argue that the international market selection decisions faced by organizations belonging to these two sectors are different. The study argues that current theories on traditional and for-profit internationalization have to be extended if they are to be used to predict non-profit international market selection. Further in order to highlight the critical differences between the two sectors, the study has examined the international market selection decisions faced by these firms and then developed propositions so that future studies might further develop and empirically test them. As a starting point, the study argues that due to structural differences in the two sectors NPO and FPO, in terms of mission, financing and planning, NPOs tend to have different objectives and pursue different strategies in achieving those objectives compared to FPOs. Furthermore, examining the existing for-profit theories reveal that certain assumptions (e.g., opportunism) on which these theories are based can be challenged in the non-profit context due to the sector’s unique characteristics (e.g., the profit distribution constraint). Therefore, the study argues that certain long-held assumptions on for-profit internationalization cannot be used in their current form to explain the behaviour of non-profit organizations.

Integrated AHP-TOPSIS method for fertilizer producer’s target market selection

Bir işletmenin uluslararası ticarette başarılı olabilmesi ihracat pazar araştırması sürecinin verimliliğiyle ilişkilidir. Genellikle uluslararası piyasalarda bulunan tüm fırsatlar tek seferde kullanılamadığı için hedef pazarlar seçerek o pazarlara odaklanmak gerekmektedir. Literatürde uluslararası pazar yeri seçimi için farklı yöntemler ve modeller önerilmektedir. Her işletme seçilen modeli belirli bir durum için ve kendi yapısı için uyarlamalıdır. Bu çalışmada Antalya’da faaliyet gösteren bir gübre üreticisi işletmesinin hedef pazar seçimi problemi üzerinde durulmuştur. Çalışmada öncelikle AHP Yöntemi kullanılarak işletmenin hedef pazar seçiminde önem verdiği kriterlerin ağırlıkları belirlenmiştir. Nüfus, kişi başı GSMH, gübre tüketimi, gübre üretimi, gübre ticareti dengesi, iş yapma kolaylığı, ülkelere uzaklık ve lojistik performans şeklinde belirlenen kriterler içerisinde en önemli ilk iki kriterin ülkelere uzaklık ve ticaret dengesi olduğu tespit edilmiştir. AHP yöntemiyle elde edilen kriter ağırlıkları TOPSIS yönteminde kriterlerin ağırlıkları olarak kullanılmış ve 33 ülke arasından hedef pazar için uygun ilk 10 ülke belirlenmiştir. Ele alınan kriterler açısından hedef pazar olarak Hindistan ve Brezilya’nın en uygun ilk iki ülke olduğu ortaya çıkmıştır.

Distortions in firm selection during recessions: a comparison across European countries

Abstract Recent evidence documents the weakness of market selection based on productivity differentials and the absence of cleansing during recessions. This article argues that a possible explanation lies in the role of competitive rents, i.e. market advantages due to idiosyncrasies of the firm’s demand. Competitive rents allow firms to sustain profit independently of their internal efficiency, creating a selection advantage. During an economic recession, this advantage increases because competitive rents operate as a resilience factor. The process of firm selection can thus be distorted with relatively inefficient firms that manage to survive. These predictions are tested on a sample of French, Italian, and Spanish manufacturing firms, looking at the selection that took place during the Great Recession. Ceteris paribus, firms with competitive rents are less likely to exit than firms without competitive rents. This effect is stronger in countries more severely impacted by the downturn. The implications of these results for policy interventions to sustain aggregate productivity growth are discussed.

Robust Portfolio Optimization in an Illiquid Market in Discrete-Time

We present a robust dynamic programming approach to the general portfolio selection problem in the presence of transaction costs and trading limits. We formulate the problem as a dynamic infinite game against nature and obtain the corresponding Bellman-Isaacs equation. Under several additional assumptions, we get an alternative form of the equation, which is more feasible for a numerical solution. The framework covers a wide range of control problems, such as the estimation of the portfolio liquidation value, or portfolio selection in an adverse market. The results can be used in the presence of model errors, non-linear transaction costs and a price impact.

How Public Information Affects Asymmetrically Informed Lenders: Evidence from a Credit Registry Reform

We exploit exogenous variation in the amount of public information available to banks about a firm to empirically evaluate the importance of adverse selection in the credit market. A 2006 reform introduced by the State Bank of Pakistan (SBP) reduced the amount of public information available to Pakistani banks about a firm's creditworthiness. Prior to 2006, the SBP published credit information not only about the firm in question but also (aggregate) credit information about the firm's group (where the group was defined as the set of all firms that shared one or more director with the firm in question). After the reform, the SBP stopped providing the aggregate group-level information. We propose a model with differentially informed banks and adverse selection, which generates predictions on how this reform is expected to affect a bank's willingness to lend. The model predicts that adverse selection leads less informed banks to reduce lending compared to more informed banks. We construct a measure for the amount of information each lender has about a firm's group using the set of firm-bank lending pairs prior to the reform. We empirically show those banks with private information about a firm lent relatively more to that firm than other, less-informed banks following the reform. Remarkably, this reduction in lending by less informed banks is true even for banks that had a pre-existing relationship with the firm, suggesting that the strength of prior relationships does not eliminate the problem of imperfect information.