Marketing Efficiency Analysis Research Articles

A multifractal detrended fluctuation analysis of financial market efficiency: Comparison using Dow Jones sector ETF indices

This study challenges the efficient market hypothesis, relying on the Dow Jones sector Exchange-Traded Fund (ETF) indices. For this purpose, we use the generalized Hurst exponent and multifractal detrended fluctuation analysis (MF-DFA) methods, using daily data over the timespan from 2000 to 2015. We compare the sector ETF indices in terms of market efficiency between short- and long-run horizons, small and large fluctuations, and before and after the global financial crisis (GFC). Our findings can be summarized as follows. First, there is clear evidence that the sector ETF markets are multifractal in nature. We also find a crossover in the multifractality of sector ETF market dynamics. Second, the utilities and consumer goods sector ETF markets are more efficient compared with the financial and telecommunications sector ETF markets, in terms of price prediction. Third, there are noteworthy discrepancies in terms of market efficiency, between the short- and long-term horizons. Fourth, the ETF market efficiency is considerably diminished after the global financial crisis.

An Empirical Analysis of Weak Form Market Efficiency: Evidence from Chittagong Stock Exchange (CSE) of Bangladesh

An Empirical Analysis of Weak Form Market Efficiency: Evidence from Chittagong Stock Exchange (CSE) of Bangladesh

ANALISIS USAHATANI BROKOLI (Brassica oleracea L) DAN PEMASARANNYA DI DESA SUMBER URIP KECAMATAN SELUPU REJANG KABUPATEN REJANG LEBONG

This research was conducted with the purpose to: (1) Determine the system of financing farming Broccoli, (2) Calculate farm income of Broccoli, (3) Investigate marketing channels of Broccoli, Calculate its marketing margin and knowing marketing efficiency Broccoli in Sumber Urip village Sub-District Selupu Rejang District of Rejang Lebong. Respondents of Broccoli Farmers are censused 45 Farmers while marketing agencies are determined with Snowball Sampling, total respondent marketing agencies are 25 respondents. The result of this research indicated that the average farmers in the Sumber Urip village their own capital resources obtained from previous farming Broccoli. The averaged income of Broccoli as Rp 5.850.717/Ut/MT. The marketing analysis indicated that the only Broccoli marketing channel in Sumber Urip village was through Farmers à Countryside à Wholeseller à Town Wholeseller à Retailers à Final Consumers. The marketing margin analysis showed that the total marketing margin Broccoli is Rp 10.942/Kg. Broccoli Marketing efficiency analysis results in Sumber Urip shows that every marketing agencies Broccoli studied all efficient it can be seen from the value criteria Countryside Wholeseller is 1.28, Districts Traders 5.52, Town Wholeseller is 1,83 and Retailers 19,21. Keywords: broccoli, income, marketing channels, margin, efficiency

Marketing efficiency of apple - A study in Kullu district of Himachal Pradesh

The present study analysed the efficiency of apple marketing in Kullu district of Himachal Pradesh. Kullu district was purposively selected for the study as apple is predominantly grown in this district. The sample drawn for the study comprised of 40 apple growers of Kullu and Nagar blocks; ten apple contractors, five village traders, five wholesalers and ten retailers operating in Bhuntar Mandi of Kullu block. The modified marketing efficiency analysis was used to analyse the efficiency of marketing channels of apple while the Garrett's ranking technique was used to rank the marketing constraints faced by apple growers. Among the three marketing channels prevailing in the study area, channel III (Producer - Retailer - Consumer) was the most efficient channel as it had the highest modified marketing efficiency index of 6.97. Majority (50 %) of the growers marketed apple through channel III which accounted for about 56 per cent of the total quantity sold by them. The price spread was the lowest (Rs. 122.35) in channel III; and accordingly, the producer's share in final consumer rupee was the highest (87.45 %). The total marketing cost incurred per box (20 kg of apple) by pre-harvest contractor, village trader, wholesaler and retailer was Rs. 88, Rs. 80, Rs. 43, and Rs. 72, respectively. Among the various marketing costs, packing was the major cost followed by transportation for pre-harvest contractor, village trader and retailer; while for the wholesaler, transportation was the major cost followed by storage. The major marketing constraint faced by apple growers was fluctuations in prices.

English

This study was based on input and output obtained from 200 random samples of pineapple farm in South Sumatera Province. The major objective of the study is to analyze the input allocation of pineapple farm from six angles: cultivated area, seed, man power, chemical fertilizer (Urea, TSP, and KCL), manure, and insecticide. The result of Cobb Douglas production function approach indicated that, inputs had not been used optimally. Cultivated area, seed, man power, chemical fertilizer, manure, and insecticide should be increased. In the 8 input factors, cultivated area has the biggest influence on pineapple output. In aggregate, the condition of pineapple farm in this area has increasing returns to scale. From the marketing analysis, the farmers who sold their pineapple by using the shortest channel of distribution received more contribution than the other two kinds. Thus, by using the marketing efficiency analysis, the shortest channel of distribution is more efficient. Key words: Pineapple farm, production function, marketing efficiency.

Marketing channels, their effectiveness and perceived constraints in milk processing in NCR

Major concern of today’s agriculture and allied sector is to tumble wastage and increase farmers’ income. Post harvest operation and value addition of the farm products is one important way to attain this goal. Even if Indian dairy sector has a well renowned position in the world milk market in terms of production, processing and value addition percentage at the farmer level is not in a recognisable stage. Marketing channels, marketing efficiency and price spread of the identified marketing channels among milk producers and milk processors have been analysed here. Comparative study of the producers share in consumer’s rupee of value added milk products and liquid milk showed a significant difference. It was more than 96% in processing of milk and nearly 85% in raw milk. Marketing efficiency analysis showed that channel I (Producer –Consumer) was the most efficient in both group. Price of value added food (Mean Ranks of Friedman’s test is 9.10) was the most important factor which attracts the milk processors to take value addition and post harvest management decisions. Infrastructure related constraints (Mean Rank of Kruskal-Wallis test 28.70) were the major constraint faced by the dairy processors. Under that lack of power and electricity and non-availability of machineries in local places (Mean Ranks of Friedman’s test is 7.70) were identified as the major constraints in the study area. As per the milk producers, technical inhibiting factors (Mean Rank of Kruskal-Wallis test 40.25) prevent them from undertaking the post harvest operations and value addition in raw milk.

Comparative analysis of vegetable production, value-addition and marketing in National Capital Region

Agriculture, especially vegetable sector needs streamlined supply chain in the form of well functioning marketing infrastructure to make ‘farm’ to ‘fork’ model as reality. In the present study, field survey was carried out to identify different existing marketing channels among vegetable producers and processors. Marketing efficiency and price spread of the identified marketing channels were analysed. Producer's share in consumer's price significantly differed among vegetable processors (61%) and producers (30%). Acharya's marketing efficiency analysis method showed that Channel I (Processor/producer-Consumer) was most efficient marketing channel with maximum profit to both processors and producers. Most important motivating factor identified among processor to go for value addition of vegetable produce was price of value added products (Mean ranks of Friedman's test is 12.15). Financial constraint (mean rank of Kruskal-Wallis's test 33.35) to start and run a processing unit was the major constraint faced by the vegetable processors. Under that lack of price policy (mean ranks of Friedman's test is 7.65) was identified as the major constraint in the study area. Marketing related factor was (mean rank of Kruskal-Wallis's test 45.50) identified as major inhibitor among growers to undertake processing of vegetable by their own.

Two Centuries of Farmland Prices in England

The dissemination of robust real estate data can help to improve market efficiency and investment analysis. To provide a perspective on property prices, a long series is vital. While long commercial and residential real estate data series are available, agricultural land is less well served. Comparable series describing long-term price and return histories for farmland in England are fragmented. We redress this data deficiency after considering the methodological complexities involved. The study employs a chain-linking approach to construct a long-term farmland price series for England. It then adjusts the series for inflation to examine real land prices. The resulting two-century series of English farmland prices establishes a basis for a more efficient farmland market analysis.Notwithstanding issues around long-run chain component heterogeneity, the combined series illuminates English average farmland price dynamics and changing land market fortunes. For more than two centuries English land price real capital returns were positive. Farmland real price growth was 0.33 per cent annually from 1781 to 2013 and 0.71 per cent from 1801 to 2013 as measured by the geometric mean. The series provides prima facie support for land investment, even when ignoring spatial peri-urban opportunities, rental income or tax advantages.

Do capital controls affect stock market efficiency? Lessons from Iceland

This paper presents analysis of market efficiency on stock index returns of five countries; Iceland, Denmark, Finland, Norway and Sweden over different periods of market liberalization and capital controls in Iceland. Although financial liberalization is often related to increased stock market efficiency, the results of this study suggest that the Icelandic stock market was relatively more efficient during periods of capital controls relative to periods of free capital flows. This evidence suggests that financial market liberalization does not necessarily lead to a more efficient stock market, at least in a small country. Comparing the efficiency of the Icelandic stock market to four other Nordic markets (Denmark, Finland, Norway, Sweden), our results show the Icelandic and Finnish stock markets to be the least weak-form efficient.

Kinerja dan Efisiensi Rantai Pasok Biji Kakao di Kabupaten Pasaman, Sumatera Barat

Production and marketing area of cocoa in Pasaman is still prospective. However, it faced some problems, such as low price in farmers level, distortion of market information and fluctuative price. Thus, the effective marketing is needed in cocoa beans supply chain. The objective of this study was to analyze the performance of cocoa beans marketing in West Sumatra. The study used primary data which is obtained directly through survey using 64 respondents in Pasaman, West Sumatra from October to November 2014. The method used to analyze cocoa beans supply chain is Food Supply Chain Network (FSCN) approach and descriptive analysis. Marketing performance of cocoa beans was measured by marketing margins, farmer's share, and the ratio of benefits to cost criteria. The results showed that there were six marketing channels of cocoa beans. Marketing agencies involved in this channel are farmer as producer of cocoa beans, farmer trader, village traders, district traders, wholesalers, and exporters. Based on the marketing efficiency analysis, the first channel is more efficient than the others. Marketing margin of channel 1 is 16.1% which is the lowest margin value. Meanwhile, the farmer's share in this channel is 83.9% and the ratio of benefits to costs distribution are relatively spread evenly with total ratio of benefits to costs is 2.4.

Economic analysis of marketing channels and efficiency of marketing of finger millet (Ragi) in Karnataka

A study was conducted on the economics of marketing channels and efficiency of marketing of finger millet (Ragi) in Kolar district of Karnataka during the period of 2011-12. The simple random method was used to select the appropriate unit of marketing functionaries in different channels. Necessary data were obtained from the sample respondents through personal interview method with the help of pre-tested questionnaire in order to ensure the accuracy of the data. In case of channel-I, after harvesting of the finger millet the producer will sell it to village traders and transport to the nearby market. In channel-II, village traders were approached to the producers for harvested finger millet and in channel-III, after harvesting of the main product the producer will sell it to commission agents. The producer share in consumer rupee was 82.30 per cent, 80 per cent and 77.12 per cent in channel-II, channel-III and channel-I, respectively. The price spread was highest in the channel-III with Rs. 2850 per tonne followed by channel-II Rs. 1300 per tonne and in channel-I Rs. 1820 per tonne. The price fluctuation was the major problem in marketing of finger millet i.e. (56%) followed by market information (45 %).

Market Efficiency and Technical Analysis in Romania

In this paper we make a detail evaluation of stock market efficiency in Romania. First, we employ 686,243 trading models derived from 44 technical analysis indicators and determine that significant inefficiencies exist for stock prices in this country. The time varying nature of these points out that market efficiency is not improving over time, but instead fluctuates in the way consistent to the Adaptive Market Hypothesis. We show that investor success does not depend on the target investment asset, slightly depends on specific prediction models and heavily depend on the size of the implemented rule universe. Next, we focus on finding out what are the determining factors for market efficiency. Contrary to what one might expect, we find that market liquidity has an almost insignificant impact on efficiency. The main determining factor for market efficiency in Romania is price momentum, and argues that the detected anomalies are due to investor behavioral biases.

Adjusted Hurst exponent evaluations for equity and energy markets

This study introduced an alternative method in long memory volatility financial time series evaluation using the autoregressive conditional heteroscedasticity models. Instead of direct measurement for long memory Hurst exponent parameter, this approach suggested a short memory filtering procedures using the conditional heteroscedastic specification. The stationary time series which is free from short memory is later evaluated using two heuristic long memory estimations. It is found that this method is able to eliminate the possible spurious long memory in the selected equity and energy markets. The findings of this study are important in long memory estimation and market efficiency analysis.

Contract farming-an efficient marketing method ofAilanthus excelsa

Farmers in Tamil Nadu have resorted to cultivation of short rotation trees in their farm lands in place of or in addition to the agricultural crops as supplement source of income. This study was taken up to assess the marketing efficiency of Ailanthus excelsa tree. Vellore, Tuticorin and Coimbatore districts were purposively selected for the study and information were collected from 30 farmers in these districts. Rank based quotient, marketing efficiency analysis and Garrett ranking techniques were the tools used to obtain the results in light of the objectives set forth. Assured market and good price scored high as reasons for preference of tree cultivation. Concurrent margin method was employed to estimate marketing efficiency and it was found high in contract farming tie up with the match industries compared to the sales through traders. Farmers expected government support in the form of subsidy, improved contract farming arrangements with industries, insurance, loan facilities and high yielding short duration clones suited to their regions. Policy decisions favouring tree farming will increase the green cover in farm lands.

Market Efficiency Analysis of Organic Coffee in Ermera Regency

Market Efficiency Analysis of Organic Coffee in Ermera Regency

An analysis of stock market efficiency: Developed vs Islamic stock markets using MF-DFA

An efficient market has been theoretically proven to be a key component for effective and efficient resource allocation in an economy. This paper incorporates econophysics with Efficient Market Hypothesis to undertake a comparative analysis of Islamic and developed countries’ markets by extending the understanding of their multifractal nature. By applying the Multifractal Detrended Fluctuation Analysis (MFDFA) we calculated the generalized Hurst exponents, multifractal scaling exponents and generalized multifractal dimensions for 22 broad market indices. The findings provide a deeper understanding of the markets in Islamic countries, where they have traces of highly efficient performance particularly in crisis periods. A key finding is the empirical evidence of the impact of the ‘stage of market development’ on the efficiency of the market. If Islamic countries aim to improve the efficiency of resource allocation, an important area to address is to focus, among others, on enhancing the stage of market development.

Market Efficiency and Technical Analysis Can they Coexist?

Market efficiency is generally accepted in the academic community even though it cannot fully describe reality. Primarily due to noise, prices merely reflect beliefs about a firm’s unknown true intrinsic value which makes behavioral finance important. Technical analysis attempts to measure changes in these beliefs to predict stock prices and should have value given the evidence in behavioral finance, the use in practice and the conditional predictability of human behavior. Moreover, the lack of academic evidence in technical studies probably results from the violation of two foundational principles in the discipline.

Analysis & Test of Market Efficiency: A Case Study of KSE

This study employs more recent and comprehensive data (1997-2013) for the empirical verification of weak form efficiency in Karachi Stock Exchange (KSE). We use Augmented Dickey Fuller (ADF) and Philips-Perron (PP) tests to detect unit root in the daily returns series. Further, we run Random Walk Model (RWM) to detect unit root in returns series. We use Runs test to detect any possible serial correlation in residuals. Results are in support of weak form efficiency. However, the study argues that strong form efficiency does not exist in KSE. We compare equity funds returns with KSE 100 Index returns for 10 years (2003-2012) and we find that the mean returns and standard deviations are not much different. However, the correlation between the returns is found to be low which indicates that equity funds do not mimic market index and have very concentrated portfolios comprising of growth stocks. Finally, we also compare the returns and Sharpe ratio for Islamic and conventional equity mutual funds. Since Islamic funds due to investment and trading restrictions can not exactly mimic market portfolio, the return comparison could help in studying whether the contention of EMH proponents that expert investors too can do as good as earning returns on market portfolio is entirely valid or are there some qualifications and exceptions. We report evidence that challenges the EMH proposition.

Price Discovery in the Foreign Exchange Market: The Analysis of Highs and Lows

A great deal of controversy surrounding technical analysis and the efficient market hypothesis as well as a lack of research in the academic literature on the role of price highs and lows in the foreign exchange market were the reasons to undertake this research. The purpose of this paper was to examine a broad range of literature on market efficiency, behavioural finance and technical analysis, and to scrutinise price action after the breakouts of monthly and 52-week highs and lows of 6 major currency pairs over the period of 1980-2011. It was shown that price action followed by the breakouts exhibits a non-random price behaviour which in some currency pairs can help to systematically generate alpha.

Multi-Scale Approximate Entropy Analysis of Foreign Exchange Markets Efficiency

Market efficiency analysis is an important aspect in financial engineering.Based on weak-form efficient markets hypothesis (EMH), we characterize the market efficiency in foreign exchange (FX) markets by using the multi-scale approximate entropy (MApEn) to assess the randomness in FX markets. We split 17 daily FX rates from 1984 to 2011 into there periods by two global events, Southeast Asia currency crisis and American sub-prime crisis. The empirical results indicate that the developed FX markets is more efficient than emerging FX markets, and that the financial crisis promotes the market efficiency in FX markets significantly, especially in emerging markets, like China, Hong Kong, Korea and African market.