Secondary Market Research Articles

ТЕНДЕНЦІЇ ТА СУЧАСНІ ЗРУШЕННЯ В ІНВЕСТИЦІЙНОМУ СЕРЕДОВИЩІ НА РИНКУ ЖИТЛОВОЇ НЕРУХОМОСТІ

The article analyzes the development trends of the primary and secondary residential real estate market in Ukraine for 2020-2021 and identifies the main changes in the investment environment in this market. The economic essence of the concept of "investment attractiveness" and related concepts "investment process", "investment activity" and "investment climate" are clarified. A comparative analysis of the investment attractiveness of residential real estate in different regions of Ukraine revealed that in 2020 the secondary housing market was more attractive for investment, but in 2021 the investment attractiveness of the primary and secondary residential real estate market generally deteriorated. It was found that the main reason for the decline in the investment attractiveness of the national housing stock is that in 2020-2021 apartment prices in the most attractive regions of Ukraine continued to grow, although their pace slowed down. It is substantiated that in order to intensify investment activity in the real estate market in Ukraine it is necessary to create a favorable investment climate for all business entities on a civilized basis and in accordance with the principles of transparency and social conditions. To improve the investment climate and improve the investment attractiveness of the residential real estate market, the Ukrainian government is recommended to develop effective measures aimed at significantly reducing mortgage interest rates to a level where mortgages will be available to most citizens.

Study of Chinese carbon emission trading market mechanism based on the game theory

<p>In order to provide corresponding suggestions for the establishment and development of China's carbon trading market mechanism, the three-party game model of the competent government departments, carbon emission enterprises and third-party verification institution in the initial allocation of carbon emission rights and the rotation bargaining game model in the secondary carbon trading market are solved and analyzed in this paper. The results show that the competent government departments should improve the review efficiency effectively to reduce cost by outsourcing the review work to universities, research institutes and other scientific research units and increasing punishment for the collusion behavior between the carbon emission enterprises and third-party verification institution. At the same time, the competent government departments should adopt the regular regulatory policies to deal with collusion behavior and reduce the sampling proportion to cut cost of government review. The trading center should directly determine transaction price in combination with the forces of buyers and sellers, and make matchmaking trading directly by selecting the qualified buyers and sellers at the secondary carbon trading market in process of bilateral open bidding.</p>

Sharing Radio Spectrum for Research and Innovation

In most countries academic researchers have access to advanced academic telecommunications networks and infrastructures to test and demonstrate the results of their research work. These networks are usually funded by national or regional public authorities. To provide access to the academic networks on a wider scale, European and international collaboration initiatives have been taken. For the fixed network environment this may suffice but the situation is different in the wireless context, partly because here, researchers must, in one way or another, obtain spectrum usage rights. Today spectrum usage rights can be quite easily obtained in the restricted territorial space of a testbed. Yet, small-scale testbeds are not sufficient anymore for realistic validation, and the scientific community today needs large-scale field deployments working with the same radio spectrum as the commercial networks and capable of supporting new technologies and services. The evolution from lab testbeds to field deployments is required to increase the validation capabilities for complex systems like connected cars, massive Internet of Things (IoT) or eHealth solutions. Appropriate frequency bands, needed by researchers to carry out, for example, large-scale 5G experiments, are generally allocated via auctions and on an exclusive basis to large mobile network operators. While it is perfectly feasible for these MNOs to keep dedicated slices for tests and demonstrations in their networks separate from their day-to-day operations without negative effects for the latter, there are few regulatory mechanisms for stimulating MNOs to make parts of their spectrum usage rights available for the academic research community. All EU Member States allow short-term licenses for the use of radio spectrum for research, testing, and experimental purposes, but procedures, requirements, and costs for obtaining such license vary significantly. These national differences do not allow for the creation of a persistent and pan-European network of wireless capacity for research, testing, and experimental purposes. On the secondary market, leasing or transferring radio spectrum usage rights is possible, and procedures seem more harmonized.

Development of Order Quantity Optimization Model for Growing Item Considering the Imperfect Quality and Incremental Discount in Three Echelon Supply Chain

This research develops an optimization model for determining the order quantity for growing items by considering the imperfect quality and incremental discount by involving three supply chain members: farmers, processors, and retailers. The farmers are responsible for caring for the newborn items until they reach their ready-to-eat weight. The processors perform two roles, namely processing and screening. In the processing role, the processors process the grown items by a slaughtering and packaging process. Afterward, they inspected the processed items and categorized the items into good and poor quality. Finally, they shipped the end products to retailers. The retailers are responsible for selling good-quality items to the final consumers. This research considers two kinds of poor quality. First is the poor quality of growing items in terms of mortality rate. The second is the poor quality of final products on the processor side. The processed items with poor quality are then sold to the secondary market at lower prices in one batch at the end of the period. This model also considers the incremental discounts offered by vendors to farmers and retailers to consumers for specific amounts of purchases. The model's objective function is to maximize the total supply chain profit, with the number of orders quantity, cycle time, and the number of batches delivery set as the decision variables. The sensitivity analysis results show that the most sensitive parameter in the model is the probability that the live items survive throughout the growth period.

Pricing and market segmentation coordination in a push–pull supply chain with sequentially observed demand

This paper investigates the problem of supply chain coordination where the market is segmented by price differentiation and the demand is sequentially observed. The manufacturer sells a single product to the retailer who offers the product at differentiated prices in primary (full priced) and secondary (discounted) market segments based on customers’ willingness-to-pay (WTP). We explore two scenarios. In the first scenario, referred to as priority scenario, the demand in the primary market segment is observed prior to the secondary market segment. The retailer assigns a higher priority to this market segment and the leftover inventory is sold in the secondary market segment. In the second scenario, referred to as the reservation scenario, the demand in the discounted market segment is observed prior to the demand of the primary market segment. Therefore, the retailer enforces reservation limit to protect the stock for primary market customers with a higher WTP who arrive later. We explore the situation when the demand in primary and secondary market is simultaneously observed and also when the demand information is only partially known. The three coordination schemes, namely, decentralized channel, integrated channel, and revenue -sharing contract via bargaining solution are analyzed and coordination models are developed.

DETERMINANTS OF MORTGAGE LOAN REPAYMENT IN GHANA

The housing deficit in Ghana is an issue of concern for all. This study sought to analyse the determinants of the repayment of mortgage loans in Ghana. The study used both secondary and primary data. The mixed-method approach was used for the study. The data collection instruments were interviews, focus group discussions and questionnaires. The study revealed that socio-demographic characteristics of respondents, sex distribution of respondents, educational level of respondents, marital status of respondents, occupational status of respondents, household size of respondents, the income of respondents are some of the factors that affect the repayment of mortgage loans in Ghana. The study revealed that borrowers who earned higher income had a better repayment performance as compared to low income earning borrowers. In addition, higher household sizes have lower repayment capacity and lower household sizes have higher repayment capacity. The study recommends that the government of Ghana should institute state bodies responsible for providing liquidity to mortgages and mortgage properties and buying mortgages during periods of rising interest rates is a way of creating a secondary mortgage market for the Ghanaian mortgage industry. Keywords: Determinants, Mortgage, Repayment, Ghana.

Work Primacy and the Social Incorporation of Unaccompanied, Undocumented Latinx Youth in the United States

Abstract This study investigates the social incorporation of unaccompanied, undocumented Latinx youth workers as they come of age in the United States. Based on research with undocumented Central American and Mexican young adults who grew up as unaccompanied minors in Los Angeles, California, the data reveal that the pressures of financial obligations to families in the sending country and their own sobrevivencia (survival) in the United States, along with limited financial and social resource and mobility, produce a social incorporation trajectory shaped by the primacy of work. Work primacy conditions youth’s educational opportunities, community embeddedness, and family relationships and limits unaccompanied, undocumented youth’s ability to establish and maintain social networks with consequences for their social incorporation. The precarious occupations within the secondary labor market that are characterized by long hours, low wages, labor market restrictions, and unsafe and unsanitary work conditions limit opportunities for socioeconomic mobility for all youth. Women and Indigenous youth are distinctly affected by work primacy. This research advances our understanding of immigrant youth’s lives by examining how institutional context, familial obligations across borders, and limited ethnic networks play a role in shaping the incorporation experiences of unaccompanied, undocumented Latinx immigrants as they come of age in the United States.

Environmental and Socioeconomic Impacts of Poly(ethylene terephthalate) (PET) Packaging Management Strategies in the EU

Plastics are a challenge for the circular economy due to their overall low recycling rate and high dependency on primary resources. This study analyzes the EU demand for poly(ethylene terephthalate) (PET) packaging from 2020 to 2030 and quantifies the potential environmental and societal savings by changing the waste management and consumption patterns compared with business-as-usual practices. The results of the life-cycle assessment and life-cycle costing show that a maximum of 38 Mt of CO2-eq and 34 kt of PM2.5-eq could be saved with a more efficient waste management system and a robust secondary material market while also avoiding 8.3 billion EUR2019 in societal costs (cumulative 2020-2030). However, limiting annual PET consumption growth appears to have a similar profound effect on improving the efficiency of waste management systems: 35 Mt of CO2-eq, 31 kt of PM2.5-eq, and 25 billion MEUR2019 societal costs could be saved, simply by keeping EU consumption of PET constant.

Influence of financial performance on underpricing of shares

Differences in shares prices before being traded on the secondary market caused investors to prefer to buy shares through the initial market at a much lower set price (underpricing of shares The Company wants to signal open information in terms of financial statements to investors by publishing a prospectus financial statement containing the financial performance of the company so that the company can make the right decisions regarding future investments and avoid information asymmetry (Guiness, 1992). This research aims to empirically test independent variables namely financial performance against variable dependent underpricing shares of banking corporations in 2019-2020, both simultaneously and partially. This study sampled as many as 60 banking corporations taken by purposive sampling methods. This study sampled as many as 60 banking corporations taken by purposive sampling methods. This research uses a quantitative approach through multiple regression analysis testing. The researcher found by partially testing that Earnings Per Share (X4), and Price Earning Ratio (X5) variables together influenced on Of Shares underpricing, whereas, the Current Ratio (X1), Return on Equity-ROE (X1), and Return of Assets-ROA (X3) variables had no significant influence on under-pricing of shares.

Developments and convergence of real housing prices in Poland during the COVID-19 pandemic: focus on voivodeship capitals

The paper aims to present and assess the changes in real housing prices in Poland during the COVID-19 pandemic. We analyse transaction prices of residential premises in a multi-family housing (apartments) in the primary and secondary markets within 16 administrative capitals of voivodeships. We use quarterly data on House Prices Database collected by the National Bank of Poland and data on quarterly price indices of consumer goods and services from Statistics Poland. The research period covers the period 2018-2021, with distinction into COVID-19 - and pre-COVID-19 periods. We observe the highest housing prices in Warszawa, Gdańsk, Kraków, and Wrocław, while the lowest in Zielona Góra and Kielce. Surprisingly, the growth rate in real housing prices in the pandemic sub-period is lower than in corresponding pre-COVID-19 period. In the COVID-19 sub-period, we observe the most significant increases in real estate prices in Zielona Góra and Szczecin in the primary market, and Kraków, Lublin, and Łódź in the secondary market. Additionally, we reveal the existence of regional price convergence in the housing market in analysed cities, both in primary and secondary markets. However, we do not observe a common price convergence, but only convergence clubs (city-groups) where the housing prices tend to converge in the COVID-19 sub-period.

The Role of Secondary Resource Market in the Development of the Extended Producer Responsibility Mechanism in Russia

The paper is aimed at the evaluation of current state of secondary resource market in Russia and the determination of factors of their influence on the extended producer responsibility (EPR). Research objectives include scientific justification of directions for the improvement of solid waste management handling process in the Russian regions in order to provide the support for manufactories and importers performing the extended producer responsibility activities. GAP-analysis was used as a method of obtaining the systematic results on the basis of the information received about the current state of the Russian secondary resource market according to various criteria, including the product quality, processing methods, communication between producers and consumers, and state regulations. Research is executed on the grounds of collaborative use of positivistic and phenomenological approaches, where the findings are based on the comparison of experts’ opinions on the factors influencing the development of EPR mechanism, and statistics of the financial performance of main players of the Russian secondary resource market. As a scientific novelty, it is proposed to use the development of secondary resource market for enhancing of EPR mechanism in Russia. The study reveals that successful functioning of the extended producer responsibility mechanism depends not only on business representatives involved in the production of goods and packaging, but also on consumers and on the state authorities.

Better Together? Examining the Impact of Official Secondary Ticketing Partnerships on Consumers’ Attitudes and Behaviors

Abstract: To overcome the negative stigma due to their association with ticket fraud and price inflation, research has suggested secondary ticket market companies partner with professional sport leagues and teams. Moreover, such a partnership can increase revenues of the ticket market companies. However, additional research is needed to explore how official partnerships influence consumers’ attitudes and purchase intentions. Relevant findings clarify the mechanism through which official partnerships affect secondary ticket providers’ financial success and provide insight into consumers’ attitudes toward the ticket resale industry while informing the literature on the effectiveness of sponsorships. Thus, utilizing a multi-study design, the current research examines consumers’ perceptions of official partnerships and assesses their impact on purchase intentions. Also, given historical negative perceptions of the secondary ticket market, the current study investigates the mediating effects of perceived risk and the moderating effects of ticket price.

Emission trading innovation mechanism based on blockchain

The rationality and scientific nature of the emission trading mechanism is the key to the effective implementation of environmental and economic policies. As far as China is concerned, there are phenomena such as information asymmetry, low supervision efficiency, and alienation of government and enterprise behaviors caused by the incomplete mechanism of emission trading in the practice of different pilots. The introduction of blockchain technology can innovate the traditional transaction model and form a decentralized peer-to-peer transaction and a trusted emission trading market. To this end, based on the current emission trading mechanism and the characteristics of blockchain technology, this paper couples the core technologies of blockchain with the functional requirements of application scenarios. Then, an innovative application framework is built based on the consortium blockchain Fabric from three aspects: emission trading supervision, secondary trading market construction, as well as emission trading incentive and punishment mechanisms. Technologies such as the consensus mechanism, smart contract, Merkle tree and asymmetric encryption are comprehensively applied in this process. In the construction of the blockchain framework of the secondary market for emission trading, institutional changes and innovations brought about by the blockchain at various levels are analyzed in terms of participants, transaction processes and the transaction scope. At the same time, smart contract functions and algorithms are designed for the purchase, transfer-out and trading of emission rights, and the operation business logic of the smart contract is analyzed. On the whole, this paper explores the application framework of blockchain technology in the field of emission trading at the macro level, and analyzes the application mechanism of the corresponding technologies of blockchain at each coupling point in the framework at the micro level. The collaborative analysis at the two levels shows that blockchain technology and the requirements of emission trading mechanism can be effectively coupled, and the application of blockchain technology can promote the effective supervision of enterprises' emission behavior, making the processes of the purchase, transfer and transaction of emission rights intelligent and automated, and providing technical support for cross-regional emission trading to reduce transaction costs and management complexity. In addition, the issuance of emission credits based on smart contract will be a new incentive for companies to actively participate in transactions. Based on the above analysis, this paper believes that the innovative application of blockchain technology is of great significance in the promotion of the market-based allocation of element of emission trading and the rational allocation of environmental resources. It will lead to a major breakthrough in the traditional trading system in terms of trading modes, forming a value transmission network of environmental resources between the government and polluters.

Impact of family ownership, management, and generations on IPO underpricing and long-run performance

This paper examines the impact of family ownership, management, and generations on IPO underpricing and the long-run performance of publicly listed firms in Indonesia from 2004 to 2015. This study is based on agency theory, which discusses the relationship between shareholders and management, as well as controlling and non-controlling shareholders. Study results show that IPO underpricing was 28% higher for family firms than non-family firms. Among family firms, a family member’s presence as a Chief Executive Officer (CEO) significantly reduced the level of IPO underpricing. A negative relationship between family CEO and IPO underpricing was only observed if a CEO at the time of IPO was the founder instead of family descendants. A long-run return of family-firm IPOs was more likely to underperform their non-family-firm counterparts. The findings in the primary market suggest that investors predict bigger issues of agency conflicts between controlling and non-controlling shareholders in family firms than the issues of agency conflicts between shareholders and management in non-family firms. Since investors consider family-firm IPOs to be riskier than non-family firms, they demand a higher level of IPO underpricing to compensate for such risks. The results in the secondary market confirm the findings in the primary market.

Social origin and secondary labour market entry: Ascriptive and institutional inequalities over the early career in Italy and Germany

This paper investigates how labour market flexibilisation strengthens the role of social origin in conditioning inter- and intragenerational mobility chances. Drawing on the upper-class aversion to downward mobility, we explore mechanisms through which advantaged social origin directly compensate for the socioeconomic penalty that arises from initial contractual instability over the career. Conversely, we examine whether a bad start for less-socially privileged entrants represents a source of cumulative disadvantage. The Italian and German labour markets are compared since optimal national cases of labour market duality and rigidity yet differing in their educational and labour market institutions and mobility regimes. We perform growth curves under a matching framework to counterfactually compare the career development of service- and working-class entrants in the two countries, who began with similar socioeconomic status. We reveal that social origin contributes to unequal trajectory developments in both contexts, especially for the low- and middle-educated. No significant DESO over the career emerges among degree holders in either country. Finally, attending university entirely reduces the flexibility penalty in Italy, whereas for German graduates, initial instability serves as a gateway to more prestigious jobs.

For the love of the environment: An analysis of Green versus Brown bonds during the COVID-19 pandemic

Increased awareness among investors about environmental and social issues made green bonds a popular investment alternative over the last decade. This study analyzes whether the primary and secondary market return performance of green bonds is affected from the market conditions induced by the pandemic. Results presented in this study show that while both green and comparable conventional (brown) bonds issued by corporations experienced a decline in their primary market yields following the start of the pandemic, the decline for the green bonds was somewhat larger, resulting in green bond yields that are 32 basis points lower on average. Secondary market results of the study confirm the stronger demand for green bonds in this market as well and show that while both green and brown bonds experience a decline in their secondary market returns during the pandemic, the decrease in brown bond returns is 45 basis points larger compared to green bonds. Findings also suggest that failure to consider issuer types may lead to biased results when green bonds are compared against their conventional alternatives.

Money runs

In this paper, we develop a model that links the funding role of bank debt in the primary market to its circulation in the secondary market. We uncover a new rationale for why banks do what they do. Banks choose to fund themselves with demandable debt because it commands a high price, even though doing so exposes them to “money runs” resulting from its failure to circulate. In the model, banks endogenously perform the essential functions of real-world banks: they transform liquidity, transform maturity, pool assets, and have dispersed depositors. We show novel effects of suspension of convertibility.

How Effective are Stock Market Reforms in Emerging Market Economies? Evidence from a Panel VAR Model of the Indian Stock Market

The paper uses a panel VAR framework to estimate the impact of a series of reforms aimed at reducing transactions cost and information cost in India’s secondary market for equity, on trading cost and trading volume. In particular, we focus on the reforms that were introduced after the creation of the National Stock Exchange (NSE) and screen-based trading that have been much discussed in the literature. Our results suggest that only the creation of the clearing corporation that reduced or eliminated counterparty risk had an economically meaningful/significant impact on trading cost and volume. We also find that the impact was much greater for mid-cap firms and, to a lesser extent, for small-cap firms than for large-cap firms. Further, while trading costs and trading volumes Granger cause each other for mid-cap firms, there is only one-way causality for large-cap firms—trading cost Granger causes volume but the reverse is not true, and for small-cap firms there is no causal relationship between the two. The policy implications of these findings are discussed in the paper.

Uncharted waters: Investors get access to foreign exchange-traded funds

In 2022, Russian investors will get access to the wide possibilities of the global financial market. The Bank of Russia opens the market for foreign exchange-traded funds (ETFs) — one of the main savings instruments for households. The economy of ETFs differs from other investment funds, whose shares do not have secondary market. The opening of the ETFs market is intended to solve a number of issues for retail investors: moving away from the preference to individual foreign shares towards portfolio diversification, cost reduction, ensuring sustainable profitability, abandoning the aggressive securities trading, and supporting market competition. Soon, ETFs will be one of the driving forces in financial markets. However, their rapid growth is fraught with little-studied effects.

Market-consistent valuation of natural catastrophe risk

Natural catastrophe risk is increasingly being covered through alternative capital instead of reinsurance. Since most such instruments do not trade in an active market, their ongoing valuation is a challenge. As a solution, we propose to exploit pricing information embedded secondary market catastrophe bond quotes. Specifically, we use a reduced form model to extract implied Poisson intensities from regularly observed prices. Next, we show that the intensities can be explained by time to maturity and modeled probability of first loss. Along these two dimensions, we estimate smooth intensity surfaces that allow investors to mark illiquid catastrophe risk positions to market.