The Impact of China on Stock Returns and Volatility in the Taiwan Tourism Industry

This paper investigates the stock returns and volatility size effects for firm performance in the Taiwan tourism industry, especially the impacts arising from the tourism policy reform that allowed mainland Chinese tourists to travel to Taiwan. Four conditional univariate GARCH models are used to estimate the volatility in the stock indexes for large and small firms in Taiwan. Daily data from 30 November 2001 to 27 February 2013 are used, which covers the period of Cross-Straits tension between China and Taiwan. The full sample period is divided into two subsamples, namely prior to and after the policy reform that encouraged Chinese tourists to Taiwan. The empirical findings confirm that there have been important changes in the volatility size effects for firm performance, regardless of firm size and estimation period. Furthermore, the risk premium reveals insignificant estimates in both time periods, while asymmetric effects are found to exist only for large firms after the policy reform. The empirical findings should be useful for financial managers and policy analysts as it provides insight into the magnitude of the volatility size effects for firm performance, how it can vary with firm size, the impacts arising from the industry policy reform, and how firm size is related to financial risk management strategy

Is Small Beautiful? Size Effects of Volatility Spillovers for Firm Performance and Exchange Rates in Tourism

This paper examines the size effects of volatility spillovers for firm performance and exchange rates with asymmetry in the Taiwan tourism industry. The analysis is based on two conditional multivariate models, BEKK-AGARCH and VARMA-AGARCH, in the volatility specification. Daily data from 1 July 2008 to 29 June 2012 for 999 firms are used, which covers the Global Financial Crisis. The empirical findings indicate that there are size effects on volatility spillovers from the exchange rate to firm performance. Specifically, the risk for firm size has different effects from the three leading tourism sources to Taiwan, namely USA, Japan, and China. Furthermore, all the return series reveal quite high volatility spillovers (at over sixty percent) with a one-period lag. The empirical results show a negative correlation between exchange rate returns and stock returns. However, the asymmetric effect of the shock is ambiguous, owing to conflicts in the significance and signs of the asymmetry effect in the two estimated multivariate GARCH models. The empirical findings provide financial managers with a better understanding of how firm size is related to financial performance, risk and portfolio management strategies that can be used in practice

A Tourism Financial Conditions Index

__Abstract__ The paper uses monthly data on financial stock index returns, tourism stock sub-index returns, effective exchange rate returns and interest rate differences from April 2005 – August 2013 for Taiwan that applies Chang’s (2014) novel approach for constructing a tourism financial indicator, namely the Tourism Financial Conditions Index (TFCI). The TFCI is an adaptation and extension of the widely-used Monetary Conditions Index (MCI) and Financial Conditions Index (FCI) to tourism stock data. However, the method of calculation of the TFCI is different from existing methods of constructing the MCI and FCI in that the weights are estimated empirically. The empirical findings show that TFCI is estimated quite accurately using the estimated conditional mean of the tourism stock index returns. The new TFCI is straightforward to use and interpret, and provides interesting insights in predicting the current economic and financial environment for tourism stock index returns that are based on publicly available information. In particular, the use of market returns on the tourism stock index as the sole indicator of the tourism sector, as compared with the general activity of economic variables on tourism stocks, is shown to provide an exaggerated and excessively volatile explanation of tourism financial conditions

Emission Spectroscopic Measurements with an Optical Probe in the NASA Ames IHF Arc Jet Facility

An optical probe was designed to measure radiation (from inside the arc heater) incident on a test sample immersed in the arc-heated stream. Currently, only crude estimates are available for this incident radiation. Unlike efforts of the past, where the probe line of sight was inclined to the nozzle centerline, the present development focuses on having the probe line of sight coincide with the nozzle centerline. A fiber-coupled spectrometer was used to measure the spectral distribution of incident radiation in the wavelength range of 225 to 900 nm. The radiation heat flux in this wavelength range was determined by integration of measured emission spectral intensity calibrated to incident irradiance from an integrating sphere. Two arc-heater conditions, corresponding to stream bulk enthalpy levels of 12 and 22 MJ/kg, were investigated in the 13-inch diameter nozzle of the Interaction Heating Facility at NASA Ames Research Center. With the probe placed at a distance of 10 inches from the nozzle exit plane, total radiative heat fluxes were measured to be 3.3 and 8.4 W/sq cm for the 12 and 22 MJ/kg conditions, respectively. About 17% of these radiative fluxes were due to bound-bound radiation from atoms and molecules, while the remaining 83% could be attributed to continua (bound-free and/or free-free). A comparison with spectral simulation based on CFD solutions for the arc-heater flow field and with spectroscopic measurements in the plenum region indicates that more than 95% of the measured radiation is generated in the arc region. The total radiative heat flux from the line radiation could increase by a factor of two through contributions from wavelengths outside the measured range, i.e., from the vacuum ultraviolet (wavelengths less than 225 nm) and the infrared (wavelengths greater than 900 nm). An extrapolation of the continuum radiation to these two wavelength regions was not attempted. In the tested configuration, the measured radiative heat flux accounts for only about 1.4% of the nominal heat flux on a flat face model and therefore is considered negligible. In the 6-inch diameter nozzle, on account of shorter path lengths, the radiation heat flux could be significant. Therefore, future tests in the 6-inch nozzle will have radiometers in addition to the optical probe

Nonuniform and coherent motion of superconducting vortices in the picometer-per-second regime

We investigated vortex dynamics in a single-crystal sample of type-II superconductor NbSe$_{2}$ using scanning tunneling microscopy at 4.2 K. The decay of the magnetic field at a few nT/s in our superconducting magnet induced the corresponding motion of vortices at a few pm/s. Starting with an initial magnetic field of 0.5 T, we continued to observe motion of vortices within a field of view of 400$\times$400 nm$^2$ subject to decay of the magnetic field over a week. Vortices moved collectively, and maintained triangular lattices due to strong vortex-vortex interactions during the motion. However, we observed two peculiar characteristics of vortex dynamics in this superconductor. First, the speed and direction of the vortex lattice motion were not uniform in time. Second, despite the non-uniform motion, we also found that there exists an energetically favored configuration of the moving vortices in the single-crystal sample of NbSe$_{2}$ based on the overlaid trajectories and their suppressed speeds. We model the system with weak bulk pinning, strong bulk pinning, and edge barrier effects.Comment: 6 pages, 4 figures, Physical Review B (R) in press (2011

Profitable working capital management in industrial maintenance companies

Purpose – The purpose of this paper is to analyze the impact of working capital management on profitability in industrial maintenance service companies. Design/methodology/approach – Analytical modeling has been used as the research method. Finnish industrial maintenance companies have been analyzed on the basis of their financial statements. Findings – We reveal a significant negative correlation between the cycle times of operational working capital and the return on investment of industrial maintenance companies. Light fixed assets and good profitability of the maintenance sector emphasize the importance of working capital management. Large maintenance service companies seem to achieve competitive advantage over small and medium sized maintenance service providers through both fixed assets- and working capital-related economies of scale, and through the fact that large maintenance service providers often focus on providing services mostly for their host companies. Research limitations – The scarcity of large enterprises in the market in question precludes the use of a more extensive sample in the analysis. Practical implications – In the industrial maintenance service business, more attention should be paid to active management of working capital. We can conclude that this holds true especially in large industrial maintenance service enterprises. Originality/value – We contribute to the unexplored perspective of industrial maintenance companies. Previous studies of industrial maintenance companies have not addressed working capital management, which gains more and more attention under the volatile economic circumstances of the present day. Keywords - Industrial maintenance services, Profitability, Working capital, Flexible asset management model Paper type - Research pape

The WiggleZ Dark Energy Survey: Star-formation in UV-luminous galaxies from their luminosity functions

We present the ultraviolet (UV) luminosity function of galaxies from the GALEX Medium Imaging Survey with measured spectroscopic redshifts from the first data release of the WiggleZ Dark Energy Survey. This sample selects galaxies with high star formation rates: at 0.6 < z < 0.9 the median star formation rate is at the upper 95th percentile of optically-selected (r<22.5) galaxies and the sample contains about 50 per cent of all NUV < 22.8, 0.6 < z < 0.9 starburst galaxies within the volume sampled. The most luminous galaxies in our sample (-21.0>M_NUV>-22.5) evolve very rapidly with a number density declining as (1+z)^{5\pm 1} from redshift z = 0.9 to z = 0.6. These starburst galaxies (M_NUV<-21 is approximately a star formation rate of 30 \msuny) contribute about 1 per cent of cosmic star formation over the redshift range z=0.6 to z=0.9. The star formation rate density of these very luminous galaxies evolves rapidly, as (1+z)^{4\pm 1}. Such a rapid evolution implies the majority of star formation in these large galaxies must have occurred before z = 0.9. We measure the UV luminosity function in 0.05 redshift intervals spanning 0.1<z<0.9, and provide analytic fits to the results. At all redshifts greater than z=0.55 we find that the bright end of the luminosity function is not well described by a pure Schechter function due to an excess of very luminous (M_NUV<-22) galaxies. These luminosity functions can be used to create a radial selection function for the WiggleZ survey or test models of galaxy formation and evolution. Here we test the AGN feedback model in Scannapieco et al. (2005), and find that this AGN feedback model requires AGN feedback efficiency to vary with one or more of the following: stellar mass, star formation rate and redshift.Comment: 27 pages; 13 pages without appendices. 22 figures; 11 figures in the main tex