Foreign Portfolio Investors before and during a Crisis

Using a unique data set, we study the trading behavior of foreign portfolio investors in Korea before and during the currency crisis. Different categories of investors have significant differences as well as similarities. First, non-resident institutional investors are always positive feedback traders, whereas resident investors before the crisis were negative feedback (contrarian) traders but switch to be positive feedback traders during the crisis. Second, individual investors herd significantly more than institutional investors. Non-resident (institutional as well individual) investors herd significantly more than their resident counterparts. Third, differences in the Western and Korean news coverage are correlated with differences in net selling by non-resident investors relative to resident investors.foreign portfolio investment, crisis, feedback trading, herding

Offshore Investment Funds: Monsters in Emerging Markets?

The 1997-99 financial crises in the emerging markets have brought to the foreground the concern about offshore investment funds and their possible role in exacerbating volatility in the markets they invest in. Offshore investment funds are alleged to engage in trading behaviors that are different from their onshore counterparts. Because their behavior is less moderated by tax consequences, and because they may be subject to less supervision and regulation, the offshore funds may trade more intensely. They could also pursue more aggressively certain trading strategies such as positive feedback trading or herding that could contribute to greater volatility in the market. Using a unique data set, we compare the trading behavior in Korea by offshore funds with that of their onshore counterparts registered in the United States and the United Kingdom. There are a number of interesting findings. First there is indeed evidence suggesting that the offshore funds trade more intensely than their onshore counterparts. Second, however, there is no evidence that the offshore funds engage in positive feedback trading. In contrast, there is strong evidence that the funds from the US and UK do so. Third, while offshore funds herd, they do so significantly less than the offshore funds from the US or UK. In sum, the offshore funds are not especially worrisome monsters.

The Big Players in the Foreign Exchange Market: Do They Trade on Information or Noise?

This paper studies whether there exists private information in the foreign exchange market, and whether speculation reduces or exacerbates volatility. It makes use of a recent data set on foreign currency positions by large market participants that include positions on options and other derivatives. This is the first data set that describes comprehensive currency positions of market participants. There are two main findings. First, not only the absolute value of the options position but also that of spot, forward and futures positions by large participants Granger-causes exchange rate volatility. This suggests that the large participants' currency speculation does not stabilize exchange rate volatility. Second, regression analyses do not find any positive association between large participants' position in a foreign currency with its subsequent appreciation. A non-parametric approach finds some weak support for a positive association but not on a systematic level. This casts into doubt the view that large participants have better information about the future movement of exchange rates. It further strengthens the case that the large players trade on noise rather than on information.Exchange rate, asymmetric information, noise trading

Ultraviolet-c haematogenous oxidation therapy of lipopolysaccharide-induced endotoxemia in a rabbit model: A biochemical study

Systemic inflammatory reaction – due to severe response to toxins of infection associated with immune inhibition – leads to multi-organ dysfunctions and high mortality. Ultraviolet (UV) blood is used for its therapeutic effects when moving across the cells. This study aims to evaluate the impact of UV-c Haematogenous Oxidation Therapy (HOT) in Lipopolysaccharide (LPS)-induced endotoxemia of rabbit model. A total of 40 rabbits randomly divided into four groups, including normal control (NC). LPS and LPS+UV-c HOT groups received 0.1 mg/kg LPS toxin of E. coli, UV-c HOT and LPS+UV-c HOT groups subjected to UV-c HOT treatments once weekly for five times. Blood collected, perfused with oxygen, UV-c directly irradiated into blood, and then auto-transfused. Rabbits were sacrificed after five weeks; blood and serum were collected for analysis. The survival rate, liver, kidney, lipid profile, and blood ions were assessed in treated rabbits. Mortality was 40% in the LPS group, while other groups showed no death. UV-c HOT enhanced critical pH, base deficit, blood gases, hypomagnesemia, hyperlactatemia, and concurrent acidosis. Besides, TNF-α, nitrite, and nitrate were suppressed in response to UV-c HOT. Moreover, UV-c HOT reduced liver and kidney enzymes, improved lipid metabolism, and ameliorated electrolytes homeostasis. Despite that, UV-c HOT performance in ICU for human and animal endotoxemic or septic patients should be evaluated and considered

Ultraviolet-C haematogenous oxidation therapy of lipopolysaccharide-induced endotoxemia in a rabbit model: A biochemical study

445-454Systemic inflammatory reaction – due to severe response to toxins of infection associated with immune inhibition – leads to multi-organ dysfunctions and high mortality. Ultraviolet (UV) blood is used for its therapeutic effects when moving across the cells. This study aims to evaluate the impact of UV-C Haematogenous Oxidation Therapy (HOT) in Lipopolysaccharide (LPS)-induced endotoxemia of rabbit model. A total of 40 rabbits randomly divided into four groups, including normal control (NC). LPS and LPS+UV-C HOT groups received 0.1 mg/kg LPS toxin of E. coli, UV-C HOT and LPS+UV-C HOT groups subjected to UV-C HOT treatments once weekly for five times. Blood collected, perfused with oxygen, UV-C directly irradiated into blood, and then auto-transfused. Rabbits were sacrificed after five weeks; blood and serum were collected for analysis. The survival rate, liver, kidney, lipid profile, and blood ions were assessed in treated rabbits. Mortality was 40% in the LPS group, while other groups showed no death. UV-C HOT enhanced critical pH, base deficit, blood gases, hypomagnesemia, hyperlactatemia, and concurrent acidosis. Besides, TNF-α, nitrite, and nitrate were suppressed in response to UV-C HOT. Moreover, UV-C HOT reduced liver and kidney enzymes, improved lipid metabolism, and ameliorated electrolytes homeostasis. Despite that, UV-C HOT performance in ICU for human and animal endotoxemic or septic patients should be evaluated and considered

How Does Corporate Governance Risk at Home Affect Investment Choices Abroad?

Disparity between control and ownership rights gives rise to the risk of tunneling by the controlling shareholder, and is prevalent in many emerging market economies and present in some developed countries. At the same time, international investors come from different countries whose home markets are characterized by varying degrees of control-ownership disparity. This paper studies whether this difference in investors’ home countries affects their portfolio choice in an emerging market. It combines two unique data sets on ownership and control in business groups, and investor-stock level foreign investment in Korea. A key finding is that, investors from low-disparity countries disfavor high-disparity stocks in Korea, but investors from high-disparity countries are indifferent. Moreover, investors from low-disparity countries became averse to disparity only after the Asian financial crisis. These results suggest that the nature of corporate governance in international investors’ home countries affects their portfolio choice abroad, and therefore that these investors should not be lumped together in the analyses of their portfolio choice.

Effects of candesartan, an angiotensin II receptor type I blocker, on atrial remodeling in spontaneously hypertensive rats

Hypertension-induced structural remodeling of the left atrium (LA) has been suggested to involve the renin–angiotensin system. This study investigated whether treatment with an angiotensin receptor blocker, candesartan, regresses atrial remodeling in spontaneously hypertensive rats (SHR). Effects of treatment with candesartan were compared to treatment with a nonspecific vasodilatator, hydralazine. Thirty to 32-week-old adult male SHR were either untreated (n = 15) or received one of either candesartan cilexetil (n = 9; 3 mg/kg/day) or hydralazine (n = 10; 14 mg/kg/day) via their drinking water for 14 weeks prior to experiments. Untreated age- and sex-matched Wistar- Kyoto rats (WKY; n = 13) represented a normotensive control group. Untreated SHR were hypertensive, with left ventricular hypertrophy (LVH) compared to WKY, but there were no differences in systolic pressures in excised, perfused hearts. LA from SHR were hypertrophied and showed increased fibrosis compared to those from WKY, but there was no change in connexin-43 expression or phosphorylation. Treatment with candesartan reduced systolic tail artery pressures of conscious SHR below those of normotensive WKY and caused regression of both LVH and LA hypertrophy. Although hydralazine reduced SHR arterial pressures to those of WKY and led to regression of LA hypertrophy, it had no significant effect on LVH. Notably, LA fibrosis was unaffected by treatment with either agent. These data show that candesartan, at a dose sufficient to reduce blood pressure and LVH, did not cause regression of LA fibrosis in hypertensive rats. On the other hand, the data also suggest that normalization of arterial pressure can lead to the regression of LA hypertrophy

Long-term oral intake of Panax ginseng improves hypomagnesemia, hyperlactatemia, base deficit, and metabolic acidosis in an alloxan-induced rabbit model

Objective(s): Panax ginseng (PG) widely used for its various pharmacological activities, including effects on diabetes and its complications. This study aims to investigate the effect of PG on mortality-related hypomagnesemia, hyperlactatemia, metabolic acidosis, and other diabetes-induced abnormalities. Materials and Methods: Type 1 diabetes was induced by IV injection of alloxan monohydrate 110 mg/kg into New Zealand white rabbits weighing 2-2.5 kg. PG was supplied in drinking water for 20 weeks. The effects of the PG treatment on diabetes were evaluated through hematological and biochemical analysis including ELISA assays for insulin and glycated haemoglobin A1c (HBA1c) before and after PG extract was supplied. Results: The serum glucose, insulin, and HBA1c levels were significantly improved after the PG treatment compared to those found before PG treatment. In addition, Mg2+, lactate, and base deficit, and acidosis was significantly enhanced in treated rabbits. Moreover, PG showed hepato- and renoprotective effect. Likewise, electrolytes, lipid and protein profile were improved.Conclusion: The biochemical and hematological analysis data demonstrate that the PG is effective to alleviate the diabetes serious signs

The Big Players in the Foreign Exchange Market: Do They Trade on Information or Noise?

This paper studies whether there exists private information in the foreign exchange market, and whether speculation reduces or exacerbates volatility. It makes use of a recent data set on foreign currency positions by large market participants that include positions on options and other derivatives. This is the first data set that describes comprehensive currency positions of market participants. There are two main findings. First, not only the absolute value of the options position but also that of spot, forward and futures positions by large participants Granger-causes exchange rate volatility. This suggests that the large participants' currency speculation does not stabilize exchange rate volatility. Second, regression analyses do not find any positive association between large participants' position in a foreign currency with its subsequent appreciation. A non-parametric approach finds some weak support for a positive association but not on a systematic level. This casts doubt on the view that large participants have better information about the future movement of exchange rates. It further strengthens the case that the large players trade on noise rather than on information.

Foreign Portfolio Investors Before and During a Crisis

Different categories of foreign portfolio investors in Korea have differences as well as similarities in their trading behavior before and during a currency crisis. First, non-resident institutional investors are always positive feedback traders, whereas resident investors were negative feedback (contrarian) traders before the crisis but switch to be positive feedback traders during the crisis. Second, individual investors herd significantly more than institutional investors. Non-resident (institutional as well as individual) investors herd significantly more than their resident counterparts. Third, differences in the Western and Korean news coverage are correlated with differences in net selling by non-resident investors relative to resident investors.