Short-Term Overreaction: Implications For Stock Market Efficiency In Malaysia

Kajian ini mengkaji kelakuan jangka pendek saham disenaraikan di papan utama Bursa Malaysia sepanjang tempoh Januari 2000 hingga Disember 2007. This study empirically investigates the short-term behaviour of stocks listed on the main board of Bursa Malaysia during the period of January 2000 to December 2007

A Wavelet Approach For Analysing The Relationship Between Exchange Rate And Interest Rate Differential

The relationship between exchange rate and interest rate differential remains one of the most debated areas in macroeconomics. The relationship is often derived from the purchasing price parity and uncovered interest rate parity theories. An evaluation of the empirical research reveals contradictory findings with inconclusive results. First, most of the empirical studies posit a linear relationship between the variables. However, nonlinearities may exist due to market frictions. Second, most of such studies utilise the conventional econometric approach that is limited by its one-dimensional analysis

The digital person - the state of the art and science : a white paper from the 2nd Wolfson - HAT international symposium on the digital person

This paper reports the discussion of the 2nd Wolfson/HAT International Symposium on the Digital Person 31 May 2018. The symposium was chaired by Professor Irene Ng, representing the social sciences, Professor Jon Crowcroft, representing the sciences and Professor John Naughton, representing the humanities

Deregulation control by mergers and acquisitions: a game theoretic analysis of the Chinese airline industry

The major challenges of deregulation are lax market entry, sudden surge in new market entrants, and the intense price wars that ensue, thus causing major losses for any industry. This paper investigates whether deregulation can be structured through a controlled Mergers and Acquisitions (M&As) process by means of government intervention, and how this promotes the performance of the players in the industry. We study this in the context of the Chinese aviation industry as an ideal microcosm of our problem statement. This is because China’s civil aviation industry has witnessed many of the above challenges since its deregulation and economic reforms in 1979, which saw the beginning of a transformation from a fully state-owned machinery to a rent-seeking private sector. The post controlled deregulation process through M&As led to three dominant carriers: Air China Limited (AC), China Southern Airlines (CS), and China Eastern Airlines (CE). Using a 3-player non-cooperative perfect information Cournot oligopoly game model, the strategic efficacy of the government intervention to consolidate the industry based on operating expenses, air passenger revenue, and profit data are investigated respectively. All three airlines are better off after the exercise, with the industry facing a more sustainable growth by the intervention

Response to centre for data ethics and innovation consultation

In this response, we addressed the 8 questions for consultation. We first express our opinion in terms of the solutions the Centre provides to address these issues. We also identify the potential issues that may be encountered in addressing these questions. We then propose the potential approaches to addressing these challenges

Unconventional path dependence: how adopting product take - back and recycling systems contributes to future eco - innovations

Eco-innovation (EI) allows organizations to achieve environmental and economic gains but the conditions for successful EI to occur are unclear. This paper proposes that firms can improve their EI performance by adopting circular economy (CE) systems and technologies, such as product take-back and recycling. We thus explore an unconventional, systems- and technology-driven path dependence dynamic leading to higher EI performance because of prior CE commitments (instead of managerial initiatives directly aimed at fostering EI). An analysis of 724 firms shows that the adoption of such technologies and systems puts firms on a sustainability path: firms benefit from making further changes to improve the functioning of these systems, which in turn create the conditions and capabilities for future EIs. Environmental supply chain policies thus mediate the relationship as the firm adopting take-back and recycling needs to involve outside partners in their administration. Neither environmental management systems nor data protection policies act as mediators. This is the first quantitative study that considers take-back and recycling and EI scores with cross-national-cross-sectorial sample size. The results indicate that firms should see the introduction of CE systems and technologies as an opportunity for EI

Unconventional path dependence: how adopting product take - back and recycling systems contributes to future eco - innovations

Eco-innovation (EI) allows organizations to achieve environmental and economic gains but the conditions for successful EI to occur are unclear. This paper proposes that firms can improve their EI performance by adopting circular economy (CE) systems and technologies, such as product take-back and recycling. We thus explore an unconventional, systems- and technology-driven path dependence dynamic leading to higher EI performance because of prior CE commitments (instead of managerial initiatives directly aimed at fostering EI). An analysis of 724 firms shows that the adoption of such technologies and systems puts firms on a sustainability path: firms benefit from making further changes to improve the functioning of these systems, which in turn create the conditions and capabilities for future EIs. Environmental supply chain policies thus mediate the relationship as the firm adopting take-back and recycling needs to involve outside partners in their administration. Neither environmental management systems nor data protection policies act as mediators. This is the first quantitative study that considers take-back and recycling and EI scores with cross-national-cross-sectorial sample size. The results indicate that firms should see the introduction of CE systems and technologies as an opportunity for EI

To cooperate or to compete: a game theoretic analysis on ports in Malaysia and Singapore

The busiest container ports in the world are mostly situated in the Asian region, thus intensifying inter-port competition. Particularly unique in this region, is the shared history between Malaysia and Singapore, which was once ruled-under the British empire, has since become economic rivals for the Far East – Europe trade route. This provides a suitable context to investigate whether competition or a strategic alliance should be adopted for ports in terms of its benefit to the industry in the region as a whole. Specifically, this paper analyses the ocean freight traffic demand for the Far East-Europe route among three main transshipment ports located in Malaysia and Singapore: Port of Singapore (PSA), Port Klang (PKL), and Port of Tanjung Pelepas (PTP). The paper provides a scenario analysis of the 3-way interaction through a game theoretic model. The results suggest that a strategic alliance between PSA and PTP generates greater profitability to the current hub and spoke network, while PKL should not commit to any cooperative strategy with either PSA or PTP

Exchange rate and interest rate differential : a conundrum re-examined via wavelet analysis

This study explores modeling exchange rate by infusing conventional with unconventional techniques. To exemplify the practicality of wavelet analysis with an empirical application, the causal nexus between real exchange rate and real interest rate differential was examined in Singapore (vis-à-vis the US) via a novel approach known as the maximal overlap discrete wavelet transform during the period of 1990 to 2013. The key empirical finding from the causality test reveals the reinforcing evidence between the variables in the long-term. The time-scale decomposition of the series by wavelet analysis is vital when deciphering complex nonlinear economic models that otherwise remain equivocal when using conventional econometric methods

A fuzzy decision support system for credit scoring

Credit score is a creditworthiness index, which enables the lender (bank and credit card companies) to evaluate its own risk exposure toward a particular potential customer. There are several credit scoring methods available in the literature, but one that is widely used is the FICO method. This method provides a score ranging from 300 to 850 as a fast filter for high-volume complex credit decisions. However, it falls short in the aspect of a decision support system where revised scoring can be achieved to reflect the borrower’s strength and weakness in each scoring dimension, as well as the possible trade-offs made to maintain one’s lending risk. Hence, this study discusses and develops a decision support tool for credit score model based on multi-criteria decision-making principles. In the proposed methodology, criteria weights are generated by fuzzy AHP. Fuzzy linguistic theory is applied in AHP to describe the uncertainties and vagueness arising from human subjectivity in decision making. Finally, drawing from the risk distance function, TOPSIS is used to rank the alternatives based on the least risk exposure. A sensitivity analysis is also demonstrated by the proposed fuzzy AHP-TOPSIS method