Basel risk weights, asset correlations, and book-to-market equity: evidence from Asian countries

We examine the effect of firm book-to-market equity values (BE/ME) on asset correlations which play an important role in determining risk weights under the current Basel capital requirements. Using firms in China, Hong Kong, Japan, Korea, Singapore and Taiwan over a sample period from 1988 to 2013, we find that BE/ME has a negative effect on asset correlations. This suggests a role for BE/ME as an additional factor in determining asset correlations, and thus risk weights, also potentially reducing incentives for regulatory capital arbitrage.

Currency overlay for global equity portfolios : cross-hedging and base currency

The effectiveness of a currency overlay hedge for a global equity portfolio can be significantly affected by changes in the base currency. Base currency changes have no significant effect on the hedged portfolio risk; however, they may substantially increase or decrease risk relative to the unhedged position. Australian (AUD) and Canadian (CAD) forwards provide effective cross-hedging, particularly in combination with one or two other currency hedges. Hedge effectiveness is significantly improved by allowing for natural hedges via a dynamic approach that captures structural change and permits under-hedging of currency exposures. © 2014 Wiley Periodicals, Inc.

Sakyadhita International: gender equity in ultramodern Buddhism

The nexus between religion and violence has been widely debated in the public sphere at the turn of the twenty-first century. Much of these discourses have centered on direct violence, and on terrorism in particular. Yet, structural violence also remains endemic within many religious traditions, including Buddhism. Buddhist women, and men, continue to challenge these gender inequalities in various ways, notably Sakyadita, the International Association of Buddhist Women founded in 1987, is committed to improving conditions for Buddhist women worldwide. This article investigates how Sakyadhita is promoting gender equity in global Buddhism. It explores Sakyadhita’s origin, and focuses on the 13th Sakyadhita Conference, to examine the role of religious social movements in advancing gender parity. It also proposes an innovative ultramodern Buddhism framework for understanding contemporary global Buddhism, building on existing Buddhist studies, critical feminist and sociological theories. While focused on a Buddhist women’s social movement, this article provides new knowledge that may assist diverse religious communities in addressing gender disparities both locally and internationally.

An empirical study of the antecedents and consequences of brand engagement

Purpose – The purpose of this paper is to develop and empirically test a model of brand engagement. More specifically, the aim is to evaluate both antecedents and consequences of brand engagement, from a management perspective. Design/methodology/approach – A quantitative survey of 403 firms is undertaken to test the model. Structural equation modelling (SEM) is used to estimate the parameters of the model. Findings – A reliable and valid measure of brand engagement is established. The SEM model works well, in terms of goodness of fit indices. The results demonstrate that there are major brand performance benefits (consequences) of brand engagement. Additionally, and important for the practical implications, the results show that brand orientation is a major antecedent to brand engagement. Research limitations/implications – The study needs to be replicated in other countries, with scope to add other explanatory variables for influencing brand engagement. The results have considerable practical benefits for guiding the introduction of measures to enhance brand engagement. Originality/value – The study builds on earlier (mainly consumer) conceptual approaches to brand engagement, but goes further in that it provides empirical evidence about the nature, antecedents and consequences of brand engagement and further, offers a management rather than consumer perspective. Essentially, the study reveals a new perspective of factors that encourage firms to connect/engage their brands with consumers. Brand engagement is a dual concept, reflecting both a consumer and a firm perspective.

Urbanisation, climate change and health equity: how can health promotion contribute?

We live in a world that is constantly changing and is challenging established approaches to managing human and ecological health. Two key drivers of change are urbanisation and global climate change. This commentary is concerned with the interrelationship of these drivers with human and ecological health, proposing that health promotion practitioners need to actively seek a new role in the process of creating urban environments that support social and ecological well-being. It provides practitioners with an up-to-date synthesis of climate change science and future projections, the literature around the health impacts of climate change and potential health challenges to urban communities. We argue that health promotion cannot respond to the challenges created by climate change and urbanisation, nor can it meet its own mandate without shifting from an anthropogenic-focussed approach toward embracing a multi-scale, collaborative approach outside the health sector. We suggest that the underlying principles of health promotion, which include equity and community engagement at all scales, are critical to the evolution of thriving urban environments. Food security is given as an example to demonstrate the proposed shift away from an anthropogenic and urban focus toward a socio-ecological approach (i.e. resilience thinking) that provides a framework for collaboration between sectors working with unpredictable global systems. In so doing, the commentary provides practitioners with guidance on the complex science of climate change and its impact on health in urban settings, as well as highlighting the skills that they can bring to creating resilient urban settlements in these times of change.

Statistical approaches used to assess the equity of access to food outlets: a systematic review

Abstract: Background Inequalities in eating behaviours are often linked to the types of food retailers accessible in neighbourhood environments. Numerous studies have aimed to identify if access to healthy and unhealthy food retailers is socioeconomically patterned across neighbourhoods, and thus a potential risk factor for dietary inequalities. Existing reviews have examined differences between methodologies, particularly focussing on neighbourhood and food outlet access measure definitions. However, no review has informatively discussed the suitability of the statistical methodologies employed; a key issue determining the validity of study findings. Our aim was to examine the suitability of statistical approaches adopted in these analyses.
Methods: Searches were conducted for articles published from 2000–2014. Eligible studies included objective measures of the neighbourhood food environment and neighbourhood-level socio-economic status, with a statistical analysis of the association between food outlet access and socio-economic status.
Results Fifty four papers were included. Outlet accessibility was typically defined as the distance to the nearest outlet from the neighbourhood centroid, or as the numberof food outlets within a neighbourhood (or buffer). To assess if these measures were linked to neighbourhood disadvantage, common statistical methods included ANOVA, correlation, and Poisson or negative binomial regression. Although all studies involved spatial data, few considered spatial analysis techniques or spatial autocorrelation.
Conclusions: With advances in GIS software, sophisticated measures of neighbourhood outlet accessibility can be considered. However, approaches to statistical analysis often appear less sophisticated. Care should be taken to consider assumptions underlying the analysis and the possibility of spatially correlated residuals which could affect the results.

An analysis of sectoral equity and CDS spreads

In this paper, we find that CDS return shocks are important in explaining the forecast error variance of sectoral equity returns for the USA. The CDS return shocks have different effects on equity returns and return volatility in the pre-crisis and crisis periods. It is the post-Lehman crisis period in which the effects of CDS return shocks are the most dominant. Finally, we construct a spillover index and find that it is time-varying and explains a larger share of total forecast error variance of sectoral equity and CDS returns for some sectors than for others.

The impact of franchisor support, brand commitment, brand citizenship behavior, and franchisee experience on franchisee-perceived brand image

Purpose: This study examines the impact of franchisor support, brand commitment, brand citizenship behavior, and franchisee experience on franchisee-perceived brand image (FPBI). Methodology: The hypotheses were tested using survey data from retail franchisees in Australia, structural equation modeling, and bootstrapping regression methods. Findings: The results show that both brand commitment and brand citizenship behavior mediate the effect of franchisor support on FPBI. However, the effect of franchisor support on FPBI via brand commitment is higher for franchisees with less experience compared to their more experienced counterparts. Practical implications: The study provides insights to franchise managers and B2B practitioners on factors that enhance FPBI. Originality/value: Despite the recognized importance of franchise brands, limited research examines how leveraging the franchise brand can improve franchisee performance. To address this gap, this study examines the effects of franchisor support on FPBI via brand commitment and brand citizenship behavior moderated by franchisee experience.

Equity market price interactions between China and the other markets within the Chinese states equity markets

This study examines the cointegrating and long-term causal relationships of equity market prices in equity markets of Chinese states namely, Shanghai, Shenzhen, Hong Kong, Taiwan and Singapore. I cover the period between October 5, 1992 and March 20, 2006, taking into account both the Asian financial crisis and the opening-up of China’s equity markets in recent years. First, I analysis the cointegration by utilizing Johansen’s (1988) cointegration tests. I find that a long-term equilibrium relationship measured by cointegration has been established among Shanghai, Shenzhen, Hong Kong and Taiwanese markets and, to a lesser degree, between these markets and the Singapore market since 1998. Secondly, this study examines causality by exploring the bootstrapped Toda-Yamamoto non-causality tests. I find that there is strong evidence of a bi-directional causality between Shanghai and Shenzhen markets after 1998. Furthermore, I also find that there are more causal linkages between the Chinese states equity markets: two mainland Chinese markets, Hong Kong, Taiwan, and Singapore became more dependent on each other. The robustness of the above findings is confirmed by the use of a bootstrap test employed to test the validity of my results.

Intraday volatility interaction between the crude oil and equity markets

This paper investigates the price volatility interaction between the crude oil and equity markets in the US using 5-min data over the period 2009-2012. Our main findings can be summarised as follows. First, we find strong evidence to demonstrate that the integration of the bid-ask spread and trading volume factors leads to a better performance in predicting price volatility. Second, trading information, such as bid-ask spread, trading volume, and the price volatility from cross-markets, improves the price volatility predictability for both in-sample and out-of-sample analyses. Third, the trading strategy based on the predictive regression model that includes trading information from both markets provides significant utility gains to mean-variance investors.