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1 – 10 of over 7000We study up to 27 years of weekly data on nine currencies to examine the importance of the Japanese yen in exchange rate determination in North and Southeast Asia. We combine a…
Abstract
We study up to 27 years of weekly data on nine currencies to examine the importance of the Japanese yen in exchange rate determination in North and Southeast Asia. We combine a time-varying methodology alongside a focus on long-run equilibrium. Our findings suggest that the Japanese yen had virtually no influence on Asian exchange rates in the 10-year period prior to the Asian financial crisis in the late 1990s. Since the crisis, the yen and the German mark in particular have exerted a significant influence over the region's exchange rates except for the Chinese yuan, the Hong Kong dollar and the Malaysian ringgit, which continue to be closely related to the US dollar.
David Vander Linden and Jeffrey D. Gramlich
This paper examines the zero‐cost risk reversal as a tool for increasing returns to excess yen while limiting risk. With domestic interest rates near zero, firms holding Japanese…
Abstract
This paper examines the zero‐cost risk reversal as a tool for increasing returns to excess yen while limiting risk. With domestic interest rates near zero, firms holding Japanese yen face little opportunity to deposit cash for meaningful gain unless excess funds are invested in an other currency. The conversion strategy is profitable as long as the value of the yen appreciates less than the interest rate differential between the currencies, taking advantage of an apparent empirical regularity frequently referred to as ‘forward exchange bias.’ A problem arises, however, because dollar‐yen exchange rate fluctuation adds variability to returns stated in yen. This increased risk counters prudent cash management principles such as stability of returns and liquidity. We consider the possi bility that effective use of a zero‐cost currency options collar can substantially limit exchange‐rate risk and improve returns to yen holders. Data from July 1997 through June 2002 show that a one‐year strategy of reinvesting collared monthly Eurodollar returns produced a median annual yen return of 1.76 per cent, more than 8 times the median 0.21 per cent Euroyen return; risk also increases but approximately 98 per cent of returns resulting from this strategy fell between ‐6.05 per cent and +12.58 per cent.
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Discusses the possibility of an international monetary system composed of the US dollar, the German deutschmark and the yen as an alternative to the system based solely on the US…
Abstract
Discusses the possibility of an international monetary system composed of the US dollar, the German deutschmark and the yen as an alternative to the system based solely on the US dollar. Points out that the yen is playing a limited role in the international economy. Discusses the factors which cause the restriction of the yen, with particular reference to other Asian countries and their shift of official reserves from the dollar towards the yen. Suggests that Japan must find new trade relations which are less dependent on the US market if the yen is to increase its share of international trade transactions.
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Xiangyun Xu and Peng Guo
The purpose of this paper is to develop a model to analyze the role of exchange rate appreciation expectation in trade invoicing from the perspective of importers, then…
Abstract
Purpose
The purpose of this paper is to develop a model to analyze the role of exchange rate appreciation expectation in trade invoicing from the perspective of importers, then empirically analyze it using Japanese export data.
Design/methodology/approach
Constructing a theoretical model of importer behavior by analyzing the importer's utility function under an assumption such as “menu cost”, then using econometric method to justify the theoretical model's finding.
Findings
It was found that under the assumption of “menu cost”, risk neutrality and price rigidity, there are three directions of appreciation expectation's effect: increasing, unchanged and decreasing theoretically; but under common condition, only a large appreciation expectation will cause an importer to reduce the use of exporter's currency, and the role is constricted by exporters' bargaining capacity. The empirical results of Yen's use in Japan's exports justifies the model's conclusion and shows that commercial pressure and political events are the most important signals to form large appreciation expectation.
Practical implications
This paper has important policy implications for Renminbi (RMB)'s exchange rate policy under the context of RMB internationalization, in order to promote RMB's use in exports; China should control the large appreciation expectation of RMB and the best way is to rigorously tackle trade deficit with US and European countries, and to eliminate the explicit appreciation signal.
Originality/value
The paper analyzes the role of exchange rate appreciation in trade invoicing theoretically and empirically for the first time; and reasonably explains the development of currency invoicing in Japanese exports and contemporary Chinese exports, as well as having important policy implications for Chinese exchange rate policy.
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Sandra Goh and Ian Seymour Yeoman
This paper aims to look at the future development of new tourism attractions through the visionary project of a leading Vietnamese developer in a remote area of Northern Vietnam…
Abstract
Purpose
This paper aims to look at the future development of new tourism attractions through the visionary project of a leading Vietnamese developer in a remote area of Northern Vietnam in the Quang Ninh province.
Design/methodology/approach
Drawing from the theoretical perspective of place-making and the hero’s journey, this paper draws insights from a case study, an interview with two key informants in the private sector and literature review, to generate the drivers that will shape the future of tourism development in Yen Tu.
Findings
This paper identifies the visionary hero (leader), intangible heritage and creative place-making as the key drivers that will reconstruct and repackage the past for developing tourism destinations.
Originality/value
This paper extends the existing knowledge in the literature about the natural heritage and sacred mountains of Yen Tu, and included creative place-making to gain insights into the future of tourism development in rural areas.
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The Japanese economy, facing a severe labourshortage, may need to seek a fuller utilisation ofwomen. Circumstantial evidence about the labourshortage is described, and Japanese…
Abstract
The Japanese economy, facing a severe labour shortage, may need to seek a fuller utilisation of women. Circumstantial evidence about the labour shortage is described, and Japanese wage and income tax systems are analysed, from which it is found that they are institutionally working against women seeking to enter the labour market. Wage and income tax structures must be reformed if the labour supply of women is to be increased, not to mention their economic and social advancement.
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Jongmoo Jay Choi, Takato Hiraki and Nobuya Takezawa
This paper examines the exchange risk sensitivity of Japanese firms, and the exchange risk pricing in the Japanese stock market for the period of 1975–2001. We find that an…
Abstract
This paper examines the exchange risk sensitivity of Japanese firms, and the exchange risk pricing in the Japanese stock market for the period of 1975–2001. We find that an appreciation of the yen is positively associated with industry portfolio returns. This supports the dominance of wealth effects over cash flow effects. This is in contrast to U.S. studies that report a weak, negative relationship between stocks and the domestic currency. The results are more pronounced in the pre-Crash period, and vary somewhat depending on the exchange risk measures used. Similarly, the exchange risk is priced in the pre-Crash period, but not in the post-Crash period. These results suggest that the exchange rate elasticity of the Japanese economy has declined in the post-bubble period of economic stagnation.
Jonathan A. Batten, Warren P. Hogan and Seppo Pynnönen
This study develops an equilibrium model of credit spreads on Japanese yen Eurobonds based on a model proposed by Collin-Dufresne, Goldstein and Martin (2001). We find the asset…
Abstract
This study develops an equilibrium model of credit spreads on Japanese yen Eurobonds based on a model proposed by Collin-Dufresne, Goldstein and Martin (2001). We find the asset factor, as proxied by the change in the stock market index, has only a limited effect, while the interest rate factor has the over-riding influence. There is also evidence that currency volatility and changes in the term structure occasionally have an effect on spread behaviour. Analysis over several subperiods, based around key economic events, demonstrates that the relative weight of these explanatory variables change over time.
A report by analysts from Daiwa Securities America, assessing the Japanese robot industry, explains reasons for its growth and prospects for its future.
This paper aims to provide a comprehensive and systematic review of the extant empirical body of knowledge regarding the impact of Guanxi on international Business-to-Business…
Abstract
Purpose
This paper aims to provide a comprehensive and systematic review of the extant empirical body of knowledge regarding the impact of Guanxi on international Business-to-Business (B-to-B) relationships.
Design/methodology/approach
After the collection and refinement of studies that appeared in marketing, business and management literature during 1995-2018 period, a systematic review was conducted to discover the current situation and future research directions on the subject.
Findings
Theoretically, vast majority of the reviewed studies lacked a theoretical foundation, with the remainder anchored primarily on the resource-based view, social network theory and social exchange theory. Methodologically, Ganqing, Xinren and Mianzi are the most frequently investigated dimensions, whereas Renqing is the least investigated dimension. Data are mostly obtained from both Chinese and Western counterparts through survey and analyzed through univariate and multivariate data analysis techniques. Empirically, extant research focused on many diverse outcomes including trust, financial performance, cooperation, satisfaction, time orientation, opportunism and liability of foreignness, while under-examining the drives of Guanxi.
Research limitations/implications
This study provides a synthesis of extant line of research on the subject that are published in peer-reviewed international journals, which publish research in English. A meta-analysis may be conducted for providing a further detailed framework.
Originality/value
This study contributes to international marketing literature by providing an in-depth and synthesized inventory of knowledge to scholars; deriving a comprehensive analysis of theoretical foundations, methodological approaches and findings addressed by scholars in the field; noticing theoretical, methodological and empirical gaps to be examined; and providing future research directions.
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