Earticle

I propose an intuitive method of measuring the characteristics of the change in volume and assessing the effect of order flow on stock price flow. The order flow has a significant impact on stock price changes. According to the results of Granger’s causality test, the change is more suitable for explanatory variables than order flow. Regression with the actual cumulative order flow based on the excess returns is significant in daily trading. The investors change the order flow on buying stocks when there is the excess returns of sector. And regressions of KOSPI 200 Index on the real cumulative order flow is also significant in daily trade only. However, there seems to be no causal relationship between cumulative order flow, the excess returns of sector and KOSPI 200 index due to time constraints on the sample.

Free trade and environmental protection have hardly maintained a symmetric balance for more than half a century in spite of the necessity and importance of the matter. The multilateral trade system, represented by the GATT and the WTO, was in the end unsuccessful in dealing with the field, leaning towards the economic objectives as found in multiple trade dispute cases. With the drift of the multilateral system, better known as the DDA, FTAs have overthrown the role and significantly contributed to the legal development of trade-related environmental provisions, mainly led by the United States and the European Union. They not only provided a model text for the environmental provisions in FTAs, yet also transplanted such DNAs in their FTA partners. Korea is one of the pertinent examples and has experienced a quantum-leaf-like evolution in such provisions by negotiating the agreements with the two nations simultaneously. The lessons Korea learned from the United States and the European Union are expected to assign a more meaningful role to the nation in its future FTA negotiations, especially when Korea encounters with the trade partners that are yet to perceive the significance of mutual prosperities of trade and environment.

The study examines the impact of female CEOs and female managers on corporate social responsibility, using 4763 observations from 732 panel firms in China during 2009 to 2017. The study finds that there is positive relationship between female CEOs, the ratio of female managers in top management teams and the scores of corporate social responsibility, suggesting that female CEOs and female managers promote socially responsible business practices due to their social orientation and communal traits. The study also find that female CEOs have positive effects on socially responsible business practices in state_owned firms while female CEOs have negative ones on them in private_owned firms, suggesting that the differences in strategic orientations between two types of firms influence the perception and behaviors of female CEOs and female managers with regard to socially responsible business practices.

This study reexamines a model of cooperation for transboundary waters derived from considerations of transaction costs and international relations. The model of Lee and Lee (2013) is revised and operationalized for quantitative testing. Results are analyzed based on an independently developed index reflecting the principled contents of international fresh water agreements. Fifty-two agreements from four basins were coded for core principles of the 1997 United Nations Watercourses Convention, along with related elements indicating deeper levels of institutionalization, to generate index values. We find support for the model’s predictions regarding the Rhine-Meuse and Mekong basins examined in the initial study; however, extending the model to two further basins is less straightforward. Nonetheless, the model may provide insight into factors affecting the management of shared waters, and considerations of certain qualifying factors regarding its application to the Amazon and Incomati basins lend support to its predictive validity. The index developed here may offer a detailed means of assessing the level of cooperation present within any given multilateral river basin.

The purpose of this study is to examine the effect of symmetrical and asymmetric information transfer on the Korean semiconductor index of the Philadelphia Semiconductor Index in the US, and also to examine the relationship between the changes in the domestic semiconductor index and the trading patterns of foreign and institutional investors. The main results are as follows. First, we find that the Philadelphia Semiconductor Index in the US affects the yield and volatility of the domestic semiconductor market. In other words, the rise(fall) of the Philadelphia Semiconductor Index affects the rise(fall) of the domestic KRX and KOSDAQ semiconductor indexes, also the increase(reduction) of the volatility of the Philadelphia Semiconductor Index affects the volatility increase(reduction) of the Korea Semiconductor Indexes. It is interesting to note that if the Philadelphia Semiconductor Index rises(falls), the domestic semiconductor market undergoes an adjustment after overreacting with a rise(fall) at its initial price. Second, the domestic semiconductor indexes have asymmetrical information effects on the Philadelphia semiconductor index. Third, the trading behavior of foreigners and institutional investors was found to have a positive relationship with both the night and daytime returns of the KRX Semiconductor Index. On the other hand, in the KOSDAQ semiconductor index market, both foreign and institutional investors showed a statistically significant positive value only for daytime returns.

Main objectives of this paper are twofold: (1) it suggests how to measure foreign exchange volatility exposure (FXVE), which has not been taken into account for corporate financial stability indices, (2) it also examines the academic and empirical implications of explores FXVE, which are different from the conventional foreign exchange exposure (FXE). The authors establish an challenging measurement of FXVE by employing Bodnar and Marston(2002)’s approach based on Gómez and Milgram(2010)’s. The main findings are: FXE is not significantly associated with risk-adjusted performance (RAP) while FXVE is positively associated with RAP; the financial hedging activities are not significantly associated with RAP; Most firm-specific advantages are positively or negatively associated with RAP; finance-specific advantages are also positively or negatively associated with RAP; In contrast, stock price return is not significantly associated with RAP.