Review of Pacific Basin Financial Markets and Policies

The present study applies spectrum analysis to examine the impact of price limits on stock price movements. Based on spectrum analysis, the authors find that the imposition of price limits does alter the pattern of stock price movements in Taiwan. Yet, its efficacy erodes over time.

This paper studies the extent to which real estate prices impact common stock prices in Hong Kong. Real estate-related firms account for over 30 percent of Hong Kong's stock market capitalization. The real estate markets are therefore major determinants of changes in common stock prices. This study, using data during the 1974-1998 period, not only supports empirically that both unexpected changes in residential and office property prices are important determinants of the change in stock prices for Hong Kong, it also finds that the property and stock price series are cointegrated. Impulse response function based on an error-correction VAR model is used to examine the dynamic relationships between real estate and common stock prices.

We analyze the dynamic relationship between employment and wages for a number of OECD countries between the years 1969 to 1998. We propose factors that determine the type of industrial regime in a country. These include government policies, the goals of the labor unions and employers and institutional structures and practices. Looking into the future, with the advent of globalization, there should be a convergence toward employment-driven industrial relations regime as countries strive to keep labor cost competitive to ensure survival in international markets.

This paper attempts to prove empirically that ownership and internalization advantages play a more important role than entry mode in explaining the attained performance of subsidiary companies. While a direct effect of ownership and internalization advantages on performance was found, a relation between entry mode and performance is not evident. A logistic regression model is applied to two samples, i.e., two states in the United States and countries of Latin America.