Int. J. Financial Stud.2013, 1(4), 168-182; doi:10.3390/ijfs1040168 - published online 4 December 2013 Show/Hide Abstract
Abstract: We report striking evidence of semi-strong inefficiency in the UK fixed-odds football betting market using a reputable newspaper tipster which offers probabilities of match outcomes rather than simple result indicators. Betting on the Fink Tank probabilities of home wins across 10 bookmakers, when there are positive expected returns, would have generated positive returns in each of the seasons from 2006–07 to 2011–12 for a variety of different betting strategies. These returns could have been enhanced by employing the best odds from a greater number of bookmakers. However, the fact that pure arbitrage bets have existed for years and appear to last for several hours or days suggest they are in practice not exploitable to a magnitude that poses any threat to bookmakers.
Int. J. Financial Stud.2013, 1(4), 154-167; doi:10.3390/ijfs1040154 - published online 18 November 2013 Show/Hide Abstract
Abstract: Terrorist incidents exert a negative, albeit usually short-lived, impact on markets and equity returns. Given the integration of global financial markets, mega-terrorist events also have a high contagion potential with their shock waves being transmitted across countries and markets. This paper investigates the cross-market transmission of the London Stock Exchange’s reaction to the terrorist attacks of 2005. It focuses on how this reaction was transmitted to two other major European stock exchanges: Frankfurt and Paris. To this effect, high frequency intraday data are used and multivariate Genralised Autorgressive Conditional Heteroskedasticity (GARCH) models are employed. This type of data help reveal a more accurate picture of markets’ reaction to exogenous shocks, such as a terrorist attack, and thus allow more reliable inferences. Findings reported herein indicate that the volatility of stock market returns is increased in all cases examined.
Int. J. Financial Stud.2013, 1(4), 137-153; doi:10.3390/ijfs1040137 - published online 13 November 2013 Show/Hide Abstract
Abstract: Regulators in emerging markets are increasingly curtailing the practice of foreigncurrency lending. In such a move Turkish regulatory authorities banned foreign currencylending to households in 2009. This paper examines the evolution of financial dollarization inTurkey in the 2002–2009 period by looking the currency composition of loans and deposits inthe banking system and the macroeconomic developments. We find that the Turkish bankingsystem was unhedged against currency fluctuations and the regulators acted preemptively inbanning the practice.
Int. J. Financial Stud.2013, 1(4), 119-136; doi:10.3390/ijfs1040119 - published online 8 November 2013 Show/Hide Abstract
Abstract: The beneficial effects of diversified income portfolios are well documented in previous research on non-profit organizations. This study examines how different types of organizational missions affect the level of revenue diversification of organizations in one industry, a question that was neglected in previous research. Based on contingency theory, it is assumed that different missions are associated with different funding sources. Since missions can be complementary or conflicting, specific attention needs to be paid to the combination of missions. The sport sector is chosen as an empirical setting because non-profit sports clubs can have various missions while their overall purpose is promoting sport. Panel data from a nationwide survey of non-profit sports clubs in Germany are used for the analysis. The regression results show that revenue diversification is significantly determined by organizational mission. Historically, typical mission statements like promoting elite sport, tradition, conviviality, non-sport programs, and youth sport have a positive effect on revenue diversification, while clubs with a commercial orientation and a focus on leisure and health sport have more concentrated revenues. The findings have implications for club management in the sense that some missions are associated with higher financial risk and that the combination of missions should be chosen carefully.
Int. J. Financial Stud.2013, 1(3), 102-118; doi:10.3390/ijfs1030102 - published online 9 September 2013 Show/Hide Abstract
Abstract: This inquiry contributes to the literature on the development of “nonprofit marketing thought” by describing how the field’s early period established a legacy effect on nonprofit marketing scholarship to the present day. This qualitative work uses a wide variety of sources from a protracted historical period in order to more fully inform a perspective on the relevant issues that have influenced the development of nonprofit marketing scholarship. The investigation suggests that, although the debate on whether or not marketing is a science was nominally resolved years ago, the origins of marketing scholarships as an applied business discipline remain influential. The effects on this influence is a body of research that is fragmented, conflicted, sometimes invalid, and has produced few general theories indicative of a social science. Recommendations are offered for improving the quality of nonprofit marketing scholarship.
Int. J. Financial Stud.2013, 1(3), 81-101; doi:10.3390/ijfs1030081 - published online 13 August 2013 Show/Hide Abstract
Abstract: The spread of the global financial crisis of 2008/2009 was rapid, and impacted the functioning and the performance of financial markets. Due to the importance of this phenomenon, this study aims to explain the impact of the crisis on stock market behavior and interdependence through the study of the intraday volatility transmission. This paper investigates the patterns of linkage dynamics among three European stock markets—France, Germany, and the UK—during the global financial crisis, by analyzing the intraday dynamics of linkages among these markets during both calm and turmoil phases. We apply a VAR-EGARCH (Vector Autoregressive Exponential General Autoregressive Conditional Heteroscedasticity) framework to high frequency five-minute intraday returns on selected representative stock indices. We find evidence that interrelationship among European markets increased substantially during the period of crisis, pointing to an amplification of spillovers. In addition, during this period, French and UK markets herded around German market, possibly explained by behavior factors influencing the stock markets on or near dates of extreme events. Germany was identified as the hub of financial and economic activity in Europe during the period of study. These findings have important implications for both policymakers and investors by contributing to better understanding the transmission of financial shocks in Europe.