Determinants of Foreign Direct Investment Inflows in Vietnam
Tsung-Hao Chen
Department of Business Administration, Shu-Te University, Taiwan, R.O.C.
Tsoyu Calvin Lin
Department of Land Economics, National ChengChi University , Taiwan, R.O.C.
Phan Thanh Tra Mi
Open University, Hochiminh City, Vietnam
Che-Tong Nah
Chinese High School, Batu Pahat, Johor, Malaysia
* Corresponding author: thchen@stu.edu.tw
Keywords: Foreign Direct Investment (FDI) Inflows, Collinearity, Variance Inflation Factor (VIF), Vietnam
ABSTRACTForeign capital investment is indispensable part of the social and economic investment for many developing countries. For developing countries-Vietnam, foreign direct investment has become one of the most important sources of capital for development investment, industrialization and modernization.The purpose of this study is to examine the six significant factors to the foreign direct investment inflows in Vietnam over period 1997- 2009. For example, consumer price index in Vietnam, unemployment rate in Vietnam, registered capital, implementation capital and licensing of investment project.
Our results show that the full model find three important factors, unemployment rate (x2), GDP(x3) and implementation capital (x5), affecting foreign direct investment inflows in Vietnam, but we find independent unemployment rate (x2) and implementation capital (x5) have obvious problems of collinearity in the regression model by the serial procedure of diagnosis. Thus, we use stepwise method and variance inflation factor (VIF) to solve this problem, and finally we find Implementation capital (x5) and CPI (x1) are significant predictors of FDI inflows, and no problem of multicollinearity.
Our results show that the full model find three important factors, unemployment rate (x2), GDP(x3) and implementation capital (x5), affecting foreign direct investment inflows in Vietnam, but we find independent unemployment rate (x2) and implementation capital (x5) have obvious problems of collinearity in the regression model by the serial procedure of diagnosis. Thus, we use stepwise method and variance inflation factor (VIF) to solve this problem, and finally we find Implementation capital (x5) and CPI (x1) are significant predictors of FDI inflows, and no problem of multicollinearity.
Capital Structure of Firms in the Steel Industry of Taiwan
Hsien-Hung H. Yeh
Wen-Ying Cheng
Associate Professor of Department of Business Administration
National Pingtung University of Science and Technology, Taiwan
Sheng-Jung Li
Assistant Professor of Department of Finance and Risk Management
Shu-Te University, Taiwan
TEL: +886-8-7703202
E-Mail: hhyeh@mail.npust.edu.
Keywords: Capital Structure, Partial Adjustment Model, Steel Industry.
ABSTRACTRecent studies have found that firms may deviate from their target capital structure over time but adjust toward the target in the long term. However, little attention has been so far given to address the issue in the steel industry. This paper takes the financial constraint of over-leverage and under-leverage into account to investigate the adjustment of capital structure of firms in the steel industry of Taiwan. Controlling for the possible impact of financial crisis, this study was conducted at years of economic trough and peak during the period of 1981-1996. Empirical results show that, first, firms with the financial constraint of over-leverage finance less debt than do firms with the financial constraint of under-leverage relative to the target capital structure. Second, the adjustment of debt ratios is statistically significant and positively related to economic growth but negatively related to macroeconomic conditions. Finally, firms adjusted very slowly toward their target debt ratios.
An Empirical Analysis of Voluntary and Mandatory Disclosure of Financial Forecasts and Accuracy
Wen-Hsi Lydia Hsu
Assistant Professor of Department of Business Administration, National Pingtung University of Science and Technology, Taiwan, R.O.C.
TEL: +886-8-7703202 Ext. 7698
E-mail: hsuw@mail.npust.edu.tw
Yuan-Pai Hsu*
Project Assistant Professor, Graduate Institute of Public Administration, National Dong Hwa University, Taiwan, R.O.C.
TEL: +886-2-27945506
E-mail: yphsu@mail.ndhu.edu.tw
*Corresponding Author
Keywords: Information Disclosure, Forecast Accuracy, Initial Public Offerings, Prospectus
ABSTRACTThis study examines the relationship between information disclosure and forecast accuracy. Prospective financial information disclosed in prospectuses for initial public offerings is examined according to Financial Reporting Standard No. 29. Disclosure Levels of prospective financial information are further categorised into three groups, namely, total disclosure items recommended by FRS-29 (TSR), total disclosure items not recommended by FRS-29 (TSV) and overall disclosure items recommended and not recommended by FRS-29 (TSRV). The three groups of disclosure levels are then investigated for their significant relationships with forecast accuracy.
The results show that the disclosure level of prospective financial information, measured by total disclosure items recommended by FRS-29, has a significantly negative relationship with forecast accuracy. It indicates that IPOs with more disclosure of prospective financial information tend to have lower forecast errors, while IPOs with less disclosure of prospective financial information tend to have higher forecast errors. When level of disclosure is measured by items not recommended by FRS-29 and is measured by overall disclosure items, both recommended and not recommended by FRS-29, level of disclosure does not have a significant relationship with forecast accuracy.
The results show that the disclosure level of prospective financial information, measured by total disclosure items recommended by FRS-29, has a significantly negative relationship with forecast accuracy. It indicates that IPOs with more disclosure of prospective financial information tend to have lower forecast errors, while IPOs with less disclosure of prospective financial information tend to have higher forecast errors. When level of disclosure is measured by items not recommended by FRS-29 and is measured by overall disclosure items, both recommended and not recommended by FRS-29, level of disclosure does not have a significant relationship with forecast accuracy.
A Study on Dynamic Structure between Economic Indicators and Stock Market Indices-An Example of Hong Kong- An Application of Grey VAR
Alex Kung-Hsiung Chang
Pin-Yao Chen
Professor and graduate student of Department of Business Administration
National Pingtung University of Science and Technology, Taiwan, R.O.C
TEL: +886-8-7740374
E-Mail: bear419@mail.npust.edu.tw
Keywords: Hong Kong’s Economic Indices, The Hang Seng Index, GM(1,1), Grey Vector Autoregression Model (GVAR).
ABSTRACTThis study takes the Hang Seng Index and the four belonging indices from Hong Kong stock market and Hong Kong marcro-economic indices as examples. The monthly closing stock indices and marcro-economic from January 2000 to January 2010 were sampled, which were adopted from the census and statistics department; Government of the Hong Kong Special Administrative Region and the Global Financial Database. We applied GM(1,1) on VAR into a GVAR to realize the dynamic structure between economic indices and Hong Kong stock market indices.
According to the empirical results, I found that interest rates, CPI’s, foreign reserves, M1’s, M2’s and M3’s have a Granger causality relationship with stock market indices respectively. Based on the AIC rule, stock market indices are a leading index to economic indices for eight months. By using Granger causality, decomposition variance and the impact response analysis, we realized the existence of the dynamic structure between economic indices and stock market indices in Hong Kong. And we discovered this dynamic structure is interacted and matched frequently at the state in Hong Kong economic.
According to the empirical results, I found that interest rates, CPI’s, foreign reserves, M1’s, M2’s and M3’s have a Granger causality relationship with stock market indices respectively. Based on the AIC rule, stock market indices are a leading index to economic indices for eight months. By using Granger causality, decomposition variance and the impact response analysis, we realized the existence of the dynamic structure between economic indices and stock market indices in Hong Kong. And we discovered this dynamic structure is interacted and matched frequently at the state in Hong Kong economic.