While numerous studies on spin-off have been done in the US and Europe, little efforts have been directed to research this area of cor-porate finance in Australia. This study investigates how market re-acts to corporate spin-offs in this country. We employ traditional event study methodology and find that market reacts strongly and positively to the announcements of spin-offs. Specifically, the cu-mulative average abnormal return over the 3-day event window is 3.58%. The cumulative average abnormal return for spin-offs by companies that increase their industrial focus is 4.12% and 3.33% for non-focused increasing spin-offs. Nevertheless, the difference between these two subgroups is statistically insignificant. Multivari-ate regressions provide evidence that high pre-leverage firms benefit more from spin-offs.
Allen, J. W., Lummer, S. L., McConnell, J. J., & Reed, D.K. (1995). Can takeover losses explain spin-off gains? Journal of Financialand Quantitative Analysis, 30(4),
Amihud, Y. (1986). Asset pricing and the bid-ask spread. Journalof Financial Economics, 17(2),
Berger, P. G., & Ofek, E. (1995). Diversification'seffect on firm value. Journal of Financial Economics, 37(1),
Bergh, D. D., Johnson, R. A., & Dewitt, R.-L. (2008).Restructuring through spin-off or sell-off: Transforming informationasymmetries into financial gain. Strategic Management Journal, 29(2),133–148.
Brown, S. J., & Warner, J. B. (1985). Using daily stockreturns. Journal of Financial Economics, 14(1),
Campa, J. M., & Kedia, S. (2002). Explaining thediversification discount. The Journal of Finance, 57(4),
Chemmanur, T. J., & Yan, A. (2004). A theory of corporatespin-offs. Journal of Financial Economics, 72(2),
Cooney, M. R., Finn, F., & Karl, A. (2004). Australiandivestiture activity: An examination of gains to sell-off announcements. AustralianJournal of Management, 29(1 Suppl.),
Cusatis, P. J., Miles, J. A., & Woolridge, J. R. (1993).Restructuring through spinoffs: The stock market evidence. Journal ofFinancial Economics, 33(3),
Daley, L., Mehrotra, V., & Sivakumar, R. (1997).Corporate focus and value creation evidence from spinoffs. Journal ofFinancial Economics, 45(2),
Desai, H., & Jain, P. C. (1999). Firm performance andfocus: Long-run stock market performance following spinoffs. Journal ofFinancial Economics, 54(1),
Edelman, R. B., & Baker, H. K. (1990),
Liquidity and stockexchange listing. Financial Review, 25, 231–249. doi:10.1111/j.1540-6288.1990.tb00794.x
Galai, D., & Masulis, R. W. (1976). The option pricingmodel and the risk factor of stock. Journal of Financial Economics, 3(1),53–81.
Gujarati, D. N. (2003). Basiceconometrics. NY: McGraw Hill Book Co.
Habib, M. A., Johnsen, D. B., & Naik, N. Y. (1997).Spinoffs and information. Journal of Financial Intermediation, 6(2),
Hite, G. L., & Owers, J. E. (1983). Security pricereactions around corporate spin-off announcements. Journal of FinancialEconomics, 12(4),
Krishnaswami, S., & Subramaniam, V. (1999). Informationasymmetry, valuation, and the corporate spin–off decision. Journal ofFinancial Economics, 53(1),
Leland, H. E., & Klaus, B. T. (1996). Optimal capitalstructure, endogenous bankruptcy, and the term structure of credit spreads. TheJournal of Finance, 51(3),
MacKinlay, A. C. (1997). Event studies in economics andfinance. Journal of Economic Literature, 35(1),
Maxwell, W. F., & Rao, R. P. (2003). Do spin‐offs expropriate wealth from bondholders?The Journal of Finance, 58(5),
Miles, J. A., & Rosenfeld, J. D. (1983). The effect of voluntaryspin‐off announcements onshareholder wealth. The Journal of Finance, 38(5),
Patell, J. M. (1976). Corporate forecasts of earnings per shareand stock price behavior: Empirical test. Journal of Accounting Research, 14(2),246–276.
Ross, S. A. (2011). Fundamentals of corporate finance.North Ryde, NSW: McGraw–Hill.
Schipper, K., & Smith, A. (1983). Effects ofrecontracting on shareholder wealth: The case of voluntary spin–offs. Journalof Financial Economics, 12(4),
Schmidt, R. J. (1987). Corporate divestiture: Pruning forhigher profits. Business Horizons, 30(3),
Thomas, B., Jay, F. C., & Kuldeep, S. (1999). Spinoffs, spreads, and information asymmetry.Unpublished Working Paper.
Veld, C., & Veld–Merkoulova, Y. V. (2004). Do spin–offsreally create value? The European case. Journal of Banking and Finance, 28(5),1111–1135.
Veld, C., & Veld–Merkoulova, Y. V. (2008). An empiricalanalysis of the stockholder–bondholder conflict in corporate spin–offs. FinancialManagement, 37(1),
Yoon, C.-S., & Ariff, M. (2007). Corporate spin–offs,their price reactions and determinants in Malaysia. The InternationalJournal of Banking and Finance, 5(1),
Zakaria, N., & Arnold, G. C. (2012). Do Malaysian spin–offscreate value? Asian Journal of Finance & Accounting, 4(1),
Stock market is a key channel to the mobilization of long-term capi-tal in an economy, and determinants of stock market development in developing countries are still undecided. This paper aims to inves-tigate these determinants in Vietnam and other developing countries, whose differences are also pointed out by applying two-way Gener-alized Method of Moments to the panel data of 36 developing countries over the period of 2003–2014. Our findings are intriguing. First, in developing countries economic growth, domestic credit, and stock market liquidity are positive determinants of the development of stock market. While the effect of money supply is negative, insti-tutional factors such as government effectiveness and rule of law have significantly positive impacts, in contrast to corruption control and political stability (whose impacts are significant and negative). Second, regarding the development of the stock market in Vietnam, the effects of such macroeconomic factors as economic growth, domestic investment, foreign direct investment, domestic credit, broad money supply, stock market liquidity, and inflation are signif-icant and negative, whereas those of all institution variables, includ-ing control of corruption, government effectiveness, political stabil-ity, regulatory quality, rule of law, and voice and accountability, are significant and positive. This implies that well-established institutions are crucial for promoting a demand for stocks and stock market performance in Vietnam.
Abdul Malik, I., & Amjad, S.(2013). Foreign direct investment and stock market development in Pakistan. Journalof International Trade Law and Policy, 12(3),
Acquah-Sam, E. (2016). Determinantsof capital market development in Ghana. European Scientific Journal, 12(1),251–270.
Anderson, T. W., & Hsiao, C.(1982). Formulation and estimation of dynamic models using panel data. Journalof Econometrics, 18(1),
Arellano, M., & Bond, S. (1991).Some tests of specification for panel data: Monte Carlo evidence and anapplication to employment equations. The Review of Economic Studies, 58(2),277–297.
Asongu, S. A. (2012). Governmentquality determinants of stock market performance in African countries. Journalof African Business, 13(3),
Ayaydın, H., & Baltacı, N.(2013). Corruption, banking sector, and stock market development: A panel dataanalysis. European Journal of Research on Education, Special Issue:Human Resource Management, 94–99.
Ben Naceur, S., Ghazouani, S., &Omran, M. (2007). The determinants of stock market development in theMiddle-Eastern and North African region. Managerial Finance, 33(7),477–489.
Batten, J., & Vo, X. V. (2014).Liquidity and return relationships in an emerging market. Emerging Markets Finance and Trade, 50(1),
Biswas, R., & Ofori, E. (2015).Democracy and stock market development: The African experience. Overlaps ofPrivate Sector with Public Sector around the Globe (Research in Finance, Volume31) Emerald Group Publishing Limited, 31, 65–86.
Blundell, R., & Bond, S. (1998).Initial conditions and moment restrictions in dynamic panel data models. Journalof Econometrics, 87(1),
Blundell, R., Bond, S., &Windmeijer, F. (2001). Estimation in dynamic panel data models: Improving onthe performance of the standard GMM estimator. Nonstationary Panels, PanelCointegration, and Dynamic Panels, 15, 53–91.
Cherif, M., & Gazdar, K. (2010).Macroeconomic and institutional determinants of stock market development inMENA region: New results from a panel data analysis. International Journalof Banking and Finance, 7(1),
Claessens, S., Klingebiel, D., &Schmukler, S. (2001). FDI and stock market development: Complements orsubstitutes? World Bank Working Paper.
Dzhumashev, R. (2014). Corruptionand growth: The role of governance, public spending, and economic development. EconomicModelling, 37, 202–215.
El-Nader, H. M., & Alraimony, A.D. (2013). The macroeconomic determinants of stock market development inJordan. International Journal of Economics and Finance, 5(6),91–103.
Evrim-Mandaci, P., Aktan, B., Gumus,G. K., & Tvaronavičienė, M. (2013). Determinants of stock market development:Evidence from advanced and emerging markets in a long span. Business: Theoryand Practice/Verslas: Teorija ir Praktika, 14(1),
Jeffus, W. (2004). FDI and stockmarket development in selected Latin American countries. InternationalFinance Review, 5, 35–44.
Gani, A., & Ngassam, C. (2008).Effect of institutional factors on stock market development in Asia. AmericanJournal of Finance and Accounting, 1(2),
Garcia, V. F., & Liu, L. (1999).Macroeconomic determinants of stock market development. Journal of AppliedEconomics, 2(1),
Goldsmith, A. A. (1987). Doespolitical stability hinder economic development? Mancur Olson's theory and theThird World. Comparative Politics, 19(4),
Ng, A., Ibrahim, M. H., &Mirakhor, A. (2016). Does trust contribute to stock market development? EconomicModelling, 52, 239–250.
Nickell, S. (1981). Biases indynamic models with fixed effects. Econometrica: Journal of the EconometricSociety, 1417–1426.
Phan, D. N., & Vo, T. H. H.(2013). Determinants of stock market development in Southeast Asian countries. Journalof Economics and Development, 14(1),
Quartey, P., & Gaddah, M.(2007). Long run determinants of stock market development in Ghana. Journalof African Business, 8(2),
Raza, A., Iqbal, N., Ahmed, Z.,Ahmed, M., & Ahmed, T. (2012). The role of FDI on stock market development:The case of Pakistan. Journal of Economics and Behavioral Studies, 4(1),26–33.
Raza, S. A., & Jawaid, S. T.(2014). Foreign capital inflows, economic growth and stock marketcapitalization in Asian countries: An ARDL bound testing approach. Quality& Quantity, 48(1),
Raza, S. A., Jawaid, S. T., Afshan,S., & Karim, M. Z. A. (2015). Is stock market sensitive to foreign capitalinflows and economic growth? Evidence from Pakistan. Journal of ChineseEconomic and Foreign Trade Studies, 8(3),
Roodman, D. (2009). How to doxtabond2: An introduction to difference and system GMM in Stata. StataJournal, 9(1),
Shahbaz, M., Rehman, I. U., &Afza, T. (2015). Macroeconomic determinants of stock market capitalization inan emerging market: Fresh evidence from cointegration with unknown structuralbreaks. Macroeconomics and Finance in Emerging Market Economies, 9(1),
Soto, M. (2009). System GMMestimation with a small sample. Barcelona Economics Working Paper SeriesNo. 395.
Swaleheen, M. (2011). Economicgrowth with endogenous corruption: An empirical study. Public Choice, 146(1–2),23–41.
Vo, X. V. (2015). Foreign ownershipand stock return volatility: Evidence from Vietnam. Journal of Multinational Financial Management, 30, 101–109.
Yartey, C. A. (2008). The determinants of stock market developmentin emerging economies: Is South Africa different? IMF Working Paper. 2008International Monetary Fund.
Yartey, C. A. (2010).The institutional and macroeconomic determinants of stock market development inemerging economies. Applied Financial Economics, 20(21),1615–1625.
This study examines the role of different knowledge economy com-ponents in economic growth as well as the simultaneous effects of information and communication technology (ICT) infrastructure, education, and innovation on economic growth of selected Asian countries over the 1990–2014 period, using Driscoll-Kraay estima-tion method and seemingly unrelated regression (SUR) and three stage least squares (3SLS). The results confirm that there exists a positive association between economic growth and four components of the knowledge economy framework. Furthermore, there is also evidence of the multidimensional effects of ICT infrastructure, edu-cation, and innovation on economic growth. As a result, policy makers should pay more attention to improving innovation, educa-tion, information and communication infrastructure, and institu-tional regime systematically to achieve sustainable economic growth.
Acemoglu, D., Johnson, S., &Robinson, J. A. (2001). The colonial origins of comparative development: Anempirical investigation. American Economic Review, 91(5),
Agénor, P. R. (2012). Publiccapital, growth and welfare: Analytical foundations for public policy.Princeton University Press.
Agénor, P. R., & Neanidis, K. C. (2015). Innovation,public capital, and growth. Journal of Macroeconomics, 44,252–275.
Baltagi, B. (2005). Econometricanalysis of panel data(3rdEdition). John Wiley & Sons.
Barro, R. J. (1991). Economic growthin a cross section of countries. TheQuarterly Journal of Economics, 106(2),
Barro, R. J. (1996). Determinants of economic growth: Across–country empirical study. NBER Working Paper 5698.
Barro, R. J. (2013). Education and economic growth. Annalsof Economics and Finance, 14(2),
Bilbao‐Osorio, B., & Rodríguez‐Pose,A. (2004). From R&D to innovation and economic growth in the EU. Growthand Change, 35(4),
Castellacci, F., &Natera, J. (2016). Innovation, absorptive capacity and growth heterogeneity:Development paths in Latin America 1970–2010. Structural Change And EconomicDynamics, 37, 27–42.
Cohen, D., & Soto, M. (2007). Growth and human capital:Good data, good results. Journal of Economic Growth, 12(1),51–76.
Corden, W. M., & Neary, J. P.(1982). Booming sector and de-industrialization in a small open economy. Economic Journal, 825–848.
Driscoll, J. C., & Kraay, A. C.(1998). Consistent covariance matrix estimation with spatially dependent paneldata. Review of Economics and Statistics, 80(4),
Erumban, A. A., & Das, D. K. (2015). Information andcommunication technology and economic growth in India. TelecommunicationsPolicy.
Flachaire, E., García–Peñalosa, C.,& Konte, M. (2014). Political versus economic institutions in the growthprocess. Journal of Comparative Economics, 42(1),
Greene, W. H. (2011). Econometric analysis (7thEdition). Pearson.
Gyimah–Brempong, K., Paddison, O.,& Mitiku, W. (2006). Higher education and economic growth in Africa. TheJournal of Development Studies, 42(3),
Haavelmo, T. (1943). The statisticalimplications of a system of simultaneous equations. Econometrica, 11(1),
Hanushek, E. A. (2013). Economic growth in developingcountries: The role of human capital. Economics of Education Review, 37,204–212.
Hanushek, E. A., & Kimko, D. D. (2000). Schooling,labor–force quality, and the growth of nations. American Economic Review,1184–1208.
Hassan, G., & Cooray, A. (2015). Effects of male andfemale education on economic growth: Some evidence from Asia. Journal ofAsian Economics, 36, 97–109.
Hausman, J. A. (1983). Specificationand estimation of simultaneous equation models. Handbook of Econometrics,1, 391–448.
Hoechle, D. (2007). Robust standarderrors for panel regressions with cross-sectional dependence. Stata Journal,7(3),
IMF. (2016). IMF data mapper. International Monetary Fund.
Inekwe, J. N. (2015). Thecontribution of R&D expenditure to economic growth in developing economies.Social Indicators Research, 124(3),
Inklaar, R., Timmer, M. P., & Van Ark, B. (2008). Marketservices productivity across Europe and the US. Economic Policy, 23(53),140–194.
Jorgenson, D. W., & Vu, K. (2005). Informationtechnology and the world economy. The Scandinavian Journal of Economics,107(4),
Jorgenson, D. W., Ho, M. S., & Samuels, J. D. (2015).The impact of information technology on postwar US economic growth. TelecommunicationsPolicy.
Joya, O. (2015). Growth andvolatility in resource-rich countries: Does diversification help? StructuralChange and Economic Dynamics, 35, 38–55.
Karagiannis, S. (2007). The knowledge-based economy,convergence and economic growth: Evidence from the European UNI0N. TheJournal of Economic Asymmetries, 4(2),
Kaufmann, D., Kraay, A., &Mastruzzi, M. (2010). The worldwidegovernance indicators methodology and analytical issues. Policy ResearchWorking Paper 5430. World Bank.
Kaufman, D., Kraay, A., &Zaido–Lobaton, P. (1999). Governancematters. World Bank Working Paper No. 2196. Washington, DC.
Knack, S., & Keefer, P. (1995).Institutions and economic performance: Cross-country tests using alternativemeasures. Economics and Politics, 7, 207–227.
Labra, R., Rock, J. A., &Álvarez, I. (2016). Identifying the key factors of growth in naturalresource-driven countries: A look from the knowledge-based economy. Ensayossobre Política Económica.
Lucas, R. E. (1988). On themechanics of economic development. Journalof Monetary Economics, 22, 3–42.
Mankiw, N. G., Romer, D.,& Weil, D. (1992). A contribution to the empirics of economic growth. Quarterly Journal of Economics, 107(2),407–437.
Mauro, P. (1995). Corruption andgrowth. Quarterly Journal of Economics,110, 681–712.
Newey, W. K., & West, K. D.(1986). A simple, positive semi–definite,heteroskedasticity and autocorrelation consistent covariance matrix. NBERTechnical Working Papers No.55.
OECD. (1996). The knowledge economy. Paris: OECD.
Paxton, P., Hipp, J. R.,Marquart–Pyatt, S., & Marquart–Pyatt, S. T. (2011). Nonrecursive models:Endogeneity, reciprocal relationships, and feedback loops (Vol. 168). SagePublications.
Powell, W. W., &Snellman, K. (2004). The knowledge economy. AnnualReview of Sociology, 30(1),
Pradhan, R. P., Arvin, M. B., & Norman, N. R. (2015).The dynamics of information and communications technologies infrastructure,economic growth, and financial development: Evidence from Asian countries. Technologyin Society, 42, 135–149.
Romer, P. M. (1990). Endogenous technological change. Journalof Political Economy, 98(5),
Sachs, J. D., & Warner, A. M.(1995). Natural resource abundance andeconomic growth. NBER Working Paper No.5398.
Sachs, J. D., & Warner,A. M. (1999). The big push, natural resource booms and growth. Journal of Development Economics, 59,43–76.
Sachs, J. D., & Warner, A. M.(2001). Natural resources and economic development: The curse of naturalresources. European Economic Review, 45,827–838.
Schiffbauer, M. (2007). Calling for innovations: Infrastructure andsources of growth. Working Paper No. 18. Economic and Social ResearchInstitute.
Schneider, P. H. (2005).International trade, economic growth and intellectual property rights: A paneldata study of developed and developing countries. Journal of DevelopmentEconomics, 78(2),
Solow, R. M. (1956). A contributionto the theory of economic growth. The Quarterly Journal of Economics,65–94.
Solow, R. M. (1957). Technical change and the aggregate productionfunction. The Review of Economics and Statistics, 312–320.
Stern, S., Porter, M. E., &Furman, J. L. (2000). The determinants of national innovative capacity.NBER Working Paper No. 7876.
Suh, J., & Chen, D. H. C.(2007). Korea as a knowledge economy:Evolutionary process and lessons learned. World Bank Institute DevelopmentStudies. World Bank.
Sundać, D., & Fatur Krmpotić, I. (2011). Knowledgeeconomy factors and the development of knowledge-based economy. CroatianEconomic Survey, (13),
Suri, T., Boozer, M. A., Ranis, G., & Stewart, F.(2011). Paths to success: The relationship between human development andeconomic growth. World Development, 39(4),
Vu, K. M. (2011). ICT as a source of economic growth in theinformation age: Empirical evidence from the 1996–2005 period. TelecommunicationsPolicy, 35(4),
WEF. (2015). World Economic Forum’s global competitiveness report, 2014–2015.World Economic Forum.
Wooldridge, J. M. (2010). Econometricanalysis of cross section and panel data. MIT University Press.
World Bank. (1999). World development report 1998/99: Knowledgefor development. Oxford.
World Bank. (2007). Building knowledge economies: Advancedstrategies for development. World Bank Institute Development Studies, WorldBank.
Zellner, A., & Theil, H. (1962).Three–stage least squares: Simultaneous estimation of simultaneous equations. Econometrica,54–78.
The purposes of this study are: (i) to develop store personality measurement scale tailor-made for household and electronics store chains in Vietnam, an Asian transitional economy; and (ii) to exam-ine the degree of influence of each store personality dimensions on store loyalty. The scale development is conducted in two stages: item generation and item purification. The new scale is applied to a data survey of 268 shoppers in Ho Chi Minh City (a metropolitan city in southern Vietnam) by systematic sampling. Multivariate data analysis techniques, such as exploratory factor analysis and struc-tural equation modeling, are used to analyze the data. The results reveal that store personality measurement scale is structured into four dimensions: reliability, sophistication, economy, and enthusi-asm with 22 items as observed variables and store personality im-pacts on loyalty behavior mediated by attitudinal loyalty. Particu-larly, these four dimensions are found to be correlated significantly with attitudinal loyalty but not with loyalty behavior except for economy—reliability and sophistication have positive impacts, whereas economy and enthusiasm negatively relate to attitudinal loyalty. The findings help retail managers with effective positioning strategy. This paper is the first to design the scale for store personali-ty and to explore the impact of each dimensions of store personality on attitudinal and behavioral loyalty in Vietnam and in the special-ty-store-chain context.
Aaker, J. L. (1997). Dimensions of brand personality. Journal of Marketing Research, 34(3),
Ailawadi, K. L., & Keller, K. L. (2004). Understandingretail branding: Conceptual insights and research priorities. Journal of Retailing, 80(4),
Ambroise, L., & Valette–Florence, P. (2010). The brandpersonality metaphor and inter-product stability of a specific parameter. Rechercheet Applications en Marketing (English Edition), 25(2),
Brengman, M., & Willems, K. (2009). Determinants of fashionstore personality: A consumer perspective. Journalof Product and Brand Management, 18(5),346–355.
Chun, R., & Davies, G. (2006). The influence of corporatecharacter on customers and employees: Exploring similarities and differences. Journal of the Academy of Marketing Science,34(2),
Das, G. (2013). Impacts of retail brand personality and self–congruityon store loyalty: The moderating role of gender. Journal of Retailing and Consumer Services, 21(2),
Das, G. (2014). Store personality and consumer store choicebehavior: An empirical examination. MarketingIntelligence & Planning, 32(3),375–394.
Das, G., Datta, B., & Guin, K. K. (2012a). From brands ingeneral to retail brands: A review and future agenda for brand personalitymeasurement. The Marketing Review, 12(1),
Das, G., Datta, B., & Guin, K. K. (2012b). Impact ofretailer personality on consumer–based retailer equity: An empirical study ofretail brand. Asia Pacific Journal ofMarketing and Logistics, 23(4),619–639.
d’Atous, A., & Levesque, M. (2003). A scale for measuringstore personality. Psychology ofMarketing, 20(5),
Lombart, C., & Louis, D.(2012). Consumer satisfaction and loyalty: Two main consequences of retailerpersonality. Journal of Retailing andConsumer Services, 19(16),
Lombart, C., & Louis, D.(2014). A study of the impact pf corporate social responsibility and priceimage on retailer personality and consumers’ reactions (satisfaction, trust andloyalty to the retailer). Journal ofRetailing and Consumer Services.
Martineau, P. (1958). The personality of the retail store. Harvard Business Review, 36(1),
Merrilees, B., & Miller, D. (2001). Superstoreinteractivity: A new self–service paradigm of retail service? International Journal of Retail &Distribution Management, 29(8–9),379–389.
Merrilees, B., & Miller, D. (2002). Antecedents of brand personality in Australian retailing: Anexploratory study. Proceedings of the ANZMAC conference, Melbourne,December 2.
Moller, J., & Herm, S. (2013). Shaping retail brandpersonality perceptions by bodily experiences. Journal of Retailing, 89(4),438–446.
Nunnally, J. C. (1978). Psychometrictheory (2nd Edition). McGraw Hill, New York, NY.
Pappu, R., & Quester, P. (2006). A consumer–based methodfor retailer equity measurement: Results of an empirical study. Journal of Retailing and Consumer Services,13(5),
Pappu, R., & Quester, P. (2008). Does brand equity varybetween department stores and clothing stores? Results of an empiricalinvestigation. Journal of Product &Brand Measurement, 17(7),
Wee, T. T. T. (2004). Extending human personality to brands:The stability factor. Journal of BrandManagement, 11(4),
Willems, K., & Swinnen, G. (2011). Am I cheap? Testingthe role of store personality and self–congruity in discount retailing. The International Review of Retail,Distribution and Consumer Research, 21(5),513–539.
Zentes, J., Dirk, M., & Hanna, S. K. (2008). Brandpersonality of retailers: An analysis of its applicability and its effect onstore loyalty. The International Reviewof Retail, Distribution and Consumer Research, 18(2),
In oil-exporting countries such as members of the OPEC, fluctua-tions in oil prices exert a significant impact on the domestic econo-my. Currently, a sharp reduction in oil prices results in several ad-verse effects; however, for such a crude-oil exporter that is also an importer of petroleum products as Vietnam, does a rise or drop in oil prices is beneficial to its development? This paper attempts to de-termine the oil price threshold while analyzing oil price effects on several macro factors, such as inflation, GDP growth, budget deficit, and unemployment rate over the 2000–2015 period. Using TVAR model, we detect an oil price threshold of USD27.6/barrel. Moreover, an increase in the price of oil, which exceeds this threshold, will cause a rise in inflation, budget deficit, and unemployment rate. Still, there is no significant evidence of the impact of oil prices on GDP growth.
Koop, G., Pesaran, M. H., & Potter,S. (1996). Impulse response analysis in nonlinear multivariate models. Journal of Econometrics, 74(1),
Le, V. T., & Nguyen, T. T. V.(2011). The impact of oil prices, realeffective exchange rate and inflation on economic activity: Novel evidence forVietnam. Discussion paper series, Kobe University, 3/2011.
Loungani, P. (1986). Oil price shocksand the dispersion hypothesis. Review ofEconomics and Statistics, 58,536–539.
Mork, K. A. (1994). Business cycles andthe oil market. The Energy Journal,(Special Issue),
Mork, K. A., Olsen, O., & Mysen, H.T. (1994). Macroeconomic responses to oil price increases and decreases in sevenOECD countries. The Energy Journal, 15(4),
Nguyen, D. T., Bui, T., & Dao, N.T. (2009). Effects of increased petroleum and oil prices: Some preliminaryquantitative analyses (in Vietnamese). VNUJournal of Science: Economics and Business, 25, 25–38.
Nguyen, T. L. H., & Tran, T. G.(2012). Effects of oil price shocks onthe Vietnam’s economy and forecasts for the 2012–2020 period (inVietnamese). Institutional Research Project 2011–2012. Vietnam: University ofEconomics Ho Chi Minh City.
Olomola, P. A., & Adejumo, A.V.(2006). Oil price shock and macroeconomic activities in Nigeria. International Research Journal of Financeand Economics, 3, 28–34.
Pham, T.H. A., Chu, K. L., Dao, B. N., Nguyen, M. P., & Tran, H. T. (2015). Oil price fluctuations and their effects onthe Vietnam’s economy (in Vietnamese). Research report 2/2015. Vietnam:Banking Academy.
Pindyck, R. S., & Rotemberg, J. J.(1983). Dynamic factor demands and the effects of energy price shocks. American Economic Review, 73(5),
Pirovano, M. (2012). Monetary policyand stock prices in small open economies: Empirical evidence for the new EU memberstates. Economic Systems, 36(3),
This study analyzes factors affecting net interest margin of joint-stock commercial banks in Vietnam. The paper uses the secondary data of 26 banks with 182 observations for the period of 2008–2014 and applies the panel data regression method. The empirical results indicate that lending scale, credit risk, capitalization, and in-terest rate have positive impacts on net interest margin. In contrast, managerial efficiency has a negative effect on net interest margin. However, bank size and loan to deposit ratio are statistically insig-nificant to net interest margin.
Ahmad, R., Shahruddin, S. S, & Tin, L. M. (2011). Determinants of bank profits and net interest margins in East Asia and Latin America. Working paper series. Retrieved 10 August 2013 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1912319
Angbazo, L. (1997). Commercial bank net interest margins, default risk, interest rate risk and off-balance sheet banking. Journal of Banking and Finance, 21(1),
Brock, P. L., & Suarez, L. R. (2000). Understanding the behavior of bank spreads in Latin America. Journal of Development Economics, 63(1), 113–134.
Doliente, J. S. (2005). Determinants of bank net interest margins in Southeast Asia. Applied Financial Economic Letters, 1(1), 53–57.
Fungáčová, Z., & Poghosyan, T. (2011). Determinants of bank interest margins in Russia: Does bank ownership matter? Economic Systems, 35(4),
Garza-García, J. G. (2010). What influences net interest rate margins? Developed versus developing countries. Banks and Bank Systems, 5(4), 32–41.
Golin, J. (2001). The bank credit analysis handbook: A guide for analysts, bankers and investors. Singapore: John Wiley & Sons (Asia) Pre Ltd.
Gounder, N., & Sharma, P. (2012). Determinants of bank net interest margins in Fiji, a small island developing state. Applied Financial Economics, 22(19),
Hamadi, H., & Awdeh, A. (2012). The determinants of bank net interest margin: Evidence from the Lebanese banking sector. Journal of Money, Investment and Banking, 23(3), 85–98.
Hawtrey, K., & Liang, H. (2008). Bank interest margins in OECD countries. North American Journal of Economics and Finance, 19(3), 249–260.
Hempel, G., Coleman, A., & Simonson, D. (1986). Bank management: Text and cases (2ndEd.). NY: John Wiley & Sons.
Ho, T. S., & Saunders, A. (1981). The determinants of bank interest margins: Theory and empirical evidence. Financial Quantitative Analysis, 16(4),
581–600. IMF. (2006). Financial soundness indicators compilation guide. Retrieved 15 June 2013 from http://www.imf.org/external/pubs/ft/fsi/guide/2006/index.htm
Maudos, J., & Guevara, J. F. D. (2004). Factors explaining the interest margin in the banking sectors of the European UNI0N. Journal of Banking and Finance, 28(9),
Maudos, J., & Solís, L. (2009). The determinants of net interest income in the Mexican banking system: An integrated model. Journal of Banking and Finance, 33(10),
Rose, P. S. (1999). Commercial bank management. Boston, Mass: Irwin/McGraw-Hill.
Saunders, A., & Schumacher, L. (2000). The determinants of bank
interest margins: An international study. Journal of International Money and Finance, 19(6), 813–832.
Sensarma, R., & Ghosh, S. (2004). Net interest margin: Does ownership matter? Vikalpa: The Journal for Decision Makers, 29(1),
Tarus, D. K., Chekol, Y. B., & Mutwol, M. (2012). Determinants of net interest margins of commercial banks in Kenya: A panel study. Procedia Economics and Finance,2, 199–208.
Ugur, A., & Erkus, H. (2010). Determinants of the net interest margins of banks in Turkey. Journal of Economic and Social Research, 12(2), 101–118.
Wooldridge, J. (2002). Econometric analysis of cross section and panel data. Cambridge, MA: MIT Press.
Zhou, K., & Wong, M. C. S. (2008). The determinants of net interest margins of commercial banks in mainland China. Emerging Markets Finance Trade, 44(5),
This article investigates the impact of bank competition on cost and profit efficiency in the Vietnam’s commercial banking system dur-ing 2005–2014. Based on different testing techniques, our results agree with the findings of Turk-Ariss (2010) that bank competition has a negative effect on profit efficiency and those of Pruteanu-Podpiera et al. (2008) and Maudos and de Guevara (2007) that bank competition is negatively related to cost efficiency. We also find that inflation and lag of competition are the two factors affect-ing the competition among these banks.