This study aims to determine whether the stock holdings of equity mutual funds are informative for predicting future stock performance in the Chinese market. It is a puzzle that…
Abstract
Purpose
This study aims to determine whether the stock holdings of equity mutual funds are informative for predicting future stock performance in the Chinese market. It is a puzzle that actively managed mutual funds underperform passive benchmarks, whereas retail investors still delegate investment decisions to the fund managers. The present study sheds light on whether mutual fund managers possess security selection skills in their top ten holdings.
Design/methodology/approach
By regression analysis and portfolio sorting, this study focuses on 830 Chinese A-share stocks in the industry research reports from the Guotai Junan Securities Company. It collects mutual fund's top ten holdings data from the Wind Financial Terminal between 2019Q1 and 2021Q1. As robustness checks, the result holds for the fixed-effect model, an additional measure of ranks in the top ten holdings, the predictability test based on the confusion matrix and two stage least square (2SLS) regression.
Findings
The authors find that the top ten holdings by equity mutual funds are informative for predicting stock performance and can provide valuable information for investors to support their decision-making.
Practical implications
The findings of this study provide insightful guidance for retail investors in making investment decisions and support the hypothesis that active fund management adds value.
Originality/value
Firstly, the authors find that the top ten holdings of Chinese mutual funds show significantly positive signals for future stock excess returns, indicating the selection skills of fund managers. Secondly, the above positive relationship exhibits a diminishing marginal effect with more funds holding this stock. Thirdly, the authors find that the predictability horizon of the number of overweighing funds is up to three quarters and then diminishes in the fourth quarter. Finally, investors have a 59% prediction accuracy for the whole stock sample and an 85% precision conditional on the predicted positive subsample to outperform the market. The authors also address the endogeneity and reverse causality issues.
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Hualiang Lu, Shuyi Feng, Jacques H. Trienekens and S.W.F. Omta
The purpose of this paper is to investigate the effects of network strength, transaction‐specific investments and inter‐personal trust on business relationship satisfaction for…
Abstract
Purpose
The purpose of this paper is to investigate the effects of network strength, transaction‐specific investments and inter‐personal trust on business relationship satisfaction for small‐and‐medium‐sized enterprises (SMEs) involved in agri‐food processing and exporting in China.
Design/methodology/approach
Survey data collected from 80 agri‐food SMEs in Jiangsu Province were used for empirical testing. The authors applied an ordered logit regression approach for model estimation.
Findings
The results demonstrate that strong guanxi networks, high level of transaction‐specific investments and inter‐personal trust significantly contribute to a high level of relationship satisfaction for agri‐food SMEs in China. In addition, inter‐personal trust shows a moderating effect on the relationship between transaction‐specific investments and relationship satisfaction.
Practical implications
Business relationships play a critical role in the modern market environment. Relational arrangements (based on guanxi and inter‐personal trust) should be further enhanced in order to yield satisfied business relationships for SMEs in China.
Originality/value
The paper extends our understanding of relationship (guanxi) marketing, as well as marketing practices for agri‐food SMEs in China.
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Nazif Durmaz, Shuyi Bian and Yihang Gu
This study aims to examine the influence of economic policy uncertainty (EPU) on residential property prices across 10 distinct nations in Europe, specifically in Northern and…
Abstract
Purpose
This study aims to examine the influence of economic policy uncertainty (EPU) on residential property prices across 10 distinct nations in Europe, specifically in Northern and Southern regions.
Design/methodology/approach
The autoregressive distributed lag bounded cointegration test is used to carry out the empirical analysis.
Findings
The findings reveal that there is a stable long-term cointegration between house prices and their determining factors, including EPU, in the 10 nations. The outcomes further indicate that EPU has negative long- and short-term effects on house prices, apart from Spain, where uncertainty has a significant positive effect.
Originality/value
The sample period of nearly 40 years applied in this paper includes several business cycles, as well as the concluded global financial crisis, the Brexit process and the COVID-19 pandemic. These three important events potentially increased economic uncertainty across Southern and Northern Europe and the globe, thus making this study even more timely and vital.
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Madhura Konale, Niyaz Panakaje, S. M. Riha Parvin, Abhinandan Kulal and Ujwala Kambali
In the evolving digital landscape, customers connect with the diversified digital marketing platforms, posing both obstacles and opportunities to consumers. In response to the…
Abstract
Purpose
In the evolving digital landscape, customers connect with the diversified digital marketing platforms, posing both obstacles and opportunities to consumers. In response to the changing landscape of social media and technical advances within the fashion business, the study aims to investigate the role of virtual fitting rooms in influencing consumer behaviour and purchase intentions through social media, with respect to fashion products.
Design/methodology/approach
The study used a combination of primary and secondary data, relying on secondary sources to identify research gaps and construct the conceptual framework and a survey-based approach enabled the collection of 352 responses from metropolitan cities of India like Bangalore, Chennai, Kolkata and New Delhi using snowball sampling for studying research variables. The hypothetical relationships were tested using various statistical techniques such as multiple regression analysis, measurement model assessment using confirmatory factor analysis and structural equation modeling (SEM).
Findings
The present study connects the dots between social media, virtual fitting rooms, engagement characteristics, buying intentions and consumer purchasing behaviour by manifesting a positive association with engagement metrics that correspond to the current user-behaviour pattern. As per results, virtual fitting rooms are significantly associated with effectiveness of social media. Moreover, social media as a mediator significantly amplifies the impact of virtual fitting rooms on the intents and behaviour of consumers while making purchases.
Originality/value
Research spotlights the novel findings (i.e. interactive, visual, personalized shopping moments and social capabilities features) of social media in enhancing the interaction with virtual fitting rooms, which shapes the fashion purchasing decisions.
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The purpose of this paper is to examine the factors that lead to the controversy within the existing empirical literature on the relationship between land tenure and agricultural…
Abstract
Purpose
The purpose of this paper is to examine the factors that lead to the controversy within the existing empirical literature on the relationship between land tenure and agricultural investments in China.
Design/methodology/approach
This study conducts a meta-regression analysis (MRA) based on 265 samples from 29 selected studies. These studies are collected from different regions and populations; therefore, this study utilizes a random-effects meta-regression model to control between-study heterogeneity.
Findings
The empirical results show that the variable “land-related long-term investments” significantly affects the relationship between land tenure and agricultural investments. The variables: “ration land,” “land titling” and “land transfer rights” all have significant effects on this relationship, but at different levels. The study area (e.g. “western China,” “central/inland China,” “two regions contained”), “plot level,” “panel data,” “sample size,” “considered endogeneity” and “off-farm employment” variables all significantly influence the relationship. Additionally, the results show that the relationship is significantly affected by the survey time.
Practical implications
Policymakers should treat the existing research conclusions with caution and pay more attention to defining land tenure. The relationship between land tenure and agricultural investments also depends on regional resource availability. Therefore, land property rights policies should be region-specific in order to successfully encourage agricultural investments.
Originality/value
In this study, the author collectively examines existing empirical studies to investigate whether their inconsistent results are affected by research characteristics. To the author’s knowledge, this is the first study that analyzes land tenure and agricultural investments in China using MRA. Future research should refine the definition of land tenure, the selection of agricultural investment types, the research method and the method of data collection.