Featured Books

Welcome to the KSP Library’s books board.

Please check out these featured books selected by our KSP Library team. Please peruse some of our featured book lists if you’re looking for something new! The KSP Library Featured Book program allows your book along side 10 others to feature as the ‘Book of the Quarterly’ on the front page of our website.

By Ana Paula Martins

This book inspects the interdependencies among social disruption signals and their relationship to economic conditions as emerging from available Portuguese time series. Comparisons with international cross-section evidence are provided. Three types of innovations are presented: firstly, it searches for interactions – and common causes – between indicators of general aggressiveness or pro-activity that include accident, suicide, divorce rates and armed forces along with criminality records. Secondly, it illustrates theoretical applications of principal components: in time series filtering; in cross-correlation and corresponding significance-level probabilities analysis; in the treatment of missing cases. Finally, estimators based on observational replicability of second moments are proposed.

By Bachar Fakhry

The efficient market hypothesis has been around since 1962, the theory based on a simple rule that states the price of any asset must fully reflect all available information. Yet there is empirical evidence suggesting that markets are too volatile to be efficient. In essence, this evidence seems to suggest that the reaction of the market participants to the information or events that is the crucial factor, rather than the actual information. This highlights the need to include the behavioural finance theory in the pricing of assets. Essentially, the research aims to analyse the efficiency of six key sovereign debt markets during a period of changing volatility including the recent global financial and sovereign debt crises. We analyse the markets in the pre-crisis period and during the financial and sovereign debt crises to determine the impact of the crises on the efficiency of these financial markets. We use two GARCH-based variance bound tests to test the null hypothesis of the market being too volatile to be efficient. Proposing a GJR-GARCH variant of the variance bound test to account for variation in the asymmetrical effect. This leads to an analysis of the changing behaviour of price volatility to identify what makes the market efficient or inefficient. In general, our EMH tests resulted in mixed results, hinting at the acceptance of the null hypothesis of the market being too volatile to be efficient. However, interestingly a number of 2017 observations under both models seem to be hinting at the rejection of the null hypothesis. Furthermore, our proposed GJR-GARCH variant of the variance bound test seems to be more likely to accept the EMH than the GARCH variant of the test.

By Oded Kafri

In this collection of papers, it shown that the “order”which is generated around us by evolution and the results of our doing can be explained by the propensity of entropy to increase; namely, by the second law of thermodynamics. Entropy is conceived by many as a disorder, however, that is true only for spares systems. In a dense system, entropy is information thatis characterized by a long tail distribution. In order to apply the second law to sociology and economy, we have to define a sociological net. With analogy to the internet, in which, in principle, every site can receive and broadcast information to any other site we can describe economic network as a group of bank accounts that each one of them canreceive or pay money to any other account. The distribution of links between the sites is similar to that of money in the bank accounts. This long tail distribution,whichis obtained by maximizing the entropy of the net, is called Planck-Benford distribution. It is also shown that Planck-Benford distribution can predict polls distribution; Gini inequality Index in the OECD countries;the percentage of the relative poverty; the salaries of the CEO’s relative to the average salaries and the number of employees. Moreover, the Planck-Benford income distribution, being an equilibrium distribution (Max Entropy), can provide a standard tool for estimatingthe stability of the economy of a given country namely closer the income distribution of a country to Planck Benford distribution closer the economy to equilibrium.

By Tai-Yuen Hon

We compile ten of KSP Journals articles published during 2015 to 2016 in this volume. This volume includes the part I monetarism: we review both the theoretical as well as empirical literature relevant to monetarism and examine the empirical study on causality relationship between money, income, price and exchange rates (3 articles); the part II behavioral finance we analyze the behavior of Hong Kong small investors in stock markets and derivatives markets (4 articles); we discuss foreign-invested enterprises and sourcing in China, online securities trading service in Hong Kong (3 articles in commentaries) investors in the Hong Kong stock market.

By Rabia Bashir, Sami Bajwa, & Dawood Mamoon

This study is carried out to analyze the factors that results in conversion of borrowers into donors. The findings assist the microfinance institutions in coming up with the most appropriate measures to apply in order to eliminate not only defaults but also gain some financial sustainability by improving its donor profile. The study establishes that religious education and organizational religious philosophy influence borrower’s prosocial behaviors. Through religious teaching Akhuwat inculcate sense of responsibility, feeling of gratitude and psychological attachment, along with spiritual satisfaction to motivate borrowers to become donors. Being faith inspired organization; Akhuwat culture and its brand image depict strong association with Islamic value. The study recommends that the MFIs in order to enjoy a cordial relationship need to align their business philosophy with the local culture.

All KSP Books

Please see for all KSP Books.