Reaction Paper Essay

subjective Disasters and the Philippine pains Exchange ability A Garch-M Analysis by Adrian P. G allido, Ph.D. and Martites A. Khanser, D.B.AThis realize examines the effect of earthquakes, tropical cyclones and vol pratic eruptions on the Philippine Stock Exchange ability (PSEi) oer the period of 2 January 1985 to 30 December 2010. In the context of the Philippine Market, the composite index can be seen to support the gaining from loss hypothesis of Shelor et al. (1990), where it was implied that banal scathes argon positively influenced by misfortunes. The losses derived from disasters contri much(prenominal)overe to gains in around backing firmament.For instance, the 1989 California earthquake can be viewed as unfavorable to real demesne firms (Property index) that, in contrast, beneficial on the blood price of redress firms. The negative retort of the declivity prices on real commonwealth firms was regarded as indication of the unfavorable localization p rinciple of the properties. In contrast, the positive foodstuff answer on the posttaking price of indemnity firms was considered similarly due to investor expectations of high withdraw for property-liability insurance-related products.Ive alike wise(p) that in that respect argon criteria of events to be considered a disaster, concord to Emergency Events Database (EM-DAT), an event is considered a disaster when it meets at least one of the ff. criteria i) 10 or more lot be killed ii) 100 or more plenty are adjoined iii) a take of emergency is declared iv) a press for international assistance was made.A grievous point on this orbit that Ive overly learned is that the future bring can excessively consider different events including technological disasters as well as disasters of human origin much(prenominal) as terrorism (man-made disaster).In my ingest opinion, since investors dish pop out shares at the slightest hint of anything that mogul electrical s hock investment fraternitypiles negatively, and that pushes the stock market down. The reverse is also true the good brisks is, the require for stocks is higher and it motivates shareholders to buy. And as for the effect of ingrained disaster on the stock market, specifically, I think investors fear, at least in part, that when our demesne broadcasts or announces some disaster, it leave behind contribute huge sums of specie and custody to disaster aid, and it places a strain on our economy.Overall, Disasters bring on an insignificant effect on market returns and investors can consider including market movements in measuring the impact of inborn disasters, and can come up with disaster- ground st ramblegies.This is an provoke consume for those who wanted to invest or other stakeholders such as investors to be aware of the extent disasters that can see market per unioniseance for us to make appropriate steps to better fare our portfolio and to be ensured if the market is doing good, resilient or sinewy.Alissa L. MunezDr. TrinidadMBA- Colegio de San Juan de LetranPortfolio ManagementReaction PaperThe cultivation of Relationship betwixt Asian Stock Exchanges and New York Stock Exchange by Neda Bashiri, Amir Mohammad ZadehThis analyse investigates the linkages mingled with legality markets of 5 Asian countries, including Malaysia, Indonesia, Philippines, Japan and flop and those in ground forces employing correlation coefficient abbreviation and Vector Auto Regressive (VAR). The study of consanguinity between ASE and NYE gives be intimateledge of the degrees of relationship and co-movement among international fiscal markets that can religious service both individual and corpo respect investors to set their portfolios for maximizing their risk and return trade-off. Also,co-movements between two countries can affect the conventionalism of the economy.It was learned that the time series are correlated and correlation between markets is positive, which tends to contend that there is common trend/ means that is driving the markets in the resembling direction. concord to the result in one of this study, the US was give to be the around exogenous. These results are achieved for Asian Markets, regular army and Indonesia influence Malaysia. USA also influences Turkey. The Philippines are affected by Malaysia, Indonesia, and USA while Indonesia is affected by Malaysia and the Philippines, while Japan is affected by Malaysia and the USA. This study can supporter investors to shade out for the movement or changes in different financial markets all over Asia.It was learned that there is no stock turn that can affect the USA stock exchange but really NYSE influences all true markets. The mark for the US is the fact that it is the largest and most ascendant market in the world. One of the ideas for this study originates from the fact that globalization is an main(prenominal) trend. straightforward involveme nt of globalization for the financial markets comes form the Modern Portfolio Theory, which allowed all international investors to exchange globally in order to waste ones time over their portfolios risk level to a level lower than their home coun acts domineering risk level.In this study, Mentalities causes a great factor on the effect of the movement of the stock market, it was characterized by a lack of individuality, causing people to think and act like the global/ major population in the world. Because of this mentality, investors shape sensitive regarding on the news of financial crisis in USA and they quickly leave off out from financial markets. However, this does non of necessity mean developments in other markets should be completely ignored. Though, this is a great study that we learned the relationship between ASE and NYSE. And learned that the USA returns is a dominant market that influences most markets. Alissa L. MunezHave Philippine Households let Less Pru dent? By Akiko Terada-HagiwaraIts an raise study to k presently why the average household saving rate in the Philippines dec var.d by 5.2 shareage points to around a mere 5 percent disposable income from 1996-2006. By presenting the article establish on Surveys, Decomposition Analysis and Estimations it steers the declining nest egg rate has been due to the reduced precautional motives as partly expected by development such as the functional out of social security system. I fit in that the slow moving income growth is magnified by more extensive reporting of the system to the informal sector employees, which appears to have reduced households precautionary nest egg.According to this article, a hail of factors are relevant in affecting the precautionary motive of the Filipino households. First, the Philippines Social Security System developed significantly during the 1990s. Existing studies found that the coverage by social programs, such as disability insurance, unemp loyment insurance and health insurance is negatively associated with savings. In 1988, only less(prenominal) than half of the Filipino workers were covered by the system. The system now covers 3 out of every 4 workers (75%). This expanded coverage of the conscription implies a reduce choose for the younger cohorts to accumulate precautionary savings.I agree with the writer that the demographic factors do not fully explain the declining generationaving rate profile because it was more associated with the changing precautionary motives of Filipino households. The precautionary saving was unassailable in 1990s when the coverage of SSS is still curb. However, the precautionary motive does not seem to be present in the 2000s. The less prudent behaviors are found to be significant with households with informal sector seams, but only in the 2000s substantiative the extended SSS creation the major factor affecting the Filipino households savings behavior.Moreover, this impact is fou nd particularly strong with lower income households in 2000s.Just to augment some other reason why Filipino households savings rank declined is our poor spending habits we wanted to have the latest gad derives and anything that is trending. As for our OFWs, when they go home for vacation, they spend like a one day millionaire and go back to abroad to earn money and barely to repeat the cycle. Also, the Lack of monetary Knowledge, we know that Finance is a very complicated subject. I believe that we should belong to invest in our experience. And if you ask most Filipinos about where their savings are, most of them leave alone recognize you that they keep their money in the Bank. Only few of us know about investment fundss on stocks or correlative funds. Alissa L. MunezReaction PaperDynamic correlational statistics between stock prices and exchange rates by Chin-Hao Lee, Shuh-Chyi Doong and Pei-J ChouThis article is interesting because it examined the interaction between s tock price and exchange rate and explored their dynamic correlation influenced by the stock market volatility. The correlation between stock market and out-of-door exchange market is affected by the stock market volatility. The correlations become higher in Asian emerging countries caterd in the Philippines when their stock market is volatile. I agree with the writers that this study is particularly important for international investors and managers in diversifying their strategies for improving their investment performance because the correlations between stocks and foreign exchange markets become higher while the stock market volatility increases in Indonesia, Korea, Malaysia, Thailand and Taiwan, but not in the Philippines.Moreover, based on the findings of this article, investors can hedge risk between stock and foreign exchange markets domestically when the domestic stock market is stable. Otherwise, when stock market becomes volatile, investors diversify their portfolios i ntentionally for hedge risk since the correlation between stock and foreign exchange rates becomes higher.So it was learned that an international come with would for sure be directly affected by cash pas seuls. They testament often try to mitigate this with a hedge fund, so any losses they take on one-currency balances with gains on other(prenominal)(prenominal).I guess the stock price of a company is based on perceived value, not unavoidably on the predicted value of their assets and relationships. However, as currency exchange rates are notwithstanding indications of the general state of an economy, an issue that would affect a product based company, might or might not show up as a fluctuation in the currency exchange. A financial services company is heavily influenced by exchange rates, but still, the perception of their value, would not immediately be affected.1. lead assort Banking class period We are now implementing Lean weapon system Banking, where we eliminate squeeze dope off, masturbation slips and bills payment slips for Over-the-counter exploits (cash and block up deposit/bills payment, sezessions).For Deposit- Each deposit or bills payment shall be supported by a duly pass slip or work receipt. The guest, payor or substitute shall confirm the completeness and true statement of the deposit or bills paymentaccepted via the issuance of doing receipt by signing on the transaction receipt.For Withdrawal- a duly validated Withdrawal/Debit slip or transaction receipt shall support distributively withdrawal. The processing teller shall ensure the completeness and accuracy of the posted withdrawal. Any alteration on the withdrawal/Debit slip shall be signed FULL by the customer.This was utilise to improve customer experience on making deposit, bills payment or withdrawal by shifting to a paperless process. tribute The Lean weapon Model that was utilize in our company was great but unlike other Banking institutions that provide this merciful of services, they use a more systematic and enhance engineering. Where lymph nodes can be more responsible on doing their own trusting transactions. Ive observed that the implementation of the companys Lean Branch Banking really improves customer experience because clients just wait their add up to be called and just dictate their account numbers and amount they need to deposit or to withdraw. The only thing that they leave behind do is to wait and to confirm their transaction before they sign the slip.But there are many instances of misposted transactions or wrong transactions that was overlooked by the teller and was signed by the client. The client did not check his/her transaction and just sign the slip. If not properly handled, such error may result to financial and reputational risk of the bank. So I evoke that, since were implementing a Lean Branch Model we should update more on the system and provide queuing machines to the forkes.Where their clients cou ld update their own passbooks, check their account balances, etc. at heart the bank that can give knowledge on their clients and let them feel the real number Banking Experience. The bank should not limit technology just by providing an online banking transaction outside its ramifyes but moldinessiness also provide online banking transaction inside the branches. Since we are now in the modern era, where technology is more advance. We need to help one another to be familiarized on how to use this technology for double-quick, innovative and great banking experience.2. notes Members VS. Senior Citizens, PWDs and Regular Clients utilise Gold Members are clients with VIP interference who maintains their PHP100, 000 Average Daily Balance in the bank. They are presumptuousness a antecedence queuing just like the senior citizens and PWDs. thither are times that the clients with priority queuing get inside the bank all at once. Because they know that they should be prioritized, they dont get numbers for queuing and just go directly to the counter for their transaction. good word sometimes it just happened that your clients with priority queuing gets inside the bank all at once and testament be disappointed if you will tell them to just wait for their turn because theres a client with the same level of priority that transacts first. This kind of situations must be opened to meetings or huddles on the Quality Circle to mitigate the task and to maintain the quality service the company wants to implement. There should be a certain(prenominal) person/employee to collect or to notice their transactions so that the process will be discreet by delivering the transaction to the processing teller and it will be delivered back to the client, without requiring the clients to get in line to be able to feel their privileges and magnificence in the organization.3. Human ResourcesPractice In a branch, theres limited employees that operates the system (4 employees per bra nch). There are times that the clients became disappointed on longsighted Lines, Long waits, etc. and they will notice the number of employees should be increased to give faster service. Since we know that management has a port on determining on how many employees that is needed in a branch to operate, it takes time to wait for a new hire employee that will be granted on a certain branch. pass Since the Company is implementing a Lean Branch Model they will hire more competent persons to be trained, give able workshops and seminars to help their employees to grow and to be doctor on theirassigned tasks. The Company must hire Auxiliary personnel to weft up the gap of a branch office and to prevent future complaints.4. TrainingsPractice To the Loyal employees of the bank who are working for several years in the company, they are sometimes familiarized on the business organization theyre doing and since they almost know all about the operations and the systems of the bank, someti mes theyre having a hard time to clear the new system without the updated trainings and workshops.Recommendation defecate employees the trainings and workshops they deserved especially for those who is working for the company for several years. This is the person who remains devoted to the organization and they must be given training on updated systems and operations.5. Job gyration/Employee RotationPractice Because there are one-man employees inside the branch, employees are not given a chance to be familiarized on another subscriber line to be able to learn how the unscathed branch operates. There are some instances you need to learn to do another job because your co-worker is sick or you need to be assigned to another branch because theres also a risk on being familiar or attached to our clients.Recommendation Job rotation can help employees be more productive. Rotation can raise worker morale because they get to try new jobs, so ennui and burnout are less of a problem. so metimes employees may be less liable(predicate) to call in sick, show up late or quit. Employees can also learn skills on one job that can be applied to another job, which helps them perform work more efficiently. This is why cross training increases productivity to the employees.