Journal of Management Sciences

Number 2, 2014

73-112
Index futures trading, spot volatility and market efficiency

Authors: Chen Zonghao

Abstract

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This paper examines the impact of the listing of index futures trading on spot market volatility, market efficiency and volatility asymmetric responses. In order to model the effects of the introduction of index futures contracts, a modified GJR-GARCH model has been applied to examine the structural change of conditional variances before and after the introduction of index futures trading in S&P500, Nikkei 225, ASX all Ordinaries, and an equally weighted international portfolio. Additionally, this study adopts the coefficient dynamic tests to examine whether the identified impacts of index futures are consistent over time in both the individual indices and the international portfolio. In the post-futures period, we found that an increase in conditional volatility and market efficiency in Japan, and an increase in the equally weighted international portfolio. In the U.S. and Australia, however, no significant structural change on conditional variance is observed. The identified increase in volatility and market efficiency in the international portfolio are consistent over time.

113-150
Impact of Leader’s Change-Promoting Behavior on Readiness for Change: A Mediating Role of Organizational Culture

Authors: M. Shahnawaz Adil

Abstract

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Number of views: 665

The purpose of this study is to investigate the impact of the leader’s change-promoting behavior on employee’s readiness for change and whether the organizational culture mediates this relationship. A sample of 205 responses is drawn from employees having junior or senior level of managerial responsibilities in Karachi. The method of both exploratory and confirmatory factor analyses is employed to evaluate the reliability and validity of the measurement model. The structural equation modeling method was then applied to examine the theoretical framework with the help of seven frequently reported goodness-of-fit indices. The results indicate that leader’s change-promoting behavior has a significant positive impact on change readiness and the organizational culture partially mediates the positive relationship between the leader’s change-promoting behavior and change readiness. The present study supports the theory of one of the six conceptual formations of change readiness that it is reflected as employee’s capacity to change. Therefore, managers should clearly advocate the desired change with the help of their own change-prompting behavior as well as establishing a trusting culture in their organization. Future studies may ascertain the impact of employees’ readiness for change on their commitment to change in the context of Pakistan which could further lead to passive or active change-related behaviors.