Temperature Effect: How to do it? – Efek Cuaca: Bagaimana melakukannya?

Temperature Effect: How to do it?

Weather effect is another interesting research in finance. It is actually an argument for the traditional finance that relies much on rational behavior assumption. So, whenever you write problem statement for this topic, start it with the argument on rational behavior. I firstly read paper of Saunders (1993) then followed by Dowling and Lucey (2005). It really attracted me. How come weather may affect stock price? Right?

Who support it? A lot! For example, Loewenstein (2000) argues that the emotions and feelings influence our decision making process. It may dictate our long-term cost and benefits, hence, it will affect the equity pricing. The logic is simple, when it is rainy day, we tend to feel lazy compared to bright day (we tend to be aggressive). This emotion may affect our decision making. If it is rainy day, we tend to have our leisure time, meanwhile, during sunny day we tend to be rushed out (Yet, this debatable even in psychology field). Continue reading

Moon effect Research: How to Do it? – Penelitian efek bulan: Bagaimana Cara Melakukannya?

Moon effect Research: How to Do it?

  • NOTE THAT NOW I AM MORE ON BEHAVIOURAL CORPORATE FINANCE –

The moon effect research in economics and business field is interesting and intriguing. I met this topic by coincidence. That time I was solely on weather effect reading papers from Cunningham (1979) and Dowling and Lucey (2005). I remember that I prepared my manuscript for Journal of Bioeconomics, opened this journal to see its scope, but ended up with Herbst (2007) paper. It really attracted me.

When I read it, it was related to my PhD research (that time) and I wanted it to be part of my regressor. The issue is what theory to support it? How to measure it? How to rationale it? It was painstaking, but it has to be done. Continue reading

How to transpose your rich data into panel (Data Stacking / Transpose)

If you are in finance research area, and you are using panel data, the most annoying part is stacking/transpose your time series into panel data. Hereby, I give you the macros in excel (even though I know many software such Tableau can do it faster) to do in a click.

Yet, when you want to run it, adjust it with the number of your column. Mine is 6, and the data that has to be stacked/transposed is from column 2. Therefore, the i = 2 to 6.

Happy trying

Copy paste this to your macros (open your excel –> view –> macros –>view macros –> create –> copy paste –> run)

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Corporate Political Investment 101

This upcoming Indonesia presidential election presents the issues of corporate political investment. For instance, many Islamic-based media and blogs accuse that one of the candidates, Joko Widodo, is prepared by catholic-Chinese group to be the next president for the sake of business interest. Similar condition is also faced by another candidate: Prabowo Subianto, where there are anonymous bloggers argued that gigantic corporation and corruption case-linked corporation are supporting him for the sake of penalty-free or legal suit-free. In short, whether it is right or gossip, there is an accusation of corporate involvement in the presidential election, which is well-known as corporate political investment.

What is corporate political investment? Does it true exist? How will it affect the election? What are the benefits of political investment for firms? This writing is corporate political investment 101 (for beginner) which introduces the corporate political investment by exploring its definition, its effects on politics and presidential campaign, and its cost-benefit for corporation. Continue reading

Why You should attend Statistical / Econometrics Class before Mastering a Software

I just read comments from 2 reviewers of a journal. First reviewer gives a minor correction because of English editing, copy editing, and elaboration in the discussion section. The first reviewer gives good comment too, for instance we have to have another robustness test, which is a very good idea to make our paper better. Second reviewer gives a rejection because two issues. First, he/she suspect we just wrote down the R-Square (R2) before running the factor analysis. I just stunned, and read it again and again. R2 from factor analysis? Second issue is about the data collection. He/she addresses our manuscript is too weak as it does not mention the philosophical data collection. I was confused that time thinking what the reviewer means by philosophical data collection. After reading it again, reviewer mentions that I have to write down, not only whether we adopt or adapt the items of questionnaire, but also the grounded theory of the data collection and the phenomenological of items construction. I was very surprised because actually grounded theory data collection and phenomenological are qualitative approach which is totally different view from our approach which is quantitative method. I just smile facing this type of reviewing process. But it makes me think what the root of this “evil” is. Why nowadays people are good in click-click the software interface but fail in understanding comprehensively the statistic. Continue reading

If Eve is wrong, then You are wrong too!

Hi! Indeed, I am too lazy to do my job recently. Article Papers lah, Global Finance grant lah, PhD Club lah, Tutorial lah, My website maintainance lah (thanks to refi to help me on this freaking problem) Badminton lah, and my sleeping competition with pak Ajo and Simon… 😛 But somehow, I am… still lazy… what a troublesome. Anyway, I just started my what-so-called as “holy life”; and I found something interesting. It is about Eve.

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How The Moon Rules Your Life

Again! I found an interesting article about Moon Effect. Even though it is an old article (published in 2007), but I found it so interesting. Note that I am digging out the Moon Effect article because it is related to my Thesis. This article describes the how the moon can affect human behaviour. Happy Reading!

How the Moon rules your life

At last, scientists claim to have found a link between our satellite and human behaviour – like how it governs the size of your dinner By Roger Dobson

Sunday, 21 January 2007

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