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School Central Asia in the Information Age Official Proceedings for KIMEP University КИМЭП Университеті Университет КИМЭП XIth KIMEP International Research Conference (KIRC-2014, April 3-5, 2014) “Central Asia in the Information Age” Conference Proceedings X-шы Халықаралық ғылыми-зерттеу конференциясы (KIRC-2014, 3-5 сәуiр 2014 ж.) «Ақпарат дәуірдегі Орталық Азия» Конференцияның материалдары XI-ая Международная научно-исследовательская конференция (KIRC-2014, 3-5 апреля 2014 г.) «Центральная Азия в информационную эпоху» Материалы конференции Almaty 2014 Алматы 2014 UDC (УДК) 327 (063) BBC (ББК) 66.4 C40 C40 Central Asia in the Information Age: Conference Proceedings, Almaty, April 3-5, 2014 / KIMEP University / Eds. K. Harvey, M. Rozmukhamedova, M. Mahmood, G. Zagitova, D. Sharipova, M. Shegebayev. – Almaty-Astana: Academpress, 2014. – 128 p. Ақпарат дәуірдегі Орталық Азия: Конференцияның материалдары, Алматы, 3-5 сәуiр 2014 ж., / КИМЭП Университеті; Ред. К. Харви, М. Розмухамедова, М. Махмуд, Г. Загитова, Д. Шарипова, М. Шегебаев. – Алматы-Астана: Академпресс, 2014. – 128 б. Центральная Азия в информационную эпоху: Материалы конференции, Алматы, 3- 5 апреля 2014 г./ Университет КИМЭП / Ред. К. Харви, М. Розмухамедова, М. Махмуд, Г. Загитова, Д. Шарипова, М. Шегебаев. – Алматы-Астана: Академпресс, 2014. – 128 с. ISBN 978-601-80235-6-9 This book represents the Official Proceedings of the KIMEP International Research Conference (KIRC-2014) held 3-5 April 2014 at KIMEP University in Almaty, Kazakhstan. This KIRC featured scientific papers, professional presentations and expert panel discussions on topics related to the theme of “Central Asia in the Information Age." Данная книга содержит материалы международной научно-исследовательской конференции (KIRC-2014), проведенной Университетом КИМЭП (Алматы, Казахстан) 3-5 апреля 2014 г. На конференции были представлены научные доклады, презентации и мнения экспертов на тему «Центральная Азия в информационную эпоху». Бұл кітап Қазақстан Республикасы, Алматы қаласында, 3-5-ші Сәуір айында, КИМЭП Университетінде откізілген КИМЭП халықаралық зерттеу конференциясының (KIRC-2014) ресми мәліметтерін ұсынады. Осы конференцияда «Ақпарат дәуірдегі Орталық Азия» тақырыбына қатысты ғылыми баяндамалар, презентациялар және сарапшылардың пікірлері көрсетілген. UDC (УДК) 327 BBC (ББК) 66.4 (063) © KIMEP University, 2014 ISBN 978-601-80235-6-9 © Academpress, 2014 Central Asia in the Information Age Conference Official Proceedings Table of Contents Section I – Business & Related Topics – 43 pages Section II – Language Acquisition & Related Topics – 48 pages Section III – Social Sciences & Related Topics – 33 pages KIRC XI Sessions on Business and Related Areas - 1 KIRC XI Sessions on Business & Related Areas KIRC XI Sessions on Business and Related Areas - 2 KIRC XI Sessions on Business and Related Areas Authors Title of the papers Page No. Razzaque H Bhatti, Ph.D. Is Carry Trade Profitable in Emerging Market Currencies? 2 Dana Baizyldayeva, MSCS, Cloud Computing: Perspectives in Kazakhstani Higher Educational 5 Oleg Vlasov System Carolyn Erdener The Challenges of Managing in Syncretic Cultures 6 Alma Alpeissova Gulnara Moldasheva, PhD The Influence of Managerial Ownership on Bank Market Value, 7 Performance, and Risk: Evidence from Kazakh listed Banks Kim Choy Chung, Ph. D Удовлетворенность потребителя в рамках техники раскрутки 8 Madina Amanbek, MBA продаж основанных на цене в Казахстане Meruyert Oshanova, MBA, CEO characteristics and firm performance: Evidence from listed 12 Keun Jung Lee, Ph. D. Kazakhstani companies K. J. Lee, Ph. D. The Under-investment or over- investment Hypothesis in listed KZ 13 companies Liza Rybina Content of Social Advertising Media: An Observation from Almaty 14 City. Monowar Mahmood, Ph. D. Corporate Governance in Kazakhstan: Current Scenario and Future 16 Nurlan Orazalin, MA, CIMA Challenges Dostiyarova Alima, MBA New trends of Organizational Behavior and Culture in Kazakhstani 17 Organizations Pavel Kim Cultural Intelligence in Multicultural Environment: A study on 23 Carolyn Erdener Kazakhstan Dina Kozhakhmetova Green Marketing: A Study of Consumers' Attitude towards 24 Vladimir Garkavenko Environment Friendly Products in Kazakhstan. Liza Rybina Madina Izbassarova Ethical issues in marketing research in telecommunication industry of 25 Vladimir Garkavenko Kazakhstan Liza Rybina Nazgul Maikibaeva The Role of Marketing in formation of Corporate Culture of 26 Vladimir Garkavenko Kazakhstani companies Alexander Ostrovskiy Yana Aleshkina, Social marketing as a part of brand platform building 27 Vladimir Garkavenko, Alexander Ostrovskiy Zukhra Abylkassimova Issues and challenges of medical tourism development in Kazakhstan: 28 Vladimir Garkavenko Case of Alakol Liza Rybina Zhanat Syzdykov Implications of IFRS in Oil and Gas Accounting: Kazakhstan 29 Perspective Mujibul Haque, Ph.D. Financial Literacy, Financial Education and Economic Development: 30 Sang Lee, Ph.D. Analysis, Capacity Building and Policy Recommendations for Dmitriy Belyanin, MBA Kazakhstan Mujibul Haque, Ph.D. Does KASE Stock Prices React to Currency Fluctuations and 31 Sang Lee, Ph.D. Devaluations? Mira Nurmakhanova, Ph.D. Medieva G.A. PhD Discussion of philosophy and methods of evaluation of goods with 32 Kulibaev A., MBA double value Кембаев Женис О пластиковой катастрофе современности и 40 Мухтарович, доктор права необходимости модернизации и консолидации страны 2 KIRC XI Sessions on Business and Related Areas - 3 Is Carry Trade Profitable in Emerging Market Currencies? Razzaque H Bhatti, Ph.D. KIMEP University Almaty 050010, Kazakhstan E-mail: [email protected] 1. Introduction Over the period 2001-2013, the foreign exchange market (FX) around the world has seen substantial growth in daily turnover in FX trading, which is documented well by five consecutive Central Bank Triennial Surveys conducted over the periods 2001, 2004, 2007, 2010 and 2013. This surge in FX trading over the last 13 years has partly been attributed to (i) the profitability of speculative currency strategies of carry trade and momentum trading targeting the interest differentials and trend in exchange rates of currencies of Asia, Pacific and emerging market economies and (ii) a substantial increase in daily turnover of trading in the emerging market currencies. 2. Objectives of the paper The paper aims to examine whether carry trade is profitable for the emerging market currencies. To this end, quarterly data are used on three-month Treasury bill rates (or deposit rates where the data on Treasury bill rates are not available) and exchange rates of six emerging market currencies vis-à-vis the U.S. dollar. Of six emerging market currencies three are Latin American currencies (the Mexican peso, Bolivian boliviano and Brazilian real) and three are Eastern European currencies (the Hungarian forint, Russian ruble and Poland zloty). The motivation lies in the fact these currencies have been identified in the literature as currencies offering a significant interest differentials (target) and carry trade in them has been profitable over the period 2001-2007. This paper examines whether carry trade is profitable in these currencies over an extended period of 1995-2010. 3. Findings We calculate the period-by-period return in carry trade by borrowing in the U.S. dollar and investing the proceeds in the underlying emerging market currencies, betting that the exchange rate between the target currencies and the funding currency will not change over the investment period. The period-by-period returns on carry trade are shown in Figure 1 below. 3 KIRC XI Sessions on Business and Related Areas - 4 Table 1: The results using different measures of return and risk on carry are reported in Table 1, together with return and risk on the U.S. stock market. BOB/USD BRR/USD MXP/USD HGF/USD POZ/USD RUR/USD Mean Return Mean interest differential 6.94 17.28 11.32 9.42 7.95 12.66 Mean annalized return 4.66 15.05 9.41 6.94 7.67 3.92 % Postive Return 84.13 79.37 79.37 63.49 66.67 65.10 % Positive changes in exchange rate 15.87 41.27 44.44 38.10 39.68 30.16 % Exchange Rate -2.39 Risk Std Dev 5.07 35.66 14.76 26.84 27.36 45.71 DSSSD 6.39 30.95 15.58 23.05 22.66 29.23 5% VaR 2.01 94.55 24.52 60.71 65.37 137.54 1% VaR 1.27 55.76 17.02 32.94 40.72 49.39 Risk-Adjusted Return Sharpe Ratio 0.27 0.33 0.42 0.14 0.16 0.00 Stock market Mean Return 7.63 Sharpe Ratio 0.11 4 Figure 1: Return on Carry Trade KIRC XI Sessions on Business and Related Areas - 5 5 KIRC XI Sessions on Business and Related Areas - 6 Cloud Computing: Perspectives in Kazakhstani Higher Educational System Dana Baizyldayeva, MSCS, BCB, KIMEP University Almaty 050010, Kazakhstan and Oleg Vlasov BCB, KIMEP University Almaty 050010, Kazakhstan Abstract. It’s a fact cloud computing can decide almost all people’s needs in storing, retrieving data, running application software in the computer net, etc. What are the advantages of cloud computing? Cloud computing allows the users to: Improve computer performance Have universal file access Have unlimited storage space Have reliable data storage Have compatible document format Have easier group collaboration Have all above with lower costs Cloud computing provides services as: Software as a Service (SaaS), Platform as a service (PaaS), Infrastructure as a Service (IaaS). So, software can be used via cloud service provider, if the software is, say, too expensive. This is a very good opportunity for our higher educational institutions to provide the educational